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Building, 
 Loan and Savings Associations, 
 
 HOW TO ORGANIZE 
 
 AND 
 
 SUCCESSFULLY CONDUCT THEM 
 
 EMBRACING 
 
 The Origin and Hixtory of G}-operative Societies ; Objects 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 
 
 Third Edition. Revised and Enlarged. 
 
 AMBIUCAN BUILDING ASSOCIATION NBW8 CO. 
 CINCINNATI CHICAGO 
 
J*!^. 
 
 I; 
 
 
 Copyright 1911 
 
 By 
 
 Henry S. Rosenthal. 
 
Preface to the Third Edition. 
 
 IN presenting this, the third edition of a treatise on 
 Building, Loan and Savings Associations to the public, 
 the author realizes that the conditions that obtained at 
 the time of its first publication have changed materially. 
 At that time there was practically no literature on this 
 subject. The different systems, the methods in vogue in 
 various sections of the country were little known and less 
 understood outside of their own locality. Information 
 was gathered largely by word of mouth and the general 
 knowledge, even among officers and directors, was 
 limited. Systems and practices grew up seemingly 
 indigenous to the community where they originated. 
 Customs of varying merit, once established, were adhered 
 to with a tenacity and local pride that was commendable 
 for its honesty of purpose, but which did not always 
 reflect credit on the wisdom of those responsible. There 
 was a dearth of practical, reliable information and a con- 
 sequent divergence of practices and methods. 
 
 Today it is not an exaggeration to say that a trans- 
 formation has taken place. The literature on the subject 
 has grown to voluminous proportions. In this respect, 
 as in many others, the leagues — national, state and local 
 — have been a great incentive. Through their instru- 
 mentality data and information have been gathered from 
 every section of the country, enabling a general knowl- 
 
 [iii] 
 
 221682 
 
PREFACE. 
 
 edge of the subject. Many of the state departments also 
 issue annual reports and official documents for the guid- 
 ance of associations. Publications devoted to the interests 
 of building, loan and savings associations have appeared 
 at intervals and have added materially to the literature on 
 the subject. Of these the American Building Association 
 News was one of the first and is today the sole survivor 
 with an uninterrupted career extending over thirty years. 
 
 The relation of the association to the depositor and 
 borrower alike, as well as the details of management, 
 have during this time been more critically examined and 
 placed on a scientific basis. Practices that contained an 
 element of danger, obsolete customs and ambiguous or 
 misleading terms of bargaining have been discarded. 
 The touchstone of mutuality has been, and is being, 
 applied to every feature and its merits determined by that 
 standard. 
 
 While there were many elements that contributed to- 
 ward bringing about these changed conditions, the author 
 takes a pardonable pride in the fact that his early effort 
 was, in a measure, a pioneer work in this direction and 
 that he, in conjunction with the host of public-spirited 
 men and women who have been identified with the move- 
 ment for the past score of years, may claim a modest 
 meed of credit for having assisted in raising so worthy 
 an institution as the building, loan and savings associa- 
 tion to its present dignified position. 
 
 In this spirit this volume is again offered to the public. 
 While there is an abundance of literature on the subject 
 it nevertheless exists mostly in a scattered and frag- 
 
 [iv] 
 
PREFACE. 
 
 mentary form, impractical for handy reference. To 
 present this information in a concise and systematic form 
 is the object of this volume. The work has been thor- 
 oughly revised, new features and ideas noted, and the 
 best results of practical experience incorporated. 
 
 To conclude, it is true that sentiment finds scant 
 recognition in business, but without sentiment building, 
 loan and savings associations would be an impossibility. 
 With the hope, therefore, that this work may, in a modest 
 way, assist in realizing the sentiment expressed in the 
 motto : **The American Home, the Safeguard of Ameri- 
 can Liberties," it is submitted to the public for the third 
 time by 
 
 The Author. 
 
 W 
 
TABLE OF CONTENTS. 
 
 CHAPTER I. 
 Co-operative Effort 
 
 What Is Co-operation? 
 
 Origin of Co-operation. 
 
 Achievements, 
 
 Co-operative Efforts in the United States 1 — 3 
 
 CHAPTER II. 
 Building, Loan and Savings Associations. 
 Name and Title. 
 Object of the Associations. 
 Always a Savings Society. 
 Why Persons Become Members. 
 A Simple Theory. 
 Statistical Information. 
 Periodicals Devoted to the Interests 4 — 12 
 
 CHAPTER III. 
 Historical Review. 
 Societies in England. 
 Movement in France. 
 Early History in the United States. 
 Results Decidedly Beneficial. 
 Means to Financial Advancement. 
 The Future of the Movement 15—34 
 
 CHAPTER IV. 
 Building Associations and Leagues. 
 Purposes of Leagues. 
 The United States League. 
 The Organization of State Leagues. 
 International League. 
 County, City and Local Leagues. 
 What a League Can Do. 
 League Membership. 
 Resume 25—31 
 
 [Tiil 
 
TABLE OF CONTENTS. 
 
 CHAPTER V. 
 Legislation and Taxation. 
 Its Necessity. 
 Legislation in England. 
 Provisions of the English Law. 
 Defects in the English Law. 
 Laws in the United States. 
 Litigation. 
 
 Exemption from Taxation. 
 Exempting Homesteads from Taxation. 
 
 The Association in Reality a Clearing House for Its Members. 
 Statesmen Who Have Been of Direct Benefit to the Movement 
 Taxation 32-^16 
 
 CHAPTER VI. 
 Forms of Associations. 
 The Terminating Plan. 
 The Serial Plan. 
 The Perpetual or Permanent Plan 47 — 60 
 
 CHAPTER VII. 
 How TO Organize. 
 Necessary Conditions. 
 Preliminary Steps. 
 Choice of Name. 
 Capital Stock. 
 The Constitution. 
 By-Laws. 
 Incorporations. 
 Officers. 
 Headquarters. 
 Meetings. 
 New Regulations 61 — 71 
 
 CHAPTER VIII. 
 Stock and Stockholders^ 
 Stock and Shares. 
 Increase of Stock. 
 Stock as Property. 
 
 [viiil 
 
TABLE OF CONTENTS. 
 
 Shares Transferable. 
 
 Stock Payments or Dues. 
 
 Paid-up Stock. 
 
 Other Facts Concerning Stock, 
 
 Certificates of Deposit. 
 
 The Deposit Feature in Associations T2 — 80 
 
 CHAPTER IX. 
 
 Definition of Stock and Stockholders. 
 
 Difference Defined. 
 
 Serial Associations. 
 
 Borrowing Members. 
 
 Safety of these Associations 81 — 85 
 
 CHAPTER X. 
 
 Insurance. 
 
 Insurance Features. 
 
 Health, Accident and Disability Insurance. 
 
 Tornado Insurance. 
 
 Life Insurance 86 — 89 
 
 CHAPTER XL 
 
 Duties and Rights of Membbks. 
 
 Membership. 
 
 Duties of Members. 
 
 Fines and Forfeitures. 
 
 Rights of Members. 
 
 Corporate Rights of Members. 
 
 Rights as Investors. 
 
 Dividends. 
 
 Right of Withdrawal. 
 
 Rights of Borrowers. 
 
 Duties of Borrowers 90—101 
 
 [«3 
 
TABLE OF CONTENTS. 
 
 CHAPTER XII. 
 
 Loans and Securities. 
 
 Premiums. 
 
 Nature of a Loan. 
 
 Mortgages. 
 
 Other Securities. 
 
 Assignment of Stock. 
 
 Sale of Securities; Disposition of Proceeds. 
 
 Appraisement of Real Estate. 
 
 Expert Appraisers. 
 
 Straight Mortgage Loans 102—109 
 
 CHAPTER XIII. 
 
 Corporate Government. 
 
 The Corporate Meeting. 
 
 General Meetings. 
 
 Special Meetings. 
 
 Management of Corporate Meetings. 
 
 Officers : Their Election and General Powers 110 — 116 
 
 CHAPTER XIV. 
 
 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 Directors. 
 
 Duties of Trustees. 
 
 The Attorney: His Appointment, Duties and Compensation. 
 
 Bonds of Officers. 
 
 Surety Bonds. 
 
 Responsibilities of Officers. 
 
 Remuneration of Officers. 
 
 Salary of Directors, 
 
 Salary of Secretary 117 — 138 
 
 Ex] 
 
TABLE OF CONTENTS. 
 
 CHAPTER XV. 
 
 Powers and Liabilities. 
 
 General Powers. 
 
 Perpetual Succession. 
 
 The Corporate Seal. 
 
 Contracts and Agents. 
 
 Suits. 
 
 Rules. 
 
 Special Powers. 
 
 Dissolution 139—146 
 
 CHAPTER XVI. 
 
 Practical Questions Answered. 
 
 Borrowing Money. 
 
 Contingent or Reserve Fund. 
 
 Undivided Profits. 
 
 Quick Assets. 
 
 Mortgages: Custody, Recording, etc. 
 
 Insurance Policies as Collateral Security. 
 
 Leaseholds. 
 
 Taxes and Assessments. 
 
 Payment of Dividends. 
 
 Dues, Deposit Slips, etc. 
 
 Paying oflF Shares 147—166 
 
 CHAPTER XVII. 
 
 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 Sheet. 
 
 The Auditor the Representative of the Members. 
 The Selection of an Auditing Committee. 
 
 [xi] 
 
TABLE OF CONTENTS. 
 
 Qualifications for Auditing. 
 
 Disqualification of Auditors. 
 
 Assistance from Officials. 
 
 Change of Auditors. 
 
 Compensation of Auditors 166—186 
 
 CHAPTER XVIII. 
 
 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 Contribution 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 Certificate. 
 
 Safety Insured. 
 
 State Supervision 187 — ^211 
 
 CHAPTER XIX. 
 
 Reports. 
 
 Their Necessity. 
 
 Legal Requirements. 
 
 Preparation and Publication of Reports. 
 
 Secretarjr's Balance Sheet. 
 
 Specimen Reports 212 — ^220 
 
TABLE OF CONTENTS. 
 
 CHAPTER XX. 
 
 Rebate and Compound Interest Tables. 
 
 Explanation and Remarks, 
 
 Perpetual Calendar. 
 
 Fundamental Principles of Building Associations. 
 
 Comparisons of Earnings. 
 
 Sources of Profit. 
 
 Declaring 25^% Dividends Semi-Annually. 
 
 Perpetual Weekly Calendar 221—261 
 
 CHAPTER XXI. 
 
 Distribution of Earnings — Permanent Plan. 
 
 Calculation of Dividends and Interest. 
 
 Application of Profits. 
 
 Permanent Plan — System I. 
 
 Tables for Permanent Plan. 
 
 Permanent Plan — System II. 
 
 Tables for Permanent Plan 252—301 
 
 CHAPTER XXII. 
 
 Distribution of Earnings — Serial Plan. 
 
 Distribution of Earnings. 
 
 Division of Profits — Serial Plan. 
 
 Earning Powers. 
 
 Rules and Tables Exemplifying the Division of Profits Under 
 
 Dexter's Rule and the Partnership Rule 302—321 
 
 CHAPTER XXIII. 
 
 Legal Forms for AssoaATioNs. 
 
 Specimen Blanks. 
 
 Articles of Incorporation (Ohio). 
 
 Subscription List. 
 
 Proxy on Stock. 
 
 Bond of Officers (Ohio). 
 
 Mortgage (Ohio). 
 
 [xiiil 
 
TABLE OF CONTENTS. 
 
 Mortgage Clause for Insurance Policies. 
 
 Mortgage Collateral Note on Shares of Stock. 
 
 Mechanics' Lien (Ohio). 
 
 Collateral Note for Loan on Pass-Book. 
 
 Attorney's Report. 
 
 Certificate of Paid-up Stock 322—335 
 
 CHAPTER XXIV. 
 Books and Blanks. 
 
 General Suggestions. 
 
 Book Account. 
 
 Pass-Books. 
 
 Deposit Envelopes and Slips. 
 
 Necessary Books and Forms. 
 
 Building Association Supplies 336 — 347 
 
 CHAPTER XXV. 
 Juvenile Savings. 
 
 CHAPTER XXVI. 
 
 Advertising. 
 
 Why Should You Advertise? 
 
 How Should You Advertise? 
 
 The Preparation of Advertisements. 
 
 Appendix. 
 
 Technical Data. 
 
 Printing. 
 
 The Printer's Point System. 
 
 Papers. 
 
 Illustrations. 
 
 Bill Posting. 
 
 Street Car Advertising 348—372 
 
 APPENDIX. 
 Laws of Ohio Relating to Building and Loan Associations. 
 Organization. 
 Powers. 
 
 [xiv] 
 
TABLE OF CONTENTS. 
 
 Regulations. Bond of Officers. 
 
 Reserve Fund. 
 
 Division of Earnings. 
 
 Taxation. 
 
 Inspection. 
 
 Foreign Associations. 
 
 Annual Report of Associations. 
 
 Examination of Associations. 
 
 Fees. 
 
 Penalties. 
 
 Dividends. 
 
 Fee Bill of Secretary of State. 
 
 Rights Granted and Liabilities Imposed by the New Ohio Law. 
 
 Constitution. 
 
 By-Laws. 
 
 Rules 373-411 
 
 [rrj 
 
CHAPTER I. 
 
 Co-operative Effort. 
 
 WHAT IS CO-OPERATION? 
 
 Co-operation as a system consists in a joint stock co- 
 partnery on ordinary commercial principles with limited 
 liability of members. By the adoption of wise precautions 
 and prudent methods, and through the interposition of 
 judicious legislation defining corporate powers, and pro- 
 tecting individual interests, the principle of co-operation 
 does much to encourage self-denial and thrift on the part 
 of individuals, and to develop and foster the material 
 interests and moral welfare of communities. 
 
 ORIGIN OF CO-OPERATION. 
 
 As a practical result in the organization of co-opera- 
 tive societies, the principle of co-operation was evolved. 
 Such organizations are almost coeval with civilization 
 itself, and have existed in some form or another in every 
 enlightened nation. There is no authenticated history of 
 the operation of the first co-operative societies, but it is I 
 reported that the very first successful organizations were 
 established in the Chinese Empire, many centuries ago. 
 
 During the last period of the eighteenth century we see 
 the foundation of what is termed, modern co-operation. 
 
 [1] 
 
;t:;:^':n ■ c. ; > chapter l 
 
 This was successfully established in England at that time. 
 From this beginning have sprung colossal co-operative 
 merchandising, manufacturing and distributive institu- 
 tions, the output of which is enormous. The many suc- 
 cessful institutions that are now in operation in England 
 have won the admiration of the commercial and financial 
 world. 
 
 From the good results obtained, not only in England, 
 but in all British possessions, the principles have been 
 copied by the various European nations, and thus we find 
 in Germany, France, Austria, Russia, Italy and other 
 European countries, a development that has truly been 
 phenomenal. 
 
 ACHIEVEMENTS. 
 
 As a result of these societies, and for whatever purpose, 
 they have been the same in essential plan and nature. They 
 spring up out of the same conditions and minister to the 
 same necessities and achieve the same results. To organ- 
 ize such an institution successfully, there must be a popula- 
 tion consisting mainly of persons of small incomes, and 
 generally dependent upon their daily labor for these 
 incomes. These persons must have intelligence and 
 similarity of interests and tastes, and there must be a 
 strong element of mutual trust and dependence. Condi- 
 tions such as these are to be found greatest among the 
 laboring classes, clerks, shop and store assistants, etc. 
 By uniting a portion of their earnings, these classes can 
 successfully accomplish the furnishing of capital to achieve 
 their purposes. When this is done upon an economical 
 
 [2] 
 
CO-OPERATIVE EFFORT. 
 
 and prudently devised basis, advantages are secured which 
 would be impossible to those interested, as individuals. 
 Inasmuch as the populations of the various countries are 
 made up of people of these classes and conditions, their 
 necessities are practically the same, and therefore we find 
 a similarity in the efforts made to meet these necessities. 
 
 CO-OPERATIVE EFFORTS IN THE UNITED STATES. 
 
 It is rather strange that in the United States there 
 have been so many experiments along the lines of co- 
 operative effort in manufacturing, merchandising and 
 distribution that have not met with any degree of success. 
 While there have been some instances where the work 
 done in this direction has met with success, yet there are 
 few cases to record that evidence much prosperity along 
 these lines. Perhaps this is due to the fact that there is a 
 lack of experience to guide co-operative effort as is found 
 in Great Britain and Germany. Undoubtedly unfavorable 
 conditions, inexperienced management and the lack of 
 necessary legal restraints and official supervision have 
 brought failure to many of the attempts made in this 
 direction. 
 
 One form of co-operative effort, however, has been 
 remarkably successful in this country. This is found in 
 the Building, Loan and Savings Associations, of which it 
 is the purpose of this work to treat. Conditions have 
 especially favored the organization of these societies. As 
 a result the building, loan and savings associations of the 
 United States now exceed, in combined assets and mem- 
 bership, those of all other countries. 
 
 [3] 
 
CHAPTER II. 
 
 Building, Loan and Savings Associations. 
 
 NAME AND TITLE. 
 
 The term "Building and Loan Association/' has been 
 used in a general way, although we find institutions of 
 the same character that operate as Homestead and Build- 
 ing Associations, Mutual Loan Associations, Co-operative 
 Banks, Co-operative Savings and Loan Associations, Sav- 
 ings Fund and Loan Associations, Savings and Building 
 Associations, Savings and Loan Companies, and other 
 titles of like nature. 
 
 OBJECT OF THE ASSOCIATIONS. 
 
 The object of these associations is to furnish persons of 
 limited means and small incomes an avenue to invest their 
 earnings safely. While the principal object of these asso- 
 ciations is to enable the wage earner and those of limited 
 incomes to secure these combined savings for the purpose 
 of building or purchasing a home, the general public 
 from the practice, work and nature of these associations 
 have mistaken ideas as to their real character. The proper 
 title for an organization of this kind would be(j'Co-opera- 
 tive Savinga and Loan Association." The use of the word 
 "Building" in the name of these associations is traditional, 
 
 [4] 
 
BUILDING, LOAN AND SAVINGS ASSOCIATIONS. 
 
 having been handed down from the first co-operative 
 societies of this character, which were organized in Eng- 
 land, and known as ''Building Societies." 
 
 ALWAYS A SAVINGS SOCIETY. 
 
 Therefore, the so-called association, while not nece^ 
 sarily a building association, is always a Vo-operativs 
 saving society, and a loan association. It is a money 
 saving institution, in that a necessary part of its system 
 requires its members to deposit such portions of their 
 earnings or incomes as they can afford to lay aside in this 
 manner. It is a money making institution, in that the 
 funds thus accumulated are so used and applied as to 
 secure for the association such rates of interest as are 
 obtainablejin the open markets of the worldj It is a money 
 loaning institution,, in that it undertakes to advance or 
 loan to ^3ts\ members,) upon acceptable security, such 
 amounts as from time to time their necessities demand, and 
 their circumstances will allow them to borrow, [it is the 
 popular institution among that class of persons who 
 compose the membership of such associations, because it 
 is mutual and democratic in its character, each member 
 sharing equitably in all its advantages and privileges, and . 
 having an equal voice in the administration of its affairs. ) 
 
 WHY PERSONS BECOME MEMBERS. 
 
 There are various reasons why persons should affiliate 
 themselves with this movement. In the first place, they are 
 sought because they are a safe depository for slowly 
 accumulating funds, and because the people know their 
 
 [5] 
 
CHAPTER II. 
 
 savings are safer when they are thus deposited than if 
 retained in their own possession. Such persons find a 
 strong inducement to become members, because the asso- 
 ciation provides a safe and convenient method of investing 
 their small means, at the best rate of interest obtainable. 
 Others again use the associations as they would a savings 
 bank for the purpose of accumulating a fund to purchase 
 a lot or home, to embark in business or some other form 
 of investment later on. Many persons are members of the 
 associations because of the privilege they thereby obtain 
 of anticipating the future, and securing the immediate use 
 of money which they will gradually return by depositing 
 from week to week, or month to month, as the case may 
 be, a portion of their regular earnings. Associations will 
 advance to this class of members certain amounts of 
 money, the payment of which in installments is secured 
 by the pledge of the stock of the member and the mortgage 
 of some approved real estate, or in some cases the deposit- 
 ing of other acceptable collaterals as security. 
 
 A SIMPLE THEORY. 
 
 Therefore, the theory of these associations is a simple 
 one. The money is collected in comparatively small sums 
 from large numbers of people, and loaned to others who 
 borrow upon real property or other approved security, 
 either to build homes, to enter business, or for other 
 purposes. These associations are most popular when they 
 adhere to the objects which they set out to attain. Co- 
 operation in the form of this class of associations, fur- 
 nishes such persons an opportunity for regular, systematic 
 
 [6] 
 
BUILDING, LOAN AND SAVINGS ASSOCIATIONS. 
 
 and compulsory savings, or to anticipate them by borrow- 
 ing for the purpose of purchasing and holding real prop- 
 erty in their own names or to secure special advantages 
 in other directions, impossible for them under the prevail- 
 ing commercial and financial conditions. Originally mem- 
 bers of associations were permitted to subscribe only fixed 
 sums at stated intervals. The evolution of this idea has 
 been to grant every facility for the varying powers of 
 investment, and to find a place for capital, be it a small or 
 large amount, so that now entrance and withdrawal are 
 equally easy. The policy and methods of associations 
 have been varied to meet the convenience and necessities 
 of the membership, thereby popularizing them and render- 
 ing them more successful in their achievements. 
 
 STATISTICAL INFORMATION. 
 
 The ninth annual report of the Department of Labor 
 for the year 1893, by the Hon. Carroll D. Wright, Com- 
 missioner, was prepared and published in Washington in 
 the year 1894. This was the first correct and authentic 
 compilation of statistics that had ever been gathered 
 relating to the building, loan and savings association 
 movement of the United States. In this report the fol- 
 lowing statistics appeared : 
 
 [7] 
 
CHAPTER 11. 
 
 Number of associations 5,838 
 
 Male shareholders in associations reporting 919,614 
 
 Female shareholders in associations reporting 307,828 
 
 Total shareholders in associations reporting 1,745,725 
 
 Average shareholders per associations reporting 301.2 
 
 Shareholders who are borrowers in associations reporting 455,411 
 
 Per cent of borrowers in associations reporting 26.25 
 
 Number of shares in associations reporting 13,255,872 
 
 Total dues and profits $450,667,594 
 
 Average shares per shareholder in associations reporting 7.5 
 
 Average dues and profits per shareholder in associations 
 
 reporting $ 257.26 
 
 Average value of shares in associations reporting $ 34.18 
 
 Total profits $ 80,664,116 
 
 Average size of loans in associations reporting $ 1,120 
 
 Homes acquired in associations reporting 314,755 
 
 At the time of the preparation of this report it could be 
 seen that the number of associations doing business as 
 nationals, was 240. This method of doing business has 
 been discontinued almost entirely. 
 
 The statistics available show the standing of the build- 
 ing association movement as reported from year to year 
 by Mr. H. F. Cellarius, Secretary of the United States 
 League of local building and loan associations. The 
 figures for the business covering 1909 are as follows ; 
 
 [8] 
 
BUILDING, LOAN AND SAVINGS ASSOCIATIONS. 
 
 No. Total Increase Increase 
 
 States. of Member- Total in in Mem- 
 
 Ass'ns. ship. Assets. Assets. bership. 
 
 1 Pennsylvania ....1,450 400,000 $171,500,000 $12,989,255 10,554 
 
 2 Ohio 647 328,866 153,504,501 14,164,077 1,204 
 
 3 New Jersey 477 164,569 78,788,161 5,269,927 8,263 
 
 4 Illinois 524 118,994 58,444,972 4,131,506 10,260 
 
 5 Massachusetts ... 140 129,619 55,945,634 4,605,731 9,044 
 
 6 New York 247 114,436 42,070,940 2,908,338 6,236 
 
 7 Indiana 327 120,500 35,934,418 1,803,002 422 
 
 8 California 105 30,839 20,228,116 592,449 *303 
 
 9 Nebraska 70 49,441 17,094,771 3,678,949 6,758 
 
 10 Michigan 59 41,188 16,304,383 1,247,890 2,006 
 
 11 Dist. of Columbia 22 27,125 14,393,927 
 
 12 Louisiana 59 29,800 13,461,091 1,937,437 2,437 
 
 13 Missouri 128 23,717 10,168,631 867,970 2,019 
 
 14 Kansas* 58 39.114 10,107,663 4,328,465 21,454 
 
 15 North Carolina . . 98 23,789 6,791,619 770,198 *2,487 
 
 16 Wisconsin 53 14,517 5,268,853 538,159 2,002 
 
 17 Minnesota * 67 11,022 4.559,027 
 
 18 Iowa' 48 15,300 4,390,443 
 
 19 W. Virginia 38 11,460 4,283.728 169,844 230 
 
 •20 Maine 35 9,691 4,085,811 216,669 262 
 
 21 Tennessee 15 5,360 2.800,917 72,614 145 
 
 22 Connecticut 11 2,864 2,096,523 197,693 *27 
 
 23 New Hampshire.. 17 7,400 2,016,861 38,734 150 
 .24 North Dakota.... 9 3,125 1.785.782 287.960 525 
 
 Other states 1.000 293.915 120,305,947 11,340,099 15,240 
 
 Total 5,713 2.016,651 $856,332,719 $72,156,966 96,374 
 
 Thus it will be seen that during the period intervening 
 
 between the two reports the number of associations has 
 not increased, while the total holdings have increased 
 about 100%. 
 
 * Decrease. 
 
 ^ Including 3 general associations. 
 
 * Reports made biennially. 
 
 f9] 
 
CHAPTER 11. 
 
 PERIODICALS DEVOTED TO THE INTERESTS. 
 
 There have been a number of periodicals devoted to 
 this interest, published in the various parts of the United 
 States. From lack of support by the associations and 
 membership, these have all ceased publication, excepting 
 that at the present time there is published The American 
 Building Association News, which was founded in- 
 1880 and published at Cincinnati and Chicago. This 
 journal is the recognized authority on all matters pertain- 
 ing to building and loan association affairs. It has been 
 declared the official organ of the U. S. League and the 
 various other leagues in the different states. It has proven 
 an important factor in protecting the interests of these 
 institutions, and on many occasions its educational value 
 to the legislators has been recognized. Every association 
 in the United States should have a copy of this journal at 
 its meeting place, and should mail regularly, at the expense 
 of the association, a copy to the home of each director, so 
 that they may become posted on all important matters 
 that transpire. The many useful features, its editorial, 
 legislative, statistical, advertising, judicial, and all general 
 news affecting those interests, make this journal indis- 
 pensable to those who have the management of these 
 associations entrusted to them. It is to be hoped that in 
 the near future the work of this journal can be carried in 
 a more popular form to the members of these institutions. 
 The associations could order bulk editions with advertis- 
 ing matter of the different associations inserted, and 
 distribute them to the membership and to everyone they 
 wish to interest in this work. There are at present a num- 
 
 [10] 
 
BUILDING, LOAN AND SAVINGS ASSOCIATIONS. 
 
 ber of associations that have begun to follow out this idea, 
 with remarkable success. 
 
 The necessity for all the associations of the United 
 States to become subscribers to a paper of this character 
 is particularly apparent at a time of need for proper legisla- 
 tion. A notable instance of this kind was furnished when 
 the corporation tax bill was under consideration before 
 Congress in 1909. The committee on finance of the 
 Senate had refused to allow proper exemptions to build- 
 ing, loan and savings associations in their report to that 
 body. When this fact became known, the publishers of 
 this journal, together with the leading officials of the 
 various leagues of the United States, set about immediately 
 to create public opinion in favor of the importance of 
 securing an amendment to the corporation tax bill, exempt- 
 ing these associations. The result was wonderful, and it 
 was only through the efforts coming from all parts of the 
 Union at one time, that made success possible. The recog- 
 nition secured by the associations from Congress in such 
 important legislation, must not be measured alone by the 
 actual financial savings to each association. The standing 
 given to the associations in such a manner tends to help 
 this work from an advertising point of view. 
 
 In the future many important problems will develop 
 from time to time, of which some will doubtless be vital 
 to the continuance of the work of these associations. As 
 an instance, the proposed federal income tax may be cited, 
 which at the present time is before the various state leg- 
 islatures for action. Almost every day, progress is reported 
 in some of the states, favoring this amendment to the fed- 
 
 [11] 
 
CHAPTER 11. 
 
 eral constitution. The result will doubtless be that at some 
 time or other the income tax proposition will be before 
 Congress. When this time arrives, it will be necessary for 
 the entire movement of the United States to present a 
 united front, demanding proper exemption. There is only 
 one avenue through which an agitation of this kind can be 
 crystallized at the present time, and that is through the 
 American Building Association News, and it is there- 
 fore of paramount importance for all directors to be 
 informed as to the true situation, not only of legislative, 
 but other matters also. 
 
 The many new ideas that are brought forward in the 
 matter of book-keeping, the many papers that are read 
 before the various state leagues, the new interpretation of 
 judicial proceedings are all important, and those interested 
 should make it their duty to know the exact status of 
 affairs. 
 
 fl2] 
 
CHAPTER III. 
 
 Historical Review. 
 
 SOCIETIES IN ENGLAND. 
 
 Building societies existed as early as 1798 in England, 
 The first full and authentic account is that of 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 subscriptions of a fund to be expended in build- 
 ing houses. These houses, as they were built, were deeded 
 to the different members of the association. The member- 
 ship of this society was restricted to the number of fifty, 
 the whole number of shares was two hundred, of a value 
 £210 each. Payments were made in monthly installments 
 of two guineas each. A member was subjected to a fine 
 in default of payment, and if he continued to fail to make 
 his payments, the money already paid in was under certain 
 conditions 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. 
 
 [13] 
 
CHAPTER III. 
 
 From the time a house was finished the member owning 
 it paid to the society five per cent per annum and his share 
 of £210 until the close of the society, at which time each 
 member should have paid in the full amount of the share 
 held by him. Members who were successful in the draw- 
 ings were compelled to give satisfactory security for the 
 money advanced them for their houses. There were various 
 other rules connected with the operation of this early 
 building association which are quite interesting, but which 
 cannot be enumerated here. 
 
 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. He is 
 said to have spent considerable time and study in perfect- 
 ing and developing the scheme of this society. The organ- 
 ization of similar societies gradually extended into the 
 manufacturing districts of England, Wales and Ireland. 
 They were afterwards established in London, and soon 
 became general throughout Great Britain, Australia and 
 the other British possessions. In 1836 they had grown to 
 such public importance that an act of parliament was 
 passed affording facilities for their formation and provid- 
 ing for their government and management. Since that 
 period they have had a flourishing growth. They report 
 to the registrar who publishes annual statistics. Appended 
 are the official figures as far as obtainable for 1908 : 
 
 [14] 
 
HISTORICAL REVIEW. 
 
 Number of societies in the United Kingdom. . . 1,919 
 
 Numbers of societies making returns 1,864 
 
 Total number of members 622,614 
 
 Total receipts during the last financial year. . £41,025,198 
 
 Number of societies making advances on 
 
 mortgage 1,423 
 
 Amount advanced on mortgage during the year £ 9,041,613 
 
 Liabilities: 
 
 To the holders of shares £44,349,406 
 
 To depositors and other creditors 25,582,290 £69,931,696 
 
 Undivided profits £ 4,112,693 
 
 Assets: 
 Balance due on mortgage securities (not 
 
 including prospective interest) £58,379,215 
 
 Amount invested in other securities and cash 15,592,354 £73,971,569 
 
 MOVEMENT IN FRANCE. 
 
 The good work accomplished in the United States has 
 caused co-operators in other countries to obtain informa- 
 tion from the institutions so successfully established here. 
 In France, Dr. Charles Pranard, having been a close 
 student of this movement, prepared at the request of the 
 French government, documents covering the work in the 
 United States. Dr. Pranard has published a work on this 
 subject. As a result of this, the government of France 
 has passed legislation exempting associations organized 
 in France from taxation, which should have the effect of 
 rapidly multiplying these organizations in the French 
 Republic. 
 
 Spain, Italy, Germany, Austria and other European 
 countries are following in the same lines, and thus it will 
 be seen that as an educational factor the good achieve- 
 ments on American soil and the spread of the co-operative 
 savings and home building idea will obtain a firm foot- 
 hold not only in Europe, but all over the world. 
 
 [15] 
 
CHAPTER III. 
 
 EARLY HISTORY IN THE UNITED STATES. 
 
 The first organization in the United States was that of 
 the Oxford Provident Building Association of Frankford, 
 a suburb of Philadelphia, January, 1831. Gustav Korner, 
 in his book "The German Element in the United States,"* 
 speaking of the influential and public-spirited German 
 citizens of Pennsylvania (pages Y3 and 74), says of Dr. 
 William Schmole: "In the year 1846 he 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.'** He was 
 also the founder of numerous other societies of this kind." 
 It seems to be well established that the first association in 
 this country was formed in Philadelphia. Dr. Schmole, 
 through his brother residing in Brooklyn, N. Y., succeeded 
 in organizing in the same year an association in that city 
 under the name of "The Brooklyn Mutual Deposit and 
 Building Association."! In the following year, 184t, 
 through his friend Wolsieffer, Dr. Schmole secured the 
 organization of an association in Baltimore, Md. 
 
 Similar organizations appeared soon afterwards in 
 New York City, Newark and Hoboken, N. J. ; Boston, 
 Mass., and in other cities of the north, and in 1850 their 
 formation was begun in Charleston, S. C, Savannah, 
 Ga., and other prominent southern cities. Associations 
 continued to spring up from time to time throughout the 
 
 * Das Deutsche Element in den Vereinigten Staaten. 
 
 ** Amerikaniscber Darlehen und Bau-Verein. 
 
 t Brooklyner Gegenseitiger Darlehen und Bau-Verein. 
 
 [16] 
 
HISTORICAL REVIEW. 
 
 country, until they are now established in every state 
 and territory in the Union. 
 
 The first association in Cincinnati, Ohio, was organized 
 July 8, 1868. Dr. Keck was founder of the first associa- 
 tion in the State of Ohio. The Mutual Home and Sav- 
 ings Association, of Dayton, O., was organized in 1871. 
 As a result of the successful operation of these associa- 
 tions in these localities they spread rapidly into the sur- 
 rounding cities. 
 
 From Ohio, associations spread into Kentucky, Indiana, 
 Michigan, Illinois, Iowa, Nebraska, Missouri, Kansas and 
 in other states and territories. 
 
 RESULTS DECIDEDLY BENEFICIAL. 
 
 The results which follow the establishment of these asso- 
 ciations are well illustrated in the City of Philadelphia, 
 where the first one was established. Probably one-half 
 of the dwelling houses in this city have been built through 
 the agency of the associations and much of the permanent 
 prosperity of the city's population is doubtless due to their 
 introduction. It is through this agency that the city has 
 attained the proud and significant title of "City of 
 Homes." Over 100,000 workingmen in this one city have 
 secured homes through these associations. This is merely 
 given as an illustration on a large basis. There is con- 
 vincing proof that in other large cities of the country, such 
 as Chicago, Baltimore, Cincinnati, St. Louis, Rochester, 
 Troy, Utica and Newark, similar conditions in the same 
 proportion prevail. In the smaller cities and villages even 
 a greater percentage of home ownership has been accom- 
 
 [17] 
 
CHAPTER III. 
 
 plished. In most of the places where they have been 
 estabUshed they continue to prosper, and while there have 
 not been as many new organizations formed in the last 
 decade, the capital and property under their control have 
 grown enormously. 
 
 MEANS TO FINANCIAL ADVANCEMENT. 
 
 Building, loan and savings associations are now an 
 important factor in the social economy 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 
 population, among whom they principally flourish, recog- 
 nize them as a means to financial advancement. Their 
 beneficent and economic value to a community is now 
 acknowledged by all classes and hence they are encouraged 
 on every hand as a potent factor in promoting the public 
 welfare. The chief advantages of these institutions may 
 be stated as follows : 
 
 1. Each member has a voice in its creation and manage- 
 ment, and all share equitably in its advantages and profits. 
 
 2. It furnishes the best method by which wage earners 
 and others with limited incomes can become their own 
 capitalists. 
 
 3. The association furnishes a better and safer oppor- 
 tunity than any other plan that has yet been devised for 
 securing a liberal return of profits from small and period- 
 ical savings. 
 
 4. The industrial classes, the storekeepers and manu- 
 
 [18] 
 
HISTORICAL REVIEW. 
 
 facturers, are instructed in the management of money and 
 property. 
 
 5. The important feature of these associations lies in 
 the fact that they enable their members to secure the benefit 
 of their earnings in advance, by loaning to the members 
 funds with which to build homes or to embark in other 
 enterprises. These loans they are privileged to repay in 
 such regular weekly or monthly installments as their earn- 
 ings will permit. In many cases they are enabled to make 
 straight loans. 
 
 6. The line of credit that is extended to the wage earner, 
 small merchant or manufacturer, is an important factor 
 in the development of this country. 
 
 With the spread of intelligence under our modern civili- 
 zation there has been an ever-increasing effort on the part 
 of the working classes and those dependent on small 
 incomes to accumulate money. In order to become in any 
 measure independent, people depending upon their own 
 earnings for incomes, must constantly practice industry 
 and frugality with intelligent judgment and patient 
 perseverance. Of the many schemes and systems that have 
 been devised to aid workingmen or women in this respect, 
 none has proved so popular or successful as building, loan 
 and savings associations. A strong point in their favor is 
 their purely democratic character and the mutual nature 
 of their advantages. In other systems of savings, the 
 management of the enterprise is vested in a few individuals 
 and the depositors have little more to do with it than the 
 mere mechanical act of making their deposits. In the 
 building, loan and savings associations the conditions are 
 
 [19] 
 
CHAPTER III. 
 
 entirely different, for here the depositor has an active 
 interest in the enterprise. He has a voice and influence in 
 of those associations, where special deposits are received 
 of those associations where special deposits are received 
 under certain conditions, there is no preferred class to be 
 benefited at the expense of the other members. Even 
 though a capitalist becomes a member and subscribes for a 
 large number of shares he can derive no benefit or 
 advantage on each share that cannot be commanded by the 
 humblest member. He must enter upon the same terms 
 exactly that are required of other members and must stand 
 upon an equal footing with them throughout. Stock- 
 holders elect their own directors, choosing from their own 
 number such persons as they wish to clothe with authority 
 to administer the affairs of the association. By using 
 discretion in selecting intelligent and honest managers, 
 and then holding them to strict accountability for their 
 policy and management, they insure an economical and 
 faithful administration of the business of the association, 
 in the benefits of which all the members participate. 
 
 Associations open to a member an opportunity to share 
 in the profits on small savings which cannot be secured 
 in any other direction. The deposits of all the members 
 when combined form a sum of money of such proportions 
 as command opportunities and advantages in the way of 
 investment impossible for the members acting independ- 
 ently to secure through their individual savings. Under 
 this system members become their own self-made cap- 
 italists. The collective savings of the people who do not 
 need their money form a sum out of which other people 
 
 [20] 
 
HISTORICAL REVIEW. 
 
 who do need the money may supply their wants, and on 
 such conditions that both borrowers and lenders reap 
 mutual benefit from the transaction. They are independent 
 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 
 at home, to embark in business, or to make any other 
 use of the money. Moreover, as is seen, the association 
 itself creates the opportunity for the profitable use of capital. 
 The wage earner, trained to habits of economy and thrift 
 by the influence of the association, and roused to a laud- 
 able ambition by the opportunities it suggests and offers, 
 becomes himself a borrower and investor of capital and 
 supplies his needs for money from the accumulated capital 
 of his associates. 
 
