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 -• i 6. O
 
 Cyclopedia of Building, 
 Loan and Savings Associations 
 
 HOW TO ORGANIZE 
 
 AND 
 
 SUCCESSFULLY CONDUCT THEM 
 
 EMBRACING 
 
 The Origin and History of Co-operative Societies; Object* and Benefits of Building 
 Associations; How to Organize and Successfully Conduct Them; Leagues; 
 Legislation; Constitution and By-Laws; Forms and Description of 
 Books, Blanks, and Papers; Interest and Dividend Tables; 
 Auditing and Supervision; and a Comprehensive Va- 
 riety of Practical and Useful Information and 
 Suggestions, with Special Features 
 Relative to Advertising. 
 
 BY 
 
 Henry S. Rosenthal 
 
 Fourth Edition. Revised and Enlarged. 
 
 1920. 
 
 A Mm CAM Building Association News Co. 
 
 Cincinnati— Chicaco. 
 
 % J I , 
 
 r> 9
 
 Copyright 1930 
 
 By 
 
 Henry S. Rosenthal. 
 

 
 
 -I 
 
 IS 
 
 Preface to Fourth Edition. 
 
 THE nine years that have elapsed since the publica- 
 tion of the Third Edition of this book, and especial- 
 ly the last half of that period, have witnessed changes 
 greater and more important than those in any half-century 
 of the Christian era. It has witnessed the beginning, 
 progress and close of the greatest war known to history. 
 
 In the shock of this mad conflict, the entire structure 
 of civilization has been shaken to its very foundations. 
 Since the termination of hostilities the human race has 
 had barely time to catch its breath and make a dazed 
 survey of the ruin and destruction that war has wrought; 
 and to form a growing conception of the changes which 
 these recent years have brought to all lines of human 
 activity. Civilization today is facing problems that were 
 undreamed of five years ago. Commerce and industry, 
 capital and labor, manufacturing and mining, agriculture, 
 and transportation are all confronted by issues of vital 
 importance. They can be solved only by the application 
 of the highest wisdom and most earnest efforts of men 
 and women everywhere. 
 
 One of the most deep-going questions that America 
 must consider today grows out of the increasing needs 
 and the more and more strenuous demands for additional 
 homes. The ultimate unit of which our whole system 
 of government is composed is the family, and the family 
 kingdom is the home. One of the seriously disturbing 
 factors which have attracted the attention of thoughtful 
 Americans for some years past is the growing ratio of 
 our population who have no homes of their own, but who 
 
 [iiil
 
 PREFACE. 
 
 live in rented houses. A rented house or apartment can 
 never be a real home in the highest and truest sense of 
 the word. 
 
 A nation composed of renting tenants always lacks the 
 highest type of patriotism. This enlarged ratio of tenant 
 citizenry is not merely a social and economic evil, to be 
 lightly regretted and then dismissed and forgotten. It is 
 a real, vital danger, insidiously undermining the founda- 
 tions of our Government and threatening the very life 
 of the nation ! There is at this time a serious housing 
 shortage in this country. This condition is not merely 
 local, affecting a few communities. It is nation-wide, and 
 exists in practically every community in America. This 
 housing shortage is not a new thing, however, arising 
 wholly by reason of the war. The war simply aggravated 
 a widespread, and rapidly growing trouble of peace times, 
 and which the country must now deal with. The growth 
 of tenantry is not confined to the towns and cities of 
 America, but the same conditions may be observed in 
 rural and agricultural communities. The increase in the 
 ratio of farms operated by tenants is growing apace in 
 every state of the nation. 
 
 In all efforts to solve this problem of tenantry and aid 
 city and farm tenants to become home and farm owners, 
 the financial factor is always the one most difficult to 
 solve. But a solution must be found if our Government 
 is long to endure. 
 
 Thoughtful students of these questions are fast coming 
 to realize that in the building association system of Amer- 
 ica zvill be found the most potent and efficient instrument 
 to aid in solving this vital problem. The public is com- 
 ing more and more to appreciate that in this system is 
 found the only type of financial institution known to the 
 economic life of our country which confines its activities 
 
 fiv]
 
 PREFACE. 
 
 and devotes all its resources to the great object of teach- 
 ing thrift and aiding families to build homes. 
 
 This housing problem, to be sure, is not confined to 
 America. It is present in still more aggravated form in 
 nearly every civilized country. In many other nations 
 the governments are dealing with the problem in charac- 
 teristic fashion. They are extending government sub- 
 sidies and expending government funds to finance the 
 building of homes which are sold to the citizen on long- 
 time contracts by the government itself. This plan of 
 extending government aid to private citizens is contrary 
 to the genius and theory of our Government. The ac- 
 cepted idea in America has always been that the true re- 
 lation between the government and the citizen should be 
 one in which the able-bodied citizen supports and main- 
 tains the government, rather than that the government 
 should support and maintain the able-bodied citizen. 
 America has such an abundance of wealth and such in- 
 exhaustible resources, that it is only needful for proper 
 channels to be provided whereby the solution of this 
 great problem may be easily attainable. 
 
 How to solve this tenant question is one of the greatest 
 issues now before our country. It is the one great line 
 of work for which building associations exist. The last 
 decade has witnessed a tremendous growth in the strength 
 and resources of these institutions. Their ability to 
 handle and solve this vital problem, assures happy relief. 
 These institutions have grown in number and in re- 
 sources until the American building associations are to- 
 day the largest and strongest mutual co-operative system 
 of institutions that the world has ever seen. They have 
 been evolved from the needs of our people. Their strength 
 and popularity are abundant evidence of the fact that they 
 have accurately measured and fitted themselves to supply 
 a vital, national need. Great as are the results already 
 
 [v]
 
 PREFACE. 
 
 accomplished, it is easy to see that they have only 
 scratched the surface of the opportunities which await 
 them. 
 
 Plans are now under consideration that will greatly 
 strengthen these institutions and open to them a much 
 wider opportunity for service. Among these is the sug- 
 gestion that building associations be permitted to utilize 
 the mortgages lying in their vaults as a basis and security 
 on which to issue a standard type of bond, the entire 
 proceedings to be adequately safeguarded. It is believed 
 that this will provide very large additional resources 
 which building associations may utilize in helping to 
 finance additional home building, and thus multiply the 
 useful service they render to the respective communities 
 where they operate. 
 
 The many material changes and improvements that 
 have been developed in building association plans and 
 methods in recent years, the increasing national need for 
 the special services rendered by these associations, and 
 the almost limitless opportunities that lie before them, 
 may be regarded adequate reasons for the appearance at 
 this time of a new edition of this work. 
 
 The author desires to express his sincere gratitude to 
 Mr. K. V. Haymaker who has rewritten several sections 
 in this revised volume and to Dr. Alfred L. Hall-Quest 
 of the University of Cincinnati, who has edited the entire 
 manuscript and prepared the Index. 
 
 The Author. 
 
 Cincinnati, Ohio, April i, 1920. 
 
 [vi]
 
 TABLE OF CONTENTS. 
 
 CHAPTER I. 
 Co-operation. 
 Origins of Co-operating Business; Conditions of Successful 
 Co-operation ; Examples of Co-operative Concerns ; Build- 
 ing Associations as Co-operative Institutions 1-8 
 
 CHAPTER II. 
 Building Associations. 
 Name and Title ; Definition ; The Aim and Purpose ; Origin ; 
 Essential Features; Saving and Lending; The Saving 
 Feature ; Advantages of Membership ; Unlimited Savings ; 
 The Lending Feature; How Borrowing Helps Saving; 
 Periodicals Devoted to Building Associations ; Changes of 
 Management Announced in The News; Recognition by 
 Congress; Statistical Information 9-28 
 
 CHAPTER III. 
 Historical Review. 
 Societies in England ; The Movement in Other Foreign Coun- 
 tries; Early History in the United States; The First 
 Building Association in the United States 2f*-34 
 
 CHAPTER IV. 
 The Results Achieved by Building Associations. 
 Means to Financial Advancement; Methods of Operation; 
 Helping Men to Independence; A Man is King in His 
 Own Castle; Home Building Made Easy and Dignified; 
 Home Building Will Beautify American Life; The Fed- 
 eral Reserve Banking System ; The Future of the Build- 
 ing Association Movement .55-46 
 
 CHAPTER V 
 I'.i ii.imng Association Leagues. 
 Origin of Leagues; Organization of State Leagues; Inter- 
 national League ; County, City and Local Leagues ; What 
 a League Can Do; League Membership; Tin P«M 47-58 
 
 Iviil
 
 TABLE OF CONTENTS. 
 
 CHAPTER VI. 
 Legislation and Taxation. 
 
 Legislation in England ; Provisions of the English Law ; 
 Defects in the English Law; Laws in the United States; 
 Improved Legislation ; Litigation ; Exemption from Taxa- 
 tion ; Forceful Arguments by Hon. Julius Stern; The 
 Association is a Clearing House for Its Members; 
 Summary of Revenue Measures ; Summary 59-81 
 
 CHAPTER VII. 
 Plans ok Associations. 
 The Terminating Plan ; The Permanent Plan ; The Serial 
 Plan; Paying Off a Matured Series; Advantages of the 
 Serial Plan ; The Permanent Plan ; Paid-up Stock ; The 
 Fundamental Principles of Building Associations; Fines 
 for Delinquents; Maturity of Shares; Arguments Favor- 
 ing the Permanent Plan ; Withdrawal Rules ; Reserve 
 Fund; Premiums; The Charging of Fees; The National 
 Building and Loan Associations; Cancellation of Fees; 
 Special Deposits ; Permanent or Guaranteed Stock ; Farm 
 Loans or Rural Credits 82-124 
 
 CHAPTER VIII. 
 How to Organize. 
 
 Necessary Conditions; Preliminary Steps; Choice of Name; 
 Capital Stock; The Constitution; By-laws; Incorporation; 
 Officers; Headquarters; Recruiting Members; Co-opera- 
 tion with Banks Desired; New Regulations 12.5-143 
 
 CHAPTER IX. 
 Stock and Stockholders. 
 
 Increase of Stock; Stock is Property; Shares Transferable; 
 Stock Payments or Dues; Paid-up Stock; Other Facts 
 Concerning Stock; Certificates of Deposit 144-151 
 
 CHAPTER X. 
 Definition of Stock and Stockholders. 
 
 Difference Defined; Serial Associations; Borrowing Mem- 
 bers ; Safety of These Associations 152-156 
 
 CHAPTER XI. 
 Insurance. 
 
 Insurance Features; Health, Accident and Disability Insur- 
 ance ; Tornado Insurance ; Life Insurance 157-159 
 
 fviii]
 
 TABLE OF CONTENTS. 
 
 CHAPTER XII. 
 Duties and Rights of Members. 
 
 Membership ; Duties of Members ; Fines and Forfeitures ; 
 Rights of Members ; Corporate Rights of Members ; 
 Rights as Investors ; Dividends ; Rights of Withdrawal ; 
 Inheritance Tax Laws; Rights of Borrowers; Duties of 
 Borrowers 160-171 
 
 CHAPTER XIII. 
 Loans and Securities. 
 
 Premiums ; Nature of a Loan ; Mortgages ; Other Securi- 
 ties ; Assignment of Stock ; Sale of Securities ; Disposition 
 of Proceeds; Loans and Securities; Application for Loan; 
 The Necessity of a Plat ; Appraisement of Real Estate ; 
 Expert Appraisers; Mechanics' Liens; Straight Mortgage 
 Loans; State Supervision 172-187 
 
 CHAPTER XIV. 
 Corporate Management. 
 
 The Corporate Meeting; General Meetings; Special Meet- 
 ings ; Management of Corporate Meetings ; Officers : Their 
 Election and General Powers 188-193 
 
 I I1APTER XV. 
 
 Election and Duties of Officers. 
 
 Officers Required ; Elections ; Duties of President and Vice- 
 President; Duties of Secretary; Assistant Secretaries; 
 Duties of Treasurer; General Manager; Duties of Direc- 
 tors; Duties of Trustees; The Attorney: His Appoint- 
 ment, Duties and Compensation; Bonds of Officers; 
 Surety Bonds; Responsibility of Officers; Remuneration 
 of Officers; Salary of Directors; Salary of Secretary. ... 194-1313 
 
 CHAl'TKK XVI. 
 
 Powers %nd Liamlitiks. 
 
 Genera] Powers; Perpetual Successions; The Corporate 
 Seal-; Contract! and Agents; Suits; Pules; Special 
 Pwrs ; I Kssolution 344-220 
 
 [ixl
 
 TABLE OF CONTENTS. 
 
 CHAPTER XVII. 
 
 Practical Qukstions Answered. 
 
 Borrowing Money; Cost of a Loan; Time Required to Pay 
 Up a Loan ; Advantages of a Building Association Loan ; 
 Contingent or Reserve Fund; Undivided Profits; Quick 
 Assets; Mortgages — Custody, Recording; Insurance Poli- 
 cies as Collateral Security; Leaseholds; Taxes and Assess- 
 ments; Payment of Dividends; Dues; Deposit Slips; 
 Business Methods in Large Associations; Disbursements; 
 Paid-up Stock Ledger ; Semi-annual Settlements in Per- 
 manent Associations; General Remarks; Paying Off 
 Shares 220-341 
 
 CHAPTER XVIII. 
 Auditing: Its Necessity and Object. 
 
 State Examinations; Purposes of Auditing; Protection of 
 Corporate Interests ; Protection of Members ; Statutory 
 and Constitutional Requirements ; Economical, Labor- 
 saving, and Simple Methods ; The Balance Sheets ; The 
 Auditor the Representative of the Members; The Selec- 
 tion of the Auditing Committee ; Qualifications for 
 Auditing; Disqualification of Auditors; Assistance from 
 Officials; Change of Auditors; Compensation of Auditors. 242— 2-59 
 
 CHAPTER XIX. 
 
 Auditing : Its Methods. 
 
 Uniformity Impossible; Care of Books; Special Hints; False 
 Accounts; Errors of Omission; General Outline; Share 
 Contributions ; Proving a Cash Balance ; Secretary's Con- 
 tribution Book ; Monthly Secretary's Book ; Secretary's 
 Cash Book; Treasurer's Cash Book; Members' Ledger; 
 Withdrawals; General Ledger; Assets and Liabilities; 
 Auditor's Report on Special Matters; Auditor's Certifi- 
 cate ; Safety Insured 260-281 
 
 CHAPTER XX. 
 Reports. 
 
 Their Necessity; Legal Requirements; Preparation and Pub- 
 lication of Reports; Secretary's Balance Sheets; Specimen 
 Reports Illustrated 282-290 
 
 [x]
 
 TABLE OF CONTENTS. 
 
 CHAPTER XXI. 
 Rebate and Compound Interest Tables .• 291-521 
 
 CHAPTER XXII. 
 Distribution of Earnings — Permanent Plan. 
 Calculations of Dividends and Interest ; Application of 
 
 Profits ; Permanent Plan Tables 322-370 
 
 CHAPTER XXIII. 
 
 Distribution of Earnings. 
 
 Serial Plan ; Division of Profits ; Rules and Tables Exempli- 
 fying the Division of Profits Under Dexter's Rule and the 
 Partnership Rule 371-391 
 
 CHAPTER XXIV. 
 
 Legal Forms for Associations. 
 
 Specimen Blanks; Articles of Corporation (Ohio); Sub- 
 scription List; Bonds of Officers (Ohio); Mortgage 
 (Ohio); Mortgage Clause for Insurance Policies; Mort- 
 gage Collateral Note on Shares of Stock ; Waiver of 
 Mechanics' Lien (Ohio) ; Collateral Note for Loan on 
 Pass-Book ; Attorney's Report 392-404 
 
 CHAPTER XXV. 
 
 Books and Blanks. 
 
 General Suggestions; Book Accounts; Pass-Bpoks; Deposit 
 Envelopes and Slips; Necessary Books and Forms; Build- 
 ing Association Supplies 405-415 
 
 CHAPTER XXVI. 
 Juvenile Savings 410-423 
 
 CHAPTER XXVII. 
 Advertising. 
 
 Why Should You Advertise? — How Should You Adver- 
 tise? — Th<- Preparation of Advertisements ; Technical 
 Data 424-434 
 
 APPENDIX. 
 
 Constitution ; ByLawfl ; Laws of Ohio 435-479 
 
 Bibliography 480-492 
 
 Index 493-500 
 
 lxi|
 
 CHAPTER I. 
 
 Co-operation. 
 
 The first record of human co-operation is stated in the 
 well known words of the story in Genesis : it is not good 
 for man to live alone. While this has particular reference 
 to marriage it voices the basic principle of progress in 
 all fields of human enterprise. Co-operation is the watch 
 word of social achievement. Man has been called a social 
 animal. In fact, he resembles the bees and ants and 
 beavers in his application of the laws governing co-opera- 
 tion. Without co-operation business would be impossi- 
 ble, governments unknown, cities unheard of. Civiliza- 
 tion is nothing more than co-operation of the most intel- 
 ligent and sympathetic kind. 
 
 It may be said that co-operation is instinctive. Its 
 origin lies in the nature of life itself. Just as the many 
 members of our bodies work together for health, so all 
 members of the community must work together for mu- 
 nicipal, state, or national welfare. 
 
 A single individual, without help or companionship, 
 and without the aid of tools and implements made by 
 other hands, is one of the most helpless creatures that 
 the mind can imagine. In that situation he could not fell 
 a tree, nor build a house worthy of the name. He could 
 not with his empty hands protect himself from wild beasts 
 or the unkind elements. But as the race gathered into 
 families, and families combined into clans and tribes, and 
 these combined to form nations, always applying and 
 practicing co-operation, the result is seen in the progress 
 of the race and the development of civilization. 
 
 HI
 
 CHAPTER I. 
 
 While all great enterprises depend for their successful 
 accomplishment on co-operation of many minds and 
 hands, it is not always true that the fruits and benefits 
 of the enterprise inure to those whose efforts made the 
 success of the enterprise possible. Under the system of 
 business management which has developed into the pre- 
 sent "Industrial System" now almost universally applied 
 to the industries of the world, the building and financing 
 and management of the industry are in the hands of a 
 comparatively few individuals, co-operating in those 
 phases of the enterprise, while the manual work of opera- 
 tion and producing the goods for which the enterprise 
 was formed is usually done by wage-workers, toiling for 
 stipulated pay. 
 
 The most elementary principles of justice and equity 
 suggest that there should be devised some plan or method 
 by which the profits earned by an industry should be 
 distributed among all the parties contributing by their 
 money, their brains, and their labor to the production of 
 the goods turned out, such distribution to be proportion- 
 ate to the contribution which each has given to the enter- 
 prise. An attempt has been made in a few scattered con- 
 cerns to evolve some plan of profit-sharing among the 
 employes and workmen by which such an equitable dis- 
 tribution of profits has been approximated. The one 
 great difficulty in all these efforts has been the fact that 
 while it has been found fairly satisfactory so long as the 
 enterprise is profitable, when the capital invested therein 
 suffers serious impairment or total loss, that loss falls 
 wholly on the capitalist. The employe who shared in 
 the profits during prosperous times, bears no part of the 
 loss when adversity comes. 
 
 It is no part of the purpose of this work to suggest 
 a plan or method, by which labor and capital can share 
 
 [2]
 
 CO-OPERATION. 
 
 on fair and equitable terms in the results of a great in- 
 dustry ; but it is here referred to as one of the great prob- 
 lems, now before the industrial world for solution. The 
 statesman or student of social economy, or captain of in- 
 dustry, or labor leader, whether great or humble, whether 
 eminent or obscure, who can solve the problem and sug- 
 gest a plan or method, by which the rules of right and 
 justice, fairness and equity can be observed in the dis- 
 tribution of the products of an industry, among all the 
 factors contributing to the production, will be a public 
 benefactor, and such a solution will be a most valuable 
 contribution to the higher welfare of mankind. 
 
 While the problem involves many complexities and in- 
 tricacies yet, in view of what human ingenuity has ac- 
 complished in solving other problems which would seem 
 much more involved and difficult, its solution would not 
 seem impossible. It is of the greatest importance to the 
 happiness and well-being of the race to determine and 
 declare what are the just and equitable rights and rela- 
 tions of humanity in their dealings with one another. 
 Especially in these times must attention be given to the 
 equalizing of opportunities whereby men may live to- 
 gether more justly and without the exploitation of any 
 class of workers. 
 
 A co-operative business concern may be defined as one 
 organized and operated as a joint co-partnership, dealing- 
 only with its co-partners, and distributing the profits and 
 sharing the losses arising from the business on the basis 
 of what each co-partner has contributed to the enterprise. 
 The origin of the practice of conducting business organ- 
 izations on the co-operative plan is shrouded in the mists 
 of traditions and therefore cannot be stated with certain- 
 ty. Some authorities believe that the first successful CO 
 operative business organizations weir established in t hina 
 
 [81
 
 CHAPTER I. 
 
 many centuries ago ; but definite information as to the 
 nature, character, plans, and methods of these co-operative 
 experiments by the Chinese is not available. 
 
 Origins of Co-operative Business. 
 
 During the closing years of the eighteenth century there 
 was founded in England by the weavers of the mills of 
 Bradford a co-operative institution which is still in oper- 
 ation and with a marvelous record. At the outset a 
 handful of men established the institution for the co- 
 operative buying of a few staple necessities of life. They 
 were led to do this because of the reduced price at which 
 such articles could be obtained in large quantities, suffi- 
 cient, indeed, to supply the entire group, as compared 
 with the price which each must pay when buying the 
 smaller quantity required for his single family needs. 
 The saving shown by this experiment soon led them to 
 the addition of other articles to the list of supplies. The 
 membership increased very rapidly. Without detailing 
 the history of this movement, suffice it to say that this 
 experiment has extended its activities to many other 
 cities; and has expanded the list of commodities which 
 it handles to include practically everything in the line of 
 merchandising that can be named. They have established 
 in distant lands plantations where they cultivate and ob- 
 tain their own supplies of teas and coffee. They have 
 established for their own source of supply, great factories 
 for manufacturing their supplies of clothing, boots and 
 shoes, and many other articles. The volume of business 
 handled by these co-operative merchandising, manufac- 
 turing, and distributing institutions each year in England 
 is enormous; and the successful and efficient way in which 
 this tremendous co-operative business is being handled 
 has won the admiration of the commercial and financial 
 world. 
 
 Ml
 
 CO-OPERATION. 
 
 The success of these co-operative institutions in Eng- 
 land led to their establishment on similar plans and with 
 similar aims and objects in many of the English Colonies 
 throughout the world. The principles on which these in- 
 stitutions are operated have been copied by all the nations 
 of Europe. In Germany, France, Austria, Russia, Italy, 
 Denmark, and other European countries, (in fact all 
 parts of the world) the growth and development of co- 
 operation and the practical application of its principles 
 have been truly phenomenal. 
 
 Conditions of Successful Co-ofceration. 
 
 Wherever the co-operative institutions have been estab- 
 lished, they have been the same in their essential plan and 
 nature. They spring from the same social and economic 
 conditions, minister to the same needs and necessities, and 
 achieve the same results. To organize and operate such 
 an institution successfully, the community must be rather 
 densely populated, consisting mainly of persons of small 
 means and generally dependent upon their daily wages 
 for their incomes. These persons must have intelligence, 
 and a similarity of tastes and interests. There must exist 
 among them a strong element of mutual trust, confidence 
 and dependence. These conditions are usually found most 
 highly developed among laborers, mill, mine and factory 
 employes, clerks, shop and store assistants, wage-earners 
 and salaried employes with small or moderate incomes. 
 By systematic and persistent application of even the small 
 contributions which a large number of individuals in the 
 -tat inns in life above described can spare from their in- 
 come (while each contribution may seem small and trifl- 
 ing) the aggregate will suffice to capitalize a co-operative 
 concern of quite respectable magnitude, and produce re- 
 sults very helpful and beneficial to the membership.
 
 CHAPTER I. 
 
 When a co-operative concern of this character is planned 
 and operated on an economical basis, and is prudently 
 and honestly conducted by operatives skilled in the line of 
 business to which the enterprise is devoted, benefits and 
 advantages will result which could not be secured by the 
 individuals working for themselves. 
 
 In various parts of the United States it is true that 
 there have been many unsuccessful experiments made in 
 co-operative effort in manufacturing, merchandising and 
 distribution of commodities. While in isolated points co- 
 operative concerns of this character are still in operation, 
 there have been none whose success has been so notable 
 as to attract serious attention. There has been in recent 
 years, however, a very noticable growth of general public 
 interest in certain lines of co-operative effort, and while 
 few have achieved great magnitude, it is very encourag- 
 ing to note that the principles of co-operation are being 
 applied to a great variety of lines in a rapidly widening 
 area, and in fast growing numbers. It is worthy of note 
 that this application of the idea of co-operation has been 
 adopted most rapidly by the farmers and rural dwellers 
 of America, while in Europe its principal application has 
 been in the towns and cities. 
 
 Examples of Co-operative Concerns. 
 
 As examples of the successful application of co-oper- 
 ation in America, there can be named the citrus 
 growers of California, who co-operate in the mar- 
 keting of their fruit, and in the purchase of their 
 supplies and machinery for conducting their busi- 
 ness; the fruit growers of Florida, and in Oregon and 
 Washington, Texas, and other states co-operate in like 
 manner. The truck and market gardners along the south 
 Atlantic Coast pursue a plan of co-operative marketing, 
 
 [61
 
 CO-OPERATION. 
 
 and in the purchase of their supplies of seeds, fertilizers 
 and implements. In many parts of the country may be 
 found co-operative grain elevators, creameries, and cheese 
 factories. The dairymen of Wisconsin, which is now the 
 leading dairy state of the Union, market most of their 
 dairy products through the medium of a co-operative 
 selling agency that is highly successful, and maintains 
 distributing agencies in many of the larger cities. 
 
 A very striking example of co-operation is found in the 
 numerous mutual co-operative Insurance Companies that 
 carry a tremendous volume of the fire, hail, and storm 
 insurance, especially in rural communities. Co-operative 
 telephone companies are especially common and popular 
 among the farmers of the country and are still supplying 
 local service to a surprisingly large number of patrons. 
 All these ventures in co-operation (and many others along 
 various lines that might be mentioned) are rapidly 
 familiarizing the American people with the idea, and 
 educating them in the principles and practices of co- 
 operation. 
 
 The errors and defects that will always be found in the 
 early efforts along every line of endeavor, are being under- 
 stood and avoided, and very rapidly these experiments 
 in co-operation are being reduced to a system, adopting 
 safeguards which experience has shown to be needful ; 
 imposing plans and methods of supervision and oversight 
 that are at once a safeguard and a stimulus to these enter- 
 prise^: and thus each year these co-operative efforts and 
 enterprises are becoming more and more a beneficial fac- 
 tor in American economic life. 
 
 Building Associations as Co-operative Institutions. 
 
 One form of co-operative effort has been remarkably 
 Successful ill this country. This is found in what is most 
 widely known as building associations. It is the purpose 
 
 m
 
 CHAPTER [. 
 
 of this work to treat of this type of institutions; to trace 
 their origin and development; to describe the various 
 plans and methods on which they are operated; to give 
 some account of their usefulness and benefits ; to call at- 
 tention to the size and magnitude to which they have at- 
 tained ; make some suggestions as to plans and methods 
 by which they are organized and conducted, and point out 
 the way by which this practical co-operative institution 
 may be utilized in every community for the common 
 benefit of every citizen, and become a vital factor of great 
 efficiency in stimulating business and adding materially to 
 the community wealth. 
 
 [8]
 
 CHAPTER II. 
 
 Building Associations. 
 
 Name and Title. 
 
 For the sake of brevity we shall use throughout this 
 work the name "Building Associations" as a generic 
 term for the institutions to be considered in this volume. 
 This type of organization is known by a wide variety 
 of names and titles in different parts of the United States. 
 In some parts of the country the various state laws pre- 
 scribe certain words and terms, which must be made part 
 of the name. In other states, the laws mention certain 
 words that must not be used in the name. For example, 
 Massachusetts requires that these institutions must use 
 the term, "Co-operative Bank," as a part of the title. In 
 other states they are expressly prohibited from using the 
 word "Bank" as a part of the name: As a result it will 
 be found that they are variously designated as "Building 
 Associations," "Building and Loan Associations," "Sav- 
 ings Associations," "Savings and Loan Associations," 
 "Co-operative Banks." "Homestead Associations," "Mu- 
 tual Loan Associations" and many other names made up 
 of varying combinations of these several terms above 
 mentioned. 
 
 It is a frequent practice in selecting the name to adopt 
 as an initial part thereof, some word of special signifi- 
 cance, such as "Peoples," "Citizens," "Merchants." "Me- 
 chanic-,." "Security." "Fidelity," "Equitable," "Working- 
 
 [91
 
 CHAPTER 11. 
 
 mens." "Wage-Earners" and "Home." A still more 
 common practice is to use the name of the town or city 
 in which the association is organized as a part of the 
 name. Many associations are organized among the em- 
 ployes of a single large industry, and associations of this 
 character quite often utilize the name of the firm or com- 
 pany where they are employed as a part of their title. 
 
 Definition. 
 
 A building association is a mutual, co-operative finan- 
 cial institution, most usually operating under articles 
 of incorporation issued by the state, and composed of 
 members who have thus associated themselves together for 
 their mutual benefit and financial advantage. The mem- 
 bership of a building association may be broadly divided 
 into two classes, designated saving members and borrow- 
 ing members. The former use the association as a place 
 where they may deposit from time to time, such sums as 
 they are able to spare from their wages, salary or other 
 income. The borrowing members use the associations 
 as a place where they can borrow funds for use in buying, 
 building or repairing a home, or for other useful 
 purposes. 
 
 The members save money together. 
 
 They lend money to each other. 
 
 They divide the profits with each other. 
 
 They work together to help each other. 
 
 The Aim and Purpose. 
 
 The aim and purpose of a building association is to 
 aid and encourage its members to learn and practice 
 thrift by regular systematic savings, and to provide ways 
 and means by which every family may procure a home. 
 
 [10]
 
 BUILDING ASSOCIATIONS. 
 
 Origin of Associations. 
 
 The first building association in America of which we 
 have any authentic record, was organized at Frankford, 
 Pennsylvania, now a suburb of Philadelphia. Among 
 the gentlemen especially active in its organization were: 
 Dr. Henry Taylor, and two manufacturers, named Samuel 
 Pilling and Jeremiah Horrocks. These gentlemen had 
 gathered some information regarding the plans and 
 methods by which institutions of this kind were being 
 operated in England, and believing that such an associa- 
 tion might be useful in this country, laid their plans be- 
 fore Jesse V. Castor, a lawyer, and Isaac Schallcross, a 
 conveyancer. As a result of the conferences between 
 these gentlemen, there was organized on January 3, 1831, 
 an association called the "Oxford Provident Building 
 Association of Frankford." 
 
 It appears that in the formation of this association, the 
 founders followed as nearly the plans of the English asso- 
 ciations as they could from the ideas they had gathered 
 by observing them in operation, or by perhaps partici- 
 pating in them. Judge Endlich in his work on "Build- 
 ing Associations," however, intimates that they had no 
 printed directions. The plan on which it was organized 
 and operated was what is now designated as the Term- 
 inating Plan. It was restricted to the members who 
 organized it, or who joined soon after it was formed. 
 This plan is more fully described in Chapter VII. 
 
 It is interesting to note, however, that while succeed- 
 ing years and extended experiences have seen the build- 
 ing association idea greatly develop and pass through an 
 experience of evolution and change in many of its minor 
 feature-, vet a study of the fundamental ideas will dis- 
 close that this -mall, modest, humble association had in 
 
 Mil
 
 CHAPTER II. 
 
 its plan the essential features that still characterize the 
 entire system of building associations to this day. 
 
 In the beginning little was heard of the association. 
 It did its work among its own members in an unobtrusive 
 way and achieved the objects for which it was organized. 
 Then, in accordance with its plan the association passed 
 out of existence. It is doubtful if any of its own members 
 or officers at any time realized the true value and signifi- 
 cance of the movement they were originating. They 
 doubtless considered it as a restricted, neighborhood or- 
 ganization, formed to solve some of the financial prob- 
 lems with which they were individually confronted, by 
 a plan of mutual, self-helping co-operation. 
 
 When, however, we come to measure that early asso- 
 ciation by the results which have come from the remark- 
 able development of its essential idea, it can be seen to- 
 day, that the formation of that first building association 
 was an event of immeasurable importance in the growth 
 of our nation. 
 
 The Essential Features of the Association. 
 
 Among the essential features of this association which 
 have been retained in all its successors, is the idea of 
 mutuality; an equality of rights, powers, privileges and 
 opportunity in the organization and operation, control 
 and management of the association; and also an equal 
 interest and liability in its results. 
 
 Its original membership was made up chiefly of work- 
 ingmen and wage-earners. This is a striking feature of 
 building associations today. 
 
 Another feature, present from the beginning, is the 
 opportunity afforded the member to make a regular 
 systematic deposit with the association of the sums he 
 can save from his wages. This feature aims to teach the 
 virtue of thrift in a practical way. 
 
 [12]
 
 BUILDING ASSOCIATIONS. 
 
 The foundation plan of the association provides that 
 it be cheaply and economically managed. This is strik- 
 ingly shown by the fact that the expenses of management 
 have for many years been about 8 / 10 of i per cent, of the 
 volume of business handled. 
 
 This association is to be a local institution, confining 
 its investments to the local community in which it oper- 
 ates. The wisdom of this idea is proven by the fact that 
 practically every attempt to extend the investments of an 
 association to a wide radius, beyond the territory with 
 which its officers were personally familiar, has proven 
 unsafe and often disastrous. 
 
 The funds of the first association were applied to aid 
 its members to procure homes. This was in fact the one 
 outstanding feature of the plan and the high purpose for 
 which the association was organized. The wish and de- 
 sire to own their own home, was in fact, the primary, 
 fundamental inspiration on which the first building asso- 
 ciation was formed, and has ever continued to be the 
 shining pole star which has guided and directed the pro- 
 gress of these building associations to the present day. 
 The desire to own a home is one of the primary, natural 
 instincts of every real man or woman. An institution 
 organized and operated on a fair and equitable plan 
 which has for its object the gratifying of that desire, 
 is sure to make a strong appeal to all humanity. The 
 constant appeal which building associations have always 
 made to this deep-seated human desire, is the real secret 
 of their great success. 
 
 Saving ana Lending. 
 
 Building associations occupy a two-fold relation to the 
 communities in which they operate; first, they are Say 
 ino SOCIETIES, aimed to promote thrift; second, they 
 are LENDING SOCIETIES, aimed to promote home owner- 
 
 [18]
 
 CHAPTER II. 
 
 ship. The saving feature is named, first, because 
 some one must save, before any one can lend. The use 
 of the word "Building" in the name of these associations, 
 while accurate at the beginning of the movement, has be- 
 come traditional because of the changes which have de- 
 veloped in the evolution of these societies. In the early 
 years of the movement it was quite common for these 
 associations to buy tracts of land, and subdivide it into 
 lots, contract for and superintend the erection of homes 
 thereon and dispose of them to their membership. Since 
 this plan of operation involved considerable risk, and must 
 always be to some extent speculative and uncertain; and 
 as experience in this line of work occasionally proved 
 unprofitable and involved the association in losses (some- 
 times to a serious extent) that line of activity has been 
 wholly abandoned by building associations. 
 
 In most of the states, building associations would not 
 now be permitted to do the actual building of homes for 
 its members; so that "Building" in the sense of actual 
 construction work is no longer any part of the business 
 done by these institutions. While the work is no longer 
 being done, the name still clings, and is often misleading 
 to those who are not familiar with the real plans and 
 methods of these associations. A name which would at 
 once be strictly accurate and descriptive, would be "Co- 
 operative Savings and Loan Associations." 
 
 The Saving Feature. 
 
 As a saving institution, building associations have be- 
 come a most important factor in the work of teaching 
 thrift and stimulating the habit of saving. The practice of 
 thrift, and systematic saving should be encouraged, and 
 must become a national characteristic, if our land is ever 
 to become truly and solidly prosperous. Thrift is a word 
 of broader meaning than saving. It denotes a higher 
 
 U4J
 
 BUILDING ASSOCIATIONS. 
 
 and more intelligent use of accumulations, than merely 
 saving them. It involves placing the savings to practical 
 and profitable use. A saving person might justify the 
 name, by merely hiding his savings away, where they 
 would earn nothing for him, nor be of any use to any 
 one else. A thrifty person will make such use of his 
 savings that they will at the same time earn profits for 
 him and be useful to others. 
 
 Building associations provide ideal facilities for the 
 practice of thrift. They offer a plan which encourages 
 the saving of money, and makes it easy and convenient. 
 At the same time they employ these savings in a way 
 which is profitable for him who saves, and extremely 
 useful and helpful to him, who on giving proper security, 
 is able to enjoy the use of these savings. 
 
 The practice of systematic saving should be especially 
 urged upon the young. The self-denial involved in the 
 practice of this habit and the resulting feeling of inde- 
 pendence enjoyed by those who realize their savings are 
 a substantial protection against misfortune or unemploy- 
 ment, tends to strengthen their character, gives them 
 greater self-respect and inspires a higher respect and con- 
 fidence in them, in the minds of others. The poet Burns 
 urges us to save money. 
 
 "Not for to hide it in a hedge, 
 Nor for a train attendant, 
 Hut for the glorious privilege 
 Of being independent." 
 
 Membership in a building association is a constant 
 incentive and stimulus to thrift and economy; it teaches 
 the practice of self-denial; encourages resistance to ex- 
 pensive habit-; awakens ambition and a desire for higher 
 and better modes of living; and provides a way to satisfy 
 
 [15]
 
 (II M'TKk 11. 
 
 such desires. All these influences tend to strengthen the 
 character and result in a higher and better type of citizen- 
 ship. 
 
 The attractions of a building association as a savings 
 institution are peculiarly strong. It is a money sai'iitg 
 institution, inasmuch as a part of its system is the con- 
 stant urge for regular systematic saving. It is a money 
 making institution, since its present system of investment 
 is such as to secure to the members such rates of interest 
 on their savings as can be earned in the money market of 
 the community. It is a safe place for savings, for the rea- 
 son that the nature of the investments made by building 
 associations is such that losses of a serious nature are 
 rarely experienced. It is a convenient place for savings, 
 since savings in these associations can usually be with- 
 drawn on demand or on reasonable short notice. Lastly, 
 it is especially popular for the reason that each member 
 shares in the management and control of the association, 
 in the election of its officers, and in fixing its plan and 
 policy. 
 
 In short, a building association is the practical example, 
 the concrete expression of the idea of democracy, applied 
 to a financial institution. It has no group of preferred 
 stockholders drawing a high rate of dividend from the 
 earnings of the small depositors, but all members, whether 
 their savings are large or small, receive the same rate of 
 interest, and their dividend depends on the amount they 
 have saved. 
 
 Advantages of Membership. 
 
 The advantages derived from a membership in a build- 
 ing association are many and various. It provides a safe 
 and convenient place to deposit whatever sums the mem- 
 bers can spare from their wages or income. Funds so 
 deposited are less liable to be spent extravagantly for 
 
 [16]
 
 BUILDING ASSOCIATIONS. 
 
 useless things. The funds also are beyond the reach 
 of the sneak thief and pickpocket. An unlucky fire has 
 destroyed many a saving fund which had been gathered 
 by many months of self-denying economy, and left hid- 
 den about the house; when if it had been deposited from 
 time to time in a building association, it would not have 
 been lost. 
 
 The dividends which even small sums will earn, is an 
 item of income obtainable in no other way. There is no 
 safe form of investment, by which the small savings can 
 be made to draw interest at so profitable a rate, as is 
 obtained in a building association. A person with a large 
 sum, say a thousand dollars, can invest it in a safe first 
 mortgage, which is everywhere recognized as one of the 
 highest forms of security. But where the sum ought to 
 be invested is but ten dollars, this high-grade security is 
 not available since ten dollar mortgages are not made. If 
 a hundred persons each put ten dollars into a building 
 association, the association could invest the entire sum in 
 a mortgage, and by this means each of the contributors 
 to the fund would get the same high security and the 
 same rate of income assured the party who invests the 
 thousand dollars. 
 
 Indeed, the member of the building association has 
 decided advantages over the individual who invests his 
 own money. The single investor owns the mortgage out- 
 right. He takes all the risk of the investment, must de- 
 fray all cost of time, trouble and expense in looking after 
 it, collecting the interest and, at maturity, collecting the 
 principal. He must see to it that the insurance is kept 
 in force and taxes paid on mortgaged premises; and 
 whether or not the mortgage must be foreclosed. Again, 
 if the borrower should die, and litigation of any kind 
 result in the settlement of his estate (and this is almost 
 invariably the ca>e ) all these costs and expenses and work 
 
 [17]
 
 CHAPTER II. 
 
 and time and trouble must be borne by the owner of the 
 mortgage. The members of building associations have all 
 these matters attended to by the association, as a part 
 of its routine business, without in any way interfering 
 with their dividends. 
 
 Furthermore, if the single investor in a mortgage which 
 he owns, has the best of good fortune, receives his interest 
 promptly and the mortgage is paid at maturity, it will 
 often occur that some interval will elapse before he can 
 re-invest his funds and he loses the interest on his money 
 during the interim. On the other hand, the funds of 
 building association members draw dividends regularly, 
 since there are no periods when its funds are idle. Where 
 the individual investor in mortgages has a loss on any 
 such investment, it all falls on him ; while if a loss should 
 be sustained by a building association on one of its mort- 
 gages, the loss is distributed, pro rata against all the assets 
 of the association, and so does not fall on any one person 
 or any group of members. 
 
 Under the most modern plan of associations, a reserve 
 fund is provided for to meet such losses as the foregoing, 
 so that in actual experience it is extremely rare that divi- 
 dends are affected by reason of such losses. 
 
 These facts are so well known and so thoroughly under- 
 stood by the public, that this safety of investment, the 
 high class of the securities taken, and the constant, un- 
 varying income received, have all been potent factors in 
 attracting ever-increasing numbers to seek membership 
 in these associations. 
 
 Unlimited Savings. 
 
 Under the original plan on which building associations 
 were organized, and in some types of their more recent 
 development, there were strict limits placed on the 
 
 118]
 
 BUILDING ASSOCIATIONS. 
 
 amounts which members were permitted to deposit in 
 these associations. There has been a constant tendency, 
 however, to expand and make more and more liberal the 
 privileges of members to utilize these associations as in- 
 stitutions for saving. In most states, there is no limit to 
 the amount which a member is permitted to deposit. In 
 a few states, the law still prescribes the limits, but these 
 are being gradually raised and extended. The real object 
 and purpose of fixing such a limit, was to prevent the 
 management of the association being monopolized by a 
 few individuals of means; hence the law prescribed the 
 number of shares which any person could hold in an 
 association. 
 
 In other states, the problem was met in another way. 
 Instead of restricting the number of shares which a mem- 
 ber could hold, the law left that undetermined, but pro- 
 vided that no member could cast more than twenty votes 
 in his own right. The same popular control of the asso- 
 ciation is secured in other states by the provision that 
 each member could cast but one vote, regardless of the 
 number of shares he owns. 
 
 This broadening of the powers of associations and en- 
 larging their ability to receive larger sums of money 
 has added much to the usefulness of these institutions and 
 greatly increased the useful work which they are able 
 to do. 
 
 The original building associations were based on the 
 idea, that every member was eventually to utilize his 
 membership for the purpose of buying or building a home. 
 It was primarily an association composed of borrowers 
 or prospective borrowers. Adherence to this plan must 
 of necessity restrict the activities of an association within 
 very narrow limits. Where every member was striving 
 
 [191
 
 CHAPTER II. 
 
 to secure his loan first, it resulted in such keen rivalry 
 among the members, that in many cases, loans were 
 made at an exorbitant cost to the borrower. With the 
 introduction of a broader plan by which members were 
 admitted who did not intend to buy or build a home, but 
 joined merely to enjoy the opportunity which the associa- 
 tion offered to exercise thrift and habits of saving, it was 
 quickly found that this broadening of the plan provided 
 greater volume of funds available for the prospective 
 home-owner, and enabled the association to greatly ex- 
 pand its usefulness as an aid to home-ownership. 
 
 The Lending Feature. 
 
 As a lending institution, extending its loans in order to 
 aid its borrowers to procure homes, the building associa- 
 tions have been especially useful. Very few wage-earners 
 or workingmen, when they first attempt to procure a 
 home for themselves and their families, have sufficient 
 cash in hand to pay the entire cost of purchase or of build- 
 ing. Such transactions are almost invariably financed 
 through the medium of a mortgage loan. In the task of 
 paying off such a loan, the average borrower usually re- 
 lies on the sums that he can save from his wages or in- 
 come. The sums which can be spared from this source 
 are seldom large, and are received by him at frequent 
 intervals, depending on the character of his employment. 
 The ideal type of loan for an individual in such circum- 
 stances, is one, on which he can make each pay-day a pay- 
 ment large enough to cover the accrued interest, and an 
 additional sum to apply on the principal of his debt. It 
 should also be a loan which can be carried by the bor- 
 rower without renewal, until these periodical payments 
 will have paid the entire debt. 
 
 [20]
 
 BUILDING ASSOCIATIONS. 
 
 In paying this type of a loan, the borrower can adjust 
 his payments to meet his regular income and has no 
 future maturity date to look forward to when a large 
 amount of debt will fall due. Under the terms of loans 
 made by most building associations the term of loan may 
 be extended from six to sixteen years or even longer if 
 necessary, and the sum of the borrower's periodical 
 payments are often no larger than the rent he would be 
 required to pay for a property of equal value. 
 
 It was demonstrated quite early in the experience of 
 these associations that many men, lacking courage to place 
 large, short-termed mortgages, would willingly undertake 
 the purchase of a home through the aid of building 
 associations. The usual form of mortgage loan, on which 
 the borrower pays only the interest as it accrues, the 
 entire principal falling due at some future date, is wholly 
 unsuited to the needs of the ordinary wage-earner, who 
 wishes to buy or build a home. Such a loan is seldom 
 reduced, but is permitted to run to maturity, when it may 
 be repeatedly renewed and, perhaps at last, never paid. 
 It becomes a burdensome heritage to the family. 
 
 The building association plan of a loan is handled dif- 
 ferently. The regular periodical payments become part 
 of the routine, just like paying rent ; the debt is regularly 
 and systematically reduced and finally extinguished, with- 
 out any periodical uneasiness of being renewed. 
 
 How Borrowing Helfas Saving. 
 
 Another most important result usually follows in the 
 case of a man who has carried a loan on this plan. Paying 
 a loan in this way, has taught the borroioer the habit of 
 saving money out of his wages. When his home is paid 
 for he usually continues the habit of keeping up these 
 
 [•-'I]
 
 CHAPTER II. 
 
 periodica] payments. They are, however, no longer be- 
 ing applied to the payment of a debt, but become a savings 
 account which, growing with the regular systematic pay- 
 ments, and the dividends added thereto and compounded, 
 soon becomes a fund of real value. The habit of saving 
 taught by this effort to procure a home, has often proved 
 of as great value to the man as the home itself. 
 
 Periodicals Devoted to Building Associations. 
 
 At various times there have been a number of periodi- 
 cals launched in different parts of the United States, de- 
 voted to building association interests. With one excep- 
 tion these have all failed to attract support sufficient to 
 make their efforts successful, and for lack of support 
 they have one by one suspended publication. The one 
 successful publication of this character, however, is The 
 American Building Association News, founded in 1880, 
 and published in Cincinnati and Chicago. 
 
 This journal has been declared the official organ of the 
 United States League of Local Building and Loan Asso- 
 ciations and of most of the State leagues. It is the recog- 
 nized authority on all matters relating to building asso- 
 ciation affairs. It has been ably edited and managed and 
 has been a most important factor in directing and protect- 
 ing the interests of these institutions. On many occasions 
 its educational value to Federal and State legislators has 
 been recognized. Every association should receive this 
 journal regularly, and keep a complete file carefully pre- 
 served for reference. A growing number of associations 
 throughout the country have adopted the plan of supply- 
 ing a copy of this journal regularly to each director and 
 officer of the association, as a part of the current ex- 
 penses of the association. Such a plan should be adopted 
 
 [22]
 
 BUILDING ASSOCIATIONS. 
 
 by every association in the country. An officer or direc- 
 tor, who is a faithful reader of this journal, gathers from 
 it a mass of information of the highest value on all phases 
 of building association activity. 
 
 It has been the fixed policy of this journal to open its 
 pages for free discussion of all matters of especial interest 
 to building associations. Its many useful features, in- 
 cluding its editorials, its legislative and statistical news, 
 association advertising, judicial decisions, and all general 
 news relating to association interests, make this journal 
 indispensable to all who are entrusted with the manage- 
 ment of these associations. 
 
 Some of the most successful and progressive associa- 
 tions are adopting the plan of ordering special editions 
 of this journal in quantities sufficient to supply their en- 
 tire membership. These special editions are sent at the end 
 of each semi-annual fiscal period and contain one or 
 more special pages devoted to that particular association, 
 giving its financial statement and such other items of 
 special local interest as may seem important. This has 
 been found especially valuable publicity for the associa- 
 tions, and the number who follow this practice will doubt- 
 less largely increase as the benefits of the journal are 
 more generally understood. 
 
 The efficient and valuable service of The Ajnerican 
 Building Association News in looking after the interests 
 of the associations of the country has been repeatedly 
 exemplified in recent years. It may be said that every 
 revenue bill which has been adopted in Congress since 
 1898 had in its original form some provisions that would 
 have been highly injurious, if not fatal, in its effects on 
 building association-., bad it been enacted in its original 
 form. This did not arise from any feeling of enmity 
 toward these institutions on the part of Congress, but was 
 
 [28]
 
 CHAPTER II. 
 
 due to the fact that these associations are so little known 
 or understood by the average legislator, — unless he had 
 enjoyed personal relations with one — that the legislators 
 who drafted the hills did not realize the effect which its 
 terms would have on these associations. In every instance 
 The American Building Association Nczvs was swift to 
 detect the dangerous situation and sound the alarm in its 
 pages, and in every case. Congress, when the situation 
 was called to its attention, and the injustice of the orig- 
 inal terms of these bills was demonstrated, consented to 
 make such changes in every one of these revenue bills 
 exempting building associations from the burdens which 
 Congress has always admitted would have been unjust 
 and improper. These changes and amendments have 
 saved building associations enormous sums of money, 
 the payment of which would have greatly burdened them 
 and might possibly have driven many, and it may be 
 all of them, out of business. 
 
 Changes of Management Announced in the News. 
 
 While the fundamental principles of building asso- 
 ciations are subject to but slight changes, yet with practi- 
 cal experience in conducting them, there are many new 
 ideas being constantly developed in the matter of book- 
 keeping and accounting; in the forms and books and 
 blanks used in the conduct of their business ; in new ideas 
 of advertising and publicity; and all these are being con- 
 stantly presented and discussed in this journal. Judicial 
 decisions on matters relating to various phases of building 
 association business are being frequently handed down, 
 and most of these important cases are reported in The 
 News. At the meetings of the State leagues and of the 
 U. S. League, papers are presented by the leading building 
 
 [24]
 
 BUILDING ASSOCIATIONS. 
 
 association men of the country, in which matters of vital 
 interest are discussed, and the best of these papers are 
 reproduced in The News. 
 
 All these facts combine to make this publication indis- 
 pensable to every one who holds official position in a 
 building association, and desires to render efficient service 
 to his association ; and every member of these associations 
 will find this journal well worth careful and regular 
 reading. 
 
 Recognition by Congress. 
 
 The value to the associations of their recognition by 
 Congress, must not be measured alone by the actual 
 money saved to each association. The standing prestige 
 given to these associations from such a source is of far 
 greater value than mere money can measure. By this 
 recognition on the part of Congress it proclaims that these 
 associations are so useful in the economic life of the 
 nation, that it would be unwise to impose on them any 
 unnecessary burdens. On the contrary they should be 
 fostered and encouraged by all reasonable means to con- 
 tinue the helpful, uplifting work done in teaching thrift 
 and building homes and adding to the concrete, tax-pay- 
 ing wealth of the nation. 
 
 This recognition by Congress has been especially help- 
 ful to the associations in creating public confidence in 
 them, and is doubtless one of the great underlying causes 
 and explanations for the wonderful growth which has 
 come to them in the past quarter of a century. 
 
 While the growth of these institutions has been very 
 great, yet their modesty in advertising their merits is 
 M-cii in the fact that the ordinary business man or citizen 
 has a very limited knowledge of their character and knows 
 but little of their plans and methods. This is also true 
 
 [25]
 
 CHAPTER II. 
 
 of the lawmakers of the country. At almost every ses- 
 sion of each state legislature measures are introduced 
 which, if enacted into law, would be highly detrimental to 
 the success and prosperity of building associations. It is 
 frequently the case that these acts have been drawn by 
 parties who have no practical experience or accurate in- 
 formation regarding building associations. 
 
 In some States the State building association leagues 
 make a practice of having the name of every mem- 
 ber of the legislature placed on the mailing list of 
 The American Building Association News. It has 
 been found that the result of this has been that the 
 legislators are thus given an opportunity to inform 
 themselves regarding these institutions, and when legis- 
 lation affecting them comes up for consideration, 
 they are much better informed on the subject, and 
 their action is based on a more thorough knowledge 
 and a fuller conception of the merits of the measure on 
 which they are asked to pass. Building associations have 
 but little to fear from legislators who are familiar with 
 their plans and methods and who know the meritorious 
 work they are doing. There is no surer way to bring 
 this knowledge to their attention, than to lay before each 
 of them each month a copy of The Amcircan Building 
 Association News. 
 
 Statistical Information. 
 
 The first attempt to make a nation-wide survey of the 
 building associations of the United States, was made in 
 1893, by Carroll D. Wright, who was then U. S. Com- 
 missioner of Labor. The official compilation of building 
 association statistics was issued as a government publica- 
 tion in 1894. 
 
 126]
 
 BUILDING ASSOCIATIONS. 
 
 Commissioner Wright presented a paper at the first 
 meeting of the United States League of Local Building 
 and Loan Associations, held at Chicago, Illinois, June 
 27th to 30th, 1893, in which he gave the following 
 statistics of building and loan associations, these being 
 figures compiled by his investigators, prior to the publi- 
 cation of his official report, which appeared early the 
 following year. 
 
 States. 
 
 No. of 
 Asso- 
 ciations. 
 
 Members. 
 
 Assets. 
 
 Arkansas 
 
 California 
 
 Colorado 
 
 Connecticut 
 
 Delaware 
 
 District of Columbia 
 
 Georgia 
 
 Florida 
 
 Illinois 
 
 Indiana 
 
 Iowa 
 
 Kansas 
 
 Louisiana 
 
 Maine 
 
 Maryland 
 
 Massachusetts 
 
 Michigan 
 
 Minnesota 
 
 Mississippi 
 
 Missouri 
 
 Nebraska 
 
 New Hampshire . . . 
 
 New Jersey 
 
 New York 
 
 Ohio 
 
 Pennsylvania 
 
 Rhode Island 
 
 Tennessee 
 
 I'tah 
 
 Wisconsin 
 
 Other States 
 
 Total 
 
 69 
 
 139 
 
 60 
 
 15 
 
 24 
 
 32 
 
 37 
 
 37 
 
 518 
 
 350 
 
 100 
 
 164 
 
 21 
 
 36 
 
 200 
 
 115 
 
 99 
 
 91 
 
 41 
 
 418 
 
 47 
 
 17 
 
 282 
 
 447 
 
 723 
 
 1,100 
 
 7 
 
 143 
 
 11 
 
 67 
 
 450 
 
 19,493 
 
 31,677 
 
 16,950 
 
 3,222 
 
 5,331 
 
 24,451 
 
 10,453 
 
 10,524 
 
 146,571 
 
 90,157 
 
 36,865 
 
 46,330 
 
 6,569 
 
 10,064 
 
 62,294 
 
 54,484 
 
 27,968 
 
 25,708 
 
 11,393 
 
 74,620 
 
 13,278 
 
 8,857 
 
 87,019 
 
 156,660 
 
 227,535 
 
 254,918 
 
 2,506 
 
 40,398 
 
 3,108 
 
 18,082 
 
 127,125 
 
 5,851,205 
 
 13,090,802 
 
 5,088,004 
 
 433,578 
 
 2,410,862 
 
 6,821,S61 
 
 3,137,603 
 
 3,159,418 
 
 55,821,888 
 
 21,390,550 
 
 9,049,310 
 
 13,907,211 
 
 3,391,557 
 
 2,020,293 
 
 14,921,607 
 
 14,574,334 
 
 8,395,207 
 
 7,716,806 
 
 3,726,291 
 
 35,446,429 
 
 3,985,603 
 
 1.137,719 
 
 30,871,644 
 
 32,820,563 
 
 59,204,826 
 
 80,860,976 
 
 791,410 
 
 12,126,410 
 
 932,801 
 
 5,681,605 
 
 38,160,032 
 
 5,860 
 
 1,655,456 
 
 $490,928,405 
 
 These statistics are inserted here for convenient compar- 
 ison with the corresponding statistics for the year, 1919, 
 
 which disclose the growth and progress of these associa- 
 tions in the United States during the intervening twenty- 
 six years. 
 
 [27]
 
 CHAPTER II. 
 
 The following table gives statistics of the building and 
 loan associations of the United States for the year 
 1918-19.* 
 
 States. 
 
 Num- 
 ber of 
 associa- 
 tions. 
 
 Total 
 member- 
 ship. 
 
 Total assets. 
 
 Increase in 
 assets. 
 
 Increase 
 in 
 mem- 
 bership. 
 
 3 
 
 4 
 6 
 6 
 7 
 8 
 9 
 10 
 11 
 12 
 13 
 14 
 15 
 16 
 17 
 18 
 19 
 20 
 21 
 22 
 23 
 24 
 25 
 26 
 27 
 28 
 29 
 30 
 31 
 32 
 33 
 34 
 35 
 36 
 37 
 38 
 39 
 40 
 
 Ohio 
 
 Pennsylvania .... 
 
 New Jersey 
 
 Massachusetts .. . 
 
 Illinois 
 
 New York 
 
 Indiana 
 
 Nebraska 
 
 Maryland 
 
 Michigan 
 
 California 
 
 Missouri 
 
 Kentucky 
 
 Kansas 
 
 Louisiana 
 
 Dist. of Columbia 
 
 Wisconsin 
 
 North Carolina... 
 
 Iowa 
 
 Arkansas 
 
 Washington. 4 .... 
 
 Oklahoma 
 
 West Virginia. . . . 
 
 Minnesota 
 
 Colorado 
 
 Maine 
 
 Rhode Island. . . . 
 
 Connecticut 
 
 South Carolina.. . 
 
 Alabama 
 
 Oregon 
 
 New Hampshire. . 
 South Dakota 8 ... 
 
 Tennessee 
 
 North Dakota 
 
 Texas 
 
 Montana 
 
 New Mexico 
 
 Arizona 
 
 Vermont 
 
 Other States 
 
 Total 
 
 723 
 
 2,124 
 
 792 
 
 186 
 
 681 
 
 249 
 
 346 
 
 73 
 
 590 
 
 70 
 
 86 
 
 158 
 
 122 
 
 74 
 
 64 
 
 20 
 
 79 
 
 133 
 
 57 
 
 42 
 
 37 
 
 44 
 
 52 
 
 64 
 
 38 
 
 38 
 
 8 
 
 22 
 
 134 
 
 8 
 
 10 
 
 22 
 
 14 
 
 12 
 
 10 
 
 25 
 
 18 
 
 13 
 
 4 
 
 235 
 
 842,754 
 
 725,000 
 
 348,805 
 
 247,224 
 
 240,000 
 
 200,111 
 
 198,418 
 
 104,363 
 
 87,963 
 
 82,565 
 
 40,409 
 
 55,147 
 
 63,266 
 
 64,679 
 
 50,366 
 
 38,951 
 
 54,393 
 
 40,000 
 
 35,440 
 
 21,386 
 
 39,944 
 
 19,800 
 
 23,530 
 
 21,800 
 
 15,483 
 
 15,057 
 
 12,205 
 
 15,000 
 
 13,500 
 
 10,460 
 
 10,204 
 
 8,642 
 
 5,857 
 
 5,497 
 
 5,835 
 
 7,531 
 
 5,441 
 
 3,515 
 
 2,400 
 
 790 
 
 227,670 
 
 $359,559,588 
 
 355,000,000 
 
 169,308,867 
 
 140,201,034 
 
 119,712,407 
 
 89,017,871 
 
 80,468,883 
 
 57,151,546 
 
 41,782,242 
 
 37,923,798 
 
 37,120,999 
 
 29,260,489 
 
 28,439,546 
 
 28,157,391 
 
 27,586,719 
 
 24,250,684 
 
 23,365,389 
 
 19,453,000 
 
 12,385,755 
 
 12,234,608 
 
 10,287,315 
 
 9,134,704 
 
 8,890,789 
 
 8.890,021 
 
 7.823,972 
 
 7,251,168 
 
 6,377,469 
 
 5,250,000 
 
 = 4,816,301 
 
 4,257,463 
 
 4,198,083 
 
 3,682,699 
 
 3,603,836 
 
 3,070,181 
 
 2,911,970 
 
 2,484,957 
 
 2,094,836 
 
 1,454,728 
 
 802,699 
 
 352,055 
 
 108,328,334 
 
 $37,818,009 
 30,734,607 
 1,092,954 
 13,505,997 
 6,183,882 
 2,945,042 
 2,355,966 
 2,605,916 
 
 ( 3 ) 
 
 2,264,438 
 
 1,192,552 
 
 2,490,345 
 
 1,354,264 
 
 2,157,224 
 
 1,674,791 
 
 1,850,689 
 
 3,478,021 
 
 1,846,000 
 
 2,746,903 
 
 1,651,161 
 
 1 4,166,862 
 
 2,580,529 
 
 771,658 
 
 1 89,621 
 
 1,134,989 
 
 579,929 
 
 439,033 
 
 380,252 
 
 ( 3 ) 
 
 (») 
 
 ( J ) 
 
 346,627 
 
 1 137,573 
 
 74,852 
 
 170,030 
 
 244,901 
 
 '14,648 
 
 ( 3 ) 
 64,264 
 6,865,950 
 
 75,664 
 47,089 
 19,742 
 
 a 601 
 
 '6,800 
 
 540 
 
 '3,991 
 
 2,434 
 
 ( 3 ) 
 
 13,524 
 
 '1,818 
 
 '969 
 
 420 
 
 '1,763 
 
 2,573 
 
 1,876 
 
 3,781 
 
 2,600 
 
 2,405 
 
 333 
 
 '6,374 
 
 1,668 
 
 2,030 
 
 '220 
 
 5,283 
 
 98 
 
 706 
 
 100 
 
 ( 8 ) 
 
 (') 
 
 C) 
 
 88 
 
 331 
 
 60 
 
 375 
 
 1,202 
 
 '30 
 
 (») 
 41 
 10,322 
 
 7,484 14,011,401 
 
 1,898,344,346 
 
 129,202,171 172,789 
 
 ' Decrease. 
 
 2 Dues paid in as per report to Comptroller General. 
 
 3 Included in other States. 
 
 4 Washington Savings & Loan Association, Seattle, with net assets 1917 of 
 $6,354,280, converted to Mutual Savings Bank, not included. Actual increase in 
 assets $2,197,427. 
 
 8 Report issued biennially. Figures 1917 used. 
 
 * Prepared by Mr. H. F. Cellarius, of Cincinnati, O., Secretary of the U. 
 S. League of Building Associations. 
 
 [28]
 
 CHAPTER III. 
 
 Historical Review. 
 
 Societies in England. 
 
 Building societies existed in England as early as 1798. 
 The first one of which we have a full and authentic 
 account is the Union Building Association, founded at 
 Greenwich, England, in January, 1809. The purpose of 
 this organization, as declared in its rules and regulations, 
 was the raising by monthly subscription of a fund to be 
 expended in building houses. These houses, as they were 
 built, were deeded to the different members of the associa- 
 tion. The membership of this society was restricted to 
 the number of fifty ; the whole number of shares was two 
 hundred, valued at two hundred and ten pounds each. 
 Payments were made in monthly installments of two 
 guineas each. A member was subject to a fine in default 
 of payment, and if he continued to fail to make his pay- 
 ments, the money already paid in was under certain con- 
 ditions forfeited to the society. 
 
 Every share in this association represented a dwelling 
 house. The houses were built under the supervision of 
 the society's inspector and by certain tradesmen specified 
 in its articles. They were distributed among the members 
 by lot, a new house being built as often as the society had 
 sufficient funds. From the time a house was finished, the 
 member owning it paid to the society five per cent, per 
 annum and the regular monthly payment on his share 
 until the close of the society, at which time each member 
 should have paid in the full amount of the two hundred 
 
 [29]
 
 CHAPTER 111. 
 
 and ten pound share held by him. Members who were 
 successful in the allotment of the houses as they were 
 completed, were required to give satisfactory security for 
 the continuance of their payments on their shares and 
 of the interest on the sums which the society had advanced 
 for the construction of the house. Certain other rules 
 were also observed, but space forbids a discussion of 
 them. 
 
 One of the earliest building associations established 
 was that by the Earl of Selkirk, at Kircudbright, in the 
 southern part of Scotland, in 1815. The Earl of Selkirk 
 was a gentleman of large means and philanthropic ideas, 
 and he is said to have expended considerable time and 
 study in perfecting and developing the scheme of this 
 society. 
 
 The organization of similar associations gradually ex- 
 tended into the manufacturing districts of England, Wales 
 and Ireland. They were afterwards established in Lon- 
 don, and soon became general throughout Great Britain, 
 Australia and the other British possessions. In 1836 
 these societies had increased to such numbers and attained 
 such magnitude and public importance that an act of 
 Parliament was passed affording facilities for their forma- 
 tion and regulating their government and management. 
 Since that period they have had a flourishing growth. 
 They report to the Registrar, who publishes annual sta- 
 tistics relating to them. 
 
 The Movement in Other Foreign Countries. 
 
 The good work accomplished in the United States has 
 caused co-operators in other countries to study the de- 
 velopment of building associations in America and obtain 
 information as to their plans and methods. In France, 
 Dr. Chas. Pranard, having been a close student of this 
 
 130]
 
 HISTORICAL REVIEW. 
 
 movement in America, prepared, at the request of the 
 French government, documents covering the work in the 
 United States. Dr. Pranard has published a valuable 
 work on this subject. As a result of his studies, the 
 government of France has passed legislation exempting 
 their building societies from taxation, and supporting 
 them with investments of government money. The re- 
 sult is seen in the rapid growth and internal development 
 of these organizations in the French Republic. 
 
 In South Africa, New Zealand, and the various sub- 
 divisions of Australia, and in British Guiana, and in 
 South America, these associations have been established 
 also, and are successfully developing the work of teaching 
 thrift and building homes. Spain, Italy, Germany, Aus- 
 tria, the Scandinavian countries, and other European 
 nations are following the same lines. It is clear that, as 
 an educational factor, the example set by the achievements 
 of building associations in America and the expansion of 
 this co-operative saving and home-building idea, will ob- 
 tain a firm footing, not only in Europe, but in all nations 
 of the world. 
 
 Early History in the United States. 
 
 For some years there was controversy over the ques- 
 tion of when and where the first building association 
 was organized in the United States. Several cities claimed 
 the honor; but the final decision of the question has been 
 to award Frankford, a suburb of Philadelphia, the honor 
 of being the birthplace of the building association move- 
 ment in .America. 
 
 The following account, by Thomas W. O'Brien, of the 
 Philadelphia Bar gives an interesting description of the 
 origin of 
 
 [31]
 
 CHAPTER III. 
 
 The First Building Association in the United States. 
 
 "Like its brother, the savings bank, the building association 
 practically owes its birth to the thriftiness and foresight of the 
 Scotch financiers and philanthropists. The Karl of Selkirk's Asso- 
 ciation was founded in Scotland in 1815, and through correspon- 
 dence with friends and relatives in the old country its progress was 
 carefully noted on this side of the water. 
 
 The first building association formed in the United States was 
 organized in Frankford, a borough having a population of about 
 2,000 inhabitants and located in Oxford Township, Philadelphia 
 County, Pennsylvania, which is now a part of the City of Phila- 
 delphia. On January 3d, 1831, according to the call, 'A meeting of 
 sundry inhabitants of the borough of Frankford was held at the 
 house of Thomas Sidcbotham, for the purpose of forming an asso- 
 ciation to enable the contributors thereof to build or purchase 
 dwelling houses.' A constitution for the government of the associa- 
 tion was adopted, and the name, 'The Oxford Provident Building 
 Association of Philadelphia County,' was selected. Subscription 
 books were opened ; forty members signed the Constitution ; enrolled 
 their names and subscribed for shares. 
 
 At the next meeting held on January 10th, 1831, the organization 
 was completed. Isaac Whitlock was elected president, Isaac Schal- 
 cross, Secretary and Samuell Pilling, a mill owner of considerable 
 means, treasurer; twelve trustees were also elected. 
 
 The Oxford Provident Association matured in ten years ; the 
 first payment was made on January 17th, 1831 and the last payment 
 on January 11th, 1841, a share then being worth $500.00. The affairs 
 of the association were not formally wound up until June 10th, 
 1841, but no payments were made after January 11th, 1841, and this 
 is the date of the maturity of the first series of shares issued by 
 any association in the new world. 
 
 The origin of building associations in this country has been a 
 subject for dispute. Most of the claimants were easily disposed of, 
 but Philadelphia and Brooklyn had some old associations, Brooklyn's 
 dating from 1836. The question of Brooklyn's priority was settled 
 when is was proved that the society was not organized until after 
 leading citizens from Brooklyn had made a trip to Frankford for 
 the purpose of investigating the results of the experiment that had 
 been started in this country. 
 
 The original error, crediting the organization of the initial asso- 
 ciation of the new world to Brooklyn, was made in a Georgia case, 
 Bibb County Loan Association vs. Richards, (21 Georgia State Re- 
 
 [32]
 
 HISTORICAL REVIEW. 
 
 ports 592) where Judge Lumkin stated that 'In the year 1836, 
 twenty-one years after the first one was established in Great Britain, 
 the first organization of this kind, called the Brooklyn Building and 
 Mutual Fund Loan Association, was organized in Brooklyn, New 
 York.' 
 
 This opinion was followed by Judge Endlich, in his work, 'The 
 Law of Building Associations,' and by Howard Wurtz Page, in 
 his article on building associations in the first edition of the 'Amer- 
 ican and English Encyclopedia of Law.' In later editions of the 
 encyclopedia, however, the misstatement is corrected and the subject 
 of the first building association in this country is no longer a subject 
 for controversy." 
 
 Gustav Koerner, in his book, "The German Element in 
 the United States," speaking of the influential and public- 
 spirited citizens of Pennslyvania (pages 73 and 74), says 
 of Dr. Wm. Schmoele, "In the year 1845 ne returned to 
 Philadelphia. We have especially to thank him for the 
 establishment of the first building association in Phila- 
 delphia, which was organized under the name of 'The 
 American Deposit and Building Association.' Pie was 
 also the founder of numerous other societies of this kind." 
 It must be remembered that in the year 1846, Frankford 
 was not included in the city of Philadelphia, and as the 
 early building associations were on the "terminating" 
 plan, the Frankford association had, in 1846, completed 
 its work and gone out of existence. In 1846, Dr. 
 Schmoele, through his brother, residing in Brooklyn, 
 N. Y., succeeded in organizing an association in that city, 
 and in the following year, 1847, through his friend, Wool- 
 sieffer, Dr. Schmoele secured the organization of an asso- 
 ciation in Baltimore, Md. It is believed that the oldest 
 building association that is now operating in the United 
 States is "The Decatur Building Association of Frank- 
 ford," Philadelphia, Pa., which was organized in January, 
 1849, an< J nas ted a useful and prosperous existence to the 
 present day. 
 
 [83]
 
 CHAPTER III. 
 
 Similar associations were organized soon afterward in 
 New York City, Newark and Hoboken, New Jersey; 
 Boston, Massachusetts, and in other cities of the North. 
 In 1850, their formation was begun in Charleston, South 
 Carolina, Savannah, Georgia, and other important South- 
 ern cities. These associations continued to spring up 
 from time to time throughout the country, spreading 
 from city to city and from State to State, until now 
 they are found established in every State in the Union. 
 
 The first association in Ohio was organized in Cincin- 
 nati, on July 8th, 1868. Dr. Peter A. Keck was its 
 founder, and was long honored as the father of Ohio 
 building associations. He lived to see Ohio the leading 
 building association state of the Union, with 723 asso- 
 ciations, a membership of 842,000, and assets of more 
 than $359,000,000. He lived to a ripe old age, depart- 
 ing this life on January 12, 1919. 
 
 The Mutual Home and Savings Association of Dayton, 
 Ohio, was organized in 187 1. It is especially mentioned 
 here for the reason that a few years later it adopted a 
 new constitution and by-laws, which made it the pioneer 
 of that type of association, now known as "The Dayton 
 Plan," 'The Ohio Plan" or the "Permanent Plan" of 
 building and loan associations. The experience of this 
 association on this plan was eminently successful and its 
 growth and development so rapid that it soon became 
 one of the largest and strongest building associations 
 in the United States, which position of leadership it held 
 for some years, but the application of this plan to 
 associations located in larger cities and more fruitful 
 fields resulted in the formation of associations that gradu- 
 ally overtook and surpassed it in size and strength, 
 although it is still one of the leaders in the building asso- 
 ciation movement of the Nation. 
 
 134]
 
 CHAPTER IV. 
 
 The Results Achieved by Building 
 Associations. 
 
 The results which follow the establishment and opera- 
 tion of these associations, referred to in Chapter III, are 
 well illustrated in the city of Philadelphia, where they 
 originated. Probably one-half of the dwelling houses 
 of that city have been built through the agency of these 
 associations, and much of the present prosperity of the 
 city is doubtless due to their work and influence. It is 
 through this agency that the city has obtained the proud 
 and significant title of "City of Homes." Thousands of 
 working men and wage-earners in this one city have 
 secured homes through these associations. This is merely 
 given as an illustration on a large scale of the work which 
 these associations perform. There is convincing proof 
 that in large cities of the country, such as Chicago, Balti- 
 more, Boston, Cincinnati, St. Louis, Rochester, Troy, 
 Utica, and Newark, similar conditions in like proportion 
 prevail. In the smaller cities and villages even a greater 
 percentage of home-ownership has been created through 
 these associations. 
 
 Means to Financial Advancement. 
 
 Building, loan and savings associations are now an 
 important factor in the economic life of the country. 
 Their establishment is encouraged by political economists 
 and philanthropists, and they are carefully guarded and 
 fostered by legislation. The large middle class of our 
 
 [86]
 
 CHAPTER IV. 
 
 population, the working men and wage-earners of the 
 country, among whom they prosper and flourish, recog- 
 nize them as a practical and efficient means to financial 
 advancement. Their beneficient and economic value to 
 the community is now acknowledged by all classes, and 
 they are encouraged on every hand as a prominent factor 
 in promoting public welfare. Among the chief merits 
 and advantages of this institution, attention may be called 
 to the following features : 
 
 ( i ) Each member has a voice in its management, and 
 each participates in its advantages and profits. 
 
 (2) It furnishes the best method by which wage- 
 earners and others with limited income can become their 
 own capitalist. 
 
 (3) Building associations furnish a better and safer 
 opportunity than any other plan that has ever been de- 
 vised for securing a liberal return of profit from periodic 
 savings of small sums. 
 
 (4) The industrial class, the store-keeper and manu- 
 facturers in these institutions get practical instruction in 
 the management of money and property. 
 
 (5) One highly important feature of these associa- 
 tions lies in the fact that they enable their members to 
 secure the use and benefits of their savings in advance by 
 enabling them to borrow funds from the association with 
 which to build or buy homes or embark in other enter- 
 prises. These loans they are privileged to repay in such 
 periodic installments as their savings will permit. For 
 some associations they are able to borrow money on 
 straight loans, when that plan is preferred. 
 
 (6) The loan or credit that is thus extended to the 
 workingmen, to the wage-earner, the small merchant 
 or manufacturer, is an important factor in the develop- 
 ment of this country. 
 
 136]
 
 THE RESULTS ACHIEVED. 
 
 With the spread of intelligence under our modern 
 civilization, there has been an ever-increasing effort on 
 the part of the working-classes and those dependent on 
 small incomes to accumulate money and property. In 
 order to become in any measure independent, people 
 relying upon their own earnings for income must con- 
 stantly practice industry and frugality with intelligent 
 judgment and patient perseverance. Of all the systems 
 that have been devised to aid the working men and women 
 in this respect, none has proved so successful or efficient 
 as the building, loan and saving association. It enables 
 this class to convert their wages into income. Wages are 
 earned by brains or hands. Income is earned from in- 
 vestments. When brains fail, or hands cease working, 
 wages stop, but income does not cease. A strong point 
 in favor of these associations is the purely democratic, 
 mutual and equitable nature of their advantages. 
 
 Financial institutions may be divided into two classes: 
 Mutual, co-operative institutions, and capital institutions. 
 In the capital stock institutions the control, management 
 and ownership of the institution is in the hands of the 
 relatively small group, which owns the capital stock, and 
 who operate for the chief purpose of earning the highest 
 possible dividend for themselves. The bulk of the earn- 
 ings of these capital stock institutions comes from the 
 use of the funds deposited by the masses which receive 
 a restricted rate of interest from these deposits. In a 
 mutual or co-operative concern, like a building associa- 
 tion, every member and depositor receives all the earn- 
 ings which his investment produces. All share alike in 
 the earnings of the institution, in proportion to the amount 
 which they have invested therein. 
 
 In capital .stock financial institutions, practically the 
 only relation which the depositor sustains to it is the mere 
 mechanical act of making his deposit 
 
 [87]
 
 CHAPTER IV. 
 
 In the building", loan and savings association, the 
 conditions are entirely different, for here the de- 
 positor has an active ownership and interest in the 
 enterprise. He has a voice and influence in these associa- 
 tions, and there is no preferred class to be benefited at the 
 expense of the other members. There is no preferred 
 class of stockholders receiving large dividends from the 
 earnings produced by the deposits of the little fellow. 
 Even though a capitalist becomes a member and sub- 
 scribes for a large number of shares, and deposits large 
 sums of money, he can derive no benefit or advantage on 
 any dollar of his investment that can not be commanded 
 by the humblest member. He must enter upon exactly 
 the same terms as are required of other members and 
 must stand on an equal footing with them throughout. 
 
 Moreover, stockholders elect their own directors, choos- 
 ing from their own number such persons whom they wish 
 to clothe with authority to administer the affairs of the 
 organization. By using discretion in selecting intelligent 
 and honest managers, and then holding them to strict 
 accountability for their policy and management, an eco- 
 nomical and faithful administration of the business of 
 the association is assured. 
 
 Associations open to a member the opportunity to share 
 in the profits on small savings which can not be secured in 
 any other type of institution. The deposits of all the 
 members, when combined, form a sum of money of such 
 proportion as commands ways and means of investments, 
 not possible for the individual members acting indepen- 
 dently through their individual savings. Under this 
 system members really become their own self-made cap- 
 italists. The collective savings of the many members, who 
 do not need their money, form a sum out of which other 
 people who do need the money may supply their wants; 
 and on such conditions both borrowers and lenders reap 
 
 [38]
 
 THE RESULTS ACHIEVED. 
 
 mutual benefits from the transaction. They are indepen- 
 dent of private capitalists and other financial institutions, 
 and save for themselves the tribute they must otherwise 
 pay to some money-lender, should they desire to build 
 a home, to embark in business or to make any other use of 
 money. 
 
 The wage-earner, trained in habits of economy, sav- 
 ing and thrift by the influence of the association, and 
 aroused to a laudable ambition by the opportunity it sug- 
 gests and offers, becomes himself a borrower and a user 
 of capital, and supplies his needs for money from the 
 accumulated capital of his associates. 
 
 Methods of Operation. 
 
 The methods by which these associations are operated 
 insure the minimum expense in handling their funds. 
 For many years past, the expense of operating the build- 
 ing associations of the United States has averaged about 
 eight-tenths of one per cent, of the volume of business 
 handled, a record of efficiency and economy that can 
 not be equalled by any other type of financial institution. 
 At the same time the opportunities and sources of profit 
 are larger and cannot be secured to the same extent, ex- 
 cept through a co-operative effort of this nature. 
 
 Not only may a fair rate of interest be derived from an 
 investment in the share of a well-conducted association, 
 but through the system adopted by nearly all of these 
 societies the members receive a greater income yield than 
 can be derived from any other safe financial institution. 
 In the early days of building association development, 
 fines and forfeitures enforced against delinquent members 
 constituted a considerable source of profit, but these fea- 
 tures of building association management arc fast dis- 
 appearing. The same is true of the premiums which 
 were formerly charged oil loans. The undeclared divi- 
 
 [80]
 
 CHAPTER IV. 
 
 dend on withdrawals forms a considerable source of profit. 
 Thus it will be seen that these institutions furnish unusual 
 opportunities for securing profits upon small savings; 
 opportunities which capitalists can not secure for them- 
 selves except upon exactly the same terms and conditions. 
 Ordinarily, a wage-earner, and especially one having 
 a considerable family dependent upon him, finds great 
 difficulty in meeting the demands that are constantly made 
 upon his purse. Too often, discouraged by circumstances, 
 he falls into a most ruinous way, and feels satisfied if 
 from week to week his net income meets his expenses. 
 However large a working man's wage may be, if he 
 spends it all, he is on the ragged edge of hard times; and 
 a short illness, an unfortunate accident, the loss of a 
 job or any one of a hundred little things that might 
 easily happen, will quickly teach him that it is but a few 
 steps from "The Sunny Side of Easy Street" to "The 
 Dark Side of Want Alley." A man earning one hundred 
 dollars a week and spending one hundred and five dollars 
 is already hard up; while a man earning twenty dollars 
 a week and saving some part of it, however small, is on 
 the road to independence and prosperity. 
 
 Helping ?den to Independence. 
 
 It occasionally happens that a wage-earner, more am- 
 bitious than many of his fellows, sets about to form some 
 plan of his own for regular saving, and then he gradually 
 accumulates a sum of money. This is sometimes done by 
 hoarding it in some secret receptacle, and sometimes by 
 carrying it constantly on his person, but this plan of sav- 
 ing is only a routine and mechanical one, and he gains 
 nothing thereby, except than a mere addition to his sav- 
 ings. He receives no interest or profit on his savings. 
 Money thus hoarded is absolutely dead and useless. It 
 earns nothing for the owner, and it is withheld from 
 
 [40]
 
 THE RESULTS ACHIEVED. 
 
 circulation when it might be usefully employed by those 
 who need it, and by those who would willingly pay for 
 its use. A man saving by this plan has no occasion for 
 the exercise of his judgment and gains no experience 
 that would be an advantage to him in the management 
 of a large sum of money after he has accumulated it. 
 Living thus from day to day in ignorance of the various 
 means of accumulation and investment, he is not likely 
 to make much advance in the way of improving his finan- 
 cial condition. Should he succeed, through constant 
 hoarding in accumulating a considerable sum of money 
 of his own, when he undertakes to make an investment 
 he must either run the risk of losing all or part of his 
 savings through his ignorance and inexperience, or he 
 must become dependent upon and pay for the skill and 
 knowledge of others in the management of his invest- 
 ment. 
 
 On the other hand, a thrifty saver who invests his 
 money in a building association makes that money render 
 a triple service : First, in earning an income for him. 
 Second, in becoming part of a fund which enables some 
 fellow workman to purchase or build a home of his own. 
 Third, in stimulating business, and adding to the com- 
 munity prosperity. 
 
 A yian Is King m His Own Castle. 
 
 The activities of the building associations in construct- 
 ing homes and providing means by which every family is 
 given a chance to procure a home of its own is one of the 
 most important features of their work. In recent years 
 the housing problem has become of great and ever greater 
 importance. The growing ratio of our people, who are 
 living in rented homes, as compared with the number that 
 live in homes of their own, is giving much concern to 
 students of political economy. In a representative g<>\ 
 
 nn
 
 CHAPTER IV. 
 
 ernment such as ours, it is of the highest importance that 
 the people should have a real, vital interest in the owner- 
 ship of the country. A citizenry, made up of renting 
 tenants, will always lack the highest element of civic pride. 
 They have not that real, vital, personal interest in the 
 affairs of the country when they own no part of the 
 country itself. A tenant citizenry is less stable and con- 
 servative than one made up of home-owners. 
 
 The advantages of home-ownership are seen in the in- 
 creased happiness and contentment of families; their 
 greater comfort and better health ; their deep interest in 
 the beautifying and improving of the homes in which they 
 live; the increasing educational advantages and oppor- 
 tunities ; more economy in the expenses of living; a deeper 
 interest in the civic welfare of their community; and inde- 
 pendence of action and bearing which can only arise 
 from the regular and intelligent discharge of their duties 
 and responsibilities incident to this natural and beneficial 
 form of home life. 
 
 Home Building Made Easy and Dignified. 
 
 In the stimulation and encouragement of home owner- 
 ship, building associations perform a vital service. It is 
 a matter of common knowledge that a vast majority of 
 homes must be built and financed on some type of credit ; 
 that few home buyers or home builders have at command 
 ready cash to pay the full value of the home they build 
 or buy. The accepted form in which this home-building 
 credit is extended is almost universally in the shape of a 
 mortgage loan. In order that this mortgage loan may 
 be upon the most convenient and reasonable terms, it 
 should be a long-time amortization loan, repayable in 
 small periodic sums, each sufficient to cover the accrued 
 interest and an amortization payment to apply on the 
 principal of the debt. Few individual capitalists would 
 
 [42]
 
 THE RESULTS ACHIEVED. 
 
 care to make a loan of this character, since it involves an 
 investment for a longer time than the average capitalist 
 cares to make. Furthermore, the trouble, annoyance, 
 and expense of collecting, of accepting frequent payments 
 of small sums and the necessary accounting which such 
 types of payments would require, make it inconvenient 
 and undesirable to the individual investor. 
 
 It is quite common to hear criticisms of the policy of 
 commercial banking institutions in declining to make 
 long-time mortgage loans, but such criticism is uncalled 
 for and unjust. The policy of commercial banks confin- 
 ing their investments to short-time commercial paper is 
 amply justified by the commonest principles of business 
 prudence and conservative banking. Much the larger 
 part of the funds handled by commercial banks are the 
 deposits of their patrons, which are subject to with- 
 drawal on demand check, and even the savings accounts 
 carried by some of these institutions are withdrawable 
 upon comparatively short-time notice. For these reasons 
 commercial banks must keep their assets liquid and must 
 not tie up their funds in long-time loans, no matter how 
 good the security, or how attractive the returns. It 
 would be the height of business folly for such an institu- 
 tion to invest its funds in long-time securities when 
 those funds are subject to withdrawal on demand or 
 short-time notice. The universal judgment, both of prac- 
 tical bankers and of students of finance is that such long- 
 time loans must be made sparingly, if at all, by commer- 
 cial banks, and every country that has a banking system 
 has, by law, hedged in and restricted the powers of such 
 banks to make long-time loans. Indeed, no principle of 
 the banking business is better settled than this. 
 
 The aggregate volume of the business of mortgage 
 loan investments in this country is so very great as to 
 justify a thoroughly organized, efficiently operated, 
 
 [48]
 
 CHAPTER IV. 
 
 nation-wide system of financial institutions, organized 
 and operated for the sole purpose of making mortgage 
 loans of this character and applying all its resources, and 
 restricting their activities to this one type of investment. 
 Building and loan associations are the only type of insti- 
 tutions known to the economic life of this country which 
 confines their business to this type of investment. 
 
 i 
 
 Home Building Will Beautify American Life. 
 
 For some years prior to the outbreak of the great 
 world war in 1914, the number of homes constructed in 
 America averaged about 600,000, and the volume of 
 mortgage loans required to finance this amount of con- 
 struction is estimated to have been about $2,500,000,000. 
 It is believed that for some years following the close of 
 this war there will be unusual business and industrial 
 activity in America, and that the volume of home-build- 
 ing and the funds required to finance home-building activ- 
 ities will be considerably greater than was required in 
 the years immediately preceding the war. If this con- 
 dition of affairs is realized, it will mean that much greater 
 opportunities for usefulness will be presented to the 
 building associations of America in future years than 
 they have enjoyed in the years that are passed. The 
 development in America of industrial, commercial and 
 manufacturing activities will doubtless produce a greater 
 growth of towns and cities in the next decade than the 
 country has ever known before, in a like period. This 
 will mean, of course, a vast increase in the volume of 
 home-building. 
 
 The Federal Reserve Banking System. 
 
 Not only will the volume of business offered be 
 greatly increased, but there is another serious con- 
 
 [44]
 
 THE RESULTS ACHIEVED. 
 
 dition which will add greatly to the work which 
 building associations will be called upon to perform. We 
 refer to the fact that the savings banks, State banks, 
 trust companies, and similar financial institutions, that 
 have heretofore been heavy investors in mortgage secur- 
 ities and have supplied a large volume of funds required 
 for floating mortgage loans, are rapidly being absorbed 
 in and affiliated with the Federal Reserve Banking system 
 of the United States. The expanding industries and com- 
 merce of the country require increased volume of banking 
 facilities to carry on their business; and as these saving 
 banks and similar institutions affiliate with this Federal 
 Reserve Bank system, and apply more and more of their 
 resources to the activities which are opened up to these 
 banks through the Federal Reserve system, it will result in 
 those institutions withdrawing their investments from 
 the field of mortgage loans and applying them to more 
 profitable fields of short-time commercial loans, which 
 are nwwbetter adapted to these organizations. 
 
 The Future of the Building Association Movement, 
 
 Thus it appears that for some years to come building 
 associations will be confronted with an increased demand 
 for the special type of loans which they are organized 
 to make, and at the same time will be confronted with 
 the fact that the amount of funds available in the money 
 markets will be depleted by the withdrawal from that 
 type of investments, of funds which have heretofore 
 sought the mortgage loan market. This broadening 
 of the field of opportunity and the heavier burden of 
 responsibility placed upon building associations can not 
 be evaded or ignored. It becomes the plain duty of 
 these institutions to accept the responsibility thus laid 
 upon them, and take steps to meet and discharge their 
 duties to a much higher degree. They should devise 
 
 [46]
 
 CHAPTER IV. 
 
 and execute plans for increasing their membership, 
 simplifying their plans and methods, adopting such new 
 features as will attract to their coffers funds in adequate 
 volume to enable them to meet the demands made upon 
 them and which they promise to perform. 
 
 The present membership of building - and loan asso- 
 ciations is a very small fraction of the number they 
 should have. When the government put War Savings 
 Stamps upon the market, and solicited the people to 
 invest therein, in less than one year the number of pur- 
 chasers and investors in War Savings Stamps grew to 
 five times the total membership of all the building asso- 
 ciations in America. Building associations should adopt 
 more aggressive and efficient plans of publicity, and 
 should, with greater force, call the attention of the pub- 
 lic to the merits of these institutions, as teachers of thrift 
 and aids to home-building. There should be considerable 
 increase in the number as well as in the size of building 
 associations, and a corresponding expansion of the useful 
 service which these institutions are rendering. The readi- 
 ness and cheerfulness with which the American people 
 responded to the call of their government to purchase 
 Liberty Bonds and War Savings Stamps is ample proof 
 that the American people are ready to respond to an ap- 
 peal for thrift and saving, and that proper effort on the 
 part of the building associations will meet with a ready 
 response, and will bring to these institutions a growth 
 and prosperity commensurate with their merits. With 
 such expansion they will be able to do work in transform- 
 ing wandering tenants into permanent, home-owning, 
 home-loving, patriotic citizens. 
 
 [4G]
 
 CHAPTER V. 
 
 Building Association Leagues. 
 
 As building associations are composed of a group of 
 individuals who have combined to co-operate for their 
 mutual advantage, it was perfectly natural that when these 
 associations became numerous in any State they should 
 bring the associations together into a league. Such a 
 league would logically adopt the same principle of com- 
 bination and co-operation which made the individual 
 associations successful. It was soon found desirable 
 that there should be greater uniformity of methods in 
 the plans and practice of the several associations, that 
 constant vigilance through such union was required to 
 prevent injurious legislation. These considerations led 
 to the formation of so-called "leagues," of which local 
 associations form the constituent members. These 
 leagues give an opportunity for interchange of views, 
 and make for harmonious and concurrent action. 
 
 In England, where building societies, as we have seen, 
 have long been in existence, co-operation among these 
 associations has been established by the so-called "Con- 
 gress of Building Societies." This Congress holds an- 
 nual meetings at designated places, to which delegates 
 from the respective local associations are selected to repre- 
 sent them in the congress. The proceedings issued by 
 this organization have formed a very important histor- 
 ical review of the movement in Great Britain. One after 
 another the several States in our own country have 
 formed leagues of the local associations within the re- 
 
 [47]
 
 CHAPTER V. 
 
 spective Slates and these State leagues finally combined 
 to organize "The United States League of Local Build- 
 ing and Loan Associations." 
 
 Origin of Leagues. 
 
 It is believed that the first step toward the organiza- 
 tion of this United States League was taken in 1892, 
 at a State convention of the Ohio Building Association 
 League, held at Toledo, Ohio. At this convention, a 
 resolution was introduced by the author of this work for 
 the appointment of delegates to a convention of the 
 various leagues then in existence in the United States. 
 Thereupon a committee was appointed to take up the 
 matter with other State leagues, to hold a preliminary 
 meeting, at Chicago, so that proper steps could be taken 
 to organize the United States League of Local Building 
 and Loan Associations. In this connection it was also 
 advised to have the work of the associations brought 
 properly before the people of the United States and 
 other countries by the holding of a symposium at the 
 World's Fair Congress in Chicago, in 1893. 
 
 In April of that year a preliminary meeting was held at 
 the Grand Pacific Hotel in Chicago. Temporary officers 
 were elected, and these were authorized to make an official 
 call on the State leagues then in existence, to become 
 affiliated with this organization. The first meeting was 
 held in Chicago, July, 1893. Since that time the League 
 has held regular meetings in various cities of the United 
 States. The great value of the work that has been 
 accomplished by this useful organization is not yet fully 
 recognized. In fact, the statistical information gathered, 
 together with a review of the work accomplished during 
 each year, is properly brought before the American 
 public through this organization. 
 
 1481
 
 BUILDING ASSOCIATION LEAGUES. 
 
 Organization of State Leagues. 
 
 In practically every State where the interests of build- 
 ing associations are important, leagues have been success- 
 fully organized. These leagues hold annual conventions, 
 to which all associations are invited to send delegates. 
 It is the usual custom to select one or two representatives 
 from each association as delegates to attend these an- 
 nual gatherings. A program is arranged, with papers, 
 addresses and discussions which are carefully prepared 
 and from which the movement has derived untold benefit. 
 It is highly important that all associations in each State 
 should be affiliated with their respective leagues. The 
 value of these league organizations is so apparent, and 
 the benefits derived from membership therein are so 
 great, that in several States the State supervisors of 
 these associations (to whom the associations must make 
 their annual reports) have interested themselves in urg- 
 ing every association in the State to become an active 
 member of the State league. The many important mat- 
 ters which are constantly arising and affecting the inter- 
 ests of these associations, such as new legislation, either 
 helpful or injurious, judicial and court decisions, together 
 with the commercial aspect of these associations and their 
 relation to the business and industry of the country — all 
 demand the hearty co-operation of each local organiza- 
 tion at all times. Through the activities of these leagues 
 is found the best and most practical channel through 
 which associations can acquaint themselves with modern 
 ideas, new plans and methods. 
 
 International League. 
 
 The same spi ri t of helpful co-operation which led to 
 the establishment of the State leagues and the United 
 States League has gone still further. Since these socie- 
 ties, with similar aims, objects and purposes exist in 
 
 [4»1
 
 CHAPTER V. 
 
 practically every civilized nation, it was thought by the 
 leaders of the movement in all lands that much good 
 might result from forming an International League of 
 Building Societies. In 191 1, Dr. Charles Pranard, of 
 Paris, was the honored guest of the United States League 
 of Local Building and Loan Associations, at their con- 
 vention in the city of Grand Rapids, Mich. In 19 13, at 
 its convention at Milwaukee, this league entertained as 
 its honored guests, President Thomas Whitely and 
 Secretary Enoch Hill, of the Halifax Permanent Build- 
 ing Society, of Halifax, England. 
 
 The first steps toward the organization of an Inter- 
 national Congress of Co-operative Home Societies ap- 
 pears again to have been taken by the Ohio Building 
 Association League at its annual meeting, held at Canton, 
 Ohio, in 1910. At this meeting, upon the suggestion 
 of Henry S. Rosenthal, editor of The American Building 
 Association News, a resolution was presented by Lewis 
 L. Rankin, "That a committee of three be appointed by 
 the Chair to arrange for an International Congress of 
 Co-operative Home Societies." This resolution was 
 adopted, and Mr. Rankin was made chairman of the 
 committee. 
 
 This committee presented a similar resolution to the 
 United States League of Local Building and Loan Asso- 
 ciations the following year at its annual meeting at Grand 
 Rapids, Michigan, providing, "that a committee of seven 
 be appointed by the president of this League to take 
 steps toward the organization of an International Con- 
 gress, and that the same shall meet in London, Paris, or 
 any other European city as may be desired, in the year 
 19 1 3, and on such days as may be found agreeable to all 
 concerned." This resolution was adopted, the proposed 
 committee was appointed with Mr. Rankin as chairman. 
 
 [50]
 
 BUILDING ASSOCIATION LEAGUES. 
 
 At the annual convention of the United States League, 
 held at Atlantic City, in July, 191 2, this committee re- 
 ported progress and was continued with authority to call 
 such International Congress to meet in the city of London. 
 At the annual convention of the United States League, 
 held at Milwaukee, in 19 13, the committee reported that 
 arrangements had been made to hold the first Inter- 
 national Congress in London, at the Hotel Metropole, 
 on August nth and 12th, 19 14, and the following Janu- 
 ary the formal call was issued. 
 
 At this first Congress representatives were present 
 from the United States, from England, Wales, Ireland, 
 South Africa, France and Norway. A corps of officers 
 were elected, with Lewis L. Rankin, of Columbus, Ohio, 
 as president. A constitution and by-laws were adopted, 
 providing among other features, that the second con- 
 vention should be held in 19 15 in the city of San Fran- 
 cisco, California, and that future meetings should be 
 held each third year thereafter. The second meeting of 
 the International Congress was held in 19 15, in the city 
 of San Francisco, California, being one of the features 
 of the Panama Exposition. At this convention the con- 
 stitution was amended to provide that future meetings 
 should be held at intervals of five years, and according to 
 this change the next International Congress will be due 
 in 1920. 
 
 County, City and Local Leagues. 
 
 In many communities, where there are numerous asso- 
 ciations in existence, it is quite common to form local 
 leagues. These organizations meet at regular intervals, 
 and discuss problems affecting the interest and welfare of 
 their associations. In some cities, scheming building con- 
 tractors and real estate operators have sought to use 
 building associations as a means of advancing their per- 
 
 [51]
 
 CHAPTER \ . 
 
 sonal interests, but with co-operation among the building 
 associations in these localities, this abuse has been 
 promptly stopped. 
 
 Many advantages may be derived from these organi- 
 zations. They have a tendency to bring the interests 
 into a more harmonious co-operation. Very strong local 
 organizations of this kind exist in many of the cities 
 of the country. The Metropolitan League in New York 
 City, the Hamilton County League, with headquarters 
 at Cincinnati, Ohio, the Polish League of Building Asso- 
 ciations, and the Bohemian League, in the city of Chicago, 
 the Cuyahoga County League of Building Associations 
 of Cleveland, Ohio, and many other similar instances 
 might be given where these local leagues have splendid 
 working organizations, with financial, legislative, execu- 
 tive and exchange committees, selected from their Board 
 of Directors. The hearty co-operation given by these 
 local leagues to the State and United States League has 
 proved an important factor in legislative as well as other 
 matters. The Hamilton County League above referred 
 to may be cited as an example of what can be accom- 
 plished by active, efficient work of a local league organi- 
 zation. The efforts of this league have been very effective 
 in inaugurating movements for helpful legislation, and 
 in preventing the enactment of proposed laws that would 
 be seriously harmful to building association interests. 
 
 What a League Can Do. 
 
 Building association leagues are organized for the pur- 
 pose of promotion, publicity and protection of building 
 association interests. 
 
 ( i ) There are several ways in which the League 
 may promote the interests of building associations. This 
 may be done by initiating and urging the enactment of 
 helpful legislation. Building associations are the crea- 
 
 [52]
 
 BUILDING ASSOCIATION LEAGUES. 
 
 tures of statute. They can exercise only the power con- 
 ferred by law. They are subject to all restrictions and 
 limitations which the law imposes. At the time of their 
 origin, they were merely associations of individuals and 
 were doing a line of business and carrying on a type of 
 activities unknown to the law and unrecognized by the 
 statute. As they grew in number and increased in 
 strength, the Legislatures took cognizance of their ex- 
 istence and enacted laws under which they must be organ- 
 ized and operated. In some States these statute restric- 
 tions were very severe, and hampered the activities and 
 unduly restricted their operations. Through the influ- 
 ence of these State leagues many of these statute restric- 
 tions have been relaxed and the powers and opportunities 
 of these associations have been broadened and extended. 
 As the helpfulness of these institutions to the community 
 was demonstrated and have become recognized, Legis- 
 latures, as a rule, have been quite ready to grant extended 
 privileges to them when properly advised of the necessity 
 for such additional powers and privileges. 
 
 In pursuance of this work of the League, suggestions 
 are offered to the League from associations in all parts 
 of the State, and the league committees representing the 
 whole building association interests of the State can con- 
 sider these matters specifically, and arrange to have 
 them formulated in the most desirable way. A delega- 
 tion from a league representing the building association 
 interests can appear before the Legislature at short notice 
 at any time and a delegation of this character represent- 
 ing the interests of so many citizens, and of such great 
 importance, are given far greater consideration by a 
 legislative committee and by the Legislature itself than 
 could possibly be commanded by any individual or any 
 single association appearing merely in its own behalf. In 
 the absence of a league organization, matters of the grav- 
 
 [5S]
 
 CHAPTER V. 
 
 est importance pending before a Legislature are liable to 
 go by default, and association interests suffer injury, be- 
 cause in the absence of a league it is the business of no 
 particular person to represent these interests before the 
 Legislature. 
 
 (2) A second matter of very great importance to 
 the associations is the opportunity which the league meet- 
 ings afford for the discussion of all practical questions 
 connected with the management of associations. It is 
 hardly possible that there could be absolute uniformity 
 of method in handling the various details of association 
 management. In some organizations, one phase of the 
 business may be handled by a better method than in an- 
 other. Delegates coming together for the discussion 
 of these practical questions are certain to learn from 
 each other many things which will be to the advantage 
 of their respective associations. In this way their work 
 will be simplified, their plans and methods made practical 
 and efficient, forming a means for obtaining information 
 and giving to the best plans and methods more publicity. 
 
 (3) As a protective agency, league organizations 
 are of special value. Any type of institution which attains 
 the strength now enjoyed by building associations, is cer- 
 tain to meet with more or less antagonism, and against 
 these adverse forces the associations need protection. 
 These antagonisms may arise in the way of proposed leg- 
 islation by adverse interests, with deliberate intention to 
 injure the association. They might arise from lack of 
 proper information on the part of the party proposing 
 the adverse legislation. This movement to injure asso- 
 ciations might furthermore gather momentum in the 
 course of litigation against some local association. Novel 
 legal questions might arise in such litigation that would 
 be of the gravest importance to association interests and 
 
 [54]
 
 BUILDING ASSOCIATION LEAGUES. 
 
 which should be given careful attention by the highest 
 type of legal talent in order that the decision arrived 
 at might be the proper one. 
 
 Some years ago, in a Southern State, when building 
 association interests had become quite important and 
 when they had at that time no building association 
 league, a decision was handed down against building 
 associations in a case that went practically by default, 
 and in which the interests of the associations were not 
 properly presented to the court. The result was, that this 
 improper decision handed down in a case that practically 
 went by default had the result of nearly annihilating the 
 building association interests of that State. Scores of 
 associations were put out of business, and it was nearly 
 twenty years later (when the same question came up in 
 another case before the same court) on being properly 
 presented the former decision was reversed and the build- 
 ing associations of that State are only now beginning to 
 recover from the harmful result of that wrongful decision. 
 In cases like this an efficiently organized and operating 
 building association league would have looked after that 
 case, would have seen that it was properly presented to 
 the court by a competent lawyer, and a proper decision 
 rendered. These are a few of the instances in which the 
 league acts as a protective organization for building 
 associations. 
 
 League Membership. 
 
 Of course, the work of a league can not be carried on 
 without some expense. If, however, the League is prop- 
 erly organized and operated, this expense need not be 
 heavy. To meet the necessary outlay, each affiliated asso- 
 ciation must pay a small fee. The plan of apportioning 
 these fees differs in the different States. Some charge 
 a flat rate for all members. In others they are graduated
 
 CHAPTER V. 
 
 according to the assets of the association. One of the 
 most successful State leagues finances its operation by 
 making up a budget and then apportioning it among the 
 members at a certain very low percentage of the assets 
 shown in its last annual report. This plan seems to 
 be eminently fair, and in practical operation, has been 
 found entirely satisfactory. 
 
 It is highly important that every association should 
 become a member of its State League. This State or- 
 ganization is charged with protecting the interests of all 
 the associations in the State. Every association is bene- 
 fitted by the work the State League does, and it is 
 clearly inequitable that the non-members should receive 
 equal benefits from the League activities, and bear no 
 part of the burden. In order that the League work may 
 be done intelligently, and in justice to all, every asso- 
 ciation should be represented in its councils. The League, 
 like the individual association, is a mutual and co-opera- 
 tive institution, and extends the same services, and pro- 
 duces benefits to the member associations similar to those 
 provided by the respective associations for their own 
 members. All associations, therefore, should affiliate 
 with the League, so as to make it co-operative, in fact, 
 as well as in name. Each association should bear its 
 proper share of the expense and labor connected with the 
 work of the League. It is clearly unfair, where there 
 are, say, three or four hundred associations in a State, 
 for a small group of them to bear the expense and labor 
 of looking after the work of promotion, publicity and 
 protection for all the building association interests in 
 the State. Co-operation is just ; it means power. 
 
 It should also be borne in mind that, while a league 
 is an organized body, its work must be done by in- 
 dividuals. The personal expenses of delegates to the 
 League meetings are usually paid by the association they 
 
 [56]
 
 BUILDING ASSOCIATION LEAGUES. 
 
 represent. These individual delegates, however, must 
 lose time from their own private business, and incident- 
 ally, are put to no little inconvenience and expense. This 
 is especially true of officers of the League. In view of 
 these facts, they should certainly have the cordial and 
 unanimous support of the interests which they represent, 
 and thus, in a measure, lighten their burden, and give 
 them such a standing and prestige as will make them far 
 more influential in securing the ends for which they 
 labor. 
 
 The duty and relations of the individual associations 
 to the State League do not end merely by their becoming 
 members and paying annual dues. The work of the 
 League and its officers must have the united support of the 
 member associations. For example, it frequently occurs 
 that important legislation is pending, affecting building 
 association interests, either helpfully or harmfully. The 
 usual custom is for the League officers to call the atten- 
 tion of the member associations to these matters, by a 
 circular letter, requesting each association to inform 
 their local legislators regarding merits or evils of the 
 pending legislation. These circular letters should not be 
 Ignored and thrown into the waste-basket. The officers 
 and members of the local associations should back up the 
 efforts of the officers of their leagues by personal inter- 
 views or personal letters to their legislators regarding 
 the pending measures. The result of efforts of this kind 
 is always helpful and beneficial. Legislators, as a rule, 
 are actuated by the highest motives and ordinarily en- 
 deavor to enact such laws as will be beneficial to their 
 constituents. Where evil or harmful legislation is 
 enacted, it is seldom done by the deliberate intent of the 
 legislators, but more frequently results from misconcep- 
 tion, misunderstanding or lack of full knowledge regard- 
 ing the merits of the pending legislation. 
 
 [57]
 
 CHAPTER V, 
 
 Building- association officers, who are actively engaged 
 in the practical conduct of these institutions, are better 
 informed and far more familiar with the needs of these 
 institutions and what measures would be beneficial or 
 harmful to them than the average legislator. It is not 
 only the plain duty of these association officers to give to 
 these representatives the benefit of their knowledge and 
 experience, but such action on their part, as a rule, is 
 gladly welcomed by these representatives, and is given 
 full and careful consideration. 
 
 The Press. 
 
 The greatest benefit occurring from the various meet- 
 ings of the League is the publicity which the building 
 associations receive from the publication of their pro- 
 ceedings. The public press is usually willing to give 
 wide-spread publicity to their work, and at each of these 
 League meetings it is highly important that the repre- 
 sentatives of the press be aided and assisted by the offi- 
 cers and delegates in getting full and accurate stories 
 of the proceedings. Many of the papers and addresses 
 presented at these league meetings are published in full 
 by the local press, and the result is that the general public 
 gets full information in this way regarding the merits 
 and benefits arising from building association activities. 
 The publicity thus given the building association move- 
 ment has doubtless been a very strong factor in its growth 
 and development. 
 
 [58 J
 
 CHAPTER VI. 
 
 Legislation and Taxation. 
 
 Building associations, in their original form, were 
 merely voluntary associations of small neighborhood 
 groups of individuals, and were not incorporated. The 
 advantages derived by their members soon became so 
 apparent as to result in the formation of many societies, 
 for similar purposes. Many of these grew in number 
 and in strength and broadened their field of activities 
 until their membership was not confined to the little nar- 
 row community in which it first originated. The larger 
 scope of activity obviously require judicious legislation 
 regulating the organization and the plans and methods of 
 their operation. 
 
 It will readily be admitted that no institution should 
 be permitted to hold itself out as a depository to receive 
 and invest the funds of the public or of those citizens 
 who desire to take advantage of its facilities, except 
 as such organization is subject to legislative control. It 
 is believed that Pennsylvania was the first State to pass 
 laws regulating the organization and operation of build- 
 ing associations. This first statute was passed in 1850, 
 and was shortly followed by enactments along the same 
 lines by the legislatures of other States. Similar legisla- 
 tion has been made from time to time as experience has 
 disclosed the need. 
 
 Vast interests of individuals and of the State are 
 involved in the operation of these associations. Where 
 they have become numerous and great resources are 
 
 (59]
 
 CHAPTER VI. 
 
 entrusted to their care, they become closely identified 
 with the moral and material welfare of communities. 
 It is of the highest importance, therefore, that with 
 such an interest at stake, their rights, duties, priv- 
 ileges and immunities should be clearly defined by statute, 
 and that the individual rights, duties and privileges of 
 members should be carefully guarded and specifically de- 
 fined. 
 
 Legislative bodies are made up of representatives 
 chosen from various sections of the State, identified with 
 various industrial and financial interests and often hold- 
 ing diverse views and opinions, and, as it has often 
 occurred with little or no knowledge of or experience 
 in building association affairs. It is legislative bodies 
 thus constituted that have proposed and enacted legis- 
 lation governing building associations, some of which 
 has been helpful, some others detrimental. 
 
 Many useful and conservative laws have been enacted, 
 and the interests of the associations have been promoted 
 thereby. On the other hand, there has been no little 
 patchwork and superficial legislation, which has some- 
 times proved detrimental to the cause it was intended 
 to benefit. With the growing popularity of these asso- 
 ciations, some of our statesmen, with a laudable ambition 
 to originate laws, have proposed, and in some cases 
 secured the enactment of measures that were unwise and 
 impracticable.. The time has now arrived, however, when 
 the members elected to the various Legislatures, and to 
 Congress, are becoming better informed as to the real 
 nature and function of these associations. 
 
 The establishment of the United States, State and 
 Local League, has created an authoritative body which 
 can present to lawmakers in a formal, representative and 
 influential way the new legislation which is needed and 
 can point out the dangers of harmful measures when they 
 
 [60]
 
 LEGISLATION AND TAXATION. 
 
 are proposed. Legislators are growing wiser and better 
 informed on this important subject. If an improper 
 measure is now introduced into any Legislature, there 
 are faithful and intelligent guardians of these institutions 
 either within the Legislature or without, who will quickly 
 turn on the light and reveal the measure in its true aspect. 
 
 Legislation in England. 
 
 The success of the Greenwich Union Building Society 
 and of other early organizations of the kind in England, 
 soon attracted the attention of the government. So im- 
 portant was the movement considered, as indicated by 
 the activity of these organizations, that in the year 1836 
 an Act of Parliament was passed, giving building asso- 
 ciations their first legal recognition, providing ample 
 opportunities and inducements for their formation, and 
 making full provision for the protection of their mem- 
 bers. English societies existed under this act until 1874, 
 when a new act, very liberal and elaborate in its provisions, 
 was passed. 
 
 Provisions of the English Law. 
 
 The English law, upon which our own associations 
 apparently are founded, contains a number of interesting 
 provisions. It declares that any number of persons may 
 establish a society, either terminating or permanent, for 
 the purpose of raising subscriptions, to be used as loans 
 to the society members. Such loans must be protected 
 by members out of the funds of the society by security on 
 freehold, copyhold, or leasehold estate by way of mort- 
 gage. Any society under the act shall have power to 
 hold land, with right of foreclosure, and may from time 
 to time raise funds by the issue of shares of one or more 
 denominations, paid either by periodical or other sub- 
 scriptions, and with or without accumulating interest. 
 
 ten
 
 CHAPTER VI. 
 
 Such funds may be repaid when no longer required for 
 the purpose of the society. Societies, furthermore, are 
 empowered to receive deposits or loans from members, 
 or other persons, corporate bodies, joint stock companies, 
 or terminating building societies. 
 
 Societies established under or adopting the act of 1874 
 are bodies corporate, having perpetual succession and a 
 common seal, thus dispensing with the cumbrous and 
 inconvenient system of trusteeship. The rules must 
 specify the society's name and place of meeting, terms of 
 withdrawal and repayment, manner of alteration of rules, 
 the appointment, remuneration and removal of officers, 
 provisions as to general and special meetings, and the 
 settlement of disputes, custody of seal, mortgage deeds 
 and securities, powers of directors and other officers, fines 
 and modes of dissolution. Societies may unite with 
 others. One society may transfer its engagements to 
 another. They may purchase, build or hire, or take on 
 lease, any building for conducting their business. Minors 
 may be members, but cannot vote or hold office during 
 non-age. Accounts are to be furnished to members 
 annually. The societies are exempt from stamp duties, 
 except those upon mortgages. Receipts endorsed upon 
 mortgages are sufficient discharge without conveyance. 
 
 The law of 1836 provided for the appointment of a 
 special board of commissioners to superintend the work 
 of the Loan Fund Societies of Ireland. This was called 
 the Loan Fund Board. All societies had to register with 
 and report to this board, whose duty it was to see that 
 the societies conducted their affairs according to the 
 provisions of the new law. 
 
 Defects in the English Law. 
 
 Upon analysis it will be found that the English acts 
 governing building societies are not philosophical and 
 
 1621
 
 LEGISLATION AND TAXATION. 
 
 harmonious in their construction. They were rather 
 spontaneous and sporadic in their origin, springing up 
 from time to time out of necessity, or to meet some special 
 interest. It would not be in place here to attempt an 
 analysis of the English statutes, and to point out their 
 contradictory and inharmonious provisions. It will be 
 sufficient to quote a passage from the masterly work* 
 of an English writer, Mr. Henry F. A. Davis. He says : 
 "This (act) has been unfavorably noticed by some learned 
 judge, who has had to decide a question arising under it. 
 A piece of legislation more resembling patch-work would 
 be difficult to find anywhere. Two acts of parliament, 
 originally intended to regulate associations having very 
 different objects in view from those contemplated by 
 building societies — and having, as a writer in the Jurist 
 once observed, internal evidence of their having been 
 passed during the chaos of a legislative convulsion — 
 badly conceived and badly executed, were by a third act, 
 if possible more clumsy than either, incorporated so as to 
 form the code which was to govern building societies." 
 
 Laws in the United States. 
 
 The history of associations in the United States, as 
 we have already, noted, is still young. The associa- 
 tions, which appeared slowly at first, were organized, 
 partly as unincorporated voluntary associations, and 
 partly under charters obtained under the general acts of 
 several of the States authorizing the incorporation of 
 beneficial and other such associations. The rapid de- 
 velopment of the country led to a like rapid development 
 of building associations, SO that legislation soon became 
 imperative. 
 
 During the years from 1850 to [860, most of the older 
 States endeavored by legislation to regulate the formation, 
 
 • The Law of Building ami Free Hold Land Societies, .'til edition, II. Sweet 
 
 k Son*, London, i nyl.iml 
 
 W3]
 
 CHAPTER VI. 
 
 powers and management of building associations. Since, 
 i860 the newer States have taken up the subject. At the 
 present time, in nearly all the States and territories, there 
 is some statutory provision for the government of asso- 
 ciations. Building associations are, as a rule, recognized 
 in the laws of the different States as a class of corpora- 
 tion in many respects widely different from any other 
 type of corporation ; different in their plans, organiza- 
 tion, method of operation, as well as in the aims and 
 purposes for which they are organized, and in the results 
 which follow their activities. 
 
 The law-making powers in most of the States have 
 recognized the fact that these institutions are not organ- 
 ized or operated as money-making institutions, or for 
 the purpose of acquiring unusual profits, or for exploit- 
 ing the public for the benefit or advantage of a few in- 
 dividuals. The mutual and co-operative plan on which 
 they are organized and conducted restricts their operation 
 to their own members, and the fair and equitable distri- 
 bution of the benefits resulting from their operation 
 among the members on fair and even terms, makes a dis- 
 tinct line of cleavage, which differentiates these institu- 
 tions from any other type of corporation. The work of 
 these institutions in teaching thrift, and aiding its mem- 
 bers to practice habits of saving and frugality, has done 
 incalculable good in elevating the character, improving the 
 habits and enhancing the prosperity of a vast number 
 of our people. The practical application of the resources 
 of these institutions to the building of homes and aiding 
 its membership to change their condition from rent- 
 paying tenants to home-owning citizens, has been recog- 
 nized as a work of vital importance and of the highest 
 helpfulness to the interests of the State and Nation. 
 
 All these considerations have led legislative bodies 
 and the law-making powers to recognize these institutions 
 
 [64]
 
 LEGISLATION AND TAXATION. 
 
 as a vital force for good in the economic life of our 
 people. It has resulted in causing our legislators to re- 
 gard these institutions in high favor, and to accord to 
 them a just recognition of the benefits they confer upon 
 the public and upon society. Some of the early legisla- 
 tion connected with these institutions may be classed as 
 having been adopted by legislators ignorant of and inex- 
 perienced in the subject; and with no adequate precedent 
 for their guidance. But of late years the subject has re- 
 ceived more intelligent attention by the law-making 
 powers and many legislators have given much study to 
 the various problems connected with it. 
 
 Improved Legislation. 
 
 In the two decades, between 1880 and 1900 the vari- 
 ous State leagues have taken aggressive steps in the 
 matter of securing proper legislation. Most of these 
 leagues have appointed committees on legislation, which 
 have drafted laws regulating them, and submitted their 
 plans to the various State Legislatures. In most in- 
 stances these measures thus proposed by the various 
 leagues have been accepted and adopted by the several 
 legislatures in substantially the form which the league 
 committee proposed. These successful results have only 
 been achieved by the policy established in practically 
 every league organization of proposing only such legis- 
 lative enactments as were fair, proper and equitable, not 
 only to the building associations, but to the State and 
 public. In no other way could such favorable results 
 have been attained. The future success and prosperity 
 of the building associations depends upon adherence to 
 this policy whenever legislative action is required by the 
 league, or pending legislation is either favored or 
 opposed. 
 
 [66]
 
 CHAPTER VI. 
 
 As an example of what can be achieved by the united 
 co-operation of a State League, the experience of the 
 State of Ohio may be cited. In 1890 the convention of 
 the Ohio Building Association League unanimously 
 adopted a motion instructing the legislative committee 
 to codify the existing laws relating to building associa- 
 tions, embodying therein such changes, amendments and 
 additions as might be deemed necessary. After this com- 
 mittee had carefully prepared this measure it was sub- 
 mitted in printed form to the associations of Ohio for 
 suggestions, which were fully discussed by the com- 
 mittee. Finally, and after many modifications, the code 
 was submitted to the Legislature for adoption. As a 
 result of the combined interests of the building associa- 
 tions of the entire State, requesting this legislation, the 
 Legislature gave the measure very careful attention, and 
 after long and thorough discussion, this bill, called the 
 Corcoran Act, was passed in May, 1891. 
 
 This bill had been so carefully drawn, so thoroughly 
 revised, and given such efficient attention by the Legis- 
 lature that for the ensuing period of seventeen years 
 there was no change or amendment made to this law. 
 The legislative committee of the Ohio Building Asso- 
 ciation League opposed every suggestion made to change 
 or amend it during that period. Under the provisions of 
 this law the building associations of Ohio prospered 
 greatly and increased their assets more than 300 per 
 cent, in the succeeding nineteen years. 
 
 It was not until 1908 that the Ohio League, meeting 
 at Youngstown, passed a resolution instructing its legis- 
 lative committee to draft and ask the enactment of certain 
 amendments to the law, which had become desirable on 
 account of the increased growth and the expanding needs 
 and improved plans and methods of operation. In 1909 
 this amended measure having been prepared in much the 
 
 166]
 
 LEGISLATION AND TAXATION. 
 
 same' fashion as above described, was brought before 
 the Ohio Legislature, approved by that body, and 
 enacted as the Russell Act. 
 
 This outline of the plan and methods followed by the 
 State of Ohio practically describes the steps taken in 
 numerous States in which building associations' interests 
 are important and which have active and efficient build- 
 ing association leagues. Many of the provisions found 
 in these Ohio enactments have been adopted with little 
 modification in numerous other States. In every case 
 they have resulted in stimulating the growth and increas- 
 ing the prosperity of building association interests. 
 
 The great good that has been accomplished by the 
 Illinois State League is a matter of history. 
 
 Litigation. 
 
 Not only has the legislation under which associations 
 are organized and operated oftentimes been crude and 
 imperfect, but the associations themselves, in many cases, 
 have been organized by persons without experience and 
 lacking information in such matters. It has resulted, 
 therefore, that through crude legislation on one hand 
 and crude organization and efficient operation on the 
 other, many associations have not reached the high suc- 
 cess which was anticipated. As a natural result in most 
 of the States litigation has occurred. With the enact- 
 ment of wiser laws and the very marked improvement 
 in the character and ability of the officers which have 
 been enlisted to operate these local associations, there 
 has been a wonderful improvement along these lines. 
 
 It would be foreign to the character and purpose of 
 this work to undertake to give a resume of the laws of 
 the different States in reference to these associations, or 
 to give digests of the cases arising under these laws and 
 of the decisions that have been rendered in the different 
 
 [07 j
 
 CHAPTER VI. 
 
 courts. Such matters belong more properly to a work 
 of a legal than a popular character. Members and offi- 
 cers of associations should look to their regular legal 
 advisors for information and instructions upon all mooted 
 or doubtful questions of a legal character which might 
 arise. 
 
 Exemption from Taxation. 
 
 The useful work done by building and loan associa- 
 tions and especially their aid and assistance in the build- 
 ing of homes and the creation of permanent, tax-paying 
 wealth, has led many of the States, where their constitu- 
 tions permitted it to be done, to exempt these institutions, 
 their mortgages and investments from all forms of State 
 and municipal taxation. Many of the States also en- 
 courage their citizens to invest in these institutions, by 
 providing that the shares held by individuals in these 
 institutions shall not be taxed. 
 
 There are most excellent reasons to support this policy. 
 The funds invested in building associations by these 
 individual members are not a permanent investment, and 
 are subject to withdrawal either on demand or on a com- 
 paratively short notice. The result would certainly be 
 that levying a burdensome tax on investments of this char- 
 acter would encourage their withdrawal, and in that 
 event the State would be deprived of the slight revenue 
 which it sought from that source. On the other hand, 
 the investments made by building associations in aiding 
 in the building of homes results in the creation of per- 
 manent additions to the taxable property of the com- 
 munity, every one of which will forever after bear its 
 share of the public burdens. 
 
 It is a realization of this fact that has led the law- 
 making bodies of many States to encourage the organi- 
 zation and operation of building associations by exempt- 
 
 [68]
 
 LEGISLATION AND TAXATION. 
 
 ing the property of the building association, and ex- 
 empting the money invested therein belonging to the 
 members from all forms of taxation, the result being to 
 stimulate the building of homes, thus bringing to the 
 public treasury a continuing stream of revenue from the 
 taxation of the homes thus created. 
 
 Forceful Arguments by Hon. Juhus Stern. 
 
 An exceedingly logical and forceful argument in favor 
 of this policy was presented in a paper before the United 
 States League by the Hon. Julius Stern, of Chicago. The 
 arguments used by him in this paper are so convincing and 
 are of such plain value that we reproduce them as follows : 
 ''Nevertheless exemption laws in matters of taxation 
 will, on examination, be found to be as old as the laws 
 imposing taxes themselves, and we will find that there 
 has been no time when exemption from the imposition of 
 fiscal burdens was not practiced and favored under the 
 written laws and possibly the unwritten ones which pre- 
 ceded them. An inquiry as to the propriety of exemptions 
 in general, must therefore be narrowed down to an in- 
 quiry into the proper selection of the matters and things 
 to be exempted from taxation, and as to the forms of 
 property the exemption of which from taxation will be 
 most conducive to the advancement, and conservation of 
 the government by the greater progress in wealth, sta- 
 bility, and sustaining power of the people, which would 
 naturally follow from such exemptions. 
 
 "It has been the practice of American governments, 
 both State and municipal, to embody in their constitu- 
 tions and statutes, laws exempting property devoted to 
 charitable and educational uses from taxation, on the 
 theory that whatever advanced the education of the peo- 
 ple conduced to their greater progress and wealth-pro- 
 ducing power, and that whatever was devoted to char- 
 
 [69]
 
 CHAPTER VI. 
 
 [table uses should escape the exactions of the tax gatherer, 
 because it was not productive of income to those who ex- 
 pended the money, and possibly also because of the 
 moral sentiment before alluded to. 
 
 "It must be conceded, however, that it is good eco- 
 nomic as well as good morals, and free from any taint of 
 dubious experiment, for any government to foster home- 
 owning and thrift, that at all times and in all places, 
 these form the basis for a better mode of living and 
 ever-growing expenditures on material things which, in 
 themselves, are taxed by the government ; while on the 
 other hand, among the most mischievous forms of tax- 
 ation that can be devised are such as place skill, industry 
 and frugality at a disadvantage in the struggle for exis- 
 tence. Again, the policy of exempting certain industries 
 for limited periods, or for all time, in order to foster 
 their growth as a source of future strength to the govern- 
 ment by way of providing a fruitful field for future tax- 
 ation, indirect or direct, has been practiced both by 
 the National and State governments ; and where put into 
 execution with proper forethought, and surrounded with 
 necessary safeguards, has been productive of satisfactory 
 results. 
 
 "All taxation to be just should be imposed so that 
 every species of property in proportion to its value be 
 made to bear its due and equal shares of the burden ; yet, 
 if it be perceived that by maintaining its weight in cer- 
 tain directions for a time, or by excluding here and there 
 the burden altogether, an economic result is achieved 
 which will yield greatly increased returns in the future 
 from the aggregate taxables, then it is the part of wis- 
 dom in that behalf to so minimize or exclude, — that is, 
 exempt from taxation. 
 
 "For instance, to encourage commercial enterprises 
 and exchanges governments have often found it expe- 
 
 [70]
 
 LEGISLATION AND TAXATION. 
 
 client and profitable to exempt from taxation the shipping 
 necessary to carry on these enterprises, and not only 
 abroad, but at home do we find this to be the practice. In 
 Great Britain, Germany, and France, the earnings only of 
 ships are taxed; — not the capital invested. In Austria 
 recently all taxes on vessels engaged in foreign trade 
 were suspended for five years, in order that this industry 
 might be built up and become sufficiently strong and rich 
 to afford a remunerative harvest at the end of such term. 
 Delaware exempts shipping from all taxation. New 
 York and Alabama exempt their shipping in the foreign 
 trade from all taxation; Massachusetts, New Hampshire 
 and Connecticut tax the earnings only of their shipping 
 in foreign trade, and under the decision of the United 
 States Supreme Court, Pennsylvania imposes no taxes 
 on its shipping in interstate or foreign trade. The heavy 
 taxes levied for limited periods on the importation of 
 certain foreign goods for the protection of infant indus- 
 tries at home seek their justification and excuse on this 
 same line of thought ; and the wisdom or unwisdom of 
 their imposition from the point of view of economics 
 simply, must abide the outcome of the experiment. All 
 exemptions from taxation are based on considerations of 
 public policy; — the highest public policy is that which 
 sacrifices a present given measure of good results for a 
 future increased measure. 
 
 "Whenever governments can aid directly or indirectly 
 in so increasing the future measure, it becomes not only 
 good policy but a duty imposed upon the directing power 
 to afford such aid. 
 
 "In the case of the local loan and building associations, 
 the only aid that need be asked under this head, is of a 
 passive nature. No direct action of any kind is required, 
 it is but necessary that they be shielded against improper 
 impositions, and be allowed to work out their own salva- 
 
 [71]
 
 CHAPTER VI. 
 
 tion. As corporate entities, they need exemption from 
 taxation, — because the property which stands for and as 
 their assets, already pays its just and equitable share 
 to the government tor the protection it receives there- 
 t'roni in the shape of taxes paid by the individual share- 
 holders ; — and because as corporations purely co-opera- 
 tive in their nature they cannot afford to pay what would 
 be in effect a double taxation, without so far impairing 
 their strength as to endanger their existence and destroy 
 their usefulness. 
 
 "As corporate entities their exemption from taxation 
 is justified, because to a far greater degree than the 
 charitable and educational institutions quoted above as 
 being so generally exempted, do they tend to advance the 
 education of the people, and conduce to their greater 
 progress and wealth-producing power ; and to a greater 
 degree than either of the others are they entitled to the 
 support of that healthy moral sentiment, which finds in 
 home-ownership the mainstay of enlightened good 
 citizenship, and in enlightened good citizenship the only 
 safeguard of our continued existence as a nation. 
 
 "Again on the theory that it is proper and far-sighted 
 economic policy for the State to encourage and foster 
 the growth of institutions' which will create new wealth 
 for its future support, the exemption of the local build- 
 ing and loan associations from taxation, is amply 
 justified. 
 
 "Among other things it is stated : 'It cannot be fairly 
 claimed that the bonds and mortgages of a building and 
 loan association are property of a taxable nature, or are 
 possessed of value in the sense had in mind by the 
 framers of the constitution of this State by the phrase, 
 'subject to taxation,' because they have no exchangeable 
 value whatever, as they are absolutely non-negotiable; 
 not having been given by one individual to another, in 
 
 172]
 
 LEGISLATION AND TAXATION. 
 
 exchange for any articles of value advanced thereon, 
 but being merely written promises by one member of a 
 class of co-operators to the other members of the same 
 class that will continue to co-operate with them, in ac- 
 cordance with the agreement then or at some antecedent 
 date entered into by all of them, until by the result of their 
 joint operation, certain ends of like usefulness to all of 
 them shall have been attained. This promise being only 
 one of a mutual set of promises between all the members 
 of that class, is not of such nature that it can be assigned 
 or transferred to an outsider for value, by either of the 
 parties thereto, so as to change it into a promise of the 
 repayment of a certain sum of money advanced on its 
 strength, in a different manner; i. e., the repayment in 
 bulk of the total moneys advanced to the borrowing 
 stockholder, after the manner of ordinary notes and 
 mortgages. A building association could not place its 
 entire collection of bonds and mortgages upon the market, 
 and realize a single dollar by the sale thereof; it cannot 
 assign them ; it cannot dispose of them in any way. They 
 represent, in such transaction, a mere agreement between 
 two sets of stockholders or between the borrowing stock- 
 holder in the particular transaction and itself (i. e., the 
 aggregation «f all the stockholders), to the effect, not 
 that the borrowing stockholder will, at any one time, pay 
 the amount stipulated in the said bond, but that he will 
 pay to his co-stockholders, being the loan and building 
 association, a certain stipulated amount per week or 
 month, as installments on his own shares of stock with 
 interest, etc., for the advancement of money to him 
 thereon, and that he will continue such payments, until 
 the value of each share of stock in the series held by him, 
 reaches par ; and that he is to receive a release of the 
 mortgage by him given to the association, as an earnest 
 of the performance by him of the condition of his bond. 
 
 1731
 
 CHAPTER VI. 
 
