Milford chronicle., 1931-04-17
THE BUILDING
'ANDLOAN AND
WHATIT MEANS
Demands For Loans In!
Milford Were More Than
Banks Could Meet.
'If Youth but knew what Age would
crave
Many q penny Youth would save"

"If Youth but knew what Age WOulC
crave
Many penny Youth would save"
This is one of the maxims written
ON the 1880 statements of the Kent
e. Sussex Building & Loan AssOcia-
ton. Another is do something
have something, and be something
spend less than you make and you
will have a saving fund to your
credit" That was what the Build
ing & Loan was organized fOr-to
help people to buy or build homes,
and, in order to have sufficient
money to pay for them, they may
borrow it at so interest from thd
Association. That is its purpose, I'd
teach people to live moderately and
yet get ahead, and it is succeeding.
About 1919 the demands for loans
in Milford were more than the banks
could meet. Some of the prominent
citizens of the town got their heads
together and the result was the
Kent and Sussex Building & Loan
Association. DR.. G.. Layton Grier,
VIM. V. Sipple, Louder N. Hearn,
and the few others who organized it..
now have the satisfaction of know
ing that the Association is the sec
o1id largest south of Wilmington. On
the sixteenth of March this year,
the amount of money paid to invest
ment stockholders was $132,000-in
addition to $50 100000 paid on mort
gages-the largest in lower Della
ware. That is how the Building &
Loan has advanced since 1919.
The officers of the Association arc
l., N. Hearn, president; VIM. V. Sip
pie, vice president, and T. A, Kirby,
secretary and treasurer. The direc-
tors are VIM. V. Grier. J. e. Whar-
ton, DR., J. B. Derrickson, Joshua
Bennett, Jr.. A. E. Archer, H. NJ.
Deputy, Il. A. Derriokson, J. S. Hall
lett, c. d. Holzmueller, C. u. Abbott
and Joseph +. Cross. The attorneys
hired are James NJ Satterlield of
Dover and Andrew J. Lynch of
Georgetown. The directors meet
ihgs are held the first Wednesday
night of each month, after the first
Tuesday.
To person who is not acquainted
or familiar with the Building &
Loan. il is hard to understand its
advantages, or so thinks Mr.. Hearn,
the president. But he says, as soon
as people know what it is all about,
they begin to appreciate such an as
sOciatiOn. One magazine writer says
there is a secret as to how the loan
works Here is how he explains it.
"The man who borTOws ON the B. d.
l.. plan pays the association the sum
of $40 per month for every $1,000 he
borrows. Part of that is devoted to-
ward reducing the principal sum of
the borrowing, the rest of it goes T,
toward paying interest on the exist |
ing principal Gnterest being asses |
sod at the legal rate of 696 per
year,. Obviously. the principal sum !
of the debt will grow smaller from !
month to month. reducing the inter-
est charge; obviously too, since the /.
borrower must go on paying $40 per
month for every $1,000 borrowed
during the life of the mortgage, the
proportion of that $40 which will be
devoted to mortizing principal will
increase. 1t is tho ben
Gift adhering to this constantly in
creaSing diminishment of principal
which compose the advantages and
the secret" of the u. &
L. way"
AS an investment for saving
fund, a person may buy shares of
stock, for which he pays one dollar
per month for each share. At ma
turity they are worth 5000 each.
But, to the borrower it is different.
If person wanted the 5000 perhaps
to pay on home, he must pay his
dollar, plus another dollar for inter-
est, thus paying two dollars per
month for each share until the stock
natures, which is usually eleven
and half years. It is a complicated
process. to be sure, but very simple
when understood and the investor,
lr borrower always comes out 1
ahead. and that is where the adyan-
age lies.
Now. let's go on and see what the
Building &c Loan earns in a year.
curing 1880 the net earnings were
1913 963.OS, or 6.2O2% on their in
'ested capital. The sOundness of the
is indicated by the finan-
'ial statement issued at the close of
heir fiscal year. June, 1880. which
hOws that the earnings due the
amounted to $147,-
i61.16.
Alice Breme /