The independent. [volume] (Elizabeth City, N.C.) 1908-1936, 1928-08-03
UP THE.
BUILDING A N D.
LOAN BUSINESS.

Elizabeth City is to be the
proving ground for something
new in Building & Loan Asso-
Citations. Building & Loan As
sociations usually are conser-
vative mutual borrowing and
lending corporations, with lit
tie operating expense that take
years and years to grow. The
Albemarle Building & Loan As
sociation of this city, now IA
years old and doing a business
of $4,000 a month, took three
years to grow TO pcint where it
could pay secretary n nominal
salary. The Howard Plan Build
ing & Loan Association, now being
organized in this city proposes TO
start off with $2.G0O,OOO of shares
subscribed.
Instead of waiting fr the new
building and loan association to
grow naturally, conServatively and
slowly as mutual building and loan
associations usually do. the Howard
plan puts a staff of ten high pres
sure statesmen in the field: 1000
persons with incomes in Elizabeth
City will he personally canvassed
and persuaded tcO buy 500 shares
of the new building and loan stock
on payments as, low rs 67 cents a
menth. with a promise Of 3 to 8 1-2
per cent OH their Investment The
promoters believe there are few of
the. 1000 incomes in Elizabeth City,
men. women and children who can't
put aside As nest egg at 67 cents a
month OH the hundred dollars.
The originator Of the Howard
plan building and loan Is E. NJ.
Howard, of Portsmouth. Va. who
has been affiliated with the build
ing and loan business for a good
many years. The sponsors OF the
plan in Elizabeth City are Winfield
A. Worth and Fentress Horner OF
the law firm of Worth & Horner.
4 current rrmOr that the First &
Citizens National. Bank group Is
back of the promotion Is denied ny
W. G. Gather. vice president Of the
First & Citizens National Bank.
Il was approached by Mr.. Worth
and invited to consider the prOpo-
sition.' says Mr.. Gather. but ]
told him frankly that I'm justice
TO other interests at this time l
could not take on anything else
Neither the First & Citizens nor
myself is financially interested In
the new association"
Where MIR. Howard Comes In
The Howard Plan Building 4
Loan differs in one important de-
tail from the ordinary garden va
riety Of mutual building and loan
associations in that it is mutual
ND to a certain point only. In the
ordinary mutual building and loan
all fees and fines go into the com
mCn treasury for the benefit of
the borrowers and investors. I'm
der the Howard plan the fees anu
fines. which represent a consider
able sum in the operation Of IN as
sociation of this sort. are diverted
TO shareholders at $jC9. each with
dends for the holders Of what Is
kn, WI. as Charter Certificates.
These Charter Certificates are sold
TO shareholders at$5.O0. each with
replt ;ealtations tlI9t they should
net the holder Il return of $3.50 Il
wear on each $500 certificate. The
sale of Charter Certificates is lim-
tied to one certificate to each share
of stock sold TO charter members
only.
Mr.. Howard and the promoters
get their pickings out Of the sale
of these Charter Certificates; OBJ
viously a promoter and ten high
pressure statesmen with headquar-
ters in the Virginia Dare Hotel Ar
cade wouldn't work for nothing.
There are numerous fines and fees
collected by building and loan as
sOciation-entrance fees. withdraw
al fees and fines fer delinquent
shareholders. All Of these fines and
i'fees are shared by the holders OF
Charter Certificates after S1r. How
ard gets IL small percentage In the
way of royalty for the use of his
plan
Some, long identified with the
Albemarle Building & Loan Asso'
citation that has served the COM
munity notohly for IA years. view