 "And again, 'property' is defined by Bouvier to be 'an 
 exclusive right of things ; a right to dispose of them, 
 either by exchanging them for other things or by giving 
 them away to any other person without consideration, or 
 even throwing them away' ; thus showing that the defini- 
 tion of the legal text writer, as to the essence of the 
 value, accords in all things with that laid down by the 
 political economists. To go one step farther, 'valuable 
 property' would be defined to be such property as one 
 could, under ordinary circumstances, dispose of for a valu- 
 able consideration. The bonds and mortgages of a build- 
 ing and loan association are not property of such a char- 
 acter; as before stated, they are absolutely valueless, ex- 
 cept to the association itself, and to that, merely as an 
 evidence of the advances made to one of its stockholders 
 on his stock, and a means of compelling him to continue 
 payment of installments thereon in like manner as his 
 brother stockholders, to whom no advances have as yet 
 been made; under penalty of being compelled to make 
 good such payments out of the real estate, the title to 
 which has been transferred as a security for the perform- 
 ance of the promise, reduced to writing in said bond, 
 given before the making of said advances. 
 
 "It has been well said by a distinguished author 
 ( Perry) that 'the right to tax on the part of the govern- 
 ment grows out of the whole service rendered by the 
 government to the individual ; and that as a return ser- 
 vice (or tax) is connected with and limited by the 
 exchanges which the individual makes under the eye of 
 the government, the tax itself should be proportioned as 
 nearly as possible to the amount of those exchanges, 
 and should be justified simply on the ground of them.' 
 
 "As before shown, in the advances made by a build- 
 ing association to one of its co-operative members of 
 moneys on his stock, which he pledges to said association 
 
 [74]
 
 LEGISLATION AND TAXATION. 
 
 with the promise to continue to make installment pay- 
 ments thereon in the same manner and amount as he had 
 been making as a simple stockholder, merely adding 
 thereto interest for the prior use of the money contributed 
 to a general fund by himself and his brother stockholders, 
 and further secured by a pledge of the real estate upon 
 which he is paying taxes to the State, — in such a trans- 
 action there are no exchanges, in the commercial accept- 
 ance of that word ; and as those securities are not trans- 
 ferable by the association for value, or otherwise, and are 
 held simply for the performance of a promise made, they 
 cannot enter into the subject of exchanges; hence, there 
 is no possible justification for the exaction of a tax there- 
 on by the governing power. 
 
 "Thus viewed from economic, ethical or legal stand- 
 points, the exemption from taxation of local building and 
 loan associations appears to be justified; and as these as- 
 sociations are the wisest, best, and, hitherto, most prac- 
 tical school of education for the great wage-earning class 
 which our civilized world has evolved, and a school 
 which rests upon a membership of those who can con- 
 tribute, not in large sums, but only by the mites saved 
 from meager earnings, the necessity of fostering and 
 sustaining such associations for the direct and indirect 
 advantages accruing therefrom to the nation must be 
 apparent, and in conclusion, therefore, it may be safely 
 said, that the necessity of exempting them is the best 
 justification for so doing." 
 
 The Association Is a Clearing House for Its Members. 
 
 A building association, being purely mutual and co- 
 operative, and being conducted for the mutual benefit of 
 all its members, is in reality a clearing house for its 
 membership. It is a place where the members gather 
 
 1751
 
 CHAPTER VI. 
 
 to exchange mutual accommodations, and in operation, 
 very closely resembles that of the clearing houses estab- 
 lished for the accommodation of commercial banks. No 
 proposition has ever been made to levy taxation upon the 
 activities of bank clearing houses, and the same principles 
 which would exempt those institutions from taxation 
 should be applied to the business of building associations, 
 which have no assets on which they can realize. From 
 the very nature of its character it has nothing that should 
 be taxed, outside of its regular office fixtures, books, etc. 
 As these are of but little commercial value, there is no 
 valid reason that can be advanced why the association 
 should be taxed in any form. 
 
 Not only have many of the several States thus exemp- 
 ted building associations from taxation, but the Federal 
 Congress, in like recognition of the usefulness of these 
 institutions, and of the unwisdom of burdening them 
 with unnecessary taxation, has in every revenue measure 
 passed since 1891, exempted building associations from 
 practically every form of Federal taxation. These exemp- 
 tions, however, have only been secured by the earnest 
 efforts and active work of the officers and committees 
 of the United States League of Local Building and Loan 
 Associations, co-operating with the various State leagues, 
 together with the assistance of The American Building 
 Association News. Many of these revenue measures, had 
 they been passed in the form in which they were first pre- 
 sented to Congress, would have resulted in the absolute 
 destruction and annihilation of the whole building and 
 loan association movement in this country. 
 
 One measure which might be referred to levied an 
 annual tax of fifty cents per thousand on the authorized 
 capital of all corporations. Had this measure been 
 enacted in the form in which it was introduced it would 
 have cost the building associations of America many 
 
 176]
 
 LEGISLATION AND TAXATION. 
 
 millions of dollars per year. When the facts relating 
 to this subject were presented before Congress by the 
 representatives of the building associations of the coun- 
 try. Congress very promptly recognized and admitted 
 the justice and necessity of the exemption asked for, and 
 in every case consented that building associations should 
 not be made subject to the proposed tax. 
 
 Summary of Revenue Measures. 
 
 A review of these several measures. is of such interest 
 and instructive value that we present the following sum- 
 mary of the various revenue measures and the exemption 
 given to building associations from time to time: 
 
 In 1 89 1 Congress passed a law providing for the levy 
 of a Federal income tax, and inserted therein the follow- 
 ing provision : "Nothing herein contained shall apply 
 to building and loan associations or companies which 
 make loans only to their shareholders." The Supreme 
 Court of the United States afterward declared this income 
 tax law unconstitutional, but in its enactment Congress 
 had established a precedent in favor of building and 
 loan associations, which has been consistently followed 
 in every succeeding revenue measure. 
 
 In 1898, the Spanish-American war made it neces- 
 sary for the Federal government to obtain increased 
 revenue, for which purpose Congress enacted the Stamp 
 Act. This law contained the following exemption 
 clause: "Provided further thai stock and bonds issued 
 by co-operative building and loan associations, * 
 and building and loan associations or companies that 
 make loans only to shareholders, shall be exempted from 
 the tax herein provided." 
 
 In 1909 Congress passed a law taxing the capital 
 stock of corporations, and after strenuous efforts OH the 
 
 1771
 
 CHAPTER VI. 
 
 part of building association representatives these institu- 
 tions were exempted from this tax in the following lan- 
 guage : after naming several corporations to which the 
 tax should not apply, the following words were added: 
 "Nor to domestic huilding and loan associations organ- 
 ized and operated exclusively for the mutual benefit of 
 their members." 
 
 In administering this act of Congress, Internal Revenue 
 collectors in different parts of the country took different 
 views in construing its terms and conditions, which re- 
 sulted in litigation. Two cases arose in Ohio in which 
 the collector decided that an association which accepted 
 deposits from non-members was not "operated exclu- 
 sively for the mutual benefit of their members" ; and in 
 New Jersey a collector insisted that an association which 
 paid a different rate of dividend to various classes of 
 stockholders was not "operated for the mutual benefit 
 of their members." The result of the litigation over both 
 of these questions resulted in a victory for the building 
 associations, the courts holding that the facts urged by 
 the collector did not make the association liable for the 
 tax. 
 
 The Ohio cases above referred to are : 
 
 Central Building and Loan Association vs. 
 Bozvland. Belief ontaine B. & L. Association 
 vs. McMakcn. 216 Federal Reporter 526. 
 
 The New Jersey case above referred to is : 
 
 Park View Building and Loan Association 
 vs. Herold. 203 Federal Reporter 876. 
 
 Under this Federal excise tax law of August 5, 1909, 
 the Commissioner of Internal Revenue ruled that certain 
 building associations were subject to the tax, and quite 
 
 1781
 
 LEGISLATION AND TAXATION. 
 
 a number of them were required to pay the tax, which 
 they did under protest. After the court decision referred 
 to was handed down, Congress passed a bill, authorizing 
 such associations to file a claim for refunder, and all the 
 associations which did so recovered the tax they had 
 wrongfully been required to pay. 
 
 On October 22, 191 4, Congress passed an act known 
 as "The Emergency Rez'emie Law," in Section 15, of 
 which Congress adopted almost the exact language con- 
 tained in the Stamp Act of 1898, the exemption reading 
 as follows : 
 
 "Provided further that stocks and bonds issued by co-operative 
 building and loan associations, * * * and building and loan 
 associations or companies that make loans only to their shareholders, 
 shall be exempted from the tax herein provided." 
 
 The Income Tax Law, passed September 8, 1916, 
 levying an income tax on individuals and corporation's 
 incomes, exempted building and loan associations in its 
 provisions. Under Section 11, Title t of this act, is the 
 provision : 
 
 "Section 11, (A). That there shall not be taxed under this title 
 any income received by * * * 4th, domestic building and loan 
 associations and co-operative banks without capital stock, organized 
 and operated for mutual purposes, and without profit." 
 
 Under Title 4 of the same act, a special license tax 
 is imposed upon corporations. Building associations 
 were exempted from this tax by a proviso in Section 
 407, as follows : 
 
 "And provided further that this tax shall not be imposed upon 
 any corjxtration, joint stock company, or association, or insurance 
 company not engaged in business during the preceding taxable year, 
 or which is exempted under the provisions of Section II, Title 1, of 
 this act." 
 
 !7«Ji
 
 Cll \1TKR VI. 
 
 The act of March J, it»i 7, levied a lax on excess 
 profits on all corporations having an income of $5,000.00 
 or more for the taxable year. Section 204 of this act 
 exempted building associations from its provisions in 
 the following language: 
 
 "Section 204. That corporations exempted from tax under the 
 provisions of Section L, Title 1, of the act approved September 
 8, 191G, and partnerships carrying on or doing business, shall be 
 exempted from the provisions of this Title, and the tax imposed 
 by this bill shall not attach to incomes of partnerships derived from 
 agriculture or for personal services." 
 
 On October 3, 191 7, Congress passed the War Revenue 
 Act, levying additional tax upon every corporation, joint 
 stock company, or association or insurance company, 
 subject to the tax imposed by Section 10 of the act of 
 April 8, 191 6. Since building associations were exemp- 
 ted under the act of 19 16, they were thus exempted 
 from the tax imposed by the War Revenue Act. 
 
 Summary. 
 
 This review of the revenue legislation of the govern- 
 ment since 1891 shows a settled and consistent policy 
 on the part of Congress to recognize the rights of build- 
 ing and loan associations to ask and receive exemption 
 from taxation, and this recognition of the usefulness of 
 building associations and of the helpful and beneficial 
 work which they are doing, has been of untold benefit to 
 these institutions and adds much to their strength and 
 prestige. 
 
 In most of the States formation of building and loan 
 associations is encouraged, and stimulated by the pro- 
 visions of the laws requiring only a nominal charge for 
 incorporation fees for obtaining a charter. In some of the 
 States, notably West Virginia and Kentucky, the fees 
 
 180]
 
 LEGISLATION AND TAXATION. 
 
 for obtaining charters are still unnecessarily heavy, and 
 burdensome. This was formerly true in the State of 
 Michigan, but in 1917 the Legislature of Michigan 
 amended the laws regulating the charter fees of build- 
 ing and loan associations, and provided that the fees 
 should be based upon the capital stock actually paid in, 
 rather than upon authorized capital. Proper steps should 
 be taken in those States where unnecessary burdens are 
 thus imposed, and the laws should be so amended as to 
 bring those States into harmony with the enlightened 
 provisions in the laws of most States of the Union. 
 
 \6\
 
 CHAPTER VII. 
 
 Plans of Associations. 
 
 The Terminating Plan. 
 
 The building associations, since its introduction into the 
 United States in 1831, has appeared in three distinct 
 forms. 
 
 The first association was on the "terminating" plan. 
 This type was useful, but has largely disappeared, giving 
 way to more popular forms. A few terminating asso- 
 ciations, however, still exist. In the terminating associa- 
 tion, all the stock is issued as of one date. Such an asso- 
 ciation is organized on the presumption that all the stock 
 will be subscribed at the opening meeting. This, how- 
 ever, is seldom done. The consequence is, that shares 
 sold after the first meeting must be sold at such price 
 as to make them equal in value to those already issued. 
 To do this, the sum paid must equal the amount already 
 paid in as installments by the subscribers to the original 
 shares, with such additional sums as will represent the 
 profit already accrued. If the regular dues should be 
 $1.00 per week, a person subscribing for a share after the 
 association has run ten weeks, must pay $10.00 for the 
 share. In like manner, if the association has been running 
 for a longer period, his initial payment must be as many 
 dollars as the number of weeks the association has been 
 running, and if profit has already been earned, he must 
 pay such additional amount upon his share as will cor- 
 respond to the earnings of the original share up to that 
 time. 
 
 [82]
 
 PLANS OF ASSOCIATIONS. 
 
 After an association organized on this plan has 
 run for a time the sum of money which a prospective 
 member would be required to pay in order to gain mem- 
 bership is so large, including the back installments, ac- 
 crued profits, and other incidental charges, that the aver- 
 age wage-earner would find it impossible to join. In its 
 practical working, therefore, an association organized 
 on this plan confines its membership to the group which 
 joined at the beginning, or acquired membership shortly 
 thereafter, and this condition produces the logical result 
 of restricting terminating associations to small member- 
 ship, and thereby limiting their usefulness. 
 
 In a terminating association all the shares are, of 
 course, at all times, of equal value. Whenever the total 
 amount of dues paid in and the accumulated profits equal 
 the par value of all the shares, the association terminates, 
 and its affairs are wound up. Each stockholder who has 
 not borrowed his money in advance receives the full 
 value of his share. To those who have made loans from 
 the association, their mortgages are cancelled and re- 
 ceipted and returned in full. 
 
 Xo better or clearer explanation of the plan and theory 
 on which these terminating societies were organized and 
 operated has ever been written than that found con- 
 tained in the paper prepared by the late Addison B. 
 Burk, of Philadelphia, and presented at the first meeting 
 of the United States League of Local Building and Loan 
 Associations at Chicago, in 1893. This explanation is 
 of such interest and historic value that we include the 
 following extract therefrom: (Mr. Burk was for many 
 years a leader in the building association movement in 
 America; was president of the United States League of 
 Building Associations in 1912; and by his rare training 
 and intelligent and untiring efforts, did much to advance 
 
 183]
 
 CHAPTER VII. 
 
 building association interests and to aid in bringing it 
 to its present commanding position of power and in- 
 fluence in the affairs of this country.) 
 
 The -P vi iihw«h ( Plan Described. 
 
 "The building association system, in the simpler forms, may be 
 made plain in this way. One hundred men, each able to save $1 a 
 month agree, in order to strengthen each other in their purpose 
 to save, to put their money together at fixed periods and lock it up 
 in a strong box until each shall have accumulated $200. 
 
 It is easy enough to see that if each man is prompt in his pay- 
 ments the strong box will be ready to be opened for a division of 
 the savings at the end of two hundred months, when each share will 
 be worth $200. 
 
 But let it be supposed that as soon as this agreement has been 
 entered into, by which one hundred men come together monthly 
 and put a dollar each into a common fund, one of the members 
 suggests that instead of allowing the money to lie idle in the box, 
 they had better put it out at interest each month, putting the securi- 
 ties for its return and the interest into the box as fast as earned. 
 
 At a glance the other members see that by acting on this sugges- 
 tion they will accumulate the $200 each share in less than two 
 hundred months, perhaps in one hundred and fifty months, when 
 they will have paid only $150 each. 
 
 The suggestion is adopted, and now we have a purely co-opera- 
 tive savings fund or building association, with only one distinguish- 
 ing feature, and that one of great value — the savings are compul- 
 sory and made at stated periods. 
 
 The member does not lay aside his spare cash as humor prompts 
 him, but enters into an obligation to pay so much per month. In 
 this scheme, as thus far developed, we have the essential feature 
 of our building and loan associations. 
 
 The other branches of business in which they engage, although 
 they give character and name to the associations, are really inci- 
 dental to the accomplishment of the one grand purpose, that of 
 saving money by co-operation and by compulsory payment into the 
 treasury. 
 
 The first problem that presents itself to the directors is: how to 
 use the money collected the first month. The purpose of the society 
 will be destroyed if it is not safely invested. Shall it be put in 
 
 184]
 
 PLANS OF ASSOCIATIONS. 
 
 government bonds at a low rate of interest, or invested in bond 
 and mortgage, with real estate security at a reasonable rate? If the 
 latter course is adopted, to whom shall it be loaned? George Burton, 
 who is not a member of the society, desires to borrow, but so also 
 does John Dubree, who is a member. If the society lends to John 
 Dubree it will have security additional to that represented by his 
 bond and mortgage— in his stock or deposits, growing in value 
 month by month. To get this additional security for all the money 
 it lends, and at the same time secure a higher rate of interest for 
 the money than could be obtained from government bonds, the 
 society determines to lend only to members. 
 
 Now it appears that other members besides John Dubree want 
 to borrow the first month's collections. How shall it be decided 
 between them? Obviously, the fairest plan is to let them bid one 
 against the other, and lend it to the man who is willing to give 
 the highest premium over and above the fixed or legal rate of 
 interest. 
 
 This course is adopted and the association finds itself in posses- 
 sion of two sources of profit, interest on loans to its own members, 
 and premiums for the prior use of the money collected. 
 
 It is manifest now, that instead of requiring two hundred months 
 in which to accumulate in the strong box enough money to divide 
 $200 per share, it will only take, possibly, one hundred and twenty- 
 six months. 
 
 If, in the course of time, a member should fail to pay his install- 
 ment, and this should be permitted, the member withholding his 
 deposit and depriving the association of its use would in the end 
 have an advantage over his fellow members. 
 
 To check this a fine is imposed when installments are delayed, 
 that the fine may serve as a penalty as well as to reimburse the 
 association for the loss of the use of the money. 
 
 Another member finds that he cannot keep up his payments, or 
 he desires to move to another city. To accommodate him the asso- 
 ciation agrees to open its strong box before the appointed time, 
 give him what he has paid in, with some portion of the profit already 
 gained, and cancel his stock. 
 
 Now it is seen that there are, besides the saving money and 
 interest upon it, several sources of profit, namely : Premiums arising 
 from competition for the loans, penalties for non-payment of dues, 
 and a portion of the profits withheld from members who fail to 
 remain in the association, and whose stock is cancelled. And so the 
 features of a building and loan association are developed. 
 
 [& r >]
 
 CHAPTER VII. 
 
 At last, between 126 and 140 months, and when from $126 to 
 $140 have been paid in on each share, the strong box is found to 
 contain securities or money sufficient to divide and give to each 
 share-borrower and non-borrower alike, $200. 
 
 The time has come for the association to be "wound up," techni- 
 cally speaking. Each holder of an unborrowed or free share gets 
 $200 in cash; each borrower is entitled to his bond and mortgage, 
 so the account is squared by the cancellation of the mortgage. 
 
 This description relates to a single series society, the kind first 
 organized. For many years they met with no trouble. They were 
 organized by little groups of working men. Every member intended 
 to borrow when occasion served, and the demand for money was 
 kept up to the end; but the success of these single series societies 
 proved their downfall. Gradually men of means began to join the 
 workingmen's societies. They did not want to borrow money, but 
 they wanted to get good interest on periodical investments. 
 
 The societies contained such a large proportion of drones that 
 it was impossible to lend money and as it was idle, profits were 
 reduced. Borrowers could not be brought in, as year by year the 
 cost of back dues and profits, which had to be paid to put all on an 
 equality, increased, until it became prohibitive. It was then that the 
 idea of serial societies was started. I am still of the opinion that a 
 single series society, composed wholly of workingmen, who intended 
 to become borrowers, is the best; but it is now almost impossible 
 to organize such a society. By issuing the stock in series a constant 
 demand for the money can be maintained, but inconveniences of an- 
 other sort arise which need not here be discussed in detail further 
 than to indicate that if the money is kept invested enough of it may 
 not be ready to pay maturing share, and that the accounts become in- 
 volved — even when the series are treated as partners and the profits 
 are divided between the series as in a partnership business." 
 
 The Serial Plan. 
 
 The second phase of building association development 
 is the Serial Plan. This is a very natural evolution from 
 the terminating form. By some this is called the "Phila- 
 delphia" or "Pennsylvania" plan. The association is 
 usually chartered with authority to issue a definite amount 
 of stock, and to run a definite number of years. Instead 
 of selling and issuing all the stock as of the same date, 
 
 [861
 
 PLANS OF ASSOCIATIONS. 
 
 it is divided into series, the first series being sold as of 
 the date of the beginning of the first term. Subscribers 
 to this series of stock who come in after its first organiza- 
 tion are required to pay back dues, just as in a terminating 
 association. When this series has run for such a length of 
 time as to make it difficult and burdensome for new sub- 
 scribers to purchase shares of the first series, the practice 
 is to declare that series closed, and begin the issue of a 
 second series. 
 
 The frequency with which new series are issued varies 
 in different parts of the country. In some associations 
 they are issued annually; in others semi-annually, and 
 still others open a new series quarterly. In some associa- 
 tions the number of shares in a series is limited, while in 
 other associations no limit is placed on the number of 
 shares which may be issued in a series. After the first 
 series has been issued, and before opening a second one, 
 the total assets of the association are ascertained, and di- 
 vided by the number of shares outstanding, which gives 
 the book value of each share in the series. Deducting the 
 total dues for the term from the total assets gives the 
 profit for that term. 
 
 At the end of the second term, and before issuing 
 a third series, the profits on all shares in all series, as 
 shown by the last preceding report, should be deducted 
 from the total profits of that date. The remainder will 
 be the net profit for the current term. Dividing this net 
 profit by the total number of shares then outstanding 
 gives the profit to be added for that term to each share 
 outstanding. A fuller detail of the plan and method of 
 figuring will be given in a later chapter of this work. It 
 will be seen that the older the series, the greater the 
 value of the share. 
 
 [87]
 
 CHAPTER VII. 
 
 In some associations, operated under this plan, a mem- 
 ber is permitted to purchase shares in any of the older 
 series, by paying" the book value of the share at the time 
 he joins. In other associations this is not permitted, 
 and in some States the law forbids associations to issue 
 shares in any older series after a new series has been 
 opened, and requires that members can join only by 
 purchasing shares in the then current series. After an as- 
 sociation has run for .seven to twelve years the first series 
 reaches its ultimate value; that is to say, the paid-in dues, 
 and the profits accrued amount to a sum equal to the par 
 value of the share, and this series is then said to be 
 matured, and the holders of its shares are then entitled 
 to receive in cash the par value of their shares. Those 
 members who are holding "Free Shares" in that series 
 are paid in cash, and the borrowers who have made loans 
 in that series have their mortgages released and can- 
 celled. The association now has reached the period when 
 each series of shares must be paid off as it matures. 
 
 Paying Off a Matured Series. 
 
 One of the most perplexing and embarrassing prob- 
 lems which confront an association operated on the serial 
 plan is to determine the best, most convenient and equit- 
 able plan for paying off a matured series. In theory, 
 the holders of free shares in a matured series are entitled 
 to receive the cash value of their shares from the funds 
 in the association treasury. It can readily be seen that 
 an association whose funds are accumulated by the small 
 payments of its members might not have in its treasury 
 a sum equal to the earnings which a series has been ac- 
 cumulating through a period of from seven to twelve 
 years. If it must meet this withdrawal series from its or- 
 dinary income paid in by its members, it would be neces- 
 
 [88]
 
 PLANS OF ASSOCIATIONS. 
 
 sary to hoard these payments for some weeks or months 
 in advance of the maturity of the series in order to meet 
 these payments. This would be unprofitable, since this idle 
 money would draw no interest during the period in which 
 it was being accumulated. In some serial associations, 
 however, it is the practice to meet a matured series by 
 this plan, but this is not the advisable practice. 
 
 A great variety of different plans are followed, some 
 of which we will describe. In one very successful New 
 York institution, the practice is not to hoard up money 
 with which to meet a matured series, but when a series 
 matures, the funds are permitted to remain in the asso- 
 ciation, subject to the following by-laws: "Holders of 
 free shares in matured series shall receive 3 per cent on 
 their money after the maturity of the stock, until paid, 
 and may withdraw at any time thereafter, subject to the 
 withdrawal clause." Further provisions in this act state: 
 "At no time shall more than two-thirds of the funds in 
 the treasury of the association be applicable to the pay- 
 ment of withdrawing stockholders and holders of ma- 
 tured stock, without the consent of the board of directors." 
 By-laws of this association contain these further pro- 
 visions : 
 
 "In case a number of members wish to withdraw stock at the 
 same time, notice of withdrawal shall have precedence according to 
 the order or date of filing, with the secretary. 
 
 The board of directors shall have power to compel withdrawal 
 of free and matured stock, in alphabetical or other order." 
 
 Perhaps no better plan than the above can be devised 
 with which a serial association can meet its obligations to 
 pay off a matured series. 
 
 In some associations the demand of holders of matured 
 stock is met by borrowing money, either from individuals 
 or local banks. This method of obtaining funds for this 
 purpose has the serious drawback that such loans can 
 
 |8f»l
 
 CHAPTER VII. 
 
 only be obtained for a limited time, and usually at a high 
 rate of interest. The burden of accumulating funds for 
 the payment of a matured series is simply shifted to a 
 period after that payment instead of accumulating them 
 beforehand, and is equally unsatisfactory. 
 
 Another plan is practiced in some associations to avoid 
 the embarrassment of meeting obligations for matured 
 shares. For some months prior to the estimated date of 
 maturity, holders of shares in the series maturing are 
 compelled to withdraw and accept the book value of their 
 shares, so that at the maturity of the series, the liabilities 
 to the shareholders are greatly reduced and more easily 
 met. 
 
 A still different plan is followed in some communi- 
 ties, namely, to make no provision for meeting the ma- 
 tured series, in cash, but after the date of maturity, when- 
 ever the association has cash on hand sufficient to redeem 
 one or more shares, to put it up at auction, and pay to 
 that shareholder in the matured series who will allow 
 the largest discount and accept the smallest sum. In 
 associations following 'this plan, these discounts fre- 
 quently form a very considerable addition to the profits 
 realized by the remaining stockholders. This serial plan 
 may be compared to a piece of machinery, each series 
 representing a small cog-wheel and all operating upon 
 one grand revolving wheel. These smaller wheels are 
 inserted one after another in their regular order. When 
 the first one has worn out, at the end of from seven to 
 twelve years, a new one is inserted in its place, which will 
 run an equal period, and as each of the smaller cogs has 
 served its purpose and done its work, it is replaced by 
 a new one, and so on continually, the old machine thereby 
 being kept constantly in repair, and in perfect operating 
 condition. 
 
 [90]
 
 PLANS OF ASSOCIATIONS. 
 
 Advantages of Serial Plan. 
 
 It will be seen that the serial association is a great im- 
 provement over the old terminating plan, inasmuch as 
 it is much more practicable and adapted in its operation 
 to the demands likely to be made upon it. It provides 
 for the constant introduction of new members and new 
 money, and has in it the element of permanency and 
 perpetual operation. Its life is being constantly re- 
 newed ; as one branch withers and drops away, another 
 grows in its place. 
 
 The plan originated in the city of Philadelphia, where 
 building associations have had their greatest demonstra- 
 tion of practical usefulness. From Philadelphia, it 
 spread over the country until it became the prevailing 
 form. As a result of this serial plan, in fact, the majority 
 of the associations doing business in the United States, 
 have adopted it. 
 
 The Permanent Plan. 
 
 As the building association idea became better under- 
 stood, and grew in strength, numbers and popularity, a 
 necessity arose for some plan or form of control, more 
 pliable and flexible than either the terminating or the 
 serial form. To supply this need a modification of type 
 then appeared, now styled "The Permanent Plan. This 
 had its origin in the State of Ohio, and from its intro- 
 duction has been received with great favor, and has re- 
 sulted in the association adopting it having unprecedented 
 growth. Under this plan associations in Ohio are 
 granted perpetual charters, the amount of their capital 
 stock being fixed at a certain sum, and as continued 
 growth makes it necessary, this authorized capital is in- 
 creased, in the manner provided by law. Under the 
 laws of this State, after articles of incorporation are 
 
 ion
 
 CHAPTER VII. 
 
 issued, the organization may be completed, and business 
 begun when 5 per cent of the authorized capital has 
 been subscribed. 
 
 As the whole building association system has been 
 one of evolution and development, from the first type 
 shown in the terminating plan, to the more highly de- 
 veloped and practical serial system, so this permanent 
 plan has gone through a system of changes and evolution 
 until it has developed into a type differing in many minor 
 features from the plan when first adopted. It is deemed 
 unnecessary to record here the various steps and changes 
 disclosed in the evolution of the permanent plan, so we 
 shall briefly describe its plans and methods as now prac- 
 ticed by the most progressive and successful associations. 
 
 In a permanent association the shares are fixed usually 
 with a par value of $100.00, $250.00 or $500.00. The 
 regular dues usually are fixed at twenty-five cents per 
 week, or one dollar per month, on each share. In many 
 associations operating under this .plan payments of fifty 
 cents and one dollar per share per week are required. A 
 member may subscribe for one or more shares, no limit 
 being placed upon the number a member may own. The 
 share may either be paid up in installments, or in full at 
 the time of subscription, and issued as paid-up shares. The 
 installment shares, or "Running Stock/' as it is some- 
 times called, are evidenced by a pass-book, in which all 
 payments and dividends are credited, and in which all 
 withdrawals are charged. 
 
 While the by-laws usually specify what the regular 
 periodical payments on installment stock shall be, as a 
 matter of practice, the associations pay little or no atten- 
 tion to the regularity of these payments. The owner 
 of installment stock is permitted to make payments at 
 any time, in any amounts, according to his circumstances. 
 One of the striking features of this plan is that no fines 
 
 [92]
 
 PLANS OF ASSOCIATIONS. 
 
 or penalties are assessed or charged against the holder 
 of installment stock for failure to make regular pay- 
 ments. He is given perfect liberty to pay more or less 
 than the regular required dues, or to suspend payment 
 altogether, if he chooses to do so. The opinion is some- 
 times expressed that unless regular payments were en- 
 forced by the infliction of a fine, that members will not 
 pay, and that the revenues of the association would 
 dwindle and disappear. Practical experience, however, 
 has shown that there is no ground for fears of this sort, 
 and the success of hundreds of associations that have 
 abolished fines entirely, and, having done so, found their 
 receipts actually greater than when fines were inflicted, 
 seems ample proof that the system of fining delinquents 
 can be abolished, and by doing so the association enjoy 
 greater prosperity. 
 
 Under the permanent plan, a member is aTliberty to 
 subscribe for stock and join the association at any time, 
 without being required to pay back dues, and participating 
 in the profits of the association from the date he became 
 a member. 
 
 The practical experience of associations operating on 
 this plan has demonstrated that one great reason for its 
 popularity and success is the fact that under this plan of 
 saving money the association is enabled to fill the vary- 
 ing needs of each of its members. At the time a member 
 joins the association, his circumstances may be such that 
 the regular payment on the number of shares for which he 
 subscribed may be the maximum limit of the sum he may 
 be able to save. It frequently happens that as time goes 
 by, he is able to save larger sums than he thought he 
 could. Under this plan he can readily increase his pay- 
 ments and deposit the larger sum which he has at com- 
 mand, and receives his reward for his increased pay- 
 ments by the larger dividends which are credited to him 
 
 [881
 
 CHAPTER VII. 
 
 at each distribution. On the other hand, in case he has 
 over estimated his ability to save money, and finds him- 
 self unable to carry the full number of shares for which 
 he has subscribed, and desires to make smaller payments, 
 or, under some circumstances, to suspend payments alto- 
 gether for a time, he can do so without loss, and when 
 improved circumstances again permit, he can again re- 
 sume his payments. 
 
 Paid-Ujt Stock. 
 
 Perhaps no feature of the permanent plan has been 
 more severely criticized by the adherents of the older 
 type, of association, than the feature which permits per- 
 manent associations to issue certificates of paid-up stock. 
 The membership of the early associations, as has been 
 related, was confined to the people in humble circum- 
 stances, who had limited sums of money at command. 
 The class of members that affiliated with these early 
 associations could not command money in sums suffi- 
 cient to purchase paid-up stock, and many people formed 
 the opinion that no other class of people should be per- 
 mitted to obtain membership in these associations. 
 
 This opinion may have been well founded in the early 
 days of the association's development, when loans were 
 made at a high rate of interest, commanding large prem- 
 iums, resulting in unusually large dividends to investors. 
 It may have been proper to oppose the movement to open 
 the doors of such associations to investors of large capital, 
 giving them the opportunity to receive excessive divi- 
 dends, paid by the borrowers, who were carrying a bur- 
 den of excessively high interest on their loans. But 
 under the development of the permanent plan, the rate 
 of interest on loans has continuously declined, until now, 
 under this plan, a building association loan does not draw 
 a higher rate of interest than does a loan made on similar 
 
 T94]
 
 PLANS OF ASSOCIATIONS. 
 
 property through other agencies. At the same time, the 
 rate of dividends paid, and the profits received by the in- 
 vesting members, under the permanent plan, have met 
 with a like decline. While building associations in prac- 
 tically every community pay a higher rate of dividend 
 on their stock than is received by depositors in other 
 financial institutions in that community, yet this rate is so 
 moderate as not to be especially attractive to holders of 
 large sums of capital, since by investing in the ordinary 
 channels of commerce and trade, and in industrial in- 
 stitutions, large capital usually receives more generous re- 
 turns than are paid by building associations. Members 
 who invest in paid-up stock in these permanent associa- 
 tions are usually more concerned over the safety of their 
 investment than over the rate of dividend which it will 
 return, and it is this feature of safety, rather than of 
 large profit, which attracts investors in the paid-up stock 
 of permanent associations. 
 
 The Fundamental Principles of Building Associations. 
 
 There is another feature to this question which should 
 be given due consideration. In growing, prosperous 
 communities there is usually a greater demand for loans 
 with which to finance home-building than ordinary re- 
 sources of the association can supply, and this brings 
 us to an examination of the question : "What are the 
 fundamental principles on which the building association 
 is founded?" There is a widespread tendency among 
 building association men to consider as fundamental 
 principles many of the practices of building associations 
 which at the last analysis are found to be merely means 
 and methods with which t<> work out into practical real- 
 ization the fundamentals for which building associations 
 exist. In the last analysis there are just two great funda- 
 
 [95]
 
 CHAPTER VII. 
 
 mental aims and purposes which the building associations 
 are organized to accomplish: First, teaching and en- 
 couraging the practice of thrift ; second, aiding and stimu- 
 lating the building of homes. Add as a vital factor the 
 idea that these two aims and purposes shall be worked out 
 and accomplished through the medium of a mutual, co- 
 operative institution, and you have all the elements of a 
 building association that are vital and fundamental. 
 
 In this analysis we have placed the practice of thrift 
 and saving as the first object of a building association, 
 and the building of homes as a second, for the reason 
 that someone must save before anyone can build. In the 
 early associations, when the membership was composed 
 wholly of persons with comparatively limited resources, 
 the funds of the association were very seldom sufficient 
 to supply all the demands. To settle the question as to 
 which of the several members who desired loans should 
 be first accomodated, the right to receive first loan 
 was determined by competitive bidding of premiums on 
 the part of members. This naturally resulted in making 
 these loans expensive to the borrower. It is evident that 
 an association from which a member can obtain a loan 
 at a lower rate of interest is much more useful than one 
 in which the aggregate interest and premium is high. 
 An abundant supply of money in the association treasury 
 tends to cheapen the cost of loans and lightens the burden 
 of debt on the borrower. It must also be remembered 
 that a member holding free shares and saving money by 
 periodical installments is practicing the virtue of saving 
 and thrift, and when he changes his relation to the asso- 
 ciation and becomes a borrower, the contribution he there- 
 after pays on his loan is merely a continuance of his 
 practice of saving, so that the contributing members and 
 the borrowing members alike are engaged in the exercise 
 of the habits of saving and thrift, the one accumulating 
 
 [96]
 
 PLANS OF ASSOCIATIONS. 
 
 funds to his credit in the association, and the other ac- 
 cumulating property in the shape of a home. The funds 
 of the saving members and the homes of the borrowing 
 members being merely different forms of wealth which 
 this saving helps in creating. 
 
 When a member desires to procure a home through 
 the aid of a loan from a building association, it is im- 
 material to him whether the funds which he borrows have 
 been accumulated in small sums by a large number of 
 members, or whether it represents a lump sum paid into 
 the association treasury by a single member; neither 
 should it make any difference to an association whether 
 the profits derived from the loan which it has made are 
 distributed among a large number of members, each 
 with a small sum to his credit, or whether it is turned 
 over to a few members who have large sums to their 
 credit, so long as the principle of mutuality is observed, 
 and that the holders of large sums receive no greater 
 rate of return for their investment than do the holders 
 of the smaller sums. 
 
 A building association holds itself out to render ser- 
 vice to its community in aiding home-building and in 
 order that it may fulfill its mission and render an ade- 
 quate service, the ideal type of association should be 
 prepared to supply all approved applications for aid of this 
 character which are presented to it. If, in order to 
 render this service and obtain funds with which to supply 
 these desired applications for loans, it becomes necessary 
 to accept offers to invest large sums of money in the asso- 
 ciation, instead of relying wholly on the small sums re- 
 ceived in the usual course, there can be no logical reason 
 why the associations should not do so. To meet these 
 conditions and to enable the association to render this 
 service and supply these demands for home-building 
 
 [97]
 
 CHAPTER VII. 
 
 loans, the issuing of certificates of paid-up stock and the 
 acceptance of large sums of money finds its ample justi- 
 fication. 
 
 Fines for Delinquents. 
 
 In terminating and serial associations, while the mem- 
 bers are treated as a group and not as individuals, when 
 the distribution of profits is based on shares rather than 
 on share values, the charging of fines for delinquency 
 is perhaps a necessity. No other plan has yet been de- 
 vised for equalizing the values of the shares. Under a 
 plan where each share receives the same amount of divi- 
 dends, whether regular dues have been paid or not, it is 
 perhaps a necessity that fines should be imposed on the 
 delinquents, for otherwise the delinquent member would 
 have a distinct advantage over the member who has 
 paid regularly and promptly. 
 
 Under the permanent plan, this reason for imposing a 
 fine does not exist, since the distribution of profits is not 
 based on the number of shares issued, but is computed 
 on the sum actually paid in by the several members on 
 their shares. The member who is neglectful in making 
 payments on his building association account finds, when 
 dividend day arrives, that his share of the profits is not 
 so large as that which is awarded to his co-members 
 who have been more thrifty and saved a larger amount. 
 This method of rewarding each member with a 
 dividend in exact proportion to the money he has saved 
 and laid by in the association, is justified by every princ- 
 iple of fairness, justice and equity, and is far more satis- 
 factory and less complicated than the plan by which each 
 share is given the same amount of dividends and then a 
 deduction made from the delinquent shares in order to 
 equalize his account with that of the member who has 
 paid regularly. There is something repelling and ob- 
 
 [98]
 
 PLANS OF ASSOCIATIONS. 
 
 noxious to the average American mind toward the idea 
 of being fined. There is a sort of "police-court" flavor 
 to the word which is repellent to him, and the principle 
 involved makes the matter far more objectionable than 
 the amount of money which the fine costs him. In most 
 associations operating under the permanent plan the idea 
 of fining members for delinquency in making their pay- 
 ments has been wholly abandoned. 
 
 This practice of eliminating the collection of fines has 
 been a matter of growth under the permanent plan. In 
 1 89 1, when the permanent plan was in the early stages of 
 development in the State of Ohio, 89 per cent, of the 
 associations of that State collected fines, and in that 
 year the fines collected by all the associations in that 
 State amounted to $78,000.00, out of a total income 
 of $70,000,000.00, or a fraction over one-tenth of one 
 per cent, of the total receipts; while in 19 18 the total 
 fines collected by Ohio building associations amounted to 
 only $23,676.00 out of a total receipt of more than 
 $335,000,000.00, or a trifle over seven-thousandths of one 
 per cent. A similar tendency to eliminate fines will be 
 observed in the progress of associations operating under 
 the permanent plan in other States. 
 
 Maturity of Shares. 
 
 The original terminating associations were organized 
 on the theory that each member would at some time be- 
 come a borrower from the association, and at the termi- 
 nation of the life of the association, each member would 
 have his loan cancelled. The serial plan was an improve- 
 ment in this idea, and recognized the fact which soon 
 became apparent, that only a portion of the members 
 of a series would become borrowers and that the non- 
 borrowers would receive at the termination of the life 
 of the series, the value of their shares in cash. 
 
 [99i
 
 CHAPTER VII. 
 
 Both of these plans, however, are based on the idea that 
 all the stock-holders interested would terminate their re- 
 lations with the association, at least, so far as that series 
 was concerned, and retire from membership; or, if the 
 stock-holders in the series just closed should desire to con- 
 tinue their relation with the association, it would have to 
 be through assuming a new relation, by affiliating with a 
 new series. In practical experience it was soon demon- 
 strated that at the time a series matured not all the mem- 
 bers of the association desired their money, or had im- 
 mediate use for it. It was also disclosed that a great many 
 shareholders had use for their savings long before the 
 series matured. It is a common experience of serial asso- 
 ciations that the shareholders who carry their shares to 
 maturity are only a small fraction of the number which 
 have been members during the life of the series. Those 
 shareholders who withdrew before the maturity of their 
 shares were required to forfeit and leave to the associa- 
 tion a greater or less portion of the profit which their 
 share had actually earned prior to withdrawal. 
 
 The foregoing facts are recognized in the permanent 
 plan. The operation of the association is adjusted to 
 meet the individual needs of the several members. There 
 is no time fixed at which the share issued to any member 
 shall mature or at which he is required to withdraw and 
 sever his connection with the association. In this way 
 there is no fixed time at which a large amount of with- 
 drawals must be met. But each member is at liberty to 
 withdraw all or any part of his credit with the association, 
 whenever he may have need for the same. This feature 
 of the permanent plan is one of the chief factors which 
 has developed the growth of the associations operating 
 on this plan, and is the chief reason for their growth to 
 such unusual size and large resources. 
 
 [100]
 
 PLANS OF ASSOCIATIONS. 
 
 The real value and usefulness of an individual to his 
 community can not be measured by his bank-account, 
 for there are so many ways by which an individual can 
 be useful and helpful through his personal influence and 
 the value of his example apart from the use of money. 
 The value and usefulness of a financial institution, how- 
 ever, such as a bank or a building association, which 
 operates only through its resources and its capital, can 
 be very accurately measured by the amount of money 
 which it has at command. The value of such an institu- 
 tion is dependent on the volume of business done, and 
 this in turn is wholly dependent on the volume of its 
 resources. Such an institution of large size is certainly 
 of greater usefulness than it could be if its resources 
 were small and trifling. 
 
 Under the serial plan, at the maturity of a series, many 
 of the shareholders who have no immediate use for this 
 money and would prefer to leave it in the care of the 
 association, are, by the rules under which the association 
 is operated, required to accept their savings and seek 
 other investments for it, while at the same time other 
 would-be-borrowers are impatiently waiting to have the 
 association fill their application for loans by which they 
 may buy or build a home. 
 
 This permanent plan adapts the operation of a build- 
 ing association to the actual needs, conditions and pos- 
 sible emergencies of each individual associated with it. 
 The introduction of this plan marks the beginning of 
 a much greater general popularity of building associa- 
 tions. Since its introduction they have sprung up in 
 large numbers in all sections. Many hundreds of associa- 
 tions have been organized and launched on this plan, and 
 hundreds of serial associations have adopted that plan 
 and changed to the permanent type. The uniform suc- 
 cess, rapid growth and great popularity attained by this 
 
 [101]
 
 CHAPTER VII. 
 
 type seems to indicate that this will become the general 
 standard form which building and loan associations will 
 adopt. The simplicity of the plan makes it very easy to 
 be understood by the average member. One of the great- 
 est factors in its popularity is the extreme simplicity and 
 freedom from unnecessary work and labor in the system 
 of book-keeping and accounting which this type of asso- 
 ciation makes possible. Doubtless future experience will 
 develop many further marked changes and improvements 
 in this plan. 
 
 Arguments Favoring the Permanent Plan. 
 
 In an address in favor of the permanent plan, before 
 the United States League, Mr. K. V. Haymaker, of De- 
 fiance, Ohio, made the following arguments. After dis- 
 cussing the features of the terminating plan, Mr. Hay- 
 maker said : 
 
 "It was soon discovered that at intervals during the progress 
 of the association, outsiders would be glad to subscribe for shares 
 and enjoy the profits and benefits afforded by this equitable form of 
 co-operation. This terminating association, however, offered but 
 one equitable plan on which new shares could be subscribed during 
 the progress of the association ; that was for the new members at 
 the time of subscribing for shares to pay in a sum equal to all the 
 dues on the share subscribed for the full time elapsed since the date 
 of organization, and an additional sum equal to a pro rata share 
 of the accumulated earnings of the association up to the date of his 
 subscription. 
 
 It frequently happened that persons thus desirous of taking 
 shares found themselves unable to pay the back dues and accumu- 
 lated profits, although they could easily afford to begin at that 
 date, and thereafter pay the regular dues. The older the association 
 grew, the more difficult and expensive it became for new members 
 to take stock; the result being that this feature of associations on 
 this plan, necessarily and inevitably limited the growth and useful- 
 ness of the association to the members who joined at the commence- 
 ment or shortly thereafter. The inflexible plan of the association 
 on one hand and the poverty of prospective members on the other, 
 kept such association weak, puny and short-lived. 
 
 [102]
 
 PLANS OF ASSOCIATIONS. 
 
 There was but one method under this plan by which an outside 
 party could enjoy the benefits of the building association scheme; 
 that was to gather together a number of individuals in the same 
 situation as himself and organize a new association. It was a very 
 natural and logical step in the line of progress, and required but 
 very little change in the plan to invent the 'serial' system of prolong- 
 ing the life and extending the influence of the terminating associa- 
 tion. The officers, managers, directors and all the necessary ma- 
 chinery for the conduct of a new association were already organized, 
 and in working order managing the affairs of the old one. Without 
 greatly increasing their labors the same officers could readily man- 
 age two or more associations ; and so it came about that when an 
 association had reached the age that made it difficult and expensive 
 for new members to join it, it became the natural and logical step 
 for the officers of the association to heed the demand of their neigh- 
 bors for additional accommodations in this line, and organize a new 
 association to be conducted by them precisely as the original asso- 
 ciation had been run; and this in time to be supplemented by a 
 third, and so on. The serial plan being in brief, a confederation of 
 terminating associations. 
 
 By thus prolonging the life of an association and extending its 
 influence and increasing its membership, a vast widening of useful- 
 ness was accomplished ; the introduction of the serial plan marks 
 a distinct epoch in the evolution of the building and loan system. 
 
 This serial plan was the natural outgrowth demanded by the 
 evils and inconvenient features of the original terminating plan. 
 Among these objectionable features which seriously interfered with 
 the usefulness of these institutions and hedged their growth within 
 narrow limits, was the fact that this scheme contemplated uniform 
 payments among all the membership in proportion to the shares 
 they respectively held. 
 
 In case the stockholder should later on find himself in a position 
 where he could easily make greater contributions, or carry a greater 
 number of shares, the rigid, inflexible plan of the association made 
 it extremely difficult for him to avail himself of such privilege. Or, 
 on the other hand, in case he found that he had overestimated his 
 ability to carry shares and that he had assumed a greater burden 
 than he could sustain, it became still more inconvenient and difficult 
 to adjust his payments to his reduced circumstances without serious 
 loss. In short, this plan offered no inducement to a member to save 
 more money than his agreement contemplated, and at the same 
 time made it compulsory for him to keep up his required payments 
 
 [103]
 
 CHAPTER VII. 
 
 even though he found later on that it would be an intolerable 
 burden for him to do so. 
 
 Another serious objection to this terminating plan was the fact 
 that it contemplated that each stockholder should at some time be- 
 come a borrower from the association ; and, of course, none but 
 stockholders could be borrowers. It frequently occurred that in 
 such associations many of the members did not require loans; and 
 if such members happened to be numerous the funds of the associa- 
 tion would accumulate and lie idle, after those desiring loans had 
 been accommodated, because none of the membership had use for 
 the money. To obviate this difficulty such associations usually de- 
 termined by lot, which of the non-borrowing members should be 
 required to withdraw their shares and receive their money, even 
 though such member preferred not to do so. Thus the association 
 would find its assets reduced by the shares thus forced to withdraw 
 and by the funds thus paid over to a member who did not desire 
 his money at the time ; while in the community there were doubtless 
 many persons not members who would have been glad of the oppor- 
 tunity of borrowing the funds, but were debarred from doing so 
 by the burdensome conditions with which they were required to 
 comply before they could become stockholders of the association 
 and be entitled to the privilege of borrowing. In some cases shares 
 thus forced out were not given their entire pro rata portion of the 
 profits already accumulated, but were allowed an arbitrary bonus 
 somewhat less than a pro rata share of the profits. In other cases 
 the idle funds were disposed of by offering a bonus above the pro 
 rata share of earnings as an inducement to members to withdraw 
 voluntarily. The result in each case was equally unsatisfactory ; the 
 first plan being unjust to the withdrawing members, and the other 
 being unjust to the remaining members. 
 
 The serial plan does not abolish or obviate these difficulties, but 
 merely mitigates them in a degree, and renders them slightly less 
 objectionable. Most serial associations have adopted a feature which 
 is a great improvement on the terminating plan, viz : in serial asso- 
 ciations it is now usual to distribute the profits and credit them 
 up to the shares either annually or semi-annually instead of keep- 
 ing them undistributed until the series terminates. Each series 
 of stock runs independent of the others and each has its own time 
 of maturing. New members are only required to pay back dues 
 from the date of the issue of the series which he joins, and all the 
 shares of a series are thus kept of equal value. The serial plan, 
 however, retains one objectionable feature of the terminating asso- 
 
 [104]
 
 PLANS OF ASSOCIATIONS. 
 
 ciation which necessarily limits the growth and narrows the field 
 which they occupy. 
 
 Under this plan each member becomes one of a class with whom 
 he must keep even step during the life of the series to which his 
 stock belongs. He must not pay more than his regular dues, for 
 that would disturb the equal value of the shares, and he must not 
 become delinquent for the same reason. He must gauge his pay- 
 ments, not by his own circumstances and ability to pay, but by what 
 his co-members in his series are paying. He must simply keep step 
 with the procession ; being neither allowed to quicken his pace nor 
 lag behind. 
 
 All the shares of each series mature at the same time, and at 
 maturity the association is expected to pay off all the shares in 
 the series at their par value. This brings us to one of the most 
 perplexing problems which confront the managers of the serial 
 association. Whenever you find a meeting of the building associa- 
 tion men gathered together, if their companies are organized on the 
 serial plan, you will find a great portion of their time spent in dis- 
 cussing the various plans by which they can liquidate and pay off 
 the matured series with the least trouble, annoyance and loss. To 
 such associations it is doubtless a problem of sufficient gravity to 
 deserve all the time and attention which is devoted to it. It is easy 
 to understand the gravity of the situation when officers of the build- 
 ing associations are looking forward to a date in the near future 
 when a series of stock is approaching maturity, aggregating, say 
 three or four hundred shares with a par value of thirty or forty 
 thousand dollars, and contemplate the fact that this amount of 
 cash must be in the treasury at the appointed time. The mere 
 question of raising and accumulating this large fund is a problem 
 not always easy of solution, and aside from this, there are other 
 phases of the question which add to the complication. For weeks, 
 perhaps months ahead, funds must be retained in the treasury in- 
 stead of being used to fill pending applications for loans. This idle 
 money earns nothing. The association is deprived of the profits 
 which this fund might otherwise earn during the weeks and months 
 it is being accumulated. Or, suppose an association borrows the 
 funds to meet a matured series instead of hoarding its receipts 
 for the purpose. In such case the result is alike, unprofitable. The 
 borrowed money draws interest which the association must pay. 
 In any aspect of the case the certainty of being required to pay so 
 large an amount of money at a time certainly presents most dis- 
 agreeable and perplexing dilemmas to a building association. 
 
 [1051
 
 CHAPTER VII. 
 
 All these objections and difficulties and problems which are so 
 annoying and perplexing and which so limit and circumscribe the 
 business of the terminating and serial associations fade away and 
 disappear or at least lose all their terrors in associations issuing 
 stock on a permanent plan. 
 
 In conducting the building association under this plan, persons 
 are permitted to subscribe stock at any time. Each stockholder's 
 shares are treated as a separate series, and an account is kept with 
 each member of the dues paid in by him on his stock and of the 
 dividends to which he is entitled at each annual or semi-annual dis- 
 tribution of profits. In the development and conduct of associations 
 under this plan in Ohio, building association managers have learned 
 that the more liberally and equitably an association can treat its 
 membership, and the more privileges are extended to them, the 
 more popular and successful the association proves to be. Under 
 this plan of liberal treatment and the extension of privileges to 
 members, many of the old practices and customs which were sup- 
 posed to be essential to building association management have en- 
 tirely disappeared. Among these may be mentioned the fact that 
 few associations in Ohio exact any membership or initiation fee 
 from persons subscribing for stock. The charge of a nominal sum, 
 usually twenty-five cents for a pass-book, is the only remnant of 
 the old practice of demanding an initiation fee of so much per 
 share. Then again, the practice of compelling non-borrowing mem- 
 bers to keep up their regular dues by imposing a fine for each 
 delinquency is fast disappearing. A large and increasing number 
 of our associations have entirely abolished the practice of imposing 
 fines upon delinquent depositing members. These stockholders are 
 permitted to regulate their payments by their own convenience and 
 the circumstances in which they may find themselves. They are 
 permitted to pay in excess of their regular dues or to pay less or to 
 cease paying altogether if they so desire. We have found that it is 
 a fixed principle in human nature, that when an individual is driven 
 to a certain course of procedure through a fear of punishment, even 
 though that punishment be merely the assessment of a fine by a 
 building and loan association, his duty will be done grudgingly, 
 unwillingly and with a bad grace. 
 
 The American people dislike to be driven, and the feeling that 
 membership in a building association will compel a man to maintain 
 his payments regularly will result in keeping more men out of 
 membership entirely, and will result in greater loss in business 
 to an association than all it can possibly gain from a rigid enforce- 
 
 [106]
 
 PLANS OF ASSOCIATIONS. 
 
 ment of fines upon delinquent members. Hence the idea has taken 
 root, and is rapidly spreading among our permanent associations of 
 permitting the widest liberties to stockholders, in the matter of the 
 amount and times of their payments. In distributing the dividends 
 to stockholders the basis on which it is figured and credited up to 
 the individual members is the sum which the several members have 
 actually paid in and which remains to their credit. Stockholders 
 very soon learn that their share of the dividends depends upon the 
 amount of their payments and the result is that in those associations 
 which are thus liberal to their members, the majority of them pay 
 their shares far in advance, and the delinquent depositor is the ex- 
 ception rather than the rule. 
 
 The borrowers are treated in a manner almost equally liberal. 
 The minimum payments which borrowers are required to pay are 
 fixed at a small sum, usually twenty-five cents per week on each 
 one hundred dollars of loan. This payment covers interest, premium, 
 and a portion to apply on their stock. This required minimum 
 payment gives the borrower from ten to twelve years in which 
 to pay off his loan. 
 
 He is, however, at liberty to pay at any time any additional sums 
 in excess of this required payment, which his circumstance and in- 
 clination may enable him to pay. The field is left open for each bor- 
 rower to do the very best he can, and discharge his entire indebted- 
 ness, or any part of it, whenever it suits his convenience. The pay- 
 ment of this minimum amount by the borrower is enforced by the 
 assessment of a small fee for delinquency. Any extra sum paid 
 in excess of the required minimum payment is credited to him as 
 payments in advance, and he is not treated as delinquent until the 
 time has elapsed for which these extra sums paid the dues in ad- 
 vance. 
 
 These provisions prove a great incentive to the average borrower 
 to pay more than his regular dues, and pay off his loans as rapidly 
 as his circumstances will permit. Of course, it is understood that 
 the borrower participates in the dividend the same as the non- 
 borrower, the basis on which his dividend is figured being the sum 
 of his payment, less the amount deducted therefrom from interest, 
 premium, fines, etc. 
 
 These associations also accumulate and maintain a reserve fund 
 for the payment of contingent losses. This is now made compulsory 
 on all permanent associations by the statutes of Ohio, which require 
 that at least five per cent, of the net earnings of each year be set 
 aside for the funds of contingent losses, until such fund shall equal 
 
 [107]
 
 CHAPTER VII. 
 
 at least five per cent of the outstanding loans. The balance of the 
 earnings, after paying the expenses, are distributed among the stock- 
 holders pro rata in proportion to the amount paid in on their stock. 
 The fact that the permanent plan of building associations deals 
 with each stockholder individually, and not with a number of stock- 
 holders as a group, permits such associations to deal with the great- 
 est liberality with their membership in the matter of withdrawals. 
 The stockholder is not only permitted to consult his own convenience 
 in regard to the time and amount of his deposits or stock payments, 
 but he is also allowed the same discretion and liberal treatment in 
 regard to the withdrawal of the payments he has made on his 
 stock. He is permitted to continue his payments until his stock 
 has matured, and even then, if he so desired, he can permit his 
 money to remain in the association, until such time as he may have 
 need for it. In case, however, he should at any time desire to with- 
 draw a portion of his stock payment, or all of it, he is permitted 
 to do so, usually upon demand. Associations protect themselves, 
 however, by a provision in their by-laws, which is in substance as 
 follows: 
 
 'Members may withdraw all or any part of the money 
 paid upon stock subscriptions at any time by giving notice 
 to the secretary, and liability to make further payments 
 on the stock and right to further dividends shall cease with 
 such notice. When such withdrawal is totaled the with- 
 drawing member shall be entitled to receive all payments 
 made upon the stock withdrawn, and all dividends declared 
 thereon up to the date of notice; provided, that if the 
 applications for withdrawal at any time exceed the weekly 
 receipts, such applications shall be filed in the order in which 
 they are received and paid in the order in which they are 
 filed, as fast as the weekly receipts will pay them.' 
 
 This permanent plan, which permits a stockholder to deposit 
 his money at such times and in such amounts as may suit his con- 
 venience or ability, which ,also, permits him to withdraw his pay- 
 ments and accumulated profits whenever he desires to do so; to- 
 gether with that feature of the plan which permits new members 
 to subscribe for stock at any time, produces this result: it frees these 
 associations entirely from that dreaded experience of serial associa- 
 tions ; that of having to meet and pay off an entire series of stock 
 at one time. The applications for withdrawal come in at irregular 
 intervals, some, perhaps every week. The usual experience is, how- 
 
 [108]
 
 PLANS OF ASSOCIATIONS. 
 
 ever, that these applications can easily and conveniently be paid 
 from the regular weekly receipts and still leave over a margin 
 which the association can loan out. If it should occasionally happen, 
 as it is almost sure to do, that the applications for withdrawal 
 exceed the weekly receipts, the difficulty is easily and smoothly 
 remedied by suspending the making of loans for a short period, 
 until the application withdrawals are satisfied. 
 
 It would seem to require no argument to prove that an associa- 
 tion will be most prosperous where the receipt and disbursement of 
 funds continues in a steady, regular flow, without spasmodic intervals 
 where enormous sums must be met at one time. Such events inter- 
 rupt the regular course of business and cannot be beneficial. Of 
 course, under the permanent plan large sums in the aggregate may 
 be demanded on withdrawal applications, but the plan of requiring 
 such applications to be filed and paid in regular order from the 
 receipts of the association, forfeiting all share of the earnings from 
 the date of such notice, enables the association to meet such con- 
 tingencies without loss. 
 
 It is a disagreeable state of affairs to have the application for 
 withdrawal exceed the weekly receipts. So very undesirable is 
 such a contingency that to us it seems almost folly to embody in 
 the plan itself features which make it absolutely certain that at 
 frequent intervals the association will be required to meet demands 
 largely in excess of the ordinary receipts. 
 
 Permanent associations usually provide in their by-laws that 
 stock withdrawn between dividend days receives no part of the 
 earnings accumulated since the last dividend was declared. Since 
 this is usually a larger sum of money than the money would earn for 
 the association during the time they are accumulating money to 
 meet withdrawals, the association realizes a profit on funds thus 
 withdrawn, instead of suffering a loss such as serial associations 
 are required to stand while accumulating funds to meet the with- 
 drawal of a whole series. 
 
 The entire plan of this permanent building and loan system is 
 simple, logical and reasonable. It makes each stockholder practi- 
 cally independent of his fellows. If, in a group of stockholders, 
 one should prove more successful, more enterprising, or more 
 economical than his fellows, and should evidence these traits by 
 larger payments upon his stock subscription, he receives his reward 
 in a larger portion of the profits each dividend day and is not 
 restricted and hampered by his less enterprising or more extravagant 
 neighbor and co-member, who may prefer to waste his substance in 
 
 [10»|
 
 CHAPTER VII. 
 
 riotous living rather than accumulating in a building and loan asso- 
 ciation. Each member is rewarded in the exact proportion to the 
 economy and self-denial which he practices and the faithfulness 
 with which he keeps up his required payments or the enterprise with 
 which he pays more than the required sum. When a member fails 
 or ceases to pay he is not punished for the default ; his dividends 
 do not increase ; they remain at the same figure each dividend day 
 until he again resumes his payments. 
 
 Reference has been made only to some of the leading features 
 which seem to make the permanent plan of issuing stock in a build- 
 ing and loan association far superior to any other plan that has 
 yet been devised. The friends of this system do not claim that it 
 has reached perfection, or that it is without faults, but they do 
 claim that it possesses many points of excellence, which render 
 it far superior to the serial plan. There is one test, however, which 
 should decide the contest, and from which there seems to be no 
 appeal, and that is the test of experience. To this test the friends 
 of the permanent plan gladly submit the question for decision. 
 
 The friends of this system of issuing stock confidently commend 
 it to the building and loan associations everywhere, believing that the 
 introduction of this system will widen the field, extend the influence, 
 and render more popular the building and loan system of accumu- 
 lating and investing money, and believe that the extension of the 
 building and loan system will have a beneficial effect in many ways, 
 and will tend in great measure to solve happily many vexed prob- 
 lems which now disturb society, and even threaten the life of our 
 government itself." 
 
 Withdrawal Rules. 
 
 The withdrawal rules adopted by building associations 
 present many differences and varieties. In terminating 
 and serial associations it frequently occurs that members 
 withdrawing within two years after joining shall receive 
 the money that they have paid in, without any share of 
 the profits; withdrawals during the third year to receive 
 10 per cent of the profits; fourth year, 20 per cent, and 
 so on, under which rules a withdrawing member would 
 not receive the full share of profits his money had earned 
 after the eighth year. Very strong reasons are advanced 
 
 [110]
 
 PLANS OF ASSOCIATIONS. 
 
 for this deduction. The loans in which the money has 
 been invested still has several years to run, and losses 
 might occur, of which the withdrawing member would 
 be entirely relieved, and the entire burden of the loss 
 would fall upon the remaining shareholders; hence it 
 seems very proper that the withdrawing stockholder 
 should be required to leave some part of the earnings 
 of his stock, as a protection to the remaining stockholders 
 against such contingent losses. 
 
 The practical application of this rule, however, demon- 
 strated that usually the sum deducted was more, than that 
 required to cover the losses which actually occurred, and, 
 as a result, the profits from this source enabled the asso- 
 ciation to pay to the continuing stockholders at the ma- 
 turity of their series a rate of profit or dividend greater 
 than the rate of interest drawn on the associations mort- 
 gage loans. This explains why associations on that plan 
 frequently state that their borrowers pay 6 per cent inter- 
 est, and their investors get 6y 2 per cent or 7 per cent 
 dividends. This statement only means that the persistent, 
 continuing stockholders who remain until the maturity of 
 the series receive dividends at that rate, and that the 
 larger number in every series who withdraw prior to 
 maturity, in fact receive a much lower rate of profit on 
 their investment. 
 
 In permanent associations, the withdrawal rules usually 
 provide that a holder of unpledged shares may withdraw 
 all or any part of the credit on his shares at any time, 
 without notice; but it provides also that the association 
 may require notice of withdrawal at any time, which 
 notices shall be filed in the order in which they are given, 
 and paid in the order in which they are filed, as fast 
 as fifty per cent of the receipts of the association will 
 pay them. They further provide that the directors may 
 use a larger portion of the receipts at any time to 
 
 llll]
 
 CHAPTER VII. 
 
 pay withdrawals. A member who withdraws his entire 
 acoount shall receive the entire sum to his credit, including 
 payments made and dividends declared, less his pro rata 
 share of the losses of the association in excess of the 
 reserve accounts and undivided profits of the association. 
 Under this rule, each member receives all the net profit 
 which his investment has earned. This seems just and 
 equitable, since it would be manifestly unfair to deprive 
 any member of the full profit which his investment has 
 earned, and use it to swell the profits of other members 
 whose investments did not earn it. 
 
 Reserve Fund. 
 
 The creation of a reserve fund, or a contingent fund to 
 protect the association from losses which might be sus- 
 tained, is a comparatively modern development, and did 
 not exist in the early associations. Indeed, under the 
 early plan upon which associations were operated, such a 
 separate fund was not needed, since in the early days 
 all the profits were kept together and undistributed until 
 the termination of the association or the maturity of the 
 series; and any losses which might be sustained were 
 charged as they occurred against the aggregate profits. 
 
 When, in the evolution of the plan, serial associations 
 began the practice of making periodic distribution of 
 earnings, many of them adopted the plan of creating a 
 reserve fund, as a protection against losses, and this prac- 
 tice is still observed by many serial associations. 
 
 The creation and maintenance of a reserve fund is a 
 very essential feature in the permanent plan. In most 
 of the States, where the permanent plan prevails, the 
 creation of a reserve fund for contingent losses, is made 
 compulsory by statute. The Ohio statute provides that 
 permanent associations shall either annually or semi- 
 annually set aside at least 5 per cent of the net profits 
 
 (1121
 
 PLANS OF ASSOCIATIONS. 
 
 to a fund for contingent losses, and that this fund can 
 not be used for any other purpose than the payment of 
 such losses. 
 
 The existence of a reserve fund does much to regulate 
 and stabilize the operation of a building association and 
 to keep its rate of dividend constant and uniform. It 
 becomes a sort of insurance to guarantee the safety of 
 investors and to assure them of the regularity of their 
 dividends. However careful and conservative a board 
 of directors may be in conducting the affairs of an asso- 
 ciation, it is almost certain that at some time during its 
 career it will suffer losses, and it would seem to be a wise 
 provision to accumulate a reserve fund in moderate 
 amounts from time to time through the life of the asso- 
 ciation, from which these losses might be paid, rather 
 than that the entire burden should fall upon the members 
 belonging at the time the fact of loss is ascertained. 
 
 It is a well-established principle that this reserve fund 
 is for the protection of the entire membership of the 
 association, and that withdrawing members and holders 
 of matured stock are not entitled to demand any part 
 thereof when they sever their relations and withdraw 
 from the association. 
 
 The question is sometimes asked: "What disposition 
 will be made of this reserve fund when the association 
 liquidates and goes out of business?" The answer to 
 this query is that so long as an association is successful 
 and prosperous there is no reason why it should liqui- 
 date and go out of business. It is doubtful if any serial 
 or permanent association has ever liquidated and gone 
 out of business while it was yet successful and prosper- 
 ous. The only reason for such a step would be found 
 in the fact that the association had met with losses and 
 become insolvent and for that reason should be wound up. 
 When that condition exists the reserve fund, would of 
 
 [1131
 
 CHAPTER VII. 
 
 course, be applied to meet the losses and when the time 
 of liquidation arrived there would be no reserve fund left, 
 over which to quarrel. 
 
 The amount of a reserve fund which an association 
 is permitted or required to accumulate is a problem 
 worthy of consideration. In some states the statutes fix 
 a minimum, and require the accumulation of a reserve 
 fund by regular periodic additions thereto until this 
 minimum amount is reached. In other States the statutes 
 fix a maximum, and forbid the association accumulating 
 a reserve fund above that amount. The Ohio law has 
 fixed the minimum at 5 per cent of the total assets. The 
 Illinois statute provides that no less than 1 per cent or 
 more than 5 per cent of the net profits shall at each 
 periodic apportionment be set aside as a guarantee or 
 contingent fund, until such fund amounts to 5 per cent 
 of the dues capital, and it shall thereafter be maintained 
 at no less than 5 per cent nor more than 10 per cent 
 of the dues capital. 
 
 The amount set aside to this reserve fund should, of 
 course, not exceed the maximum stipulated in the statute 
 and where no such maximum is fixed, it would be unwise 
 for an association to accumulate a reserve fund unreason- 
 able in amount, or to apply for that purpose so large a por- 
 tion of the earnings as would materially interfere with the 
 regular rate of dividend ; and while a case has never been 
 decided in any court, it is probable that a court of equity 
 would interfere with any unreasonable accumulation of 
 a reserve fund and decree a distribution of so much there- 
 of as would reduce it to a reasonable figure. 
 
 The principles involved in this question are quite ably 
 discussed and fully decided in the case of Greeff vs. the 
 Equitable Life Assurance Society, 160th New York, 16, 
 73d American State Report 659, in which case the court 
 decided that common business prudence required the ac- 
 
 [114]
 
 PLANS OF ASSOCIATIONS. 
 
 cumulation of a reserve fund to meet possible losses, and 
 so long as this reserve fund was not unreasonable in 
 amount, the retiring member was not entitled to have it 
 distributed. In that case the court decided that the re- 
 serve which the Equitable had accumulated was not un- 
 reasonable and denied the right of the retiring policy- 
 holder to demand and receive a portion thereof. 
 
 Premiums. 
 
 In the early development of the building association 
 plan, the premium was a very important factor in its 
 practical operation. The funds of the association were 
 accumulated in small amounts and by slow degrees and 
 it was only at infrequent intervals that a sum was 
 large enough for loan purposes. An association that 
 had funds with which to make a loan usually had 
 numerous members who desired to borrow, greatly in 
 excess of the funds on hand. It was the usual practice 
 to put this money up for sale to the member who would 
 bid the highest premium. This competitive bidding fre- 
 quently resulted in associations receiving very high prem- 
 iums on their loans. For example, suppose an associa- 
 tion had $1,000 in its treasury. It was a frequent occur- 
 rence for members to bid as high as $200 premium for 
 the privilege of borrowing this money. In such cases 
 the borrower would give his mortgage for $1,000 and 
 the premium bid would be deducted from his loan, and he 
 would receive $800 in cash, and the $200 premium be- 
 ing at once passed to the profit and loss accounts of the 
 association. These high premiums resulted in extremely 
 high profits to the association, but as time passed by and 
 the termination of the association approached, or the 
 series to which the money belonged drew near its matur- 
 ity, the time for which the borrower could have the use 
 of the money was correspondingly shortened, making the 
 
 [115]
 
 CHAPTER VII. 
 
 loan less desirable and attractive. The rate of premium 
 bid became largely reduced, until near the end of the asso- 
 ciation or the maturity of the series there would be no 
 demand at all for the money. The natural result of this 
 system was that associations following the gross premium 
 plan, as this was called, made exorbitant profits in the 
 early period of its operation, which gradually became re- 
 duced until as it approached its end the current profits 
 rapidly dwindled away. 
 
 The gross premium plan was then supplanted by the 
 installment premium plan. Under this plan each bor- 
 rower would bid the amount of premium which he was 
 willing to pay with each installment in addition to his 
 interest and dues. This was a great improvement over 
 the gross premium plan. It tended greatly to stabilize 
 the operation of the association, and to render the profits 
 more constant and regular. 
 
 As associations grew in strength and popularity and 
 increased their resources, the rate of installment premiums 
 rapidly diminished until at the present time the premium 
 feature has entirely disappeared in many associations, 
 and in those in which it still is retained it is a very small 
 and trifling factor. 
 
 It is believed that the gross premium plan was never 
 used or followed by associations operated on the perma- 
 nent plan. Many of them adopted the installment plan 
 of premiums, but the rate of premium charged has been 
 rapidly reduced and in a large majority of permanent as- 
 sociations has been abolished entirely and the cost of 
 loans to borrowers reduced to the regular interest rate 
 prevailing in the community where they operate. 
 
 The combined sums paid by the borrowers as interest 
 and premium in the early days of the association develop- 
 ment, frequently amounted to a rate in excess of the legal 
 rate of interest in the State in which they were operating. 
 
 [116]
 
 PLANS OF ASSOCIATIONS. 
 
 Most of these States provided that these charges should 
 not be considered usury, in view of the fact that the bor- 
 rower who paid these excesses participated in the result- 
 ing profits, and for this reason exempted building asso- 
 ciations from the provisions of their statutes against 
 usury. 
 
 With the development and growth of the building 
 association movement and the resulting decrease in the 
 interest paid and premiums bid, the cost of building 
 association loans in most communities does not now ex- 
 ceed the legal rate of interest in the States in which 
 they operate. 
 
 The rapid rate at which the item of premiums on 
 loans is disappearing is clearly shown by an examination 
 of the progress in the State of Ohio. The report for 
 1 89 1 shows: 
 
 Total receipts $30,349,000 
 
 Premiums 476,529, or V/ 2 % of the receipts 
 
 The report for 1919 shows: 
 
 Total receipts $336,485,000 
 
 Premiums 180,648, or approximately .005% 
 
 The examination of statistics in other States will dis- 
 close similar facts. 
 
 The Charging of Fees. 
 
 The charging of fees of various kinds has always been 
 a marked feature of building associations. These have 
 been imposed under various forms and pretexts, such as 
 a membership fee, charged against each member and fre- 
 quently against each share for which he subscribed; a 
 transfer fee, charged when stock was transferred from 
 one member to another; a cancellation fee. charged 
 against withdrawing or maturing stock. These several 
 fees collected by the association produced an addition to 
 
 11171
 
 CHAPTER VII. 
 
 their profits derived from interest on loans which aided 
 them very materially in defraying the expenses of organ- 
 ization and operation of the institution. 
 
 The National Building and Loan Association. 
 
 In the decade from 1885 to 1895, there arose a system 
 called the "National Building and Loan Association." 
 These institutions adopted the name of building associa- 
 tion and from a central headquarters extended their oper- 
 tions throughout the United States. Institutions in this 
 system invariably exacted extravagant fees from its 
 members wherever it was possible for them to find any 
 excuse for so doing. They included in their plan all the 
 fees which local associations had ever imposed, increased 
 them largely in amount, and in addition, made the com- 
 mon practice of deducting from every stock payment a 
 certain portion which they applied to an expense fund. 
 The scandalous charges for fees and expenses which 
 these National Associations imposed on their member- 
 ship, resulted in legislation in most of the States, limiting 
 and regulating the fees which associations are permitted 
 to charge. Some of these reformatory enactments went 
 to the other extreme, and either abolished the collection 
 of fees altogether or limited them to such trifling amounts 
 as to leave the associations with practically no funds 
 from which they could advertise their merits, or expend 
 any money as compensation for soliciting new business. 
 In some States the statute absolutely forbids associations 
 paying any sum whatever as commission for soliciting 
 new members. 
 
 Cancellation Fees. 
 
 In one of the Western States, where the law is more 
 liberal, a very successful association has adopted the 
 
 [118]
 
 PLANS OF ASSOCIATIONS. 
 
 plan of abolishing all fees and fines, except that of a can- 
 cellation fee of $1.00 per share, which is retained by the 
 association from every member's stock when he severs 
 his connection with the association, either by withdraw- 
 ing or by the maturity and payment of his shares. Under 
 this plan all the money paid in by the member remains 
 to his credit, participating in regular dividends, so long 
 as he retains his membership. For example, a member 
 subscribes for ten shares of the association's stock, pay- 
 able in installments of $10 per month. When he retires 
 from the association, $10 of his credit is retained by the 
 association as a cancellation fee. This, however, need not 
 be a loss to the member, since he is given a cancellation 
 certificate for the amount thus retained, and if, at any 
 time within a fixed period, usually one year, he rejoins 
 the association, and subscribes for another ten shares of 
 stock the association will receive this certificate as a cash 
 payment and again place it to his credit, drawing interest 
 as before. These certificates are not transferable, and 
 can only be used by the individual to whom they are 
 issued. While this deduction is called a cancellation 
 fee, as a matter of practice the first $10 which the 'mem- 
 ber pays in on his stock is at once credited this fee and 
 carried to the profit and loss account and is available at 
 once for use by the association as an item of profit. 
 
 In the association referred to, the revenue from this 
 source has been of such volume as to pay practically all 
 the running expenses of the association and has enabled 
 them to employ one or more solicitors, devoting their 
 time to procuring new members and subscriptions to the 
 stock of the association, for which they receive a portion 
 of this cancellation fee. The success of this association 
 has been remarkable, since it has accumulated almost five 
 million dollars of assets in about six years' existence; 
 and seems to demonstrate the very high value of personal 
 
 [119]
 
 CHAPTER VII. 
 
 solicitation as a means for advertising and calling the 
 attention of the public to the merits of building associa- 
 tions. 
 
 All kinds of advertising is of greater or less value, 
 but no kind of advertising is so effective and produces 
 such immediate and satisfactory results as personal solic- 
 itation. The spoken word, man to man, has greater 
 weight and is far more convincing than any use of the 
 printed page. 
 
 Special Deposits. 
 
 In every community will be found many people who are 
 prejudiced against the idea of purchasing stock and as- 
 suming a stockholders liability. The character of an 
 investment in a building and loan association is so dif- 
 ferent in its nature from that of stock in an ordinary 
 corporation that it is unfortunate that there is not in the 
 English language some word other than "stock" which 
 might be applied to a building association investment. 
 No other name, however, has thus far been suggested, and 
 investments in building associations are universally 
 termed "subscriptions for stock." The prejudice against 
 stock investments has undoubtedly kept multitudes of 
 individuals from membership in a building association 
 who would have become members had they thoroughly 
 understood the real nature of the rights, duties and obli- 
 gations of building association members. This condition 
 has been met in some States by a provision of the law 
 which enables building associations to receive "Special 
 Deposits." The owner of a special deposit account does 
 not become a stockholder in the building association. 
 He assumes no stockholder's liability, does not participate! 
 in the dividends declared by an association, but receives 
 a specified rate of interest on the money he entrusts to 
 its care. 
 
 [120 J
 
 PLANS OF ASSOCIATIONS. 
 
 Special deposit accounts are a preferred claim against 
 all the assets of the association and in case the associa- 
 tion should become financially embarrassed, these special 
 deposits must be paid in full before the stockholders are 
 paid. The rate of interest paid on special deposits is 
 usually less than the rate of dividends paid on stock. 
 Associations that have large sums of these special de- 
 posits, sometimes exceeding their stock deposits, are able 
 to pay larger stock dividends, because of the profit from 
 the use of these deposits drawing a lower rate of interest, 
 and loaned out at the usual rate on mortgage loans. 
 There are only a few States which permit building asso- 
 ciations to accept deposits of this character. 
 
 Permanent or Guarantee Stock. 
 
 In some States building associations are permitted to 
 issue a class of stock known as "Guarantee" or "Perma- 
 nent" stock. This class of stock is thus defined in the 
 statute of California : 
 
 "Guarantee stock shall be stock provided for in the by-laws 
 to be set apart and sold as a fixed, permanent or guarantee capital. 
 When any such stock has been once so set apart and sold and issued, 
 it shall thereafter remain as a fixed, permanent and guarantee capital, 
 and shall be subject to all the conditions and liabilities attaching to 
 the paid-in capital stock of other classes of corporations. Such 
 guarantee stock shall protect and guarantee all other stockholders 
 and creditors against any loss, and when once paid it must be kept 
 unimpaired." 
 
 The following is the provision of the Kansas statute 
 on this subject : 
 
 "Any such corporation may issue permanent stock for which 
 full par value shall be paid at time of issue, or in monthly install- 
 ments of $5.00 per share, at the option of the purchaser, and on 
 which permanent stock a full dividend or a definite dividend may be 
 paid, which dividend shall in no case exceed the per cent per 
 annum yielded by any other class or series of stock at the time such 
 
 [121]
 
 CHAPTER VII. 
 
 dividend is declared. The balance of profit, if any, and the principal 
 paid on said stock, shall not be paid to the holders of the same until 
 all lawful claims of every other class of stock in its series, as ex- 
 pressed in the certificates of such other classes, and all other liabil- 
 ities of such corporation shall have been fully liquidated and paid." 
 
 In States which provide for the issue of this perma- 
 nent or guarantee stock, associations are usually per- 
 mitted to specify at the time of issuing the rate of divi- 
 dend which other stock shall receive, and after paying 
 this specified rate to the other classes of stock, the residue 
 of the profits may be distributed as a dividend on this 
 guarantee stock. 
 
 In the State of Washington stock of this character is 
 called Reserve Fund Stock, and the by-laws of any asso- 
 ciation may provide for the issue of reserve fund stock, 
 up to 5 per cent of its paid-in capital, and further pro- 
 vided : 
 
 "Such reserve fund stock may participate in all earnings equit- 
 ably with the general stock, and be chargeable with real estate taken 
 under foreclosure or otherwise in the adjustment of delinquent 
 loans, together with all direct losses of whatever nature sustained 
 by the association in the general course of business, and in considera- 
 tion of such guarantee against loss, and when provided in the by- 
 laws such stock may receive additional dividends and such stock 
 shall not be subject to withdrawal until all other liabilities and all 
 other classes of stock of the association shall have been liquidated, 
 and an association may agree to mature its other classes of stock 
 at a fixed time, provided any deficiency arising therefrom shall be 
 chargeable only to such reserve fund stock." 
 
 Farm Loans or Rural Credit. 
 
 One of the most significant developments of the build- 
 ing association movement in recent years is its applica- 
 tion to the making of farm loans. For many years these 
 institutions restricted their loaning operations to loans 
 repayable by weekly or monthly payments. This practice 
 had become so firmly established that the idea became 
 
 [122]
 
 PLANS OF ASSOCIATIONS. 
 
 quite generally accepted that the weekly or monthly pay- 
 ment was one of the essential features of building asso- 
 ciation business. 
 
 Farming conditions in most communities are such that 
 few farmers can make weekly or monthly payments. 
 Farmers must usually depend on their annual crops or 
 the sale of live stock for their income, and these are 
 generally marketed only once or twice a year. Many 
 prosperous, well-to-do farmers find it impossible to make 
 monthly or weekly payments on a loan, but could easily 
 pay the aggregate dues annually or semi-annually. So 
 long as building associations insist on weekly or monthly 
 payments, from all of their borrowers, they are practi- 
 cally barred from making loans to farmers. 
 
 An amortised loan on the building association plan is 
 one paid off by periodical installments, covering the ac- 
 crued interest and an additional sum for a sinking fund 
 with which to meet the debt, or as is sometimes done, to 
 be applied directly in reduction of the debt. It so hap- 
 pened that in the early days of building associations most 
 of their members drew their wages monthly and to meet 
 the convenience of their members the periodic payments 
 were adjusted to coincide with their monthly pay days. In 
 other communities, where wages were paid weekly, build- 
 ing associations adjusted their plan to meet that condition, 
 and received their contributions from their members 
 weekly instead of monthly. 
 
 Under the elastic and flexible plan on which the perma- 
 nent associations are conducted, the contracts with each 
 individual borrower can be arranged and adjusted to suit 
 his convenience. Where his income is received weekly, 
 his contributions to the association may be made weekly. 
 Where he receives his wages monthly, his contract pro- 
 vides for monthly payment; and a farmer who receives 
 his income once or twice a year can, under this plan, 
 
 [128]
 
 CHAPTER VII. 
 
 make a loan payable semi-annually or annually, as may 
 best suit his convenience. All these varying contracts 
 arc the same in principle; namely, paying off the loan in 
 periodic payments to suit the convenience of the borrower. 
 
 The extension of the building and loan system to the 
 making of farm loans payable in semi-annual or annual 
 payments has opened to the building association move- 
 ment a field of tremendous magnitude. 
 
 While the extension of building and loan associations 
 in reference to the field of farm loans is comparatively 
 recent, it has already assumed quite large proportions, 
 and is growing at a very rapid rate. The Ohio building 
 associations are now carrying about thirty million dollars 
 of farm loans on the building association plan, and in 
 the States of Indiana, Kansas, Nebraska, and others, this 
 line of business is being rapidly extended. 
 
 [1241
 
 CHAPTER VIII. 
 
 How to Organize. 
 
 Necessary Conditions. 
 
 The plans and methods of organizing a building asso- 
 ciation have undergone great changes in the last few 
 decades. In the early days of building association de- 
 velopment they were confined to thickly settled communi- 
 ties, and their membership was exclusively made up of 
 wage-earners, receiving their pay monthly. Industrial 
 conditions have greatly changed since that time. The 
 payment of wages, semi-monthly or weekly, has become 
 almost universal in American industry. Keeping step 
 with this change, building associations very quickly ad- 
 justed their plan, and instead of requiring payments on 
 association stock and loans to be made monthly, as origin- 
 ally provided, semi-monthly or weekly payments were 
 soon provided by building associations, to correspond 
 with their members' pay-days. It was also found that 
 in every community there were individuals whose income 
 was irregular in amount and uncertain as to the time to 
 which it was received; that these individuals would be 
 glad to avail themselves of the benefits and advantages 
 that a building association offered, but could not comply 
 with the rigid rules requiring regular payments of speci- 
 fied amounts. This was especially true in small towns 
 in agricultural communities, where the regular wage- 
 earners were not sufficient in number to justify the organ- 
 ization of a building association for their exclusive use; 
 where farmers in the surrounding country would not 
 
 [126]
 
 CHAPTER VIII. 
 
 avail themselves oi the advantages of building associa- 
 tion membership if regular, periodic payments were in- 
 sisted on. 
 
 The elastic, flexible plan offered by the permanent type 
 of building and loan association has been found admir- 
 ably adapted to communities of this character, and has 
 opened up a wide and fruitful field in which to plant and 
 cultivate the building association movement. 
 
 While it is no longer necessary that the membership 
 in building associations should be restricted to individuals 
 drawing regular wages at regular intervals, it is highly 
 desirable that the community in which a building associa- 
 tion is organized should have a considerable portion of 
 its citizens thus engaged. There should be a community 
 of wage-earners, containing a considerable number of 
 persons with small incomes, and the local industries from 
 which the incomes of these members of the community 
 are derived should have the element of permanency ; that 
 is, the products of the local industry should be of staple 
 articles which would probably always find a ready market. 
 Or it should be a community interested in market-garden- 
 ing, or other line of agriculture, or engaged in numerous 
 industrial enterprises. It should be constantly borne in 
 mind that the funds of the association are to be chiefly 
 invested in the building of homes by the members of the 
 association ; hence the community in which a building as- 
 sociation is established should have a variety of industries 
 and numerous concerns in which wage-earners could find 
 employment. 
 
 In a community containing but a single industry, pro- 
 viding but a single opportunity for obtaining employ- 
 ment, it might not be advisable for a wage-earner to in- 
 vest in a home, since the destruction or removal of that 
 single industry or the change in commercial and financial 
 conditions which might compel it to suspend operations, 
 
 [126]
 
 HOW TO ORGANIZE. 
 
 might find the member with all his available funds in- 
 vested in his home, and absolutely no opportunity within 
 his reach where he could find employment or by which 
 he could earn a livelihood. 
 
 Building associations have so increased in number in 
 some cities that there is serious competition among them. 
 Where numerous associations already exist, the question 
 should be carefully considered as to whether there is a 
 real need or demand for another. It sometimes occurs 
 that associations are organized not so much to supply 
 the actual needs of the people who are induced to become 
 members as in response to the efforts of some individual 
 or individuals who have their own private ends in view. 
 Sometimes persons engaged in trade may desire to or- 
 ganize an association and have it meet at their place of 
 business or in their vicinity, for the purpose of drawing 
 custom for them. Some attorney may take an active part 
 in the organization of an association in order to increase 
 his clientage. It quite frequently occurs that someone 
 interested in a real estate subdivision may organize an 
 association in order to find a market for his lots. These 
 motives are not objectionable in themselves, provided 
 there is back of them a real need for an association on the 
 part of the members themselves, who are to compose it. 
 In many communities where building associations are 
 very numerous it would seem more proper to consider 
 the question of combining and consolidating some of the 
 smaller associations, reducing the overhead expenses oil 
 management, rather than to increase the number of them 
 by organizing new associations. 
 
 Preliminary Stefts. 
 
 Very great care should be given to the first steps 
 taken toward the organization of an association. Unless 
 a good foundation is laid in the beginning, the enter 
 
 |127|
 
 CHATTER VIII. 
 
 prise cannot be assured of success. Take, for example, 
 the organization of an association in a town which has 
 none. If it is a live, prosperous community with a fair 
 proportion of working men earning regular wages in 
 firmly established and permanent industrial concerns, of 
 which there should be several; a community furthermore, 
 surrounded by a prosperous agricultural community, 
 commanding a mercantile trade of reasonable volume, 
 this would be a very proper one in which to organize 
 and operate a building association. 
 
 Great care must be taken to have only trustworthy men 
 connected with the organization of such an association, 
 as well as conducting it through all its progress. 
 
 When the proper persons have been interested in the 
 movement, it is usual for them to attach their names to 
 an agreement to share equally in the liabilities for the 
 preliminary expenses, such as advertising, rent for place 
 of meeting, blank books, forms and supplies. A public 
 meeting should then be called for in some convenient and 
 respectable place. At this meeting temporary officers 
 should be chosen. These consist usually of a chairman, 
 a treasurer, a secretary, and an attorney. These should 
 be persons of position and influence in the community, 
 who have had some experience conducting public meet- 
 ings. Someone should be present at such a meeting who 
 is able and prepared to make a clear explanation of the 
 plans, purposes, and workings of a building association. 
 In case no one in the community is available who has 
 had sufficient experience to properly present the subject, 
 it would be highly desirable to secure the services of an 
 expert from some other community who could properly 
 present this subject. 
 
 It should be made plain that such an association is not 
 an individual enterprise, but is a community proposition, 
 in which every member of the community has a vital in- 
 
 [1281
 
 HOW TO ORGANIZE. 
 
 terest. It is not organized to advance the personal inter- 
 ests of any individual or group of individuals or of any 
 special line of business in the city, but is to be an insti- 
 tution for aiding every individual who cares to become 
 a member in forming and practicing habits of thrift and 
 saving, and increasing his personal prosperity; and for 
 the further purpose of improving and upbuilding the 
 community and adding to the community wealth by the 
 building of homes for those who need them. Even be- 
 fore such a meeting is held, it would be advisable for the 
 promoters to have personal interviews with the managers 
 of the leading industries and business concerns of the 
 community, and their attention clearly called to the ad- 
 vantages and benefits which such an institution would 
 supply to the community, and indirectly, to every line of 
 business in the community. 
 
 Dealers in lumber and other building materials are 
 especially interested in such an institution. Each new 
 house which a building association makes possible, means 
 more business for the dealer in this class of material. 
 The hardware dealer can readily be shown how he is in- 
 terested in the success of such an enterprise. Every new 
 house must be furnished, and this is an interesting sub- 
 ject to every dealer in furniture, carpets and curtains, 
 and all the other items that go to furnishing a home. 
 Every new home that is built supplies work for all the 
 various building trades, the carpenters, the bricklayers, 
 the plasterers, the painter, the decorator. So all the 
 labor unions engaged in this line have a vital interest in 
 the success of the building association. Every new home 
 must be heated, so that the activities of an enterprise, 
 which devotes its energies to the building of new homes, 
 becomes at once of deepest interest to the dealer in coal 
 or other fuel. This list might be indefinitely extended to 
 show that every business man engaged in every line of 
 
 [120]
 
 CHAPTER VIII. 
 
 business has a vital, personal business interest in the or- 
 ganization and successful operation of a building associa- 
 tion in his community, and when these facts are properly 
 presented it should be an easy matter to secure the helpful 
 co-operation of every far-seeing business man in the com- 
 munity, and to secure their aid in making the organiza- 
 tion and management of such an association a success. 
 It may not be possible at the first meeting to determine 
 finally as to the advisability of attempting to organize 
 an association. The meeting may decide to appoint solic- 
 itors to make a preliminary canvass so as to discover 
 the possibility of securing a sufficient number of members 
 to justify the attempt. For this or other satisfactory rea- 
 sons it may be necessary to hold several preliminary meet- 
 ings before attempting a permanent organization. Care 
 should be exerted in keeping the preliminary expenses as 
 low as possible. In many communities the Board of 
 Trade, Chamber of Commerce, Rotary Club, or other 
 similar organization of business men, and sometimes a 
 combination of these, interest themselves in the organi- 
 zation of such an association and supply the funds to pay 
 the expenses of the preliminary organization, and the 
 procurement of the books and supplies for the associa- 
 tion, so that it may begin business without requiring 
 expenses of this character to be paid for from associa- 
 tion funds. 
 
 Choice of Name. 
 
 When the organization of a building association has 
 been finally decided, one of the first things to be done is 
 to choose a name for the institution. In making this 
 choice the following matters must be borne in mind : 
 
 First : The name must, in its form, correspond to the 
 requirements of the statute under which the association 
 is organized. 
 
 [130]
 
 HOW TO ORGANIZE. 
 
 Second : It must not be connected with or bear a close 
 and misleading resemblance to the name of any other 
 similar organization in the place where organized. 
 
 Third : It must not be of such general descriptive 
 character that the association can not, by using it, acquire 
 exclusive rights in it. 
 
 Fourth : The name must not be improperly or 
 prejudicially assumed, and must not be misleading in its 
 form or character. 
 
 Capital Stock. 
 
 .At an early stage of the proceedings it will be neces- 
 sary to determine upon the amount of authorized capital 
 stock of the proposed association and the number and par 
 value of the shares. The authorized capital and the num- 
 ber and par value of the shares should be determined 
 largely by local conditions. In some States the fee for 
 obtaining a charter or articles of incorporation is based 
 upon the amount of authorized capital. In some States 
 this charter fee is so large and excessive as to be quite 
 burdensome. In other States the statute provisions recog- 
 nize the practical character of a building association and 
 make the charter fee merely a nominal one. In Ohio a 
 building association charter fee is $10, regardless of the 
 amount of authorized capital, while in other States the 
 charter fee, which must be paid is as high as fifty cents on 
 each thousand dollars of authorized capital. 
 
 This charter fee is, perhaps not excessive for ordinary 
 corporations where the subscribed capital must be paid 
 in cash at the time of organization ; but for a building 
 association in which a subscription to $1,000 of the cap- 
 ital stock is paid by the subscriber in installments of, 
 say $10 per month, a charter fee of that size is exorb- 
 itant and excessive. In ordinary corporations the amount 
 of capital stock usually forms but a small fraction of its 
 
 [131]
 
 CHAPTER VIII. 
 
 assets, while in a building- association the authorized 
 capital is always largely in excess of its assets. Ordinary 
 corporations are usually operated with the aim of securing 
 large profits for a small group of stockholders, in some 
 line of business dealing with the general public. It might 
 be operated successfully and profitably for the stock- 
 holders without creating a single dollar's worth of taxable 
 community wealth. A building association, however, is a 
 quasi-public institution, in which every citizen has the 
 opportunity of acquiring membership and sharing in its 
 benefits and at the same time is constantly creating per- 
 manent additions to the tax-paying wealth of the com- 
 munity. These considerations should be adequate reason 
 why the organization of building associations should be 
 encouraged and stimulated by permitting them to be or- 
 ganized at the least possible cost and expense. 
 
 In communities where conditions indicate that an asso- 
 ciation would quickly and rapidly grow to a large size, 
 the initial authorized capital is usually placed at from 
 five hundred thousand to five million dollars, the par 
 value of the shares ranging from one hundred to five 
 hundred dollars each. In small towns, where building 
 associations development would be naturally more limited 
 and restricted, the initial authorized capital varies from 
 fifty thousand to one million dollars. The regular dues 
 or periodic payments on installment stock are usually 
 fixed at twenty cents to fifty cents per week, or one dollar 
 to two dollars per month. 
 
 This charter fee is, perhaps, not excessive for ordinary 
 is sometimes limited, so that the association cannot be 
 controlled by a few large shareholders. The same re- 
 sults are frequently attained in other ways. For example, 
 in some States the statute provides that each shareholder 
 shall be entitled to cast one vote only, regardless of the 
 number of shares he may own. In other States, the law 
 
 1132]
 
 HOW TO ORGANIZE. 
 
 provides that a shareholder may cast one vote for each 
 share of stock which he owns, provided that the total 
 number of votes which he may cast in his own right shall 
 not exceed twenty. Another plan for preventing- the con- 
 trol of the association falling into a few hands is adopted 
 by some associations providing in their by-laws that each 
 member shall be entitled to cast one vote for each $100 
 paid in on his stock, and a proportionate fraction of a 
 vote for all sums so credited thereon less than $100, and 
 at the same time limiting the total number of votes 
 which any shareholder may cast. 
 
 The name of the association and the amount of the 
 authorized capital and par value of the stock are, of 
 course, essential features in the articles of incorporation, 
 and in the constitution which is adopted. The whole 
 subject of capital stock, which is of great importance, 
 is fully discussed in its appropriate place in another part 
 of this book. 
 
 The Constitution. 
 
 One of the most important matters connected with the 
 organization of an association is the framing of the rules 
 or articles under which it is to be operated. This task 
 should be placed in the most competent and experienced 
 hands, and their work should be carefully revised and 
 scrutinized before adoption. In some States the essential 
 fundamental plan of the association, that is to say, its 
 constitution, is a part of the articles of incorporation to 
 be approved by the State authorities, and forms the char- 
 ter under which it is authorized to operate. In other 
 States the charter or articles of incorporation is merely an 
 authority issued by the State, permitting the association 
 to organize and conduct its business. But in nearly every 
 State the charter or articles of incorporation, the consti- 
 
 [188] 
 10
 
 CHAPTER VIII. 
 
 tut ion and the by-laws, are subject to inspection, revision 
 and approval of some State authority. As this constitu- 
 tion, or articles of incorporation, where the law so re- 
 quires, becomes the fundamental law, it should be framed 
 and drafted with a view to permanency, and changes 
 therein should only be permitted through imperative 
 necessity and requiring a large majority approaching 
 unanimity of the shareholders to change it. For this 
 reason it should be drafted on broad lines, including 
 only the fundamental plan, principles and regulations upon 
 which the association is to be operated. It should be ex- 
 pressed in plain language, avoiding all clouded and doubt- 
 ful phrasing. All minor regulations covering the de- 
 tailed operation of the association should be omitted from 
 the constitution or articles of incorporation and reserved 
 for the by-laws and rules of business. 
 
 The constitution should not only have the greatest care 
 and forethought on the part of those drafting and adopt- 
 ing it, but it should, if possible, be based and formulated 
 upon some model which has stood the test of experience. 
 Much the largest part of the litigation that has arisen 
 in the different States in connection with building asso- 
 ciation affairs grows out of the crude, careless and infor- 
 mal manner in which constitutions and by-laws have 
 been framed. Courts have made much complaint about 
 the negligence and carelessness displayed in the wording 
 of these important documents. It is not uncommon, in- 
 deed, to find contradictory provisions in the same consti- 
 tution, relating to important matters. The constitution 
 being the fundamental organic law under which the as- 
 sociation operates, should be adopted by and subject to 
 change only by the membership, and as stated before, it 
 should require a large majority of the membership to 
 adopt or change this organic instrument. 
 
 [134]
 
 HOW TO ORGANIZE. 
 
 By-Laws. 
 
 After the constitution has been adopted, a set of by- 
 laws should be prepared, governing the minute details 
 of the operation of the association, and these also, should 
 be in accordance with the State laws and with the con- 
 stitution adopted, and should follow generally accepted 
 parliamentary usage. Some associations make the mis- 
 take of including alf these detailed rules covering the 
 minute operation and procedure of their associations, 
 in the constitution. The by-laws are not of an organic 
 character, but are simply an expressed agreement among 
 the members as to how the different details of the asso- 
 ciation work should be carried on. These should, there- 
 fore, be kept separate from the constitution, so that they 
 may be changed and modified from time to time, as experi- 
 ence may show would make the operation of the institu- 
 tion more simple, convenient and efficient. Many asso- 
 ciations provide that the board of directors of the asso- 
 ciation shall have authority to amend, repeal or modify 
 the by-laws, or enact additional by-laws, because when 
 such changes become necessary the board of directors can 
 act more quickly and promptly than the entire member- 
 ship. In some States, however, the statute provides that 
 by-laws can be adopted or changed only by the member- 
 ship and, of course, where such statute exists, that plan 
 must be followed. 
 
 The by-laws must conform to the constitution of the 
 association, to its articles of incorporation, and the 
 statutes of the State, and to the general principle of com- 
 mon justice and equity, and must be reasonable in their 
 requirements. No by-laws can be enforced that infringe 
 on the common rights or the rights established by con- 
 tract with any member. In like manner, if a by-law is re- 
 pealed and thereby injustice is done to any member 
 whose rights were protected by the by-law, such action is 
 
 [185]
 
 CHAPTER VIII. 
 
 void. The adoption of new by-laws cannot acid additional 
 burdens or requirements to contracts in existence before 
 their adoption. By-laws must not be adopted, which from 
 their nature, can not be enforced or which are evidently 
 of a "nugatory and oppressive" character, nor can any 
 by-laws be enforced which have the effect of depriving 
 or restricting" any member from his legal rights and 
 remedies.* 
 
 Incorporation. 
 
 The procedure by which corporations are created varies 
 in the different States. In some States they are created 
 by a special act of the Legislature. In others they are 
 created in accordance with the general corporation law, 
 which applies to all forms of corporations alike. In some 
 States they may become incorporated by voluntary asso- 
 ciation ; in others by an order or decree of court, and in 
 some by letters patent from the executive or some other 
 designated State officer. In a number of States, special 
 provision is made for the incorporation of building asso- 
 ciations, treating them as a special class, with special 
 powers. The steps by which a building association is 
 incorporated should follow strictly the statute provisions 
 of the State under which it is organized. After the con- 
 stitution has been adopted, or sometimes even before this 
 has been done, articles of incorporation should be pre- 
 pared and forwarded to the proper authority for accept- 
 ance and record. In many of the States the incorporating 
 authorities furnish blank forms and detailed instructions 
 as to the proper steps to pursue in securing a charter or 
 articles of incorporation. The statutes of most of the 
 States require that a certain amount of stock must be sub- 
 scribed before the association can be incorporated. The 
 drafting and securing of articles of incorporation should 
 
 • In the appendix will be found a specimen for constitution and by-laws. 
 
 [1361
 
 HOW TO ORGANIZE. 
 
 be placed in the hands of competent attorneys. Forms of 
 incorporation papers in common use in Ohio are given in 
 another place.* 
 
 Officers. 
 
 The constitution generally designates the titles of the 
 officers of the association and the time and method of 
 their election. As soon as articles of incorporation have 
 been received and the constitution and by-laws have been 
 adopted, it will be necessary, to complete the permanent 
 organization of the association, by the election of pre- 
 scribed officers, according to the methods laid down in 
 the constitution. The same care must be exercised here 
 as in all other steps incident to the formation of the 
 association. The officers are to occupy very responsible 
 positions, and should be men possessing integrity and 
 popularity. Practically they will have full control of the 
 affairs of the association. Its success depends very largely 
 upon the attention which they give to its business. The 
 success of the institution and the interests of the share- 
 holders will be promoted or injured, according to the 
 degree of faithfulness and ability with which the officers 
 of the association discharge their duties. 
 
 In selecting members to serve on the board of direc- 
 tors, care should be taken that these members should be 
 representative of as many different interests of the com- 
 munity as possible. In some places there are groups of 
 foreigners of different nationalities. Special effort should 
 be made to have a representative leader of each of these 
 nationalities on the board of directors, and effort should 
 be made to induce as many as possible of these foreign res- 
 idents to become members of the building association. 
 if this is done, the association may become a potent factor 
 in Americanizing these foreign groups, in making them 
 
 * See Chapter on "Forms." 
 
 [187]
 
 CHAPTER VIII. 
 
 familiar with American ideals and customs, and inducing 
 them to become home-owners and permanent citizens, and 
 teaching them a higher appreciation of the advantages 
 of American citizenship. In this way the building asso- 
 ciation becomes a practical "melting pot" in which all 
 the different nationalities of the community may be fused 
 and amalgamated into real Americans, eliminating the 
 dross of foreign ideals, hatreds and antipathies, and sub- 
 stituting therefor, the mutual friendship and helpfulness 
 of a united American citizenship. 
 
 Headquarters. 
 
 Before beginning the practical operation, an associa- 
 tion should establish a permanent office or headquarters. 
 Great care should be exercised in selecting the location 
 for conducting the business of an association. It should 
 be centrally located, easy and convenient of access, clean 
 and respectable. While care should be taken not to locate 
 in an office that will be too expensive, on the other hand, 
 the mistake should not be made of selecting a location that 
 is inconvenient and not readily accessible. Many an as- 
 sociation has failed to reach the degree of usefulness to 
 which it might attain, because of making a mistake in 
 locating its office. The headquarters should be fitted up 
 with furniture suitable for the business, but this need not 
 be very costly. There should be a high desk, such as 
 book-keepers commonly use, with a wire or metal grille 
 across the top, containing wickets through which business 
 is to be transacted. There should be desks, tables and 
 seats sufficient for the transaction of the business of 
 the association. Each association should have a safe for 
 the proper protection of its books, papers and such sums 
 of money as may be temporarily in the hands if its offi- 
 cers. The officers being responsible for the safety of 
 the property of the association, are compelled to give 
 
 [138]
 
 HOW TO ORGANIZE. 
 
 bond for its security. They should be provided with a 
 safe place of deposit for everything for which they are 
 held responsible. 
 
 After the headquarters have once been established, it 
 should be understood that this is the regular business 
 office of the association, and all communications, notices, 
 etc., intended for the association should be addressed to 
 this office, where they will receive prompt attention. 
 
 It is quite a common practice to locate the headquarters 
 of a new association in a portion of an office occupied 
 by some other line of business, often in the office occupied 
 by the party elected as secretary, who, at the outset, looks 
 after the business of the building association as a side 
 line to his regular business. By this plan the initial ex- 
 penses of the association in the early days of its develop- 
 ment can be materially lessened. 
 
 It is highly desirable, however, that every reasonable 
 effort should be made by build up the membership of the 
 association as rapidly as possible, and to have it attain a 
 volume which will justify the sole attention of a secre- 
 tary devoting himself exclusively to the business of the 
 association. In most communities where the organization 
 of an association is justifiable, this can be done with 
 proper effort more quickly than might be thought possible. 
 
 Recruiting Members. 
 
 After the organization of the association is completed, 
 its books, blanks and supplies have been procured, and 
 an office established, the next step, and the one vital above 
 all others, is the building up of its membership. This 
 should be made, so far as possible, a community task, 
 not confined wholly to the efforts of the secretary and 
 officers and board of directors, but every business inter- 
 est in the community should be enlisted at the outset in 
 popularizing the association and securing for it the larg- 
 
 [189]
 
 CHAPTER VIII. 
 
 est possible membership. In this work no plan is so 
 effective as personal solicitation. The association should 
 have prepared a neat, attractive leaflet, briefly setting 
 forth the plan on which it is organized, and the advan- 
 tages to be derived from membership. Applications for 
 membership should be printed on cards, to be signed by 
 the applicant. If proper steps have been taken to enlist the 
 interest of business organizations and business men in 
 the enterprise, and if the plan and purposes of the asso- 
 ciation have been so generally explained as to be thor- 
 oughly understood, it is not usually a difficult matter to 
 induce a large number of the business men and members 
 of business organizations of the community, such as 
 Chambers of Commerce, Board of Trade, Rotary Clubs, 
 Trade Unions, Young Men's Christian Associations, and 
 other similar social and business organizations, to take a 
 personal interest and make a personal effort to secure 
 members for the building association. 
 
 Another powerful assistant, whose aid should be 
 secured in promoting the organization, is the local news- 
 papers. These will be found almost without exception, 
 to be interested in any movement of this kind for the 
 general good of the community. See that the reporters 
 and editorial writers of the local papers get a clear con- 
 ception of the benefits building associations confer upon 
 the community. Their comment on the subject and the 
 reports of the progress of the work from day to day will 
 be found extremely helpful. 
 
 Co-operation with Banks Desired. 
 
 Another powerful interest, which should be enlisted in 
 this work, is that of the local banks. Some men entertain 
 the idea that building associations and commercial banks 
 are rivals in business and competitors in trade; that the 
 success of a building association curtails the growth and 
 
 [140]
 
 HOW TO ORGANIZE. 
 
 restricts the business of the commercial bank in that 
 community. Experience shows that this is not the case. 
 Commercial banks are most prosperous when business 
 in the community is brisk and lively; when money is 
 flowing rapidly and freely through the channels of trade. 
 A building association has no treasure vault of its own 
 where it locks up funds, leaving them idle and out of the 
 reach of the business interests of the community ; but all 
 the funds which a building association receives is at once 
 deposited in some bank and goes to swell the resources 
 of the bank in which it is deposited. Much the larger 
 part of the money deposited in building associations 
 is received from members who never had a bank account, 
 and which would never reach the bank's vaults, except 
 from the hands of the building association. When such 
 an association pays out money, it is not taken out of 
 the community, and shipped to some distant point, but 
 is loaned out to build homes and create additional wealth 
 in the local community. It is at once paid out to lumber- 
 men, the painter, the hardware man, the plasterer, the 
 plumber, the brick-mason, and in all the various lines of 
 labor and merchandising which are numbered among the 
 most highly prized customers of the commercial bank, to 
 whose vaults this money quickly finds its way again. 
 There is no more potent, effective factor for stimulating 
 business activity. The work of such an institution 
 creates a business condition in which commercial banks 
 are most thriving and prosperous. 
 
 It is easily understood that a commercial bank 
 might not favor the organization and operation 
 of an institution in its community if the funds col- 
 lected are sent out of the community and invested 
 in some distant place, thus reducing the volume of money 
 circulating in the neighborhood; but a building associa- 
 tion does none of these things. It mobilizes the idle funds 
 
 [MM
 
 CHAPTER VIII. 
 
 of a community, deposits them in bulk in the local bank, 
 and disburses them through the channels of local trade, 
 stimulating local business and enhancing local prosperity. 
 
 These facts are well understood by the big men in the 
 banking business, and the banker of broad views is almost 
 invariably found promoting and encouraging building 
 associations. In the larger cities, where the employes 
 in the large banks are numbered by the hundreds, an in- 
 creasing number of them are urging and encouraging 
 their employes to organize a building association among 
 themselves, and associations of this kind are found in 
 great numbers. 
 
 Another very common practice is to suggest to each 
 new member who joins the association that he take a 
 supply of these leaflets and membership cards to dis- 
 tribute among his friends, urging them also to join the 
 association. An attractive sign should be displayed at 
 the office, advertising the association. A neatly-lettered 
 sign upon the window of the association office should 
 not be overlooked. Many an association has received new 
 members through the display of such an attractive sign. 
 Newspaper advertising, to a reasonable extent, is valuable. 
 Directors should not be over-economical in this connec- 
 tion. Money judiciously expended in advertising an asso- 
 ciation will bring desirable returns, but it should always 
 be remembered that no form of publicity or advertising 
 is so forcible and effective as personal solicitation. 
 
 Whenever it can possibly be done, arrangement should 
 be made to have the office of the association open on all 
 business days during business hours. Circumstances 
 sometimes make this arrangement inconvenient or im- 
 possible. In such cases it is usual to select some day in 
 the week or some evening in the week as the regular time 
 for receiving payments. The regular meetings of the board 
 of directors for the transaction of their business should 
 
 1142]
 
 HOW TO ORGANIZE. 
 
 be held at least weekly. In some communities the prac- 
 tice still prevails of having the entire board of directors 
 attend the meetings of the association and supervise and 
 assist the receipt of money, and making of entries of the 
 same on the pass-books, books and records of the asso- 
 ciation. This practice, however, is changing. In prac- 
 tice it has been found that a single official can really 
 handle the business of the association more rapidly and 
 accurately than can be done when the system requires 
 a number of officers to handle each transaction. How- 
 ever, these minor details can be easily adjusted by each 
 association and handled in such way as may be found 
 most convenient and efficient. 
 
 New Regulations. 
 
 The suggestions of this chapter are necessarily of a 
 general character. In each State they must be carried out 
 according to the local State statutes. Many laws are 
 being enacted that require occasional changes in the de- 
 tails of the organization and the practical work of asso- 
 ciations from time to time. 
 
 [148]
 
 CHAPTER IX. 
 
 Stock and Stockholders. 
 
 The stock of a corporation is defined by Webster as 
 "The capital of an incorporated company, in transfer- 
 able shares of a specified amount." Attention has been 
 called in a previous chapter of this book to an import- 
 ant distinction between the capital stock of a building 
 association and stock in an ordinary corporation. The 
 stock in an ordinary corporation is a fixed, permanent, 
 non-withdrawable investment. As stated in the definition 
 above quoted, ordinary corporation stock is transferable, 
 but is not subject to withdrawal. The ordinary corpora- 
 tion is not permitted to traffic in its own stock. The 
 holder cannot present ordinary corporation stock to the 
 office of the company and demand a return of his money, 
 while stock in a building association may be paid off by 
 the association under the rules and by-laws which it has 
 adopted for its government. 
 
 At the organization of a building association a certain 
 amount of capital is fixed and specified in its charter or 
 articles of incorporation, an amount that it is the aim 
 of the association to accumulate. This common fund 
 or authorized capital is divided into equal shares. The 
 number and value of shares into which this stock is 
 divided is fixed by the general statute and the charter 
 of the association. A person subscribing for or other- 
 wise becoming the owner of one or more of these shares 
 is known as a shareholder, or stockholder. This sub- 
 scription specifies the manner in which he agrees to 
 pay into the association the sum represented by the stock 
 
 [1441
 
 STOCK AND STOCKHOLDERS. 
 
 which he owns, and is sometimes to be paid in regular, 
 periodic installmens; sometimes in irregular payments, 
 as he may find convenient; and sometimes to be paid in 
 full in a lump sum. 
 
 In some States the statute limits the number of shares 
 that may be held by any one person ; in other States the 
 State law limits the amount of stock which any one 
 person may hold; in still other cases, no limit is fixed 
 to the number of shares that may be held, the provision 
 being that only a limited number of shares shall be voted 
 by the holder. The minimum amount of stock to be taken, 
 that is to say, the number of shares for which subscrip- 
 tions must be made before an association can begin 
 operation is generally determined by the State Laws 
 and the rules of the association. 
 
 Increase of Stock. 
 
 The maximum capital stock of an association is fixed 
 in the articles of incorporation and by the constitution. 
 But in most States it is competent for the association, 
 by virtue of authority given it for that purpose in the 
 charter, to increase the stock within the limits estab- 
 lished by the statute, and in the manner required to 
 legalize such change. This increase of stock should be 
 made only when all other stock is taken by bona fide sub- 
 scription, since its issue involves additional expense. An 
 increase of stock must always be made in strict accord- 
 ance with the legal provisions, and should therefore, be 
 undertaken only under competent legal advice. There 
 can be no uniform rule laid down concerning increase of 
 stock. Such increase depends upon the nature of the 
 association, the rules it has adopted, and the provisions 
 of the statutes under which it operates. In terminating 
 associations, for instance, there can be no arrangement 
 for increase of stock as the term is generally understood. 
 
 [146]
 
 CHAPTER IX. 
 
 Stock Is Property. 
 
 The ownership of a share or shares of stock in a build- 
 ing association does not give the holder a proprietary- 
 right in the property of the association. It simply gives 
 him the right to share in the surplus profits obtained from 
 the use and investment of the revenues of the association. 
 The funds of the association may, for instance, be invested 
 largely in real estate. The shares are nevertheless 
 merely personal property and do not entitle the holder to 
 any individual proprietorship in the real estate belonging 
 to the association. 
 
 Shares Transferable. 
 
 Shares of stock in a building association may, like other 
 personal property, be transferred, from one owner to 
 another. The transfer is made "by assignment and de- 
 livery." The method of transfer should always be speci- 
 fied in the constitution or by laws of an association. Of 
 course no transfer of stock can be made when such 
 transfer trespasses in any way upon the corporate rights 
 of the association. A member who is in arrears cannot 
 transfer his stock until he makes settlement to date. On 
 the other hand the association cannot resist such transfer 
 where the holder of the stock has complied with all the 
 necessary conditions. Usually a fee, called the transfer 
 fee, is charged to the person to whom a transfer is made. 
 This is an equivalent to the admission fee charged to new 
 members. 
 
 Stock Payments or Dues. 
 
 A member of an association is the holder of some part 
 of its capital stock. The par or paid-up value of a 
 share is fixed in the constitution at such amount as 
 may be decided upon, generally from $100 to $500. This 
 
 [146]
 
 STOCK AND STOCKHOLDERS. 
 
 par value of a share is its expected value. Its actual 
 value is a very different thing, especially during the first 
 years of a shareholders' membership. A subscriber for 
 a share of stock of the par value of $500 has simply 
 made an agreement to pay into the association a regular 
 weekly or monthly installment of a certain amount, 
 which periodical payments are to be continued until the 
 accumulated payments, together with the accrued divi- 
 dends thereon, shall amount to the sum stipulated as 
 the full value of the share. These periodical install- 
 ments are called stock-payments, or dues. It is seen, 
 therefore, that the actual value of a share at any time is 
 determined solely by the amount paid in and the profits 
 accumulated up to that date and not at all by its face 
 value. The regular payment of these periodical contri- 
 butions by members is the prime dependence of the 
 association for its success as an enterprise. The constitu- 
 tion and by-laws of every association, therefore, must 
 prescribe carefully the time and manner of making these 
 payments. The fixing of penalties for default of payment 
 may also be necessary. This subject is discussed further 
 in its appropriate place in another chapter.* 
 
 PaiJ-Ujt Stock. 
 
 In some associations provision is made for members to 
 pay in the full maturity or par value of their shares at 
 any time, and a certificate of paid-up stock is then issued. 
 The owners thereof are entitled to receive in cash the 
 amount of all dividends declared thereon, subject to such 
 conditions or limitations as the board of directors of each 
 particular association may have adopted. In some 
 instances these shares participate as fully in the profits as 
 the regular installment shares; but in other cases (inly a 
 fixed rate of interest is allowed, while the holders of the 
 
 • See Chapters VII and XII. 
 
 [1171
 
 CHAPTER IX. 
 
 shares assign to the association all rights to profits 
 above that amount. In some cases the holders of 
 regular installment shares that have arrived at maturity 
 value, do not desire to draw their money, but prefer to 
 leave it with the association as an investment. In associa- 
 tions where this practice is followed, the holders of 
 matured shares receive certificates for the same, which 
 are usually governed by the same conditions as are 
 attached to paid-up shares. 
 
 It was formerly the custom (still followed to a great 
 extent) to pay off shares as they matured in the regular 
 course of the association. In a terminating association 
 this of course must be done. In the serial associations, 
 where all the stock of each series matures at one time, 
 it is necessary that there be a large accumulation of funds 
 toward the end of the series to meet the stock payments 
 which will then become due. The disadvantages arising 
 from such a necessity are readily understood. In the 
 permanent or perpetual associations, where shares are 
 maturing in small numbers from time to time, this large 
 accumulation of funds to pay them off is not a matter 
 of so much consequence. The constant addition of new 
 members supplies the necesary funds to meet the with- 
 drawal of the maturing shares. 
 
 It is always a question worth considering as to whether 
 the funds should be withdrawn from the association when 
 shares mature. On the one hand the association may be 
 able to use the money to good advantage and may be 
 crippled in its operations by its withdrawal. This is 
 especially true in the case of a serial association, for it is 
 necessary that the association hoard its money quite a 
 while in advance and then to part with the large amount 
 thus saved up. Of course, this must limit its operations. 
 On the other hand, unless the owner of the stock has some 
 specific use for it, as in the purchase of property or pay- 
 
 [1481
 
 STOCK AND STOCKHOLDERS. 
 
 ing off a mortgage, or something of that nature, it may 
 be better for him and he may prefer to leave it in- 
 vested in the association than to draw it out. The pos- 
 session of so much money immediately in hand brings 
 with it the temptation to spend it needlessly, or to risk 
 it in some speculative enterprise. In the case of a serial 
 association the placing of so much ready capital in the 
 hands of so many persons whose stock has matured may 
 result in the needless expenditure of a large part of the 
 money which might have been reserved for better uses. 
 
 New features have recently been introduced in some 
 associations in connection with the issuance of paid- 
 up stock certificates. Under the old rule the certificates 
 are redeemable only by special action of the board of 
 directors. The change consists in the attachment of a 
 series of coupons to the certificates. This plan is possible 
 in associations which have an assured prospect of having 
 money to sell or loan for some time ahead. The coupons 
 specify the rate of interest. A copy of these coupons will 
 be found in the chapter on Forms. The use of the cou- 
 pons saves the secretary the trouble of issuing special 
 vouchers for dividends on paid-up stock. In some cases 
 these coupons are accepted as cash for the amount of divi- 
 dend. It is evident that it is only under certain circum- 
 stances that these features can be adopted and followed. 
 The rate of guaranteed dividend must be so low as to 
 justify the directors in adopting the plan, and there must 
 be some positive assurance that it can be continued. 
 
 The rules of an association in reference to paid-up 
 stock should be most carefully drawn so as to cover 
 all contingencies or emergencies. 
 
 Any member whose stock has matured should consider 
 very carefully whether or not it will be best for him 
 to draw out his money or take a paid-up stock certificate 
 and leave the money in the association as an investment. 
 
 [149] 
 
 n
 
 CHAPTER IX. 
 
 Other Facts Concerning Stock. 
 
 Various other questions relating to stock have been 
 determined by general usage or passed upon by the 
 courts. Associations have the right of lien upon shares, 
 which extends to all liabilities of shareholders, for dues, 
 fines and other lawful charges. An association, in ex- 
 treme cases, may collect by suit the dues of delinquent 
 members who are endeavoring to work injury to the asso- 
 ciation. In cases where the shareholder has borrowed 
 money from the association his regular dues are not to 
 be credited upon his loan but are to be applied upon his 
 stock account just as the dues of any other member. He 
 may, however, at any time have its accumulated stock- 
 payments applied upon his debt; or, if the association 
 holds a lien upon his shares for security of his indebted- 
 ness, the association may, in case of his default of obli- 
 gations, apply his accumulated stock-payments to can- 
 cel his indebtedness as far as they will reach. In such 
 cases defaulting members have the benefit only of the 
 aggregate of their paid-up subscriptions. But if a mem- 
 ber voluntarily repays the money thus applied, there is 
 added the declared portion of the profits of the associa- 
 tion up to the time of the repayment, provided he has not 
 assigned his shares to a third party. 
 
 An assignee or executor of a member may exercise 
 the same rights in the control of stock as the share- 
 holder himself. Stock may be assigned to an asso- 
 ciation by a borrowing member as collateral security 
 for his loan, and it is the usual practice of asso- 
 ciations to require this assignment. Where the stock 
 is assigned to an association as collateral security and 
 real estate is at the same time mortgaged, the liabil- 
 ity falls first upon the stock. If this fails to extin- 
 guish the indebtedness then the real estate or other col- 
 lateral security becomes liable. 
 
 [150]
 
 STOCK AND STOCKHOLDERS. 
 
 In order that no question may arise in reference to any 
 of these miscellaneous matters they should all be covered 
 as nearly as possible by explicit rules in the constitution 
 and by-laws of an association. The practice in connec- 
 tion with many features of work is not at all uniform 
 in associations. Hence the necessity that each associa- 
 tion carefully define in its rules the course which it will 
 adopt in connection with all matters concerning which 
 differences of opinion might arise in the absence of rules 
 specially governing them. 
 
 Certificates of Deposit. 
 
 In a number of the States where special deposits are 
 received from those who do not care to become members 
 of the association and who do not care to assume any 
 liability as to membership, persons may deposit the money 
 with the association along the same lines as it is deposited 
 in regular savings banks, trust companies and similar 
 institutions. The board of directors usually fix a certain 
 rate of interest to be paid thereon, payable semi-annually 
 or annually, as the case may be, and certain conditions 
 relating to these deposits. 
 
 [151]
 
 CHAPTER X. 
 
 Definition of Stock and Stockholders. 
 
 Difference Defined. 
 
 The difference between a stockholder in a building, 
 loan and savings association and that in an ordinary cor- 
 poration, for usual business purposes, lies in the fact 
 that in the latter the member or stockholder buys his 
 stock and pays for it at once, and usually is not called 
 upon for any further payment. His profits, or the re- 
 sults of his investments in such stock, are derived 
 through dividends, the value of the shares depending 
 upon the successful operation of the business. They often 
 go above par when the corporation is doing a profitable 
 business, and the value often drops far below par when 
 disaster comes. 
 
 In the building, loan and savings association, on the 
 contrary, the stockholder or member pays a stipulated 
 minimum sum, say $1.00, when he takes his member- 
 ship and buys a share of stock. He then continues to 
 pay a small sum each week or month until the aggregate 
 of sums paid, augmented by the profits, amounts to the 
 maturing value of the stock, usually from one to five 
 hundred dollars. At this time the stockholder is en- 
 titled to the full maturing value of the share, and he 
 surrenders the same. Or he may receive a certificate of 
 paid-up stock, if he chooses to leave the money with 
 the association. 
 
 It is clearly seen, then, that the capital of a building, 
 loan and savings association consists of the combined 
 
 [152]
 
 DEFINITION OF STOCK AND STOCKHOLDERS. 
 
 savings of its members, paid to the association upon 
 shares of stock, increased by the interest and premium 
 which the association has received on loans made by it 
 from the savings of its members thus paid to the asso- 
 ciation, and from all other sources of income. The 
 amount of capital of the association, therefore, increases 
 from month to month and year to year. 
 
 Serial Associations. 
 
 In the serial associations, shares are usually issued in 
 series. When the second series is issued, the issue of the 
 stock of the prior series ceases. Profits are distributed 
 and losses apportioned before a new series is issued. 
 The term during which a series is opened for subscrip- 
 tion differs, but it usually extends for three or six 
 months, and sometimes a year. Prior to the maturing of 
 a share, it has two values. One is called the holding 
 or book value, and the other the withdrawal value. The 
 former is ascertained by adding all the dues that have 
 been paid to the profits that have accrued : that is to say, 
 the holding value is the actual value of a share at any 
 particular time. 
 
 llie withdrawal value on the contrary is that amount 
 which the association is willing to pay to a shareholder 
 who desires to sever his connection with the association 
 prior to the date at which his share will mature. Every 
 association has full regulations prescribed in its 
 constitution and by-laws on all such matters, as well 
 as on matters pertaining to expenses, notice of with- 
 drawal and all the methods and processes necessary for 
 the safe conduct of the business. 
 
 The purchase of a share binds the shareholder to the 
 necessity of keeping up his clues and thus secures to him 
 all the benefits of his savings. This accomplishes the first 
 
 [168]
 
 CHAPTER X. 
 
 feature of the motive of a building, loan and savings 
 association. The second is that of enabling a person to 
 borrow money for building or other purposes. 
 
 Borrowing Members. 
 
 Ordinarily a shareholder who desires to build a house 
 and has secured a lot for the purpose makes application 
 to borrow money from the association of which he is a 
 member. Suppose a person who has secured a lot wishes 
 to borrow $1,000 for the erection of a home. He must 
 be the holder of five shares in the association, each share 
 having as its maturing value, say $200.00. His five 
 shares, therefore, when matured, will be worth $1,000, 
 the amount of money which he wishes to borrow. The 
 process by which he can borrow this money differs from 
 that of borrowing money from savings, trust or others 
 financial institutions. 
 
 In a building, loan and savings association the money 
 was formerly put up at auction, usually in open meet- 
 ing on the night or at the time of the payment of the 
 dues. Those who desired to borrow, bid a premium 
 above the regular rate of interest charged, and the one 
 bidding the highest premium was awarded the loan. 
 There has been a decided change in this direction. Today 
 the matter of premiums on loans is being eliminated 
 very rapidly, and the association aims to furnish its 
 borrowers money at as low a rate of interest as possible. 
 The persons desiring to make a loan now fill out an 
 application for a loan which is filed in numerical order, 
 and then taken up at the meeting of the board of direc- 
 tors. The person who wishes to build his home, there- 
 fore, and desires to borrow $1,000, must have subscribed 
 for five shares of stock of $200.00 each in the association, 
 and after the directors have passed upon the application, 
 the $1,000 will be loaned to him, if acted upon favor- 
 
 [154]
 
 DEFINITION OF STOCK AND STOCKHOLDERS. 
 
 ably. A borrower need not be a member for any length 
 of time before he applies for a loan. The making of the 
 loan and subscribing for the shares may all be done at 
 the same time as parts of the same transaction. To 
 secure this $1,000 the person gives the association a 
 mortgage on the property, and pledges his five shares 
 of stock. To cancel this debt he is constantly paying his 
 monthly, semi-monthly or weekly dues, until such time 
 as the payment of dues, plus the accumulation of profits, 
 matures the shares at $200 each. At this time, then, 
 the shares are surrendered and the debt on the property 
 canceled. The question as to whether this method of 
 obtaining money for the building of homes or for other 
 purposes, is more or less economical from that of obtain- 
 ing it from the ordinary savings banks, trust companies or 
 other financial institutions, has been discussed at another 
 place. 
 
 Safety of These Associations. 
 
 It will be seen at once that the investment in a building 
 loan and savings association is as nearly absolutely safe 
 as it can be, for the paid-in dues and the accumulated 
 profits, which give the active capital of the association, 
 are loaned as fast as they accumulate. They are usually 
 loaned immediately upon real estate or upon the stock of 
 /the association itself. The opportunities for embezzling 
 or for the shrinking of securities are reduced to the 
 minimum, and almost absolute safety of the invest- 
 ment is secured. In referring to the enormous amount of 
 money handled by the building, loan and savings asso- 
 ciations of the United States, the Hon. Carroll D. 
 Wright, Commissioner of Labor, in his most excellent 
 report, published in 1893, from which extracts are given, 
 states the following: 
 
 [165]
 
 CHAPTER X. 
 
 "A business represented by an annual income of, at that time 
 stated $450,667,594, conducted quietly with little or no advertising 
 and, as stated, without the experienced banker in charge, shows that 
 the common people in their own ways are quite competent to take 
 care of their savings, especially when it is known that but 35 of the 
 associations then in existence, showed a net loss at the end of their 
 last fiscal year, and that this loss amounted to only $23,332.20. Of 
 course associations disband for the want of business or from some 
 other cause, but when they disband, loss does not occur, because the 
 whole business of the association consists of its loans, and these 
 loans are to its own shareholders, as a rule, who hold the securities 
 in their associated forms. A disbanded association, therefore, 
 simply returns to its own members their own property." 
 
 II5HI
 
 CHAPTER XI. 
 
 Insurance. 
 
 Insurance Features. 
 
 The matter of various forms of insurance that can be 
 successfully introduced in connection with this work has 
 been given great consideration by the leaders of the move- 
 ment. When we consider the line of credit extended to 
 the wage-earner, it is no more than proper that these 
 credits extended should be protected. To meet this 
 demand various forms of insurance have been devised. 
 
 Health, Accident and Disability Insurance. 
 
 The protection afforded not only to the member but 
 to the association is of importance. Prominent insurance 
 companies have now given this matter careful considera- 
 tion, and have submitted propositions covering this idea. 
 In case a member meets with an accident, or becomes sick, 
 or disabled, these companies will pay him a regular 
 indemnity as provided in his policy. In many cases the 
 homes of borrowers would have been saved to their fam- 
 ilies had these precautions been taken. 
 
 The payments covering this insurance are made at regu- 
 lar stated intervals, to the secretary or some other person 
 designated for this purpose, so that the members are not 
 put to any inconvenience in the matter. We are of the 
 opinion that while this may be a difficult practice for 
 associations to adopt in a general way, still this idea could 
 be inaugurated on all new business that is written. In 
 fact, when an application for a loan is made to the asso- 
 ciation, it is just as proper to ask the applying member 
 if he has made these provisions as it is to ask if he has a 
 
 [167]
 
 CHAPTER XI. 
 
 fire insurance on his house. Statistics have proven that 
 the loss of homes through fire is but a small percentage 
 as compared with the number of members who become 
 sick or meet with accidents. • 
 
 Tornado Insurance. 
 
 This subject should be carefully taken into considera- 
 tion by associations making loans on property, as nearly 
 every month in the year some damage is caused to 
 some member through the force of windstorms, cyclones, 
 tornadoes, etc. It, therefore, becomes necessary for 
 those having charge of the association's interests to see 
 that each borrower has his property protected by a proper 
 tornado policy in some responsible company. 
 
 Life Insurance. 
 
 For the purpose of investment and as a security for 
 loans, some of the associations issue in connection there- 
 with, so-called life, protected or endowment stock. This 
 stock is issued for the benefit of such members as may 
 desire to protect their investments from the consequences 
 of death before the maturity of their stock, and especially 
 for the benefit of borrowing members. Arrangements 
 are made by such associations with a responsible life 
 insurance company in which the latter guarantees the 
 payment of life insurance in case of death for the full face 
 value of endowment stock, held by the member at the 
 time of his death. Members who wish to avail them- 
 selves of such advantages must submit to the usual med- 
 ical examination. 
 
