Cottonwood chronicle. [volume] (Cottonwood, Idaho) 1917-current, 1922-11-24
NOT ALL THAT GLITTERS
Is GOLD SAYS MARTZEN
Many Poor Investments Are
Made by P,ople Having Small
Sums of M.nty

AS to investments on the cut
side, tie it mining, oil, building
and loan associations let me tell
you few words about the ex-
perience we had in this town
some ten years ago it seems
every few years the country is
worked by agents of that class
mining and oil promoters.
An agent for the Pacific Build
ing and Loan Association of
Tacoma, Wash, got me to help
organize a branch of the associa-
ton here in Cottonwood, OF
course was easy picking as this
agent was a countryman and al
so a church member of mine, |
fell so easy that / did not get the
ordinary fifty-fifty split of COM
missions. We had over twenty
members, some at $500 some at
$1,000 per month. $500 per
month for eight years would
mature a 100000 contract, Il
good thing if people stayed with
it but if too many people make
their payments to maturity it
may not be so good as | will
show later.
In our organization we had a
loan committee, loan agent and
a collector. We made one
100000 loan as follows: The
rate of interest six per cent !;
monthly payments on this loan
of $3.50, besides the borrower
had to take 2 ten dollar a month
contract. Now this interest rate
was cheap enough as it looked to
all of us, but the Joker is that
you have only the use of all the
money one half of the time,
which naturally gives you II
per cent rate besides a $4,000
commission. $500 attorneys
fee to examine your abstract
Some rate.
Now out of our twenty men,
bers two stayed with their con-
tracts, two that joined later.
None of the local officers stayed
with the ship, ! was one of them
paid a year and stopped and got
nothing only the initial pay
ments, some stayed three years
and were able to draw out all
they paid in hut no interest, and
so on.
If you will allow your loca
banks OF if the government
would allow them to do that kline
of business they also coulC
mature that kind Of a contract
at 100000 and make a gooC
thing by it.
Now if every one would stay
with their contracts to maturity
let us see your chances; nine on
of every ten would go broke Of
default some way OF the other
in fact public accountants CLAIM
that although the state laws ar
strict and the securities of
building and loan association
have to be put up with tn
states as security for the depos
itors and the state auditor aud
its their looks ever so OTTER
there can not lie a correct audi
made unless, the auditor go fror
one town 10 the other from on
state to the other, make a pei
sonal appraisement of the loans
the state holds as security 10
depositors.
The building and loan associs
tions make a good many poo
loans as their financial state
ments will show on delinquer
contracts may be worded hit
different, but here is the biggeE
loss.
In order for a building an
loan association to prosper or
graft they need favorable legl
lation, at least state audltt
favorable to them and here
where they get in politics as 70
lows: In order to elect their me
they have 10 make the POLITICS
a ten OF twenty to one loan thi
is if he has a house wort
100000 they loan him as Il
campaign may require up
100000 90, when they get sta
ed they have to stay with M
and the dear hungry investli
public pays the bill.
Another great danger OF SUI
association. 1t is cooperatlN
every deposition has a vote, VIII
4.