 The methods by which these associations are operated 
 insures the minimum expense in handling their funds. 
 At the same time the opportunities and sources of profit 
 are larger and cannot be secured to the same extent except 
 through a co-operative effort of this nature. Not only is 
 a fair rate of interest to be expected from an investment in 
 the shares of a well conducted association, but through 
 the system adopted by nearly all of these societies, the mem- 
 bers receive a greater income yield than in any financial 
 institution of like nature. In the matter of fines and for- 
 feitures enforced against delinquent members, which 
 formerly constituted a large source of profit for these 
 associations, this idea is fast disappearing. The same may 
 be said of the premiums on loans. The undeclared div- 
 idends on withdrawals form one of the sources of profit. 
 
 [21] 
 
CHAPTER III. 
 
 Thus it will be seen that this institution furnishes unusual 
 opportunities for securing profits upon small savings, 
 opportunities which capitalists themselves cannot secure 
 except upon exactly the same terms and conditions. 
 
 Ordinarily, the man earning wages, and especially one 
 having a considerable family dependent upon him, finds 
 great difficulty in meeting the demands that are constantly 
 being made upon his purse. Too often, discouraged by 
 circumstances, he falls into a mere routine way and feels 
 satisfied if from week to week his net income meets his 
 expenses. Occasionally, however, a man of this class, 
 more ambitious than his fellows, sets about to form some 
 plan of his own for regular saving and thereby gradually 
 accumulates a sum of money. Whether this be done by 
 hoarding it in some secret receptacle, or by depositing it in 
 some bank or savings institution, the act is only a routine 
 and mechanical one, and he gains thereby nothing more 
 than a mere addition to his savings. It is only after hav- 
 ing his savings placed in an institution for a period, usually 
 not less than six months, that he receives a fixed rate of 
 interest thereon. In saving by this plan a working man 
 does not secure the interest or profit upon his savings that 
 he should receive. He 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 sum of 
 money if he had 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 this 
 direction. Should he succeed through constant hoarding 
 in accumulating a sum of money of his own, when he 
 
 [22] 
 
HISTORICAL REVIEW. 
 
 undertakes to make an investment he must either run the 
 risk of losing all or a part of his savings through his 
 ignorance and inexperience, or he must become dependent 
 upon the skill and knowledge of others in the management 
 of property. 
 
 It is not necessary to dwell upon the advantages gained 
 by those who are able to secure homes of their own. These 
 advantages are seen in the increased happiness and con- 
 tentment of families, their greater comfort and better 
 health, increased educational advantages and opportu- 
 nities, more economy in the expenses of living, greater 
 interest in the civic welfare of their respective com- 
 munities, and that independence of action and bearing 
 which can arise only from the intelligent and regular dis- 
 charge of the responsibilities and duties incident to this 
 natural and beneficial form of home life. 
 
 THE FUTURE OF THE MOVEMENT. 
 
 The associations have increased in membership in those 
 states where they have had successful administration of 
 their affairs. Wherever they exist, as a rule, a large pro- 
 portion of the population is identified with them, both as 
 stockholders and borrowers. The benefits of such organ- 
 izations are so apparent and their popularity so well 
 established that it is evident they are but beginning to 
 occupy their fields of usefulness. In view of the steady 
 and rapidly increasing development of the country it 
 seems entirely safe to predict that while the number of 
 associations will not increase with such rapidity as they 
 have in the past, those that are now established, having 
 
 [23] 
 
CHAPTER III. 
 
 secured the confidence of the public, will continue to 
 increase their membership. The growth of monopolies 
 and the tendency of money toward centralization, the 
 organization of syndicates and trusts, which often create 
 false values of many of the necessities and luxuries of life, 
 will inevitably more and more draw the masses of the 
 people into organizations for purposes of self-defense and 
 financial security and advancement. 
 
 [24] 
 
CHAPTER IV. 
 
 Building Association Leagues. 
 
 PURPOSES OF LEAGUES. 
 
 The necessity for greater uniformity of methods, the 
 constant vigilance required to prevent inimical legislation 
 and the concerted action necessary to secure progressive 
 enactments favorable to the development of these associa- 
 tions, led to the formation of so-called leagues, which 
 enable an interchange of views, foster a spirit of mutuality 
 and make for harmonious and concurrent action. 
 
 In England, where building societies have long been in 
 existence, co-operation among these associations has been 
 established by the so-called Congress of Building 
 Societies. These meetings are held annually at designated 
 places, to which delegates from the respective localities are 
 selected to represent these interests. The proceedings 
 issued by this organization have formed a very important 
 historical review of the movement in Great Britain. 
 
 THE UNITED STATES LEAGUE. 
 
 In the United States, in 1892, at a state convention of 
 the Ohio Building Association League, held at Toledo, 
 Ohio, a resolution was introduced for the appointment of 
 delegates to a provisional convention of the various 
 
 [25] 
 
CHAPTER IV. 
 
 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 deemed advisable 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 at 
 Chicago in 1893. The preliminary meeting was held at 
 the Grand Pacific Hotel, Chicago, in April of the fol- 
 lowing year. Temporary officers were elected, who were 
 authorized to make an official call on the state leagues 
 then in existence to become affiliated with this organiza- 
 tion. 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 use- 
 ful organization is now 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 agency. 
 
 THE ORGANIZATION OF STATE LEAGUES. 
 
 The matter of forming state leagues for the protection 
 of the Building, Loan and Savings Associations from 
 inimical legislation, and for the betterment of their 
 methods of doing business, has led to the organization of 
 the various state leagues. In all states where these interests 
 are important, such associations have been successfully 
 
 [26] 
 
BUILDING ASSOCIATION LEAGUES. 
 
 organized. These leagues hold annual conventions, to 
 which all associations are invited to send delegates. It has 
 been the custom to select one or two representatives from 
 each association as delegates to attend these annual gather- 
 ings. A program is arranged with papers and discus- 
 sions which are carefully prepared and from which the 
 movement has derived untold benefits. It is highly 
 important that all associations in each state should be 
 affiliated with their respective leagues. The many impor- 
 tant matters that affect their interests in legislative, judi- 
 cial and commercial ways demand their hearty co-opera- 
 tion at all times. It is also the best channel through which 
 the associations can acquaint themselves with modern 
 ideas and the advanced thought of the movement. 
 
 INTERNATIONAL LEAGUE. 
 
 The organization of an international league that will 
 represent the leading nations of the world is likely to 
 become an accomplished fact in the near future. These 
 conferences, with representations from the various nations 
 of the earth, would do much to advance the general 
 interests along these lines. 
 
 COUNTY, CITY AND LOCAL LEAGUES. 
 
 In many places where there are a number of associations 
 in existence, it has also been the custom to form local 
 leagues. These organizations meet at regular intervals 
 and discuss problems for the welfare of these associations. 
 In some cities, scheming building operators have sought 
 to use building associations as a means to advance their 
 personal interest, but with co-operation among the asso- 
 
 [27] 
 
CHAPTER IV. 
 
 ciations in these localities this abuse has been promptly 
 stopped. There are many advantages to be derived from 
 these organizations. It has the tendency to bring the 
 interests closer together. The strongest organization of 
 this character is the Hamilton County (Ohio) Building 
 and Loan Association League, with headquarters at Cin- 
 cinnati. This league has a splendid working organization, 
 has duly appointed legislative, finance, executive and 
 exchange committees which are selected from a board of 
 trustees elected annually for this purpose. The hearty co- 
 operation of the local league, given not only to the state 
 but also to the United States League, has proven an 
 important factor in legislative as well as other matters, 
 and it is proper to state that most of the important legisla- 
 tion to which reference has been made had its inception 
 with this particular league, and much of its success is due 
 to its prompt action. 
 
 WHAT A LEAGUE CAN DO. 
 
 The work of a league will divide itself into two 
 branches : 
 
 1. The primary purpose in the organization of a league 
 will be to secure favorable legislation and prevent leg- 
 islation inimical to the interests of associations. In pursu- 
 ance of this purpose at the meetings of the league matters 
 for consideration can be sent up from associations in all 
 parts of the state and working under divers circumstances. 
 The league delegates, representing the whole building 
 association interests of the state, can consider these mat- 
 ters specifically and arrange to have them formulated in 
 
 [28] 
 
BUILDING ASSOCIATION LEAGUES. 
 
 the most desirable way. A league being established, it is 
 possible to send a delegation representative of building 
 association interests before the legislature on short notice 
 at any time, whereas, in the absence of such a league, mat- 
 ters of grave importance must go by default, and associa- 
 tion interests suffer in consequence, because it is the busi- 
 ness of no particular person to represent them before the 
 legislature. 
 
 2. A second matter of great importance to associations 
 is the opportunity which the existence of a league affords 
 for the discussion of all questions connected with the prac- 
 tical management of associations. As is well known there 
 is not uniformity of method in disposing of various mat- 
 ters in different associations. In some associations one 
 phase of the business may be handled by a better method 
 than in another. Delegates, coming together for the 
 discussion of these practical questions, may learn much 
 from one another which will be greatly to the advantage 
 of their respective associations. 
 
 There are many other incidental advantages which may 
 arise from the establishment and the regular meetings of 
 such a league which will readily suggest themselves to 
 any thoughtful person. Such Congresses have become 
 a striking feature of co-operative work in England. 
 
 LEAGUE MEMBERSHIP. 
 
 Of course the work of a league cannot be carried on 
 without some expense. Nevertheless, if a league is prop- 
 erly organized and managed, the expenses need not be 
 heavy. To meet these expenses each association which 
 
 [29] 
 
CHAPTER IV. 
 
 becomes a member of the league should pay a small fee. 
 In case additional funds are necessary it is easy to increase 
 the annual dues or to make some other provision for rais- 
 ing them. 
 
 It is very important that every association should 
 become a member of its state league. A state league is 
 charged with protecting the interests of all the associa- 
 tions in the state. In order that this work may be done 
 intelligently all the associations should be represented in 
 the league in order that their respective needs may be 
 properly presented and fully understood. The league, 
 like an association itself, is a mutual and co-opera- 
 tive institution. Associations, therefore, should identify 
 themselves with it so as to make it co-operative in fact as 
 well as in name. Again, since the league protects the 
 interests of every association in the state, each association 
 should bear its proper share of the expenses and labor 
 connected with the work of the league. It is not fair 
 where there are, say, three hundred or four hundred asso- 
 ciations in a state, for twenty or thirty of them to bear 
 the full expense and labor of looking after legislation, 
 perfecting methods, and so on. 
 
 It ought to be borne in mind also that while a league is 
 an organized body its work must be done by individuals. 
 While the expenses of delegates to the league meetings 
 are usually borne by the associations they represent, yet 
 these individual delegates must lose their time from their 
 own private business, and incidentally are put to no little 
 inconvenience and ofttimes expense. Their work if well 
 done is laborious and painstaking. This applies and is 
 
 [30] 
 
BUILDING ASSOCIATION LEAGUES. 
 
 especially true of the officers of leagues. Under these cir- 
 cumstances they should certainly have the cordial and 
 unanimous support of the whole interest which they rep- 
 resent, and thus, in a measure, lightening their burdens, 
 giving them such a standing and prestige that will make 
 them far more influential in securing the ends for which 
 they labor. 
 
 RESUME. 
 
 The greatest benefit accruing from the various meetings 
 of the leagues, is the publicity of the work of these institu- 
 tions. Wherever these meetings are held the daily press 
 has given widespread prominence to their work. Many of 
 the papers that are delivered are published in full, and the 
 general public is becoming better informed through this 
 avenue, so that aside from the great benefits that have 
 been derived from legislative, judicial and other work, the 
 publicity of the work has doubtless been the strongest 
 factor for development. 
 
 [31] 
 
CHAPTER V. 
 
 Legislation and Taxation. 
 
 ITS NECESSITY. 
 
 The necessity for judicious legislation for the control 
 of building, loan and savings associations is apparent. 
 Immense interests to citizens and the state are involved. 
 If the associations are of value at all, they are closely 
 identified with the material and moral welfare of com- 
 munities. It is of the highest importance therefore that 
 their corporate rights and duties should be clearly defined 
 by statute, and that the individual rights of members 
 should be carefully guarded, and their duties and priv- 
 ileges specifically defined. 
 
 The many different people who are chosen to legislative 
 bodies, representing so many different sections and varied 
 interests, with many ideas and diverse views, and not a 
 few of them with no knowledge of or experience in build- 
 ing association affairs, establish conditions out of which 
 have sprung up legislation, some of which has been benefi- 
 cial and others again detrimental. 
 
 Many conservative and useful laws have been enacted, 
 which have materially promoted their interests. On the 
 other hand there has been no little patch-work and super- 
 ficial legislation which sometimes has proved detrimental 
 
 [32] 
 
LEGISLATION AND TAXATION. 
 
 to the cause it was intended to benefit. Owing to the 
 popularity of these associations many of our statesmen, a 
 little too ambitious to legislate, have enacted some imprac- 
 ticable and unwise measures. Fortunately, through 
 experience, the time has arrived when the persons elected 
 to the various legislatures and to congress, are becoming 
 better informed as to the real nature and functions of these 
 associations. The establishment of the United States, 
 state and local leagues has made it possible to reach the 
 lawmakers in a formal, representative, and influential 
 manner. Legislators are growing wiser. If an improper 
 measure is now introduced into any legislature, there 
 are faithful and intelligent guardians of the associations, 
 either within the legislature or without, who will quickly 
 turn the light on and expose it. 
 
 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. 
 important 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 associa- 
 tions their first legal recognition, providing ample 
 opportunities and inducements for their formation, and 
 making full provision for the protection of their members. 
 English societies existed under this act until 1874, when a 
 new act, very liberal and elaborate in its provisions, was 
 passed. 
 
 [33] 
 
CHAPTER V. 
 
 PROVISIONS OF THE ENGLISH LAW. 
 
 The English law seems to have been the basis upon 
 which most of the legislation in this country, relating to 
 building associations, is founded. A brief synopsis of its 
 provisions will therefore be of interest. It declares that 
 any number of persons may establish a society, either 
 terminating or permanent, for the purpose of raising, by 
 the subscriptions of the members in stock or funds, means 
 for making advances to members out of the funds of the 
 society upon security on freehold, copyhold, or leasehold 
 estate by way of mortgage ; and any society under the act 
 shall, as far as it is necessary for the said purpose, 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 
 subscriptions, and with or without accumulating interest, 
 and may repay such funds, when no longer required for 
 the purpose of the society. Societies 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 suc- 
 cession and a common seal, thus dispensing with the cum- 
 brous 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 
 
 [34] 
 
LEGISLATION AND TAXATION. 
 
 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 indorsed upon 
 mortgages are sufficient discharges 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 provi- 
 sions 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 
 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 anal- 
 ysis of the English statutes, and to point out their con- 
 tradictory and inharmonious provisions. It will be suf- 
 ficient to quote a passage from the masterly work* of an 
 
 • The Law of Building and Free Hold Land Societies, 3d edition, H. Sweet 
 & Sons, London, England. 
 
 [35] 
 
CHAPTER V. 
 
 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 it would be dif- 
 ficult 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 pos- 
 sible 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 is yet 
 recent. The associations, which appeared slowly at first, 
 and, later, more rapidly, were organized, partly as unin- 
 corporated, voluntary associations, and partly under char- 
 ters obtained under the general acts of several of the states 
 authorizing the incorporation of beneficial and other such 
 associations. The rapid development of the country led to 
 a like rapid development of building associations, so that 
 legislation soon became imperative. During the years 
 from 1850 to 1860 most of the older states endeavored by 
 legislation to regulate the formation, powers, and manage- 
 ment of building associations. Since 1860 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 associations. 
 
 [36] 
 
LEGISLATION AND TAXATION. 
 
 Building associations are, as a rule, recognized by the 
 different states as a class of corporations distinguished 
 from every other, peculiarly alike in their privileges and 
 disabilities. Some of the early legislation connected there- 
 with may be classed as hasty, having been adopted by leg- 
 islators ignorant and inexperienced in the subject, and 
 with no commensurate precedents for their guidance. But 
 of late years the subject has received more intelligent 
 attention, and many legislators have given much study to 
 the various problems connected with it. 
 
 The various leagues have during the past two decades 
 taken an aggressive stand in the matter of securing proper 
 legislation. As a result, committees on legislation have 
 been appointed, who have drafted laws on this subject. 
 For instance, in the 1890 convention of the Ohio Build- 
 ing Association League a motion was unanimously car- 
 ried instructing the legislative committee to prepare a 
 code of laws relating to building and loan associations. 
 After this committee had carefully prepared such a meas- 
 ure it was submitted in printed form to the associations 
 of Ohio for suggestions and approval, which were 
 properly discussed by the committee and finally, after 
 many modifications to meet the views of those interested, 
 the code was submitted to the legislature for adoption. 
 As a result the combined interests of the entire state 
 asked the legislature for the proper laws relating to the 
 subject, so that in May 1891 the so-called "Corcoran Act" 
 was duly presented and passed. The result of this work 
 was so satisfactory to the building associations of the 
 state that under these beneficent laws the assets of the 
 
 [37] 
 
CHAPTER V. 
 
 associations in this state more than trebled in 19 years. 
 During a period of 17 years there were no amendments 
 made to this law, and the legislative committee of the 
 Ohio Building Association League assumed the defensive 
 against any new measures that were introduced, and suc- 
 cessfully defeated all attempts to alter the laws. It was 
 only after a long period of time that at the Youngstown, 
 Ohio, meeting in 1908, a resolution was passed instructing 
 the legislative committee to introduce a new measure to 
 meet the modern methods demanded by the people, so that 
 in 1909 an amended measure was brought before the 
 Ohio legislature along the same lines, and known as the 
 "Russell Act," which was passed and became a law in that 
 year. 
 
 A number of other states followed the work of the 
 Ohio League in this important matter, and these interests 
 now have very favorable laws on the statute books of the 
 various states and territories. 
 
 LITIGATION. 
 
 Not only has the legislation under which associations 
 have operated been imperfect, but the associations them- 
 selves have unfortunately been organized by persons both 
 inexperienced and uninformed in such matters. It has 
 happened, therefore, that through crude legislation on 
 the one hand, and crude organization on the other, many 
 associations have failed to a greater or less extent in 
 their purpose, and that in most of the states litigation has 
 arisen in consequence. With the enactment of proper 
 
 [38] 
 
LEGISLATION AND TAXATION. 
 
 legislation there has been a wonderful improvement along 
 these lines. 
 
 It would be foreign to the character and purpose ol 
 this work to undertake to give digests of the laws of the 
 different states and territories in reference to associations, 
 or to give an account of the cases arising under these laws 
 and such of the decisions that have been rendered in the 
 different courts. Such matters belong to a work of a 
 legal rather than to a popular character. Members of 
 associations should look to their regular legal advisers 
 for information and instruction upon all mooted or doubt- 
 ful questions of a legal character. 
 
 EXEMPTION FROM TAXATION. 
 
 The question of legislation has received the attention 
 of all those who have the welfare of the movement at 
 heart. During 1891, when the matter of a federal income 
 tax was up for consideration before congress, the asso- 
 ciations received proper recognition in the shape of an 
 exemption from said tax which read as follows : 
 
 "Nothing herein conitained shall apply to building and loan associa- 
 tions or companies which make loans only to their shareholders." 
 
 During 1898, the time of the Spanish-American War, 
 when the Stamp Act was passed by Congress, the associa- 
 tions were properly exempted from this tax, the exemp- 
 tion clause reading as follows : 
 
 "Provided, further. That stocks and bonds issued by co-operative 
 building and loan associations, whose capital stock does not exceed 
 $10,000, and building and loan associations, or companies, which 
 make loans only to their shareholders, shall be exempt from the tax 
 herein provided." 
 
 [39] 
 
CHAPTER V. 
 
 In 1909 the tax on corporations was passed by Congress 
 and after strenuous efforts the building, loan and savings 
 associations were exempted from this tax, the exemption 
 reading as follows : 
 
 " * * * * Nor to domestic building and loan associations organized 
 and operated exclusively for the mutual benefit of their members." 
 
 Thus it will be seen that during the past two decades 
 the Congress of the United States has consistently granted 
 this movement exemptions, due to the fact that their 
 beneficent work along the lines of home building and co- 
 operative savings were properly entitled to this recog- 
 nition. 
 
 In nearly all of the states we find special legislation 
 granting associations special privileges and exemptions 
 from taxation on charters and other items which have been 
 of the greatest importance. However, in some states, 
 notably Michigan and Kentucky, the tax on the capital 
 stock of new incorporations has almost prohibited the 
 organization of new institutions, and those that are in 
 existence, when in need of additional capital stock, find it 
 an onerous provision. This should be repealed without 
 delay. 
 
 EXEMPTING HOMESTEADS FROM TAXATION. 
 
 Among the most important legislative measures that 
 the future will develop, will be that of giving home 
 builders exemption from taxation. The question is now 
 being agitated that constitutional amendments should be 
 submitted to the people, exempting the homesteads in the 
 respective states from taxation to the amount of $3,000. 
 
 [40] 
 
LEGISLATION AND TAXATION. 
 
 Such provision should be made to assist the wage-earner 
 to procure a home. The matter will likely be agitated by 
 the building, loan and savings association officials to such 
 an extent as to bring about popular support to this impor- 
 tant measure. 
 
 THE ASSOCIATION IN REALITY A CLEARING HOUSE FOR ITS 
 MEMBERS. 
 
 The assets of a building association are made up of the 
 individual holdings of its members and belong to each of 
 them, to the amount which they have contributed to a 
 general fund. Therefore the association in reality becomes 
 a clearing house for its membership, and has no assets 
 on which it can realize, such as other financial institutions 
 have, so from the very nature of its co-operative character 
 it has nothing that should be taxed outside of its regular 
 office fixtures, books, etc. As these have but little com- 
 mercial value, there is no valid reason that can be 
 advanced why the association should be taxed in any form. 
 
 STATESMEN WHO HAVE BEEN OF DIRECT BENEFIT TO THE 
 MOVEMENT. 
 
 With the importance and growth of these associations 
 it was natural that legislation would follow that might 
 prove inimical to their interests, so that the associations at 
 times have been compelled to apply to men in public life 
 to give their aid to benefit the work of co-operative sav- 
 ings and home building. 
 
 Among the many notable men who have aided in this 
 work may be mentioned the Hon. John Sherman, Hon. 
 
 [41] 
 
CHAPTER V. 
 
 J. B. Foraker and the Hon. Charles Dick, of Ohio, Ex- 
 President Roosevelt at the time he was governor of the 
 state of New York, and President Wm. H. Taft, in addi- 
 tion to a number of others. To these gentlemen the build- 
 ing association interests of the United States are indebted 
 for their valuable services rendered at times when legisla- 
 tion was pending that affected these interests. Without 
 their support it is doubtful if the associations could have 
 succeeded in securing the exemptions that have been 
 granted. 
 
 TAXATION. 
 
 In a paper read before the United States League, Hon. 
 Julius Stern, of Chicago, referring to the necessity for and 
 the justification of the exemption of local building and 
 loan associations from taxation, states the following : 
 
 "Nevertheless exemption laws in matters of taxation* will on 
 examination be found to be as old as the laws imposing taxes them- 
 selves, an-d 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 preceded 
 them. An inquiry as to the propriety of exemptions in general must 
 therefore be narrowed down to an inquiry 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, stability, and sustaining power of 
 the people, which would naturally follow from such exemptions. 
 
 "It has been the practice of American governments, both state ana 
 municipal, to embody in their constitutions and statutes laws exempt- 
 ing property devoted to charitable and educational uses from taxa- 
 tion, on the theory that whatever advanced the education of the people 
 conduced to their greater progress and wealth-producing power, and 
 that whatever was devoted to charitable uses should escape the exac- 
 tions of the tax gatherer, because it was not productive of income to 
 
 [42] 
 
LEGISLATION AND TAXATION. 
 
 those who expended the money, and possibly also because of the 
 moral sentiment before alluded to. 
 
 "It must be conceded, however, that it is good economics 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 taxation that can be devised are such as 
 place skill, industry, and frugality at a disadvantage in the struggle 
 for existence. 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 government by way of providing a 
 fruitful field for future taxation, indirect or direct, has been prac- 
 ticed 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 ot 
 property in proportion to its value be made to bear its due and equal 
 share of the burden; yet, if it be perceived that by minrimizing its 
 weight in certain 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 of 
 taxables, then it is the part of wisdom 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 expedient 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 taxa- 
 tion ; Massachusetts, New Hampshire, and Connecticut tax the earn- 
 ings only of their shipping in foreign trade, and under the decision 
 of the United States Supreme Court, Pennsylvania imposes no tax on 
 its shipping in interstate or foreign trade. The heavy taxes levied 
 for limited periods on the importation of certain foreign goods for 
 
 [43] 
 
CHAPTER V. 
 
 the protection of infant industries at home, seek their justification 
 and excuse on this 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 in- 
 creasing 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 salvation. As corporate entities, they need exemption front 
 taxation, — because the property which stands for and as their assets, 
 already pays its just and equitable share to the government for the 
 protection it receives therefrom in the shape of taxes paid by the 
 individual shareholders; — and because as corporations purely co- 
 operative 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 institu- 
 tions which will create new wealth for its future support, the exemp-i 
 tion of the local building 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 
 
 [44] 
 
LEGISLATION AND TAXATION. 
 
 they are absolutely non-negotiable ; not having been given by one 
 individual to another, in 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 they 
 will continue to co-operate with them, in accordance 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 a 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 asso- 
 ciation could not place its entire collection of bonds and mortgages 
 upon the market, and realise a single dollar by the sale thereof; it 
 cannot assign them ; it cannot dispose of them in any way. They 
 represent, in each such transaction, a mere agreement between two 
 sets of stockholders, or between the borrowing stockholder in the 
 particular transaction and itself (i. e,, the aggregation of all the stock- 
 holders), 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.' 
 
 "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 definition of the legal text writer, as to the essence of 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 valuable consideration. The bonds and mortgages of a build- 
 ing and loan association are not property of such a character; as 
 
 [45] 
 
CHAPTER V. 
 
 before stated, they are absolutely valueless, except 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 performance 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 government grows out of the whole 
 service rendered by the government to the individual ; and that as a 
 return service (or tax) is connected with and limited by the 
 exchanges which the individual makes under the eye of the govern- 
 ment, 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 building association 
 to one of its co-operative members of moneys of his stock, which he 
 pledges to said association with the promise to continue to make 
 installment payments thereon in the same manner and amount as he 
 had been making as a simple stockholder, simply 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 transaction there are no exchanges, in the commercial accep- 
 tation of that word ; and as those securities are not transferable by 
 the association for value, or otherwise, and are held simply for the 
 performance of a promise made, they cannot en<ter into the subject of 
 exchanges; hence, there is no possible justification for the exaction 
 of a tax thereon by the governing power. 
 
 "Thus viewed from economic, ethical, or legal standpoints, the 
 exemption from taxation of local building and loam associations 
 appears to be justified; and as these associations are the wisest, 
 best, and, hitherto, most practical school of education for the great 
 wage-earning class which our civilization has evolved, and a school 
 which rests upon a membership of those who can contribute, 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." 
 
 [46] 
 
CHAPTER VI. 
 
 Forms of Associations. 
 
 THE TERMINATING PLAN. 
 
 The building association, since its introduction into the 
 United States fifty years ago, has appeared in three 
 distinct forms. 
 
 The first associations were on the terminating plan. 
 These were useful. They have now largely disappeared, 
 having given way to more popular forms, though a few 
 are still in existence. 
 
 In a terminating association all the stock is issued as 
 of one date. Such an association is organized on the 
 presumption that all the stock will be subscribed at the 
 opening meeting. This, however, is seldom done. The 
 consequence is that shares sold after the first meetings 
 must be sold at such prices as to make them equal in value 
 to those already issued. To do this a sum must be charged 
 equal to the amount already paid in as installments by the 
 subscriber to the original shares. If the regular dues on 
 shares should be one dollar per week, a person subscribing 
 for a share after the association has been running ten 
 weeks, must pay ten dollars for the share. In like manner, 
 if the association has been running for a longer period he 
 must pay an additional dollar for each additional week. 
 
 [47] 
 
CHAPTER VI. 
 
 Moreover, if he does not subscribe until after profits have 
 been declared, he must pay such additional amount on his 
 shares as will correspond to the earnings of the original 
 shares up to that time. The same rule holds through the 
 entire existence of the association, each year making it 
 more difficult to enter. After an association organized on 
 this plan has run for a time, it is impossible for many 
 persons who would gladly become members to raise a 
 sufficient sum of money to pay up the back installments, 
 the initiation fees, the accrued profits and other incidental 
 expenses. In its practical workings, therefore, an associa- 
 tion organized on this plan is not well adapted to meet the 
 conditions of that particular class of persons who most 
 need such an organization and are most likely to be 
 benefited by it. 
 
 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 of 
 accumulated profits equals the par value of all the shares, 
 the association terminates, and its affairs must be wound 
 up. Each stockholder who has not borrowed his money 
 in advance receives the full value of his shares. To those 
 who have secured their money in advance their mort- 
 gages, canceled and receipted, are returned in full. 
 
 THE SERIAL PLAN. 
 
 The second form of association is the serial. It is a 
 development of the terminating. By some this is called 
 the "Philadelphia" or 'Tennsylvania" plan. In this form 
 the stock is issued in series — as first series, second series, 
 
 [48] 
 
FORMS OF ASSOCIATIONS. 
 
 and so on. The association usually is chartered for a certain 
 number of years, and with a specified amount of stock. 
 Instead of selling all the stock as of the same date it is 
 divided into series, one series being sold as of the date 
 of the beginning of the first term, the second series as of 
 the date of the beginning of the second term, and so on, 
 until all the shares are sold. The serial issue may be 
 monthly, quarterly, semi-annually, annually, or otherwise, 
 according to what may be fixed as the length of the term. 
 At the end of the first term the assets of the association 
 are divided by the total number of shares in the first series, 
 and the value of these shares at this time is thus ascer- 
 tained. The second series is then issued and rated at par 
 value. The shares of this second issue run in the same 
 manner as those of the first. At the end of the second 
 term the sum total of the income of the term is divided by 
 the total number of shares in both series, and the equitable 
 withdrawal value of shares in each series is ascertained. 
 Then the third series is issued, and so on to the end. It 
 will be seen that under this plan the older the series the 
 greater the value of the shares. In some serial associa- 
 tions, members may join one of the older classes by pay- 
 ing in what would be the total amount of dues and a pro- 
 portionate share of the profits, that is, the full withdrawal 
 value of the shares at the time of payment. Sometimes, 
 also, on the issue of a new series old shares are with- 
 drawn and their value taken up in the shares of the new 
 series. 
 
 Usually after an existence of from eight to ten years 
 the first series reaches its ultimate value, — that is to say, it 
 
 [49] 
 
CHAPTER VI. 
 
 matures. The members holding these shares then receive 
 their full value in cash, and borrowing members, whose 
 mortgages become released with the maturing of the 
 series, receive their mortgages canceled. The association 
 now has reached the period when each series of shares 
 must be paid up as it matures. If it is running success- 
 fully it secures an extension of its charter. It then con- 
 tinues issuing new series of stock at the beginning of each 
 term. If its full amount of stock has been subscribed each 
 new series now takes the place of the old series that has 
 matured, so that the total number of shares thenceforth 
 continues the same. 
 
 This plan may be compared to a piece of machinery 
 which consists, say of ten cog wheels, which operate one 
 grand revolving wheel. These ten smaller wheels are 
 numbered from one to ten and are inserted one after 
 another in their regular order. 
 
 When number one wears out at the end of ten years a 
 new number one is inserted in its place which will run ten 
 years. At the end of the next year a new number two is 
 inserted, and so on, continuously. And thus the old 
 machine is kept constantly in repair and in perfect operat- 
 ing form. 
 
 It will be seen that the serial association is a great 
 improvement over the old terminating plan, inasmuch as 
 it is much more practicable and adaptable in its operations 
 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 elements of permanency and perpetual 
 operation. 
 
 [50] 
 
FORMS OF ASSOCIATIONS. 
 
 This plan originated in the city of Philadelphia, where 
 building associations have had their greatest demonstra- 
 tion of practical usefulness. From Philadelphia it spread 
 abroad until it became the prevailing form in the conduct 
 of associations throughout the country. 
 
 THE PERPETUAL OR PERMANENT PLAN. 
 
 As the building association became better understood 
 and more popular, a demand arose for some form of asso- 
 ciation more pliable and adaptable than either the term- 
 inating or the serial form. A new modification then 
 appeared which has been styled the perpetual plan. This 
 had its origin in Cincinnati and Ohio, where it has been 
 very successful and popular, so much so that it has spread 
 through other states. Under this plan associations are 
 granted perpetual charters, the amount of their capital 
 stock being fixed at a certain sum. They are allowed to 
 begin operations as soon as a certain portion of the stock 
 is subscribed. After the association is in operation new 
 members are allowed to enter at any time on an equality 
 with the original subscribers, the stock of each member 
 dating from the time of his entry. Thus the business of 
 the association runs along from year to year until finally 
 all the stock is subscribed, when an additional amount of 
 capital stock may be added. After a time the shares first 
 issued begin to reach their full value. 
 
 As they thus mature their owners draw out their money 
 — if they have not borrowed it in advance — and their 
 shares are canceled and their membership ceases. If they 
 have borrowed money in advance their mortgages 
 
 [51] 
 
CHAPTER VI. 
 
 are returned to them, receipted in full. If a member, whose 
 stock has thus matured has not borrowed his money in 
 advance and does not wish to draw it out, a certificate of 
 paid-up stock is issued to him and he leaves his money in 
 the association as a matter of investment. 
 
 Under this plan members have the same privileges of 
 withdrawal as of entry. They may withdraw at any time 
 by complying with the rules of the association, receiving 
 their equitable share of the assets. Experience has shown 
 that it is possible so to work out the plans for the calcula- 
 tion of dividends, premiums, interest, etc., and so to 
 arrange all the other details of the operations of an asso- 
 ciation, as to be able to treat each share equitably upon its 
 own merits without in any way interfering with the 
 interests of any other share. 
 
 This form of association is a still further development 
 of the original plan. It adapts the operations of such a 
 co-operative society to the actual necessities and the pos- 
 sible emergencies of such persons as need its benefits. In 
 a sense the introduction of this plan marked the beginning 
 of a much more general popularity of associations. Since 
 its introduction they have begun to spring up in large 
 numbers in all sections. It seems likely that this will 
 become the general form which building and loan associa- 
 tions will eventually adopt. Nevertheless many and 
 marked improvements are still to be expected. 
 
 In an address in favor of the permanent plan before the 
 U. S. League, Mr. K. V. Haymaker, of Defiance, Ohio, 
 makes the following argument : 
 
 [52] 
 
FORMS OF ASSOCIATIONS. 
 
 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-opera- 
 tion : 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 meml^ers 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 organiza- 
 tion, and an additional sum equal to a pro rata share of the accu- 
 mulated 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 up the back dues and accumulated 
 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 usefulness of the 
 association to the members who joined at the commencement or 
 shortly thereafter. The inflexible plan of the association on one 
 hand and the poverty of the prospective members on the other, kept 
 such association weak, puny, and short-lived. 
 
 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" idea of prolonging the life 
 and extending the influence of the terminating association. The 
 officers, managers, directors, and all the necessary machinery for the 
 conduct of a new association were already organized and in work- 
 ing order managing the affairs of the old one. Without greatly 
 increasing their labors the same officers could readily manage 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 became the natural and logical step for the officers of the 
 association to heed the demand of their neighbors for additional 
 accommodations in this line, and organize a new association to be 
 conducted by them precisely as the original association 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- 
 
 [53] 
 
CHAPTER VI. 
 
 ntess 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 objectional features which seriously interfered with the useful- 
 ness 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 posi- 
 tion where he could easily make larger 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 original subscription provided, or at a faster 
 rate than his agreement contemplated, and at the same time made it 
 compulsory on him to keep up his required payments even though 
 he found later on that it would be an intolerable burden for him to 
 do so. 
 
 Another serious objection to the terminating plan was the fact that 
 it contemplated that each stockholder should at some time become 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 association would 
 accumulate and lie idle, after those desiring loans had been accom- 
 modated, because none of the membership had use for the money. 
 To obviate this difficulty such associations usually determined by lot, 
 which of the non-borrov*'ing members should be required to with- 
 draw 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 out 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 opportunity 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 stock- 
 holders of the association and be entitled to the privilege of bor- 
 rowing. In some cases shares thus forced out were not given their 
 
 [54] 
 
FORMS OF ASSOCIATIONS. 
 
 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 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 withdraw- 
 ing members, and the other being unjust to the remaining members. 
 
 The serial plan does not abolish or obviate these difficulties, but 
 merely mitigates the evil 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 keeping 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 orhe 
 objectionable feature of the terminating association 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 even value of the shares, and he must not become 
 delinquent for t-he same reason. He must gauge his payments, not 
 by his own circumstances and ability to pay, but by what his co-mem- 
 bers 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 perplex- 
 ing problems which confront the managers of the serial association. 
 Whenever you find a meeting of building association men gathered 
 together, if their companies are organized on the serial plan, you will 
 find a great portion of their time spent in discussing 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 building 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 
 
 [55] 
 
CHAPTER VL 
 
 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 date. 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 complica- 
 tion. For weeks, perhaps months ahead, funds must be retained in 
 the treasury instead of being used to fill pending applications for loans. 
 This idle money earn-s 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 moniey 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 disagreeable 
 and perplexing dilemmas to a building association. 
 
 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 for 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 
 distribution of profits. In the development and conduct of asso- 
 ciations under this plan in Ohio, building association managers have 
 learned that the more liberal and equitable 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 supposed 
 to be essential to building association management have entirely dis- 
 appeared. Among these may be mentioned the fact that few associa- 
 tions int Ohio today exact any membership or initiation fee from 
 persons subscribing for stock. The charge of a nominal sum, usually 
 25 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 members to keep up their 
 regular dues by imposing a fine for each delinquency is fast dis- 
 appearing. A large and increasing number of our associations have 
 
 [56] 
 
FORMS OF ASSOCIATIONS. 
 
 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 punish- 
 ment be merely the assessment of a fine by a building and loan asso- 
 ciation, his duty will be don« grudgingly, unwillingly, and with 
 bad grace. 
 
 The American people dislike to be driven, and the feeling that mem- 
 bership in a building association will compel a man to maintain his 
 payments regularly will result in keeping more men out of member- 
 ship entirely, and will result in greater loss in business to an associa- 
 tion than all it can possibly gain from a rigid enforcement 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 exception 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 25 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 permitted, however, to pay at any time any additional sums in 
 excess of this required payment, which his circumstance and inclina- 
 tion 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 fine for delinquency. Any extra sum paid in 
 excess of the required minimum payment is credited to him as pay- 
 
 [57] 
 
CHAPTER VI. 
 
 ments in advance, and he is not treated as delinquent until the time 
 has elapsed for which these extra sums paid the dues in advance. 
 