 In addition to their regular dues, an insurance premium 
 must be paid, graduated according to age. At the 
 1909 convention of the United States League, Dr. Pra- 
 nard, of Paris, France, had the following interesting 
 suggestion to make along these lines : 
 
 1158]
 
 INSURANCE. 
 
 "I speak of insurance in building associations. I expressed, in the 
 conclusion of my book on 'American Building Associations,' the hope 
 of seeing American people adhere to the plan of life insurance policy 
 as an additional security. All the ideas expressed by Mr. Brackett I 
 support strongly, and am pleased to state that they are emphasized 
 upon by Belgian and French specialists. Nothing more can be said 
 after Mr. Brackett's remarks about the advantages of the plan, both 
 for the society and for the borrower himself and his family. But 
 I should like to tell, in a few words, the difficulties it encounters, and 
 how, according to the Belgian practice, they are met with. 
 
 The system prevailing amongst us is that of the so-called 'reduc- 
 ing term policy,' under which 'the amount of the insurance is reduced 
 each year, as the amount required for a discharge of the mortgage 
 of the borrower is reduced by his monthly payments, his premiums' 
 being each year correspondingly reduced.' 
 
 From this excellent definition of the plan it follows that the 
 premium of the first year, destined to face the most important risk, 
 is the highest, and the premiums of the subsequent years decrease 
 with the risk till the mortgage is paid off. 
 
 There are three ways of paying premiums: 1st, yearly, and then 
 the amount of the premiums decreases with the risk; 2d, in gross, 
 at first, for the whole time of the contract; 3d, by yearly equal 
 installments whose amount is determined by the premium of the first 
 year, and which, consequently, are paid during a part of the insurance 
 period only. 
 
 The three systems present the same inconveniences ; they neces- 
 sitate, at the beginning, the greatest sacrifices from the borrower. 
 The desirable solution would be the averaging of the premiums on 
 the basis of the premium paid in the middle of the period ; but such 
 a solution is not possible for the insurance company, for the com- 
 pany would receive, during the first half of the contract, less than the 
 price of the risk ; there would be what is called a 'negative reserve.' 
 
 The difficulty is happily solved by the interference of the build- 
 ing society. The society advances the amount of the premium to 
 the borrowers and incorporates it in the loan, combining the annuities 
 so that they are equal ; the portion representing the paying off is, 
 during the first years, less important, while the portion of the insur- 
 ance is higher ; but the first one goes on increasing as the second 
 one is diminishing. With this interference all interests arc safe- 
 guarded ; the insurance company receives the premium as is required 
 for its security, and the borrower pays in, quarterly or monthly, the 
 same averaged amount as long as his mortgage is not discharged." 
 
 [169]
 
 CHAPTER XII. 
 
 Duties and Rights of Members. 
 
 I s ! ember shift. 
 
 Membership in a building association is acquired by 
 becoming a holder of its stock. All persons or corpora- 
 tions legally capable of making contracts may become 
 members of an association. In some States, by special 
 legislation, membership is permitted to minors and mar- 
 ried women, who under the general law in those States 
 would be debarred. As a rule one association, however, 
 may not become a member in another. 
 
 There are two classes of members — savers and bor- 
 rowers. Generally the membership is sought for the 
 purpose of making a safe deposit of the small surplus 
 earnings of persons, who otherwise would have to keep 
 this surplus at home where it is unsafe and liable to be 
 expended. These are called saving members. Persons 
 may likewise become members for the purpose of ob- 
 taining a loan, and these are called borrozving members. 
 
 Subscribers for stock are sometimes required to pay 
 a special admission fee and also purchase a pass-book. 
 Dues on stock begin from the time of subscription. In 
 associations as now conducted on the permanent plan, 
 payment of back dues is not required, all stock dating 
 from day of actual issue. But dues may be paid in 
 advance, in part or in full. When paid in advance by 
 the partial method in some associations they draw divi- 
 dends. When paid in advance in full, certificates of paid- 
 up stock should be issued. 
 
 UGO]
 
 DUTIES AND RIGHTS OF MEMBERS. 
 
 A pass-book is prima facie, and generally sufficient 
 evidence of membership. An association cannot deny 
 membership to any person from whom it continues to 
 accept dues. A person who, as a member, receives the 
 benefits arising from membership, is estopped from 
 denying his membership. Membership is terminated by 
 death, by a transfer of shares, by forfeiture, by volun- 
 tary withdrawal, by the dissolution of the association, 
 or by the expiration of the series in which the member's 
 stock stands. Where a member becomes a borrower, his 
 membership may cease by special contract with the asso- 
 ciation. 
 
 Duties of Members. 
 
 A person who becomes a subscriber for the stock of a 
 building association thereby enters into a contract with 
 the association, all the terms of which he is legally bound 
 to fulfill. Moreover, by subscribing to the constitution 
 and by-laws, or, indeed, even if this formality be omitted, 
 he, as a shareholder, must give his obedience to the rules 
 of the association. A member must pay his dues, unless 
 he becomes unable to do so, when he should give proper 
 notice of withdrawal. A member should give the asso- 
 ciation his personal services to a reasonable extent by 
 attendance upon the meetings and by the faithful dis- 
 charge of the functions of such offices as he may be 
 elected or appointed to fill. Each member of an asso- 
 ciation must bear his proportionate share of its expenses. 
 In case of loss he must also share in this. A member of 
 an association cannot withdraw in order to evade his 
 liability for expenses and losses. His liability to con- 
 tribute to the expenses ceases only with his membership. 
 
 Fines and Forfeitures. 
 
 There has been a great change of ideas relative to the 
 fines and forfeitures to be imposed on the members of 
 
 [161]
 
 CHAPTER XII. 
 
 the associations. In fact, this item is gradually disappear- 
 ing from the reports of well regulated associations. It 
 has been customary to insert into the constitution and by- 
 laws provisions relative to the imposition of these fines. 
 Directors of associations generally possess discretionary 
 powers in regard to the remission of fines. It is thought 
 best to have these, so that if a borrowing member be- 
 comes delinquent, these fines may be imposed so as to 
 provide for the associations a revenue in case they are 
 compelled to foreclose. The delinquent member is thus 
 made to share the expense occasioned by legal action. 
 
 To the fair-minded director a fine often suggests some- 
 thing of injustice or inequity. While it represents a 
 source of profit to the association, it may add to the bur- 
 den of an already overburdened member. The delin- 
 quency may arise, indeed, through some misfortune 
 which will appeal strongly to the sympathies of the 
 officers and other members. At such a time of adversity 
 the addition of these fines serves to build up a barrier be- 
 tween the member of the association and the organization 
 itself, and to defeat the delinquent's only hope of es- 
 cape. 
 
 On this account it has been deemed advisable to discard 
 the whole system of fines. All will agree that the im- 
 position of extortionate fines is an evil. Directors should 
 be given discretion in regard to the remission of fines, 
 and should inquire carefully into the circumstances of 
 delinquents and always remit a fine when it seems to 
 them just and right so to do. If the member is a bor- 
 rower and has become a delinquent through misfortune 
 or causes for which he is not responsible, his case should 
 be inquired into carefully, and he should be aided in any 
 way possible by the association. In such cases the direc- 
 tors frequently permit borrowers to pay interest only 
 for a specified time. This is only a part of the spirit of 
 
 [162]
 
 DUTIES AND RIGHTS OF MEMBERS. 
 
 co-operation and mutual interest, upon which such socie- 
 ties are founded. Such care and leniency on the part of 
 directors may go far towards popularizing an association 
 and thus add to its prosperity and usefulness. 
 
 Of course, what is said above does not apply to cases 
 of mere negligence or carelessness. Such a shareholder 
 should be stirred up to a sense of his duty by a prompt 
 fine. But delinquencies on account of carelessness are 
 not likely to be continued for any great period of time, 
 as a month or three months. When a shareholder con- 
 tinues delinquent for such a period there should be an 
 inquiry into the circumstances and a just disposition of 
 the matter made. 
 
 In drafting the rules of an association too much care 
 cannot be exercised in order that they may be not only 
 legal but equitable. The constitution and by-laws should 
 be so explicit and unequivocal that every member may 
 understand the obligations he takes upon himself and the 
 penalties to which he lays himself liable when he becomes 
 a stockholder. 
 
 Directors should also have the right to demand and 
 enforce the resignation of a member for any gross 
 impropriety of conduct which would make his further 
 connection with the association unwise or undesirable. 
 
 Rights of Members. 
 
 Members may occupy three relations toward an asso- 
 ciation. Certain rights are vested in them as members 
 of the corporation, or corporators. When a member is 
 only an investor in the association, he is possessed of 
 certain special rights; and in like manner if a member 
 becomes a borrower he secures certain other special 
 rights. 
 
 [188]
 
 CHAPTER XII. 
 
 Corporate Rights of Members. 
 
 Every stockholder has the right to attend all the cor- 
 porate meetings of the association, whether they be the 
 regular annual or semi-annual meetings, or special meet- 
 ings called for some particular purpose. He has the right 
 to be duly notified of the time and place of all meetings 
 and to take part in their proceedings. 
 
 In some States and in some associations a member 
 has but one vote whatever number of shares he may 
 hold. In other associations he has one vote for each 
 share he holds. In still others, in the election of officers 
 he casts one vote for each share he holds, while on mat- 
 ters of general business he has but one vote. In Ohio 
 the law now provides that a member can hold as many 
 shares as he desires, but may not vote more than twenty. 
 These qualifications should be clearly and definitely 
 stated in the constitution. The constitution should also 
 declare plainly for or against the right of a member to 
 be represented and to vote by proxy, and if the right 
 is allowed, should define the mode in which it shall 
 be exercised. In some states this matter is determined 
 by the statutes. 
 
 A member has the right to have access to the books 
 of the association at such times and to such extent as 
 will not interfere with the business of the association 
 and the work of its officers. Owing to the inconvenience, 
 confusion and annoyance which may arise from a large 
 number of members having frequent access to the books 
 in their efforts to examine them intelligently, it is well 
 for members to forego this privilege as far as possible, 
 and to refer all matters requiring examination to the 
 auditing committee, or other authority empowered to 
 examine into and to report upon the business of the as- 
 sociation. 
 
 11641
 
 DUTIES AND RIGHTS OF MEMBERS. 
 
 A member has the right to hold office if elected or ap- 
 pointed in the prescribed form. A member may bring 
 suit against an association upon the same conditions 
 upon which a person not a member could bring suit. 
 A member may, in behalf of himself and his fellow- 
 members, institute legal proceedings against unfaithful 
 officers to compel lawful action on their part or to re- 
 strain them from unlawful action. This right should, 
 of course, never be used except when such action is 
 based upon the most convincing evidence. Under cer- 
 tain circumstances a member may bring action in court 
 to have an association dissolved. At the termination 
 of an association each member has the right to his 
 equitable share of the profits. 
 
 Rights as Investors. 
 
 A person who invests his money in the stock of a 
 building association has a right to share in the profits 
 of the undertaking in such way as is provided by the 
 statutes and the rules under which it operates. He also 
 has the right to withdraw his funds and membership 
 at such times as suit his convenience. But the chief and 
 most important privilege of a shareholder or investor 
 is that of receiving loans or advances from the associa- 
 tion. It is this privilege which makes membership in an 
 association attractive and popular among that class of 
 persons for whose benefit building associations are or- 
 ganized and fostered by appropriate legislation. 
 
 Dividends. 
 
 The statutes, as a rule, authorize associations to de- 
 clare and pay dividends out of the profits of their busi- 
 ness, annually or otherwise. These profits are calculated 
 at the termination of each fiscal year or half-year, and in 
 some associations quarterly. The profits, when declared, 
 
 [165] 
 
 13
 
 CHAPTER XII. 
 
 are distributed among the members pro rata, according to 
 the amount standing to the credit of each member at 
 the beginning of the term, and to the amount each has 
 paid in during the term, and to the length of time it has 
 been in. The rules and practice in reference to divi- 
 dends vary in different associations. On this account it 
 is not possible to lay down general rules governing this 
 matter. 
 
 The rules of every association should be explicit in 
 reference to the matter of dividends, for profit-sharing 
 is one of the main features which recommend associa- 
 tions to popular favor. This rule must be so drawn 
 that each member shall share equitably in the profits. In 
 the organization of a new association the plan upon 
 which it shall operate in reference to dividends should 
 be carefully considered, for this may have much to do 
 with its prosperity and success. 
 
 Right of Withdrawal. 
 
 A member who is simply an investor and not a bor- 
 rower has the right to withdraw from an association 
 without being subject to a forfeiture of the money al- 
 ready paid in. For the protection of the business of the 
 association this right must be exercised under proper 
 restrictions. The rules of every association should pre- 
 scribe in detail the method of withdrawal. Usually, a 
 member is required to give formal notice in writing to 
 the secretary of his intention to withdraw. This notice 
 should be entered in a book kept for this purpose, and 
 the attention of the directors should immediately be called 
 to it. In Massachusetts, associations are compelled by 
 statute to keep a book for the special purpose of record- 
 ing notices of withdrawal, which is called the "With- 
 drawal Book." Members desiring to withdraw enter their 
 
 [166]
 
 DUTIES AND RIGHTS OF MEMBERS. 
 
 notices in this book in regular order, including the date 
 of entry. The applications for withdrawal are then acted 
 upon in regular order. 
 
 While the primary idea of the building and loan 
 association, as already stated and popularly understood, 
 is to enable members to become owners of homes, yet 
 it is not the province of an association to inquire into 
 the purpose for which a member desires to accumulate 
 money. A member may therefore use an association not 
 only for the purpose of securing a home, but as he would 
 a savings bank for a variety of purposes. He may de- 
 sire, ( i ) to accumulate a fund for the purpose of em- 
 barking in some business enterprise, or, (2) for the 
 purpose of meeting some approaching obligation, or, (3) 
 simply of securing a safe depositary for his funds, or, (4) 
 of securing a good rate of interest on his funds while 
 deposited. It would defeat the purposes of some of the 
 members if there were no proper provisions made for 
 the withdrawal of their money and membership at such 
 times as suit their plans and convenience. Hence it is 
 that provision for withdrawals must be made in the 
 rules of associations. 
 
 The question has been debated as to what share in 
 the profits of an association a withdrawing member is 
 entitled. It has been held in some cases by the courts 
 that a withdrawing member does not possess the right 
 to claim a share of the undeclared profits of an associa- 
 tion. Such member receives the amount he has paid in 
 and his share of the profits credited and undrawn at the 
 time of the last preceding declaration of dividends, after 
 there has been deducted from this total amount any fines 
 or other charges still owing by them. If the association 
 has suffered a loss, it is the rule to deduct from the 
 amount which a withdrawing member has paid in, an 
 equitable portion as the directors may deem necessary for 
 
 [167]
 
 CHAPTER XII. 
 
 the protection of the remaining shareholders. In the case 
 of a prospective loss, the settlement of which may be in 
 the hands of an arbitrator or receiver, or may be pending 
 in court, it is usual to withhold some portion of a with- 
 drawing member's money until adjudication, when he 
 is entitled to receive any and all residues of such money 
 withheld, which equitably belong to him. 
 
 A member's privileges in the association cease as soon 
 as he gives notice in proper form of his intention to 
 withdraw. After that time he cannot transfer his stock. 
 A withdrawing member is a creditor of the association 
 until his money is paid him. As such he may bring 
 action to collect the amount due if the association does 
 not pay him in his turn and when the money is in the 
 treasury. 
 
 The rules of an association should confer some discre- 
 tionary power upon the directors in reference to with- 
 drawals to be exercised in certain classes of cases. 
 
 Inheritance Tax Laws. 
 
 In recent years many of the States have enacted laws 
 levying tax on inheritances. In some States these laws 
 require that financial institutions having charge of funds, 
 investments, securities or other property of a deceased 
 person, shall not pay out or disburse any of these pos- 
 sessions except under orders or by permission of certain 
 public officials. There is such a wide difference in the 
 provisions of the different States regarding these mat- 
 ters that it is not advisable to attempt any analysis or 
 description of them in this work. It is proper to say, 
 however, that officers of building associations should 
 familiarize themselves with the statute provisions re- 
 garding this feature in the State in which they are 
 
 [168]
 
 DUTIES AND RIGHTS OF MEMBERS. 
 
 operating. In handling and disposing of funds or prop- 
 erty belonging to decedents and referred to the asso- 
 ciation as executor, legal advice should be sought as to 
 the proper procedure. 
 
 Rights of Borrowers. 
 
 As already explained the primary purpose of a build- 
 ing and loan association is to lend money to its members. 
 It follows, therefore, that every member of an associa- 
 tion who complies with its rules has a right to become 
 a borrower from it. The amount of money which a mem- 
 ber is entitled to borrow is usually regulated by the con- 
 stitution of the association. 
 
 A member who is a borrower from an association, even 
 though in addition to other security he pledges his stock 
 as security for the loan, continues a member in every 
 sense and must discharge all the duties and may enjoy all 
 the rights and privileges of his original membership, 
 except the right of withdrawal and such other rights 
 as may be abridged by the special provisions in the con- 
 tract for the loan. 
 
 A borrower has the right at such times as are stated 
 in the rules to return to the association, in the aggregate, 
 the sum of money for the payment of which in install- 
 ments his obligation calls. This must, of course, include 
 accrued interest and other lawful charges. He can in 
 this way, by complying with the constitutional pro- 
 visions and restrictions governing such matters, release 
 his stock, or redeem property which he may have mort- 
 gaged to the association. After such repayment the 
 stockholder continues his membership upon the original 
 conditions and may now exercise the right of with- 
 drawal. 
 
 [1091
 
 CHAPTER XII. 
 
 The exact amount of money to be paid by a borrower 
 in the aggregate to discharge his obligation must be 
 determined by the rules, and settlement should be made 
 from the books of the association. This is another 
 matter which should be carefully guarded and provided 
 for in the rules and the contracts, since it has been a 
 prolific cause of litigation. 
 
 The executor or administrator of the estate of a de- 
 ceased member may continue the membership if he com- 
 plies with the necessary conditions and regulations. But 
 if he does not find it possible or desirable to do this, 
 it has been held that the estate is entitled to the same 
 privileges and allowances as if the borrower had volun- 
 tarily paid off the loan. 
 
 A borrowing member who does not keep up his pay- 
 ments is not entitled to the benefits received by those who 
 meet their obligations. His only offset against the claims 
 of the association is the actual payments he has already 
 made in the way of regular dues and of interest upon his 
 loans. Such members are also liable for their proportion- 
 ate share of the expenses and losses of the association. A 
 borrowing member, when sued by the association, does 
 not forfeit his rights of membership, and is still liable for 
 his regular dues. 
 
 An association must, even after suit is brought, accept 
 the payment of a loan with accrued interest and costs and 
 other lawful charges if tendered. Such offer is regarded 
 as a legal tender. If the offer is rejected the borrower 
 is entitled to cease paying interest upon his debt and to 
 the remedy of an adjudication by court. 
 
 Duties of Borrowers. 
 
 The duties of a borrower are sufficiently indicated in 
 the preceding sections. He must not only keep up his 
 
 [170]
 
 DUTIES AND RIGHTS OF MEMBERS. 
 
 original obligations as a member but must meet his con- 
 tracts for the payment of premiums and interest and 
 must look after the character and sufficiency of his 
 security. Not only is his own welfare and good name 
 dependent upon his faithfulness, but the prosperity of 
 the association and the interests of his fellow-members 
 are involved also in his obligation. All of these things 
 put a heavy responsibility upon the borrower, which by 
 every honorable consideration he must faithfully dis- 
 charge. 
 
 [171
 
 CHAPTER XIII. 
 
 Loans and Securities. 
 
 Premiums. 
 
 A premium is a bonus which a borrowing member 
 agrees to pay for the privilege of having money advanced 
 to him. It is, in effect, the difference between the par 
 value of his stock and the actual amount advanced to 
 him. It represents the amount he is willing to sacrifice 
 in order to anticipate the ultimate value of his stock 
 by obtaining the immediate use of the money which 
 the stock will be worth to him at its accumulated value. 
 
 The meaning of the term, premium, may perhaps be 
 better understood if the process in the sale of money is re- 
 versed. Let us suppose that when an association has 
 accumulated a sum of money which is to be loaned to 
 members, instead of the announcement of a sale of money 
 to the highest bidder, the announcement be that the asso- 
 ciation will purchase shares of members at the lowest 
 offer. A member has, say, five shares, which will be 
 worth at maturity $500 each, or a total of $2,500. On 
 these shares he has agreed to pay his regular weekly 
 installments until they are paid up. He now offers to 
 sell the prospective value of these shares to the associa- 
 tion for a certain net sum of money, the shares to be 
 assigned to the association immediately and a note or 
 bond be given for the continued regular payment of the 
 weekly dues, this obligation to be secured by a mort- 
 gage on the real estate purchased with the money ad- 
 vanced, or on other real estate, or by some other satis- 
 
 [172]
 
 LOANS AND SECURITIES. 
 
 factory security. The difference between the par value 
 of the member's stock at the maturity and the net amount 
 he receives for it when thus sold to the association again 
 represents the premium which he pays for the immediate 
 use of the money thus secured. 
 
 It has been held by the courts that boards of directors 
 cannot establish fixed rates of premium. In some states 
 the law specifically authorizes them to do so. 
 
 The custom of charging premiums for loans is fast 
 disappearing in the administration of the associations of 
 the United States. This is in line with the objects of the 
 work of these co-operative institutions — to furnish money 
 to the borrowers at as low a rate of interest as is con- 
 sistent with their own welfare. 
 
 Nature of a Loan. 
 
 The loaning or advancement of money to members is 
 one of the peculiar and distinguishing functions of build- 
 ing and loan associations. This advancement of loans 
 can be made to members, and the by-laws should so 
 fully describe the methods of procedure that mistakes may 
 be avoided. 
 
 In making or carrying into effect the rules relating 
 to the loaning of money to stockholders, it should be 
 borne in mind that the borrower continues an active 
 member of the association and, as a partner in its affairs, 
 is interested in the enforcement of the contract against 
 himself as a borrower, and, that, in a contract between 
 an association and a borrowing member, whatever goes 
 outside of the statutory and constitutional provisions is 
 invalid. 
 
 Mortgages. 
 
 The ordinary security given by a member for loans 
 and advancements made to him is in the form of a mort- 
 
 [17.1|
 
 CHAPTER XIII. 
 
 gage, or in some States a trust deed, upon real or 
 leasehold estate which he already holds or which he 
 purchases with the money advanced to him. The taking 
 of these mortgages is one of the most common incidents 
 in the work of an association in fulfilling the functions 
 for which it is established. A member may give a mort- 
 gage upon freehold or leasehold property for which he 
 can show a clear legal title. He may give a mortgage 
 upon the real estate of another person who in due form 
 submits his property for this purpose. 
 
 Mortgages must be drawn directly in accordance 
 with the statutes under which an association operates 
 and with its own constitution and rules. Since the sta- 
 tutes under which associations are established differ in 
 the several States, and since constitutions and rules gov- 
 erning this matter vary in different associations, there 
 are many forms of mortgages in use. To enter into a full 
 discussion of these forms would be foreign to the purpose 
 of this work. Two forms in common use are printed 
 in another part of this book,* an examination of which 
 will assist in arranging for this feature of the work 
 of an association. It is sufficient to insist here that the 
 rules be so carefully drawn in reference to this subject 
 that mistakes will not be possible. The mortgage itself 
 should contain the terms and conditions upon which it 
 shall be foreclosed, and should specify the disposition to 
 be made of the funds realized from the sale of the 
 property. In case of foreclosure, where the sum realized 
 is insufficient to liquidate the entire amount of the debt, 
 the member is still liable for the balance. 
 
 Other Securities. 
 
 Money may be advanced to members upon national, 
 state, county, or city bonds as collateral security, when 
 
 * See Chapter on Forma. 
 
 [174 J
 
 LOANS AND SECURITIES. 
 
 such action is authorized by the statutes and the rules. 
 The acceptance of such collateral security is in the dis- 
 cretion of the directors. The borrower must give his 
 note for the amount received and the interest to be paid 
 thereon, and transfer his stock to the association. The 
 note should give the name, number, amount, and par value 
 of the bond or bonds given as collateral security, and 
 should name the conditions upon which the security 
 becomes forfeited to the association. Forfeitures usually 
 become operative if the borrower shall fail to pay up 
 his regular dues and the interest for a certain term, say 
 three months, at most not longer than six months. The 
 directors may, after notifying him, declare his security 
 forfeited and may proceed to dispose of fhe bonds in 
 the most profitable manner for the purpose of liquidating 
 his obligation. The borrower may be allowed to renew 
 his note from time to time at the discretion of the di- 
 rectors. 
 
 Assignment of Stock. 
 
 When a member's stock is assigned to an association 
 as collateral security for a loan the assignment is usually 
 required to be made in absolute form. But nevertheless 
 the association cannot use or dispose of the stock except 
 for the purpose for which the assignment is made. The 
 stock is to be held by the association until it is paid up by 
 the member. The association then cancels the stock and 
 returns the bond to the member. 
 
 But if the member fails to keep up his payments on 
 the assigned stock, the association may declare the stock 
 forfeited, and apply what he has already paid in toward 
 the liquidation of his debt, and may transfer the shares 
 to some new applicant or applicants for membership. In 
 case of delinquency on the part of the borrower who 
 has assigned his stock to the association as collateral 
 
 U75]
 
 CHAPTER XIII. 
 
 security, the association first avails itself of the amount 
 he has paid in on the stock, and then proceeds in an 
 effort to realize the balance of his debt from the sale 
 of his mortgaged property and any bonds or other col- 
 lateral security he may have furnished. 
 
 Sale of Securities; Disposition of Proceeds. 
 
 Directors of associations are bound to dispose of prop- 
 erty on foreclosure of mortgages or of forfeited securities 
 on the most advantageous terms. This is necessary both 
 for the protection of the association and in justice to the 
 delinquent borrower. The proceeds derived from the sale 
 of securities must be applied as follows : ( I ) To payment 
 of dues; (2) to payment of interest; (3) to payment of 
 premiums; (4) to payment of fines; and (5) to payment 
 of costs. If any balance remains it must be paid over to 
 the owner and his receipt taken in full. The rules should 
 be explicit in reference to the forfeiture and sale of secu- 
 rities, for this step involves the highest interests of an 
 association and of its members. 
 
 Loans and Securities; Amplication for Loan. 
 
 A member desiring a loan from a building association 
 should be required to fill out and sign a formal applica- 
 tion on a printed form supplied by the association. This 
 application should contain such data and information as 
 will give the officers of the association full and accurate 
 information regarding the borrower and the property 
 offered as security. It should give the full name of the 
 applicant ; his address where mail will reach him ; the 
 fact whether he is married or not, and if married, the 
 full name of wife or husband ; the amount of the loan 
 desired, and the use to which the borrowed money is to 
 
 [176]
 
 LOANS AND SECURITIES. 
 
 be applied, whether for buying, building, repairing the 
 mortgaged property, discharging existing liens and debts, 
 or for other purposes. 
 
 The application should contain also a full and accurate 
 description of the property offered as security, which 
 description may be copied into the mortgage or deed of 
 trust, given to secure the loan. This description should 
 be quite full. Where the property consists of a town 
 or city lot it should give the number of the lot, the block, 
 subdivision and ward in which it is located, the street 
 on which it fronts and between what streets it is located ; 
 whether the street is improved by paving, sewerage, side- 
 walks, water, gas and electric light. The dimensions of 
 the lot in front feet and in depth must be stated together 
 with a full description of the character of the building and 
 improvements thereon. Information must be given in the 
 blank regarding the size of the building, the material of 
 which it is built, and the purpose for which it is being 
 used (whether for residence or business purposes) ; the 
 number of stories in the building and the number of 
 rooms on each floor ; whether or not it has a basement. 
 The application should show, further, whether the house 
 is piped for gas and wired for electricity, and the number 
 of openings for each ; whether the house is provided with 
 water and connected with the sewer system, and equipped 
 with bath, toilet and stationary laundry tubs, also the 
 system of heating employed ; whether by hot air furnace, 
 hot water, steam or stoves. It should show the out- 
 buildings, if any, on the lot, such as barn, garage, etc; 
 the owner's valuation of the property and its value as 
 assessed for taxation. 
 
 It should also contain personal information in regard 
 to the borrower; his age, occupation; where employed, 
 how long in that employment, and the wages or compen- 
 sation earned, or average monthly income, other property 
 
 [177]
 
 CHAPTER XIII. 
 
 or real estate which he owns, amount of indebtedness that 
 he is carrying, amount of fire or other insurance on the 
 buildings offered as security, and amount of life insur- 
 ance he is carrying. 
 
 The Necessity of a Plat. 
 
 The application should also have a plat drawn, on 
 which the location of the property can be definitely indi- 
 cated, so that from this plat and the description of the 
 property, the officers can readily locate the premises on 
 the city map. If the loan is for building a new house, 
 the plans and specifications should be filed. It is quite 
 important, also, that this application should affirm that 
 the statements and the answers given to the questions 
 thereon are made by the applicant for the purpose of 
 establishing his credit, and obtaining a loan from the 
 association, and that the statements and answers given 
 by the applicant are true. This should be signed by the 
 applicant and attested by the officer of the association 
 who receives it. 
 
 There should be a blank on this application for the 
 appraisement committee or committee on securities, to 
 make their report, after viewing the property and also a 
 blank for the report by the attorney of the association 
 as to the condition in which he finds the title, after ex- 
 amining the abstract which the applicant furnished. 
 These formal applications may be made out at any time 
 and filed with the secretary. They are usually numbered 
 in consecutive order, and presented by the secretary to 
 the Board of Directors at their next regular meeting. 
 
 If it appears from the facts disclosed by the applica- 
 tion that the loan would not be desirable for any reason, 
 the Board may summarily reject the application. If the 
 
 [178]
 
 LOANS AND SECURITIES. 
 
 loan appears to be one which the association might find 
 desirable it is referred to the appraising- committee or 
 committee on securities, with directions to inspect and 
 appraise the property and report their conclusions there- 
 on at the next meeting of the Board of Directors. 
 
 Afajrraisement of Real Estate. 
 
 More responsibility for the success or failure of a build- 
 ing association rests upon the men who appraise the real 
 estate offered for loans than upon any other factor of 
 the organization. Indeed, the success of an association 
 is almost wholly dependent upon its loans being made 
 upon adequate security. For this reason, the officers 
 whose duty it is to appraise this security should be chosen 
 with great care. The practice in this regard is very 
 different in this country from that followed in England. 
 In Great Britain there are real estate valuators. These 
 men form a regular profession, as well-defined as that 
 of practicing law or medicine, or dentistry. This feature 
 of professional life is just beginning to be introduced in 
 this country, and in a few of the larger cities the real 
 estate boards are more and more availing themselves of 
 the services of professional valuators. In this country, 
 however, this profession has not yet grown to a position 
 where its services are available in very many commu- 
 nities. As a result of this condition, building associa- 
 tions almost universally depend on the judgment of a 
 committee of its board of directors for fixing the ap- 
 praisement and estimating the value of property which is 
 offered as security for loans. In selecting these com- 
 mittees, the members should be men of intelligence and 
 experience. They should be familiar with property 
 values in the community and at least one of the members 
 should be a practical builder, with experience in estimat- 
 ing the cost and values of construction work. 
 
 [1791
 
 CHAPTER XIII. 
 
 Appraising the value of a piece of property should not 
 be a matter of guesswork but should be based upon the 
 fads which the condition of the property presents. At 
 a recent meeting of the Ohio Building Association 
 League, Mr. C. C. Knox, of Youngstown, Ohio, who is 
 appraiser for one of the most successful associations in 
 the State, gave a description of the plan he follows in 
 arriving at the value of real estate. His paper contains 
 so many practical ideas of real value upon this subject 
 that we quote the following paaragraphs : 
 
 "After the application for a loan has been made, I take the 
 application blank, note the street and number, look up the lot num- 
 ber on atlas before I start out, draw a diagram showing how many 
 lots from intersecting corner. 
 
 Upon reaching the house and being permitted to enter, I start 
 in the cellar and proceed to the attic and write on pad the principal 
 parts of the house, such as the material in the cellar wall, heating 
 system, if the cellar is cemented or not, the finish, if wired for 
 electric lights, or piped for gas, bath complete or plumbing roughed 
 in, china closet, grate or mantle or brick fireplace, number of bed 
 rooms, finished or floored attic, the kind of roof and siding, about 
 the number of years old, etc. Later I copy these on application blank, 
 also drawing diagram of the size and height of house. To obtain 
 the height I estimate from the bottom of cellar to attic floor and 
 one-half the height from attic floor to top of roof. If a house 
 had 18 ft. studding, 7 ft. cellar and 10 ft. from attic floor to top of 
 roof, it would be 30 feet high. 
 
 The main point in going through a house is to give it a rating, 
 as I appraise by so many cents per cubic foot. For example, take 
 a 24 ft. by 28 ft. by 30 ft. high, 20,160 cubic feet, at 15 cents per 
 cubic foot is $3,000. I have a card index with the cubic feet of all 
 building figured out, just the same as your interest tables, and I 
 can see at a glance the number of cubic feet of any size building. 
 
 A house with all improvements, about ten years old, in good 
 repair, I give about VlYiC. rating; 20 years old, lie. per foot rating; 
 not in good repair, l l /2C. or 8c. rating, etc. 
 
 If it is a new house, and has tile and cement block cellar, wall 
 under all of house, cellar floor cemented, furnace, pine-floored attic, 
 slate roof and lap siding, a 14c. per cubic foot rating. Oak and 
 
 [180]
 
 LOANS AND SECURITIES. 
 
 pine finish, WAc. rating; oak and pine finish and hard wood floor 
 in two rooms, 15c. rating; grate and mantel, WAc. rating, brick 
 fireplace and book case, lS^c. rating; finished attic, 18^c. rating; 
 brick veneer, 20c. rating ; tile roof, 22c. rating ; hot water, heat, 25c. 
 rating ; fancy tile bath room with shower, 27c. rating, etc. 
 
 Most buildings run from 5c. to 27c. per cubic foot. Anything 
 under 5c. per cubic foot I recommend the loan declined. 
 
 Also, I size up the neighborhood, whether it is good, fair or 
 poor neighborhood, and if the houses are uniform. 
 
 This system eliminates guess work. The way most institutions 
 appraise is to have three of their board of directors look at the 
 property, each make an estimate and average up those amounts 
 and appraise accordingly. I know of one case in a neighboring 
 city where this committee appraised a residence. They never got 
 out of their automobile, reported to the association that they ap- 
 praised the house at $3,000. The owner explained to the secretary 
 that there must be some mistake as he had a tile bathroom with 
 shower bath, and plumbing fixtures that cost $800, hot water heat, 
 costing $600, mahogany finish, etc. The result was that this same 
 committee re-appraised the house, and they went from cellar to attic, 
 and decided that it was a $6,000 house. The point that I wish to 
 make is that in order to appraise any building you must go through 
 that building from attic to basement. I also think that our tax 
 appraisers would make a better and fairer appraisement if they 
 would go through the building and not size it up from the outside. 
 The next thing is land value. In land value there are a number 
 of things that should be taken into consideration ; last sale, improve- 
 ments, location in reference to business or residence districts, streets, 
 street cars, schools, churches, amount that it is on the tax duplicate 
 for and distance from center of city. 
 
 New plats I start at $5 to $6 per foot front, and add $1 per foot 
 front for curb, $1 per foot front for gutter, $2 per front foot for 
 sidewalks, $3 per foot front for sewer, $1 per foot front for gas, $2 
 per foot front for water, $5 per foot front for paving, then as the 
 street builds up and is improved with good houses and lawns, such 
 as are on high-class streets, I appraise at $25, $30, $35 or $40 or $50 
 per front foot, etc. 
 
 My company gave me a city atlas. I copied the values taken from 
 the tax duplicate and mark in green ink every square, then I place 
 along side in every square our value in red ink, so that the next 
 time I have a loan in that same square I give it the same land 
 value. Corner lots I give a higher value than in-lots, by adding 
 
 [181] 
 
 13
 
 CHAPTER XIII. 
 
 20 per cent if lot is more than one hundred feet deep. In case 
 something should happen to me, my successor could use this atlas 
 to good advantage. An appraiser must have confidence in himself. 
 Be sure he is right, then go ahead. He will find that he can always 
 learn something new on every house he appraises. He must also 
 keep up to date with prices of materials and labor, as at the present 
 time they are going up very fast. There are some institutions that 
 get their values exclusively from the selling price of properties 
 and appraise accordingly. This, I think, is an error, for I know 
 of one instance where there were two houses exactly alike, side by 
 side, same size lot, one sold for $3,000 and the other for $2,600. I 
 know some instances where the owner and purchaser have agreed on 
 false selling price in order to get a larger loan ; also the contractor 
 and owner have signed up a false agreement for the same reason. 
 I recall one instance when an agreement for a common 16x28 house 
 was signed up by both parties and witnessed for $2,300, when 
 the house only cost $1,400 to build. 
 
 In construction loans, when the plans are given me to esti- 
 mate, I always note on the application blanks the size of building 
 and on the first inspection I measure the building, compare it with 
 the size on the blank, and often I have found the house smaller than 
 the plans called for, in which case our board cuts down the loan. 
 The main point in appraisement for a financial institution is what 
 would be a fair, conservative and safe value to loan money on and 
 not what its selling price is, although the selling price should be 
 considered. The location should be considered. I found out from 
 the contractor, who was one of our best contractors, that a brick 
 house I appraised in a poor district cost $5,000 to build, but I ap- 
 praised it at $4,000, taking into consideration that if it ever fell 
 into our hands we could not realize more than $4,000, but if that 
 same house were built on some of our better streets, I would have 
 valued it at $5,000. 
 
 Nor can you always depend on the contract price, as I know 
 of $800 difference between the highest and lowest bidder of a $6,000 
 house. 
 
 Another suggestion I would like to make is that the office force 
 is familiar with the receipts or the way the money comes in, but are 
 not familiar with the way it is disbursed, or paid out. I think it 
 would be time well spent if each of the office force would accompany 
 the appraiser one or two days each year in his trips and see how 
 and where the money is loaned. 
 
 [182]
 
 LOANS AND SECURITIES. 
 
 We should be exceedingly careful if we loan money outside 
 our county. I know of one case where a party purchased a house 
 and lot for $2,300 and obtained a loan of $2,600 from an out-of-town 
 association. I think that a very good and safe way to appraise prop- 
 erty is for the appraiser to value the property as if he were going 
 to loan his own money, and I dare say if that was done the value 
 would not be very much out of the way. 
 
 I have been informed that most all of the insurance companies, 
 architects, contractors and engineers have adopted a system similar 
 to this one for estimating." 
 
 Expert Afifiraisers. 
 
 In many of the large associations the board of directors 
 find it inconvenient to investigate individually the prop- 
 erty offered as security, and the matter of investigation 
 of loans and all the details in connection therewith are 
 referred to an expert on the value of real estate and 
 buildings, whose duty it is to make a careful investiga- 
 tion as to value, improvements, and physical risk of the 
 loan. This report, with an affidavit of the expert, is 
 filed with the secretary of the association, who thereupon 
 brings the application before the regular meeting of the 
 board, so that they may investigate the details. In some 
 cases the report is referred to a special committee on 
 loans, which meets at the call of the secretary, and is 
 empowered to grant loans immediately to the borrower. 
 This action then is brought before the regular meeting of 
 the board and formally ratified in accordance with the 
 provisions of the constitution and by-laws. 
 
 Mechanics Liens. 
 
 Since a large ratio of the loans made by building asso- 
 ciations is for the purpose of building new homes, the 
 subject of Mechanics' Liens becomes of prime impor- 
 tance in conducting these associations. A Mechanic's 
 
 [1831
 
 CHAPTER XIII. 
 
 Lien is created by statute, and confers upon parties fur- 
 nishing material or performing labor, in the construc- 
 tion of a building, the right to obtain a lien against the 
 premises for the value of the material furnished or labor 
 done. These statutes usually provide that the entire un- ., 
 paid claim for material furnished or labor done shall 
 attach as of the date at which the first material was fur- 
 nished, or labor done by the party claiming the lien. 
 There is such wide difference in the provisions of these 
 Mechanics' Liens Laws in the different states, and they 
 are subject to such frequent changes and amendments 
 in each of the states, that no attempt will be made in 
 this work to analyze these statutes or describe plans and 
 methods by which a building association making con- 
 struction loans may protect themselves against these liens. 
 It is suggested, however, that the attorneys for building 
 associations should make a careful study of the Me- 
 chanics' Lien Laws and that great care should always be 
 taken in making construction loans to see that the mort- 
 gage of the association is prior in time and superior in 
 equity to any Hen which material men or workmen em- 
 ployed thereon may place upon the property. 
 
 Straight Mortgage Loans. 
 
 Another departure from the old method of making 
 loans has been that of making so-called straight mortgage 
 loans to persons. The application for money is handled 
 in the same manner as stated, but the borrower, instead 
 of repaying the amount in regular stated payments, 
 make a loan that is for a definite number of years, at 
 whatever amount is stipulated in the contract with the 
 association. There is an increased demand on the part 
 of the public for loans of this character. 
 
 [184]
 
 LOANS AND SECURITIES. 
 
 State Supervision. 
 
 The early form of building association was more in 
 the nature of a neighborhood club, the membership made 
 up of individuals all personally acquainted. 
 
 As the system developed and expanded, and especially 
 after the adoption of the serial and later of the permanent 
 feature by which its life was extended and the possi- 
 bilities for membership greatly enlarged, the importance 
 of the system began to be more fully appreciated by the 
 general public. It became a sort of quasi-public institu- 
 tion in which practically every member of the community 
 had an opportunity to secure membership. It developed 
 from a neighborhood club into an important type of 
 financial institution. It became popular and largely 
 patronized as a depository for savings. 
 
 When the system had reached this point of develop- 
 ment it became apparent that an institution of this char- 
 acter should be subject to some sort of state or govern- 
 ment supervision. It is an established policy in this 
 country that no institution should be permitted to hold 
 itself out as a repository for public savings without being 
 to some extent subject to supervision by state authority. 
 It should be required to conform its plans and methods 
 in established and approved lines, and its treatment of 
 its members should be fair, just and equitable. 
 
 In carrying out this policy, practically every state in 
 the Union has enacted laws requiring building associa- 
 tions operating within its borders to make regular reports 
 to some state authority, in such form and disclosing such 
 facts in relation to its business and financial condition as 
 the state authority may prescribe. 
 
 Most of these statutes also provide that the state 
 authority to whom the reports are made shall also have 
 
 11851
 
 CHAPTER XIII. 
 
 power to make an inspection and examination of the 
 books of the associations. In most of the states this 
 examination is made compulsory. 
 
 This system of state supervision and examination, of 
 course, involves some expense to the state, and therefore, 
 it is generally provided that the association shall pay a 
 stipulated fee upon the filing of its annual report. In 
 some cases a charge for the examination is made by the 
 state authority. This, of course, places an added burden 
 and involves additional expense to the association. For 
 this reason when the plan of state supervision and exam- 
 ination was first proposed, it met with some opposition 
 from the building associations. In other states these 
 provisions for state supervision and examination were 
 enacted by the legislature at the suggestion and upon the 
 request of the building association league. 
 
 The effect of this state supervision has been very help- 
 ful and beneficial to the movement. It has resulted in 
 wiping out and abolishing many harmful features and 
 practices in which some associations indulged. In many 
 states it has brought from the supervising authority 
 many wise and helpful suggestions as to improved plans 
 and methods for simplifying the operation, and making 
 more accurate the system of accounting and bookkeeping, 
 thereby gradually standardizing the plans and methods 
 of building association operation. 
 
 Doubtless the most helpful and beneficial result of this 
 state supervision has been the added prestige given to 
 the building association movement. It has increased 
 public confidence in the safety and stability of these 
 institutions, and has placed building associations on a 
 distinctly higher plane in public estimation. 
 
 In practically every state the supervising authority and 
 the examiners and inspectors in their employ have been 
 men of high character and ability, and actuated by the 
 
 [186]
 
 LOANS AND SECURITIES. 
 
 most friendly motives toward the associations with which 
 they were dealing. As a general proposition it may be 
 said that the result of these state inspections has been 
 extremely helpful and stimulating to the building associa- 
 tion movement. 
 
 The value which the association derives from the 
 supervision and inspection by the state far outweighs the 
 cost and expense which it usually imposes on the associa- 
 tion. It may be in place to add that the object and pur- 
 pose of requiring these fees and costs to be paid by the 
 association is to relieve the state from the burden which 
 it creates. In fixing the amount of fees and costs which 
 the association should pay for this purpose, the aim 
 should be not to make it a source of revenue to the state, 
 but simply to cover the actual cost of the state super- 
 vision. In most of the states this idea has been kept in 
 mind, in fixing amounts of these fees and costs. 
 
 1187]
 
 CHAPTER XIV. 
 
 Corporate Management. 
 
 The Corporate Meeting. 
 
 A corporate meeting is one composed of the members 
 of an association regularly assembled. Meetings may be 
 general or special. The members thus assembled in a 
 corporate meeting constitute the supreme power of the 
 association. But in their action they are nevertheless 
 subject to restrictions. If the association is organized 
 and incorporated under general or special laws of the 
 state, the corporate meeting must confine its actions 
 within the limits laid down in the charter and the statutes 
 under which it acts. The corporate meeting fixes its own 
 constitution and by-laws in accordance with statutory 
 limitations. But after these are once fixed it has no 
 power to change them except in accordance with the rules 
 which it has established. Where associations are not 
 organized and incorporated under special charters they 
 are, of course, subject to the general statutes and rules of 
 equity like other incorporated companies. 
 
 The entire association is bound by the acts of a ma- 
 jority of its members when those acts are legal and in 
 due form. In the absence of special provision in the rules 
 of the association a question may arise as to what is 
 meant by a majority. It has been held that an associa- 
 tion is bound by the acts of a majority of those present 
 at a regular meeting, whether they constitute a majority 
 of the members or not. It has been held further that a 
 majority does not necessarily constitute a majority of all 
 
 [188]
 
 CORPORATE MANAGEMENT. 
 
 members present, but of all the members present and 
 voting. But it is better that the rules of the association 
 should state definitely what proportion of the member- 
 ship shall constitute a quorum for the transaction of 
 business. Then if this number is not present a meeting 
 can transact no business except to adjourn to some other 
 date. Where the statutes or the rules of the association 
 do not fix the quorum the rule is that a majority of all 
 those present and entitled to vote at a duly called meeting 
 shall constitute a quorum. 
 
 Where the statutes do not determine the right of a 
 member to be represented by proxy the question should 
 be settled specifically in the constitution and by-laws. 
 
 General Meetings. 
 
 The general sessions of associations are those cor- 
 porate meetings which occur at the stated times fixed by 
 the constitution or by-laws. The shareholders should 
 meet at least once in six months, generally on the first 
 meeting night in the month following the close of each 
 fiscal half year. The meetings are held at the place desig- 
 nated by the board of directors. Each member must be 
 advised of the time and place of the meeting, either by 
 individual notification by letter or otherwise, or by ad- 
 vertisement in some paper of general circulation regularly 
 issued in the vicinity. The usual business of such meet- 
 ings is the election of officers and the determining of the 
 general policy and management of the association. The 
 desires of the members may be expressed through the 
 election of certain persons to fill the offices who are 
 pledged to a certain line of conduct in the management 
 of the affairs of the association. 
 
 The business of the general or corporate meeting 
 should be conducted according to the order of business 
 laid down in the rules. The reports of officers is a promi- 
 
 \\m\
 
 CHAPTER XIV. 
 
 nent feature of these meetings. These reports, when 
 represented in proper form, give the members a clear idea 
 of the business of the association, and enables them to 
 determine intelligently the policy for its future manage- 
 ment. 
 
 Special Meeting*. 
 
 Provisions should be made in the constitution and by- 
 laws for the calling of special meetings. These ought to 
 be so drawn that the officers whose duty it is to call them 
 have no discretion in the matter, but should be compelled 
 to act upon the request of a certain number of members. 
 There ought to be also a rule that in the calling of special 
 meetings all the members must be notified in proper man- 
 ner, and that otherwise the proceedings of the meetings 
 shall be invalid. Such provisions are necessary in order 
 to protect properly the rights of members. In the absence 
 of these rules, it has been held under the general laws 
 that each member must have personal notice, that a rea- 
 sonable time must be given, and that the call must be 
 issued by authority competent to call a meeting. But if 
 all persons entitled to vote unanimously consent, no- 
 tice of meetings may be waived and the proceedings will 
 be valid. Special meetings can transact no other business 
 than that named in the call. 
 
 An adjourned meeting may transact any business that 
 may be lawfully transacted at the original meeting. The 
 acts of a meeting irregularly convened are not binding. 
 
 Management of Corporate Meetings. 
 
 A few suggestions in regard to the management of 
 corporate meetings will not be out of the way. Under 
 our democratic form of civil government, citizens, 
 through the influence of our ordinary political methods, 
 become educated to the habit of delegating their authority 
 
 [190]
 
 CORPORATE MANAGEMENT. 
 
 to others. The result is that many good citizens neglect 
 and ignore their duty as such and leave public affairs to 
 be directed by others. This custom is too often carried 
 into building associations and other corporate bodies. 
 This ought not to be. Every member of an association 
 should keep himself thoroughly informed with reference 
 to its business and management at all times. He should 
 not fail to be present in person at every corporate 
 meeting. 
 
 At any corporate meeting it should be the business of 
 some one, usually the president or the secretary, to make 
 a clear statement of the purpose of the meeting, and to 
 present all the facts in connection with the work of the 
 association which bear upon the matter to be considered. 
 It is well, also, from time to time in such meetings, both 
 for officers and members, to review the provisions of their 
 charter, that they may be sure that their operations are 
 all kept within the proper legal and constitutional bounds. 
 It is easy, when the members and officers of an associa- 
 tion are careless, for its methods and operations grad- 
 ually to slip outside of the limits which they were origin- 
 ally intended to occupy. 
 
 At any regular corporate meeting there should always 
 be a clear, business-like statement of what the associa- 
 tion has accomplished during the past year, and what is 
 expected to be accomplished during the coming year. 
 These facts being before the members, they are able to de- 
 termine whether the association is accomplishing the 
 work for which it was intended. If it is, well and good ; 
 if not, measures must be taken to correct its mistakes. 
 
 Members should also bear in mind that no association 
 is of any worth or power, simply from the fact that it is 
 an association. Its power and efficiency is only the joint 
 power and efficiency of the men and women who compose 
 it. If they do not attend its meetings, if they neglect its 
 
 11911
 
 CHAPTER XIV. 
 
 business, or go to meetings and simply hold up their 
 hands and vote like machines, and give no active thought 
 to its business through the whole course of the year, they 
 are an incumbrance, rather than a help to it. 
 
 The officers and directors should have evidence of the 
 never-lagging interest of the membership. This will not 
 only put a proper check upon them in their management 
 of the association's affairs, but it will also spur them to 
 continued diligence and efficiency. Any officer or mem- 
 ber of an association who satisfies himself with the mere 
 perfunctory discharge of the routine duties of his position 
 makes a serious mistake. His active and intelligent par- 
 ticipation and interest in the association's affairs at all 
 times are necessary to its highest success. 
 
 Officers: Their Election and General Powers. 
 
 As stated before one of the principal functions of the 
 corporate meeting is the election of officers. This must 
 take place in the manner and at the time required by the 
 constitution and by-laws. If these prescribe no particular 
 form for elections, then it has been held that no election 
 conducted in good faith will be set aside. Some associa- 
 tions provide by constitutional rule that a double or lar- 
 ger number of candidates for each office shall be nomi- 
 nated, from whom the members are to elect. But it has 
 been held, in some states, that a member receiving a 
 majority or plurality of votes, as the case may be, is duly 
 elected and entitled to hold the office, even if his name is 
 not on the list of those nominated. When candidates are 
 properly nominated, and the election is held in dije form 
 and at the proper time and place, those candidates re- 
 ceiving a majority of the votes cast are elected. This 
 is true even though the majority of the entire association 
 may refrain from voting, except in case the constitution 
 makes a provision to the contrary. 
 
 [1921
 
 CORPORATE MANAGEMENT. 
 
 If from any cause the election is not held at the proper 
 time set in the constitution, the association nevertheless 
 continues, and the old officers are in authority until their 
 successors shall be duly elected and qualified. 
 
 The casting of improper votes at an election does not 
 vitiate it unless it can be shown that the result would 
 have been different had they not been received. On the 
 other hand, if it can be shown that legal votes have been 
 rejected and their reception would have changed the re- 
 sult of the election, the election is vitiated and a new one 
 must be held. Ballots containing the names of a less 
 number of directors than are provided for must be re- 
 ceived, but those containing a greater number must be 
 rejected. An inspector or judge of an election may also 
 be a candidate, unless forbidden in the by-laws. 
 
 The acts of de facto officers are binding upon a cor- 
 poration, especially so far as these acts affect third par- 
 ties, even though it may afterwards be decided that the 
 officers were ineligible. 
 
 [193]
 
 CHAPTER XV. 
 
 Election and Duties of Officers. 
 
 Officers Required. 
 
 The officers of a building- association are the same as 
 of any other corporation or business body. They consist 
 usually of a president, a vice-president, a secretary, 
 assistant secretaries, a treasurer, an attorney and a board 
 of directors. 
 
 Elections. 
 
 The constitution provides for the time, place, and man- 
 ner of elections. Since the officers are the actual man- 
 agers of the business of the association the provisions for 
 their election should be so plain and explicit as to leave 
 no room for doubtful or uncertain action. The officers 
 are to be clothed with legal powers. There should be no 
 question as to their legal qualifications. 
 
 Attention has been called already to the necessity, in 
 the organization of an association, of selecting as officers 
 those persons who by character, ability and experience 
 are best qualified to serve in that capacity. The bearing 
 of the officers, their intelligence, and their business ability 
 and sagacity, will have much to do with an association's 
 popularity and success. They must be polite to all the 
 members and other persons visiting the headquarters of 
 the association or calling upon them privately ; they must 
 be ready to respond intelligently to all proper inquiries 
 relating to the business of the association; they must 
 require that all moneys in which the association is in- 
 terested are properly and promptly accounted for; they 
 
 1194]
 
 ELECTION AND DUTIES OF OFFICERS. 
 
 must be quick to seize upon every advantage that can be 
 used to further the interests of the association ; they must 
 carefully guard all investments or loans of the associa- 
 tion ; and must, in general, be as watchful and careful of 
 all matters pertaining to the association as any successful 
 business man must be of his own interests and business. 
 Officers by faithfulness may build up an association and 
 make it very strong, while by indifference and irregu- 
 larity of proceedings, they may destroy its popularity and 
 usefulness, and even its existence. 
 
 As the usual elections recur year after year the ques- 
 tion of the re-election of certain persons to certain offices 
 will arise. There is one rule which should always prevail 
 at elections, and that is to seek the greatest good for the 
 association. This can be accomplished in two ways : by 
 the re-election of faithful and efficient officers, and by the 
 introduction of new blood, new energy, and new influ- 
 ences into the management. In connection with the re- 
 election of officers it should be borne in mind that no one 
 member should be overburdened with the work of an 
 association. On the other hand an association should 
 secure the benefit as far as possible of the knowledge of 
 its affairs and workings possessed by its experienced 
 officers. A good rule is — other things being equal — to 
 re-elect the salaried officers as long as their work is satis- 
 factory and no special reason arises for making a change. 
 Their knowledge of the details of the business is very 
 valuable. It is best to re-elect some of the other officers, 
 especially directors, at each election. It is only on rare 
 occasions where there is to be some radical change in 
 the management of an association, that an entirely new 
 board of directors should be chosen. 
 
 Where there is no necessity for making a change, it 
 is best to re-elect a strong representation from the old 
 board. Indeed, in order to avoid sudden and unfortunate 
 
 [196]
 
 CHAPTER XV. 
 
 changes in the board and to secure opportunity at the 
 same time for desirable rotation in office, some associa- 
 tions adopt a rule to the effect that at the first election 
 one-third of the directors shall be elected for a one-year 
 term, one-third for two years, and one-third for three 
 years. Then at each subsequent election one-third of the 
 whole number of the board is chosen for the full three- 
 year term. 
 
 Duties of President and Vice-President. 
 
 In general terms the duties of the president and the 
 vice-president, as indeed of all the officers of an associa- 
 tion, are, in the absence of special provisions and limita- 
 tions, the same as belong to similar officers in other like 
 bodies. Thus, unless there be special provisions to the 
 contrary in the constitution or by-laws of an association, 
 it is the duty of the president, or, in his absence, of the 
 vice-president, or of one of the vice-presidents (who act 
 in their numerical order), to call meetings of the associa- 
 tion, and to preside and preserve proper order at the 
 same, to sign the contracts of the association, to execute 
 other official documents, to sign warrants drawn upon 
 the treasurer, to keep the seal of the association, and, with 
 the board of directors, to make provisional arrangements 
 to meet all the various unprovided-for emergencies and 
 necessities of the business of the association. The presi- 
 dent appoints all committees for the appointment of 
 which no other provision is made. For the relief of the 
 president and other officers from uncertainty and un- 
 necessary and irksome responsibility, the constitution and 
 by-laws should specify as fully and clearly as possible 
 the duties imposed upon each of them. 
 
 Duties of Secretary. 
 
 The office of secretary is in many respects the most 
 important in the association. He is the custodian of its 
 
 11961
 
 ELECTION AND DUTIES OF OFFICERS. 
 
 business and records, and the source of information con- 
 cerning its affairs ; he keeps the minutes of all the official 
 proceedings of the association and its board of directors; 
 he conducts the correspondence; he keeps the financial 
 accounts; and is, in general, the agent, and to a large 
 extent, the acting manager of the entire business of the 
 association. He attests the signature of the president on 
 all the official documents. 
 
 He should submit quarterly, semi-annual, and annual 
 reports to the association, as may be required by the 
 rules. These reports should always be written out plain- 
 ly, neatly ruled, and should present a full account and 
 summary of the business for the preceding term. They 
 should include a complete balance sheet, giving a de- 
 tailed exhibit of the profit and loss accounts, and a state- 
 ment of all assets and liabilities of the association. Usually 
 the directors authorize the secretary to have these reports 
 printed for distribution among the members.* 
 
 The secretary possesses unusual powers and carries 
 heavy responsibilities. The constitution and by-laws 
 should give him clear and specific instructions in regard 
 to his duties and liabilities. No mistake should be made 
 in the selection of the secretary, and when once chosen he 
 should have the cordial support and co-operation of all 
 the shareholders. 
 
 Assistant Secretaries. 
 
 The business of some associations is so large, or the 
 secretary is so occupied with other business, that the 
 employment of assistant secretaries is necessary. They 
 are usually employed by the directors. Their duties are 
 clerical, and they work under the direction of the 
 secretary. 
 
 • Sec Chapter on Form*. 
 
 [197] 
 
 14
 
 CHAPTER XV. 
 
 Duties of Treasurer. 
 
 The treasurer is the custodian of the association's 
 funds. Unlike the president and secretary, he possesses 
 no discretionary powers. His duties are entirely minis- 
 terial. He must give his receipt for all money placed in 
 his hands, and is responsible for all the funds of the asso- 
 ciation he thus holds. He may not pay out any money 
 except upon warrants drawn in due form in the manner 
 provided by the rules of the association. He must keep 
 correct accounts of all receipts and payments. He is not 
 liable for the payment of warrants duly drawn by the 
 proper officers of the association, even though the money 
 is wrongfully applied by them. 
 
 He cannot hold the association responsible for money 
 which he may advance for legitimate purposes without a 
 warrant. As a general rule the treasurer should not be 
 allowed to make his own selection of the bank or place 
 of deposit for the funds of the association, unless the 
 question is fixed by the statutes. If, however, the board 
 of directors select the place of deposit, he is not liable 
 for loss of the association's funds by the robbery or fail- 
 ure of the bank which they have selected. When the 
 treasurer himself selects the bank of deposit he is not 
 liable for loss by robbery or failure, provided that he can 
 show that his action has been free from fraud or negli- 
 gence. It is becoming quite common for associations to 
 combine the offices of secretary and treasurer and have 
 but one officer designated as secretary-treasurer. Where 
 the funds of the association are deposited in a bank and 
 withdrawn and disbursed by check, the books and records 
 of the treasurer are largely mere duplications of the 
 records made by the secretary and makes needless work 
 and unnecessary complications of records. 
 
 [198]
 
 ELECTION AND DUTIES OF OFFICERS. 
 
 General Manager. 
 
 In the larger associations it is now the custom to select 
 what is known as the general manager of the institution. 
 This official has under his control the active management 
 of the affairs of the association. He is selected by a 
 board of directors and holds his office at the pleasure of 
 the board. In some associations a member of the board 
 of directors is selected, and in others some one outside 
 the board of directors is chosen. All business transac- 
 tions relating to the affairs of the association are care- 
 fully kept on regular forms, and must be submitted to the 
 board of directors at its next regular meeting for 
 approval. 
 
 Duties of Directors. 
 
 The board of directors are the responsible managers of 
 the association. In them is vested the power to order 
 and transact all business for the association, and their 
 acts are the acts of the association. Their powers and 
 limitations must be defined by the constitution and by- 
 laws. If they fail of the full discharge of their duties as 
 thus defined, they are responsible to the members of the 
 association. If, on the other hand, they transcend these 
 powers of the association, they themselves become per- 
 sonally liable to the parties interested. 
 
 It may be said in general terms that the directors of an 
 association have charge of the disposition of the funds, 
 the making of loans, the acceptance of securities, the 
 filling of vacancies in the offices, and the providing of 
 proper compensation for services when this is not other- 
 wise fixed. They are subject to the control of the cor- 
 porate meeting, but not of individual members. A mem- 
 ber may, however, on behalf of himself and others, pro- 
 ceed by law against the directors for illegal acts. 
 
 [1991
 
 CHAPTER XV. 
 
 The number of meetings of the board of directors is 
 usually fixed by the constitution, but the time and place 
 may be determined by the directors themselves. When 
 the association has an office, or regular place of business, 
 it is best that the directors' meeting be held there. The 
 time of the regular meetings of the directors should be 
 fixed and made known to the members of the association. 
 The directors may call special meetings, both of the mem- 
 bers in general, or of their own body. All directors must 
 have notice of such meetings, and acts of meetings 
 irregularly called or convened are invalid, so far as the 
 interests of a third and innocent party may suffer. The 
 rules of an association should specify carefully what num- 
 ber of directors shall constitute a quorum for the transac- 
 tion of business. Except by special provision, a director 
 cannot delegate his powers to another person ; but the 
 full board may delegate some portion of its work to a 
 committee appointed to attend to it. They should keep 
 full and accurate minutes of their transactions. 
 
 A director, as an individual, may make a contract with 
 the association, provided he secures no special advantage 
 not common to other members. A director becomes per- 
 sonally liable to the stockholders for losses when they are 
 occasioned by reason of fraud or connivance at fraud 
 upon the association. Directors are liable for embezzle- 
 ment, willful misconduct, breach of trust, or gross inat- 
 tention and negligence. They are not liable for mistakes 
 of judgment, provided they are honest and within the 
 scope of their powers and discretion. A director who is 
 a party to a fraud upon an association is barred from 
 sharing in its benefits. 
 
 Duties of Trustees. 
 
 The duty of trustees, where such officers are appointed, 
 is to hold and convey titles for the association under the 
 
 [200]
 
 ELECTION AND DUTIES OF OFFICERS. 
 
 order of the board of directors. Very few associations 
 now have trustees, this being regarded as useless, un- 
 necessary, and cumbersome. In some states where loans 
 are secured by deeds of trust instead of mortgages, a 
 trustee is one of the essential officers. 
 
 The Attorney : His Anointment, Duties, and Compensation. 
 
 Every association must have a duly authorized legal 
 adviser. He should be a regular officer of the associa- 
 tion. He usually is designated officially as attorney, 
 though he is sometimes termed solicitor, or counselor. 
 The manner of his appointment differs. In some associa- 
 tions he is elected at the same time, and in the same man- 
 ner, and for the same term, as the other officers. But more 
 frequently — and this seems much the better way — he is 
 selected and employed by the board of directors. In 
 making this appointment the directors cannot be too care- 
 ful. His position is one in which he may do great good 
 or harm to the association. There are emergencies in 
 which the welfare and even the continued existence of the 
 association will depend almost entirely upon his intelli- 
 gence, honesty, and faithfulness. 
 
 He should be a man of good standing in his profession. 
 He should have a moderate independent practice, not so 
 much as to absorb his time and thought to the exclusion 
 of the care of the affairs of the association, nor, on the 
 other hand, so moderate as to induce him to undertake 
 arbitrarily to make business out of the association. Many 
 an attorney, who has the real interests of his association 
 at heart, is the most active and efficient agent in securing 
 desirable members in its organization, and in so increas- 
 ing its list of shareholders from time to time as to put 
 it upon a permanent working basis. The attorney should 
 be a man of such character as will give the directors 
 some degree of pride in placing his name upon their 
 
 [201]
 
 CHAPTER XV. 
 
 reports and documents. In England the attorney must 
 be appointed and commissioned under the official seal 
 of the society. 
 
 Whatever may be the method of his appointment it is 
 the duty of the attorney to act as the legal adviser of the 
 association upon all legal matters connected with its 
 business. He advises the other officers and the directors 
 in regard to their functions and duties and the proper 
 disposition of the business of the association. He ex- 
 amines records and titles. He prepares or passes upon 
 the forms and blanks to be used by the association, and 
 gives his advice in the execution of all official documents. 
 
 The following article from The American Building 
 Association News, of Cincinnati, written by Hiram M. 
 Rulison, Jr., an attorney of much experience in building 
 association matters, covers this whole subject so well that 
 it is worth incorporating here. Mr. Rulison says : 
 
 "After the appraising committee has completed its work in actually 
 inspecting the property as to its value, it is then that the duty and 
 responsibility of the attorney begins. It really should begin before 
 even the work of the appraising committee begins, by carefully 
 preparing a plat showing the exact location of the property to be 
 appraised, so that no mistake could possibly be made and no excuse 
 could be offered, in case the wrong property should by any accident 
 be appraised for the loan. 
 
 In one or two cases where gross frauds were attempted to be 
 perpetrated, this was the excuse offered by the appraising committee; 
 that they had appraised the wrong property. This could be prevented 
 in every case by a careful preparation by the attorney of a proper 
 plat. Some attorneys think, in order to retain their position and 
 stand well with the board, that all they are called upon to do is to 
 report on the title as they find it, regardless of the actual value of 
 the property or the financial standing of the prospective borrower. 
 No greater mistake could possibly be made. 
 
 An honorable attorney will report all the facts as he finds them, 
 and if he does not do so he is violating a sacred duty he owes to the 
 hundreds of trusting depositors, who are relying upon his honor 
 and integrity to protect their hard-earned savings. One of the recent 
 
 [202]
 
 ELECTION AND DUTIES OF OFFICERS. 
 
 failures of a well-known association could have been avoided, had 
 the attorney who examined the title of the property on which an 
 $8,000 loan was granted, been honorable enough to inform the board 
 that the property was in a deep gully ; that it was taxed at only a 
 few hundred dollars, and had only recently been appraised for a loan 
 in another association at only $1,500. 
 
 A failure to disclose facts of this kind is nothing but downright 
 dishonesty, and would lead unsophisticated people to believe that 
 such an attorney was 'interested.' About the same time, a prospective 
 loan of about the same amount was defeated and the association 
 saved by the brightness and honesty of the attorney, who boldly 
 reported all the facts to the board and insisted upon a full examina- 
 tion of all the facts, which disclosed a similar state of affairs as first 
 referred to. The plunderers were exposed and the depositors' money 
 saved. 
 
 A careful attorney would report, if the fact came to his notice, 
 anything of an unfavorable nature that might be developed in regard 
 to the prospective borrower ; as for instance, that all the other prop- 
 erty which the party owned was covered by mortgage to its full 
 value ; that the limit was being stretched in the present instance ; 
 that other loans had been foreclosed ; that the present loan was a 
 mere shifting around, 'borrowing from Peter to pay Paul,' or any- 
 thing else that might come to his notice. No doubt the borrower 
 would denounce such an attorney for being a meddlesome man, but 
 the directors and depositors would bless him. The attorney should 
 always report the tax valuation of all property examined ; for 
 although the tax value is scarcely ever a fair criterion to measure 
 values by, still it is in most cases a great help. The officers of the 
 board and the appraising committee may be the most careful men in 
 the world, and may perform all their duties in the most careful 
 manner possible, but it will amount to nothing if the attorney is 
 derelict in his duties. 
 
 He cannot make too careful an examination. This he some- 
 times realizes when too late, especially when he happens to overlook 
 a mortgage, judgment, or a mechanic's lien, and is called upon to 
 make the amount good, as sometimes happens. If so much care is 
 required of an 'honest attorney' just think how completely an asso- 
 ciation is at the mercy of a man who is careless in his habits, or 
 who chooses to be dishonest and to work in collusion with a dis- 
 honest borrower; he could bankrupt the association in short order 
 more completely than cither the secretary or the treasurer. Only men 
 of honor, integrity, ability, and experience, should be entrusted with 
 
 [2031
 
 CHAPTER XV. 
 
 this great responsibility. Not the least of their duties is that of 
 approving the sufficiency of the sureties on the bond of officers. 
 And this should always be carefully attended to. 
 
 1 have even thought that an attorney should be somewhat familiar 
 with book-keeping, and that he should be willing to serve occasionally 
 on an auditing committee in order to see that this branch of the 
 business was properly attended to. In other words an attorney 
 should be one of the best posted men in all the doings and workings 
 of an association, including not only the law but the best methods of 
 management and business, and should be willing to assist in any and 
 every way possible ; for if any one person more than another receives 
 a benefit from the association, it is the attorney. 
 
 It is true that his compensation for the examination of titles is 
 small, and if that were all the pay he received he could hardly afford 
 to do the work for the money. But an obliging and accommodating 
 attorney who will not neglect his association, but will attend the 
 meetings with some degree of regularity and be on hand with a word 
 of advice when most needed, and let the people get in the habit of 
 meeting him on these occasions regularly, will find a steady flow of 
 business from this source alone, which will amply repay him for the 
 time and labor expended. 
 
 More associations are organized by attorneys for the sake of 
 getting the business, than by any other class of individuals ; and yet, 
 strange to say, the attorney is usually the one to be the first to lag 
 behind when there is any work to be done, unless a comfortable fee 
 is in sight. I have frequently heard of instances where the attorney 
 failed to attend the weekly meetings for months at a time. These 
 attorneys are not enthusiastic advocates of building associations. 
 
 On the other hand the attorney who attends regularly finds his 
 hands full of business, keeps his association out of useless litigation 
 by a little timely advice, and is one of the best friends of the 
 institution. 
 
 Many of the patrons and borrowers are working people whose 
 time is not their own, and it would be a manifest hardship on them 
 to compel them to lose a day to dance attendance on an attorney's 
 convenience, when with a little effort on his part he could have the 
 necessary papers signed at the association and thus oblige a client, 
 as well as save him a day's wages. 
 
 I do not say this could always be done, but sometimes it certainly 
 can be, especially where there are a large number of mechanics who 
 are compelled to sign a release of any claim on a building before 
 they can draw pay for labor or materials. It would be a hardship to 
 
 [204]
 
 ELECTION AND DUTIES OF OFFICERS. 
 
 compel six or eight men to lose a day to come to a lawyer's office 
 when all the business could be done at the association without loss 
 of time. A building association is certainly a co-operative institu- 
 tion, and every one connected with it should be willing to do his part 
 and his duty. On the other hand directors and other members should 
 not expect, (as is too often the case) that the attorney is bound to 
 attend to their private business at building association reduced rates. 
 It is true he may be able to cut rates on some on the score of friend- 
 ship and old acquaintance, and this he undoubtedly will and does do, 
 but an attorney would have to be a person of herculean capacity for 
 work, to be able to make both ends meet and pay expenses, if all his 
 work were done at these rates. This, however, is a fact that is not 
 always taken into consideration by members, and sometimes is pro- 
 ductive of hard feelings, if the attorney will not, or cannot, consent 
 to work for all his friends at cut rates. The association, too, 
 frequently criticises an attorney's bill for foreclosing a mortgage, 
 looking upon this expenditure as a dead loss, yet it is one of the 
 most important, and sometimes one of the most difficult of an 
 attorney's duties, and sufficient compensation should be allowed to 
 insure careful and correct work on the part of the attorney. 
 
 All questions have two sides, and while an attorney should be 
 able and willing to do his duty thoroughly and conscientiously, he 
 should at the same time receive such treatment from the association 
 and its membership, as will at least assure him that they appreciate 
 the interest he may take in their welfare, and that they believe that 
 the 'laborer is worthy of his hire.' " 
 
 If the attorney does not receive a stated salary, the 
 directors should fix a system of fees to be paid him for 
 the examination of titles and other services. Some asso- 
 ciations have a graded system of fees for the examination 
 of titles. If a member borrows one share, he is taxed a 
 certain amount for the examination of his title to the 
 property he mortgages. If he borrows more than one 
 share, he is taxed a proportionate amount for each addi- 
 tional share. This rule is manifestly unjust to attorneys, 
 for it requires as much time and work to make an exam- 
 ination of a title if but a single share is borrowed on it, 
 as if it were security for ten or twenty shares. Since the 
 
 1205]
 
 CHAPTER XV. 
 
 examination of titles requires care and involves respon- 
 sibility, an attorney should have a good, reasonable fee. 
 
 For instituting and defending suits, and any other 
 unusual legal business, special fees should be fixed by the 
 directors. 
 
 Bonds of Officers. 
 
 It is customary to require bonds from certain officers 
 of associations. Where the statutes give no direction in 
 this matter it should be fixed by the association itself in 
 its constitution and by-laws. The particular object of a 
 bond is, to enforce responsibility, especially with those 
 officers who have the handling and custody of the funds, 
 or of any officer whose trust exposes him to temptation 
 and the association to the possibility of loss. The by- 
 laws or rules should specify which officers shall give bond 
 and the amount of bond required in each case. The 
 approval of bonds usually rests with the directors. A 
 bondsman is liable only to the extent of the precise terms 
 of the bond. All officers who are required to give bond 
 should have them ready at the first meeting after their 
 election and hand them in at that time. Bonds should be 
 carefully drawn so as to meet all legal requirements. Each 
 officer who is to give bond should furnish at least two 
 first-class sureties. 
 
 The president should give a bond of from $2,000 to 
 $4,000; the vice-president, $2,000 to $4,000; the secre- 
 tary, $2,000 to $5,000; the assistant secretary, $500 to 
 $1,000; the treasurer, $5,000 to $10,000; members of 
 appraising committee, $1,000 to $3,000, each; the 
 attorney, $5,000 to $10,000. Members of special com- 
 mittees should also in some cases give bond with amounts 
 in proportion to the duties and responsibilities devolving 
 upon them. Officers and directors of an association 
 should not be permitted to become bondsmen for each 
 
 other. 
 
 [206J
 
 ELECTION AND DUTIES OF OFFICERS. 
 
 Surety Bonds. 
 
 With the change brought about by the organization of 
 companies formed for the purpose of offering surety to 
 the clients, the modern method has been to have the 
 officials of building associations bonded in a responsible 
 bonding or surety company. These companies issue bonds 
 covering the association's financial affairs from any loss 
 on embezzlement of any of its officials, at a stated regular 
 annual premium. The expense for these bonds is paid 
 by the association, and the form of bonds issued by these 
 companies should have careful investigation by the 
 attorney of the association to see that they are in proper 
 legal form. 
 
 In some of the states these bonds must be filed with 
 the state officials, after they have been secured, to keep 
 these bonds on file for the inspection of the public and for 
 their protection. In those states where this is not pro- 
 vided for, the bonds of the officers are usually kept in 
 custody by the secretary, who places them with the other 
 papers of the association, excepting that of his own bond, 
 which is usually held by the president of the association. 
 In some states the state authority having supervision of 
 building associations is by statute made the custodian of 
 all bonds given by the officers of an association. 
 
 Responsibilities of Officers. 
 
 No person should be selected as an officer of a build- 
 ing association who is from any cause disqualified for a 
 faithful discharge of the functions of his office. Whoever 
 accepts a position as an officer should faithfully and 
 conscientiously discharge the duties imposed upon him. 
 I fence, by agreement among the members of an associa- 
 tion, certain provisions are usually made in the constitu- 
 tion or by-laws for the punishment of such lapses from 
 duty on the part of officers as are not of a criminal 
 character. 
 
 12071
 
 CHAPTER XV. 
 
 Thus it is often provided that the officers shall be sub- 
 ject to fines for certain classes of offenses or to removal 
 for certain other offenses. The rules may be so drawn as 
 to apply to cases where the offense is not directly against 
 the interests of the association or its members, but may 
 simply affect the moral character of the officer and his 
 standing in the community, thus rendering him unpopular 
 and unfit for his position of trust in the association. 
 
 An officer who becomes delinquent in his position as a 
 member of the association, may be considered as unfit to 
 occupy a place as an officer. The power of fixing penal- 
 ties, such as fines or removal from office, may be fixed in 
 the board of directors, or may rest in the association at 
 large. The criminal liability of officers of a building 
 association is the same as that of officers of other corpora- 
 tions or of individuals generally. No man, whatever his 
 position, is permitted to appropriate to his individual use 
 or advantage that which is not his own or to which he 
 has not obtained a legal right. 
 
 Remuneration of Officers. 
 
 What officers shall receive compensation is determined 
 by the provisions of the constitution and by-laws. It is 
 the general custom to leave the amount of compensation 
 to be paid to the different officers to the discretion of the 
 directors who fix the amount by special contract with the 
 respective officers. When the salary is fixed by the con- 
 stitution or by-laws the officer may claim the full amount 
 upon the strength of that record alone. If his duties 
 become enlarged, and the salary is then inadequate he 
 cannot claim additional compensation. His only remedy 
 lies in securing a change in the rules or in resigning his 
 position. 
 
 [206]
 
 ELECTION AND DUTIES OF OFFICERS. 
 
 In cases where the compensation is not fixed by the 
 constitution or by-laws, and where no express contract 
 has been entered into, it rests in the discretion of the 
 board of directors as to whether any compensation shall 
 be allowed or not, and to what amount. It should be 
 borne in mind that a building association is an organiza- 
 tion for the mutual advantage of its members, and the 
 fundamental idea is that each member shall work for the 
 benefit of all. On this account it is expected that each 
 member hold himself ready to contribute his personal 
 services within reasonable limits. Therefore, even those 
 who are in official position are expected to render a fair 
 proportion of service without remuneration and that they 
 are to be compensated only when it would be unjust to 
 them as individuals to expect their services without 
 remuneration. 
 
 A salaried officer cannot claim extra compensation for 
 work done in the line of his duty. Officers must look 
 only to the funds of the association for their remunera- 
 tion, and cannot recover the amount of their salaries from 
 individual members or directors. 
 
 Salary of Directors. 
 
 It has been the almost universal custom that directors 
 should serve without remuneration. Lately the question 
 of allowing them pay for their services is being seriously 
 considered. Indeed, in some associations directors are 
 paid for their services either directly or indirectly. Some 
 of the considerations urged in favor of the payment of 
 directors may be mentioned. Their services are indispen- 
 sable to the operations of an association. It is wholly 
 impracticable for all the members of an association to 
 come together at each meeting and attend to the receiving 
 of money and all its routine business operations. Even if 
 they could so come together, it would be impracticable 
 
 [209]
 
 CHAPTER XV. 
 
 for such a body to do such work. Many of them do not 
 know how to do it, and so many coming together they 
 would simply be in one another's way. "What is every- 
 body's business is nobody's business." 
 
 On account of these circumstances associations are 
 compelled to delegate authority to certain selected mem- 
 bers to attend to the prosecution of their business. These 
 selected members are called directors. Because certain 
 stockholders are selected to serve in the capacity of direc- 
 tors does not make it any more possible or convenient 
 for them to attend the regular meetings to look after the 
 business than it would be for any other stockholder not 
 so selected. They must lose their time and comfort, and 
 thus interfere to a greater or less extent with the prose- 
 cution of their own private business and interests. Again, 
 those stockholders selected to act as directors are so 
 selected because they have that intelligence and 
 knowledge that fit them to attend to such business. Intel- 
 ligence, knowledge, and experience are valuable. Hence, 
 other things being equal, a director's time is likely to be 
 of even more value than that of the average stockholder. 
 
 The directors being charged with the actual manage- 
 ment and disposition of the business of the association, 
 they must carry a responsibility unknown to the other 
 stockholders. The directors are the official representa- 
 tives of an association. As such they must not only 
 execute its routine business but must represent it in all 
 incidental matters and in emergencies. They are the 
 sources of information to the stockholders and to out- 
 siders. Their work on committees involves them in many 
 duties outside of the regular meetings. They must ac- 
 count faithfully for all moneys coming into the posses- 
 sion of the association ; they must keep up the collections 
 and act promptly in case of delinquents; they must make 
 deposits and investments; they must decide upon and 
 
 [210]
 
 ELECTION AND DUTIES OF OFFICERS. 
 
 declare dividends; they must pass upon premium and 
 interest rates; they must accept or reject borrowers and 
 mortgages and other securities; they are compelled to 
 keep full records of all their doings in the minute and 
 account books. That every matter shall have due atten- 
 tion they are compelled to bind themselves to a certain 
 order and routine in what they do. Finally, they are 
 required to keep their members informed officially by 
 regular reports of all their transactions, and of the con- 
 dition of the affairs of the association in full detail. 
 
 Many members of the association, not having had ex- 
 perience as directors, and not being close observers or 
 very thoughtful about the matter, do not appreciate the 
 amount and quality of service required. Indeed, some 
 are inclined to look upon the position as a sinecure, a 
 place of honor, and to be sought after on that account. 
 
 Although directors are put to all the inconvenience and 
 labor indicated above, they have no more share in the 
 benefits arising therefrom than have the other stock- 
 holders. It is argued that an association is a business 
 enterprise. The men and women who compose the mem- 
 bership of the association do not work for their own 
 employers except for wages. They do not give their own 
 services without pay. On the other hand they are the 
 employers of the directors of their association. Should 
 they require their own employes to serve without pay? 
 
 But if directors are to be paid it must be decided how 
 much, and upon what basis. This is answered in a gen- 
 eral way by saying that it must be only for services actu- 
 ally rendered. In the operations of an association each 
 officer, each director, has an assignment of actual duties 
 to perform, and if paid at all he should be paid in pro- 
 port if >n to the amount, the character, and the responsi- 
 bility of his work. In certain private corporations it has 
 become the custom to pay each director a certain stated 
 
 [2111
 
 CHAPTER XV. 
 
 sum for each meeting he attends. When absent from a 
 meeting he receives no pay. It is argued that the intro- 
 duction of this system into the operations of a building 
 association would have a good effect in two ways. First, 
 it would secure the regular attendance of directors; 
 second, it would secure better service from directors ; for, 
 by regular attendance upon the meetings and participa- 
 tion in the business, each director will have a better un- 
 derstanding of all the plans and details, and hence, his 
 services will be more valuable. 
 
 There are three things to consider in fixing the amount 
 of remuneration, if it should be decided that directors 
 shall be paid. The pay must be somewhat in proportion 
 to the number of meetings, the amount of business 
 transacted, and the number of directors. Three proposi- 
 tions have been made in this connection : ( i ) That each 
 director be paid a stated sum for each meeting he attends ; 
 (2) That the directors be paid a certain per cent upon the 
 amount of business transacted; (3) That each director 
 be paid a stated salary per year or per term of service. 
 
 This opens up a large field for discussion which it 
 would be inappropriate to attempt to occupy here. This 
 one practical suggestion may be made, to wit : — Let the 
 number of directors be adapted to the actual needs in the 
 transaction of the business of the association just as in 
 any other business enterprise. Let the number of meet- 
 ings also be adjusted so as best to meet the requirements 
 of the association. Then upon some basis let the direc- 
 tors be paid for actual services rendered. It will certainly 
 happen that the agitation of this question will lead to the 
 introduction of better business methods in the manage- 
 ment of associations, and it may tend to lessen their num- 
 ber, to concentrate the business into fewer hands, to fix 
 responsibility more closely, and possibly to the establish- 
 ment of regular offices open during all business hours as 
 
 [212]
 
 ELECTION AND DUTIES OF OFFICERS. 
 
 well as on certain evenings for the transaction of business, 
 the same as in banks or private corporations, and already 
 in existence in some building associations. 
 
 Salary of Secretary. • 
 
 What is said above does not apply to the salary of the 
 secretary. The salary of this officer should not be based 
 upon the work done in the meetings. His duties, even in 
 this respect, are very exacting. He must attend all meet- 
 ings, keep the accounts of receipts and disbursements, and 
 also the minutes of the proceedings. But much the 
 greater proportion of his work is outside of the meetings, 
 in posting his books, calculating dividends, and attending 
 to the innumerable details connected with his office. It 
 is very essential that a secretary should be competent and 
 faithful, and such a secretary should be liberally paid for 
 his work. In some states the active executive officer of 
 an association is designated as "secretary." In Massa- 
 chusetts it is the "treasurer," and in other places he is 
 designated as "manager." 
 
 [218] 
 II
 
 CHAPTER XVI. 
 
 Powers and Liabilities. 
 
 General Powers. 
 
 A building association, being in the nature of a joint- 
 stock corporation, possesses the general powers belonging 
 to corporations of that class. These are usually laid 
 down in the statutes of the different states about as 
 follows : 
 
 i. To have perpetual succession; 
 
 2. To have a corporate seal ; 
 
 3. To make contracts and to hold real estate in a cor- 
 porate capacity; 
 
 4. To sue and to be sued ; and 
 
 5. To make rules for their own government. 
 
 An association may not go beyond its statutory limita- 
 tions and privileges and assume functions and preroga- 
 tives not granted in its charter. Such action would 
 jeopardize the continuance of the charter itself and tend 
 to render all acts of the association invalid. 
 
 Perpetual Succession. 
 
 The right of perpetual succession is essential to the 
 purpose of the association, for, though the membership 
 and the officers of the association may be changed more 
 or less from time to time, the association itself must 
 maintain an organic existence until it has completed its 
 course. Otherwise it would be impossible for such an 
 organization to carry out its mission. While the associa- 
 tion exists, it remains in the eye of the law an entity, 
 notwithstanding any changes that may take place from 
 time to time in its elements. 
 
 [214]
 
 POWERS AND LIABILITIES. 
 
 The Corporate Seal. 
 
 The seal of an association is the official stamp by which 
 the papers executed as a part of its official business are to 
 be identified and verified. The seal must be in the form 
 of a stamp which will make an impression into wax or 
 paper. Its custody and the manner of its use should be 
 prescribed in the rules of the association. The affixing 
 of the seal to an instrument should be accompanied by 
 the official signatures of the president and the secretary. 
 Some associations require the signature of other officers 
 also. There has been much litigation in reference to the 
 use of corporate seals, and the rule has been established : 
 "Wherever the law requires a natural person to attach a 
 seal to the instrument executed by him, in like cases only 
 would it be necessary for the corporation to execute a 
 like instrument by a corporate seal." The mistake should 
 not be made that an association is not liable for contracts 
 that are not verified by its seal. On the contrary it is 
 liable for all undertakings that are expressed or implied 
 by its acts. 
 
 It must not be understood that every association is 
 required to possess a seal. The possession of a seal is 
 essential only when required by the statutes or the con- 
 stitution of the association. As a matter of fact a large 
 proportion of the associations in operation do not use 
 seals. 
 
 Contracts and Agents. 
 
 An association may make contracts and purchases and 
 sales directly through its corporate meeting. But, like 
 other corporations, it usually acts through officers and 
 agents, as heretofore explained in the discussion of the 
 duties of officers. It is necessary that the rules provide 
 fully for the proper execution of all contracts, that they 
 designate the manner in which they are to be made, and 
 
 [216]
 
 CHAPTER XVI. 
 
 the officers who are empowered to act for the association. 
 When officers are once appointed with power to make 
 contracts then the general laws relating to the subject of 
 agency apply to associations, their agents, and third 
 parties. 
 
 Concerning appointments of agents, it has been held 
 that an agent may act without written authority, or any 
 authentication by the corporate seal of an association if 
 a seal is used, provided his appointment is regular in 
 other respects ; that any person, even a minor, may by due 
 appointment become an agent of an association ; and that, 
 in certain cases, a member of an association as its agent 
 may deal with himself or with himself as the agent of a 
 third party, provided no special advantage is secured on 
 either side through the arrangement. 
 
 Since the appointment of the officers of an association 
 is a matter of public record, third parties in dealing with 
 them must satisfy themselves of their authority to act as 
 agents. So long as agents of associations act within the 
 limits of the authority conferred upon them the associa- 
 tion is bound by their acts. If an agent makes contracts 
 in excess of his authority, they may afterwards be ratified 
 and accepted by the association or its board of directors. 
 
 In order to make his contracts in due form and bind- 
 ing, an agent must specify in the papers which he ex- 
 ecutes that the writing is done by the hand of an agent. 
 Notice properly served upon an agent is a notice to the 
 principal in the transactions for which he is employed. A 
 notice conveyed through one director to the board at a 
 regular meeting is a notice to the association. Or a 
 notice conveyed to any director while engaged in the 
 business of the association is a notice to the association, 
 but is not a legal notice if given to him when not so 
 engaged. 
 
 [216]
 
 POWERS AND LIABILITIES. 
 
 A notice published in a newspaper is not a legal notice 
 unless it relates to matters required to be so published. 
 Private knowledge on the part of a director or officer, 
 obtained from rumor or in any other accidental way, 
 cannot be regarded as an official notice to the association. 
 A new board of directors is presumed to know all the 
 facts and circumstances known by or communicated to 
 the previous board. An officer or agent of an associa- 
 tion cannot delegate his authority to another person, ex- 
 cept where some special provision is made to that end. 
 
 Suits. 
 
 As a necessary result of its power to make contracts 
 an association has the right to enforce such contracts by 
 suit if necessary. On the other hand as a party to these 
 contracts, the association itself is liable to legal process 
 for the violation of any of its obligations. An associa- 
 tion may bring suit against individuals or corporations to 
 enforce its legal and equitable rights; and may in like 
 manner bring suit against its own delinquent officers and 
 members. On the other hand it is liable to be sued by 
 outsiders or by its own officers and members for any 
 actionable neglect or delinquency on its own part. 
 
 No general rule can be given for the issuing of pro- 
 cesses for and against building associations, since the re- 
 quirements vary under the laws of the different states. 
 These legal requirements must, of course, in all such 
 cases be carefully observed. Such matters should be at- 
 tended to by the attorneys of associations. To enter upon 
 a general specification and discussion of the grounds upon 
 which suits may be brought by or against associations 
 would be an undertaking too elaborate and foreign to the 
 purpose of this work. These matters are well defined 
 under the general and special legislation of the different 
 states. 
 
 [217]
 
 CHAPTER XVI. 
 
 Rules. 
 
 Two general principles may be laid clown concerning 
 the adoption of rules for the government of an associa- 
 tion. The first is that the rules must conform to the 
 constitution and laws of the United States, and also of 
 the state in which the association exists. And the second 
 is that they must conform to the purposes for which the 
 association is organized. Forms for constitution and by- 
 laws are printed in the appendix. 
 
 Special Powers. 
 
 Associations, as a rule, in the different states are 
 clothed with certain special powers. What these powers 
 may be for any particular association in any particular 
 state must be learned from an examination of the statutes 
 in that particular state and of the charter of that particu- 
 lar association. When the statutes are silent upon any 
 particular power, neither permitting nor prohibiting it, 
 or if doubt exists, the legal rights of an association in the 
 premises may be determined by application to the at- 
 torney general, or by bringing action before the courts. 
 
 Among the special powers which an association may 
 or may not possess under the statutes and its charter, or 
 independent of these, are the rights to borrow money, to 
 acquire and to hold real estate, to build houses, etc. But 
 some special powers are conferred upon associations gen- 
 erally, such as the authority to impose and collect fines. 
 To determine the special powers of any association is a 
 matter for legal inquiry, and in all cases should be re- 
 ferred to the proper legal authorities. 
 
 Dissolution. 
 
 In the case of a terminating association it becomes 
 dissolved as a matter of course at the expiration of the 
 time for which it was incorporated and its charter 
 
 [218]
 
 POWERS AND LIABILITIES. 
 
 granted, or when its stock matures. In some states the 
 period of existence is fixed by the statutes. If the mem- 
 bers of an association, or an essential portion of them 
 should die, it would terminate its existence. The mem- 
 bers may, by unanimous agreement, surrender the charter 
 of an association and its franchises. 
 
 -It has been held that, where there is no express pro- 
 vision on the subject, a majority of the members may, by 
 resolution, surrender the charter and dissolve the associa- 
 tion. But they cannot do this against the resistance of 
 the minority. An association is not dissolved by mere 
 neglect or indifference on the part of the members which 
 leads them to fail in the discharge of their duties. 
 
 The insolvency of an association, or the refusal of 
 members to keep up their stock-payments, or the omission 
 to elect officers, does not work a dissolution of the asso- 
 ciation. Associations may be dissolved by act of the leg- 
 islature or decree of court, where such dissolution does 
 not impair the obligation of contracts. Such dissolution 
 is usually brought about by the state itself, caused by the 
 non-use or the mis-use of the franchises of the association. 
 
 In all cases when the grant of the charter is found to 
 have been defective in any material part, or when it has 
 been granted to persons imperfectly qualified to receive it, 
 or upon improper representations, it is competent for the 
 state to rescind its action and to dissolve the association. 
 In case of the mismanagement of the affairs of an asso- 
 ciation, or where the system of the operation is such as to 
 involve losses, the courts may, upon proper application, 
 appoint a receiver to take charge of its affairs and, if 
 necessary, to wind it up. In the dissolution of an associa- 
 tion, or the winding up of its affairs, many questions of 
 equity and of law are involved, which must be anticipated 
 in the rules, or be submitted at the time of dissolution to 
 proper judicial or legal authority. 
 
 [210]
 
 CHAPTER XVII. 
 
 Practical Questions Answered. 
 
 Explanatory Note. — There are numerous questions which con- 
 tinually arise in reference to the practical workings of associations 
 which require specific answers. A number of the more important of 
 these are grouped together and answered in this chapter. In this 
 same connection various practical suggestions are made which will 
 be found of value in the transaction of the actual business of 
 associations. 
 
 Borrowing Money. 
 
 Who may borrozv? It is generally understood that 
 none but members may borrow money from an associa- 
 tion. This is true, but it sometimes leads to a misunder- 
 standing. While it is a fact that only members may bor- 
 row, it is also true that any person may become a member 
 at any time with but trifling cost, and may immediately 
 become a borrower. The constitution and by-laws of an 
 association contain the terms and conditions upon which 
 its money is loaned, and are, in a sense, a portion of the 
 contract or agreement between the borrower and the 
 association. Hence the necessity of every borrower be- 
 coming a member and affixing his signature to the consti- 
 tution and by-laws or to a special card for that purpose. 
 With this understanding of the matter, the answer may 
 be given that anybody may borrow money from an 
 association. 
 
 For what purpose may money be borrowed? As indi- 
 cated in a previous chapter,* many persons suppose that 
 
 * See Chapter XIII. 
 
 [220]
 
 PRACTICAL QUESTIONS ANSWERED. 
 
 money cannot be borrowed from a building association 
 except for building purposes. As there explained, an 
 association has nothing to do with the purpose for which 
 money is borrowed. The sole duty of the association is 
 to see that in making the loan, it is protected by ample 
 security. A member therefore may borrow money for 
 any purpose whatever. 
 
 What amount may be borrowed? The financial transac- 
 tions of an association with its members are always based 
 upon shares. Shares are for different amounts, and mem- 
 bers are allowed to own different numbers of shares in 
 different associations. But the question may be answered 
 in a general way by saying that a member may borrow 
 the full amount of the paid-up value of the shares he 
 holds, or any part thereof, provided the security he offers 
 is satisfactory. Thus, if the shares of an association are 
 $500 each, and a member is a subscriber for three shares, 
 he may borrow $1,500 or any part thereof. But in order 
 to avoid complications in accounts, most associations 
 have the rule that money must be borrowed in even hun- 
 dreds of dollars. 
 
 What must be the character and amount of security ? 
 This is determined by the rules of associations. Generally, 
 however, the security required is first mortgage on real 
 estate in the county where the association operates, or an 
 assignment of the stock of the association on which there 
 has been paid in more than the amount of the loan. The 
 rule is to make no loans on property already encumbered, 
 no matter how valuable the property or small the encum- 
 brance. But the money borrowed may be used to raise 
 an encumbrance on the property offered as security. Some 
 associations accept as collateral security, government and 
 corporation bonds, first mortgage notes, etc. 
 
 An association will usually loan money to the amount 
 of about two-thirds of the value of the property offered 
 
 [221]
 
 CHAPTER XVII. 
 
 as security. The value of the property is determined by 
 an appraising committee, composed of members of the 
 hoard of directors of the association. 
 
 W hat is the cost of a loan? The cost of a loan is made 
 up of the incidental expenses, the interest, and the pre- 
 mium, if any is charged. The incidental expenses con- 
 sist of the fees for appraising property, attorney's fees for 
 examining the title and preparing and recording the 
 mortgage, traveling expenses if there should be any, and 
 other such incidental matters. The rate of interest is 
 fixed in the rules of the association, and is generally at so 
 many cents per week or month on each share or part 
 thereof loaned. The premium is the amount which the 
 borrower bids when money is sold for the privilege of 
 borrowing. The premium is in the form of so many 
 cents per week on each share or part thereof borrowed, 
 in addition to the rate of interest fixed by the rules of 
 the association. The payment of one cent per week on 
 $roo is equivalent to about one-half per cent per annum 
 interest. With this as a basis, there will be but little 
 difficulty in calculating the cost of a loan when interest 
 and premium are combined. 
 
 Some associations have a rule to the effect that bor- 
 rowers are not required to draw out the entire loan at 
 first but may draw it in installments as needed, and that, 
 in such cases, interest will be charged only from the time 
 that the money is actually received. This arrangement 
 is an especial convenience to persons who are building 
 and who desire to make payments as the work progresses. 
 It is also convenient to persons who have obligations to 
 meet at stated periods as, for instance, notes in bank fall- 
 ing due at intervals. They can in this way use their 
 money in installments without risk or waste. But the 
 more general rule is that the full amount of interest and 
 premium is charged up from the time the loan is made 
 
 [222]
 
 PRACTICAL QUESTIONS ANSWERED. 
 
 and the security is given, whether all. the money is drawn 
 out at that time or not, provided of course, that the 
 money is on hand and ready to be paid to the borrower. 
 
 Hoiv are loans repaid? As stated before, loans are 
 based upon shares. A borrower must keep up his regular 
 weekly (or monthly) payments of dues, and in addition 
 to this, the regular weekly (or monthly) installments of 
 interest and premium as they fall due. We will suppose 
 that a member has secured a loan of $1,000, that the 
 regular dues are $1.00 per week on each share of $500, 
 that the regular interest is 12 cents per week per $100, 
 and that the premium which he agreed to pay is at the 
 rate of 2 cents per week per $100. His regular weekly 
 payments therefore would be: dues $2.00, interest $1.20, 
 and premium 20 cents; total $3.40. If payments should 
 be made monthly instead of weekly, there would, of 
 course, be a proportionate increase. The amount to be 
 paid regularly, however, will vary from time to time 
 according to such arrangements as the borrower may 
 make. In some associations he may pay more or less 
 than the regular amount of dues per week. He may pre- 
 fer to pay interest and premiums in advance. When this 
 rule holds, the amount he pays in goes to his credit upon 
 his shares and begins to draw dividends, which are usual- 
 ly compounded semi-annually the same as are all other 
 deposits. The greater the amount he pays in in install- 
 ments the more quickly of course will his credits and 
 dividends together amount to the $1,000 which is neces- 
 sary to pay off his loan. 
 
 How much time is required to pay up a loan? This 
 will depend upon four things: (1) the rate of interest; 
 (2) the amount of the regular weekly (or monthly) pay- 
 ments; (3) the amount of premium; (4) the amount of 
 dividends earned by the association.
 
 CHAPTER XVII. 
 
 Where the rate of interest, amount of premium, and 
 the earnings of an association are nearly uniform, then of 
 course the length of time will depend simply upon the 
 amount of the payments. 
 
 Advantages of a Building Association Loan. With 
 many a person it is easy to pay off a loan in installments 
 where it would he impossible to meet the entire indebted- 
 ness at once. Money borrowed from private persons or 
 corporations is usually loaned on mortgage for one year. 
 At the end of the year it must either be paid or a new 
 loan must be negotiated which involves a repetition of all 
 the original trouble, expense and anxiety. The time when 
 a note is coming due which is secured by a mortgage on 
 one's home is not a pleasant day to which to look for- 
 ward. It so often happens that the money which the 
 borrower thought he would have saved up against the 
 evil day is not forthcoming. Indeed, not infrequently the 
 borrower finds difficulty in paying even the interest. In 
 borrowing from a building association all this annual or 
 periodical uneasiness is avoided. Each week or month 
 takes care of itself, the burden is evenly distributed, and 
 one can readily regulate his habits and manner of life to 
 conform to his necessities. Week by week the regular 
 installments are paid, almost without feeling them, and 
 the loan, which would otherwise be a hardship if paid in 
 one sum, is carried and ultimately paid off with ease. 
 
 In borrowing from an association a member should 
 make such arrangements for his payments as are not 
 likely to become burdensome. It is better to arrange to 
 make them as low as is consistent with safety. Then if, 
 from time to time, the borrower finds that he can pay 
 more than the agreed amount let him do so. And the 
 amount thus paid in advance will not only stand to his 
 credit but, in many associations, will draw dividends in 
 his favor. Moreover, by thus getting some distance 
 
 [2241
 
 PRACTICAL QUESTIONS ANSWERED. 
 
 ahead with his payments, in case of sickness, loss of work, 
 or some other misfortune, he may cease making payments 
 for a time without falling in arrears or being in danger of 
 losing his property. 
 
 If a borrower unexpectedly finds himself able at any 
 time to pay off all, or a considerable portion of his loan, 
 it is better for him to do so. He not only relieves himself 
 of an obligation by so doing and, in most cases stops his 
 interest, but he puts himself in such position that he may 
 begin to accumulate money for himself which may be 
 profitably invested in the association or in some other 
 way. 
 
 Contingent or Reserve Fund. 
 
 Provision for a reserve fund is fixed by statute in 
 nearly all of the states and territories. The amount usu- 
 ally prescribed by the law of the various states has been 
 fixed at five per cent of the assets of the association. Many 
 of the leading authorities are of the opinion that this 
 should be increased to ten per cent. The good results 
 secured from the establishment of a reserve fund are seen 
 in the practical operation of this idea in the State of Ohio. 
 In 1 89 1 a law was passed specifically providing for this 
 fund. Five per cent was to be set aside annually of the 
 net profits, until the amount of five per cent of the loans 
 had been reached. The money placed in this fund is 
 loaned out, as are the other funds of the association, so 
 that the members have an adequate protection, and at 
 the same time receive an income from this source. In 
 many of these associations a sufficient income is derived 
 therefrom to cover the operating expenses. Thus it will 
 be seen that the membership of an association having an 
 interest in this fund will become a more permanent one 
 than that association which has no such provision. 
 
 [22r,|
 
 CHAPTER XVII. 
 
 Undivided Profits. 
 
 In the periodical apportionment of the profits of the 
 association there is nearly always a little residue left over, 
 from the fact that it is a very laborious undertaking to 
 calculate and divide the gains down to a very small frac- 
 tional part. The custom is to fix the dividend at such a 
 rate as approximates closely to the gains of the associa- 
 tion, but which may be expressed either by a whole num- 
 ber or a mixed number in which the fraction is of a con- 
 venient denomination to use in calculations. To illustrate : 
 The actual gains of an association might be 5 59 /ioo per 
 cent. Assuming that Yz of one per cent is placed to the 
 credit of the contingent fund, this would leave 5V100 
 per cent. To calculate the dividends of each member at 
 this rate would put upon the secretary a large amount of 
 very laborious figuring and involve no little liability to 
 error. To avoid this the rate of the dividend would 
 probably be fixed at 5 per cent. This leaves 9 /ioo of one 
 per cent of the profits for that term which are undivided. 
 Also in the calculations there will be some small undi- 
 vided profits. 
 
 Some associations pass these fractional portions of un- 
 divided profits to the credit of the contingent fund ; others 
 place them in what is called the undivided profit account. 
 When these are carried in the latter way the amounts 
 left over from period to period should be added to the 
 gains for each closing period before the dividends are 
 declared. Where the undivided profits are passed to the 
 credit of the contingent fund, they, of course, become 
 liable to all the conditions covering that fund. 
 
 The new Ohio law provides for the establishment of 
 an undivided profit account which has been of great 
 service to the associations. 
 
 [226]
 
 PRACTICAL QUESTIONS ANSWERED. 
 
 Quick Assets. 
 
 Among the innovations in the work of the building-, 
 loan and savings associations is that institutions have 
 been compelled to modernize to meet the demands of 
 their membership. With the growth of these associa- 
 tions, the necessity of having available securities at the 
 time of industrial depression or other causes, securities 
 which would be found marketable, the desire has been 
 to invest a certain portion of the assets in so-called "quick 
 assets," such as government or municipal bonds. In 
 some states legislation has been passed permitting the 
 associations to invest a certain percentage of their total 
 assets in such securities. This naturally means that the 
 income yield from this line of investment will be less 
 than that made upon the real estate holdings which are 
 productive of better results. 
 
 The experience of associations investing in high-grade 
 bonds as a quick asset has not been as satisfactory as was 
 anticipated. In the last two or three financial crises 
 which have been experienced in this country, it was found 
 that even the highest grade of security of this character 
 could not be negotiated on any acceptable terms. Other 
 types of financial institutions with heavy investments in 
 high-grade bonds, which are usually considered a quick 
 asset, discovered that in an acute financial crisis, ready 
 money disappeared from the market, and no buyers could 
 be found for even the highest grade of government or 
 municipal bonds. Another very interesting fact was 
 disclosed in these times of financial depression, and that 
 is, that no type of financial institution suffered as little 
 inconvenience or interruption to its regular business on 
 account of the depression as did the building associations. 
 As a rule these institutions have gone through crises of 
 
 1 227 1
 
 CHAPTER XVII. 
 
 this character with less loss and less inconvenience and 
 interruption to their business than any other type of finan- 
 cial institution. 
 
 Since the establishment of the Federal Reserve Bank- 
 ing system in this country, the possibility of financial 
 panics or business depression from financial causes has 
 been largely eliminated. During the progress of the 
 Great World War many building associations invested 
 large sums in Government bond issues, but this was done 
 for the double motive of patriotism and desire to aid the 
 government, and as a business proposition to find a safe 
 investment for funds not required by borrowing mem- 
 bers during the period when home building was largely 
 suspended. The object of holding these securities as a 
 quick asset had very little weight or influence with the 
 associations making these investments. 
 
 Mortgages: Custody, Recording, Etc. 
 
 Mortgages should be placed upon the records of the 
 county in which the mortgaged property is located. This 
 should be done immediately after their execution in order 
 to secure the proper priority of lien. One of the officers 
 of the association (president, secretary, or treasurer) 
 should be entrusted with this duty. It is advisable to 
 provide this officer with a book containing certificates of 
 record to be signed by the recorder, clerk, or prothono- 
 tary, with whom the mortgage is left for recording. The 
 blank for these certificates should be about as follows : 
 
 Received for record 192 at o'clock 
 
 minutes M. from The Building and Loan Associa- 
 tion, a mortgage given by to said associa- 
 tion, dated 192 
 
 of County 
 
 [228]
 
 PRACTICAL QUESTIONS ANSWERED. 
 
 When a mortgage has been fully satisfied it should 
 be discharged forthwith by a certificate of satisfaction by 
 the president, or president and secretary, as the rule may 
 be, for entry upon the county records. If this certificate 
 is indorsed upon the back of the mortgage it may be in 
 this form : 
 
 The foregoing and within mortgage has been fully paid and satis- 
 fied and the recorder (clerk, or prothonotary, as the case may be) 
 is hereby authorized to cancel the same off of the records of 
 
 County, 
 
 The Building and Loan Association, 
 
 By , President 
 
 Secretary. 
 
 If the certificate of satisfaction is upon a separate sheet 
 it must contain an accurate description of the mortgage 
 designated for cancellation with the number of the mort- 
 gage book and the page where the same is recorded and 
 must be witnessed and acknowledged with the same for- 
 malities required in executing the mortgage. Some state 
 laws require that the release of a mortgage shall be made 
 in this manner. 
 
 The mortgages held by an association should not be 
 left in the possession of any one of the officers, since this 
 places a needless and irksome responsibility upon such 
 officer, and since, in such custody, they might be liable 
 to be lost or mislaid. They should be placed in the fire- 
 proof safe of the association if it has one. If it has none 
 they ought to be deposited in the safe of some bank or in 
 a safe-deposit vault, even if a small expense be incurred 
 thereby. The mortgages as filed away should be prop- 
 erly arranged, either alphabetically according to the 
 
 [2291 
 10
 
 CHAPTER XVII. 
 
 names of the mortgagors, or in numerical order corre- 
 sponding with the numbers of the members or share- 
 holders executing them, so that any particular mortgage 
 may be found readily. 
 
 If a fire insurance policy is held as collateral to the 
 mortgage, the policy should be filed with the mortgage, 
 a band or string holding the two papers together or both 
 being enclosed in an envelope. 
 
 Insurance Policies as Collateral Security. 
 
 In all cases where there are buildings upon the land 
 which are included in the mortgage, fire-insurance poli- 
 cies on these buildings should be required. These policies 
 should be assigned to the association and kept on file 
 with the association until the loan has been paid off. 
 
 It should be made the duty of the secretary or of some 
 other officer to keep a record of all the fire policies held as 
 collateral security. This record should include the name 
 and address of the company or of the agent issuing the 
 policy and a sufficient description of the policy itself to 
 make it easily recognizable. The record should be in- 
 dexed with the names or numbers of the shareholders 
 assigning the policies so that reference may be made to 
 each readily. The record of policies should also be ar- 
 ranged in monthly groups showing when the policies 
 expire. It is recommended that this expiration record be 
 kept in card index form. 
 
 The month before the expiration of a policy the officer 
 having charge of this matter should notify the mortgagor 
 and the agent issuing the policy, of the approaching ex- 
 piration of his policy and request that it be renewed on or 
 before the meeting day next preceding its expiration. At 
 this meeting the certificate of entry of renewal duly signed 
 by the agent or representative of the insurance company 
 must be furnished to said officer of the association. When 
 
 [230]
 
 PRACTICAL QUESTIONS ANSWERED. 
 
 an entry on the policy by the representative of the insur- 
 ance company is required, the policy should be delivered 
 to the mortgagor for that purpose to be returned at the 
 meeting as before stated. 
 
 When the association surrenders a fire policy the inter- 
 est of the association therein should be released. This 
 may be done in these words : 
 
 192.... 
 
 The interest in this policy which has been held by The 
 Building and Loan Association is hereby 
 
 relinquished. 
 
 , President. 
 
 Secretary. 
 
 The Building and Loan Association. 
 
 When a special blank is used it must give the number 
 and the date of the policy and the name of the insurance 
 company issuing it, in addition to the words signifying 
 relinquishment. 
 
 If a loan is secured by mortgage on a terminating 
 leasehold the policy of insurance should be held as col- 
 lateral until the final satisfaction of the mortgage. Then 
 the policy with the mortgage should be surrendered with 
 the proper certificate of satisfaction as above. 
 
 Leaseholds. 
 
 When a leasehold is mortgaged to an association the 
 secretary or other officer whose duty it may be should 
 enter in a book kept for that purpose a copy of the for- 
 feiture clause of the lease ; likewise the dates when ground 
 rents become clue, arranged in monthly groups as indi- 
 cated above for the insurance policies. Receipts for the 
 payment of the rental, taxes, and assessments, if any, 
 
 [2311
 
 CHAPTER XVII. 
 
 should be presented, at the latest, at the meeting preced- 
 ing- the expiration of the term of forfeitures and the entry 
 that such receipts have been produced should be made 
 on the book of the proper officer. 
 
 Taxes and Assessments. 
 
 Mortgagors should be required, subject to penalties 
 fixed by the rules, to present to the proper officers of the 
 association their tax or assessment receipts one week 
 prior to the expiration of the time limit for payment. 
 An entry should be made in a book kept for that purpose 
 to the effect that such a receipt was duly produced. 
 
 Payment of Dividends. 
 
 It is the practice in some associations for the members 
 to draw out their dividends at the end of each term. This 
 is probably a bad rule. Associations are organized for 
 the purpose of enabling and encouraging their members 
 to save money. If the members draw out their dividends 
 regularly they are apt to expend this money which they 
 might otherwise save. Unless a member absolutely needs 
 his dividends it is better for him to allow them to stand to 
 his credit. In associations where the dividends are not 
 drawn out they usually are compounded from term to 
 term and thus assist materially in increasing a member's 
 income. It is an advantage to the association also for the 
 dividends to be left in the treasury. In an average asso- 
 ciation doing a prosperous business, the semi-annual 
 dividends will amount to a considerable sum which can 
 be profitably loaned or invested by the association. 
 
 But where the dividends are paid at the end of each 
 term the directors must make special provision to have 
 the money on hand with which to pay them. If dividends 
 are not forthcoming when expected, suspicions may arise 
 and there may be a loss of confidence among the members. 
 
 [2321
 
 PRACTICAL QUESTIONS ANSWERED. 
 
 In paying dividends* it is convenient to have each 
 member's money or check placed in an envelope before- 
 hand so that on the meeting night it can be handed to 
 him without any delay. The envelope may be printed 
 about as follows: 
 
 Book No 
 
 Dividend of 
 
 The 
 
 Building and Loan Association for term ending 
 
 192.... 
 
 Name 
 
 Amount $ 
 
 As these envelopes containing the dividends are dis- 
 tributed to the members each member should sisrn a re- 
 ceipt in the following form : 
 
 192.... 
 
 Received of The 
 
 Building and Loan Association the sum of 
 
 dollars in full for dividend for term ending 
 
 192.... 
 
 Book No. 
 
 These receipts may be loose, or bound in book form. 
 If loose, after they have been signed, they should be filed 
 either in the numerical order of the members' pass-books, 
 or in the alphabetical order of the members' names, so 
 that they can be referred to readily. 
 
 • For methods of calculating dividends and dividend tables see Chapter XXII. 
 
 [2331
 
 CHAPTER XVII. 
 
 Some associations pay dividends by issuing warrants 
 upon the Treasurer who cashes them on presentation. 
 These warrants are in the following form : 
 
 No 
 
 192.... 
 
 Treasurer of 
 
 The Building and Loan Association : 
 
 Pay to the order of the sum of 
 
 dollars, dividend in full for term 
 
 ending 192. . . . 
 
 $ Secretary. 
 
 In some states the statutes, and in many associations 
 the rules, require that all moneys shall be deposited in 
 bank and paid by check. When so paid the check be- 
 comes the receipt and none other is necessary. 
 
 Dues, Deposit S1i£s, Etc. 
 
 At the appointed time for the payment of dues the 
 tables should be cleared and conveniently arranged. The 
 secretary and his assistants and the finance committee 
 should take proper position. The dues book should 
 lie open in the most convenient place for use by the 
 secretary or other person receiving the payments, and for 
 reference by his assistants and the members of the finance 
 committee. Regular money boxes should be provided for 
 assorting and depositing the money as received. 
 
 It will greatly facilitate business if associations will 
 use deposit slips or deposit envelopes. These are also of 
 great advantage and convenience in checking up for any 
 errors which may arise. 
 
 [234]
 
 ■ PRACTICAL QUESTIONS ANSWERED. 
 
 Business Details in Large Associations, 
 
 The foregoing paragraphs apply to small associations 
 that have one meeting night only per week, for the re- 
 ceipt of money and transaction of business. When an 
 association grows to larger size and the volume of busi- 
 ness is such that it must be kept open every business day, 
 during business hours, the plan above outlined cannot be 
 followed. These larger associations during all business 
 hours have someone present, usually the secretary, or his 
 assistant, to receive money, applications for loans, to pay 
 withdrawals or transact any other routine business which 
 may arise. Some associations require that all payments 
 made shall be accompanied by a deposit slip, made out 
 by the member, which he hands in with his pass-book 
 and cash or check. The sum deposited is then entered by 
 the party receiving it, in the member's pass-book. It is 
 no longer customary to divide this payment into several 
 parts, of dues, interest, premium and fines, requiring the 
 entry of three or four separate sums on the pass-books, 
 but the total payment made by the member is credited on 
 his pass-book in one lump sum. This practice simplifies 
 the operation and materially shortens the work. 
 
 In associations that do not require the use of deposit 
 slips the officers receiving the deposits at the same time 
 enter the payment in the "Cash Received" book of the 
 association. This book should be especially ruled and 
 printed for the purpose. It should have columns for 
 name of the member making the payment, date, a column 
 for his stock number and followed by a number of unit 
 ruled cash columns, the first cash column being headed 
 "Total," and the succeeding columns being headed 
 "Loans," "Running Stock" or "Installment Stock," 
 "Paid-Up Stock," "Deposits," "Temporary Loans," and 
 such other printed headings as will indicate all the vari- 
 ous purposes for which money may be received. In each 
 
 [286]
 
 CHAPTER XVII. 
 
 proper column should be entered the date, name of the 
 member, number of his pass-book ; and in the "Total" 
 column should be entered the full amount which he pays. 
 This amount should also be carried out to the column 
 indicating the purpose for which the payment is made. 
 If it is made by a borrower, it should be entered under 
 "Loans." If it is a savings deposit, it should be entered 
 under "Running Stock." If the payment is for the pur- 
 chase of paid-up stock, the entry should be put in the 
 column thus headed, and in the column in which the 
 pass-book numbers are placed should be entered the 
 number of the Paid-Up Stock Certificate which issue to 
 him. In the column headed "Deposits" should be entered 
 the payment made by persons who are not stockholders, 
 but are making payments on a special deposit account. 
 
 Where deposit slips are used they are usually placed on 
 a spindle and afterward posted to this "Cash Received" 
 book, as above described. Some large associations have 
 their "Cash Received" book in loose-leaf form, so that 
 in rush hours where large numbers of persons are re- 
 quiring attention, two or more officers or employes of 
 the association can receive deposits through separate 
 windows or wickets. This loose-leaf form of cash book 
 is not recommended where deposit slips are used. 
 
 At regular intervals, usually at the end of each week 
 this "Cash Received" book is balanced, the several 
 columns footed and these footings carried to the appro- 
 priate account in the General Ledger. 
 
 The individual account with each member should be 
 kept either in a loose-leaf Ledger system or in a Ledger 
 Card Index system. In each case a separate ledger sheet 
 or ledger card is opened for each member, and depositor, 
 and these should be numbered and kept in the ledger or 
 card index in numerical order. These ledger sheets or 
 ledger cards should be especially ruled and printed, with 
 
 [236]
 
 PRACTICAL QUESTIONS ANSWERED. 
 
 proper columns and headings for keeping the individual 
 accounts. The several items in the "Cash Received" 
 book should be posted at frequent intervals, either daily 
 or weekly, to the individual accounts in the loose-leaf 
 ledger or card-index ledger. 
 
 Disbursements. 
 
 It should be a fixed rule of every association that all 
 cash received must be deposited in the bank designated 
 by the Board of Directors, and only disbursed by check 
 drawn on this bank, and signed by the authorized officer 
 or officers. 
 
 Most associations have these checks printed with stubs, 
 and bound in a large book, from three to five checks on 
 a page. Where the association has ample funds on hand, 
 it is usual for the secretary to issue checks to withdraw- 
 ing members at any time, upon request, and presentation 
 of their pass-book or certificate, against which the with- 
 drawal is made. No withdrawal should be permitted 
 unless the pass-book against which it is to be made is 
 presented and the withdrawal entered therein. Stubs of 
 each check issued should show the date, the party to 
 whom paid, the number of the account to which the dis- 
 bursement is to be charged, whether a pass-book account, 
 mortgage loan, temporary loan, paid-up stock, expenses, 
 or other purposes. 
 
 The stubs of these checks should be kept posted to the 
 "Cash Disbursed" book. This book should be ruled and 
 printed similarly to the "Cash Received" book, with 
 columns showing the date, number of the check, name of 
 the party to whom the check issues, the stock number, 
 to which the disbursement is to be charged, and a number 
 of unit-ruled columns, the first having the printed head- 
 ing of "Total," and the succeeding columns printed head- 
 ings, "Loans," "Book Withdrawals," "Paid-Up Stock," 
 
 12.171
 
 CHAPTER XVII. 
 
 "Withdrawals," "Deposit Withdrawals," "Dividends," 
 'Temporary Loans," "Expenses," "Salaries" and such 
 others as will indicate all the several purposes for which 
 money may be paid out by an association. The stubs of 
 these checks should be posted daily to this "Cash Dis- 
 bursed" book in regular numerical order. 
 
 The amount of the check is to be entered in the 
 "Total" column and also carried out to the proper column 
 indicating the purpose for which the disbursements were 
 made. 
 
 At frequent intervals, at least weekly, the "Cash Dis- 
 bursed" book needs to be balanced, all the columns footed, 
 and the footings posted to the proper accounts in the 
 General Ledger. 
 
 Paid-U£ Stock Ledger. 
 
 It is important to keep a separate ledger in which to 
 enter the certificates of paid-up stock and the dividends 
 paid thereon. This should be especially ruled and printed, 
 with columns for entering the date, the name of party to 
 whom the certificate was issued, the number of the cer- 
 tificate, the amount for which it was issued, followed by 
 a column in which to enter the date and check number 
 by which the certificate is cancelled. The balance of the 
 folio pages should be ruled and printed for dividend 
 columns. Each dividend column properly consists of two 
 parts: one in which to enter the amount of the dividend 
 and another space in which to enter the date and number 
 of the check by which the dividend was paid. At the 
 head of each dividend space should be entered the date of 
 the dividend entered in that column. 
 
 Semi-Annual Settlements in Permanent Associations. 
 
 The practice of making semi-annual settlements and 
 declaring 9emi-annual dividends is almost universal, al- 
 
 [2381
 
 PRACTICAL QUESTIONS ANSWERED. 
 
 though a few associations make settlements and declare 
 dividends quarterly. On these settlement days the ac- 
 counts of each borrower are charged with the interest 
 on his loan for the current fiscal period. The amount of 
 this interest, together with the premium, and fines, if 
 any, taxes and insurance paid by the association for the 
 borrower, if any, are deducted from the total payment 
 made by the borrower, during that fiscal period, and the 
 balance of his payment is placed to the credit of his stock, 
 or, as is now becoming quite common in associations, 
 this balance is deducted from the amount of his loan, 
 making a new balance of indebtedness on which the inter- 
 est is computed for the following fiscal period. The 
 dividends earned by the several members are credited to 
 their several accounts. At this settlement time all pass- 
 books should be called in for auditing, compared with 
 the books of the association and dividends credited 
 thereon. The borrower's pass-books should show the 
 amount of interest and other charges for the current term. 
 When dividends are credited on the pass-books, they 
 become a part of his savings account. Should the owner 
 of the pass-book desire to withdraw this dividend, he is 
 permitted to do so, but it is not treated as a payment of 
 dividend, but as a withdrawal from his account, and is 
 so entered on the "Cash Disbursed" book. 
 
 General Remarks. 
 
 The foregoing is an outline description of the princi- 
 pal features of practical work and accounting under the 
 permanent plan. Its full details can not well be explained 
 without the use of diagram and bookkeeping forms, 
 which can not be conveniently displayed in a book of 
 this character. 
 
 1 239 J
 
 CHAPTER XVII. 
 
 Paying Off Shares. 
 
 Before the directors pay up shares in full or relinquish 
 mo rt gage s ,' they should consider carefully the associa- 
 tion's liabilities so that they may know — 
 
 i. What losses are liable to occur; 
 
 2. What mortgages are likely to prove bad; 
 
 3. What inside creditors the association has; 
 
 4. \Y r hether or not the existing reserve fund is suf- 
 ficient to cover all such liabilities. 
 
 Thus the directors may protect the association from 
 any possible shortage. In case of withdrawal at any time 
 when losses are pending, the shares withdrawn should be 
 debited with their equitable proportion of the impending 
 liability. If this is not made the rule, knowing members, 
 when the association may be under threatened temporary 
 embarrassment, would withdraw their shares and escape 
 without losses, while the faithful and unsuspicious mem- 
 bers remaining over would be compelled to meet the 
 emergency. 
 
 It must not be imagined that this prudence is unneces- 
 sary because of the fact that, generally speaking, build- 
 ing associations conducted on the permanent plan are 
 prosperous and run along smoothly from year to year 
 without embarrassment. Unexpected circumstances may 
 arise in the affairs of an association just as in any other 
 business enterprise. The officers, through inexperience 
 or carelessness, may make mistakes. A neighboring 
 association may declare large dividends. Then the officers 
 think that their own association can do as well, and will 
 increase their own dividends and pay out for profits more 
 than the association has earned. 
 
 Any increase in dividends has a very pleasing and 
 quieting effect upon members. As a result the members 
 themselves, under such circumstances, become more care- 
 
 [2401
 
 PRACTICAL QUESTIONS ANSWERED. 
 
 less, and, in consequence without any evil intent on the 
 part of either officers or members, unexpected embarrass- 
 ment may arise. It is well to anticipate all such emergen- 
 cies beforehand, and thus to be prepared for them. It is 
 easy to under-estimate an association's liabilities to bor- 
 rowing members on the one hand, and to over-estimate 
 the value of mortgages on advanced shares on the other. 
 
 Another serious mistake which has often been made, 
 principally in associations conducting their business on 
 the gross premium plan, is to divide the profits at the end 
 of the fiscal year. If this is done a member coming in 
 during the second term would afterwards have no share 
 of certain profits to which in the course of time he would 
 be justly entitled. In some reports unearned premiums 
 and unearned interest will be found reckoned as assets. 
 This is certainly a mistake since in each new term these 
 assets must be reduced by the amount which must be 
 placed to the credit or profits for that term. 
 
 In some instances we have found reported as assets the 
 entire outstanding re-payments having an unexpired 
 term, without any reduction or discount being made for 
 the time that must elapse before they shall be paid. 
 
 Associations which still use the gross premium plan 
 should only count as profits for any fiscal term, the pro 
 rata share of the gross premium earned during that term ; 
 and the gross premium should be distributed over the 
 entire term that the loan is to run. 
 
 It should be understood that an association which has 
 a reserve fund or contingent fund, is supposed to rely on 
 that fund to cover losses that may occur, and deductions 
 from a withdrawing member's account to cover losses, 
 should not be made unless it is clearly evident that the 
 losses will exceed in amount the sum in the reserve or 
 contingent fund. 
 
 [241J
 
 CHAPTER XVIII. 
 
 Auditing: Its Necessity and Object. 
 
 State Examinations. 
 
 In many of the states the provisions of the law require 
 that examinations be made at specified times. While the 
 auditing done by the state authorities has been of untold 
 benefit to the movement, we are of the opinion that the 
 associations themselves should pay the greatest attention 
 to this important detail of the management of these asso- 
 ciations. When we consider the vast number of associa- 
 tions, embracing a membership of millions of people 
 who make weekly, semi-monthly and monthly deposits, 
 running into the millions, the total aggregate savings are 
 tremendous. This vast sum of money represents the 
 hard-earned savings of thrifty and frugal citizens, whom 
 circumstances compel to begin at the bottom of the ladder 
 in the competition for material progress. They are of 
 the class of people who can least afford to run any risk or 
 suffer any loss. The money they are thus accumulating, 
 they are compelled to earn by the sweat of their brows. 
 It is not interest, rent or incomes from accumulated capi- 
 tal or investments. It is in most cases their dependence 
 for the future, as well as the home itself, and for the 
 necessities and comforts of life. If there is such a thing 
 as sacred money anywhere, it is in these very treasuries 
 of the building, loan and savings associations. 
 
 Many a time a person who has lost some of these sav- 
 ings has been discouraged from ever again attempting a 
 similar effort. As a result, this burden must be assumed 
 by others. The proper guardianship and protection of 
 
 [242]
 
 AUDITING: ITS NECESSITY AND OBJECT. 
 
 these funds is, therefore, a matter of the highest impor- 
 tance. It should have the best wisdom of the association 
 and of the state for its practical direction. In a report 
 of the Bureau of Statistics of Labor and Industry in New 
 Jersey, the part devoted to building and loan associations 
 makes the following comment in regard to auditing : 
 
 "In theory, the co-operators are neighbors and acquaintances, 
 present at every periodical meeting and watching and auditing the 
 modest business transactions themselves. And probably that was, in 
 the early history of the association, also largely carried out in 
 practice. It is more or less so in the smaller concerns. In the com- 
 paratively large enterprises, and especially those where the number 
 of membership reaches several hundred or even thousands, and the 
 assets approximate a quarter of a million, such a course is hardly 
 practical. The examinations of accounts and investments is usually 
 left to auditors who often know little about auditing, and even when 
 competent, are inclined to neglect making a thorough investigation 
 which requires valuable time." 
 
 Since this was written several associations in the 
 United States have acquired a membership running into 
 the thousands, with assets aggregating many millions of 
 dollars, and the number of associations having over a 
 million dollars assets is increasing continually. Thus it 
 will be seen that the volume of business has grown 
 phenomenally, especially in well conducted associations 
 where they have made it a business to work along pro- 
 gressive lines. 
 
 The grave importance of the subject of auditing is 
 indicated in the extract quoted, and in some of the figures 
 given. This matter should receive the greatest considera- 
 tion in association circles. In fact, a single association 
 that has trouble in any part of the United States will 
 cause uneasiness at some other point, and it therefore 
 behooves those having the management of associations in 
 charge to see that the very best auditing obtainable is 
 secured for their respective institutions. 
 
 [248]
 
 CHAPTER XVIII. 
 
 An ordinary business enterprise is usually carried on 
 by an individual, a firm or a private corporation. In such 
 cases the actual managers of the business, as a rule, carry 
 a large part of the risk. It is their own money that is 
 invested in the business. They invest this according to 
 their own judgment, and handle the business at their own 
 discretion. In consequence they are naturally watchful 
 and painstaking in all they do, their time and thought 
 being devoted to the business. If the business prospers, 
 well and good. But if they find that it is not prospering 
 they may. without consulting anyone, proceed to close 
 it up. 
 
 In the management of a building association the con- 
 ditions are different. The directors and officers have 
 some financial interest in it, but this interest is likely to 
 be of minor importance as compared with their other and 
 outside individual interests, and it is also unimportant 
 as compared with the aggregate interest of the associa- 
 tion. The case is different in the management of any 
 private individual enterprise, or of the business of any 
 regular business firm or corporation. In a private enter- 
 prise the managers give to the business their whole time 
 and thought. In the management of the business of a 
 building association it is only incidentally that time and 
 thought are given to it. 
 
 Let the officers of an association be ever so conscien- 
 tious, ever so much interested, nevertheless the opportuni- 
 ties for error are greater in an associated than in a private 
 enterprise. An association's business is open to many 
 more risks of the misuse or non-use of powers on the 
 part of managers than is the case where proprietary 
 interests are involved and the management is embodied in 
 one or a few men whose duty and interest it is to make it 
 their sole occupation to watch over and administer their 
 own affairs. 
 
 [244]
 
 AUDITING: ITS NECESSITY AND OBJECT. 
 
 These facts give rise to a special necessity for the sys- 
 tematic and regular auditing of the accounts of every 
 co-operative enterprise. This necessity is of a dual and 
 reciprocal nature. It is necessary on the one hand for the 
 protection of the society's interests and the individual 
 interests of the members. On the other hand it is essen- 
 tial for the protection and proper endorsement of the 
 officers in the discharge of their duties. 
 
 Indirectly, also another important reason exists for the 
 careful administration and auditing of the affairs of every 
 building association. It is only by such systematic 
 
 watchfulness that the best success and prosperity of an 
 association can be secured and assured. Any failure of 
 an association, be it complete or partial, is very unfor- 
 tunate, not only for the individual shareholders but also 
 for the community. Such an occurrence goes far towards 
 creating a distrust of this method of co-operation. Such 
 a distrust once aroused is likely to continue for one or 
 two generations. Persons who lose money in a building 
 association will be very slow to risk their earnings in 
 another such institution, and their families, neighbors, 
 and friends will be influenced strongly by their opinion 
 and attitude. Such a failure not only causes embarrass- 
 ment to associations already in operation, but prevents 
 the establishment of other associations in that immediate 
 vicinity. The influence goes farther, for, those who have 
 suffered by it, removing into new neighborhoods and 
 communities, even at a great distance, carry with them 
 the story of their unfortunate experience, and this may be 
 sufficient to prevent the establishment of such societies 
 elsewhere. Upon this ground alone it behooves all per- 
 sons who are interested in the welfare of this form of 
 OO-operation, and who are convinced of the good that it 
 is accomplishing, and of the great future that awaits it, 
 
 [245J 
 
 17
 
 CHAPTER XVIII. 
 
 to insist upon the regular and responsible auditing of the 
 accounts in the associations with which they are con- 
 nected. 
 
