Evening star., 1934-07-07
S19O,0OO,ODO PAID
TO SHAREHOLDERS
Building Loan Associations
Voted Dividends During
Past Six Months.

Dividends totaling $150,000, 600 were
voted to shareholders IN savings,
building and loan associations
throughout the country for the semi
annual period ended July l, 1t was
reported by the United states Build
ing and Loan League.
About l0,O00,0 900 individuals shared
in the distribution, some 4,50U,O00 OF
them receiving earnings on holdings
OF less than Sl00, showing the pre-
ponderance OF low-lncome savers IN
the associations, according to Morton
Bodfish. executive vice president OF
the league.
Shareholders in these thrift and
home financing institutions are now
protiting by the conservative manage
ment exercised during the past Two
years" said Mr.. BodflSh. "Ihe aver
age percentage OF earnings aIlocated
to reserves during the past four or nve
sem1-annual dividend periods has not
only helped strengthen the invest
ment, but has been put TO WORK so as
to increase the earning power OF the
association
DItlucIluS EIOLu CHdICSs
In connection with this perlods
dividend allocatlons, Mr.. Bodtlsh re-
ports that practically tenth OF the
dividends paid by American business,
industry ana community investments
to shareholders from 1929 through
1882 were derived from building ana
loan shares. HIS t1gureS were COM
piled after reviewing the Department
OF Commences recently released
analysis OF the national income IN
those tour years.
Dividends, as listed by the Depart
ment OF Commerce study, are cIaSsed
as properly income, the league otn-
clal continued. This type OF income
declined less than other types during
the period studied, but the DuIIdlng
and loan portion OF the dividends de-
cl1ned not quite half as much as the
total property income. Ihls was a
particularly fortunate circumstance
for the IoW-lncome groups, since II Is
one OF the few incidents wnere they
felt the depression less heavily Jnan
those higher up IN material welfare.
''AS estimated by the Department
industry and commerce were S5,964,-
100000 in 1929, SIS, 795, 900, 900 in 1880,
$4,313 100000 in 1881 and $685.
900, 1000 in 1882. The building and
loan association dividends, according
to careful estimate, we're 100000,
or 8.3 per cent of the total, in 1929;
S48O, 100000, still 83 per cent of the
total, in 1890; S440 900 900, or 102 per
cent of the total, in 1881, and S430,-
100000, or 165 per cent of total divi-
dends, in 1882.
Working Glasses Benefit.
"The figures from the department
show that an average of 63.2 per cent
OF all dividends paid by commerce and
industry during the four years were
to persons making more than $4,000 a
year. In contrast, the thrift and
enhancing institutions variously
known as building and loan associa-
tions, savings and loan associations,
cooperative banks and homestead as
sociations. pay their dividends to the
working classes in four out of five
cases. 1t is particularly gratifying,
from the social standpoint, that build
ing and loan association earnings de-
clined only IA per cent over the four
year period. in the face of a total
property income decline of 81 per cent
for the same span.
THE non-speculative characteristic
of building and loan investments par
TALLY accounts for their maintenance
of earning power so far above the
average dividend-paying institution in
timeof depression. The confning of
their operations to the one specialized
field which they know so well, the
small home financing operations in
thousands of localities. has contrib
uted to their safety and points en-
phatically to the role they will con-
tinue to play in financing the buy
ing, building and repairing of small
homes