 These provisions prove a great incentive to the average borrower to 
 pay more than his regular dues, and pay off his loan 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 pay- 
 ments, less the amount deducted therefrom for 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 shall each year be set aside 
 for the funds of contingent losses, until such fund shall equal at 
 least five per cent of the outstanding loans. The balance of the earn- 
 ings, after paying the expeness, 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 greatest 
 liberality with their membership in the manner 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 treatm.ent 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 desires, 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 withdraw 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 the right 
 to further dividends shall cease with said notice. When such with- 
 drawal is total the withdrawing 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 applica- 
 tions for withdrawal at any time exceed the weekly receipts, such 
 applications shall be filed in the order in which they are received and 
 
 [58] 
 
FORMS OF ASSOCIATIONS. 
 
 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 corb- 
 venience or ability, which, also, permits him to withdraw his pay- 
 ments and accumulated profits whenever he desires to do so ; together 
 with that feature of the plan which permits new members to sub- 
 scribe 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- 
 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 applica- 
 tions for withdrawal 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 inter- 
 vals where enormous sums must be met at one time. Such events 
 interrupt 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 s«ch notice, enables the association to meet such 
 contingencies without loss. 
 
 It is a disagreeable state of affairs to have the application for 
 withdrawals 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 makes 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 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 
 
 [59] 
 
CHAPTER VL 
 
 suffering a loss such as serial associations are required to stand while 
 accumulating funds to meet the withdrawal of a whole series. 
 
 The entire plan of this permanent building and loan system is 
 simple, logical and reasonable. It makes each stockholder practically 
 independent of his fellow. If in a group of stockholders one should 
 prove more successful, more enterprising, or more economical than 
 his fellow, 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 riotous living rather than 
 accumulating in a building and loan association. Each memiber 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; but his dividends do not increase; they 
 remain at the same figure each dividend day until he again resumes 
 his payments. 
 
 Reference has only been made to some of the leading features which 
 seem to make the permanent plan of issuing stock in a building and 
 loan association far superior to any other plan that has as yet been 
 devised. The friends of this system do not claim that it has reached 
 perfection, or that it is without faults, but do claim that it possesses 
 many points of excellence, which renders 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 building and loan associations everywhere, believing that the intro- 
 duction of this system will widen the field, extend the influence, and 
 render more popular the building and loan system of accumulating and 
 investing money, and believe that the extension of the building and 
 loan system will have a beneficent effect in many ways, and will tend 
 in great measure to solve happily many vexed problems which now 
 disturb society, and even threaten the life of our government itself. 
 
 [60] 
 
CHAPTER VII. 
 
 How to Organize. 
 
 NECESSARY CONDITIONS. 
 
 In seeking to establish a building association, it is neces- 
 sary to bear in mind the conditions, which have already 
 been stated, which are essential to make such a co-opera- 
 tive undertaking successful. There must be a community 
 of wage-earners, or of persons with small incomes, and 
 the element of permanency in the local enterprises from 
 which the incomes of the community are derived. This 
 element of permanency is usually found in the extensive 
 manufacture of staple articles, in the sale of the same in 
 populous districts, in market-gardening and other forms 
 of agricultural pursuits, in mining and in numerous other 
 industrial occupations. 
 
 Building associations have so multiplied in some com- 
 munities that there is already competition among them. 
 Where numerous associations already exist of course the 
 question must be carefully considered as to whether there 
 is a real demand for another. Associations are sometimes 
 brought into existence, not so much from the actual wants 
 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. Some person 
 
 [61] 
 
CHAPTER VII. 
 
 engaged in trade of some character may desire to organize 
 an association and have it meet at his place of business 
 or in his vicinity so as to draw in custom for him. Some 
 attorney may take an active part in the organization of an 
 association in order to increase his clientage. Some one 
 interested in a real estate transaction may organize an 
 association in order to find a market for his lands. These 
 motives are all well enough in their way, provided there 
 is back of them a real need for an association on the part 
 of the people themselves who are to compose it. 
 
 As matters now are in some communities it would seem 
 far more proper to consider the question of consolidation, 
 and the reduction rather than the increase of the number 
 of associations. 
 
 PRELIMINARY STEPS. 
 
 Great importance attaches to the first steps taken 
 toward the organization of an association. Unless a good 
 foundation is laid in the beginning the enterprise will 
 most likely prove a failure. Great care must be taken to 
 have only trustworthy men connected with the initial, as 
 well as all subsequent proceedings. 
 
 When the proper persons have been interested in the 
 movement it is well for them to attach their names to an 
 agreement to share equally in the liability for the pre- 
 liminary expenses, such as advertising, rent of place of 
 meeting, blank books, books, etc. A public meeting of 
 those interested should then be called in some convenient 
 and respectable place. At this meeting temporary officers 
 should be chosen. These consist usually of a chairman, a 
 
 [62] 
 
HOW TO ORGANIZE. 
 
 secretary, a treasurer, and an attorney. These should be 
 persons of some influence in the community, and should 
 have had some experience in conducting public meetings. 
 Some one should be present at such meeting who is pre- 
 pared to make a clear explanation of the purposes and 
 workings of a building association. After this explanation 
 is made the subject should be thrown open for general dis- 
 cussion under the usual parliamentary rules. 
 
 It may not be possible at the first meeting to determine 
 finally in reference to the advisability of attempting to 
 organize an association. The meeting may decide to 
 appoint solicitors to make a preliminary canvass, so as to 
 discover the probability of securing a sufficient number of 
 subscribers to justify the attempt. For this or other satis- 
 factory reasons it may be necessary to hold a number oi 
 preliminary meetings before attempting a permanent 
 organization. 
 
 It will not be out of place to caution that much care 
 should be exercised in keeping the preliminary expenses 
 as low as possible. Services rendered by individuals 
 should generally be gratuitous, and the expenses for neces- 
 sary supplies may be made merely nominal. 
 
 CHOICE OF NAME. 
 
 When it shall have been decided finally to proceed with 
 the organization, the first thing to be done is to choose a 
 name. In making this choice the following matters must 
 be borne in mind : ( 1 ) That the name must in its form 
 correspond to the requirements of the statute under which 
 the association is to organize ; (2) It must not be identical 
 
 [63] 
 
CHAPTER VII. 
 
 with, or bear a close and misleading resemblance to the 
 name of some other similar organization in the place 
 where organized; (3) It must not be of such general 
 descriptive character that the association cannot by using 
 it acquire exclusive rights in it; (4) The name must not 
 be improperly or prejudicially assumed, and must not be 
 misleading in its form or character. 
 
 CAPITAL STOCK. 
 
 It will be necessary also at an early stage in the pro- 
 ceedings to determine upon the amount of capital stock 
 of the proposed association and the number and value of 
 shares. This is necessary in order that the subject may be 
 canvassed intelligently in the community. The number 
 and amount of shares should be determined by the local 
 circumstances. In larger cities the capital stock of asso- 
 ciations varies from $200,000 to $5,000,000. Shares 
 range from $100 to $500 each. The regular dues or stock 
 payments are generally 25 cents, 50 cents, or $1.00. In 
 the smaller towns the capital stock of associations varies 
 from $50,000 to $1,000,000, shares being from $100 to 
 $500 each, payable in weekly or monthly installments. 
 The number of shares which one member may hold should 
 be restricted within reasonable limits so that the associa- 
 tion cannot be controlled by a few large shareholders. 
 This is especially necessary when stockholders are allowed 
 as many votes as they have shares of stock. In some states 
 the laws provide that no stockholder may vote more than 
 a certain number of shares, — twenty for instance, — 
 though he may own as many as he desires. 
 
 [64] 
 
HOW TO ORGANIZE. 
 
 The name of an association and the amount and value 
 of stock are of course finally recorded in the constitution 
 and articles of incorporation. The whole subject of 
 Capital Stock, which is of great importance, is fully dis- 
 cussed in its appropriate place in another part of this 
 work.* 
 
 THE CONSTITUTION. 
 
 The most important matter connected with the organ- 
 ization of an association is the framing of the rules or 
 articles under which it is to operate. This task should be 
 placed in the most competent and experienced hands, and 
 their work should be carefully scrutinized before adop- 
 tion. That part of the rules which is to become the 
 organic law of the association, the constitution, in its 
 essential features at least, in some states must pass under 
 the inspection and approval of the incorporating author- 
 ities, and in fact form part of the articles of incorporation. 
 As the constitution becomes the fundamental law, it 
 should be framed with a view to permanency, allowing 
 only the most imperative necessity, and, as nearly as pos- 
 isble, unanimity to change it. for this reason its provi- 
 sions should be well understood and be clad in plain 
 language, devoid of clouded and doubtful phrasing. All 
 minor regulations should be omitted therefrom and be 
 reserved for the by-laws and rules of business. 
 
 Not only should the constitution have the utmost care 
 and forethought on the part of those drafting and adopt- 
 ing it, but it should, if possible, be based upon some model 
 
 See Chapter VIII. 
 
 [65] 
 
CHAPTER VII. 
 
 which has stood the test of experience. It is found that 
 much the larger part of the litigation that has arisen in 
 the different states in connection with building association 
 affairs, is owing to the careless and crude manner in which 
 constitutions and rules are framed. Courts have com- 
 plained much about the negligence displayed in the word- 
 ing of these important documents. It is not uncommon 
 indeed to find contradictory provisions in the same consti- 
 tution relating to important matters. 
 
 BY-LAWS. 
 
 After the constitution has been adopted, a set of by- 
 laws should be prepared for the internal government of 
 the association in accordance with the constitution and 
 with generally accepted parliamentary usage. Many asso- 
 ciations make the mistake of including all their rules in 
 the constitution. The by-laws are not of an organic char- 
 acter but simply express an agreement among the mem- 
 bers as to how the different parts of the work of the asso- 
 ciation should be carried on. They should therefore be 
 kept separate from the constitution so that they may be 
 changed and modified from time to time as may suit the 
 convenience or necessities of the association and its officers 
 and members. 
 
 The by-laws must conform to the constitution of the 
 association and to the general principles of common 
 justice and equity and must be reasonable in their require- 
 ments. A by-law is presumed to be enacted by the com- 
 mon consent of all the members of the association. If 
 therefore a by-law shall be enacted that infringes upon the 
 
HOW TO ORGANIZE. 
 
 common rights, or the rights established by contract of 
 any member, it is void. In like manner, if a by-law is 
 repealed and thus injustice is done to any member whose 
 rights were before protected by the by-law, such action is 
 void. The enactment of new by-laws cannot add addi- 
 tional requirements to contracts in existence before their 
 enactment. By-laws must not be enacted which, from 
 their nature, cannot be enforced, or which are evidently of 
 a "vexatious, nugatory, and oppressive" character. Nor 
 can a by-law be enacted which has the effect of restricting 
 any member from legal rights and remedies.* 
 
 INCORPORATION. 
 
 The different states have different methods of provid- 
 ing for the incorporation of stock companies for business 
 and beneficial purposes. A number of the states have, in 
 addition to this, made special provision for the incorpora- 
 tion of building associations, treating them as a special 
 class of corporations with special powers and disabilities. 
 After the constitution has been adopted, or sometimes 
 even before this has been done, articles of incorporation 
 should be prepared and forwarded to the proper author- 
 ities for acceptance and record. Much care should be 
 taken to secure, as incorporators, the best and most 
 influential persons available. A certain amount of stock 
 must be subscribed, usually ten per cent before the associa- 
 tion can be incorporated. 
 
 There are different methods of incorporation in the 
 different states. They are known as incorporation by 
 
 * In the Appendix will be found form for Constitution and By-Laws. 
 
 [67] 
 
CHAPTER VII. 
 
 voluntary association, by special act of the legislature, by 
 decree of court, and by letters patent from the executive. 
 The drafting and securing of articles of incorporation 
 should 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 names the officers of the 
 association and the time and method of their election. 
 As soon as the constitution and by-laws have been adopted 
 it will be necessary to complete the permanent organiza- 
 tion of the association by the election of the prescribed 
 officers according to the method laid dov/n in the constitu- 
 tion. The same care must be exercised here as in all other 
 steps incident to the formation of an association. The 
 officers are to occupy very responsible positions and should 
 be men possessing ability, integrity, and popularity. Prac- 
 tically they will have full control of the affairs of the 
 association. Its success will depend very largely upon the 
 attention they give to its business. The interests of share- 
 holders will be promoted or injured according to the 
 degree of faithfulness and ability with which they dis- 
 charge their duties. 
 
 HEADQUARTERS. 
 
 Before an association can go into regular operation, it 
 will have to establish permanent headquarters. These 
 should be inexpensive, centrally located, convenient, clean, 
 
 See Chapter on Forms. 
 
 [68] 
 
HOW TO ORGANIZE. 
 
 and respectable. Many an association has failed to reach 
 its greatest degree of usefulness simply because it made a 
 mistake in locating its headquarters. 
 
 The headquarters should be fitted up inexpensively but 
 conveniently. There should be desks, tables, and seats 
 sufficient for the transaction of the business of the associa- 
 tion. 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 of its officers. The 
 officers are made responsible for the custody of the prop- 
 erty of the association, and are compelled to give bonds 
 for its security. They should be provided with a safe place 
 of deposit for everything for which they are made 
 responsible. 
 
 After the headquarters have once been established it 
 should be understood that they constitute the regular 
 business office of the association, and that all communica- 
 tions, notices, etc., intended for the association should be 
 addressed to these headquarters, and that they will, if so 
 addressed, receive prompt attention. This implies, of 
 course, that there shall always be some one in, or adjacent 
 to, the headquarters to receive such communications, and 
 that the officers — the secretary particularly — will visit 
 or communicate with the one in charge of the meeting 
 place, to give personal attention to any business that may 
 require it. 
 
 All members must be notified promptly of any change 
 in the place of meeting. 
 
 An attractive sign should be conspicuously displayed at 
 the headquarters, advertising the association. This sign 
 
 [69] 
 
CHAPTER VII. 
 
 should give the name of the association, the number and 
 the value of shares, the rate of payments required, and the 
 dates and the hours of the meetings. Many an associa- 
 tion has received new members through the display of an 
 appropriate sign. Directors should not be over-econom- 
 ical in this connection. Money judiciously expended in 
 advertising an association will bring desirable returns. 
 
 In England the statutes require building societies to 
 display signs in some such form as described above. On 
 these signs, and on all the printed matter, the word 
 ''Limited" must always follow the title of the society. 
 This is intended to show that the liability of shareholders 
 is limited to their actual shares in the society. 
 
 MEETINGS. 
 
 Meetings should be held generally in the evening, that 
 evening being selected which is most convenient to mem- 
 bers and officers. It is well, if possible, to select an evening 
 on which no other association meets in the vicinity. Mon- 
 day or Saturday evening is usually the best for meeting, 
 for workingmen are generally paid on those days and like 
 to make their weekly deposits at once. From October to 
 April the hour for receiving dues, etc., may be from 7 :30 
 to 8 :30 P. M., and from April to October from 8 to 9 P. 
 M. After this time the directors hold their regular meet- 
 ings. But this question should be governed entirely by 
 local circumstances and the convenience and wishes of 
 shareholders. 
 
 [70] 
 
HOW TO ORGANIZE. 
 
 NEW REGULATIONS. 
 
 The suggestions of this chapter are necessarily of a 
 general character. In each state they must be carried out 
 according to the conditions established by the existing 
 statutes. So many new laws are being enacted that 
 changes are necessary in the details of the organization 
 and work of associations from time to time. 
 
 |7I| 
 
CHAPTER VIII. 
 
 Stock and Stockholders. 
 
 STOCK AND SHARES. 
 
 The stock of a corporation is defined to be "that money 
 or property which is put into a single corporate fund by 
 those who, by subscription therefor, become members of 
 the corporate body." This common fund or stock is 
 divided into equal parts called shares. The number and 
 value of shares into which stock is divided is fixed by the 
 general statutes and by the rules of the association. A 
 person becoming a member of a corporation subscribes for 
 a certain number of these shares and is known as a share- 
 holder or stockholder. This subscription binds him to pay 
 into the common fund in regular installments the sum 
 represented by all of the shares for which he has sub- 
 scribed. The number of shares one member may hold is 
 usually fixed by the constitution or by-laws. In some 
 states the statutes fix the number of shares that may be 
 held by any one person or corporation. In some instances 
 no limit is fixed to the number of shares that may be held, 
 but only a specified number may be voted. The minimum 
 amount of stock to be taken — that is to say, the number of 
 shares for which subscriptions must be made before an 
 
 [72] 
 
STOCK AND STOCKHOLDERS. 
 
 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 
 originally 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 
 established 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 expenses. An 
 increase of stock must always be made in strict accordance 
 with the legal provisions, and should therefore be under- 
 taken only under competent legal advice. There can be no 
 uniform rule laid down concerning increase of stock. All 
 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. 
 
 STOCK AS 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 
 
 [73] 
 
CHAPTER VIII. 
 
 exclusively 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 deliv- 
 ery." The method of transfer should always be specified 
 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 one or 
 more of its shares of 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 $200 to $500. This 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 
 
 [74] 
 
STOCK AND STOCKHOLDERS. 
 
 stock of the par value of $500 has simply made an agree- 
 ment 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 pay- 
 ments, together with the accrued dividends thereon, shall 
 amount to the sum stipulated as the full value of the share. 
 These periodical installments 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 accumulated up to that date and not at all by its 
 face value. The regular payment of these periodical 
 contributions 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, and fix penalties for default of payment. This 
 subject is discussed further in its appropriate place in 
 another chapter.* 
 
 PAID-UP 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, 
 and 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 most cases a fixed 
 
 See Chapter IX. 
 
 [75] 
 
CHAPTER VIII. 
 
 rate of interest only is allowed, while the holders of the 
 shares usually consign 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, which is still followed to 
 a great extent, to pay off shares as they matured in the 
 regular course of the association. In a terminating asso- 
 ciation this of course must be done. • In the serial associa- 
 tions, where all the stock of each series matures at one 
 time, it is necessary that there must be a large accumula- 
 tion of funds toward the end of the series to meet the 
 stock payments which will then become due. The disad- 
 vantages arising from such a necessity are readily under- 
 stood. 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 necessary funds to meet the 
 withdrawal 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 
 
 [76] 
 
STOCK AND STOCKHOLDERS. 
 
 especially true in the case of a serial association, for it is 
 necessary for the association to hoard its money for 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 
 paying off a mortgage, or something of that nature, it 
 may be better for him to leave it invested in the associa- 
 tion than to draw it out. The possession of so much 
 money immediately in hand brings with it the tempta- 
 tion 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 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 coupons 
 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 dividend. 
 It is evident that it is only under certain circumstances 
 
 [77] 
 
CHAPTER VIII. 
 
 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 con- 
 tingencies or emergencies. 
 
 Any member whose stock has matured should consider 
 very carefully as to 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. 
 
 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 extreme 
 cases, may collect by suit the dues of delinquent members 
 who are endeavoring to work injury to the association. 
 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 his accumulated stock-payments applied 
 upon his debt; or, if the association holds a lien upon 
 his shares for security of his indebtedness, the associa- 
 tion may, in case of his default of obligations, apply his 
 accumulated stock-payments to cancel his indebtedness 
 as far as they will reach. In such cases defaulting mem- 
 
 [78] 
 
STOCK AND STOCKHOLDERS. 
 
 bers have the benefit only of the aggregate of their paid- 
 up subscriptions. But if a member voluntarily repays the 
 money thus applied, there is added the declared portion 
 of the profits of the association up to the time of the repay- 
 ment, 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 shareholder 
 himself. Stock may be assigned to an association by a 
 borrowing member as collateral security for his loan, and 
 it is the usual practice of associations to require this 
 assignment. Where the stock of a borrowing member is 
 assigned to an association as collateral security and real 
 estate is at the same time mortgaged, the liability falls 
 first upon the stock. If this fails to extinguish the 
 indebtedness then the real estate or other collateral secu- 
 rity becomes liable. 
 
 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 connection 
 with many features of work is not at all uniform in 
 associations. Hence the necessity that each association 
 carefully define in its rules the course which it will adopt 
 in connection with all matters concerning which differ- 
 ences 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 
 
 [79] 
 
CHAPTER VIII. 
 
 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 fixes 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. 
 
 THE DEPOSIT FEATURE IN ASSOCIATIONS. 
 
 The amount of moneys that have been received as 
 deposits, or special deposits, in some of the states, has 
 grown to be a large factor in this work. Many of the 
 leaders of the movement are opposed to accepting any 
 deposits in any of the associations. The reasons, they 
 claim, are that it creates a preferred class in the respective 
 associations and that the fundamental principles of the 
 work of the building and loan associations should be car- 
 ried along the lines of true co-operative effort. The many 
 exemptions and favors shown by legislators to this move- 
 ment were due to the fact that these associations, being 
 strongly co-operative in their character, were entitled to 
 these special privileges. Whether they can continue to 
 secure favorable legislation if this practice is enlarged upon 
 the future alone can determine. 
 
 [80] 
 
CHAPTER IX. 
 
 Definition of Stock and Stockholders. 
 
 DIFFERENCE DEFINED. 
 
 The difference between a stockholder in a building, loan 
 and savings association and that in an ordinary corpora- 
 tion, 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 results of his invest- 
 ments in such stock, are derived through dividends, the 
 value of the shares depending upon the successful opera- 
 tion 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 membership 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, and 
 at this time the stockholder is entitled to the full maturing 
 value of the share, and surrenders the same. Or he may 
 receive a certificate of paid-up stock, if he chooses to leave 
 
 [81] 
 
CHAPTER IX. 
 
 the money with the association. It is clearly seen then 
 that the capital of a building, loan and savings association 
 consists of the combined 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 association, and from all other sources of 
 income. The amount of capital of the association, there- 
 fore, 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 subscription differs, 
 but it usually extends for three or six months, and some- 
 times 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 Jie 
 actual value of a share at any particular time. The with- 
 drawal value on the contrary is that amount which an 
 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 withdrawal and all the methods and 
 
 [82] 
 
DEFINITION OF STOCK AND STOCKHOLDERS. 
 
 processes necessary for the safe conduct of the business. 
 The purchase of a share binds the shareholder to the 
 necessity of keeping up his dues and thus secures to him 
 all the benefits of his savings. This accomplishes the first 
 feature of the motive of a building, loan and savings asso- 
 ciation. The second is that of enabling a person to bor- 
 row 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 hav- 
 ing 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 other financial 
 institutions. In a building, loan and savings association 
 the money was formerly put up at auction, usually in open 
 meeting 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 mat- 
 ter 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 desir- 
 
 [83] 
 
CHAPTER IX. 
 
 ing 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 directors. The person who wishes 
 to build his home, therefore, and desires to borrow $1,000, 
 must have five shares of stock of $200.00 each in the asso- 
 ciation, and after the directors have passed upon the appli- 
 cation, the $1,000 will be loaned to him, if acted upon 
 favorably. 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 prop- 
 erty 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 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- 
 
 [84] 
 
DEFINITION OF STOCK AND STOCKHOLDERS. 
 
 ment is secured. In referring to the enormous amount of 
 money handled by the building, loan and savings associa- 
 tions 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 : 
 
 "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 loan^s, 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." 
 
 [85] 
 
CHAPTER X. 
 
 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 them a regular 
 indemnity as provided in their policies. In many cases 
 the homes of borrowers would have been saved to their 
 families had these precautions been taken. The payments 
 covering this insurance are made payable at regular 
 stated intervals, to the secretary or some other person 
 designated for this purpose, so that the members are not 
 
 [86] 
 
INSURANCE. 
 
 put to any inconvenience to keep up these payments. We 
 are of the opinion that while this may be a difficult mat- 
 ter for associations to adopt in a general way, still this 
 idea could be inaugurated on all new business that is writ- 
 ten. In fact, when an application for a loan is made to 
 the association, 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 fire insurance on his house. Statistics have proven 
 that the loss of homes through fire are but a small per- 
 centage to that compared with those who become sick or 
 who 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, tor- 
 nadoes, 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 purposes 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 
 
 [87] 
 
CHAPTER X. 
 
 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 themselves of 
 such advantages must submit to the usual medical exam- 
 ination. In addition to their regular dues, they are 
 required to pay an insurance premium graduated accord- 
 ing to age. At the 1909 convention of the United States 
 League, Dr. Pranard, of Paris, France, had the following 
 interesting suggestion to make along these lines: 
 
 "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 strongely, 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 reduce(^ 
 each year, as the amount required for a discharge of the mortgage 
 of the borrower is reduced by his monthly payments, his premiums 
 heing 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. 
 
 [88] 
 
INSURANCE. 
 
 "The three systems present the same inconveniences; they neces- 
 sitate, at the beginning, the greatest sacrifices from the borrower. 
 The desirable solution would be th€ 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 are 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." 
 
 [89] 
 
CHAPTER XL 
 
 Duties and Rights of Members, 
 
 MEMBERSHIP. 
 
 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 — depositors 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 depositing members. A person 
 may likewise become a member for the purpose of obtain- 
 ing a loan, and is called a borrowing member. 
 
 Every subscriber for stock should pay a specified admis- 
 sion 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 
 
 [90] 
 
DUTIES AND RIGHTS OF MEMBERS. 
 
 issue. But dues may be paid in advance, in part or in full. 
 When paid in advance in part in some associations they 
 draw dividends. When paid in advance in full, certificates 
 of paid-up stock should be issued. 
 
 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 
 the death of a member, by a transfer of shares, by for- 
 feiture, by voluntary 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 association. 
 
 DUTIES OP 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 rule* 
 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 associa- 
 tion his personal services to a reasonable extent by attend- 
 ance upon the meetings and by the faithful discharge of 
 the functions of such offices as he may be elected or 
 
 [91] 
 
CHAPTER XL 
 
 appointed to fill. Each member of an association 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 contribute 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 the 
 associations. In fact, this item is gradually disappearing 
 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. Direc- 
 tors 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 becomes 
 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 burden of an 
 already overburdened member. The delinquency may 
 arise, indeed, through some misfortune which will appeal 
 strongly to the sympathies of the officers and other mem- 
 bers. At such a time of adversity the addition of these 
 fines serves to build up a barrier between the member of 
 the association and the organization itself, and to defeat 
 the delinquent's only hope of escape. 
 
 [92] 
 
DUTIES AND RIGHTS OF MEMBERS. 
 
 On this account it has been deemed advisable to discard 
 the whole system of fines. All will agree that the imposi- 
 tion 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 delin- 
 quents and always remit a fine when it seems to them just 
 and right so to do. If the member is a borrower and has 
 become a delinquent through misfortune or causes for 
 which he is not responsible, his caseshouldbe inquired into 
 carefully, and he should be aided in any way possible by 
 the association. In such cases the directors frequently 
 permit borrowers to pay interest only for a specified time. 
 This is only a part of the spirit of co-operation and mutual 
 interest, upon which such societies 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 continues delin- 
 quent 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 
 
 [93] 
 
CHAPTER XL 
 
 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 associa- 
 tion. Certain rights are vested in them as members of 
 the corporation, or corporators. When a member is an 
 investor only 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. 
 
 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 matters 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 but 
 twenty. These qualifications should be clearly and 
 
 [94] 
 
DUTIES AND RIGHTS OF MEMBERS. 
 
 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, confu- 
 sion 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 mem- 
 bers to forego this privilege as far as possible, and to refer 
 all matters requiring examination to the auditing com- 
 mittee, or other authority empowered to examine into and 
 to report upon the business of the association. A mem- 
 ber has the right to hold office if elected or appointed 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 restrain them from unlawful 
 action. This right should, of course, never be used 
 except when such action is based upon the most convinc- 
 ing evidence. Under certain 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. 
 
 [95] 
 
CHAPTER XL 
 
 RIGHTS AS INVESTORS. 
 
 A person who invests his money in the stock of a build- 
 ing 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 association. It is this privilege 
 which makes membership in an association attractive and 
 popular among that class of persons for whose benefit 
 building associations are organized and are fostered by 
 appropriate legislation. 
 
 DIVIDENDS. 
 
 The statutes as a rule authorize associations to declare 
 and pay dividends out of the profits of their business, 
 annually or otherwise. These profits are calculated at the 
 termination of each fiscal year or half-year. The profits, 
 when declared, 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 dividends 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 recom- 
 mend associations to popular favor. The rules must be 
 
 [96] 
 
DUTIES AND RIGHTS OF MEMBERS. 
 
 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 OP WITHDRAWAL. 
 
 A member who is simply an investor and not a bor- 
 rower has the right to withdraw from an association with- 
 out being subject to a forfeiture of the money already 
 paid in. For the protection of the business of the associa- 
 tion this right must be exercised under proper restrictions. 
 The rules of every association should prescribe 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 direc- 
 tors should immediately be called to it. In Massachusetts, 
 associations are compelled by statute to keep a book for 
 the special purpose of recording notices of withdrawal, 
 which is called the "Withdrawal Book." Members desir- 
 ing to withdraw enter their notices in this book in regular 
 order, including the date of entry. The applications for 
 withdrawal are then acted upon in regular order. Direc- 
 tors should be required to set aside from time to time a 
 fund to be held for the accommodation of members desir- 
 ing to withdraw. 
 
 While the primary idea of the building and loan asso- 
 ciation, as already stated and popularly understood, is to 
 enable members to become owners of homes, yet it is not 
 
 [97] 
 
CHAPTER XI. 
 
 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 desire, (1) to 
 accumulate a fund for the purpose of embarking 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 with- 
 drawing member does not possess the right to claim a 
 share of the undeclared profits of an association. 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 him. If the association has suffered a loss, 
 it is the rule to deduct from the amount which a with- 
 drawing member has paid in, an equitable portion as the 
 directors may deem necessary for the protection of the 
 remaining shareholders. In the case of a prospective loss, 
 the settlement of which may be in the hands of an arbitra- 
 
DUTIES AND RIGHTS OF MEMBERS. 
 
 tor or receiver, or may be pending in court, it is usual to 
 withhold some portion of a withdrawing 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 with- 
 draw. 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. 
 
 RIGHTS OF BORROWERS. 
 
 As already explained the primary purpose of a building 
 and loan association is to loan money to its members. It 
 follows, therefore, that every member of an association 
 who complies with its rules has a right to become a bor- 
 rower from it. The amount of money which a member 
 is entitled to borrow is usually regulated by the constitu- 
 tion 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 contract for the 
 
 [99] 
 
CHAPTER XL 
 
 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 installments 
 his obligation calls. This must, of course, include accrued 
 interest and other lawful charges. He can in this way, by 
 complying with the constitutional provisions and restric- 
 tions governing such matters, release his stock, or redeem 
 property which he may have mortgaged to the associa- 
 tion. After such repayment the stockholder continues his 
 membership upon the original conditions and may now 
 exercise the right of withdrawal. The exact amount of 
 money to be paid by a borrower in the aggregate to dis- 
 charge 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 care- 
 fully guarded and provided for in the rules and the con- 
 tracts, since it has been a prolific cause of litigation. 
 
 The executor or administrator of the estate of a 
 deceased member may continue the membership if he 
 complies 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 vol- 
 untarily paid off the loan. A borrowing member who 
 does not keep up his payments 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 proportionate share of the expenses and 
 
 [100] 
 
DUTIES AND RIGHTS OF MEMBERS. 
 
 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 OP BORROWERS. 
 
 The duties of a borrower are sufficiently indicated in 
 the preceding sections. He must not only keep up his 
 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 respon- 
 sibility upon the borrower, which by every honorable con- 
 sideration he must faithfully discharge. 
 
 [101] 
 
CHAPTER XII. 
 
 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 winding up. 
 
 The meaning of the term, premium, may perhaps be 
 better understood if the process in the sale of money is 
 reversed. 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 prospec- 
 tive value of these share to the association for a certain net 
 sum of money, the shares to be assigned to the associa- 
 
 [102] 
 
LOANS AND SECURITIES. 
 
 tion immediately and a note or bond be given for the 
 continued regular payment of the weekly dues, this obliga- 
 tion to be secured by a mortgage on the real estate pur- 
 chased with the money advanced, or on other real estate, or 
 by some other satisfactory 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. 
 
 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 consistent 
 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 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 
 
 [103] 
 
CHAPTER XII. 
 
 and a borrowing member, whatever goes outside of the 
 statutory and constitutional provisions is invahd. 
 
 MORTGAGES. 
 
 The ordinary security given by a member for loans and 
 advancements made to him is in the form of a mortgage 
 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 mortgage 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 constitu- 
 tion and rules. Since the statutes under which associa- 
 tions are established differ in the several states, and since 
 constitutions and rules governing this matter vary in dif- 
 ferent 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 
 
 See Chapter on Forms. 
 
 [104] 
 
LOANS AND SECURITIES. 
 
 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 
 such action is authorized by the statutes and the rules. 
 The acceptance of such collateral securities is in the dis- 
 cretion of the directors. The borrower must give his note 
 for the amount received and the interest to be paid there- 
 on, 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 the bonds in the most profitable man- 
 ner for the purpose of liquidating his obligation. The bor- 
 rower may be allowed to renew his note from time to time 
 at the discretion of the directors. 
 
 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 
 
 [105] 
 
CHAPTER XII. 
 
 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 to the member his bond. But if the member fails 
 to keep up his payments on the assigned stock, the associa- 
 tion 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 a borrower who has assigned his stock to the asso- 
 ciation as collateral 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 froni 
 the sale of his mortgaged property and any bonds or other 
 collateral 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 : (1) To payment 
 of dues: (2) to pa)mient 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 in full taken. The rules should 
 be explicit in reference to the forefeiture and sale of secu- 
 rities, for this step involves the highest interests of an 
 association and of its members. 
 
 [106] 
 
LOANS AND SECURITIES. 
 
 APPRAISEMENT OF REAL ESTATE. 
 
 This is one of the most important features of building 
 association operations. It is in the acceptance of secu- 
 rities that the association assumes its risks. Every asso- 
 ciation, of course, has rules governing this matter. Never- 
 theless, when the appraisers come to the actual discharge 
 of their duties they will find the rules insufficient to cover 
 all the details, and that many incidental matters must be 
 considered and decided in their own discretion. A few 
 general suggestions in this connection will be of value, 
 especially in new associations and to those inexperienced 
 in such matters. 
 
 1. The members of the association most capable by 
 intelligence and experience should be on the appraising 
 committee. 
 
 2. The appraisers should always base their valuation 
 of property upon information obtained direct by them- 
 selves by observation and personal investigation, and 
 should not depend upon hearsay from any source. 
 
 3. They should inform themselves fully in reference 
 to the actual status of the property, as to its rightful 
 ownership, its freedom from incumbrance, and other such 
 matters. 
 
 4. They should consider its situation and condition 
 with reference to roads, drainage, water, gas, etc. 
 
 5. If the property is improved, they should note the 
 character of the building, the quality of material and of 
 workmanship, its arrangement, number and size of rooms, 
 and also incidental matters in the way of out-houses, 
 walks, fences, grading, shade-trees, etc. 
 
 [107] 
 
CHAPTER XII. 
 
 6. In making up the valuation they should give full 
 details of items for land and buildings separately. 
 
 7. The valuation should be based upon the intrinsic 
 worth, and not upon competitive or speculative estimates. 
 
 8. The values to be fixed by the committee of appraise- 
 ment or expert valuations should be carefully considered 
 in all its details. The so-called physical surroundings, the 
 condition of the neighborhood and the building restric- 
 tions, limitations or conditions governing the property 
 offered as security as well as its relation to the adjoining 
 property should be carefully examined by experienced 
 persons. The character of a borrower, his standing with 
 the community as to honesty, sobriety and integrity, his 
 thrift and ability to save, must be considered when applica- 
 tion for a loan is made. The amount of the loan to be 
 granted should be carefully considered. In our opinion 
 the object of building, loan and savings associations is to 
 furnish funds for homes, rather than for mercantile or 
 manufacturing improvements. Some of the larger asso- 
 ciations have granted loans of this character, and we con- 
 sider it a dangerous departure from the purposes for 
 which these associations were created. 
 
 9. They should also inquire into the borrower's rela- 
 tion to the association, reviewing his payments, his ability 
 to pay, etc. 
 
 10. This last is very important, since many serious 
 troubles arise from members agreeing to pay more than 
 they are capable of doing. 
 
 11. Investigation should be made as to the amount of 
 
 [108] 
 
LOANS AND SECURITIES. 
 
 insurance (life, health, disability or accident,) and if the 
 same are regularly paid for. 
 
 EXPERT APPRAISERS. 
 
 In many of the large associations the board of directors 
 find it inconvenient to investigate individually the prop- 
 erties 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 build- 
 ings, whose duty it is to make a careful investigation 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 ; or in some cases this 
 is referred to a special committee on loans, which meets at 
 the call of the secretary, and it 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. 
 
 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, makes 
 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. 
 
 [109] 
 
CHAPTER XIII. 
 
 Corporate Government. 
 
 THE CORPORATE MEETING. 
 
 A CORPORATE meeting is a meeting of the members of 
 an association regularly assembled. Meetings may be 
 general or special. The member 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 consti- 
 tution and by-laws in accordance with statutory limita- 
 tions. 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 laws of equity like 
 other incorporated companies. The entire association is 
 bound by the acts of a majority 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 
 
 [110] 
 
CORPORATE GOVERNMENT. 
 
 that an association 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 members present, but of all the members present 
 and voting. But it is better that the rules of the associa- 
 tion should state definitely what proportion of the mem- 
 bership 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 meetings of associations are those corporate 
 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 designated 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 advertisement in 
 some paper of general circulation regularly issued in the 
 vicinity. The usual business of such meetings is the elec- 
 
 [111] 
 
CHAPTER XIII. 
 
 tion 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 prominent feature 
 of these meetings. These reports, when represented in 
 proper form, give the members a clear idea of the business 
 of the association, and enable them to determine intel- 
 ligently as to the policy for its future management. 
 
 SPECIAL MEETINGS. 
 
 Provision 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 such 
 meetings 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 manner, 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 
 reasonable 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, notice of 
 
 [112] 
 
CORPORATE GOVERNMENT. 
 
 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 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 in reference to its busi- 
 ness 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 
 
 [113] 
 
CHAPTER XIII. 
 
 is easy, when the members and officers of an association 
 are careless, for its methods and operations gradually to 
 slip outside of the limits which they were originally 
 intended to occupy. 
 
 At any regular corporate meeting there should always 
 be a clear, business-like statement of what the association 
 has accomplished during the past year, and what is ex- 
 pected to be accomplished during the coming year. These 
 facts being before the members, they are able to determine 
 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 
 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 asso- 
 ciation's affairs, but it will also spur them to continued 
 diligence and efficiency. Any officer or member of an 
 association who satisfies himself with the mere perfunc- 
 tory discharge of the routine duties of his position makes 
 a serious mistake. His active and intelligent participation 
 
 [114] 
 
CORPORATE GOVERNMENT. 
 