 Many other considerations of like general character, 
 showing the necessity of the regular and thorough audit- 
 ing of the accounts of building associations, will suggest 
 themselves to the intelligent reader, and need not be 
 mentioned here. Many large associations are carefully 
 audited by chartered public accountants and when the 
 business of an association is of sufficient size to warrant 
 it, this course is recommended. 
 
 Purposes of Auditing. 
 
 The wholesome effect of official supervision and com- 
 pulsory auditing on part of the state is now generally 
 recognized, and the indications are that its sphere will be 
 extended and perfected in the future. That this system 
 of co-operative saving shall have continued popularity it 
 must hold the confidence of the people. This can be 
 accomplished only by throwing about it such wise safe- 
 guards as experience has shown to be necessary in order 
 to make and keep it worthy of such confidence. 
 
 Auditing is supervision practically applied. It means 
 not only testing the accuracy and the trustworthiness of 
 the accounts, and the honesty and efficiency of officers, 
 but it includes also the testing and the perfecting of 
 methods, and the securing of practical economy. It in- 
 volves the proving of the conduct of an association by 
 the fundamental principles upon which this form of co- 
 operation is based on the one hand, and also by external 
 checks and testimony on the other. A proper audit 
 reviews both the plan and the method of the society, and 
 also its practical operations. 
 
 An association, properly organized and properly 
 operated, is like a complicated piece of machinery, in 
 
 [2461
 
 AUDITING: ITS NECESSITY AND OBJECT. 
 
 which each part is nicely adjusted to fit into its cor- 
 responding parts, so that all work together in a perfect 
 co-ordination, with the least friction, and with economy 
 of power, and reach the highest productive or executive 
 possibility. Only a regular systematic audit will keep the 
 machinery of an association in good form and perfect 
 running order. If an audit has no other effect than to 
 cause an association to keep up proper appearances, it 
 fulfills an important function. The audit takes the affairs 
 of the society as it finds them and compares them with 
 what they would be if ideally perfect, and thus furnishes 
 a test of the actual status of the organization and a cor- 
 responding gauge of its usefulness and its title to 
 confidence. 
 
 Formulated somewhat specifically, the principal rea- 
 sons why the accounts of an association should be audited 
 regularly and carefully are as follows : 
 
 i. For the protection of the business of the associa- 
 tion as a coqxirate body. 
 
 2. For the protection of the individual members, both 
 creditors and borrowers. 
 
 3. To determine that the business is conducted ac- 
 cording to statutory requirements, and also in harmony 
 with the provisions of the constitution of the association. 
 
 4. For the purpose of determining whether the busi- 
 ness of the association is conducted economically and 
 according to the most approved and best labor-saving 
 systems. 
 
 5. For the purpose of having available at all times 
 and for any purpose a verified and reliable statement of 
 the association's affairs. 
 
 6. To elevate and maintain the standing of the asso- 
 ciation as one of the competitive financial institutions of 
 
 [247]
 
 CHAPTER XVIII. 
 
 the community, and to supply the necessary evidence of 
 its safety and prosperity to all persons who would make 
 desirable members. 
 
 Protection of Corporate Interests. 
 
 Practically an association is a business partnership. 
 Each member commits his capital to it as he pays in his 
 regular installments. This capital, in its aggregate 
 interest, is risked in the transactions of the association. 
 It must be guarded, not only from thieves who would 
 break through and steal, but from speculative risks and 
 embezzlement. It must be directed into the channels for 
 which it is intended. It must be so handled as to make 
 it productive in the highest possible legitimate degree. It 
 must have all the care, and the same kind of care neces- 
 sary in the management of any purely individual or 
 private interest. 
 
 The association's prosperity is dependent upon the 
 confidence and the co-operation of its own members. It 
 deals only with members. The officers must not only be 
 capable and trustworthy, but must so keep the records and 
 accounts that the actual financial condition of the associa- 
 tion and the results of its business operations may be at 
 any time readily and correctly ascertained. When the 
 accounts are kept correctly and stand the test of a careful 
 audit, the members are enabled to judge as to the safety 
 and the profit of their investments. Any irregularity of 
 management will be discovered before it reaches such 
 proportions as to jeopardize the stability or the solvency 
 of the association. 
 
 Protection of Members. 
 
 Members of an association entrust their surplus earn- 
 ings to it in order to save them. If it were not for this 
 purpose of saving they would have no use for the associa- 
 
 [2481
 
 AUDITING: ITS NECESSITY AND OBJECT. 
 
 tion. When a properly verified balance sheet is pre- 
 sented, showing that the money actually saved is safe, 
 and is. moreover, so invested that it is earning some- 
 thing, and that there are no actual or prospective losses, 
 deficiencies, bad debts, defalcations, etc., then the mem- 
 bers know that they have taken all necessary precautions 
 to protect and to conserve their interests. They know 
 also that by the methods the officers have adopted and by 
 the system of auditing which has been inaugurated, they 
 are able to discover any leakage before it reaches such 
 proportions as to endanger their money. 
 
 As remarked in another place, a practical system of 
 auditing is indispensable when the affairs of an associa- 
 tion are prosperous. It is all the more necessary when 
 this is not the case. Any lack of prosperity is thus dis- 
 covered promptly, and immediate steps may be taken to 
 improve the situation, if this be possible. If this cannot 
 be done, members will know what to expect, and will not 
 be disappointed at low dividends or no dividends. If the 
 situation is so bad as to make it necessary, arrangements 
 may be made to wind up the affairs of the association 
 before they reach such a condition as to involve seriously 
 the interests of the members. 
 
 Occasionally, an association is allowed to drag along 
 feebly after it has become apparent that it is not prosper- 
 ing, until it reaches a condition when it is impossible to 
 wind it up without serious loss. Such a case may arise 
 from outside circumstances, local or otherwise, as well as 
 from mismanagement or inattention on the part of the 
 officers. Many circumstances, such as the removal of 
 factories, the depreciation of real estate, and similar 
 things, may change the conditions under which an asso- 
 ciation was established, it is always best to know the 
 worst at once and to act accordingly. When losses 
 accumulate until a crash comes, it is nearly always found 
 
 1249]
 
 CHAPTER XVIII. 
 
 that the assets are less in value than they are supposed to 
 be. In addition, the cost of winding up is so greatly in- 
 creased that this of itself very materially reduces the 
 assets. This is a condition that should never be per- 
 mitted to arise, and one that is practically impossible 
 under any proper system of auditing. 
 
 Statutory and Constitutional Requirements. 
 
 The business of building associations has grown to 
 such proportions that it has become one of the important 
 factors in the financial transactions of the country. In 
 few other connections are the personal property interests 
 of a larger number of citizens involved. There is this 
 other consideration also, that the number of citizens who 
 entrust their saving to the care of associations is likely 
 to continue to increase at a very rapid rate. Very prop- 
 erly, therefore, the legislatures in the different states 
 give the subject attention from time to time, and provide 
 by statute the limitations and the methods to be observed 
 by the associations. 
 
 These corporations, in order for their own guidance, 
 establish, under the statutes of the state, certain rules 
 and regulations, which they embody in their constitutions 
 and by-laws. These rules determine the methods and the 
 restrictions of their operations. Upon the faithful observ- 
 ance of these depend the safety and the prosperity of the 
 associations and the protection of the deposits made by 
 shareholders. 
 
 In a sense, therefore, it is the business of an auditor 
 to inspect as well as to audit. Not only should he com- 
 pare and check items, verify entries and footings, etc., and 
 test all the details of the accounting and the book-keeping, 
 but he should inspect the methods upon which the system 
 of accounting is based, and the ends it aims at. He 
 should furthermore, satisfy himself that both the account- 
 
 1250]
 
 AUDITING: ITS NECESSITY AND OBJECT. 
 
 ing and the operations of the associations are in accor- 
 dance with the constitution and the by-laws; and in 
 addition to this, that the rules themselves of the associa- 
 tion are in harmony with the statutes of the state. It is 
 only by this system of far-reaching and thorough audit- 
 ing that an auditor can render a faithful report to those 
 who have trusted their interests for the time being to his 
 guardianship. 
 
 Economical, Labor-Saving, and Simple Methods. 
 
 People desire economy and simplicity in the manage- 
 ment of their business. They do not want an unneces- 
 sary expenditure of money, nor a cumbersome system 
 which they cannot understand. They like to see econom- 
 ical and labor-saving methods adopted in the manage- 
 ment of the business of their associations, and all super- 
 fluous work and intricate books dispensed with. They 
 like to have accounts in such form that they themselves 
 can readily understand them and thus perceive how they 
 are kept. Experience has shown that the weakness of 
 many associations which have failed has been just here. 
 There was a waste of money in the manner in which the 
 business was conducted. Much unnecessary work was 
 required, and the system followed was so intricate and 
 cumbersome that it was not readily understood, and it 
 did not give a plain showing of the affairs of the asso- 
 ciation. Consequently, an association would become in- 
 volved before its real condition was discovered. 
 
 Proper auditing, by those expert in such matters, 
 would quickly detect any such condition as this and put 
 an end to it. 
 
 The Balance Sheet. 
 
 The best method of securing this condition is to have 
 thoroughly efficient auditors, appointed by the state, or 
 appointed by and responsible to the stockholders and 
 
 [251]
 
 CHAPTER XVIII. 
 
 directors of the association, to examine the records, and 
 to report to the association the manner in which accounts 
 have been kept ; to verify the balance sheet, and to be 
 able to state that in this the secretary and the directors 
 have shown correctly the business for the period covered ; 
 and that it is a true exhibit of the condition of the asso- 
 ciation upon the date of its issue. Such a statement thus 
 verified enables the members to act with intelligence and 
 confidence, and also gives to outsiders who may wish to 
 become members, or who may have some other interest, 
 full and trustworthy information. If an association is 
 prosperous a correct balance sheet is its best advertise- 
 ment. If it is not prosperous the balance sheet should 
 all the more demonstrate the fact in order that the mem- 
 bers may be fully warned. 
 
 In this connection it may be remarked in passing that 
 such methods of book-keeping have now been devised for 
 associations that the secretary's accounts may exhibit a 
 continuous balance sheet, showing at any moment the 
 exact condition of the association's business. 
 
 The Auditor, the Representative of the Members. 
 
 The first point to make distinct is that an auditor does 
 his work in the interest of the members as contra-distin- 
 guished from the officers of an association, and that 
 therefore he is their representative. He knows nothing 
 of and cares nothing, for the time being, about the officers 
 whose accounts he is examining. He is appointed for 
 the purpose of ascertaining on behalf of the stockholders 
 that their money has been properly accounted for; that 
 such of the funds as have been expended have been ap- 
 plied in the manner intended and as indicated in the 
 accounts ; and that the unexpended portion is invested or 
 held as intended, and that this is shown in the report and 
 the balance sheet, 
 
 1252]
 
 AUDITING: ITS NECESSITY AND OBJECT. 
 
 In a general way he is to give to the co-partners or 
 shareholders his assurance that the transactions of the 
 officers and the directors in the management of the busi- 
 ness of the association has been wise and discreet, and 
 according to the rules and the purposes of the associa- 
 tion; that the report and the statement which they pre- 
 sent correctly and accurately represent the actual trans- 
 actions and condition of the association; that it may be 
 relied upon as showing the real result of their manage- 
 ment, and, that the balance sheet presents the actual re- 
 ceipts and expenditures, costs and gains, and liabilities 
 and assets, for the term it covers. 
 
 For the time being the auditor is the critic, the judge, 
 of the officers, — their friend and ally if their accounts are 
 correct and their conduct right, their uncompromising 
 antagonist if they are guilty of any shortcoming or 
 wrongdoing. 
 
 The Selection of an Auditing Committee. 
 
 Determining who shall be the auditor or auditing com- 
 mittee is a very important matter. In most associations, 
 that is to say in associations that have not long been 
 organized, the auditors are usually three or five members 
 selected by the membership at large, or by the directors, 
 for this purpose. In the older associations, and in not a 
 few of the younger ones, a single auditor is chosen who, 
 as a rule, is a professional accountant, and may or may 
 not be a member. Other things being equal, it is better 
 that he should not be a member of the association, since 
 thus he may be supposed to be wholly disinterested. It 
 will be for each association to determine for itself, 
 whether the auditing shall be by a committee of members 
 or by the employment of a special auditor or professional 
 accountant. 
 
 rasai
 
 CHAPTER XVIII. 
 
 Qualifications for Auditing. 
 
 Whether the audit be by a single individual, or by 
 a committee, the qualifications must be the same. If by 
 an individual, he must possess all the qualifications him- 
 self ; if by a committee, one member may be versed in one 
 part of their work, and another skilled in some other 
 department. For convenience in presenting the subject, 
 and in order to make it a little more pointed and specific, 
 we will treat the auditor in the singular number, and will 
 speak of the qualifications necessary to any individual 
 who should be regarded as competent for such a task. 
 
 The auditor's duties begin immediately with the books 
 and the accounts of an association. These must be placed 
 in his hands, posted and balanced up to date, including 
 the last meeting for the term over which his duty is to 
 extend. The mistake should not be made that he is to 
 take the books and accounts of an association and put 
 them into proper shape, if he does not find them so. He 
 has nothing to do with this, unless he is employed to 
 correct as well as to audit the books. He is to take them 
 just as he finds them and to report upon them as they are. 
 
 While an auditor must be a book-keeper, auditing is 
 not book-keeping. Frequently it happens that an audit- 
 ing committee sets to work to straighten up the books and 
 the accounts of an association preliminary to their audit- 
 ing and checking. Keeping the accounts belongs wholly 
 to the officers of the association, and it is the business of 
 the auditor to report upon things exactly as he finds them 
 without mending or altering them in any way. He is 
 the representative of the shareholders and membership 
 at large, and not an assistant of the secretary and other 
 officers. It is his business to criticise and find fault — if 
 criticism is warranted — with the work of the secretary 
 and the officers as shown in their books and reports, and 
 not to correct and cover up their faults and shortcomings. 
 
 [254]
 
 AUDITING: ITS NECESSITY AND OBJECT. 
 
 Not only must an auditor have a thorough knowledge 
 of accounts generally, but he must be an expert in asso- 
 ciation accounts. The first principles of accounting are 
 the same always and everywhere; but in each particular 
 line of business the application of the first principles must 
 vary. Consequently, one may be an expert bank account- 
 ant but not posted in insurance accounting, or in manu- 
 facturing or in merchandising. Building association 
 accounts have their own distinct pecularities, and present 
 certain features of accounting not found in other lines of 
 business. The best auditor of building association ac- 
 counts therefore must be a specialist in this particular line. 
 
 Again, there is progress in the science and art of 
 accounting as in all other sciences and arts. Methods 
 formerly in general use are now discarded for those 
 which are better. In every line of business labor-saving 
 systems have been introduced which not only make econ- 
 omy in time and expense possible, but also greatly sim- 
 plify the plans and make the results more readily attain- 
 able and comprehensible. There are many devices now 
 in common use which facilitate and expedite the work of 
 an accountant. An auditor should not be an old fogy. 
 He should be up with the times and have a full knowledge 
 of modern methods and improvements and all labor and 
 time-saving devices. He should have a quick grasp of 
 things, so that he can see at once the correlation of all the 
 affairs of the association, and also the relations which 
 each separate account or item bears to the whole. 
 
 Not only must he be an expert accountant, but he must 
 understand the philosophy and the principles of the line 
 of business with which he is dealing. A building associa- 
 tion is the application of the principles of co-operation to 
 business matters. The business of an association differs 
 from that of an individual, or of an ordinary business 
 firm, in tin- fact that the private interests of so many 
 
 1255]
 
 CHAPTER XVIII. 
 
 more individuals are involved. This introduces the ele- 
 ments, or principles of co-oi>eration. In order to see that 
 these are correctly applied and carried out it is necessary 
 that the auditor shall himself be well informed in regard 
 to the principles which underlie co-operation in general, 
 and co-operation in this special direction in particular. 
 
 It hardly seems necessary to say that an auditor must 
 be honest and incorruptible. His intentions and purposes 
 must be absolutely correct on the one hand, and on the 
 other he must not be susceptible to any kind of influence 
 that might lead him away from such purposes. Any such 
 influence as deliberate attempts at bribery are hardly to be 
 expected in such an institution as a building association, 
 but there might be the influence of friendship, or sym- 
 pathy, or something of that kind, which would tend to 
 swerve an auditor from a straight line. These must be 
 guarded against, not only, on the part of the members in 
 the selection of the auditor, but on the part of the auditor 
 himself in the prosecution of his work. 
 
 An auditor must be courageous and firm. He may find 
 himself antagonized and opposed. He may find opposi- 
 tion where he expected co-operation. He may find weak- 
 ness where he expected strength. He may be placed under 
 a variety of circumstances which make it difficult for him 
 faithfully to prosecute his vvork. His courage and firm- 
 ness must never fail. 
 
 He must be a discreet man, one capable of keeping his 
 own counsel, going his own way, minding his own busi- 
 ness, and reaching his own conclusions. 
 
 He must be a man of tact and courtesy, having the 
 faculty of finding out what he wants to know, of winning 
 the esteem and confidence of those with whom he is 
 brought into contact, and of commanding the respect even 
 of those whose shortcomings or faults he may be called 
 upon to expose. 
 
 12561
 
 AUDITING: ITS NECESSITY AND OBJECT. 
 
 Withal he must be a man of moderation and forbear- 
 ance, not hasty to reach conclusions, not disposed to take 
 any improper advantage of his position or knowledge, 
 and not inclined to be dictatorial or overbearing in his 
 manners in any respect. 
 
 Disqualification of Auditors. 
 
 That a proper system of auditing does much to estab- 
 lish confidence in an association has been proven beyond 
 doubt. The shareholders should bear in mind that it lies 
 in their power to increase the advantages of auditing to 
 the maximum by a judicious selection of auditors and the 
 adoption of the best methods as to the time, manner, 
 frequency, etc., of making the audits. A man may be a 
 good penman or copyist, or may be reliable in the addi- 
 tion of columns of figures or in multiplication, etc., he 
 may be successful as a mechanical or routine book-keeper, 
 and still be wholly incompetent as an auditor. To be 
 capable of making an audit, he must have a thorough 
 comprehension of what the figures and the items he has 
 to inspect mean, and must understand their philosophical, 
 as well as their mathematical relations. A scheming 
 official might easily keep a book-keeper's clerk or assistant 
 in a good humor with himself by giving him plenty of 
 mechanical work to do, checking this and that, adding 
 and subtracting here, and multiplying there, all of which 
 would lead to nothing at all, but would leave the auditor 
 (?) with the impression that he was making a very 
 thorough audit. By thus flattering his vanity, and enab- 
 ling him to make a great show of his work, he could be 
 effectually thrown off any dangerous scent, and, while 
 industriously calling off and checking items and details, 
 the footprints of fraud could be entirely covered up. 
 Indeed, he might in this way handle the very item which 
 
 [*7]
 
 CHAPTER XVIII. 
 
 covers or omits fraudulent transactions. He would be so 
 taken up with the mechanical part of his work that he 
 would never discover anything. 
 
 Assistance from Officials. 
 
 An auditor who cannot audit without the assistance of 
 the secretary is not the man for the place. It is not an 
 uncommon occurrence to see a secretary busily engaged in 
 assisting an auditor by reading out from pencil memoran- 
 da in his ledger the amounts which are to be checked in 
 the pass-books, and then these pencil figures on the ledger 
 are erased before the ledger is presented to the auditor for 
 other purposes. An auditor who must be assisted is one 
 to be avoided. 
 
 After the books have been placed in his hands and 
 explanations have been made of the system which is fol- 
 lowed, and matters have thus been formally turned over 
 to him, an auditor should take full charge and set about 
 his work without the presence of any of the officials un- 
 less he shall summon them to answer questions, or to 
 make necessary explanations. If he finds new features in 
 book-keeping in vogue with which he is not familiar he 
 should frankly say so, and ask questions freely until he 
 understands the system. He cannot make his audit with- 
 out having this knowledge, and it is due to the officials, 
 to the shareholders whose interest he represents, and to 
 himself, that he secure the information. This having been 
 secured, he is then able to understand everything clearly, 
 and to report upon it correctly, and should proceed to do 
 his own work in his own way. 
 
 Change of Auditors. 
 
 It may be desirable, as a precaution, or for other 
 reasons, to make a change of auditors from time to time; 
 but no change should be made for the mere sake of a 
 
 [258]
 
 AUDITING: ITS NECESSITY AND OBJECT. 
 
 change. An auditor who has once gone over the accounts 
 of an association has acquired a familiarity with them, 
 that is to say a special knowledge of them, which would 
 be valuable to him in making a second audit. If he is 
 efficient and satisfactory, and there is no special reason 
 for making a change, it will be desirable to continue him 
 in the position. If the books are audited by a committee 
 it will be easy to keep an old hand in the lead with new 
 assistants from time to time. There is often a risk in 
 placing the matter of auditing in new hands from the 
 fact that it may not be possible to know with certainty 
 that the new hands are competent ones. On this account 
 it is better never, if it can be avoided, to place an audit in 
 wholly untried hands. There may be natural incapacity, 
 or a lack of training, which will make the work unreliable 
 and unsatisfactory. 
 
 Compensation of Auditors. 
 
 There is no more important work to be done for an 
 association than the auditor's. In order that it may be 
 done properly the very best talent available should be 
 obtained for it. It is very poor policy for share-holders 
 to seek the cheapest auditors. One employed for this 
 purpose should be made to feel that he is well paid for 
 his services. Being free and satisfied on this score, he is 
 thereby inspired to more faithful service than he might 
 otherwise render. It is especially unfair for shareholders 
 to expect any of their fellow-members to give their expert 
 knowledge and their time to this painstaking and labori- 
 ous work without fair remuneration. In estimating the 
 value of an auditor's service it is not so much the amount 
 of time that he gives to it that should be considered, — 
 although this should not be ignored, — as the fact that his 
 work is in the nature of professional services, and should 
 be paid for according to its professional value. 
 
 [259J
 
 CHAPTER XIX. 
 
 Auditing: Its Methods. 
 
 Uniformity Impossible. 
 
 In the preceding chapter the subject of auditing has 
 been discussed in relation to its general principles and 
 features. But, in order that the suggestions of this work 
 may be made of as much practical value as possible, it is 
 necessary to indicate, as far as may be, how these princi- 
 ples are to be applied in practice. Every one will under- 
 stand that it is impossible to lay. down a set of specific 
 rules which will apply in all cases. It is only the applica- 
 tion of the principles of auditing in a general way that 
 can be pointed out here. These must be adapted to cir- 
 cumstances as they may be found to exist wherever they 
 come to be specifically applied. Even in any one particu- 
 lar association, circumstances differ from time to time as 
 new contingencies arise. Consequently there must be 
 more or less variation in the application of any set of 
 rules. While the rules and suggestions which follow are 
 given in outline, the endeavor has been made to make 
 them sufficiently comprehensive to cover almost any set 
 of circumstances that may arise in the practical operations 
 of an association. 
 
 Care of Books. 
 
 An auditor should notice whether or not the books of 
 an association are well cared for. He should see where 
 they are kept and how they are handled, should notice 
 whether or not they are in good condition, and are clean. 
 
 [260]
 
 AUDITING: ITS METHODS. 
 
 He, himself, in turn should handle them carefully, keep- 
 ing them neat and clean, and placing upon them only the 
 necessary check marks, and should make these as small 
 and as neat as possible. Auditors will find that books 
 which are neat and clean in appearance, in which the 
 entries are tastefully made, balances properly ruled off, 
 etc., will as a rule contain accounts that are correctly kept. 
 Where the condition of the books is such as to indicate 
 carelessness in their handling, an auditor may well expect 
 to find carelessness in the accounts themselves, for, care- 
 less in one thing careless in all things, may be expected to 
 be the rule. If the secretary or other officer is neglectful 
 of his duties, or has erasures and finger-marks all through 
 his books, he is likely to have errors, both of omission and 
 commission, in his entries. 
 
 Special Hints. 
 
 A list of the books in use having been furnished to the 
 auditor he should make it his first business to see that it 
 is complete, and that all the books named in it are in his 
 hands. He should next turn his attention to the general 
 features and conditions of the books themselves. He 
 should see whether they constitute a perfect system with- 
 out any breaks; that is, whether the books are like the 
 different parts of a machine, each wheel fitting properly 
 into the others, and no wheel absent. He should ex- 
 amine each book and note all the particulars concerning 
 it. For instance, he should see if the books are machine- 
 paged, since this is one of the most efficient safeguards 
 against tampering such as cutting out or pasting together 
 of leaves, and so on, and is a most important feature in 
 the tracing of entries. 
 
 All books which in any way have connection with 
 financial transactions in the receipt or expenditure of 
 money should be numbered in consecutive pages by a 
 
 [2<il| 
 
 18
 
 CHAPTER XIX. 
 
 machine. They should begin with page I, and should 
 continue in regular numerical order. It sometimes hap- 
 pens that books become very large, and the page num- 
 bers become too large for convenience in practical work. 
 Various expedients may be resorted to in such cases. The 
 first series of pages may run up to 1,000. Then a new 
 series may begin which will be called A, as A I, A 2, A 3, 
 and so on, while a third series may be B 1, B 2, B 3, and 
 so on. 
 
 Attention should be given next to the clerical work in 
 the books to see whether all entries have been made, 
 whether they are clear and legible, and whether the exten- 
 sions and footings have been carried out. If omissions 
 are discovered the attention of the officers shoud be called 
 to them, and the officers themselves should fill them up. 
 If entries are found which are not in due form, but are in 
 the nature of memoranda, this should be noted, and, if 
 necessary the officials should be called upon to complete 
 their work. If any entries are made in pencil, or footings 
 appear in pencil, the pencil work should not be accepted, 
 because after the audit is completed, such entries could be 
 easily changed. The original rulings of the books, and 
 also all rulings made in the course of the accounts should 
 be noted. If these rulings do not fulfill their purpose 
 clearly the fact should be noted and the matter properly 
 cleared up. 
 
 These preliminary matters having been noted, the 
 auditor should next turn his attention to the particular 
 accounts. He should first notice the method, or modus 
 operandi, upon which the accounts are kept. He then 
 should test the different accounts by taking certain items 
 and tracing them from book to book so as to obtain a 
 clear knowledge of the process by which the accounts are 
 made up. 
 
 [262]
 
 AUDITING: ITS METHODS. 
 
 As the auditor proceeds with his work various inci- 
 dental matters will continually arise to claim his atten- 
 tion. He must be prepared by intelligence and experi- 
 ence to look out for these himself. They can not be 
 specifically scheduled. A few such matters may be men- 
 tioned particularly by way of suggestion. 
 
 He should see that no dividends have been declared out 
 of the capital, or out of earnings which have not yet been 
 realized. 
 
 He should see whether or not any capital has been 
 invested in securities that are illegal or improper, and 
 false assets shown in this way. 
 
 He should inquire as to whether the constitution and 
 the rules have been followed in all matters relating to the 
 accounts, and, if the directors are empowered with 
 authority to use their discretion in any official transac- 
 tions, whether or not their resolutions and instructions 
 have been carried out to the letter. 
 
 He should see that rebates in interest are allowed cor- 
 rectly, and all incidental items are properly entered and 
 considered. 
 
 He should examine carefully the profit and loss ac- 
 count, inspecting and verifying each item. He should see, 
 for instance, that any provision in the rules permitting 
 allowance for depreciation in the value of fixtures, sta- 
 tionery, etc., has been followed, and that such entries are 
 properly made. 
 
 Every auditor should have a system of check marks of 
 his own. These should be made with ink or an ink pencil. 
 They may be in different colors and in different forms as 
 he may find necessary for the perfection of his work. By 
 putting his proper check on each item as he passes upon it 
 he will not fall into confusion, and each item will tell its 
 own story as soon as he looks at it. He will also know 
 in this way when his work is completed, and his check 
 
 [263 J
 
 CHAPTER XIX. 
 
 marks will remain for the information and guidance of 
 himself or others in making future audits. 
 
 False Accounts. 
 
 h is the auditor's business to detect mistakes and mis- 
 representations. Mistakes occur through inefficiency or 
 carelessness. Misrepresentations arise from an intention 
 to deceive. Mistakes may be rectified; misrepresentations 
 must be exposed. In case, therefore, the secretary or the 
 board of directors have intentionally prepared and sub- 
 mitted a false statement, the auditor may have a more or 
 less unpleasant and sometimes difficult task before him. 
 If he is efficient, he will soon be able to detect the fact 
 that the account is incorrect. If it has been made so in- 
 tentionally, he will soon discover this also. Being prop- 
 erly put upon his guard by his discovery, he will need to 
 summon all his tact and firmness, and settle down to a 
 faithful and thorough investigation. 
 
 He must now prepare himself not only to point out 
 the errors in the account but also to expose the purpose 
 and method of the errors. It will always be well for an 
 auditor under such circumstances to be cool, deliberate, 
 and close-mouthed. He should not be hasty to betray his 
 suspicions. There should be nothing in his manner, or 
 speech, or actions, to indicate that suspicions have been 
 aroused, until the proper time comes for him to take 
 decisive action. He should fortify himself with all the 
 evidence available, so that his position may be impregna- 
 ble, and that, when exposure comes, it may be thorough 
 and complete, and the guilty officials brought to punish- 
 ment and restitution made. 
 
 Errors of Omission. 
 
 It is difficult to lay down any rule by which errors 
 of this kind can be detected with absolute certainty. 
 
 [2641
 
 AUDITING: ITS METHODS. 
 
 Everything will depend upon the intelligence, the experi- 
 ence, and the determination of the auditor. An audit 
 may be thorough and correct as far as direct cash transac- 
 tions are concerned, but may be incomplete in the state- 
 ment of assets and liabilities. To guard against errors 
 of omission in any part of the accounts, each item should 
 be checked as far as possible from original entries or 
 sources in order to see that the association has been 
 charged with all cash received and liabilities incurred. 
 The same course must be pursued on the other hand with 
 reference to all cash expenditures and to all credits. It 
 sometimes happens that the affairs of associations become 
 complicated and the interests of stock-holders seriously 
 endangered without warning, because officials have been 
 careless in their accounts in these respects, and auditors 
 have been incompetent or negligent. It should always be 
 borne in mind that an auditor is one who audits, and 
 if he fails in any particular then he is not entitled to the 
 official name which he bears. 
 
 i. Check all extensions and footings in the original 
 books. 
 
 2. Compare each entry in No. i, Members' Pass- 
 Book, with No. 2, Contribution Book, and No. 4, Mem- 
 bers' Ledger. 
 
 3. Compare each entry in No. 3, Disbursement Book, 
 with No. 4, Members' Ledger. 
 
 4. Compare each entry in No. 2, Contribution Book, 
 with No. 4, Members' Ledger. 
 
 5. Compare each entry in No. 2, Contribution Book, 
 and No. 3, Disbursement Book, with No. 5, Cash Book. 
 
 6. Compare No. 7, Treasurer's Receipt Book, with 
 No. 2, Contribution Book, and also with No. 8, Treas- 
 urer's Cash Book, and with No. 3, Disbursement Book. 
 
 7. Compare totals of No. 5, Cash Book, with totals 
 in No. 6, General Ledger. 
 
 [265]
 
 CHAPTER XIX. 
 
 General Outline. 
 
 The accompanying diagram illustrates the posting of 
 different items from book to book until each reaches its 
 final account. In this graphic way the entire system of 
 building association accounts is illustrated at a glance. 
 Since an auditor must follow these postings the diagram 
 will be valuable as a guide. 
 
 Share Contributions. 
 
 A few suggestions may be made as to the proper 
 method of checking up the dues paid in by the share- 
 holders : 
 
 i. The members' pass-books should be examined to 
 see that each has been issued only after the member has 
 complied with the rules for admission, whatever they may 
 be, paid all necessary fees, etc. 
 
 2. Pass-book entries of dues, fines, etc., should be 
 checked up as to amounts and dates. 
 
 3. The accounts in the Members' Ledger should be 
 checked against the pass-book entries to see that all items 
 have been properly posted. 
 
 4. The contributions of each deposit account in the 
 Contribution Book should be added across, and the totals 
 should be compared with the corresponding entries in the 
 Cash Book. 
 
 There is such a variety of methods under which dues 
 are received and recorded that it is difficult to make 
 specific suggestions that will cover all cases. What is 
 said above will be sufficient to put an intelligent auditor 
 upon the right track. 
 
 Proving a Cash Balance. 
 
 The cash balance as shown in the cash book and veri- 
 fied by the bank book of the association, with a proper 
 certificate from the bank and the auditing committee, 
 
 [266]
 
 AUDITING: ITS METHODS. 
 
 w 
 
 Contribution 
 
 Book 
 for entering 
 
 Receipts. 
 
 TrCHiturer't 
 Becelpt. 
 
 DIAGRAM L 
 
 W 
 
 MEMBER'S 
 PASS BOOK. 
 
 INDIVIDUAL 
 
 SHARE HOLDER'S 
 
 LEDGER. 
 
 W 
 
 CASH BOOK. 
 
 — w 
 
 Disbursement 
 
 Withdrawal 
 
 Book 
 or 
 
 Order Book. 
 
 Ti-i'iiHiiror'H 
 Caall. 
 
 [267]
 
 CHAPTER XIX. 
 
 should go to their respective depositories for an actual 
 verification of this account. In those cases where moneys 
 of the association are involved, outside of the bank ac- 
 count, this should be verified by the cash being produced 
 and counted. In case the audit does not take place until 
 some time after the end of the term, the cash on hand 
 at the date of the audit should be counted. 
 
 A statement should be prepared showing receipts and 
 expenditures since the close of the term. By having 
 arrangements for the audit previous to the close of the 
 term, this last expedient will not be necessary, and an 
 element of uncertainty will be removed, for of course, 
 if any fraud were being planned, it would be possible to 
 manipulate the cash account at the close of the term and 
 previous to the date of the audit, so as to show a false 
 balance when the term closed. 
 
 Secretary s Contribution Book. 
 
 It is our purpose to give illustrations of only a few 
 forms that are applicable to the average sized association 
 in operation. Those doing a large business and collecting 
 dues from day to day require an altogether different 
 system for their work. We will not attempt to show 
 their styles and methods, but rather the method of the 
 average association in operation in the United States. 
 
 The following diagram shows a form for rulings, 
 entries, footings and postings for those associations that 
 collect weekly dues — the quarterly or thirteen-weeks con- 
 tribution book. The detailed description and use of this 
 form is given here that it may accompany the form, not 
 because it has anything to do with auditing. 
 
 The sheets are ruled for fifty numbers on a double 
 page, or folio, and are numbered consecutively from 
 i to 50 (the same on both the left and right-hand page) 
 
 [268]
 
 AUDITING: ITS METHODS. 
 
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 Dues. 
 
 
 
 
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 Adm.& I 
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 * 
 
 
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 t 
 
 ■c 
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 [M9]
 
 CHAPTER XIX. 
 
 and from 51 to 100 or 00 on the next double page, 
 both left and right, and this numbering from 1 to 100 
 is continued throughout the book. For the second and 
 subsequent hundred numbers the secretary simply places 
 20 before the first nine numbers and then 2 before all 
 the balance of the second hundred, and this is repeated 
 by placing in a similar manner 3, 4, and 5 before the 
 figures for the subsequent third, fourth and fifth hundred 
 numbers corresponding to the number of pass-books 
 issued. 
 
 The space at the top of each series of columns (dues, 
 interest, premiums, fines) is used for inserting the dates 
 of each weekly meeting. The weekly deposits are entered 
 in their proper column and at the close of each meeting, 
 when receipts are all in, these columns are footed sep- 
 arately, on each page and then the separate totals for all 
 the pages are added to ascertain the totals of dues, 
 interest and fines and these totals again added to ascer- 
 tain the total receipts for the secretary. If the grand 
 total balances with the cash received, which it must do, 
 the secretary then spreads this statement of receipts, duly 
 itemized, upon his minutes, and subsequently posts the 
 items to the proper columns, suitably arranged, in his 
 cash book. 
 
 At the end of the quarter (or 13 weeks) each number 
 or account is footed across the double page into the 
 "Total" column, and these totals are posted to the indi- 
 vidual ledger accounts. 
 
 The footings of these total columns may then be added 
 for as many pages as are used, and then verify cash book 
 totals with them. 
 
 The space at the top of each series of columns is also 
 used by some secretaries for inserting a number for each 
 meeting, besides the date. 
 
 [270}
 
 AUDITING: ITS METHODS. 
 
 When the association becomes a few years old this con- 
 secutive numbering of the meetings is very useful in 
 ascertaining quickly the amount of dues any member 
 should have paid. 
 
 For instance: a borrower starts on the fifteenth meet- 
 ing, paying $2.00 per week, and the secretary wishes to 
 know on the 150th meeting how much this borrower 
 should have paid. He simply subtracts fourteen, the 
 number before the one on which he began, from the 
 150 and gets 136, and this multiplied by $2.00 gives the 
 total payment of dues, $272.00, which should be to his 
 credit. If the credit does not show this amount, then 
 whatever amount is short, indicates the amount in 
 arrears. 
 
 In order to check up any borrower's payments and to 
 avoid looking back over a number of old contribution 
 books, when the account has become one of long stand- 
 ing, it is only necessary to place the number of the meet- 
 ing on which the borrower started on his page in the 
 individual ledger at same time you make entry of his 
 name and date of opening his account. 
 
 This number, minus one, deducted from the number of 
 present meeting, will always give you total number of 
 payments due. This is not an important matter in regard 
 to non-borrowers and so far as they are concerned may 
 be omitted. 
 
 Monthly Secretary's Booh. 
 
 The following diagram shows a form for those associa- 
 tions that collect dues monthly. The form of rulings, 
 entries, footings and postings comprise what is called the 
 contribution book arranged for twelve months or one 
 year. 
 
 [2711
 
 HI \PTER XIX. 
 
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 3 "2 
 
 CO 
 
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 B 
 
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 Pines. 
 
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 Pines. | : : : 
 
 
 
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 fc 
 
 
 
 
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 r- 
 
 
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 No. | 
 
 • 
 
 
 12731
 
 AUDITING: ITS METHODS. 
 
 The explanation just previously given for the detailed 
 use of the 13 weeks book will apply to this monthly book 
 if only modified to suit the difference in the times of 
 payment. 
 
 Secretary s Cash Book. 
 
 An association must have some way of bringing all its 
 accounts together, so that they may be properly sum- 
 marized and balanced, showing total receipt from dues, 
 interest, premiums, fines and other sundry items. This 
 is done through the columnar Cash Book, sometimes 
 called the Itemized Cash Book, or Secretary's Cash Book. 
 
 The rule of debit what you receive and credit what you 
 pay out, holds good with cash, as in all other transactions. 
 The bulk receipts are entered in their respective columns 
 of the Cash Book, debiting cash, while the disbursements 
 are entered in their respective columns, crediting cash. 
 
 The method of checking the Cash Book is illustrated in 
 the diagram on the following page. 
 
 Treasurer's Cash Book. 
 
 The treasurer keeps this book for his own convenience. 
 In it he enters the gross receipts of each meeting and all 
 disbursements. If kept posted properly it shows at all 
 times the exact amount of cash on hand. This book 
 should be checked against the Treasurer's Receipt Book, 
 the Warrant Book, and the Bank Book, an appropriate 
 check sign being placed opposite the last entries in each. 
 
 Members Ledger. 
 
 In checking this book attention must be given to the 
 following points: 
 
 1. The account of each shareholder in the Ledger 
 must be checked by comparison with the entries in his 
 
 [273]
 
 CHAPTER XIX. 
 
 Treasurer's 
 Receipt. 
 
 T>ebite<l 
 
 Dues 
 
 Interest 
 
 Premium 
 
 Fines 
 
 Admission 
 
 Transfer 
 
 Hooks 
 
 Paid on 
 Mortgages 
 
 Paid on Pass 
 Book 
 
 Paid up Stock 
 
 Overs 
 
 Bund. Bills 
 
 DIAGRAM CASH 
 BOOK. 
 
 ; 
 
 Contribution "Book 
 Represents Debits 
 of Cask Account. 
 
 CASH 
 ACCOUNT. 
 
 Order Book 
 
 Represents Credits 
 
 of Cash Account. 
 
 Treasurer's 
 Cosh. 
 
 Credited 
 
 Withdrawals 
 
 Loans on 
 Mortgages 
 
 Loans on 
 Pass Book 
 
 Dividends 
 
 Expenses 
 
 Salary 
 
 Interest 
 
 Shorts 
 
 Stationery 
 
 Paid up Stock 
 Withdrawn 
 
 Sundries 
 
 [274]
 
 AUDITING: ITS METHODS. 
 
 Pass Book. A sign indicating that this has been done 
 should be placed against the Ledger entries, and also 
 opposite the last Pass Book entry. 
 
 2. Items posted from the Contribution Book should 
 be checked by amount, date, and folio, and another 
 appropriate check sign should be placed against the last 
 entries. 
 
 3. Withdrawal items should be checked against the 
 Members' Pass Book, and Warrant Book. 
 
 4. The Dividend account must be examined to see 
 that all dividends due to each member have been properly 
 credited, and, if drawn, the items must be checked against 
 the Warrant Book. 
 
 5. All miscellaneous items, such as assessments, 
 rebates, and everything of that character, must be checked 
 carefully against original entries. 
 
 Withdrawals. 
 
 Auditors should see to it that the files contain properly 
 signed vouchers from withdrawing members, showing 
 the exact amount which has been received. The signa- 
 tures to these vouchers should be compared with those 
 entered in the Constitution Signature Book, if such a 
 Book is kept; if not, he must verify the signature to his 
 own satisfaction in some other way. 
 
 In checking up withdrawals, he should note, — 
 
 1. That applications for money have been entered in 
 the Withdrawal Book in regular chronological order, and 
 that they have been acted upon in this order by the 
 Directors when not paid immediately, as is now usually 
 done. 
 
 2. That all warrants for the payment of withdrawals 
 correspond with the dates and amounts in Cash Book. 
 
 [275]
 
 CHAPTER XIX. 
 
 3. That partial withdrawals are properly noted in the 
 Member's Pass Book ; and, if the withdrawal is complete 
 and absolute, that the Pass Book has been surrendered, 
 and the fact of withdrawal entered therein. 
 
 4. That amounts paid out on withdrawal have been 
 charged against their proper accounts in the Members' 
 Ledger. 
 
 General Ledger. 
 
 This is a very important book in connection with the 
 accounts of the association. In it are summarized the 
 details of all the other books. By it the correctness of all 
 the other accounts is to be finally tested. From it the 
 Balance Sheet is made up. It tests the actual condition of 
 the association's business, indicating the assets and the 
 liabilities, the profits and the losses. As implied in its 
 name, the accounts of this Ledger are the opposite of the 
 individual accounts in the Member's Ledger. Herein is 
 applied the double entry principle in book-keeping. Every 
 debit must have a credit, and vice versa. 
 
 The old system of journalizing is now generally dis- 
 carded, since it involves a great deal of unnecessary labor. 
 Under the later methods each item is entered immediately 
 in its appropriate account, or posted from the books of 
 original entry, without passing through the Journal. 
 
 Even the General Ledger is now dispensed with by 
 many secretaries, by adopting a columnar Cash Book, 
 described on a previous page. 
 
 Building association accounts differ from mercantile 
 accounts in that the transactions are wholly financial, and 
 are uniform. This makes possible more simple methods 
 of book-keeping in certain respects, though the accounts 
 are very intricate on account of the character and multi- 
 plicity of the items. But the same principles of debit and 
 
 [276]
 
 AUDITING: ITS METHODS. 
 
 credit must still lie at the foundation of the system, and 
 the ultimate result of book-keeping- must show the total 
 assets and liabilities, and the profits and losses correctly. 
 If the summarized items under these heads fail to balance, 
 then there is something wrong with the accounts. 
 
 The general accounts necessary are as a rule as they 
 appear in the secretary's balance sheet on a subsequent 
 page. 
 
 Assets and Liabilities. 
 
 The assets and liabilities may have some such classifi- 
 cation as follows — also shown in secretary's balance 
 sheet : 
 
 ASSETS. 
 
 Cash on hand, 
 
 Loans on mortgage security, 
 
 Loans on stock, certificates or 
 pass-book security, 
 
 Loans on all other security. 
 
 Furniture and fixtures, 
 
 Real estate, 
 
 Real estate sold on contract, 
 
 Real estate — office building, 
 
 Due from borrowers for insur- 
 ance and taxes, 
 
 Bonds, 
 
 Deposits in other building and 
 loan associations, 
 
 Deposits in other financial insti- 
 tutions, 
 
 Other assets in detail. 
 
 TOTAL, 
 Interest due and uncollected. 
 
 LIABILITIES. 
 Runnings stock and dividends, 
 Credits on mortgage loans, 
 Credits on other loans, 
 Credits on real estate sold on 
 
 contract, 
 Paid-up stock and dividends, 
 Permanent (non-withdrawable) 
 
 stock. 
 Deposits and accrued interest, 
 Deposits secured by collateral. 
 Reserve fund, 
 Undivided profit fund, 
 Borrowed money and accrued 
 
 interest, 
 Contingent profit on real estate 
 
 sold on contract, 
 Due borrowers on unfinished 
 
 buildings, 
 Deposits from other building 
 
 and loan associations, 
 Deposits from other financial in- 
 stitutions, 
 Other liabilities in detail. 
 
 TOTAL, 
 Interest due and uncollected. 
 
 is 
 
 (277]
 
 CHAPTER XIX. 
 
 The schedule must be sufficiently comprehensive in its 
 details to include everything, and the audit must be so 
 conducted as to trace every item into this schedule so that 
 each summary may be fully verified. 
 
 The amount by which the assets may exceed the liabil- 
 ities is usually called the Reserve Fund and Undivided 
 Profit Account. 
 
 The amount by which the liabilities may exceed the 
 assets is usually called Shortage or Deficiency. 
 
 Auditor's Report on Special Matters. 
 
 Where everything is found correct and in good form 
 the auditor's regular certificate is usually about all that he 
 need file in the way of a report. In some cases, although 
 he may sign the regular certificate, there may be some 
 matters to which he may deem it necessary to call the 
 attention of the shareholders. In deciding as to whether 
 or not he should make any report on such special matters, 
 or should make any incidental suggestions, he must be 
 guided by what may seem to him to be necessary for the 
 welfare of the association. A few illustrations may be 
 suggestive : 
 
 The auditor may differ with the secretary or the direc- 
 tors upon some matter which may be of importance to 
 the interests of the association. If so, he should state the 
 matter plainly so that it may be clearly understood, being 
 careful, however, not to be too elaborate and therefore 
 tedious, and should give illustration when possible. 
 
 He might find that the secretary or other officer was 
 underpaid or overworked, and might think it better for 
 the association if this were corrected. 
 
 He might discover that the officers were not afforded 
 proper facilities for transacting the association's business 
 and that its interests were in consequence crippled or 
 jeopardized, and could make some recommendation. 
 
 [278]
 
 AUDITING: ITS METHODS. 
 
 He might find that the system for filing and caring for 
 mortgages, insurance policies, notes, and other papers, 
 was not a good or safe one. 
 
 Many other such incidental matters might claim his 
 attention. 
 
 In making special reports on any miscellaneous matters 
 an auditor should act deliberately. He should be careful 
 not to do anything which might be used to the disad- 
 vantage of the association or its officers by some dis- 
 gruntled or unwise member, or some officious or antag- 
 onistic outsider. 
 
 In any case where he finds that the accounts and 
 records are grossly inaccurate and incomplete, either 
 through carelessness, incompetency, or a purpose to de- 
 ceive on the part of the officers, his duty is plain. He 
 must not only withhold his certificate but must report 
 facts as he finds them to the association. 
 
 Auditor's Certificate. 
 
 When the Auditor has completed his task, if he has 
 found everything correct, he should prepare and sign a 
 certificate in some such form as follows : 
 
 To the Shareholders of the 
 
 Building and Loan Association. 
 I have carefully examined the books, vouchers, cash, and accounts 
 of your Association, and find the same to correspond with the 
 
 Balance Sheet as presented under date of 
 
 I also find the present conditions of the Association to be correctly 
 presented in said Balance Sheet. 
 
 Respectfully, 
 
 Auditor. 
 
 Safety Insured. 
 
 The suggestions here made are sufficient to put an 
 inexperienced auditor on his guard, and also to indicate 
 
 [2791
 
 CHAPTER XIX. 
 
 to members something of what is involved in an audit, 
 and to show the character of person that should be ap- 
 pointed as auditor. 
 
 If auditing were always faithful and efficient it would 
 save much trouble, anxiety, and loss to members. Even 
 if the account is correct, or if there are unintentional 
 errors in it, it is only regular and competent auditing that 
 will insure permanent confidence in the association on the 
 part of members and of the public. There always are 
 apt to be a few members at least, and not a few outsiders, 
 who look upon an association with more or less distrust. 
 If such as these see that the affairs of an association are 
 regularly and systematically investigated, then their con- 
 fidence sooner or later becomes established. Under such 
 a system officials would soon learn that it was impossible 
 to secure the auditor's certificate to unreliable and incor- 
 rect accounts and statements, and shareholders would 
 understand that the practice of any fraud upon them 
 would be impossible. 
 
 By the adoption of some such system of auditing as is 
 here presented, shareholders make such provisions and 
 take such precautions as will render mistakes well nigh 
 impossible. They have delegated authority to two rep- 
 resentative bodies, each of which acts as a check upon the 
 other. The board of directors is an administrative body; 
 the auditor or auditors constitute a supervising and re- 
 viewing department. 
 
 The directors and secretary are compelled to be watch- 
 ful, for they know all their work will be under critical 
 review. 
 
 The auditor must prove himself competent and do his 
 work faithfully, or his inefficiency will be apparent in the 
 course of time. 
 
 State supervision, so far as it has yet been developed, 
 does not remove the necessity for private auditing. 
 
 [280]
 
 AUDITING: ITS METHODS. 
 
 Indeed, it enforces this necessity, and this is its object. 
 A state supervising official does not take the place of the 
 regular auditor. While it is made the duty of the state 
 officials to make personal examination of the business of 
 associations, not alone at regular stated periods but also 
 at irregular and unexpected times, still it remains for the 
 management of the associations to see that proper audit- 
 ing" g° es hand in hand with the examinations that are 
 now made by state officials. 
 
 It is to be hoped that the various officers of the differ- 
 ent states having in charge this work will organize a 
 permanent organization among themselves, so that with 
 closer communication and exchange of ideas the efficiency 
 of these departments can be greatly enhanced. 
 
 [2811
 
 CHAPTER XX. 
 
 Reports. 
 
 Their Necessity. 
 
 One of the chief arguments in favor of the building 
 association as a saving society is the fact that it is man- 
 aged by the members themselves, and that they may 
 therefore at all times know exactly the status of their own 
 money, and also the condition of the association. Mem- 
 bers can gain this knowledge only through the regular 
 periodical publication of reports. The issuing of such 
 reports, therefore, is one of the most important duties of 
 the officers of an association. Consequently, the im- 
 portance of preparing and publishing correct reports of 
 the business transactions — with itemized exhibits of all 
 receipts and disbursements, together with all informa- 
 tion as to the details of its affairs — cannot be too strongly 
 urged upon the officers of an association. 
 
 In order that a report shall be of the highest value 
 it is necessary that not only shall it be accurate, but 
 that it shall be published at sufficiently short intervals 
 to enable the members to keep the run of the business 
 in their minds, and also to give them opportunity to 
 take steps, when necessary, to correct any evils that may 
 be found to exist. Such reports should be rendered at 
 least once every six months, and a copy should be placed 
 in the hands of each member. 
 
 If an association is properly conducted and its business 
 in a prosperous condition, not only will the circulation 
 of reports give satisfaction to its members, but they may 
 be used for advertising purposes. In this way additional 
 
 [282]
 
 REPORTS. 
 
 members may be brought in and the prosperity and use- 
 fulness of the association increased. The knowledge 
 that reports must be printed and circulated at stated 
 periods tends to put both officers and members upon their 
 mettle, and thus insures better management for the asso- 
 ciation. Every one connected with an association feels 
 a just pride in their ability to present so favorable a 
 report. 
 
 On the other hand, if an association is not prosperous, 
 the sooner and the more completely this fact is made 
 known to its members, the better it is for all concerned. 
 If the evils found to exist are curable, they may be 
 remedied promptly, and the association be put upon a 
 better basis. If they are incurable, steps may be taken 
 to wind up the association before its affairs become 
 seriously involved. Under such circumstances, moreover, 
 the public would be warned by the publication of an 
 accurate report, and outsiders thus would not become 
 involved by becoming members. 
 
 Legal Requirements. 
 
 So important is this matter of reports that many of 
 the states have enacted statutes requiring that such re- 
 ports shall be made, and outlining their form and char- 
 acter. To quote in full the statutory provisions of the 
 different states which relate to this subject, and to enter 
 into a comparison and discussion of them, would be 
 foreign to the purpose of this work. 
 
 Preparation and Publication of Reports. 
 
 Whether the statutes require periodical reports to be 
 made or not, such reports are provided for in the constitu- 
 tion, by-laws, and rules of the associations themselves. 
 In these provisions the form of the report is outlined in a 
 
 [288]
 
 CHAPTER XX. 
 
 general or specific way, and also the method of its publi- 
 cation. The exact form in which the report of any asso- 
 ciation shall be presented and the method of its publica- 
 tion must therefore be determined by the statutory re- 
 quirements and by its own rules. It should be so com- 
 prehensive in scope and elaborate in detail as to make it 
 self-explanatory. It is also very desirable that reports be 
 printed, so that they may be readily available for exam- 
 ination by all members and other persons interested. 
 
 The chief part of the work in the preparation of a 
 report usually devolves upon the secretary. Promptly, at 
 the close of each fiscal term, the secretary should present 
 a properly formulated and tabulated report of the business 
 of the entire term to the directors. The directors should 
 refer it to the auditing committee for examination and 
 verification. When the directors and officers are satisfied 
 that the report is correct, the secretary, or the secretary 
 and the president if so required, should make oath or 
 affirmation to its correctness. It is advisable that the 
 report when completed be published in the newspapers or 
 printed in convenient form before the meeting of the 
 stockholders at which it is to be presented, so that each 
 member may have full opportunity to examine it and to 
 learn the exact standing of the association and the condi- 
 tion of its business. 
 
 Secretary's Balance Sheet. 
 
 An examination of the reports of numerous associa- 
 tions shows that the accounts most generally carried by 
 secretaries are as illustrated in the following balance 
 sheets which are printed here as a suggestive guide for 
 the officers of new associations — the first one being that 
 of a serial association and the second one that of a per- 
 manent association : 
 
 [284]
 
 REPORTS. 
 
 SPECIMEN REPORT— SERIAL PLAN ASSOCIATION. 
 TWENTY-SEVENTH ANNUAL STATEMENT 
 
 OF THE 
 
 Savings, Loan and Building Ass'n 
 
 For the year ending December 31, 1919. 
 
 RECEIPTS. 
 
 Installments (dues) $ 56,827 00 
 
 Interest 18,379 80 
 
 Fines 242 90 
 
 Membership fees 158 60 
 
 Transfer fees 10 50 
 
 Matured stock 10,300 00 
 
 Rents 394 40 
 
 Loans repaid and matured 64,750 00 
 
 Sale of real estate 6,720 72 
 
 Bills payable 4,472 35 
 
 Bills receivable 3,000 00 
 
 Outstanding orders 1,000 00 
 
 From Treasurer 3,707 86 
 
 Total $168,963 62 
 
 ASSETS. 
 
 Loans to stockholders $303,260 00 
 
 Installments unpaid 1,766 60 
 
 Interest unpaid 921 00 
 
 Fines unpaid 36 95 
 
 Real estate 7,200 00 
 
 Real estate sold on con- 
 tract 3,386 00 
 
 Furniture and stationery. . 200 00 
 
 Total $816,747 45 
 
 DISBURSEMENTS. 
 
 By balance of last state- 
 ment $ 3,791 49 
 
 Loans on real estate and 
 
 shares 79,200 00 
 
 Installments withdrawn and 
 
 matured 48,769 00 
 
 Interest on stock withdrawn 
 
 and matured 13,987 72 
 
 Expenses 2,647 86 
 
 Taxes, insurance and repairs 341 70 
 
 Real estate sold on contract 385 00 
 
 Real estate 606 41 
 
 Bills payable 7,734 85 
 
 Bills receivable 3,000 00 
 
 Matured stock 8,500 00 
 
 Total $168,963 62 
 
 LIABILITIES. 
 
 Installments paid on stock. $2)7, 543 60 
 Ad. Pay. does $923.50— 
 
 inter. $68.76 977 26 
 
 Installments due 1,755 60 
 
 Matured stock 33,000 00 
 
 Bills payable 2,692 35 
 
 Due Treasurer 3,707 86 
 
 Outstanding orders 1,000 00 
 
 Contingent fund 11,660 00 
 
 Profit 44.411 60 
 
 Total $816,747 46 
 
 SERIES OF STOCKS. VALUES, ETC. 
 
 
 Time in 
 
 Shares in 
 
 Shares 
 
 Dues Paid 
 
 Profit 
 
 Value 
 
 cries 
 
 Mos. 
 
 Force 
 
 Loaned on 
 
 Per Share 
 
 Per Share 
 
 Per Share 
 
 17 
 
 182 
 
 266 
 
 74 % 
 
 $66 00 
 
 $22 94 
 
 $88 94 
 
 B 
 
 128 
 
 35 
 
 •i*'A 
 
 64 00 
 
 21 40 
 
 85 40 
 
 C 
 
 124 
 
 10 
 
 10 
 
 62 00 
 
 20 08 
 
 82 08 
 
 18 
 
 120 
 
 386 
 
 47 
 
 60 00 
 
 18 79 
 
 78 79 
 
 B 
 
 116 
 
 9 
 
 *% 
 
 68 00 
 
 17 67 
 
 76 57 
 
 19 
 
 108 
 
 339 
 
 30 V, 
 
 64 00 
 
 16 23 
 
 09 23 
 
 M 
 
 104 
 
 132 
 
 22 
 
 62 00 
 
 14 12 
 
 60 12 
 
 c 
 
 100 
 
 7 
 
 6S 
 
 60 00 
 
 13 06 
 
 63 06 
 
 20 
 
 90 
 
 324 
 
 24 
 
 48 00 
 
 12 08 
 
 00 03 
 
 B 
 
 92 
 
 19 
 
 8/ a 
 
 46 00 
 
 11 06 
 
 67 06 
 
 C 
 
 88 
 
 B0 
 
 10 
 
 44 00 
 
 10 11 
 
 64 11 
 
 21 
 
 84 
 
 400 
 
 22 
 
 42 00 
 
 9 21 
 
 61 21 
 
 B 
 
 80 
 
 87 
 
 8«J4 
 
 40 00 
 
 8 36 
 
 48 30 
 
 C 
 
 76 
 
 106 
 
 120 
 
 38 00 
 
 7 64 
 
 46 64 
 
 [»]
 
 CHAPTER XX. 
 
 
 Time in 
 
 Shares in 
 
 Shares 
 
 Dues 
 
 Paid 
 
 Pre 
 
 fit 
 
 Value 
 
 Scries 
 
 Moj. 
 
 Force 
 
 Loaned on 
 
 Per Share 
 
 Per Share 
 
 Per Share 
 
 22 
 
 78 
 
 478 
 
 66 y, 
 
 $36 
 
 00 
 
 $6 
 
 77 
 
 $42 77 
 
 B 
 
 68 
 
 123 
 
 123 
 
 34 
 
 00 
 
 8 
 
 04 
 
 40 04 
 
 C 
 
 64 
 
 48 
 
 48 
 
 32 
 
 00 
 
 5 
 
 85 
 
 37 35 
 
 u 
 
 60 
 
 613 
 
 50 
 
 30 
 
 00 
 
 4 
 
 70 
 
 84 70 
 
 B 
 
 68 
 
 145 
 
 142 
 
 28 
 
 00 
 
 4 
 
 09 
 
 32 00 
 
 C 
 
 52 
 
 92 
 
 WY, 
 
 26 
 
 00 
 
 8 
 
 68 
 
 29 53 
 
 24 
 
 48 
 
 550 
 
 104 
 
 24 
 
 00 
 
 3 
 
 00 
 
 27 00 
 
 B 
 
 44 
 
 188 
 
 187 Y, 
 
 22 
 
 00 
 
 9 
 
 52 
 
 24 62 
 
 C 
 
 40 
 
 147 
 
 uoyi 
 
 125VS 
 
 20 
 
 00 
 
 2 
 
 09 
 
 22 09 
 
 n 
 
 M 
 
 635 
 
 18 
 
 00 
 
 1 
 
 69 
 
 IB 69 
 
 B 
 
 32 
 
 193 
 
 192 V4 
 
 16 
 
 00 
 
 1 
 
 38 
 
 17 33 
 
 C 
 
 28 
 
 89 
 
 88 Yt 
 
 14 
 
 00 
 
 1 
 
 02 
 
 15 02 
 
 26 
 
 24 
 
 991 
 
 211 
 
 12 
 
 00 
 
 
 75 
 
 12 75 
 
 B 
 
 M 
 
 290 
 
 289^ 
 
 10 
 
 00 
 
 
 52 
 
 10 62 
 
 C 
 
 16 
 
 102 
 
 102 
 
 8 
 
 00 
 
 
 33 
 
 8 33 
 
 27 
 
 12 
 
 1094 
 
 X19Y, 
 
 6 
 
 00 
 
 
 19 
 
 6 19 
 
 B 
 
 8 
 
 319 
 
 307 
 
 4 
 
 00 
 
 
 08 
 
 4 08 
 
 C 
 
 4 
 
 210 
 
 208 
 
 2 
 
 00 
 
 
 02 
 
 2 02 
 
 SUMMARY 
 
 OF THE 
 
 BUSINESS OR TUB ASSOCIATION 
 
 For the past twenty-seven years. 
 
 RECEIPTS. 
 
 From dues $1,219,846 25 
 
 
 329,931 80 
 
 From premiums 
 
 56,342 47 
 6,089 40 
 
 
 From membership fee;-. . 
 
 3,961 60 
 
 
 367 75 
 
 From loans repaid and 
 
 
 
 1,206,675 00 
 
 
 10,503 33 
 
 From taxes and insur- 
 
 
 ance repaid 
 
 1,018 69 
 
 From safe 
 
 130 00 
 
 From sale of real estate. 
 
 56,143 47 
 
 From real estate contracts 
 
 3,295 00 
 
 From bills payable 
 
 41,850 95 
 
 From bills receivable.... 
 
 3,740 00 
 
 From matured stock.... 
 
 45,200 00 
 
 Balance due Treasurer. . 
 
 4,707 35 
 
 DISBURSEMENTS. 
 
 For loans to stockholders. $1,509,925 00 
 For stock withdrawn and 
 
 matured 1,001,314 50 
 
 For interest and profit on 
 
 stock withdrawn and 
 
 matured 286,738 89 
 
 For fixtures, furniture, etc. 324 82 
 
 For expenses 57,099 27 
 
 For taxes and insurance 
 
 advanced 2,732 76 
 
 For real estate and cert. 
 
 of purchase 45,516 62 
 
 For real estate sold on 
 
 contract 24,682 00 
 
 For taxes, insurance and 
 
 repairs 6,050 60 
 
 For bills payable 39,158 60 
 
 For bills receivable 3,740 00 
 
 Matured stock 12,500 00 
 
 Total $2,989,783 06 
 
 Total $2,989,783 00 
 
 State of County of ss. 
 
 , Secretary of the Savings, Loan and Building 
 
 Association, being first duly sworn upon his oath, deposes and says that the 
 foregoing statement is a full, complete and true statement and report in all 
 
 particulars of the Savings, Loan and Building Association for the 
 
 fiscal year ending December 31, 1919, and that the answers to the questions 
 herein are true to the best of his knowledge and belief. 
 
 Subscribed and sworn to before me this 31st day of December, A. D. 1919. 
 [SEAL] Notary Public. 
 
 We, the undersigned stockholders but not officers of the 
 
 Savings, Loan and Building Association, hereby certify that the foregoing state- 
 ment is true in all particulars, to the best of our knowledge and belef. 
 
 AUDITING COMMITTEE. 
 
 Dated at this 3lst day of December, A. D. 1919. 
 
 [288]
 
 REPORTS. 
 
 Specimen Reports. 
 
 These are not given as models, but simply as illustra- 
 tions of the forms in which reports are presented. The 
 reports given possess some very commendable features. 
 
 While the particular form which a report shall take 
 is governed chiefly by the requirements of the statutes 
 and the rules of the association, yet the taste and judg- 
 ment of the secretary and the directors, custom, and the 
 circumstances of the association at the time the report is 
 made, may give it special features of interest. As will be 
 seen, the reports printed are mostly all tabulated matter. 
 Every report should include, in addition to tabulated and 
 summarized statements of this character, such miscel- 
 laneous statements and information as are of special 
 interest to the members and friends of the association. 
 Many secretaries make their reports of great interest and 
 value, and in this way add much to the popularity and 
 success of their associations. 
 
 As already said, an association, to attract membership 
 and business, must be advertised in a community, and the 
 best method for doing this is by the general circulation 
 of well-prepared reports, giving full and explicit informa- 
 tion in reference to its business and methods. Secretaries 
 and directors, in the preparation and publication of re- 
 ports, should bear this advertising feature in mind, and 
 should arrange reports so as to be used in this way. 
 
 latfi
 
 CHAPTER XX. 
 
 FINANCIAL STATEMENT 
 
 Of THE 
 
 Of 
 
 For trie Fiscal Year Ending 19 . 
 
 ASSETS. LIABILITIES. 
 
 Cash on hand $ Running stock and dividends. . 5 . 
 
 Loans on mortgage security Credits on mortgage loans 
 
 Loans on stock, certificates or Credits on other loans........ . 
 
 pass-book security Credits on real estate sold on 
 
 Loans on all other security. ... contract . . . 
 
 Furniture and fixtures Paid-up stock and dividends.. . 
 
 Real estate Permanent (non- withdrawable) 
 
 Real estate sold on contract stock . . . 
 
 Real estate — office building Deposits and accrued interest. . 
 
 Due from borrowers for insur Deposits secured by collateral 
 
 *nce and taxes Reserve fund. . . 
 
 Bonds Undivided profit fund 
 
 Deposits in other building and Borrowed money and accrued 
 
 and loan associations interest 
 
 Deposits in other financial in- Contingent profit on real estate 
 
 stitutions sold on contract 
 
 Other assets in detail Due borrowers on unfinished 
 
 buildings 
 
 Deposits from other building 
 
 and loan associations 
 
 Deposits from other financial 
 
 institutions 
 
 Other liabilities in detail 
 
 Total $ Total $_• 
 
 Interest due and uncollected. $ Interest due and uncollected. .$. 
 
 13881
 
 REPORTS. 
 
 RECEIPTS. 
 
 DISBURSEMENTS. 
 
 Dues on running stock $ Loans on mortgage security. . . $ . 
 
 Paid-up stock Loans on stock, certficates or 
 
 Deposits pass-book security 
 
 Credits on mortgage loans Loans on all other security. . . . 
 
 Loans on mortgage security Unfinished building account. . . 
 
 repaid Withdrawals of running stock 
 
 Loans on stock, certificates or and dividends ■ 
 
 pass-book security repaid Withdrawals of paid-up stock.. 
 
 Loans on all other security re- Withdrawals of deposits 
 
 paid Borrowed money 
 
 Unfinished building account Deposits in other building and 
 
 Borrowed money 
 
 Deposits from other building 
 
 and loan associations 
 
 Deposits from other financial 
 
 institutions 
 
 Real estate sold 
 
 Real estate sold on contract 
 
 Insurance and taxes refunded 
 
 by borrowers 
 
 loan associations. 
 Deposits in other financial in- 
 stitutions 
 
 Insurance and taxes paid for 
 
 borrowers 
 
 Real estate (purchase price) . . 
 
 Real estate on contract 
 
 Dividends on paid-up stock... 
 
 Interest on deposits 
 
 Interest Interest on borrowed money. . 
 
 Premium Repairs on company's real estate 
 
 Fines Taxes 
 
 Transfer fees Salaries of officers and directors 
 
 rent and legal 
 
 Pass-books and initiation fees 
 
 Rents from company's real 
 estate 
 
 Deposits in other building and 
 loan associations withdrawn 
 
 Deposits in other financial in- 
 stitutions withdrawn 
 
 Sale of bonds 
 
 Other receipts in detail Mortgage credits transferred 
 
 to repay loans 
 
 Office _ help, 
 
 services 
 
 All other expenses 
 
 Deposits by other building and 
 loan associations withdrawn 
 
 Deposits by other financial in- 
 stitutions withdrawn 
 
 Bonds purchased. 
 
 Purchase of furniture and fix- 
 tures 
 
 Total $. 
 
 Cash on hand at close of last 
 
 Total 
 
 fiscal year Cash on hand. 
 
 Total 
 
 Total *• 
 
 EARNINGS. 
 
 Premium 
 
 Fines 
 
 Transfer fees 
 
 Pass-books and initiation fees. 
 Rent from company's real estate 
 Transferred from undivided 
 
 Total f. 
 
 DISTRIBUTION. 
 
 Interest $ Dividends on running stock. . .$ 
 
 Dividends on mortgage loan 
 
 credits 
 
 Dividends on paid ; up stock... 
 
 Reserve fund credit . ._ 
 
 Undivided profit credit 
 
 Interest on deposits. 
 
 profit fund Interest on borrowed money . . 
 
 Salaries of officers and directors 
 Office help, rent and legal 
 
 services 
 
 All other expenses 
 
 Taxes 
 
 Repairs on company's real estate 
 Furniture and fixtures 
 
 Total $• 
 
 > Auditin 
 
 g Committee. 
 
 128»1
 
 CHAPTER XX. 
 
 SPECIMEN REPORT— PERMANENT PLAN 
 ASSOCIATION. 
 
 ASSETS, 
 on band $ 
 
 mortgage se- 
 
 Cub 
 
 Loans on 
 
 entity 
 
 Loans on stock, certifi- 
 cates or pass-book security 
 Loans on all other security 
 Due from borrowers for 
 insurance and taxes... 
 
 Bonds .••:•• 
 
 Deposits in other building 
 and loan associations.. 
 
 45,267 
 1,986,904 
 
 2.880 
 2,610 
 
 224 
 14,650 
 
 65 
 
 82 
 
 00 
 00 
 
 94 
 00 
 
 5,000 00 
 
 Total $2,057,537 41 
 
 Interest due and uncol- 
 lected $ 2,612 11 
 
 RECEIPTS. 
 
 Deposits $1,360,674 02 
 
 Loans on mortgage se- 
 curity repaid 601,180 68 
 
 Loans on stock, certifi- 
 cates or pass-book security 1,285 00 
 
 Loans on all other secur- 
 ity repaid 16,829 36 
 
 Deposits from other build- 
 ing and loan associations 62,000 00 
 
 Insurance and taxes re- 
 funded by borrowers.. 3,283 14 
 
 Interest 135,540 39 
 
 Safety deposit boxes 180 00 
 
 Excise tax refunded 303 98 
 
 Deposits in other build- 
 ing and loan associa- 
 tions withdrawn 10,000 00 
 
 Sale of bonds 172,350 00 
 
 Total $2,363,126 57 
 
 Cash on hand at close of 
 
 last fiscal year 203,377 50 
 
 LIABILITIES. 
 
 Paid-up stock and divi- 
 dends $ 262,500 00 
 
 Deposits and accrued in- 
 terest 1,359,720 18 
 
 Reserve fund 150,000 00 
 
 Undivded profit fund 40,596 80 
 
 Due borrowers on unfin- 
 ished buildings 149,720 43 
 
 Deposits from other build- 
 ing and loan associations 70,000 00 
 
 Deposits from other finan- 
 cial institutions 25,000 00 
 
 Total $2,057,537 4 1 
 
 Interest due and uncol- 
 lected $ 2,612 11 
 
 DISBURSEMENTS. 
 
 Loans on mortgage se- 
 curity ..$ 711,385 
 
 Loans on stock, certifi- 
 cates or pass-book security 1,650 
 
 Loans on all other security 4,600 
 
 Withdrawals of deposits. 1,447,235 
 
 Deposits in other build- 
 ing and loan associations 
 
 Insurance and taxes paid 
 for borrowers 
 
 Dividends on paid-up stock 
 
 Interest on deposits 
 
 Salaries of officers and 
 directors 
 
 Office help, rent and legal 
 services 
 
 All other expenses 
 
 Deposits by other build- 
 ing and loan associa- 
 tions withdrawn 
 
 Deposits by other finan- 
 cial institutions with- 
 drawn 10,000 00 
 
 Bonds purchased 187,000 00 
 
 74 
 
 00 
 00 
 08 
 
 6,000 00 
 
 3,152 97 
 27,500 00 
 22,804 36 
 
 12,060 00 
 
 10,250 
 6,698 
 
 00 
 27 
 
 78,000 00 
 
 Total $2,521,236 42 
 
 Cash on hand 45,267 66 
 
 Total $2,566,504 07 Total $2,666,504 07 
 
 PROFIT AND LOSS. 
 
 EARNINGS. 
 
 Interest $ 135,640 39 
 
 Safety deposit boxes 180 00 
 
 Excise tax refunded 308 98 
 
 DISTRIBUTION. 
 
 Dividends on paid-up 
 
 stock $ 25,000 00 
 
 Undivided profit credit.. 23,530 20 
 
 Interest on deposits 69,585 90 
 
 Salaries of officers and 
 
 directors 12,060 00 
 
 Office help, rent and legal 
 
 services 10,250 00 
 
 All other expenses 6,598 27 
 
 Total $ 136,024 87 
 
 Total $ 136,024 87 
 
 '■ Auditing Committee. 
 
 [290]
 
 CHAPTER XXI. 
 
 Rebate and Compound Interest Tables 
 
 TABLE No. 1.— REBATE PERMANENT PLAN. 
 
 Showing the Course and Results of a Loan of Two Shares of 
 
 $500.00 Each, or $1,000.00. 
 
 Prepared by W. H. Jones, Public Accountant, Cincinnati, O. 
 
 Payments of dues, 50c. per share; $1.00 per week; $26.00 every 6 months. 
 Payments of interest, 60c. per share; $1.20 per week; $31.20 every 6 months. 
 Payments of $52.00 each year is credited on the mortgage, reducing the interest 
 at 6% per annum, or 6c. per week, or $1.56 each 6 months— 43.12 each year. 
 
 The average value of the 2 shares first 6 months in each year is $13.00. 
 The average value of the 2 shares second 6 months in each year is $39.00. 
 2^4% dividends on these average values is 32c. and 97c. respectively. 
 
 
 
 
 ja 
 
 J3 
 u 
 
 
 +-* 
 
 • 
 
 c 
 
 3 
 
 \ 
 
 
 S^ . o 
 
 Sue!; 
 
 3 U O 
 
 ■a o rt 
 "ecu 
 
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 tu tea 
 
 t— i O, 4> C 
 
 > 
 
 H 
 
 Q S. 
 
 ojQ«o 
 
 ffl O 4* >» 
 
 lEnd 
 
 of 26 weeks 
 
 $26 00 1 
 
 32 
 
 
 
 $31 20 
 
 1st 1 ' 
 
 ' 62 " 
 
 52 00 
 
 97 
 
 $52 00 
 
 $948 00 
 
 31 20 
 
 1 
 
 26 " 
 
 26 00 | 
 
 32 
 
 
 
 29 64 
 
 2d 
 
 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 896 00 
 
 29 64 
 
 I 
 
 26 " 
 
 26 00 | 
 
 32 
 
 
 
 28 08 
 
 3d 
 
 52 " 
 
 52 00 
 
 97 
 
 62 00 
 
 844 00 
 
 28 08 
 
 1 
 
 26 " 
 
 26 00 | 
 
 32 
 
 
 
 26 52 
 
 4th .... 
 
 ' 52 " 
 
 62 00 
 
 97 
 
 52 00 
 
 792 00 
 
 26 52 
 
 f 
 
 1 26 " 
 
 26 00 | 
 
 82 
 
 
 
 24 96 
 
 5th 
 
 ' 52 " 
 
 52 00 
 
 97 
 
 62 00 
 
 740 00 
 
 24 96 
 
 * 
 
 26 " 
 
 26 00 
 
 32 
 
 
 
 23 40 
 
 6th 
 
 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 688 00 
 
 23 40 
 
 1 
 
 26 " 
 
 26 00 
 
 32 
 
 
 
 21 84 
 
 7th 
 
 62 " 
 
 52 00 
 
 97 
 
 52 00 
 
 636 00 
 
 21 84 
 
 I 
 
 26 " 
 
 26 00 
 
 32 
 
 
 
 20 28 
 
 8th 
 
 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 584 00 
 
 20 28 
 
 4 
 
 26 " 
 
 26 00 
 
 82 
 
 
 
 18 72 
 
 9th 
 
 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 532 00 
 
 18 72 
 
 1 
 
 ' 26 " 
 
 26 00 
 
 32 
 
 
 
 17 16 
 
 10th ... 
 
 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 480 00 
 
 17 16 
 
 ' 
 
 26 " 
 
 26 00 
 
 32 
 
 
 
 15 60 
 
 11th ... ' 
 
 62 " 
 
 52 00 
 
 97 
 
 52 00 
 
 428 00 
 
 15 60 
 
 
 26 " 
 
 26 00 
 
 82 
 
 
 
 14 04 
 
 12th ... 
 
 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 376 00 
 
 14 04 
 
 4 
 
 26 " 
 
 26 00 
 
 32 
 
 
 
 12 48 
 
 13th ... 
 
 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 324 00 
 
 12 48 
 
 i 
 
 ' 26 
 
 62 " 
 
 26 00 
 52 00 
 
 32 
 
 62 00 
 
 272 00 
 
 10 92 
 
 
 1? Mi 
 
 578 76 
 
 14th ... 
 
 97 
 
 10 92 
 
 
 • 26 *' 
 
 26 00 
 
 32 
 
 
 
 9 30 
 
 16th ... 
 
 62 " 
 
 52 00 
 
 97 
 
 62 00 
 
 220 00 
 
 9 36 
 
 
 26 " 
 
 26 00 
 
 32 
 
 
 
 7 80 
 
 16th . . . 
 
 62 " 
 
 52 00 
 
 97 
 
 62 00 
 
 168 00 
 
 7 80 
 
 
 26 " 
 
 20 00 
 
 32 
 
 
 
 6 24 
 
 17th ... 
 
 62 " 
 
 52 00 
 
 97 
 
 62 00 
 
 110 00 
 
 6 24 
 
 
 26 " 
 
 26 00 
 
 32 
 
 
 
 4 68 
 
 18th ... 
 
 62 " 
 
 62 00 
 
 97 
 
 62 00 
 
 64 00 
 
 4 68 
 
 
 26 " 
 
 26 00 
 
 82 
 
 
 
 8 12 
 
 19th ... 
 
 41 " 
 
 41 00 
 
 1 
 
 
 41 00 
 
 23 00 
 
 2 40 
 
 
 
 $28 64 
 
 $977 00 
 
 
 $051 42 
 
 [291
 
 CHAPTER XXI. 
 
 EXPLANATION AND REMARKS. 
 
 Total length of time, 18 years, 9 months and two weeks, or 977 
 weeks. 
 
 Total amount paid as dues $ 977 00 
 
 Total amount of dividends 23 54 
 
 Total amount of credits $1,000 54 
 
 Less amount dues already applied on mortgage 977 00 
 
 $ 23 54 
 Less amount of dividends transferred to mortgage 99 00 
 
 $ 54 
 
 The company will now pay the borrower 54 cents and return his 
 cancelled mortgage in full settlement. 
 
 Now, how about the interest account, the rebates and the cost 
 of the loan? There has been considerable confusion and misunder- 
 standing — as well as misstatements on these points. If the borrower 
 had taken a straight loan on the basis of the interest charged in the 
 above table it would have cost him in interest 977 times 
 
 $1.20 or $1,172 40 
 
 But he actually paid according to the table only 651 42 
 
 Leaving an amount which represents his rebates of $ 520 98 
 
 In addition to the above he was credited with current divi- 
 dends of 23 54 
 
 Making a total earning on the money he saved of 544 52 
 
 The interest he actually paid on his loan was $ 651 42 
 
 The interest he earned on the money he saved was 544 52 
 
 The actual difference in interest is the gross earnings to the 
 
 company $106 90 
 
 This $106.90 is not what the loan of $1,000.00 from the building 
 association cost the borrower, but rather the difference in cost be- 
 tween what he paid them for $1,000.00 and what they paid or allowed 
 him on the $1,000.00 he saved and returned to them in installments. 
 In other words, his money simply was not worth quite so much in 
 interest as the interest he paid the association on its money. 
 
 You must bear in mind, that, when the borrower began the loan, 
 there was only $1,000.00 involved, but when the transaction was con- 
 summated and the money repaid, the building association not only 
 
 [292]
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 received its $1,000.00 back, but he then had $1,000.00 in his home 
 that he didn't have when he started. We have $2,000.00 at the end of 
 the term, where we only had $1,000.00 at the beginning. 
 
 Probably another statement of the case will make it clearer. 
 Suppose that A deposits $1,000.00 with an association which 
 agrees to pay him o% per annum, or $50.00 interest, and that it 
 then loans this money to B at $1.20 per week, or for $62.40 for the 
 year. The association then makes the difference, or an earning of 
 $12.40 on the transaction. 
 
 Now if you will imagine A and B to be one and the same person, 
 you will see that what a borrower actually does in a building asso- 
 ciation is simply to pay a little higher rate of interest on the money 
 he borrows in consideration for obtaining it in a lump sum in ad- 
 vance, than he is compelled to accept on money he has to loan, or 
 which he is obliged to save and repay to the association in install- 
 ments. 
 
 The actual cost of a loan from any building association, or from 
 any other institution for that matter, is the actual rate of interest 
 that it charges, and not simply the difference between the rate you 
 pay it and what it pays you on exchange transactions. 
 
 All the explanations and tables that ever came to the writer's 
 attention heretofore have assumed that the borrower's money was 
 not worth any interest to him, and that what he received as interest 
 was merely a gift or gratuity from the association, and therefore 
 should apply as a credit against what interest he had to pay the 
 association, and to that extent would reduce the cost of the loan, 
 when, as a matter of fact, and justice and correct interpretation of 
 the transactions, the difference between the interest, premium, etc., 
 paid the association and the dividends, rebates, etc., allowed the 
 borrowers, shows the gross earnings to the association, and not the 
 net cost of the loan. It also shows how much more interest, etc., a 
 borrower has to pay for a loan from the building association than 
 he can obtain on his own money when dealing with such an 
 institution. 
 
 [293] 
 
 20
 
 CHAPTER XXI. 
 
 TABLE No. 2.— REBATE PERMANENT PLAN. 
 
 Same as Table No. 1, Except the Dues Are $1.00 Per Share or 
 $2.00 Per Week— $52.00 Every Six Months. 
 
 Interest $1.20 per week, $31.20 every six months. 
 
 Prepared by \V. II. Jones, Public Accountant, Cincinnati, O. 
 
 Average value of shares for 6 months, $26.00; second 6 months, 
 $78.00. 2y 2 % dividends on these average values is 65c. and $1.95 
 respectively. Rebate, 12c. each week, end of each year; $3.12 for 6 
 months; $6.24 for year. 
 
 
 
 
 A 
 
 A 
 
 "_« 
 
 
 
 
 
 
 
 u ~ji 
 
 
 trt 
 u 
 n 
 ti 
 
 1 
 
 c 
 
 vt"* 
 
 Q a. 
 
 o»Qco 
 
 Total 
 paid on 
 loan ea 
 year 
 
 Bal. du 
 on Mor 
 end eac 
 year 
 
 Interes 
 paid 
 each 6 
 months 
 
 1st 
 
 End of 26 weeks 
 
 $52 00 
 
 $0 65 
 
 
 
 $31 20 
 
 
 " 52 " 
 
 104 00 
 
 1 95 
 
 $104 00 
 
 $896 00 
 
 31 20 
 
 2d 
 
 26 " 
 
 52 00 
 
 65 
 
 
 
 28 08 
 
 
 '• 52 " 
 
 104 00 
 
 1 95 
 
 104 00 
 
 792 00 
 
 28 08 
 
 3d 
 
 26 " 
 
 62 00 
 
 65 
 
 
 
 24 96 
 
 
 '• 52 " 
 
 104 00 
 
 1 95 
 
 104 00 
 
 688 00 
 
 24 96 
 
 4th 
 
 26 " 
 
 52 00 
 
 65 
 
 
 
 21 84 
 
 
 52 " 
 
 104 00 
 
 1 95 
 
 104 00 
 
 584 00 
 
 21 84 
 
 5th 
 
 26 " 
 
 52 00 
 
 65 
 
 
 
 18 72 
 
 
 " 62 " 
 
 104 00 
 
 1 95 
 
 104 00 
 
 480 00 
 
 18 72 
 
 Cth 
 
 26 " 
 
 52 00 
 
 65 
 
 
 
 15 60 
 
 
 " 52 " 
 
 104 00 
 
 1 95 
 
 104 00 
 
 376 00 
 
 15 CO 
 
 7th .... 
 
 26 " 
 
 52 00 
 
 65 
 
 
 
 12 48 
 
 
 52 " 
 
 104 00 
 
 1 95 
 
 104 00 
 
 272 00 
 
 12 48 
 
 8th 
 
 26 " 
 
 52 00 
 
 65 
 
 
 
 9 36 
 
 
 52 " 
 
 104 00 
 
 1 95 
 
 104 00 
 
 168 00 
 
 9 36 
 
 9th 
 
 " 26 " 
 
 52 00 
 
 65 
 
 
 
 6 24 
 
 
 62 " 
 
 104 00 
 
 1 95 
 
 104 00 
 
 64 00 
 
 6 24 
 
 10th ... 
 
 21 " 
 
 42 00 
 
 
 42 00 
 
 22 00 
 
 2 52 
 
 • 
 
 
 $23 40 
 
 $978 00 
 
 | $339 48 
 
 Total length of time, 9 years and 21 weeks, or 489 weeks. 
 
 Total amount paid as dues $ 978 00 
 
 Total amount of dividends . 23 40 
 
 Total amount of credits $1,001 40 
 
 Less amount already applied on mortgage 936 00 
 
 $ 65 40 
 
 Less amount paid during 21 weeks 42 00 
 
 $ 23 40 
 
 22 00 
 
 Less amount transferred from dividends to pay balance due. 
 
 $ 1 40 
 
 The company now pays the borrower this $1.40 and returns mortgage duly 
 cancelled in full settlement. 
 If the borrower had taken a straight loan on the basis of interest charged 
 
 in the above table it would have cost 489 times $1.20, or $ 686 80 
 
 But he actually paid according to table 88 9 48 
 
 This leaves amount of rebates actually credited $ 247 82 
 
 Current dividends credited 23 40 
 
 Making total earned on money he saved and repaid of $ 270 72 
 
 The interest he actually paid on loan was $ 339 48 
 
 The gross earnings on his savings were 270 78 
 
 Actual net earnings of the building association $ 68 76 
 
 [294]
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 TABLE No. 3.— COMPOUND INTEREST PERMANENT 
 
 PLAN. 
 Showing the Course and Results of a Loan of $1,000.00. 
 
 Prepared by W. H. Jones, Public Accountant, Cincinnati, O. 
 
 Payments, $1.00 per week. Interest, $1.20 per week continuously. 
 Dividends, 5% — 2}4% semi-annually — on accumulated dues com- 
 pounded ; in other words, dividends are added to the principal, at 
 the end of each six months, and draw dividends. 
 
 Current average value each 6 months is $13.00 plus the credits 
 beginning each term. As the current payments of dues are $26.00 
 each 6 months, and average value only $13.00, there is always $13.00 
 more to be added at end of each term to make the total credits for 
 beginning the next term. 
 
 
 
 
 
 
 I 
 
 
 e 
 
 o 2 
 
 Si 
 
 ° °5 
 
 c5 
 
 paid 
 
 ■ 
 
 a 
 
 u c 
 o o 
 
 if 
 
 Value of dues 
 and dividends 
 beginning of 
 each 6 months 
 
 Average value 
 current 6 mon 
 to be added 
 
 Total average 
 value for 
 dividends curi 
 6 months 
 
 2% dividends 
 
 current term t 
 be added to 
 previous credi 
 
 Add other hal 
 average value 
 make total ere 
 
 Total value 
 of dues and 
 dividends at e 
 of each 6 mon 
 
 v. C 
 
 CI O 
 
 cE 
 3.'° 
 
 £« 
 t- 1 O 
 
 1st .. 
 
 . .$26 00 
 
 
 $13 
 
 00 
 
 — $13 00 + $ 32 +$13 00 
 
 = $26 32 
 
 $31 20 
 
 
 52 00 
 
 $26 
 
 32 + 
 
 13 
 
 00 
 
 = 89 
 
 32 + 
 
 97 + 
 
 13 00 
 
 = 53 29 
 
 31 20 
 
 2d .. 
 
 . . 78 00 
 
 53 
 
 29 + 
 
 13 
 
 00 
 
 = 66 
 
 29 + 
 
 1 65 + 
 
 13 00 
 
 = 80 94 
 
 31 20 
 
 
 104 00 
 
 80 
 
 94 + 
 
 13 
 
 00 
 
 = 93 
 
 94 + 
 
 2 34 + 
 
 13 00 
 
 = 109 28 
 
 31 20 
 
 8d .. 
 
 ..130 00 
 
 109 
 
 28 + 
 
 13 
 
 00 
 
 = 122 
 
 28 + 
 
 3 05 + 
 
 13 00 
 
 =138 33 
 
 31 20 
 
 
 156 00 
 
 138 
 
 33 + 
 
 13 
 
 00 
 
 = 151 
 
 33 + 
 
 3 78 + 
 
 13 00 
 
 = 168 11 
 
 81 20 
 
 4th .. 
 
 ..182 00 
 
 168 
 
 11 + 
 
 13 
 
 00 
 
 = 181 
 
 11 + 
 
 4 52 + 
 
 13 00 
 
 = 198 63 
 
 31 20 
 
 
 208 00 
 
 198 
 
 63 + 
 
 13 
 
 00 
 
 = 211 
 
 63 + 
 
 5 29 + 
 
 13 00 
 
 = 229 92 
 
 31 20 
 
 5th .. 
 
 . .234 00 
 
 229 
 
 92 + 
 
 13 
 
 00 
 
 — 242 
 
 92 + 
 
 6 07 + 
 
 13 00 
 
 = 261 99 
 
 31 20 
 
 
 260 00 
 
 261 
 
 99 + 
 
 13 
 
 00 
 
 = 274 
 
 99 + 
 
 6 87 + 
 
 13 00 
 
 = 294 86 
 
 81 20 
 
 6th .. 
 
 . .286 00 
 
 294 
 
 86 + 
 
 13 
 
 00 
 
 r= 307 
 
 86 + 
 
 7 69 + 
 
 13 00 
 
 = 828 55 
 
 81 20 
 
 
 312 00 
 
 328 
 
 55 + 
 
 13 
 
 00 
 
 — 341 
 
 55 + 
 
 8 54 + 
 
 13 00 
 
 = 363 09 
 
 31 20 
 
 7th .. 
 
 . .338 00 
 
 363 
 
 09 + 
 
 13 
 
 00 
 
 = 376 
 
 09 + 
 
 9 40 + 
 
 13 00 
 
 = 398 49 
 
 31 20 
 
 
 364 00 
 
 398 
 
 49 + 
 
 13 
 
 00 
 
 = 411 
 
 49 + 
 
 10 28 + 
 
 13 00 
 
 = 434 77 
 
 81 20 
 
 8th .. 
 
 . .390 00 
 
 434 
 
 77 + 
 
 13 
 
 00 
 
 = 447 
 
 77 + 
 
 11 19 + 
 
 13 00 
 
 = 471 96 
 
 31 20 
 
 
 416 00 
 
 471 
 
 96 + 
 
 13 
 
 00 
 
 — 484 
 
 96 + 
 
 12 12 + 
 
 13 00 
 
 = 510 08 
 
 31 20 
 
 0th . 
 
 . .442 00 
 
 510 
 
 08 + 
 
 13 
 
 00 
 
 = 523 
 
 08 + 
 
 13 07 + 
 
 13 00 
 
 = 549 15 
 
 31 20 
 
 
 468 00 
 
 549 
 
 16 + 
 
 13 
 
 00 
 
 = 562 
 
 15 + 
 
 14 05 + 
 
 13 00 
 
 = 589 20 
 
 31 20 
 
 10th .. 
 
 . .494 00 
 
 589 
 
 20 + 
 
 13 
 
 00 
 
 = 602 
 
 20 + 
 
 15 05 + 
 
 13 00 
 
 = 630 25 
 
 31 20 
 
 
 520 00 
 
 630 
 
 25 + 
 
 13 
 
 00 
 
 = 643 
 
 25 + 
 
 10 08 + 
 
 13 00 
 
 = 672 33 
 
 31 20 
 
 11th . 
 
 . .646 00 
 
 672 
 
 33 4- 
 
 13 
 
 00 
 
 = 686 
 
 33 + 
 
 17 18 + 
 
 13 00 
 
 = 715 46 
 
 31 20 
 
 
 572 00 
 
 715 
 
 46 + 
 
 13 
 
 00 
 
 = 728 
 
 46 + 
 
 18 21 + 
 
 13 00 
 
 = 759 67 
 
 31 20 
 
 12th .. 
 
 ..698 00 
 
 759 
 
 67 + 
 
 13 
 
 00 
 
 = 772 
 
 67 + 
 
 19 81 + 
 
 13 00 
 
 = 804 98 
 
 31 20 
 
 
 624 00 
 
 804 
 
 98 + 
 
 13 
 
 00 
 
 = 817 
 
 98 + 
 
 20 45 + 
 
 13 00 
 
 = 851 43 
 
 81 20 
 
 13th 
 
 . .650 00 
 
 851 
 
 43 + 
 
 13 
 
 00 
 
 = 864 
 
 43 + 
 
 21 61 + 
 
 18 00 
 
 = 899 04 
 
 31 20 
 
 
 676 00 
 
 899 
 
 04 + 
 
 13 
 
 00 
 
 = 912 
 
 04 + 
 
 22 80 + 
 
 13 00 
 
 = 947 84 
 
 31 20 
 
 14th . 
 
 , .70S 00 
 
 2 14 
 
 947 
 
 84 + 
 
 18 
 
 00 
 
 = 900 
 
 84 + 
 
 24 02 + 
 
 13 00 
 
 — 997 86 
 
 a 1 1 
 
 31 20 
 
 
 704 14 
 
 
 
 
 
 
 l 
 
 ^■.<:, sr, 
 704 14 
 
 
 $1,000 00 
 
 849 40 
 
 wy:. BO 
 
 
 $1. 
 
 U00 00 
 
 
 $646 64 
 
 [295]
 
 CHAPTER XXI. 
 
 EXPLANATION AND REMARKS. 
 
 Columns with plus signs between them are added together on 
 each line to make the total appearing in the next column to the right. 
 
 Totals in next to last column (dues and dividends at end of 
 term) are brought over into third column (but on next line below) 
 for dues and dividends at beginning of term. 
 
 Total length of time 13J/2 years or 702 weeks. 
 
 On account of there being a balance of so small an amount as 
 $2.14 due to close the account with the last meeting in the six 
 months' term it is, for obvious reasons, assumed that the borrower 
 just paid this $2.14 with the last payment in the term, and notified 
 the secretary that his credits, including the last six months' dividend, 
 to which he would be entitled at the next meeting, would cancel 
 his mortgage, which he would request be done, at the next or a 
 subsequent meeting. This saves splitting hairs about small fractions 
 of interest and loss of dividends, and somewhat simplifies the 
 calculations. 
 
 It will be observed that the borrower paid according to 
 
 this table, dues amounting to $ 704 14 
 
 And had dividends to his credit of 295 86 
 
 Total to balance loan $1,000 00 
 
 The company received in interest a total of $ 842 40 
 
 The company allowed and credited interest amounting to. . 295 86 
 
 The company received more than they allowed $ 546 54 
 
 The remarkable thing in connection with this table as compared 
 with the results in Table No. 1 is the time in which the loan was 
 paid off as compared with the time loan has to run in Table No. 1, 
 considering the fact that the weekly dues paid were the same in 
 both instances. 
 
 There are several reasons for this ; one is the fact that the 
 dividends were allowed on the accumulated dues, and the second is 
 that they were compounded. A third is, though a logical necessity 
 of compound interest, that the dividends were retained by the 
 company to the credit of the borrower, which is quite a different 
 proposition when considering the time a loan has to run. 
 
 In working out these tables the writer was himself surprised at 
 the results, for he has been under the impression for a long time 
 that the rebate plan would be shorter in time and probably less ex- 
 pensive, owing to the fact that the rebates are on the basis of the 
 interest rate that is paid, or at least 6% in place of 5%, as are the 
 dividends. 
 
 A comparison of the loan under Table No. 3 with loan in Table 
 No. 1 at the same period of time for both, to wit: 13j^ years (the 
 closing period for Table No. 3) will show some interesting and 
 probably, to most readers, some new facts relating to the operations 
 of compound interest as compared with simple interest, rebated 
 even at 6%. See Remarks under Table No. 4. 
 
 [296]
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 TABLE No. 4. 
 Comparing Rebate with Compound Interest Permanent Plans. 
 
 Prepared by W. H. Jones, Public Accountant, Cincinnati, O. 
 
 Table No. 1, with its dividends and 6% rebates, down to the 
 thirteenth and a half year, which is the full period of Table No. 3 
 at 5% compound dividends, are here carefully and in detail compared. 
 
 End 
 
 1st year. . 
 2d year. .. . 
 3d year. . . . 
 4th year. . . 
 5th year. . 
 6th year. . 
 7th year.. 
 8th year.. 
 9th year.. 
 10th year. 
 11th year. 
 12th year. 
 13th year. 
 13/, year. 
 
 C. u V 
 o - « 
 
 1 29 
 
 3 99 
 
 6 83 
 
 9 81 
 
 12 94 
 
 16 23 
 
 19 68 
 
 23 31 
 27 12 
 31 13 
 35 84 
 39 76 
 44 41 
 
 24 02 
 
 $295 86 
 280 78 
 
 * IT, 13 
 
 S5 
 
 .2 K 
 
 £ >> 
 
 
 Div. ^ 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 Rebate 
 
 Div. 
 
 1 29 
 3 12 
 1 29 
 6 24 
 1 29 
 9 36 
 1 29 
 
 12 48 
 1 29 
 
 15 60 
 1 29 
 
 18 72 
 1 29 
 
 21 84 
 
 1 
 
 24 
 
 1 
 
 29 
 96 
 29 
 
 28 08 
 1 29 
 
 31 20 
 1 29 
 
 34 32 
 
 29 
 44 
 
 29 
 
 20 28 
 32 
 
 $ 1 29 
 4 41 
 7 53 
 10 65 
 13 77 
 16 89 
 20 01 
 
 28 13 
 26 25 
 
 29 37 
 32 49 
 35 61 
 88 73 
 20 60 
 
 $ 18 
 87 
 
 1 76 
 
 2 85 
 4 15 
 6 68 
 
 3 42 
 
 $280 73 
 
 $18 91 
 8 78 
 
 $16 is" 
 
 u 
 
 U V 
 
 $0 42 
 70 
 84 
 83 
 66 
 38 
 
 $3 78 
 
 (297)
 
 CHAPTER XXI. 
 
 The first column in above Table No. 4 shows the full year periods. 
 
 The second column shows compound dividend taken from 2]/i% 
 dividend column in Table No. 3, where they are shown in amounts 
 for cacli six months, but are combined for the year in above table 
 because rebates are only made at end of the year. 
 
 The third column shows dividends and rebates taken from Table 
 No. 1. The dividends are combined for the year thus, 32+97=1.29. 
 The rebates are obtained as follows from Table No. 1 : 
 
 The full interest for first year is twice $31.20 or $62 40 
 
 The full rebate is twice $1.56 or $3.12 3 12 
 
 This amount equals 2,X$29.64, the interest for 6 months for 
 
 second year or $59 28 
 
 The rebate the next year is $3.12 from $59.28, but this is equal 
 to twice $3.12 from $62.40, a full year's interest, so the rebates of 
 interest for the second year amounts to $3.12 and for the third year 
 $6.24 and the fourth year $9.36 and $3.12 added for each succeed- 
 ing year. Notice that they are only taken down to the 13^2-year term. 
 
 The dividends and rebates are then added and extended into 
 totals for each year in column to the right. 
 
 The difference between these totals and the totals in the second 
 column show the difference between amounts credited to borrower 
 under separate plans. 
 
 The first year the dividend credits are the same in both. The 
 second year the difference between $4.41 rebate plan and $3.99 
 compound interest plan is 42 cents in favor of rebate plan, and 
 then follows other differences as shown in last column. 
 
 In the eighth year it changes to 18 cents difference in favor of 
 compound interest plan as shown in second last column, and con- 
 tinues on the increase until close of term. You can see that this is 
 verified by taking the difference between the totals of compound 
 dividends of $295.86 and totals of rebate plan $280.73, and also 
 difference between the columns of difference of $18.91 and $3.78. 
 
 This shows that the compound interest plan overtook and began 
 to run ahead of the rebate plan in the eighth year. 
 
 The difference in the two tables, Nos. 1 and 3, also show that 
 while the borrower in Table No. 3, under the compound interest 
 plan, was prepared to cancel his loan in the fourteenth year (13J/2 
 years) simply because he allowed his dividends to accumulate as a 
 credit, the borrower in No. 1 had paid exactly the same amount of 
 
 [298]
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 dues ($702.00) at the end of this period under the other plan, but 
 would have to continue his payments for over five years longer, ac- 
 cording to No. 1 Table. 
 
 The statement of each at this point is, according to the tables, 
 as follows : 
 
 Table No. 3— Dues paid $ 704 14 
 
 Dividend:- credited 295 86 
 
 Total $1,000 00 
 
 Table No. 1— At 13# years dues paid 13x52+26=$702 00 
 Dividends to credit 17 09 
 
 Total credits $719 09 
 
 Amount of mortgage $1,000 00 
 
 Less credits 719 09 
 
 Amount still due $ 280 91 
 
 Requiring according to the Table No. 1 over h l / 2 years longer. 
 They had both paid to the same date as follows: 
 
 Borrower, Table No. 1— Paid dues $ 702 00 
 
 Paid interest $ 578 76 
 
 Less dividends credited.. 17 09 561 67 
 
 Total paid \ZY 2 years $1,263 67 
 
 Borrower, Table No. 3— Paid dues $ 704 14 
 
 Paid interest 842 40 
 
 Total $1,546 54 
 
 Less dividend credits 295 86 
 
 Net total paid W/ 2 years, $1,250 68 $1,250 68 
 
 An am't less than rebate borrower.. $ 12 99 
 
 While the compound plan borrower is ready to cancel his loan at 
 this point, being $12.99 ahead of the other rebate borrower, the latter 
 has still $280.91 to pay with additional interest during the five years 
 or more. 
 
 This certainly ought to be convincing as to the desirability, 
 economy and superiority of the compound interest plan over the 
 rebate plan. 
 
 12991
 
 CHAPTER XXI. 
 
 TABLE No. 5.— COMPOUND INTEREST PERMANENT 
 
 PLAN. 
 Showing Course and Results of a Loan of $1,000.00. 
 
 Prepared by \V. H. Jones, Public Accountant, Cincinnati, O. 
 
 Payments, $2.00 per week as dues, interest, $1.20 per week con- 
 tinuously. Dividends 5%=2, , /2% semi-annual — on accumulated dues 
 compounded. Current average value each (J months is $26.00 plus 
 credits beginning term. 
 
 
 •a »> 
 
 c-2 
 
 to 
 J3 
 
 
 it m 
 f: -a 
 
 c 
 
 vt 
 
 o 
 
 
 ■25 
 
 !2 
 '« 
 
 a 
 
 ■ 
 H 
 
 > 
 
 Dues paid to e 
 of each 6 mon 
 
 Value of dues 
 and dividends 
 beginning of 
 each 6 months 
 
 Average value 
 current 6 mon 
 to be added 
 
 Total average 
 value for 
 dividends cur 
 6 months 
 
 2'A% dividen 
 
 current term t 
 be added to 
 previous cred: 
 
 Add other hal 
 average value 
 for total credi 
 
 Total value 
 of dues and 
 dividends at e 
 of each 6 mon 
 
 He. 
 
 V O 
 
 1st ... 
 
 . .$52 
 
 00 
 
 $26 00 
 
 = $26 00 -1- $ 
 
 
 
 65 +$26 
 
 00 
 
 = $52 
 
 65 
 
 $81 20 
 
 
 104 
 
 00 
 
 $52 65 + 26 00 
 
 = 78 
 
 65 + 
 
 1 
 
 95 + 
 
 26 
 
 00 
 
 = 106 
 
 60 
 
 31 20 
 
 2d ... 
 
 . .156 
 
 00 
 
 106 60 + 26 00 
 
 = 132 
 
 60 + 
 
 S 
 
 30 + 
 
 20 
 
 00 
 
 =: 161 
 
 90 
 
 81 20 
 
 
 208 
 
 00 
 
 161 90 + 26 00 
 
 = 187 
 
 90 + 
 
 4 
 
 69 + 
 
 26 
 
 00 
 
 = 218 
 
 59 
 
 81 20 
 
 3d ... 
 
 . .260 
 
 00 
 
 218 58 + 26 00 
 
 = 244 
 
 59 + 
 
 a 
 
 10 + 
 
 26 
 
 00 
 
 = 276 
 
 69 
 
 81 20 
 
 
 312 
 
 00 
 
 276 69 -f- 26 00 
 
 = 302 
 
 69 + 
 
 7 
 
 55 + 
 
 26 
 
 00 
 
 = 836 
 
 24 
 
 81 20 
 
 4th ... 
 
 . .864 
 
 00 
 
 336 24 + 26 00 
 
 = 362 
 
 24 + 
 
 9 
 
 05 + 
 
 26 
 
 00 
 
 = 897 
 
 29 
 
 81 20 
 
 
 416 
 
 00 
 
 397 29 -f 26 00 
 
 = 423 
 
 29 + 
 
 10 
 
 57 + 
 
 26 
 
 00 
 
 = 459 
 
 86 
 
 81 20 
 
 5th 
 
 . .468 
 
 00 
 
 459 86 + 26 00 
 
 = 485 
 
 86 + 
 
 12 
 
 12 + 
 
 26 
 
 00 
 
 =: 528 
 
 98 
 
 81 20 
 
 
 520 
 
 00 
 
 523 98 + 26 00 
 
 = 549 
 
 98 + 
 
 13 
 
 75 + 
 
 26 
 
 00 
 
 = 589 
 
 73 
 
 31 20 
 
 6th 
 
 . .572 
 
 00 
 
 589 73 + 26 00 
 
 = 615 
 
 73 + 
 
 15 
 
 37 + 
 
 26 
 
 00 
 
 = 657 
 
 10 
 
 81 20 
 
 
 624 
 
 00 
 
 657 10 + 26 00 
 
 = 683 
 
 10 + 
 
 17 
 
 07 + 
 
 26 
 
 00 
 
 = 726 
 
 17 
 
 31 20 
 
 7th ... 
 
 . .676 
 
 00 
 
 726 17 + 26 00 
 
 = 752 
 
 17 + 
 
 18 
 
 80 + 
 
 26 
 
 00 
 
 = 796 
 
 97 
 
 81 20 
 
 
 728 
 
 00 
 
 796 97 -+- 26 00 
 
 = 822 
 
 97 + 
 
 20 
 
 65 + 
 
 26 
 
 00 
 
 = 869 
 
 62 
 
 81 20 
 
 8th . .. 
 
 . .780 
 
 00 
 
 869 52 + 26 00 
 
 = 895 
 
 52 + 
 
 22 
 
 87 + 
 
 26 
 
 00 
 
 = 943 
 
 89 
 
 31 20 
 
 
 832 
 
 00 
 
 943 89 + 26 00 
 
 = 969 
 
 89 + 
 
 24 
 
 22 + 
 
 26 
 
 00 
 
 = 1020 11 
 
 31 20 
 
 
 $832 
 
 00 
 
 
 
 $188 
 
 11 
 
 
 
 $1020 11 $499 20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 188 11 
 
 
 
 
 
 
 
 
 
 
 
 
 $811 09 
 
 EXPLANATION AND REMARKS. 
 
 It will be observed that this loan was allowed to run for the full 
 eight years, and credits amounted to $20.11 more than face of loan. 
 
 It was necessary to do this in order to obtain the last six months' 
 dividend of $24.22, which really produced the overpayment, or 
 excess credit. 
 
 The borrower paid in dues as above $ 832 00 
 
 Dividends credited 188 11 
 
 Total credits $1,020 11 
 
 Less amount of mortgage 1,000 00 
 
 $ 20 11 
 Company will now return $20.11 and the cancelled mortgage. 
 
 The company received in interest $ 499 20 
 
 The company allowed dividends 18 8 11 
 
 The company received more than allowed $ 811 09 
 
 The borrower paid in dues $ 832 00 
 
 The borrower paid in interest 499 20 
 
 Total paid in eight years $1,331 20 
 
 Less amount of dividends 188 11 
 
 $1,143 09 
 Actual amount paid in dues 882 00 
 
 Net interest earnings of building association $ 311 09 
 
 [300 J
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 
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 3
 
 CHAPTER XXI. 
 
 EXPLANATION AND REMARKS TABLE No. 6. 
 
 This is a perpetual calendar for dates by the week, such as every 
 building association needs for quick reference during each current 
 six months' term. The date of your first meeting in January, at top 
 of calendar, will indicate your column of dates for that term. On 
 account of leap year it becomes necessary to have two sections of 
 dates from January to July. The extra section is placed at the 
 extreme left, because it will only be used once in about four years. 
 
 The double columns for consecutive number of weeks — from 1 
 to 26 each way — are located at several different places for conven- 
 ience. To ascertain the amount of dues paid from January 2 (not 
 leap year, and this will apply to all subsequent reference, unless 
 otherwise mentioned,) to May 1, you locate the date, May 1, and 
 then follow this line to the right to the first column of weeks and 
 vou find 18. Now, if dues are paid at 50c. per week, the amount 
 would, of course, be $9.00; if at $1.00 per week, it would be $18.00. 
 
 To ascertain the amount of dues paid and the average value of 
 same from any date during the term to the end of the term (and 
 this is the real and valuable use to be made of the table) you first 
 locate the date, say March 1, then follow this line to the second 
 column of weeks and you get 18; in the next column you see 
 amount of dues paid at 50c. per week— $9.00— and the average value 
 of the share in the next column of $3.29. If there is but one share, 
 then you would place $3.00 in your dividend book as the average 
 value on which to allow dividends for that term. If more than one 
 share, multiply $3.29 by total number of shares for average value, 
 omitting the cents in the final result. If the dues paid are $1.00 per 
 share, then you use the columns under "1 share at $1.00" in the same 
 manner, to wit : 18 weeks paid=$18.00 ; average value, 1 share, $6.58, 
 multiply by total shares for total average value. When you are in 
 the second six months' term use the calendar to correspond and 
 follow lines to the left. 
 
 There has been considerable confusion and discussion in the past 
 in regard to calculations for ascertaining average value of shares, 
 which determines the amount they are entitled to dividends on and 
 also the time deposits are entitled to interest 
 
 The matter can be cleared up once for all, if the first weekly 
 meeting in every term is made the pivotal point of starting and the 
 closing of the time, the first meeting in the next term. 
 
 A full six-month period must be from the first meeting in one 
 term to the first meeting in the next term. It is necessary to have 
 full six months' time for all dividend and interest calculations made 
 for the full term. Take for instance the term from January 3 to 
 June 27 (see Table No. 6). This is 26 meeting dates, but the time 
 is really only 25 weeks. 
 
 Time never runs backward for what is to be, but always forward. 
 
 The actual time in weeks, beginning with any date, say January 
 24, or the fourth meeting in the term, down to the week to which the 
 calculation is to be made, say June 6, or the twenty-third meeting 
 in the term, will always be the difference between the number of 
 
 [302]
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 the meeting at the time calculation is to be made, and number of 
 meeting at date of starting, or as in this case, 23 — 4=19 weeks. 
 
 But suppose now that you wanted to know how many weeks a 
 dues payer had paid, beginning on the fourth meeting and paying 
 up to and including the twenty-third meeting, the number would now 
 be 23 — 3=20 weeks dues paid. The reason for this is that both the 
 first and the last meeting must now be included. 
 
 The first case is a question of lapsed time, while the second is a 
 question of number of meetings. Get this difference fixed in your 
 mind. 
 
 This point may possibly be made a little clearer by narrowing 
 it down to the first and second week. If a depositor put in $50.00 the 
 first week and drew it out the second week, how many weeks interest 
 would he be entitled to? Why, one week, of course. If a dues payer 
 paid for two weeks, how many weeks' dues should he have to his 
 credit? Why, two, of course. 
 
 Every secretary should consider the time the old term has to 
 run — up to the end of the last week, or to the first week in the 
 new term. 
 
 Why? Because the secretary cannot declare dividends until after 
 the business is closed for the twenty-sixth or last meeting in the 
 term and has ascertained the full earnings and made the proper dis- 
 tributions and balanced and closed all the loss and gain accounts. 
 
 He could not pay a member any part of the new dividend on 
 the last meeting in a term for the reason that the member has not 
 yet been credited with his share of the new dividend. In fact the 
 dividend fund has not yet been credited with any part of this new 
 dividend. This is done only after the closing meeting of the term. 
 Hence, if a member cannot draw any of his new dividend until the 
 first meeting of the new term (it is seldom that they can get it even 
 then), his dividend should be calculated up to that time. 
 
 Take the case of a depositor, for instance: 
 
 One who has made a deposit of $100.00 on March 8, the tenth 
 meeting in the term (see Table No. 6) and allowed it to remain 
 over to the next term. His interest as all other depositors' interest, 
 should be calculated up to the first meeting in the next term, for 
 remember that this is now to be the pivotal point of starting all 
 calculations for interest on his deposit in the next term. The first 
 meeting in the next term being really the twenty-seventh meeting, 
 the time that should be allowed this depositor would be 27—10=17 
 weeks, and the interest on $100.00 for 17 weeks per Table No. 7 
 would be $1.30 at 4 per cent. 
 
 This is how all interest on deposits should be calculated at the 
 end of the year to ascertain the interest accrued and unpaid and to 
 be credited. 
 
 Suppose now that this depositor wished to draw out his money 
 and interest on the first meeting in the new term. All he would 
 receive would be the amount to his credit, and no additional interesl 
 would be allowed for the time of 1 week between the two terms, lie 
 would not be entitled to any. 
 
 [808]
 
 CHAPTER XXI. 
 
 Suppose now that instead of drawing it all out on the first meet- 
 ing he had simply drawn the interest, and later, say on the tenth 
 meeting ill the new term, he wished to draw $50.00. The difference 
 between the tenth and the first would be D weeks, on which he would 
 be entitled to interest, amounting, at \%, per table No. 7, to one- 
 half of 89c. or 34c. on $. r >0.00. Where a partial withdrawal of a 
 deposit is made, interest is calculated on the amount withdrawn only. 
 The remainder will be credited with interest at the end of the term, 
 or at any time previous that it may be withdrawn. We repeat 
 that you must remember the pivotal point of starting all interest 
 calculations, is to be the first meeting in each term and ending 
 with the first meeting of the next term, or on date of withdrawal, 
 if drawn previous to the full term. 
 
 If dividend and interest calculations are invariably made upon 
 this basis there can never be any discussion or disputes as to its 
 accuracy. 
 
 This, in the opinion of the writer, determines the correct value of 
 the tables of six months' averages, to be according to those prepared 
 and given in this work, under Permanent Plan, System II, and used 
 in Table No. 6. 
 
 Your attention is called to the dates of December 30 and 31. 
 
 Whenever a weekly meeting falls on either of these dates you are 
 likely to have 27 meetings in the last six months of the year. This 
 will recur every seven years. It is occurring every year to one or 
 more associations. Most associations keep the fiscal year concurrent 
 with the calendar. If the term ends with the calendar, or if the 
 twenty-sixth meeting is the last one held in December, they always 
 have it remain so, even when the twenty-seventh meeting occurs. 
 This they take care of by crowding it in with the other 26 meetings, 
 usually, by making the entries for this one meeting all on one folio 
 of the Dues Book, where the rulings do not provide for fourteen 
 meetings every quarter. 
 
 If the fiscal year ends with the last, or any other meeting, in any 
 other month and is retained, then it must be treated in the above 
 manner when this twenty-seventh meeting recurs. Some associa- 
 tions allow this twenty-seventh meeting to change their fiscal year 
 every time it recurs. This defers the ending of their fiscal year one 
 week later every seven years. 
 
 It is customary, when this occurs, to treat it, so far as dividends 
 and interest on deposits are concerned, as a part of the six months, 
 instead of six months and one week. 
 
 When the association allows it to change its fiscal year, the ques- 
 tion of dividends and interest on deposits needs no adjustment. 
 
 13041
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 TABLE No. 7. 
 Weekly Interest On a Deposit of $100.00 at 4%, 4^% and 5%. 
 
 Prepared by \V. H. Jones, Public Accountant, Cincinnati, O. 
 
 4% 
 
 Weeks 
 
 *'A% 
 
 Weeks 
 
 5% 
 
 7% 3 
 
 1 
 
 1 
 
 8% 
 
 1 
 
 994s 
 
 1% 
 
 2 
 
 16^3 
 
 2 
 
 1% 
 
 23^3 
 
 3 
 
 252%6 
 
 3 
 
 28% 
 
 301943 
 
 4 
 
 3494s 
 
 4 
 
 38% 3 
 
 38%, 
 
 5 
 
 437^ 6 
 
 5 
 
 48M3 
 
 46%» 
 
 6 
 
 51% 
 
 6 
 
 5794s 
 
 53% 
 
 7 
 
 60i%6 
 
 7 
 
 67*^3 
 
 M%| 
 
 8 
 
 6994s 
 
 8 
 
 76% 
 
 69943 
 
 9 
 
 772% 6 
 
 9 
 
 88%, 
 
 76% 
 
 10 
 
 86% 3 
 
 10 
 
 96% 3 
 
 8494s 
 
 11 
 
 95%« 
 
 11 
 
 1051943 
 
 92^ 
 
 12 
 
 103% 
 
 12 
 
 H5%3 
 
 100 
 
 13 
 
 112^ 
 
 13 
 
 125 
 
 107%, 
 
 14 
 
 121243 
 
 14 
 
 134943 
 
 11SW« 
 
 15 
 
 1292^j 
 
 15 
 
 14494s 
 
 123^3 
 
 16 
 
 13894s 
 
 16 
 
 153% 
 
 130% 
 
 17 
 
 147%e 
 
 17 
 
 16394s 
 
 138% 3 
 
 18 
 
 155% 
 
 18 
 
 173H3 
 
 146%3 
 
 19 
 
 164% 
 
 19 
 
 18294s 
 
 153% 
 
 20 
 
 173M3 
 
 20 
 
 192^a 
 
 16% 
 
 21 
 
 181% 
 
 21 
 
 20P943 
 
 16994s 
 
 22 
 
 190%, 
 
 22 
 
 21% 
 
 170% 
 
 23 
 
 199%, 
 
 23 
 
 22% 
 
 184% 
 
 24 
 
 20794s 
 
 24 
 
 230i%i 
 
 192^3 
 
 25 
 
 216%e 
 
 25 
 
 24094s 
 
 200 
 
 26 
 
 225 
 
 26 
 
 250 
 
 Interest on $ 10.00 
 
 won 
 
 .1 
 
 be i/4o above amounts. 
 
 20.00 
 
 
 ' 
 
 V, " 
 
 30.00 
 
 
 ' 
 
 94o " 
 
 40.00 
 
 
 ' 
 
 % " 
 
 200.00 
 
 
 1 
 
 double above amounts. 
 
 " 300.00 
 
 
 1 
 
 3 times " 
 
 " 400.00 
 
 
 ' 
 
 4 times " 
 
 [3or»|
 
 CHAPTER XXI. 
 
 Table No. 7 is very valuable for quickly and reliably arriving 
 at the interest on deposits withdrawn during the current term at 
 rates of either 4%, 4j4% or 5%. 
 
 There are three conditions of time that deposits run that it is 
 necessary for a secretary to determine. 
 
 1st. To ascertain the time on a deposit carried over from a 
 previous term and withdrawn during the current term. 
 
 2d. To ascertain time a deposit has run that was made in early 
 part of term and withdrawn later during the same term. 
 
 3d. To ascertain time a deposit has run that was made during 
 the term and allowed to run over into the next term. 
 
 Suppose in the first case $50.00 is to be withdrawn with 4% 
 interest on April 20th, by referring to calendar Table No. 6 you will 
 ascertain that April 20th is 16 weeks from the first week of the 
 year (and as all interest calculations have been made up to the first 
 week as explained in remarks under Table No. 6) the number of 
 weeks interest to which he would be entitled would be 16 — 1=15 
 weeks. According to the above table 15 weeks interest at 4% is $1.15 
 on $100 and one-half this amount on $50.00 or 57 cents. 
 
 The interest previously credited at the end of the term on this 
 deposit may have been withdrawn, but if not it could be withdrawn 
 at this time in addition. 
 
 Suppose, in the second case, a deposit of $50.00 is made on 
 March 2d, or the ninth week, and is to be withdrawn May 25th, the 
 twenty-first week. The elapsed time will be 21—9=12 weeks. Ac- 
 cording to the table, interest for twelve weeks on $100.00 at 4% is 
 92 cents and on $50.00 it will be one-half as much or 46 cents. 
 
 Suppose, in the third case, a deposit of $100.00 is made on 
 March 16th, or the eleventh week from the beginning of the term, 
 as shown in weeks' column, the elapsed time will be up to the twenty- 
 seventh of first meeting in next term and 27 — 11=16 weeks. (See 
 explanations under Table No. 6.) The interest for 16 weeks, accord- 
 ing to table, will be $1.23. 
 
 This is a case where the second column of weeks comes in handy, 
 as it really counts the lapsed weeks up the column from the twenty- 
 seventh week, and always gives the exact number of weeks opposite 
 the dates of starting deposits during the term, to wit : opposite date 
 of starting, March 16th, in the second column of weeks will be found 
 sixteen, which is the correct number of weeks reached at once. 
 
 This is important because it is the greatest use that a secretary 
 has of the table when making his calculations on deposits, in order 
 
 [306]
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 to ascertain amount of interest accrued and unpaid at end of 
 each term. 
 
 It is important to bear in mind the two methods of obtaining the 
 lapsed time. In the two former cases they are alike as the first 
 column of weeks is used, and in the last one it is different as the 
 second column is used. 
 
 When deposits are received at different times during the term 
 from the same party, it will be necessary to make separate calcula- 
 tions on each amount at the end of the term. 
 
 Any secretary who has considerable of this to do, at the end of 
 each year, will find it to be of great advantage to make a slip with 
 the weekly dates for the current term of 6 months running from 
 top downward and with the numbers running up from 1 to 26 and 
 then place the interest rate, 4%, 4H% or 5%, whichever he uses, at 
 the side of the number, just reversing the way it runs in the table. 
 In this way, as soon as you have ascertained the correct time in 
 weeks on the different amounts of deposit, you will have the interest 
 rate per $100.00 right before you. 
 
 [307]
 
 CHAPTER XXI. 
 
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 H
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 Table No. 8 shows in a most graphic and comprehensive way 
 the relations of a borrower to a building association, and the exact 
 financial condition of each from year to year. The triangle, A, D, 
 C, represents the borrower, and in each trapezoid, X, Y, Z, are shown 
 the amount of dues he has paid to end of each year: $52.00 for the 
 first; $104.00 to the second, etc. The triangle, A, B, C, represents 
 the building association having made a loan of $1,000.00, and how 
 much less the loan becomes at the end of each year, as shown in 
 the trapezoids, L, M, N, being $948.00 at the end of the first year; 
 $896.00 end of second, etc. 
 
 It will be observed that the full amount of $1,000.00 is involved 
 continuously throughout the period shown, but is shifted each year 
 in its relations as to how much of the $1,000.00 is still owing the 
 building association and how much of the $1,000.00 has been credited 
 to the borrower. The relations they began at the end of the first 
 year are, $52.00 to the credit of the borrower and $948.00 still owing 
 the building association ; the second year the relation is changed 
 to $104.00 to $896.00, etc. 
 
 Another point to observe is that this diagram shows it started 
 with a loan of $1,000.00, and it is assumed that the borrower ob- 
 tained this loan for the purpose of investing in a home, or keeping 
 it invested in some other way, for it shows that at the end of the 
 period the building association has received all of its money, or 
 $1,000.00, and the borrower presumably has his $1,000.00 still invested 
 (if he did not lose it in some poor investment). Anyhow, the 
 first $1,000.00 has now been the means of enabling the borrower 
 to save a second $1,000.00. 
 
 The first two horizontal lines of spaces at the top shows the 
 dividends and rebates allowed the borrower, and the last horizontal 
 line of spaces at the bottom shows the interest paid to the building 
 association under the same rebate plan. It will be observed that 
 the interest paid the first year to the building association under this 
 plan is $62.40, and that the second year the borrower gets a rebate 
 of $3.12 and the building association only $59.28, the two amounts, 
 ♦3.12-f- $59.28=$62.40, which is same amount of interest involved 
 as the first year. The same amount is involved every year, only it 
 increases as a credit to the borrower and decreases in amount paid 
 to the building association in proportion as the credits of the 
 borrower increases and his indebtedness decreases, as shown in the 
 corresponding trapezoids for each year 
 
 This rebate plan is fully illustrated and described in Table No. 1. 
 
 [309] 
 
 21
 
 CHAPTER XXI. 
 
 The third horizontal line of figures at the top and the first line 
 at the hottom show the compound interest relations of borrower and 
 building association, more fully illustrated and described in Table 
 No. 3. The diagram is not extended for the full time of the 
 rebate plan, but only far enough to make comparisons with Table 
 No. 3, as more fully described under Table No. 4. 
 
 COMPARISONS OF EARNINGS. 
 
 In comparing the earnings of the company in Table No. 3 in this 
 instance, to wit, $546.54, with the earnings, to wit, $106.90, as shown 
 in Table No. 1, one cannot but wonder, at first thought, why the 
 earnings are so much larger, apparently, in the one case than in 
 the other. 
 
 On reflection you will note several reasons for this. 
 
 1st. All that a building association does in transacting its busi- 
 ness is to act as a sort of clearing house for its members, and all 
 that it can ever expect or hope to make as a profit is the difference 
 between the rate of interest it charges on its loans and the rate of 
 dividends it pays its members who furnish the money. In both cases 
 above the amounts are gross earnings, and not net profits. This 
 was illustrated by the supposed case of the association, or company, 
 receiving $1,000.00 from A and loaning it to B, as noted in the 
 remarks under Table No. 1. 
 
 2d. In making comparisons of any transactions between the 
 company and borrowers the element of time the loan has run must 
 always be taken into consideration to ascertain gross earnings. 
 
 For instance, the first year that the company makes a loan to B, 
 a borrower, he is presumed to begin paying in installments, say, of 
 $1.00 per week, and at the end of the year he will have paid $52.00. 
 The company this year will receiye $62.40 as interest on a loan to 
 him of $1,000.00, while he will receive interest only on $52.00, or an 
 average of $1.29 on the basis of a 5% dividend. 
 
 Ten years later, if payments are kept up, the amount still owing 
 the company will be reduced to less than one-half and the interest 
 will be approximately the same as the dividends. And at a still later 
 period, if payments are kept up, the interest due the company will 
 be practically nil as compared with the dividends on the dues paid 
 by this borrower. 
 
 When the building association first makes this loan, per Table 
 No. 8, it obtains the money from the shareholders, to whom it 
 agrees to pay dividends thereon. 
 
 [310]
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 Let us assume for the sake of the argument, that it is a syndi- 
 cate of thirteen members, from whom the $1,000.00 is obtained. The 
 loan is made in the usual manner, and all goes well to the end of 
 the year. 
 
 Now let us see if we cannot ascertain the net profits to the 
 building association for this year, and also subsequent years, going 
 as far as the third year to show some in which rebate is allowed. 
 Subsequent years would show same results under same treatment, 
 assuming the dividend at 5% and interest charges $1.20 per week 
 for the first year, and for the second and subsequent years, dividends 
 5%, rebate 6% and interest charges $1.20 per week. 
 
 This should figure out for the first year exactly to the dif- 
 ference between gross interest charge $62 40 
 
 and 5% dividends 50 00 
 
 or a total net earning of $12 40 
 
 The second year the clearing house or building association 
 should show a net earning as follows: (See details on following 
 page.) 
 
 Gross interest $62 40 
 
 Less 6% rebate to borrower $ 3 12 
 
 Less 5% dividends to borrow first 6 months 32 
 
 Less 5% dividends to borrower second 6 months. ... 97 
 
 Less 5% dividends to syndicate first 6 months 23 38 
 
 Less 5% dividends to syndicate second 6 months.... 22 73 
 
 Total allowances $50 52 $50 52 
 
 Or a total net earning second year of $11 88 
 
 The original syndicate now had returned to their clearing house 
 during the first 6 months, $26.00, with an average value of $13.00, 
 and this same £26.00 as it was returned was reloaned by the clearing 
 house to some other borrower, and to this extent the syndicate's 
 interests were transferred to some other loan, not as a matter of 
 any record, but as a matter of fact and fiscal transaction. 
 
 Mr. Borrower received credit in dividends on his $13.00 $0 32 
 
 Mr. Syndicate got credit in dividends on $1,000— $13=$987.00. . 24 68 
 We will allow the extra half cent in dividends to the syndicate, 
 
 to clear the transactions of fractious in final results. 
 The next six months Mr. Borrower installed $20.00 more with 
 an average value of $13.00, and as he did not get any rebate 
 on the first six months installment of $26.00 he has to his 
 credit, on which he is entitled to dividend, the sum of 
 
 126.00 plus 113.00 439.00, dividend equal: 97 
 
 Mr. Syndicate then gets credits in dividends on $1,000.00 — 
 
 $:;'».00=$961.00 and dividend equals 24 03 
 
 $50 00 
 [811]
 
 CHAPTKK XXI. 
 
 The rebate not being allowed the first year did not enter into 
 the calculation. 
 
 Then at the end of year the financial statement would be : 
 
 Interest received $62 40 
 
 Borrower received in dividends first (5 months $0 32 
 
 Borrower received in dividends second (J months 97 
 
 Syndicate received in dividends first 6 months 24 68 
 
 Syndicate received in dividends second 6 months 24 03 
 
 $50 00 50 00 
 
 Total net earning to building association or clearing house. . .$12 40 
 
 The above demonstrates our contention. 
 At the beginning of the year the clearing house still had 
 $1,000.00, but now $52.00 belongs as a credit to Mr. Bor- 
 rower and only $948.00 to original syndicate capital ; the 
 $52.00 of original syndicate capital is now placed else- 
 where in loans. But we must show a distribution of interest 
 
 earned on $1,000.00 by the clearing house or $62 40 
 
 In the first place Mr. Borrower now gets 6% rebate on $52.00 
 
 instead of 5% for the year, amounting to $ 3 12 
 
 He then gets 6 months dividend on $13.00 32 
 
 He then gets second 6 months dividends on $39.00. . . 97 
 Syndicate then gets 6 months dividends on 
 
 $948.00— $13.00=$935.00 23 38 
 
 SjTidicate then gets second 6 months dividend on 
 
 $948.00— $39.00=4909.00 22 73 
 
 $52 52 50 52 
 
 Total net earnings end second year $11 88 
 
 Third year, interest due clearing house $62 40 
 
 Rebate to borrower $ 6 24 
 
 First 6 months' dividend 32 
 
 Second 6 months' dividend 97 
 
 Dividend to syndicate first 6 months on $896.00' — 
 
 $13.00=4883.00 22 08 
 
 Dividend to syndicate second 6 months on $896.00 — 
 
 $39.00=$857.00 21 43 
 
 Total allowances $51 04 51 04 
 
 Third year total net earning $11 36 
 
 [312]
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 And so the earnings will continue to decrease in proportion as 
 the balance due the association decreases, as shown in trapezoids 
 L, M, N. 
 
