Rensselaer Republican, Volume 20, Number 24, Rensselaer, Jasper County, 16 February 1888 — The Practical Workings of a Building and Loan Association. [ARTICLE]

The Practical Workings of a Building and Loan Association.

Lafayette has a large and very successful building and loan association and the following description of its practical working and management, abridged from the Daily Call, will give a fair idea of some of the workings of all similar societies, organized under the laws of this state: Th.e affairs of the association are managed by nine directors; three of whom are elected annually. There are only three salaried officers, ‘to-wit: Secretary, • Treasurer and Attorney. The latter is re- ■ quired to pay over to -the association all fees received by him for all legal services connected with the work; and this would exceed the salary paid to him by the association. The secretary and treasurer are each required to, give bond with approved security for a large sum, to guarantee a faithful perfomance of their duties. The treasurer is compelled to deposit the entire receipts of each week in bank within two days next after the receipt of same; the funds cannot be drawn from bank unless authorized by the directors, and all orders must be signed by the presidant, secretary and treasurer. Every stockholder is required to pay one dollar entrance fee, and a weekly installment of twenty-five cents per share, and a quarterly assessment of twenty-five cents per share to defray expenses. After one year any stockholder may withdraw from the association and be entitled to received the amount paid in ou the stock, together with six per cent, interest on same, less all fines and other charges thereon. He may also withdraw at any time during the year by giving three months’ notice, and receive amount paid in, without interest. The funds of the association ou hand will be sold at each,monthly meeting of the directors to the members who bid the highest premium. Six per cent, interest per annum will'be charged in addition to the premium. Any member borrowing money from the Association must give approved security, and pay all expenses necessary to perfect such loan. _ The advantage of borrowing money from the association over borrowing eastern capital will readily be "understood. You can pay the association in weekly installments, or the whole amount at any time, while the Eastern capitalist will have to be paid in bulk and at a fixed time. All profits or gain derived from any and every source, over and above actual expenses, will be equally divided among the stockholders in proportion to thg amount of stock held by them, and where the profits, - together with the weekly assessments, amouut to enfiugh (which will probably be in six years) to make the stock worth its face or par value, the whole amount in cash will be returned to the holders thereof. Again, it is. a good investment for those who do not desire to borrow. The earnings will .be more than twice those of any savings bank, and there can be no question whatever as to the protection of investors. We feel quite confident if the psopie geneuerally fully understood the workings of the Citizens’Building and Loan Association, that the entire amount of the third series would be subscribed for within thirty days. Na organization in the 1 State offers as good an opportunity tor safe and profitable investment in a small way as the Building Association; and there is no better way for a man of moderate means to secure a home than through its assistance. During the past year a number of dwellings have been erected by the Association, which are now owned by its members, and instead of those members throwing away their money as they formerly did in paying rent, they now apply the rent in paying for their homes.