 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 larger 
 number of candidates for each office shall be nominated, 
 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 due form and at the 
 proper time and place, those candidates receiving 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. 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 elec- 
 tion 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 
 
 [115] 
 
CHAPTER XIII. 
 
 rejected and their reception would have changed the result 
 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 received, but those 
 containing a greater number must be rejected. An inspec- 
 tor or judge of an election may also be a candidate. 
 
 The acts oi de facto officers are binding upon a corpora- 
 tion, especially so far as these acts affect third parties, 
 even though it may afterwards be decided that the officers 
 were ineligible. 
 
 The management of the affairs of an association is 
 entrusted so entirely to its board of officers that the 
 greatest care should be exercised to select only proper 
 persons as officers, and that there should be no question 
 as to their regular and lawful election. 
 
 [116] 
 
CHAPTER XIV. 
 
 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 managers 
 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 
 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 
 
 [in] 
 
CHAPTER XIV. 
 
 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 
 interested are properly and promptly accounted for ; they 
 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 association ; 
 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 irregularity 
 of proceedings, they may destroy its popularity and use- 
 fulness, and even its existence. 
 
 As the usual elections recur year after year the question 
 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 influences 
 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 work- 
 ings possessed by its experienced officers. A good rule is 
 — other things being equal — to re-elect the salaried officers 
 
 [118] 
 
ELECTION AND DUTIES OF OFFICERS. 
 
 as long as their work is satisfactory 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 elec- 
 tion. It is only on rare occasions where there is to be 
 some radical change in the management of an asso- 
 ciation, that an entirely new board of directors should 
 be chosen. Where there is no necessity for mak- 
 ing a change, it is best to re-elect a strong representation 
 from the old board. Indeed, in order to avoid sudden 
 and unfortunate changes in the board and to secure 
 opportunity at the same time for desirable rotation in 
 office, some associations 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 OP PRESIDENT AND VICE-PRESIDENT. 
 
 In general terms the duties of the president and thq 
 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, 
 
 [119] 
 
CHAPTER XIV. 
 
 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 neces- 
 sities of the business of the association. The president 
 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 unnecessary and 
 irksome responsibility, the constitution and by-laws should 
 specify as fully and clearly as possible the duties imposed 
 upon each them. 
 
 DUTIES OF SECRETARY. 
 
 The office of secretary is in many respects the most 
 important in the association. He is the custodian of its 
 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 plainly, 
 neatly ruled, and should present a full account and sum- 
 mary of the business for the preceding term. They should 
 include a complete balance sheet, giving a detailed exhibit 
 
 [120] 
 
ELECTION AND DUTIES OF OFFICERS. 
 
 of the profit and loss accounts, and a statement of all 
 assets and liabilities of the association. Usually the direc- 
 tors 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. 
 
 DUTIES OF TREASURER. 
 
 The treasurer is the custodian of the association's funds. 
 Unlike the president and secretary, he possesses no discre- 
 tionary powers. His duties are entirely ministerial. He 
 must give his receipt for all money placed in his hands, 
 and is responsible for all the funds of the association 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 pay- 
 
 See Chapter on Forms. 
 
 [121] 
 
CHAPTER XIV. 
 
 ment 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 al- 
 lowed 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 failure of the bank 
 which they have selected. When the treasurer himself 
 selects the bank of deposit he is not liable for loss by rob- 
 bery or failure, provided that he can show that his action 
 has been free from fraud or negligence. 
 
 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. 
 
 [122] 
 
ELECTION AND DUTIES OF OFFICERS. 
 
 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 limita- 
 tions 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 asso- 
 ciation. If, on the other hand, they transcend these powers 
 of the association, they themselves become personally 
 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 com- 
 pensation for services when this is not otherwise fixed. 
 They are subject to the control of the corporate meeting, 
 but not of individual members. A member may, however, 
 on behalf of himself and others, proceed by law against the 
 directors for illegal acts. 
 
 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 
 
 [123] 
 
CHAPTER XIV. 
 
 irregularly called or convened are invalid, except so far 
 as the interests of a third and innocent party may suffer. 
 The rules of an association should specify carefully what 
 number of directors shall constitute a quorum for the 
 transaction 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 personally liable to 
 the stockholders for losses when they are occasioned by 
 reason of fraud or connivance at fraud upon the associa- 
 tion. Directors are liable for embezzlement, willful mis- 
 conduct, breach of trust, or gross inattention and neg- 
 ligence. They are not liable for mistakes of judgment, 
 however, absurd, 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 
 order of the board of directors. Very few associations 
 now have trustees, this being regarded as useless, unneces- 
 sary, and cumbersome. 
 
 [124] 
 
ELECTION AND DUTIES OF OFFICERS. 
 
 THE ATTORNEY: HIS APPOINTMENT, DUTIES, AND COMPEN- 
 SATION. 
 
 Every association must have a duly authorized legal 
 adviser. He should be a regular officer of the association. 
 He usually is designated officially as attorney, though he 
 is sometimes termed solicitor, or counselor. The manner 
 of his appointment differs. In some associations he is 
 elected at the same time, and in the same manner, 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 careful. His posi- 
 tion 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 intelligence, 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 associa- 
 tion, nor, on the other hand, so moderate as to induce him 
 to undertake arbitrarily to make business out of the asso- 
 ciation. 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 increasing its list of shareholders from time td 
 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 reports and documents. In England the 
 
 [125] 
 
CHAPTER XIV. 
 
 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 examines 
 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 
 
 [126] 
 
ELECTION AND DUTIES OF OFFICERS. 
 
 hundreds of trusting depositors, who are relying upon his honor 
 and integrity to protect their hard-earned savings. One of the recent 
 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- 
 
 [127] 
 
CHAPTER XIV. 
 
 honest borrower; he could bankrupt the association in short order 
 more completely than either the secretary or the treasurer. Only men 
 of honor, integrity, ability, and experience, should be entrusted with 
 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. 
 
 I 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. 
 
 [128] 
 
ELECTION AND DUTIES OF OFFICERS. 
 
 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 
 the can draw pay for labor or materials. It would be a hardship to 
 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 associa- 
 tions 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- 
 
 [129] 
 
CHAPTER XIV. 
 
 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 
 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 sec- 
 
 [130] 
 
ELECTION AND DUTIES OF OFFICERS. 
 
 retary, $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. 
 
 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 
 provided 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. 
 
 [131] 
 
CHAPTER XIV. 
 
 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. 
 Hence, 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 char- 
 acter. Thus it is often provided that the officers shall be 
 subject to fines for certain classes of offenses or to removal 
 for certain other ofTenses. The rules may be so drawn as 
 to apply to cases where the ofYense 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 mem- 
 ber of the association, may be considered as unfit to occupy 
 a place as an officer. The power of fixing penalties, 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 corporations or of individ- 
 uals generally. No man, whatever his position, is per- 
 mitted to appropriate to his individual use or advantage 
 that which is not his own or to which he has not obtained 
 a legal right. 
 
 [132] 
 
ELECTION AND DUTIES OF OFFICERS. 
 
 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 consti- 
 tution 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 can- 
 not claim additional compensation. His only remedy lies 
 in securing a change in the rules or in resigning his posi- 
 tion. In cases where 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 organization 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 him- 
 self ready to contribute his personal services within rea- 
 sonable 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 remuneration, and 
 
 [133] 
 
CHAPTER XIV. 
 
 cannot recover the amount of their salaries from individ- 
 ual 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 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 com- 
 pelled to delegate authority to certain selected members to 
 attend to the prosecution of their business. These selected 
 members are called directors. Because certain stock- 
 holders are selected to serve in the capacity of directors 
 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 prosecution of their 
 
 [134] 
 
ELECTION AND DUTIES OF OFFICERS. 
 
 own private business and interests. Again, those stock- 
 holders selected to act as directors are so selected because 
 they have that intelligence and knowledge that fit them to 
 attend to such business. Intelligence, 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 account 
 faithfully for all moneys coming into the possession 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 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 attention 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 
 
 [135] 
 
CHAPTER XIV. 
 
 of all their transactions, and of the condition of the affairs 
 of the association in full detail. 
 
 Many members of associations, not having had experi- 
 cence 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 associations. 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 general 
 way by saying that it must be only for services actually 
 rendered. In the operations of an association each officer, 
 each director, has an assignment of actual duties to per- 
 form, and if paid at all he should be paid in proportion to 
 the amount, the character, and the responsibility of his 
 work. In certain private corporations it has become the 
 custom to pay each director a certain stated sum for each 
 meeting he attends. When absent from a meeting he 
 receives no pay. It is argued that the introduction of this 
 system into the operations of a building association would 
 
 [136] 
 
ELECTION AND DUTIES OF OFFICERS. 
 
 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 participation in the business, each 
 director will have a better understanding 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 : ( 1 ) 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 num- 
 ber of directors be adapted to the actual needs in the trans- 
 action of the business of the association just as in 
 any other business enterprise. Let the number of 
 meetings also be adjusted so as best to meet the 
 requirements of the association. Then upon some basis 
 let the directors 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 management of associations, and it may tend to lessen 
 their number, to concentrate the business into fewer hands, 
 to fix responsibility more closely, and possibly to the estab- 
 
 [137] 
 
CHAPTER XIV. 
 
 lishment of regular offices open during all business hours 
 as well as on certain evenings for the transaction of busi- 
 ness, 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 
 portion 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 faith- 
 ful, and such a secretary should be liberally paid for 
 his work. 
 
 [138] 
 
CHAPTER XV. 
 
 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 : 
 
 1. 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 
 
 6. 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 main- 
 
 [139] 
 
CHAPTER XV. 
 
 tain 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 association 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. 
 
 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 that 
 "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 constitu- 
 
 [140] 
 
POWERS AND POSSIBILITIES. 
 
 tion of the association. As a matter of fact a large propor- 
 tion 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 the 
 officers who are empowered to act for the association. 
 When officers are once appointed with power to make con- 
 tracts 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 
 
 [141] 
 
CHAPTER XV. 
 
 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 binding, 
 an agent must specify in the papers which he executes 
 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 con- 
 veyed 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. 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 association cannot 
 delegate his authority to another person, except where 
 some special provision is made to that end. 
 
 [U2I 
 
POWERS AND POSSIBILITIES. 
 
 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 association 
 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 processes 
 for and against building associations, since the require- 
 ments vary under the laws of the different states. These 
 legal requirements must of course in all such cases be care- 
 fully observed. Such matters should be attended to by the 
 attorneys of associations. To enter upon a general speci- 
 fication 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. 
 
 RULES. 
 
 Two general principles may be laid down concerning 
 the adoption of rules for the government of an association. 
 The first is that the rules must conform to the constitu- 
 tion and laws of the United States, and also of the state 
 in which the association exists. And the second is that 
 
 [143] 
 
CHAPTER XV. 
 
 they must conform to the purposes for which the associa- 
 tion 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 particular asso- 
 ciation. 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 attorney general, 
 or by bringing action before the courts. Among the 
 special powers which an association may or may not pos- 
 sess 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 generally, 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 referred to the proper 
 legal authorities. 
 
 DISSOLUTION. 
 
 In the case of a terminating association it becomes dis- 
 solved as a matter of course at the expiration of the time 
 for which it was incorporated and its charter granted, or 
 when its stock matures. In some states the period of 
 
 [144] 
 
POWERS AND POSSIBILITIES. 
 
 existence is fixed by the statutes. If the members of an 
 association, or an essential portion of them should die, it 
 would terminate its existence. If at any time the assets 
 of an association become equal to the par value of all its 
 stock it ceases to exist, except so far as winding up its 
 affairs is concerned. The members may, by unanimous 
 agreement, surrender the charter of an association and its 
 franchises. It has been held that, where there is no express 
 provision on the subject, a majority of the members may, 
 by resolution, surrender the charter and dissolve the asso- 
 ciation. 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 mem- 
 bers to keep up their stock-payments, or the omission to 
 elect officers, does not work a dissolution of the associa- 
 tion. 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 associa- 
 tion, or where the system of the operation is such as to 
 involve losses, the courts may, upon proper application, 
 
 [145] 
 
CHAPTER XV. 
 
 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. 
 
 [14«1 
 
CHAPTER XVI. 
 
 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 borrow f It is generally understood that none 
 but members may borrow money from an association. 
 This is true, but it sometimes leads to a misunderstanding. 
 While it is a fact that only members may borrow, it is also 
 true that any person may become a member at any time 
 with but trifling cost, and may immediately become a bor- 
 rower. 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 becoming a member 
 and affixing his signature to the constitution and by-laws. 
 With this understanding of the matter, the answer may be 
 given that anybody may borrow money from an asso- 
 ciation. 
 
 [U7] 
 
CHAPTER XVI. 
 
 For what purpose may money he borrowed? As 
 indicated in a previous chapter,* many persons suppose 
 that money cannot be borrowed from a building associa- 
 tion 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 he 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 satis- 
 factory. 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 hundreds 
 of dollars. 
 
 What must he 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 
 
 See Chapter XII. 
 
 [148] 
 
PRACTICAL QUESTIONS ANSWERED. 
 
 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 as 
 security. The value of the property is determined by an 
 appraising committee, composed of members of the board 
 of directors of the association. 
 
 What 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 consist 
 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 $100 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. 
 
 [149] 
 
CHAPTER XVI. 
 
 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 falling 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 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. 
 
 How 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 
 
 [150] 
 
PRACTICAL QUESTIONS ANSWERED. 
 
 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 prefer 
 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 usually 
 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. 
 
 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 be 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 
 
 [151] 
 
CHAPTER XVI. 
 
 one's home is not a pleasant day to which to look forward. 
 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 uneasi- 
 ness 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 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 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 into 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 doing so and, in most cases stops his 
 
 [152] 
 
PRACTICAL QUESTIONS ANSWERED. 
 
 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 usually pre- 
 scribed 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 1891 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 result has been that the majority of the associations 
 in this state have now reached this point and many of 
 them have even a larger amount placed aside for the con- 
 tingent fund. 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. 
 
 [153] 
 
CHAPTER XVI. 
 
 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 "^Vioo per 
 cent. Assuming that J^ of one per cent is placed to the 
 credit of the contingent fund, this would leave 5 Vioo 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 ®/ioo of one per cent of the 
 profits for that term which are undivided. Also in the 
 calculations there will be some small undivided 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. 
 
 [154] 
 
PRACTICAL QUESTIONS ANSWERED. 
 
 The new Ohio law provides for the establishment of 
 an undivided profit account which has been of great 
 service to the associations. 
 
 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 permit- 
 ting 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, but experience has proven the 
 necessity of this change. In our opinion, associations 
 should carry at least ten per cent of their total assets in 
 these securities. 
 
 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) 
 
 [155] 
 
CHAPTER XVI. 
 
 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 prothonotary, 
 with whom the mortgage is left for recording. The blank 
 for these certificates should be about as follows : 
 
 Received for record ., 191 . . at . . .o'clock. . . 
 
 minutes M. from The Building and Loan Associa- 
 
 tion> a mortgage given by to said associa- 
 tion, dated 191 . . 
 
 of County, 
 
 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. 
 
 [156] 
 
PRACTICAL QUESTIONS ANSWERED. 
 
 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 properly 
 arranged, either alphabetically according to the names of 
 the mortgagors, or in numerical order corresponding with 
 the numbers of the members or shareholders 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 the value of the land mortgaged 
 is not sufficient to secure the loan, and there are buildings 
 upon the land which are included in the mortgage, fire- 
 insurance policies on these buildings should be required. 
 These policies should be assigned to the association. But 
 in cases where the value of the land is evidently sufficient 
 to cover the amount of the loan, including interest and 
 costs of suit in case of a foreclosure, less the amount 
 already paid in by the shareholder, it is not only unreason- 
 able to require the assignment of a fire insurance policy 
 
 [157] 
 
CHAPTER XVI. 
 
 but it also makes needless work for the officers of the 
 association having charge of insurance matters. 
 
 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 indexed 
 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 arranged in monthly 
 groups showing when the policies expire. 
 
 The month before the expiration of a policy the officer 
 having charge of this matter should notify the mortgagor 
 of the approaching expiration of his policy and request 
 that it be renewed on or before the meeting day next pre- 
 ceding its expiration. At this meeting the certificate of 
 entry of renewal duly signed by the agent or representa- 
 tive of the insurance company must be furnished to said 
 officer of the association. When an entry on the policy by 
 the representative of the insurance company is required, 
 the policy should be delivered to the mortgagor for that 
 purpose to be returned at the meeting as before stated. 
 
 If a borrower shall pay off a portion of his loan, reduc- 
 ing it to such an extent that the land covered by his mort- 
 gage independent of the buildings thereon is sufficient 
 security for the loan, then his fire policy should be returned 
 to him with the proper certificate of satisfaction and 
 relinquishment either endorsed upon the policy itself or 
 
 [158] 
 
PRACTICAL QUESTIONS ANSWERED. 
 
 upon a special blank for that purpose. If endorsed upon 
 the policy it may be in these words : 
 
 191.. 
 
 The security for which this policy has been held by The 
 
 Building and Loan Association is hereby 
 
 relinquished. 
 
 , President, 
 
 , Secretary. 
 
 The Buildin-g and Loan Associatioik 
 
 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 lease- 
 hold the policy of insurance should be held as collateral 
 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 thtf 
 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 due, arranged in monthly groups as indicated 
 above for the insurance policies. Receipts for the payment 
 of the rental, taxes, and assessments, if any, should be 
 presented, at the latest, at the meeting preceding the 
 expiration of the term of forfeitures and the entry that 
 
 [159] 
 
CHAPTER XVI. 
 
 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 at the farthest 
 within one month after the last day when they were pay- 
 able. 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 
 
 [160] 
 
PRACTICAL QUESTIONS ANSWERED. 
 
 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. 
 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 
 
 191.. 
 
 Name 
 
 Amount $ 
 
 As these envelopes containing the dividends are dis- 
 tributed to the members each member should sign a receipt 
 in the following form : 
 
 191... 
 
 Received of The 
 
 Building and Loan Associations the sum of 
 
 dollars in full for dividend for term ending 
 
 191.. 
 
 Book No. 
 
 For roethods of calculating dividends and dividend tables see Chapter XXI. 
 [161] 
 
CHAPTER XVI. 
 
 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. 
 
 Some associations pay dividends by issuing warrants 
 upon the Treasurer who cashes them on presentation. 
 These warrants are in the following form : 
 
 No 
 
 191.. 
 
 Treasurer of 
 
 The Building and Loan Association : 
 
 Pay to the order of i. . .the sum of 
 
 dollars, dividend in full for term 
 
 ending. 191. . 
 
 $ 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. 
 
 DUES, DEPOSIT SLIPS, 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 
 
 [162] 
 
PRACTICAL QUESTIONS ANSWERED. 
 
 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. 
 
 PAYING OFF SHARES. 
 
 Before the directors pay up shares in full or relinquish 
 mortgages, they should consider carefully the association's 
 liabilities so that they may know — 
 
 1. What losses are liable to occur ; 
 
 2. What mortgages are likely to prove bad ; 
 
 3. What inside creditors the association has ; 
 
 4. Whether 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 embarrass- 
 ment, would withdraw their shares and escape without 
 losses, while the faithful and unsuspicious members 
 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, building 
 associations conducted on the permanent plan are pros- 
 
 [163] 
 
CHAPTER XVI. 
 
 perous 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 careless- 
 ness, 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 associa- 
 tion 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 careless, and, in consequence without any 
 evil intent on the part of either officers or members, unex- 
 pected embarrassment may arise. It is well to anticipate 
 all such emergencies beforehand, and thus to be prepared 
 for them. It is easy to under-estimate an association's 
 liabilities to borrowing 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 plan, is to divide the profits at the end of the first 
 term. 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. 
 
 [164] 
 
PRACTICAL QUESTIONS ANSWERED. 
 
 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. 
 
 [165] 
 
CHAPTER XVII. 
 
 Auditing: Its Necessity and Object. 
 
 STATE EXAMINATIONS. 
 
 In many of the states the provisions of the law require 
 examinations to 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 over two million 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 capital 
 or investments. It is in most cases their dependence for 
 the future, as well as the home itself, and for the neces- 
 sities and comforts of life. If there is such a thing as 
 
 [166] 
 
AUDITING: ITS NECESSITY AND OBJECT. 
 
 sacred money anywhere, it is in these very treasuries of 
 the building, loan and savings associations. Many a tim^ 
 a person who has lost some of these savings has been dis- 
 couraged from ever again attempting a similar effort. As 
 a result, this burden must be assumed by others. The 
 proper guardianship and protection of these funds is, 
 therefore, a matter of the highest importance. 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 fol- 
 lowing 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 a thousand, 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 wheo 
 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 approaching 
 twenty thousand, with assets aggregating about five mil- 
 lion 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 progres- 
 sive lines. 
 
 [167] 
 
CHAPTER XVII. 
 
 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. 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 judg- 
 ment, 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 condi- 
 tions 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 out- 
 side individual interests, and it is also unimportant as 
 compared with the aggregate interest of the association. 
 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 enterprise the 
 managers give to the business their whole time and 
 
 [168] 
 
AUDITING: ITS NECESSITY AND OBJECT. 
 
 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 
 conscientious, ever so much interested, nevertheless the 
 opportunities 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. 
 
 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 due on the one hand for the pro- 
 tection of the society's interests and the individual 
 interests of the members. On the other hand it is neces- 
 sary 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 watch- 
 fulness that the best success and prosperity of an associa- 
 tion can be secured and assured. Any failure of an asso- 
 ciation, be it complete or partial, is very unfortunate, not 
 only for the individual shareholders but also for the com- 
 munity. 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 genera- 
 
 [169] 
 
CHAPTER XVII. 
 
 tions. 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 embarrassment to associations 
 already in operation, but prevents the establishment of 
 other associations in that immediate vicinity. The influ- 
 ence 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 persons who are 
 interested in the welfare of this form of co-operation, and 
 who are convinced of the good that it is accomplishing, 
 and of the great future that awaits it, to insist upon the 
 regular and responsible auditing of the accounts in the 
 associations with which they are connected. 
 
 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. 
 
 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 
 
 [170] 
 
AUDITING: ITS NECESSITY AND OBJECT. 
 
 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 
 involves 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 
 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 run- 
 ning 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 correspond- 
 ing gauge of its usefulness and its title to confidence. 
 
 [171] 
 
CHAPTER XVII. 
 
 Formulated somewhat specifically, the principal reasons 
 why the accounts of an association should be audited 
 regularly and carefully are as follows : 
 
 1. For the protection of the business of the association 
 as a corporate body. 
 
 2. For the protection of the individual members, both 
 creditors and borrowers. 
 
 3. To determine that the business is conducted accord- 
 ing 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 
 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 
 
 [172] 
 
AUDITING: ITS NECESSITY AND OBJECT. 
 
 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 depend- 
 ent 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 association and the results of its business opera- 
 tions 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- 
 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 something, 
 and that there are no actual or prospective losses, defi- 
 ciencies, bad debts, defalcations, etc., then the members 
 know that they have taken all necessary precautions to 
 protect and to conserve their interests. They know also 
 
 [173] 
 
CHAPTER XVII. 
 
 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 propor- 
 tions 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 discovered 
 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 dis- 
 appointed at low dividends or no dividends. If the situa- 
 tion 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, as the removal of factories, 
 the depreciation of real estate, and other such things, may 
 change the conditions under which an association 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 that the assets are 
 less in value than they are supposed to be. In addition, 
 the cost of winding up is so greatly increased that this of 
 
 [174] 
 
AUDITING: ITS NECESSITY AND OBJECT. 
 
 itself very materially reduces the assets. This is a con- 
 dition that should never be permitted 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 fac- 
 tors 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 savings to the care of associations is likely to con- 
 tinue to increase at a very rapid rate. Very properly, 
 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 compare 
 and check items, verify entries and footings, etc., and test 
 all the details of the accounting and the book-keeping, but 
 
 [175] 
 
CHAPTER XVII. 
 
 he should inspect the methods upon which the system of 
 accounting is based, and the ends it aims at, and should 
 satisfy himself that both the accounting and the opera- 
 tions of the associations are in accordance with the consti- 
 tution and the by-laws, and farther than this, that the rules 
 themselves of the association are in harmony with the 
 statutes of the state. It is only by this system of far- 
 reaching and thorough auditing 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 cumbrous system which 
 they cannot understand. They like to see economical and 
 labor-saving methods adopted in the management of the 
 business of their associations, and all superfluous 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 associa- 
 tions 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 association. Consequently, 
 an association would become involved before its real con- 
 dition was discovered. 
 
 [176] 
 
AUDITING: ITS NECESSITY AND OBJECT. 
 
 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 
 directors of the association, to examine the records, and 
 to report to them 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 association 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 advertisement. If it is not pros- 
 perous the balance sheet should all the more demonstrate 
 the fact in order that the members 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. 
 
 [177] 
 
CHAPTER XVII. 
 
 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 is their 
 representative. He knows nothing of and cares nothing, 
 for the time being, for the officers whose accounts he is 
 examining. He is appointed for the purpose of ascertain- 
 ing on behalf of the stockholders that their money has 
 been properly accounted for, that such of the funds as 
 have been expended have been applied 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. In 
 a general way he is to give to the co-partners or share- 
 holders his assurance that the transactions of the officers 
 and the directors in the management of the business of the 
 association has been wise and discreet, and according to 
 the rules and the purposes of the association, and that the 
 report and the statement which they present correctly and 
 accurately represent the actual transactions and condition 
 of the association, and that it may be relied upon as show- 
 ing the real result of their management, that the balance 
 sheet presents the actual receipts 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. 
 
 [178] 
 
AUDITING: ITS NECESSITY AND OBJECT. 
 
 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. 
 
 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 
 
 [179] 
 
CHAPTER XVIL 
 
 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. How 
 frequently it happens that an auditing committee sets to 
 work to straighten up the books and the accounts of an 
 association preliminary to their auditing 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 — w'ith 
 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. 
 
 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 manufac- 
 turing or in merchandising. Building association accounts 
 
 [180] 
 
AUDITING: ITS NECESSITY AND OBJECT. 
 
 have their own distinct peculiarities, and present certain 
 features of accounting not found in other lines of busi- 
 ness. The best auditor of building association accounts 
 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 economy in 
 time and expense possible, but also greatly simplify the 
 plans and make the results more readily attainable and 
 comprehensible. There are many devices now in com- 
 mon 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 
 afifairs 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 the fact that the private interests of so many more 
 individuals are involved. This introduces the elements or 
 principles of co-operation. In order to see that these are 
 correctly applied and carried out it is necessary that the 
 
 [181] 
 
CHAPTER XVII. 
 
 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 work. 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 
 
 [182] 
 
AUDITING: ITS NECESSITY AND OBJECT. 
 
 of those whose shortcomings or faults he may be called 
 upon to expose. 
 
 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 goes far to establish 
 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 addition 
 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 comprehen- 
 sion 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 subtract- 
 ing 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 
 
 [183] 
 
CHAPTER XVII. 
 
 audit. By thus flattering his vanity, and enabling him to 
 make a great show of his work, he could be effectually 
 thrown off of any dangerous scent, and, while indus- 
 triously calling off and checking items and details, the 
 foot-prints of fraud could be entirely covered up. Indeed, 
 he might in this way handle the very item which 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 unless 
 he shall summon them to answer questions, or to make 
 necessary explanations. If he finds new features in bookr 
 keeping in vogue with which he is not familiar he should 
 frankly say so, and ask questions freely until he under- 
 stands the sytem. He cannot make his audit without hav- 
 
 [184] 
 
AUDITING: ITS NECESSITY AND OBJECT. 
 
 ing 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 
 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. 
 
 [185] 
 
CHAPTER XVII. 
 
 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 laborious 
 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. 
 
 [186] 
 
CHAPTER XVIII. 
 
 Auditing: Its Methods, 
 
 UNIFORMITY IMPOSSIBLE. 
 
 In THE preceding chapter the subject of auditing has 
 been discussed in reference 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 
 principles are to be applied in practice. Every one will 
 understand that it is impossible to lay down a set of 
 specific rules which will apply in all cases. It is only the 
 application of the principles of auditing in a general way 
 that can be pointed out here. These must be adapted to 
 circumstances as they may be found to exist wherever they, 
 come to be specifically applied. Even in any one particular 
 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 out- 
 line, 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. 
 
 [187] 
 
CHAPTER XVIII. 
 
 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. 
 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 ofificer 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 break, that is, whether the books are like the dif- 
 ferent parts of a machine, each wheel fitting properly into 
 
 [188] 
 
AUDITING: ITS METHODS. 
 
 the others, and no wheel absent. He should examine 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 con- 
 nection with financial transactions in the receipt or 
 expenditure of money should be numbered in consecutive 
 pages by a machine. They should begin with page 1, and 
 should continue in regular numerical order. It sometimes 
 happens that books become very large, and the page 
 numbers become too large for convenience in practical 
 work. Various expedient 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 1, 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 should 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 
 
 [189] 
 
CHAPTER XVIII. 
 
 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. 
 
 As the auditor proceeds with his work various inci- 
 dental matters will continually arise to claim his attention. 
 He must be prepared by intelligence and experience to 
 look out for these himself. They can not be specifically 
 scheduled. A few such matters may be mentioned partic- 
 ularly 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 transactions, 
 
 [190] 
 
AUDITING: ITS METHODS. 
 
 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 account, 
 inspecting and verifying each item. He should see, for 
 instance, that any provision in the rules permitting allow- 
 ance for depreciation in the value of fixtures, stationery, 
 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 marks 
 will remain for the information and guidance of himself 
 or others in making future audits. 
 
 FALSE ACCOUNTS. 
 
 It 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 
 
 [191] 
 
CHAPTER XVIII. 
 
 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 inten- 
 tionally, he will soon discover this also. Being properly 
 put upon his guard by his discovery, he will need to sum- 
 mon all his tact and firmness, and settle down to a faithful 
 and thorough investigation. He must now prepare him- 
 self 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 suspi- 
 cions 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 
 impregnable, and that, when exposure comes, it may be 
 thorough and complete, and the guilty officials brought to 
 punishment 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. 
 Everything will depend upon the intelligence, the expe- 
 rience, 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 
 
 [192] 
 
AUDITING: ITS METHODS. 
 
 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. 
 
 1. Check all extensions and footings in the original 
 books. 
 
 2. Compare each entry in No. 1, Members' Pass Book, 
 with No. 2, Contribution Book, and No. 4, Members' 
 Ledger. 
 
 3. Compare each entry in No. 3, Withdrawal 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, Withdrawal Book, with No. 5, Cash Book. 
 
 6. Compare No. 7, Treasurer's Receipt Book, Avith 
 No. 2, Contribution Book, and also with No. 8, Treas- 
 urer's Cash Book, and with No. 3, Withdrawal Book. 
 
 7. Compare totals of No. 5, Cash Book, with totals 
 in No. 6, General Ledger. 
 
 [193] 
 
CHAPTER XVIII. 
 
 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 shareholders : 
 
 1. 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. 
 
 [194] 
 
AUDITING: ITS METHODS. 
 
 DIAGRAM L 
 
 Receipts. 
 
 (S 
 
 MEMBER'S 
 PASS BOOK. 
 
 ® 
 
 INDIVIDUAL. 
 
 SHARE HOLDER'S 
 
 LEDGER. 
 
 ® 
 
 CASH BOOK. 
 
 Treasurer's 
 Receipt. 
 
 W 
 
 OENEBAL I.EIKJBB. 
 
 ^ 
 
 Withdrawal 
 
 Book 
 
 or 
 
 Order Book. 
 
 W 
 
 Treasurer's 
 Cash. 
 
 [195] 
 
CHAPTER XVIII. 
 
 PROVING A CASH BALANCE. 
 
 The cash balance as shown in the cash book and verified 
 by the bank book of the association, with a proper cer- 
 tificate from the bank and the auditing committee, should 
 go to their respective depositories for an actual verifica 
 tion of this account. In those cases where moneys of the 
 association are involved, outside of the bank account, 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 neces- 
 sary, 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 ^ive 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 
 
 [196] 
 
AUDITING: ITS METHODS. 
 
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 1 No. 
 
 1 . : : 
 
 [197] 
 
CHAPTER XVIII. 
 
 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 
 1 to 50 (the same on both the left and right-hand page) 
 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 columns 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 ascertain 
 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 
 
 [198] 
 
AUDITING: ITS METHODS. 
 
 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. 
 
 When the association gets a few years old this con- 
 secutive numbering of the meetings becomes 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 
 
 [199] 
 
CHAPTER XVIII. 
 
 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 BOOK. 
 
 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. 
 
 [200] 
 
AUDITING: ITS METHODS. 
 
 
 Si's 
 
 o fl 2 
 ^ S ?, 
 
 be 3:i 
 .S '"^ ■*-» 
 
 4> ,« w 
 *- 5i n 
 
 111 
 
 1-1 _, M 
 
 O C3 to 
 
 rt W O 
 
 ^.2 <u 
 
 ^.'2 >- 
 gS S 
 
 
 
 Fines. 
 
 1 • : -11 
 
 Prem. 
 
 Int. 1 : : : 
 
 Dues. : . : 
 
 
 Fines. | : : : 
 
 Prem. : : : 
 
 Int. 1 : : : 
 
 Dues. : 
 
 
 Fines. | : : : 
 
 Prem. : : : 
 
 Int. 1 : : : 
 
 Dues. 
 
 
 
 Fines. 1 : : : II 
 
 Prem. 
 
 M ^ i 
 
 Int. 1 : : 
 
 Dues. : • : 
 
 
 Fines. 1 : : ; 
 
 Prem. 1 . : : 
 
 Int. 
 
 ■ ^ M 
 
 Dues. 1 : : : 
 
 
 Fines. | : : : 
 
 Prem. j : : : 
 
 Int. 1 : : ; 
 
 Dues. 
 
 
 
 
 II Book 1 : : II 
 
 
 Adm.&l 
 Trans. 1 ; • • 
 
 II Shares. : : : || 
 
 i 
 
 No. 
 
 : : :ll 
 
 
 1 
 
 I : : :| 
 
 11 
 
 
 
 1 
 
 Fines. 
 
 : : : 
 
 Prem. 
 
 M ; ^ 
 
 Int. 
 
 MM 
 
 Dues. 
 
 ■ : \ 
 
 
 Fines. 
 
 : ■ 
 
 Prem. 
 
 \ ■■ \ 
 
 Int. 
 
 
 Dues. 
 
 
 
 Fines. 
 
 : : : 
 
 Prem. 
 
 
 Int. 
 
 
 Dues. 
 
 
 
 Fines. 
 
 : : : 
 
 Prem. 
 
 ; ! ■■ 
 
 Int. 
 
 
 Dues. 
 
 : : : 
 
 
 Fines 
 
 
 Prem. 
 
 
 Int. 
 
 
 Dues. 
 
 
 
 Fines. 1 
 
 
 Prem. 
 
 
 Int. 
 
 
 Due*. 
 
 
 
 Fines. 
 
 
 Prem. 
 
 
 Int. 
 
 
 Dues. 
 
 i : : 
 
 1 
 
 1 No. 1 
 
 
 [201] 
 
CHAPTER XVIII. 
 
 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. 
 
 [202] 
 
AUDITING: ITS METHODS. 
 
 Treasurer's 
 Receipt. 
 
 Debited 
 
 JDues 
 
 Interest 
 
 Premium 
 
 Fines 
 
 Admission 
 
 Transfer 
 
 DIAGRAM CASH. 
 
 Books 
 
 Paid on 
 Mortgages 
 
 Paid on Pass 
 Book 
 
 Paid up Stock 
 
 Overs 
 
 Sand. Bills 
 
 Contribution Book 
 Kepresents Debits 
 of Cash Account. 
 
 CASH 
 ACCOUNT. 
 
 Order Book 
 
 Represents Credits 
 
 of Cash Account. 
 
 Treasurer's 
 
 Cash. 
 
 Credited 
 
 l^ithdrawisOs 
 
 Lioans on 
 .Mortgages 
 
 Loans on 
 Pass Book 
 
 Dividends 
 
 Rxpensett 
 
 SalaiT 
 
 Interest 
 
 Shorts 
 
 Stationery 
 
 Paid up Stock 
 Withdrawn 
 
 Sundries 
 
 [203] 
 
CHAPTER XVIII. 
 
 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 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 that the files contain properly 
 signed vouchers from withdrawing members, showing the 
 exact amount which has been received. The signatures 
 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 satis- 
 faction in some other way. 
 
 [204] 
 
AUDITING: ITS METHODS. 
 
 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. 
 
 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 Members' 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. 
 
 [205] 
 
CHAPTER XVIII. 
 
 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 multiplicity 
 of the items. But the same principle of debit and 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 th^ 
 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 classifica- 
 tion as follows — also shown in secretary's balance sheet: 
 
 ASSETS. LIABILITIES. 
 
 Cash on hand, Running stock and dividends, 
 
 Loans on mortgage security, Paid-up stock and dividends. 
 
 Loans on stock security, Deposits and interests. 
 
 Furniture and fixtures, Fund for contingent losses, 
 
 , Real estate, Borrowed money. 
 
 Due for insurance and taxes. Undivided profits, 
 
 Other assets, in detail. Other liabilities, in detail. 
 
 [206] 
 
AUDITING: ITS METHODS. 
 
 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 mat- 
 ters 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 difYer 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 illustrations 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. 
 
 [207] 
 
CHAPTER XVIII. 
 
 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. 
 
 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 dis- 
 advantage 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 deceive 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: 
 
 [208] 
 
AUDITING: ITS METHODS. 
 
 To THE Shareholders of the 
 
 Building and Loan Company. 
 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 condition of the Association to be correctly 
 presented in said Balance Sheet. 
 
 Respectfully, 
 , Auditor. 
 
 SAFETY INSURED. 
 
 The suggestions here made are sufficient to put an inex- 
 perienced auditor on his guard, and also to indicate to 
 members something of what is involved in an audit, and 
 to show the character of person that should be appointed 
 as auditor. 
 
 If auditing were always faithful and efficient it would 
 saye 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 confidence 
 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 incorrect accounts 
 
 [209] 
 
CHAPTER XVIII. 
 
 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 
 reviewing 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 th« 
 course of time. 
 
 STATE SUPERVISION. 
 
 So many citizens are entrusting their earnings to tht 
 care of building, loan and savings associations, and the 
 aggregate capital which they have accumulated, has be* 
 come so large that some form of state supervision has 
 become a necessity. 
 
 With the growth of these associations there came a 
 demand for proper and stated examinations by duly 
 appointed officers of the state. In some states regular 
 building and loan departments have been created. In other 
 states they have been added to the banking, insurance, 
 auditor of public accounts, and departments of a like 
 nature. It is our opinion that each state should have its 
 
 [210] 
 
AUDITING: ITS METHOD. 
 
 own regular building, loan and savings department. The 
 great good that has been accomplished by these depart- 
 ments for the benefit of the movement must not be under- 
 estimated. It has given to the public correct statistics, has 
 detected mismanagement, has devised better systems oi 
 book-keeping and has been of material assistance in many 
 directions. 
 
 But state supervision, so far as it has yet been developed, 
 does not remove the necessity for private auditing. 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 associa- 
 tions, 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^oes hand in hand with the examinations that are now 
 made by state officials. 
 
 It is to be hoped that the various officers of the different 
 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. 
 