 If the annual profits on a loan of $1,000.00, as shown above, are 
 so small, and grow smaller from year to year, the question naturally 
 arises, where does the association get its money to pay expenses, etc. 
 While the above shows what is taking place in regards to the profits 
 on loans, it must be borne in mind that the association does not keep 
 money idle, and that the (52.00 returned each year is immediately 
 loaned out to some other borrower, so that the association is always 
 receiving approximately the profit of $12.40 per thousand on out- 
 standing mortgage loans, as shown the first year above, or simply 
 the difference between the interest it charges, of $62.40 per thousand 
 and the 5% dividends it allows its members for the use of its money. 
 This shows in a most emphatic manner the mutuality and great 
 beneficence of the building associations of this country. 
 
 SOURCES OF PROFIT. 
 
 If this, however, was the only source of profit, the associations 
 would scarcely be able to pay their way and continue in existence. 
 There are a number of other sources of small profits. 
 
 1st. Some associations charge initiation fees (although it is 
 almost entirely abolished by associations in Ohio), and this is all 
 profit. 
 
 2d. There is a small profit made on pass-books. 
 
 3d. A premium was formerly charged for the preference in ob- 
 taining a loan, or as a settled policy of the management of the asso- 
 ciation, which is another small source of profit where that practice 
 still prevails. 
 
 4th. There is what is called, in insurance parlance, the lapse 
 element. Members draw out their dues from week to week and 
 get no dividends on them. 
 
 5th. Most associations levy fines of 5 or 10 cents per share 
 for delinquency of payments, some associations limiting this charge 
 to borrowers only. 
 
 (ith. Many associations now have large reserves and undivided 
 profit funds, which, of course, are not idle, and the full earnings 
 per year per thousand is all profit on these. 
 
 [313]
 
 CHAPTER XXI. 
 
 DECLARING l%% DIVIDENDS SEMI-ANNUALLY. 
 
 Prepared by W. H. Jones, Public Accountant, Cincinnati, O. 
 
 In the Report of the Ohio State Inspector of Building Associa- 
 tions for the year 1909, on page 12, under heading "Miscellaneous 
 Information," will be found the following: 
 
 "Average rate of dividend declared by all associations in 
 Ohio, 5.36%." 
 
 This indicates that the vast majority of the Ohio associations do 
 not pay more than 5% dividends. 
 
 EXPLANATION. 
 
 The following method of declaring a 5%, or rather a semi-annual 
 dividend of 2 l / 2 c /c, is used by one of our leading secretaries, to wit: 
 2 l / 2 % reduced to a decimal is 2.5%. To remove the decimal we 
 should have to multiply it by 10, which would then give 25% 
 (twenty-five per cent). It is apparent and well known that 25% is 
 one-fourth, but it is not so apparent or well known that 2.5% is one- 
 fortieth, or the same number (4), as a divisor, with a cipher to the 
 right (40). Now if one wanted to know what 25% of $400.00 
 amounted to it would only be necessary to divide the $400.00 by 4 
 and the result obtained would be $100.00. 
 
 Suppose we take a larger amount, say $864.00, and perform the 
 operation by this short method: 4 )864 You will note that we get 
 
 ""216 
 the answer by placing the quotient directly under the figures which 
 are divided by the divisor, 4. Now in order to divide by 40 to get 
 2^2% we simply ignore the cipher and divide by 4, but place the 
 answer one place to the right, so 40)864.00 or by cancelling one 
 
 21.60 
 cipher in each — the divisor and dividend — we get 4)86.40 
 
 21.60 
 
 It will therefore be seen that after a secretary has figured out 
 and extended the averages for each member in his dividend book 
 (there will not be any cents in the averages, the unit dollars being 
 the last figure on the right) it will only be necessary to begin at 
 the top and divide each amount by 4 and carefully place the quotient 
 one place to the right, as shown above. 
 
 By this method a page of fifty accounts may be calculated and 
 extended in fifteen minutes after you become thoroughly familiar 
 with it. All that is required is accuracy in dividing by 4, and care 
 in placing the answer in the right position for dollars and cents in 
 the "Total for Dividend" column. 
 
 [314]
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 To verify add the total column of averages and the total dividend 
 column. Divide the former total by 4 and you should get the latter 
 (when correct). If they do not agree within a few cents you will 
 find that it is because you have odd unit dollar figures in your aver- 
 ages, where you dropped a half cent in the dividends. Run your 
 eye up the unit column of averages and count the number of them 
 (not the sum of them) and divide this number by 2; if the answer is 
 even you will obtain the exact difference in your footing; if you 
 get an odd number after dividing by 2 your answer will be the exact 
 difference within a half cent. If it does not prove in this manner 
 you have made an error somewhere. 
 
 Take the following illustration: 
 
 The first column of figures below represents your averages 
 entitled to dividend, the second column the amount of the dividend. 
 Divide the former by 4 and you see the results in the latter and just 
 how they should be placed as explained above. 
 
 Averages 
 
 
 entitled 
 
 Total 
 
 to Div'd 
 
 Div'ds 
 
 $28.00 
 
 $0.70 
 
 14.00 
 
 .35 
 
 12.00 
 
 .30 
 
 27.00* 
 
 .67 
 
 86.00 
 
 2.15 
 
 95.00* 
 
 2.37 
 
 140.00 
 
 3.50 
 
 260.00 
 
 6.50 
 
 385.00* 
 
 9.62 
 
 490.00 
 
 12.25 
 
 1,000.00 
 
 25.00 
 
 36.00 
 
 .90 
 
 13.00* 
 
 .32 
 
 26.00 
 
 .65 
 
 52.00 
 
 1.30 
 
 4)12,664.00 
 
 $66.58 
 
 66.60 
 
 
 ♦Shows four odd unit figures in your averages. Divide 4 by 2 
 (l/ 2 cent difference on each one) and you get 2, which is the 2 cents 
 difference between your total footing for dividends and your 
 quotient after dividing total of averages by 4. 
 
 [315]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 • 
 
 
 
 
 
 
 CHAPTER XXI. 
 
 PERPETUAL WEEKLY CALENDAR. 
 
 HOW TO MAKE IT. 
 
 How to find the number of weeks between two given dates on 
 
 the same day of the week. 
 
 1922 
 
 1923 
 
 
 1924 
 
 
 Jan. 
 
 ,|, 
 
 8 
 
 4 
 
 5 
 
 6 
 
 7 
 
 1 
 
 Jan. 
 
 81 
 
 1 
 
 2 
 
 8 
 
 4 
 
 5 
 
 6 
 
 53 
 
 Jan. 
 
 30 
 
 31 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 106 
 
 
 8 9 
 
 10 
 
 11 
 
 12 
 
 18 
 
 14 
 
 2 
 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 64 
 
 
 6 
 
 7 
 
 s 
 
 9 
 
 10 
 
 11 
 
 12 
 
 106 
 
 
 15|l6 
 
 17 
 
 18 
 
 19 
 
 80 
 
 8] 
 
 3 
 
 
 14 
 
 16 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 65 
 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 107 
 
 
 22|23 
 
 2 1 
 
 86 
 
 86 
 
 27 
 
 88 
 
 4 
 
 
 21 
 
 22 
 
 88 
 
 2 4 
 
 25 
 
 86 
 
 27 
 
 56 
 
 
 90 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 20 
 
 108 
 
 Feb. 
 
 29 
 
 30 
 
 81 
 
 1 
 
 2 
 
 8 
 
 4 
 
 5 
 
 Feb. 
 
 88 
 
 29 
 
 80 
 
 81 
 
 1 
 
 2 
 
 3 
 
 67 
 
 Feb. 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 109 
 
 
 6 
 
 6 
 
 7 
 
 8 
 
 8 
 
 in 
 
 11 
 
 6 
 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 58 
 
 
 3 
 
 4 
 
 6 
 
 6 
 
 7 
 
 8 
 
 
 
 110 
 
 
 is 
 
 13 
 
 14 
 
 15 
 
 if, 
 
 17 
 
 is 
 
 7 
 
 
 1 1 
 
 12 
 
 18 
 
 1 1 
 
 15 
 
 10 
 
 17 
 
 69 
 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 10 
 
 111 
 
 
 to 
 
 20 
 
 21 
 
 2 2 
 
 88 
 
 2 4 
 
 2 5 
 
 8 
 
 
 18 
 
 19 
 
 20 
 
 2 1 
 
 22 
 
 23 
 
 24 
 
 60 
 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 112 
 
 Mar. 
 
 ee 
 
 27 
 
 88 
 
 1 
 
 2 
 
 3 
 
 4 
 
 9 
 
 Mar. 
 
 86 
 
 26 
 
 27|28 
 
 1' 
 
 2 
 
 3 
 
 61 
 
 Mar. 
 
 24 
 
 25 
 
 20 
 
 27 
 
 88 
 
 29 
 
 1 
 
 118 
 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 1(1 
 
 1 1 
 
 10 
 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 62 
 
 
 2 
 
 3 
 
 1 
 
 5 
 
 (i 
 
 7 
 
 8 
 
 114 
 
 
 12 
 
 18 
 
 14 
 
 16 
 
 16 
 
 17 
 
 18 
 
 11 
 
 
 1 1 
 
 12 
 
 18 
 
 14 
 
 15 
 
 16 
 
 17 
 
 63 
 
 
 9 
 
 10 
 
 1 1 
 
 12 
 
 13 
 
 14 
 
 15 
 
 115 
 
 
 19 
 
 80 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 12 
 
 
 is 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 64 
 
 
 10 
 
 17 
 
 IS 
 
 19 
 
 20 
 
 21 
 
 22 
 
 116 
 
 Apr. 
 
 26(27 
 
 28 
 
 80 
 
 80 
 
 81 
 
 1 
 
 13 
 
 
 86 
 
 26 
 
 27 
 
 88 
 
 29 
 
 80 
 
 31 
 
 65 
 
 
 23 
 
 24 
 
 2 5 
 
 26 
 
 27 
 
 28 
 
 29 
 
 117 
 
 
 2 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 14 
 
 Apr. 
 
 1 
 
 2 
 
 8 
 
 4 
 
 5 
 
 6 
 
 7 
 
 66 
 
 Apr. 
 
 30 
 
 31 
 
 1 
 
 2 
 
 3 
 
 4 
 
 6 
 
 118 
 
 
 9 10 
 
 11 
 
 12 
 
 18 
 
 14 
 
 16 
 
 15 
 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 67 
 
 
 6 
 
 7 
 
 S 
 
 9 
 
 10 
 
 11 
 
 12 
 
 119 
 
 
 16|17 
 
 18 
 
 10" 
 
 "2 
 
 21 
 
 22 
 
 16 
 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 68 
 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 120 
 
 
 23|24 
 
 86 
 
 86 
 
 27 
 
 88 
 
 29 
 
 17 
 
 
 22 
 
 23 
 
 24 
 
 25 
 
 20 
 
 '27 
 
 28 
 
 69 
 
 
 20 
 
 21 
 
 22 
 
 23 
 
 2 4 
 
 25 
 
 20 
 
 121 
 
 May 
 
 30| 1 
 
 2 
 
 8 
 
 4 
 
 6 
 
 6 
 
 18 
 
 May 
 
 89 
 
 30 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 70 
 
 May 
 
 27 
 
 28 
 
 2 9 
 
 30 
 
 1 
 
 2 
 
 8 
 
 122 
 
 
 7| 8 
 
 9 
 
 in 
 
 1 1 
 
 18 
 
 13 
 
 19 
 
 
 8 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 71 
 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 123 
 
 
 14 15 
 
 16 
 
 17 
 
 18 
 
 10 
 
 80 
 
 20 
 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 72 
 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 124 
 
 
 2l|22 
 
 23 
 
 2 4 
 
 2 5 
 
 2G 
 
 27 
 
 21 
 
 
 80 
 
 21|22 
 
 23 
 
 24 
 
 2 5 
 
 26 
 
 73 
 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 125 
 
 June 
 
 28 29 
 
 80 
 
 31 
 
 1 
 
 2 
 
 8 
 
 22 
 
 June 
 
 27 
 
 28|29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 74 
 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 126 
 
 
 4 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 23 
 
 
 8 
 
 41 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 75 
 
 June 
 
 11 2 
 
 3 
 
 4 
 
 6 
 
 6 
 
 7 
 
 127 
 
 
 11 12 
 
 18 
 
 14 
 
 15" 
 
 16 
 
 17 
 
 24 
 
 
 in 
 
 11 12 
 
 18 
 
 14 
 
 15 
 
 16 
 
 76 
 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 128 
 
 
 18|19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 
 17 
 
 18 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 77 
 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 129 
 
 July. 
 
 25 
 
 86 
 
 27 
 
 28 
 
 29 
 
 80 
 
 1 
 
 26 
 
 
 2 4 
 
 25|26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 78 
 
 
 22 
 
 23 
 
 2 4 
 
 25 
 
 26 
 
 27 
 
 88 
 
 130 
 
 
 2 
 
 8 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 27 
 
 July. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 6 
 
 6 
 
 7 
 
 79 
 
 July. 
 
 29 
 
 30 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 131 
 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 28 
 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 18 
 
 14 
 
 80 
 
 
 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 132 
 
 
 16 
 
 17 
 
 IS 
 
 19|20 
 
 21 
 
 2 2 
 
 29 
 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 2 
 
 21 
 
 81 
 
 
 13 
 
 14 
 
 15 
 
 16117 
 
 18 
 
 19 
 
 133 
 
 
 88 
 
 2 4 
 
 25 
 
 26127 
 
 88 
 
 29 
 
 30 
 
 
 22 
 
 23 
 
 2 4 
 
 25 
 
 26 
 
 27 
 
 28 
 
 82 
 
 
 20 
 
 21 
 
 22 23121 
 
 25 
 
 26 
 
 134 
 
 Aug. 
 
 3D 
 
 31 
 
 1 
 
 2 3| 4 
 
 5 
 
 31 
 
 Aug. 
 
 89 
 
 30 
 
 81 
 
 1 
 
 2 
 
 a 
 
 4 
 
 83 
 
 Aug. 
 
 27 
 
 28 
 
 29 
 
 30 31 
 
 1 
 
 2 
 
 185 
 
 
 6 
 
 7 
 
 8 9|10 
 
 11 12 
 
 32 
 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 84 
 
 1 3 
 
 4| 5] 
 
 6 7 
 
 8 
 
 9 
 
 136 
 
 
 13 
 
 14 
 
 15116117 
 
 18 
 
 19 
 
 33 
 
 
 18 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 85 
 
 10 
 
 11112 
 
 13|14 
 
 15 
 
 Ifi 
 
 137 
 
 
 20 
 
 21 
 
 22|23|24 
 
 25 
 
 86 
 
 34 
 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 2 4 
 
 25 
 
 86 
 
 
 17 
 
 18 
 
 19 
 
 20|21 
 
 22 
 
 23 
 
 138 
 
 Sep. 
 
 •27 
 
 88 
 
 29|30 31 
 
 1 
 
 2 
 
 85 
 
 Sep. 
 
 20 
 
 27 
 
 88 
 
 89 
 
 30 
 
 81 
 
 1 
 
 87 
 
 
 24 
 
 25 
 
 20 
 
 27128 
 
 29 
 
 30 
 
 189 
 
 
 a 
 
 4 
 
 5 6[ 7 
 
 8 
 
 9 
 
 36 
 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 88 
 
 Sep. 
 
 31 
 
 1 
 
 2 
 
 31 4 
 
 5 
 
 6 
 
 140 
 
 
 in 
 
 11 
 
 12 13114 
 
 15 
 
 16 
 
 37 
 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 89 
 
 
 7 
 
 8 
 
 9 
 
 10(11 
 
 12 
 
 13 
 
 141 
 
 
 17 
 
 18 
 
 19 20|21 
 
 22 
 
 23 
 
 38 
 
 
 10 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 90 
 
 
 14 
 
 15 
 
 10 
 
 17(18 
 
 19 
 
 20 
 
 142 
 
 
 2 4 
 
 25 
 
 26(27(28 
 
 80 
 
 B0 
 
 39 
 
 
 88 
 
 24 
 
 25 
 
 86 
 
 27 
 
 88 
 
 29 
 
 91 
 
 
 21 
 
 22 
 
 2 3 
 
 24)25 
 
 26 
 
 27 
 
 143 
 
 Oct. 
 
 1 
 
 2 
 
 3|4 5 
 
 6 
 
 7 
 
 40 
 
 Oct. 
 
 80 
 
 1 
 
 21 i 
 
 4 
 
 5 
 
 6 
 
 92 
 
 Oct. 
 
 88 
 
 29 
 
 30 
 
 H 2 
 
 3 
 
 4 
 
 144 
 
 
 8 
 
 9 
 
 10 i 1 l) 12 
 
 13 
 
 1 1 
 
 41 
 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 93 
 
 
 5 
 
 6 
 
 7 
 
 8 9 
 
 10 
 
 11 
 
 146 
 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 80 
 
 2 1 
 
 42 
 
 
 14 
 
 15 
 
 10 
 
 IT 
 
 18 
 
 19 
 
 20 
 
 94 
 
 
 12 
 
 13 
 
 14 
 
 15(16 
 
 17 
 
 IS 
 
 146 
 
 
 22 
 
 88 
 
 24 
 
 2 5 
 
 20 
 
 2 7 
 
 2S 
 
 43 
 
 
 21|22 
 
 88 
 
 2 4 
 
 25 
 
 86 
 
 27 
 
 95 
 
 
 19 
 
 20 
 
 21 
 
 22 123 
 
 24 
 
 25 
 
 147 
 
 Nov. 
 
 2 it 
 
 80 
 
 31 
 
 1 
 
 .1 
 
 a 
 
 4 
 
 44 
 
 Nov. 
 
 28 29 
 
 80 
 
 81 
 
 1 
 
 2 
 
 8 
 
 96 
 
 Nov. 
 
 20 
 
 27 
 
 88 
 
 29130 
 
 31 
 
 1 
 
 148 
 
 
 6 
 
 R 
 
 7 
 
 8 
 
 8 
 
 10 
 
 11 
 
 45 
 
 
 4 5 
 
 6 
 
 7 
 
 8 
 
 it 
 
 10 
 
 97 
 
 
 2 
 
 3 
 
 4 
 
 5| 6 
 
 7 
 
 S 
 
 149 
 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 IS 
 
 46 
 
 
 11]12 
 
 18 
 
 14 
 
 15 
 
 16 
 
 17 
 
 98 
 
 
 9 
 
 10 
 
 11 
 
 12113 
 
 14 
 
 15 
 
 160 
 
 
 19 
 
 20 
 
 21 
 
 22' 
 
 2 3 
 
 84 
 
 2 5 
 
 47 
 
 
 18J19 
 
 20 
 
 21 
 
 22 
 
 2 3 
 
 24 
 
 99 
 
 
 10 
 
 17 
 
 18I19J20 
 
 21 
 
 22 
 
 161 
 
 Dec. 
 
 86 
 
 27 
 
 88 
 
 29 
 
 30 
 
 1 
 
 1 
 
 48 
 
 Dec. 
 
 25 
 
 26 
 
 27 
 
 88 
 
 29 
 
 30 
 
 1 
 
 100 
 
 
 23 
 
 24 
 
 2f>|26|27 
 
 28 
 
 29 
 
 152 
 
 
 8 
 
 4 
 
 5 
 
 8 
 
 7 
 
 8 
 
 9 
 
 49 
 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 101 
 
 Dec. 
 
 30 
 
 1 
 
 2 3! 4 
 
 5 
 
 
 
 158 
 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 16 
 
 10 
 
 50 
 
 
 9 
 
 10 
 
 11 
 
 18 
 
 13 
 
 14 
 
 15 
 
 102 
 
 
 7 
 
 8 
 
 9|10Tll 
 
 12 
 
 13 
 
 164 
 
 
 17 
 
 18 
 
 10 
 
 80 
 
 21 
 
 88 
 
 23 
 
 61 
 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 103 
 
 
 11 
 
 15 
 
 16117118 
 
 19 
 
 20 
 
 156 
 
 
 24 
 
 2 5 
 
 86 
 
 27 
 
 28 
 
 2 9 
 
 30 62 
 
 
 88 
 
 24 
 
 25 
 
 20 
 
 27 
 
 88 
 
 29 
 
 104 
 
 
 21 
 
 22 
 
 23 24 26 26 
 1 1 1 1 
 
 27 
 
 166 
 
 r.siGi
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 This calendar is a sample page for three years— 1922-"23-'24 — 
 showing how it may be constructed, for an indefinite number of 
 years, to give the dates by the week, and have them numbered con- 
 secutively. If the weekly meeting starts on January 2, 1922, then 
 the dates for each week, for 52 weeks, down to December 25th, are 
 shown in the second column, and their numerical consecutive order 
 in the eighth column, 1 to 52. 
 
 Each of the seven columns of dates show, in the same way, the 
 weekly meetings according to the different dates of starting, as 
 shown in the first seven days of January. 
 
 If you do not wish to keep it for any other dates except the one 
 for your individual requirements, then you need only make it with 
 one column of weekly dates. 
 
 If you want to start with the first meeting of your association, 
 then all you have to do is to get a perpetual calendar of regular 
 form, covering a period of 50 or more years, with index numbers for 
 the years, and prepare the series of years in the manner shown, 
 beginning number one with the date of your first meeting, and then 
 continue it from year to year, or extend it for a period of years 
 in advance. (A perpetual calendar such as referred to above fol- 
 lows on next few pages.) 
 
 Such a calendar enables the secretary to ascertain the number 
 of meetings between any two dates a member should have paid 
 dues, and the amount. For instance : suppose a borrower starts 
 on January 16, 1922, and you want to ascertain, on December 4, 1922, 
 both dates inclusive, what he owes, or should have paid. You look 
 to the right opposite December 4th, and you find No. 49 in the 
 numerical column, and opposite January 16, 1922, you find No. 3 in 
 the same manner. Now in order to include the meeting of January 
 16th you must either take the number directly preceding, which 
 would be 2, or always subtract 1 from the number opposite the 
 date of beginning, thus, 3 — 1=2. Now subtract 2 from 49, or 
 49—2=47, and you get the total number of meetings he should have 
 paid. If you wished to find the lapsed time for which interest 
 was due, instead of the number of weeks dues should have been 
 paid, then you take- the rxact numbers opposite the dates between 
 which you want to ascertain die number of weeks interest should 
 have been paid, to wit : 19 — 3=46 weeks for interest. 
 
 When an association has advanced pretty well along in years you 
 will readily sec how very valuable and useful, for quick results in 
 calculation, such a consecutive numerical order of meetings becomes. 
 
 [3171
 
 Cll \1TKR XXI. 
 
 DIRECTIONS — Find the year wanted in the Index below. The number 
 opposite is the number of the calendar for that year, which will be found in 
 one »f the following panels. 
 
 VEA8 NO. 
 
 1858 10 
 
 1857 6 
 
 1858 6 
 
 1850 7 
 
 I860 8 
 
 1S61 3 
 
 186'-.' 4 
 
 186!; 5 
 
 1864 18 
 
 1860 1 
 
 1860 2 
 
 1867 3 
 
 186t: 11 
 
 lsey 6 
 
 1870 7 
 
 1871 1 
 
 187!.' 9 
 
 187!< 4 
 
 1874 5 
 
 1876 6 
 
 YEAR 
 1876. 
 
 1S77 . 
 
 1878. 
 
 1879 
 
 1880. 
 
 1881. 
 
 1882. 
 
 1888. 
 
 1884. 
 
 1885. 
 
 1886. 
 
 1867. 
 
 188« 
 
 1889. 
 
 1890. 
 
 1891. 
 
 1892. 
 
 1893. 
 
 1894. 
 
 1895 . 
 
 NO. 
 
 .14 
 
 . 8 
 . 4 
 
 .12 
 
 . 7 
 . 1 
 2 
 .10 
 . 5 
 . 6 
 . 7 
 . 8 
 . S 
 . 4 
 . 5 
 .13 
 . 1 
 . 2 
 . 3 
 
 V P.AR 
 
 NO. 
 
 YEAR 
 
 NO. 
 
 YEAR 
 
 NO. 
 
 1896 . . . 
 
 ...11 
 
 1916. . . 
 
 ...14 
 
 1936. . . 
 
 ...11 
 
 
 
 
 
 1937. .. 
 
 ... 6 
 
 1898 . . 
 
 . .. 7 
 
 1918. . . 
 
 . .. 8 
 
 1938. .. 
 
 ...7 
 
 1891' . . . 
 
 ... 1 
 
 1919. .. 
 
 . .. 4 
 
 1989. .. 
 
 ... 1 
 
 1900. . . 
 
 . .. 2 
 
 1920. . . 
 
 ...18 
 
 1940. .. 
 
 ...9 
 
 1901. . . 
 
 ...3 
 
 1921. . . 
 
 ...7 
 
 1941. . . 
 
 ...4 
 
 1902. .. 
 
 . .. 4 
 
 1922 . . . 
 
 . .. 1 
 
 1942 . . . 
 
 ... f 
 
 190S . . . 
 
 . .. 5 
 
 1923. . . 
 
 . .. 2 
 
 1943. . 
 
 . .. 6 
 
 1904 . . 
 
 ...18 
 
 1924. .. 
 
 ...10 
 
 1944. . 
 
 ...14 
 
 1905. 
 
 ... 1 
 
 1925. . 
 
 ... 5 
 
 1945... 
 
 . .. 2 
 
 1908. . 
 
 . .. 2 
 
 1926. .. 
 
 ...6 
 
 1946. . 
 
 . .. 3 
 
 1907. . . 
 
 ... 3 
 
 1927 . . 
 
 . .. 7 
 
 1947. . 
 
 ... 4 
 
 1908. . . 
 
 . ..11 
 
 1928. . 
 
 . .. 8 
 
 1948. . 
 
 ...12 
 
 1909 . . 
 
 ... 6 
 
 1929. . 
 
 ... 3 
 
 1949. . 
 
 ... 7 
 
 1910. . 
 
 ... 7 
 
 1930. 
 
 ... 4 
 
 1950. . 
 
 .. 1 
 
 1911. . 
 
 ... 1 
 
 1931. . 
 
 ... 6 
 
 1961 . . 
 
 ... 2 
 
 1912. . 
 
 ... 9 
 
 1932. . 
 
 ...13 
 
 1952 . . 
 
 ...10 
 
 1910 . . 
 
 ... 4 
 
 1933. . 
 
 ... 1 
 
 1953.. 
 
 ... 5 
 
 1914.. 
 
 ... 5 
 
 1934. . 
 
 ... 2 
 
 1954. . 
 
 ... 6 
 
 1915. . 
 
 ... 6 
 
 1935. . 
 
 ... 3 
 
 
 
 Jul 
 
 Ear. 
 April 
 
 June 
 
 8 M TVf T F fi 
 
 15 
 21 22 23 
 28 29 30 31 
 
 16 17 18 18 
 
 24 25 26 27 
 
 4 5 6 7 
 
 11 12,13 14 
 
 HI1M20I21 
 25 26 27 28 
 
 25 26 
 
 2021 
 
 27 28 
 
 i 
 
 10 
 171 
 
 2S|2« 
 
 30 
 
 16 
 23 
 20 30 
 
 2 
 
 2 
 9 
 
 15 16 
 
 22)23 
 
 ■i3 
 
 2| 3 
 10 
 IT 
 24 
 31 
 
 7 
 14 
 21 
 28|29 
 
 27 23 
 
 Jalj 
 
 Aug. 
 Sept. 
 
 Od 
 
 Sor. 
 
 Dae. 
 
 SMIWTF8 
 
 a 8 
 
 29 
 
 30 
 
 6 
 13 
 20 
 
 ■a 
 1 
 
 10 
 17 
 23 24 
 30 
 1 
 8 
 
 2 3 4 
 
 24 25 28 
 
 25 26 27 28 
 
 S 6 
 
 «ta 
 
 1!) 
 
 29 30 31 
 
 5 
 12 
 
 IflSO 
 26 27 
 
 20 
 
 24 26 
 
 8 V 
 15 16 
 2323 
 
 29 
 
 1211 
 10 20 
 
 30 
 
 27 28 28 
 
 The year* for which this Calendar stands 
 ere found In the Index. 
 
 [318]
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 3 
 
 Feb. 
 Bar. 
 
 April 
 Bay 
 June 
 
 8 1 
 
 13 14 
 
 20 21 
 
 28 
 
 TW T 
 
 I 2 3 
 
 8 9 10 
 
 16 16 ir 
 
 [2324 
 
 3 
 
 19,20;2ll22 
 
 05 26 
 
 30 31 
 
 4 5 
 
 U|12 
 16119 
 2528 
 
 6 
 12,13 
 
 27 (2d 
 
 19*20 21 
 26 I 27 2S 
 
 3 
 
 7 8 9(10 
 14 15 1C.17 
 
 21 22'22|24 
 29|30_. 
 
 •• 1 
 
 7 8 
 12 13114 1516 
 
 19|20|2ll22(23 
 26 27 2fc 29|30 
 
 29 
 
 9 
 U 
 
 a 
 1 
 
 9 
 
 16 
 
 2823 
 
 30 
 
 5 
 12 
 
 1920 
 26,27 
 
 2J 3j 4 
 
 91011 
 
 16|17 IS 
 
 1912021 
 23J4.25(28p 28 
 
 aoj_|„ 
 
 3! 4 
 
 SllOill 
 
 17 16 
 
 24 25 
 31 L. 
 
 - ! 
 
 7 
 
 5 6 
 I2|13|14 
 
 My 
 Aag. 
 
 
 Sept. 
 Od 
 Sot. 
 
 Dm. 
 
 8 M 
 
 7 8 
 15 
 
 26 '26 
 
 W 
 
 2 8 4 
 9 10 11 
 
 23:24 
 29 30J31 
 
 Trail 
 
 12Jl3|l4 
 
 19'20!21 
 
 F 
 
 5 6 
 
 12 13 
 19 20 
 
 26 27 
 
 1 
 
 a 
 is 
 
 22 
 
 29tt0 
 
 "e 
 
 13 
 
 2o 
 
 27 
 
 I 
 
 10 
 15 16 17 
 
 22J23 24 
 28 29 30|31 
 
 2|"3f4 *5 
 9 10] 1 1 1 12 
 16 
 
 8 9 
 15 16 
 
 22 28 
 
 The years for whlct) this Calendar stands 
 are found in tbe Index. 
 
 
 
 
 
 
 
 
 
 * 
 
 
 
 
 
 
 
 
 
 
 S 
 
 M 
 
 T 
 
 W 
 
 T 
 
 F 
 
 B 
 
 
 a 
 
 1 
 
 T 
 
 W 
 
 T 
 
 F 
 
 8 
 
 
 hm\ 
 
 
 
 
 ) 
 
 2 
 
 3 
 
 4 
 
 July 
 
 
 
 1 
 
 2 
 
 a 4 
 
 6 
 
 
 
 B 
 
 1 
 
 7 
 
 B 
 
 9 
 
 10 
 
 11 j 
 
 6 
 
 7 
 
 8 
 
 9 
 
 w 
 
 1112 
 
 
 
 12 
 
 13 
 
 11 
 
 15 
 
 !6 17 18 
 
 
 13 14 
 
 15 
 
 IS 
 
 17 
 
 18 19 
 
 
 ■ 
 
 IS 
 
 20 21 
 
 2i 23124 125 
 
 
 20 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26, 
 
 
 
 ',"'■', 
 
 27 
 
 28|29;3J 3li — 
 
 
 27 28 
 
 29110 
 
 31 
 
 
 ...! 
 
 
 Feb. 
 
 
 
 1 1 
 
 ~ 1 
 
 7 8 
 
 Aug. 
 
 "ahi 
 
 "ft" 6 
 
 "7 
 
 1 
 
 B 
 
 i 
 
 
 ?, 
 
 3 
 
 ■i 8 6 
 
 
 
 9 
 
 111 
 
 11 12 13 
 
 14 15 
 
 
 10I11 
 
 1213 
 
 14115 
 
 iel 
 
 
 
 11 
 
 17 
 
 18 19 20 
 
 21 \a\ 
 
 
 17 |18|19|20|21|22 2.'; 
 
 
 Ear. 
 
 a 
 
 24 
 
 26 2fi|27 
 
 23... 
 
 
 (21 
 
 20 
 
 26,27 
 "2)3 
 
 2S29i30| 
 
 
 "2 
 
 1 
 
 4 
 
 6 6 
 
 - l 
 
 7 8 
 
 Sept 
 
 31 
 
 1 
 
 "4|'5 
 
 6^ 
 
 
 
 9 
 
 M 
 
 11 
 
 12 IS 14; 15 
 
 
 1 
 
 8 
 
 9 JO 
 
 11 12 
 
 13 
 
 
 
 it; 
 
 17 
 
 18 
 
 1920'21 
 
 '-.' 
 
 
 14 15 
 
 i6[i7 ia;i9 
 
 201 
 
 
 
 23 
 
 24 
 
 ■ 
 
 20 IS 1 ^ 
 
 28i 
 
 
 21122 23 24 25126 
 
 S l 
 
 
 April 
 
 30 
 
 31 
 
 1 
 
 <• 
 
 1 
 
 4 
 
 B 
 
 Oct 
 
 28 29 SO 
 
 
 
 
 
 
 
 1 
 
 ds 
 
 4 
 
 
 ft 
 
 7 
 
 B 
 
 S 
 
 10 
 
 11 12 
 
 
 5 6 
 
 7 
 
 8 
 
 9 10 
 
 11 
 
 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 19 
 
 
 lit 13 
 
 14 15 
 
 16U7 
 
 U 
 
 
 
 20 
 
 a 
 
 22 
 
 23 24 
 
 25 26 
 
 
 19120 21122 
 
 23124 
 
 to 
 
 
 
 t, n 
 
 '29 
 
 30 
 
 
 
 
 2.1(27 
 
 28 29130131 
 
 ...1 
 
 
 Maj 
 
 J... 
 
 
 
 1 
 
 2-: 3 
 
 Sot. 
 
 
 
 ......L.. 
 
 ll 
 
 
 4 6 
 
 B 
 
 7 
 
 8 
 
 9 10 
 
 
 2 3 
 
 •i 
 
 51 6| 7 
 
 B 
 
 
 
 11 12 13 
 
 14 
 
 15 
 
 lfi!l7 
 
 
 9 10 11 
 !6|17J18 
 
 23 24j2J 
 
 12113 
 
 14 
 
 15 
 
 
 
 181920 
 
 21 
 
 22 
 
 ■23 '24 
 
 
 lap 
 
 21 22 
 
 
 
 25p3 27 
 
 '23 
 
 a 
 
 3C- 
 
 31 
 
 
 26 27 
 
 28 29 
 
 
 Jdm 
 
 "i "it's 
 
 ~4 
 
 1 
 
 "i 
 
 1 
 
 Dec. 
 
 30 
 
 I 
 
 ". : 
 
 "3' 4 
 
 r 
 
 6 
 
 
 
 l 
 
 910 
 
 11 
 
 12 
 
 13 
 
 14 
 
 
 7 
 
 B 
 
 9110111 
 
 H 
 
 13 
 
 
 
 15 
 
 16H7 
 
 18 
 
 H 
 
 2(1 
 
 21 
 
 
 14 
 
 15 
 
 16 17 IS 
 
 l'J 
 
 20 
 
 
 
 m 
 
 23124 
 
 ■ 
 
 ■ 
 
 27 
 
 28 
 
 
 21 
 
 22 
 
 23 24 25 
 
 a; 
 
 27 
 
 
 
 2' 
 
 H- 
 
 
 - 
 
 ... 
 
 •- 
 
 
 28 
 
 2d 
 
 30J31 ... 
 
 ... 
 
 ... 
 
 
 Tbe years for which thrs Calendar stands 
 
 
 are fonnd In the Index, 
 
 B 
 
 Jia. 
 
 M 
 
 Bit. 
 April 
 1*7 
 
 mt 
 
 1 
 
 B 
 
 13 
 22 
 
 a a 
 
 t|y¥T F Sp _ 8 «Il^H£ 
 
 2 8 4 
 9 10 It 
 
 1(1. 17 18 
 23(21 26 
 3031 
 
 7 
 14 
 
 21 
 
 27128 
 
 19 20 
 
 1 2 
 
 15' 16 
 
 22 23 
 
 9H0 
 16 
 23 24 
 
 24 25.26 27 
 
 J 
 
 3 4 
 
 10,11 
 17 18 
 
 5 6 
 12 13 
 
 10 2') 
 
 25 20 
 
 1344 
 
 24 25126 27 
 
 a 
 
 28 29 30 
 
 12 11 14 
 
 a a 21 
 
 a a 
 
 a 
 
 3 4 
 
 1011 
 
 17 18 
 
 T 
 
 I 
 
 Iu li 
 
 17' 
 
 24 
 
 31 
 
 7 
 It 
 21 
 
 a 
 
 ~7 
 
 ■-'I 
 a] 
 
 "4 
 
 11 
 
 181 
 
 H 
 
 2 
 
 18 
 
 a 
 
 a a 
 
 Jul; 
 
 Aog. 
 
 Oct 
 
 Hot 
 
 Ik 
 
 5) 6 7 
 12 13|11 
 19 20 21 
 26 9 28 
 
 18 
 
 4 6 
 11 12 
 
 18 19 
 
 22K3 
 
 22 23 
 
 a a 
 
 26 
 
 10 
 
 8 7 
 13! 14 
 
 20;2l(22 
 28 29 
 
 4 A 
 llll2 
 
 \ 
 8 
 
 •2 123 
 
 a N 
 
 15128 
 2l"3 
 
 If 19 l 20t2l 
 
 2I« 
 
 3 4 
 
 10 1 
 
 The years for which this Calendar stands 
 aro found In tho Index. 
 
 6 
 
 Feb. 
 
 Jar. 
 
 April 
 
 Hay 
 
 Jui; 
 
 G 
 
 12 
 18|19 
 
 W 
 
 Oj 7 
 14 
 
 25 
 
 26 
 
 1 
 
 8 
 
 15 _. 
 22 23 
 
 2 I 
 
 3 
 
 9fl0 11 
 
 16 17 18 
 
 125 
 
 10 11 
 
 2 
 
 9 
 
 16 
 
 23 
 
 29 30 
 
 \ > 1 I HJ 
 
 21 22 23 
 
 •28 29 30 
 
 19 20 
 
 7 
 13114 
 
 27 
 
 I 
 
 10 
 
 17 
 
 a 124 
 
 30 
 
 2., 
 
 25 28 
 
 July 
 
 Aug. 
 
 Sopt 
 
 Od 
 
 Sot, 
 
 Dec, 
 
 8 
 13 
 
 19J20 
 
 4 & 
 1112 
 18 
 
 a 
 
 w 
 
 •7! 
 
 114 15 
 
 •2J2S2D 
 
 3 4 
 10 11 
 
 17 1 18 
 21 
 
 TF 
 
 22 
 
 2 3 
 9 10 
 16 17 
 
 am 
 
 30 31 
 
 20 21 
 
 26 27 
 
 II 
 21 
 
 28229 
 
 19,20 
 
 23 1 24 
 3U 
 1 
 
 B 
 
 a 27 2fl 29 30 
 
 13 
 
 20 
 
 1 
 
 12 
 19 
 
 -pi 
 
 2j~3 
 
 UIU7 
 
 a 
 
 The years for which this Calender stands 
 aro found In the Index. 
 
 CUfll
 
 CHAPTER XXI. 
 
 
 
 
 
 
 
 
 7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 8 
 
 M 
 
 I 
 
 '.V 
 
 T 
 
 F 
 
 ! 
 
 
 8 
 
 M 
 
 
 W 
 
 I 
 
 F 
 
 8 
 
 Ju. 
 
 
 
 
 
 
 
 
 July 
 
 
 
 
 
 
 1 
 
 ? 
 
 1 
 
 3 
 
 4 
 
 8 
 
 I 
 
 7 
 
 ■ 
 
 a 
 
 4 
 
 5 
 
 ft 
 
 7 
 
 8 
 
 9 
 
 
 1 
 
 M 
 
 II 
 
 12 
 
 13 14 IS 
 
 
 10 
 
 11 
 
 11 
 
 13 
 
 14 
 
 IS 
 
 16 
 
 
 is 
 
 1? 
 
 18 1!> 
 
 ■20; 21 22 
 
 
 17 
 
 IS 
 
 III 
 
 21) 
 
 21 
 
 a 
 
 28 
 
 
 jb-« 
 
 25 
 
 a 
 
 27 
 
 28 29 
 
 
 M 
 
 a 
 
 ■2(1 
 
 •27 
 
 28 
 
 ■29 
 
 30 
 
 Ml 
 
 30 
 
 ;il 
 
 1 
 
 "2 
 
 "3 
 
 4 
 
 1 
 
 A* 
 
 31 
 
 "1 
 
 "2 
 
 "'3 
 
 '•i 
 
 "(i 
 
 1 
 
 
 1 
 
 7 
 
 8 
 
 1* 
 
 in 
 
 11 
 
 n 
 
 ,1 
 
 1 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 
 11 
 
 H 
 
 u 
 
 ID 
 
 17 
 
 18 
 
 19 
 
 
 is 
 
 11. 
 
 17 
 
 18 
 
 !<>■ 
 
 •20 
 
 
 2021 
 
 22 
 
 ■.ci 
 
 24 
 
 '.'.'» 
 
 a 
 
 
 21 
 
 32 
 
 aa 
 
 25 
 
 2fi 
 
 27 
 
 ■ft 
 
 8 -.w 
 
 
 
 
 
 
 
 ■is 
 
 a 
 
 30 31 
 
 ... 
 
 
 — 
 
 
 
 | 
 
 
 3 
 
 4. 
 
 1 
 
 Best 
 
 
 
 
 
 1 
 
 2 
 
 S 
 
 
 1 
 
 7 
 
 8 9 
 
 10 
 
 11 
 
 11 
 
 
 4 
 
 ■ 
 
 fl 
 
 7 
 
 8 
 
 9. 
 
 10 
 
 
 13 
 
 14 
 
 IS IB 
 
 17 
 
 IS 
 
 K 
 
 
 II 
 
 a 
 
 LI 
 
 14 
 
 1!. 
 
 IB 1 
 
 17 
 
 
 20'2I 
 
 2223 
 
 24 
 
 2ft 
 
 ■ 
 
 
 IS 
 
 [>.> 
 
 20 
 
 21 
 
 • *■> 
 
 2;i 
 
 24 
 
 
 27.28 
 
 29.30 
 
 31 
 
 
 
 
 2S 
 
 a 
 
 -.7 
 
 a 
 
 a 
 
 M 
 
 
 April 
 
 
 
 1 
 
 *> 
 
 (Id 
 
 
 
 
 
 
 
 1 
 
 
 3 4 
 
 fi A 
 
 7 
 
 8 
 
 9 
 
 
 2 
 
 3 
 
 4 
 
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 6 
 
 7 
 
 8 
 
 
 10 11 12! 13 
 
 14 
 
 M 
 
 IB 
 
 
 I 
 
 10 
 
 11 
 
 12 
 
 II 
 
 14 
 
 18 
 
 
 17 18! 19 20 
 
 21122 
 
 a 
 
 
 If. 
 
 17 
 
 18 
 
 it 
 
 20 
 
 21 
 
 K 
 
 
 24 25;26,27 
 
 28 29 
 
 30 
 
 
 a 
 
 24 24 
 
 26 
 
 27 
 
 28 
 
 29 
 
 lay 
 
 
 
 
 
 "fi 
 
 '7 
 
 Hot. 
 
 30 31 
 
 1 
 
 "2 
 
 "3 
 
 "3 
 
 "s 
 
 1 
 
 » 3 
 
 4 
 
 8 
 
 
 
 
 8 
 
 DUO 
 
 II 
 
 12 13 14 
 
 
 1 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 
 III 
 
 If. 
 
 17 
 
 IS 
 
 1920 
 
 21 
 
 
 11 
 
 14 
 
 If, 
 
 18 
 
 17 
 
 18 
 
 ID 
 
 
 22 
 
 23 
 
 24I2S 
 
 20 27 
 
 28 
 
 
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 21 
 
 22 
 
 23 
 
 24 
 
 •26 
 
 a 
 
 
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 I 
 
 
 Dee. 
 
 ■27 
 
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 . . 1 
 
 2 it 
 
 4 
 
 
 
 
 
 1 
 
 2 
 
 3 
 
 
 5 6 71 8 
 
 W10 
 1ft 17 
 
 11 
 
 
 4 
 
 1 
 
 r, 
 
 7 
 
 8 
 
 9 
 
 10 
 
 
 12 13 14 15 
 
 IS 
 
 
 11 
 
 12 
 
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 14 
 
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 11'. 
 
 17 
 
 
 18]20 21 22 23J24.25 
 
 
 18 
 
 19 
 
 2C 
 
 21 
 
 •*> 
 
 23 
 
 24 
 
 
 28 27)28 29 30 .__ 
 
 
 a 
 
 26 
 
 27 28 
 
 a 
 
 SB 
 
 31 
 
 The years for which 
 
 this Calendar stands 
 
 are found it 
 
 1 the Index. 
 
 8 
 
 Jan. 
 
 Pel. 
 lar. 
 
 April 
 Baj 
 Jme 
 
 8 M T W T 
 
 3 
 
 10 
 i' 
 
 24 
 
 29.30 31 
 
 28 27 28 
 
 4 
 11 
 
 18 
 
 a 
 "i 
 
 hJ 9 
 15 10 
 
 ■22 23 
 2D 30 
 
 'i"7 
 1314 
 20 21 
 
 27 2? 
 
 31 '4 
 10,11 
 1718 
 2125 
 
 I 
 
 13 
 
 2IV2I 
 
 2s 
 
 16 
 
 23 24 2S 
 
 ■25 a 
 
 2 3 
 
 9 10 
 17 
 21 
 31 
 
 "7 
 14 
 
 21 
 
 a 
 
 6 
 13 
 20 
 
 27.28 
 
 F 8 
 
 7 
 
 14 
 
 21 
 ■28 
 
 22:23 
 »30 
 
 July 
 Aog. 
 SepL 
 
 Oct 
 Bw 
 Dee. 
 
 8 M T W 
 
 2 3 
 9 10 
 IB 17 
 
 ■23 24 
 
 30 
 
 7 
 13 14 
 1 
 
 2S 
 
 10 
 17 
 23 24 
 80J... 
 1 
 
 B 
 
 8 6 
 
 12 13 
 
 1920 
 20 27 
 
 3 
 10 
 17 
 24 
 
 3o;3i 
 
 4 
 u 
 
 18 
 25 28 
 
 20 21 
 
 ■27 
 
 a 
 
 The years for which this Calendar stands 
 are found in the Index. 
 
 9 
 
 Jul 
 Feb. 
 
 lar. 
 
 April 
 
 Hsy 
 
 }<at> 
 
 8 M T W T F 8 
 
 2 
 s 
 
 IB 
 ,23 
 
 23 30 
 
 26 27 28 
 
 2 3 
 9 10 
 
 10 17 
 
 23 21 
 
 so)... 
 
 4 6 
 
 1112 
 
 18 19 
 
 •25 26 
 
 19 20 
 
 2 
 
 9 10 
 IB" 
 
 22,23 21 
 
 30 
 
 22 23 
 29 
 
 IS 
 
 21 22123 
 23 29 30 
 
 252627 
 
 8 
 
 13(14 
 
 20 
 
 27 28129 
 
 1020 
 
 Jldj 
 
 Aog. 
 
 Sept 
 Oil 
 Rot. 
 
 Dee. 
 
 12 
 
 25 26 
 
 23 24 
 30 
 1 
 
 8 
 
 1:1 
 
 111-20 
 
 W T 
 
 9 10 it 
 
 IB 17118 
 
 12 
 19 
 
 2ft [20 
 
 15 
 
 2223 
 21130 
 
 S 6 
 12 13 
 
 19 J 20 21 
 
 26 27 
 
 1 4 
 
 10 11 
 
 17 18 
 24i2ft 
 3l|... 
 
 28 
 
 2 
 
 10 
 I6|17 
 
 23 
 
 21 
 
 3031 
 
 6 
 
 12 13 
 
 Id 1 2 
 2627^8 
 
 16 1» 
 25 28 
 
 I 
 
 IS 
 22 23 
 
 28 St 
 
 20 21 
 
 The years for which this Calendar stands 
 are found in the lode" 
 
 10 
 
 Jai. 
 
 Feb. 
 
 lar 
 
 April 
 
 Bay 
 
 Jmi 1 
 
 2021 
 
 27 28 
 
 3 
 
 17 
 
 23 24 
 
 30 31 
 
 1011 
 
 28 26 
 
 10 
 23 
 29 30 
 
 2 3 
 
 9 1011 
 
 15)16 17 It! 
 23 24 25 
 SO 
 
 28 29 
 
 6 
 13 
 
 19] 20 
 28 
 
 '26 
 
 7 
 14 
 21 
 
 27 28 
 
 10,11 
 
 22 23 24 
 
 29 30 
 
 B 
 12 
 
 19 20 
 
 27 28 
 
 July 
 
 Sept 
 
 Oct 
 
 7 
 
 14 
 21 
 28129 
 
 Hot. 
 
 Dee. 
 
 oiou 
 
 30. 
 
 3 
 10 
 17 
 23)24 
 
 3 
 10 
 17 
 23)24 
 30 
 1 
 8 
 15 
 
 14 15 16 17 
 " 24 
 31 
 
 22 23 
 29 30 
 
 8 4 
 6I10U 
 
 16 
 
 22123 24 
 
 29 30 81 
 
 4 
 II 
 
 18 
 25 26 
 
 7 
 14 
 
 21 
 
 28 
 
 3 
 
 12 
 
 18|19 
 
 2ft 
 
 26 27 
 
 The years for which this Calendar stands 
 are found in the Index. 
 
 [320]
 
 REBATE AND COMPOUND INTEREST TABLES. 
 
 11 
 
 12 
 
 
 3 
 
 m|t 
 
 w 
 
 T 
 
 F 
 
 S 
 
 
 S 
 
 M 
 
 T 
 
 w 
 
 1 
 
 f|s| 
 
 
 lit. 
 
 
 , 
 
 1 
 
 2 
 
 3 
 
 4 
 
 Jdj 
 
 
 
 1 
 
 2 
 
 3 4 
 
 
 6 
 
 8 7 
 
 8 
 
 9:10 11 
 
 5 6 
 
 7 
 
 8 
 
 9 
 
 ion 
 
 
 
 12 13 14 
 
 15 10 17 18 
 
 
 12 13 11 
 
 15 
 
 If 17 1- 
 
 
 
 19.20 2122 2324 25, 
 
 
 19.2 21 
 
 22 2324 
 
 B 
 
 
 
 20 27 28 S 30 31... 
 
 
 20,27128 29.30,31 
 
 ... 
 
 
 Feb. 
 
 
 
 
 I 
 
 Aug. 
 
 III 
 
 1 
 81 
 
 
 i * 
 
 4 
 
 8 6 7 
 
 2 3 4 5 6 7 
 
 
 
 vm 
 
 11 
 
 12 1314 15 
 
 
 910'll 12 13114 15 
 
 
 
 IS 1 17 
 
 18 
 
 lil 20 21 22 
 
 
 16 17 isw.-xzvn 
 
 
 
 23 24 
 
 a 
 
 26,27 2s 29 
 
 
 23 24;25|2t>!'27|28,29 
 
 
 fa 
 
 
 
 
 
 6 7 
 
 fat 
 
 30 31 
 
 1 1 1 1 
 
 
 1 
 
 2 
 
 '3 
 
 4 8 
 
 1 2 Si 4 6 
 
 
 
 1 
 
 B 
 
 10 111121 isim 
 
 
 6 71 81 
 
 
 
 15 
 
 18 
 
 
 
 13 14 15,16 17118; IS) 
 
 
 
 22 23 24 25 28|27|23 
 
 
 20 21 22 23 24 25,20 
 
 
 
 29 30,31 
 
 ............ 
 
 
 27128,29,301... 
 
 
 
 April ... 
 
 1 21 3 4 
 
 fa 
 
 ............ 1 
 
 2 8 
 
 
 
 5! 6 7 
 
 81 0-10 11 
 
 
 9; 10 
 
 
 
 12 13114 15 16 1713 
 
 
 11 12 13 14,15 16 
 
 17 
 
 
 
 .' 23 24 25 
 
 
 18 19 20 21 22 23 
 
 21 
 
 
 
 28 27 28129,30 
 
 
 
 
 25120 27)28 29 30 
 
 31 
 
 
 »»J 
 
 "3" 4"«'ii|"7 
 
 1 
 8 
 
 2 
 I 
 
 Hot. 
 
 
 '7 
 
 
 1 2 3 4 5| 6 
 8 Vio'll 12 13 
 
 
 
 10 11 12 13 14 15 16 
 
 14 
 
 
 
 17 16 19 20 21,22:23 
 
 
 15 16!17|18ll920 21 
 
 
 
 24 2Sl28l27.2B.29.30 
 
 
 22i23|24!25i2B;27 
 
 _s 
 
 
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 31 
 
 
 fa 
 
 29i3C 
 
 
 
 
 1 2 3 4 6 6 
 
 1 2 3| 4 
 
 5 
 
 
 
 7| e] 
 
 
 6 1 1 81 
 
 12 
 
 
 
 14 IS'18117 IS 10 20 
 
 21 22123 24,2S,26|27 
 
 
 13ll4iis|l6 17 18 19 
 20 , 21|2223|24i25j26 
 
 
 
 28a|30|._|._|._|... 
 
 27|28 29 30|31 _. ... 
 
 
 The yean for which 
 are found li 
 
 this Calendar stands 
 
 
 ltbe Index. 
 
 
 
 
 S 
 
 1 
 
 T W 
 
 t|f 
 
 s 1 
 
 
 b|m 
 
 T W 
 
 t|f 
 
 S 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 2 
 
 3 
 
 Jul? 
 
 ...... 
 
 
 
 12 
 
 3 
 
 
 
 
 4! 6 
 
 6 7 
 
 8| 9J0 
 
 41 6 
 
 6 7 
 
 8 V 
 
 10 
 
 
 
 
 11 12 13 14 
 
 15 16 17 
 
 
 1112 
 
 13 1) 15 If 
 
 17 
 
 
 
 
 18(19 20,21 22 23 24 
 
 
 18 .19(20,21 122 
 
 23 
 
 24 
 
 
 
 Feb. 
 
 25,28,27 
 
 B 
 
 29 30 
 
 n 
 
 Aug 
 
 25 
 
 26 27 
 
 28 29 
 
 30 
 
 31 
 
 
 
 1 2 8 
 
 4 
 
 « 
 
 6 
 
 7 
 
 1 
 
 2 3 
 
 4 ii 
 
 6 
 
 7 
 
 
 
 
 3 9 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 B 
 
 it 10 
 
 11 12 
 
 13 
 
 14 
 
 
 
 
 15I16-17 18 
 
 19 
 
 20 21 
 
 
 If, 
 
 16 17 
 
 18 19 
 
 20 
 
 21 
 
 
 
 
 2212312412S 
 
 26,27128 
 
 
 22 
 
 23 24 
 
 25 26 27 
 
 28 
 
 
 
 fa. 
 
 ffl 
 
 
 
 
 Sept 
 
 29:30131 
 
 
 
 
 
 
 1 
 
 2 3 
 
 4 8 6 
 
 ......... 12 3 4 
 
 
 
 
 7 
 
 8 
 
 9 10 
 
 11 12113 
 
 
 5 6 7 8 9 10 11 
 
 
 
 
 14 
 
 15 16 
 
 17 
 
 18 19:39 
 
 
 12 13|l4!is|l6]l7 
 
 18 
 
 
 
 
 21 
 
 22 23 
 
 24 
 
 25 26127 
 
 
 19 
 
 20 21 22 23 24 
 
 28 
 
 
 
 
 n 
 
 7»m 
 
 31 
 
 
 
 
 28 
 
 ■27 28 
 
 29 30 
 
 
 
 
 
 April 
 
 
 
 
 
 2 3 
 
 Oct. 
 
 
 
 
 
 1 
 
 V 
 
 
 
 4 
 
 5 fi 
 
 7 
 
 8 
 
 S 10 
 
 3 
 
 4 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 
 
 
 11 
 
 12 13 
 
 14 
 
 15 If 17 
 
 
 10 
 
 11 12 
 
 U 
 
 14 
 
 IS 
 
 16 
 
 
 
 
 it 
 
 Id 20 
 
 21 
 
 22 23 24 
 
 
 17 
 
 18 19 
 
 20 
 
 21 
 
 22 
 
 sea 
 
 
 
 
 2d 
 
 20 27 
 
 28 
 
 29 311 
 
 
 
 24 
 
 26 a 
 
 27 
 
 '28 
 
 n 
 
 30 
 
 
 
 fa 
 
 
 
 
 
 
 1 
 8 
 
 No?. 
 
 81 
 
 
 
 
 
 "f 
 
 
 
 '2 S 
 
 4 
 
 .'. 
 
 fl 7 
 
 1 
 
 ■> 
 
 ! 
 
 4 
 
 5 
 
 
 
 
 9,10 
 
 11 1? 
 
 I3'l4 
 
 IS 
 
 
 7 
 
 8 
 
 [ 
 
 II 
 
 11 
 
 12 13 
 
 
 
 
 lfi' 17 
 
 18 19 
 
 •3)21 
 
 '22 
 
 
 14 
 
 16 
 
 16 
 
 W 
 
 is 
 
 19,20 
 
 
 
 
 73 24 
 
 25 
 
 M 
 
 27 28 
 
 2B 
 
 
 21 
 
 22 
 
 23 '24 
 
 25 
 
 26 27 
 
 
 
 Jot 
 
 sons 
 
 "i 
 
 "2 
 
 ■5-4 
 
 1 
 
 fa 
 
 28 
 
 a 
 
 30 ... 
 ... 1 
 
 2 
 
 3 4 
 
 
 
 
 fi 7 
 
 s 
 
 9 
 
 10 
 
 11 
 
 12 
 
 
 5 
 
 i 
 
 7 8 
 
 1 
 
 10 11 
 
 
 
 
 1314 
 
 1.1 
 
 if 
 
 17 
 
 is 
 
 19 
 
 
 12 
 
 ir 
 
 14 IS If 
 
 17,18 
 
 
 
 
 2021I22I23 
 
 24 
 
 25 
 
 28 
 
 
 lit 
 
 2i 
 
 21 22123 24,25 
 
 
 
 
 27 28'29 30 
 
 
 
 
 
 2t> 
 
 27 
 
 28 29 30 31 
 
 J 9 
 
 
 
 The years for which this Calendar 8tan 
 
 
 
 are found In the Index. 
 
 13 
 
 
 8 
 
 h|t 
 
 W 
 
 T 
 
 F 
 
 si 
 
 
 8 
 
 M 
 
 T 
 
 w 
 
 T 
 
 F 
 
 8 
 
 
 fa 
 
 
 | 
 
 
 
 i 
 
 i 
 
 Jul; 
 
 
 
 
 
 
 1 
 
 7 
 
 
 3 
 
 4 8 
 
 I 
 
 7 
 
 8 
 
 9 
 
 * 
 
 4 
 
 .'. 
 
 
 
 7 
 
 I 
 
 9 
 
 
 
 10 11 1211 
 
 14 IS 16 
 
 
 10*11 12 13 
 
 14 
 
 li 
 
 10 
 
 
 
 17 18 19'20 
 
 21:22 23 
 
 
 17|l8ll920 
 
 21 
 
 22 
 
 a 
 
 
 
 ^4J2S:26;27|28,2» 
 
 1 
 
 
 24 25 28127 
 
 ■28 
 
 a 
 
 n 
 
 
 fa 
 
 ai ... 
 i 
 
 "*"»' 
 
 ..... 
 4 8 
 
 Ang. 
 
 31 
 
 1 
 
 "2 "3 
 
 "4 
 
 "i 
 
 "a 
 
 
 
 7 8( 
 
 9M0 
 
 n ! i2 
 
 13 
 
 7 
 
 8 
 
 9 10 11 12 
 
 a 
 
 
 
 14 IS 14 17 
 
 I8'l9 
 
 20 
 
 
 14 15 16117 18 19 
 
 20 
 
 
 
 21 22 23 24 
 
 25 28 
 
 27 
 
 
 21 2223 24 
 
 24,26 
 
 27 
 
 
 Ir. 
 
 Th 
 
 2 
 
 3 
 
 __ 
 4 B 
 
 Stpt 
 
 28 
 
 29 30 
 
 31 
 
 ii 
 
 3 
 
 
 
 6| 7 B 
 
 9 
 
 I" 
 
 11 
 
 12 
 
 4 
 
 8 « 
 
 7 
 
 8 V 
 
 10 
 
 
 
 13 HI'. 
 
 18 
 
 17 
 
 is 
 
 If) 
 
 
 U 
 
 12' 13 
 
 14 
 
 16 16 17 
 
 
 
 2021,22 
 
 23 
 
 M 
 
 a 
 
 a 
 
 
 II 
 
 11.21 
 
 21 
 
 22 23 24 
 
 
 
 27 2* a 
 
 80 
 
 31 
 
 
 
 
 a 
 
 a'27 
 
 2S 
 
 29 
 
 30 
 
 
 
 April 
 
 
 
 
 i 
 
 2 
 
 ()d 
 
 
 ...... 
 
 
 m4 
 
 
 1 
 
 
 31 4 8 
 
 6 
 
 7 
 
 8 
 
 9 
 
 
 \ 
 
 31 4 
 
 8 
 
 « 
 
 7 
 
 8 
 
 
 
 10 11 12 
 
 V. 
 
 14 
 
 IS 
 
 K 
 
 
 1 
 
 n 
 
 12 
 
 13 
 
 11 
 
 16 
 
 
 
 17 1* 1» 
 
 20 
 
 21 
 
 22 
 
 a 
 
 
 u 
 
 i'i 
 
 20 
 
 21 
 
 a 
 
 
 
 2125 2. 
 
 B 
 
 a 
 
 ■ 
 
 M 
 
 
 a 
 
 21 25 
 
 M 
 
 27 
 
 ■ 
 
 ■ 
 
 
 fa 
 
 i 
 
 ...... 
 
 4 
 
 "» 
 
 i 
 
 7 
 
 fa 
 
 ■ 
 
 31 
 
 1 
 
 2 
 
 "3 
 
 "4 
 
 '>', 
 
 
 
 8 
 
 I in 
 
 11 
 
 12 13 14 
 
 
 i 
 
 7 
 
 1 
 
 1 
 
 10 
 
 II 
 
 12 
 
 
 
 ir. 
 
 11 17 
 
 a m 
 
 18 
 
 19 20 21 
 
 
 it 
 
 H 
 
 1.' 
 
 Hi 
 
 n 
 
 in 
 
 
 
 22 
 
 2.', 
 
 26 27 
 
 ■ 
 
 
 ■j 
 
 21 
 
 22 
 
 23 
 
 24 
 
 ■25 
 
 a 
 
 
 
 29 JO 31 
 
 
 A 
 
 
 Dec 
 
 E 
 
 ■28 '21 
 
 ■ 
 
 
 
 
 
 Jfa 
 
 
 1 
 
 tJ » 
 
 4 
 
 
 ...... 
 
 
 1 
 
 2 
 
 a 
 
 
 
 •1 s| 7 
 
 «i »',«> 
 
 11 
 
 
 4 
 
 6 ( 
 
 7 
 
 8 
 
 9 
 
 10 
 
 
 
 12 13 M 
 
 15 1*17 
 
 w 
 
 
 II 12 '13 II V 
 
 >« 
 
 17 
 
 
 
 19X21 
 »6 27;2I» 
 
 K! 
 
 25 
 
 
 18,19,20 21 22 
 2»l2S27j28|» 
 
 31 
 
 M 
 
 n 
 
 
 Tba yean for which 
 
 thla Calendar iiandi 
 
 
 are found 1 
 
 l the Index. 
 
 
 14 
 
 Ju. 
 
 fa 
 
 fa 
 
 April 
 
 May 
 
 June 
 
 8 MIT W T F 8 
 
 1 
 
 29 
 
 8 7 
 1314 
 20 ! 21 
 
 27,28 
 
 3 4 8 
 10 11 12 
 
 13 14 
 
 20 1 21 
 27,28 
 
 3 4 
 10 11 
 
 1:1- 
 
 24,26 
 
 18 19 
 
 2S28 
 
 27,28 29 
 
 2 3 
 
 alia 
 
 a 
 
 7 
 
 14 IS 
 
 2122 
 
 B '27 
 
 July 
 
 Aug 
 
 8 M T W T F 8 
 
 Sept. 
 
 Ou 
 
 Not, 
 
 fa 
 
 2 
 a 
 
 10 
 
 23 
 
 29J30 
 
 "sTai 
 
 12 13 
 1920 
 20 27 
 
 3 4 
 
 10 11 
 17 is 
 24; 26 
 31 
 
 ...I 1 
 7 8 
 14 15 
 21|22 
 28 1 29 
 
 3 4 
 
 10 11 
 
 .. 17)18 
 
 23 24125 
 
 30131 
 
 8 fl 
 12JL1 
 
 19,20 
 26,27 
 
 2 8 
 
 9 10 
 IB 17 
 23124 
 30 
 1 
 8 
 
 7 
 14 
 21 
 
 28;» 
 
 The yean for which thla Calendar stand* 
 are found in the Index. 
 
 [321]
 
 CHAPTER XXII. 
 
 Distribution of Earnings— Permanent Plan. 
 
 Calculation of Dividends and Interest. 
 
 There is a great necessity for the utmost care in the 
 calculation and distribution of dividends. It has hap- 
 pened that associations, on account of carelessness or in- 
 competency in this connection, have become greatly em- 
 barrassed. Great care should be taken in making the 
 calculations for the amounts available for dividends, so 
 that the exact rate be established. Unfortunately, there 
 is lack of uniformity in the calculation of dividends and 
 interest, by the various associations, which makes it im- 
 possible to give specific rules that will apply to all associa- 
 tions. Some of the methods are cumbersome and in some 
 instances inaccurate, causing unnecessary work and vexa- 
 tion, which could be avoided by the substitution of a 
 more scientific standard. The periodical calculation of 
 dividends and interest is the most arduous task in the 
 regular routine of a secretary's work, and it is to his in- 
 terest, as well as the association, that he make use of the 
 most improved methods. 
 
 A large number of dividend and interest tables have 
 been prepared. Several of these tables which are in more 
 general use, and have given good satisfaction, are printed 
 herewith. They will be very valuable for use in those 
 associations following the same plan upon which the 
 tables are based. 
 
 [322]
 
 DISTRIBUTION OF EARNINGS. 
 
 Amplication of Profits. 
 
 Profits should be applied as follows: 
 i. To the payment of expenses. 
 
 2. Such portion as may be determined semi-annually 
 or annually by the board of directors, should be set aside 
 as a reserve fund for the payment of contingent losses in 
 conformity with the law. 
 
 3. Such portions as may be determined semi-annually 
 or annually by the board of directors shall be credited to 
 the account of the members as a dividend, according to 
 their average investment. 
 
 4. The residue may be placed in an undivided profit 
 fund in conformity with the law. 
 
 PERMANENT PLAN— SYSTEM I. 
 The following tables and explanation are furnished by 
 Mr. W. L. Davis and verified by Mr. Chas. H. Stewart. 
 
 EXPLANATION. 
 
 Example of the First Semi-Annual Dividend: A has one share, 
 $1.00 weekly dues. He has paid for six months, or twenty-six 
 weeks. The dividend declared is eight per cent (semi-annual). 
 What is A's portion ? 
 
 Turn to the 8 per cent tables (page 330). Opposite 26, the num- 
 ber of weeks A has paid $1.00, you find $1.08, which is the amount 
 of $26.00 at 8 per cent for twenty-six weeks upon the usual compu- 
 tation of averages, or, in other words, the proportion of dividend 
 declared which is due A. 
 
 Example of the second and all subsequent dividends: B has 
 three shares (of $1.00 per share dues). He has paid $402.00. The 
 dividend declared is five per cent (semi-annual). What is B's 
 portion? 
 
 Subtract from $402.00, the amount he has paid since the last 
 dividend, $3.00 per night for twenty-six weeks, or $78.00. Find 5 
 per cent of the difference, $324.00; which is $16.00, or dividend upon 
 $32-1.00. Now turn to the five per cent tables (page 327). Opposite 
 26, the number of weeks B has paid $3.00 since the last settlement, 
 you find $2,025 in the three-share column, which is the amount of 
 dividend on $78.00; now add $2,025 to $16.20. The result, $18,225, 
 is the amount of dividend due B on $-102.00. 
 
 [328]
 
 rilAPTKR XXII. 
 
 Shares, $500. — Dues, $1.00 per week. 
 
 TWO PER CENT TABLES. 
 
 No. 
 
 Onk 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shares 
 
 Shares 
 
 Sharks 
 
 Sharks 
 
 1 
 O 
 
 
 
 
 
 .012 
 
 3 
 
 
 .010 
 
 .013 
 
 .020 
 
 .023 
 
 4 
 
 
 .015 
 
 .023 
 
 .030 
 
 .040 
 
 
 
 .011 
 
 .023 
 
 .035 
 
 .046 
 
 .060 
 
 6 
 
 .016 
 
 .032 
 
 .048 
 
 .065 
 
 .081 
 
 7 
 
 .021 
 
 .043 
 
 .065 
 
 .086 
 
 .110 
 
 8 
 
 .027 
 
 .055 
 
 .083 
 
 .110 
 
 .140 
 
 9 
 
 .034 
 
 .069 
 
 .104 
 
 .138 
 
 .173 
 
 10 
 
 .042 
 
 .084 
 
 .128 
 
 .169 
 
 .212 
 
 11 
 
 .050 
 
 .101 
 
 .148 
 
 .203 
 
 .254 
 
 12 
 
 .060 
 
 .120 
 
 .180 
 
 .240 
 
 .300 
 
 13 
 
 .070 
 
 .140 
 
 .210 
 
 .280 
 
 .350 
 
 14 
 
 .080 
 
 .161 
 
 .242 
 
 .323 
 
 .404 
 
 15 
 
 .092 
 
 .185 
 
 .277 
 
 .370 
 
 .462 
 
 16 
 
 .104 
 
 .209 
 
 .314 
 
 .420 
 
 .523 
 
 17 
 
 .117 
 
 .235 
 
 .353 
 
 .470 
 
 .590 
 
 18 
 
 .131 
 
 .263 
 
 .395 
 
 .526 
 
 .660 
 
 19 
 
 .146 
 
 .292 
 
 .438 
 
 .585 
 
 .731 
 
 20 
 
 .161 
 
 .323 
 
 .485 
 
 .646 
 
 .810 
 
 21 
 
 .177 
 
 .355 
 
 .533 
 
 .710 
 
 .890 
 
 22 
 
 .194 
 
 .390 
 
 .584 
 
 .780 
 
 .973 
 
 23 
 
 .212 
 
 .424 
 
 .636 
 
 .850 
 
 1.061 
 
 24 
 
 .230 
 
 .461 
 
 .692 
 
 .923 
 
 1.154 
 
 25 
 
 .250 
 
 .500 
 
 . 750 
 
 1.000 
 
 1.250 
 
 26 
 
 .270 
 
 .540 
 
 .810 
 
 1.080 
 
 1.350 
 
 1324]
 
 DISTRIBUTION OF EARNINGS. 
 
 Shares, $500. — Dues, $1.00 per week. 
 
 THREE PER CENT TABLES. 
 
 No. 
 Weeks 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 lfi 
 
 17 
 
 18 
 
 1<> 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 2<i 
 
 Onk 
 Shark 
 
 Two 
 Shakes 
 
 Three 
 
 .Shares 
 
 
 .014 
 
 .011 
 
 .023 
 
 .017 
 
 .035 
 
 .024 
 
 .048 
 
 .032 
 
 .065 
 
 .041 
 
 .083 
 
 .051 
 
 .104 
 
 .063 
 
 .127 
 
 .076 
 
 .152 
 
 .090 
 
 .180 
 
 .105 
 
 .210 
 
 .121 
 
 .242 
 
 .138 
 
 .277 
 
 .157 
 
 .314 
 
 .176 
 
 .353 
 
 .197 
 
 .395 
 
 .219 
 
 .438 
 
 .242 
 
 .485 
 
 .266 
 
 .533 
 
 .292 
 
 .584 
 
 .818 
 
 .636 
 
 .345 
 
 .692 
 
 .375 
 
 .750 
 
 .410 
 
 .810 
 
 .011 
 .020 
 .034 
 .052 
 .073 
 .097 
 .124 
 .155 
 .192 
 .222 
 .270 
 .315 
 .364 
 .415 
 .470 
 .529 
 .592 
 .658 
 .727 
 . 799 
 .K75 
 .955 
 1.040 
 1.125 
 1.215 
 
 Four 
 Shakes 
 
 Five 
 Shakes 
 
 .014 
 
 .020 
 
 .027 
 
 .034 
 
 .045 
 
 .057 
 
 .070 
 
 .087 
 
 .097 
 
 .121 
 
 .130 
 
 .162 
 
 .165 
 
 .207 
 
 .207 
 
 .259 
 
 .254 
 
 .318 
 
 .305 
 
 .381 
 
 .360 
 
 .450 
 
 .420 
 
 .525 
 
 .485 
 
 .606 
 
 .554 
 
 .693 
 
 .627 
 
 .784 
 
 .705 
 
 .882 
 
 .790 
 
 .987 
 
 .877 
 
 1.096 
 
 .970 
 
 1.212 
 
 1.065 
 
 1.332 
 
 1.167 
 
 1.459 
 
 1.273 
 
 1.591 
 
 1.385 
 
 1.721 
 
 1.500 
 
 1.875 
 
 1.620 
 
 2.025 
 
 22 
 
 I32.M
 
 CHAPTER XXII. 
 
 Shares, $500. — Dues, $1.00 per week. 
 
 FOUR PER CENT TABLES. 
 
 No. 
 Weeks 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 ID 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 ONE 
 
 Shake 
 
 .015 
 .023 
 .032 
 .043 
 .055 
 .069 
 .085 
 .101 
 .120 
 . 122 
 .161 
 .185 
 .209 
 .235 
 .263 
 .292 
 .323 
 .355 
 .389 
 .424 
 .460 
 .500 
 .540 
 
 Two 
 
 Threw 
 
 Four 
 
 SHARES 
 
 Sharks 
 
 Shares 
 
 .010 
 
 .014 
 
 .020 
 
 .018 
 
 .027 
 
 .037 
 
 .031 
 
 .045 
 
 .061 
 
 .046 
 
 .069 
 
 .093 
 
 .065 
 
 .097 
 
 .130 
 
 .086 
 
 .129 
 
 .173 
 
 .110 
 
 .165 
 
 .221 
 
 .140 
 
 .207 
 
 .277 
 
 .169 
 
 .255 
 
 .340 
 
 .203 
 
 .305 
 
 .406 
 
 .240 
 
 .360 
 
 .480 
 
 .280 
 
 .420 
 
 .560 
 
 .323 
 
 .485 
 
 .646 
 
 .370 
 
 .554 
 
 .740 
 
 .420 
 
 .627 
 
 .837 
 
 .470 
 
 .705 
 
 .940 
 
 .526 
 
 .790 
 
 1.053 
 
 .585 
 
 .877 
 
 1.170 
 
 .646 
 
 .970 
 
 1.293 
 
 .710 
 
 1.065 
 
 1.421 
 
 .7.-0 
 
 1.167 
 
 1.557 
 
 .850 
 
 1.273 
 
 1.697 
 
 .923 
 
 1.384 
 
 1.846 
 
 1.000 
 
 1.500 
 
 2.000 
 
 1.080 
 
 1.620 
 
 2.160 
 
 Five 
 
 Shakes 
 
 .024 
 
 .046 
 
 .076 
 
 .116 
 
 .162 
 
 .216 
 
 .276 
 
 .346 
 
 .424 
 
 .510 
 
 .600 
 
 .700 
 
 .810 
 
 .924 
 
 1.046 
 
 1.176 
 
 1.316 
 
 1.462 
 
 1.616 
 
 1.776 
 
 1.946 
 
 2.122 
 
 2.310 
 
 2.500 
 
 2.700 
 
 [326]
 
 DISTRIBUTION OF EARNINGS. 
 
 Shares, $500.— Dues, $1.00 per week. 
 
 FIVE PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shares 
 
 Shares 
 
 Sharks 
 
 Shares 
 
 1 
 
 
 
 
 
 .010 
 
 
 
 .012 
 
 .020 
 
 .024 
 
 .030 
 
 % 
 
 .011 
 
 .023 
 
 .034 
 
 .046 
 
 .057 
 
 4 
 
 .020 
 
 .039 
 
 .057 
 
 .076 
 
 .095 
 
 5 
 
 .029 
 
 .058 
 
 .087 
 
 .116 
 
 .145 
 
 G 
 
 .040 
 
 .081 
 
 .121 
 
 .162 
 
 .202 
 
 7 
 
 .054 
 
 .108 
 
 .162 
 
 .215 
 
 .270 
 
 8 
 
 .069 
 
 .140 
 
 .207 
 
 .276 
 
 .345 
 
 9 
 
 .086 
 
 .173 
 
 .260 
 
 .346 
 
 .432 
 
 10 
 
 .106 
 
 .212 
 
 .320 
 
 .424 
 
 .530 
 
 11 
 
 .127 
 
 .254 
 
 .381 
 
 .510 
 
 .635 
 
 12 
 
 .150 
 
 .300 
 
 .450 
 
 .600 
 
 .750 
 
 13 
 
 .175 
 
 .350 
 
 .525 
 
 .700 
 
 .875 
 
 14 
 
 .202 
 
 .404 
 
 .606 
 
 .810 
 
 1.010 
 
 15 
 
 .231 
 
 .462 
 
 .693 
 
 .924 
 
 1.155 
 
 16 
 
 .261 
 
 .523 
 
 .784 
 
 1.046 
 
 1.307 
 
 17 
 
 .294 
 
 .590 
 
 .882 
 
 1.176 
 
 1.470 
 
 18 
 
 .329 
 
 .660 
 
 .987 
 
 1.316 
 
 1.645 
 
 19 
 
 .365 
 
 .731 
 
 1.096 
 
 1.462 
 
 1.827 
 
 20 
 
 .404 
 
 .810 
 
 1.212 
 
 1.616 
 
 2.020 
 
 21 
 
 .444 
 
 .K90 
 
 1.332 
 
 1.776 
 
 2.220 
 
 22 
 
 .486 
 
 .973 
 
 1.460 
 
 1.946 
 
 2.432 
 
 23 
 
 .530 
 
 1.061 
 
 1.591 
 
 2.122 
 
 2.652 
 
 24 
 
 .577 
 
 1.154 
 
 1.731 
 
 2.310 
 
 2.885 
 
 25 
 
 .625 
 
 t.250 
 
 1.875 
 
 2.500 
 
 3.125 
 
 26 
 
 .675 
 
 1.350 
 
 2.025 
 
 2.700 
 
 3.375 
 
 
 
 
 
 
 
 1327)
 
 CHAPTER XXII. 
 
 Shares, $500. — Dues, $1.00 per week. 
 
 SIX PER CENT TABLES. 
 
 No. 
 
 Onk 
 
 Two 
 
 Thrkk 
 
 Four 
 
 Five 
 
 Weeks 
 
 Shark 
 
 Sharks 
 
 SHARE8 
 
 Sharks 
 
 Shares 
 
 1 
 
 
 
 
 
 .012 
 
 2 
 
 
 .014 
 
 .021 
 
 .030 
 
 .036 
 
 3 
 
 .014 
 
 .028 
 
 .041 
 
 .055 
 
 .070 
 
 4 
 
 .023 
 
 .047 
 
 .068 
 
 .091 
 
 .114 
 
 5 
 
 .035 
 
 .065 
 
 .104 
 
 .140 
 
 .174 
 
 6 
 
 .048 
 
 .097 
 
 .146 
 
 .194 
 
 .243 
 
 7 
 
 .065 
 
 .129 
 
 .194 
 
 .260 
 
 .324 
 
 8 
 
 .083 
 
 .165 
 
 .248 
 
 .331 
 
 .414 
 
 9 
 
 .104 
 
 .207 
 
 .311 
 
 .415 
 
 .520 
 
 10 
 
 .127 
 
 .254 
 
 .383 
 
 .510 
 
 .636 
 
 11 
 
 .152 
 
 .305 
 
 .457 
 
 .610 
 
 .762 
 
 12 
 
 .180 
 
 .360 
 
 .540 
 
 .720 
 
 .900 
 
 13 
 
 .210 
 
 .420 
 
 .630 
 
 .840 
 
 1.050 
 
 14 
 
 .242 
 
 .485 
 
 .727 
 
 .970 
 
 1.212 
 
 15 
 
 .277 
 
 .554 
 
 .830 
 
 1.110 
 
 1.386 
 
 16 
 
 .314 
 
 .627 
 
 .941 
 
 1.255 
 
 1.570 
 
 17 
 
 .353 
 
 .705 
 
 1.058 
 
 1.411 
 
 1.764 
 
 18 
 
 .395 
 
 .789 
 
 1.184 
 
 1.580 
 
 1.974 
 
 19 
 
 .438 
 
 .877 
 
 1.316 
 
 1.754 
 
 2.193 
 
 20 
 
 .485 
 
 .970 
 
 1.454 
 
 1.940 
 
 2.424 
 
 21 
 
 .533 
 
 1.065 
 
 1.598 
 
 2.131 
 
 2.664 
 
 22 
 
 .584 
 
 1.167 
 
 1.800 
 
 2.335 
 
 2.920 
 
 23 
 
 .636 
 
 1.273 
 
 1.910 
 
 2.546 
 
 3.183 
 
 24 
 
 .692 
 
 1.385 
 
 2.077 
 
 2.770 
 
 3.462 
 
 25 
 
 .750 
 
 1.500 
 
 2.250 
 
 3.000 
 
 3.750 
 
 26 
 
 .810 
 
 1.620 
 
 2.430 
 
 3.240 
 
 4.050 
 
 [3281
 
 DISTRIBUTION OF EARNINGS. 
 
 Shares, $500.— Dues, $1.00 per week. 
 
 SEVEN PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shakes 
 
 Shares 
 
 Shares 
 
 Shakes 
 
 1 
 
 
 
 .010 
 
 .011 
 
 .014 
 
 2 
 
 
 .017 
 
 .025 
 
 .033 
 
 .042 
 
 3 
 
 .016 
 
 .032 
 
 .048 
 
 .064 
 
 .080 
 
 4 
 
 .026 
 
 .054 
 
 .080 
 
 .106 
 
 .133 
 
 5 
 
 .040 
 
 .081 
 
 .122 
 
 .162 
 
 .203 
 
 6 
 
 .056 
 
 .113 
 
 .170 
 
 .227 
 
 .283 
 
 7 
 
 .075 
 
 .151 
 
 .227 
 
 .302 
 
 .380 
 
 8 
 
 .096 
 
 .193 
 
 .289 
 
 .386 
 
 .483 
 
 9 
 
 .121 
 
 .242 
 
 .363 
 
 .484 
 
 .605 
 
 10 
 
 .148 
 
 .297 
 
 .447 
 
 .593 
 
 .742 
 
 11 
 
 .178 
 
 .355 
 
 .533 
 
 .711 
 
 .890 
 
 12 
 
 .210 
 
 .420 
 
 .630 
 
 .840 
 
 1.050 
 
 13 
 
 .245 
 
 .490 
 
 .735 
 
 .960 
 
 1.225 
 
 14 
 
 .2*3 
 
 .565 
 
 .850 
 
 1.151 
 
 1.414 
 
 15 
 
 .323 
 
 .647 
 
 .970 
 
 1.293 
 
 1.617 
 
 16 
 
 .366 
 
 .732 
 
 1.098 
 
 1.464 
 
 1.830 
 
 1? 
 
 .411 
 
 .823 
 
 1.235 
 
 1.646 
 
 2.060 
 
 18 
 
 .460 
 
 .921 
 
 1.381 
 
 1.842 
 
 2.303 
 
 VJ 
 
 .512 
 
 1.023 
 
 1.535 
 
 2.047 
 
 2.560 
 
 20 
 
 .565 
 
 1.131 
 
 1.697 
 
 2.262 
 
 2.830 
 
 21 
 
 .621 
 
 1 . 243 
 
 1.864 
 
 2.486 
 
 3.110 
 
 22 
 
 .681 
 
 1.362 
 
 2.043 
 
 2.724 
 
 3.405 
 
 83 
 
 .736 
 
 1.485 
 
 2.230 
 
 2.971 
 
 3.713 
 
 24 
 
 .808 
 
 1.615 
 
 2.423 
 
 3.231 
 
 4.040 
 
 25 
 
 .875 
 
 1.750 
 
 2.625 
 
 3.500 
 
 4.375 
 
 26 
 
 .945 
 
 l.VJO 
 
 2.835 
 
 3.780 
 
 4.725 
 
 [ 320 |
 
 CHAPTER XXII. 
 
 Shares, $500.— Dues, $1.00 per week. 
 
 EIGHT PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 SHARKS 
 
 Shares 
 
 Shares 
 
 Sharks 
 
 1 
 
 
 
 .010 
 
 .013 
 
 .016 
 
 2 
 
 
 .020 
 
 .029 
 
 .040 
 
 .050 
 
 3 
 
 .018 
 
 .037 
 
 .055 
 
 .073 
 
 .092 
 
 4 
 
 .030 
 
 .062 
 
 .091 
 
 .121 
 
 .152 
 
 5 
 
 .046 
 
 .093 
 
 .140 
 
 .185 
 
 .232 
 
 6 
 
 .065 
 
 .129 
 
 .194 
 
 .260 
 
 .324 
 
 7 
 
 .086 
 
 .173 
 
 .260 
 
 .345 
 
 .432 
 
 8 
 
 .110 
 
 .221 
 
 .331 
 
 .441 
 
 .552 
 
 9 
 
 .138 
 
 .277 
 
 .415 
 
 .553 
 
 .692 
 
 10 
 
 .169 
 
 .340 
 
 .511 
 
 .680 
 
 .850 
 
 11 
 
 .203 
 
 .406 
 
 .610 
 
 .813 
 
 1.016 
 
 12 
 
 .240 
 
 .480 
 
 .720 
 
 .960 
 
 1.200 
 
 13 
 
 .280 
 
 .5b0 
 
 .840 
 
 1.120 
 
 1.400 
 
 14 
 
 .323 
 
 .646 
 
 .970 
 
 1.293 
 
 1.616 
 
 15 
 
 .369 
 
 .740 
 
 1.108 
 
 1.478 
 
 1.850 
 
 16 
 
 .418 
 
 .837 
 
 1.255 
 
 1.673 
 
 2.092 
 
 17 
 
 .470 
 
 .941 
 
 1.411 
 
 1.881 
 
 2.352 
 
 18 
 
 .526 
 
 1.053 
 
 1.580 
 
 2.105 
 
 2.632 
 
 19 
 
 .585 
 
 1.170 
 
 1.754 
 
 2.340 
 
 2.924 
 
 20 
 
 .646 
 
 1.293 
 
 1.940 
 
 2.585 
 
 3.232 
 
 21 
 
 .710 
 
 1.421 
 
 2.131 
 
 2.841 
 
 3.552 
 
 22 
 
 .778 
 
 1.557 
 
 2.335 
 
 3.113 
 
 3.892 
 
 23 
 
 .856 
 
 1.697 
 
 2.546 
 
 3.395 
 
 4.244 
 
 24 
 
 .923 
 
 1.846 
 
 2.770 
 
 3.693 
 
 4.616 
 
 25 
 
 1.000 
 
 2.000 
 
 3.000 
 
 4.000 
 
 5.000 
 
 26 
 
 1.080 
 
 2.160 
 
 3.240 
 
 4.320 
 
 5.400 
 
 [3301
 
 DISTRIBUTION OF EARNINGS. 
 
 Shares, $500. — Dues, $1.00 per week. 
 
 NINE PER CENT TABLES. 
 
 No. 
 
 ONE 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Shabe 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Shares 
 
 1 
 
 
 
 .010 
 
 .014 
 
 .020 
 
 2 
 
 .010 
 
 .021 
 
 .032 
 
 .043 
 
 .054 
 
 3 
 
 .020 
 
 .041 
 
 .062 
 
 .083 
 
 .103 
 
 4 
 
 .034 
 
 .070 
 
 .102 
 
 .137 
 
 .171 
 
 5 
 
 .052 
 
 .104 
 
 .156 
 
 .209 
 
 .261 
 
 6 
 
 .073 
 
 .146 
 
 .218 
 
 .291 
 
 .364 
 
 7 
 
 .097 
 
 .194 
 
 .291 
 
 .389 
 
 .486 
 
 8 
 
 .124 
 
 .248 
 
 .372 
 
 .497 
 
 .621 
 
 9 
 
 .155 
 
 .311 
 
 .467 
 
 .623 
 
 .780 
 
 10 
 
 .191 
 
 .381 
 
 .575 
 
 .763 
 
 .954 
 
 11 
 
 .228 
 
 .457 
 
 .686 
 
 .914 
 
 1.143 
 
 12 
 
 .270 
 
 .540 
 
 .810 
 
 1.080 
 
 1.350 
 
 13 
 
 .315 
 
 .630 
 
 .945 
 
 1.260 
 
 1.575 
 
 14 
 
 .363 
 
 .727 
 
 1.090 
 
 1.454 
 
 1.820 
 
 15 
 
 .416 
 
 .831 
 
 1.247 
 
 1.663 
 
 2.080 
 
 16 
 
 .471 
 
 .941 
 
 1.412 
 
 1.8*3 
 
 2.353 
 
 17 
 
 .529 
 
 1.060 
 
 1.587 
 
 2.117 
 
 2.646 
 
 18 
 
 .592 
 
 1.184 
 
 1.776 
 
 2 . 370 
 
 2.961 
 
 19 
 
 .658 
 
 1.316 
 
 1.973 
 
 2.631 
 
 3.290 
 
 20 
 
 .727 
 
 1.454 
 
 2.181 
 
 2.909 
 
 3.636 
 
 21 
 
 .799 
 
 1.600 
 
 2. 397 
 
 3.197 
 
 3.996 
 
 22 
 
 .876 
 
 1.751 
 
 2.627 
 
 3.503 
 
 4.380 
 
 23 
 
 .955 
 
 1.910 
 
 2..S64 
 
 3.820 
 
 4.770 
 
 24 
 
 1.038 
 
 2.077 
 
 3.116 
 
 4.154 
 
 5.193 
 
 25 
 
 1 . 125 
 
 2.250 
 
 3.375 
 
 4.500 
 
 5.625 
 
 26 
 
 1.215 
 
 2.430 
 
 3.645 
 
 4. SCO 
 
 6.075 
 
 [3311
 
 CHAPTER XXII. 
 
 Shares, $500. — Dues, $1.00 per week. 
 
 TEN PER CENT TABLES. 
 
 No. 
 
 Onk 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 W'EKKS 
 
 Shark 
 
 SHAKES 
 
 Shares 
 
 Shares 
 
 Sharks 
 
 1 
 
 
 .010 
 
 .012 
 
 .016 
 
 .020 
 
 2 
 
 .012 
 
 .024 
 
 .036 
 
 .050 
 
 .060 
 
 3 
 
 .023 
 
 .046 
 
 .070 
 
 .092 
 
 .115 
 
 4 
 
 .040 
 
 .078 
 
 .114 
 
 .152 
 
 .190 
 
 5 
 
 .060 
 
 .116 
 
 .174 
 
 .232 
 
 .290 
 
 6 
 
 .081 
 
 .162 
 
 .243 
 
 .324 
 
 .405 
 
 7 
 
 .108 
 
 .216 
 
 .324 
 
 .432 
 
 .540 
 
 8 
 
 .138 
 
 .276 
 
 .414 
 
 .552 
 
 .690 
 
 9 
 
 .173 
 
 .346 
 
 .520 
 
 .692 
 
 .865 
 
 10 
 
 .212 
 
 .424 
 
 .640 
 
 .850 
 
 1.060 
 
 11 
 
 .254 
 
 .510 
 
 .762 
 
 1.016 
 
 1.270 
 
 12 
 
 .300 
 
 .600 
 
 .900 
 
 1.200 
 
 1.500 
 
 13 
 
 .350 
 
 .700 
 
 1.050 
 
 1.400 
 
 1.750 
 
 14 
 
 .404 
 
 .810 
 
 1.212 
 
 1.616 
 
 2.020 
 
 15 
 
 .462 
 
 .924 
 
 1.386 
 
 1.850 
 
 2.310 
 
 16 
 
 .523 
 
 1.046 
 
 1.569 
 
 2.092 
 
 2.615 
 
 17 
 
 .590 
 
 1.176 
 
 1.764 
 
 2.352 
 
 2.940 
 
 18 
 
 .660 
 
 1.316 
 
 1.974 
 
 2.632 
 
 3.290 
 
 19 
 
 .731 
 
 1.462 
 
 2.193 
 
 2.924 
 
 3.655 
 
 20 
 
 .810 
 
 1.616 
 
 2.424 
 
 3.232 
 
 4.040 
 
 21 
 
 .890 
 
 1.776 
 
 2.664 
 
 3.552 
 
 4.440 
 
 22 
 
 .973 
 
 1.946 
 
 2.919 
 
 3.892 
 
 4.865 
 
 23 
 
 1.061 
 
 2.122 
 
 3.183 
 
 4.244 
 
 5.305 
 
 24 
 
 1.154 
 
 2.308 
 
 3.462 
 
 4.616 
 
 5.770 
 
 25 
 
 1.250 
 
 2.500 
 
 3.750 
 
 5.000 
 
 6.250 
 
 26 
 
 1.350 
 
 2.700 
 
 4.050 
 
 5.400 
 
 6.750 
 
 [332]
 
 DISTRIBUTION OF EARNINGS. 
 
 Shares, $500.— Dues, $1.00 per week. 
 
 ELEVEN PER CENT TABLES. 
 
 No. 
 
 Okk 
 
 Two 
 
 Thrkk 
 
 Four 
 
 Five 
 
 Weeks 
 
 Shark 
 
 Shares 
 
 Sharks 
 
 Sharks 
 
 Shark* 
 
 1 
 
 
 .010 
 
 .013 
 
 .020 
 
 .022 
 
 2 
 
 .013 
 
 .026 
 
 .040 
 
 .053 
 
 .066 
 
 3 
 
 .025 
 
 .050 
 
 .076 
 
 .101 
 
 .126 
 
 4 
 
 .042 
 
 .086 
 
 .125 
 
 .167 
 
 .210 
 
 5 
 
 .064 
 
 .127 
 
 .191 
 
 .255 
 
 .320 
 
 6 
 
 .089 
 
 .178 
 
 .267 
 
 .356 
 
 .445 
 
 7 
 
 .119 
 
 .237 
 
 .356 
 
 .475 
 
 .594 
 
 8 
 
 .152 
 
 .303 
 
 .455 
 
 .607 
 
 .760 
 
 9 
 
 .190 
 
 .380 
 
 .571 
 
 .761 
 
 .951 
 
 10 
 
 .233 
 
 .466 
 
 .703 
 
 .933 
 
 1.166 
 
 11 
 
 .279 
 
 .560 
 
 .840 
 
 1.117 
 
 1.397 
 
 12 
 
 .330 
 
 .660 
 
 .990 
 
 1.320 
 
 1.650 
 
 13 
 
 .385 
 
 .770 
 
 1.155 
 
 1.540 
 
 1.925 
 
 14 
 
 .444 
 
 .890 
 
 1.333 
 
 1.777 
 
 2.222 
 
 15 
 
 .510 
 
 1.016 
 
 1.524 
 
 2.033 
 
 2.641 
 
 16 
 
 .675 
 
 1.150 
 
 1.726 
 
 2.301 
 
 2.876 
 
 17 
 
 .647 
 
 1.293 
 
 1.940 
 
 2.587 
 
 3.234 
 
 18 
 
 .724 
 
 1.447 
 
 2.171 
 
 2.895 
 
 3.620 
 
 19 
 
 .804 
 
 1.610 
 
 2.412 
 
 3.216 
 
 4.020 
 
 20 
 
 .889 
 
 1.777 
 
 2.666 
 
 3.555 
 
 4.444 
 
 21 
 
 .977 
 
 1.953 
 
 2.930 
 
 3.907 
 
 4.884 
 
 22 
 
 1.070 
 
 2.140 
 
 3.211 
 
 4.281 
 
 5.351 
 
 23 
 
 1.167 
 
 2.334 
 
 3.501 
 
 4.670 
 
 5.835 
 
 24 
 
 1.266 
 
 2.540 
 
 3.810 
 
 5.077 
 
 6.347 
 
 25 
 
 1.375 
 
 2.750 
 
 4.125 
 
 5.500 
 
 6.876 
 
 2(> 
 
 1.485 
 
 i 2.970 
 
 4.455 
 
 5.940 
 
 7.426 
 
 
 
 
 
 
 
 1 3:13 1
 
 CHAPTER XXII. 
 
 Shares, $500. — Dues, $1.00 per week. 
 
 TWELVE PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Fooe 
 
 FlVB 
 
 WKEK8 
 
 Shake 
 
 shakes 
 
 KlIAKKS 
 
 SnARES 
 
 Shakes 
 
 1 
 
 
 .010 
 
 .014 
 
 .020 
 
 .024 
 
 
 .014 
 
 .030 
 
 .043 
 
 .057 
 
 .072 
 
 3 
 
 .027 
 
 .055 
 
 .083 
 
 .110 
 
 .140 
 
 4 
 
 .045 
 
 .093 
 
 .137 
 
 .182 
 
 .230 
 
 5 
 
 .070 
 
 .139 
 
 .209 
 
 .278 
 
 .350 
 
 6 
 
 .097 
 
 .194 
 
 .291 
 
 .389 
 
 .486 
 
 7 
 
 .130 
 
 .260 
 
 .389 
 
 .520 
 
 .650 
 
 8 
 
 .165 
 
 .331 
 
 .497 
 
 .662 
 
 .830 
 
 9 
 
 .207 
 
 .415 
 
 .623 
 
 .830 
 
 1.040 
 
 10 
 
 .254 
 
 .510 
 
 .767 
 
 1.017 
 
 1.272 
 
 11 
 
 .305 
 
 .609 
 
 .914 
 
 1.220 
 
 1.524 
 
 12 
 
 .360 
 
 .720 
 
 1.080 
 
 1.440 
 
 1.800 
 
 13 
 
 .420 
 
 .840 
 
 1.260 
 
 1.680 
 
 2.100 
 
 14 
 
 .485 
 
 .970 
 
 1.454 
 
 1.940 
 
 2.424 
 
 15 
 
 .554 
 
 1.110 
 
 1.663 
 
 2.217 
 
 2.772 
 
 16 
 
 .627 
 
 1.255 
 
 1.883 
 
 2.510 
 
 3.140 
 
 17 
 
 .705 
 
 1.411 
 
 2.117 
 
 2.822 
 
 3.530 
 
 18 
 
 .790 
 
 1.580 
 
 2.369 
 
 3.160 
 
 3.950 
 
 19 
 
 .877 
 
 1.756 
 
 2.631 
 
 3.510 
 
 4.386 
 
 20 
 
 .970 
 
 1.940 
 
 2.909 
 
 3.880 
 
 4.850 
 
 21 
 
 1.065 
 
 2.131 
 
 3.197 
 
 4.260 
 
 5.330 
 
 22 
 
 1.167 
 
 2.335 
 
 3.503 
 
 4.670 
 
 5.840 
 
 23 
 
 1.273 
 
 2.546 
 
 3.820 
 
 5.093 
 
 6.366 
 
 24 
 
 1.381 
 
 2.770 
 
 4.154 
 
 5.540 
 
 6.924 
 
 25 
 
 1.500 
 
 3.000 
 
 4.500 
 
 6.000 
 
 7.500 
 
 26 
 
 1.620 
 
 3.240 
 
 4.860 
 
 6.480 
 
 8.100 
 
 [3341
 
 DISTRIBUTION OF EARNINGS. 
 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 TWO PER CENT TABLES. 
 
 No. 
 
 OlfE 
 
 Two 
 
 Thiee 
 
 Fou« 
 
 Five 
 
 Weeks 
 
 Shake 
 
 Shakes 
 
 Shares 
 
 Shakes 
 
 Shakes 
 
 1 
 
 2 
 
 3 
 
 
 
 
 .010 
 
 .010 
 
 4 
 
 
 
 .012 
 
 .015 
 
 .020 
 
 5 
 
 
 .011 
 
 .020 
 
 .023 
 
 .030 
 
 6 
 
 .010 
 
 .016 
 
 .024 
 
 .033 
 
 .040 
 
 7 
 
 .010 
 
 .021 
 
 .033 
 
 .043 
 
 .054 
 
 8 
 
 .013 
 
 .027 
 
 .042 
 
 .055 
 
 .070 
 
 9 
 
 .017 
 
 .034 
 
 .052 
 
 .070 
 
 .086 
 
 10 
 
 .021 
 
 .043 
 
 .064 
 
 .084 
 
 .106 
 
 11 
 
 .026 
 
 .050 
 
 .074 
 
 .101 
 
 .127 
 
 12 
 
 .030 
 
 .060 
 
 .090 
 
 .120 
 
 .150 
 
 13 
 
 .035 
 
 .070 
 
 .105 
 
 .140 
 
 .175 
 
 14 
 
 .041 
 
 .080 
 
 .121 
 
 .161 
 
 .202 
 
 15 
 
 .046 
 
 .093 
 
 .138 
 
 .184 
 
 .232 
 
 16 
 
 .052 
 
 .104 
 
 .157 
 
 .210 
 
 .261 
 
 17 
 
 .053 
 
 .117 
 
 .177 
 
 .235 
 
 .294 
 
 18 
 
 .065 
 
 .131 
 
 .198 
 
 .263 
 
 .329 
 
 19 
 
 .073 
 
 .146 
 
 .220 
 
 .293 
 
 .365 
 
 20 
 
 .080 
 
 .161 
 
 .243 
 
 .323 
 
 .404 
 
 21 
 
 .090 
 
 .177 
 
 .267 
 
 .355 
 
 .444 
 
 22 
 
 .097 
 
 .194 
 
 .292 
 
 .390 
 
 .486 
 
 23 
 
 .101 
 
 .212 
 
 .320 
 
 .424 
 
 .530 
 
 24 
 
 .116 
 
 .230 
 
 .346 
 
 .461 
 
 .577 
 
 25 
 
 .125 
 
 .250 
 
 .375 
 
 .500 
 
 .625 
 
 2(5 
 
 .135 
 
 .270 
 
 .405 
 
 .540 
 
 .675 
 
 [8361
 
 CHAPTER XX i 
 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 THREE PER CENT TABLES. 
 
 No. 
 
 Onk 
 
 Two 
 
 Thkkb 
 
 FoUIl 
 
 Five 
 
 Wkkks 
 
 Shakt: 
 
 Share* 
 
 SHAKES 
 
 Shakes 
 
 SHARKS 
 
 1 
 
 2 
 
 
 
 
 
 .010 
 
 3 
 
 
 
 .010 
 
 .014 
 
 .017 
 
 4 
 
 
 .011 
 
 .017 
 
 .022 
 
 .030 
 
 5 
 
 .010 
 
 .018 
 
 .026 
 
 .034 
 
 .043 
 
 6 
 
 .012 
 
 .024 
 
 .037 
 
 .050 
 
 .060 
 
 7 
 
 .016 
 
 .033 
 
 .050 
 
 .064 
 
 .081 
 
 8 
 
 .020 
 
 .042 
 
 .062 
 
 .082 
 
 .103 
 
 9 
 
 .026 
 
 .052 
 
 .077 
 
 .103 
 
 .130 
 
 10 
 
 .031 
 
 .063 
 
 .095 
 
 .127 
 
 .160 
 
 11 
 
 .040 
 
 .076 
 
 .111 
 
 .152 
 
 .190 
 
 12 
 
 .045 
 
 .090 
 
 .135 
 
 .180 
 
 .225 
 
 13 
 
 .052 
 
 .105 
 
 .157 
 
 .210 
 
 .262 
 
 14 
 
 .060 
 
 .121 
 
 .181 
 
 .243 
 
 .303 
 
 15 
 
 .070 
 
 .138 
 
 .207 
 
 .277 
 
 .346 
 
 16 
 
 .080 
 
 .157 
 
 .235 
 
 .313 
 
 .392 
 
 17 
 
 .090 
 
 .177 
 
 .264 
 
 .352 
 
 .441 
 
 18 
 
 .100 
 
 .200 
 
 .296 
 
 .394 
 
 .493 
 
 19 
 
 .104 
 
 .220 
 
 .330 
 
 .440 
 
 .550 
 
 20 
 
 .121 
 
 .243 
 
 .363 
 
 .484 
 
 .606 
 
 21 
 
 .133 
 
 .267 
 
 .400 
 
 .532 
 
 .666 
 
 22 
 
 .146 
 
 .292 
 
 .437 
 
 .583 
 
 .730 
 
 23 
 
 .160 
 
 .320 
 
 .480 
 
 .636 
 
 .795 
 
 24 
 
 .172 
 
 .346 
 
 .520 
 
 .693 
 
 .860 
 
 25 
 
 .187 
 
 .375 
 
 .562 
 
 .750 
 
 .937 
 
 26 
 
 .205 
 
 .408 
 
 .607 
 
 .810 
 
 1.012 
 
 13361
 
 DISTRIBUTION OF EARNINGS. 
 
 Shares, $250 or $500.— Dues, 50c. per week. 
 
 FOUR PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 WEEKS 
 
 Share 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Share* 
 
 1 
 
 2 
 
 
 
 
 .010 
 
 .012 
 
 3 
 
 
 .010 
 
 .013 
 
 .020 
 
 .023 
 
 4 
 
 
 .015 
 
 .022 
 
 .031 
 
 .040 
 
 5 
 
 .011 
 
 .023 
 
 .034 
 
 .047 
 
 .060 
 
 6 
 
 .016 
 
 .033 
 
 .050 
 
 .064 
 
 .081 
 
 7 
 
 .021 
 
 .043 
 
 .064 
 
 .087 
 
 .110 
 
 8 
 
 .022 
 
 .055 
 
 .082 
 
 .111 
 
 .140 
 
 9 
 
 .034 
 
 .069 
 
 .103 
 
 .140 
 
 .173 
 
 10 
 
 .043 
 
 .084 
 
 .127 
 
 .170 
 
 .212 
 
 11 
 
 .050 
 
 .101 
 
 .153 
 
 .203 
 
 .254 
 
 12 
 
 .060 
 
 .120 
 
 .180 
 
 .240 
 
 .300 
 
 13 
 
 .061 
 
 .140 
 
 .210 
 
 .280 
 
 .350 
 
 14 
 
 .080 
 
 .161 
 
 .243 
 
 .323 
 
 .404 
 
 15 
 
 .093 
 
 .184 
 
 .277 
 
 .370 
 
 .462 
 
 16 
 
 .104 
 
 .209 
 
 .313 
 
 .420 
 
 .523 
 
 17 
 
 .117 
 
 .235 
 
 .352 
 
 .471 
 
 .590 
 
 18 
 
 .131 
 
 .263 
 
 .400 
 
 .526 
 
 .660 
 
 19 
 
 .146 
 
 .293 
 
 .440 
 
 .584 
 
 .732 
 
 20 
 
 .161 
 
 .323 
 
 .484 
 
 .647 
 
 .810 
 
 21 
 
 .177 
 
 .355 
 
 .532 
 
 .711 
 
 .890 
 
 22 
 
 .194 
 
 .390 
 
 .583 
 
 .780 
 
 .973 
 
 23 
 
 .212 
 
 .425 
 
 .636 
 
 .850 
 
 1.061 
 
 24 
 
 .230 
 
 .461 
 
 .693 
 
 .923 
 
 1.154 
 
 25 
 
 .250 
 
 .500 
 
 .750 
 
 1.000 
 
 1.250 
 
 26 
 
 .270 
 
 .540 
 
 .810 
 
 1.080 
 
 1.360 
 
 [:ot|
 
 CHAPTER XXII. 
 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 FIVE PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Shake 
 
 Shakes 
 
 Shares 
 
 Shares 
 
 Shakes 
 
 1 
 
 2 
 
 
 
 .010 
 
 .012 
 
 .015 
 
 3 
 
 
 .011 
 
 .017 
 
 .023 
 
 .030 
 
 4 
 
 .010 
 
 .020 
 
 .030 
 
 .040 
 
 .047 
 
 5 
 
 .OH 
 
 .030 
 
 .043 
 
 .060 
 
 .072 
 
 6 
 
 .020 
 
 .040 
 
 .060 
 
 .081 
 
 .101 
 
 7 
 
 .027 
 
 .054 
 
 .081 
 
 .107 
 
 .140 
 
 8 
 
 .034 
 
 .070 
 
 .103 
 
 .140 
 
 .172 
 
 9 
 
 .043 
 
 .086 
 
 .130 
 
 .173 
 
 .216 
 
 10 
 
 .053 
 
 .106 
 
 .160 
 
 .212 
 
 .265 
 
 11 
 
 .063 
 
 .127 
 
 .190 
 
 .254 
 
 .317 
 
 12 
 
 .070 
 
 .150 
 
 .225 
 
 .300 
 
 .375 
 
 13 
 
 .087 
 
 .170 
 
 .262 
 
 .350 
 
 .437 
 
 U 
 
 .101 
 
 .202 
 
 .303 
 
 .404 
 
 .505 
 
 15 
 
 .115 
 
 .231 
 
 .346 
 
 .462 
 
 • 577 
 
 16 
 
 .130 
 
 .261 
 
 .392 
 
 .523 
 
 .653 
 
 17 
 
 .147 
 
 .294 
 
 .441 
 
 .590 
 
 .735 
 
 18 
 
 .164 
 
 .330 
 
 .493 
 
 .660 
 
 .822 
 
 19 
 
 .182 
 
 .360 
 
 .550 
 
 .731 
 
 .913 
 
 20 
 
 .202 
 
 .404 
 
 .606 
 
 .808 
 
 1.010 
 
 21 
 
 .222 
 
 .444 
 
 .666 
 
 .890 
 
 1.110 
 
 22 
 
 .243 
 
 .486 
 
 .730 
 
 .973 
 
 1.216 
 
 23 
 
 .265 
 
 .530 
 
 .795 
 
 1.061 
 
 1.326 
 
 24 
 
 .290 
 
 .577 
 
 .865 
 
 1.154 
 
 1.442 
 
 25 
 
 .312 
 
 .620 
 
 .932 
 
 1.250 
 
 1.562 
 
 26 
 
 .337 
 
 .670 
 
 1.012 
 
 1.350 
 
 1.687 
 
 [338]
 
 DISTRIBUTION OF EARNINGS. 
 
 Shares, $250 or $500.— Dues, 50c. per week. 
 
 SIX PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Fodr 
 
 FlVB 
 
 Weeks 
 
 Shark 
 
 Shares 
 
 Shares 
 
 Sharks 
 
 Shares 
 
 1 
 
 2 
 
 
 
 .010 
 
 .015 
 
 .020 
 
 3 
 
 
 .014 
 
 .020 
 
 .027 
 
 .034 
 
 4 
 
 .012 
 
 .024 
 
 .034 
 
 .045 
 
 .054 
 
 5 
 
 .020 
 
 .032 
 
 .052 
 
 .070 
 
 .087 
 
 6 
 
 .024 
 
 .050 
 
 .073 
 
 .097 
 
 .121 
 
 7 
 
 .033 
 
 .064 
 
 .097 
 
 .130 
 
 .162 
 
 8 
 
 .041 
 
 .082 
 
 .124 
 
 .165 
 
 .207 
 
 9 
 
 .052 
 
 .103 
 
 .155 
 
 .207 
 
 .260 
 
 10 
 
 .063 
 
 .127 
 
 .191 
 
 .255 
 
 .320 
 
 11 
 
 .076 
 
 .153 
 
 .230 
 
 .304 
 
 .381 
 
 12 
 
 .090 
 
 .180 
 
 .270 
 
 .360 
 
 .450 
 
 13 
 
 .105 
 
 .210 
 
 .315 
 
 .420 
 
 .525 
 
 14 
 
 .121 
 
 .243 
 
 .363 
 
 .484 
 
 .606 
 
 15 
 
 .140 
 
 .277 
 
 .415 
 
 .554 
 
 .693 
 
 16 
 
 .157 
 
 .313 
 
 .470 
 
 .627 
 
 .784 
 
 17 
 
 .177 
 
 .352 
 
 .530 
 
 .705 
 
 .882 
 
 18 
 
 .197 
 
 .394 
 
 .597 
 
 .790 
 
 .987 
 
 19 
 
 .220 
 
 .440 
 
 .657 
 
 .877 
 
 1.096 
 
 20 
 
 .243 
 
 .484 
 
 .727 
 
 .970 
 
 1.212 
 
 21 
 
 .266 
 
 .532 
 
 .800 
 
 1.065 
 
 1.332 
 
 22 
 
 .292 
 
 .583 
 
 .900 
 
 1.167 
 
 1.460 
 
 23 
 
 .320 
 
 .636 
 
 .954 
 
 1.273 
 
 1.591 
 
 24 
 
 .346 
 
 .693 
 
 1.040 
 
 1.384 
 
 1.731 
 
 25 
 
 .375 
 
 .750 
 
 1 . 125 
 
 1.500 
 
 1.875 
 
 26 
 
 .405 
 
 .810 
 
 1.210 
 
 1.620 
 
 2.025 
 
 (3391
 
 CHAPTER XXII. 
 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 SEVEN PER CENT TABLES. 
 
 No. 
 
 Onb 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Wbkkb 
 
 Shake 
 
 Sharks 
 
 .Shares 
 
 Sharks 
 
 Shares 
 
 1 
 
 2 
 
 
 .010 
 
 .012 
 
 .016 
 
 .021 
 
 3 
 
 .010 
 
 .016 
 
 .024 
 
 .032 
 
 .040 
 
 4 
 
 .013 
 
 .027 
 
 .040 
 
 .053 
 
 .066 
 
 5 
 
 .020 
 
 .040 
 
 .061 
 
 .081 
 
 .101 
 
 6 
 
 .030 
 
 .056 
 
 .085 
 
 .113 
 
 .141 
 
 7 
 
 .037 
 
 .075 
 
 .114 
 
 .151 
 
 .190 
 
 8 
 
 .050 
 
 .096 
 
 .145 
 
 .193 
 
 .241 
 
 9 
 
 .060 
 
 .121 
 
 .181 
 
 .242 
 
 .302 
 
 10 
 
 .074 
 
 .147 
 
 .223 
 
 .296 
 
 .371 
 
 11 
 
 .090 
 
 .177 
 
 .266 
 
 .355 
 
 .444 
 
 12 
 
 .105 
 
 .210 
 
 .315 
 
 .420 
 
 .525 
 
 13 
 
 .122 
 
 .245 
 
 .367 
 
 .480 
 
 .612 
 
 14 
 
 .142 
 
 .282 
 
 .424 
 
 .575 
 
 .707 
 
 15 
 
 .162 
 
 .324 
 
 .485 
 
 .646 
 
 .810 
 
 16 
 
 .183 
 
 .366 
 
 .550 
 
 .732 
 
 .915 
 
 17 
 
 .205 
 
 .411 
 
 .617 
 
 .823 
 
 1.030 
 
 18 
 
 .230 
 
 .460 
 
 .691 
 
 .921 
 
 1.151 
 
 19 
 
 .250 
 
 .511 
 
 .767 
 
 1.024 
 
 1.280 
 
 20 
 
 .282 
 
 .565 
 
 .850 
 
 1.131 
 
 1.414 
 
 21 
 
 .320 
 
 .621 
 
 .933 
 
 1.243 
 
 1.554 
 
 22 
 
 .340 
 
 .681 
 
 1.021 
 
 1.362 
 
 1.702 
 
 23 
 
 .367 
 
 .742 
 
 1.114 
 
 1.486 
 
 1.856 
 
 24 
 
 .403 
 
 .807 
 
 1.211 
 
 1.615 
 
 2.020 
 
 25 
 
 .437 
 
 .875 
 
 1.312 
 
 1.750 
 
 2.187 
 
 26 
 
 .472 
 
 .995 
 
 1.412 
 
 1.890 
 
 2.362 
 
 13401
 
 DISTRIBUTION OF EARNINGS. 
 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 EIGHT PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 WEEKS 
 
 Share 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Shares 
 
 1 
 
 
 
 
 
 .010 
 
 2 
 
 
 .010 
 
 .015 
 
 .020 
 
 .024 
 
 3 
 
 .010 
 
 .020 
 
 .027 
 
 .036 
 
 .046 
 
 4 
 
 .015 
 
 .031 
 
 .045 
 
 .060 
 
 .076 
 
 5 
 
 .023 
 
 .047 
 
 .070 
 
 .092 
 
 .116 
 
 6 
 
 .033 
 
 .065 
 
 .097 
 
 .130 
 
 .162 
 
 7 
 
 .043 
 
 .087 
 
 .130 
 
 .172 
 
 .216 
 
 8 
 
 .055 
 
 .111 
 
 .165 
 
 .220 
 
 .276 
 
 9 
 
 .070 
 
 .140 
 
 .207 
 
 .276 
 
 .346 
 
 10 
 
 .084 
 
 .170 
 
 . ZOu 
 
 .340 
 
 .424 
 
 11 
 
 .101 
 
 .203 
 
 .304 
 
 .407 
 
 .510 
 
 12 
 
 .120 
 
 .240 
 
 .360 
 
 .480 
 
 .600 
 
 13 
 
 .140 
 
 .280 
 
 .420 
 
 .560 
 
 .700 
 
 14 
 
 .161 
 
 .323 
 
 .484 
 
 .647 
 
 .810 
 
 15 
 
 .184 
 
 .370 
 
 .555 
 
 .740 
 
 .924 
 
 16 
 
 .210 
 
 .420 
 
 .627 
 
 .836 
 
 1.046 
 
 17 
 
 .230 
 
 .471 
 
 .705 
 
 .940 
 
 1.176 
 
 18 
 
 .263 
 
 .527 
 
 .790 
 
 1.052 
 
 1.316 
 
 19 
 
 .293 
 
 .584 
 
 .877 
 
 1.170 
 
 1.462 
 
 20 
 
 .323 
 
 .647 
 
 .970 
 
 1.292 
 
 1.616 
 
 21 
 
 .355 
 
 .711 
 
 1.065 
 
 1.420 
 
 1.776 
 
 22 
 
 .390 
 
 .780 
 
 1.162 
 
 1.556 
 
 1.946 
 
 23 
 
 .430 
 
 .850 
 
 1.273 
 
 1.697 
 
 2.122 
 
 24 
 
 .461 
 
 .923 
 
 1.384 
 
 1.847 
 
 2.310 
 
 25 
 
 .500 
 
 1.000 
 
 1.500 
 
 2.000 
 
 2.500 
 
 26 
 
 .540 
 
 1.080 
 
 1.620 
 
 2.160 
 
 2.700 
 
 23 
 
 [341]
 
 CHAPTER XXII. 
 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 NINE PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shares 
 
 Shares 
 
 Shareb 
 
 SHARES 
 
 1 
 
 
 
 
 .010 
 
 2 
 
 
 .010 
 
 .016 
 
 .021 
 
 .027 
 
 3 
 
 .010 
 
 .020 
 
 .031 
 
 .042 
 
 .051 
 
 4 
 
 .017 
 
 .035 
 
 .051 
 
 .070 
 
 .085 
 
 5 
 
 .026 
 
 .052 
 
 .090 
 
 .105 
 
 .130 
 
 6 
 
 .037 
 
 .073 
 
 .110 
 
 .145 
 
 .182 
 
 7 
 
 .050 
 
 .097 
 
 .145 
 
 .195 
 
 .243 
 
 8 
 
 .062 
 
 .124 
 
 .186 
 
 .250 
 
 .310 
 
 9 
 
 .080 
 
 .155 
 
 .233 
 
 .312 
 
 .390 
 
 10 
 
 .096 
 
 .190 
 
 .287 
 
 .381 
 
 .477 
 
 11 
 
 .114 
 
 .230 
 
 .343 
 
 .457 
 
 .571 
 
 12 
 
 .135 
 
 .270 
 
 .405 
 
 .540 
 
 .625 
 
 13 
 
 .157 
 
 .315 
 
 .472 
 
 .630 
 
 .787 
 
 14 
 
 .181 
 
 .363 
 
 .545 
 
 .727 
 
 .910 
 
 15 
 
 .210 
 
 .415 
 
 .623 
 
 .831 
 
 1.040 
 
 16 
 
 .235 
 
 .470 
 
 .706 
 
 .942 
 
 1.176 
 
 17 
 
 .264 
 
 .530 
 
 .793 
 
 1.060 
 
 1.323 
 
 18 
 
 .296 
 
 .592 
 
 .890 
 
 1.185 
 
 1.480 
 
 19 
 
 .330 
 
 .660 
 
 .986 
 
 1.315 
 
 1.644 
 
 20 
 
 .363 
 
 .727 
 
 1.090 
 
 1.455 
 
 1.820 
 
 21 
 
 .400 
 
 .800 
 
 1.196 
 
 1.600 
 
 2.000 
 
 22 
 
 .437 
 
 .875 
 
 1.313 
 
 1.752 
 
 2.190 
 
 23 
 
 .480 
 
 .960 
 
 1.432 
 
 1.910 
 
 2.387 
 
 24 
 
 .520 
 
 1.040 
 
 1.560 
 
 2.077 
 
 2.596 
 
 25 
 
 .562 
 
 1.125 
 
 1.687 
 
 2.250 
 
 2.812 
 
 26 
 
 .607 
 
 1.215 
 
 1.822 
 
 2.430 
 
 3.037 
 
 [342]
 
 DISTRIBUTION OF EARNINGS. 
 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 TEN PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Shark 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Shares 
 
 1 
 
 
 
 
 .010 
 
 .010 
 
 2 
 
 
 .012 
 
 .020 
 
 .024 
 
 .030 
 
 3 
 
 .011 
 
 .023 
 
 .034 
 
 .046 
 
 .057 
 
 4 
 
 .020 
 
 .040 
 
 .057 
 
 .076 
 
 .095 
 
 5 
 
 .030 
 
 .060 
 
 .087 
 
 .116 
 
 .145 
 
 6 
 
 .040 
 
 .081 
 
 .121 
 
 .162 
 
 .202 
 
 7 
 
 .052 
 
 .110 
 
 .162 
 
 .216 
 
 .270 
 
 8 
 
 .070 
 
 .140 
 
 .207 
 
 .276 
 
 .345 
 
 9 
 
 .086 
 
 .173 
 
 .260 
 
 .341 
 
 .432 
 
 10 
 
 .101 
 
 .212 
 
 .320 
 
 .424 
 
 .530 
 
 11 
 
 .127 
 
 .254 
 
 .381 
 
 .510 
 
 .635 
 
 12 
 
 .150 
 
 .300 
 
 .450 
 
 .600 
 
 .750 
 
 13 
 
 .175 
 
 .350 
 
 .525 
 
 .700 
 
 .875 
 
 14 
 
 .202 
 
 .404 
 
 .606 
 
 .810 
 
 1.010 
 
 15 
 
 .231 
 
 .462 
 
 .693 
 
 .924 
 
 1.155 
 
 16 
 
 .261 
 
 .523 
 
 .784 
 
 1.046 
 
 1.307 
 
 17 
 
 .294 
 
 .590 
 
 .882 
 
 1.176 
 
 1.470 
 
 18 
 
 .330 
 
 .660 
 
 .987 
 
 1.316 
 
 1.645 
 
 19 
 
 .360 
 
 .731 
 
 1.096 
 
 1.462 
 
 1.827 
 
 20 
 
 .404 
 
 .810 
 
 1.212 
 
 1.616 
 
 2.020 
 
 21 
 
 .444 
 
 .890 
 
 1.332 
 
 1.776 
 
 2.220 
 
 22 
 
 .486 
 
 .973 
 
 1.460 
 
 1.946 
 
 2.432 
 
 23 
 
 .530 
 
 1.061 
 
 1.591 
 
 2.122 
 
 2.652 
 
 24 
 
 .577 
 
 1.154 
 
 1.731 
 
 2.310 
 
 2.880 
 
 25 
 
 .620 
 
 1.250 
 
 1.875 
 
 2.500 
 
 3.125 
 
 2<; 
 
 .670 
 
 1.350 
 
 2.025 
 
 2.700 
 
 :;.:>7;> 
 
 [343J
 
 CHAPTER XXII. 
 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 ELEVEN PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Shake 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Shares 
 
 1 
 
 
 
 
 .010 
 
 .011 
 
 2 
 
 
 .013 
 
 .020 
 
 .027 
 
 .033 
 
 3 
 
 .012 
 
 .025 
 
 .032 
 
 .050 
 
 .063 
 
 4 
 
 .020 
 
 .043 
 
 .062 
 
 .083 
 
 .104 
 
 5 
 
 .032 
 
 .063 
 
 .095 
 
 .127 
 
 .160 
 
 6 
 
 .044 
 
 .090 
 
 .133 
 
 .130 
 
 .222 
 
 7 
 
 .060 
 
 .118 
 
 .180 
 
 .237 
 
 .297 
 
 8 
 
 .076 
 
 .151 
 
 .227 
 
 .303 
 
 .380 
 
 9 
 
 .095 
 
 .190 
 
 .286 
 
 .380 
 
 .475 
 
 10 
 
 .110 
 
 .233 
 
 .302 
 
 .467 
 
 .583 
 
 11 
 
 .140 
 
 .280 
 
 .420 
 
 .560 
 
 .700 
 
 12 
 
 .160 
 
 .330 
 
 .495 
 
 .660 
 
 .825 
 
 13 
 
 .192 
 
 .385 
 
 .577 
 
 .770 
 
 .962 
 
 14 
 
 .222 
 
 .445 
 
 .666 
 
 .890 
 
 1.111 
 
 15 
 
 .254 
 
 .510 
 
 .762 
 
 1.017 
 
 1.270 
 
 16 
 
 .287 
 
 .575 
 
 .862 
 
 1.150 
 
 1.440 
 
 17 
 
 .323 
 
 .686 
 
 .970 
 
 1.293 
 
 1.617 
 
 18 
 
 .362 
 
 .723 
 
 1.085 
 
 1.447 
 
 1.810 
 
 19 
 
 .402 
 
 .804 
 
 1.206 
 
 1.610 
 
 2.010 
 
 20 
 
 .444 
 
 .890 
 
 1.333 
 
 1.777 
 
 2.222 
 
 21 
 
 .487 
 
 .976 
 
 1.465 
 
 1.953 
 
 2.442 
 
 22 
 
 .535 
 
 1.070 
 
 1.605 
 
 2.140 
 
 2.675 
 
 23 
 
 .583 
 
 1.167 
 
 1.755 
 
 2.334 
 
 2.917 
 
 24 
 
 .633 
 
 1.270 
 
 1.954 
 
 2.540 
 
 3.173 
 
 25 
 
 .687 
 
 1.375 
 
 2.062 
 
 2.750 
 
 3.437 
 
 26 
 
 .742 
 
 1.485 
 
 2.227 
 
 2.970 
 
 3.712 
 
 [344]
 
 DISTRIBUTION OF EARNINGS. 
 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 TWELVE PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shakes 
 
 Shares 
 
 Shares 
 
 Shares 
 
 1 
 
 
 
 
 .010 
 
 .012 
 
 2 
 
 
 .014 
 
 .021 
 
 .020 
 
 .036 
 
 3 
 
 .013 
 
 .027 
 
 .042 
 
 .055 
 
 .070 
 
 4 
 
 .022 
 
 .046 
 
 .070 
 
 .091 
 
 .114 
 
 5 
 
 .034 
 
 .070 
 
 .106 
 
 .140 
 
 .174 
 
 6 
 
 .050 
 
 .097 
 
 .145 
 
 .195 
 
 .243 
 
 7 
 
 .064 
 
 .130 
 
 .195 
 
 .260 
 
 .324 
 
 8 
 
 .082 
 
 .165 
 
 .250 
 
 .331 
 
 .414 
 
 9 
 
 .103 
 
 .207 
 
 .311 
 
 .415 
 
 .520 
 
 10 
 
 .127 
 
 .255 
 
 .383 
 
 .510 
 
 .636 
 
 11 
 
 .153 
 
 .304 
 
 .457 
 
 .610 
 
 .762 
 
 12 
 
 .180 
 
 .360 
 
 .540 
 
 .720 
 
 .900 
 
 13 
 
 .210 
 
 .420 
 
 .630 
 
 .840 
 
 1.050 
 
 14 
 
 .243 
 
 .484 
 
 .727 
 
 .970 
 
 1.212 
 
 15 
 
 .277 
 
 .555 
 
 .831 
 
 1.103 
 
 1.386 
 
 16 
 
 .313 
 
 .627. 
 
 .941 
 
 1.255 
 
 1.570 
 
 17 
 
 .353 
 
 .705 
 
 1.060 
 
 1.411 
 
 1.764 
 
 18 
 
 .364 
 
 .790 
 
 1.184 
 
 1.580 
 
 1.974 
 
 19 
 
 .440 
 
 .880 
 
 1.315 
 
 1.755 
 
 2.193 
 
 20 
 
 .484 
 
 .970 
 
 1.455 
 
 1.940 
 
 2.424 
 
 21 
 
 .532 
 
 1.065 
 
 1.600 
 
 2.131 
 
 2.664 
 
 22 
 
 .583 
 
 1.167 
 
 1 . 752 
 
 2 . 335 
 
 2.920 
 
 23 
 
 .636 
 
 1.273 
 
 1.960 
 
 2.547 
 
 3.183 
 
 24 
 
 .690 
 
 1.384 
 
 2.077 
 
 2.770 
 
 3.462 
 
 25 
 
 .750 
 
 1.500 
 
 2.250 
 
 3.000 
 
 :;.750 
 
 20 
 
 .810 
 
 1.620 
 
 2. -130 
 
 3.240 
 
 4.050 
 
 345]
 
 CHAPTER XXII. 
 
 PERMANENT PLAN— SYSTEM II. 
 EXPLANATION. 
 
 TO FIND THE AMOUNT UPON WHICH DIVIDENDS FOR ONE SHARE IS TO 
 
 BE DECLARED. 
 
 Kile. Add together the number of xveeks each $i has been 
 paid in. Divide this total by the number of weeks in the term. The 
 quotient gives the average amount to be credited for the entire term. 
 
 Example. A pays $1 weekly for a term of 26 weeks. What is 
 the average amount to his credit at the close of the term? Add 
 together the number of weeks $1 has been paid in, each 26, 25, 24, 
 etc., down to 1. The total is 351 weeks. That is to say the credits 
 to which he is entitled on his payments as he has made them are 
 together equal to a credit of $1 for 351 weeks. But $1 for 351 weeks 
 is equal to as many dollars for 26 weeks as 26 weeks is contained in 
 351 weeks, which is 13^ times, or $13.50. 
 
 TO FIND THE RATE PER CENT OF DIVIDEND TO BE DECLARED. 
 
 Rule. Average the amount to the credit of each member accord- 
 ing to the above rule and example. Then find the sum of all the 
 average amounts. Find what per cent the total profits are of this 
 sum and this per cent will give the rate of dividend to be declared. 
 
 Example. Suppose the association has 125 members and that the 
 total of the averaged investments is $4,050. Suppose that the profits 
 of the association for the term are $265. One per cent of $4,050 is 
 $40.50. $265 will be as many times one per cent of $4,050 as $40.50 
 is contained in it which is 6 4 %i times. Since it is not convenient 
 to calculate interest at 6 4 %u per cent the rate of the dividend 
 would probably be fixed at 6 per cent and the small balance of 
 profits left over after the distribution at this rate would be placed in 
 the reserve fund. 
 
 TO FIND THE FIRST DIVIDEND. 
 
 Rule. Find the per cent of the given amount in the table at the 
 given rate for the dividend. 
 
 Example. A has paid $1 weekly on 5 shares for 15 weeks. What 
 is the semi-annual dividend, the rate being 6 per cent per annum? 
 We find that the average amount to his credit is $23.10, which at 6 
 per cent per annum gives him a dividend of $0.69. 
 
 [346]
 
 DISTRIBUTION OF EARNINGS. 
 
 TO FIND ANY SUCCEEDING DIVIDEND. 
 
 Rule. Add to the amount standing to the credit of a shareholder 
 at the beginning of the term, his average credit for the term. From 
 this sum deduct any dues withdrawn during the term. The balance 
 will be the amount upon which the dividend is to be calculated. 
 
 Example. A has §350 to his credit at the beginning of the term. 
 He is entitled to an average credit for his payments during the term 
 on his five shares of $67.50. This added to the $350 amounts to 
 $417.50. Deduct from this amount $50 dues withdrawn, leaving a 
 balance of $367.50 the amount upon which his dividend is to be 
 based at 6 per cent per annum. His dividend is $11.02. 
 
 The first of the following- tables shows the total num- 
 ber of weeks' credit on $i for the payments made during 
 a term. The remaining tables show the average amount 
 each shareholder has to his credit for any number of 
 weeks from I to 26 and for any number of shares from 
 1 to 10: 

 
 CHAPTKR XXII. 
 
