Evening Republican, Volume 19, Number 290, Rensselaer, Jasper County, 8 December 1915 — BY-LAWS COMMITTEE WILL REPORT SOON [ARTICLE]

BY-LAWS COMMITTEE WILL REPORT SOON

Building & Loan Associations Studied In Preparing Rides For Local Institution. After members of the committee appointed to frame the by-laws of the Building, Loan & Savings Association had spent some time in studying the rules of various associations and had given it some thought a meeting was held Tuesday evening and thte, essentially important features were discussed and agreed upon and Secretary Dean, of the association, who is also a member of the by-laws committee was instructed to ascertain the term payment plans of some other associations based upon interest charges which will be recommended to the stockholders when the meeting is called to discuss the bylaws.

Nit has been found that the associations in other cities are organized on two distinct plans. One is for the investor and the other for the borrower. The by-laws conundttee favors a rate of interest that will be an attraction to the home builder and will not be severe on him and will at the same time afford the investor a fair rate of interest on the money invested. It will probably recommend three or four classes of stock. One wtill be paid up stock with a guaranteed rate of interest and will not share otherwise in the earnings of the association and will be absolved from any liability and have no voice in the control of the association. Another class will be the investors' stock at $2 per share per month, and a third kind will be 26 cents per week. There two kinds will mature when the payments and the accumulated dividends amount to SIOO per share. The weekly payment plan has proven popular in some places and affords an opportunity for those who can save very little to put thefir money in a safe place and have it earning dividends from the start. Valparaiso has a remarkable association and reports that in more than eighteen years has not made a foreclosure. It has a capitalization of $1,760,000 and stock in force amounting to $1,589,625. There are 638 investing members and 376 borrowing members. The association loan** its | money at 6 per cent. There are bunj dreds of homes in Valparaiso built ' and owned through the add of the as- ’ sociation. It is hoped to be able to hold a meeting one night next week for the approval of the by-laws and then order the books and have everything ready to start the stock payments the first of January. Secretary Dean continues to hear from many who desire to sifacribe for st6ck and to hear ttam others who

have held or now hold stock in other associations and all are pronounced in their praise of building and loan associations as upbuilders of the communities in which located. The success of the Christmas savings accounts at the First National Bank the past year shows what can be accomplished in the way of savi&gs when people are interested and the future of the association should be very bright. Already the board of directors are receiving inquiries from prospective builders and it is probable that a loan or two will be considered by the first of March. If there is a considerable amount of prepaid stock more money will* be available. The board of directors on the recommendation of the by-laws committee will consider the plan for saving* accounts and it is probable will bs able to offer to small depositors a rate of interest considerably better than is paid by banks. These things will be discussed and agreed upon by the directors before they are presented to tire general meeting of stockholders. Secreary Dean would like to heat from those interested in the weekly payment plan on tire 25 cents basis and will begin taking pledges for that class of stock as soon as H is approved by the association.