 [211] 
 
CHAPTER XIX. 
 
 Reports. 
 
 THEIR NECESSITY. 
 
 One of the chief arguments in favor of the building 
 association as a saving society is that it is managed by 
 the members themselves, and that they may therefore 
 dt all times know exactly what is being done with their 
 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 
 
 [212] 
 
REPORTS. 
 
 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 
 is in a prosperous condition, not only will the circula- 
 tion of reports give satisfaction to its members, but they 
 may be used for advertising purposes, and in this way 
 additional members may be brought in and the prosperity 
 and usefulness 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 association. Every one connected with an associa- 
 tion 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 
 reports shall be made, and outlining their form and 
 
 [213] 
 
CHAPTER XIX. 
 
 character. 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 
 general or specific way, and also the method of its publica- 
 tion. The exact form in which the report of any associa- 
 tion shall be presented and the method of its publication 
 must therefore be determined by the statutory require- 
 ments 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 
 
 [214] 
 
REPORTS. 
 
 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 shown 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 permanent 
 association : 
 
 2Io 
 
CHAPTER XIX. 
 
 SPECIMEN REPORT— SERIAL PLAN ASSOCIATION. 
 TWENTY^EVENTH ANNUAL STATEMENT 
 
 Savings, Loan and Building Ass'n 
 
 For the year ending December 31, 1910. 
 
 RECEIPTS. 
 
 Installments (dues) $ 55,827 00 
 
 Interest 18,879 80 
 
 Fines 242 90 
 
 Membership fees 158 60 
 
 Transfer tees 10 50 
 
 Matured stock 10,300 00 
 
 Rents 394 40 
 
 Loans repaid and matured 64,760 00 
 
 Sale of real estate 6,720 72 
 
 Bills payable 4,472 35 
 
 Bills receivable 8,000 00 
 
 Outstanding orders 1,000 00 
 
 From Treasurer 3,707 35 
 
 Total $168,968 62 
 
 ASSETS. 
 
 Loans to stockholders $308,250 00 
 
 Installments unpaid 1,755 50 
 
 Interest unpaid 921 00 
 
 Fines unpaid 35 95^ 
 
 Real estate 7,200 00 
 
 Real estate sold on con- 
 tract 3,386 00 
 
 Furniture and stationery. . 200 00 
 
 Total $316,747 45 
 
 DISBURSEMENTS. 
 By balance of last state- 
 ment $ 3,791 49 
 
 Loans on real estate and 
 
 shares 7^,200 00 
 
 Installments withdrawn and 
 
 matured 48,769 00 
 
 Interest on stock withdrawn 
 
 and matured 13,987 72 
 
 Expenses 2,647 85 
 
 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. $217,543 50 
 Ad. Pay. dues $9523.50— 
 
 inter. $53.75 977 25 
 
 Installments due 1,755 50 
 
 Matured stock 33,000 00 
 
 Bills payable 2,692 35 
 
 Due Treasurer 3,707 35 
 
 Outstanding orders 1,000 00 
 
 Contingent fund 11,660 00 
 
 Profit 44,411 50 
 
 Total $316,747 45 
 
 SERIES OF STOCKS, VALUES, ETC. 
 
 
 Time in 
 
 Shares in 
 
 Shares 
 
 Dues Paid 
 
 Profit 
 
 Value 
 
 Series 
 
 Mos. 
 
 Force 
 
 Loaned on 
 
 Per Share 
 
 Per Share 
 
 Per Share 
 
 17 
 
 132 
 
 266 
 
 74^ 
 
 $66 00 
 
 $22 94 
 
 $88 94 
 
 B 
 
 128 
 
 35 
 
 34^ 
 
 64 00 
 
 21 40 
 
 85 40 
 
 C 
 
 124 
 
 10 
 
 10 
 
 62 00 
 
 20 08 
 
 82 08 
 
 18 
 
 120 
 
 385 
 
 47 
 
 60 00 
 
 18 79 
 
 78 79 
 
 B 
 
 116 
 
 9 
 
 sVi 
 
 58 00 
 
 17 57 
 
 75 57 
 
 ID 
 
 108 
 
 339 
 
 36 J4 
 
 54 00 
 
 15 23 
 
 69 23 
 
 B 
 
 104 
 
 132 
 
 22 
 
 52 00 
 
 14 12 
 
 66 12 
 
 C 
 
 100 
 
 7 
 
 eVz 
 
 50 00 
 
 13 06 
 
 63 06 
 
 20 
 
 96 
 
 324 
 
 24 
 
 48 00 
 
 12 OS 
 
 60 03 
 
 B 
 
 92 
 
 19 
 
 8^ 
 
 46 00 
 
 11 05 
 
 57 05 
 
 C 
 
 88 
 
 90 
 
 10 
 
 44 00 
 
 10 11 
 
 54 11 
 
 21 
 
 84 
 
 400 
 
 22 
 
 42 00 
 
 9 21 
 
 51 21 
 
 B 
 
 80 
 
 37 
 
 36 J4 
 
 40 00 
 
 8 36 
 
 48 36 
 
 C 
 
 76 
 
 165 
 
 120 
 
 38 00 
 
 7 64 
 
 45 64. 
 
 [216] 
 
REPORTS. 
 
 
 Time in 
 
 Shares in 
 
 Shares 
 
 Dues Paid 
 
 Profit 
 
 Value 
 
 Scries 
 
 Mos. 
 
 Force 
 
 Loaned on 
 
 Per Share 
 
 Per Share 
 
 Per Share 
 
 «2 
 
 72 
 
 478 
 
 66^ 
 
 36 
 
 00 
 
 6 
 
 77 
 
 42 77 
 
 B 
 
 68 
 
 123 
 
 123 
 
 34 
 
 00 
 
 6 
 
 04 
 
 40 04 
 
 c 
 
 •4 
 
 48 
 
 48 
 
 32 
 
 00 
 
 5 
 
 36 
 
 37 se 
 
 iS 
 
 60 
 
 513 
 
 50 
 
 30 
 
 00 
 
 4 
 
 70 
 
 34 ,0 
 
 B 
 
 56 
 
 145 
 
 142 
 
 28 
 
 00 
 
 4 
 
 09 
 
 32 09 
 
 C 
 
 62 
 
 »2 
 
 90J4 
 
 26 
 
 00 
 
 3 
 
 53 
 
 29 53 
 
 24 
 
 48 
 
 &56 
 
 104 
 
 24 
 
 00 
 
 3 
 
 00 
 
 27 00 
 
 R 
 
 44 
 
 188 
 
 187 V4 
 
 22 
 
 00 
 
 2 
 
 52 
 
 24 52 
 
 C 
 
 40 
 
 147 
 
 146 V4 
 
 20 
 
 00 
 
 2 
 
 09 
 
 22 09 
 
 26 
 
 86 
 
 685 
 
 12554 
 
 18 
 
 00 
 
 1 
 
 69 
 
 19 69 
 
 R 
 
 82 
 
 193 
 
 192^ 
 
 16 
 
 00 
 
 1 
 
 S3 
 
 17 38 
 
 c 
 
 29 
 
 89 
 
 88 J^ 
 
 14 
 
 00 
 
 1 
 
 02 
 
 15 02 
 
 20 
 
 24 
 
 991 
 
 211 
 
 12 
 
 00 
 
 
 75 
 
 12 75 
 
 B 
 
 20 
 
 290 
 
 289^ 
 
 10 
 
 00 
 
 
 52 
 
 10 52 
 
 C 
 
 16 
 
 102 
 
 102 
 
 8 
 
 00 
 
 
 33 
 
 8 S3 
 
 27 
 
 12 
 
 1094 
 
 119^ 
 
 6 
 
 00 
 
 
 19 
 
 6 19 
 
 B 
 
 8 
 
 310 
 
 807 
 
 4 
 
 00 
 
 
 08 
 
 4 08 
 
 C 
 
 4 
 
 210 
 
 208 
 
 2 
 
 00 
 
 
 02 
 
 2 02 
 
 SUMMARY 
 
 OF THE 
 
 BUSINESS OF THE ASSOCIATION 
 
 For the past twenty-seven years. 
 
 BECEIPTS. 
 
 From dues $1,219 846 25 
 
 From interest 
 
 329,931 80 
 
 From premiums 
 
 56,342 47 
 
 From fines 
 
 6,089 40 
 
 From membership fees . . 
 From transfer fees 
 
 3,961 60 
 
 367 75 
 
 From loans repaid and 
 
 
 matured 
 
 1,206,675 00 
 
 From rents 
 
 10,503 33 
 
 From taxes and insur- 
 
 
 ance repaid 
 
 1,018 69 
 
 From safe 
 
 130 00 
 
 From sale of real estate.. 
 
 56.123 47 
 
 From real estate contracts 
 
 3,293 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.$l,509,925 00 
 For stock withdrawn and 
 
 matured 1,001,814 50 
 
 For interest and profit on 
 
 stock withdrawn and 
 
 matured 286,738 89 
 
 For fixtures, furniture, etc. 824 82 
 
 For expenses 67,099 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 89,158 60 
 
 For bills receivable 8,740 00 
 
 Matured stock 12,500 OO 
 
 Total $2,989,783 06 
 
 Total $2,989,783 06 
 
 State of County of , ss. 
 
 Secretary of the Savings, Loan and Building 
 
 Asssociation, 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, 1910, 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. 1910. 
 [SEAL] Notary Public. 
 
 We. the undersigned stockholders but not officers of the 
 
 Saying, Loan and Building Association, hereby certify that the foregoing state- 
 ment is true in all particulars, to the best of our knowledge and belief. 
 
 AUDITING COMMITTEE. 
 
 Dated at this 31st day of December, A. D. 1910. 
 
 [217] 
 
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 
 reports, should bear this advertising feature in mind, and 
 should arrange reports so as to be used in this way. 
 
 It is quite evident from an examination of this subject 
 that there is necessity in most of the states for additional 
 legislation in reference to this matter, and much room 
 for improvement in the practice of many associations in 
 the way of making reports. 
 
CHAPTER XIX. 
 
 Semi- Annual Report 
 
 of The Building and Loan Association, 
 
 from to 
 
 RECEIPTS. 
 
 Balance Cash on hand $. 
 
 Dues 
 
 Mortgage Account 
 
 Note Account 
 
 Interest 
 
 Premiums 
 
 Fines 
 
 Admission Fees 
 
 Books 
 
 Transfer Fees 
 
 Paid-iip Stock 
 
 Cash Over 
 
 Sundries 
 
 Total $, 
 
 LOSS. 
 Books $. 
 
 Rent 
 
 Salaries 
 
 Advertising 
 
 Incidental Expenses. 
 Dividend Declared.. 
 
 Reserve Fund 
 
 Shortage 
 
 Total $. 
 
 ASSETS. 
 
 Loans secured by Mortgage $ . 
 
 Books 
 
 Stationery 
 
 Safe t i j.v».n k W J" 
 
 Cash on Hand 
 
 DISBURSEMENTS. 
 
 Dues Account $. 
 
 Mortgage Account 
 
 Note Account 
 
 Loans on Books 
 
 Salaries 
 
 Rent 
 
 Books 
 
 Reserve Fund Account 
 
 Advertising 
 
 Incidental Expenses 
 
 Paid-up Stock 
 
 Cash Short 
 
 Sundries 
 
 Dividends 
 
 Balance in Cash 
 
 Total $. 
 
 GAIN. 
 
 Admission Fees $. 
 
 Books 
 
 Interest 
 
 Premiums 
 
 Transfer Fees 
 
 Fines . 
 
 Surplus 
 
 Total $. 
 
 LIABILITIES. 
 
 Due to Members $. 
 
 Dividends 
 
 Reserve Fund Account 
 
 Total $ 
 
 Total Number of Stockholders. 
 Total Number of Shares 
 
 Total 
 
 . Secretary. 
 
 Approved : 
 
 Auditing Committee. 
 
 \ 
 
 [219] 
 
CHAPTER XIX. 
 
 SPECIMEN REPORT— PERMANENT PLAN 
 ASSOCIATION. 
 
 ASSETS. 
 
 Cash on hand $ 
 
 Loans on mortRaRe se- 
 curity 1,078,310 72 
 
 Loans on all other se- 
 curity 
 
 Real estate 
 
 Real estate sold on con- 
 tract 11,169 73 
 
 Bills receivable 173 00 
 
 19,577 89 
 
 28,700 cm 
 
 10,098 93 
 
 LIABILITIES. 
 Running stock and divi- 
 dends $1,087,867 M 
 
 Reserve fund 54,700 00 
 
 Undivided profit fund... 5,462 86 
 
 Total $1,148,030 ^7 
 
 RECEIPTS. 
 
 Cash on hand at close of 
 last fiscal year $ 
 
 Dues on running stock . . 
 
 Loans on mortgage se- 
 curity repaid 
 
 Loans on all other security 
 
 Bills receivable 
 
 Real estate sold 
 
 Real estate sold on con- 
 tract 
 
 Interest 
 
 Pass-books and initiation 
 fees 
 
 Rents from company's 
 real estate 
 
 31,145 45 
 
 176,977 93 
 
 167,922 15 
 
 600 00 
 
 532 00 
 
 525 00 
 
 2,250 56 
 
 65,780 82 
 
 258 00 
 
 418 07 
 
 Total $1,148,030 2T 
 
 DISBURSEMENTS. 
 
 Loans on mortgage se- 
 curity $ 249,480 82 
 
 Withdrawals on contracts 285 60 
 
 Withdrawals on running 
 
 stock 169,825 93 
 
 Interest paid during the 
 
 year 150 09 
 
 Undivided profits 200 00 
 
 Expense 6,939 66 
 
 Cash on hand 19,577 89 
 
 Total $ 446,409 9« 
 
 LOSS. 
 
 on running 
 
 Dividends 
 stock . . 
 
 Dividends on loans 
 
 Dividends on contracts . . 
 
 Reserve fund 
 
 Expense 
 
 Undivided profit fund. . . 
 
 53,244 67 
 
 806 74 
 
 3 61 
 
 3,000 00 
 
 6,939 65 
 
 2,784 76 
 
 Total $ 446,409 98 
 
 GAIN. 
 
 Interest $ 66,103 3« 
 
 Pass-books and initiation 
 
 fees 258 00 
 
 Rents from company's real 
 
 estate 418 OT 
 
 Total $ 66,779 43 
 
 Total 
 
 ,779 43 
 
 The State of County of , ss, 
 
 , being duly sworn, says that he is the Secretary of the 
 
 Loan and Building Association of Hamilton, and that the fore- 
 going report of the financial affairs of said Association, is true and correct, and 
 corresponds with the asscounts in said Association. Sec. 
 
 Signed in my presence and sworn to before me this 28th day of December, 
 
 A. D. 1910 Notary Public, County, 
 
 rSEALl 
 
 December •'^l. 1910. 
 
 We, the undersigned auditing committee of said Loan and 
 
 Building Association of Ohio, do hereby certify that the foregoing 
 
 is a true and correct statement of the financial condition of the said Company 
 on the 31st day of December, 1910, and a true statement of its affairs and 
 business for the fiscal year ending on that day. 
 
 AUDITING COMMITTEE. 
 
 [220] 
 
CHAPTER XX. 
 
 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— $3.12 each year. 
 
 The average value of the 2 shares first 6 months in each year is 
 $13.00. The average vaUie of the 2 shares second 6 months in each 
 year is $39.00. 25^% dividends on these average values is 32c and 
 97c respectively. 
 
 
 
 
 .a 
 
 .e 
 
 M^ 
 
 
 
 
 
 o 
 
 
 *i *^ja 
 
 
 2 
 
 1 
 
 i 
 
 <nQ<o 
 
 Total 
 paid on 
 loan ea< 
 year. 
 
 Bal. du 
 on Mor 
 end eac 
 year 
 
 Interes 
 paid 
 each 6 
 months 
 
 
 End of 26 weeks 
 
 $26 00 
 
 82 
 
 
 
 $31 20 
 
 1st 
 
 *• 52 " 
 
 52 00 
 
 97 
 
 $52 00 
 
 $948 00 
 
 81 20 
 
 
 " 26 •♦ 
 
 26 00 
 
 82 
 
 
 
 29 64 
 
 2d 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 896 00 
 
 29 64 
 
 
 " 26 " 
 
 26 00 
 
 82 
 
 
 
 28 08 
 
 8d 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 844 00 
 
 28 08 
 
 
 «' 26 " 
 
 26 00 
 
 32 
 
 
 
 26 52 
 
 4th 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 792 00 
 
 26 52 
 
 
 " 26 " 
 
 26 00 
 
 82 
 
 
 
 24 96 
 
 6th 
 
 " 52 •• 
 
 52 00 
 
 97 
 
 52 00 
 
 740 00 
 
 24 96 
 
 
 " 26 " 
 
 26 00 
 
 32 
 
 
 
 23 40 
 
 «th 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 688 00 
 
 28 40 
 
 
 " 26 " 
 
 26 00 
 
 82 
 
 
 
 21 84 
 
 7th 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 636 00 
 
 21 84 
 
 
 " 26 " 
 
 26 00 
 
 82 
 
 
 
 20 28 
 
 8th 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 584 00 
 
 20 28 
 
 
 " 26 " 
 
 26 00 
 
 82 
 
 
 
 18 72 
 
 9th 
 
 " 52 •• 
 
 52 00 
 
 97 
 
 52 00 
 
 532 00 
 
 18 72 
 
 
 " 26 " 
 
 26 00 
 
 32 
 
 
 
 17 16 
 
 10th .... 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 480 00 
 
 17 16 
 
 
 " 26 " 
 
 26 00 
 
 32 
 
 
 
 15 60 
 
 11th 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 428 00 
 
 15 60 
 
 
 " 26 " 
 
 2« 00 
 
 82 
 
 
 
 14 04 
 
 12th .... 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 376 00 
 
 14 04 
 
 
 " 26 " 
 
 26 00 
 
 82 
 
 
 
 12 48 
 
 13th .... 
 
 " 52 " 
 
 52 00 
 
 07 
 
 52 00 
 
 324 00 
 
 12 48 
 
 
 " 26 " 
 
 " 52 " 
 
 26 00 
 52 00 
 
 82 
 
 52 00 
 
 272 00 
 
 10 92 
 
 
 17 09 
 
 578 76 
 
 14th 
 
 97 
 
 10 92 
 
 
 " 26 " 
 
 26 00 
 
 32 
 
 
 
 9 36 
 
 15th 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 220 00 
 
 9 36 
 
 
 " 26 " 
 
 26 00 
 
 32 
 
 
 
 7 80 
 
 16th 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 168 00 
 
 7 80 
 
 
 " 26 " 
 
 26 00 
 
 32 1 
 
 
 
 6 24 
 
 17th .... 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 116 00 
 
 6 24 
 
 
 " 26 " 
 
 20 00 
 
 32 
 
 
 
 4 68 
 
 18th .... 
 
 " 52 " 
 
 52 00 
 
 97 
 
 52 00 
 
 64 00 
 
 4 68 
 
 
 " 26 " 
 
 26 00 
 
 82 
 
 
 
 3 12 
 
 l»th 
 
 u 41 « 
 
 41 00 
 
 
 41 00 
 
 23 00 
 
 2 46 
 
 I $23 54 I $977 00 | 
 
 I $651 42 
 
CHAPTER XX. 
 
 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 dividends transferred to mortgage 23 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 $1'06.90 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 save 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 their 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- 
 
 [222] 
 
REBATE AND COMPOUND INTEREST TABLES. 
 
 summated and the money repaid, the building association not only 
 received their $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 5% per annuam, or $50.00 interest, and that they 
 then loan this money to B at $1.20 per week, or for $62.40 for the 
 year. The association then makes the diflference, 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 they charge, and not simply the difference between the rate you 
 pay them and what they pay 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 
 assbciation, 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 them. 
 
 [223] 
 
CHAPTER XX. 
 
 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 W. H. Jones, Public Accountant, Cincinnati, O. 
 
 Average value of shares for 6 months, $26.00 ; second 6 months. 
 $78.00. 2j/^% 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. 
 
 (WO 
 
 ^1 
 
 (mO CD 
 
 ^•C C 
 
 H2 o 
 
 31-0 
 
 
 1st lEndof 26 weeks 
 
 $52 00 
 
 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 
 
 Sd 
 
 " 26 " 
 
 52 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 
 
 
 " 52 " 
 
 104 00 
 
 1 95 
 
 104 00 
 
 480 00 
 
 18 72 
 
 6th 
 
 " 26 " 
 
 52 00 
 
 65 
 
 
 
 15 60 
 
 
 " 52 " 
 
 104 00 
 
 1 95 
 
 104 00 
 
 376 00 
 
 15 60 
 
 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 
 
 
 " 52 " 
 
 104 00 
 
 1 95 
 
 104 00 
 
 64 00 
 
 6 24 
 
 lOth .... 
 
 " 21 " 
 
 42 00 
 
 
 42 00 
 
 22 00 
 
 2 52 
 
 |23 40 I $978 00 
 
 I $339 48 
 
 Total lenRth 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 
 
 $ 23 40 
 
 Less amount transferred from dividends to pay balance due 22 00 
 
 $ 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 $ 586 80 
 
 But he actually paid according to table 889 48 
 
 This leaves amount of rebates actually credited $ 247 32 
 
 Current dividends credited 23 4 
 
 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 72 
 
 Actual net earnings of the building association $ 68 76 
 
 [224] 
 
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, fl.OO per week. Interest, $1.20 per week continuously. 
 Dividends, 5% — 2^% 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. 
 
 
 •SI 
 
 
 
 j= 
 
 
 c 
 
 o S 
 
 = 2:3 
 
 •s« 
 
 i 
 
 •9 
 
 M 
 
 V 
 
 « c 
 
 Qo 
 
 Value of dues 
 and dividends 
 beginning of 
 each 6 months 
 
 <3S 
 
 Total average 
 value for 
 dividends curi 
 6 months 
 
 2% dividends 
 current term t 
 be added to 
 previous credi 
 
 lib 
 
 5>1 
 
 Total value 
 of dues and 
 dividends at e: 
 of each 6 mon 
 
 '4 
 11 
 
 1st .. 
 
 ..$26 00 
 
 
 $13 00 
 
 = $13 00 + $ 32 +$13 00 
 
 = $26 32 $31 20 
 
 
 52 00 
 
 $26 
 
 32 + 
 
 13 00 
 
 = 39 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 4- 
 
 13 00 
 
 = 93 94 + 
 
 2 34 + 
 
 13 00 
 
 = 109 
 
 28 
 
 31 20 
 
 3d .. 
 
 ..130 00 
 
 109 
 
 28 + 
 
 13 00 
 
 = 122 
 
 28 + 
 
 8 05 + 
 
 18 00 
 
 = 138 
 
 33 
 
 31 20 
 
 
 156 00 
 
 138 
 
 33 -f 
 
 13 00 
 
 = 151 
 
 33 + 
 
 3 78 + 
 
 13 00 
 
 = 168 
 
 11 
 
 31 20 
 
 4th .. 
 
 ..182 00 
 
 168 
 
 11 + 
 
 13 00 
 
 = 181 
 
 11 + 
 
 4 52 + 
 
 13 00 
 
 = 198 
 
 63 
 
 81 20 
 
 
 208 00 
 
 198 
 
 63 -f 
 
 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 
 
 »9 
 
 31 20 
 
 
 260 00 
 
 261 
 
 99 -- 
 
 13 00 
 
 = 274 
 
 99 + 
 
 6 87 + 
 
 13 00 
 
 = 294 
 
 86 
 
 31 20 
 
 6th .. 
 
 ..286 00 
 
 294 
 
 86 + 
 
 13 00 
 
 = 307 
 
 86 + 
 
 7 69 + 
 
 13 00 
 
 = 828 
 
 55 
 
 81 20 
 
 
 312 00 
 
 328 
 
 55 4- 
 
 13 00 
 
 = 341 
 
 55 + 
 
 8 54 + 
 
 13 00 
 
 = 863 
 
 09 
 
 31 ^0 
 
 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 
 
 81 20 
 
 
 416 00 
 
 471 
 
 96 + 
 
 13 00 
 
 = 484 
 
 96 + 
 
 12 12 + 
 
 13 00 
 
 = 510 
 
 08 
 
 31 20 
 
 9th .. 
 
 ..442 00 
 
 510 
 
 08 + 
 
 13 00 
 
 = 523 
 
 08 + 
 
 13 07 + 
 
 13 00 
 
 = 549 
 
 15 
 
 31 20 
 
 
 468 00 
 
 549 
 
 15 + 
 
 13 00 
 
 = 562 
 
 15 + 
 
 14 05 + 
 
 13 00 
 
 = 589 
 
 20 
 
 81 ZO 
 
 10th .. 
 
 ..494 00 
 
 589 
 
 20 + 
 
 13 00 
 
 = 602 
 
 20 + 
 
 15 05 + 
 
 13 00 
 
 = 630 
 
 25 
 
 81 20 
 
 
 520 00 
 
 630 25 + 
 
 13 00 
 
 = 643 
 
 25 + 
 
 16 08 + 
 
 13 00 
 
 = 672 
 
 33 
 
 31 20 
 
 11th .. 
 
 ..546 00 
 
 672 
 
 35 + 
 
 13 00 
 
 = 685 
 
 33 + 
 
 17 13 + 
 
 13 00 
 
 = 715 
 
 46 
 
 31 20 
 
 
 572 00 
 
 715 
 
 46 + 
 
 13 00 
 
 = 728 
 
 46 + 
 
 18 21 + 
 
 13 00 
 
 = 759 
 
 67 
 
 81 20 
 
 12th .. 
 
 ..598 00 
 
 759 67 + 
 
 13 00 
 
 = 772 
 
 67 + 
 
 19 31 -- 
 
 13 00 
 
 = 804 
 
 98 
 
 31 20 
 
 
 624 00 
 
 804 
 
 98 + 
 
 13 00 
 
 = 817 
 
 98 + 
 
 20 45 -- 
 
 13 00 
 
 = 851 
 
 43 
 
 31 20 
 
 13th .. 
 
 ..650 00 
 
 851 
 
 43 + 
 
 13 00 
 
 = 864 
 
 43 + 
 
 21 61 + 
 
 13 00 
 
 = 899 
 
 04 
 
 31 20 
 
 
 676 00 
 
 899 04 -f 
 
 13 00 
 
 = 912 
 
 04 + 
 
 22 80 + 
 
 13 00 
 
 = 947 
 
 84 
 
 31 ao 
 
 14th .. 
 
 ..702 00 
 2 14 
 
 947 
 
 84 + 
 
 13 00 
 
 = 960 
 
 84 + 
 
 24 02 + 
 
 13 00 
 
 = 997 
 2 
 
 86 
 14 
 
 31 20 
 
 
 704 14 
 
 
 
 
 
 
 295 86 
 
 
 $1,000 00 842 40 
 
 
 
 
 
 
 
 
 704 14 
 
 
 
 
 2»5 86 
 
 
 $1,000 00 
 
 
 
 $546 54 
 
 [225] 
 
CHAPTER XX. 
 
 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 13^ years, or 702 weeks. 
 
 On account of their 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 2% 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 was 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 JDy 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 G% 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 prob- 
 ably, 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. 
 
 [226] 
 
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 h€re carefully and in detail compared. 
 
 O B.* 
 
 .•£•3 
 
 «>^ 
 
 •s ft o 
 
 OUhU 
 
 Q.S'S 
 
 End 1st year . . 
 
 " 2d year. . . 
 
 " 3d year. .. 
 
 " 4th year. . 
 
 " 5th year. . . 
 
 " 6th year. . . 
 
 " 7th year. . . 
 
 " 8th year. . . 
 
 " »th year. . . 
 
 " 10th year. . 
 
 " 11th year.. 
 
 " 12th year.. 
 
 " 13th year.. 
 
 " 13 J4 year. 
 
 $ 1 29 
 
 3 99 
 
 6 83 
 
 9 81 
 
 12 94 
 
 16 28 
 
 19 68 
 
 28 81 
 
 27 12 
 
 81 13 
 
 35 34 
 
 89 76 
 
 44 41 
 
 24 02 
 
 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 
 
 8 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 29 
 24 96 
 
 1 29 
 28 08 
 
 1 29 
 81 20 
 
 1 29 
 84 82 
 
 1 29 
 87 44 
 
 1 29 
 
 20 28 
 
 32 
 
 I 1 20 
 4 41 
 7 58 
 10 66 
 13 77 
 16 99 
 20 01 
 23 13 
 26 25 
 29 37 
 82 49 
 35 61 
 88 78 
 20 60 
 
 |0 42 
 70 
 84 
 88 
 66 
 8S 
 
 $ 18 
 87 
 
 1 76 
 
 I 
 
 2 85 I 
 
 I 
 
 4 15 j 
 
 5 68 ' 
 
 3 42 
 
 $295 86 
 
 280 78 
 
 $ 15 18 
 
 $280 78 
 
 $18 91 
 
 3 78 
 
 $15 18 
 
 $3 78 
 
 [227] 
 
CHAPTER XX. 
 
 The first column in above Table No. 4 shows the full year periods. 
 
 The second column shows compound dividend taken from 2^% 
 dividend column in Table No. 3, where they are shown in amounts 
 for each 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, ^2 -{- 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 
 
 Th€ 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 13j^-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 the separate plans. 
 
 The first year the dividend credits are the same in both. The 
 second year the difference betweent $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 continues 
 on the increase until close of terra. 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 (13^/^ 
 years) simply because he allowed his dividends to accumulate as a 
 credit, the borrower in No. 1 had paid exactly the same amount of 
 
 [228] 
 
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 are, according to the tables, 
 as follows : 
 
 Table No. 3— Dues paid $ 704 14 
 
 Dividends credited 295 86 
 
 Total $1,000 00 
 
 Table No.l— At 13 J/^ years dues paid 13X52-f26=$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 5j4 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 13J^ 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 13^ 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. 
 
 [229] 
 
CHAPTER XX. 
 TABLE No. 5— COMPOUND INTEREST PERMANENT 
 
 PLAN. 
 Showing Course and Results of a Loan of $1,000.00. 
 
 Prepared by W. H. Jones, Public Accountant, Cincinnati, O. 
 Payments, $2.00 per week as dues, interest, $1.20 per week con- 
 tinuously. Dividends 5%=254% semi-annual — on accumulated dues 
 compounded. Current , average value each 6 months is $26.00 plus 
 credits beginning term. 
 
 (0 
 
 rt 
 > 
 
 Q o 
 
 Value of dues 
 and dividends 
 beginning of 
 each 6 months 
 
 Average value 
 current 6 months 
 to be added 
 
 Total average 
 value for 
 dividends current 
 6 months 
 
 2J4% dividends 
 current term to 
 be added to 
 previous credits 
 
 o 
 111 
 
 Total value 
 of dues and 
 dividends at end 
 of each 6 months 
 
 1% 
 
 n 
 
 1st .. 
 
 ..$52 00 
 
 $26 00 
 
 = $26 
 
 00 4- $ 65 4- 
 
 26 00 
 
 = $52 65 $31 20 
 
 
 104 00 
 
 $52 65 4- 26 00 
 
 =: 78 
 
 65 4- 
 
 1 95 4- 26 00 
 
 = 106 60 
 
 31 20 
 
 2d .. 
 
 ..156 00 
 
 106 60 -1- 26 00 
 
 — 132 
 
 60 4- 
 
 3 30 4- 
 
 26 00 
 
 = 161 90 
 
 31 20 
 
 
 208 00 
 
 161 90 4- 26 00 
 
 = 187 
 
 90 4- 
 
 4 694- 
 
 26 00 
 
 = 218 59 
 
 31 20 
 
 8d .. 
 
 ..260 00 
 
 218 59-- 26 00 
 
 = 244 
 
 59 -1- 
 
 6 10 4- 
 
 26 00 
 
 = 276 69 
 
 31 20 
 
 
 312 00 
 
 276 69 -- 26 00 
 
 = 302 
 
 69 4- 
 
 7 55 4- 
 
 26 00 
 
 = 336 24 
 
 31 20 
 
 4th .. 
 
 ..364 00 
 
 336 24 -f- 26 00 
 
 = 362 
 
 24 4- 
 
 9 05 4- 
 
 26 00 
 
 = 397 29 
 
 31 20 
 
 
 416 00 
 
 397 29 -1- 26 00 
 
 = 423 
 
 29 4- 
 
 10 57 -- 
 
 26 00 
 
 = 459 86 
 
 31 20 
 
 5th .. 
 
 ..468 00 
 
 459 86 -}- 26 00 
 
 = 485 
 
 86 4- 
 
 12 12 -- 
 
 26 00 
 
 = 523 98 
 
 31 20 
 
 
 520 00 
 
 523 98 -1- 26 00 
 
 = 549 
 
 98 4- 
 
 13 75 4- 
 
 26 00 
 
 = 589 73 
 
 31 20 
 
 6th .. 
 
 ..572 00 
 
 589 73 4- 26 00 
 
 = 615 
 
 73 4- 
 
 15 37 4- 
 
 26 00 
 
 = 657 10 
 
 31 20 
 
 
 624 00 
 
 657 10 4- 26 00 
 
 = 683 
 
 10 4- 
 
 17 07 4- 
 
 26 00 
 
 = 726 17 
 
 31 20 
 
 7th .. 
 
 ..676 00 
 
 726 17 4- 26 00 
 
 = 752 
 
 17 4- 
 
 18 80 4- 
 
 26 00 
 
 = 796 97 
 
 31 20 
 
 
 728 00 
 
 796 97 4- 26 00 
 
 = 822 
 
 97 4- 
 
 20 55 4- 
 
 26 00 
 
 = 869 52 
 
 31 20 
 
 8th .. 
 
 ..780 00 
 
 869 52 -- 26 00 
 
 = 895 
 
 52 4- 
 
 22 37 4- 
 
 26 00 
 
 = 943 89 
 
 31 20 
 
 
 832 00 
 
 943 89 -- 26 00 
 
 = 969 
 
 89 4- 
 
 24 22 4- 
 
 26 00 
 
 = 1020 11 
 
 31 20 
 
 
 $832 00 
 
 
 
 $188 11 
 
 
 $1020 11 
 
 499 20 
 188 11 
 
 
 311 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 oaid 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 188 11 
 
 The company received more than allowed $ 311 09 
 
 The borrower paid in dues $ 832 00 
 
 The borrower paid in interest 499 20 
 
 $1,143 
 
 Actual amount paid in dues 832 00 
 
 Net interest earnings of building association $ 311 09 
 
 [230] 
 
REBATE AND COMPOUND INTEREST TABLES. 
 
 
 
 
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 3 
 ►-t 
 
 
 
 
 
CHAPTER XX. 
 
 ; EXPLANATION AND REMARKS TABLE No. 6. 
 ! 
 
 I This is a perpetual calendar for dates by the week, such as every 
 
 ! building association needs for quick reference during each current 
 
 I 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 
 
 j 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. 
 
 I The double columns for consecutive number of weeks — from 1 to 
 
 j 26 each way — are located at several different places for convenience. 
 
 I 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 
 j this line to the right to the first column of weeks and you find 18. 
 I Now, if dues are paid at 50c per week, the amount would, of course, 
 ! be $9.00; if at $L00 per week, it would be $18.00. 
 
 r 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 
 
 i 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 
 j the second six months' term use the calendar to correspond and 
 j 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. 
 
 I The matter can be cleared up once for all, if the first weekly 
 
 i meeting in every term is made the pivotal point of starting and the 
 
 j 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 
 
 I 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 
 
 i [232] 
 
REBATE AND COMPOUND INTEREST TABLES. 
 
 the meetine: 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 diflFerence 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 distribu- 
 tions 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 interest, 
 would be allowed for the time of 1 week between the two terms. He 
 would not be entitled to any. 
 
 [233] 
 
CHAPTER XX. 
 
 Suppose now that instead of drawing it all out on the first meet- 
 ing he had simply drawn his interest, and later, say on the tenth 
 meeting in the new term, he wished to draw $50.00. The difference 
 between the tenth and the first would be 9 weeks, on which he would 
 be entitled to interest, amounting, at 4%, per Table No, 7, to one- 
 half of 69c, or 34c on $50.00. 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. 
 
 [234] 
 
REBATE AND COMPOUND INTEREST TABLES. 
 
 TABLE No. 7. 
 Weekly Interest On a Deposit of $100.00 at 4%, 4^% and 5%. 
 
 Prepared by W. H. Jones, Public Accountant, Cincinnati, O. 
 
 *% 
 
 Weeks 
 
 mx 
 
 Weeks 
 
 s% 
 
 77,3 
 
 1 
 
 8"/., 
 
 1 
 
 97.3 
 
 IS'/.s 
 
 2 
 
 167.3 
 
 2 
 
 197,, 
 
 237,, 
 
 3 
 
 25"/3, 
 
 3 
 
 28"/.. 
 
 *>'V,3 
 
 4 
 
 347.3 
 
 4 
 
 387,3 
 
 387,n 
 
 5 
 
 437., 
 
 5 
 
 487,3 
 
 <6V,3 
 
 6 
 
 51"A3 
 
 6 
 
 577.. 
 
 63»/.3 
 
 7 
 
 60'7., 
 
 7 
 
 677.3 
 
 "7,3 
 
 8 
 
 697.3 
 
 8 
 
 76'7,3 
 
 «9^/,3 
 
 9 
 
 ""/.« 
 
 9 
 
 867.3 
 
 76"/.3 
 
 10 
 
 867.3 
 
 10 
 
 967.3 
 
 8*7,3 
 
 11 
 
 9573. 
 
 11 
 
 lOS'V.s 
 
 927,3 
 
 12 
 
 1«3"/.. 
 
 12 
 
 1157.. 
 
 100 
 
 13 
 
 1127, 
 
 13 
 
 ' 125 
 
 1077,3 
 
 14 
 
 1217,3 
 
 14 
 
 1347.3 
 
 1157.3 
 
 15 
 
 129"/,, 
 
 15 
 
 1447,, 
 
 1237.3 
 
 16 
 
 1387.: 
 
 16 
 
 153"/,3 
 
 130'V,3 
 
 17 
 
 14773, 
 
 17 
 
 1637,3 
 
 1387,3 
 
 18 
 
 155-7,3 
 
 18 
 
 1737.3 
 
 i«7.. 
 
 19 
 
 164»/.c 
 
 19 
 
 1827,3 
 
 153"/.. 
 
 20 
 
 1737.3 
 
 20 
 
 1927,3 
 
 1617.3 
 
 21 
 
 181"/30 
 
 21 
 
 201"/.3 
 
 1697.3 
 
 22 
 
 1907.3 
 
 22 
 
 2117.3 
 
 "6'7.3 
 
 23 
 
 19973. 
 
 23 
 
 2217,3 
 
 1847.3 
 
 24 
 
 2077.3 
 
 24 
 
 230'7„ 
 
 1927.3 
 
 25 
 
 21673, 
 
 25 
 
 24«»/., 
 
 200 
 
 26 
 
 225 
 
 26 
 
 250 
 
 Interest on $ 10.00 would be \/io above amounts. 
 
 20.00 
 
 30.00 
 
 40.00 
 
 200.00 
 
 300.00 
 
 400.00 
 
 2/ « « 
 
 /» 
 
 double above amounts. 
 