 X 
 
 
 © 
 
 a 
 
 o 
 
 
 
 c 
 b 
 
 I 
 
 b 
 
 ■o 
 s 
 
 N 
 u 
 
 t 
 
 t 
 
 t 
 
 3 
 
 73 
 
 * - cirj«fiC<or»aoaOi w c*ro«t»ft(ot»flec» 
 
 8sRaas«E 
 
 
 «cvp;«pj)io^a)oic — CNCr-riO'-oi^oo 
 
 -. 
 
 s 
 
 M 
 
 ci J2 a 
 
 jfl 
 
 a 
 
 
 
 
 a 
 
 wN«^ji(o^ooaiC'-£Nrtf U ':er»cr 
 
 cr, 
 
 n n mm n 
 
 % 
 
 
 
 m 
 
 •>N««inet>«09io-nn»inioisoo 
 
 SI 
 
 c3 CM N c3 
 
 CM 
 
 
 
 CM 
 
 ^«co^»n(ot*xaO'-«n^in(C(>* 
 
 en 
 
 c? ~* cm 
 « cs w 
 
 =5 
 
 
 
 8 
 
 
 
 wnn^ineMOoio-NM'jfliohjf 
 
 01 
 
 S CM 
 
 jHj 
 
 
 
 
 s 
 
 o 
 
 CM 
 
 T<«n«i«iot > «oo>0''«r)<finioi-oc 
 
 -. 
 
 « 
 
 O 
 
 
 
 s 
 
 
 e» 
 
 ^«(0^^t©hMffiO^«n«rin©^ap 
 
 as 
 
 gj 
 
 
 
 ~* 
 
 
 
 
 
 
 
 *-cveo«r»o<or*aoo>©-*-*c>*e , C*r»oe©r»oo 
 
 *-<c^co^*otor*aoo>0'— c^co*r^'^-;C 
 
 lO 
 
 »<«n«Jiiot»»siO''«n 
 
 
 § 
 
 * 
 
 wnco^ioio^aooio — cm :c 
 
 
 i 
 
 M 
 
 wcin«fO»t»»o>0'-wn 
 
 Oi 
 
 M 
 
 1^ 
 
 «ctn*-n'Ot»oOcnOj|Pijoo 
 
 Z 
 
 
 e 
 
 T*Mm«intot«cooo 
 
 a 
 
 O) 
 
 tflCIM^iQtOl^aDO) 
 
 
 CO 
 
 »<cin«»^iot»i» 
 
 rn 
 
 m 
 
 r» 
 
 »« CM CO «■ ifi <0 C» 
 
 s 
 
 
 
 (D 
 
 •« o m « « e 
 
 CM 
 
 ■a 
 
 t< « rj « o 
 
 .n 
 
 ♦ 
 
 -««•<» 
 
 o 
 
 n 
 
 ^«n 
 
 ■■a 
 
 M 
 
 »" CM 
 
 P3 
 
 1348]
 
 DISTRIBUTION OF EARNINGS. 
 
 1 share at 50 cents. 
 
 2 shares at 50c. or 1 share at $1. 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount. 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount 
 
 1 
 
 .50 
 
 .019 
 
 1 
 
 1.00 
 
 .03 
 
 2 
 
 1.00 
 
 .057 
 
 O 
 
 O 
 
 2.00 
 
 .11 
 
 8 
 
 1.50 
 
 .115 
 
 3 
 
 3.00 
 
 .23 
 
 4 
 
 2.00 
 
 .192 
 
 4 
 
 4.00 
 
 .38 
 
 5 
 
 2.50 
 
 .288 
 
 5 
 
 5.00 
 
 .57 
 
 6 
 
 3.00 
 
 .404 
 
 6 
 
 6.00 
 
 .80 
 
 7 
 
 3.50 
 
 .538 
 
 7 
 
 7.00 
 
 1.07 
 
 8 
 
 4.00 
 
 .692 
 
 8 
 
 8.00 
 
 1.38 
 
 9 
 
 4.50 
 
 .865 
 
 9 
 
 9.00 
 
 1.73 
 
 10 
 
 5.00 
 
 1.06 
 
 10 
 
 10.00 
 
 2.12 
 
 11 
 
 5.50 
 
 1.27 
 
 11 
 
 11.00 
 
 2.54 
 
 12 
 
 6.00 
 
 1.50 
 
 12 
 
 12.00 
 
 3.00 
 
 13 
 
 6.50 
 
 1.75 
 
 13 
 
 13.00 
 
 3.50 
 
 14 
 
 7.00 
 
 2.02 
 
 14 
 
 14.00 
 
 4.04 
 
 15 
 
 7.50 
 
 2.31 
 
 15 
 
 15.00 
 
 4.62 
 
 16 
 
 8.00 
 
 2.62 
 
 16 
 
 16.00 
 
 5.23 
 
 17 
 
 8.50 
 
 2.94 
 
 17 
 
 17.00 
 
 5.88 
 
 18 
 
 9.00 
 
 3.29 
 
 18 
 
 18.00 
 
 6.58 
 
 19 
 
 9.50 
 
 3.65 
 
 19 
 
 19.00 
 
 7.31 
 
 20 
 
 10.00 
 
 4.04 
 
 20 
 
 20.00 
 
 8.08 
 
 21 
 
 10.50 
 
 4.44 
 
 21 
 
 21.00 
 
 8.88 
 
 22 
 
 11.00 
 
 4.86 
 
 22 
 
 22.00 
 
 9.73 
 
 28 
 
 11.50 
 
 5.31 
 
 23 
 
 23.00 
 
 10.62 
 
 24 
 
 12.00 
 
 5.77 
 
 24 
 
 24.00 
 
 11.54 
 
 25 
 
 12.50 
 
 6.25 
 
 26 
 
 25.00 
 
 12.50 
 
 26 
 
 13.00 
 
 6.75 | 
 
 26 
 
 26.00 
 
 13.50 
 
 r,:!i |
 
 CHAPTER XXII, 
 
 3 shares at 50 cents. 
 
 4 shares at 50c. or 2 shares at $1. 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount. 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount. 
 
 1 
 
 1.50 
 
 .05 
 
 1 
 
 2.00 
 
 .07 
 
 2 
 
 3.00 
 
 .17 
 
 2 
 
 4.00 
 
 .22 
 
 3 
 
 4.50 
 
 .34 
 
 3 
 
 6.00 
 
 .46 
 
 4 
 
 6.00 
 
 .57 
 
 4 
 
 8.00 
 
 .76 
 
 5 
 
 7.50 
 
 .86 
 
 5 
 
 10.00 
 
 1.15 
 
 6 
 
 9.00 
 
 1.20 
 
 6 
 
 12.00 
 
 1.61 
 
 7 
 
 10.50 
 
 1.61 
 
 7 
 
 14.00 
 
 2.15 
 
 S 
 
 12.00 
 
 2.07 
 
 8 
 
 16.00 
 
 2.76 
 
 9 
 
 13.50 
 
 2.59 
 
 9 
 
 18.00 
 
 3.46 
 
 10 
 
 15.00 
 
 3.18 
 
 10 
 
 20.00 
 
 4.24 
 
 11 
 
 16.50 
 
 3.81 
 
 11 
 
 22.00 
 
 5.08 
 
 12 
 
 18.00 
 
 4.50 
 
 12 
 
 24.00 
 
 6.00 
 
 13 
 
 19.50 
 
 5.25 
 
 13 
 
 26.00 
 
 7.00 
 
 14 
 
 21.00 
 
 6.06 
 
 14 
 
 28.00 
 
 8.08 
 
 15 
 
 22.50 
 
 6.93 
 
 15 
 
 30.00 
 
 9.24 
 
 16 
 
 24.00 
 
 7.86 
 
 16 
 
 32.00 
 
 10.48 
 
 17 
 
 25.50 
 
 8.82 
 
 17 
 
 34.00 
 
 11.76 
 
 18 
 
 27.00 
 
 9.87 
 
 18 
 
 36.00 
 
 13.16 
 
 19 
 
 28.50 
 
 10.95 
 
 19 
 
 38.00 
 
 14.60 
 
 20 
 
 30.00 
 
 12.12 
 
 20 
 
 40.00 
 
 16.16 
 
 21 
 
 31.50 
 
 13.3* 
 
 21 
 
 42.00 
 
 17.76 
 
 22 
 
 33.00 
 
 14.58 
 
 22 
 
 44.00 
 
 19.44 
 
 23 
 
 34.50 
 
 15.93 
 
 23 
 
 46.00 
 
 21.24 
 
 24 
 
 36.00 
 
 17.31 
 
 24 
 
 48.00 
 
 23.08 
 
 25 
 
 37.50 
 
 18.75 
 
 25 
 
 50.00 
 
 25.00 
 
 26 
 
 39.00 
 
 20.25 
 
 26 
 
 52.00 
 
 27.00 
 
 13501
 
 DISTRIBUTION OF EARNINGS. 
 
 5 shares at 50 cents. 
 
 6 shares at 90c. or 3 shares at ?1. 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount. 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount. 
 
 1 
 
 2.50 
 
 .09 
 
 1 
 
 3.00 
 
 .11 
 
 2 
 
 5.00 
 
 .28 
 
 2 
 
 6.00 
 
 .34 
 
 3 
 
 7.50 
 
 .57 
 
 3 
 
 9.00 
 
 .69 
 
 4 
 
 10.00 
 
 .96 
 
 4 
 
 12.00 
 
 1.15 
 
 5 
 
 12.50 
 
 1.44 
 
 5 
 
 15.00 
 
 1.72 
 
 6 
 
 15.00 1 
 
 2.02 
 
 6 
 
 18.00 
 
 2.42 
 
 7 
 
 17.50 ' 
 
 2.69 
 
 7 
 
 21.00 
 
 3.22 
 
 8 
 
 20.00 
 
 3.46 
 
 8 
 
 24.00 
 
 4.15 
 
 9 
 
 22.50 
 
 4.32 
 
 9 
 
 27.00 
 
 5.19 
 
 10 
 
 25.00 
 
 5.30 
 
 10 
 
 30.00 
 
 6.36 
 
 11 
 
 27.50 
 
 6.35 
 
 11 
 
 33.00 
 
 7.62 
 
 12 
 
 30.00 
 
 7.50 
 
 12 
 
 36.00 
 
 9.00 
 
 13 
 
 32.50 
 
 8.75 
 
 13 
 
 39.00 
 
 10.50 
 
 14 
 
 35.00 
 
 10.10 
 
 14 
 
 42.00 
 
 12.12 
 
 15 
 
 37.50 
 
 11.55 
 
 15 
 
 45.00 
 
 13.86 
 
 16 
 
 40.00 
 
 13.10 
 
 16 
 
 48.00 
 
 15.72 
 
 17 
 
 42.50 
 
 14.70 
 
 17 
 
 51.00 
 
 17.64 
 
 18 
 
 45.00 
 
 16.45 
 
 18 
 
 54.00 
 
 19.74 
 
 19 
 
 47.50 
 
 18.25 
 
 19 
 
 57.00 
 
 21.90 
 
 20 
 
 50.00 
 
 20.20 
 
 20 
 
 60.00 
 
 24.24 
 
 21 
 
 52.50 
 
 22.20 
 
 21 
 
 63.00 
 
 26.64 
 
 22 
 
 55.00 
 
 24.30 
 
 22 
 
 66.00 
 
 20.16 
 
 23 
 
 57.50 
 
 26.55 
 
 23 
 
 69.00 
 
 31.86 
 
 24 
 
 60.00 
 
 28.85 
 
 1 24 
 
 72.00 
 
 34.62 
 
 25 
 
 62.60 
 
 31.25 
 
 25 
 26 
 
 75.00 
 
 37.50 
 
 26 
 
 (15.00 
 
 33.75 
 
 78.00 
 
 40.50 
 
 [361]
 
 CHAPTER XXII. 
 
 7 shares at 50 cents. 
 
 8 shares at 50c. or 4 shares at $1. 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount. 
 
 .13 
 
 Week. 
 1 
 
 DUES. 
 
 4.00 
 
 Average 
 Amount. 
 
 1 
 
 3.50 
 
 .15 
 
 2 
 
 7.00 
 
 .39 
 
 2 
 
 8.00 
 
 .45 
 
 S 
 
 10.50 
 
 .80 
 
 3 
 
 12.00 
 
 .92 
 
 4 
 
 14.00 
 
 1.34 
 
 1 * 
 
 16.00 
 
 1.53 
 
 5 
 
 17.50 
 
 2.01 
 
 5 
 
 20.00 
 
 2.30 
 
 
 
 21.00 
 
 2.82 
 
 6 
 
 24.00 
 
 3.23 
 
 7 
 
 24.50 
 
 3.76 
 
 7 
 
 28.00 
 
 4.30 
 
 8 
 
 28.00 
 
 4.84 
 
 8 
 
 32.00 
 
 5.53 
 
 9 
 
 31.50 
 
 ti.05 
 
 9 
 
 36.00 
 
 6.92 
 
 10 
 
 35.00 
 
 7.42 
 
 10 
 
 40.00 
 
 8.48 
 
 11 
 
 38.50 
 
 8.89 
 
 11 
 
 44.00 
 
 10.16 
 
 12 
 
 42.00 
 
 10.50 
 
 12 
 
 48.00 
 
 12.00 
 
 13 
 
 45.50 
 
 12.25 
 
 13 
 
 52.00 
 
 14.00 
 
 14 
 
 49.00 
 
 14.14 
 
 14 
 
 56.00 
 
 16.16 
 
 15 
 
 52.50 
 
 16.17 
 
 15 
 
 60.00 
 
 18.48 
 
 16 
 
 56.00 
 
 18.34 
 
 16 
 
 64.00 
 
 20.96 
 
 17 
 
 59.50 
 
 20.58 
 
 17 
 
 68.00 
 
 23.52 
 
 18 
 
 63.00 
 
 23.03 
 
 18 
 
 72.00 
 
 26.32 
 
 19 
 
 66.50 
 
 25.55 
 
 19 
 
 76.00 
 
 29.20 
 
 20 
 
 70.00 
 
 28.28 
 
 20 
 
 80.00 
 
 32.32 
 
 21 
 
 73.50 
 
 31.08 
 
 21 
 
 84.00 
 
 35.52 
 
 22 
 
 77.00 
 
 34.02 
 
 99 
 
 WW 
 
 88.00 
 
 38.88 
 
 23 
 
 80.50 
 
 37.17 
 
 23 
 
 92.00 
 
 42.48 
 
 24 
 
 84.00 
 
 40.39 
 
 24 
 
 96.00 
 
 46.16 
 
 25 
 
 87.50 
 
 43.75 
 
 25 
 
 100.00 
 
 50.00 
 
 26 
 
 91.00 
 
 47.25 
 
 26 
 
 104.00 
 
 54.00 
 
 13521
 
 DISTRIBUTION OF EARNINGS. 
 
 9 shares at 50 cents. 
 
 10 shares at 50c. or 5 shares at $1. 
 
 We«k. 
 
 DUES. 
 
 Average 
 Amount. 
 
 i 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount. 
 
 1 
 
 4.50 
 
 .17 
 
 1 
 
 5.00 
 
 .19 
 
 2 
 
 9.00 
 
 .51 
 
 2 
 
 10.00 
 
 .57 
 
 3 
 
 13.50 
 
 1.03 
 
 3 
 
 15.00 
 
 1.15 
 
 4 
 
 18.00 
 
 1.72 
 
 4 
 
 20.00 
 
 1.92 
 
 5 
 
 22.50 
 
 2.59 
 
 5 
 
 25.00 
 
 2.88 
 
 6 
 
 27.00 
 
 3.63 
 
 6 
 
 30.00 
 
 4.04 
 
 7 
 
 31.50 
 
 4.84 
 
 7 
 
 35.00 
 
 5.38 
 
 8 
 
 36.00 
 
 6.22 
 
 8 
 
 40.00 
 
 6.92 
 
 9 
 
 40.50 
 
 7.78 
 
 9 
 
 45.00 
 
 8.65 
 
 10 
 
 4 5.00 
 
 9.54 
 
 10 
 
 50.00 
 
 10.60 
 
 11 
 
 49.50 
 
 11.43 
 
 11 
 
 55.00 
 
 12.70 
 
 12 
 
 54.00 
 
 13.50 
 
 12 
 
 60.00 
 
 15.00 
 
 13 
 
 58.50 
 
 15.75 
 
 13 
 
 65.00 
 
 17.50 
 
 14 
 
 63.00 
 
 18.18 
 
 14 
 
 70.00 
 
 20.20 
 
 15 
 
 67.50 
 
 20.79 
 
 15 
 
 75.00 
 
 23.10 
 
 16 
 
 72.00 
 
 23.58 
 
 16 
 
 80.00 
 
 26.20 
 
 17 
 
 76.50 
 
 26.46 
 
 17 
 
 85.00 
 
 29.40 
 
 18 
 
 81.00 
 
 29.61 
 
 18 
 
 90.00 
 
 32.90 
 
 19 
 
 85.50 
 
 32.85 
 
 19 
 
 95.00 
 
 36.50 
 
 20 
 
 90.00 
 
 36.36 
 
 20 
 
 100.00 
 
 40.40 
 
 21 
 
 94.50 
 
 39.96 
 
 21 
 
 105.00 
 
 44.40 
 
 22 
 
 99.00 
 
 43.74 
 
 22 
 
 110.00 
 
 48.60 
 
 23 
 
 103.50 
 
 47.79 
 
 23 
 
 115.00 
 
 53.10 
 
 24 
 
 108.00 
 
 51.93 
 
 24 
 
 120.00 
 
 57.70 
 
 25 
 
 112.50 
 
 56.25 
 
 25 
 
 125.00 
 
 62.50 
 
 *'> 
 
 117.00 
 
 60.75 
 
 26 
 
 130.00 
 
 67.50 
 
 [358]
 
 CHAP! ER XXII. 
 
 4 per cent table. 
 
 Dollar*. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .02 
 
 88 
 
 .76 
 
 75 
 
 1.50 
 
 2 
 
 .04 
 
 39 
 
 •78 
 
 76 
 
 1.52 
 
 3 
 
 .06 
 
 40 
 
 .80 
 
 77 
 
 1.54 
 
 4 
 
 .08 
 
 41 
 
 .82 
 
 78 
 
 1.56 
 
 5 
 
 .10 
 
 42 
 
 .84 
 
 79 
 
 1.58 
 
 6 
 
 .12 
 
 43 
 
 .86 
 
 80 
 
 1.60 
 
 7 
 
 .14 
 
 44 
 
 .88 
 
 81 
 
 1.62 
 
 8 
 
 .16 
 
 45 
 
 .90 
 
 82 
 
 1.64 
 
 9 
 
 .18 
 
 46 
 
 .92 
 
 83 
 
 1.66 
 
 10 
 
 .20 
 
 47 
 
 .94 
 
 84 
 
 1.68 
 
 11 
 
 .22 
 
 48 
 
 .96 
 
 85 
 
 1.70 
 
 12 
 
 .24 
 
 49 
 
 .98 
 
 86 
 
 1.72 
 
 13 
 
 .26 
 
 50 
 
 1.00 
 
 87 
 
 1.74 
 
 14 
 
 .28 
 
 51 
 
 1.02 
 
 88 
 
 1.76 
 
 15 
 
 .80 
 
 52 
 
 1.04 
 
 89 
 
 1.78 
 
 16 
 
 .32 
 
 53 
 
 1.06 
 
 90 
 
 1.80 
 
 17 
 
 .34 
 
 54 
 
 1.08 
 
 91 
 
 1.82 
 
 18 
 
 .86 
 
 55 
 
 1.10 
 
 92 
 
 1.84 
 
 19 
 
 .38 
 
 66 
 
 1.12 
 
 93 
 
 1.86 
 
 20 
 
 .40 
 
 57 
 
 1.14 
 
 94 
 
 1.88 
 
 21 
 
 .42 
 
 58 
 
 1.16 
 
 95 
 
 1.90 
 
 22 
 
 .44 
 
 59 
 
 1.18 
 
 96 
 
 1.92 
 
 23 
 
 .46 
 
 60 
 
 1.20 
 
 97 
 
 1.94 
 
 24 
 
 .48 
 
 61 
 
 1.22 
 
 98 
 
 1.96 
 
 25 
 
 .50 
 
 62 
 
 1.24 
 
 99 
 
 1.98 
 
 26 
 
 .52 
 
 68 
 
 1.26 
 
 
 
 27 
 
 .54 
 
 64 
 
 1.28 
 
 100 
 
 2.00 
 
 28 
 
 .56 
 
 65 
 
 1.30 
 
 200 
 
 4.00 
 
 29 
 
 .58 
 
 66 
 
 1.32 
 
 300 
 
 6.00 
 
 30 
 
 .60 
 
 67 
 
 1.34 
 
 400 
 
 8.00 
 
 81 
 
 .62 
 
 68 
 
 1.36 
 
 500 
 
 10.00 
 
 32 
 
 .64 
 
 69 
 
 1.38 
 
 600 
 
 12.00 
 
 33 
 
 .66 
 
 70 
 
 1.40 
 
 700 
 
 14.00 
 
 34 
 
 .68 
 
 71 
 
 1.42 
 
 800 
 
 16.00 
 
 35 
 
 .70 
 
 72 
 
 1.44 
 
 900 
 
 18.00 
 
 36 
 
 .72 
 
 78 
 
 1.46 
 
 1000 
 
 20.00 
 
 87 
 
 .74 
 
 74 
 
 1.48 
 
 
 
 Calculation for six months. 
 
 [3.54]
 
 DISTRIBUTION OF EARNINGS. 
 
 4j4 per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest 
 
 1 
 
 .02 
 
 88 
 
 .81 
 
 75 
 
 1.59 
 
 2 
 
 .04 
 
 89 
 
 .83 
 
 76 
 
 1.61 
 
 3 
 
 .06 
 
 40 
 
 .85 
 
 77 
 
 1.64 
 
 4 
 
 .08 
 
 41 
 
 .87 
 
 78 
 
 1.66 
 
 5 
 
 .11 
 
 42 
 
 .89 
 
 79 
 
 1.68 
 
 6 
 
 .13 
 
 43 
 
 .91 
 
 80 
 
 1.70 
 
 7 
 
 .15 
 
 44 
 
 .93 
 
 81 
 
 1.72 
 
 8 
 
 .17 
 
 45 
 
 .96 
 
 82 
 
 1.74 
 
 9 
 
 .19 
 
 46 
 
 .98 
 
 83 
 
 1.76 
 
 10 
 
 .21 
 
 47 
 
 1.00 
 
 84 
 
 1.78 
 
 11 
 
 .28 
 
 48 
 
 1.02 
 
 85 
 
 1.81 
 
 12 
 
 .25 
 
 49 
 
 1.04 
 
 86 
 
 1.83 
 
 13 
 
 .28 
 
 50 
 
 1.06 
 
 87 
 
 1.85 
 
 14 
 
 .30 
 
 51 
 
 1.08 
 
 88 
 
 1.87 
 
 16 
 
 .32 
 
 52 
 
 1.10 
 
 89 
 
 1.89 
 
 16 
 
 .34 
 
 53 
 
 1.18 
 
 90 
 
 1.91 
 
 17 
 
 .36 
 
 54 
 
 1.15 
 
 91 
 
 1.98 
 
 18 
 
 .38 
 
 55 
 
 1.17 
 
 92 
 
 1.95 
 
 19 
 
 .40 
 
 56 
 
 1.19 
 
 93 
 
 1.98 
 
 20 
 
 .42 
 
 57 
 
 1.21 
 
 94 
 
 2.00 
 
 21 
 
 .45 
 
 58 
 
 1.28 
 
 95 
 
 2.02 
 
 22 
 
 .47 
 
 59 
 
 1.25 
 
 96 
 
 2.04 
 
 23 
 
 .49 
 
 60 
 
 1.27 
 
 97 
 
 2.06 
 
 24 
 
 .51 
 
 61 
 
 1.80 
 
 98 
 
 2.08 
 
 25 
 
 .53 
 
 62 
 
 1.82 
 
 99 
 
 2.10 
 
 26 
 
 .55 
 
 63 
 
 1.84 
 
 
 
 27 
 
 .57 
 
 64 
 
 1.36 
 
 100 
 
 2.12 
 
 28 
 
 .59 
 
 65 
 
 1.38 
 
 200 
 
 4.25 
 
 29 
 
 .62 
 
 66 
 
 1.40 
 
 800 
 
 6.87 
 
 80 
 
 .64 
 
 67 
 
 1.42 
 
 400 
 
 8.50 
 
 81 
 
 .66 
 
 68 
 
 1.44 
 
 500 
 
 10.62 
 
 82 
 
 .68 
 
 69 
 
 1.47 
 
 600 
 
 12.75 
 
 83 
 
 .70 
 
 70 
 
 1.49 
 
 700 
 
 14.87 
 
 84 
 
 .72 
 
 71 
 
 1.51 
 
 800 
 
 17.00 
 
 85 
 
 .74 
 
 72 
 
 1.58 
 
 900 
 
 19.12 
 
 86 
 
 .76 
 
 73 
 
 1.55 
 
 1000 
 
 21.25 
 
 87 
 
 .79 
 
 74 
 
 1.57 
 
 
 
 Calculation for six months. 
 [36S]
 
 CHAPTER XXII. 
 
 4 1 /* per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .02 
 
 88 
 
 .85 
 
 75 
 
 1.69 
 
 2 
 
 .04 
 
 89 
 
 .88 
 
 76 
 
 1.71 
 
 8 
 
 .07 
 
 40 
 
 .90 
 
 77 
 
 1.78 
 
 4 
 
 .09 
 
 41 
 
 .92 
 
 78 
 
 1.75 
 
 5 
 
 .11 
 
 42 
 
 .94 
 
 79 
 
 1.78 
 
 6 
 
 .18 
 
 43 
 
 .97 
 
 80 
 
 1.80 
 
 7 
 
 .16 
 
 44 
 
 .99 
 
 81 
 
 1.82 
 
 8 
 
 .18 
 
 45 
 
 1.01 
 
 82 
 
 1.84 
 
 9 
 
 .20 
 
 46 
 
 1.03 
 
 83 
 
 1.87 
 
 10 
 
 .22 
 
 47 
 
 1.06 
 
 84 
 
 1.89 
 
 11 
 
 .25 
 
 48 
 
 1.08 
 
 85 
 
 1.91 
 
 12 
 
 .27 
 
 49 
 
 1.10 
 
 86 
 
 1.93 
 
 13 
 
 .29 
 
 50 
 
 1.12 
 
 87 
 
 1.96 
 
 14 
 
 .31 
 
 51 
 
 1.15 
 
 88 
 
 1.98 
 
 16 
 
 .34 
 
 52 
 
 1.17 
 
 89 
 
 2.00 
 
 16 
 
 .36 
 
 53 
 
 1.19 
 
 90 
 
 2.02 
 
 17 
 
 .38 
 
 54 
 
 1.21 
 
 91 
 
 2.05 
 
 18 
 
 .40 
 
 55 
 
 1.24 
 
 92 
 
 2.07 
 
 19 
 
 .43 
 
 56 
 
 1.26 
 
 93 
 
 2.09 
 
 20 
 
 .45 
 
 57 
 
 1.28 
 
 94 
 
 2.11 
 
 21 
 
 .47 
 
 58 
 
 1.30 
 
 95 
 
 2.14 
 
 22 
 
 .49 
 
 59 
 
 1.38 
 
 96 
 
 2.16 
 
 28 
 
 .52 
 
 60 
 
 1.35 
 
 97 
 
 2.18 
 
 24 
 
 .54 
 
 61 
 
 1.87 
 
 98 
 
 2.20 
 
 25 
 
 .56 
 
 62 
 
 1.39 
 
 99 
 
 2.23 
 
 26 
 
 .58 
 
 63 
 
 1.42 
 
 
 
 27 
 
 .61 
 
 64 
 
 1.44 
 
 100 
 
 2.25 
 
 28 
 
 .63 
 
 65 
 
 1.46 
 
 200 
 
 4.50 
 
 29 
 
 .65 
 
 66 
 
 1.48 
 
 300 
 
 6.75 
 
 30 
 
 .67 
 
 67 
 
 1.51 
 
 400 
 
 9.00 
 
 81 
 
 .70 
 
 68 
 
 1.53 
 
 500 
 
 11.25 
 
 82 
 
 .72 
 
 69 
 
 1.55 
 
 600 
 
 18.50 
 
 33 
 
 .74 
 
 70 
 
 1.57 
 
 700 
 
 15.75 
 
 34 
 
 .76 
 
 71 
 
 1.60 
 
 800 
 
 18.00 
 
 35 
 
 .79 
 
 72 
 
 1.62 
 
 900 
 
 20.25 
 
 36 
 
 .81 
 
 78 
 
 1.64 
 
 1000 
 
 22.50 
 
 87 
 
 .83 
 
 74 
 
 1.66 
 
 
 
 Calculation for six months. 
 f356]
 
 DISTRIBUTION OF EARNINGS. 
 
 4^ per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .02 
 
 88 
 
 .90 
 
 75 
 
 1.78 
 
 2 
 
 .05 
 
 39 
 
 .93 
 
 76 
 
 1.80 
 
 3 
 
 .07 
 
 40 
 
 .95 
 
 77 
 
 1.83 
 
 4 
 
 .09 
 
 41 
 
 .97 
 
 78 
 
 1.85 
 
 5 
 
 .12 
 
 42 
 
 1.00 
 
 79 
 
 1.88 
 
 6 
 
 .14 
 
 43 
 
 1.02 
 
 80 
 
 1.90 
 
 7 
 
 .17 
 
 44 
 
 1.04 
 
 81 
 
 1.92 
 
 8 
 
 .19 
 
 45 
 
 1.07 
 
 82 
 
 1.95 
 
 9 
 
 .21 
 
 46 
 
 1.09 
 
 83 
 
 1.97 
 
 10 
 
 .24 
 
 47 
 
 1.12 
 
 84 
 
 1.99 
 
 11 
 
 .26 
 
 48 
 
 1.14 i 
 
 85 
 
 2.02 
 
 12 
 
 .28 
 
 49 
 
 1.16 
 
 86 
 
 2.04 
 
 18 
 
 .31 
 
 50 
 
 1.19 
 
 87 
 
 2.07 
 
 14 
 
 .33 
 
 51 
 
 1.21 
 
 88 
 
 2.09 
 
 15 
 
 .36 
 
 52 
 
 1.23 
 
 89 
 
 2.11 
 
 16 
 
 .38 
 
 53 
 
 1.26 
 
 90 
 
 2.14 
 
 17 
 
 .40 
 
 54 
 
 1.28 
 
 91 
 
 2.16 
 
 18 
 
 .43 
 
 55 
 
 1.81 
 
 92 
 
 2.18 
 
 19 
 
 .45 
 
 56 
 
 1.33 
 
 93 
 
 2.21 
 
 20 
 
 .47 
 
 57 
 
 1.85 
 
 94 
 
 2.23 
 
 21 
 
 .50 
 
 58 
 
 1.88 
 
 95 
 
 2.26 
 
 22 
 
 .52 
 
 59 
 
 1.40 
 
 96 
 
 2.28 
 
 23 
 
 .55 
 
 60 
 
 1.42 
 
 97 
 
 2.30 
 
 24 
 
 .57 
 
 61 
 
 1.45 
 
 98 
 
 2.33 
 
 25 
 
 .59 
 
 62 
 
 1.47 
 
 99 
 
 2.35 
 
 26 
 
 .62 
 
 68 
 
 1.50 
 
 
 
 27 
 
 .64 
 
 64 
 
 1.52 
 
 100 
 
 2.87 
 
 28 
 
 .66 
 
 65 
 
 1.54 
 
 200 
 
 4.75 
 
 29 
 
 .69 
 
 66 
 
 1.57 
 
 800 
 
 7.12 
 
 30 
 
 .71 
 
 67 
 
 1.59 
 
 400 
 
 9.50 
 
 31 
 
 .74 
 
 68 
 
 1.61 
 
 500 
 
 11.87 
 
 82 
 
 .76 
 
 69 
 
 1.64 
 
 600 
 
 14.25 
 
 38 
 
 .78 
 
 70 
 
 1.66 
 
 700 
 
 16.62 
 
 34 
 
 .81 
 
 71 
 
 1.69 
 
 800 
 
 19.00 
 
 85 
 
 .88 
 
 72 
 
 1.71 
 
 900 
 
 21.87 
 
 86 
 
 .85 
 
 78 
 
 1.73 
 
 1000 
 
 28.75 
 
 87 
 
 .88 
 
 74 
 
 1.76 
 
 
 
 Calculation for six months. 
 
 '.'4 
 
 [367]
 
 CHAPTER XXII 
 
 5 per cent table. 
 
 Dollars. 
 
 Interest. 
 
 .02 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 38 
 
 .95 
 
 75 
 
 1.87 
 
 2 
 
 .05 
 
 39 
 
 .97 
 
 76 
 
 1.90 
 
 3 
 
 .07 
 
 40 
 
 1.00 
 
 77 
 
 1.92 
 
 4 
 
 .10 
 
 41 
 
 1.02 
 
 78 
 
 1.95 
 
 5 
 
 .12 
 
 42 
 
 1.05 
 
 79 
 
 1.97 
 
 6 
 
 .15 
 
 43 
 
 1.07 
 
 80 
 
 2.00 
 
 7 
 
 .17 
 
 44 
 
 1.10 
 
 81 
 
 2.02 
 
 3 
 
 .20 
 
 45 
 
 1.12 
 
 82 
 
 2.05 
 
 9 
 
 .'■12 
 
 46 
 
 1.15 
 
 83 
 
 2.07 
 
 10 
 
 .25 
 
 47 
 
 1.17 
 
 84 
 
 2.10 
 
 11 
 
 .27 
 
 48 
 
 1.20 
 
 85 
 
 2.12 
 
 12 
 
 .30 
 
 49 
 
 1.22 
 
 86 
 
 2.15 
 
 13 
 
 .32 
 
 50 
 
 1.25 
 
 87 
 
 2.17 
 
 14 
 
 .35 
 
 51 
 
 1.27 
 
 88 
 
 2.20 
 
 15 
 
 .37 
 
 52 
 
 1.30 
 
 89 
 
 2.22 
 
 16 
 
 .40 
 
 53 
 
 1.32 
 
 90 
 
 2.25 
 
 17 
 
 .42 
 
 54 
 
 1.35 
 
 91 
 
 2.27 
 
 18 
 
 .45 
 
 55 
 
 1.37 
 
 92 
 
 2.30 
 
 19 
 
 .47 
 
 56 
 
 1.40 
 
 93 
 
 2.32 
 
 20 
 
 .50 
 
 57 
 
 1.42 
 
 94 
 
 2.35 
 
 21 
 
 .52 
 
 58 
 
 1.45 
 
 95 
 
 2.37 
 
 22 
 
 .55 
 
 59 
 
 1.47 
 
 96 
 
 2.40 
 
 23 
 
 .57 
 
 60 
 
 1.50 
 
 97 
 
 2.42 
 
 24 
 
 .60 
 
 61 
 
 1.52 
 
 98 
 
 2.45 
 
 25 
 
 .62 
 
 62 
 
 1.55 
 
 99 
 
 2.47 
 
 26 
 
 .65 
 
 63 
 
 1.57 
 
 
 
 27 
 
 .67 
 
 64 
 
 1.60 
 
 100 
 
 2.50 
 
 28 
 
 .70 
 
 65 
 
 1.62 
 
 200 
 
 5.00 
 
 29 
 
 .72 
 
 66 
 
 1.65 
 
 300 
 
 7.50 
 
 30 
 
 .75 
 
 67 
 
 1.67 
 
 400 
 
 10.00 
 
 31 
 
 .77 
 
 68 
 
 1.70 
 
 500 
 
 12.50 
 
 32 
 
 .80 
 
 69 
 
 1.72 
 
 600 
 
 15.00 
 
 33 
 
 .82 
 
 70 
 
 1.75 
 
 700 
 
 17.50 
 
 34 
 
 .85 
 
 71 
 
 1.77 
 
 800 
 
 20.00 
 
 35 
 
 .87 
 
 72 
 
 1.80 
 
 900 
 
 22.50 
 
 36 
 
 .90 
 
 73 
 
 1.82 
 
 1000 
 
 25.00 
 
 37 
 
 .92 
 
 74 
 
 1.85 
 
 
 
 Calculation for six months. 
 [358]
 
 DISTRIBUTION OF EARNINGS. 
 
 6£ per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .03 
 
 38 
 
 1.00 
 
 75 
 
 1.97 
 
 2 
 
 .05 
 
 39 
 
 1.02 
 
 76 
 
 1.99 
 
 3 
 
 .08 
 
 40 
 
 1.05 
 
 77 
 
 2.02 
 
 4 
 
 .10 
 
 41 
 
 1.08 
 
 78 
 
 2.05 
 
 5 
 
 .13 
 
 42 
 
 1.10 
 
 79 
 
 2.07 
 
 6 
 
 .16 
 
 43 
 
 1.13 
 
 80 
 
 2.10 
 
 7 
 
 .18 
 
 44 
 
 1.15 
 
 81 
 
 2.13 
 
 8 
 
 .21 
 
 45 
 
 1.18 
 
 82 
 
 2.15 
 
 9 
 
 .24 
 
 46 
 
 1.21 
 
 83 
 
 2.18 
 
 10 
 
 .26 
 
 47 
 
 1.23 
 
 84 
 
 2.20 
 
 11 
 
 .29 
 
 48 
 
 1.26 
 
 85 
 
 2.23 
 
 12 
 
 .31 
 
 49 
 
 1.29 
 
 86 
 
 2.26 
 
 13 
 
 .34 
 
 50 
 
 1.31 
 
 87 
 
 2.28 
 
 14 
 
 .37 
 
 51 
 
 1.34 
 
 88 
 
 2.31 
 
 15 
 
 .39 
 
 52 
 
 1.36 
 
 89 
 
 2.34 
 
 16 
 
 .42 
 
 53 
 
 1.39 
 
 90 
 
 2.36 
 
 17 
 
 .45 
 
 54 
 
 1.42 
 
 91 
 
 2.39 
 
 18 
 
 .47 
 
 55 
 
 1.44 
 
 92 
 
 2.41 
 
 19 
 
 .50 
 
 56 
 
 1.47 
 
 93 
 
 2.44 
 
 20 
 
 .52 
 
 57 
 
 1.50 1 
 
 94 
 
 2.47 
 
 21 
 
 .55 
 
 58 
 
 1.52 
 
 95 
 
 2.49 
 
 22 
 
 .58 
 
 59 
 
 1.55 
 
 96 
 
 2.52 
 
 23 
 
 .60 
 
 60 
 
 1.57 
 
 97 
 
 2.55 
 
 24 
 
 .63 
 
 61 
 
 1.60 
 
 98 
 
 2.57 
 
 25 
 
 .66 
 
 62 
 
 1.63 
 
 99 
 
 2.60 
 
 26 
 
 ..68 
 
 63 
 
 1.65 
 
 
 
 27 
 
 .71 
 
 64 
 
 1.68 I 
 
 100 
 
 2.62 
 
 28 
 
 .73 
 
 65 
 
 1.71 
 
 200 
 
 5.25 
 
 29 
 
 .76 
 
 66 
 
 1.73 
 
 300 
 
 7.87 
 
 30 
 
 .79 
 
 67 
 
 1.76 
 
 400 
 
 10.50 
 
 31 
 
 .81 
 
 68 
 
 1.78 1 
 
 500 
 
 13.12 
 
 32 
 
 .84 
 
 69 
 
 1.81 
 
 600 
 
 15.75 
 
 33 
 
 .87 
 
 70 
 
 1.84 | 
 
 700 
 
 18.37 
 
 34 
 
 .89 
 
 71 
 
 1.86 
 
 800 
 
 21.00 
 
 85 
 
 .92 
 
 72 
 
 1.89 
 
 900 
 
 23.62 
 
 36 
 
 .94 
 
 73 
 
 1.92 
 
 1000 
 
 26.25 
 
 37 
 
 .97 
 
 74 
 
 1.94 
 
 
 
 Calculation for six months. 
 [359]
 
 CHAPTER XXII. 
 
 64 per cent table. 
 
 Dollars. 
 
 Intarsst. 
 
 Dollars. 
 
 Intsrast. 
 
 Dollars. 
 
 Intsrest. 
 
 1 
 
 .03 
 
 38 
 
 1.04 
 
 75 
 
 2.06 
 
 2 
 
 .05 
 
 39 
 
 1.07 
 
 76 
 
 2.09 
 
 3 
 
 .08 
 
 40 
 
 1.10 
 
 77 
 
 2.12 
 
 4 
 
 .11 
 
 41 
 
 1.13 
 
 78 
 
 2.14 
 
 5 
 
 .14 
 
 42 
 
 1.15 
 
 79 
 
 2.17 
 
 6 
 
 .16 
 
 43 
 
 1.18 
 
 80 
 
 2.20 
 
 7 
 
 .19 
 
 44 
 
 1.21 
 
 81 
 
 2.23 
 
 8 
 
 .22 
 
 45 
 
 1.24 
 
 82 
 
 2.25 
 
 9 
 
 .25 
 
 46 
 
 1.26 
 
 83 
 
 2.28 
 
 10 
 
 .27 
 
 47 
 
 1.29 
 
 84 
 
 2.31 
 
 11 
 
 .30 
 
 48 
 
 1.32 
 
 85 
 
 2.34 
 
 12 
 
 .33 
 
 49 
 
 1.35 
 
 86 
 
 2.36 
 
 13 
 
 .36 
 
 50 
 
 1.37 
 
 87 
 
 2.39 
 
 14 
 
 .38 
 
 51 
 
 1.40 
 
 88 
 
 2.42 
 
 15 
 
 .41 
 
 52 
 
 1.43 
 
 89 
 
 2.45 
 
 16 
 
 .44 
 
 53 
 
 1.46 
 
 90 
 
 2.47 
 
 17 
 
 .47 
 
 54 
 
 1.48 
 
 91 
 
 2.50 
 
 18 
 
 .49 
 
 55 
 
 1.51 
 
 92 
 
 2.53 
 
 19 
 
 .52 
 
 56 
 
 1.54 
 
 93 
 
 2.56 
 
 20 
 
 .55 
 
 57 
 
 1.57 
 
 94 
 
 2.58 
 
 21 
 
 .58 
 
 58 
 
 1.59 
 
 95 
 
 2.61 
 
 22 
 
 .60 
 
 59 
 
 1.62 
 
 96 
 
 2.64 
 
 23 
 
 .63 
 
 60 
 
 1.65 
 
 97 
 
 2.67 
 
 24 
 
 .66 
 
 61 
 
 1.68 
 
 98 
 
 2.69 
 
 25 
 
 .69 
 
 62 
 
 1.70 
 
 99 
 
 2.72 
 
 26 
 
 .71 
 
 63 
 
 1.73 
 
 
 
 27 
 
 .74 
 
 64 
 
 1.76 
 
 100 
 
 2.75 
 
 28 
 
 .77 
 
 65 
 
 1.79 
 
 200 
 
 5.50 
 
 29 
 
 .80 
 
 66 
 
 1.81 
 
 300 
 
 8.25 
 
 30 
 
 .82 
 
 67 
 
 1.84 
 
 400 
 
 11.00 
 
 31 
 
 .85 
 
 68 
 
 1.87 
 
 500 
 
 13.75 
 
 32 
 
 .88 
 
 69 
 
 1.90 
 
 600 
 
 ♦16.50 
 
 33 
 
 .91 
 
 70 
 
 1.92 
 
 700 
 
 19.25 
 
 34 
 
 .93 
 
 71 
 
 1.95 
 
 800 
 
 22.00 
 
 35 
 
 .96 
 
 72 
 
 1.98 
 
 900 
 
 24.75 
 
 36 
 
 .99 
 
 73 
 
 2.01 
 
 1000 
 
 27.50 
 
 37 
 
 1.02 
 
 74 
 
 2.03 
 
 
 
 Calculation for six months. 
 [3601
 
 DISTRIBUTION OF EARNINGS. 
 
 6$ per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .03 
 
 38 
 
 1.09 
 
 75 
 
 2.16 
 
 2 
 
 .06 
 
 39 
 
 1.12 
 
 76 
 
 2.18 
 
 3 
 
 .09 
 
 40 
 
 1.15 
 
 77 
 
 2.21 
 
 4 
 
 .11 
 
 41 
 
 1.18 
 
 78 
 
 2.24 
 
 5 
 
 .14 
 
 42 
 
 1.21 
 
 79 
 
 2.27 
 
 6 
 
 .17 
 
 43 
 
 1.24 i 
 
 80 
 
 2.30 
 
 7 
 
 .20 
 
 44 
 
 1.26 
 
 81 
 
 2.33 
 
 8 
 
 .23 
 
 45 
 
 1.29 
 
 82 
 
 2.36 
 
 9 
 
 .26 
 
 46 
 
 1.32 
 
 83 
 
 2.39 
 
 10 
 
 .29 
 
 47 
 
 1.35 
 
 84 
 
 2.41 
 
 11 
 
 .32 
 
 48 
 
 1.38 
 
 85 
 
 2.44 
 
 12 
 
 .34 
 
 49 
 
 1.41 
 
 86 
 
 2.47 
 
 13 
 
 .37 
 
 50 
 
 1.44 
 
 87 
 
 2.50 
 
 14 
 
 .40 
 
 51 
 
 1.47 
 
 88 
 
 2.53 
 
 15 
 
 .43 
 
 52 
 
 1.49 
 
 89 
 
 2.56 
 
 16 
 
 .46 
 
 53 
 
 1.52 
 
 90 
 
 2.59 
 
 17 
 
 .49 
 
 54 
 
 1.55 
 
 91 
 
 2.62 
 
 18 
 
 .52 
 
 55 
 
 1.58 
 
 92 
 
 2.64 
 
 19 
 
 .55 
 
 56 
 
 1.61 
 
 93 
 
 2.67 
 
 20 
 
 .57 
 
 57 
 
 1.64 
 
 94 
 
 2.70 
 
 21 
 
 .60 
 
 58 
 
 1.67 
 
 95 
 
 2.73 
 
 22 
 
 .63 
 
 59 
 
 1.70 
 
 96 
 
 2.76 
 
 23 
 
 .66 
 
 60 
 
 1.72 
 
 97 
 
 2.79 
 
 24 
 
 .69 
 
 61 
 
 1.75 
 
 98 
 
 2.82 
 
 25 
 
 .72 
 
 62 
 
 1.78 
 
 99 
 
 2.85 
 
 26 
 
 .75 
 
 63 
 
 1.81 
 
 
 
 27 
 
 .78 
 
 64 
 
 1.84 
 
 100 
 
 2.87 
 
 28 
 
 .80 
 
 65 
 
 1.87 
 
 200 
 
 5.75 
 
 29 
 
 .83 
 
 66 
 
 1.90 
 
 300 
 
 8.62 
 
 30 
 
 .86 
 
 67 
 
 1.93 
 
 400 
 
 11.50 
 
 31 
 
 .89 
 
 68 
 
 1.95 
 
 500 
 
 14.37 
 
 32 
 
 .92 
 
 69 
 
 1.98 
 
 600 
 
 17.25 
 
 33 
 
 .95 
 
 70 
 
 2.01 
 
 700 
 
 20.12 
 
 34 
 
 .98 
 
 71 
 
 2.04 
 
 800 
 
 23.00 
 
 35 
 
 1.01 
 
 72 
 
 2.07 j 
 
 900 
 
 25.87 
 
 36 
 
 1.03 
 
 73 
 
 2.10 
 
 1000 
 
 28.75 
 
 .'57 
 
 1.06 
 
 74 
 
 2.13 
 
 
 
 Illation for SIX montliv 
 [3611
 
 CHAPTKK XXII. 
 
 6 per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .03 
 
 38 
 
 1.14 
 
 75 
 
 2.25 
 
 2 
 
 .06 
 
 39 
 
 1.17 
 
 76 
 
 2.28 
 
 3 
 
 .09 
 
 40 
 
 1.20 
 
 77 
 
 2.31 
 
 4 
 
 .12 
 
 41 
 
 1.23 
 
 78 
 
 2.34 
 
 5 
 
 .15 
 
 42 
 
 1.26 
 
 79 
 
 2.37 
 
 6 
 
 .18 
 
 43 
 
 1.29 
 
 80 
 
 2.40 
 
 7 
 
 .21 
 
 44 
 
 1.32 
 
 81 
 
 2.43 
 
 8 
 
 .24 
 
 45 
 
 1.35 
 
 82 
 
 2.46 
 
 9 
 
 .27 
 
 46 
 
 1.38 
 
 83 
 
 2.49 
 
 10 
 
 .30 
 
 47 
 
 1.41 
 
 84 
 
 2.52 
 
 11 
 
 .33 
 
 48 
 
 1.44 
 
 85 
 
 2.55 
 
 12 
 
 .36 
 
 49 
 
 1.47 
 
 86 
 
 2.58 
 
 13 
 
 .39 
 
 50 
 
 1.50 
 
 87 
 
 2.61 
 
 14 
 
 .42 
 
 51 
 
 1.53 
 
 88 
 
 2.64 
 
 15 
 
 .45 
 
 52 
 
 1.56 
 
 89 
 
 2.67 
 
 16 
 
 .48 
 
 53 
 
 1.59 
 
 90 
 
 2.70 
 
 17 
 
 .51 
 
 54 
 
 1.62 
 
 91 
 
 2.73 
 
 18 
 
 .54 
 
 55 
 
 1.65 
 
 92 
 
 2.76 
 
 19 
 
 .57 
 
 56 
 
 1.68 
 
 93 
 
 2.79 
 
 20 
 
 .60 
 
 57 
 
 1.71 
 
 94 
 
 2.82 
 
 21 
 
 .63 
 
 58 
 
 1.74 
 
 95 
 
 2.85 
 
 22 
 
 .66 
 
 59 
 
 1.77 
 
 96 
 
 2.88 
 
 23 
 
 .69 
 
 60 
 
 1.80 
 
 97 
 
 2.91 
 
 24 
 
 .72 
 
 61 
 
 1.83 
 
 98 
 
 2.94 
 
 25 
 
 .75 
 
 62 
 
 1.86 
 
 99 
 
 2.97 
 
 26 
 
 .78 
 
 63 
 
 1.89 
 
 
 
 27 
 
 .81 
 
 64 
 
 1.92 
 
 100 
 
 3.00 
 
 28 
 
 .84 
 
 65 
 
 1.95 
 
 200 
 
 6.00 
 
 29 
 
 .87 
 
 66 
 
 1.98 
 
 300 
 
 9.00 
 
 30 
 
 .90 
 
 67 
 
 2.01 
 
 400 
 
 12.00 
 
 31 
 
 .93 
 
 68 
 
 2.04 
 
 500 
 
 15.00 
 
 32 
 
 .96 
 
 69 
 
 2.07 
 
 600 
 
 18.00 
 
 33 
 
 .99 
 
 70 
 
 2.10 
 
 700 
 
 21.00 
 
 34 
 
 1.02 
 
 71 
 
 2.13 
 
 800 
 
 •i4.00 
 
 35 
 
 1.05 
 
 72 
 
 2.16 
 
 900 
 
 27.00 
 
 36 
 
 1.08 
 
 73 
 
 2.19 
 
 1000 j 
 
 30.00 
 
 37 
 
 1.11 
 
 74 
 
 2.22 
 
 
 
 Calculation for six months. 
 
 13621
 
 DISTRIBUTION OF EARNINGS. 
 
 64, per cent table. 
 
 Dollars. 
 
 i 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .03 
 
 38 
 
 1.19 
 
 75 
 
 2.34 
 
 2 
 
 .06 
 
 39 
 
 1.22 
 
 76 
 
 2.37 
 
 3 
 
 .09 
 
 40 
 
 1.25 
 
 77 
 
 2.41 
 
 4 
 
 .12 
 
 41 
 
 1.28 
 
 78 
 
 2.44 
 
 
 
 .16 
 
 42 
 
 1.31 
 
 79 
 
 2.47 
 
 6 
 
 .19 
 
 43 
 
 1.34 
 
 80 
 
 2.50 
 
 7 
 
 .22 
 
 44 
 
 1.37 
 
 81 
 
 2.53 
 
 8 
 
 .25 
 
 45 
 
 1.41 
 
 82 
 
 2.56 
 
 9 
 
 .28 
 
 46 
 
 1.44 
 
 83 
 
 2.59 
 
 10 
 
 .31 
 
 47 
 
 1.47 
 
 84 
 
 2.62 
 
 11 
 
 .34 
 
 48 
 
 1.50 
 
 85 
 
 2.66 
 
 12 
 
 .37 
 
 49 
 
 1.53 
 
 86 
 
 2.69 
 
 13 
 
 .41 
 
 50 
 
 1.56 
 
 87 
 
 2.72 
 
 14 
 
 .44 
 
 51 
 
 1.59 
 
 88 
 
 2.75 
 
 15 
 
 .47 
 
 52 
 
 1.62 
 
 89 
 
 2.78 
 
 16 
 
 .50 
 
 53 
 
 1.66 
 
 90 
 
 2.81 
 
 17 
 
 .53 
 
 54 
 
 1.69 
 
 91 
 
 2.84 
 
 18 
 
 .56 
 
 55 
 
 1.72 
 
 92 
 
 2.87 
 
 19 
 
 .59 
 
 56 
 
 1.75 
 
 93 
 
 2.91 
 
 20 
 
 .62 
 
 57 
 
 1.78 
 
 94 
 
 2.94 
 
 21 
 
 .66 
 
 58 
 
 1.81 
 
 95 
 
 2.97 
 
 22 
 
 .69 
 
 59 
 
 1.84 
 
 96 
 
 3.00 
 
 23 
 
 .72 
 
 60 
 
 1.87 
 
 97 
 
 2.03 
 
 24 
 
 .75 
 
 61 
 
 1.91 
 
 98 
 
 3.06 
 
 25 
 
 .78 
 
 62 
 
 1.94 
 
 99 
 
 3.09 
 
 26 
 
 .81 
 
 63 
 
 1.97 
 
 
 
 27 
 
 .84 
 
 64 
 
 2.00 
 
 100 
 
 3.12 
 
 28 
 
 .87 
 
 65 
 
 2.03 
 
 200 
 
 6.2;. 
 
 29 
 
 .91 
 
 66 
 
 2.06 
 
 300 
 
 9.37 
 
 30 
 
 .94 
 
 67 
 
 2.09 
 
 400 
 
 12.50 
 
 31 
 
 .97 
 
 68 
 
 2.12 
 
 500 
 
 15.62 
 
 32 
 
 1.00 
 
 69 
 
 2.16 
 
 600 
 
 18.75 
 
 33 
 
 1 .03 
 
 70 
 
 2.19 
 
 700 
 
 21.K7 
 
 34 
 
 1.06 
 
 71 
 
 2.22 
 
 800 
 
 25.00 
 
 35 
 
 1.09 
 
 72 
 
 2.25 
 
 900 
 
 2H.12 
 
 36 
 
 1.19 
 
 73 
 
 2.28 
 
 1000 
 
 31.25 
 
 37 
 
 1.1. 1 
 
 74 
 
 2.31 
 
 
 
 
 Cal( 
 
 ~ulation for six mc 
 
 nths. 
 
 
 
 
 (3 
 
 63] 
 

 
 CHAPTER XXII. 
 
 6V2 per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .03 
 
 38 
 
 1.23 
 
 75 
 
 2.44 
 
 2 
 
 .06 
 
 39 
 
 1.27 
 
 76 
 
 2.47 
 
 3 
 
 .10 
 
 40 
 
 1.30 
 
 77 
 
 2.50 
 
 4 
 
 .13 
 
 41 
 
 1.33 
 
 78 
 
 2.53 
 
 5 
 
 .16 
 
 42 
 
 1.36 
 
 79 
 
 2.57 
 
 6 
 
 .19 
 
 43 
 
 1.40 
 
 80 
 
 2.60 
 
 7 
 
 .23 
 
 44 
 
 1.43 
 
 81 
 
 2.63 
 
 8 
 
 .26 
 
 45 
 
 1.46 
 
 82 
 
 2.66 
 
 9 
 
 .29 
 
 46 
 
 1.49 
 
 83 
 
 2.70 
 
 10 
 
 .32 
 
 47 
 
 1.53 
 
 84 
 
 2.73 
 
 11 
 
 .36 
 
 48 
 
 1.56 
 
 85 
 
 2.76 
 
 12 
 
 .39 
 
 49 
 
 1.59 
 
 86 
 
 2.79 
 
 13 
 
 .42 
 
 50 
 
 1.62 
 
 87 
 
 2.83 
 
 14 
 
 .45 
 
 51 
 
 1.66 
 
 88 
 
 2.86 
 
 15 
 
 .49 
 
 52 
 
 1.69 
 
 89 
 
 2.89 
 
 16 
 
 .52 
 
 53 
 
 1.72 
 
 90 
 
 2.92 
 
 17 
 
 .55 
 
 54 
 
 1.75 
 
 91 
 
 2.96 
 
 18 
 
 .58 
 
 55 
 
 1.79 
 
 92 
 
 2.99 
 
 19 
 
 .62 
 
 56 
 
 1.82 
 
 93 
 
 3.02 
 
 20 
 
 .65 
 
 57 
 
 1.85 
 
 94 
 
 3.05 
 
 21 
 
 .68 
 
 58 
 
 1.88 
 
 95 
 
 3.09 
 
 22 
 
 .71 
 
 59 
 
 1.92 
 
 96 
 
 3.12 
 
 23 
 
 .75 
 
 60 
 
 1.95 
 
 97 
 
 3.15 
 
 24 
 
 .78 
 
 61 
 
 1.98 
 
 98 
 
 3.18 
 
 25 
 
 .81 
 
 62 
 
 2.01 
 
 99 
 
 3.22 
 
 26 
 
 .84 
 
 63 
 
 2.05 
 
 
 
 27 
 
 .88 
 
 64 
 
 2.08 
 
 100 
 
 3.25 
 
 28 
 
 .91 
 
 65 
 
 2.11 
 
 200 
 
 6.50 
 
 29 
 
 .94 
 
 66 
 
 2.14 
 
 300 
 
 9.75 
 
 30 
 
 .97 
 
 67 
 
 2.18 
 
 400 
 
 13.00 
 
 31 
 
 1.01 
 
 68 
 
 2.21 
 
 500 
 
 16.25 
 
 32 
 
 1.04 
 
 69 
 
 2.24 
 
 600 
 
 19.50 
 
 33 
 
 1.07 
 
 70 
 
 2.27 
 
 700 
 
 22.75 
 
 34 
 
 1.10 
 
 71 
 
 2.31 
 
 800 
 
 26.00 
 
 35 
 
 1.14 
 
 72 
 
 2.34 
 
 900 
 
 29.25 
 
 36 
 
 1.17 
 
 73 
 
 2.37 
 
 1000 
 
 32.50 
 
 37 
 
 1.20 
 
 74 
 
 2.40 
 
 I 1 
 
 
 
 Calculation for six m 
 
 onths. 
 
 
 
 
 f 
 
 3641 
 

 
 DISTRIBUTION OF EARNINGS. 
 
 6f per cent table. 
 
 Collars. 
 
 Interest. 
 
 Dollars. 
 
 Interest 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .03 
 
 38 
 
 1.28 
 
 75 
 
 2.53 
 
 2 
 
 .07 
 
 39 
 
 1.32 
 
 76 
 
 2.56 
 
 3 
 
 .10 
 
 40 
 
 1.35 
 
 77 
 
 2.60 
 
 4 
 
 .13 
 
 41 
 
 1.38 
 
 78 
 
 2.63 
 
 5 
 
 .17 
 
 42 
 
 1.42 
 
 79 
 
 2.67 
 
 6 
 
 .20 
 
 43 
 
 1.45 
 
 80 
 
 2.70 
 
 7 
 
 .24 
 
 44 
 
 1.48 
 
 81 
 
 2.73 
 
 8 
 
 .27 
 
 45 
 
 1.52 
 
 82 
 
 2.77 
 
 9 
 
 .30 
 
 46 
 
 1.55 
 
 83 
 
 2.80 
 
 10 
 
 .34 
 
 47 
 
 1.59 
 
 84 
 
 2.83 
 
 11 
 
 .37 
 
 48 
 
 1.62 
 
 85 
 
 2.87 
 
 12 
 
 .40 | 
 
 49 
 
 1.65 
 
 86 
 
 2.90 
 
 13 
 
 .44 
 
 50 
 
 1.69 
 
 87 
 
 2.94 
 
 14 
 
 .47 
 
 51 
 
 1.72 
 
 88 
 
 2.97 
 
 15 
 
 .51 
 
 52 
 
 1.75 
 
 89 
 
 3.00 
 
 16 
 
 .54 
 
 53 
 
 1.79 
 
 90 
 
 3.04 
 
 17 
 
 .57 
 
 54 
 
 1.82 
 
 91 
 
 3.07 
 
 18 
 
 .61 
 
 55 
 
 1.86 
 
 92 
 
 3.10 
 
 19 
 
 .64 
 
 56 
 
 1.89 
 
 93 
 
 3.14 
 
 20 
 
 .67 
 
 57 
 
 1.92 
 
 94 
 
 3.17 
 
 21 
 
 .71 
 
 68 
 
 1.96 
 
 95 
 
 3.21 
 
 22 
 
 .74 
 
 59 
 
 1.99 
 
 96 
 
 3.24 
 
 23 
 
 .78 
 
 60 
 
 2.02 
 
 97 
 
 3.27 
 
 24 
 
 .81 
 
 61 
 
 2.06 
 
 98 
 
 3.31 
 
 25 
 
 .84 
 
 62 
 
 2.09 
 
 99 
 
 3.34 
 
 26 
 
 .88 ■ 
 
 63 
 
 2.13 
 
 
 
 27 
 
 .91 
 
 64 
 
 2.16 
 
 100 
 
 3.37 
 
 28 
 
 .94 | 
 
 65 
 
 2.19 i 
 
 200 
 
 6.75 
 
 29 
 
 .98 j 
 
 66 
 
 2.2.'5 
 
 300 
 
 10.12 
 
 30 
 
 1.01 
 
 67 
 
 2.26 | 
 
 400 
 
 13.50 
 
 31 
 
 1.05 i 
 
 68 
 
 2.29 
 
 500 
 
 16.87 
 
 32 
 
 1.08 
 
 69 
 
 2.33 
 
 600 
 
 20.25 
 
 33 
 
 1.11 
 
 70 
 
 2.36 
 
 700 
 
 23.62 
 
 34 
 
 1.15 | 
 
 71 
 
 2.40 
 
 K00 
 
 27.00 
 
 35 
 
 1.18 i 
 
 72 
 
 2.43 
 
 BOO 
 
 30.37 
 
 36 
 
 1.21 
 
 73 
 
 2.46 
 
 1000 
 
 33.75 
 
 37 
 
 1.25 ! 
 
 74 
 
 2.50 
 
 
 
 
 Calc 
 
 ulation fc 
 13 
 
 ir six mo 
 
 06] 
 
 nths. 

 
 CHAPTER XXII. 
 
 7 per cent table. 
 
 C* 11: rs. 
 
 Interest. 
 
 Dollars. 
 
 Interest 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .015 
 
 38 
 
 1.33 
 
 75 
 
 2.62 
 
 2 
 
 .07 
 
 39 
 
 1.36 
 
 76 
 
 2.66 
 
 3 
 
 .10 
 
 40 
 
 1.40 
 
 77 
 
 2.69 
 
 4 
 
 .14 
 
 41 
 
 1.43 
 
 78 
 
 2.73 
 
 5 
 
 .17 
 
 42 
 
 1.47 
 
 79 
 
 2.76 
 
 6 
 
 .21 
 
 43 
 
 1.50 
 
 80 
 
 2.80 
 
 7 
 
 .24 
 
 44 
 
 1.54 
 
 81 
 
 2.83 
 
 8 
 
 .28 
 
 45 
 
 1.57 
 
 82 
 
 2.87 
 
 9 
 
 .31 
 
 46 
 
 1.61 
 
 83 
 
 2.90 
 
 10 
 
 .35 
 
 47 
 
 1.64 
 
 84 
 
 2.94 
 
 11 
 
 .38 
 
 48 
 
 1.68 
 
 85 
 
 2.97 
 
 12 
 
 .42 
 
 49 
 
 1.71 
 
 86 
 
 3.01 
 
 13 
 
 .45 
 
 50 
 
 1.75 
 
 87 
 
 3.04 
 
 14 
 
 .49 
 
 51 
 
 1.78 
 
 88 
 
 3.08 
 
 15 
 
 .52 
 
 52 
 
 1.82 
 
 89 
 
 3.11 
 
 16 
 
 .56 
 
 53 
 
 1.85 
 
 90 
 
 3.15 
 
 17 
 
 .59 
 
 54 
 
 1.89 
 
 91 
 
 3.18 
 
 18 
 
 .63 
 
 55 
 
 1.92 
 
 92 
 
 3.22 
 
 19 
 
 .66 
 
 56 
 
 1.96 
 
 93 
 
 3.25 
 
 20 
 
 .70 
 
 57 
 
 1.99 
 
 94 
 
 3.29 
 
 21 
 
 .73 
 
 58 
 
 2.03 
 
 95 
 
 3.32 
 
 22 
 
 .77 
 
 59 
 
 2.06 
 
 96 
 
 3.36 
 
 23 
 
 .80 
 
 60 
 
 2.10 
 
 . 97 
 
 3.39 
 
 24 
 
 .84 
 
 61 
 
 2.13 
 
 98 
 
 3.43 
 
 25 
 
 .87 
 
 62 
 
 2.17 
 
 99 
 
 3.46 
 
 26 
 
 .91 
 
 63 
 
 2.20 
 
 
 
 27 
 
 .94 
 
 64 
 
 2.24 
 
 100 
 
 3.50 
 
 28 
 
 .98 
 
 65 
 
 2.27 
 
 200 
 
 7.00 
 
 29 
 
 1.01 
 
 66 
 
 2.31 
 
 300 
 
 10.50 
 
 30 
 
 1.05 
 
 67 
 
 2.34 
 
 400 
 
 14.00 
 
 31 
 
 1.08 
 
 68 
 
 2.38 
 
 500 
 
 17.50 
 
 32 
 
 1.12 
 
 69 
 
 2.41 
 
 600 
 
 21.00 
 
 33 
 
 1.15 
 
 70 
 
 2.45 
 
 700 
 
 24.50 
 
 34 
 
 1.19 
 
 71 
 
 2.48 
 
 800 
 
 28.00 
 
 35 
 
 1.22 
 
 72 
 
 2.52 
 
 900 
 
 31.50 
 
 36 
 
 1.26 
 
 73 
 
 2.55 
 
 1000 
 
 35.00 
 
 37 
 
 1.29 
 
 74 
 
 2.59 
 
 
 
 Calculation for six months. 
 T3661
 
 DISTRIBUTION OF EARNINGS. 
 
 7i per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .04 
 
 38 
 
 1.38 
 
 75 
 
 2.72 
 
 2 
 
 .07 
 
 39 
 
 1.41 
 
 76 
 
 2.75 
 
 3 
 
 .11 
 
 40 
 
 1.45 
 
 77 
 
 2.79 
 
 4 
 
 .14 
 
 41 
 
 1.49 
 
 78 
 
 2.83 
 
 5 
 
 .18 
 
 42 
 
 1.52 
 
 79 
 
 2.86 
 
 6 
 
 .22 
 
 43 
 
 1.56 
 
 80 
 
 2.90 
 
 7 
 
 .25 
 
 44 
 
 1.59 
 
 81 
 
 2.94 
 
 8 
 
 .29 
 
 45 
 
 1.63 
 
 82 
 
 2.97 
 
 9 
 
 .33 
 
 46 
 
 1.67 
 
 83 
 
 3.01 
 
 10 
 
 .36 
 
 47 
 
 1.70 
 
 84 
 
 3.04 
 
 11 
 
 .40 
 
 48 
 
 1.74 
 
 85 
 
 3.08 
 
 12 
 
 .43 
 
 49 
 
 1.78 
 
 86 
 
 3.12 
 
 13 
 
 A" 
 
 50 
 
 1.81 
 
 87 
 
 3.15 
 
 14 
 
 .51 
 
 51 
 
 1.85 
 
 88 
 
 3.19 
 
 15 
 
 .54 
 
 52 
 
 1.88 
 
 89 
 
 3.23 
 
 16 
 
 .58 
 
 53 
 
 1.92 
 
 90 
 
 3.26 
 
 17 
 
 .62 
 
 54 
 
 1.96 
 
 91 
 
 3.30 
 
 18 
 
 .65 ' 
 
 55 
 
 1.99 
 
 • 92 
 
 3.33 
 
 19 
 
 .69 
 
 56 
 
 2.03 
 
 93 
 
 3.37 
 
 20 
 
 .72 
 
 57 
 
 2.07 
 
 94 
 
 3.41 
 
 21 
 
 .76 
 
 68 
 
 2.10 
 
 95 
 
 3.44 
 
 22 
 
 .80 
 
 59 
 
 2.14 
 
 96 
 
 3.48 
 
 23 
 
 .83 
 
 60 
 
 2.17 
 
 97 
 
 3.52 
 
 24 
 
 .87 
 
 61 
 
 2.21 
 
 98 
 
 3.55 
 
 25 
 
 .91 
 
 62 
 
 2.25 
 
 99 
 
 3.59 
 
 26 
 
 .94 
 
 63 
 
 2.28 
 
 
 
 27 
 
 .98 
 
 64 
 
 2.32 
 
 100 
 
 3.62 
 
 28 
 
 1.01 
 
 65 
 
 2.36 
 
 200 
 
 7.25 
 
 29 
 
 1.05 
 
 66 
 
 2.39 
 
 300 
 
 10.87 
 
 80 
 
 1.09 
 
 67 
 
 2.43 
 
 400 
 
 14.50 
 
 31 
 
 1.12 
 
 68 
 
 2.46 
 
 500 
 
 18.12 
 
 32 
 
 1.16 
 
 69 
 
 2.50 
 
 600 
 
 21.75 
 
 33 
 
 1 .30 
 
 70 
 
 2.54 
 
 700 
 
 25. .",7 
 
 34 
 
 1.23 
 
 71 
 
 2.57 
 
 800 
 
 29.00 
 
 35 
 
 1.27 1 
 
 72 
 
 2.61 
 
 900 
 
 32.62 
 
 36 
 
 1.30 | 
 
 73 
 
 2.65 
 
 1000 
 
 :u;.25 
 
 37 
 
 1.34 | 
 
 74 
 
 2.68 
 
 
 
 Calculation for six months. 
 [.107]
 
 CHAPTER XXII. 
 
 7.V per cont table. 
 
 Oollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Oollars. 
 
 Interest. 
 
 1 
 
 .04 
 
 38 
 
 1.42 
 
 75 
 
 2.81 
 
 2 
 
 .07 
 
 39 
 
 L.46 
 
 76 
 
 2.85 
 
 3 
 
 .11 
 
 40 
 
 1.50 
 
 77 
 
 2.89 
 
 4 
 
 .15 
 
 41 
 
 1.54 
 
 78 
 
 2.92 
 
 5 
 
 .19 
 
 4:> 
 
 1.57 
 
 79 
 
 2.9.1 
 
 6 
 
 .32 
 
 43 
 
 1.61 
 
 80 
 
 3.00 
 
 7 
 
 .26 
 
 44 
 
 1.65 
 
 81 
 
 3.04 
 
 8 
 
 .30 
 
 45 
 
 1.69 
 
 82 
 
 3.07 
 
 9 
 
 .34 
 
 46 
 
 1.72 
 
 83 
 
 3.11 
 
 10 
 
 .m 
 
 47 
 
 1.76 
 
 84 
 
 3.15 
 
 11 
 
 .41 
 
 48 
 
 1.80 
 
 85 
 
 3.19 
 
 12 
 
 .45 
 
 49 
 
 1.84 
 
 86 
 
 3.22 
 
 13 
 
 .49 
 
 50 
 
 1.87 
 
 87 
 
 3.26 
 
 14 
 
 .52 
 
 51 
 
 1.91 
 
 88 
 
 3.30 
 
 15 
 
 .56 
 
 52 
 
 1.95 
 
 89 
 
 3.34 
 
 16 
 
 .60 
 
 53 
 
 1.99 
 
 90 
 
 3.37 
 
 17 
 
 .64 
 
 54 
 
 2.02 
 
 91 
 
 3.41 
 
 18 
 
 .W 
 
 55 
 
 2.06 
 
 92 
 
 3.45 
 
 19 
 
 .71 
 
 56 
 
 2.10 
 
 93 
 
 3.49 
 
 20 
 
 .75 
 
 57 
 
 2.14 
 
 94 
 
 3.52 
 
 21 
 
 .79 
 
 58 
 
 2.17 
 
 95 
 
 3.56 
 
 22 
 
 .82 
 
 59 
 
 2.21 
 
 96 
 
 3.60 
 
 23 
 
 .86 
 
 60 
 
 2.25 
 
 97 
 
 3.64 
 
 24 
 
 .90 
 
 61 
 
 2.29 
 
 98 
 
 3.67 
 
 25 
 
 .94 
 
 62 
 
 2.32 
 
 99 
 
 3.71 
 
 26 
 
 .97 
 
 63 
 
 2.36 
 
 
 
 27 
 
 1.01 
 
 64 
 
 2.40 
 
 100 
 
 3.75 
 
 28 
 
 1.05 
 
 65 
 
 2.44 
 
 200 
 
 7.50 
 
 29 
 
 1.09 
 
 66 
 
 2.47 
 
 300 
 
 11.25 
 
 30 
 
 1.12 
 
 67 
 
 2.51 
 
 400 
 
 15.00 
 
 31 
 
 1.16 
 
 68 
 
 2.55 
 
 500 
 
 18.75 
 
 32 
 
 1.20 
 
 69 
 
 2.59 
 
 600 
 
 22.50 
 
 33 
 
 1.24 
 
 70 
 
 2.62 
 
 700 
 
 26.25 
 
 34 
 
 1.27 
 
 71 
 
 2.66 
 
 800 
 
 30.00 
 
 35 
 
 1.31 
 
 72 
 
 2.70 
 
 900 
 
 33.75 
 
 36 
 
 1.35 
 
 73 
 
 2.74 
 
 iOOO 
 
 37.50 
 
 37 
 
 1.39 
 
 74 
 
 2.77 
 
 I 
 
 
 Calculation for six months. 
 [3681
 
 DISTRIBUTION OF EARNINGS. 
 
 7| per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .04 
 
 38 
 
 1.47 
 
 75 
 
 2.91 
 
 2 
 
 .08 
 
 39 
 
 1.51 
 
 76 
 
 2.94 
 
 3 
 
 .12 
 
 40 
 
 1.55 
 
 77 
 
 2.98 
 
 4 
 
 .15 
 
 41 
 
 1.59 
 
 78 
 
 3.02 
 
 5 
 
 .19 
 
 42 
 
 1.63 
 
 79 
 
 3.06 
 
 6 
 
 .23 
 
 43 
 
 1.67 
 
 80 
 
 3.10 
 
 7 
 
 .27 
 
 44 
 
 1.70 
 
 81 
 
 3.14 
 
 8 
 
 .31 
 
 45 
 
 1.74 
 
 82 
 
 3.18 
 
 9 
 
 .35 
 
 46 
 
 1.78 
 
 83 
 
 3.22 
 
 10 
 
 .39 
 
 47 
 
 1.82 
 
 84 
 
 3.25 
 
 11 
 
 .43 
 
 48 
 
 1.86 
 
 85 
 
 3.29 
 
 12 
 
 .46 
 
 49 
 
 1.90 
 
 86 
 
 3.33 
 
 13 
 
 .50 
 
 50 
 
 1.94 
 
 87 
 
 3.37 
 
 14 
 
 .54 
 
 51 
 
 1.98 
 
 88 
 
 3.41 
 
 15 
 
 .58 
 
 52 
 
 2.01 
 
 89 
 
 3.45 
 
 16 
 
 .62 
 
 53 
 
 2.05 
 
 90 
 
 3.49 
 
 17 
 
 .66 
 
 54 
 
 2.09 
 
 91 
 
 3.53 
 
 18 
 
 .70 
 
 55 
 
 2.13 
 
 92 
 
 3.56 
 
 19 
 
 .74 
 
 56 
 
 2.17 
 
 93 
 
 3.60 
 
 20 
 
 .77 
 
 57 
 
 2.21 
 
 94 
 
 3.64 
 
 21 
 
 .81 
 
 58 
 
 2.25 
 
 95 
 
 3.68 
 
 22 
 
 .85 
 
 59 
 
 2.29 
 
 96 
 
 3.72 
 
 23 
 
 .89 
 
 60 
 
 2.32 
 
 97 
 
 3.76 
 
 24 
 
 .93 
 
 61 
 
 2.36 
 
 98 
 
 3.80 
 
 25 
 
 .97 
 
 62 
 
 2.40 
 
 99 
 
 3.84 
 
 26 
 
 1.01 
 
 63 
 
 2.44 
 
 
 
 27 
 
 1.05 
 
 64 
 
 2.48 1 
 
 100 
 
 3.87 
 
 2H 
 
 1.08 
 
 65 
 
 2.52 
 
 200 
 
 7.75 
 
 29 
 
 1.12 
 
 66 
 
 2.56 
 
 300 
 
 11.62 
 
 30 
 
 1.16 
 
 67 
 
 2.60 
 
 400 
 
 15.50 
 
 31 
 
 1.20 
 
 68 
 
 2.r»:{ 
 
 500 
 
 19.37 
 
 32 
 
 1.21 
 
 69 
 
 2.67 
 
 600 
 
 23.25 
 
 33 
 
 1.28 
 
 70 
 
 2.71 
 
 70C 
 
 27.12 
 
 3<* 
 
 1 .32 
 
 71 
 
 2.75 
 
 800 
 
 31.00 
 
 35 
 
 1.36 
 
 72 
 
 2.7«» 
 
 900 
 
 34.87 
 
 36 
 
 1.39 
 
 73 
 
 2.83 
 
 1000 
 
 38.75 
 
 37 
 
 L.43 
 
 74 
 
 2.87 
 
 
 
 Calculation for six months. 
 [369J
 
 CHAPTER XXII. 
 
 8 per cent table. 
 
 Dollar*. 
 
 Interest 
 
 Dollars. 
 
 Interest 
 
 Dollars. 
 
 Interest 
 
 1 
 
 .04 
 
 38 
 
 1.52 
 
 75 
 
 3.00 
 
 2 
 
 .08 
 
 39 
 
 1.56 
 
 76 
 
 3.04 
 
 3 
 
 .12 
 
 40 
 
 1.60 
 
 77 
 
 3.08 
 
 4 
 
 .16 
 
 41 
 
 1.64 
 
 78 
 
 3.12 
 
 5 
 
 .20 
 
 42 
 
 1.68 
 
 79 
 
 3.16 
 
 6 
 
 .24 
 
 43 
 
 1.72 
 
 80 
 
 3.20 
 
 7 
 
 .28 
 
 44 
 
 1.76 
 
 81 
 
 3.24 
 
 8 
 
 .32 
 
 45 
 
 1.80 
 
 82 
 
 3.28 
 
 9 
 
 .36 
 
 46 
 
 1.84 
 
 83 
 
 3.32 
 
 10 
 
 .40 
 
 47 
 
 1.88 
 
 84 
 
 3.36 
 
 11 
 
 .44 
 
 48 
 
 1.92 
 
 85 
 
 3.40 
 
 12 
 
 .48 
 
 49 
 
 1.96 
 
 86 
 
 3.44 
 
 13 
 
 .52 
 
 50 
 
 2.00 
 
 87 
 
 3.48 
 
 14 
 
 .56 
 
 51 
 
 2.04 
 
 88 
 
 3.52 
 
 15 
 
 .60 
 
 52 
 
 2.08 
 
 89 
 
 3.56 
 
 16 
 
 .64 
 
 53 
 
 2.12 
 
 90 
 
 3.60 
 
 17 
 
 .68 
 
 54 
 
 2.16 
 
 91 
 
 3.64 
 
 18 
 
 .72 
 
 55 
 
 2.20 
 
 92 
 
 3.68 
 
 19 
 
 .76 
 
 56 
 
 2.24 
 
 93 
 
 3.72 
 
 20 
 
 .80 
 
 57 
 
 2.28 
 
 94 
 
 3.76 
 
 21 
 
 .84 
 
 58 
 
 2.32 
 
 95 
 
 3.80 
 
 22 
 
 .88 
 
 59 
 
 2.36 
 
 96 
 
 3.84 
 
 23 
 
 .92 
 
 60 
 
 2.40 
 
 97 
 
 3.88 
 
 24 
 
 .96 
 
 61 
 
 2.44 
 
 98 
 
 3.92 
 
 25 
 
 1.00 
 
 62 
 
 2.48 
 
 99 
 
 3.96 
 
 26 
 
 1.04 
 
 63 
 
 2.52 
 
 
 
 27 
 
 1.08 
 
 64 
 
 2.56 
 
 100 
 
 4.00 
 
 28 
 
 1.12 
 
 65 
 
 2.60 
 
 200 
 
 8.00 
 
 29 
 
 1.16 
 
 66 
 
 2.64 
 
 300 
 
 12.00 
 
 30 
 
 1.20 
 
 67 
 
 2.68 
 
 400 
 
 16.00 
 
 31 
 
 1.24 
 
 68 
 
 2.72 
 
 500 
 
 20.00 
 
 32 
 
 1.28 
 
 69 
 
 2.76 
 
 600 
 
 24.00 
 
 33 
 
 1.32 
 
 70 
 
 2.80 
 
 700 
 
 28.00 
 
 34 
 
 1.36 
 
 71 
 
 2.84 
 
 800 
 
 32.00 
 
 35 
 
 1.40 
 
 72 
 
 2.88 
 
 900 
 
 36.00 
 
 36 
 
 1.44 
 
 73 
 
 2.92 
 
 1000 
 
 40.00 
 
 37 
 
 1.48 
 
 74 
 
 2.96 
 
 
 
 Calculation for six months. 
 [370]
 
 CHAPTER XXIII. 
 
 Distribution of Earnings — Serial Plan. 
 
 There are a number of plans in operation for the 
 distribution of profits. The amount of interest which a 
 member has in a building-, loan and savings association 
 is indicated by the number of shares which are held, the 
 age of the shares and the maturing value. Shares are 
 divided into various classes : installment or running 
 shares, prepaid shares and paid-up shares. A member 
 who makes weekly, monthly or other periodical subscrip- 
 tions for installment shares indicates the amount of 
 periodical payments he desires to make by the number of 
 shares for which he subscribes. These payments are con- 
 tinued until the installments and the profits on the shares 
 have caused them to reach their maturing or par value, 
 when they are wound up by returning to the non-borrow- 
 ing members the value of their shares in cash, and to the 
 borrowing members their mortgages and cancelled obli- 
 gations. Prepaid shares, known as partly paid up shares, 
 are issued by some associations at a fixed price per share 
 in advance. Such shares usually participate as fully in 
 the profits as the regular installment shares, and when 
 the amount originally paid in for such shares, together 
 with the dividends credited thereon, reaches the maturing 
 or par value, then such shares are matured, and are dis- 
 posed of ill the same manner as regular installment 
 shares. Some associations, instead of crediting all the 
 profits made on this class of shares, allow a fixed rate of 
 interest on the amount paid therefor at each dividend 
 period, which is paid in cash to the holder thereof. The 
 
 [371]
 
 CHAPTER XXIII. 
 
 interest is then deducted from the profits to which the 
 shares are entitled, and the balance is credited to the 
 shares, until such unpaid portion of the profits, added to 
 the amount originally paid, equals the maturing or pat- 
 value. 
 
 Division of Profits — Serial Plan.* 
 
 The purpose of the following calculations is to show 
 different methods of dividing ascertained gains between 
 series, and, of course, between the shares of a series. 
 
 The several columns represent : 
 
 Column A. — Payments at the beginning of each month beginning 
 
 with $1.00 and continuing until $144.00 have been paid in. 
 Column B. — These figures represent 1 per cent per annum on the 
 dues — payments, namely, for the average time the money is in- 
 vested. 
 Column C. — Average investment one share for one full month. 
 Column D. — This column of earning powers is arranged for the 
 convenience of societies issuing shares every three months. 
 
 The proper use of Columns B, C and D as earning powers will 
 produce like results. 
 
 All the above based on the exact average time the money has 
 been invested. 
 Column E.— This column is for societies issuing yearly series, and 
 while the figures do not represent the exact time of investment, 
 the use of them results in a short cut to the desired end. 
 Column F— This column is like Column E, but may be used for 
 societies issuing shares every 6 months. 
 
 The figures have been compiled for the use of secretaries who 
 may desire to use any one of the several means of ascertaining pro- 
 portional gains. 
 
 The rule is to multiply the number of shares in each series by 
 the number given in any one of the tables, B, C, D, E or F, for that 
 series, using the sum of these as the divisor into the known total 
 gain of the society. The total gain is obtained by subtracting the 
 liabilities from the assets — dues paid being treated as a liability. 
 This will give the multipliers, in the first example; .005 in the 
 second ; .03 in the third ; .3737 in the fourth, and .0934 in the fifth. 
 
 • Prepared by Michael J. Brown, Philadelphia, Pa. 
 
 13721
 
 DISTRIBUTION OF EARNINGS. 
 
 The one per centum for each series in Column B, or the average 
 investments in Column C, or the earning powers in Columns D, E 
 or F, are then to be multiplied by the number thus ascertained, to get 
 the division of gain to the series. The division to each share is 
 obtained by dividing the total gain of the series by the total number 
 of shares. 
 
 The figures given are based on actual time, namely: 
 
 $48 for 24$^ months =$1,176 for one month. Interest at six 
 per cent on $1,176 for one month = $5.88, or, at one per cent, one- 
 sixth of that amount— .98 as given in the table— see Columns A and 
 B, $48. 
 
 The examples that follow assume that the total gain of the so- 
 ciety under the conditions named is $179.40. This may be divided to 
 the series and the shares by any one of the tables B, C, D, E or F. 
 
 By the first three methods the division will be exact, and all will, 
 of course, agree, one with another. By E and F the division is only 
 approximately correct, and, therefore, these divisions do not agree 
 exactly with those made by tables B, C and D. E and F are pre- 
 ferred by some secretaries because they simplify the operation. 
 
 Keeping in mind the directions above given here are examples of 
 the processes : 
 
 KXAMPLE COLUMNS A AND B. 
 
 One Per 
 Payments Shares Centum 
 
 $36 00 30 X -555 = $16.65 X 6 = $99.90 
 
 24 00 40 X -250 = 10.00 X 6 - 60.00 
 
 12.00 50 X .065 = 3.25 X 6 = 19.50 
 
 $29.90 $179.40 
 
 Gain— $179.40 -r- 29.90 = 6. 
 
 Gain Gain 
 
 per Series Shares per Share 
 
 $99.90 -r- 30 = $3.33 
 60.00 •*■ 10 = 1.50 
 19.50 -f- 50 = .39 
 
 EXAMPLE COLUMNS A AND C. 
 
 Average 
 Payment* Share! 1 Month 
 
 |3fl fio 30 X $666 = $19,980 X .005 = $99.90 
 
 2400 40 X W0 = 12.000 X -005 = 60.00 
 
 12.00 50 78= 3.900 X -005 = 19.50 
 
 |85.8«" $179.40 
 
 Gain— $179.40 : 35.880 = .005. 
 Division to Shares as above. 
 
 [878] 
 
 25
 
 CHAPTER XXIII. 
 
 EXAMPLE COLUMNS A AND D. 
 
 Payments Powers Shares 
 
 136.00 Ill X 30 = $3,330 X .03 
 
 24.00 50 X 40 = 2,000 X .03 
 
 12.00 13 X 50 = 650 X .03 
 
 Division to 
 
 Gain— $179.40 
 Shares as above. 
 
 5,980 
 
 $5,980 
 .03. 
 
 : $99.90 
 : 60.00 
 : 19.50 
 
 $179.40 
 
 EXAMPLE COLUMNS A AND E. 
 Fractional Parts of Month Omitted. 
 
 Payments Powers Shares Total 
 
 $36.00 9 X 30 = $270 X .3737 
 
 24.00 4 X 40 = 160 X .3737 
 
 12 00 1X50= 50 X .3737 
 
 Gain- 
 
 
 
 $480 
 
 -$179.40 
 
 -f- 480 : 
 
 = .3737. 
 
 Gain 
 
 
 Gain 
 
 r Series 
 
 Shares per Share 
 
 $100.90 
 
 -f- 30 = 
 
 $3.36 
 
 59.70 
 
 -T- 40 = 
 
 1.49 
 
 18.69 
 
 -r- 50 = 
 
 .37 37 
 
 $100.90 
 59.79 
 18.69 
 
 $179.38 
 
 EXAMPLE COLUMNS A AND F. 
 
 Payments 
 
 $36.00 
 
 24 00 
 
 Powers Shares 
 
 36 X 30 = $1,080 X 
 
 16 X 40 = 640 X 
 
 .0934 = 
 .0934 = 
 .0934 = 
 
 = $100.90 
 = 59.79 
 
 12.00 
 
 4 X 50 = 200 X 
 
 = 18.69 
 
 
 $1,920 
 
 $179.38 
 
 
 Gain— $179.40 -f- 1,920 = .0934 
 
 
 
 
 Gain Gain 
 per Series Shares per Share 
 
 
 
 
 $100.90 -f- 30 = $3.36 
 59.70 -r- 40 = 1.49 
 18.69 -r- 50 = .37 37 
 
 
 
 [374]
 
 DISTRIBUTION OF EARNINGS. 
 
 Payments 
 
 A 
 $144 
 143 
 142 
 141 
 140 
 139 
 138 
 137 
 136 
 135 
 134 
 133 
 132 
 131 
 130 
 129 
 128 
 127 
 126 
 125 
 124 
 123 
 122 
 121 
 120 
 119 
 118 
 117 
 116 
 115 
 114 
 113 
 112 
 111 
 110 
 109 
 108 
 107 
 106 
 105 
 lOi 
 103 
 102 
 101 
 100 
 
 99 
 
 98 
 
 One per Cent, 
 per Annum 
 
 B 
 
 $8.70000 
 8.58000 
 8.46083 
 8.34250 
 8.22500 
 8.10833 
 7.99250 
 7.87750 
 7.76333 
 7.65000 
 7.53750 
 7.42583 
 7.31500 
 7.20500 
 7.09583 
 6.98750 
 6.88000 
 6.77333 
 6.66750 
 6.56250 
 6.45833 
 6.3.5500 
 6.25250 
 6.15083 
 6.05000 
 5.95000 
 5.85083 
 5.75250 
 5.65500 
 5.55833 
 5.46250 
 5.36750 
 5.27333 
 5.18000 
 5.08750 
 4.99582 
 4.90500 
 4.81500 
 4.72583 
 4.63750 
 •1.55000 
 4. »<;:}:s:s 
 4.:'.7750 
 4.29-'.'.') 
 4.21250 
 4.12500 
 4.042.50 
 
 EARNING POWERS. 
 
 Average Investment 
 for One Month 
 
 c 
 
 $10,440 
 10.296 
 10,153 
 10,011 
 9.870 
 9,730 
 9,591 
 9,453 
 9.316 
 9.180 
 9,045 
 8,911 
 8,778 
 8,646 
 8,515 
 8,385 
 8,256 
 8,128 
 8,001 
 7.875 
 7,750 
 7,626 
 7,503 
 7,381 
 7,260 
 7,140 
 7,021 
 6,903 
 6,786 
 6,670 
 6,555 
 6,441 
 6,328 
 6,216 
 6,105 
 5,995 
 5,886 
 5,778 
 5,671 
 5,565 
 5,460 
 5^66 
 5,253 
 5,151 
 5,050 
 4,950 
 4,851 
 
 Calculated Powers- 
 
 D E 
 
 1740 
 
 1716 
 
 1688^ 
 
 1668H 
 
 1645 
 
 1625 
 
 1598 1 / 
 
 1530 
 
 1463 
 
 1397^ 
 
 133354 
 
 1271 
 
 1210 
 
 115054 
 
 1092^ 
 
 1036 
 981 
 927 y 2 
 875/, 
 825 
 
 144 
 
 F 
 576 
 
 559 
 
 121 
 
 484 
 
 441 
 
 100 
 
 400 
 
 361 
 
 81 
 
 324 
 
 289 
 
 [375]
 
 CHAPTER XXIII. 
 
 
 One per Cent. 
 
 Average Investment 
 
 
 Payments 
 
 per Annum 
 
 for One Month 
 
 
 A 
 
 B 
 
 c 
 
 I) 
 
 * 97 
 
 18,90068 
 
 $4,753 
 
 
 96 
 
 3,88000 
 
 4,656 
 
 776 
 
 !>.-, 
 
 3.80000 
 
 1,560 
 
 
 9-1 
 
 3.72083 
 
 4.465 
 
 
 !':: 
 
 3.64250 
 
 4,371 
 
 728*4 
 
 ;)■> 
 
 3 56500 
 
 4.278 
 
 
 9? 
 
 3.48833 
 
 4.186 
 
 
 00 
 
 3.41250 
 
 4,095 
 
 682tf 
 
 89 
 
 3.33750 
 
 •1.005 
 
 
 88 
 
 3.26333 
 
 3,916 
 
 
 87 
 
 3.19000 
 
 3,828 
 
 638 
 
 86 
 
 3.11750 
 
 3,741 
 
 
 85 
 
 3.04583 
 
 3,655 
 
 
 84 
 
 2.97500 
 
 3,570 
 
 595 
 
 83 
 
 2.90500 
 
 3,486 
 
 
 82 
 
 2.83583 
 
 3,403 
 
 
 81 
 
 2.76750 
 
 3,321 
 
 553*4 
 
 80 
 
 2.70000 
 
 3,240 
 
 
 79 
 
 2.63333 
 
 3,160 
 
 
 78 
 
 2.56750 
 
 3,081 
 
 513J4 
 
 77 
 
 2.50250 
 
 3,003 
 
 
 76 
 
 2.43833 
 
 2,926 
 
 
 75 
 
 2.37500 
 
 2,850 
 
 475 
 
 74 
 
 2.31250 
 
 2,775 
 
 
 73 
 
 2.25083 
 
 2,701 
 
 
 72 
 
 2.19000 
 
 2,628 
 
 438 
 
 71 
 
 2.13000 
 
 2,556 
 
 
 70 
 
 2.07083 
 
 2.485 
 
 
 69 
 
 2.01250 
 
 2,415 
 
 402 J4 
 
 68 
 
 1.95500 
 
 2,346 
 
 
 67 
 
 1.89833 
 
 2.278 
 
 
 66 
 
 1.84250 
 
 2,211 
 
 36834 
 
 65 
 
 1.78750 
 
 2,145 
 
 
 64 
 
 1.73333 
 
 2,080 
 
 
 63 
 
 1.08000 
 
 2,016 
 
 336 
 
 62 
 
 1.62750 
 
 1,953 
 
 
 61 
 
 1.57583 
 
 1,891 
 
 
 60 
 
 1.52500 
 
 1,830 
 
 305 
 
 59 
 
 1.47500 
 
 1,770 
 
 
 58 
 
 1.42583 
 
 1,711 
 
 
 57 
 
 1.37750 
 
 1,653 
 
 275H 
 
 56 
 
 1.33000 
 
 1,596 
 
 
 55 
 
 1.28333 
 
 1,540 
 
 
 54 
 
 1.23750 
 
 1,485 
 
 247^ 
 
 53 
 
 1.19250 
 
 1,431 
 
 
 52 
 
 1.14833 
 
 1,378 
 
 
 51 
 
 1.10500 
 
 1,326 
 
 221 
 
 50 
 
 1.06333 
 
 1,276 
 
 
 49 
 
 1.02083 
 
 1,225 
 
 
 Calculated Powers 
 
 E F 
 
 64 
 
 256 
 
 225 
 
 49 
 
 190 
 
 169 
 
 36 
 
 144 
 
 121 
 
 25 
 
 100 
 
 81 
 
 [3761
 
 DISTRIBUTION OF EARNINGS. 
 
 lyments 
 
 per Annum 
 
 for One Mon 
 
 A 
 
 B 
 
 . c 
 
 48 
 
 $0.98000 
 
 $1,176 
 
 47 
 
 .94000 
 
 1.128 
 
 46 
 
 .90083 
 
 1,081 
 
 45 
 
 .86250 
 
 1.035 
 
 44 
 
 .82500 
 
 990 
 
 43 
 
 .78833 
 
 946 
 
 42 
 
 .75250 
 
 903 
 
 41 
 
 .71750 
 
 861 
 
 40 
 
 .68333 
 
 820 
 
 39 
 
 .115000 
 
 780 
 
 38 
 
 .61750 
 
 741 
 
 37 
 
 .58583 
 
 703 
 
 36 
 
 .55500 
 
 666 
 
 35 
 
 .52500 
 
 630 
 
 34 
 
 .49583 
 
 595 
 
 33 
 
 .46750 
 
 561 
 
 32 
 
 .44000 
 
 528 
 
 31 
 
 .41333 
 
 496 
 
 30 
 
 .38750 
 
 465 
 
 29 
 
 .36250 
 
 435 
 
 28 
 
 .33833 
 
 406 
 
 27 
 
 .31500 
 
 378 
 
 26 
 
 .29250 
 
 351 
 
 25 
 
 .27083 
 
 325 
 
 24 
 
 .25000 
 
 300 
 
 23 
 
 .23000 
 
 276 
 
 22 
 
 .21083 
 
 252 
 
 21 
 
 .10250 
 
 231 
 
 20 
 
 .17500 
 
 210 
 
 19 
 
 .15833 
 
 190 
 
 18 
 
 .14250 
 
 171 
 
 17 
 
 .12750 
 
 153 
 
 16 
 
 .11333 
 
 136 
 
 15 
 
 .10000 
 
 120 
 
 14 
 
 .08750 
 
 105 
 
 13 
 
 .07583 
 
 91 
 
 12 
 
 .06500 
 
 78 
 
 11 
 
 .05600 
 
 66 
 
 10 
 
 .045 
 
 55 
 
 !) 
 
 .n375U 
 
 15 
 
 8 
 
 .03000 
 
 36 
 
 7 
 
 .02333 
 
 28 
 
 6 
 
 .(•1750 
 
 21 
 
 6 
 
 .012M i 
 
 15 
 
 1 
 
 .00833 
 
 10 
 
 8 
 
 00600 
 
 6 
 
 2 
 
 .00250 
 
 3 
 
 1 
 
 .00083 
 
 1 
 
 -Calculated Powers- 
 
 D E F 
 196 16 64 
 
 172J4 
 
 150^ 49 
 
 130 
 
 111 9 36 
 
 93^ 
 
 77J^ 25 
 
 63 
 
 50 4 16 
 
 38H 
 
 28^ 9 
 
 20 
 
 13 1 4 
 
 [377|
 
 CHAPTER XXIII. 
 
 EXAMPLE. 
 
 At 3 per centum per annum on one share of $1.00 each at the end 
 of the -18th month— .98000 X 3 = $2.94. See $48.00— Columns A 
 and B. 
 
 At 4 per centum at the end of the 64th month— $1.73333 X 4 = 
 $6.93. See $64.00— Columns A and B. 
 
 At 2 per centum per annum at the end of the 6th month — .01750 
 X 2 = .03J4. See $6.00— Columns A and B. 
 
 Rules and Tables Exemplifying the Division of Profits Under 
 Dexter's Rule and the Partnership Rule. 
 
 Application of "Dexter's Rule." 
 Rule. 
 
 1. From the profits at the date of making a report, deduct the 
 profits on all shares in all series, as shown by the last preceding 
 report, the remainder will be the net profits for the current term. 
 
 2. To find the capital for the current term, multiply the value per 
 share in each series, as shown by the last preceding report by the num- 
 ber of shares in force in said scries at the date of making the current 
 report, to the sum of these products add the equalized dues for the 
 current term, the result will be the total capital for the current term. 
 
 3. To find the per cent of profit for the current term, divide 
 the net profits for the current term by the total capital for the cur- 
 rent term. 
 
 4. To find the total capital of one share in each series, add to the 
 value per share as shown by the last preceding statement, the equalized 
 dues for the current term. The capital account for the series issued 
 during or at the commencement of the current term will be the 
 equalized dues for the current term. 
 
 5. To find the profits per share, multiply the total capital per 
 shares for the current term by the per cent of profit for the cer- 
 rent term. 
 
 Note. — The phrase "current term" as here used is intended to 
 mean the term or period for which the report is being made, whether 
 annually, semi-annually, quarterly or otherwise. 
 
 Note. — The "equalized dues for the current term" is such a sum 
 as invested for the whole time will equal the investment of the 
 
 [378]
 
 DISTRIBUTION OF EARNINGS. 
 
 monthly dues on one share, from month to month, for the same 
 time and is the quotient obtained by dividing the sum of the months 
 by the dues per share for the current term. 
 
 For the following tables the equalized dues is obtained thus : 
 
 $1 00 for 12 months 
 
 1 00 for 11 months 
 
 1 00 for 10 months 
 
 1 00 for 9 months 
 
 1 00 for 8 months 
 
 1 00 for 7 months 
 
 1 00 for 6 months 
 
 1 00 for 5 months 
 
 1 00 for 4 months 
 
 1 00 for 3 months 
 
 1 00 for 2 months 
 
 1 00 for 1 month 
 
 $12 00 for 78 months 
 
 78 H- 12 = $6.50 equalized dues. 
 
 $1 00 for 11 months 
 
 1 00 for 10 months 
 
 1 00 for 9 months 
 
 1 00 for 8 months 
 
 1 00 for 7 months 
 
 1 00 for 6 months 
 
 1 00 for 5 months 
 
 1 00 for 4 months 
 
 1 00 for 3 months 
 
 1 00 for 2 months 
 
 1 00 for 1 month 
 
 $11 00 for 66 months 
 
 66 -7- 11 = $6.00 equalized dues. 
 
 FIRST ANNUAL DISTRIBUTION. 
 
 Profits at end of first year $73.95 
 
 $73.05 profits H- 100 shares =: profit of 73 cents per share. 
 
 General Statement. 
 
 Dues. Profits. Totals. 
 
 100 shares at $12.00 per share $1,200 00 
 
 100 shares at .73 per share $73 00 $1,273 00 
 
 $1,200 00 $73 00 $1,273 00 
 
 Undivided profits 95 65 
 
 $1,200 00 $73 95 $1,273 95 
 
 SECOND ANNUAL DISTRIBUTION. 
 
 Total profits at end of second year 
 
 From which deduct as follows: 
 
 Profits on 100 shares, Series 1, at 73 cents 
 
 Balance, or net profits for year 
 
 $869 28 
 
 73 00 
 
 $296 28 
 
 Capital Account. 
 
 100 shares, Series 1, at $12.73 $1,273 00 
 
 100 shares, Scries 2 
 
 200 shares at $6.50 per share, equalized dues 1,300 00 
 
 Total capital participating in current year profits $3,678 00 
 
 [870]
 
 CHAPTER XXIII. 
 
 $200. 28 (profits for current year) 
 11.51 per cent of profit. 
 
 Distribution of Profits. 
 
 $25.73 (capital for current year) gives 
 
 Items. Series 
 
 ValttC per share at last report... 
 Kqualized dues for current year. 
 
 Total capital 
 
 Multiplied by per cent of profit. 
 
 1 
 
 $12 73 
 C 60 
 
 2 
 
 $0 60 
 
 $19 28 
 11 51 
 
 $ 6 60 
 11 51 
 
 Gives profit per share of. 
 
 $2 21 
 
 $0 74 
 
 / 'alue of Shares, one Shares in Each Series. 
 
 Items. 
 Value of last report.... 
 Profit for current year . 
 Dues for current year. 
 
 Present value 
 
 Total dues paid per share. 
 
 Series 
 
 Total profits. 
 
 $12 73 
 
 2 21 
 
 12 00 
 
 $ 74 
 12 00 
 
 $26 94 
 24 00 
 
 $12 74 
 12 00 
 
 $2 94 
 
 $0 74 
 
 General Statement. 
 
 Dues. 
 
 100 shares, Series 1, at $24.00 $2,400 00 
 
 100 shares, Series 1, at 2.94 
 
 100 shares, Series 2, at 12.00 1,200 00 
 
 100 shares, Series 2, at .74 
 
 Undivided balance. 
 
 $3,600 00 
 
 Profits. Totals. 
 $294 66 $2,694 66 
 "74 '66 1,274 '66 
 
 $368 00 $3,968 00 
 1 28 1 28 
 
 $3,600 00 $369 28 $3,969 28 
 
 THIRD ANNUAL DISTRIBUTION. 
 
 Total profits to date of this statement. 
 Prom which deduct as follows: 
 
 100 shares, Series 1, at $2.94.... 
 
 100 shares, Series 2, at .74 
 
 Balance, or net profits for current year. 
 
 $294 00 
 74 00 
 
 $1,050 48 
 
 368 00 
 $682 48 
 
 Capital Account. 
 
 100 shares, Series 1, at $26.94 $2,694 00 
 
 100 shares, Series 2. at 12.74 1,274 00 
 
 100 shares, Series 3 
 
 300 shares at $6.50 per share, equalized dues 
 
 Total capital participating in current year's profit. 
 
 T380I 
 
 $3,968 00 
 1,950 00 
 
 $5,918 00
 
 DISTRIBUTION OF EARNIiNGS. 
 
 Distribution of Profits. 
 
 $682.48 (profits for current year) -4- $5,918.00 (capital for current' year) 
 gives 11.58 per cent of profit. 
 
 Items. Series 
 
 Value per share at last report.... 
 Equalized dues for current year.. 
 
 1 
 
 2 
 
 3 
 
 $26 94 
 
 $12 74 
 
 . . . . V . . . 
 
 6 50 
 
 6 50 
 
 $6 60 
 
 Total capital $33 44 $19 24 -$6 50 
 
 Multiplied by per cent of profit 11 53 11 o3 It oJ 
 
 Gives profit per share of $3 85 $2 21 $0 74 
 
 Value of Shares, one Share in Each Series. 
 
 1 
 
 2 
 
 26 94 
 
 ?12 74 
 
 3 S."> 
 
 2 21 
 
 12 00 
 
 12 00 
 
 Items. Series 
 
 Value at last report 
 
 Profit for current year 3 8.) i. 21 $80 74 
 
 Dues for current year 13 00 12 00 13 00 
 
 Present value $42 79 $26 95 $12 74 
 
 Total dues paid per share 36 00 24 00 12 00 
 
 Total profits $6 79 $2 95 $0 74 
 
 General Statement. 
 
 Dues. Profits. Totals. 
 
 100 shares, Series 1, at $36.00 $3,600 00 
 
 100 shares, Series 1, at 6.79 $679 00 $4,279 00 
 
 100 shares, Series 2, at 24.00 2,400 0(1 
 
 100 shares, Series 2, at 2 95 295 00 2,695 00 
 
 100 shares, Scries 3, at 12.00 1,200 00 
 
 100 shares, Series 3, at .74 :- . .. . 74 00 1,274 00 
 
 $7,200' 00 $1,048 00 $8,24» 00 
 
 Undivided profits 3 48 2 48 
 
 $7,200 00 $1,050 48 $8,250 48 
 FOURTH ANNUAL DISTRIBUTION. 
 
 Total profits at end of fourth year $2,301 0j 
 
 From which deduct as follows: 
 
 Profits on 100 shares, Series 1, at $6.79 $C79 00 
 
 Profits on 100 shares. Series 2, at 2.95 29."> 00 
 
 Profits on 100 shares, Series 8, at .74 74 00 
 
 1,048 00 
 
 Balance, or net profit- for current year $1,253 05 
 
 ( apital Account. 
 
 loo shares, Series 1, at $42.79 $1,279 oo 
 
 100 than i, Series 8, at 88.96 • t,9M oo 
 
 100 sharrs, Series 8, at 12.74 1.274 Ofl 
 
 100 shared, Series 4 
 
 $8,:!48 00 
 
 400 share*, at $fl..">0 prr share, equalized dues 2,600 00 
 
 Total Capital participating in current year profits. $10.8-18 00
 
 CHAPTER XXIII. 
 
 Distribution of 1'rofiis. 
 
 $1,263.05 (profits for current year) — $10,848 00 (capital for current year) 
 gives 1 1.5 6 per cent of gain. 
 
 Items. Series 1 2 3 4 
 
 Value per share at last report... $42 79 $20 95 $12 74 
 
 Equalized dues for current year.. r>0 6 50 6 60 $6 50 
 
 Total capital $49 29 $33 46 $19 24 $8 50 
 
 Multiplied by per cent of profit.. 11 00 11 66 11 55 11 65 
 
 1 
 
 $43 79 
 
 5 69 
 
 12 00 
 
 2 
 $26.95 
 3 86 
 12 00 
 
 3 
 $12 74 
 2 22 
 12 00 
 
 4 
 
 $ 75 
 12 00 
 
 $60 43 
 48 00 
 
 $42 81 
 36 00 
 
 $26 96 
 24 00 
 
 $12 75 
 12 00 
 
 Gives profit per share of $5 69 $3 86 $2 22 $0 76 
 
 Value of Shares, one Share in Each Series. 
 
 Items. Series 
 
 Value at last report 
 
 Profit for current year 
 
 Dues for current year 
 
 Present value 
 
 Total dues paid per share 
 
 Total profits $13 48 $6 81 $2 96 $0 75 
 
 General Statement. 
 
 Dues. Profits. Totals. 
 
 100 shares. Series 1. at $48.00 $4,800 00 
 
 100 shares, Series 1. at 12.48 $1,248 00 $6,048 00 
 
 100 shares, Series 2, at 36.00 3,600 00 
 
 100 shares, Series 2, at 6.81 68100 4,28100 
 
 100 shares, Series 3, at 24.00 2,400 00 
 
 100 shares. Series 3, at 2.96 296 00 2,696 00 
 
 100 shares, Series 4, at 12.00 1,200 00 
 
 100 shares, Series 4, at .75 75 00 1,275 00 
 
 $12,000 00 $2,300 00 $14,300 00 
 Undivided profits 1 05 1 06 
 
 $12,000 00 $2,301 05 $14,301 05 
 
 FIFTH ANNUAL DISTRIBUTION. 
 
 Total profits at end of fifth year $4,325 75 
 
 From which deduct as follows: 
 
 Profits on 100 shares. Series 1, at $12.48 $1,248 00 
 
 Profits on 100 shares, Series 2, at 6.81 681 00 
 
 Profits on 100 shares, Series 8, at 2.96 296 00 
 
 Profits on 100 shares, Series 4, at .75 75 00 
 
 2,300 00 
 
 Balance or net profits for current year $2,026 75 
 
 [3821
 
 DISTRIBUTION OF EARNINGS. 
 
 Capital Account. 
 
 100 shares, Series 1, at $60.48 $6,048 00 
 
 100 shares, Series 2, at 42.81 4,281 00 
 
 100 shares, Series 3, at 26.96 2,696 00 
 
 100 shares, Series 4, at 12.76 1,275 00 
 
 100 shares, Series 5 
 
 $14,300 00 
 
 500 shares, at $6.50 per share, equalized does 3,250 00 
 
 Total capital participating in current year profits $17,550 00 
 
 Distribution of Profits. 
 
 $2,025.75 (profits for current year) -r- $17,650.00 (capital for current year) 
 gives 11.54 per cent of gain. 
 
 Items. Series 1 2 3 4 5 
 
 Value per share at last report $60 48 $42 81 $26 96 $12 75 
 
 Equalized dues for current year 6 50 6 50 6 60 6 50 6 60 
 
 Total capital $66 98 $49 31 $33 46 $19 25 $ 6 50 
 
 Multiplied by per cent of profit 11 64 11 54 11 54 11 54 11 54 
 
 Gives profit per share of $7 72 $5 69 $3 86 $2 22 $0 75 
 
 Value of Shares, one Share in Each Series. 
 
 Items. Series 1 2 3 4 6 
 
 Value at last report $60 48 $42 81 $26 96 $12 75 
 
 Profit for current year 7 72 5 69 3 86 2 22 $ 75 
 
 Dues for current year 12 00 12 00 12 00 12 00 12 00 
 
 Present value $80 20 $60 60 $42 82 $26 97 $12 76 
 
 Total dues paid per share 60 00 48 00 36 00 24 00 12 00 
 
 Total profits $20 20 $12 60 $6 86 $2 97 $0 75 
 
 General Statement. 
 
 Dues. Profits. Totals. 
 
 100 shares, Series 1, at $60.00 $6,000 00 
 
 100 shares, Series 1, at 20.20 
 
 100 shares, Series 2, at 48.00 
 
 100 shares, Series 2 at 12.50 
 
 100 shares, Series 3, at 36.00 
 
 100 shares, Series 8, at 6.82 
 
 100 shares, Scries 4, at 24.00 
 
 100 shares, Series 4, at 2.97 
 
 100 shares, Series 5, at 12.00 
 
 100 shares. Series 6, at .75 
 
 Undivided profits. 
 
 4,800 
 
 0(1 
 
 3,600 
 
 00 
 
 2,400 
 
 00 
 
 1,200 
 
 00 
 
 
 $18,000 
 
 00 
 
 
 $2,020 00 
 
 $8,020 00 
 
 1,250 00 
 
 6.050 00 
 
 682 00 
 
 4,282 00 
 
 297 00 
 
 2,697 00 
 
 76 00 
 
 1,275 00 
 
 $4,324 00 
 1 76 
 
 $22,324 (10 
 1 75 
 
 $18,800 00 $4,325 76 $22,326 75 
 
 SIXTH ANNUAL DI STRIP, UTION. 
 
 Total profits at end of 5 years and 11 months 
 
 From which deduct M follows: 
 
 Profits on 100 shares. Series 1, at $20.20 %: 
 
 Profits on 100 shai.s, Series 2, at 12.60 
 
 Profits on 100 shares, Series 8, at 6 82 
 
 Profits on 100 shares, Series 4, at 2.07 
 
 Profits on 100 shares. Series 6, at .76 
 
 
 
 $7,057 
 
 31 
 
 ,2,020 
 
 00 
 
 
 
 1,250 
 
 00 
 
 
 
 682 
 
 00 
 
 
 
 297 
 
 00 
 
 
 
 76 
 
 00 
 
 
 
 
 
 4,324 
 
 00 
 
 
 
 Balance or net profits for current term $2,739 31 
 
 !383|
 
 CHAPTER Will. 
 
 C a pi tat Account. 
 
 100 shares, Scries I, at tylO.M $8,020 00 
 
 100 shares, Series t, at B0.50.< ii,o>0 00 
 
 106 shares, Series 3, at 42.82 4,282 00 
 
 100 shares. Scries 4, ;it 26.97 2,007 00 
 
 100 shares, Series .">, a( 12.?. r » 1,275 00 
 
 100 shares, Series 6 
 
 — -- . $22,324 00 
 
 BOO shares at $6.00 per share, equalized dues 3,000 00 
 
 Total capital participating in current term profits $25,924 00 
 
 Distribution of Profits. 
 
 $2,733.31 (profits for current term) -=- $26,924.00 (capital for current term) 
 gives 10.50 per cent of profit. 
 
 Items. Series . . 1 2 3 4 5 C 
 
 Value per share at last report. $60 20 $60 50 $42 82 $26 97 $12 75 
 
 Equalized dues for current year 
 
 (11 months) 6 00 6 00 00 00 6 00 6 00 
 
 Total capital $80 20 $66 50 $48 82 $32 97 $18 75 $ 6 00 
 
 Multiplied by per cent of profit 10 50 10 50 10 50 10 50 10 50 10 50 
 
 Gives profit per share of. $9 05 $0 08 $5 12 $3 46 $1 96 $0 63 
 
 Value of Shares, one Share in Each Series. 
 
 Items. Series 1 2 3 4 5 6 
 
 Value per share at last report. $80 20 $60 50 $42 82 $26 97 $12 75 
 
 Profit for current year 9 05 6 98 5 12 3 46 1 96 $ 63 
 
 Dues for current year 11 00 11 00 11 00 11 00 11 00 11 00 
 
 Present value $100 25 $78 48 $58 94 $41 43 $25 71 $11 63 
 
 Total dues paid per share... 71 00 59 00 47 00 35 00 23 00 11 00 
 
 Total profit per share... $29 25 $19 48 $11 94 $6 43 $2 71 $0 63 
 
 General Statement. 
 
 Dues. Profits. Totals. 
 
 100 shares, Series 1, at $71.00 $7,100 00 
 
 100 shares, Series I, at 29.26 $2,925 00 $10,025 00 
 
 100 shares, Series 2, at 59.00 5,900 00 
 
 100 shares, Series 2, at 19 48 1,948 00 7,848 00 
 
 100 shares, Series 3, at 47.00 4,700 00 
 
 100 shares, Series 3, at 11.94 1,194 00 5,894 00 
 
 100 shares. Scries 4, at 35.00 3,500 00 
 
 100 shares, Series 4, at 6.43 643 00 4,143 00 
 
 100 shares, Series 5, at 23.00 2,300 00 
 
 100 shares, Series ft, at 2.71 271 00 2,571 00 
 
 100 shares, Scries 6, at 11.00 1,100 00 
 
 100 shares, Series 6, at .63 ... , 63 00 1,163 00 
 
 Undivided profits. 
 
 $24,600 00 $7,057 31 $31,657 81 
 (3841
 
 DISTRIBUTION' OF EARNINGS. 
 
 Statement showing the increase in the value of Shares by 
 "Dexter's Rule" of Division of Profits. 
 
 Value. Series. 1 
 
 Value January 1, 1S81 $12 73 
 
 Value January 1, 1882 26 94 
 
 Value January 1, 1883 42 79 
 
 Value January 1. ISM 60 48 
 
 Value January 1, 1SS5 80 20 
 
 Value December 1, 1S85 100 25 
 
 $12 74 
 
 
 
 
 26 99 
 
 $12 74 
 
 
 
 42 81 
 
 26 96 
 
 $12 75 
 
 
 60 50 
 
 42 82 
 
 26 97 
 
 $12 75 
 
 78 48 
 
 58 94 
 
 41 43 
 
 25 71 
 
 $11 62 
 
 Statement showing the increase in the value of Shares by the 
 "Partnership Rule" of Division of Profits. 
 
 Value. Series. 1 
 
 Value January 1. ISM $12 73 
 
 Value January 1. 1888 26 93 
 
 Value January 1, 1883 42 73 
 
 Value January 1, 1884 60 21 
 
 Value January 1, 1S85 79 62 
 
 Value December 1, 1885 99 20 
 
 $12 73 
 
 
 
 
 26 99 
 
 $12 74 
 
 
 
 42 86 
 
 27 05 
 
 $12 76 
 
 
 60 55 
 
 43 06 
 
 27 13 
 
 $12 78 
 
 78 47 
 
 59 35 
 
 41 85 
 
 25 95 
 
 $11 67 
 
 Rule for Computing Interest, and table showing interest on One 
 Dollar at 3 per cent "average time" from l to 120 Months. 
 
 H 
 
 H^ 
 
 H 
 
 3 
 
 H 
 
 3 
 
 H 
 
 3 
 
 H 
 
 3 
 
 H 
 
 9 
 
 a, 
 
 r+ 
 
 3 
 
 r* 
 
 S 
 
 n 
 
 3 
 
 n 
 
 a 
 
 re 
 
 3 
 
 n 
 
 t 
 
 1 
 
 ■ 
 
 n 
 
 1 
 
 n 
 
 VI 
 
 n 
 
 -i 
 n 
 a 
 
 rt 
 
 n 
 go 
 
 
 
 
 
 120 
 
 .3000 
 
 100 
 
 .2500 
 
 80 
 
 .2000 
 
 60 
 
 .1500 
 
 40 
 
 .1000 
 
 20 
 
 .0500 
 
 119 
 
 .2975 
 
 99 
 
 .2 47 5 
 
 79 
 
 .1975 
 
 59 
 
 .1476 
 
 89 
 
 .0975 
 
 19 
 
 .0475 
 
 118 
 
 .2950 
 
 98 
 
 .2450 
 
 78 
 
 .1950 
 
 58 
 
 .1450 
 
 38 
 
 .0950 
 
 18 
 
 .0450 
 
 117 
 
 .2925 
 
 97 
 
 .2425 
 
 77 
 
 .1925 
 
 57 
 
 .1425 
 
 87 
 
 .0925 
 
 17 
 
 .0425 
 
 116 
 
 .2900 
 
 96 
 
 .2400 
 
 76 
 
 .1900 
 
 56 
 
 .1400 
 
 36 
 
 .0900 
 
 16 
 
 .0400 
 
 IIS 
 
 .2875 
 
 95 
 
 .2375 
 
 75 
 
 .1876 
 
 55 
 
 .1375 
 
 35 
 
 .0875 
 
 15 
 
 .0375 
 
 114 
 
 .2850 
 
 94 
 
 .2350 
 
 74 
 
 .1850 
 
 54 
 
 .1350 
 
 34 
 
 .0850 
 
 14 
 
 .0350 
 
 113 
 
 .2825 
 
 93 
 
 .2325 
 
 73 
 
 .1825 
 
 58 
 
 .1325 
 
 33 
 
 .0825 
 
 13 
 
 .0325 
 
 112 
 
 .2800 
 
 92 
 
 .2 300 
 
 72 
 
 .1800 
 
 52 
 
 .1300 
 
 82 
 
 .0800 
 
 12 
 
 .0300 
 
 111 
 
 .2775 
 
 91 
 
 .2275 
 
 71 
 
 .1775 
 
 51 
 
 .1275 
 
 31 
 
 .0775 
 
 11 
 
 .0275 
 
 110 
 
 .2750 
 
 90 
 
 .2250 
 
 70 
 
 .1750 
 
 50 
 
 .1250 
 
 SO 
 
 .0750 
 
 10 
 
 .0250 
 
 109 
 
 .2725 
 
 89 
 
 .2225 
 
 69 
 
 .1725 
 
 49 
 
 .1225 
 
 29 
 
 .0725 
 
 09 
 
 .0225 
 
 108 
 
 .2700 
 
 88 
 
 .2200 
 
 68 
 
 .1700 
 
 48 
 
 .1200 
 
 28 
 
 .0700 
 
 08 
 
 .0200 
 
 107 
 
 .2675 
 
 87 
 
 .2175 
 
 07 
 
 .1675 
 
 47 
 
 .1175 
 
 27 
 
 .0075 
 
 07 
 
 .0175 
 
 106 
 
 .2650 
 
 86 
 
 .2150 
 
 66 
 
 . 1 050 
 
 46 
 
 .1150 
 
 26 
 
 .0050 
 
 06 
 
 .0 150 
 
 105 
 
 .2625 
 
 85 
 
 .2125 
 
 65 
 
 .1625 
 
 45 
 
 .1125 
 
 25 
 
 .0625 
 
 05 
 
 .0125 
 
 104 
 
 .2000 
 
 H4 
 
 .8100 
 
 64 
 
 .1000 
 
 44 
 
 .1100 
 
 24 
 
 .0600 
 
 04 
 
 .0100 
 
 108 
 
 
 88 
 
 .2075 
 
 63 
 
 .1575 
 
 48 
 
 .1075 
 
 23 
 
 .0575 
 
 03 
 
 .0075 
 
 102 
 
 
 82 
 
 .2050 
 
 62 
 
 .1660 
 
 42 
 
 .1050 
 
 22 
 
 .0550 
 
 02 
 
 .0050 
 
 101 
 
 .2625 
 
 81 
 
 .2025 
 
 61 
 
 .1525 
 
 41 
 
 .1025 
 
 21 
 
 .0525 
 
 01 
 
 .0025 
 
 Ruti — To find the interest for any given series multiply the "Dues Capital" 
 of the scries by the amount of interest set opposite the average number of 
 months the scries has been in force. 
 
 For txamplc — What is the interest on a series 80 months old, having $20,000 
 of "Dues Capital"? The average time is 40 months. The interest at .'(percent 
 on $1 for 40 months is 10 cents. $20,000 X 10 = 2,000. 
 
 [886]
 
 CHAPTER XXIII. 
 
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 [386 J
 
 DISTRIBUTION OF EARNINGS. 
 
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 [087]
 
 CHAPTER XXIII. 
 
 Simple Interest. 
 
 The following method for calculating simple interest 
 is one found to be most practical : 
 
 Interest is usually calculated on the basis of 300 days to the year. 
 
 The simplest method of computing interest is to do it at the rate 
 of 6 per cent per annum, and add or subtract when it is higher or 
 lower than that. 
 
 The interest for GO days at 6 per cent per annum is equal to as 
 many cents as there are dollars, or in other words, is 1 per cent of 
 the principal. 
 
 The reason of this is obvious. 6 per cent per annum is l / 2 per 
 cent per month, or 1 per cent for two months, or 60 days. 
 
 The interest for $750, $225, $327.30. for 60 days, at 6 per cent is 
 $7.50, $2.25, $3.28. 
 
 Having the interest for 6o days, the interest for any shorter time 
 may be found by the use of all aliquots of 6o. 
 
 Aliquots of 60. 
 
 30=y 2 , 20=y 3 , 15=54, 12=H, 
 
 10=%, 6=Mo, 5=^2, 4=^5, 
 3=%o, &=Ho, l=%o. 
 
 When the number is not an aliquot of 6o: 
 
 For 7 take 6 and 1. 
 
 " 8 " 6 " 2. 
 
 " 14 " 12 " 2. 
 
 " 19 " 15 " 4. 
 
 • 26 " 20 " 6. 
 
 " 27 •' 15 " 12. 
 
 • 29 •' 1 off 30. 
 
 - 35 " '. 30 and 5. 
 
 ' 38 " 30, 6, and 2. 
 
 - 43 " 30, 12, and 1. 
 
 ' 45 - 15 off 60. 
 
 •' 85 add 20 and 5. 
 
 1. To find the interest on $375.67, for 15 days, at 6 per cent per 
 annum : 
 
 4)3.76=interest for 60 days. 
 
 .94=interest for 15 days. 
 [3881
 
 DISTRIBUTION OF EARNINGS. 
 
 Interest is seldom computed on cents by secretaries. For 50 cents 
 $1 is added to dollars; less than 50 cents are rejected. 
 
 To find the interest for a number of days that is an aliquot of 6o, 
 we take that part of the interest for 6o days. For 30 days we take 
 l A, 20 days l A, 15 days }4, etc. When the number is not an aliquot it 
 is made up of aliquots, as shown in the preceding table. 
 
 2. To find the interest on $675.15, for 27 days, at 6 per cent per 
 annum: 
 
 $6.75=interest for 60 days. 
 
 1.687=H or for 15 days. 
 1.35 = l / 3 or for 12 days. 
 
 3.037=interest for 27 days. 
 
 The following table shows the interest on any amount 
 from $1 to $5,000 for any number of weeks from 1 to 52. 
 From this table the interest at any other rate per cent can 
 be found by aliquot parts as explained before. 
 
 |8K0| 
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 [3901
 
 CHAPTER XXIV. 
 
 Legal Forms for Associations. 
 
 In order to save time and labor, to facilitate and to 
 expedite business, and to secure accuracy and uniformity, 
 every association should be supplied with a set of blank 
 legal forms for the proper transaction and recording of 
 its business. Such papers must be drawn in accordance 
 with the statutes and with the rules of associations. Since 
 the statutes differ and rules are not at all uniform, it is 
 not possible to present a full set of model blanks. 
 
 Specimen Blanks. 
 
 The forms printed in this chapter are in general use. 
 They are given without endorsement or criticism in the 
 expectation that before being followed by any association 
 they will be examined carefully to see if they are in 
 proper form for use by that particular association. An 
 examination of these forms will indicate anew the neces- 
 sity for closer co-operation among building associations 
 so as to secure more uniform methods of operation. 
 
 [3911
 
 CHAPTER XXIV. 
 
 ARTICLES OF INCORPORATION (OHIO). 
 
 These Articles of Incorporation of The 
 
 Building and Loan Company. 
 
 Witness, That we, the undersigned, natural persons, all of whom 
 are citizens of the State of Ohio, desiring to form a corporation, for 
 profit, under the general corporation laws of said state, do hereby 
 certify: 
 
 1. The name of said corporation shall be The 
 
 Building and Loan Company. 
 
 2. Said corporation is to be located in 
 
 County, Ohio, and its principal business there transacted. 
 
 3. Said corporation is formed for the purpose of raising money 
 to be loaned among its members, as provided by law. 
 
 4. The capital stock of said corporation shall be 
 
 dollars, divided into shares of 
 
 dollars each. 
 
 In Witness Whereof, We have hereunto set our hands, this 
 
 day of !».... 
 
 STATE OF OHIO, ) 
 County of j ss> 
 
 Personally appeared before me, the undersigned, a Notary Public 
 
 within and for said County, this day of 19 , 
 
 the above-named 
 
 who each severally acknowledged the signing of the foregoing arti- 
 cles of incorporation to be his free act and deed, for the uses and 
 purposes therein mentioned. 
 
 Witness my hand and official seal on the day and year aforesaid. 
 
 Notary Public. 
 [3921
 
 LEGAL FORMS FOR ASSOCIATIONS. 
 
 STATE OF OHIO, 
 County of 
 
 } 
 
 I, Clerk of the Common Pleas, within and for 
 
 the County aforesaid, do hereby certify that 
 
 whose name is subscribed to the foregoing acknowledgment as a 
 Notary Public was at the date thereof a Notary Public in and for 
 said County, duly commissioned and qualified, and authorized as such 
 to take said acknowledgment ; and further, that I am well acquainted 
 with his handwriting, and believe that the signature to said acknowl- 
 edgment is genuine. 
 
 In Witness Whereof, I have hereunto set my hand and affixed 
 
 the seal of said Court, at , Ohio, this day 
 
 of 19.... 
 
 Clerk. 
 »1L 
 
 By Deputy. 
 
 ,\ 
 
 United States of America, Ohio, 
 
 Office of the Secretary of State. \ SS 
 
 I Secretary of State of the State of Ohio, 
 
 do hereby certify that the foregoing is a true copy of the Articles of 
 
 Incorporation of "The Building and Loan 
 
 Company" filed in this office on the day of 19. .. . 
 
 and recorded in volume , page of the Records of 
 
 Incorporation. 
 
 In Testimony Whereof, I have hereunto subscribed my name 
 
 and affixed my seal of office, at Columbus, the. . . .day of , 
 
 A. D. 19 
 
 Secretary of State. 
 By Deputy. 
 
 [:m\
 
 CHAPTER XXIV. 
 
 SUBSCRIPTION LIST 
 
 OF 
 
 The Building and Loan Association 
 
 of 
 
 We, the undersigned, hereby agree to take the amount of shares 
 
 of stock in The Building and Loan Association 
 
 of , as set opposite our names. 
 
 Shares Weekly Dues Admission Fee 
 
 In order to facilitate the permanent organization of said associa- 
 tion, we hereby waive the statutory notice of thirty days, for holding 
 of an election for Board of Directors of said association. 
 
 Name. 
 
 Residence. 
 
 Shares. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 PROXY ON STOCK. 
 
 Be It Known, that I, the undersigned stockholder in 
 
 The Building and Loan Association, 
 
 do hereby appoint 
 
 true and lawful attorney, with power of substitution and revocation, 
 
 for and in name . . , to vote at the 
 
 meeting of stockholders in said association, to be held on 
 
 the day of 19 
 
 Done at on this day of 
 
 19.... 
 
 [394]
 
 LEGAL FORMS FOR ASSOCIATIONS. 
 
 BOND OF OFFICERS (OHIO). 
 
 Know all Men by these Presents : 
 
 That as principal, 
 
 and as sureties, 
 
 are firmly held and bound unto The Building 
 
 and Loan Company, a corporation under the Laws of Ohio, in the 
 
 sum of thousand ($ 000.00) dollars, to be paid 
 
 to said corporation, its successors or assigns, for which payment well 
 and truly to be made we bind ourselves, our heirs, executors, and 
 administrators, jointly and severally, firmly by these presents. 
 
 SEALED with our seals, dated the day of 
 
 one thousand nine hundred and 
 
 The Condition of the above obligation is such that whereas the 
 
 said was on the day 
 
 of A. D. 19. ..., duly as 
 
 of said corporation. 
 
 Now, therefore, if the said 
 
 shall faithfully perform all and singular the duties incumbent upon 
 him as such officer aforesaid as prescribed by the Constitution and 
 By-Laws of said corporation (which are made part hereof) and 
 according to the orders of the Board of Directors of said corpora- 
 tion, and shall, when duly requested by the Board of Directors of 
 said corporation, turn over to such person or persons as it may desig- 
 nate, all books, papers, receipts or other documents, money or moneys, 
 or other property of any nature whatsoever, belonging to said corpo- 
 ration or to which the said corporation may have the right of pos- 
 session, then these presents to be void, otherwise to remain in full 
 force and virtue. 
 
 Signed and sealed in our presence: 
 
 Seal 
 
 Seal 
 
 .Seal 
 
 Note. — Bonds are backed for filing as follows : 
 
 Bond of as of The 
 
 Building and Loan Company. 
 
