San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-09
BUILDING AND
LOAN BUSINESS
VERY POPULAR
Associations Exceed TO-
600 and They Are Adding
Materially to Capital.
MEMBERS AID A CITY
Not Only Cooperate to
Help Themselves But Pro-
vide Funds for Community.

What is a Building and Loan Asso.
citation and does it pay? The an
swer to these queries covers a wide
field and tells the story of one of
the best and safest forms of real
estate development and investment
that has ever been evolved. Natur-
ally the success of the. association de-
ponds, like all enterprises, on able
u and honest management but so many
safeguards are thrown about these as
sociations in most localities that fall
ures seldom result.
The growth in deposits and number
of new associations has been larg-
er in 1923 than any previous year.
The total deposits as nearly as can
be learned on January ], this year
are S3,9OO,OO0,0OO and the number Of
associations at the present time is sew
eral hundred over 10000. Many of the
sections have been active in the Or
ganization of new associations, while
those in the East and Central West
have added millions to their resources
all Of which proves that the American
people have started saving their money
as never before.
Many Inquiries Received.
Many chairmen receive letters from
different cities asking what the Dene-
fits of Building and Loan AcsUcia-
ton are to community, and the fol-
lowing is as good an answer as can be
given says writer in the National
Real Estate Journal.
The building association is n mu-
tual, cooperative institution usually
under articles of incorporation issued
by the state and composed of mem
bers who have associated themselves
for their mutual benefit and financial
advantages. The membership of this
association may be divided into two
classes of members. The saving MEM
borrowing members. The saving men,
bers use it as a place to deposit
from time to time, such savings rs
they are able to spare from their in
come. The borrowing member uses II
as a place to borrow money to build,
repair, or buy home or any other
useful purpose for that matter, and
at the same time repay their loans
Systematically with their savings. In
this way they lend money to each
other, share each others profits, and
work together to help each other.
Various Plans Are Used.
"These building and loan associa-
LUIS dIG
methods. Some under the so-called
Dayton plan some under the Serial
plan and several other plans each dit
fering from the other. All the agencies
should be encouraged as long as they
encourage systematic saving and fur
nish money to borrowers at the least
possible rate
Uniformity Of Methods Being Urged.
The greatest growth is in the states
that have the most progressive methods
and render the best service" 1t is
hard to say just what should be done.
1t will require consideration and dis
cussion to bring about the desired re-
suits. 1t will have TO be determined
by mutual understanding and agree
ment. The fundamentals are the
same as a general rule but there is
wide difference in the structures
that have been built upon them. To
bring these together in some cases
would only require slight changes
while in others it would involve re-
forms.
Over the country these associations
are known by probably dozen diff
ferent names. This detracts from
: their strength. If there were one
name and it was known over the coun-
try by this one name, it would have
the power and potency of trademark
that would be recognized by the
masses everywhere. Concentration
means a strength.
Federal Taxation a Problem.
The main question today confront
ing Building and Loan Associations
in the United States seems TO be that
of Federal Taxation, a question having
its origin in the lack of standardiza-
ton among associations in their meth
DDS OF operation. 1t is more urgent
in the last decade than previously,
because the expense of the government
has increased and the competition of
other financial institutions is more
intense.
1t is felt that it had its origin in
the lack of standardization of methods.
The method of operation is looked at
rather than the results accomplished.
1t is believed that it has always
been the intention of Congress TO ex-
empt from federal taxation all Build
ing and Loans Association which have
remained true to the original two
fold purpose of these associations, en-
couragement of thrift and loaning on
homes only. The leaders in Congress
say that no institution can be Build
lbdu AScttlhtibh "
exemption, unless it makes loans only
TO its stockholders.
Much Confusion in Tax.
Numerous organizations in differ
ent states have been ordered to pay
both income tax and capital stock tax
. while numerous other in the same
states and cities have been declared ex-
empt. This differentiation is insisted
upon even though all of the associations
have been following the state laws APP |
plicable to their organization and OPP
GRAFTON. Many of the organizations
that have been ordered to pay this |
tax are in fact, more mutual, in the |
sense that all customers share equally |
in the profits, than some of those OF
ficially exempted.
Building and Loan Associations |
have proven themselves not to be prof. |
teers but to- loan money ut the least /
possible rates to borrowers and should /
have the full confidence of the pub
lie always.
Rapid progress is being made in the |
completion of text books which will
be finished this winter. These books |
are TO educate workers in the build !
ing and loan field. 1t is to be re- |
GREETED that these loan associations |
doing nearly a four-billion-dollar bust
Hess have no building and loan IL
-
Not Experienced.
Ill 80 la NINA