 3 times " 
 
 4 times " " 
 
 [235] 
 
CHAPTER XX. 
 
 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%, 45^% 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 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 or first meeting in next term and 27 — lli=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 to make of the table when making his calculations on deposits, 
 
 [236] 
 
REBATE AND COMPOUND INTEREST TABLES. 
 
 in order 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%, 4^% 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. 
 
 237 
 
CHAPTER XX. 
 
 55 -i 
 
 Q u 
 
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 t3 5 
 
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 CO 
 
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 $ 62.40 $ 62.401$ 62.40 $ 31.20 
 
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 CO 
 
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 CO 
 
 $624.00 
 
 $376.00 
 12th yr. 
 
 
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 00 
 
 lO 
 
 CO 
 
 $572.00 
 $428.00 
 
 11th yr. 
 
 
 
 
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 rH 
 
 
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 $416.00 
 $584.00 
 
 N 
 8th yr. 
 
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 CO 
 
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 $364.00 
 $636.00 
 
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 7th yr. 
 
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 CO 
 
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 $312.00 
 $688.00 
 
 L 
 
 6th yr. 
 
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 < 'OO-O^O'lt M 
 
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 1 
 
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; 
 $806.00 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 bear 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 to be presumed and assumed 
 that the borrower obtained 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). Any- 
 how, 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. 
 
 [239] 
 
CHAPTER XX. 
 
 The third horizontal line of figures at the top and the first line 
 at the bottom 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 receive $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 5i% 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. 
 
 [240] 
 
REBATE AND COMPOUND INTEREST TABLES. 
 
 Let us assume it to be a syndicate of thirteen members, for the 
 sake of the argument, 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 b% dividends to borrower 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 $ 032 
 
 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 fractions in final results. 
 The next six months Mr. Borrower installed $26.00 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 
 
 $26.00 plus $13.00=$39.00, dividend equals 97 
 
 Mr. Svndicate then gets credits in dividends on $1,000.00— 
 
 $39.00=$961.00 and dividend equals 24 03 
 
 $50 00 
 [241] 
 
CHAPTER XX. 
 
 The rebate not being allowed the first year did not enter into 
 the calculation. 
 
 Then at end of year the financial statement would be : 
 
 Interest received $62 40 
 
 Borrower received in dividends first 6 months $ 32 
 
 Borrower received in dividends second 6 months 97 
 
 Syndicate received in dividends first 6 months 24 68 
 
 Syndicate received in dividends second six 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 
 
 Syndicate then gets second 6 months dividend on 
 
 $948.00-439.0O=$9O9.0O 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=$883.00 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 
 
 [242] 
 
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 regard 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 is usually charged for the preference in obtain- 
 ing a loan, or as a settled policy of the management of the association, 
 which is another small source of profit. 
 
 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. 
 
 6th, 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. 
 
 [243] 
 
CHAPTER XX. 
 DECLARING 2^% DIVIDENDS SEMI-ANNUALLY. 
 
 Prepared by W. 11. Jones, Public Accountant, Cincinnati, O. 
 
 In the Report of the Ohio State Inspector of Building Associations 
 for the year 1909, on page 12, under heading "Miscellaneous Informa- 
 tion," 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 2J^%, is used by one of our leading secretaries, to wit: 
 2J^% 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 the 
 
 216 
 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^^% 
 we simply ignore the cipher and divide by 4, but place the answer one 
 place to the right, so 4 0)864.00 or by cancelling one cipher in each — 
 
 21.60 
 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. 
 
 [244] 
 
REBATE AND COMPOUND INTEREST TABLES. 
 
 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. 
 
 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 
 
 .70 
 
 14.00 
 
 .35 
 
 12.00 
 
 M 
 
 27.00* 
 
 m 
 
 86.00 
 
 2.15 
 
 95.00* 
 
 2.37 
 
 140.00 
 
 3.50 
 
 2fi0.00 
 
 6.50 
 
 3R5.00* 
 
 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 
 
 (54 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. 
 
 [245] 
 
CHAPTER XX. 
 
 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. 
 
 1889 
 
 
 
 
 
 
 
 
 
 1890 
 
 
 
 
 
 
 _l 
 
 1891 
 
 
 1 
 
 
 
 
 
 
 
 Jan. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 ! 
 1 
 
 Jan. 
 
 31 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 53 
 
 Jan. 
 
 30 
 
 31 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 105 
 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 2 
 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 54 
 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 106 
 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 3 
 
 
 14 
 
 15 
 
 16 
 
 17 
 
 IS 
 
 19 
 
 20 
 
 55 
 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 107 
 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 4 
 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 56 
 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 108 
 
 Feb. 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 Feb. 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 3 
 
 57 
 
 Feb. 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 109 
 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 6 
 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 58 
 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 110 
 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 7 
 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 59 
 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 111 
 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 8 
 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 60 
 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 112 
 
 Mar. 
 
 26 
 
 27 
 
 28 
 
 1 
 
 2 
 
 3 
 
 4 
 
 9 
 
 Mar. 
 
 25 
 
 26 
 
 27 
 
 28 
 
 1 
 
 2 
 
 3 
 
 61 
 
 Mar. 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 1 
 
 2 
 
 113 
 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 10 
 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 62 
 
 
 3 
 
 1 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 114 
 
 
 12 
 
 13114 
 
 15 
 
 16 
 
 17 
 
 18 
 
 11 
 
 
 111 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 63 
 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 115 
 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 12 
 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 64 
 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 116 
 
 Apr. 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 13 
 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 65 
 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 117 
 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 14 
 
 Apr. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 66 
 
 Apr. 
 
 31 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 118 
 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 15 
 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 67 
 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 119 
 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 16 
 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 68 
 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 120 
 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 17 
 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 69 
 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 121 
 
 May 
 
 30 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 18 
 
 May 
 
 29 
 
 30 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 70 
 
 May 
 
 28 
 
 29 
 
 30 
 
 1 
 
 2 
 
 3 
 
 4 
 
 122 
 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 19 
 
 
 6 
 
 7 
 
 8 
 
 9110 
 
 11 
 
 12 
 
 71 
 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 123 
 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 20 
 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 72 
 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 124 
 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 21 
 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 73 
 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 125 
 
 June 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 31 22 
 
 June 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 74 
 
 June 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 126 
 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 23 
 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 75 
 
 
 2 
 
 3 
 
 4 5 
 
 6 
 
 7 
 
 8 
 
 127 
 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 24 
 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 76 
 
 
 9 
 
 10 
 
 11 12 
 
 13 
 
 14 
 
 15 
 
 128 
 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 77 
 
 
 16 
 
 17 
 
 18 19 
 
 20 
 
 21 
 
 22 
 
 129 
 
 July. 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 1 
 
 26 
 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 78 
 
 
 23 
 
 24 125 (26 
 
 27 
 
 28 
 
 29 
 
 130 
 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 27 
 
 July. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 79 
 
 July. 
 
 30| 11 2i 3 
 
 4 
 
 5 
 
 6 
 
 131 
 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 151 28 
 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 80 
 
 
 7 
 
 8 
 
 9 10 
 
 11 
 
 12 
 
 13 
 
 132 
 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 29 
 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 81 
 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 133 
 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 82 
 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 134 
 
 Aug. 
 
 30 
 
 31 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 31 
 
 Aug. 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 3 
 
 4 
 
 83 
 
 Aug. 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 3 
 
 135 
 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 32 
 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 84 
 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 136 
 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 33 
 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 85 
 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 137 
 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 34 
 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 86 
 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 138 
 
 Sep. 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 35 
 
 Sep. 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 87 
 
 
 25 
 
 26 
 
 27 28 
 
 29 
 
 30 
 
 31 
 
 139 
 
 
 8 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 36 
 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 88 
 
 Sep. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 140 
 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 37 
 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 89 
 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 141 
 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 38 
 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 90 
 
 
 15 
 
 16 
 
 17 
 
 18 19 
 
 20 
 
 21 
 
 142 
 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 39 
 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 91 
 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 143 
 
 Oct. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 40 
 
 Oct. 
 
 30 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 92 
 
 Oct. 
 
 29 
 
 30 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 144 
 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 41 
 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 93 
 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 145 
 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 42 
 
 
 14 
 
 15 
 
 16 
 
 171 
 
 18 
 
 19 
 
 20 
 
 94 
 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 146 
 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 43 
 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 95 
 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 147 
 
 Nov. 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 3 
 
 4 
 
 44 
 
 Nov. 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 3 
 
 96 
 
 Nov. 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 
 
 1 
 
 2 
 
 148 
 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 45 
 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 97 
 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 149 
 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 46 
 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 98 
 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 150 
 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 47 
 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 24 
 
 99 
 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 151 
 
 Dec. 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 1 
 
 2 
 
 48 
 
 Dec. 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 1 
 
 100 
 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 152 
 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 49 
 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 101 
 
 Dec. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 153 
 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 50 
 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 102 
 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 13 
 
 14 
 
 154 
 
 
 17 
 
 18119 
 
 20 
 
 211 
 
 22 
 
 231 
 
 51 
 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 103 
 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 20 
 
 21 
 
 155 
 
 
 24 
 
 25|26 
 
 27|28l 
 
 29 30! 
 
 52 
 
 
 23 
 
 24 25 
 
 26 27|28|29| 
 
 104 
 
 
 22|23l'24| 
 
 25 
 
 26 27 28( 
 
 166 
 
 [246] 
 
REBATE AND COMPOUND INTEREST TABLES. 
 
 This calendar is a sample page for three years — 1889-'90-'91 — 
 showing how it may be constructed, for an indefinite number of years, 
 to give the dates by the week, and have them numbered consecutively. 
 If the weekly meeting starts on January 2, 1889, 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 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 it 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 number 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, 1889, and you want to ascertain, on December 4, 1889, 
 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, 1889, 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 exact numbers opposite the dates between 
 which you want to ascertain the number of weeks interest should 
 have been paid, to wit : 49—3= 46 weeks for interest. 
 
 When an association has advanced pretty well along in years you 
 will readily see how very valuable and useful, for quick results in 
 calculation, such a consecutive numerical order of meetings becomes. 
 
 [247] 
 
CHAPTER XX. 
 
 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 of the following panels. 
 
 VEAR 
 
 
 
 NO 
 
 
 
 YEAR 
 
 
 NO 
 
 
 
 YEAB 
 
 
 NO. 
 
 
 YEAR 
 
 
 
 NO. 
 
 YEAR 
 
 
 
 NO. 
 
 1866 10 1876.. 
 
 ....14 1896 
 
 2 1897 
 
 3 1898 
 
 
 .11 1916 14 1936 11 
 
 . 6 1917 2 1937 6 
 
 . 7 1918 3 1938 7 
 
 J.857 5 1877.. 
 
 
 J858 6 1878.. 
 
 
 J859 7 1879.. 
 
 4 1899 1 1919 4 1989 1 
 
 I860 8 1880.. 
 
 12 1900 2 1920 12 1940 9 
 
 1861 3 1881.. 
 
 7 1901 8 1921 7 1941 4 
 
 1862 4 1882.. 
 
 1 1902 4 1922 1 1942 6 
 
 1863 h 1883 . . 
 
 ....2 1903 
 
 10 1904 
 
 5 1905 
 
 
 . 5 1923 2 1943 6 
 
 .13 1924 10 1944 14 
 
 . 1 1925 5 1945 2 
 
 1864 13 1884.. 
 
 
 J865 1 1885.. 
 
 
 J866 2 1886.. 
 
 ....6 1906 2 1926 6 1946 8 
 
 1867 8 1887.. 
 
 ....7 1907 3 1927 7 1947 4 
 
 1868 11 1888.. 
 
 ....8 1908 11 1928 8 1948 12 
 
 1869 6 1889.. 
 
 ....3 1909 6 1929 3 1949 7 
 
 1870 7 1890.. 
 
 ....4 1910 7 1930 4 1950 1 
 
 1871 1 1891.. 
 
 ....5 1911 1 1931 5 1951 2 
 
 1872 9 1892.. 
 
 ....13 1912 9 1932 13 1952 10 
 
 1878 4 1893.. 
 
 1 1913 4 1933 1 1953 5 
 
 1874 5 1894.. 
 
 ....2 1914 
 ....3 1915 
 
 
 . 5 1934 2 1954 6 
 
 . 6 1935 3 1955 7 
 
 1876 6 1895.. 
 
 .... 
 
 1 
 
 2 
 
 Jaa. 
 
 Hai. 
 April 
 
 Bay 
 Jane 
 
 8 
 "i 
 
 8 
 15 
 
 22 
 28 
 
 "i 
 
 12 
 
 'i 
 
 "5 
 
 12 
 
 19 
 26 
 
 M 
 
 '2 
 9 
 16 
 23 
 30 
 
 'e 
 
 13 
 20 
 
 27 
 
 27 
 
 T 
 I 
 
 3 
 
 10 
 17 
 24 
 31 
 
 •7 
 14 
 
 21 
 
 28 
 
 "7 
 14 
 
 21 
 28 
 
 w 
 
 "4 
 11 
 
 18 
 25 
 
 "i 
 
 8 
 15 
 
 "i 
 
 e 
 
 15 
 2? 
 29 
 
 T 
 
 is 
 
 26 
 "2 
 
 i 
 
 F 
 "e 
 
 13 
 
 20 
 27 
 
 ■3 
 10 
 17 
 2i 
 
 "3 
 
 10 
 17 
 24 
 31 
 
 8 
 
 ■7 
 
 14 
 21 
 
 28 
 
 "4 
 11 
 
 18 
 25 
 
 "4 
 
 11 
 18 
 25 
 
 Julj 
 
 Aug. 
 Sept 
 
 8 
 
 *2 
 9 
 
 'i 
 
 30 
 
 C 
 
 13 
 20 
 
 27 
 
 "3 
 
 10 
 17 
 24 
 
 M 
 
 "s 
 
 10 
 
 17 
 24 
 31 
 
 "7 
 14 
 
 21 
 
 28 
 
 "4 
 11 
 
 18 
 25 
 
 T 
 
 "4 
 11 
 
 18 
 25 
 
 "> 
 
 8 
 
 15 
 22 
 29 
 
 "5 
 12 
 
 10 
 26 
 
 W 
 
 *6 
 
 12 
 
 'i 
 
 "2 
 
 
 'i 
 
 f. 
 
 6 
 
 13 
 20 
 27 
 
 T 
 "i 
 
 13 
 
 i 
 1 
 
 24 
 31 
 
 F 
 
 I 
 
 1 
 
 "i 
 11 
 
 ! 
 
 *i 
 
 8 
 1 
 
 8 
 
 ? 
 
 5 
 
 15 
 
 26 
 
 "2 
 9 
 
 16 
 23 
 30 
 
 
 
 8 
 
 M 
 
 T 
 
 w 
 
 T 
 
 F 
 
 S 
 
 
 8 
 
 M 
 
 T 
 
 w 
 
 T 
 
 F 
 
 7 
 
 u. 
 
 Bar. 
 
 "7 
 
 14 
 21 
 
 28 
 
 "4 
 
 11 
 
 18 
 25 
 
 ■4 
 11 
 
 18 
 25 
 
 1 
 
 8 
 15 
 22 
 29 
 
 "5 
 
 12 
 19 
 26 
 
 '5 
 12 
 19 
 26 
 
 2 
 9 
 16 
 23 
 30 
 
 "(8 
 
 13 
 20 
 27 
 
 3 
 
 i 
 
 31 
 
 It 
 
 4 
 11 
 
 18 
 25 
 
 "i 
 
 8 
 15 
 
 22 
 
 "i 
 
 8 
 15 
 
 22 
 29 
 
 5 
 12 
 19 
 26 
 
 "2 
 9 
 
 16 
 
 23 
 
 "2 
 9 
 16 
 
 6 
 13 
 
 20 
 27 
 
 "s 
 
 10 
 17 
 
 "i 
 
 10 
 
 17 
 24 
 31 
 
 July 
 Ang. 
 Sept 
 
 1 
 
 a 
 
 16 
 
 22 
 29 
 
 ■5 
 12 
 19 
 26 
 
 2 
 9 
 16 
 
 "6 
 13 
 
 20 
 
 27 
 
 3 
 
 10 
 17 
 24 
 31 
 
 "7 
 14 
 
 21 
 28 
 
 4 
 11 
 
 18 
 25 
 
 i 
 15 
 
 22 
 29 
 
 5 
 
 12 
 19 
 26 
 
 "2 
 9 
 16 
 
 23 
 30 
 
 6 
 13 
 20 
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 10 
 17 
 24 
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 14 
 21 
 28 
 
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 26 
 
 8 
 15 
 22 
 29 
 
 7 8 
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 2122 
 28 29 
 
 61 7 
 27|28 
 
 2 
 9 
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 3 
 10 
 
 17 
 
 4 
 11 
 
 18 
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 6 
 12 
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 6 
 13 
 
 20 
 27 
 
 7 
 14 
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 28 
 
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 30 
 
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 14 
 21 
 
 28 
 
 11 
 25 
 
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 21 
 
 4 
 
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 18 
 25 
 
 5 
 12 
 19 
 26 
 
 27 
 
 14 
 
 21 
 28 
 
 1 
 
 23 
 
 Oct. 
 Hot. 
 Dec 
 
 1 
 8 
 15 
 22 
 29 
 
 ■5 
 12 
 19 
 
 26 
 
 2 
 9 
 16 
 23 
 30 
 
 "6 
 
 27 
 
 3 
 10 
 17 
 24 
 31 
 
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 14 
 21 
 
 28 
 
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 18 
 
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 8 
 15 
 
 22 
 29 
 
 5 
 12 
 19 
 26 
 
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 9 
 16 
 23 
 
 80 
 
 c 
 
 13 
 
 20 
 
 27 
 
 "3 
 
 10 
 
 17 
 24 
 
 8 
 15 
 
 22 
 29 
 
 7 
 14 
 21 
 
 28 
 
 1 
 
 1 
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 Ifi 
 23 
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 8 
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 22 
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 14 
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 10 
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 8 
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 12 
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 9 
 
 16 
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 1011 
 1718 
 24125 
 
 6 
 12 
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 3 
 10 
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 4 
 
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 Calendar staads 
 Index. 1 
 
 The yeare for which this Calendar wands 1 1 
 1 are found In the Index. || 
 
 [248] 
 
PERPETUAL CALENDAR. 
 
 f^""" 
 
 
 
 
 
 
 
 3 
 
 
 
 
 
 
 
 
 
 
 8 
 
 M 
 
 T 
 
 W 
 
 T 
 
 F 
 
 8 
 
 
 8 
 
 M 
 
 tw|t 
 
 F 
 
 8 
 
 
 Jan 
 
 
 
 I 
 
 2 
 
 3 
 
 4 
 
 5 
 
 July 
 
 
 I 
 
 2 
 
 3 4 
 
 s 
 
 6 
 
 
 
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 7 
 
 t* 
 
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 w 
 
 11 
 
 12 
 
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 12 
 
 13 
 
 
 
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 U 
 
 1616 
 
 17 
 
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 19 
 
 
 14 
 
 15 
 
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 W 
 
 19 
 
 20 
 
 
 
 2G 
 
 21 
 
 22123 
 
 M 
 
 25126 
 
 
 21 
 
 22 
 
 23i2< 
 
 25 
 
 26 
 
 27 
 
 
 
 27 
 
 2R 
 
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 30131 
 
 
 
 
 '^ 
 
 21i30;31 
 
 
 
 
 
 U. 
 
 
 
 
 
 
 1 
 
 2 
 
 Aug. 
 
 
 
 ...... 
 
 1 
 
 
 
 3 
 
 
 
 a 
 
 4 
 
 R 
 
 fl 
 
 7 
 
 i* 
 
 V 
 
 A 
 
 5 
 
 fiVI 
 
 f 
 
 f 
 
 10 
 
 
 
 I'j 
 
 11 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 &pL 
 
 11 
 
 12 
 
 xz\u 
 
 15 
 
 16117 
 
 
 
 17 
 
 islio 
 
 20 
 
 21 
 
 22 
 
 2a 
 
 I« 
 
 19 
 
 2C21 
 
 2:^:23124 
 
 
 Ear. 
 
 "i 
 
 la-jc 
 
 " 
 
 28 
 ■7 
 
 8 
 
 ... 
 2 
 9 
 
 26 
 
 26 
 
 27 
 
 28 
 
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 31 
 
 
 4 5 6 
 
 1 
 
 2 
 
 8 
 
 4 
 
 5 
 
 6 
 
 7 
 
 
 
 10 
 
 11 12 13 
 
 1< 
 
 15 
 
 16 
 
 
 fl 
 
 Si 
 
 IC 
 
 11 
 
 12 
 
 ia 
 
 14 
 
 
 
 17 
 
 19 19 30 
 
 21 
 
 22 
 
 •iz 
 
 
 istifl 
 
 17 18119 
 
 20 
 
 21 
 
 
 April 
 
 '2A 
 31 
 
 £5 26;27 
 
 28 
 
 29 
 
 3U 
 
 Oct 
 
 22 
 29 
 
 23 
 30 
 
 24 23 
 
 "i "2 
 
 28 
 
 "i 
 
 27 
 "4 
 
 28 
 "8 
 
 
 1 
 
 2 3 
 
 4 
 
 6 
 
 6 
 
 
 
 1 
 
 b 
 
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 U 
 
 12 
 
 13 
 
 
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 7 
 
 8 
 
 1(1 
 
 11 
 
 12 
 
 
 
 M 
 
 15 
 
 16 
 
 17 
 
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 Rot. 
 
 I.? 
 
 14 
 
 16 16 
 
 17 
 
 Ifl 
 
 19 
 
 
 
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 2'^23 
 
 24 
 
 25M27 
 
 2« 
 
 21 
 
 22 23 24 
 
 26 
 
 26 
 
 
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 28 
 
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 8 
 
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 11 
 
 
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 4 
 
 6 ■« 7 
 
 8 
 
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 12 
 
 1314 15 
 
 16 17 
 
 18 
 
 
 10 
 
 11 
 
 121J14 
 
 15 
 
 18 
 
 
 
 IS 
 
 20I2I 22 23124 
 
 25 
 
 
 17 
 
 Ifl 
 
 lfi20 21 
 
 22 2r;i 
 
 
 June 
 
 "2 
 
 11 
 
 6 7 
 
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 8 
 
 Dee. 
 
 24 25 
 
 28 27 28 
 
 29 30 
 
 
 1 2 
 
 3 4 
 
 6 
 
 6 7 
 
 
 
 9 1011112 
 
 13ll4 
 
 15 
 
 
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 12 
 
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 16!l7il8 19 2(] 21 
 
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 29 
 
 
 2^23 
 
 
 20 
 
 27128 
 
 
 
 .„ 
 
 
 20 30 
 
 31 1... 
 
 
 -1- 
 
 
 The years for whlcl? thl« Calendar stands 
 
 
 are found in the Index. 
 
 
 
 8 
 
 M 
 
 T 
 
 W 
 
 T 
 
 F 
 
 8 
 
 
 8 
 
 M 
 
 T 
 
 W 
 
 T 
 
 F 
 
 8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Jan 
 
 
 
 
 1 
 
 2 
 
 3 
 
 4 
 
 July 
 
 
 
 1 
 
 2 
 
 3 
 
 4 
 
 6 
 
 
 ■5 
 
 e 
 
 7 
 
 8 
 
 I 
 
 10 
 
 11 
 
 6 
 
 7 
 
 f 
 
 9iU 
 
 11 
 
 12 
 
 
 12 
 
 u 
 
 14 
 
 15 
 
 u 
 
 17 
 
 IH 
 
 
 la 
 
 14 
 
 15 
 
 16!l7 
 
 w 
 
 10 
 
 
 m 
 
 2(1 
 
 21 
 
 221231 
 
 24 
 
 25 
 
 
 •s 
 
 21 
 
 22 
 
 ?S 
 
 lA 
 
 25 
 
 28 
 
 
 26 
 
 27 
 
 2fl 
 
 29 3G 
 
 31 
 
 
 
 27 
 
 2fi 
 
 2S 
 
 .^ 
 
 31 
 
 
 
 Feb. 
 
 
 
 
 
 .„ 
 
 1 
 
 ing. 
 
 
 
 
 
 
 1 
 
 2 
 
 
 2 
 
 a 
 
 4 
 
 6 6 
 
 7 
 
 8 
 
 J 
 
 416 
 
 6 
 
 7 
 
 f\ 
 
 9 
 
 
 
 
 1(1 
 
 11 
 
 12 13 
 
 14 
 
 15 
 
 
 If 
 
 11 
 
 12 
 
 13 
 
 I'l 
 
 15 
 
 Id 
 
 
 16 
 
 17 
 
 Ifl 
 
 19 20121 
 
 22 
 
 
 17 
 
 IS 
 
 IS 
 
 20 
 
 21 
 
 22 
 
 Z\ 
 
 Ear. 
 
 23 
 
 24 
 
 25 
 
 28 27 
 
 28 
 
 1 
 
 
 24 
 31 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 2 
 
 3 
 
 ■4 
 
 5 6 
 
 7 
 
 8 
 
 Sept 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 'e 
 
 
 9 
 
 IC 
 
 11 
 
 12 13 
 
 14 
 
 15 
 
 7 
 
 fl 
 
 t 
 
 1( 
 
 11 
 
 12 
 
 13 
 
 
 16 
 
 17 
 
 IX 
 
 19 20 
 
 21 
 
 22 
 
 
 1-1 
 
 15 
 
 1« 
 
 17 
 
 Ifl 
 
 IS 
 
 20 
 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 
 21 
 
 22 
 
 2S 
 
 21 
 
 25 
 
 V 
 
 27 
 
 April 
 
 30 
 
 31 
 
 "i 
 
 "2 
 
 ■3 
 
 ■4 
 
 6 
 
 Od 
 
 28 
 
 ? 
 
 30 
 
 "i 
 
 •a 
 
 •3 
 
 "4 
 
 6 
 
 7 
 
 s 
 
 t 
 
 10 
 
 11 
 
 12 1 
 
 
 6 
 
 6 
 
 7 
 
 8 
 
 9^1(1 
 
 11 
 
 
 13 
 
 14 
 
 15 
 
 M 
 
 17 
 
 W 
 
 19 
 
 
 1213 
 
 14 
 
 15 
 
 1817 
 
 18 
 
 
 20 
 
 21 
 
 22 
 
 2J 
 
 24 
 
 25 
 
 26 
 
 
 10 
 
 a 
 
 21 
 
 22 
 
 
 25 
 
 
 27 
 
 2fl 
 
 2(1 
 
 3C 
 
 
 
 
 ilor. 
 
 26 
 
 27 
 
 2S 
 
 2S 
 
 30I3I 
 
 
 May 
 
 
 
 ... 
 
 
 1 
 
 2 
 
 3| 
 
 ... 
 
 
 
 
 ...1... 
 
 ] 
 
 4 
 
 6 
 
 ff 
 
 7 
 
 8 
 
 8 
 
 10 
 
 
 2 
 
 a 
 
 4 
 
 6 
 
 6 7 
 
 8l 
 
 
 11 
 
 12 
 
 ia 
 
 14 
 
 16 
 
 16 
 
 17 
 
 
 9 
 
 1(1 
 
 11 
 
 12 13 14 
 
 15 
 
 
 18 
 
 IS 
 
 2n 
 
 21 
 
 22 
 
 23 248 
 
 If 
 
 17 
 
 If 
 
 19 
 
 20 21 
 
 22I 
 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 3Q 
 
 31 
 
 23 
 
 M 26126 
 
 27 
 
 28 20iJ 
 
 Jme 
 
 "i 
 
 "2 
 
 1 
 
 ■4 
 
 ■fi 
 
 '■« 
 
 "7 Dea 
 
 80 
 
 1 
 
 1 
 
 •3 
 
 "4 
 
 '6 
 
 -8 
 
 
 f 
 
 9 
 
 Ifl 
 
 11 
 
 12 
 
 13 
 
 14 
 
 7 
 
 f 
 
 S 
 
 10 
 
 n 
 
 12 
 
 I3J 
 
 
 IS 
 
 16 
 
 17 
 
 M 
 
 19 
 
 20 
 
 21 U 
 
 14 
 
 U 
 
 Ifl 
 
 17 
 
 1? 
 
 19 2011 
 
 
 22 
 
 n 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28| 
 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 
 27 1 
 
 
 29 
 
 30 
 
 
 
 
 
 ~l 
 
 b29j30|31 
 
 
 ..: 
 
 
 ,...„ 
 II The years for which thfa Calendar stands 1 
 
 || are found lathe Index. | 
 
 5 
 
 8 M TWT F 8 
 
 2 3| 41 6 6 
 9 10 11 12 13 
 
 16 17 18|l9 20 
 23 2> 2&|26 27 
 
 il 
 23 
 30 31 
 
 7 
 14 
 21 
 28 20 
 
 5 6 
 
 8 9 
 15 16 
 22 23 
 
 29 SO 
 
 6 6 
 1213 
 1920 
 
 4 
 11 
 18 
 25 
 
 2 
 8 9 
 
 1516 
 22 23 
 29 30 
 
 July 
 
 A«g. 
 
 SepL 
 
 Od 
 
 Nor. 
 
 13 14 
 
 20121 
 
 T W T F 8 
 
 4 6 
 
 11 12 
 
 18 K 
 
 2 3 
 9 10 
 16 17 
 23 24 
 30 31 
 
 6 7 
 13 14 
 
 2 3 
 
 9 10 
 
 16|17l 
 2:j|24 
 30 31 
 
 5 6 7 
 12 13 14 
 19 20 21 
 26 27 23 
 
 12 3 4 
 
 8 91011 
 
 1516;i718 
 2^|23l24 25 
 23 30:31 ... 
 
 The years for which this Calendar stands 
 are found in the Index. 
 
 
 
 
 
 
 
 
 6 
 
 
 
 
 
 
 
 
 
 
 8 
 
 M 
 
 T 
 
 w 
 
 T 
 
 F 
 
 8 
 
 
 8 
 
 M 
 
 TW 
 
 T F 8 
 
 
 Jll 
 
 
 
 
 
 ■ 
 
 1 
 
 2 
 
 Wj 
 
 
 
 
 1 2 S 
 
 
 
 a 
 
 4 
 
 5 
 
 6 
 
 7 
 
 ti 
 
 s 
 
 4 
 
 5 
 
 6 7 
 
 8 8 10 
 
 
 
 1? 
 
 11 
 
 18 
 
 12 
 19 
 
 13 
 20 
 
 }^ 
 
 16 
 
 22 
 
 16 
 23 
 
 
 11 
 
 18 
 
 12 
 19 
 
 13 14115 16117 
 
 20212223I24 
 
 
 
 24 
 
 26 
 
 28 
 
 27 
 
 28 
 
 29 
 
 30 
 
 
 25 
 
 ■X 
 
 27 
 
 28 
 
 V5> 
 
 30 31] 
 
 
 Feb. 
 
 
 "1 
 
 •2 
 
 -3 
 
 ■4 
 
 "6 
 
 *« 
 
 H 
 
 "i 
 
 "i 
 
 "i 
 
 "4 
 
 "6 
 
 *6 
 
 7 
 
 
 
 7 
 
 « 
 
 8 
 
 10 
 
 11 
 
 12 
 
 U 
 
 fl 
 
 s 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 
 
 14 
 
 15 
 
 Id 
 
 17 
 
 l>f 
 
 IS 
 
 20 
 
 
 15 
 
 Ifl 
 
 17 
 
 Ifl 
 
 IS 
 
 20 
 
 t\ 
 
 
 
 21 
 
 22 
 
 23 
 
 21 
 
 26 
 
 2(1 
 
 27 
 
 
 22 
 
 2a 
 
 24 
 
 25 
 
 26 
 
 27 
 
 2fl 
 
 
 Kar. 
 
 28 
 
 
 "2 
 
 *8 
 
 "4 
 
 *6 
 
 *6 
 
 8ept 
 
 29 
 
 30 
 
 31 
 
 "i 
 
 "2 
 
 "i 
 
 ■4 
 
 
 
 7 
 
 « 
 
 8 
 
 10 
 
 11 
 
 12 
 
 18 
 
 5 
 
 fl 
 
 7 
 
 8 
 
 8 
 
 10 
 
 11 
 
 
 
 14 
 
 15 
 
 16 
 
 17 
 
 Ifl 
 
 18 
 
 20 
 
 
 12 
 
 n 
 
 14 
 
 15116117 
 
 Ifl 
 
 
 
 21 
 
 22 
 
 2J 
 
 24 
 
 25 
 
 2«5 
 
 27 
 
 
 IS 
 
 20 
 
 21 
 
 22i23!24 
 
 25 
 
 
 April 
 
 28 
 
 29 
 
 3C 
 
 31 
 
 
 
 
 
 20 
 
 27 
 
 W 
 
 28 
 
 :«] 
 
 
 
 
 
 
 
 
 1 
 
 2 
 
 Z 
 
 (Id 
 
 
 
 
 
 
 1 
 
 2 
 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 { 
 
 10 
 
 
 
 4 
 
 6 
 
 8 
 
 7 
 
 8 
 
 8 
 
 
 
 11 
 
 
 U 
 
 14 
 
 16 
 
 1£ 
 
 17 
 
 
 
 11 
 
 12 
 
 n 
 
 14 
 
 15 
 
 Ifl 
 
 
 
 18 
 
 
 % 
 
 21 
 
 22 
 
 2S 
 
 24 
 
 
 
 Ifl 
 
 It 
 
 2(1 
 
 21 
 
 22 
 
 23 
 
 
 Kay 
 
 25 
 
 
 27 
 
 28 
 
 29 
 
 30 
 
 
 
 
 25 
 
 28 
 
 27 
 
 28 
 
 29 
 
 80 
 
 
 •2 
 
 "3 
 
 "4 
 
 "5 
 
 "k 
 
 7 
 
 1 
 
 Rot. 
 
 31 
 
 "i 
 
 "2 
 
 "3 
 
 ■4 
 
 '6 
 
 7. 
 
 
 
 8 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 
 7 
 
 fl 
 
 8 
 
 10 
 
 11 
 
 12 
 
 13 
 
 
 
 16 
 
 17 
 
 18 
 
 Id 
 
 20 
 
 21 
 
 22 
 
 
 14 
 
 15 
 
 Ifl 
 
 17 
 
 If 
 
 19 
 
 20 
 
 
 
 23 
 
 'il 
 
 25 
 
 26 
 
 27 
 
 2ft 
 
 29 
 
 
 21 
 
 22 
 
 2:1 
 
 24 
 
 25 
 
 26 
 
 27 
 
 
 Jne 
 
 30 
 
 31 
 
 "i 
 
 2 
 
 "? 
 
 "4 
 
 "5 
 
 Dee. 
 
 28 
 
 29 
 
 30 
 
 1 
 
 *2 
 
 
 "4 
 
 
 
 t 
 
 7 
 
 fl 
 
 9 
 
 10 11 
 
 12 
 
 
 
 fl 
 
 7 
 
 (j 
 
 { 
 
 
 11 
 
 
 
 13 
 
 14 
 
 15 
 
 IG 17 18 
 
 19, 
 
 
 
 13 
 
 14 
 
 16 
 
 M 
 
 
 18 
 
 
 
 20 
 
 21 
 
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 23,24 25 
 
 28 
 
 
 19 
 
 2fl 
 
 21 
 
 22 
 
 23 
 
 
 25 
 
 
 
 27 28 
 
 29 
 
 4„._ 
 
 -II 
 
 
 27 
 
 28 
 
 29 
 
 80 31 
 
 
 
 The years for which this Calendar standBl 
 
 
 are found in the Index. . | 
 
 
 [249] 
 
CHAPTER XX. 
 
 S 
 
 
 
 8 M 
 
 TW 
 
 T F 
 
 SJI 8 m|t 
 
 WT F 8 
 
 
 
 S 
 
 M 
 
 T 
 
 W 
 
 T 
 
 F 
 
 8 
 
 
 == 
 
 = 
 M 
 
 T 
 
 W 
 
 T 
 
 F 
 
 8 
 
 
 
 Jin 
 
 
 
 
 1 
 
 ||w, ........ 
 
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 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 Joiy 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5|6 
 
 7 
 
 
 
 
 2 i 
 
 4 f 
 
 6 71 i 
 
 6 7 8 9 
 
 
 
 s 
 
 s 
 
 U 
 
 11 
 
 12 
 
 If 
 
 14 
 
 8 
 
 n 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 
 
 
 «i( 
 
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 13 14ll5 
 
 ' 10 11 12 
 
 13 14 15 16 
 
 
 
 15 
 
 16 
 
 1' 
 
 If 
 
 1! 
 
 2( 
 
 21 
 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19|2(1 
 
 21 
 
 
 
 
 o.V. 
 
 18 It 
 
 20 2r22 
 
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 20 2122 23 
 
 
 
 w;?.? 
 
 2^ 
 
 25 
 
 26 
 
 27 
 
 28 
 
 
 2'2 
 
 23 
 
 24 
 
 25 
 
 26127 
 
 28 
 
 
 
 
 %-if 
 
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 27 24/23 
 
 242521 
 
 27 28 29 30 
 
 
 
 '.S)!3f 
 
 31 
 
 
 
 
 
 A-g. 
 
 2S 
 
 3(1 
 
 31 
 
 
 
 
 
 
 
 FA 
 
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 . 31 
 
 km ... 1 2 
 
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 Feb. 
 
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 1 
 
 a 
 
 9 
 
 3 
 
 10 
 
 4 
 11 
 
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 8 
 
 10 
 
 4 
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 5 
 
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 10 11 
 
 12 
 
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 IV 
 
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 15 
 
 16 
 
 17 
 
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 117 18 19120 
 
 
 
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 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 
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 21 
 
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 24 
 
 25 
 
 
 
 
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 21 i") 
 
 26 
 
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 2r 
 
 27 
 
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 31 
 
 
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 11 
 
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 11 
 
 12 
 
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 24 
 
 
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 28 29 30 ... 
 
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 5 6 7 8 
 
 
 April 
 
 
 
 
 
 
 
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 2 
 9 
 
 3 4 
 
 10 11 
 
 5 
 
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 6 
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 7 
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 8 
 
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 30|...|... 
 
 25 26 2' 
 
 28|29 30 31 
 
 
 
 
 
 
 30J31 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Tho years for which this Calendar etanda 
 
 The years for which this Calendar stands 
 
 
 
 are found In the Index. 
 
 
 are found in the Index. 
 
 
 9 
 
 
 10 
 
 
 
 n^ 
 
 M 
 
 TW 
 
 TF 
 
 sl 
 
 8MT 
 
 wIt F 8 
 
 
 
 s 
 
 M 
 
 T 
 
 w 
 
 T 
 
 F 
 
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 M 
 
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 — 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 61 
 
 July ... 1 2 
 J 7 9 9 
 
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 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 Julj 
 
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 1 
 
 2 
 
 3 4 
 
 6 
 
 
 
 i 
 
 9 10 
 
 11 12 
 
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 11 12 13 1 
 
 
 6 
 
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 11 
 
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 7 
 
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 21 22 23 24 
 
 
 
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 30 
 
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 6 7 8 
 
 9 10 11 12 
 
 
 6 
 
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 28 
 
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 The years for which this Calendar stands 
 ore found in the Index. 
 