 Attorney. 
 
 [395]
 
 CHAPTER XXIV. 
 
 MORTGAGE (OHIO). 
 
 Know all Men by these Presents: 
 
 That 
 
 in consideration of 
 
 dollars, the estimated value of 
 
 shares of its capital stock, advanced and paid to said 
 
 by 
 
 The Building and Loan Company, 
 
 of , Ohio, a Corporation under the Laws of Ohio, 
 
 the receipt of which is hereby acknowledged, do hereby GRANT, 
 BARGAIN, SELL and CONVEY to the said Building and Loan 
 
 Company, its successors and assigns, forever, the following 
 
 estate, situated in the County of State of 
 
 and bounded and described as follows : 
 
 and all the ESTATE, TITLE, and INTEREST of the said grantor 
 either in Law or in Equity, of, in and to the said premises : TO- 
 GETHER with all the privileges and appurtenances to the same 
 belonging, and all the rents, issues, and profits thereof; TO HAVE 
 AND TO HOLD the same, in fee, to the use of said Building and 
 Loan Company, its successors and assigns, forever. 
 
 AND the said 
 
 for and for heirs, executors, and administrators, do 
 
 hereby COVENANT with the said Building and Loan Company, its 
 
 successors and assigns, that is the true 
 
 and lawful owner of the said premises and have full power to 
 convey the same, and that the title so conveyed is CLEAR, FREE 
 
 and UNINCUMBERED; and further, that will WARRANT 
 
 and DEFEND the same against the claims of all persons whom- 
 soever. 
 
 [396 J
 
 LEGAL FORMS FOR ASSOCIATIONS. 
 
 Provided, nevertheless, that, whereas the said 
 
 ha. . become a member of said Building and 
 
 Loan Company, and subscribed to share therein to be paid 
 
 in weekly installments of per share, and received in advance 
 
 from said Company said $ , the estimated value of said 
 
 share , shall pay said Company, according to the Constitution 
 
 and By-Laws, without demand therefor any fines and assessments 
 
 thereby imposed, and said weekly installments of per 
 
 share as premium on said advance, and an interest upon said $ 
 
 in weekly payments of cents per share for the first year, 
 
 and thereafter a weekly sum or amounts sufficient to keep the interest 
 upon the amount due at the beginning of each year at the rate of six 
 
 per cent per annum until the full amount of said shares shall 
 
 have been paid, with all dues, premiums, interest, fines, etc., thereon 
 according to the Constitution and By-Laws, and shall pay all taxes, 
 assessments, insurance, ground rents, or charges of any kind that 
 may become due and payable on said property ; and in case of default 
 in making any of said payments for a period of ninety days, and a 
 suit of foreclosure be brought therefor, then the amount of the face 
 of this mortgage, with all arrearages thereon, less the credits paid 
 upon the principal, shall become due and payable at once, all as pre- 
 scribed by the said Constitution and By-Laws ; and if the said 
 shall comply with all the foregoing obliga- 
 tions, then these presents shall be void. 
 
 In Witness Whereof, the said 
 
 who hereby release right and expectancy of dower in said 
 
 premises, ha., hereunto set hand this day of 
 
 in the year of our Lord, one thousand nine hundred and 
 
 (19....). 
 
 Signed, sealed and acknowledged in presence of us : 
 
 W\
 
 CHAPTER XXIV. 
 
 The State of Ohio, County of , ss. 
 
 Be it remembered, That on the day of 
 
 in the year of our Lord, one thousand nine hundred and 
 
 (19....), before me, the undersigned, a Notary Public, in and for 
 said County, personally came 
 
 the grantor in 
 
 the foregoing mortgage, and acknowledged the signing and sealing 
 
 thereof to be voluntary act and deed, for the uses and 
 
 purposes therein mentioned. 
 
 In Testimony Whereof, I have hereunto subscribed my name and 
 affixed my notarial seal on the day and year aforesaid. 
 
 Notary Public County, Ohio. 
 
 19.... 
 
 The within mortgage being fully paid and satisfied, may be can- 
 celled of record, by order of the Board of Directors. 
 
 The Building and Loan Company, 
 
 By , President. 
 
 and Secretary. 
 
 W 
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 [896]
 
 LEGAL FORMS FOR ASSOCIATIONS. 
 
 MORTGAGE CLAUSE FOR INSURANCE POLICIES. 
 
 It Being Hereby Understood and Agreed, That this insurance, as 
 to the interest of the Mortgage or Trustee only therein, shall not be 
 invalidated by any act or neglect of the Mortgagor or Owner of the 
 property insured, or by the occupation of the premises for purposes 
 more hazardous than are permitted by the terms of this Policy. 
 Provided, Also, that in case the Mortgagor or Owner neglects or 
 refuses to pay any premium due under this Policy, then, on demand, 
 the Mortgagee or Trustee shall pay the same. Provided, Also, that 
 the Mortgagee or Trustee shall notify this Company of any change 
 of ownership or increase of hazard which shall come to his or her 
 knowledge and shall have permission for such change of ownership 
 or increase of hazard duly indorsed on this Policy. And Provided 
 Further, That every increase of hazard not permitted by the Policy 
 to the Mortgagor or Owner shall be paid for by the Mortgagee or 
 Trustee on reasonable demand, and after demand made by this Com- 
 pany up, and refusal by, the Mortgagee or Owner to pay, accord- 
 ing to the established schedule of rates. It is, however, understood 
 that this Company reserves the right to cancel this Policy, as stipu- 
 lated in the printed conditions in said Policy; and also, to cancel this 
 agreement on giving ten days' notice of their intention to the Trustee 
 or Mortgagee named therein, and from and after the expiration of 
 the said ten days, this agreement shall be null and void. It is 
 Further Agreed, That in case of any other insurance upon the 
 property hereby insured, then this Company shall not be liable under 
 this Policy for a greater portion of any loss sustained than the sum 
 hereby insured bears to the whole amount of insurance on said prop- 
 erty, issued to or held by any party or parties having an insurable 
 interest therein. It is Also Agreed, That whenever this Company 
 shall pay the Mortgagee or Trustee any sum for loss under this 
 Policy, and shall claim that as to the Mortgagor or Owner, no lia- 
 bility therefor exists, it shall at once, and to the extent of such 
 payment, be legally subrogated to all the rights of the party to 
 whom such payments shall be made, under any and all securities 
 held by such party for the payment of said debt. But such subroga- 
 tion shall be in subordination to the claim »f said party for the 
 balance of the debt so secured. Or said Company may, at its option, 
 pay the said Mortgagee or Trustee the whole debt M secured, with 
 all the interest which may have accrued thereon to the date of such 
 
 1399]
 
 CHAPTER XXIV. 
 
 payment, and shall thereupon receive from the party to whom such 
 payment shall be made an assignment and transfer of said debt, with 
 all securities held by said parties for the payment thereof. 
 
 This slip being attached to Policy No of the 
 
 Insurance Company, forms part of said Policy. 
 
 Dated 
 
 Secretary. 
 
 14«)01
 
 LEGAL FORMS FOR ASSOCIATIONS. 
 
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 [401]
 
 CHAPTER XXIV. 
 
 WAIVER OF MECHANICS' LIEN (OHIO). 
 
 Ohio 19. . . . 
 
 In consideration of one dollar and other valuable considera- 
 tions, the receipt of which is hereby acknowledged 
 
 do hereby agree with 
 
 The Building and Loan Company 
 
 of County, Ohio. 
 
 that will not take a mechanics' lien on the real estate 
 
 of situated 
 
 County, Ohio, to secure amount due or to become due 
 
 for material furnished or labor performed in or about the erection 
 
 of 
 
 on said real estate, under contract made with the said 
 
 and hereby waive any right of priority of lien 
 
 might have on said real estate in favor of said Company. 
 
 COLLATERAL NOTE FOR LOAN ON PASS BOOK. 
 
 $ 19.... 
 
 after dale promise to pay 
 
 to the order of 
 
 The Building and Loan Association, 
 
 of 
 
 Dollars, 
 
 with per week interest, the same being per cent, 
 
 on the amount of loan, and herewith transfer my Pass Book 
 No to said Association, to be held as collateral until pay- 
 ment of this loan, said loan being subject to the Constitution and 
 By-Laws of the Association. 
 
 Value received 
 
 No Due 
 
 STUB. 
 
 $ 
 
 Date 
 
 No Due. 
 
 [402]
 
 LEGAL FORMS FOR ASSOCIATIONS. 
 
 ATTORNEY'S REPORT. 
 
 To the Board of Directors of 
 
 The Building and Loan Association, 
 
 of 
 
 Gentlemen : 
 
 I find that the title to property of 
 
 situated 
 
 is in the name of said party, as the same appears indexed of Record 
 
 in the Recorder's Office of County, State 
 
 of Ohio, subject, however, to the following encumbrance: 
 
 The taxes are. 
 Remarks 
 
 Respectfully submitted, 
 
 Attorney. 
 
 19.... 
 
 [4031
 
 CHAPTER XXIV. 
 
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 [404]
 
 CHAPTER XXV. 
 
 Books and Blanks. 
 
 General Suggestions. 
 
 The keeping of the accounts of the associations is a 
 matter too extensive to be discussed in all its details here. 
 In point of fact there is not yet that uniformity in the 
 methods of bookkeeping in associations which we may 
 certainly expect to see introduced in the near future. Tlie 
 improvements which have appeared in the last few years 
 are manifold. 
 
 A good illustration of the labor-saving methods which 
 are being introduced is seen in the Dues, or Secretary's 
 Book. Formerly postings were made from this book 
 weekly (or monthly) after each meeting. The book is 
 now usually made with a column set apart for each 
 evening's receipts and a numbered line for each member's 
 book. The book is arranged in sections covering each 
 quarter or half year, with necessary rulings for totals. 
 These totals are posted quarterly or semi-annually. It is 
 easy to see how much time and labor is saved and how 
 much the liability to error is lessened by the new method. 
 
 The Secretary's Cash book is also now arranged with 
 poly form columns and rulings, so that, as the secretary 
 enters, meeting by meeting, the various receipts and dis- 
 bursements, each upon its appropriate line in its appro- 
 priate column, it is virtually posted to its appropriate 
 account. He is thus able at any time, without the trouble 
 of making up a balance sheet or detailed statement, to 
 read off from the page of his cash book the actual 
 financial standing of the association, the amount of gain 
 
 [4W] 
 
 87
 
 CHAPTER XXV. 
 
 and loss on each item, etc., and at the end of the term, he 
 simply enters the entire amount of each item on its ac- 
 count in the ledger. Formerly, the custom was to enter 
 all such items, meeting- by meeting, in an ordinary cash 
 book and then to journalize and to post them into the 
 ledger — a very burdensome task, as secretaries will 
 testify. 
 
 In addition to the improvements noted in these two 
 books a large number of other books and various blanks 
 and forms have been devised to save labor, to secure 
 accuracy, and to expedite the business of associations. 
 
 The work of an association in the taking of dues, etc., 
 must be done quickly, and as accuracy in all things is so 
 essential to the success of the association, directors and 
 officers should be careful to adopt the best system possible 
 and to provide themselves with the best and most con- 
 venient books and forms. It is especially desirable that 
 the system adopted should be so simple and compre- 
 hensive that its workings can be understood easily even 
 by uneducated and inexperienced members. The books 
 and forms should be those that have stood the test of 
 actual experience and have given satisfaction. In order- 
 ing books care must be taken that they correspond to 
 each other, so that all will fit in properly as parts of one 
 system. 
 
 Book Account. 
 
 Some associations keep a separate account of books 
 and supplies, taking off a percentage each period from this 
 account. Others charge these direct to the expense ac- 
 count as they are purchased. 
 
 Pass-Books. 
 
 The pass-book is the book furnished to each member 
 by an association, in which are recorded the receipts for 
 
 [406]
 
 BOOKS AND BLANKS. 
 
 his dues as he pays them from meeting to meeting. This 
 book is known under various names, as "Pass-Book," 
 "Member's Book," "Receipt Book," "Stock Book," etc. 
 There is so much inquiry with reference to these books, 
 and such frequent difficulty in new associations in getting 
 them in proper form, that a full description is given here 
 to assist persons interested in organizing associations. 
 
 These books are subjected to constant usage and must 
 last a long time. Usually, a period of from six to ten 
 years must elapse before the stock is finally paid up. Pass- 
 books should therefore be made of good paper, in strong 
 and durable binding, of convenient size, and to open 
 easily. For the convenience of officers and members, and 
 in order to expedite the business of the association, pass- 
 books should be carefully and systematically arranged 
 and properly adapted for their purpose. 
 
 Pass-books are usually 4 to ^ l / 2 inches in width and 
 6 to 7 inches in length. They should contain the consti- 
 tution and by-laws of the association, a blank certificate 
 of stock, blanks for transfer of stock, and 16 leaves — 32 
 pages — properly ruled and lettered for receipts for dues. 
 
 The certificate of stock is as follows : 
 
 The Building and Loan Association, 
 
 of 
 
 Book No Certificate of stock. 
 
 This Certifies, that 
 
 is entitled to shares, subscribed in The 
 
 Building and Loan Association, which are to be regulated and 
 controlled by, and which may be transferred according to the 
 Constitution and By-Laws of said Association.* 
 
 Admission Fee, * Book cents. 
 
 Received Payment, 
 
 Secretary. 
 
 19.... 
 
 * Some association* put their seal on each certificate. 
 
 [407]
 
 CHAPTER XXV. 
 
 The certificate of stock is made to occupy one page of 
 the pass-book. On the hack of this certificate should be 
 printed two or three blanks for the transfer of shares, as 
 follows. 
 
 For value received, I hereby transfer to 
 
 all my claims, rights, and interest in 
 
 shares of the capital stock of 
 
 The Building and Loan Association, 
 
 of , on this the day of 19 
 
 . Secretary. 
 
 The leaves for receipts should be made of good, strong 
 writing paper, interleaved with light blotting paper. The 
 paper should be ruled with fifteen lines to the page and 
 should have printed headings and column rulings as 
 follows : 
 
 DATE 
 
 DUES 
 
 Interest 
 
 Premium 
 
 FINES 
 
 RECEIPT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Pass-books are sometimes made with twenty-six in- 
 stead of fifteen lines to the page, but this plan either 
 makes the book inconveniently large for carrying and 
 handling, or causes the rulings to be too close for con- 
 venience. 
 
 14081
 
 BOOKS AND BLANKS. 
 
 On the front cover of the book should be pasted the 
 number of the book and a printed label as follows : 
 
 365 
 
 In account with 
 
 The Building and Loan Association, 
 
 of 
 
 No Shares 
 
 Deposit Envelopes and Shj>s. 
 
 When a member appears to make his payments he fills 
 out a deposit ticket or slip and encloses it with the exact 
 amount of his payment at the proper place in his pass- 
 book, and hands it in. Some associations use the deposit 
 envelope instead of the slip, and this is much better. The 
 envelope is used exactly as the slip except that the money 
 is enclosed and sealed up in it, thus preventing its being 
 accidentally dropped out of the book and causing loss, 
 delay, or error. The receiving officer calls off the number 
 of the pass-book and the amount of money written on 
 the slip or envelope, and passes all over to the other 
 members of the finance committee, one of whom counts 
 the money, and another receipts for the dues in the pass- 
 book and returns it to the owner, the slip or envelope 
 being placed on file. When dues are received in this man- 
 ner it is very easy to check up the accounts at the close 
 of the meeting. In some associations the money is simply 
 enclosed in the pass-book without any deposit slip or 
 envelope. Where there is a large membership, owing to 
 the numerous payments and the rush and incidental con- 
 fusion, errors are likely to occur, both in the money paid 
 in and in the entries. Where deposit slips or envelopes 
 are used it is easy to locate errors and to make necessary 
 corrections. 
 
 |I09]
 
 CHAPTER XXV. 
 
 Below are forms of deposit slips and deposit envelopes 
 
 DK1>0SIT SLIP. 
 
 The Building and Loan Association. 
 
 .19. 
 
 Name 
 
 Book No 
 
 No. of Shares. 
 
 For weeks. 
 
 
 $ 
 
 
 cts. 
 
 
 
 
 
 Admission ~\ 
 
 or v 
 
 
 Transfer \ 
 
 Book 
 
 
 
 
 Total 
 
 
 
 . 
 
 [410]
 
 BOOKS AND BLANKS. 
 
 THE. 
 
 BUILDING ASSOCIATION 
 
 of 
 
 DEPOSIT ENVELOPE. 
 
 JVOTE. — A''l moneys handed in tc the Association /or Credit on Member 
 skip Account, must ve enclosed in one of these envelopes, and the blanks 
 properly jitied out, to prevent mistakes or disputes. 
 
 Bock No. 
 
 ...»»fc« — ■*'■— fc - 
 
 MEMBER'S NAME. 
 
 ..lllBWl *..*.- > • ■>■<. \m «JJ ••*»*. W* wnt<«* vUialf. -- r* ••• • ■ " •' ■■•'«"•■■ 
 
 
 f TOP.. .,,,......- -. 
 
 .,.. Weeks 
 
 
 
 Interest on Loan, 
 
 t ««.*. «■• lfc>* >p«»* kli 
 
 
 
 
 
 
 
 
 Premium on Loan, 
 
 
 1 
 
 
 
 
 /"//)05 
 
 , ,-...,..,.„,.,. 
 
 
 
 
 
 
 
 P«3S ffr»0* - f25c. ) 
 
 .- 5 
 
 S 
 
 
 
 
 S 
 
 
 
 
 
 
 Total Cash in 
 
 Envelope, 
 
 
 
 Datu, 
 
 ■ ***** > ■» ! ••* »-* ■***«»> «/ *•»•*. \ « 
 
 OCft-flfbl, 1' *. by A. O. Cifhn 
 
 111
 
 CHAPTER XXV. 
 
 Necessary Books and Forms. 
 
 The following books and forms will be found essential 
 in an association numbering from 250 to 400 members: 
 
 500 Pamphlets — Constitution and objects of the Association. 
 500 Pass-Books. 
 
 1 Constitution and Signature Book. 
 5,000 Deposit Envelopes or Slips. 
 1 First Secretary's Dues or Receipt Book. 
 1 Second Secretary's Book. 
 1 Treasurer's Receipt Book. 
 1 Treasurer's Cash Book. 
 1 Secretary's Itemized Cash Book. 
 1 Individual and General Ledger. 
 1 Appraisement Book. 
 1 Withdrawal Book. 
 
 1,000 Warrants on Treasurer— Perforated, numbered, and bound. 
 Blanks for Mortgages, Bonds, Notes, etc., as may be required. 
 1 Record Book for the purpose of keeping the minutes of the 
 meetings of the association and of the Board of Directors. 
 
 An association cannot well transact business without 
 possessing at least the books and forms enumerated 
 above. But, in addition to these, most associations use 
 various other books and forms which are found of the 
 greatest convenience and value in the transaction of their 
 business. The books and forms mentioned above, to- 
 gether with many others, will be found described in the 
 list on next page. 
 
 Building Association Sullies. 
 
 The following is a list, alphabetically arranged, of 
 books and forms for building associations, prepared by 
 the American Building Association News Company, 
 Cincinnati, who have made a specialty of furnishing 
 building association supplies for over fifty years. 
 
 N12]
 
 BOOKS AND BLANKS. 
 
 Amendments to the Constitution.— When amendments are made 
 to constitutions it is desirable that a copy of the amendment be placed 
 in each member's pass-book. These amendments are printed on 
 gummed paper so that a copy can be placed in each pass-book. 
 
 Application Book (For Loans) .—Copyright.— Has columns for 
 date of application for loan, name, amount of money desired, how 
 much granted, and spaces for description of property, reports of 
 committees with their signatures, and other important remarks. 
 
 Application Book (For Loons), Combined with Attorney's 
 Reports. 
 
 Application Book (For Membership). 
 
 Applications for Money (Dividends). Bound in book form, 
 numbered and perforated with stubs, or plain without stubs. 
 Furnished unbound also. 
 
 Applications for Money (Dividends and Withdrawals Combined). 
 Bound or loose as described above. 
 
 Applications for Money (Withdrawals). — Bound in book form, 
 arranged for withdrawals in full or in part, numbered and perforated 
 with stubs, or plain without stubs. Furnished unbound also. 
 
 Appraisement Book. — For recording reports of appraising com- 
 mittees. Made in all sizes, and arranged in conformity with law. 
 
 Balance Sheets.— Showing entire business of an association for 
 a stated time. 
 
 Bonds for Officers. — 
 
 Cash Book and General Ledger.— Copyright.— AW entries to the 
 general accounts such as interest, premium, etc., are posted when 
 made, and at end of each quarter or half year, or, at any other 
 time, a complete balance can be read off from this. Considerable 
 time is saved by using this book. 
 
 Cash Book for Secretaries.— With special rulings and heads and 
 all necessary polyforms and divisions. 
 
 Cash Book for Treasurer. — Made in convenient pocket form. 
 Certificates of Paid-Up Stock.— With ten stubs of $100 each, 
 perforated and numbered, with laws pertaining to same printed 
 on back. 
 
 Check Books (Bank). 
 Circulars. — All styles and sizes. 
 Collateral Notes. — (See forms.) 
 
 Constitution Record Book with Members' Numerical Register 
 and Ledger Index Combined— Contwns blank space for recording 
 constitution and amendments thereto, with blanks for signatures of 
 members numbered in regular order, record of shares held by each.
 
 CHAPTER XXV. 
 
 member, place of residence, pass-book number of each member, and 
 ledger folio of each member arranged in alphabetical index. 
 
 Deposit Blanks. — With or without space for advertisements. 
 
 Deposit Envelopes. — Copyright. — Large and small, perforated. 
 Can be printed on both sides, one side with blanks for deposits, and 
 the other side for advertising purposes. These are very useful and 
 serve as a check on the receipts. 
 
 Deposit Fee Book. — For keeping account of fees advanced by 
 members applying for loans. 
 
 Dividend Books. — For keeping dividend accounts. The members' 
 numbers are printed in regular order, 50 to a page, with space for 
 names adjoining, after which follow spaces for amounts of dividends 
 and receipts therefor. 
 
 Dividend, Report Record, and Reserve Fund Book. — Copyright. 
 
 Dividend Tobies. 
 
 Dividend Warrants. 
 
 Dividend Withdrawal Blanks. 
 
 Dodgers. — All sizes, English and German. 
 
 Dues Books. — Different designs of weekly, monthly, quarterly 
 and semi-annual dues books of the most approved patterns. 
 
 Election Tickets. — And specially ruled Tally Sheets. — Furnished 
 to order. 
 
 Envelopes. — Printed to order. 
 
 General Ledger and Cash Book. 
 
 Index. — Plain and voweled. 
 
 Index (Combination) . — See Constitution Record Book. 
 
 Individual Ledgers. — Made to order in any desired form. We 
 have ledgers arranged for posting every week, month, half-year, 
 etc. We make a special Ledger for Building Associations which can 
 be used for quarterly and half-yearly postings. We also manufacture 
 ledgers with dates printed in, thus saving considerable time in mak- 
 ing entries for those secretaries who post receipts at each meeting. 
 
 Letter Heads. — Printed to order. 
 
 Mechanic's Liens. — (See forms.) 
 
 Memorials. — Resolutions or respect for deceased officers, di- 
 rectors, and members, printed in neat and appropriate styles. 
 
 Mortgage Blanks. — (See forms.) 
 
 Mortgage Clause Blanks. — (See form.) 
 
 Mortgage, Lease, and Insurance Record. — Ruled to show number, 
 amount of loan, expiration of lease, location of property, and amount 
 and expiration of insurance, as well as cancellation. 
 
 Nightly Receipt Books and Sheets.— (See Dues Book.) 
 
 [414]
 
 BOOKS AND BLANKS. 
 
 Notes. — Blank, or bound in book form, drawn in conformity 
 with law. 
 
 Note Heads. — Printed to order. 
 
 Notices to Members. — Printed to order. 
 
 Numbers.— In sets of 1 to 500, and 1 to 1,000 and upward in 
 different sizes and gummed. 
 
 Order Books. — Made in all sizes, numbered and perforated. 
 
 Pads (Memorandum). All sizes. 
 
 Paid-Up Stock Certificates.— (See Certificates of Paid-Up Stock.) 
 
 Paid-Up Stock Certificate Ledger and Dividend Books. 
 
 Pamphleis. in English and foreign languages.— Printed to order. 
 
 Pass-Books. 
 
 Posters.— All sizes to order, for advertising sales of property, etc. 
 
 Proxy Blanks.— For elections. (See form.) 
 
 Receipts. — Plain blanks, or bound in book form. 
 
 Record Books.— In different styles with or without index. Also 
 printed records to order. 
 
 Reports. — Semi-annual, annual, etc., printed in any form. 
 
 Share Account Books. 
 
 Seals. 
 
 Secretary Books.— For the First and Second Secretaries. The 
 best designs in this line. Special attention is called to the new 13 
 and 26-week books, made on the most labor-saving plan. Second 
 Secretary books in different styles. 
 
 Show Cards.— Signs for place of meeting. 
 
 Solicitor's Reports. 
 
 Subscription Blanks. — For new associations. 
 
 Subscription Books. — Stock. 
 
 Tally Books and B Ian k s— Generally used by the Second Secretary 
 or Finance Committee. 
 
 Tally Sheets. — For elections. 
 
 Transfer Book — Stock. 
 
 Treasurer's Cash Books— Made especially for treasurers in con- 
 venient pocket form. 
 
 Treasurer's Receipt Books.— Regular. Also extra ruled and 
 printed, with 13 weeks (three months), receipts to a page, and space 
 for date, signature, amount, and account for overs and shortages 
 in cash received. 
 
 Withdrawal Blanks.— In pads or book form. 
 
 14151
 
 CHAPTER XXVI. 
 
 Juvenile Savings* 
 
 Owing to the prominence given to the movement in 
 Elmira, N. Y., by Mr. McEvvan, of the New York Eve- 
 ning Post, several years ago, inquiries have come from 
 such divergent points as Los Angeles, Seattle, Birming- 
 ham, Ala., and Fitchburg, Mass., clearly showing that 
 interest in this subject is not local. 
 
 For the benefit of others interested we will attempt to 
 outline the operation of a juvenile department as an ad- 
 junct of a savings and loan association. 
 
 The scheme is not new. Toward the close of the last 
 century Prof. Elias J. Beardsley, principal of one of the 
 Elmira schools, operated a savings department success- 
 fully, until it was brought to the attention of the Board 
 of Education with a view to its extension throughout all 
 the city schools, when it was found that it contravened 
 the state savings bank law. 
 
 The school savings system was not extended then, 
 neither was any effort made to secure legislation in aid 
 of this commendable addition to the school curriculum; 
 and Prof. Beardsley was even compelled to discontinue 
 its operation in his own school. 
 
 The seed thus sown did not, however, fall wholly on 
 barren soil, for, although many years elapsed since the 
 failure of his plan, the subject recurred from time to time, 
 and at a meeting of the directors of an Elmira associa- 
 tion it was discussed in the presence of f Clay W. Holmes, 
 a loan association enthusiast of wide experience, who 
 
 Prepared by Mr. H. M. Clark, t Deceased. 
 
 [416]
 
 JUVENILE SAVINGS. 
 
 recognized, at once, the beneficial features of a system 
 designed to stimulate thrift and the savings habit in 
 children. He drafted a bill, which ultimately became a 
 law. permitting New York savings and loan associations 
 to operate children's savings departments. In the framing 
 of the law he had recourse to the knowledge, ripe experi- 
 ence and wise counsel of William Fleming, then Secre- 
 tary of the East Rutherford (N. J.) association, the first 
 in America, we believe, to carry this plan to complete 
 success. 
 
 The Corning ( N. Y.) association was the first to in- 
 augurate a juvenile department under the new law. The 
 earnestness of f Frank D. Kingsbury, one time President 
 of the United States League of Building and Loan Asso- 
 ciations, and the cheerful co-operation of his associates 
 assured a success beyond anticipation. 
 
 Corning is a city of 17,000 inhabitants, with no other 
 savings institution than the Co-operative. Accordingly, 
 a clear field was presented for trying out the experiment. 
 Its success was immediate ; the receipts for the first six 
 months exceeded $5,000, from a membership of 500 it 
 increased in five years to 877, with deposits of $33,000. 
 A stranger in Corning on children's day might imagine 
 the Pied Piper of Hamlin was here plying his craft and 
 inveigling all the young folks of the city through the 
 doors of the association. Coming pell-mell, they swarm 
 up the steps of the office, each child carrying a small 
 steel bank to be opened and its contents counted and 
 entered in a pass-book. A Corning kid without a bank is 
 an anomaly. About the first act upon the birth of a child 
 is to provide it with a bank, pass-book, and certificate of 
 membership in the children's department. We do not 
 believe the statement is overdrawn; for frequently the 
 
 t deceased. 
 
 [417]
 
 CHAPTER XXVI. 
 
 writer has received the reply, "One day old," in answer 
 to the usual question as to the age of the new member. 
 
 However, the fact remains that nowhere in the world 
 is there a more thriving- institution of its kind than the 
 juvenile department of the Corning association. The 
 motives which lead to the establishing and operation of 
 a children's saving department in a community are not 
 sordid in the slightest degree; they arise from pure altru- 
 ism, requiring a deal of unremunerated labor and the 
 exercise of a large amount of patience. 
 
 Each child on joining is provided with a small steel 
 bank, depositing one dollar as security for its safe re- 
 turn (the association retaining the master-key), also a 
 pass-book, with number corresponding to that of the 
 bank, wherein is entered, from 'time to time, the amount 
 of the deposits and withdrawals. 
 
 A day is set apart each month as children's day; care 
 being taken to choose a day whereon nothing else of im- 
 portance is liable to occur. 
 
 Four or five receiving tellers, volunteering their serv- 
 ices, are on hand, whose business it is to open the banks 
 presented, count the cash, make a minute of the amount 
 on a check-slip and on a colored slip on which is written 
 the number of the bank and pass-book. 
 
 The colored slip is given to the child, who hands it 
 with its pass-book to the President, or his proxy, who 
 selects the card having the child's name and number 
 of his bank (this card being the ledger account with that 
 child, and a duplicate of the entries in the pass-book). 
 The card, slip and pass-book are passed on to the secre- 
 tary who enters the amount on a numbered sheet, the slip 
 is spindled and the deposit entered in the pass-book, which 
 is then returned to the child. Each cashier issues a dis- 
 tinctively colored slip, so that an error may be readily 
 located when the cash is balanced after banking hours. 
 
 [418]
 
 JUVENILE SAVINGS. 
 
 The receipts of the Corning juvenile department average 
 $750 on children's day. 
 
 A year later juvenile branches were established in the 
 two Elmira associations. Here they were brought in 
 competition with a Penny Provident, a savings bank, 
 and two other institutions catering to children's accounts. 
 Accordingly, while they have had a measure of success 
 and a steady growth from the beginning, they have fallen 
 short of the phenomenal success of Corning and East 
 Rutherford. 
 
 Added impetus has been given to the movement in 
 Elmira by the introduction of the system in the public 
 schools. 
 
 The success of such extension of the juvenile depart- 
 ment is perhaps best gathered from the following por- 
 tion of the address to the shareholders of the Chemung 
 Valley Mutual Loan Association by its President, Clay 
 W. Holmes* : 
 
 "In 1905 your President, then Chairman of the Legislative Com- 
 mittee of the New York State League of Savings and Loan Asso- 
 ciations, prepared an amendment to the Savings and Loan Law, 
 known as the Juvenile Savings Act, and secured its passage by the 
 Legislature. This act provided that the minor could transact busi- 
 ness with the Savings and Loan Association without the interfer- 
 ence of a guardian or parent. The purpose of this act was to relieve 
 the Association from the annoying and uncertain conditions of exist- 
 ing laws, and enabling a minor to deposit his savings without let or 
 hindrance and withdraw them at pleasure on the same independent 
 basis as grown people. This act has been of great advantage in 
 many ways. For a long time the author of this act had studied its 
 application to the educational benefit of children, and when he found 
 that the present able Superintendent of Schools, Mr. D. C. Bliss, 
 was an earnest student along the same lines a plan was devised for 
 its trial in the public schools. The matter was submitted to the 
 Board of Education and heartily approved. An explanatory circular 
 was prepared and submitted to the parents on Friday, November 4, 
 1910, and on the following Monday the teachers in the ten grammar 
 schools of Elmira received from such pupils as desired to join the 
 
 • Deceased. 
 
 11191
 
 CHAPTER XXVI. 
 
 Juvenile Department their deposit envelopes. It was hardly ex- 
 pected that many of the children would be sufficiently interested on 
 the first day to start an account. Much was our surprise, therefore, 
 to receive 1,142 envelopes, which meant that one-third of all the 
 pupils responded on the first call. Every Monday since, regular as 
 a clock, the children have produced their little envelopes, and at this 
 time over 1,700 are enrolled, the exact number being 1,730 at the 
 close of the year. Over 100 have joined in January. Believing that 
 it will be of interest to the parents, as well as the general public, 
 some statistics are here given to show how the plan is working. 
 Up to the Christmas vacation there were seven Monday deposits, 
 and the total deposits of those days numbered 6,797, of which num- 
 ber 4,905 did not exceed 25 cents, made up as follows : One hun- 
 dred and eighteen of 1 cent each, 61 of 2 cents, 55 of 3 cents, 37 of 
 4 cents, 1,011 of 5 cents, 1,581 between 5 and 10 cents, 2,102 between 
 10 and 25 cents, leaving a balance of 1,832 deposits which exceeded 
 25 cents each. These figures clearly prove that the plan is a great 
 success educationally, and that the belief of the promoters was cor- 
 rect. But let us go still further and note the total of the seven 
 weeks and see what the aggregate amounts are. There were 380 
 having less than 25 cents, 280 between 25 and 50, 207 between 50 and 
 75, and 162 between 75 and $1.00, a total of 1,029 having less than 
 $1.00, leaving 501 who exceeded $1.00. Now, as a financial proposi- 
 tion one could hardly call such figures promising for profit to any 
 institutions, in fact, it costs more for the clerical help to handle the 
 large number of accounts than the money received will earn in in- 
 terest for the Association, but when one stops to consider that "as 
 the twig is bent the tree inclines," there is much in it. Some day 
 these children will be grown up, and when they come to graduation 
 they have not only learned how to read and do cube root, but also 
 the greater lesson of self-denial and saving which will lead them to 
 continue their saving habit. Another interesting proof of the possi- 
 bility of such education is that the children of very tender age seem 
 to take hold of the plan more freely than older pupils, as is shown 
 in these figures. The ages of the present members is as follows : 
 One hundred five, five years; 202, six years; 216 seven years; 211, 
 eight years; 194, nine years; 187, ten years; 148, eleven years; 162 
 twelve years; 121, thirteen years; 95, fourteen years; 38, fifteen 
 years; 10, sixteen years; and 2, seventeen years. The list includes 
 760 boys and 770 girls. There are many other interesting features 
 connected with this work, but these facts are given just to illustrate 
 what can be done when children take hold. 
 
 [420]
 
 JUVENILE SAVINGS. 
 
 Your President regards this as one of the greatest successes ever 
 achieved in the Savings and Loan Association work, and believes 
 that it is but the beginning of a great and universal movement along 
 the line of savings educational work throughout the country. The 
 trouble heretofore has been to find a plan which would work. The 
 Elmira plan works magnificently and beyond the wildest hopes of 
 its promoters, and the Chemung Valley has turned the trick for the 
 benefit of the world at large. Educate the child, and the man will 
 save without asking. Save the pennies and the dollars will take care 
 of themselves. 
 
 The plan followed in the school savings plan is as fol- 
 lows: On Monday morning of each week the pupil de- 
 posits with his teacher such sum as he desires. The money 
 is put in an envelope, which is sealed, and the depositor's 
 name, number, room and amount of deposit written 
 thereon, either by the teacher or by the depositor, if com- 
 petent. 
 
 The envelopes are collected from the several rooms and 
 delivered to the principal, whose duty it is to see that they 
 reach the association which receives the deposits in the 
 name of the pupil, who thereby becomes a full-fledged 
 member of the juvenile department. The amount con- 
 tained in each envelope is credited in a pass-book. Inter- 
 est is allowed on all sums of one dollar at the rate of 
 4 per cent per annum. Dividends are credited in January 
 and July, and entered in the pass-book in red ink, to 
 catch the attention. 
 
 The pass-book is retained by the teacher, although a 
 pupil may take it home to exhibit to his parents at any 
 time they wish to see it; but the book is returned forth- 
 with to the teacher for safe-keeping. 
 
 Should a pupil wish to withdraw any of the savings, 
 he may apply in person at the office of the association 
 with the pass-book and receive his money. Such with- 
 drawals must be in the sums of one dollar or multiples 
 
 [421] 
 
 38
 
 CHAPTER XXVI. 
 
 thereof. When a pupil graduates or leaves school he may 
 still continue his deposits at the office of the association, 
 on the same account, at his option. 
 
 If these juvenile savings were derived merely from 
 money given to the child by doting parents and admiring 
 relatives the scheme would still be lacking an essential 
 educational element. Our observations have brought to 
 light the fact that children, spurred on by an ambition to 
 save, are induced to earn the money themselves. In win- 
 ter they run errands, clean sidewalks, care for furnaces, 
 and do such odd jobs as always await an active, wide- 
 awake boy. A prolific source of juvenile earnings is sel- 
 ling newspapers and magazines. In summer there are 
 lawns to mow, gardens to weed. Some keep chickens 
 and sell eggs. Two young girls, who live on a farm, pick 
 berries and other fruits, being paid for their work. 
 
 There is an orphans' home in Elmira, whose boys and 
 girls are each allotted a garden plot and permitted to 
 have and use as they wish the proceeds of all they 
 raise. Fifteen or more of these embryo agriculturists 
 have their banks and bank accounts in a juvenile depart- 
 ment. 
 
 There is a feature apart from the mere depositing 
 and saving which furnishes a concrete illustration of the 
 educational aspect of the system; i. e., the withdrawals. 
 It would indeed be a shallow pretense if the child were 
 taught to save and nothing more in that connection. To 
 inculcate the purpose of savings and the wise users to 
 which they may be put is not the least beneficial. Many 
 withdraw the money which they have saved to buy cloth- 
 ing; others, school books; one recently withdrew to pay 
 his doctor's bill ; another to purchase the materials for a 
 "raw dog." I was sorry for one lad. He had a fine 
 paper route and had saved $40. His lip quivered as he 
 replied to the inquiry usual in such cases: "Father has 
 
 [422]
 
 JUVENILE SAVINGS. 
 
 a note to meet." It is to be regretted that he became dis- 
 couraged, turned in his bank-book and is not saving now. 
 Two girls made their first payment on a new piano from 
 their joint savings. A little miss presented her pass-book, 
 saying, "I want to draw out my money because mamma 
 has to make a payment on the house." 
 
 It has developed in certain instances that the bank, 
 ostensibly in the name of the child, is actually used as 
 the family depository, and the account drawn upon, from 
 time to time, in cases of domestic emergency. 
 
 Savings Boxes or Home Safes. 
 
 In many communities it has been found desirable, in 
 order to bring to each home an opportunity to save, to 
 install a Home Safe without charges. This gives the 
 entire family an opportunity to save some money and 
 establish the habit of economy. These savings are de- 
 posited at the office of the association and credited in 
 special deposit books. 
 
 The Halifax Permanent Benefit Building Society of 
 England in 1919 in this connection reported as follows: 
 
 "The small steel Home Safes lent by the Society to 
 investors, continue to be in favor, and they are widely 
 used. The amount received in the Small Savings Depart- 
 ment during the year was £168,633 Is - an ^ I id., an in- 
 crease of £62,330 1 8s. and 4d." 
 
 [■123]
 
 CHAPTER XXVII. 
 
 Advertising. 
 
 If building and savings associations have a great 
 moral obligation — outside of the honest and efficient 
 administration of the funds entrusted to them — then it is 
 the promulgation of one maxim: "Save money!" 
 
 This sounds like a somewhat homely, commonplace 
 proposition. But observe how very cleverly and pointedly 
 the great Scotchman, Burns, expresses the same idea: 
 
 Save Money ! 
 
 Not for to hide it in a hedge, 
 Not for a train attendant, 
 But for the glorious privilege 
 Of being independent. 
 
 To be independent: That is the great wish, the all- 
 absorbing longing of every person. "Economic depend- 
 ence is the basis of all slavery — social, political or other- 
 wise!" So says a great philosopher, and the truth of this 
 axiom cannot be denied. World movements are being 
 built upon the foundation of this truth, with the aim 
 of delivering mankind from the bane of economic 
 dependence. 
 
 And yet the fact remains, the individual, depending 
 upon his own resources, has but one recourse to escape, 
 to some extent, this curse of economic dependence, and 
 that is to "Save money!" 
 
 Looking at this from the viewpoint of advertising, 
 it becomes at once clear, what a strong advertising appeal 
 every building and savings association has to every 
 member of its particular community. 
 
 [424]
 
 ADVERTISING. 
 
 Large as the activities, the influences, the good work 
 of the building and savings associations at the present 
 time may appear in comparison with their field of 
 endeavor, they have only just begun to scratch the sur- 
 face of this field. 
 
 From this fact their normal obligation, to advertise, is 
 born. Everything, new and good or better, must be 
 made known to the world. There is no good in unknown 
 good. 
 
 A handbook on the workings, the promotion and the 
 betterment of building, loan and savings associations 
 is therefore hardly complete without a chapter on adver- 
 tising. 
 
 Building, loan and savings associations, as organized 
 in the United States, are the most effective, the safest, 
 and the most remunerative savings institutions of the 
 world. They are recognized as such by the people and by 
 the state. Advertising them as such — in all possible 
 forms of advertising — is necessary, not only as a moral 
 obligation, or as a business proposition, but also as a 
 matter of self-preservation. 
 
 Xo matter how great, or how beneficial, or how strong 
 any institution as such may be, it ever depends upon 
 progress for its existence. To stand still means retrogres- 
 sion everywhere. Building associations now existing 
 must extend their membership and their usefulness; new 
 associations must spring up everywhere and demon- 
 strate the good of the cause. So it is willed by the 
 inexorable law of the survival of the fittest. 
 
 Therefore: Let us advertise! 
 
 The limitations of this book make it impossible to enter 
 into a detailed dissertation on the "science" of adver- 
 tising. And, moreover, such a dissertation is super- 
 fluous, and would fail to achieve results. It is quite 
 impossible to establish fast and rigid rules for success- 
 
 [4251
 
 CHAPTER XXVII. 
 
 fnl advertising, but there are a number of hints, based 
 upon solid thought and experience, which will well serve 
 to pave the way for any beginner in this subtle art. 
 
 Why Should You Advertise? 
 
 Because — There is not a person, may his income be 
 ever so modest, barely reaching the necessities of life, 
 but who ought to save money. And again, there is no 
 person in this world but who is affected by advertising. 
 
 Because — Advertising impresses your name, your 
 object, your merit, your meeting place and date of meet- 
 ing upon many prospective members. 
 
 Because — It increases your membership and the good 
 you are doing. 
 
 Because — Increased membership and increased num- 
 bers of shares mean lower cost of administration per 
 share, thus increasing your net profits. 
 
 Because — The purpose of advertising is to influence 
 the mind, trying to teach people to believe in you 
 and in the institution you represent. The whole 
 business world rests upon a foundation of confidence. 
 It is impossible to do business successfully when con- 
 fidence either cannot or is not established, or has been 
 abused and is gone. Lack of confidence in any worthy 
 business, not only building, loan and savings associations, 
 is generally due to ignorance and the fact that the con- 
 fidence-lacking business is not well known. Publicity is 
 the greatest foe to ignorance. Advertising gives the 
 people at large knowledge about you, the merits of your 
 institution and your business. It is the greatest force in 
 the interest of confidence. It follows that advertising, to 
 be advertising at all, must be educational. 
 
 [426]
 
 ADVERTISING. 
 
 How Should You Advertise? 
 
 Advertising is asking that many people do specific 
 things. 
 
 Look your fellow-man straight in the eyes and tell him 
 that in your association you have something that he, too, 
 ought to have, and ask him to come and get it — that is 
 advertising. 
 
 Anything that is worth advertising at all is worth 
 advertising well. Any proposition which is to appeal 
 to thousands of prospective members deserves mature 
 thought and utmost care in preparation. 
 
 With regard to advertising mediums, it may be said, 
 that in the case of building associations the daily and 
 weekly newspapers deserve the first consideration. 
 Advertising by circulars, booklets and other mail matter 
 bears the character of an individual appeal and must be 
 supplementary to the newspaper advertising. Advertis- 
 ing by posters, hangers and street car signs is very 
 beneficial and in some localities may be indispensable. 
 But whatever medium or mediums are selected all adver- 
 tising should be carefully planned in advance and judici- 
 ously followed up.* 
 
 The Preparation of Advertisements. 
 
 Persons charged with the preparation of advertise- 
 ments should always keep before their minds these facts: 
 Certain forms have identical effects upon the majority of 
 people. Certain color combinations may always be relied 
 upon to attract the eye and the mind, while other com- 
 binations never fail to repel. In the same manner certain 
 
 • We would recommend to associations the regular and systematic employ- 
 ment of such expert service for the use of building association advertising as 
 can be obtained. We believe employment of a regular service is essential, and 
 in this connection would respectfully call the readers' attention to the advertising 
 service rendered in connection with the American Building Association News. 
 
 [427]
 
 CHAPTER XXVII. 
 
 words and formations of words into sentences are pleas- 
 ing, certain others displeasing, not only to individuals, 
 hut to the majority of individuals. 
 
 The first rule of the writer of advertisements therefore 
 must be to avoid all that is repelling and displeasing in 
 the wording and the make-up of his advertisement. 
 Advertisements must be attractive and agreeable to fulfill 
 their mission. On the other hand, it is also wise to avoid 
 any attempt to be humorous. A humorous advertisement 
 is at best a "comical" one, and is certain to fall short in 
 its effect. If you want to induce a man to do business 
 with you, you must interest him, not amuse him. Busi- 
 ness is not a matter of jest or levity. It is a matter of 
 sense, system and seriousness, and it will never pay you 
 to view it from a different standpoint. 
 
 Advertisements reflect the dignity and the strength of 
 character of the advertiser. This is true of the advertise- 
 ments of any business, but applies with increased force 
 to the advertising of financial institutions. The public 
 expects dignity of an institution that solicits the custody 
 of funds. Therefore be honest and convincing in your 
 advertising. It is easy to employ superlatives, high- 
 sounding phrases and large assertions, but it is not good 
 advertising. It is much better to state facts in plain and 
 vigorous language, and to be terse in style. Set forth in 
 a clear, straightforward way whatever advantages you 
 may enjoy and can offer to others, but take care not to 
 make promises which later on may embarrass you if 
 called upon to make good. 
 
 Newspaper advertising, to be effective, must be per- 
 sistent. An occasional notice has little, if any, value. It 
 may take a campaign of several years to produce con- 
 fidence in the public mind that your association is reliable 
 and does what it promises. It has been truthfully said, 
 
 [428]
 
 ADVERTISING. 
 
 however, "keeping everlastingly at it brings success." 
 Persistence is a jewel of rare value in any undertaking, 
 and particularly so in the advertising field. 
 
 Our advertisements should incite thrift, urge economy, 
 and appeal to the home instinct. Such objective ends will 
 tend to inspire confidence in the institution itself on the 
 part of the general public. Of all occupations there is 
 none nobler than ours. "The American home" is in 
 truth "the safeguard of American liberties," and worthy 
 of all respect and honor should those be who are assisting 
 in this great work, of establishing American homes, 
 wherein peace, righteousness and happiness dwell and 
 wherein the children are taught those principles which 
 will perpetuate justice and liberty. 
 
 Advertising's greatest value is accumulative. Sporadic 
 or spasmodic efforts have little value and really constitute 
 a waste of money. Advertisements should always be up 
 to the minute. That gives them life, interest and influence. 
 
 Advertisements in neivspapers should be changed 
 frequently, at least as often as once each week, and they 
 should always state in substance your business and give 
 your business address. They should be carefully written, 
 great care being exercised as to the language used. They 
 really should be written when one is in a good frame of 
 mind. One in poor spirits, dejected or angry, is not the 
 person to write advertisements which purpose is to buy 
 and sell money. Me cannot but impart his feelings to his 
 composition, and this might not be the most beneficial 
 to the association. 
 
 When well and feeling good write a number of notices 
 and then use them as occasion demands. You will find 
 this suggestion very helpful. Besides, the more notices 
 you write, the better they will become, and the more you 
 will have to select from. The writer has copy ready for 
 at least five years to come, and as new ideas come to him, 
 
 |429|
 
 CHAPTER XXVII. 
 
 in thinking over the business, or when reading the Amer- 
 ican Building Association News, a splendid paper, they 
 are jutted down and in time duly developed. 
 
 Technical Data. 
 
 It is Impossible to establish rig-id rules for advertising. 
 Many roads lead to Rome. Close appliance, study and 
 observation, together with practical experience, are the 
 best teachers. But there are a great many technical data, 
 which are of great value to every advertiser. In the fol- 
 lowing we endeavor to make this information accessible: 
 
 TECHNICAL DATA ABOUT ADVERTISING. 
 Printing. 
 
 The basis of measurement of advertising space in newspapers 
 and periodicals is the agate line. The word "agate" refers to the 
 title of the smallest type generally used by newspapers. 
 
 Eight agate lines constitute one newspaper square ; 14 agate lines 
 equal one inch. 
 
 (It ought to be observed, that newspaper agate differs from the 
 general printers' agate, in so far, that newspaper agate is cast upon 
 hYt points, while regular agate is cast upon 5$4 points. See explana- 
 tion of point system.) 
 
 Some newspapers, especially the foreign, use the nonpareil (6 
 points) measurement; 12 lines nonpareil equal one inch. 
 
 The ordinary width of a newspaper column is 13 picas, or 2% 
 inches. The column width of standard magazines is 16 picas, or 
 2H inches. 
 
 THE PRINTERS' POINT SYSTEM. 
 
 The typefounders' unit of type measurement is the point. One 
 point is .0139 of one inch. The printers' unit of measurement is the 
 pica. One pica equals 12 points and 6 picas equal 1 inch. 
 
 1 point =: 12 to pica. 
 
 2 point=6 to pica. 
 
 3 point = 4 to pica. 
 3yi point = Brilliant. 
 
 4 point — 3 to pica. 
 f/2 points Diamond. 
 
 5 point — Pearl. 
 B'/i point=Agate. 
 
 6 point = Nonpareil. 
 
 7 point^Minion. 
 
 8 point=^Brevier. 
 
 9 point = Bourgeois. 
 18 point = Long primer. 
 
 11 point=Small pica. 
 
 12 point — Pica. 
 
 14 points English. 
 
 [430] 
 
 18 point = Great primer. 
 24 point^Double pica. 
 30 point = 5 line nonpareil. 
 30 point = 3 line pica. 
 42 pointr=7 line nonpareil. 
 48 point = 4 line pica. 
 60 point = 5 line pica. 
 72 point — 6 line pica.
 
 ADVERTISING. 
 
 Papers. 
 
 The selection of paper for advertising matter of any kind, be it 
 stationery, circulars, booklets or catalogs, is of fundamental im- 
 portance, as the same contribute a large share to the impression 
 made by any printed matter. 
 
 In general the determining factors are (1) illustration, (2) 
 subject-matter, (3) impression desired. 
 
 In our limited space it is impossible to give a detailed description 
 of the various sizes, styles and qualities of paper manufactured. 
 
 Paper is quoted by the "Ream." The modern ream contains 20 
 quires of 25 sheets each or 500 sheets altogether. 
 
 News Paper. 
 
 News Paper is the most ordinary of papers and is made entirely 
 of wood pulp. It comes only in one color — White. If tinted, it is 
 called Poster paper and comes in various colors. The stock sizes of 
 newspaper are 22x30, 22x32, 22x35, 24x35, 24x36, 25x38, 
 26x38, 26x40, 28x42, 29x43, 29x44, 30x44, 32x44, 35x44, 
 35 x 48, 36 x 48. The weight varies from 25 pounds to 65 pounds per 
 ream. The basis generally is 24 x 36 — 32 pounds per ream. 
 
 Outside of the printing of newspapers, this grade of paper is used 
 for dodgers, hand bills, placards, etc., which are to be printed in very 
 large quantities and distributed promiscuously. 
 
 Book Paper. 
 
 Book Paper comes in different qualities, finishes and tints. It 
 varies from plain machine finished (M. F.), sized and calendared 
 (S. & C), sized and supercalcndarcd (S. & S. C.) for text and 
 engravings, which print readily, to the most highly finished stock, 
 and all kinds of antique and special finishes, for any sort of art 
 printing. 
 
 Coated Paper, Enameled Paper, Plate Paper, are subdivisions of 
 book paper. These papers all have a finish, which adapts them to 
 fine half-tone printing, color work, etc. 
 
 Book paper of the cheaper grade is used for hand bills, etc., of 
 limited editions. Also for cheap pamphlets, leaflets, etc. The better 
 grades go into booklets, circulars and cheap catalogues. Enameled 
 and Plate paper must be used in Catalogs, where half-tone illustra- 
 tions are to be inserted, also for fine color work. 
 
 ! 181 1
 
 CHAPTER XXVII. 
 
 Writing Paper. 
 Writing paper is used for all kinds of commercial forms, which 
 are impregnable to fluid ink. Plain White Writing, Colored Writing, 
 Rond Papers, Linen Papers, I>edgcr Papers, all come under this 
 head. Quality and finish vary very much. The right selection of 
 writing papers for commercial forms is very important. 
 
 Sizes of Writing Papers are as follows: 
 
 Cap . . 14 x IT Double Demy, Broad 21 x 82 
 
 Crown , If. k }0 Double Demy, Long 16x43 
 
 Demy 16 x 81 Imperial 28 x 31 
 
 Folio .....!...... .17 x 22 Double Medium, Broad 23 x 3G 
 
 Medium 18 x 23 Double Medium, Long 18 x 46 
 
 Royal 19 x 24 Double Royal, Broad 24 x 88 
 
 Double Cap 17 x 26 Double Royal, Long 10 x 48 
 
 Super Royal 20 x 26 
 
 Writing Paper is used for all kinds of commercial and legal 
 forms, letter heads, envelopes, circulars, announcements, invitations, 
 bank checks, etc. 
 
 Cover Paper. 
 
 Cover Papers offer the greatest range of all kinds of paper, for 
 they comprise every conceivable shade and color which can be pro- 
 duced. The uses of these stocks seem to be without limit. Another 
 important feature in modern cover papers is the variety of finishes, 
 antique, laid, linen, hand-made, crash and others in great variety, 
 contributing to the style and quality which are desired in work 
 intended primarily to attract favorable attention. 
 
 Stock sizes in Cover Papers are 20 x 25 and 22 x 28. Other sizes 
 can be had to order only. Weights can be obtained in these sizes 
 from 25 pounds per ream to 125 pounds. 
 
 Cover papers, as the name implies, are mainly used for covers of 
 pamphlets, booklets, folders, catalogs, etc. In the selection of a 
 cover, the text, the illustrations, color combination, etc., must be 
 carefully considered to obtain the desired effect. Cover Papers, 
 however, can also be used for many kinds of printing matter, such 
 as programs, folders, leaflets, letter inserts, circulars, announce- 
 ments, etc. 
 
 Illustrations. 
 
 The illustrating of advertising matter is done by various pro- 
 cesses. Mostly half.-tone engravings, line engravings, zinc etchings 
 or wood engravings are used. 
 
 [432]
 
 ADVERTISING. 
 
 Half-tone Engraving. 
 
 Half-tone Engraving is the only process known today by which 
 Paintings, Wash Drawings, Photographs or natural objects may be 
 engraved by chemical methods for use upon the printing press. 
 
 A Negative is made by interposing a screen between the object 
 to be reproduced and the sensitized plate in the camera. This 
 "screen" consists of a glass plate which is finely ruled with horizontal 
 and vertical lines. It divides the image on the photographic negative 
 into dots and lines. A print from the negative is made upon a 
 sensitized copper plate, which is then etched in an acid bath. The 
 size of the dots determines the printing surface of the plate. 
 
 A half-tone plate made with a screen of 60 lines to the square 
 inch can be stereotyped and be printed on the perfection presses of 
 the metropolitan dailies. 
 
 A half-tone plate made with screens of 80 or 100 lines will print 
 on a platen press on news or book paper. It can be electrotyped. 
 
 A half-tone plate made with screens of 120 or 130 lines can be 
 printed on super-calendared book paper or plate paper, but not on 
 news paper. It can be electrotyped, or better, nickeltyped. 
 
 Half-tone plates of 150 or 175 line screens, should be printed 
 only on the best of enameled or plated paper. Always use originals. 
 The copy for half-tone engravings ought to be very clean, sharp 
 and distinct, free from all defects, as the half-tone is an absolutely 
 faithful reproduction of the same. In cases of photographs of indus- 
 trial objects, where much detail must be shown, a retouching of the 
 photograph is necessary. This requires very difficult art work and is 
 charged extra. 
 
 Line Engraving (Zinc Etching) can be made from any Pen and 
 Ink Drawing, printed matter, or anything consisting of distinct lines 
 and dots, by photographing the same without screen and printing 
 from the negative on a sensitized zinc plate. This is then etched in 
 an acid bath, and produces a perfect printing plate, which can be 
 used as original, or be duplicated by stereotyping or electrotyping. 
 
 Wood Engraving. 
 
 Wood ENGRAVING has been to a great extent supplanted by the 
 chemical processes of engraving. Still, where special sharpness of 
 outline, or intricate detail work, is desired, it often becomes neces- 
 sary to have the subject engraved on wood. Then, again, it is de- 
 cidedly the best process for mechanical subjects and illustrations 
 which are to be extensively duplicated. 
 
 I 188]
 
 CHAPTER XXII. 
 
 Electrotyping. 
 
 Electrotyping is not engraving, but a process for duplicating 
 engravings, cuts, type forms, etc. A mold of the object to be dupli- 
 cated is taken in wax, and, together with a piece of copper, the mold 
 is hung into an acidulated solution of copper sulphate. An electric 
 current is led into the vat and with its aid a deposit of copper forms 
 on the mold. When this shell of copper is of sufficient thickness, it 
 is removed from the mold and backed up with type metal. The plate 
 thus obtained is then mounted on wood or metal and finished for 
 use on the printing press. 
 
 The quality of the electrotype depends on the skillfulness of the 
 molder. the length of time given for the deposit of the copper and 
 on the work by the finisher. The life of the electrotype depends on 
 the quality. Good electrotypes will stand 250,000 impressions or 
 more. Poor electrotypes will wear out with 10,000 impressions, if 
 the patience of the printer lasts that long. 
 
 NlCKELTYPING. 
 
 Nickeltyping involves practically the same process as electro- 
 typing, only nickel metal is used instead of copper. The finer fibre 
 of Nickel results in a. sharper duplicate and an improved printing 
 surface. Nickeltyping is to be preferred in the duplicating of half- 
 tones. 
 
 Stereotyping. 
 
 Stereotypes are almost exclusively used by newspapers for dupli- 
 cating their forms. A mold or matrix is made by beating wet paper- 
 mache into the form and drying and hardening this matrix by heat- 
 ing the form to a high temperature. The matrix is placed in a cast- 
 ing box and melted type metal poured thereon. Wood base cuts 
 should not be used in any form which is to be stereotyped. 
 
 [434]
 
 APPENDIX. 
 
 CONSTITUTION. 
 
 • 
 
 ARTICLE I. 
 
 NAME AND LOCATION. 
 
 Section 1. The name of this Association shall be 
 
 and its principal office shall be located in 
 
 , in County, in the 
 
 State of Ohio. 
 
 ARTICLE II. 
 
 PURPOSE. 
 
 Section 1. This Association is organized for the purpose of 
 raising money to be loaned to its members and others, and for such 
 other purposes as are authorized by law. 
 
 ARTICLE III. 
 capital stock. 
 
 Section 1. The capital stock shall be $ divided into 
 
 shares of $ each. 
 
 Sec. 2. Stock may be issued to members in whole or fractional 
 shares upon such terms and conditions as the By-Laws may provide. 
 
 ARTICLE IV. 
 
 MEMBERS. 
 
 Section 1. Any one, upon subscribing for, or in any manner 
 becoming entitled to, or the owner of any part of the capital stock 
 of this Association, shall be deemed a member thereof and a stock- 
 holder therein to the extent of the balance of his credits of record 
 on account of said stock. 
 
 Sec. 2. At all meetings of the members, each member having 
 stock of record for at least 30 days prior thereto, shall be entitled 
 either in person or by proxy held by a member, to one vote for each 
 share of stock, and a proportionate fractional vote for each fractional 
 share of stock, so held of record by him, and on which all past due 
 
 • Specimen Constitution prepared by the Ohio Building Association League 
 Committee. 
 
 [486]
 
 APPENDIX. 
 
 installments of dues and other charges have been fully paid, but no 
 member shall cumulate his votes, and no member shall vote more 
 than twenty shares held in his own right. 
 
 ARTICLE V. 
 
 ANNUAL MEETINGS. 
 
 Section 1. An annual meeting of the members of this Association 
 for the election of Directors, the consideration of amendments to this 
 Constitution, and for the transaction of all other proper business shall 
 be held at the office of the association, or at such other place as the 
 
 Board of Directors may appoint, on the day of 
 
 of each year, o'clock m. 
 
 Sec. 2. Should the Board of Directors appoint any place other 
 than the office of the Association for such meeting, they shall publish 
 a notice of the same, in some newspaper regularly issued in and of 
 general circulation in County, Ohio. 
 
 Sec. 3. All elections of Directors shall be by ballot, and the polls 
 for voting shall be kept open from 7 :00 p. m. until 9 :00 p. m. They 
 shall be conducted by two judges and two clerks, previously ap- 
 pointed by the Board. A plurality of the votes cast shall be sufficient 
 to elect and in case of a tie between candidates, it shall be decided 
 by lot. 
 
 Sec. 4. The members present shall constitute a quorum. 
 
 Sec. 5. Candidates for Directors may be nominated by any mem- 
 ber by filing the names of the same with the Secretary at least two 
 weeks prior to the election. 
 
 ARTICLE VI. 
 
 WEEKLY MEETINGS.* 
 
 Section 1. Weekly meetings of the Association and the Board 
 of Directors, for the receipt of money, the making of loans, and for 
 the transaction of all the ordinary business of the Association, shall 
 be held at the office of the Association at such times as the By-Laws 
 may provide. 
 
 ARTICLE VII. 
 
 DIRECTORS AND OFFICERS. 
 
 Section 1. This Association shall have a Board of 
 
 Directors, elected by the members in such number at each annual 
 meeting, to serve for such times that the terms of one-third of the 
 Directors as nearly as may be will expire each year. 
 
 * To associations that have weekly meetings as their only office hours the 
 above is recommended. Otherwise sec Sec. 3, Art. VII. 
 
 [4361
 
 CONSTITUTION AND BY-LAWS. 
 
 Sec. 2. The Directors shall choose annually a President, one or 
 more Vice-Presidents, from their number, and a Secretary, Treas- 
 urer, and Attorney, who may or may not be members of the Board. 
 They may create such committees as they may deem necessary. 
 
 Sec. 3. The Directors shall hold at least one meeting each week 
 at such time and place as they may select, or as the By-Laws may 
 provide ; members shall constitute a quorum. 
 
 Sec. 4. The Directors shall have the right to fill all vacancies 
 occurring in their own body, or in any of the offices of the Associa- 
 tion, for the unexpired term. 
 
 Sec. 5. The Directors shall fix the salaries and determine the 
 compensation of all officers and employes of the Association, and 
 they may, at their discretion, remove or suspend any officer or em- 
 ploye for malfeasance in office or neglect of his duties. 
 
 Sec. 6. The Directors shall have the power to adopt, amend, 
 repeal and enforce such By-Laws, resolutions and orders as they 
 may deem necessary to enable them to properly manage and control 
 all the business, property, rights, and affairs of this Association. 
 They shall provide for the issue and cancellation of stock; for the 
 deposit with and the withdrawal of funds from designated deposi- 
 taries ; and the carrying of funds in the office of the Association 
 for the most convenient transaction of business ; for the making of 
 loans, and no loan shall be made until it has been approved by the 
 Board of Directors ; and they are hereby authorized to do all and 
 singular the things necessary to enable this Association, through 
 them, to exercise all the powers authorized by law that are not in- 
 consistent with this Constitution. 
 
 ARTICLE VIII. 
 
 AMENDMENTS TO CONSTITUTION. 
 
 Section 1. This Constitution may be amended at any annual 
 meeting of the stockholders of the Association by a two-thirds vote 
 of the stock represented in person or by proxy held and voted by 
 members of this Association ; provided, however, that all proposals to 
 amend shall be presented in writing to the Board of Directors at some 
 regular meeting, at least thirty days prior to the annual meeting, and 
 the amendment adopted shall be substantially the same as proposed. 
 
 ARTICLE IX. 
 
 CONSOLIDATION OR DISSOLUTION. 
 
 Section 1. The Association being a permanent one, it cannot be 
 determined at what time it shall or can be consolidated or dissolved. 
 
 [487] 
 
 20
 
 APPENDIX. 
 
 If, however, the shareholders desire to consolidate or dissolve it, a 
 resolution in writing, signed by members representing at least one- 
 third of the shares, asking for such consolidation or dissolution, 
 must be submitted to the Directors at a regular meeting. The Board 
 of Directors shall then take the legal course for calling a special 
 meeting of the sharebolders to act on the resolution. If two-thirds 
 of all the shares vote by ballot for a consolidation or dissolution of 
 the association it shall be consolidated or dissolved. The Board of 
 Directors shall then take the necessary steps to consolidate or 
 liquidate the affairs of the Association. 
 
 BY-LAWS. 
 
 PRESIDENT AND VICE-PRESIDENT. 
 
 Section 1. The President shall preside at all meetings of the 
 Association, and of the Directors, and shall perform such other 
 duties as usually pertain to his office, or may be required of him. 
 
 Sec. 2. Any Vice-President shall perform the duties of the 
 President in his absence or disability. 
 
 SECRETARY. 
 
 Sec 3. The Secretary shall keep a complete record of all the 
 proceedings of the Board of Directors, and of all members' meet- 
 ings. He shall be the general receiving, disbursing and managing 
 officer of the Association, and under the Board of Directors and its 
 committees, and with the assistance of such employes and other of- 
 ficers as the Board may provide, shall have the care and management 
 of all the Association's business, property, rights, and affairs, not 
 otherwise provided for. 
 
 TREASURER.* 
 
 Sec. 4. (*Inasmuch as the Treasurer is optional, associations 
 can make their own provisions.) 
 
 ATTORNEY. 
 
 Sec. 5. The Attorney shall make or cause to be made all neces- 
 sary and proper search and examination of the title to property of- 
 fered as security for loans; shall see that the mortgages made to this 
 association or purchased by it, and all assignments of mortgages, are 
 properly drawn, executed and recorded, and file with the secretary 
 
 [438]
 
 CONSTITUTION AND BY-LAWS. 
 
 his report in writing of the condition of title to premises described 
 in each mortgage. He shall represent the Association in all legal 
 proceedings in which it is interested and shall have power to enter 
 its appearance therein ; he shall give his advice and counsel when- 
 ever requested, draw all necessary legal papers and render such 
 further services as the Board may require. 
 
 Committees of the Board of Directors, 
 executive or finance committee. 
 Sec 6. (As this varies so much we recommend that each asso- 
 ciation adopt such provisions as are best fitted for their work.) 
 
 APPRAISING OR SECURITIES COMMITTEE. 
 
 Sec. 7. (As this varies so much we recommend that each asso- 
 ciation adopt such provisions as are best fitted for their work.) 
 
 INDEMNITY BONDS. 
 
 Sec. 8. All officers and employes who have charge or possession 
 of money, securities or property, before entering upon their duties, 
 shall give bond with at least two sufficient sureties, or issued by 
 an authorized surety company to the satisfaction of the Board of 
 Directors. 
 
 TENURE OF OFFICE. 
 
 Sec 9. All officers and members of standing committees shall 
 serve until their successors shall be chosen and qualified. 
 
 MEETINGS OF DIRECTORS. 
 
 Sec. 10. Regular meetings of the Board shall be held at the 
 
 offices of the Association on the day of each week, at 
 
 o'clock m. 
 
 Sec. 11. Special meetings may be called at any time by the Presi- 
 dent or Secretary by notice to each Director, whenever the business 
 of the Association may require. A majority of the Board shall 
 constitute a quorum, but no loan shall be approved except by the 
 unanimous vote of all Directors present. 
 
 Sec. 12. (Each association shall fix its own hours of business.) 
 
 WHO AUTHORI7ED TO SIGN FOR THE ASSOCIATION. 
 
 Sec 18. All certificates of stock and all releases of mortgages 
 shall be signed by the President and Secretary, and all certificates of 
 deposits, all orders, checks, drafts, and other instruments for the 
 
 [489]
 
 APPENDIX. 
 
 receipt or disbursement of money, and all other instruments in writ- 
 ing not otherwise provided for, shall be signed by the Secretary or 
 disbursing officer or officers. 
 
 DEPOSITORIES AND DISBURSEMENTS. 
 
 Sec. 14. All funds shall be under the control of the Board of 
 Directors, who shall cause the same to be deposited in the name of 
 the association with its designated depository or depositories, and 
 such funds can be withdrawn from such depositaries only on 
 check signed by the disbursing officer or officers for withdrawals, 
 dividends, disbursements on loans, investments, expenses of manage- 
 ment and for all such other purposes as the Board of Directors deem 
 necessary for carrying on the business of the Association. 
 
 Sec. 15. For cash payments in the current business of the office 
 the disbursing officer or officers are authorized to draw money from 
 the depositories of the Association as other funds are withdrawn, in 
 such sums as the Board of Directors from time to time may order. 
 
 Stock, 
 running stock. 
 Sec. 16. Members who do not pay the face value of their stock 
 at the time of subscribing, may pay the same in installments of not 
 less than 25 cents per week on each $100.00 thereof, for which pay- 
 ment receipt shall be given them in a pass-book, and each member so 
 paying shall at any time be deemed the owner of stock equal to the 
 balance of his credit on his pass-book, and a certificate of paid-up 
 stock may be issued for the even hundreds thereof. 
 
 PAID-UP STOCK. 
 
 Sec. 17. Where the face value of the stock is paid at the time 
 of subscribing, a certificate therefore may be executed by the Presi- 
 dent and Secretary and delivered to the member. 
 
 LOAN STOCK.* 
 
 Sec. 18. Loan stock may be issued at the option of the Board of 
 Directors to anyone desiring to make a mortgage loan. Each owner 
 of this stock shall make such payment thereon as shall be agreed upon 
 in making the mortgage loan. The Association may, at its option, 
 or when the member requests it and the Association will consent, 
 apply the net credit on the stock to the payment of the mortgage 
 loan and the charges thereunder, with such cancellation of stock and 
 
 * This section 18 to be used if you want to make all loans bona fide on 
 stock and keep all loan accounts separate from running stock. If used must be 
 reconciled with section 33. 
 
 [4401
 
 CONSTITUTION* AND BY-LAWS. 
 
 reduction of the general payments as the Association will permit. 
 All advance payments thus applied shall be deducted from the agreed 
 payment credits. 
 
 PERMANENT STOCK. 
 
 Sec. 19. Permanent stock of the par value of one hundred dollars 
 per share may be issued, which shall constitute the permanent capital 
 of the Association, and cannot be withdrawn until the final dissolu- 
 tion of the Association. 
 
 DEPOSITS. 
 
 Sec. 20. Special deposits of money may be received by the Asso- 
 ciation at such times and in such amounts and upon such terms and 
 conditions as the Board may order or as may be agreed upon at the 
 time of the deposit, and such special deposits can be withdrawn only 
 upon the same terms as are provided for withdrawing members in 
 the general withdrawal rule of this Association, unless otherwise 
 specially specified in the certificate or other evidence of deposit. 
 
 transfers. 
 Sec. 21. All transfers of stock and deposits shall be in writing, 
 properly signed, and shall not be valid as against the Association 
 until the transfer shall be duly entered upon its books upon surrender 
 of the certificate or pass-book; and all stock and deposits shall be 
 subject to a first lien thereon in favor of the Association for any 
 indebtedness of the member to the Association. 
 
 JOINT AND SURVIVORSHIP ACCOUNT. 
 
 Sec. 22. Both stock and deposit accounts, whether evidenced by 
 certificates, pass-books, or otherwise, may be issued, carried and paid 
 as joint and survivorship accounts, in the names of two or more 
 persons, whether adults or minors, when the joint owners have given 
 to the Association a joint order in substance or effect as follows: 
 
 We, the undersigned owners of joint 
 
 account No , in 
 
 Association of Ohio, do hereby 
 
 agree and jointly authorize and order said Association to pay any 
 and all of the credits now or hereafter on said account, on the order 
 of any one or more of us, both before, after and notwithstanding the 
 death or other incapacity of any one or more of us. And such pay- 
 ment shall be a valid acquittance of said Association as against any 
 one at any time concerned. 
 Done !&•■•• 
 
 [111]
 
 APPENDIX. 
 
 CANCELLATION OF STOCK. 
 
 Sec. 23. The Board of Directors may require any member to 
 surrender his pass-book or certificate and receive the amount stand- 
 ing to his credit togedier with all dividends declared and remaining 
 unpaid thereon and an equitable share of the earnings of the Asso- 
 ciation since the last dividend was declared, to be determined by 
 the Board. All rights as members shall cease with the notice to 
 surrender. 
 
 GENERAL WITHDRAWAL RULE. 
 
 Sec. 24. Members and special depositors whose stock or deposits 
 are not pledged to this Association may as a general rule, upon writ- 
 ten application to the Secretary, withdraw all or any part of their 
 stock, credits or deposits at any time without previous notice, but to 
 protect the interest of depositors and borrowers and avoid sacrifice 
 of securities notices of withdrawal may at any time be required and 
 the liability to pay further dues, and the right to dividend on stock 
 credits and interest on special deposits shall cease with any applica- 
 tion to withdraw. All persons withdrawing shall be entitled to re- 
 ceive the amount of all credits at the time of the application to with- 
 draw less any member's share of the Association's loss in excess of 
 the contingent fund. The required notices to withdraw shall be 
 filed in the order in which they are received and paid from the 
 regular receipts of the Association in the order in which they are 
 filed as fast as 50 per cent of the regular receipts of the Association 
 will pay them ; but the Board of Directors may, at its discretion, use 
 all the regular receipts of the Association to pay withdrawals. 
 
 All withdrawals shall be taken from the oldest deposits and no 
 withdrawal from any one account or certificate shall exceed one 
 thousand dollars in each thirty days ahead of other pending applica- 
 tions for withdrawal ; but the Board of Directors may, at its discre- 
 tion, pay withdrawals not exceeding $25 at one time, nor exceeding 
 $100 within thirty days regardless of the order of application. 
 
 Sec. 25. In case of the loss of a pass-book or certificate, pay- 
 ment of the money deposited thereon may be made on such terms 
 as the Board may prescribe. 
 
 EARNINGS. 
 
 Sec. 26. How Distributed. On the first of 
 
 and of each year the earnings of the 
 
 Association for the preceding six months shall be ascertained. Out 
 of these there shall be deducted and be applied as follows : 
 
 [442]
 
 CONSTITUTION AND BY-LAWS. 
 
 First — All expenses, whether paid or not, and interest due. 
 
 Second — Such sum as the Board may determine for the Reserve 
 Fund ; provided that not less than the amount required by law shall 
 be so reserved. 
 
 Third — Such dividend as the Board may declare to be computed 
 and paid as hereinafter provided. 
 
 Fourth — The residue of said earnings may be carried as Un- 
 divided Profits, to be used as other profits in such way as the Board 
 under the law may direct ; provided, that the total Undivided Profits 
 shall at no time exceed 3 per cent of the assets. 
 
 DIVIDENDS. 
 
 Sec. 27. Such dividend as the Board may declare shall be divided 
 among the members in proportion to the amount of money deposited 
 on stock by each and the length of time the same has been on deposit 
 with the Association less the withdrawals. 
 
 PLAN FOR CALCULATION OF DIVIDENDS. 
 
 Sec. 28. (Owing to the difference of plans this is left to the 
 individual associations.) 
 
 LOANS AND INVESTMENTS. 
 
 Sec. 29. To Whom Made. The funds of this Association shall 
 be loaned to its members and others on such terms and at such rates 
 of interest as shall be fixed by the Board of Directors. 
 
 Sec. 30. Security. All loans made by this Association shall be 
 secured by pledge of pass-book or certificate of this Association on 
 which there has been paid in a sum equal to the amount loaned, 
 which shall be known as temporary loans; or by first mortgage of 
 real estate, which shall be known as "Mortgage Loans"; or by pledge 
 of such other securities as may be acceptable to the Board of 
 Directors, which shall be known as collateral loans. But second 
 mortgage of real estate may be taken where this Association already 
 holds first mortgage. 
 
 Sec. 31. Temporary Loans. These loans may be made by the 
 Secretary at any time when there is money in the treasury not other- 
 wise appropriated and upon such terms and conditions as the Board 
 may from time to time prescribe. 
 
 Sec. 32. Mortgage Loans. Loans on mortgage shall be made only 
 on application signed by the borrower or his agent, and containing 
 such information concerning the security offered as the Board may 
 
 [443]
 
 APPENDIX. 
 
 require. Such applications shall pass at once to the Appraising Com- 
 mittee, who shall report on the security offered as soon as possihle 
 and when the Board has signified its approval of the loan, the 
 application shall pass to the attorney, who shall see that the neces- 
 sary papers are executed and the loan completed ; provided, the title 
 to the property is satisfactory. Mortgage loans shall be limited to 
 
 per cent as nearly as may be, of the value of the security offered 
 
 and where the money is loaned for the purpose of erecting buildings 
 on the property mortgaged, it shall be advanced as the building 
 progresses in such installments as the Board may determine. 
 
 Sec. 33. Repayment of Loans. Loans may be made payable in 
 fixed annual or semi-annual payments, which shall be known as 
 straight loans or in stated weekly or monthly payments, which shall 
 be known as installment loans. The terms and conditions of each 
 loan shall be set forth in the obligation given by the borrower for 
 the repayment of the same, but in all installment loans the rate of 
 payment shall be not less than one dollar per month on each $100.00 
 borrowed, and the borrower's payments shall be applied : 
 
 First — To the discharge of the interest. 
 
 Second — To the repayment of insurance, taxes or other charges 
 against the borrower provided for in these By-Laws or in his 
 obligation. 
 
 Third — The remainder of the borrower's payments shall be 
 credited upon the principal of his obligation at such stated intervals 
 as the Board may prescribe, which said intervals shall also be stated 
 in the borrower's obligation, and interest shall thereafter be charged 
 only upon the amount which the borrower still owes. 
 
 Sec. 34. Collateral Loans. Loans on collateral security shall be 
 made only when there is money in the treasury in excess of the 
 demand for mortgage and temporary loans. The procedure for 
 obtaining a loan on collateral shall, as far as possible, conform to 
 that prescribed for obtaining a loan on mortgage. 
 
 Sec. 35. Insurance. When the Board of Directors see fit they 
 may require any borrower to cause the buildings on mortgaged 
 property to be insured for the benefit of this Association against loss 
 by fire in some fire insurance company to be approved by them, in an 
 amount which they shall name, and to keep the same insured during 
 the continuance of the loan, and the policy of insurance, properly 
 endorsed by the Company issuing the same, shall be deposited with 
 the Secretary. Upon the failure of any borrower to so insure said 
 
 [AAA]
 
 CONSTITUTION AND BY-LAWS. 
 
 property as required, or upon expiration or cancellation of any 
 policy deposited as aforesaid, the Board may insure the same at the 
 expense of such borrower. 
 
 Sec. 36. Taxes. If any property mortgaged to the Association 
 be in default for non-payment of taxes, the Board of Directors may 
 instruct the Secretary to pay the same and charge the amount to the 
 borrower. 
 
 Sec. 37. Interest on Above Payments. All sums advanced as 
 above provided, for insurance and taxes on property mortgaged to 
 this Association, shall bear the same rate of interest as the principal 
 debt, and the mortgage given to secure any debt shall also stand as 
 security for the repayment of such insurance and taxes and the 
 interest thereon. 
 
 Sec. 38. Foreclosures. If any borrower shall permit any pay- 
 ment required by his obligation to remain due and unpaid for the 
 period of months, the entire amount of such loan shall there- 
 upon become due and payable, and the Directors may order such 
 mortgage foreclosed. 
 
 Sec. 39. Expense of Loans. The cost of viewing the property, 
 examining the records and any other evidence of title, and preparing 
 and recording the mortgage for loans on real estate shall be fixed 
 by the Board of Directors, and shall be paid by the borrower. 
 
 Sec. 40. Investments. The funds of this Association may be 
 invested as provided by law. 
 
 Sec. 41. Reports. Each member shall be entitled to receive semi- 
 annual or annual reports, showing the condition of the Association. 
 
 miscellaneous. 
 
 Sec. 42. Re-Issue of Stocks. All shares withdrawn and for- 
 feited and all shares paid up and the money thereon withdrawn, and 
 also all shares on which loans have been taken and cancelled or paid 
 up, shall revert to and become the property of the Association, and 
 may be re-issued by the Board of Directors. 
 
 Sec. 43. Pass-Book. All pass-books shall be handed in to the 
 Secretary for audit in and of each year. 
 
 Sec. 44. Amendments. These By-Laws may be amended at any 
 regular meeting of the Board of Directors by a two-third vote of the 
 Directors present, but all proposals to amend the same shall be made 
 in writing at a regular meeting of the Board of Directors, at least 
 ten days before action is taken thereon. 
 
 I 146]
 
 AJPPENDIX. 
 
 RULES. 
 
 In order tliat the members may at all times be informed as to 
 the proper rotation or order of business, and, particularly for tbe 
 convenience of the directors themselves, the directors should adopt 
 a set of rules for governing the business of the association. These 
 should be prepared carefully and changed and amended from time 
 to time as may be found necessary in order to make them more 
 practicable and popular among the members. Since such rules must 
 be arranged to suit local conditions and circumstances it is not 
 possible to outline them very specifically in a general work of this 
 character. 
 
 The object of the business rules of an association and the policy 
 of the directors should be to have the business so arranged that it 
 will run along smoothly and rapidly, without friction or delay, so 
 that members may not be annoyed by having to wait. At the same 
 time the meetings should be made of a pleasant and sociable a char- 
 acter as possible so as to be enjoyable to members and visitors. 
 Particular pains should be taken by the directors to make the meet- 
 ings suitable and pleasant places for ladies to visit, for quite a 
 number of ladies become members of associations. 
 
 A few specimen rules are given below which will be found 
 suggestive : 
 
 1. At the specified time for the collection of dues the president 
 shall call the meeting to order, and the secretary and his assistants 
 and the members of the finance committee shall take their respective 
 places. 
 
 2. The secretary or an assistant shall enter all dues paid in in 
 the Dues Register and the members of the finance committee shall 
 count all moneys and receipt for them.* 
 
 3. When the time for receiving money has expired the secre- 
 taries and the finance committee shall count the receipts and check 
 up the books. to see if the receipts and entries correspond. As soon 
 as this is done they shall report to the president that they are ready 
 to proceed with the further business of the evening. 
 
 • * In some associations the rule is that an assistant secretary, or a member 
 of the finance committee, shall make the entries in the Duea Register, and the 
 secretary" himself shall attend to issuing books to new members and other mis- 
 cellaneous business of that kind, and particularly to giving information and 
 answering the numerous questions that are always being asked by members in 
 an association. 
 
 During the time of receiving dues the directors who are not officers or mem- 
 bers of the finance committee should make themselves useful by circulating 
 among die members and visitors present, making them acquainted with one 
 another, giving information in regard to the association and its work, and 
 making the meeting as pleasant and attractive as possible. 
 
 [44G]
 
 CONSTITUTION AND BY-LAWS. 
 
 4. The following shall be the order of business for the directors' 
 meeting : 
 
 (1) Call to order. 
 
 (2) Roll call. 
 
 (3) Reading of minutes. 
 
 (4) Sale of money.* 
 
 (5) Reports of officers and committees. 
 
 (6) Unfinished business. 
 
 (7) Miscellaneous and new business. 
 
 (8) Reports of receipts and disbursements. 
 
 (9) Adjournment. 
 
 * The sale of money should be placed as early as possible on the order of 
 business so as not to keep members waiting too long. The directors' meeting does 
 not begin until after the time of receiving dues has expired. Members who 
 come early in the evening, in time to pay their dues, and are then compelled to 
 wait until the directors transact all other business before they can bid on money, 
 find the delay very irksome and annoying. 
 
 |447|
 
 APPENDIX. 
 
 Laws of Ohio Relating to Building and 
 Loan Associations 
 
 IEoitoi's Note — We herewith .show Ohio State Laws because of their con- 
 crete form. Much time has been given the subject in the Ohio Legislature by 
 Representatives, most of whom had actual Building Association Experience, and 
 were members of the Legislative Committee of the Ohio State League. These 
 laws will serve as a safe guide on similar legislation in other states.] 
 
 Gbhbsal Code 
 SECTION 
 
 9643 Interpretation of terms. 
 064 4 Name. 
 
 964,1 When business may be com- 
 menced. 
 9616 Directors, term of office. 
 961? Powers. 
 
 9648 Receiving of deposits; joint ac- 
 
 counts. 
 
 9649 Issue of stock, vote. 
 
 9650 Assessments. 
 
 96C>1 Withdrawal of stock deposits. 
 965! Withdrawing of deposits. 
 9653 Cancellation. 
 0654 Rules as to minors. 
 
 9655 1'roperty, leasing, holding of. 
 
 9656 Borrowing money. 
 
 9657 Loans. 
 
 9658 Cancellation of loan. 
 
 9659 Reserve and undivided profit 
 
 fund. 
 
 CiP.NK.RAL. Coi E 
 
 SECTION 
 
 9600 Idle funds, how invested. 
 
 9661 May deposit idle funds. 
 
 9662 Purchase interest-bearing obliga- 
 
 tions; sale of to close up 
 business permitted. 
 
 9663 Distribution of earnings. 
 
 9664 Certificate of increase, decrease, 
 
 etc., where filed. 
 
 9665 Dissolution. 
 
 9606 Amendment of articles. 
 
 9667 Constitution and by-laws. 
 
 9668 Other powers. 
 
 9069 Banks, designation of, to receive 
 funds. 
 
 9670 Bond of officers. 
 
 9671 Reserve fund. 
 
 9072 Expenses, how paid. 
 
 9673 Dividends. 
 
 9674 Losses. 
 
 9075 Listing of shares for taxation. 
 
 Interpretation of terms. 
 
 Sec. 9643. A corporation for the puropse of raising money to be 
 loaned to its members, and others, shall be known in this chapter, 
 and in the laws relating to the bureau of building and loan asso- 
 ciations, as a "building and loan association," or as a "savings asso- 
 ciation." Associations organized under the laws of this state shall 
 be known as "domestic" associations, and those organized under the 
 laws of other states or territories, as "foreign" associations. Asso- 
 ciations may be organized and conducted under the general laws 
 of Ohio relating to corporations, except as otherwise provided in 
 this chapter. (99 v. 528-1.) 
 
 For a discussion of former analagous statutes, see Sayle v. Savings & 
 Loan Co. 2 O. C. C. (N. S.) 401, 15 O. C. D. 503 | affirmed without report. 
 Savings fit Loan Co. v. Sayle, 72 O. S. (639)1; Loan & Building Co. v. 
 Kuehnert, 7 O. N. P. 264. 6 O. D. (N. P.) 502. 
 
 A similar statute was held not to grant banking powers within the mean- 
 ing of Article XIII, Sec. 7, of the Ohio constitution: Bates v. Savings & 
 Loan Association, 42 O. S. 655 (following Dearborn v. Savings Bank, 42 
 O. S. 617). 
 
 The act of February 21, 1867, authorizing building associations to become 
 incorporated, as provided in certain sections of the "'act to provide for the 
 creation and regulation of incor|>orated companies, passed May 1, 1852," has 
 reference to the sections named which were then in force, and not the 
 original sections which had been repealed: Land & Building Association v. 
 Gallagher, 85 O. S. 208. 
 
 1448]
 
 LAWS OF OHIO. 
 
 An executory contract between a building association, incorporated under 
 the act of May 9, 1808, (.S. & S. 194), and one of its members in respect 
 to shares, the maximum number which, under the statute, a member may 
 hold in his own right, is ultra vires and cannot be enforced by action: Simp- 
 son v. Building & Savings Association, 38 O. S. 349. 
 
 The members of a building and loan association have a mutual interest 
 in their affairs, whether they are borrowers or not: Eversmann v. Schmitt, 
 
 53 O. S. 174. .-_-.«• 
 
 Building and loan associations are corporations for profit: Hinman v. 
 Ryan. 3 O. C. C. 589, 2 O. C. D. 305. 
 
 The dues payable to a building and loan association are analagous to the 
 installments of stock subscriptions: Hinman v. Ryan, 3 O. C. C. 529, 2 
 O. C C. 305. 
 
 If the building and loan association becomes insolvent and is placed 
 in the hands of a receiver the only dues which are to be paid are the 
 assessments which are ordered by the company in order to equalize the claims 
 of the members among themselves and to pay the debts of the association: 
 Hinman v. Ryan, 3 O. C. C. 529, 2 O. C. D. 305. 
 
 That a manufacturing corporation may become a borrowing member of 
 a building and loan association, see Bank Co. v. Spinning & Stamping Co. 
 14 O. C. C. 1, 7 O. C. D. 27 5 (affirmed Bank v. Spinning & Stamping Co., 
 60 O. S. 603). . ..vi 
 
 An allegation in a petition that a corporation did certain acts which only 
 a building and loan association could lawfully do is equivalent to an allega- 
 tion that such corporation is a building and loan association: Carmichael v. 
 Savings & Loan Company, 15 O. D. (N. I*.) 341. . 
 
 For a decision under a former statute which provided for rebating the 
 interest as the dues were paid in, see Seibel v. Building Association, 43 
 O. S. 371. 
 
 For other decisions under former statutes on the subject of building 
 and loan associations, see Building Association v. Vogeler, 7 O. N. P. 605, 
 O. D. (N. P.) 581; Eversmann v. Schmitt. 11 Dec. Rep. 9, 24 Bull. 56. 
 
 Name. 
 
 Sec. 9644. The name of every such corporation hereafter organ- 
 ized, or heretofore organized and hereafter changing its name, shall 
 begin with any word it may select, and end with the word "company" 
 or with the word "association." It also shall use its name in any 
 order it designates, and if it so desires, with other words not for- 
 bidden by law, any one or more of the following words, or com- 
 bination of words, at its option : "Savings," "building," "loan," 
 "savings and loan," or "building and loan." But such association 
 shall not use the words "bank," "banking" or "trust," nor any one 
 or more of them in combination. (99 v. 528-2.) 
 
 Prior to this statute a building and loan association mi«lit call itself a 
 "loan and trust company." Cramer v. Trust Co., 72 O. S. 395. 
 
 When business may be commenced. 
 
 Sec. 9645. The capital stock named in the articles of incorpora- 
 tion shall be deemed to refer to the authorized capital. The organ- 
 ization may be completed and business commenced when five per 
 cent thereof is subscribed, and the names and addresses of its 
 officers and not less than two copies of its constitution and by-laws 
 have been filed with the inspector of building and loan associa- 
 tions. (99 v. 628-8.) 
 
 14491
 
 APPENDIX. 
 
 In organizing a building association under the act of February 21, 1867, 
 (64 O. L. 18), the certificate of incorporation was by mistake acknowledged 
 before a notary public, instead of being acknowledged before a justice of 
 the pMCC as then required. In proceeding! instituted under the act of March 
 10, 1S.">9, (S. & C. 1172), the mistake was subsequently corrected, — it was held 
 that the effect of the correction was to make the association a corporation dc 
 jure from the date of its organization, not only as against persons dealing 
 directly with the association, but as against all others: Spinning v. Building 
 Ht Savings Association, 26 O. S. 483. 
 
 Cine who has subscribed for stock in a savings and lo3n company can 
 not avoid liability upon his subscription therefor in an action brought by 
 creditors of the company to collect the unpaid subscriptions and to enforce 
 the secondary liability of the stockholders by showing that the company had 
 commenced before the amount of stock required by statute had been sub- 
 scribed; nor can he avoid liability by showing that no notice was given of 
 the meeting of stockholders to elect directors; or by showing that a bare 
 majority of the directors elected at an irregular meeting had qualified as 
 such: Dickason v. Bank Co., 6 O. C. C. (N. S.) 320, 17 O. C. D. 357. 
 
 Directors, term of office. 
 
 Sec. 9646. Directors may be elected for any term, not less than 
 one year nor longer than three years. If such term be longer than 
 one year, it shall be so arranged that as nearly as may be, the term 
 of office of an equal number of directors will expire each year. (99 
 v. 528-4.) 
 
 The directors of a building and loan association have no power to alter 
 the contract between the association and a borrowing member, without the 
 consent of the latter: Betz v. Building Association, 1 O. N. P. 42, 1 O. 
 D. (N. P.) 68. 
 
 That an association may appoint an attorney, see Loan & Building Co. 
 v. Kuehnert, 7 O. N. P. 264, 6 O. D. (N. P.) 502. 
 
 Whether the directors of an association may take advantage of facts 
 which they have learned as such directors and withdraw their individual de- 
 posits without communicating their knowledge to the stockholders at large was 
 discussed but not decided in Building and Savings Co. v. Rehn, 6 O. N. P. 
 185, 8 O. D. (N. P.) 594. 
 
 If a director of a building association receives deposits from members of 
 the association who are also his own employes, and has been given no authority 
 by the building association to receive such deposits, he acts as the agent of 
 the members in so doing, and not as agent of the building association: Ilassel- 
 meyer v. Loan & Building Co., 8 O. N. P. 195, 10 O. D. (N. P.) 670. 
 
 A building and loan association has not the power to refuse to loan its 
 funds to its members, nor to establish such rules and regulations, or so 
 conduct its business as to prevent the loan of its funds to a member who 
 bids the highest premium therefor; nor to borrow money for the purpose of 
 lending it; nor to divide or distribute its funds amon^ its members in ad- 
 vance of the distribution at the winding up of the corporation; nor to traffic 
 in shares of its own stock. Such corporations, acting in good faith and rea- 
 sonably, may compromise with a member and release him from further obli- 
 gation to the corporation, whether the indebtedness be for a loan or on sub- 
 scription: State v. Building Association, 35 O. S. 258. 
 
 Where a corporation had abused or misused its corporate powers, but not 
 in any particular as to which it is declared by statute the act shall operate 
 as a forfeiture of its charter, the court is vested with a discretion to de- 
 termine whether the corporation shall be ousted of its franchise to be a cor- 
 poration, or from the exercise of the powers illegally assumed: Mate v. Build- 
 ing Association, 35 O. S. 25S. 
 
 Powers. 
 
 Sec. 9647. Such corporation shall have all the powers set forth 
 in the following sections of this chapter. (99 v. 528-5.) 
 
 [450J
 
 LAWS OF OHIO. 
 
 Receiving of deposits; joint accounts. 
 
 Sec. 9648. To receive money on deposits, and all persons, firms, 
 corporations and courts, their agents, officers and appointees may 
 make such deposits and stock deposits, but such corporation shall 
 not pay interest thereon exceeding the legal rate. When such de- 
 posits or stock deposits are made to the joint account of two or more 
 persons, whether adults or minors, with a joint order to the cor- 
 poration that such deposits or any part thereof are to be payable on 
 the order of any one or more of such joint depositors, and to continue 
 to be so payable notwithstanding the death or incapacity of one or 
 more of the persons making them, such account shall be payable to any 
 one or more of such survivors or survivor or order notwithstanding 
 such death or incapacity. No recovery shall be had against such 
 corporation for amounts so paid and charged to such account. 
 (99 v. 528-6.) 
 
 Issue of stock; vote. 
 
 Sec. 9649. To issue stock to members on such terms and con- 
 ditions as the constitution and by-laws provide. Each member may 
 vote his stock in whole or fractional shares, as the constitution and 
 by-laws provide, but no person shall vote more than twenty shares 
 in any such corporation in his own right, nor have the right to 
 cumulate his votes. But every subscriber for stock in accordance 
 with the constitution of the association, may vote the amount of 
 stock so subscribed for, in no event to exceed twenty shares. 
 (99 v. 529-7.) 
 
 Fach association should provide itself with a corporate seal as directed 
 by the general statutes of the state, and all stock issued by the association 
 in addition to having the signatures of the president and secretary affixed 
 should bear the impress of such seal. (Ruling of the Department.) 
 
 For a discussion cf an analagius statute, see Savings Bank v. Spinning 
 & Stamping Co., 6 O. D. (N. P.) '.0 
 
 The fact that a member i f a building and loan association nobis a gri 
 number of shares than is allowed by its by-laws, but not a greater number 
 of shares than allowed by its statutes, is not a defense against a claim whicB 
 the building and loan asso iation may have against him on ace unl 01 sucli 
 shares: llj-rrman V. Building & Savings Association, 2f> O. S._ 1S6. 
 
 Where a loan is advanced to a member upon his stock, it is witnm the 
 capacity of the corporation to take security from such member by mortgage 
 or otherwise for the payment of fines, as well as stated dues which may 
 be lawfully assessed on account of such stock. The payment J)t stateo dues 
 and fines cannot be resisted by a member on tb<- ground thai the bylaws 
 of (he association have not been adopted by a vote of the directors, whore 
 it appears that they have been recorded, acted upon and enforced as the oy- 
 laws of the association: Hagrrmann v. Building & Savings Association, Z.> 
 
 A building and loan association may provide by its by laws for assessing 
 
 ar.d collecting reasonable fines from members of the association for default in 
 
 dues, but it cannot UMM or collect more than one fine for nonpayment ot the 
 
 sam< stated due, and it cannot impose a fine for default in paying interest: 
 
 ■erman v. Building & Savings Association, 26 O. S. 180. 
 
 [461]
 
 APPENDIX. 
 
 An executory contract between a building association and one of its mem- 
 bers in respect to shares claimed by him in his own right and in excess of 
 twentv shares, the maximum number which, under the statute, a member may 
 hold in his own right, is ultra vires and can not be enforced by action: 
 Simpson V. Building & Savings Association. ;<8 O. S. 349. 
 
 A stockholder who has subscribed for more than the twenty shares allowed 
 by statute is estopped to deny the validity of such shares: Building Association 
 v Bund, C Dec. Rep. 1108, 10 Am. L. Kec. 4S5, 6 Bull. 823. 
 
 Assessments. 
 
 Sec. 9650. To assess and collect from members and others, 
 such dues, fines, interest and premium on loans made, or other 
 assessments, as may be provided for in the constitution and by-laws. 
 Such dues, fines, premium or other assessments shall not be deemed 
 usury, although in excess of the legal rate of interest. (99 v. 
 529-8.) 
 
 Excess over legal rate of interest. 
 
 Payments. 
 
 Receivership. 
 
 I. 
 
 11. 
 
 III. 
 
 Members. 
 Dues. 
 
 Fines. 
 
 
 V. 
 
 VI. 
 
 VII. 
 
 IV. 
 
 Interest and premium. 
 
 
 
 
 
 I. 
 
 MEMBERS. 
 
 The members of a building association, whether borrowers or non-bor- 
 rowers, have a mutual interest in its affairs; and, sharing alike in its earnings, 
 must assist alike in bearing its losses: Eversmann v. Schmitt, 63 O. S. 174. 
 
 A borrowing member is one who receives in advance the par value of 
 his shares, and agrees in consideration of such advance to pay the weekly 
 dues of the shares and the interest on the loan until the dues paid and the 
 dividend declares and not paid are equal to the par value of his shares. He 
 then ceases to be a member and is entitled to a cancellation of the mort- 
 gage given to secure the obligations arising from the loan: Eversmann v. 
 Schmitt, 53 O. S. 174. 
 
 A person who applies to a building and loan association for a loan of 
 money, and deposits therewith a sum of money, however small, for the pur- 
 pose of making himself eligible as a borrower, and thereby receives a loan, 
 is estopped, when sued for the money by the association, from denying that 
 he was, in fact, a depositor of the association: Bates v. Peoples Assn., 42 
 O. S. 654. 
 
 The fact that the depositor deposits only twenty-five dollars before he 
 borrows money on mortgage and that he draws it out the day after he receives 
 his mortgage, does not render the mortgage invalid: Lockwood v. Robbins, 
 4 Dec. Rep. 192, 1 Cleve. L. Rep. 101. 
 
 Apparently a manufacturing corporation may become a member of a build- 
 ing and loan company; but in any event having borrowed money from the 
 association, and having received the benefits of the loan, its property will 
 be subject to the lien of the mortgage given to secure such loan: Bank Co. 
 v. Spinning & Stamping Company, 14 O. C. C. 1, 7 O. C. D. 275 [on appeal 
 from Bank v. Spinning St Stamping Co., 6 O. D. (N. P.) 70]. 
 
 There is a wide difference in the principles which govern the dealings of 
 third persons with a corporation and those which control dealings between a 
 corporation and its depositors, who are also its stockholders and who are fa- 
 miliar with the limitations imposed by its constitution upon the powers of 
 its agents: Sachs v. Building & Loan Assn., 4 O. N. P. 214, 6 O. D. (N. 
 P.) 254. 
 
 The rules which govern the dealing between a depositor in a building 
 association, and who is familiar with the limitations imposed by the constitu- 
 tion upon its officers, are different from the rules which govern the dealings 
 between third person and officers of corporations when such third persons are 
 not aware of any restrictions upon the apparent powers of such officers: Sachs 
 v. Building & Loan Assn. 4 O. N. P. 214, 6 O. D. (N. P.) 254; see, also, 
 Mueller v. Cohen, 11. Dec. Rep. 575, 27 Bull. 353. 
 
 1152!
 
 LAWS OF OHIO. 
 
 One who is not a member of an association and who has not subscribed 
 for shares in an association, does not become a member by making a general 
 deposit; and such depositor is not liable to pay dues or fines, nor can he par- 
 ticipate in the dividends; Turner Bauverein v. Woodburn, 11 Dec. Rep. 578, 
 27 Bull. 409. , . . . . 
 
 One who is not a stockholder, but who has made deposits with the asso- 
 ciation is a creditor of the association to the extent of such deposits: Ash- 
 brook v. Building & Saving Co., 8 O. N. P. 246, 11 O. D. (N. P.) 360. 
 
 II. DUES. 
 
 The payment of stated dues and fines can not be resisted by a member 
 on the ground that the by-laws of the association have not been adopted by 
 a vote of the directors, where it appears that they have been recorded, acted 
 upon, and enforced as the by-laws of the association: Hagermann v. Building 
 Assn.. 23 O. S. 186. 
 
 After breach of the condition of a mortgage given to secure the payment 
 of stated dues, interest on loans advanced and fines, the decree in an action 
 to foreclose should be confined to the amount of such dues, interest and fines 
 then due and unpaid: Hagermann v. Building Assn., 25 O. S. 186. 
 
 Payment of dues upon stock in a building and loan association corresponds 
 to payment of installments upon stock subscriptions in other corporations for 
 profit: Hinman v. Ryan, 3 O. C. C. 529, 2 O. C. D. 305. 
 
 If an association becomes insolvent, and. by common agreement, the mem- 
 bers cease to pay their dues, a borrowing member who fails to pay his dues 
 is not thereby in default: Hinman v. Ryan 3 O. C. C. 529, 2 O. CD 305. 
 
 Not more than one fine can be assessed with reference to default in the 
 same installment of stated dues: Building Assn. v. Gallagher. 25 O. S. 208. 
 
 The advancing of money by a building and loan association to its mem- 
 bers is not the exercise of banking power: Building Assn. v. Gallagher, 25 
 O. S. 208. ■ • , . 
 
 A building and loan association has power to compromise with a member 
 and release him from further obligation to the corporation, whether_ the in- 
 debtedness arose from a loan or on a subscription for stock. And where the 
 parties to the compromise have acted in good faith, the transaction will not 
 be rescinded because the released member was paid a greater sum of money 
 than he would have received upon a pro rata distribution of the assets of the 
 concern: Wangcrien v. Aspell, 47 O. S. 250; see, to the same effect^ State v. 
 Loan Assn.. 35 O. S. 258; Building & Loan Co. v. Richter, 16 O. C. C. 191, 
 9 O. C. D. 74. ,„ „ 
 
 On the question of dues, see also, Turner Bauverein v. Woodburn. 11 
 Dec. Rep. 578, 27 Bull. 409. 
 
 III. FINES. 
 
 Fines can not be imposed for default in the payment of interest on loans, 
 nor can more than one fine be assessed in respect to the same installment of 
 stated dues: Land & Building Association v. Gallagher, 25 O. S. 20S; see, 
 to the same effect, Hagerman v. Building & Savings Association, 25 O. S. 186. 
 
 Fines may be assessed and collected only from members of the corporation; 
 but there is no limit as to the amount or occasion except as prescribed in the 
 bylaws of the corporation, and there is no express limitation on the power 
 of the corporation to adopt by-laws. That there are limits, however, beyond 
 which the corporation, by its by-laws, can not go, is undoubted. 1. Hie 
 amount of the fine must be reasonable. 2. It can be imposed only by way 
 of punishment for some delinquency in the performance of a duty which the 
 members may owe to the corporation by reason of his membership. 3. It 
 is unreasonable, and therefore we may assume that the legislature did not 
 intend that more than one fine should be imposed for the same delinquency; 
 Hagerman v. Building & Savings Association, 25 O. S. 186. 
 
 The filing by a building association, mortgagee, of answer and cross-peti- 
 tion in a proceeding brought by an assignee fur authority to sell land, is not 
 such an election to forfeit the stock of the member as will estop the Mto 
 lion from claiming fines for nonpayment of dues accruing after the assign- 
 ment: Hutchinson v. Straub, '14 O. S. 413. 
 
 If the mortgagor makes an assignment for the benefit of DM Creditors, 
 finds that penalties are to be computed to the time that the mortgage is paid, 
 and not merely to the date of the assignment: Hutchinson v. .Str.iub. Hi O. 
 C. ( I6S, '■' O. < . D. 171 (affirmed Hutchinson v. Straub, 01 O S. Ill ) 
 
 If a mortgage contains a provision that the mortgagor ^liall pay thirty 
 dollars as an attorney'! fee in case of foreclosure, su< h fee shall not be col 
 lected from a mortgagor who is not in default, the building and loan asso- 
 ciation having incurred expenses in asserting an invalid claim: Resting v. 
 Donahue, 13 O C. C. 653, f, O. C. D. 262. 
 
 30 
 
 [468]
 
 APPENDIX. 
 
 On liquidation of a building and loan association, the obligation to pay 
 duel ceases, .is well in the case of borrowing members :*s in the case of non- 
 borrowina members: Building Association v. Fitzgerald, 8 O. N. P. 160, 11 
 O. D. (N. P.) 133. 
 
 Upon a decree for sale the liability of a member for issuing fines ceases, 
 since be is then liable for interest on the amount of the decree: Windish v. 
 Kornian. 8 Dec. Kep. 00. 6 Bull. 364 [rule in Building Association v. Flack, 
 1 C. S. C K. 46N. not followed.] 
 
 IV. INTENESY AND PREMIUM, 
 
 Interest can not be charged upon the premium: Building Association v. 
 Gallagher, 25 O. S. 208; Risk v. Building Association, 31 O. S. 617. 
 
 Under a former statute a premium was usurious if it were not fixed by 
 competitive bidding and if it brought the total interest above the maximum 
 rate allowed by law: Bates v. Peoples Association 42 O. S. CSS. 
 
 Under a former statute a minimum rate for the premium could not be 
 fixed, but the premium had to be determined by competitive bidding: State v. 
 Building Association, 29 O. S. 92; State v. Building Association. 35 O. S. 258. 
 
 Under former statutes a building and loan association could charge legal 
 interest, together with the premium for the loan as fixed by competition: Bates 
 v. Savings Association, 42 O. S., 655; State v. Building & Savings Associa- 
 tion, 29 O. S. 92; Savings & Loan Association v. Roberts, 5 O. N. P. 86, 
 
 5 O. D. (N. P.) 489. 
 
 Any amount fixed by competitive bidding may be charged as a premium: 
 Savings & Loan Association v. Roberts. 5 O. N. P. 86, 5 O. D. (N. P.) 489. 
 The association alone has the right to determine the premium: Savings 
 
 6 Loan Association v. Roberts, 5 O. N. P. 86, 5 O. D. (N. P.) 489. 
 
 If the society goes into liquidation, the duty to pay the premium ceases: 
 Building Association v. Fitzgerald, 8 O. N. P. 160, 11 O. D. (N. P.) 133 
 
 The building and loan association can not increase the amount of the 
 weekly installments of premiums to be paid on mortgages already in force 
 unless the constitution and by-laws of such association clearly reserve such 
 right: Burke v. Building Association, 8 Dec. Rep. 341. 7 Bull. Ill; see, 
 also. Building Association v. Boning, 6 Dec. Rep. 1149, 10 Am. L. Rec. 626, 
 
 7 Bull. 174. , .-•'■ 
 
 A premium for a loan can not be collected after its maturity: Savings & 
 Loan Association v. Steven, 7 Dec. Rep. 435, 3 Bull. 113. 
 
 Revised Statutes Section 3835 contained a provision that a building asso- 
 ciation, at the end of each year, "shall make a rebate of interest on the 
 amount of dues paid on loans awarded," and it thereby provided that the in- 
 terest-bearing power of such loans should be reduced year by year as dues 
 are paid in on the shares, and that the interest payable on such loans shall 
 be less year by year as such dues are paid in: Seibel v. Building Associa- 
 tion, 43 O. S. 371. 
 
 V. EXCESS OVER LECAL KATE OF INTEREST. 
 
 Statutes which exempt building and loan associations^ from the_ operating 
 of the general usury laws are constitutional and valid: Cramer v. Trust Co., 
 72 O. S. 396; Spies v. Loan & Trust Co., 4 O. C. C. (N. S.) 103, 14 O. C. 
 D. 40; Building & Loan Assn., v. Desnoyers, 4 O. C. C. (N. S.) 337, 16 
 O. C. D. 352; Carmichael v. Savings & Loan Co., 15 O. D. (N. P.) 341; 
 Building & Loan Association v. Desnoyers, 4 O. C. C. (N. S.) 337; 16 O. C. 
 D. 352; Building Association v. Boning, 6 Dec. Rep. 1149, 10 Am L Rec. 
 626, 7 Bull, 174. Contra: Mykrantz v. Building & Loan Co., 19 O. C. C. 
 51, 10 O. C. D. 250, 42 Bull. 330. 
 
 Charges in the form of premiums made in compliance with the bunding 
 and loan statute do not amount to usury, although the amount of such pre- 
 miums, together with the amount of interest charged, is in excess of the legal 
 rate: Lucas v. Building Association, 22 O. S. 339; Cramer v. Loan & Trust 
 Co., 72 O. S. 395; Savings & Loan Assn., v. Roberts, 5 O. N. P. 86, 5 O. 
 D. (N. P.) 489. 
 
 VI. PAYMENTS. 
 
 A borrowing member who claims that a loan has been paid has the burden 
 of proving such payment: Sachs v. Building & Loan Assn., 4 O. N. P. 214, 
 6 O. D. (N. P.) 254. . . 
 
 A shareholder is not entitled to credit for payments except those made 
 in cash at the usual place of business of the association and at the hour fixed 
 by the bylaws for the receipt of dues: Sachs v. Building & Loan Assn., 4 
 O. N. P. 214, 6 O. D. (N. P.) 254. 
 
 [4541
 
 LAWS OF OHIO. 
 
 If the constitution of the building association provides for payment in 
 legal tender, payment by check is not a valid payment if the secretary converts 
 the proceeds of such check to his own use. The fact that the directors have 
 received checks repeatedly in the past does not operate as an estoppel: Mueller 
 v. Cohen, 11 Dec. Rep. 575, 27 Bull. 353. 
 
 A building and loan association has power to compromise with a member 
 and release him from further obligation to the corporation, whether the in- 
 debtedness arose from a loan or on a subscription for stock. And where the 
 parties to the compromise have acted in good faith, the transaction will not 
 be rescinded because the released member was paid a greater sum of money 
 than he would have received upon a pro rata distribution of the assets of the 
 concern: Wangerien v. Aspell, 47 O. S. 250. 
 
 VII. RECEIVERSHIP. 
 
 On the application of the directors of a building association who claim 
 no individual right in its property, the company has no power to place the 
 property of the association in the hands of a receiver without notice to the 
 members of the association: Schone v. Building & Saving Companv, 4 O. 
 N. P. 216, 6 O. D. (N. P.) 246. 
 
 Withdrawal of stock deposits. 
 
 Sec. 9651. To permit members to withdraw all or part of their 
 stock deposits, at such times, and upon such terms as the constitu- 
 tion and by-laws provide. Any member, however, who withdraws 
 his entire stock deposit, or whose stock has matured, shall be en- 
 titled to receive all dues paid in and dividends declared thereon, 
 less all fines or other assessments, and less the pro rata share of all 
 losses, if any have occurred. (99 v. 529-9.) 
 
 A building and loan association has no power to withhold from a .stock- 
 holder money which was due him under the terms of its contract on the ground 
 that it fears he may become insolvent in the future, nor may it set up a coun- 
 terclaim upon such facts: Jungkuntz v. Building Association, 8 Dec. Rep. 
 242. 6 Bull. 428. 
 
 Withdrawal of deposits. 
 
 Sec. 9052. To permit withdrawal of deposits upon such terms 
 and conditions as the association provides except by check or draft. 
 But no such association shall be permitted to carry for any member 
 or depositor any demand, commercial or checking account. Nothing 
 in this chapter shall prevent members or depositors from withdraw- 
 ing funds by non-negotiable orders. (99 v. 529-9.) 
 
 A building and loan association has power to compromise with a member 
 and to release him from further obligation to the association, whether his 
 indebtedness arises from a loan or upon a subscription for stock: Wangerien 
 v. Aspell, 47 O. S. 250; to the same effect, see State v. Building Association, 
 85 O. S. 868. 
 
 If a building and loan association has agreed that its stock shall mature 
 in a certain specified time, such agreement can not be enforced specifically 
 if the failure of such stock to mature in such time was not the fault of the 
 company, but wis due to financial depression: Demland v. Savings & Loan 
 Co., 20 O. ( . C. 223, 11 (). ( . D. >4S. 
 
 Under a constitution which provides that members can withdraw only in 
 the order in which they filed their applications to withdraw, a loan association 
 may refuse to cancel a mortgage on tender of a withdrawal claim which is not 
 yet due: Ward v. Building & Savings Co., 6 O. N. P. 133, 8 O. D. (N. 
 P.) 489. 
 
 [465]
 
 APPENDIX. 
 
 F;linR notice of withdrawal does not determinate the membership of the 
 person thus tiling it. Building Association v. Howell, 39 Dull. 886 (editorial). 
 
 A shareholder in the defendant building association made application for 
 withdrawal, and, notwithstanding there were other applications ahead of hers, 
 and that the association was without funds to meet these applications, a war- 
 rant was issued for the full amount due her, and a loan was procured from 
 her of a sum equal to the amount of the warrant, the association executing 
 its note for the loan and canceling the warrant. It was held that the action 
 of the association in thus satisfying the claim of such shareholder in advance 
 of unsatisfied prior applications for withdrawal was not ultra vires, for the 
 reason that it was in violation of a by law only, and not of the fundamental 
 powers of the association, and that, in the absence of proof of knowledge 
 en the i>art of such shareholder of her agent, that she was being paid out of 
 order, she was not chargeable with constructive knowledge that such was the 
 fa t: l'ugh v. Building Association, 1 O. N. P. (N. S.) 253, 14 O. D. 
 (N. P.) 50. 
 
 That a member may deposit a small sum of money on one day and may 
 draw it out the next, in order to comply with the rule of the company that 
 only depositors can borrow money, see Lockwood v. Robbins, 4 Dec. Rep. 192 
 (1 Cleve. L. Rep. 101). 
 
 A member of a building and loan association who owns shares in the 
 name of others may withdraw in the same way as if such shares were in his 
 own name; and, if the building and loan association refuses to make such 
 payment, he may maintain an action for money had and received: Building 
 Association v. Henderson, 5 Dec. Rep. 581, 6 Am. L. Rec. 755. 
 
 Cancellation. 
 
 Sec. 9053. To cancel shares and parts of shares of stock upon 
 which the credits have been withdrawn, or upon which loans have 
 been repaid, and re-issue them as new stock. (99 v. 529-10.) 
 
 Building and loan associations may compromise with their members: State 
 v. Building Association, 35 O. S. 258; Wangerien v. Aspell, 47 O. S. 250. 
 
 A compromise which is made in good faith will not be regarded as in- 
 valid because such member receives a larger amount that he would have re- 
 ceived if the assets of the association had been distributed pro rata: Wan- 
 gerien v. Aspell, 47 O. S. 250. 
 
 The "value" of a share in a building association may not be a proper 
 basis for distribution of earnings due such share, but the amount of dues paid 
 on such share and the other credits to the share make such a basis, whether 
 or not a loan has been awarded on such a share: Seibel v. Building Asso- 
 ciation, 43 O. S. 371. 
 
 A former statute (R. S. Sec. 3835, 77 v. 208) did not provide for the 
 cancellation of parts of a loan as year by year dues were paid in on shares, 
 but such loan was to be settled, with such dues and other credits, when the 
 share was fully paid: and designating the ordinary dues as "dues paid on 
 loans awarded" did not change their nature or application: Seibel v. Building 
 Association, 43 O. S. 371. 
 
 A former statute (R. S. Sec. 3835) contained the provision that a building 
 association, at the end of each year, "shall make a rebate of interest on the 
 amount of dues paid on loans awarded," and it thereby provided that the in- 
 terest-bearing power of such loans should be reduced year by year as dues 
 were paid in on shares, and that the interest payable on such loans should 
 be less year by year as such dues were paid in: Seibel v. Building Associa- 
 tion, 43 O. S. 371. 
 
 The possibility that there may be a deficiency to which a retiring mem- 
 ber may be obliged to contribute subsequently does not justify a building and 
 loan association to withhold any amount due to such a member: Jungkuntz 
 v. Building Association, 8 Dec. Rep. 242, 6 Bull. 428. 
 
 An agreement that a retiring member may withdraw the money which he 
 has paid in, with interest at eight per cent, is valid: Jungkuntz v. Building 
 Association, 8 Dec. Rep. 242, C Bull. 428. 
 
 A compromise with members in violation of the provisions of the con- 
 stitution is invalid: McKeown v. Building Association, 8 Dec. Rep. 17, 6 
 Bull. 52. 
 
 A building and loan association can not require a withdrawing member 
 to pay the entire amount of his premium as a condition to preparing him to 
 withdraw: Windhorst v. Building Association. 8 Dec. Rep. 286, 7 Bull. 29. 
 
 [4501
 
 LAWS OF OHIO. 
 
 Rules as to minors. 
 
 Sec. 9654. To issue stock to minors and receive deposits thereon 
 and permit both stock and deposits to be withdrawn, transferred, 
 pledged and voted by such minors as other stock and stock deposits ; 
 to receive deposits of money by or for minors and to pay them to 
 such minors, or upon their order. The receipt or paid order of such 
 minor, therefor, shall be a valid acquittance of the rights of all 
 concerned. (99 v. 529-11.) 
 
 Property, leasing, holding of. 
 
 Sec. 9655. To lease, acquire, hold, encumber, convey and rent 
 such real estate and personal property as is necessary for the trans- 
 action of its business, or necessary to enforce or protect its secur- 
 ities. (99 v. 529-12.) 
 
 A building and loan association may compromise with its members: State 
 v. Building Association, 35 O. S. 25S; Wangerien v. Aspell, 47 O. S. 250. 
 
 Borrowing money. 
 
 Sec. 9656. To borrow money, not exceeding twenty per cent 
 of the assets, and issue its evidence of indebtedness or other security 
 therefor. (99 v. 530-13.) 
 
 Loans. 
 
 Sec. 9657. To make loans to members and others on such terms, 
 conditions and securities as may be provided by the association. 
 (99 v. 530-14.) 
 
 A building and loan association cannot loan its funds without other or 
 further security than the promissory note of the borrower, no matter how 
 many signers or endorsers there may be to the note. 
 
 (Ruling of the Department ; supplemented by opinion of the Attorney 
 General.) 
 
 I. Loan of money not exercise of III. Defenses. 
 
 hanking power. IV. Effect of former statutory pro- 
 
 II. Mortgage. visions. 
 
 ■ i ) Power to take. 
 Oil Special covenants, 
 (c) Foreclosure. 
 
 I. LOAN OF MONEY NOT EXERCISE OF BANKING POWEB. 
 
 A former statute in some respects similar to those now in force which 
 authorized | 1, ml. ling and loan association to receive deposits, was held to be 
 valid and constitutional; and not a statute which authorized an association 
 with hanking power*, within the meaning of Article XIII, Section I, of the 
 constitution of Ohio: Bates v Savings ft Loan Association, 42 C). S. r,. r .. r >. 
 
 I.oamni' monry to the members of a building and loan association is not 
 engaging in banking: Dearborn v. Hank. 42 O. S. 617; Building Association 
 v. Gallagher. 25 O. S. 20H. 
 
 [157]
 
 APPENDIX. 
 
 II. MORTGAGE. 
 
 (a) Power to take. Where i loan is advanced to a member upon his 
 stock, it is within the capacity of the corporation to take security from such 
 member by mortgage or otherwise for the payment of fines, as well as staled 
 dues, which may be lawfully assessed on account of such stock: Hagerman 
 v. Building Assoiation, 25 O. S. 186. 
 
 Such corporation, under the act of May 9, 1868, (S. & S. 194), may, by 
 its by-laws, assess and collect a reasonable fine from a member of the asso- 
 ciation for default in the payment of his stated due, but cannot assess or 
 collect more than one fine for the non-payment of the same stated due; and 
 there is no power conferred upon the corporation to levy, assess or collect 
 a fine for any default in the payment of interest on loans advanced: Hager- 
 man v. Building Association, 25 O. S. 186. 
 
 A mortgage may be made security for fines: Hagerman v. Building Asso- 
 ciation. 25 O. S. 186. 
 
 (b) Special covenants. A covenant is a mortgage to the effect that the 
 entire loan should become due in case of default of any installment was in- 
 valid if the premium was deducted in advance, since the effect of such pro- 
 vision would be to forfeit the entire premium: Hagerman v. Building Asso- 
 ciation, 25 O. S. 186. 
 
 If a mortgage contains a covenant that, upon breach of condition, the 
 whole amount of the par value of the stock should become due and that the 
 mortgage may be foreclosed as security therefor, only the amount of the fines 
 and interest due can be recovered: Hagerman v. Building Association, 25 
 O. S. 186. 
 
 A covenant that, in case of default, the amount to be due is to be ascer- 
 tained by taking the entire amount of the loan and deducting the credits which 
 are paid in, is invalid, since the borrowing member is thus deprived of his in- 
 terest in the association: Building Association v. Eggen, 8 Dec. Rep. 114, 
 5 Bull. 752. 
 
 A by-law can not increase an installment to be paid upon the premium 
 under prior contract unless the right to change such prior contracts has been 
 reserved expressly: Burke v. Building Association, 8 Dec. Hep. 341, 7 Bull. 
 114; Association v. Boning, 6 Dec. Rep. 1149, 10 Am. L. Rec. 626. 
 
 If a covenant for the payment of attorney's fees in case of foreclosure is 
 invalid, see Building Association v. McCaffery, 12 O. C. D. 685. 
 
 For the validity of a provision fixing the amount due in case of fore- 
 closure, see Building Association v. Leyden, 6 Dec. Rep. 345, 4 Am. L. 
 Rec. 765. 
 
 (c) Foreclosure. After breach of the condition of a mortgage given to 
 secure the payment of stated dues, interest on loans advanced and fines, the 
 decree in an action to foreclose should be conhned to the amount of such 
 dues interest and fines, then due and unpaid: Hagerman v. Building Asso- 
 ciation, 25 O. S. 186. 
 
 In an action brought by a building association against a member on a 
 mortgage given to secure the payment of weekly dues and the installments of 
 interest on an advanced loan, the taking of the account, preliminary to an 
 order of sale, should be limited to the amount of dues and interest that had 
 accrued at the time of rendering the decree: Risk v. Building Association, 
 31 O. S. 517. 
 
 In demanding the amount due on foreclosure, the dues, together with in- 
 terest and fines, should be computed up to the date of the decree, and not 
 •nerely to the first day of the term: Windish v. Korman, 8 Dec. Kep. 60, 
 5 Bull. 364. . 
 
 In proceeding to foreclose a mortgage given to a building and loan asso- 
 ciation, an answer which alleges that the association owes to the defendant 
 more than the par value of his stock is sufficient: Building Association v. 
 Tenney, 7 O. N. P. 130 8 O. D. (N. P.) 391. 
 
 Under a covenant to pay the attorney's fee in case of foreclosure, the at- 
 torney's fee cannot be recovered if the mortgage debt is not due of in default, 
 and if the building and loan association has incurred expenses in asserting 
 an unfounded claim: Resting v. Donahue, 13 O. C. C. 653, 6 O. C. D. IV>1. 
 Any amount which a building and loan association is required to pay 
 as attorney's fees in foreclosure proceedings should be paid out of the earn- 
 ings as all ordinary expenses incurred by the association are paid, and should 
 not be charged against the reserve fund. 
 
 (Ruling of the Department, supplemented by opinion of the Attorney 
 General.) 
 
 [458]
 
 LAWS OF OHIO. 
 
 III. DEFENSES. 
 
 For the determination of the amount due upon a building and loan asso- 
 ciation mortgage and for distribution, see, also, Building Association v. Mueller, 
 8 Dec. Rep. 469, 8 Bull. 97; Building Association v. O'Connor, 6 Dec. Rep. 
 1012, 9 Am. L. Rec. 486, 5 Bull. S53. . . 
 
 One who has borrowed money from a building and loan association cannot 
 set up as a defense of a suit in foreclosure the fact that the articles of incor- 
 poration were not acknowledged before an officer authorized by statute to take 
 such acknowledgment: Lucas v. Building Association, 22 O. S. 339. 
 
 The fact that a member of such corporation holds a greater number of 
 shares than is allowed by its by-laws, but not in excess of the number limited 
 by the statute, is no defense against any claim which the corporation may have 
 against him on account of such shares: Hagerman v. Building Association, 
 25 O. S. 186. , ... 
 
 Building corporations are not required to ascertain the use to which a 
 member who obtains a loan on his stock intends to apply the money: Hager- 
 man v. Building Association, 23 O. S. 1S6. 
 
 Such corporation is not authorized to use its funds in making loans to 
 members or depositors upon their promissory notes, at a rate greater than the 
 legal rate of interest, in addition to the premium bid for the right of pre- 
 cedence, or in purchasing or discounting notes from such members or de- 
 positors at usurious rates of interest, or to use its fnnds in loaning the same 
 to and in purchasing and discounting notes from persons other than its mem- 
 bers or depositors upon any terms: State ex rel., v. Building Association, 
 29 O. S. 92. 
 
 A member who. with full knowledge of the facts of his contract with the 
 building and loan association, under a rule for which there is no longer legal 
 authority, is estopped from denying the validity of such rule: Ruehlman v. 
 Building Association, 6 O. C. C. 285, 3 O. C. D. 456. 
 
 If a building and loan association agrees to loan money secured by mort- 
 gage, such money to be advanced to contractors who are constructing the build- 
 ing upon orders of the owner, such company must comply with the orders of 
 the owner; and if it pays money in violation of his order, such company cannot 
 receive credit for such payment: Resting v. Donahue, 13 O. C. C. 653, 6 O. C. 
 D. 262 [appeal from Resting v. Donahue, 2 O. D. (N. P.) 567.] 
 
 IV. EFFECT OF FORMER STATUTORY PROVISIONS. 
 
 Under former statutes a building and loan association is not authorized 
 to refuse a loan to a member who paid the highest premium at competitive 
 bidding: State v. Building Association. 29 O. S. 92. 
 
 Cancellation of loan. 
 
 Sec. 9658. To cancel such loans and release the securities on 
 such terms as the board of directors provide. But any member may 
 have his loan cancelled upon the following terms: After the pre- 
 mium for one year has been paid, and also the interest and premium 
 up to the date of cancellation, the borrower shall pay the sum ac- 
 tually borrowed less the dues paid and dividends credited, and also 
 any fines or other assessments required by the constitution and 
 by-laws. (99 v. 530-15.) 
 
 Conceltd certificates should be preserved itt the files with other papers of 
 the association in such manner as to be readily accessible. {Ruling of the 
 Department.) , , , , 
 
 A building and loan association is without authority to deduct mortgage 
 credit for the purpose of paying fixed charges. 
 
 Where a building association provide! by Us bylaws that in case a .share- 
 holder who has received a loan shall die. "his or her heirs or lega repre- 
 sentatives may return the Mine to the association, ' and receive trom tlir a i 
 ciation the value of the stock of the decedent as the same was assessed at the 
 annual meeting of the association immediately preceding his decease or con- 
 
 [460]
 
 ATPKNDIX. 
 
 tinue to pay the interest and monthly dues, ami become in all respects a mem- 
 ber of the association until the same shall terminate, it was held that if the 
 heir* or legal representatives of the deceased shareholder elect to return the 
 loan, the amount to be returned was the money actually received plus the 
 premium bid for precedence: Loan Association v. Bcbout, 29 O. S. 863. 
 
 Such corporations, acting in good faith and reasonably, may compromise 
 with a member and release him from further obligation to the corporation, 
 whether the indebtedness be for a loan or on subscription: State v. Loan 
 Association, 85 O. S. 268. 
 
 Section 3885 of the Revised Statutes, as amended April 15, 1880, (77 O. 
 L. 208), did not provide for the cancellation of parts of a loan as year by 
 year dues are paid in on shares, but such loan is to be settled, with such 
 dues and other credits, when the share is fully paid: and designating the or- 
 dinary dues as "dues paid on loans awarded" did not change their nature or 
 application: Scibel v. Loan Association, 43 O. S.. 371 | for opinion below, see 
 Seibel v. Building Association, 9 Dec. Rep. 422. 18 Bull. 205.] 
 
 One who acquiesced for seven years in semi-annual settlement, and then 
 remained silent for another six years after the final settlement with him, and 
 until the membership in the association had changed and it no longer had 
 control of the earnings thus distributed, is estopped from demanding an ac- 
 counting for any larger share of the profits of the association than was re- 
 ceived by him in due course: Metz v. Loan Association, 19 O. D. (N. I\) 
 161. 6 O. L. R. 418. 
 
 For question of distribution, see, also, Building Association v. Flach, 13 
 Dec. Rep. 666, 1 C. S. C. R. 468. 
 
 Reserve and undivided profit fund. 
 
 Sec. 9659. To accumulate from the earnings a "reserve fund" 
 
 for the payment of contingent losses, and an "undivided profit 
 
 fund," both of which may be loaned and invested as other funds 
 of the association. (99 v. 530-16.) 
 
 Idle funds, how invested. 
 
 Sec. 9660. To invest any of its idle funds, or any part thereof, 
 in bonds or interest bearing obligations of the United States, or of 
 the District of Columbia, or of the state of Ohio, or of any county, 
 township, school district, or other political division in the state of 
 Ohio, or of any incorporated city or village, in the state of Ohio; 
 and in such other securities as now are or hereafter may be accepted 
 by the United States to secure government deposits in national 
 banks. But such investments at no time shall amount in the aggre- 
 gate to more than twenty per cent of the assets of such corpora- 
 tion. (99 v. 530-16.) 
 
 May deposit idle funds. 
 
 Sec. 9661. To deposit any of such funds or part thereof, in 
 any financial institution that is subject to inspection by the United 
 States, or by the state of Ohio; and receive therefor certificates of 
 deposit. (99 v. 530-16.) 
 
 L460]
 
 LAWS OF OHIO. 
 
 Purchase and sale of interest-bearing obligations. 
 
 Sec. 9662. To buy but not to sell, except whenever it desires 
 to terminate and close up its business affairs or in case of financial 
 emergency, and then only with the consent previously had of the 
 inspector of building and loan associations, interest bearing obliga- 
 tions secured by real estate mortgages, which shall in all respects 
 comply with, and be within the rules adopted for making mortgage 
 loans by the corporation making such investments. Such mortgage 
 investments may be held and reported as mortgage loans. (106 v. 
 431.) 
 
 Distribution of earnings. 
 
 Sec. 9663. To make such annual or semi-annual distribution of 
 the earnings as is hereinafter provided, and as the constitution and 
 by-laws may prescribe. (99 v. 530-17.) 
 
 The "value" of a share in a building association may not be a proper basis 
 for distribution of earnings due such share, but the amount of dues paid on 
 such share and the other credits to the share make such basis, whether or t»ot 
 a loan has been awarded on such a share: Seibel v. Building Association, 
 43 O. S. 371. 
 
