Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-09-16
w. A. G. FOX
w. A. G. FOX
On Building and Loan Development In
PHILADELPHIA

FnlIdueIpnld
DIIILADELPHIA always has been known
i as the City of Homes, and the many
prosperous building and loan associations
which it contains have done q large part
toward bringing about this enviabIe cOndi-
tion of affairs, in the opinion of w. a. G..
Fox, who is connected with a large tnumber
of these organizations.
mo city in the United States" said Mr..
Fox. Sin any way approaches Philadelphia
in the number of persons who own their
own homes. 1t seems to be n characteristic
of Philadelphians that they greatly prefer
to live in their own homes rather than in
apartments.
THE city during the war, when building
of houses was practically suspended, ex-
perienCed n raid which was caused by
spectators buying rows of houses and then
'pyramiding' them; that is. selling them
and trading them to each other. This went
OH to an almost incredible degree, and in one
transaction of which l had rC"sonal knowl-
edge the sixth deed of transfer was being
made out before the first of the deeds was
off the records.
This could not have been done unless
there was some place to get the money for
the mortgages between the sum which would
be loaned on the property by a reputable
bank and the cash which the buyer was
forced to pay for the property.
THE building and loan associations were
in some degree called upon to meet this
nately, some of this got into the hands of
the spectators. but ultimately It reached the
hands of the buyers, which was the real OBJ
ject for which these associations were
formed
"The speculative buyers would purchase
houses at n given figure and then, due to
the inflated and fictitious value which was
placed upon nearly every kind of dwelling,
would force the ultimate purchaser, who in
many cases had to have some place to live,
,hopo ,n hp,,y at 60, hnyn nnI
its real worth.
Refused to Aid Spectators
"But the building and loan associations
refused to lend their aid to the spectators,
and in those troublous times. when borrow
ers came to our Offices, the first question
which they were asked was whether they
wanted money for speculative purposes or
whether they were buying home for them
selves. Upon the answer to that question
depended whether or not they received the
money.
THE aim Of the building and loan asso-
cations IS to help man buy his own home.
| The plans are so arranged that man. fer
practically the same amount which he pays
| to landlord will In time become the owner
| of his property, provided he has about 20
| per cent of the sale price in cash.
''In such case the association assumes
| the mortgage and the member makes peri
odic payments to the association. At the
1
| entirely in about eleven and half years
| After this the owner may extend the first
mortgage and take part Of it in the building
| and loan, or he may create n reserve by
| taking free stock in the association, which
| when it natures will give him q good start
in the payment of the first mortgage. This
| Is, in brief, the method and the plan upon
| which the associations are based
| ''The great difference between the build :
| ing and loan and other forms Of saving is
| that the payments must be made upon a
| certain day If they are not paid then the
| member Is penalized. They must continue
with the amount with which they start, and
| the payments must be regular.
| '"rhe building and loan associations have
| probably aided more men to obtain q clear
| title to their own homes than any other or =
| ganization in the United States. One of its
strongest features Is that the associations
| are purely CO operative. 1t Is amazing that
fifteen men Of the caliber Of those making
| up the directorates Of the associations can
| always be found who will give 80 much of
their time, interest and careful attention to
the management of It's affairs, These direc
tors give their services, and the only ones
who are compensated for their work are the
secretary and treasurer.
''Most men who 90 into the building and
| loan associations are men who are deter
mined to stick 1t out to the end, and there
fore the number of lapses Is relatively very
small. But there have been instances where,
for no reason over which the member had