The Waterbury Democrat., 1935-03-20

Graham, chairman or the aSSocld- tion's campaign for new members, at a meeting of the Rotary Club today. Harold Turnblom was in- troduced and welcomed as new member.
 Drive Progress Continues
 Continued good progress in the Building and Loan drive for new members was being reported by team members to their captains to-day. Monday a total of 9G new subscribers and 400 shares were added, according to reports made at the luncheon on Tuesday. Since that time the team members have been very active and a fine report is expected at the next meeting of teams and captains which will be held tomorrow noon in the Elks hall. No meeting was held to-day.
 In an interesting talk yesterday, Walter P. Schwabe, State Building and Lo1n association president, urged the Naugatuck association to become a member of the Fed eral Home Loan bank system. He said it would allow the local as- sociation then to have the power to draw $100,000 credit in "A hours if necessary. It would be necessary for the association to own about $5,0O0 worth of stock in this federal organization. The federal corporation woulud have no control of the local association, the speaker continued. A copy of the h., ctofo hn n kinO officials concerning the financial would be submitted to the federal organization once a year. It de- clares dividendes and under it., various form of shares which are now barred from being sold, would be allowed for sale. It pays 3h % interest and is & flexible proposition.
 The Naugatuck group was praised by MT Schwabe for being at least one live group in the state. He said Connecticut with only $24,- 100000 invested in shares as com- pared with $500,000,000 in Massa- chusetts and 800 million in New York is tagging far behind the amount it should be.
 You have splendid crew of men here, he said and there is no doubt your drive for members will be successful. He congratu- lated the Chamber of Commerce here for its vision in supporting the local Building and Loan asso- citation in it's drive.
 Relates History
 The Building and Loan was first organized in Pennsylvania. and consisted of group banded to- gether to subscribe certain amounts of money. Each drew lots and the winner was the first to have his house built. After all houses had been erected the group dis banded. This was known as a terminating association.
 A serial plan association was the next to be formed and in the 1S90'H the permanent plan was adopted under which the shareholder stands on his own feet. This requires no large maturities of shares he pointed out.
 Of a total of 20 billions in- vested in first mortgages in the United States, Building and Loan associations holds from 61a to billions, the largest amount helG by a single unit. Insurance com panies rate second in this re- spect and Mutual Savings banks third.
 in this country and the federal government, headed by President Hoover, in 1882 recognized the sound basis of the Building and Loan association plan by using the idea as basis when the home loan bank system was started.
 Amortized mortgages are con- sidered the proper kind to have in the homes, being better than de- mand mortgages, MT Schwabe told the group. Because of the adop- tion by other groups, including in surance companies of the Build ing and Loan ideas, these associa- lions will now have more compe- tition.
 Under new amendments to state laws, the direct reduction mort gages will be allowed, the speaker declared. The payment on & $3,000 mortgage for instance un- der the Building and Loan woulud be the same each month but each month less would be paid on the interest of the mortgage and more on the principal. The investor could arrange for the number of years he would wish to take to pay off the mortgage.
 Anybody you get to invest in the Building and Loan will be friend of yours for life" he said in conclusion.
 Legion to Meet
 A meeting of the Naugatucl: post, American Legion will be held tonight. At that time plans for Yankee Division night will be made. Also plans for show which the Legion expects to put on after Lent will be completed. A large attendance Of members is request ed as much important business IS to come up. The meeting will De in the Legion rooms in Pythian hall. Start Inspection
 Inspection of farms and equip- ment of the 13 bidders for the bar bage contract is being started by the committee named to investigate by Warden John ]. Sheridan. con- sisting of Burgesses Joseph Din neny. Victor Burkus and Tracy Noble. The contract is expected to run for three years. Bids ranged from $1,S00 to $4,50O. l.. Kswaniewski. present collector. re- ceives $2,900.
 There was some discussion Of the work, done by Mir Kwasnie wskj some reporting having heard com plaints about it. The committe. is, avr .toA tn tCiriui, is. A,..s