 A member of an association has a right to his pro rata proportion of 
 the accumulations of the association: Eversmann v. Schmitt, 11 Dec. Rep. 
 9, 24 Bull. 56. 
 
 For the effect of former legislation on the rights of borrowing members, 
 see Deiringer v. Building Association, 2 O. D. (N. P.) 543 [ affirmed, without 
 report, Deiringer v. Building Association, 36 Bull. 328; Turner Bauverein v. 
 Woodburn. 11 Dec. Rep. 578, 27 Bull. 409.] 
 
 Certificate of increase, decrease, etc., where filed. 
 
 Sec. 9664. To increase or decrease its authorized capital or the 
 face value of its shares, or change the name of the corporation 
 by a majority vote of its board of directors. A certificate of such 
 action shall be made by the president and secretary, and duly filed 
 with the secretary of state, after which in the use of the changed 
 stock and changed name, all rights of all parties shall remain the 
 same as before such change was made. (99 v. 530-18.) 
 
 Dissolution. 
 
 Sic. !" ;, ;"> To dissolve the corporation when by a majority vote 
 of the stock entitled to be voted under its constitution and by-laws, 
 which shall be consistent with the provisions of section ninety-six 
 hundred and forty-nine, its continuance is deemed to be no longer 
 desirable, but subject to the contract rights of its borrowers, and 
 the vested rights of its members. (99 v. 531-19.) 
 
 M61|
 
 APPENDIX. 
 
 But as to dissolution, see Section 09S. See also Sections 11912 and 10)1.1. 
 
 If the association is insolvent and payment of dues is stopped by mutual 
 consent, a borrowing member who ceases in pay dues is not in default: llin- 
 man v. Ryan, 3 O. C, C. 529. 2 O. C. D. 305. 
 
 While proceedings tu wind up the affairs of a building and loan asso- 
 ciation are pending, interest continues, but not dues: Hinman v. Ryan, 3 
 O. C. C 689, I O. C. D. 306. 
 
 After dissolution of a building and loan association the directors still have 
 power to dispose of the assets of the association in order to pay its debts and 
 to distribute the proceeds among its members: Roth v. Loan Co., 13 O. D. 
 (N. P.) 1.1. 
 
 If certain of the directors of a building and loan association agree to 
 dissolution and purchase the assets at a certain price which is a reasonable 
 value thereof, a stockholder who knows the facts at the time and acquiesces 
 in the transaction, can not thereafter attack the transaction as fraudulent: 
 Roth v. Loan Co., 13 O. D. (N. P.) 154. 
 
 Neither a stockholder nor a creditor can obtain an injunction by reason 
 of illegal or fraudulent acts upon the part of the directors unless a repetition 
 thereof is threatened: Building Co. v. Rehn, 6 O. N. P. 185, 8 O. D. 
 (N. P.) 594. 
 
 Amendment of articles. 
 
 Sec. 96(56. To amend its articles of incorporation, and increase 
 or decrease the number of its directors, by complying with all the 
 requirements provided in its own constitution for the amendment 
 thereof. The other officers of such corporation shall consist of a 
 president, one or more vice presidents, one or more secretaries, and 
 such others as its constitution and by-laws provide. (.99 v. 531-20.) 
 
 When an action is brought by stockholders in a building and loan asso- 
 ciation against such association and its assignee for the benefit of creditors, 
 to set aside the deed of assignment for fraud or want of power to make the 
 deed, a settlement between the association and its assigne satisfactory to both 
 will not be a settlement as against the complaining stockholders unless they 
 consent to the same: Savings Association v. Jones, 64 O. h. 147. 
 
 The filing by a building association, mortgagee, of answer and cross-peti- 
 tion in a proceeding brought by an assignee for authority to sell land, is not 
 such an election to forfeit the stock of the member as will estop the asso- 
 tio'n from claiming fines for non-payment of dues accruing after the assign- 
 ment: Hutchinson v. Straub, C4 O. S. 413. 
 
 A borrowing member of a building association, working under a constitu- 
 tion which provided for amendments and in force at the time of the enact- 
 ment of the Kuehnert law (S3 v. 110), is bound by any amendment providing 
 that interest should be charged only on the amount remaining due at the be- 
 ginning of each year, and dividends paid only on the amount paid in during 
 the current year. Metz v. Loan Co., 19 O. D. (N. 1\) 101, O. L. R. 418. 
 
 A member who borrows money under rules which have been changed by 
 statute cannot attack the validity of such rule: Ruehlman v. Building Asso- 
 ciation, 6 O. C. C. 285, 3 O. C. D. 45G. 
 
 Under a constitutional provision to the effect that a certain article can 
 not be amended, amendment thereto can be made only by unanimous vote of 
 the members: McKeown v. Building Association, 8 Dec. Rep. 17, 5 Bull. 52. 
 
 Constitution and by-laws. 
 
 Sec. 9667. To provide, by constitution adopted by its members, 
 and by-laws adopted by its board of directors, for the proper exer- 
 cise of the powers herein granted, and the conduct and management 
 of its affairs. (99 v. 531-21.) 
 
 [462]
 
 LAWS OF OHIO. 
 
 The fact that by-laws appear upon records of a building and loan asso- 
 ciation and that they are regarded by all the members as valid and binding, 
 is sufficient without proof of their formal adoption: Hagerman v. Building 
 Association, 25 O. S. 186. 
 
 Where a building association provides by its by-laws that, in case a share- 
 holder who had received a loan shall die, "his or her heirs or legal represen- 
 tatives may return the same to the association" and receive from the asso- 
 ciation the value of the stock of the decedent as the same was assessed at the 
 annual meeting of the association immediately preceding his decease, or con- 
 tinue to pay the interest and monthly dues and become in all respects a mem- 
 ber of the association until the same shall terminate, it was held that if the 
 heirs or legal representatives of the deceased shareholder elect to return the 
 loan, the amount to be returned was the money actually received plus the 
 premium bid for precedence: Building Association v. Bebout, 29 O. S. 252. 
 
 Like other corporations, a building and loan association has power to 
 amend its constitution and by-laws; a failure to make provision therefor does 
 not prevent the power from existing: Wangerien v. Aspell, 47 O. S. 250. 
 
 An amendment to the constitution can not increase the liabilities of the 
 borrowing members whose obligations were incurred before such amendment, 
 unless the power to modify such obligations was received when the loan was 
 made: Betz v. Building Association, 1 O. N. P. 42, 1 O. D. (N. P.) 58; 
 see, also, on this question, Wyatt v. Building Co., 12 O. D. (N. P.) 528. 
 
 A building and loan association may modify its constitution so as to pro- 
 vide for an attorney: Building Co. v. Kuehnert, 7 O. N. P. 204, 6 O. D. 
 (N. P.) 602. 
 
 Other powers. 
 
 Sec. 9668. To have all such other powers as are necessary and 
 proper to enable such corporation to carry out the purpose of its 
 organization. (99 v. 531-22.) 
 
 A building and loan association has no power to purchase land on credit 
 in order to distribute it among its members, and negotiable notes given in 
 payment thereof are void unless in the hands of bona fide holders: Vos v. 
 Building Association, 8 Dec. Rep. CS2, 9 Bull. 194. 
 
 Banks, designation of, to receive funds. 
 
 Sec. 9669. The board of directors shall designate a bank or 
 banks, in which it shall cause the funds of such corporation to be 
 deposited in its name. Such funds when so deposited, can be with- 
 drawn only in such manner and for such purpose as is provided in 
 the constitution and by-laws and authorized by law. (99 v. 531-23.) 
 
 Under a former statute (Bates, Sec. 3830-4) the secretary had no authority 
 to withdraw funds; and his puwer over the funds was exhausted whin he had 
 deposited them properly: Trustees v. Deposit Co. 76 O. S. 253. 
 
 Bond of officers. 
 
 Sec. 9670. All bank books showing such deposits shall be open 
 to the inspection of any director at any time. All officers of such 
 association who have charge or possession of money, securities, or 
 property, shall give bond before entering upon their duties, to the 
 satisfaction of the l>oard of directors, for the faithful performance 
 
 [468]
 
 APPENDIX. 
 
 thereof, and the safe keeping and proper application of all moneys 
 or property coming into their hands. All officers of such corpora- 
 tions on being re-elected to office shall renew their bonds The bond 
 may be increased or additional securities required at any time by the 
 board of directors. Directors shall not be eligible as bondsmen, 
 but shall be individually liable for any loss to members, caused by 
 their neglect to comply with the provision of this and the preceding 
 sections. (99 v. 531-23.) 
 
 This would include entering into cf sufficient bonds by the president and 
 vice-president of an association. (Ruling of the Department.) 
 
 The bond of each officer required to be bonded should be signed by at 
 least two sufficient sureties or by a surety company authorized under the laws 
 of Ohio to transact business in this state. (Ruling of the Department.) 
 
 Whether it was the intention of the party si suing the instrument to adopt 
 the seal of another is a question of fact for the jury, the burden being on 
 the plaintiff to prove that the party adopted the seal or scroll: Building Asso- 
 ciation v. Cummins,. 45 O. S. 604. 
 
 Two or more persons who sign a bond may adopt the same seal: Building 
 Association v. Cummins, 45 O. S. 664. 
 
 A surety upon the bond of an officer is liable only for his acts within 
 the direct scope of his duties as such officer: Trustees v. Deposit Co., 76 O. 
 S. 253 [affirming Livingston v. Deposit Co., 7 O. C. C. (N. S.) 66, 17 
 O. C. D. 662. J 
 
 An attorney of a building and loan association is not an officer thereof, 
 and his bond is not an official bond in the ordinary sense of the term: Build- 
 ing v. Kuehnert, 7 O. N. P. 264, 6 O. D. (N. T.) 502. 
 
 As to the extent of the liability of surety upon the bond of an attorney for 
 a building and loan association, see Building Co. v. Kuehnert, 7 O. N. I*. 
 264. 6 O. D. (N. P.) 502. 
 
 Reserve fund. 
 
 Sec. 9671. The amount to be set aside to the reserve fund, for 
 the payment of contingent losses shall be determined by the board 
 of directors, but in all permanent or perpetual associations, at least 
 five per cent of the net earnings shall be set aside each year to such 
 fund until it reaches at least five per cent of the total assets. All 
 losses shall be paid out of such fund until it is exhausted. When 
 the amount in such fund falls below five per cent of the assets as 
 aforesaid, it shall be replenished by annual appropriations of at 
 least five per cent of the net earnings as hereinbefore provided 
 until it again reaches such amount. (99 v. 531-24.) 
 
 Charges made from the reserve fund should show, in each instance, for 
 what purposes they arc made. (Ruling of the Department.) 
 
 Any amount which a building and loan association is required to pay as 
 attorney's fees in foreclosure proceedings should be paid out of the earnings 
 as all ordinary expenses incurred by the association are paid, and should not 
 be charged against the reserve fund. (Ruling of the Department, supplemented 
 by opinion of the Attorney General.) 
 
 A reserve fund belongs to the members of the association in proportion 
 to their interests, whether they are borrowers or not: Seibel v. Building 
 Association, 43 O. S. 371. 
 
 [4641
 
 LAWS OF OHIO. 
 
 Expenses, how £aid. 
 
 Sec. 9672. All expenses of such association shall be paid out 
 of the earnings only, and so much of the earnings as may be neces- 
 sary must be set aside each year for such purpose. But charges 
 incident to a loan, if paid by the borrower, shall not be deemed 
 a part of the current expenses. (99 v. 532-25.) 
 
 Dividends. 
 
 Sec. 9673. After payment of expenses and interest, a portion of 
 the earnings to be determined by the board of directors, annually 
 or semi-annually, shall also be placed in the reserve fund for the 
 payment of contingent losses, as hereinbefore provided, and a fur- 
 ther portion of such earnings to be determined by the board of 
 directors, shall be transferred as a dividend annually or semi-annu- 
 ally, in such proportion to the credit of all members as the cor- 
 poration by its constitution and by-laws provides, to be paid to 
 them at such time and in such manner in conformity with this 
 chapter as the corporation by its constitution and by-laws provides. 
 Any residue of such earnings may be held as undivided profits to 
 be used as other earnings, except that such undivided profit fund 
 at no time shall exceed three per cent of the total assets of the 
 association. (99 v. 532-25.) 
 
 The members of an association are equally entitled to dividends, whether 
 they are borrowing members or not: Seibel v. Building Association, 43 
 O. S. 371 [for opinion below, see Seibel v. Building Association, 9 Dec. Rep. 
 422, 13 Bull. 265|; see, to the same effect, Richter v. Loan Co., 4 O. N. P. 
 97, 6 O. D. (N. P.) 95. 
 
 A borrowing member who knows the custom of a building and loan asso- 
 ciation with reference to declaring dividends and who receives them for a long 
 period of time in accordance with such custom, can not, after a further lapse 
 of time, demand that the dividends for such previous period be readjusted 
 upon a different basis: Ruchlman v. Building Association, 6 O. C. C. 285, 
 3 O. C. D. 456: Deiringer v. Building Association, 2 O. D. (N. P.) 543 
 laffirmed, without report, Deiringer v. Building Association, 36 Bull. 328.1 
 
 As to the method of computing dividends under former statutes, see, also, 
 Building Association v. Vogeler, 7 O. N. P. 605, 5 O. D. (N. P.) 681; Dei- 
 ringer v. Building Association, 2 O. D. ( N*. P.) 543 [affirmed, without report, 
 Deiringer v. Building Association, 36 Bull. 328]; Turner Bauverein v. Wood- 
 burn, 11 Dec. Rep. 578, 27 Bull. 409. 
 
 Losses. 
 
 Sec. 9674. All losses shall be assessed in the same proportion 
 and manner on all members after the amounts in the reserve fund 
 and the undivided profit fund have been applied to the payment 
 thereof. (99 v. 532-25.) 
 
 The members of a building association, whethrr borrowers or non-borrowers, 
 have a mutual interest in its affairs; and, sharing alike in its earnings, must 
 assist alike in bearing its losses: Kvcrsniann v. Schmitt, 53 O. S. 174. 
 
 [465]
 
 APPENDIX. 
 
 A borrowing member is one who receives in advance the par value of 
 his shares, and agrees, in consideration of such advance, to pay the weekly 
 dues on the shares and the interest on the loan until the dues paid and the 
 dividend declared and not paid, are equal to the par value of his shares. He 
 then ceases to be a member and is entitled to a cancellation of the mortgage 
 given to secure the obligations arising from the loan: Evermann v. Schmitt, 
 53 O. S. 174. . . . .... 
 
 The mortgage executed by a borrowing member of a building association 
 contained, among other conditions, a stipulation for the payment of such 
 "assessments" as might be levied on him as a member. Losses occurred, and 
 the association became insolvent, whereupon a receiver was appointed to wind 
 up its affairs, who ascertained a "shortage" in the assets and made a pro rata 
 assessment on the members to meet the same. It was held that an assess- 
 ment for such purpose was within the above stipulation of the mortgage, and 
 that the member was not entitled to its cancellation until paid. It was held 
 further that, in such rase, the receiver was the proper person to ascertain 
 the amount of the losses and make an assessment on the members to meet 
 the same: Eversmann v. Schmitt, 53 O. S. 174; see, to the same effect, 
 Dcmland v. Loan Association, 20 O. C. C. 223, 11 O. C. D. 249. 
 
 A rule which restricts the liability of members to the amount which stands 
 upon the books of the association is invalid: Loan Co. v. Richter, 16 O. 
 C ('. 191, 9 O. C. D. 74, see, also, Loan Co. v. Ashbrook, 8 O. N. P. 246, 
 12 O. D. (N. P.) 10. 
 
 A member of a building association can not, by filing a notice of with- 
 drawal, whether first or last on the list, escape his share of the losses sus- 
 tained by the association by reason of the depreciation of its mortgage se- 
 curities sustained at the time his withdrawal was filed with the company: 
 Vincent v. Deposit Co., 5 O. N. P. 278, 7 O. D. (N. P.) 853. 
 
 A provision in a mortage to the effect that dues are to be paid until the 
 mortgage loan is repaid is binding, although the stock is to be paid in a 
 shorter period of time: Haynes v. Building Association, 2 O. N. P. 181. 
 3 O. D. (N. P.) 228. 
 
 For the liability of members of a building and loan association in case of 
 insolvency, see also, In re Building Association, 7 O. N. P. 518, 6 O. D. 
 (N. P.) 556. 
 
 Listing of shares for taxation. 
 
 Sec. 9G75. The shares and loans advanced to its members shall 
 be exempt from taxation, except that shares of stock upon which 
 no loans have been made or money advanced by the company, 
 shall be considered and held as credits. The members individually 
 shall list for taxation the number of shares held by them, and the 
 true value thereof in money, on the day preceding the second Mon- 
 day in April each year, and they shall be assessed at such valua- 
 tion for taxation and taxes as other property. (99 v. 532-26.) 
 
 A building and loan association advancing or paying taxes on real tftate 
 securities mortgaged to it should first examine carefully the provisions of the 
 following sections of the General Code of Ohio. 
 
 Section 5681. Each person holding lands shall pay the tax essessed there- 
 on each year, but an agent or attorney shall not be required to pay such 
 taxes, unless sufficient money of his principal is in his hands to pay them. 
 (R. S. Sec. 2847.) . . .. 
 
 Section 5682. Each person owning lands, may authorize or consent to tne 
 payment by another, of the taxes levied upon such lands. A person so paying 
 such taxes shall first obtain from the owner or owners of such lands a certi- 
 ficate of authority to pay them, signed in the presence of two witnesses, and 
 acknowledged before an officer authorized to administer oaths. Such cer- 
 tificate shall contain an accurate description of the property as shown by the 
 tax duplicate, the amount of the taxes levied thereon, the year for which they 
 were levied, the name of the person authorized to pay them, and the date of 
 the payment thereof. (R. S. Sec. 2847.) 
 
 [•1661
 
 LAWS OF OHIO. 
 
 Section 5683. The person so paying such taxes, within ten days from the 
 date of the payment thereof, shall file such certificate in the office of the 
 county recorder for record. When the certificate has been filed the amount 
 thereof with interest at eight per cent per annum from the date of the pay- 
 ment of such tax, shall become a lien upon such real estate in preference to 
 all liens thereafter attaching to the property and in preference to all pre- 
 existing liens the holders of which have executed and acknowledged such cer- 
 tificate of authority. The money so paid, with the interest thereon, may be 
 recovered by action for money paid to his use against the person legally liable 
 for the payment of the tax. Such action may be brought by the person so 
 paying the tax, at any time after the expiration of one year from the date of 
 the payment thereof. The certificate, so filed with the recorder, shall be re- 
 corded and cancelled, in like manner as mortgages on real estate, in a book 
 to be separately kept and indexed by him for that purpose, and the recorder 
 shall receive such fees as are prescribed bv law for recording real estate 
 mortgages. (R. S. Sec. 2847.) 
 
 Inspection 
 
 DEPARTMENT OF BNILDIKG AND LOAM ASSOCIATION. 
 
 General Code 
 
 SECTION 
 
 074 Inspector of building and loan 
 associations. 
 
 07.') Bond, oath and approval. 
 
 676 Duties of inspector. 
 
 C77 Deputies. 
 
 677-1 Salary of inspector. 
 
 677-2 Salaries of deputies, assist- 
 ants, etc. 
 
 677-3 Expenses. 
 
 077-4 Expenses. 
 
 677-;") Seal. 
 
 677-6 All instruments sealed with the 
 seal, received in evidence. 
 
 677-7 Place of office. 
 
 678 Requirements from foreign asso- 
 
 ciations. 
 
 679 Certificate of authority to do 
 
 business. 
 
 680 Collection of interest and ex- 
 
 change of securities. 
 
 681 Securities liable for claimants. 
 
 682 Annual report. 
 Form of report. 
 Annual examination. 
 
 685 Expenses of examination. 
 
 686 Revocation of charter for 
 
 gal pracl • 
 
 687 Dissolution if condition 
 
 sound. 
 f88 Powers of examiners. 
 
 689 Inspector may publish result. 
 
 690 May cancel authority of for- 
 
 n association. 
 091 Fees to be paid to inspector. 
 
 ille- 
 
 un- 
 
 Genes. 
 
 SECTIO 
 692 
 
 693 
 
 694 
 695 
 
 12J72 
 
 131S8 
 
 33189 
 
 13190 
 13191 
 
 18192 
 L3193 
 11972 
 1197? 
 
 S72 4 
 
 8725 
 ■-. 10 
 8 . 2 1 
 
 872S 
 8C27 
 
 8 186 
 8087 
 
 8688 
 
 al Code 
 n 
 
 Securities to be deposited with 
 treasurer of state. 
 
 Dissolution or consolidation of 
 building and loan associations. 
 
 Forfeiture for noncompliance. 
 Building and loan annual re- 
 port. 
 
 Embezzlement by officer of 
 building and loan association. 
 
 Signing name to order without 
 art!ioiity. 
 
 Declaring dividend greater 
 than earned. 
 
 False entry in book. etc. 
 
 Aiding officer to violate pre- 
 ceding sections. 
 
 Failing to make reports, etc. 
 
 Liability on bund. 
 Directors may appoint trustees. 
 
 Removal and duties of trus- 
 tee... 
 
 Dividends to be paid from 
 surplus profit:', only. 
 
 L'npaid interest not profits. 
 
 How profits ascertained 
 
 What advertisements prohib- 
 ited. 
 
 Liability for violation. 
 
 General powers. 
 
 Liability of stockholders. 
 
 t orporations created subse- 
 quent to November 23, 1903. 
 
 Limitation of action to enforce 
 
 liability. 
 
 Inspector of building and loan associations. 
 
 Sec. (J74. The governor with the advice and consent of the 
 senate, shall appoint an inspector of building and loan associations, 
 who shall serve for a term of three years. No such inspector of 
 building and loan associations shall have any official connection with 
 
 [467]
 
 APPENDIX. 
 
 a building and loan association, or be interested in the business 
 thereof, except as a stockholder. (103 v. 181-1.) 
 
 Bond, oath and a{t{>roval. 
 
 Sec. 675. Before entering upon the discharge of the duties of 
 his office the inspector of building and loan associations shall give 
 a bond to the state in the sum of ten thousand dollars with two or 
 more sureties or with a surety company authorized to do business in 
 the State of Ohio, approved by the governor, conditioned for the 
 faithful discharge of the duties of his office. Such bond, with the 
 approval of the governor and the oath of office endorsed thereon, 
 shall be deposited with the secretary oi state and kept in his office. 
 (103 v. 181-2.) 
 
 Duties of inspector. 
 
 Sec. 676. The inspector of building and loan associations shall 
 see that the laws relating to building and loan associations are duly 
 executed and enforced. When a violation of a law relating to 
 building and loan associations is reported to him he shall take, or 
 cause to be taken, the testimony, under oath, of any and all persons 
 supposed to have any knowledge of such violation, and cause such 
 testimony to be reduced to writing. If he be of the opinion that 
 there is sufficient evidence, he shall cause the person suspected of 
 such violation to be arrested and charged with such offense, and shall 
 furnish the attorney general or the proper prosecuting attorney 
 with the information obtained by him, the names of the witnesses 
 and a copy of all material testimony taken in the case. (103 v. 
 181-3.) 
 
 Deputies. 
 
 Sec. 677. With the approval of the governor, the inspector of 
 the building and loan associations may employ from time to time, 
 the necessary deputies, assistants, clerks and examiners, to assist him 
 in the discharge of the duties imposed upon him by law. With such 
 approval he may remove any such clerk or examiners at any time. 
 (103 v. 182-4.) 
 
 Salary of inspector. 
 
 Sec. 677-1. The salary of the inspector of building and loan asso- 
 ciations shall be three thousand six hundred dollars, per annum, and 
 shall be paid at the same time as the heads of other state depart- 
 ments. (103 v. 182-5.) 
 
 [4681
 
 LAWS OF OHIO. 
 
 Salaries of deputies, assistants, etc. 
 
 Sec. 677-2. The inspector of building and loan associations shall 
 fix the salaries of the deputies, assistants, clerks, and examiners at 
 such rates per annum as the governor shall approve. Upon vouchers 
 approved by the inspector of building and loan associations, such 
 salaries shall be paid by the treasurer of state, upon the warrant of 
 the auditor of state. (103 v. 182-6.) 
 
 Expenses. 
 
 Sf.c. 677-3. The actual and necessary traveling expenses of the 
 inspector of building and loan associations, and of the deputies, 
 assistants, clerks and examiners, incurred in the discharge of their 
 official duties shall be paid monthly by the treasurer of state, upon 
 the warrant of the auditor of state. Vouchers therefore shall be 
 fully itemized, approved by the inspector of building and loan asso- 
 ciations, and countersigned by the auditor of state. (103 v. 182-7.) 
 
 Sec. 677-4. All expenses incurred by the inspector of building 
 and loan associations, in the performance of the duties imposed upon 
 him by law, including the salary of such inspector, his deputies, assis- 
 tants, clerks, and examiners, shall be paid from funds appropriated 
 therefor. (103 v. 182-8.) 
 
 Seal. 
 
 Sec. 677-0. The seal of the inspector of building and loan asso- 
 ciations shall be one and three-fourths inches in diameter, shall have 
 engraved thereon the coat of arms of the state, and shall be sur- 
 rounded by the words, "Inspector of Building and Loan Associations 
 of Ohio." (103 v. 182-9.) 
 
 Seal as evidence. 
 
 Sec. 677-6. Every certificate or other instrument executed, or 
 order made, by the inspector of building and loan associations, in 
 pursuance of any authority conferred upon him by law, and sealed 
 with the seal of his office, or copies thereof duly authenticated under 
 such seal, shall be received in evidence in all courts of this state. 
 (106 v. 182-10.) 
 
 Place of office. 
 
 Sec. 677-7. The inspector of building and loan associations shall 
 be furnished by the state with suitable rooms, at the scat of the 
 government, for conducting the business of his office. (103 v. L88-11.) 
 
 [469] 
 
 31
 
 APPENDIX. 
 
 FOREIGN ASSOCIATIONS. 
 
 Requirements from foreign associations. 
 
 Sec. 678. Foreign building and loan associations doing business 
 in this state shall conduct such business in accordance with the laws 
 governing domestic associations. No foreign building and loan asso- 
 ciation shall do business in Ohio until it procures from the inspec- 
 tor of building and loan associations a certificate of authority to do 
 business in this state after complying with the following provisions: 
 
 1. It shall deposit with the inspector one hundred thousand 
 dollars, in cash or bonds of the United States or this state, or of a 
 county or municipal corporation therein, satisfactory to the in- 
 spector. 
 
 2. It shall file with the inspector a certified copy of its charter, 
 constitution and by-laws, and other rules and regulations showing 
 its manner of conducting business together with a statement such as 
 is required annually from all associations. 
 
 3. It shall also file with the inspector a written instrument, duly 
 executed, agreeing that a summons may issue against it from any 
 county in this state directed to the sheriff of the county in which 
 the office of inspector is situated, commanding him to serve it by 
 certified copy personally upon the inspector or by leaving a copy 
 thereof at his office. The inspector shall mail a copy of any papers 
 served on him to the home office of such association. (99 v. 533-31.) 
 
 Certificate of authority to do business. 
 
 Sec. 679. When a foreign building and loan association has com- 
 plied with the provisions of the preceding section, and the inspector 
 is satisfied that it is doing business according to the laws of Ohio 
 and is in sound financial condition, he shall issue his certificate of 
 authority to the association to do business in this state. Annually 
 thereafter, upon filing the annual statement herein provided for, if 
 the inspector is satisfied as herein provided, he shall issue a renewal 
 of such certificate. (99 v. 533-32.) 
 
 Collection of interest and exchange of securities. 
 
 Sec 680. A foreign building and loan association may collect 
 and use the interest on securities deposited as provided by law so 
 long as it fulfills its obligations and complies with the laws of this 
 state. It may also exchange them for other securities of equal value 
 satisfactory to the inspector. (99 v. 534-33.) 
 
 [470]
 
 LAWS OF OHIO. 
 
 Securities liable for claimants. 
 
 Sec. 681. The deposit made by a foreign building and loan asso- 
 ciation with the inspector of building and loan associations shall be 
 held as a security for all claims of residents of this state against such 
 association, and be liable for all judgments or decrees thereon, and 
 subjected to the payment thereof in the same manner as the property 
 of other non-residents. Should an association cease to do business 
 in this state, the inspector may release securities in his discretion, 
 retaining sufficient to satisfy all outstanding liabilities. (99 v. 534-34.) 
 
 See also Section 178 of the General Code of Ohio. 
 
 ANNUAL REPORTS OF ASSOCIATIONS. 
 
 Annual report. 
 
 Sec. 682. Every building and loan association doing business in 
 this state, annually, at the end of each fiscal year or within forty 
 days thereafter, shall make a full and detailed report in writing of 
 the affairs and business of the association for the preceding year, 
 and showing its financial condition at the end thereof. With the 
 first report made by an association it shall file a certified copy of 
 its constitution and by-laws, or other rules and regulations, show- 
 ing its manner of doing business. (99 v. 534-35.) 
 
 Form of report. 
 
 Sec. 683. The report required in the preceding section shall be 
 the form and contain such information as is prescribed by the in- 
 spector of building and loan associations. It shall be sworn to by 
 the secretary and its correctness attested by at least three directors 
 or an auditing committee appointed by the board. The original shall 
 be filed with the inspector of building and loan associations within 
 forty days after the close of the fiscal year. Such an abstract there- 
 fore as the inspector requires shall be posted for sixty days in the 
 office or meeting place of such association, and published in a news- 
 paper regularly issued in the country in which it is located. (99 v. 
 534-36.) 
 
 EXAMINATION OF ASSOCIATIONS. 
 
 Annual examination. 
 
 Sec. 684. At least once each year the inspector of building and 
 loan associations shall make an examination into the affairs of each 
 such association, or cause it to be made by a person appointed by 
 him for that purpose. (99 v. 534-37.) 
 
 [4711
 
 APPENDIX. 
 
 Expenses of examination. 
 
 Sec. 085. The expenses of all examinations shall be paid by this 
 state, except that when, by the laws of any other state, district, 
 territory or nation, examinations of such associations of this state 
 are required or permitted to be made by any official or other authori- 
 ty of such other state, district, territory or nation at the expense 
 of such associations, then the expenses of all such examinations 
 made by the inspector of this state, of such associations of that 
 state, district, territory or nation, musit be respectively charged to 
 and collected from such associations so examined. (99 v. 534-37.) 
 
 Revocation of charter for illegal practices. 
 
 Sec. G8G. If upon examination, the inspector of building and loan 
 associations finds any domestic association conducting its business 
 in whole or part contrary to law, or failing to comply therewith, he 
 shall notify the board of directors of such association of such fact 
 in writing. If, after thirty days, such illegal practices or failure 
 continue, he shall communicate the facts to the attorney general, 
 who shall cause proceedings to be instituted in the proper court to 
 revoke the charter of such association. (99 v. 535-38.) 
 
 Dissolution if condition unsound. 
 
 Sec. 087. If, upon examination, the inspector of building and 
 loan associations finds that the affairs of a domestic building and 
 loan association are in an unsound condition, and that the interest 
 of the public demand its dissolution and the winding up of its busi- 
 ness, he shall so report to the attorney general, who shall institute 
 the proper proceedings for that purpose. (99 v. 535-39.) 
 
 Powers of examiners. 
 
 Sec. 088. An examiner appointed by the inspector of building 
 and loan associations under the provisions herein relating to such 
 associations, shall have access to and may compel the production of 
 all books, papers, securities, moneys and other property of an asso- 
 ciation under examination He may administer oaths to, and examine 
 the officers and agents of such association as to its affairs. (99 v. 
 535-40.) 
 
 Inspector may publish result. 
 
 Sec. 089. If the inspector of building and loan association deems 
 it to the interest of the public, he may publish the results of such 
 
 [472]
 
 LAWS OF OHIO. 
 
 examination in a newspaper of general circulation in the county in 
 which such association is located, if it is a domestic association, and 
 in some newspaper in the city of Columbus if it is a foreign asso- 
 ciation. (99 v. 535-41.) 
 
 May cancel authority of foreign association. 
 
 Sec. 690. If upon examination the inspector of building and loan 
 associations finds that a foreign association does not conduct its 
 business in accordance with law, or that its affairs are in an unsound 
 condition, or if it refuses to permit an examination to be made, he 
 may cancel its authority to do business in this state, and cause a 
 notice thereof to be mailed to the home office of the association and 
 published in at least one newspaper published in the city of Colum- 
 bus. After the publication of such notice no such association or 
 agent thereof shall receive further stock deposits from members 
 residing in this state, except payments on stock on which a loan 
 has been taken. (99 v. 535-42.) 
 
 FEES. 
 
 Fees to be f>aid to inspector. 
 
 Sec. 691. Foreign building and loan associations shall pay to the 
 inspector of building and loan associations the following fees: 
 
 For filing an application for admission to do business in this 
 state, five hundred dollars; 
 
 For each certificate of authority and annual renewal thereof, two 
 hundred dollars. 
 
 Every building and loan association doing business in this state, 
 whether foreign or domestic, shall pay to the inspector of building 
 and loan associations, for filing each annual report, at the time said 
 annual report is filed, the sum of ten dollars, and in addition there- 
 to, one-eightieth of one per cent of its assets, as shown in such 
 report. All such fees collected shall be paid into the general revenue 
 fund. H06 v. 236.) 
 
 Securities to be deposited with treasurer of state. 
 
 692. All securities or cash deposited with the inspector of 
 building and loan associations shall be deposited with the treasurer 
 of state, who, with his sureties, shall be responsible for the safe 
 keeping thereof. The treasurer shall deliver such securities only 
 upon the written order of the inspector. (99 v. 536-44.) 
 
 [478]
 
 APPENDIX. 
 
 Dissolution of consolidation. 
 
 Sec. 693. A building and loan association or a savings associa- 
 tion may provide in its constitution and by-laws for tbe time and 
 terms of its dissolution and for its consolidation with one or more 
 of such corporations on terms and conditions to be determined upon 
 by their board of directors. In case of the dissolution of such a 
 corporation, its board of directors by a majority vote may be au- 
 thorized to sell and transfer its mortgage securities or other property, 
 or both, to another corporation, person or persons, subject to the 
 vested and accrued rights of the mortgagors. (99 v. 537-48.) 
 
 PENALTIES. 
 
 Forfeiture for non-compliance. 
 
 Sec. 694. A building and loan association which does business in 
 this state without first complying with the provisions herein or which 
 violates or fails to comply with provisions of law relating to build- 
 ing and loan associations shall forfeit and pay not less than fifty 
 dollars nor more than one thousand dollars, to be recovered by an 
 action in the name of the state and on collection paid into the state 
 treasury. (99 v. 536-45.) 
 
 Record of proceedings of inspector. Report. 
 
 Sec. 695. The inspector of building and loan associations shall 
 keep and preserve in permanent form a full record of his proceed- 
 ings, including a concise statement of each association examined, 
 and, in his annual report, he shall report the general conduct and 
 condition of the building and loan associations doing business in this 
 state. Such report shall include the information contained in the 
 statements required of the associations in tabulated form. (106 v. 
 510.) 
 
 Embezzlement by officer. 
 
 Sec. 12472. Whoever, being a president, director, trustee, mem- 
 ber of a committee, secretary, treasurer, attorney or other officer or 
 agent of a building and loan association or savings association as 
 provided by law, embezzles, abstracts, or willfully misapplies any 
 of the moneys, funds, or credits thereof, or issues or puts into cir- 
 culation a warrant or other order, or assigns, transfers, cancels, or 
 delivers a note, bond, draft, mortgage, judgment, decree or other 
 written instrument belonging thereto, or raises money otherwise, or 
 
 [474]
 
 LAWS OF OHIO. 
 
 receives money from a member or other person for and in the name 
 of such association unless authorized so to do by the board of direc- 
 tors thereof, shall be imprisoned not less than one year nor more 
 than ten years and be liable to the person injured thereby to the 
 extent of the damage incurred. Suit may be brought against the 
 person so violating and the sureties on his bond given to such asso- 
 ciation for the faithful performance of his duty. (99 v. 536-46.) 
 
 Signing name without authority. 
 
 Sec. 13188. Whoever, being a president, director, trustee, mem- 
 ber of a committee, secretary, treasurer, attorney or other officer or 
 agent of a building and loan association or saving association, as 
 provided by law, signs the name of a person to an order or warrant 
 for the payment of money without proper power of attorney or 
 written order from the person to whose order such order or war- 
 rant is made payable, shall be imprisoned not less than one year nor 
 more than ten years. (99 v. 530-46.) 
 
 Declaring dividend greater than earned. 
 
 Sec. 13189. Whoever, being a member of a board of directors 
 of a building and loan association or savings association, as pro- 
 vided by law, votes to declare, or, being a financial or first secretary 
 thereof, declares or advises the board of directors thereof to declare 
 a greater dividend than has been actually earned by such associa- 
 tion, for the purpose of deceiving the people or defrauding the 
 members thereof, shall be imprisoned not less than one year nor 
 more than ten years. (99 v. 536-46.) 
 
 False entry in booh, etc. 
 
 Sec. 13190. Whoever, being a member of a board of directors 
 of a building and loan association or savings association, as provided 
 by law, certifies to, or makes a false entry on a book, report or state- 
 ment of or to such association, with intent to deceive, injure or 
 defraud it or another company, body politic or corporate or person, 
 or to deceive any one appointed to examine the affairs of such asso- 
 ciation, shall be imprisoned not less than one year nor more than 
 ten years. (99 v. 536-46.) 
 
 Aiding Officer to violate preceding sections. 
 
 Sec. 13191. Whoever, with intent to deceive, injure or defraud 
 a building and loan association or savings association, as provided 
 by law, or other company, body politic or corporate or person, aids 
 
 [475]
 
 APPENDIX. 
 
 or abets a president, secretary, treasurer, committee or other person 
 in violation of any of the next four preceding sections shall be 
 imprisoned, not less than one year, nor more than ten years. 
 (99 v. 536-46.) 
 
 Failing to make reports, etc. 
 
 Sec. 13192. Whoever, being an officer thereof, fails to make the 
 reports required of him by the laws provided for the organization, 
 regulation and inspection of building and loan associations or sav- 
 ings associations, or, being an officer, employe or other person, so- 
 licits business for, aids or assists such association to do business 
 contrary to the provisions of such laws, or without having complied 
 therewith, shall be fined not more than five hundred dollars or im- 
 prisoned not more than six months, or both. 99 v. 536-46.) 
 
 Liability on bond. 
 
 Sec. 13193. Whoever violates any provision of the next five pre- 
 ceding sections shall be liable to the person injured thereby to the 
 extent of the damage incurred and suit may be brought against the 
 person so violating and the sureties of the bond given by him to 
 such association for the faithful performance of his duty. Fines 
 collected under the next five preceding sections shall be paid into 
 the state treasury. (99 v. 536-46.) 
 
 Directors may anoint trustees. 
 
 Sec. 11972. The board of directors or other officers having the 
 control and management of a corporation in this state, may appoint 
 three trustee to adjust and settle its affairs. The trustees so ap- 
 pointed shall be authorized to use the corporate name for such 
 period as may be necessary for the adjustment and settlement of its 
 affairs, by suit or otherwise. (R. S. 5687.) 
 
 Where a corporation is winding up its own affairs under a statute, as by 
 appointing trustees under G. C. 11972, the courts will not interfere on the 
 mere ground of insolvency: Savings Co. v. Rehn, C O. N. P. 185, 8 O. D. 
 (N. P.) 694. 
 
 The courts will not appoint a receiver for fraud and mismanagement, if 
 injunction will be sufficient relief: Savings Co. v. Rehn, 6 O. N. P. 185, 
 8 O. D. (N. P.) 594. 
 
 Removal and duties of trustees. 
 
 Sec. 11973. The trustees so appointed shall report annually to 
 the stockholders of the corporation a full and succinct statement of 
 its affairs. A majority in interest of the stockholders may remove 
 a trustee, or appoint a person to a vacancy occasioned by the death, 
 resignation or removal of a trustee. (R. S. 5688.) 
 
 |476]
 
 LAWS OF OHIO. 
 
 DIVIDENDS. 
 
 Dividends to be £aid from surplus profits only. 
 
 Sec. 8724. Directors of a corporation organized under the laws 
 of this state shall not make dividends except from surplus profits 
 arising from its business. (R. S. 3269-1.) 
 
 Unpaid interest not {>ropts. 
 
 Sec. 8725. In calculating its profits, prior to a dividend, interest 
 then unpaid, although due, on debts owing to it, shall not be in- 
 cluded. (R. S. 3269-2.) 
 
 How profits ascertained. 
 
 Sec. 8726. In order to ascertain the surplus profits from which a 
 dividend may be made, in the account of profit and loss there shall 
 be charged and deducted from the actual profits — 
 
 1. All ordinary and extraordinary expenses, paid or incurred, in 
 managing the affairs and transacting the business of the corporation. 
 
 2. Interest paid, or then due or accrued, on debts it owes. 
 
 3. All losses of the corporation. In computing its losses, debts 
 owing to it which have been due without prosecution, or interest 
 paid thereon, for more than one year, or upon which judgment was 
 recovered, but has been more than two years unsatisfied, and on 
 which also for that period, no interest was paid, shall be included. 
 (R. S. 3269-3.) 
 
 Borrowing members whose interest is rebated each year are not entitled 
 to dividends except upon the current year's dues: Atlantic B. Ass'n. v. VeBeler, 
 5 Low. D. 581 ; 7 N. P. 00G. 
 
 What advertisements prohibited. 
 
 Sec. 8727. No such corporation shall advertise a larger amount 
 of capital stock than actually has been subscribed and paid in, nor 
 advertise a greater dividend than actually has been earned and 
 credited or paid to its stockholders or members. (R. S. 3269-3.) 
 
 Liability for violation. 
 
 Sec. 872K. Every director of such a corporation, who violates or 
 is concerned in violating any provision of the next four preceding 
 sections shall be personally liable to its creditors and stockholders 
 for any loss which thereby they respectively sustain. (R. S. 3269-4.) 
 
 sr. tion (820« -5) wns changed by the legiulature to Section 14ftd. (Section 
 178. General Code of Ohio.) 
 
 11771
 
 r. APPENDIX. 
 
 General powers. 
 
 Skc. 8627. Upon filing articles of incorporation, the persons who 
 subscribed them, their associates, successors, and assigns, by the 
 name and style provided therein, shall be a body corporate, with 
 succession, power to sue and be sued, contract and be contracted 
 with; also, unless specially limited, to acquire and hold all property, 
 real or personal, necessary to effect the object for which it is created, 
 and at pleasure convey it in conformity with its regulations and the 
 laws of this state. Such corporation also may make, use, and at 
 will alter a common seal, and do all other acts needful to accom- 
 plish the purposes of its organization. (R. S. Sec. 3239.) 
 
 Liability of stockholders. 
 
 Six. 8686. The stockholders of a corporation who are holders 
 of its shares at a time when its debts and liabilities are enforcible 
 against them, shall be held liable, equally and ratably, but not one 
 for another, in addition to their stock in an amount equal thereto, 
 to the creditors of the corporation, to secure the payment of such 
 debts and liabilities. No stockholder who transfers his stock in 
 good faith, if such transfer is made on the books of the company 
 or on the back of the certificate of stock properly witnessed or 
 tendered for transfer on its books prior to the time when such 
 debts and liabilities are so enforcible, may be held to pay any por- 
 tion thereof. (R. S. Sec. 3258.) 
 
 Corporations created subsequent to November 23, 1903. 
 
 Sec. 8687. The next preceding section shall not apply to stock- 
 holders in a corporation created after the twenty-third of November, 
 1903, nor to debts or liabilities of a corporation incurred after such 
 date. As to all debts and liabilities of corporations for profit in- 
 curred after such date, the stockholders thereof shall be under no 
 liabilities other than those stated in article XIII, section three, of 
 the constitution of Ohio. (R. S. Sec. 3258.) 
 
 Limitation of action to enforce liability. 
 
 Sec. 8688. An action upon the liability of stockholders under the 
 two next preceding sections can only be brought within eighteen 
 months after the debt or obligation shall become enforcible against 
 stockholders. (R. S. 3258a.) 
 
 [ 178]
 
 LAWS OF OHIO. 
 
 FEE BILL OF SECRETARY OF STATE. 
 
 AS THE SAME APPLIES TO BUILDING AND LOAN ASSOCIATIONS ORGANIZED 
 
 UNDER THE LAWS OF OHIO. 
 
 For filing articles of incorporation of a building and loan association. .. .$10 09 
 For filing a certificate of increase of capital stock of any 3uch association 6 00 
 For filing a certificate of reduction of capital stock of any corporation. ... 6 00 
 For filing a copy of the decree of court changing the name of any 
 
 corporation 3 00 
 
 For filing a certified copy of the acceptance by any corporation in- 
 corporated prior to the adoption of the present constitution of any 
 
 of the provisions of the General Code 6 00 
 
 For filing an amendment to articles of incorporation of any corporation 6 00 
 For filing for any corporation a certificate of extension of purpose or 
 
 change of domicile 5 00 
 
 For filing other certificates not hereinbefore enumerated 6 00 
 
 For filing the certificate of subscription required to be filed by Section 
 
 8633 of the General Code 2 00 
 
 For making a certificate under the great seal of the State 1 00 
 
 For recording miscellaneous records, papers or other documents required 
 by law to be recorded in the office of the Secretary of State, 20 
 cents a hundred words. 
 For making copies, 10 cents a hundred words. 
 For affixing seal of office to copies 50 
 
 The statutes provide that all fees collected by the Secretary of 
 State shall be paid into the State Treasury; and that he shall neither 
 file our record any of the articles of incorporation, certificates or 
 other papers hereinbefore referred to unless the fees for filing same 
 are first duly paid. 
 
 M7!>|
 
 APPENDIX. 
 
 BIBLIOGRAPHY 
 
 LIBRARY OF CONGRESS. 
 
 Washington, D. ('. 
 Division of Bibliography. 
 
 H. H. B. Mkvbr, Chief Bibliographer. 
 
 LIST OF REFERENCES ON BUILDING AND 
 LOAN ASSOCIATIONS. 
 
 American Building Association News. Published at Cincinnati, 0. Differ- 
 ent Volumes. 
 
 1 Academy of Political Science. New V'ork. Business and the Public Wel- 
 
 fare. New York. The Academy of Political Science, 1912. 185 p. (Its 
 Proceedings.... Vol. II, No. 2.) 
 
 Co-operative Loan Society by P. Jay: The Celluloid Club Sav- 
 ing and Loan Department, by S. T. Simmonds; Co-operative Saving 
 and Loan Associations, by K. E, Pratt. HD36U.A25 
 
 H31.A4 Vol. 2 No. 2 
 
 2 Albrecht, Rudolph. Die Beamten-Baugenossenschaften im Rahmcn der 
 
 deutschen Baugenossenschaftsbewegung. Stuttgart, F. Enke, 1911. 166 
 p. (Tubingcr staatswisscnschaftliche Abhandlungen. . . . 11 hft....) 
 "Literatur": p. 104-166. HG2156.G3A6 
 
 3 Attwood, D. F. How to Start a Branch of the People's Building Loan 
 
 and Saving Association. .. .Agents Manual.... [Geneva, N. Y., 1889] 
 16 p. HG2626.G3A8 
 
 4 Beers, George E. Building and Loan Associations. (In The American 
 
 and English Encyclopaedia of Law. 2nd edition, vol. 4, pp. 9991082, 
 Northport, N. Y., 1897.) 
 
 Contents: Definition and description; the building association as a 
 corporation; officers, and agents; rights and powers; membership; 
 stock; rights, duties, and liabilities of members; dues; forfeiture; 
 withdrawals; the building association loan; the premium usury; satis- 
 faction of the loan, dissolution and winding up. 
 
 5 Bemis, Edward W. Co-operation in New England. (In History of Co- 
 
 operation in the United States, pp. 17-133. Baltimore, 1888. Johns 
 
 Hopkins University Studies in Historical and Political Science. Vol. 6.) 
 
 "Co-operative Banks for Building and Ixian Associations:" p. 93-101. 
 
 6 Bloom, J. E. A Novel Constitution for Building, Savings and Loan Asso- 
 
 ciations. New York, Wynkoop, Hallenbeck & Co., printers [1889| 31 p. 
 
 HG2128.B4 
 
 7 Bowkett, Thomas E. Freehold Property for Mechanics. Notes of lectures 
 
 delivered at the Popular Literary Institution, in June and July, 1843; 
 containing instructions for the formation of societies, by means of 
 which every mechanic. .. .may become a freeholder. London, Cleave, 
 1843. 22 p. HG2156.G8B8 
 
 8 Brazil. Laws, Statutes, etc. Lei e Regulamento da Reforma Hypothecates 
 
 Establendo as Bases das Sociedades de Credito Real. Rio de Janeiro 
 Typographia Nacional, 1805. 04 p. IIG2051.B7A4 1865 
 
 9 The Building and Loan Association Index.... Chicago, M. P. Riley & 
 
 Bro., printers, 1889. 22 p. HG2026.C4B8 
 
 10 The Building and Loan Herald. New York, 1895-1901. 7 vol. 
 
 Title varies 1696-1899: The National Building and Loan Herald. 
 
 HG2121.B8 
 
 11 The Building Association Manual, containing a full exposition of the prin- 
 
 ciples, operations, advantages, and disadvantages of building associa- 
 tions. ... By a solicitor of a Philadelphia building association. Phila- 
 delphia, King & Baird, printers, 1854. 40 p. HG2126.B93 
 
 [480]
 
 BIBLIOGRAPHY. 
 
 12 Building Societies' Association, London. Judicial decisions affecting 
 
 building societies. Reprinted from the "Building Societies' Gazette," 
 1894/1895-1903/1904. With sumaries and index. Vol. 1-8. Issued by 
 the Building Societies' Association. London, Building Societies' Asso- 
 ciation |1896-1906l 6 v. 
 
 13 Busse, Henry W. The Mutual Home Clearing System St. Paul, 
 
 Minn., The Pioneer Press Co., 1897. 26 p. HG2128.B9 
 
 14 [Caldwell, Robert W. ] The American Homestead and Trust Company or 
 
 Society. Plans for buying homesteads, releasing mortgages, borrowing 
 and loaning money (Pittsburg? 1890) 113 p. HG2128.C24 
 
 15 California. Bureau of Building and Loan Supervision. Report on the 
 
 building and loan associations.... Sacramento, 1894-1917/18. 14 v. 
 
 1894-1917, Reports by the Board of Commissioners of the Building 
 and Loan Associations. HG2150.C2 
 
 16 Canada. Census and statistics office. The Canada Year Book 1905. Ot- 
 
 tawa: Printed by S. E. Dawson, 1906. xli, 351 pp. 
 
 Loan Companies and Building Societies, pp. 200-266. HA774.S81 
 
 17 Canada. Department of Finance. Report of the Loan Companies and 
 
 Building Societies in the Dominion of Canada. .. .with comparative 
 tables from 1867 Ottawa, 1888-1910. 21 v in 9. HG2156.C3A3 
 
 18 Carriere, Georges. Le Logement Populaire et les Habitations a Bon 
 
 Marche. Paris, J. B. Bailliere et fils, 1912. 215 p. HG7338.A3C3 
 
 19 California. Laws, Statutes, etc General laws relating to building 
 
 and loan associations. (Sacramento, 1913?] 20 p. HG2133.C2A5 1913 
 
 20 Clark, Charles E. The Local Building Association — A cornerstone of 
 
 the Commonweal. An Address. .. .Covington, Ky. .. .Cincinnati- 
 Chicago, The American Building Association News [1908] 10 p. 
 
 HG2152.C7 
 
 21 President's Annual Address Before the Kentucky State League of 
 
 Local Building Associations, Covington, Kentucky, April 22, 1908. 
 Cincinnati-Chicago. The American Building Association News [1808] 
 g p HG2153.K4C6 
 
 22 Clement, Henry. Habitations a Bon Marche et Caisses d'Epargne. Paris, 
 
 Bloud & ( ie, 1911. 63 p. (Questions de Sociologie.) HG2150.F82C6 
 
 23 Cloughly, Alfred Comp. Mechanics' Lien Law of the State of New Jersey 
 
 and Builders' Guide. .. .containing the law as revised, March 27, 1874, 
 and all amendments and supplements thereto. Also a directory of 
 prominent dealers in various kinds of material used in the construc- 
 tion of buildings Newark, N. J., W. A. Baker & Co., printers, 1887, 
 
 12 8 p. HD4934.M6C5 
 
 24 Conference National des Societes d'Habitations Ouvrieres. Brussels, 1898. 
 
 Documents, rapports & proces-verbaux. Bruxelles, Bruylant-Christophe 
 & Cie, 1899. 7o3 p. HD7343.A3C7 
 
 25 Connecticut. Commissioner on Building and Loan Associations. Annual 
 
 report, relating to building and loan associations and mortgage invest- 
 ment, companies 1897-date. Hartford, Conn. 1898-1914. 18 v. in 17. 
 
 "Earlier Reports Published by Bank Commissioners." Bowker, State 
 Publications, pt. 1, p. 77. HG2150.C7 
 
 26 Connecticut. Laws, Statutes, etc. Laws Relating to Banks, Savings 
 
 Banks, and Trust Companies, Building and I^oan Associations and In- 
 vestment Companies, 1915. Comp. by the Bank Commissioner. Hart- 
 ford, Pub. by the state [1916] 110 p. HG2426.C8A3 1915 
 
 27 The Co-operative News. Devoted to the interests of building, loan and 
 
 savings associations and our American homes. Cincinnati, O., Rosen- 
 thal & Co. [1890-1893] 3 v. HC.2121.C7 
 
 28 Cruger, Hans. Statistischer Beitrag zur Paugenossenschafts-Bewegung in 
 
 Deutschland. Berlin, Druck von L. Simion, 1906. 4 p. HG2160.G3C8 
 
 29 Davis, Henry F. A. The Law and Practice of Building and Loan So< 
 
 cieties. Including the Law of Co-operative Building Societies. 4th ed. 
 Re-cast and in great part rewritten by J. K. Walker .... London, 
 Sweet & Maxwell, 1896. 604 p. 
 
 30 Croad, Horatio J. Car Trusts, Building Loan Association, and I ii.st.ilni.-iit 
 
 Plan Monthly Tables. ... I 1st ed. ] New York, Burr I'm. ting lions.- 
 11888] 18 p. HG1080.CM 
 
 [481]
 
 APPENDIX. 
 
 31 Davis \V[illiam] L. Building Association Dividend Tables. Showing the 
 dividend on one to five shares, at 2. 3, 4.... 12 per cent. .. .Cincinnati, 
 R. Clarke & Co., Printers. 1885. 27 p. HG1636.D26 
 
 82 De Bower, Herbert F. Building and Loan Associations Make Both Men 
 and Cities. (In La Follette, Robert M. 3d. The making of America, 
 vol. 10, pp. 226 231. Chicago, 1900.) HC103.126 
 
 38 Desjardins, Alphonso. The Co-operative People's Bank, La Caisse Po- 
 pulaire. New York City, Division of Remedial Loans, Russell Sage 
 Foundation 11914] 42 p. HG2166.C4C6 
 
 34 Devine, Henry C. People's Co-operative Banks for Workers in Towns, 
 
 and Small Holders, Allotment Cultivators, and Others in Country Dis- 
 tricts, London. Paris, New York, Toronto and Melbourne, Cassel and 
 Company, 1908. 147 p. 
 
 •'Bibliographic note": p. 146-147. HG2998.C8D6 
 
 35 Dexter, Seymour. A Treatise on Co-operative Savings and Loan Asso- 
 
 ciations; Including Building and Loan Associations. Mutual Savings 
 and Loan Associations, Accumulating Fund Associations, Co-operative 
 Banks, etc. New York, D. Appleton and Company, 1889. 299 p. 
 
 HG2126.D52 
 
 36 District of Columbia. Laws, Statutes etc. Banking and Building Asso- 
 
 ciation Laws of the District of Columbia. ( omp. under the direction 
 of the Comptroller of the Currency, December 1, 1910. Washinton, 
 Govt. Print. Off., 1916. 40 p. 
 
 Treasury Department, Document No. 2797. Comptroller of the Cur- 
 rency. HG2426.D6A4 1916 
 
 37 Doran, Joseph I. The Operations of Our Building Associations. Phila- 
 
 delphia, Philadelphia Social Science Association [1876] (Philadelphia 
 Social Science Association. Papers Read Before the Association, 1876.) 
 
 HG2152.D7 
 Reprinted from the Penn Monthly for July and August, 1876. 
 
 38 Dunn, Edward J. Plan and Regulations for Home-building, Loan and 
 
 Investment Companies. Aldrich & Dunn, proprietors of plan. St. 
 Louis, Nixon-Jones Printing Co., 18S5. 19 p. HG2126.D89 
 
 39 Dye, George W. Dye's Lightning Interest Tables, Prepared Especially 
 
 for the Use of Building and Loan Associations. [Newport, Ky., G. 
 Vesper, printer, 1914] 12 p. HG2129.D82 
 
 40 Eldredge Dlaniel]. Massachusetts Co-eperative BanV:s, or Building Asso- 
 
 ciations. A History of their Growth from 1877 to 1893. Prepared for 
 the World's Columbian Exposition. Boston, Mass., U. S. A., Press 
 of G. H. Ellis, 1893. 44 p. HG2163.M4E4 
 
 41 Endlich, Gustav A. The Law of Building Associations, Being a Treatise 
 
 Upon the Principles of Law Applicable to Mutual and Co-operative 
 Building, Homestead, Saving, Accumulating, Loan and Fund Associa- 
 tions, Benefit Building Societies, etc. in the United States. 2nd ed. 
 Jersey City, F. D., Linn & Co., 1895. 684 p. 
 
 42 Engel, Ernst. Die moderne Wohnungsnoth. Signaturen, Urrachen und 
 
 Abhulfe. Leipzig, Duncker & Humblot, 1873. 102 p. HD7339.A3E5 
 
 43 France. Laws, Statutes, etc. Proposition de loi Relative aux Societes 
 
 d'Epargne, (renvoyoe a la Commission des Societes d'Assurances.) 
 Presentee par MM. L. Bonnevay, Guioysse. Guillaume Chastenet, 
 Cloares, etc., Deputes. [Paris, Motteroz et Martinet, Imprimeurs as 
 la Chambre des Deputes, [1909] 13 p. (Chambre des Depute. 9 legisl. 
 
 sess. 1909, No. 2347. Annexe au Procas-vcrbal 2 mars 1909.) 
 
 HG1939.F6B7 
 
 44 [Franklin, William] of Connecticut. The Building Associations of Con- 
 
 necticut and Other States Examined, with a Review of the New York 
 and Massachusetts Systems. . . . Also, a Complete Review, from Official 
 Documents, of all the Building Associations. ... Established in Connec- 
 ticut. To which is added, for the Management of such Institution a 
 
 Model Plan New Haven, W. Franklin, 1856. 225 p. 
 
 HG2126.F7 
 
 45 Fritze, James P. Investment Building and Loan. Reasons Why. [Peoria, 
 
 111., 1892] 12 p. HG2126.F8 
 
 [482]
 
 BIBLIOGRAPHY. 
 
 40 Furth, Emil, Ritter von. Wohnungsamter and Wohnungsinspektion. 
 Wien, F. Deuticke, 1905. 67 p. (Schriften der Oesterr. Gesellschaft 
 fiir Arbeiterschutz. VI. Hft.) 
 
 "Das Schriftchen ist eine etwas erweiterte Wiedergabe ernes am 
 
 18 Marz 1904 in der Oesterreichischen Gesellschaft fiir Arbeiterschutz 
 gehaitenen Vortrages." p. 3. HD7337.A3F8 
 
 47 Garland. Nicholas S. A Compilation of the Laws and Amendments 
 
 Thereto Relating to Building Societies, Loan Companies, Joint Stock 
 Companies and Interest on Mortgage and Other Acts Pertaining to 
 Monetary Institutions, as Passed by the Dominion Parliament and the 
 Several Provincial Legislatures; to which is Appended a Complete Re- 
 ference Table to Private Acts and Amendments. By N. Surrey Gar- 
 land Also the Laws Relating to Banks and Banking, Comp. by 
 
 William Wilson Ottawa, A. S. Woodburn, 1882, 416 p. 
 
 HG2135.C2G2 
 
 48 German-American Building Associations, Baltimore. Deposits and Loans 
 
 in the German-American Building Associations. Making no Allowance 
 for Losses or Expenses. [Baltimore, 1892] 6 p. HG1636.G37 
 
 49 Graf Max. Bedeutung, Zweck und Ziel der Baugenossenschaften nebst 
 
 Arileitung zur Grundung und Leitung derselben. Leipzig, H. Klasing, 
 1902. 90 p. (Ludwig Hubert's praktische gewerbliche Bibliotnek.) 
 
 HG2156.G3G8 
 
 50 Grant-Smith, W. Colin. Building Societies' Accounts. Specially Adapted 
 
 for permanent Societies and Societies using Interest Tables. London 
 Gee & Co 1903. 104 p. ("The Accountants' Library, vol. XXV.) 
 ' HF5801.A2 
 
 51 Gt. Brit. Board of Trade. Co-operative Societies. Board of Trade. 
 
 (Labor Department.) Report on Industrial and Agricultural Co- 
 operative Societies in the United Kingdom, with Statistical lables.... 
 London, Pub. by H. M. Stationary off., printed by Darling and Son, 1912, 
 273 p. (Parliament Papers by Command. I d. 0045.) _ . . „ 
 
 A revision and extension of "Workmen's Co-operative Societies, 
 pub. 1901. (Cd. 698) 
 
 ' Periodical Co-operative Publications" p. 257. 
 
 "List of Publications Dealing With Co-operation in Library of Labour 
 Department" p. 258-209. 
 
 "List of Latest Board of Trade Publications": p. 271-273. 
 
 HD3486.A4 1912 
 
 52 Registry of Friendly Societies, Building Societies, 7th-10th An- 
 nual Report by the Chief Registrar of Friendly Societies of the I ro- 
 ceedinrs of the Registrars under the Building Societies Acts; with an 
 Abstract of the Annual Accounts and Statements of Societies.... 1901- 
 1904. London. Printed for H. M. Stationary off., by Eyre and Spot- 
 tiswoode. 1902-1905. 4 v. HG8156.U7AS 
 
 53 Hamilton, J^mes H. Savings and Savings Institutions. New York. 
 
 London. The Macmillan Company, 1902. 436 p. 
 
 "Partial List of Authorities Consulted": pp. 429-432. 
 "Building and Loan Associations": pp. 129-148. 
 
 54 Hart. Walter. Hart's Precise System for Building and Loan Associations. 
 
 New York, Press of H. J. Ronalds 11880] 28 p. HG8188.H8 
 
 55 Hathaway, J. and Comp. Short Rate Table for Terms Less Then One 
 
 Year. Milwaukee, Wis., Burdick & Armitage, printers, 1880. (. p. 
 
 IIG1 G39.1 146 
 
 56 Hauptverband deutscher Gewcrblicher Gcnossenschaftcn, Berlin. Ge- 
 
 schaftsstatistik....Hr. i g. von dem Hauptverband 'l'- utsch, ' r „^' e "' 1 t ; r V 1 " 
 cher Genossenschaften Wittenberg, 1911. 1 vol. HD3497.H3 
 
 67 Hillhouse Virgil P. The Hillhouse [nterest Tables Constructed Especial- 
 
 ly for Building and Loan Associations and Applicable to All Monthly 
 Payment Contracts. Topcka, Kans., V. P. Hillhouse, 191 7. 63 ,>. 
 
 I iCj 1 O.JO. 1 10 
 
 68 Hourigan, John. Maturity Tables for Building and Loan Associations and 
 
 Other Purposes. Albany, Weed-Parsons Printing Company, printers, 
 1893. 2 p. 1 K. 10.>U. 11« 
 
 69 Huntington. Theodora T. Work of the Remedial Loan Societies, Wil- 
 
 ms. I New York | 1912. I1G2000.H8 
 
 I 183]
 
 APPENDIX. 
 
 60. Illinois. Auditor's office. Annual Report of the Auditor of Public Ac- 
 
 counts of Building, Loan and Homestead Associations. ... Springfield, 
 1894-1017, 25 v. 1IG2160.I3 
 
 61. Indiana. Building and Loan Association Department. Annual Report, 
 
 1809/08-1911. Indianapolis, 181)31913. 19 v. in 16. HG2I50I6 
 
 62 Indiana. Uws, Statutes, etc. I-aws of Indiana Relating to Rural Loan and 
 
 Savings Associations, 1913. W. H. O'Brien, Auditor of State 
 
 Gilbert H. Hendrcn, Chief Clerk, Stmte Building and Loan Department. 
 Indianapolis, VV. B. Burford, contractor for state printing and binding, 
 1913. 29 p. HG8051.U6I6 1918 
 
 63 Interest Table for Building Associations. [Philadelphia, P. Hausmann, 
 
 1877.] 3 p. HG1636.I6 
 
 64 International Congress of Building and Loan Associations. 2nd. San 
 
 Francisco, 1915. The Second Convention of the International Congress 
 of Building Societies (as known in Great Britain) ; Building and Loan 
 Associations, Co-operative Banks and Homestead Associations (as known 
 in the United States) : Housing Companies (as known in parts of Con- 
 tinental Europe) ; Starr-Bowkett Societies (as known in Australia and 
 New Zealand); and Kindred Associations Throughout the World held 
 at the. .. .Exposition Grounds, San Francisco, California, July 30th, 
 1915. Cincinnati-Chicago, American Building Association News Pub- 
 lishing Co.. 1915. 96 p. HG2121.16 1915 
 66 Iowa. Laws, Statutes, etc. Building and Loan Laws of the State of 
 Iowa, From the Code of Iowa and Acts Amendatory Thereto, Includ- 
 ing Acts of the 36th G. A. Comp. by Frank S. Shaw, Auditor of State. 
 Des Moines, R. Henderson, state printer, 1915. 23 p. 
 
 HG2133.I8A4 1915 
 
 66 Italy. Direzione Generale Delia Statistica. Sulle associazioni co-operative 
 
 in Italia. Saggio statistico. Relazione presentata dal direttore generale 
 della statistica alia Commissione consultiva sulle instituzioni di previ- 
 denza e del lavoro nolla seduta del 26 febraio 1890. Roma, Tip. E. 
 Bona, 1890. 90 p. HD3502.A7 1890 
 
 67 Jacobi, Dorothea. Die gemeinniitzige Bautiitigkeit in Deutschland, ihre 
 
 kulturelle Bedeutung und die Grenzen ihrer Wirksamkeit. Miinchen 
 und Leipzig, Duncker & Humblot, 1913. 152 p. (Staats- und sozial- 
 wissenschaftlichc Forschungeu. . . . Hft. 167) 
 
 -Literatur": p. 136-139. HB41.S. 
 
 68 Kansas. Banking Dept. Annual Report of the Bank Commissioner Show- 
 
 ing the Condition of Building and Loan Associations. lst-19th, 1899/ 
 1900-1917. Topeka, W. Y. Morgan, state printer, 1900-1905. 20 v. in 14. 
 
 HG2150.K2 
 
 69 Kansas. Laws, Statutes, etc Laws of Kansas Relating to Building and 
 
 Loan Associations, 1911, Being Chapter 78, Session Laws of 1899, with 
 Amendments and Additions Thereto. Also the Law Concerning the 
 Assessment and Taxation of Building and Loan Associations. Com- 
 piled and published by the State Banking Department. J. N. Dolley, 
 Commissioner. Topeka, State Printing Office, 1911. 23 p. 
 
 HC2123.K2A4 1911 
 
 70 Keys, C. M. How to Finance the Building of a Home. Philadelphia, 
 
 issued by the Ladies' Home Journal [1913] 19 p. TH148.K58 
 
 71 Kilgore, S[amuelJ F. Be Your Own Landlord. [Chicago, 1900.] 12 pp. 
 
 73 Kramer, Michel. Instruction — Educution — Civilisation — Progres; Examen 
 des Reformes a Introduire dans l'lnstruction du peuple. Paris, | Impr. 
 Cusset et Cie] 1870. 127 p. LA692.K89 
 
 73 Kromrey. Max. Baugenossenschaften und der Berliner Spar- und Bau- 
 
 verein.... Berlin, H. S. Hermann, 1903. 99 p. HG2166.G8K9 
 
 74 [Lawrence, Wilber E. ] Manual of the National Building and Loan Sys- 
 
 tem of Accounting. [Chicago, 1893] 60 p. HF6886.B8L4 
 
 75 Lanphear, Albert H. Tables for the Use of Building, Saving and Loan 
 
 Associations. Atchison [Kan.] Printed for the author, 1873. 8 p. 
 
 HG2129.LS 
 
 76 Lapham, Martin A. ed. Anotations. Building and Loan Association 
 
 Laws and Methods. Springfield, Mo., Jewell Pub. Co., printers, 189o. 
 ] 9 p HG2183.M8.L3 
 
 [48-1]
 
 BIBLIOGRAPHY. 
 
 77 Loper, Valencia F. Las Cajas de Ahorros Extranjeras en el Regimen 
 
 de Las Caras Baratas y de Prevision Popular. Madrid. Tip. de la Rev. 
 de Arch., Bibl. y Museos," 1913. 15 p. HG2123.L6 
 
 78 Louisiana Homestead League. Proceedings of Annual Meeting. 16th- 
 
 22nd New Orleans, La. 1907-1913. 7 v. in 1. HG2153.L8US 
 
 79 Lowe. C. J. The Building Society Movement. A Half-century Record 
 
 with Special Reference to the Bristol West of England and South 
 Wales Permanent Building Society. (Founded 1850.) Bristol, W. U 
 Hemmons, 1901. 138 p. 
 "Prospectus": p. I-XII. 
 
 80 McKay, James M. The Building and Loan Movement in the United 
 
 States. (In American Bankers' Association. Proceedings, 1910. New 
 York. 1910. pp. 539-545. HG1507.A5 
 
 81 Macpherson, Hector. Co-operative Credit Associations in the Province of 
 
 Quebec Kingston, 1910. 96 p. HC1665.C3SN2 
 
 82 Maine, Banking Dept. Semi-annual Statement Showing the Condition of 
 
 the Savings Banks, Trust and Banking Companies, and Loan and Build- 
 ing Associations. [Augusta, 1870-1917.] 450 in 36. HG2411.M22 
 
 83 Martin, Henry, of New York. Co-operative Savings and Building-loan 
 
 Associations. Their Legal Scope and Objects [New ^"rk] |188h| 
 
 ^2 n HG2133.rs 7M3 
 
 84 Maryland. Bureau of Industrial Statistics. Fourth Annual Report, 1896. 
 
 [1895] Baltimore: King Brothers, 1896. 
 "Building and Loan Associations," pp. 104-159. 
 
 85 Massachusetts. Laws, Statutes, etc. Statutes of the Commonwealth of 
 
 Massachusetts Relating to Co-operative Banks, Being Chapter 114 of 
 the Revised Laws. Issued from the Office of the Board of Commis- 
 sioners of Savings Banks. Cor. to June 30. 1904. Boston, Wright & 
 Potter Printing Co., state printers, 1904, 18 p. HG2133.M4A4 1904 
 
 86 Michigan. Bureau of Labor and Industrial Statistics. Eleventh Annual 
 
 Report, 1894. Lansing, Mich., Robert Smith & Co., 1894. 
 
 "Building and Loan Associations," pp. 453-465. HC107.M:.A2 
 
 87 Department of State. Report on Building and Loan Associations.... 
 '"1900/02-1901/02. Lansing, Mich., 1899-1917. 18 v. in 17. 
 
 HG2150M5 
 
 88 ... Laws, Statutes, etc. Laws Relating to Building and Loan Associa- 
 
 tions. Comp. under the Supervision of Frederick C. Martindalc, Secre- 
 tary of State, 1910. By Authority, Lansing, Wynkoop, Hallenbeck, 
 Crawford Co., state printers, 1910. 18 p. HG2133.M5A4 1910 
 
 89 Millar, Thomas J., Building Society Finance and Statistics. A Useful 
 
 Handbook for Officials and Members, Present and Prospective, of Build- 
 ing Societies. Edinburgh, T. T. Clark, 1905. 102 p. HG2126.M64 
 
 90 Missouri. Bureau of Building and Loan Supervision. Annual Report of 
 
 the Supervisor of Building and Loan Associations. ... 1895/6-1917/18. 
 Columbia, Mo., Press of E. W.. Stephens, 1896-1918. 21 v. 
 
 HG21 50. M8 
 
 91 .... Bureau of Labor Statistics. Fifteenth Annual Report. 1893. Jef- 
 
 ferson City, Mo., Tribune Printing Company, ls:i:<. 
 "Building and Loan Associations," pp. 109-274. 
 
 92 Mutual Benefit Building and Loan Associations: their History, Principles, 
 
 and Plan of Operation.... Charleston, Walker and James. 1852, 9fi p. 
 
 HG3126.M96 
 
 93 | National Federation of Remedial Ix>an Associations] Work of the Re- 
 
 medial Loan Societies, 1912-1913. | New York, The Clover Pressl 1913. 
 
 HG2006.N3 
 
 94 Nebra«ka Department of Banking. Annual Report ... . Showing the 
 
 Condition of the Building and Loan Association*. 1^99/ 1900-181 7/1 K 
 Lincoln. Neb., [1900-1908] 17 v. HG8150.N8 
 
 85 Laws Statutes, etc. Law Governing the Building and Loan Asso- 
 
 ciations of the state of Nebraska, Passed by the Twenty-sixth Session 
 of the Legislature. Taking Effect July 1, 1899. Lincoln Nehr., T. 
 
 North & ( .... printers, UN. 19 p. HCill8.N»Afl 1H09 
 
 [486]
 
 APPENDIX. 
 
 96 New Hampshire. Laws, Statutes, etc. Abstract of the Laws of New 
 
 Hampshire Relating to State Hanks, Savings Ban) , Trust Companies, 
 and Building ami Loan Associations. Kcv. by the Hoard of Bank Com- 
 missioners to November 1, 1899. Manchester, N. H., A. E. Clarke, 
 public printer, L899. 56 p. HG2420.N4A4 1899 
 
 97 New Jersey. Bureau of Statistics of Labor and Industries. Twentieth 
 
 Annual Report, 1897. Trenton, N. J. The John H. Murphy Publishing 
 Co., 1808, 
 
 "Part 4: Co-operative Building and Loan Associations of New Jersey," 
 pp. 121-510. 
 
 Similar reports have appeared in the Annual Reports for 1890, 1892- 
 1894, 1896. 
 
 98 .... Department of Banking and Insurance. Annual Report of the 
 
 Commissioner of Banking and Insurance Relative to Building and Loan 
 Association, 189S/99-1916/1917. Camden, N. J., 1900-1902. 10 v. in 15. 
 
 HG2150.N5 
 
 99 .... Laws, Statutes, etc. Laws of New Jersey Relating to Building and 
 
 Loan Associations, 1914. Act of 1903 with Amendments and Additional 
 Acts. State of New Jersey. Department of Banking and Insurance. 
 Trenton, N. J., MacCrellish & Quigley, state printers, 1914. 54 p. 
 
 HG2133.N5A4 1914 
 
 100 New Mexico. (Tex.) Laws, Statutes, etc. New Mexico Laws Relating to 
 
 Banks of Discount and Deposit, Savings Banks, Trust Companies and 
 Building and Loan Associations. 1910. Compilation prepared by 
 Charles V. Safford.... By authority. Pub. under direction of Nathan 
 Jaffa, Secretary of New Mexico.... Santa Fe, N. M. New Mexican 
 Printing Company, 1910. 82 p. HC242C.N6A3 1892 
 
 101 New South Wales. Registrar of Friendly Societies. Friendly Societies, 
 
 Trade Unions, Building Societies and Co-operative Societies (Report 
 of the Registrar ) ISydney, 1898-1911] 4 v. HD7250.A2N5 
 
 102 New York (City). Board of Estimate and Apportionment. Building 
 
 Zone Plan Board of Estimate and apportionment of the City of New 
 York. Report of Committee of the Whole, July 18, 1916. [New York, 
 M. B. Brown, Printing & Binding Co., 1916.] 32 p. TM25.N5A5 1916 
 
 103 .... (State) Banking Department. Annual Report of the Superintendent 
 
 of Banks Relative to Building and Loan and Co-operative Savings and 
 Loan Associations, 1890-1917. Albany, 1801-1917. 24 vols. 
 
 HG2150.N7 
 
 104 The News and Observer, Raleigh, N. C. Building and Loan Association 
 
 Section, the News and Observer. V. 88, No. 18; June 6, 1909. Raleigh, 
 N. C, 1909. 16 p. HG2153.N8N5 
 
 105 Nolen, John. A Good Home for Every Wage-earner; Address. .. .at the 
 
 Twenty-fifth Annual Meeting of the United States League of Local 
 Building and Loan Associations, Boston, Mass., July 24-26, 1917. 
 Cincinnati, O., American Building Association News Publishing Co., 
 1917. 12 p. HD7293.A3N65 
 
 106 North Carolina. Laws, Statutes, etc. Insurance Laws of the State of 
 
 North Carolina, 1911.... James R. Young, Insurance Commissioner. 
 Raleigh, E. M. Uzzell & Co., state printers, 1911. 105 p. 
 
 Including laws relating to insuranre and all laws governing and 
 regulating insurance companies and fraternal orders, and all bond and 
 investment companies and building and loan associations. 
 
 "....Amendments and Additions to Insurance Laws, Enacted by the 
 General Assembly, 1913" (49 |2] p.) inserted. 
 
 ....Amendments and Additions to Insurance Laws Enacted by the 
 General Assembly, 1918. James R. Young, Insurance Commissioner. 
 J Raleigh, N. C, Edwards & Broughton Printing Co., 19131 49 p. [With 
 Insurance Laws of the State of North Carolina, 1911, Raleigh, 1911.1 
 
 HG8521.N8 1911 
 
 107 Ohio. Bureau of Building and Loan Associations. Annual Report of the 
 
 Inspector of Building and Loan Associations. . . .1891-1917/18. Columbus, 
 1892-1918. 26 v. HG2150.O3 
 
 108 .... Laws, Statutes, etc. Laws of Ohio Relating to Building and Loan 
 
 Associations, 1908. Columbus, O., F. J. Heer, state printer, 1908. 
 29 p. HG2133.03A4 1908 
 
 [48GJ 
 
 fi
 
 BIBLIOGRAPHY. 
 
 100 Ontario. Laws, Statutes, etc. Provisions Relating to Terminating Shares 
 in Loan Corporations, to Take Effect on the 10th September. 1903. 
 Printed by order of the Legislative Assembly of Ontario. .. .Toronto, 
 L. K. Kameron 1903. 8 p. HG2135.C34A4 1903 
 
 110 .... Registrar of Loan Corporations. Ix»n Corporations Statements, 
 
 Being Financial Statements Made by Building Societies, Loan Com- 
 panies, Loaning Land Companies, and Trust Companies. 1897- 
 
 1917. Toronto, 1898-1918. 20 v. in 19. HG2156.C406 
 
 111 Oregon. Laws, Statutes, etc. Oregon Statutes Governing Building and 
 
 Loan and Savings and Loan Associations as Amended by Chapter 227 
 of the General Laws for 191 S, Enacted by Twenty-eigth Legislative 
 Assembly, Effective May 22. 1915, Pub. by the Corporation Department 
 of the State of Oregon. Comp. by R. A. Watson. Corporation Com- 
 missioner. [Salem, Or., State Printing Department. 1915] 15 p. 
 
 HG2138.07A5 1915 
 
 112 Paine. Robert T. Co-operative Banks. How Many Shares to Issue? How 
 
 Many Shares to Mature? Boston, Rand, Avery Company, printers, 1887. 
 12 p. HG2126.P14 
 
 113 .... Homes for the People. A Report. ... Road. .. .September 9, 1881. 
 
 Boston, Tolman & White, printers, 1882. 19 p. 
 
 Reprinted from the Journal of Social Science, No. XV. HG2120.P18 
 
 114 Paine, Willis S. ed. The Laws of the State of New York Relating to 
 
 Building Associations: Being the Statutes Governing the Corporations 
 Variously Known as Building, Mutual Loan, Accumulating Fund, Co- 
 operative Savings, and Homestead Associations, with Annotations Ap- 
 plicable to these Corporations Generally. New York, L. K. Strouse 
 & Co., 1889. 94 p. HG2133.N7P3 
 
 115 Pennsylvania. Banking Department. Annual Report. Harrisburg, 1893- 
 
 1918. 34 v. in 45. 
 
 Pt. II. Building and Loan Associations. HG2411.P4 
 
 118 .... Department of Internal Affairs. Part III Industrial Statistics, vol. 
 
 21, 1893. Clarence M. Busch, State printer of Pennsylvania, 1894. 
 "Statistics of Building and Loan Associations," 1A-515A 
 
 117 .... Laws, Statutes, etc. Acts of Assembly Relating to and Affecting 
 Building Associations in Pennsylvania; comp. by Martin H. Stutzbach 
 for the Building Association League of Pennsylvania. [Philadelphia.] 
 1902. 63 p. IIG2133.P4S8 
 
 U8 Laws 1907; 1909; 1911 of the Commonwealth of Pennsylvania, 
 
 Relating to Corporations Coming Under the Supervision of the Bank- 
 ing Department. Being a Supplement to the Digest Issued by the Com- 
 missioner of Banking in 1905. Harrisburg, C. E. Aughinbaugh, printer, 
 1011. 04 p. HG8428.P4A8 1911 
 
 119 Perpetual Building and Loan Association, Philadelphia. Story of Build- 
 
 ing and Loan Associations. Philadelphia, Perpetual Building and Loan 
 Association, 1814. 8 p. 1IG2152.P4 
 
 120 Peters, Edward T. Co-operative Credit Associations in Certain European 
 
 Countries and Their Relation to Agricultural Interests. ... Washington, 
 Govt. Print. Off. 1892. 117 p. (U. S. Dept. of Agriculture. Division 
 of Statistics. Report, misc. scr., 3.) HG2041.P6 
 
 121 Philadelphia Social Science Association. Papers on Building Associations 
 
 .... Reprinted from the Pcnn Monthly for July and August, 1876. 
 Philadelphia, Philadelphia Social Science Association I 1 S 70 ] 29 p. 
 (Philadelphia Social Science Association. Papers read before the Asso- 
 ciation; HG8168.P6 
 
 122 Pranard, Charles. K.tude Sur Les Building Associations Amcricaincs. . . . 
 
 Paris, A. Rousseau, 1907. 286 p. 
 
 "Ouv«ages a Consul ter"; p. 6-8. I1G2151.P7 
 
 128 Queensland. Registrar of Friendly Societies Report of tli.- Regi " •" 
 .,f Fnriidly Societies, Building Societies, and Tr.ide Unions. 1st Hill, Ktll 
 
 list, 2Mb 29th. Brisbane |1886J 1891, 1888-1806, 1811-1816. 25 
 
 v (J; 7 HD7860-A8Q8 
 
 124 Rrrdrr, David H. The Agents' Handbook. [Baltimore, Mil., Fleet, Mc- 
 (.inlry & Co., printers, 1806] 20 p. 
 
 "Srtting forth.... how to successfully conduct the business of a 
 building and loan aijcncy;" p. '*■ HG2120.R3 
 
 [4871
 
 i/; 
 
 APPENDIX. 
 
 1 2 "• Rhode Island. Laws, Statutes, etc. Laws of Rhode Island in Relation to 
 Banks, Institutions For Savings, and Cooperative Building Associations. 
 1898. Providence. R. I., K. L. Freeman A Sons, printers, 1899. 49 p. 
 
 HG2426.R4A3 
 
 126 Robinson, J|ames] W. Robinsonian Building-Loan Interest Tables. A 
 Complete Reference Book for the Use of Building-loan and Co-operative 
 Bank Accountants and Agents. Boston, Mass., J. W. Robinson, 1893. 
 89 p. Oth ed. 1904. 206 p. HG1630-R65 
 
 197 .... Robinsonian Equal Monthly Payments. ... Required to Pay a Loan 
 
 of $100.00 in Varying Periods from One Month to Twenty-five Years, 
 
 am) at Rates Varying from One Per Cent to 25 Per Cent per Annum. 
 
 For use of Building and Loan Associations, etc. Melrose Mass., J. W. 
 
 Robinson. 1892.] 10 p. HG1036.R665 
 
 128 .... Robinsonian Interest and Maturity Tables for the Use of Co-opera- 
 
 tive Banks and Building and Loan Associations. Boston, Mass., J. W. 
 Robinson, 1894. 80 p. HG1630.R68 
 
 129 .... Robinsonian Tabic of Rates Earned by a Loan, Also Showing the 
 
 Rates Actually Paid by a Borrower in a Building Loan Association. 
 Boston, Mass., J. W. Robinson, author and pub. [1894] 7 p. 
 
 HG1036.R69 
 
 130 . . ..Comp. Robinsonian Withdrawal Values, and Rates of Simple In- 
 
 terest Earned. Boston, Mass., J. W. Robinson, author and pub. [1894] 
 7 p. HG1636.R7 
 
 131 Rosenthal, Henry S. Building, Loan and Savings Associations, How to 
 
 Organize and Successfully Conduct Them. . . .3rd ed. Rev. and enl. 
 Cincinnati, Chicago, American Building Association News Co., 1911. 
 425 p. HG2126.R8 
 
 132 Russell Sage Foundation, New York. Library. Co-operative Credit.... 
 
 New York, The Russell Sage Foundation Library [1914] 7 p. (Bul- 
 letin No. 5 June, 1914.) Z881.N667 No. 5 
 
 133 Schulze-Delitzsch, Hermann and F. Schneider. Die Genossenschaften in 
 
 einzelnen Gewerbszweigen. Praktische Anweisung zu ihrer Griindung 
 und Einrichtung. Leipzig: Ernst Keil, 1878. 408 p. HD6394.S3 
 
 134 Scratchley, Arthur. Industrial Investment and Emigration, Being a Trea- 
 
 tise on Benefit Building Societies, and on the General Principles of As- 
 sociations for Land Investment and Colonization. .. .2nd ed. much enl. 
 London, J. W. Parker, 1851. 309 p. HG2126.S88 
 
 135 Sharp, Robert W. The Chattel Mortgage Loan Business, the Disease and 
 
 the Remedy. [Newark, N. J.] 1910. 161 p. HG2066.S5 
 
 136 Siegert, Rudolf. Die Wohnungsfiirsorge im Grossherzogthum Hessen 
 
 Giesen, A. Topelmann. 1907. 151 p. 
 
 '•Literaturverzeichnis;" p. 148-151. HD7339.A3S2 
 
 137 Smith, Titus K. Co-operation. How Every Man May Become the Owner 
 
 of His Home as Easy as He Can Pay His Rent. New York, Concord 
 Co-operative Printing Company, 1887. 31 p. HG2128.S5 
 
 138 Smith, W. Golin G. Building Societies' Accounts. Specially Adapted for 
 
 Permanent Societies and Societies Using Interest Tables. London, 
 Gee & Co., 1903. 104 p. C'The Accountants' Library;" vol. XXV.) 
 
 139 Stone, William. A Practical Treatise on Benefit Building Societies.... 
 
 also, the Principles and Practice of Tontine Building Companies, Free- 
 hold Land Societies, etc. and the Law Relating to Those Societies with 
 the Statutes and Cases to the Present Time; also Rules, Forms, etc. 
 London, W. Maxwell. 1851. 312 p. HG2126.S85 
 
 140 Strauss, Paul and Charles B.iulez. Habitations a Bon Marche; Commen,- 
 
 taire Juridique de la Loi du 12 Avril 1906 et Guide Pratique.... 
 Paris, E. Flammarion 11907] 380 p. HD7338.A3S8 
 
 141 Sundheim, Joseph H. The Law of Building and Loan Associations in 
 
 Pennsylvania. Philadelphia, Pa., Smith-Edwards Company [1913] 
 204 p. HG2133.P4S9 
 
 142 Tennessee. Treasurer's Office. Annual Report of the Condition^ of the 
 
 Building and Loan Associations Transacting Business in the State of 
 Tennessee. 1895-date. Nashville; Press of Brandon Printing Co. 1896- 
 1919. 14 v. in 12. HG2150.T2A2 
 
 [488]
 
 BIBLIOGRAPHY. 
 
 143 Thompson. Charles N. A Treatise on the Law of the Building and Loan 
 
 Associations, with Forms. 2nd ed. Chicago. Callaghan & Co., 1899. 
 832 p. 
 
 144 Thornton, William W. The Law Relating to Building and Loan Associa- 
 
 tions, with Forms and Suggestions. Albany, N. Y., M. Bender, 1898. 
 950 p. 
 
 145 Tompkins, D|aniel] A. A Plan to Raise Capital for Manufacturing; with 
 
 Appendix on Mechanical Education. 1st ed. Charlotte, N. C, 1900. 
 62 p. 
 
 146 Towndrow. ]Thomas] Suburban Homes, How to Obtain Them. Town- 
 
 drow's New and Comprehensive Plan of Association by Which Persons 
 of Limited Means Mav Acquire Desirable Suburban Homes. .. .New 
 York, T. Towndrow. [1S75] 55 p. HG2128.T6 
 
 147 Truesdale, George. A Permanent System of Incorporation, for Building, 
 
 Mutual Loan, and Accumulating Fund Associations. [Rochester. N. Y., 
 1882.] 11 p. HG2128.T8 
 
 148 U S Bureau of Labor. Building and Loan Associations. Washington, 
 
 Govt. Print Off., 1894. 719 p. (Annual Report of the Commissioner 
 of Labor, 9th, 1893.) 
 
 Issued also in the Congressional Series, No. 3227, as House ex. doc. 
 209, 53rd Cong., 2nd Sess. 
 
 "General Legislation Relating Especially to Building and Loan Asso- 
 ciations;" p. 493-713. HD8051.A3 
 
 149 Bulletin, No. 21, March, 1899. _ . 
 
 Second Annual Report on the Building and Loan Associations of Con- 
 necticut. ... Eighth Annual Report on the Building and Loan Associa- 
 tions of New York. .. .First Annual Report on the Building and Loan 
 Associations of Wisconsin. HD8051.A5 
 
 150 Bulletin. No. 43, Nov., 1902. 
 
 State Reports on Building and Loan Associations; New York. 
 
 HD8051.A5 
 
 151 Bulletin. No. 30, Sept., 1900. 
 
 State Reports on Building and Loan Associations. C alifornia, Connec- 
 ticut, Iowa, Michigan, New York. HD8051.A.) 
 
 152 Bulletin. No. 33, March, 1901. . 
 
 State Reports on Building and Loan Associations; California, New 
 v r or j c HD8051.A5 
 
 153 Bulletin. No. 55. Nov., 1904. . ' 
 
 Building and Loan Associations in the United States, by t.. W. \% . 
 Hanger. HD8051.A5 
 
 154 Index of All Reports Issued by Bureaus of Labor Statistics in 
 the United States, prior to March 1, 1902. Prepared under the Direc- 
 tion of Carroll D. Wright. Washington, Gov. Print. Off., 1902, 237 pp. 
 
 Contains references of building and loan associations contained in 
 the various state reports. 
 
 155 United States League of Local Building and Loan Associations. Proceed- 
 
 ings of the Annual Meeting 1893-1915. 22 v. in 6. HG2151.A2 
 
 156 Vermont. Banking Department. Annual Report. Rutland, 1907-1916 
 
 jO v IIC2111.V4 
 
 157 Laws, Statutes, etc. General Laws of the State of Vermont Relating to 
 
 Saving* Institutions, and Other Corporations under the Supervision of 
 the ISank Commissioner. ('(imp. by the Secretary of State. 1911. 
 Essex Junction, Vt. Roscoe Printing House [1911] 70 p. 
 
 11(11902. V5A4 1911a 
 
 158 Vossberg, Walter. Die deutsche Baugcnossenschafts ^.T^^nnWa 
 
 Halle a. S.. 190.-.. 1905. 241 p. IK.2156.G3V8 
 
 159 Walker Lithographing and Printing Co.. Dayton, O., pub. Constitution and 
 
 I'., lawi for a Dayton Plan Hiiil-ling and Loan Association. .... Dayton, 
 
 O , The Walker Litho. and Printing Co. [1895] lfi p, HG»l»8.Wa 
 
 160 Warr, J. W Comp. Warrs Interest Tables, Especially Adapted to the 
 
 Use of Building, Savings and Loan Associations. Molinc. 111.. 1 low 
 man Publishing Company, printers and binders, 1891. H p. 
 
 [4891
 
 APPENDIX. 
 
 161 Willoughby. William F. Building and Loan Associations. [Boston, 
 
 Wright & Potter Printing Company, 1000 1 84 p, [Monographs on 
 American Social Economics. Editor: II. B. Adams. .. .Associate Editor: 
 Ricliard Waterman, jr. XX.] 
 
 ••Bibliographic Note:" p. 33-34. H31.M7 No. 11 
 
 162 Wiltzius, Eugene. Illustrations and Demonstrations of the Discovery of 
 
 the E. W. Check Methods, Check Figures and Check Figure Groups.... 
 Presenting an Absolute Proof for the Correctness of the Shares, State- 
 ments of Mutual Loan, Building and Savings Associations. [La Crosse, 
 Wis.. The Inland Printing Company, 1915] 52 p. HF5686.B8W52 
 
 163 Wisconsin. Bank Examiner's Office. Annual Report of the Bank Ex- 
 
 aminer of the Condition of the Loan and Building Associations of 
 Wisconsin. Madison. Wis., 1898-1917. 19 vols. HG2150.W6 
 
 164 .... Bureau of Labor, Census and Industrial Statistics. Seventh Biennial 
 
 Report, 1895-1806. Madison, Wisconsin: Democrat Printing Co., 1895. 
 Pt. 7. Building and Loan Associations: pp. 50G-539. IIC107.W6A2 
 
 165 Wisconsin. Laws, Statutes, etc. Laws of Wisconsin Relating to Build- 
 
 ing and Loan Associations, Chapter 732, Laws of 1912.... as Amended 
 in 1916 and 1917. Appendix Containing Laws for the Regulation of 
 Investment Companies. Chapter 219; Laws of 1905.... Comp. Aug. 1, 
 1917. .. .State Banking Department. Madison, Wis.. Democrat Print- 
 ing Company, state printer, 1917. 23 p. HG21S3.W6A4 1917 
 
 166 Wolff, Henry W. Co-operative Banking, Its Principles and Practice, 
 
 with a Chapter on Co-operative Mortgage-Credit. London, P. S. King 
 and Son, 1907. 301 p. HG2126.W85 
 
 167 .... A Co-operative Credit Bank Handbook. London, P. S. King and Son, 
 
 1909. 74 p. HG3729.G8W6 
 
 168 .... People's Banks; a Record of Social and Economic Success. 3rd ed. 
 
 newly rev. and enl. London, P. S. King & Co. 1910. 587 p. 
 
 HG2041.W8 
 
 169 Wood, Clark J. The Road to Prosperity, via the Artisans', the State 
 
 Mutual, the Artisans' No. 2, the No. 2 Republic, the No. 2 Trades- 
 men's, the Republic, the Assistance, the No. 3 Tradesmen's and the 
 No. 2, Assistance Building and Loan Associations of Philadelphia. 
 Philadelphia, Dunlap & Clark, prs. [1888] 20 p. IIG2626.P5A7 
 
 170 Workingmen's Assembly. Washington, Co-operative Building Associations. 
 
 Words of Caution to Our Fellow Workingmen. [Washington, 1867] 
 7 p . HG2162.W6 
 
 171 The World Almanac and Encyclopedia 1919. The Press Publishing Com- 
 
 pany, New York, 1918. AY67.N5W7 
 
 Building and Loan Associations, p. 417. 
 
 172 Wrigley, Edmund. How to Manage Building Associations. A Director's 
 
 Guide and Secretary's Assistant. 3rd ed. rev. and enl. Philadelphia, 
 J. K. Simon, 18S0. 233 p. HF2126.W94 
 
 173 The Workingman's Way to Wealth; a Practical Treatise on Build- 
 ing Associations: What They Are and How to Use Them. 5th ed. 
 Philadelphia, J. K. Simon, 1872. 108 p. HG2126.W93 
 
 174 Wurtzburg, Edward A. The Law Relating to Building Societies: with 
 
 Appendices Containing the Statutes, Regulations, Act of Sederunt, 
 Forms of Annual Account and Statement, and Precedents of Rules and 
 Assurances. 4th ed. London, Stevens and Sons, 1902. 513 p. 
 
 175 Young, James R. Building and Loan Associations: How to Help the 
 
 Community and How Supervision Helps Them. Address before 
 the Annual Meeting of the North Carolina Building and Loan League. 
 New Bern, N. C, June 20, 1911. [Raleigh, E. M. Uzzell & Co., state 
 printers and binders, 1911] 11 p. HG2152.Y6 
 
 176 Young, M. H. V. Young's Plan and System of Organizing and Operating 
 
 Building-loan and Savings Associations. [Racine, Wis., 18931 17 
 numb. 1. HG2128.Y7 
 
 177 Zentralstelle fur Arbeiter - Wohlfahrtseinrichtungen. Die Beschaffung 
 
 hypothekarischer Darlehen fur Baugenossenschaftcn. Berlin, C. Hey- 
 mann, 1908. 164 p. (Schriften der Centralstelle fur Arbeiter - Wohl- 
 fahrtseinrichtungen. No. 38.) HD7707.Z4 No. 88 
 
 [490]
 
 BIBLIOGRAPHY. 
 
 Articles in Periodicals. 
 
 178 1888 Jenks, J. W. Report on Savings Banks and Building Associations. 
 
 Journal of Social Science (New York), Dec. 18S8. No. 25, p. 
 125-134. H1.J7, No. 25 
 
 179 Sanborn, F. B. Co-operative Building Associations. A Report from 
 
 the Special Committee on Provident Institutions, Read at Sara- 
 toga, Sept. 7, 1888. Journal of Social Science (N. Y.), Dec. 
 1888, No. 25, p. 112-124. H1.J7, No 25 
 
 179 1889 Dexter, Seymour. Co-operative Savings and Loan Associations. 
 
 Quarterly Journal of Economics, April 1889, v. 3: 315-335. 
 
 HB1.Q3.V.3 
 
 180 Linn, VV. A. Building and I-oan Associations. Scribner's Magazine, 
 
 June, 1889, v. 5: 700-712. AP2.S4, v. 5 
 
 181 1892 Dexter, Seymour. Building and Loan Associations as Related to 
 
 the Future Political and Social Welfare of the United States. 
 
 American Journal of Politics, Dec. 1892, v. 1: 622-627. 
 
 H1.A5, v. 1 
 Ludlow, John M. Building Societies. Economic Review, Jan. 
 
 1893. v. 3: 64-86. HB1.E4, v. 3 
 
 Building Society Mischiefs. Spectator, Jan. 21, 1893, v. 70: 72-73. 
 
 AP4.S7,v-70 
 Building and Loan Associations. Lend a Hand, June 1895, v. 14: 
 
 160-455. HVl.L6,vl4 
 
 Building Associations and Savings Banks. Gunton's Magazine, Apr. 
 
 1896, v. 10: 241-251. II1.G9. v. 10 
 
 Corbin, William. Building and Loan Associations, What They Are 
 
 Doing in California. Overland Monthly, June, 1897, ser. 2, 
 
 v. 29: 671-674. AP2.09, v. 29 
 
 Local Building and Loan Associations. Charities Review, Nov. 
 
 1900, v. 10: 387-388. HV1.C5, v. 10 
 
 Sanborn, Franz B. Home Building for Workingmen. Building 
 and Loan Herald, Aug. 1901, v. 13: 240-248. 
 
 HG2121.B8, v. 13 
 
 189 1903 Tompkin, D. A. Working People's Homes. What is Being Accom- 
 plished by American Building and Loan Associations. Cassier's 
 Magazine, Mar. 1903, v. 23: 600-614. TA1.C34, v. 23 
 
 190 1904 .... Building and Loan Associations. The Means for Co-operative 
 
 Savings by Southern Working People. Manufacturer's Record, 
 Aug. 25, Sept., 29, 1904, v. 46: 124-126, 150-152. 176-178, 203- 
 204, 227-228, 255-256. FS1.M3, v. 46 
 
 191 1907 Nicholson, A. T. How to Build a Home Without Capital. Country 
 
 Life in America, Supplement, Jan. 1907, v. 11: 52. 
 
 S1.085, v. 11 Suppl. 
 
 192 1908 Effect of Mortgage Receipts Under English Building Society Law. 
 
 Solicitor's Journal, June 6, 1908. v. 52: 546-517. 
 
 193 State Aid for Belgian Workingmen's Home. Harper's Weeklv. 
 
 Aug. L5, 1908, v. 52: 31. AP2.H32, v. 52 
 
 194 1909 Nettleford, John S. Harborne Tenants: an Example of English 
 
 Co-operative Estate Development. Survey, Apr. 3, 1909, v. 28: 
 .1 59. HV1.C4, v. 22 
 
 American Review of Reviews, June, 1909, v. 30; 734-735. 
 
 AP2,R4,v.39 
 
 195 Building Societies as Mortgages "In Possession." Law Times, May 
 
 22, 1909, v. 127: 75-7<i. 
 
 191 1909 Children, Savings, and Homes. American Review of Re\ 
 
 Nov. 1909. v. 40: 630. AP2.RI. V. 40 
 
 197 1910 Imposition of Fines on Members of Building and Loan Associa- 
 
 tions for Failure to Make Prompt Payments. Central Law Jour- 
 nal. Oct. 14, 1910, v. 71 : 256. 
 
 198 1911 Neighborhood Lenders. American Review of Reviews, Feb 1011, 
 
 v. 43: 147-148. APS.R4, v. 43 
 
 [491] 
 
 182 
 
 1893 
 
 183 
 
 
 184 
 
 1895 
 
 185 
 
 1896 
 
 186 
 
 1897 
 
 187 
 
 1900 
 
 188 
 
 1901 
 
 B
 
 APPENDIX. 
 
 199 Frankel, L. K. Insurance and Home Building. Survey, June 3, 
 
 1911, v. 26: 350-359. HV1.C4, v. 20 
 
 200 Nettleford, John S. Town Planning and Co-Partnership Housing. 
 
 Survey, June 3, 1911, v. 26: 370 373. HV1.C4, v. 20 
 
 201 1912 Bailey, F. Waste in Borrowing on Real Estate. American Reviews 
 
 of Reviews, Jan. 1912, v. 45: 88-89. AP2.R4, v. 45 
 
 202 The Position of Building Societies. I-aw Journal, Jan. 20, 1912, 
 
 v. 47: 31-32. 
 
 203 1913 Bentinck, H. Co-partnership in Land and Housing. Contemporary 
 
 Review, May. 1912, v. 103: 620-625. AP4.C7, v. 103 
 
 204 Small Investors' Money for Home Building. World's Work, May. 
 
 1913, v. 25: 31-33. AP2.W8, v. 20 
 
 205 Relation of Building and Loan Associations to the Housing Prob- 
 
 lem. American City. Sept., 1913, v. 0: 250-261. 
 
 HT101.A5, v. 9 
 
 206 1914 The Birkbeck Bank Liquidation. Solicitor's Journal, Feb. 21, 
 
 1914. v. 53: 298-299. 
 
 207 National Building-loan Bank for Italy. American Review of Re- 
 
 views. July, 1914, v. 50: 92-93. AP2.R4 v. 50 
 
 208 Kellogg, E. L. To Increase Efficiency in Home Building. Survey, 
 
 Oct. 17, 1914, v. 33: 66-07. HV1.C4, v. 33 
 
 209 Mistaken Payments. Law Journal, Nov. 28, 1914, v. 49: 648-049. 
 
 210 1915 Ham, Arthur H. Credit Unions and Their Relation to Savings 
 
 and Loan Associations. Economic World, Aug. 21, 1916, v. 96: 
 235-238. HG8011.M3, v. 96 
 
 211 1916 Building Societies and Mortgage Interest. Law Times, Jan. 29, 
 
 1916, v. 140: 276. 
 
 212 Marfarlane, Peter C. Home Builders of the Cascades. Collier's 
 
 Weekly, Apr. 1. 1916, v. 57: 22-23. AP2.C65. v. 67 
 
 213 Hedrick, W. O. Building and Loan Associations the Solution of 
 
 the Rural Credit Problem. Scientific Monthly, May, 1916, v. 
 2: 453459. Q1.S817, v. 2 
 
 218 a 1917 Resources and Operations of Building and Loan Associations in 
 the United States. Economic World, Aug. 4, 1917, n. 8. v. 14: 
 159. HG8011.M3, v. 14 
 
 214 1918 Thcis, H. T. If You Are Thinking of Building a House. Amer- 
 
 ican Magazine, Aug., 1918, v. 86: 106-108. AP2.A340, v. 86 
 
 215 Unmistakable Evidence of Thrift. Literary Digest, v. 58, Sept. 7, 
 
 1918; 84. AP2.L58, v. 68 
 
 216 1919 Moorehead, J. R. Financing of Home Building. American Lum- 
 
 berman, Apr. 19, 1919. No. 2292: 48-49. TS800.A6 No. 2292 
 
 [492]
 
 GENERAL INDEX. 
 
 For Reference to Figures, Forms, Tables, See Aleo Special Index. 
 
 PAGE 
 
 Accident Insurance 157 
 
 Accounts, False 264ff 
 
 "Act of March 3, 1917" 80 
 
 Advertising 128, 424-434 
 
 Technical data on printing.. 430-434 
 
 Agents and Contracts 216ff 
 
 Alabama 71 
 
 American Building Association 
 
 News 22-26, 50, 76, 202 
 
 American Deposit and Building 
 
 Association 33 
 
 Amortization Loan 42, 123 
 
 Application for Loans 176ff 
 
 Appraisement 17*, 180ff 
 
 Appraisers, Expert 188 
 
 Assets and Liabilities 277ff 
 
 Assets, Quick 277ff 
 
 Assignment of Stocks 175ff 
 
 Assistant Secretary 197 
 
 Atlantic City, N. J 51 
 
 Atlantic Coast 6 
 
 Attorney 126, 128 
 
 Appointment of 201ff 
 
 Compensation of 201ff 
 
 Duties of 201ff 
 
 Report *03 
 
 Auditing — 
 
 Methods 251,260 281 
 
 Necessity and object of. ...242 250 
 
 Purposes of 240ff 
 
 Qualifications for 254 
 
 Auditing Committee 164, 253 
 
 Auditor 262ff. 257, 268 
 
 Certificate of 279 
 
 Compensation 269 
 
 Report of 278, 279 
 
 Australia 80, 31 
 
 Austria 5, 31, 71 
 
 Balance Sheet 261ff 
 
 Baltimore, Md .18, 86 
 
 PAGE 
 
 Banks 48,76 
 
 Co-operation with 140 
 
 Federal Reserve 44 
 
 Beardsley, Elias J 416 
 
 Bellefontaine B. & L. Ass'n vs. 
 
 McMaken 78 
 
 Bankbooks 128 
 
 Blanks, Specimen 891ff, 405-416 
 
 Board of Trade 130, 140 
 
 Bohemian League of Chicago 62 
 
 Bonds 73, 74, 86, 227 
 
 City 174,227 
 
 Officers 206,395 
 
 Surety 207 
 
 Book Account 406 
 
 Book, Cash 236 
 
 Book Vah»e 153 
 
 Books and Blanks 406-416 
 
 Books, Care of 860ff 
 
 Books, Necessary 412fT 
 
 Borrowing Members — 
 
 164, 160ff, 173, 176 
 
 Duties of 170ff 
 
 Rights of 16»ff 
 
 Borrowing Money 220ff 
 
 Boston, Maw- 34, 35 
 
 Bradford, Weavers of 4 
 
 British Guiana 31 
 
 Brooklyn, N. Y 32 
 
 And Georgia Case 32, 38 
 
 Brown, Mitktwl J 372 
 
 Building Associations — 
 
 7. 9 28, 64, 6* 
 Advantages of — 
 
 16, 10 18, 36 38, 62 
 
 Aim and purpose of 10 
 
 As clearing house 76 
 
 Definition of 10 
 
 Essential features of 11.95 
 
 Fundamental interest of 308ff 
 
 flow to orgaiwe 125 148 
 
 14901
 
 GENERAL INDEX. 
 
 TACK 
 1-.1W of 83 
 
 Leagues 4758 
 
 Management of f>4 
 
 Membership increasing 46 
 
 Methods of operation 89, 40 
 
 Name and title of • , 10, 14 
 
 Origin of 11, 12, 39. 09 
 
 Powers and liabilities 214-220 
 
 Publicity of 46 
 
 Results of 36-46 
 
 Safety of 155, 156 
 
 Supplies 4l2ff 
 
 Burke, Addttcn B 83 
 
 Building Tradesmen as members. .129 
 
 Burns, Robert, on Saving 15 
 
 By-I-aws — 
 
 135, 136, 151, 173, 220. 453-479 
 
 Calendar, Perpetual — 
 
 301, 302-304, 316 321 
 
 California 6, 51, 121 
 
 Canton, Ohio 50 
 
 Capital Stock. 131-183, 145ff 
 
 Capita! Stock Institutions 87 
 
 Cash Balance, Proving 26Cff 
 
 Cashbooks .236, 273 
 
 Caster, Jesse V H 
 
 "Central Building and Loan 
 
 ' Ass'n vs. Bowland" 78 
 
 Certificate of Deposits . 151 
 
 Certificate of Paid-up Stock.. 147, 149 
 
 Certificate of Record 228, 229 
 
 Chamber of Commerce 130, 140 
 
 Charleston, S. C 34 
 
 Charter Fees 81, 131 
 
 Charters 92,219 
 
 Chicago, Illinois 35,48,52,69 
 
 Cincinnati, Ohio 34,35,203 
 
 Citrus Growers .' . . . 6 
 
 City Leagues 51 
 
 "City of Homes" 85 
 
 Clark, H. M 416 
 
 Coal Dealers, As Members 129 
 
 Collateral 174ff 
 
 Note 401 
 
 Columbus, Ohio 51 
 
 Community, Character of, for 
 
 B. & L. Ass'n* 6 
 
 Cqmpound Interest Tables. . .291-321 
 Congress 23,24,77,78,79,80 
 
 Recognition of B. & L. Ass'n 
 by 25,76 
 
 PAGE 
 
 Congress of Building Societies 
 
 in England 47 
 
 Connecticut 71 
 
 Constitution of B. & L. Ass'n — 
 
 133 134, 151, 164, 175, 192, 194, 
 220, 485-479 
 
 Contingent Fund 225 
 
 Contracts and Agents 215ff 
 
 Co-operation 1-8 
 
 Co-operative Bank 
 
 Co-operative Business Concern... 3 
 
 Conditions of 5,6 
 
 Examples of 6,7 
 
 Origin of ..3,4,6 
 
 Co-operative Insurance Com- 
 panies 6 
 
 Co-operative Savings and Loan 
 
 Ass'ns 14 
 
 Copartnership 3 
 
 Corcoran Act 66 
 
 Corning, N. Y 417ff 
 
 Corporate Meetings 188-190ff 
 
 Corporate Seal, The . 215 
 
 Corporation Stock 144 
 
 Corporations 76, 248 
 
 Corporators 163 
 
 Costs 176 
 
 County Leagues 51,52 
 
 Credit 42 
 
 Cuyahoga League of Cleveland, 
 Ohio 52 
 
 Dairymen 6 
 
 Davis, Henry F. A 63 
 
 Dayton, Ohio 34 
 
 Dayton Plan, The 84 
 
 Decatur Building Association, The 33 
 
 Delaware 71 
 
 Delinquents 98, 09, 161, 162ff, 176 
 
 Denmark 5 
 
 Depositor, The '. 38 
 
 Deposits 38, 43, 62, 85, 108, 151 
 
 Envelope 411 
 
 Certificates 151 
 
 Slips 234, 409ff 
 
 Special .120, 121 
 
 Dexter's Rule 378ff 
 
 Directors — - 
 
 88, 84, 137, 151, 168, 163, 167, 
 173, 178, 209 
 
 Duties of 199ff 
 
 Disability Insurance 157 
 
 [494]
 
 GENERAL INDEX. 
 
 PAGE 
 
 Disbanded Associations 166, 218 
 
 Disbursements 237 
 
 Dividends — 
 
 17, 18,40, 95, 147, 149, 165fT 
 Calculation of on permanent 
 
 plan 322-370 
 
 Declaring 314ff 
 
 Payment of 232, 233, 238, 275 
 
 Dues.. 82, 87, 146, 147,176,234,405 
 
 Earl of Selkirk 30, 32 
 
 Earnings, Distribution of — 
 
 On permanent plan 322-370 
 
 On serial plan 371-391 
 
 Economic Factor, B. & L. Ass'n 
 
 as 35 
 
 Election of Officers 192194ft 
 
 Elmira, N. Y 416 
 
 Emergency Revenue Law, The... 79 
 
 Endlich, Judge 33 
 
 Endowment Stock 158 
 
 England i 
 
 Appraisers in 179 
 
 Congress of Building Societies 
 
 in 47 
 
 Greenwich 29, (31 
 
 Legislation in 61,02 
 
 R< presentatives from at Con- 
 gress of I-eagues 51 
 
 Societies in 29, 30 
 
 English Colonies 5 
 
 English Law 61,62 
 
 Criticised 62, 63 
 
 Envelopes for Depositors 411 
 
 Envelopes for Payments 233 
 
 E>aminatons, State 242ff 
 
 Executor 169, 170 
 
 Exemption 68, 69 74 
 
 Expert 128 
 
 Families 41, 42 
 
 Farm Loans 122 
 
 Farmers 6 
 
 Federal Excise Tax Law of 1909. 78 
 Federal Reserve Banking Sys- 
 tem 44, 45, 22* 
 
 Fees 117, 118 
 
 Charter 81, 131 
 
 Transfer 146 
 
 Fines 29, 98, 99, 101 ff, 170 
 
 Fire Insurance 230, 231 
 
 Florida 6 
 
 PAGE 
 
 Forfeitures 161ff, 176, 176, 332 
 
 Forms 128, 149, 174 
 
 Legal 392-404 
 
 (See Special Index.) 
 France 5,30,31,71 
 
 Representatives from at Con- 
 gress of Leagues 51 
 
 Frankford, Pa 11 
 
 Decatur Building Ass'n of.... 33 
 
 First Building Ass'n in U. S. 
 at 31-33 
 
 Oxford Provident Building 
 
 Ass'n of 11, 12, 13, 32, 33 
 
 Fruit Growers 6 
 
 Furniture Dealers as Members.. .129 
 
 General Meetings 188ff 
 
 Georgia 84 
 
 Germany 5, 31, 71 
 
 Grand Rapids, Michigan 50 
 
 Great Britain 30, 47, 71 
 
 Great War, The 228 
 
 Greef vs. Equitable Life Insur- 
 ance Co 11* 
 
 Greenwich, England 29 
 
 Greenwich Union Building Society 61 
 Guarantee Stock 121, 122 
 
 Halifax, England 60 
 
 Hahfax, Permanent Building So- 
 ciety 50 
 
 Hamilton County League of Ohio 62 
 
 Haymaker, K. V 102 
 
 Hill, Enoch 50 
 
 Headquarters 138, 139 
 
 Health Insurance 157 
 
 Hoboken, N. J 34 
 
 Holmes, Clay W 416 
 
 Homebuilder i 42 
 
 Homebuilding— 13, 19, 31, 3fi, 42. 
 
 44, 96, 96, 07, 126, 164 
 Home Ownership. .35, 42, 46, 64, 167 
 Homes, Number Built Yearly.... 44 
 
 Hemes, Rented 41, 42 
 
 Homestead Associations 9 
 
 Horraks, Jeremiah 11 
 
 Housing Problem 41 
 
 ltow to Organize.. .125-143 
 
 I Ilium- 
 
 Income 
 
 67 
 37 
 
 I WU I
 
 GENERAL INDEX. 
 
 PMJK 
 
 Incorporation U4, 130, 137 
 
 Article* of 130. 144 
 
 Form of in Ohio 89SfT 
 
 I .egislation . . 63, 64 
 
 Industry 8, 3, 128 
 
 Industrial CUn 36 
 
 Industrial System 2 
 
 Inheritance Tax Laws 168ff 
 
 Insolvency 219 
 
 Installments— 82, 83. 84. 02. 98. 116. 
 119. 131 
 
 Insurance IT, 157-160 
 
 As collateral 230PF 
 
 Mortgage Clause • .399ff 
 
 Insurance Companies, Co-opera- 
 tive 6 
 
 Interest..l7, 20, 39, 40, 42. 61. 94, 176 
 Calculation of on permanent 
 
 plan 322-370 
 
 Compound Tables 291-321 
 
 Simple S88ff 
 
 International Congress of Co-op- 
 erative Home Societies 50 
 
 International League 49, 50 
 
 Ireland 30 
 
 Representatives from at Con- 
 gress of Leagues 51 
 
 Ireland, Loan Fund of 6*2 
 
 Italy 5 
 
 Investments 38, 41. 46, 146, 168 
 
 Investor . IW 
 
 Kansas 121,122 
 
 Keck, Dr. Peter A 84 
 
 Kentucky 80 
 
 Kircudbright, Scotland 30 
 
 Knox, C. C 180 
 
 Koerncr, Guttov 33 
 
 Labor and Capital 2,3 
 
 Labor Unions as Members 129 
 
 Law of Building Ass'ns, The... 33 
 
 League Meetings ;. 58 
 
 League Officers 57, 58 
 
 Leagues, Building Ass'n 47, 58 
 
 Associations 48 
 
 County, city and local 51, 52 
 
 International 49-51 
 
 Membership in 55-58 
 
 Organization of 49 
 
 Origin of 48 
 
 U. S. League of Local and 
 
 Loan Ass'ns 48 
 
 Wnat a League can do 52-55 
 
 PACE 
 
 Leaseholds 281 
 
 Ledger Cards 236ff 
 
 Ledger, General 276ff 
 
 Ledger, Membei: 278ff 
 
 Legal Notices 217 
 
 Legal Proceedings 166 
 
 Legislation 62, 55, 57 
 
 Legislators 57, 58 
 
 Legislature 58,54 
 
 And incorporation 136 
 
 And Taxation 59-81 
 
 Lending Societies 13,20 
 
 Liabilities and Assets 277,278 
 
 Liabilities of Building Ass'ns. . .214 ff 
 
 Liberty Bonds 40 
 
 Lien 150 
 
 Mechanics 180ff, 402 
 
 Life Insurance 158 
 
 Liquidation of Debt 176 
 
 Litigation 17, 67, 68 
 
 Loans— 20, 21, 36, 39, 43, 45, 61, 85, 
 94, 154, 165, 166, 176ff. 
 Advantages of building ass'n... 224 
 
 Amortization 42, 123 
 
 Application for 176ff 
 
 Cost of.... 222 
 
 Long time 43 
 
 Nature of 173 
 
 Repayment of 223ff 
 
 (See Special Index) 
 
 Local Leagues 51, 52 
 
 London, England 50, 51 
 
 Lntnkin, Judge 33 
 
 Lumber Dealers as Members.. . .128 
 
 McF.wan, of New York Evening 
 
 Post 416 
 
 Management of Associations.... 54 
 
 Manager 199 
 
 Manufacturer 36 
 
 Massachusetts 34, 71 
 
 Matured Shares — 
 
 88, 89, 90, 105, 153, 219 
 
 Maturity 17, 32, 89, 99, 100,101 
 
 Mechanics' Liens 183 
 
 Laws of 184 
 
 Meeting, First The 129,130 
 
 Regular 142, 164 
 
 Membership Cards 142 
 
 Membership— 
 
 126, 152, 160, 161, 188,248 
 
 Recruiting 139 
 
 [496]
 
 GENERAL INDEX. 
 
 PAGE 
 
 Members. Duties and Rights.. 100-171 
 
 Corporate rights 104ff 
 
 Duties of 161 
 
 Investor's rights 165 
 
 Kinds — savers and borrowers. .160ff 
 
 Merchant 36 
 
 Metropolitan League of New 
 
 York 52 
 
 Michigan 50, 81 
 
 Milwaukee, Wis 5.0, 51 
 
 Money W< 
 
 Mortgage Loan.. 20, 21, 42, 43. 44, 45 
 
 Straight 184 
 
 Mortgages— 17, 18, 20, 21, 62, 73, 74, 
 149, 172, 173, 174 
 
 Collateral note 401 
 
 Custody of 228,229 
 
 Forms of, in Ohio 396ff 
 
 Insurance policy forms 399ff 
 
 Recording of 228 
 
 Mortgagors 232 
 
 Rights of 163ff 
 
 Rights of borrowing 169ff 
 
 Mutual, Co-operative Institu- 
 tions 37, 64 
 
 Mutual Home and Savings Ass'n 
 
 of Daytcn, Ohio 34 
 
 Mutual Loan Association 9 
 
 Meetings, General 189ff 
 
 Mutuality 13, 37 
 
 Name, Choice of 130, 131 
 
 National Building and Loan 
 Ass'n 118 
 
 New Hampshire 71 
 
 New Jersey 84, 51, 78, 243 
 
 Legislation 78 
 
 Newark, N. J 34,85 
 
 New York- 
 Taxation in 71 
 
 New York City 34 
 
 New York Evening Post 416 
 
 New York, Metropolitan League 
 
 of 52 
 
 Newspapers as Means of Recruit- 
 ing 140 
 
 New Zealand 31 
 
 Norway — 
 
 Representatives from at Con- 
 gress of Leagues 51 
 
 Notices, Legal 217 
 
 PACE 
 
 O'Brien, Thomas W 31-33 
 
 Ohio — 
 
 34, 66, 67, 78, 117, 124, 164, 226 
 
 Bonds of Officers 395 
 
 Building Association League, 
 
 48, 50, 180 
 
 Canton 50 
 
 Charter fees in 131 
 
 Cincinnati 34, 52 
 
 Cleveland 52 
 
 Constitution and By-Laws. .435-479 
 
 Corcoran Act 66 
 
 Form of incorporation 392ff 
 
 Hamilton County League of... 52 
 
 Legislation 78 
 
 Mortgage forms 396, 397 
 
 Ohio convention and legisla- 
 tion 66 
 
 Permanent plan in 91, 92 
 
 Plan, The 34 
 
 Russell Act «7 
 
 Teledo 48 
 
 Waiver of Mechanics' Lien.. . .402 
 
 Youngstown 66 
 
 Ohio Building Association League, 
 
 48. 50 
 
 Ohio Plan, The 34 
 
 Officers 128, 165. 192, 194 
 
 Bonds of 206 
 
 Bonds of, in Ohio 396 
 
 Election and powers of.. .192-194ff 
 
 Permanent 137,138 
 
 Remuneration of 208ff 
 
 Reports of 188,189 
 
 Responsibility of 207 ff 
 
 Temporary 128 
 
 Oregon 6 
 
 Organization, Preliminary. . .128, 130 
 Oxford Provident Building As- 
 sociation 11,32 
 
 Page, Howard Wurtz 38 
 
 Paid up Stock Ledger 288 
 
 Panama Exposition 61 
 
 Paris, France 50 
 
 Partnership Rule 878ff 
 
 Passbook — 
 
 100. 143, 161, 235, 275, 400ff 
 Payments— 20, 21, 22, 20. 32. 42. 43. 
 01, 82, 92, 108, 106, 107. 122, 128. 
 12.'., 147, 170, 184, 285 
 
 Of dividends 232.239 
 
 Of Share. 240.241 
 
 1-1971
 
 GENERAL INDEX. 
 
 PACE 
 
 Pennsylvania g9 > 71 
 
 Pennsylvania Plan 86 
 
 Periodicals 22-26 
 
 Permanent Plan. The — 34, 61, 84-86, 
 91. 98. 100, 101, 102-110. 126, 
 14S, 160, 238 
 
 Calculation under 322-370 
 
 Compound interest of, 
 
 295, 296. 297, 298-300 
 Rebate tables under, 
 
 294, 297, 298, 299 
 
 Specimen reports of 290 
 
 Permanent Stock 121, 122 
 
 Perpetual Calendar — 
 
 301, 302 304, 316-321 
 
 Perpetual Succession 214ff 
 
 Philadelphia, Pa. . .32, 33, 35, 83, 372 
 
 City of Homes 35 
 
 Philadelphia Plan, The 86, 91 
 
 Pilling, Samuel n, 82 
 
 Plat, Necessity of 178ff 
 
 Polish League in Chicago 52 
 
 Powers of Building Ass'ns 214ff 
 
 Special 218 
 
 Premiums — 
 
 85, 115-117, 154, 159, 172, 176 
 Pranard, Dr. Charles.. 30, 31, 60, 158 
 
 President 198 
 
 Press, The 58, 140 
 
 Professional Valuators of Real 
 
 Estate 179 
 
 Profits 40, 153, 165, 371, 391 
 
 Application of 323 
 
 Methods of Calculation 372ff 
 
 Undivided 226 
 
 Profit-sharing 2, 167 
 
 Property, Redeeming 169 
 
 Property, Stock as 146 
 
 Protective Organizations 54, 55 
 
 Proxy on Stock 394 
 
 Publicity 48 ( 58 
 
 Public Meetings 128 
 
 Rankin, Leivis L 50, 51 
 
 Real Estate 126, 172 
 
 Appraisement of 179ff 
 
 Rebate and Compound Interest 
 
 Tables 291, 321 
 
 Receipts 233 
 
 Records 148 
 
 Rocruiting Members 139, 140 
 
 Reports 282-290 
 
 Reserve Fund 18, 112-115, 225 
 
 rxoB 
 
 Reserve Fund Stock 188 
 
 Rochester, N. Y 35 
 
 Rosenthal, Henry S 60 
 
 Rotary Club 130, 140 
 
 Rulison, Hiram M., Jr 208 
 
 Running Stock 92, 235, 236 
 
 Rural Credits 122, 123 
 
 Rural Dwellers g 
 
 Rules 218 
 
 Russell Act, The 67 
 
 Russia 5 
 
 Salary of Directors 210 
 
 San Francisco, Cal 51 
 
 Savannah, Ga 34 
 
 Savings 38, 96, 153 
 
 Saving Members leoff 
 
 Savings and Loan Associations.. 9 
 
 Savings Associations 
 
 Savings, Small 40 
 
 Savings Societies 13, 14, 16 
 
 Savings Systematic 15, 36, 89 
 
 Savings Unlimited 18, 19 
 
 Scandinavian Countries 81 
 
 Schallcross, Isaac 11, 32 
 
 Schmocle, Dr. William 33 
 
 Scotland 30, 32 
 
 Seal, Corporate, The 215 
 
 Secretary igeff 
 
 Assistant 197 
 
 Salary of 213 
 
 Secretary's Balance Sheets 284 
 
 Secretary's Cash Book 278, 405 
 
 Secretary's Contribution Book, 
 
 268-271R 
 Securities— 17, 80, 61, 150, 168, 174, 
 
 176ff, 221, 228 
 Serial Plan, The— 
 
 86-91, 103, 148, 149, 153 
 
 Calculation under 372ff 
 
 Distributions of earnings. .371-391 
 
 Specimen report 286,286 
 
 Share Contributions 266 
 
 Shares— 19,29, 32, 61, 82, 83, 84, 87, 
 88, 92, 98, 99, 100, 131, 144ff, 
 152ff, 371ff 
 
 And houses 29 
 
 Shipping 71 
 
 Sidebotham, Thomas 32 
 
 Simple Interest 388ff 
 
 South Africa 31 
 
 Representatives from at Con- 
 gress of League 61 
 
 [498]
 
 GENERAL INDEX. 
 
 PAGE 
 
 South America 31 
 
 South Carolina 34 
 
 State Building Associations 26 
 
 State Leagues — 
 
 48, 52, 53, 55, 56, 57, 66 
 
 Organization of 49 
 
 Spain 31 
 
 Spanish-American War 77 
 
 St. Louis 35 
 
 Stamp Act 77 
 
 Stern, Hon. Julius 69 
 
 Stock— 74, 81, 82, 85, 89, 144151, 
 
 152 156, 160 
 
 Paid-up 94,95,147 
 
 Stockholders— 88, 73, 74, 89, 90, 103, 
 
 104, 108, 120, 132, 144-151, 163, 
 
 169, 173 
 
 Definition of 152-156 
 
 Special Meetings 190 
 
 Special Powers 218 
 
 Subscription List 394 
 
 Suits 217ff 
 
 Supervision State 49, 185ff 
 
 Supplies 128 
 
 Systematic Saving 15, 36, 39 
 
 Tax 74,75,78 
 
 Taxation and Legislation 59-81 
 
 Taxation, Exemption from 68 
 
 Taylor, Dr. Henry 11 
 
 Tax, Inheritance Laws 168ff 
 
 Telephone Companies, Co-opera- 
 tive 7 
 
 Tenants 64 
 
 Terminating Plan— 11, 33, 61,82-84, 
 
 98, 102, 104, 145, 148,218 
 
 Texas 6 
 
 Thrift -12, 14, 15, 32, 39, 41, 64, 
 
 96, 129 
 
 Toledo, Ohio 48 
 
 Tornado Insurance 158 
 
 Trade Unions 140 
 
 Troy, N. Y 35 
 
 Transfer of Shares 175 
 
 Transfer Fee .140 
 
 Treasurer 198 
 
 Cash book 278 
 
 Truck and Market Gardeners.... 6 
 Trustees, Duties of 200ff 
 
 PACK 
 
 United States 17 J 
 
 Early history of building asso- 
 ciations in 31, 33 
 
 First building association in. .32, 33 
 First meeting of Building As- 
 sociation Leagues in 48 
 
 Laws in 63, 64 
 
 Representatives from at Con- 
 gress of Leagues 51 
 
 United States Commissioner of 
 
 Labor 26,27 
 
 United States League — 
 
 24, 49, 51, 52, 158 
 United States League of Local 
 Building and Loan Associa- 
 tions 48, 50, 60, 71, 76, 83 
 
 United States Supreme Court..71, 77 
 Utica, N. Y 36 
 
 Vice-President 196 
 
 Votes 133, 164, 193 
 
 Wage-earners — 
 
 12, 20, 35, 36, 39, 40, 126 
 
 Wages 37 
 
 Wales 30 
 
 Representatives from at Con- 
 gress of Leagues 51 
 
 War Savings Stamps 46 
 
 War Revenue Act 80 
 
 Washington 6, 122 
 
 West Virginia 80 
 
 Whittly, Thomas 50 
 
 Whxtlock, Isaac 32 
 
 Wisconsin 0, 50 
 
 Withdrawal— 89, 108, 148, 161, 166, 
 169, 175 
 
 Right of 166.T 
 
 Rules 110112 
 
 Value 168 
 
 Withdrawal Book 106 
 
 Workingmen 12, 20, 35, 30, 37 
 
 World's Fair Congress in Chicago 48 
 Wright, Carrol D 20, 27, 165 
 
 Y. M. C. A 
 
 Youn^lown, Ohio. 
 
 .140 
 . 06 
 
 1-190 1
 
 SPECIAL INDEX. 
 
 FIGURES, FORMS, TABLES. 
 
 PACE 
 
 Articles of Incorporation, Ohio..392ff 
 
 Attorney's Report 403 
 
 Auditing, Plan of . . , 267 
 
 Auditor's Certificate 279 
 
 Bond of Officers in Ohio 390 
 
 Collateral Note for Loan on 
 
 Passbook 402 
 
 Compound Interest Tables. . .295-300 
 
 Deposit Envelopes and Slips. . .409ff 
 Dexter's Rule 379ff 
 
 Earnings, Calculation of by Serial 
 Plan 373ff 
 
 Fundamental Interest Table 308ff 
 
 Interest Tables 324 346 
 
 Interest Tables, Compound. .295-300 
 Interest Tables (six months) ... .354 
 Interest Tables, Simple 388ff 
 
 Mortgage Clause for Insurance 
 
 Policies 399ff 
 
 Mortgage Collateral Note on 
 
 Shares of Stock 401 
 
 Mortgage in Ohio 396ff 
 
 PACE 
 
 Partnership Rule 379ff 
 
 Pass-books 406ff 
 
 Perpetual Calendar 801, 316 821 
 
 Proxy on Stock 894 
 
 Rebate and Compound Interest 
 Tables 291-321 
 
 Rebate, Permanent Plan 294 
 
 Receipt Forms 233, 234 
 
 Reports — 
 
 Attorney's 403 
 
 Specimen 288,289 
 
 Specimen of Permanent Plan. ..290 
 Specimen of Serial Plan. .285, 286 
 
 Secretary's Contribution Book... 269 
 Secretary's Monthly Contribution 
 
 Book 272 
 
 Shares, Table of 849-358 
 
 Statistics for Year 1893 27 
 
 Statistics for Year 1919 28 
 
 Subscription List 394 
 
 Time Table Summarized 348 
 
 Waiver of Mechanic's Lien 
 (Ohio) 402 
 
 [500]
 
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