 The years for which this Calendar Btan< 
 
 3s 
 
 
 
 
 axe found In the Index. 
 
 
 [250] 
 
PERPETUAL CALENDAR. 
 
 11 
 
 12 
 
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 27 
 
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 The yean for which this Calendar KBiids (1 
 
 are found in the Index. || 
 
 
 8 
 
 M 
 
 T 
 
 W 
 
 T 
 
 F 
 
 8 
 
 
 8 M 
 
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 7 
 
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 1 81 S 
 
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 11 
 
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 13 
 
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 a0 21!22l23'24;25|2e| 
 
 
 li:20 
 
 21 
 
 22 
 
 23!:il,28i 
 
 
 
 27 23!29,30]. ........ 
 
 
 26|27 28|29 
 
 30l3l|... 
 
 
 Tbe years for which this Calendar BtandB 
 
 
 are found in tbe Index. 
 
 
 13 
 
 10 11 12 13 
 
 17^819 20 
 ^25 28 27 
 
 8 M TW T F 8 
 
 1 2 
 
 7 8 9 
 14 IS 16 
 
 21;22|23 
 
 28129 30 
 
 4 6 6 
 
 11 1213 
 
 1930 
 
 25 26 27 
 
 ■4' 6 
 
 11 12 
 
 18 19 
 
 28 
 
 "2 
 9 
 IS 
 
 I 
 
 14115;.. 
 
 21|22 23 
 28 29 30 
 
 4 "6 "is ., . 
 1112lS^1415 
 
 -' - 21-- 
 
 28 29 SO 
 
 6 6 7 
 12 13 14 
 
 19,2021 
 26 27 28 
 
 J«lj 
 
 Ang, 
 
 Sept 
 
 Oct 
 
 71 Hot. 
 
 1 2 3 4 
 81 gionu 
 
 15 16117181 
 
 22 23:24 250 
 29.30.. 
 
 The years for which this Calendar stands 
 arc found in tbe Index. 
 
 14 
 
 8 M T WT F 8 
 
 5 6 
 12 13 
 
 19i20 
 [26 27 
 
 w, 
 
 6 7 8 
 13 14 18 
 
 20 2122 
 27 28 29 
 
 del 
 
 Dec 
 
 8 MTWT F 8 
 
 21122 23 
 27i28i29 30 
 
 8 
 15 
 
 1415 
 
 2021I22 
 27 28129 
 
 The years for whicb this Calendar Btands 
 are found in tbe Index. 
 
 [251] 
 
CHAPTER XXI. 
 
 Distribution of Earnings — Permanent Plan. 
 
 CALCULATION OF DIVIDEND AND INTEREST. 
 
 There is a great necessity for the utmost care in the 
 calculation and distribution of dividends. It has happened 
 that associations, on account of carelessness or incom- 
 petency in this connection, have become greatly embar- 
 rassed. Great care should be taken in making the calcula- 
 tions 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 impossible to 
 give specific rules that will apply to all associations. Some 
 of the methods are cumbrous and in some instances inac- 
 curate, causing unnecessary work and vexation, 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 interest, 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 
 
 [252] 
 
DISTRIBUTION OF EARNINGS. 
 
 herewith. They will be very valuable for use in those 
 associations following the same plan upon which the tables 
 are based. 
 
 APPLICATION OF PROFITS. 
 
 Profits should be applied as follows : 
 
 1. 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 261). 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 computa- 
 
 [253] 
 
CHAPTER XXI. 
 
 tion 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 $16.20, or dividend upon 
 $324.00. Now turn to the five per cent tables (page 258). 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 $402.00. 
 
 [2541 
 
DISTRIBUTION OF EARNINGS. 
 Shares, $500. — Dues, $1.00 per week. 
 
 TWO PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Thbee 
 
 FODR 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shabes 
 
 Shares 
 
 Shares 
 
 Shares 
 
 1 
 
 2 
 
 
 
 
 
 .012 
 
 3 
 
 
 .010 
 
 .013 
 
 .020 
 
 .023 
 
 4 
 
 
 .015 
 
 .023 
 
 .030 
 
 .040 
 
 5 
 
 .011 
 
 .023 
 
 .035 
 
 .046 
 
 .060 
 
 G 
 
 .016 
 
 .032 
 
 .048 
 
 .065 
 
 .081 
 
 7 
 
 .021 
 
 .043 
 
 .065 
 
 .086 
 
 .110 
 
 8 
 
 .027 
 
 .055 
 
 .083 
 
 .110 
 
 .140 
 
 
 
 .034 
 
 .069 
 
 .104 
 
 .138 
 
 .173 
 
 10 
 
 .042 
 
 .084 
 
 .128 
 
 .169 
 
 .212 
 
 11 
 
 .050 
 
 .101 
 
 .148 
 
 .203 
 
 .254 
 
 12 
 
 .000 
 
 .120 
 
 .180 
 
 .240 
 
 .300 
 
 13 
 
 .070 
 
 .140 
 
 .210 
 
 .280 
 
 .350 
 
 U 
 
 .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 
 
 [255] 
 
CHAPTER XXL 
 Shares, $500.— Dues, $1.00 per week. 
 
 THREE PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Shares 
 
 1 
 
 2 
 
 
 
 .011 
 
 .014 
 
 .020 
 
 3 
 
 
 .014 
 
 .020 
 
 .027 
 
 .034 
 
 4 
 
 .011 
 
 .023 
 
 .034 
 
 .045 
 
 .057 
 
 5 
 
 .017 
 
 .035 
 
 .052 
 
 .070 
 
 .087 
 
 6 
 
 .024 
 
 .048 
 
 .073 
 
 .097 
 
 .121 
 
 7 
 
 .032 
 
 .065 
 
 .097 
 
 .130 
 
 .162 
 
 8 
 
 .041 
 
 .083 
 
 .124 
 
 .165 
 
 .207 
 
 9 
 
 .051 
 
 .104 
 
 .155 
 
 .207 
 
 .269 
 
 10 
 
 .063 
 
 .127 
 
 .192 
 
 .254 
 
 .318 
 
 11 
 
 .076 
 
 .152 
 
 .222 
 
 .305 
 
 .381 
 
 12 
 
 .090 
 
 .180 
 
 .270 
 
 .360 
 
 .450 
 
 13 
 
 .105 
 
 .210 
 
 .315 
 
 .420 
 
 .525 
 
 14 
 
 .121 
 
 .242 
 
 .364 
 
 .485 
 
 .606 
 
 15 
 
 .138 
 
 .277 
 
 .415 
 
 .554 
 
 .693 
 
 16 
 
 .157 
 
 .314 
 
 .470 
 
 .627 
 
 .784 
 
 17 
 
 .176 
 
 .353 
 
 .529 
 
 .705 
 
 .882 
 
 18 
 
 .197 
 
 .395 
 
 .592 
 
 .790 
 
 .987 
 
 19 
 
 .219 
 
 .438 
 
 .658 
 
 .877 
 
 1.096 
 
 20 
 
 .242 
 
 .485 
 
 .727 
 
 .970 
 
 1.212 
 
 21 
 
 .266 
 
 .533 
 
 .799 
 
 1.065 
 
 1.332 
 
 22 
 
 .292 
 
 .584 
 
 .875 
 
 1.167 
 
 1.459 
 
 23 
 
 .318 
 
 .636 
 
 .955 
 
 1.273 
 
 1.591 
 
 24 
 
 .345 
 
 .692 
 
 1.040 
 
 1.385 
 
 1.721 
 
 25 
 
 .375 
 
 .750 
 
 1.125 
 
 1.500 
 
 1.875 
 
 26 
 
 .410 
 
 .810 
 
 1.215 
 
 1.620 
 
 2.025 
 
 [256] 
 
DISTRIBUTION OF EARNINGS. 
 Shares, $500.— Dues, $1.00 per week. 
 
 FOUR PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Thrbk 
 
 Four 
 
 Five 
 
 Weeks 
 
 Shabe 
 
 Shakes 
 
 Shakes 
 
 Shares 
 
 Shares 
 
 1 
 
 2 
 
 
 .010 
 
 .014 
 
 .020 
 
 .024 
 
 3 
 
 
 .018 
 
 .027 
 
 .037 
 
 .046 
 
 4 
 
 .015 
 
 .031 
 
 .045 
 
 .061 
 
 .076 
 
 5 
 
 .023 
 
 .046 
 
 .069 
 
 .093 
 
 .116 
 
 6 
 
 .032 
 
 .065 
 
 .097 
 
 .130 
 
 .162 
 
 7 
 
 .043 
 
 .086 
 
 .129 
 
 .173 
 
 .216 
 
 8 
 
 .055 
 
 .110 
 
 .165 
 
 .221 
 
 .276 
 
 9 
 
 .069 
 
 .140 
 
 .207 
 
 .277 
 
 .346 
 
 10 
 
 .085 
 
 .169 
 
 .255 
 
 .340 
 
 .424 
 
 11 
 
 .101 
 
 .203 
 
 .305 
 
 .406 
 
 .510 
 
 12 
 
 .120 
 
 .240 
 
 .360 
 
 .480 
 
 .600 
 
 13 
 
 .122 
 
 .280 
 
 .420 
 
 .560 
 
 .700 
 
 14 
 
 .161 
 
 .323 
 
 .485 
 
 .646 
 
 .810 
 
 15 
 
 .185 
 
 .370 
 
 .554 
 
 .740 
 
 .924 
 
 16 
 
 .209 
 
 .420 
 
 .627 
 
 .837 
 
 1.046 
 
 17 
 
 .235 
 
 .470 
 
 .705 
 
 .940 
 
 1.176 
 
 18 
 
 .263 
 
 .526 
 
 .790 
 
 1.053 
 
 1.316 
 
 19 
 
 .292 
 
 .585 
 
 .877 
 
 1.170 
 
 1.462 
 
 20 
 
 .323 
 
 .646 
 
 .970 
 
 1.293 
 
 1.616 
 
 21 
 
 .355 
 
 .710 
 
 1.065 
 
 1.421 
 
 1.776 
 
 22 
 
 .389 
 
 .7.^0 
 
 1.167 
 
 1.557 
 
 1.946 
 
 23 
 
 .424 
 
 .850 
 
 1.273 
 
 1.697 
 
 2.122 
 
 24 
 
 .460 
 
 .923 
 
 1.384 
 
 1.846 
 
 2.310 
 
 25 
 
 ,500 
 
 1.000 
 
 1.500 
 
 2.000 
 
 2.500 
 
 26 
 
 .540 
 
 1.080 
 
 1.620 
 
 2.160 
 
 2.700 
 
 [2571 
 
CHAPTER XXL 
 Shares, $500.— Dues, $1.00 per week. 
 
 FIVE PER CENT TABLES. 
 
 T 
 
 No. 
 
 One 
 
 Twq 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Shares 
 
 1 
 
 
 
 
 
 .010 
 
 2 
 
 
 .012 
 
 .020 
 
 .024 
 
 .030 
 
 3 
 
 .011 
 
 .023 
 
 .034 
 
 .046 
 
 .057 
 
 4 
 
 .020 
 
 .039 
 
 .057 
 
 .076 
 
 .095 
 
 5 
 
 .029 
 
 .058 
 
 .087 
 
 .116 
 
 .145 
 
 6 
 
 .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 
 
 .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 
 
 2.885 
 
 26 
 
 .625 
 
 1.250 
 
 1.875 
 
 2.500 
 
 3.125 
 
 26 
 
 .675 
 
 1.350 
 
 2.025 
 
 2.700 
 
 3.375 
 
 [258] 
 
DISTRIBUTION OF EARNINGS. 
 Shares, $500.— Dues, $1.00 per week. 
 
 SIX PER CENT TABLES. 
 
 NO. 
 
 Omk 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shares 
 
 Shares 
 
 Shares 
 
 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 
 
 [259] 
 
CHAPTER XXI. 
 Shares, $5C0.— Dues, $1.00 per week. 
 
 SEVEN PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Shares 
 
 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 
 
 U 
 
 .283 
 
 .565 
 
 .850 
 
 1.151 
 
 1.414 
 
 15 
 
 .323 
 
 .647 
 
 .970 
 
 1.293 
 
 1.617 
 
 m 
 
 .366 
 
 .732 
 
 1.098 
 
 1.464 
 
 1.830 
 
 17 
 
 .411 
 
 .823 
 
 1.235 
 
 1.646 
 
 2.060 
 
 18 
 
 .460 
 
 .921 
 
 1.381 
 
 1.842 
 
 2.303 
 
 19 
 
 .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 
 
 23 
 
 .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 
 
 1.890 
 
 2.835 
 
 3.780 
 
 4.725 
 
 [260] 
 
DISTRIBUTION OF EARNINGS. 
 Shares, $500.— Dues, $1.00 per week. 
 
 EIGHT PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Shares 
 
 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 
 
 .560 
 
 .840 
 
 1.120 
 
 1.400 
 
 14 
 
 .323 
 
 .646 
 
 .970 
 
 1.293 
 
 1.616 
 
 15 
 
 .369 
 
 .740 
 
 1.108 
 
 1.478 
 
 1.850 
 
 m 
 
 .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 
 
 [261] 
 
CHAPTER XXi: 
 Shares, $500.— Dues, $1.00 per week. 
 
 NINE PER CENT TABLES. 
 
 No. 
 
 ONE 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Wekks 
 
 8UAKK 
 
 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 
 
 U 
 
 .363 
 
 .727 
 
 1.090 
 
 1.454 
 
 1.820 
 
 15 
 
 .416 
 
 .831 
 
 1.247 
 
 1.663 
 
 2.080 
 
 16 
 
 .471 
 
 .941 
 
 1.412 
 
 1.8.S3 
 
 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 
 
 2.864 
 
 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 
 
 4.860 
 
 6.075 
 
 f262] 
 
DISTRIBUTION OF EARNINGS. 
 Shares, $500. — Dues, $1.00 per week. 
 
 TEN PER CENT TABLES. 
 
 NO. 
 
 One 
 
 Two 
 
 Three 
 
 Pour 
 
 Five 
 
 Weeks 
 
 Share 
 
 Sharks 
 
 Shares 
 
 Shares 
 
 Shares 
 
 1 
 
 
 .010 
 
 .012 
 
 .016 
 
 .020 
 
 2 
 
 .012 
 
 .024 
 
 .036 
 
 .050 
 
 .060 
 
 B 
 
 .023 
 
 .046 
 
 .070 
 
 .092 
 
 .115 
 
 4 
 
 .040 
 
 .078 
 
 .114 
 
 .152 
 
 .190 
 
 5 
 
 .060 
 
 .116 
 
 .174 
 
 .232 
 
 .290 
 
 6 
 
 .081 
 
 .162 
 
 .243 
 
 .824 
 
 .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 
 
 {a«3] 
 
CHAPTER XXI. 
 Shares, $500.— Dues, $1.00 per week. 
 
 ELEVEN PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Thbeb 
 
 Four 
 
 Five 
 
 WXSKS 
 
 Share 
 
 Shabes 
 
 Shabes 
 
 Shares 
 
 Shares 
 
 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 
 
 .:H56 
 
 .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 
 
 U 
 
 .444 
 
 .890 
 
 1.333 
 
 1.777 
 
 2.222 
 
 15 
 
 .510 
 
 1.016 
 
 1.524 
 
 2.033 
 
 2.541 
 
 16 
 
 .575 
 
 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 
 
 6.875 
 
 26 
 
 1.485 
 
 2.970 
 
 4.455 
 
 5.940 
 
 7.425 
 
 [264] 
 
DISTRIBUTION OF EARNINGS. 
 Shares, $500.— Dues, $1.00 per week. 
 
 TWELVE PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 FIVB 
 
 Weeks 
 
 Share 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Sharks 
 
 1 
 
 
 .010 
 
 .014 
 
 .020 
 
 .024 
 
 2 
 
 .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 
 
 6.330 
 
 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 
 
 [265] 
 
CHAPTER XXI. 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 TWO PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 \Ar£BKS 
 
 Shabk 
 
 Shabes 
 
 Shares 
 
 Shares 
 
 Shares 
 
 1 
 
 2 
 3 
 
 
 
 
 .010 
 
 .010 
 
 4: 
 
 
 
 .012 
 
 .015 
 
 .020 
 
 5 
 
 
 .\fll 
 
 .020 
 
 .023 
 
 .030 
 
 6 
 
 ,010 
 
 .016 
 
 .024 
 
 .033 
 
 .040 
 
 7 
 
 aMO 
 
 .021 
 
 .033 
 
 .043 
 
 .054 
 
 8 
 
 .013 
 
 .027 
 
 .042 
 
 .055 
 
 .070 
 
 9 
 
 ..017 
 
 .034 
 
 .052 
 
 .070 
 
 .086 
 
 10 
 
 .021 
 
 .043 
 
 .064 
 
 .084 
 
 .106 
 
 n 
 
 .026 
 
 .050 
 
 .074 
 
 .101 
 
 .127 
 
 It ^ 
 
 • ,030 
 
 .060 
 
 .090 
 
 .120 
 
 .150 
 
 n 
 
 .035 
 
 .070 
 
 .105 
 
 .140 
 
 .175 
 
 14 
 
 .an 
 
 .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 
 
 .131 
 
 .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 
 
 .677 
 
 25 
 
 .125 
 
 .250 
 
 .375 
 
 .500 
 
 .625 
 
 26 
 
 .135 
 
 .270 
 
 .405 
 
 .540 
 
 .675 
 
 [266] 
 
DISTRIBUTION OF EARNINGS. * 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 THREE PER CENT TABLES. 
 
 NO. 
 
 One 
 
 Two 
 
 Three 
 
 Foxm 
 
 FIVB 
 
 WKEK8 
 
 Shark 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Shabxs 
 
 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 
 
 .162 
 
 .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 
 
 .892 
 
 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 
 
 [267] 
 
CHAPTER XXI. 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 FOUR PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 SHARE 
 
 Shares 
 
 Shares 
 
 Shares 
 
 Shares 
 
 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 
 
 1.350 
 
 [268] 
 
DISTRIBUTION OF EARNINGS. 
 Shares, $250 or $500.— Dues, 50c. per week. 
 
 FIVE PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shakes 
 
 Shares 
 
 Shares 
 
 Sharks 
 
 1 
 
 2 
 
 
 
 .010 
 
 .012 
 
 .015 
 
 3 
 
 
 .011 
 
 .017 
 
 .023 
 
 .030 
 
 4 
 
 .010 
 
 .020 
 
 .030 
 
 .040 
 
 .047 
 
 5 
 
 .014 
 
 .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 
 
 14 
 
 .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 j 
 
 25 
 
 .312 
 
 .620 
 
 .932 
 
 1.250 
 
 1.562 ( 
 
 26 
 
 .337 
 
 .670 
 
 1.012 
 
 1.350 
 
 1.687 i 
 
 [269] 
 
CHAPTER XXI. 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 SIX PER CENT TABLES. 
 
 No. 
 Weeks 
 
 1 
 
 2 
 3 
 
 4: 
 
 5 
 6 
 7 
 8 
 9 
 10 
 11 
 12 
 13 
 U 
 15 
 16 
 17 
 18 
 19 
 20 
 21 
 32 
 23 
 24 
 26 
 26 
 
 One 
 Share 
 
 ,012 
 
 ,020 
 ,024 
 .033 
 .041 
 .052 
 .063 
 .076 
 .090 
 .105 
 .121 
 .140 
 .157 
 .177 
 .197 
 .220 
 .243 
 .266 
 .292 
 .320 
 .346 
 .375 
 .405 
 
 Two 
 Shares 
 
 014 
 ,024 
 .032 
 .050 
 .064 
 .082 
 .103 
 .127 
 .153 
 .180 
 .210 
 .243 
 .277 
 .313 
 .352 
 .394 
 .440 
 .484 
 .532 
 .583 
 .636 
 .693 
 .750 
 .810 
 
 Three 
 
 Shares 
 
 .010 
 .020 
 .034 
 .052 
 .073 
 .097 
 .124 
 .155 
 .191 
 .230 
 .270 
 .315 
 .363 
 .415 
 .470 
 .530 
 .597 
 .657 
 .727 
 .800 
 .900 
 .954 
 1.040 
 1.125 
 1.210 
 
 Four 
 Shares 
 
 .015 
 
 .027 
 
 .045 
 
 .070 
 
 .097 
 
 .130 
 
 .165 
 
 .207 
 
 .255 
 
 .304 
 
 .360 
 
 .420 
 
 .484 
 
 .554 
 
 .627 
 
 .705 
 
 .790 
 
 .877 
 
 .970 
 
 1.065 
 
 1.167 
 
 1.273 
 
 1.384 
 
 1.500 
 
 1.620 
 
 Five 
 Shares 
 
 .020 
 
 .034 
 
 .054 
 
 .087 
 
 .121 
 
 .162 
 
 .207 
 
 .260 
 
 .320 
 
 .381 
 
 .450 
 
 .525 
 
 .606 
 
 .693 
 
 .784 
 
 .882 
 
 .987 
 
 1.096 
 
 1.212 
 
 1.332 
 
 1.460 
 
 1.591 
 
 1.731 
 
 1.875 
 
 2.025 
 
 [270] 
 
DISTRIBUTION OF EARNINGS. 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 |i_ 
 
 SEVEN PER CENT TABLES. 
 
 NO. 
 
 Onx 
 
 Tvro 
 
 Thkee 
 
 FOXTR 
 
 Fnr» 
 
 Weeks 
 
 Share 
 
 Shakes 
 
 Shares 
 
 SHARES 
 
 Shares 
 
 1 
 
 2 
 
 
 MO 
 
 .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 
 
 .060 
 
 .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 
 
 [271] 
 
CHAPTER XXI. 
 Shares, $250 or $500.— Dues, 50c. per week. 
 
 EIGHT PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 Shares 
 
 Shares 
 
 Sharks 
 
 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 
 
 .255 
 
 .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 
 
 2! 
 
 .355 
 
 .711 
 
 1.065 
 
 1.420 
 
 1.776 
 
 22 
 
 .390 
 
 .780 
 
 1.16?. 
 
 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 
 
 [272] 
 
DISTRIBUTION OF EARNINGS. 
 Shares, $250 or $500.— Dues, 50c. per week. 
 
 NINE PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 FIVK 
 
 Weeks 
 
 Shark 
 
 Shares 
 
 SHARES 
 
 Shares 
 
 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 
 
 U 
 
 .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 
 
 [273] 
 
CHAPTER XXI. 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 TEN PER CENT TABLES. 
 
 No. 
 
 ONE 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Weeks 
 
 Share 
 
 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 
 
 26 
 
 .670 
 
 1.350 
 
 2.025 
 
 2.700 
 
 3.375 
 
 [274] 
 
DISTRIBUTION OF EARNINGS. 
 Shares, $250 or $500.— Dues, 50c. per week. 
 
 ELEVEN PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Thbee 
 
 FOUB 
 
 Five 
 
 Weeks 
 
 Shabe 
 
 Shares 
 
 Shabes 
 
 Shares 
 
 Shabes 
 
 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 
 
 [275] 
 
CHAPTER XXL 
 Shares, $250 or $500. — Dues, 50c. per week. 
 
 TWELVE PER CENT TABLES. 
 
 No. 
 
 One 
 
 Two 
 
 Three 
 
 Four 
 
 Five 
 
 Wekks 
 
 Share 
 
 Shares 
 
 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 
 
 U 
 
 .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 
 
 3.750 
 
 26 
 
 .810 
 
 1.620 
 
 2.430 
 
 3.240 
 
 4.050 
 
 [276] 
 
DISTRIBUTION OF EARNINGS. 
 
 PERMANENT PLAN— SYSTEM II. 
 EXPLANATION. 
 
 TO FIND THE AMOUNT UPON WHICH DIVIDENDS FOR ONE SHARE IS TO 
 
 BE DECLARED. 
 
 Rule. Add together the number of zveeks each Si has been 
 paid in. Divide this total by the number of weeks in the term. The 
 quotient gives the average amount to he 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 Q**/n times. Since it is not convenient 
 to calculate interest at 6 **/«i 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 is semi-annual dividend, the rate being 6 per cent per annum? 
 From the table on page 249 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. 
 
 [277] 
 
CHAPTER XXL 
 
 TO FIND AMY 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 $n.02. 
 
 The first of the following tables shows the total number 
 of weeks' credit on $1 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 1 to 26 and for any number of shares from 1 to 10 : 
 
 [278] 
 
DISTRIBUTION OF EARNINGS. 
 
 
 ss 
 
 ■^ 69 
 
 CO «r .n «o 
 
 i> 
 
 00 
 
 Oi 
 
 o 
 
 ^ 
 
 e^ 
 
 Ci 
 
 »• in 
 
 to 
 
 $: 
 
 00 
 
 s 
 
 8 
 
 M 
 
 asssisgi 
 
 
 ■o 
 
 M 
 
 ^cv.«^ooi^^ocj-cv«5;o;^t300ojgj-g5g5g;g5g 
 
 
 S 
 
 «eyco^o»t-<»o> = ;-c2«5;o«C2002g25l5SS5 
 
 i 
 
 
 S 
 
 ■p<e«ico.*.o«>c»<»o>o — ejco^jj^r^ooog'-e^gj 
 
 § 
 
 
 S3 
 
 •^cjeo^ciowt^QOoiojjcj^SSS^iSSSSwc^ 
 
 a 
 
 i 
 
 5 
 
 ■,-iC*««»iOtOI>aOOJO'^C>*CO«»«.rtOl--QOOVO'- 
 
 3 
 
 \ 
 
 s 
 
 ■^Mco^rfjtot^flOOJOvj^co^roi^rjooojg^ 
 
 § 
 
 % 
 
 0> 
 
 •^(^^«^rf^«ot^aoo>o^c*c2«rrf2»l^aooj 
 
 § 1 
 
 C4 
 
 ee 
 
 T«c»«^>o«£>t>»aoo>o»2C»r25I^^5;52 
 
 s 1 
 
 
 
 r* 
 
 ▼«C<«W«l".O-<Ot>00O>O;«C22«!;rfJ2t;; 
 
 "- __ __J 
 
 1H 
 
 CD 
 
 ^C<«^rf1X)C*00C»O^«C2«IJ^^ 
 
 s 1 
 
 
 
 lO 
 
 T-W«^ift<Ot^OOO»O^CJC2^^ 
 
 S i 
 
 (D 
 2 
 
 •- 
 
 ^wec*»'.ox>t-ooo>o-;«?2<;^ 1 
 
 « 
 
 ^c>»«.«»>^»t*ooo>o^e2C2 
 
 3> 
 
 I 
 
 M 
 
 ^es«^o«ot*aoo4©j;ff» 
 
 S 
 
 h 
 
 = 
 
 ^ « CO -«■ .n <o t- 00 o» o - 
 
 -1 
 
 2 
 
 ^c*eo'*»o«ot'<»o>e 
 
 5 
 
 1 
 
 0» 
 
 'MC4co«i<in(Ot^aoo> 
 
 . 
 
 00 
 
 ■^c>tco«>n«er«ao 
 
 1 
 
 s 
 
 E 
 
 r- 
 
 — M M -I- UD so t* 
 
 J 
 
 CD 
 
 •-. c* CO •«»'»« «o 
 
 1 
 
 D 
 W 
 
 le 
 
 ▼« W « ^ in .rs 
 
 
 '» 
 
 ■»- M M -r o 
 
 
 « 
 
 r-T 
 
 
 M 
 
 '" 
 
 1 
 
 
 - 
 
 T 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 \ 
 
 [279] 
 
CHAPTER XXL 
 
 1 share at 50 cents. 
 
 2 shares at dOc. or i share at $1. 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount. 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount 
 
 1 
 
 .50 
 
 .019 
 
 1 
 
 1.00 
 
 .03 
 
 2 
 
 1.00 
 
 .057 
 
 2 
 
 2.00 
 
 .11 
 
 3 
 
 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 
 
 23 
 
 11.50 
 
 5.31 
 
 23 
 
 23.00 
 
 10.62 
 
 24 
 
 12.00 
 
 5.77 
 
 24 
 
 24.00 
 
 11.54 
 
 25 
 
 12.50 
 
 6.25 
 
 25 
 
 25.00 
 
 12.50 
 
 26 
 
 13.00 
 
 6.75 
 
 26 
 
 26.00 
 
 13.50 
 
 [280] 
 
DISTRIBUTION OF EARNINGS. 
 
 3 shares at 50 cents. 
 
 4 shares at dOc. or 2 shares at |1. 
 
 w^ 
 
 DUES. 
 
 Average 
 Amount. 
 
 Week. 
 
 DUES. 
 
 A*=t' 
 
 1 
 
 1.50 
 
 .05 
 
 1 
 
 2.00 
 
 .07 
 
 2 
 
 3.00 
 
 .17 1 
 
 2 
 
 4.00 
 
 .22 
 
 8 
 
 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 
 
 8 
 
 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 1 
 
 11 
 
 22.00 
 
 5.08 
 
 12 
 
 18.00 
 
 4.50 1 
 
 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 
 
 13.32 
 
 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 
 
 1281] 
 
CHAPTER XXI. 
 
 5 ihares at 50 cents. 
 
 6 shares at 90c. or 3 shares at $1. 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount. 
 
 Week. 
 
 1 
 
 DUES. 
 
 Average 
 Amount. 
 
 1 
 
 2.50 
 
 .09 
 
 3.00 
 
 .11 
 
 2 
 
 5.Q0 
 
 .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 
 
 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 
 
 29.16 
 
 23 
 
 57.50 
 
 26.55 
 
 23 
 
 69.00 
 
 31.86 
 
 24 
 
 60.00 
 
 28.85 
 
 24 
 
 72.00 
 
 34.62 
 
 25 
 
 62.50 
 
 31.25 
 
 25 
 
 75.00 
 
 37.50 
 
 26 
 
 65.00 
 
 33.75 
 
 26 
 
 78.00 
 
 40.50 
 
 [282] 
 
DISTRIBUTION OF EARNINGS. 
 
 7 shares at 50 cents. 
 
 8 shares at 50c. or 4 shares at $1 
 
 Week. 
 
 DUES. 
 
 Average 1 
 Amouirt. 1 
 
 Week. 
 1 
 
 DUES. 
 
 Average 
 Amount. 
 
 1 
 
 3.50 
 
 .13 
 
 4.00 
 
 .15 
 
 2 
 
 7.00 
 
 .39 
 
 2 
 
 8.00 
 
 .45 
 
 3 
 
 10.50 
 
 .80 
 
 3 
 
 12.00 
 
 .92 
 
 4 
 
 14.00 
 
 1.34 
 
 4 
 
 16.00 
 
 1.53 
 
 5 
 
 17.50 
 
 2.01 
 
 5 
 
 20.00 
 
 2.30 
 
 6 
 
 ai.oo 
 
 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 
 
 6.05 
 
 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 
 
 22 
 
 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 
 
 [283] 
 
CHAPTER XXI. 
 
 9 shares at 50 cents. 
 
 10 shares at 50c. or 5 shares at $1. 
 
 Week. 
 
 DUES. 
 
 Average 
 Amount. 
 
 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 
 
 45.00 
 
 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 
 
 26 
 
 117.00 
 
 60.75 
 
 26 
 
 130.00 
 
 67.50 
 
 [284] 
 
DISTRIBUTION OF EARNINGS. 
 
 4 per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .02 
 
 88 
 
 .76 
 
 75 
 
 1.50 
 
 2 
 
 .04 
 
 89 
 
 •78 
 
 76 
 
 1.52 
 
 8 
 
 .06 
 
 40 
 
 .80 
 
 77 
 
 1.54 
 
 4 
 
 .08 
 
 41 
 
 .82 
 
 78 
 
 1.56 
 
 5 
 
 .10 
 
 42 
 
 .84 
 
 79 
 
 1.58 
 
 6 
 
 .12 
 
 48 
 
 .86 
 
 80 
 
 1.60 
 
 7 
 
 .14 
 
 44 
 
 .88 
 
 81 
 
 1.62 
 
 8 
 
 .16 
 
 45 
 
 .90 
 
 82 
 
 1.64 
 
 9 
 
 .18 
 
 46 
 
 .92 
 
 88 
 
 1.66 
 
 10 
 
 .20 
 
 47 
 
 .94 
 
 84 
 
 1.68 
 
 11 
 
 .22 
 
 48 
 
 .96 
 
 85 
 
 1.70 
 
 12 
 
 .24 
 
 49 
 
 .98 
 
 86 
 
 1.72 
 
 18 
 
 .26 
 
 50 
 
 1.00 
 
 87 
 
 1.74 
 
 14 
 
 .28 
 
 51 
 
 1.02 
 
 88 
 
 1.76 
 
 15 
 
 .80 
 
 52 
 
 1.04 
 
 89 
 
 1.78 
 
 16 
 
 .82 
 
 58 
 
 1.06 
 
 90 
 
 1.80 
 
 17 
 
 .34 
 
 54 
 
 1.08 
 
 91 
 
 1.82 
 
 18 
 
 .36 
 
 55 
 
 1.10 
 
 92 
 
 1.84 
 
 19 
 
 .88 
 
 56 
 
 1.12 
 
 98 
 
 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 
 
 28 
 
 .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 
 
 1.80 
 
 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 
 
 82 
 
 .64 
 
 69 
 
 1.38 
 
 600 
 
 12.00 
 
 88 
 
 .66 
 
 70 
 
 1.40 
 
 700 
 
 14.00 
 
 84 
 
 .68 
 
 71 
 
 1.42 
 
 800 
 
 16.00 
 
 85 
 
 .70 
 
 72 
 
 1.44 
 
 900 
 
 18.00 
 
 86 
 
 .72 
 
 78 
 
 1.46 
 
 1000 
 
 20.00 
 
 87 
 
 .74 
 
 74 
 
 1.48 
 
 
 
 Calculation for six months. 
 [285] 
 
CHAPTER XXI. 
 
 4% per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .02 
 
 38 
 
 .81 
 
 75 
 
 1.59 
 
 2 
 
 .04 
 
 39 
 
 .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 
 
 .23 
 
 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 
 
 15 
 
 .32 
 
 52 
 
 1.10 
 
 89 
 
 1.89 
 
 16 
 
 .34 
 
 53 
 
 1.13 
 
 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 
 
 1.23 
 
 95 
 
 2.02 
 
 22 
 
 .47 
 
 59 
 
 1.25 
 
 96 
 
 2.04 
 
 23 
 
 .49 
 
 60 
 
 1.27 
 
 97 
 
 2.06 
 
 24 
 
 .51 
 
 61 
 
 1.30 
 
 98 
 
 2.08 
 
 25 
 
 .53 
 
 62 
 
 1.32 
 
 99 
 
 2.10 
 
 26 
 
 .55 
 
 63 
 
 1.34 
 
 
 
 27 
 
 .57 
 
 64 
 
 1.36 
 
 100 
 
 2.12 
 
 28 
 
 .59 
 
 65 
 
 1.38 
 
 200 
 
 4.25 
 
 29 
 
 .62 
 
 66 
 
 1.40 
 
 800 
 
 6.37 
 
 30 
 
 .64 
 
 67 
 
 1.42 
 
 400 
 
 8.50 
 
 31 
 
 .66 
 
 68 
 
 1.44 
 
 500 
 
 10.62 
 
 32 
 
 .68 
 
 69 
 
 1.47 
 
 600 
 
 12.75 
 
 33 
 
 .70 
 
 70 
 
 1.49 
 
 700 
 
 14.87 
 
 34 
 
 .72 
 
 71 
 
 1.51 
 
 800 
 
 17.00 
 
 35 
 
 .74 
 
 72 
 
 1.53 
 
 900 
 
 19.12 
 
 36 
 
 .76 
 
 78 
 
 1.55 
 
 1000 
 
 21.25 
 
 37 
 
 .79 
 
 74 
 
 1.57 
 
 
 
 Calculation for six months, 
 [286] 
 
DISTRIBUTION OF EARNINGS. 
 
 4>^ per cent table. 
 
 DoHars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .02 
 
 38 
 
 .85 
 
 75 
 
 1.69 
 
 2 
 
 .04 
 
 39 
 
 .88 
 
 76 
 
 1.71 
 
 3 
 
 .07 
 
 40 
 
 .90 
 
 77 
 
 1.73 
 
 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 
 
 15 
 
 .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 
 
 1.33 
 
 96 
 
 2.16 
 
 23 
 
 .52 
 
 60 
 
 1.35 
 
 97 
 
 2.18 
 
 24 
 
 .54 
 
 61 
 
 1.37 
 
 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 
 
 31 
 
 .70 
 
 68 
 
 1.53 
 
 500 
 
 11.25 
 
 32 
 
 .72 
 
 69 
 
 1.55 
 
 600 
 
 13.50 
 
 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 
 
 73 
 
 1.64 
 
 1000 
 
 22.50 
 
 37 
 
 .83 
 
 74 
 
 1.66 
 
 
 
 Calculation for six months. 
 
 [287] 
 
CHAPTER XXL 
 
 4}i per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .02 
 
 88 
 
 .90 
 
 75 
 
 1.78 
 
 2 
 
 .05 
 
 89 
 
 .98 
 
 76 
 
 1.80 
 
 8 
 
 .07 
 
 40 
 
 .95 
 
 77 
 
 1.88 
 
 4 
 
 .09 
 
 41 
 
 .97 
 
 78 
 
 1.85 
 
 6 
 
 .12 
 
 42 
 
 1.00 
 
 79 
 
 1.88 
 
 6 
 
 .14 
 
 48 
 
 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 
 
 85 
 
 2.02 
 
 12 
 
 .28 
 
 49 
 
 1.16 
 
 86 
 
 2.04 
 
 13 
 
 .81 
 
 50 
 
 1.19 
 
 87 
 
 2.07 
 
 14 
 
 .88 
 
 51 
 
 1.21 
 
 88 
 
 2.09 
 
 16 
 
 .86 
 
 52 
 
 1.28 
 
 89 
 
 2.11 
 
 16 
 
 .88 
 
 58 
 
 1.26 
 
 90 
 
 2.14 
 
 17 
 
 .40 
 
 54 
 
 1.28 
 
 91 
 
 2.16 
 
 18 
 
 .48 
 
 55 
 
 1.81 
 
 92 
 
 2.18 
 
 19 
 
 .45 
 
 56 
 
 1.38 
 
 93 
 
 2.21 
 
 20 
 
 .47 
 
 57 
 
 1.85 
 
 94 
 
 2.23 
 
 21 
 
 .50 
 
 58 
 
 1.38 
 
 95 
 
 2.26 
 
 22 
 
 .52 
 
 59 
 
 1.40 
 
 96 
 
 2.28 
 
 28 
 
 .55 
 
 60 
 
 1.42 
 
 97 
 
 2.30 
 
 24 
 
 .57 
 
 61 
 
 1.45 
 
 98 
 
 2.38 
 
 25 
 
 .59 
 
 62 
 
 1.47 
 
 99 
 
 2.85 
 
 26 
 
 .62 
 
 68 
 
 1.50 
 
 
 
 27 
 
 .64 
 
 64 
 
 1.52 
 
 100 
 
 2.37 
 
 28 
 
 .66 
 
 65 
 
 1.54 
 
 200 
 
 4.75 
 
 29 
 
 .69 
 
 66 
 
 1.57 
 
 800 
 
 7.12 
 
 80 
 
 .71 
 
 67 
 
 1.59 
 
 400 
 
 9.50 
 
 81 
 
 .74 
 
 68 
 
 1.61 
 
 500 
 
 11.87 
 
 82 
 
 .76 
 
 69 
 
 1.64 
 
 600 
 
 14.25 
 
 88 
 
 .78 
 
 70 
 
 1.66 
 
 700 
 
 16.62 
 
 84 
 
 .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. 
 
 [288] 
 
DISTRIBUTION OF EARNINGS. 
 
 6 per cent table. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .02 
 
 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 
 
 8 
 
 .20 
 
 45 
 
 1.12 
 
 82 
 
 2.05 
 
 9 
 
 .22 
 
 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 
 
 J. 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. 
 [2891 
 
CHAPTER XXL 
 
 6i 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 
 
 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 
 
 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 
 
 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 
 
 35 
 
 .92 
 
 72 
 
 1.89 
 
 900 
 
 23.62 
 
 36 
 
 .94 
 
 73 
 
 1.92 
 
 1000 
 
 26.25 
 
 37 
 
 .97 
 
 74 
 
 1.94 
 
 
 
 Calculation for six months. 
 [290] 
 
DISTRIBUTION OF EARNINGS. 
 
 6^ per cent table. 
 
 Dollars. 
 
 Interest 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 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. 
 [291] 
 
CHAPTER XXL 
 
 6f 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 
 
 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 
 
 1.58 
 
 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 
 
 900 
 
 25.87 
 
 36 
 
 1.03 
 
 73 
 
 2.10 
 
 1000 
 
 28.75 
 
 37 
 
 1.06 
 
 74 
 
 2.13 
 
 
 
 Calculation for six months. 
 [292] 
 
DISTRIBUTION OF EARNINGS. 
 
 6 per cent table. 
 
 Dollars. 
 
 interest. 
 
 Dollars. 
 
 Interest 
 
 DoKars. 
 
 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 
 
 24.00 
 
 35 
 
 1.05 
 
 72 
 
 2.16 
 
 900 
 
 27.00 
 
 36 
 
 1.08 
 
 73 
 
 2.19 
 
 1000 
 
 30.00 
 
 37 
 
 1.11 
 
 74 
 
 2.22 
 
 
 
 
 Cal 
 
 culation for six mor 
 
 ths. 
 
 
 
 
 [2i 
 
 m 
 
 
 
CHAPTER XXL 
 
 6i per cent table. 
 
 Dollars. 
 
 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 
 
 5 
 
 .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 
 
 6.25 
 
 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 
 
 21.87 
 
 34 
 
 1.06 
 
 71 
 
 2.22 
 
 800 
 
 25.00 
 
 35 
 
 1.09 
 
 72 
 
 2.25 
 
 900 
 
 28.12 
 
 36 
 
 1.12 
 
 73 
 
 2.28 
 
 1000 
 
 31.25 
 
 37 
 
 1.16 
 
 74 
 
 2.31 
 
 
 
 Calculation for six months. 
 [294] 
 
DISTRIBUTION OF EARNINGS. 
 
 Br: per cent table. 
 
 Ottlldt. 
 
 Interest. 
 
 Dcllars. 
 
 Interest. 
 
 Dollars. 
 
 1 )ntere:^ 
 
 1 
 
 .03 
 
 38 
 
 1.23 
 
 75 
 
 a.4^ 
 
 2 
 
 .06 
 
 39 
 
 1.27 
 
 76 
 
 2.4? 
 
 3 
 
 .10 
 
 40 
 
 1.30 
 
 77 
 
 2.5i' 
 
 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 
 
 I 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 
 
 a.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 1 
 
 500 
 
 16.25 
 
 32 
 
 1.04 
 
 69 
 
 2.24 
 
 600 
 
 19.50 
 
 33 
 
 1.07 
 
 70 
 
 2.27 1 
 
 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 
 
 
 
 Calculation for six months. 
 [295] 
 
CHAPTER XXL 
 
 6f per cent table. 
 
 Dollars. 
 
 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 
 
 58 
 
 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 
 
 1 
 
 
 27 
 
 .91 
 
 64 
 
 2.16 
 
 100 
 
 3.37 
 
 28 
 
 .94 
 
 65 
 
 2.19 
 
 200 
 
 6.75 
 
 29 
 
 .98 
 
 66 
 
 2.23 
 
 300 
 
 10.12 
 
 30 
 
 1.01 
 
 67 
 
 2.26 
 
 400 
 
 13.50 
 
 31 
 
 1.05 
 
 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 
 
 800 
 
 27.00 
 
 35 
 
 1.18 
 
 72 
 
 2.43 
 
 900 
 
 30.37 
 
 36 
 
 1.21 
 
 73 
 
 2.46 
 
 1000 
 
 33.75 
 
 37 
 
 1.25 
 
 74 
 
 2.50 
 
 
 
 Calculation for six months. 
 [296] 
 
DISTRIBUTION OF EARNINGS. 
 
 7 per cent table. 
 
 Dollars. 
 
 interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest 
 
 1 
 
 .03 
 
 38 
 
 1.33 
 
 75 
 
 2.62 
 
 2 
 
 .07 
 
 39 
 
 1.36 
 
 76 
 
 2.66 
 
 • 3 
 
 .10 
 
 1 40 
 
 1.40 
 
 77 
 
 2.69 
 
 4 
 
 .14 
 
 i 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. 
 [297] 
 
CHAPTER XXL 
 
 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 
 
 .47 
 
 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 
 
 58 
 
 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 
 
 30 
 
 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 
 
 1.20 
 
 70 
 
 2.54 
 
 700 
 
 25.37 
 
 34 
 
 1.23 
 
 71 
 
 2.57 
 
 800 
 
 29.00 
 
 35 
 
 1.27 
 
 72 
 
 2.61 
 
 900 
 
 32.62 
 
 36 
 
 1.30 
 
 73 
 
 2.65 
 
 1000 
 
 36.25 
 
 37 
 
 1.34 
 
 74 
 
 2.68 
 
 
 
 Calculation for six months. 
 
 [298] 
 
DISTRIBUTION OF EARNINGS. 
 
 7^ per cent table. 
 
 Dollars. 
 
 interest. 
 
 Dollars. 
 
 Interest. 
 
 Dollars. 
 
 Interest. 
 
 1 
 
 .04 
 
 38 
 
 1.42 
 
 75 
 
 2.81 
 
 2 
 
 .07 
 
 39 
 
 1.46 
 
 76 
 
 2.85 
 
 3 
 
 .11 
 
 40 
 
 1.50 
 
 77 
 
 2.89 
 
 4 
 
 .15 
 
 41 
 
 1.54 
 
 78 
 
 2.92 
 
 5 
 
 .19 
 
 42 
 
 1.57 
 
 79 
 
 2.96 
 
 6 
 
 .22 
 
 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 
 
 io 
 
 .37 
 
 47 
 
 1.76 
 
 84 
 
 3.15 
 
 n 
 
 .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 
 
 .ey 
 
 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 
 
 tOOO 
 
 37.50 
 
 37 
 
 1.39 
 
 74 
 
 2.77 
 
 
 
 Calailation for six months. 
 [2991 
 
CHAPTER XXL 
 
 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 
 
 13 
 
 .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 
 
 100 
 
 3.87 
 
 28 
 
 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 
 
 2.63 
 
 500 
 
 19.37 
 
 32 
 
 1.24 
 
 69 
 
 2.67 
 
 600 
 
 23.25 
 
 ^3 
 
 1.28 
 
 70 
 
 2.71 
 
 700 
 
 27.12 
 
 3'd: 
 
 1.32 
 
 71 
 
 2.75 
 
 800 
 
 31.00 
 
 35 
 
 1.36 
 
 72 
 
 2.79 
 
 900 
 
 34.87 
 
 36 
 
 1.39 
 
 73 
 
 2.83 
 
 1000 
 
 38.75 
 
 37 
 
 1.43 
 
 74 
 
 2.87 
 
 
 
 Calculation for six months. 
 [300] 
 
DISTRIBUTION OF EARNINGS. 
 
 8 per cent table. 
 
 Dollars. 
 
 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 
 
 6 
 
 .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. 
 [301] 
 
CHAPTER XXII. 
 
 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 subscriptions for 
 installment shares indicates the amount of periodical pay- 
 ments he desires to make by the number of shares for 
 which he subscribes. Those payments are continued 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-borrowing members 
 the value of their shares in cash, and to the borrowing 
 members their mortgages and canceled obligations. 
 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 
 
 [302] 
 
DISTRIBUTION OF EARNINGS. 
 
 value, then such shares are matured, and are disposed of 
 in 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 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 par 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 
 
 * Prepared by Michael J. Brown, Philadelphia, Pa. 
 
 [303] 
 
CHAPTER XXII. 
 
 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, 6 in the first example; .005 in the 
 second ; .03 in the third ; .3737 in the fourth, and .0934 in the fifth. 
 
 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 ob- 
 tained 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 Column 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 : 
 
 EXAMPLE COLUMNS A AND B. 
 
 One Per 
 
 Payments Shares Centum 
 
 $36.00 30 X .555 = $16.65 X 6 r:r $99 90 
 
 24.00 40 X .250 = 10.00 X 6 = 60.00 
 
 12.00 50 X .065 = 3.25X6= 19.50 
 
 $29.90 $179.40 
 
 Gain— $179.40 -f- 29.90 = 6. 
 
 Gain Gain 
 
 per Series Shares per Share 
 
 $99.90 -^ 30 = $3.33 
 
 60.00 -^ 40 — 1.50 
 
 19.50 -^ 50 =r .39 
 
 [304] 
 
DISTRIBUTION OF EARNINGS. 
 
 EXAMPLE COLUMNS A AND C. 
 Average 
 
 Payments Shares 1 Mon-th 
 
 $36.00 30 X $666 = $19,980 X .005 = $99.90 
 
 24.00 40 X 300 = 12.000 X .005 = 60.00 
 
 12.00 50 X 78 = 3.900 X .005 = 19.50 
 
 $35,880 $179.40 
 
 Gain— $179.40 -4- :^5.880 = .005 
 
 Division to Shares as above. 
 
 EXAMPLE COLUMNS A AND D. 
 
 Payments Powers Shares 
 
 $36.00 Ill X 30 = $3,330 X .03 = $99.90 
 
 24.00 50 X 40 = 2,000 X .03 = 60.00 
 
 12.00 13 X 50 = 650 X .03 = 19.60 
 
 $5,980 $179.40 
 
 Gain— $179.40 -h- 5,980 = .03 
 Division to Shares as above. 
 
 EXAMPLE COLUMNS A AND E. 
 Fractional Parts of Month Omitted. 
 
 Payments Powers Shares Total 
 
 $36.00 9 X 30 = $270 X .3737 = $100.90 
 
 24.00 4X40= 160 X .3737 = 59.79 
 
 12.00 IX 50= 50X .3737 = 18.69 
 
 $480 $179.38 
 
 Gain— $179.40 -^ 480 = .3737 
 
 Gain Gain 
 
 per Series Shares per Share 
 
 $100.90 -f- 30 = $3.36 
 59.70 -^ 40 = 1.49 
 18.69 ^ ,50 = .37 37 
 
 EXAMPLE COLUMNS A AND F. 
 
 Payments Powers Shares 
 
 $36.00 36 X 30 = $1,080 X .0934 = $100.90 
 
 24.00 16 X 40 = 640 X .0934 = 59.79 
 
 12.00 4 X 50 = 200 X .0934 = 18.69 
 
 $1,920 $179.38 
 
 Gain— $179.40 -4- 1,920 = .0934 
 
 Gain Gain 
 
 per Series Shares per Share 
 
 $100.90 -^ 30 = $3.36 
 59.70 -f- 40 = 1.49 
 18.69 -4- 50 = .37 37 
 
 [305] 
 
CHAPTER XXII. 
 
 EARNING POWERS. 
 
 Payments 
 
 A 
 
 $144 
 143 
 142 
 
 141 
 140 
 
 ia9 
 
 i38 
 
 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 
 
 104 
 
 103 
 
 102 
 
 101 
 
 100 
 
 99 
 
 98 
 
 One per Cent 
 per Annum 
 
 B 
 
 $8.70000 
 8.58000 
 8.46083 
 8.34250 
 8.2250O 
 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 
 6.35500 
 6.25250 
 6.15083 
 6.05000 
 5.95000 
 5.85083 
 5.76250 
 5.65500 
 5.55833 
 5.46250 
 5.36750 
 5.27333 
 5.18000 
 5.08750 
 4.99582 
 4.90500 
 4.81500 
 4.72583 
 4.63750 
 4.55000 
 4.46333 
 4.37750 
 4.29250 
 4.21250 
 4.12500 
 4.04250 
 
 Average Investment 
 for One Month 
 
 $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 
 
 6,106 
 
 5,995 
 
 5,886 
 
 5,778 
 
 5,671 
 
 5,565 
 
 5,460 
 
 5356 
 
 5,253 
 
 5,151 
 
 5,050 
 
 4,950 
 
 4,851 
 [306] 
 
 Calculated Powers 
 
 D E 
 
 1740 
 
 1716 
 
 168854 
 
 16681/4 
 
 1645 
 
 1625 
 
 15985^ 
 
 1530 
 1463 
 
 1397^ 
 
 1333^ 
 
 1271 
 
 1210 
 
 11501/4 
 
 1092H 
 
 1036 
 
 981 
 
 927^ 
 
 875J4 
 
 825 
 
 144 
 
 121 
 
 100 
 
 F 
 576 
 
 559 
 
 484 
 
 441 
 
 400 
 
 361 
 
 81 
 
DISTRIBUTION OF EARNINGS. 
 
 
 One per Cent. 
 
 Average Investment 
 
 Payments 
 
 per Annum 
 
 for One Month 
 
 A 
 
 B 
 
 c 
 
 97 
 
 3.96083 
 
 4,753 
 
 06 
 
 3.88000 
 
 4,656 
 
 9,5 
 
 3.80000 
 
 4,560 
 
 94 
 
 3.72083 
 
 4.465 
 
 93 
 
 3.64250 
 
 4,371 
 
 92 
 
 3.56500 
 
 4,278 
 
 91 
 
 3.48833 
 
 4,186 
 
 90 
 
 3.41250 
 
 4,095 
 
 89 
 
 3.33750 
 
 4.005 
 
 88 
 
 3.26333 
 
 3,916 
 
 87 
 
 3.19000 
 
 3,828 
 
 86 
 
 3.11750 
 
 3,741 
 
 m 
 
 3.04583 
 
 3,655 
 
 84 
 
 2.97500 
 
 3.570 
 
 83 
 
 2.90500 
 
 3,486 
 
 82 
 
 •2.8.3-583 
 
 3,403 
 
 81 
 
 2.76750 
 
 3,321 
 
 80 
 
 2.70000 
 
 3,240 
 
 79 
 
 2.63333 
 
 3,160 
 
 78 
 
 2.56750 
 
 3,081 
 
 77 
 
 2.50250 
 
 3,003 
 
 76 
 
 2.43833 
 
 2,926 
 
 75 
 
 2.37500 
 
 2,850 
 
 74 
 
 2.31250 
 
 2,775 
 
 73 
 
 2.25083 
 
 2,701 
 
 72 
 
 2.19000 
 
 2,628 
 
 71 
 
 2.13000 
 
 2,556 
 
 70 
 
 2.07083 
 
 2,485 
 
 69 
 
 2.01250 
 
 2,415 
 
 68 
 
 1.95500 
 
 2,346 
 
 67 
 
 1.89833 
 
 2,278 
 
 66 
 
 1.84250 
 
 2,211 
 
 65 
 
 1.78750 
 
 2,145 
 
 64 
 
 1.7^333 
 
 2,080 
 
 63 
 
 1.68000 
 
 2,016 
 
 62 
 
 1.62750 
 
 1,953 
 
 61 
 
 1.57583 
 
 1,891 
 
 60 
 
 1.5250O 
 
 1,830 
 
 59 
 
 1.47500 
 
 1,770 
 
 58 
 
 1.42583 
 
 1.711 
 
 57 
 
 1.37750 
 
 1,653 
 
 56 
 
 1.33000 
 
 1,506 
 
 55 
 
 1.28333 
 
 1,540 
 
 54 
 
 1.23750 
 
 1.485 
 
 53 
 
 1.19250 
 
 1,431 
 
 62 
 
 1.14833 
 
 1,378 
 
 51 
 
 1.1050O 
 
 1.326 
 
 50 
 
 1.06333 
 
 1,276 
 
 49 
 
 1.02083 
 
 1,225 
 
 [307] 
 
 Calculated Powers 
 
 D E F 
 776 64 256 
 
 72854 
 
 682J4 225 
 
 638 
 
 595 49 196 
 
 553}^ 
 
 513^ 169 
 
 475 
 
 438 36 144 
 
 402/2 
 
 36854 121 
 
 336 
 
 305 25 100 
 
 275K 
 
 247J4 81 
 
CHAPTER XXIL 
 
 
 One per Cent 
 
 Average Investment 
 for One Month 
 
 /^nlrm'-i- J T> 
 
 Payments 
 
 per Annvim 
 
 
 ifiicu X uwv-ia 
 
 A 
 
 B 
 
 c 
 
 D 
 
 E F 
 
 48 
 
 .98000 
 
 1,176 
 
 196 
 
 16 6^ 
 
 47 
 
 .94000 
 
 1,128 
 
 
 
 46 
 
 .90083 
 
 1,081 
 
 
 
 45 
 
 .86250 
 
 1,035 
 
 172/2 
 
 
 44 
 
 .82500 
 
 990 
 
 
 
 43 
 
 .78833 
 
 946 
 
 
 
 42 
 
 .75250 
 
 903 
 
 150^ 
 
 4! 
 
 41 
 
 .71750 
 
 861 
 
 
 
 40 
 
 .68333 
 
 820 
 
 
 
 39 
 
 .65000 
 
 780 
 
 130 
 
 
 38 
 
 .61750 
 
 741 
 
 
 
 37 
 
 .58583 
 
 703 
 
 
 
 36 
 
 .55500 
 
 666 
 
 111 
 
 9 3 
 
 35 
 
 .52500 
 
 630 
 
 
 
 34 
 
 .49583 
 
 595 
 
 
 
 33 
 
 .46750 
 
 561 
 
 93/2 
 
 
 32 
 
 .44000 
 
 528 
 
 
 
 31 
 
 .41333 
 
 496 
 
 
 
 30 
 
 .38750 
 
 465 
 
 77/ 
 
 2 
 
 29 
 
 .36250 
 
 435 
 
 
 
 28 
 
 .33833 
 
 406 
 
 
 
 27 
 
 .31500 
 
 378 
 
 63 
 
 
 26 
 
 .29250 
 
 351 
 
 
 
 25 
 
 .27083 
 
 325 
 
 
 
 24 
 
 .25000 
 
 300 
 
 50 
 
 4 1 
 
 23 
 
 .23000 
 
 276 
 
 
 
 22 
 
 .21083 
 
 253 
 
 
 
 21 
 
 .19250 
 
 231 
 
 38/ 
 
 
 20 
 
 .17500 
 
 210 
 
 
 
 19 
 
 .15833 
 
 190 
 
 
 
 18 
 
 .14250 
 
 171 
 
 28/ 
 
 
 17 
 
 .12750 
 
 153 
 
 
 
 16 
 
 .11333 
 
 136 
 
 
 
 15 
 
 .10000 
 
 120 
 
 20 
 
 
 14 
 
 .08750 
 
 105 
 
 
 
 13 
 
 .07583 
 
 91 
 
 
 
 12 
 
 .06500 
 
 78 
 
 13 
 
 1 
 
 11 
 
 .05500 
 
 66 
 
 
 
 10 
 
 .04583 
 
 55 
 
 
 
 9 
 
 .03750 
 
 45 
 
 7/ 
 
 
 8 
 
 .03000 
 
 36 
 
 
 
 7 
 
 .02333 
 
 28 
 
 
 
 6 
 
 .01750 
 
 21 
 
 3/ 
 
 
 5 
 
 .01250 
 
 15 
 
 
 
 4 
 
 .00833 
 
 10 
 
 
 
 3 
 
 .00500 
 
 6 
 
 1 
 
 
 2 
 
 .00250 
 
 3 
 
 
 
 1 
 
 .00083 
 
 1 
 
 [308] 
 
 
 
 16 
 
DISTRIBUTION OF EARNINGS. 
 
 EXAMPLE. 
 
 At 3 per centum per annum on one share of $1.00 each at the end 
 of the 48th 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 = .03^. 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 series 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 cur- 
 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 
 
 [309] 
 
CHAPTER XXII. 
 
 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 » 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 -T- 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 -f- 11=:$6.00 equalized dues. 
 
 FIRST ANNUAL DISTRIBUTION. 
 
 Proftts at end of first year. 
 
 $73 95 
 
 $73.95 profits -t- 100 shares =r profit of 73 cents per share. 
 
 General Statement. 
 
 Dues. Profits. Totals. 
 
 100 shares at $12.00 per share $1,200 00 
 
 lOO shares at .73 per share $73 00 $1,273 00 
 
 $1,200 00 $73 00 $1,273 00 
 
 Undivided profits 95 95 
 
 $1,200 00 $73 95 $1,278 96 
 
 SECOND ANNUAL DISTRIBUTION. 
 
 Total profits at end of second year $369 28 
 
 From which deduct as follows: 
 
 Profits on 100 shares. Series 1. at 73 cents 73 00 
 
 Balance, or net profits for year $296 28 
 
 Capital Account. 
 
 100 shares. Series 1, at $12.78 $1,273 00 
 
 100 shares. Series 2 
 
 200 shares at $6.50 per share, equalized dues 1,300 00 
 
 Total capital participating in current year profits $2,573 00 
 
 [310] 
 
DISTRIBUTION OF EARNINGS. 
 
 Distribution of Profits. 
 
 $296.28 (profits for current year) -i- $25.73 (capital for current year) gives 
 11.51 per cent of profit 
 
 Items. Series 1 2 
 
 Value per share at last report $12 73 
 
 Equalized dues for current year 6 50 
 
 Total capital $19 23 
 
 Multiplied by per cent of profit 1151 
 
 (3ives profit per share of $2 21 
 
 Value of Shares, one Share in Each Series. 
 
 Items. Series 1 
 
 Value at last report $12 78 
 
 Profit for current year 8 21 
 
 Dues for current year 12 00 
 
 Present value $26 94 
 
 Total dues paid per share 24 00 
 
 Total profits $2 »4 $0 74 
 
 General Statement. 
 
 Dues. Profits. Totals. 
 
 100 shares. Series 1, at $24.00 $2,400 00 
 
 100 shares, Series 1, at 2.94 $294 00 $2,694 00 
 
 100 shares. Series 2, at 12.00 1,200 00 
 
 100 shares, Series 2, at .74 74 00 1,274 00 
 
 $3,600 00 $368 00 $3,968 00 
 
 Undivided balance 1 28 1 28 
 
 ■■■$6'56 
 
 $ 6 50 
 11 51 
 
 $0 74 
 
 
 a 
 
 ■■$ '6'74 
 12 00 
 
 $12 74 
 12 00 
 
 $3,600 00 $369 28 $3,969 28 
 
 THIRD ANNUAL DISTRIBUTION. 
 
 Total profits to date of this statement $1,050 48 
 
 From which deduct as follows: 
 
 1 00 share*. SpHos 1 . at $^.04 $294 00 
 
 100 stares. Series 2, at .74 74 00 
 
 868 00 
 
 Balance, or net profits for current year $682 48 
 
 Capital Account. 
 
 100 shares. Series 1. at $26.94 $2,694 00 
 
 ) 00 shares. Series 2. at 12.74 1,274 00 
 
 100 shares. Scries 3 
 
 — — $3,968 00 
 
 300 shares at $6.50 per share, equalized dues 1,950 00 
 
 Total capital participating in current year's profit $5,918 00 
 
 [311] 
 
CHAPTER XXII. 
 
 Distribution of Profits. 
 
 $682.48 (profits for current year) -r- $5,918.00 (capital for current year) 
 gives 11.53 per cent of profit. 
 
 Items. Series . 
 
 Value per share at last report . . . 
 Equalized dues for current year. 
 
 Total capital 
 
 Multiplied by per cent of profit. . 
 
 1 
 
 $26 94 
 6 50 
 
 2 
 $12 74 
 6 50 
 
 8 
 
 ""$6"66 
 
 $33 44 
 11 53 
 
 $19 24 
 11 53 
 
 $6 50 
 11 68 
 
 Gives profit per share of $3 85 $2 21 $0 74 
 
 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. 
 
 1 
 
 $26 94 
 
 3 85 
 
 12 00 
 
 2 
 $12 74 
 2 21 
 12 00 
 
 3 
 
 ' "80*74 
 12 00 
 
 $42 79 
 36 00 
 
 $26 95 
 24 00 
 
 $12 74 
 12 00 
 
 Total profits $6 79 $2 95 $0 74 
 
 General Statement. 
 
 Dues. Profits. Totals. 
 
 100 shares, Series 1, at $36.00 $8,600 00 
 
 100 shares. Series 1, at 6.79 $679 00 $4,279 00 
 
 100 shares, Series 2, at 24.00 2,400 00 
 
 100 shares, Series 2, at 2.95 295 00 2,695 00 
 
 100 shares. Series 3, at 12.00 1,200 00 
 
 100 shares. Series 3. at .74 74 00 1,274 00 
 
 $7,200 00 $1,048 00 $8,248 00 
 Undivided profits 2 48 2 48 
 
 $7,200 00 $1,050 48 $8,250 48 
 
 FOURTH ANNUAL DISTRIBUTION. 
 
 Total profits at end of fourth year $2,301 05 
 
 From which deduct as follows: 
 
 Profits on 100 shares. Series 1, at $6.79. 
 
 Profits on 100 shares. Series 2, at 2.95. 
 
 Profits on 100 shares. Series 8, at .74. 
 
 1,048 00 
 
 Balance, or net profits for current year $1,258 05 
 
 Capital Account. 
 
 100 shares. Series 1, at $42.79 $4,279 00 
 
 100 shares. Series 2, at 26.95 2,695 00 
 
 100 shares. Series 3, at 12.74 1,274 00 
 
 100 shares. Series 4 
 
 — ^ $8,248 00 
 
 400 shares, at $6.50 per share, equalized dues 2,600 00 
 
 Total capital participating in current year profits $10,848 Oo 
 
 [312] 
 
 $679 00 
 
 295 
 
 00 
 
 74 
 
 00 
 
 
DISTRIBUTION OF EARNINGS, 
 
 Distribution of Profits. 
 
 $1,258.05 (profits for current year) -^ $10,848.00 (capital for current year) 
 gives 11.55 per cent of gain. 
 
 Items. Series 
 
 Value per share at last report 
 
 Equalized dues for current year. . . 
 
 1 
 $42 79 
 6 50 
 
 2 
 
 $26 95 
 6 50 
 
 8 
 
 $12 74 
 6 50 
 
 4 
 
 "ie'so 
 
 Total capital 
 
 Multiplied by per cent of profit . . . 
 
 $49 29 
 11 00 
 
 $33 45 
 11 55 
 
 $19 24 
 11 55 
 
 $6 50 
 11 55 
 
 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, 
 
 1 
 
 $42 79 
 5 69 
 12 00 
 
 2 
 $26 95 
 3 86 
 12 00 
 
 8 
 
 $12 74 
 2 22 
 12 00 
 
 4 
 
 " $ *6 '75 
 12 Of 
 
 $60 48 
 48 00 
 
 $42 81 
 36 00 
 
 $26 96 
 24 00 
 
 $12 76 
 12 00 
 
 Total profits $12 48 $6 81 $2 96 $0 76 
 
 General Statement. 
 
 Dues. Profits. Totals. 
 
 100 shares. Series 1, at $48.00 $4,800 00 
 
 100 shares. Series 1, at 12.48 
 
 100 shares, Series 2, at 86.00 
 
 100 shares. Series 2, at 6.81 
 
 100 shares. Series 3, at 24.00 
 
 100 shares. Series 8, at 2.96 
 
 ICO shares. Series 4, at 12.00 
 
 100 shares. Series 4, at .75 
 
 Undivided profits. 
 
 
 
 $1,248 00 $6,048 00 
 
 3,666 66 
 
 
 
 
 681 00 4,281 09 
 
 '2,466 66 
 
 
 
 
 296 00 2,696 00 
 
 1,200 00 
 
 
 
 
 75 00 1.275 00 
 
 $12,000 00 
 
 $2,300 00 $14,300 00 
 
 
 1 or. 1 05 
 
 $12,000 00 $2,801 05 $14,801 05 
 
 FIFTH ANNUAL DISTRIBUTION. 
 
 ToUl 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 ino shares. Series R, 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 $2,025 75 
 
 [313] 
 
CHAPTER XXIL 
 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 12.75 1,275 00 
 
 100 shares, Series 6 
 
 $14,300 00 
 
 500 shares, at $6.50 per share, equalized dues 3,250 00 
 
 Total capital participating in current year profits $17,550 00 
 
 Distribution of Profits. 
 
 $2,025.75 (profits for current year)-r^ $17,550.00 (capital for current year) 
 gives 11.54 per cent of gain. 
 
 Items. Series. 1 
 
 Value per share at last report $60 48 
 
 Equalized dues for current year 6 50 
 
 Total capital 66 98 
 
 Multiplied by per cent of profit 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 
 
 Value at last report $60 48 
 
 Profit for current year 7 72 
 
 Dues for current year 12 00 
 
 2 
 
 $42 81 
 6 60 
 
 3 
 
 $26 96 
 6 50 
 
 4 
 
 $12 75 
 6 50 
 
 5 
 
 "e'bb 
 
 $49 31 
 11 54 
 
 $33 46 
 11 54 
 
 $19 25 
 11 54 
 
 $ 6 50 
 11 64 
 
 Present value $80 20 $60 50 
 
 Total dues paid per share 60 00 
 
 2 
 
 $42 81 
 
 5 69 
 
 12 00 
 
 3 
 $26 96 
 3 86 
 12 00 
 
 4 
 
 $12 76 
 
 2 22 
 
 12 00 
 
 5 
 
 $0*75 
 12 00 
 
 $60 50 
 48 00 
 
 $42 82 
 36 00 
 
 $26 97 
 24 00 
 
 $12 75 
 12 00 
 
 Total profits $20 20 $12 50 $6 85 $2 97 $0 76 
 
 General Statement. 
 
 Dues. 
 
 100 shares. Series 1, at $60.00 $6,000 00 
 
 100 shares, Series 1, at 20.20 
 
 100 shares. Series 2, at 48.00 4,800 00 
 
 100 shares, Series 2, at 12.50 
 
 100 shares. Series 3, at 36.00 3,600 00 
 
 100 shares. Series 3, at 6.82 
 
 100 shares, Series 4, at 24.00 2,400 00 
 
 100 shares. Series 4, at '^.07 
 
 100 shares. Series 5, at 12.00 1,200 00 
 
 100 shares. Series 5, at .75 
 
 Undivided profits. 
 
 $18,000 00 
 
 Profits. 
 
 Totals. 
 
 $2,020 00 
 
 $8,026 '66 
 
 1,250 00 
 
 6,050 00 
 
 682 00 
 
 4,282 00 
 
 297 00 
 
 2.697 00 
 
 ■"75'66 
 
 1,276 '66 
 
 $4,324 00 
 1 75 
 
 $22,324 00 
 1 75 
 
 $18,000 00 $4,325 75 $22,325 76 
 
 SIXTH ANNUAL DISTRIBUTION. 
 
 Total profits at end of 5 years and 11 months $7,057 31 
 
 From which deduct as follows: 
 
 Profits on 100 shares, Series 1, at $20.20 $2,020 00 
 
 Profits on 100 shares. Series 2, at 12.50 1,250 00 
 
 Profits on 100 shares. Series 3, at 6.82 682 00 
 
 Profits on 100 shares. Series 4, at 2.97 297 00 
 
 Profits on 100 shares. Series 5, at .75 75' 00 
 
 4,324 00 
 Balance or net profits for current term $2,733 31 
 
 [314] 
 
DISTRIBUTION OF EARNINGS. 
 
 Capital Account. 
 
 100 shares. Series 1, at $80.20 $8,020 00 
 
 100 shares, Series 2, at 60.50 6,050 00 
 
 100 shares. Series 3, at 42.82 4,282 GO 
 
 100 shares, Series 4, at 26.97 2,697 00 
 
 100 shares, Series 5, at 12.75 1,275 00 
 
 100 shares. Series 6 
 
 $22,324 00 
 
 600 shares at $6.00 per share, equalized dues 3,600 00 
 
 Total capital participating in current terra pro&ts $25,924 00 
 
 Distribution of Profits. 
 
 $2,733.31 (profits for current term) -t- $25,924.00 (capital for current term) 
 gives 10.50 per cent of profit. 
 
 Items. Series. 12 3 4 5 6 
 
 Value per share at last report. . $80 20 $60 50 $42 82 $26 97 $12 75 
 
 Equalized dues for current year 
 
 (11 months) 6 00 6 00 6 00 6 00 6 00 $6 00 
 
 Total capital $86 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 60 10 50 
 
 Gives profit per share of. $9 05 $6 98 $5 12 $8 4« $1 96 $0 68 
 
 Value of Shares, one Share in Each Series. 
 
 Items, Series. 12 3 4 5 6 
 
 Value per share at last r< p.)rt. . $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 1100 1100 1100 1100 1100 1100 
 
 Present value $100 25 $78 48 $58 94 $41 43 $25 71 $11 68 
 
 Total dues paid per share 71 00 59 00 47 00 85 00 23 00 11 00 
 
 Total profit per share. ... $29 25 $19 48 $11 94 $6 43 $2 71 $0 68 
 
 General Statement 
 
 Dues. 
 
 100 shares. Series 1, at $71.00 $7,100 00 
 
 106 shares, Series 1, at 29.25 
 
 100 shares. Series 2, at 59.00 5,900 00 
 
 100 shares. Series 2, at 19.4S 
 
 100 shares, Series 3, at 47.00 4,700 00 
 
 100 shares, Series 3, at 11.94 
 
 100 shares, Series 4, at 35.00 3,500 00 
 
 100 shares, Series 4, at 6.43 
 
 100 shares, Series 5, at 23.00 2,300 00 
 
 100 shares. Series 5, at 2.71 
 
 100 shares. Series 6, at 11.00 1,100 00 
 
 100 shares, Series 6, at .63 
 
 Undivided profits. 
 
 Profits. 
 
 Totals. 
 
 $2,925 00 
 
 $10,025 00 
 
 1,948 00 
 
 7,848 00 
 
 1,194 00 
 
 5,894 00 
 
 643 OO 
 
 4,143 00 
 
 271 00 
 
 2,571 00 
 
 63 00 
 
 1,163 00 
 
 $7,044 00 
 13 31 
 
 $31,644 00 
 13 81 
 
 $24,600 $7,057 81 $31,657 31 
 
 [315] 
 
CHAPTER XXII. 
 
 Statement showing the increase in the value of Shares by the 
 "Dexter's Rule" of Division of Profits. 
 
 Value. Series. 1 
 
 Value January 1, 1881 $12 73 
 
 Value January 1, 1882 26 94 
 
 Value January 1, 1883 42 79 
 
 Value January 1, 1884 60 48 
 
 Value January 1, 1885 80 20 
 
 Value December 1. 1885 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 
 
 anuary 1, 1881 $12 73 
 
 anuary 1, 1882 26 93 
 
 anuary 1, 1883 42 73 
 
 anuary 1, 1884 60 21 
 
 anuary 1, 1885 79 62 
 
 ecember 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 i to 120 Months. 
 
 H 
 
 5^ 
 
 H 
 
 ^ 
 
 
 s 
 
 H 
 
 Q 
 
 H 
 
 5^ 
 
 H 
 
 HH 
 
 3 
 
 q 
 
 Q 
 
 
 sr 
 
 3 
 
 y 
 
 3 
 
 
 3 
 
 n 
 
 
 
 >^ 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 r 
 
 
 
 
 r 
 
 
 
 
 
 : 
 
 r 
 
 120 
 
 .3000 
 
 100 
 
 .2500 
 
 80 
 
 .2000 
 
 60 
 
 .1500 
 
 40 
 
 .1000 
 
 20 
 
 .0500 
 
 119 
 
 .2975 
 
 99 
 
 .2475 
 
 79 
 
 .1975 
 
 59 
 
 .1475 
 
 39 
 
 .0975 
 
 19 
 
 .0475 
 
 118 
 
 .2950 
 
 98 
 
 .2450 
 
 78 
 
 .1950 
 
 58 
 
 .1450 
 
 38 
 
 .0950 
 
 18 
 
 .0450 
 
 117 
 
 .2925 
 
 97 
 
 .2425 
 
 77 
 
 .1925 
 
 57 
 
 .1425 
 
 37 
 
 .0925 
 
 17 
 
 .0425 
 
 116 
 
 .2900 
 
 96 
 
 .2400 
 
 76 
 
 .1900 
 
 56 
 
 .1400 
 
 36 
 
 .0900 
 
 16 
 
 .0400 
 
 115 
 
 .2875 
 
 95 
 
 .2375 
 
 75 
 
 .1875 
 
 55 
 
 .1375 
 
 35 
 
 .0875 
 
 15 
 
 .0375 
 
 114 
 
 .2850 
 
 94 
 
 ,2350 
 
 74 
 
 .1850 
 
 54 
 
 .1350 
 
 34 
 
 .0850 
 
 14 
 
 .0350 
 
 113 
 
 .2825 
 
 93 
 
 .2325 
 
 73 
 
 .1825 
 
 53 
 
 .1325 
 
 33 
 
 .0825 
 
 13 
 
 .0325 
 
 112 
 
 .2800 
 
 92 
 
 .2300 
 
 72 
 
 .1800 
 
 52 
 
 .1300 
 
 32 
 
 .0800 
 
 12 
 
 .0300 
 
 111 
 
 .2775 
 
 91 
 
 .2275 
 
 71 
 
 .1775 
 
 51 
 
 .1275 
 
 31 
 
 .0775 
 
 11 
 
 .0275 
 
 110 
 
 .2750 
 
 90 
 
 .2250 
 
 70 
 
 .1750 
 
 50 
 
 .1250 
 
 80 
 
 .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 
 
 .2676 
 
 87 
 
 .2175 
 
 67 
 
 .1675 
 
 47 
 
 .1175 
 
 27 
 
 .0675 
 
 07 
 
 .0175 
 
 106 
 
 .2650 
 
 86 
 
 .2150 
 
 66 
 
 .1650 
 
 46 
 
 .1150 
 
 26 
 
 .0650 
 
 06 
 
 .0150 
 
 105 
 
 .2625 
 
 Sf) 
 
 .2125 
 
 65 
 
 .1625 
 
 45 
 
 .1125 
 
 25 
 
 .0625 
 
 05 
 
 .0125 
 
 104 
 
 .2600 
 
 84 
 
 .2100 
 
 64 
 
 .1600 
 
 44 
 
 .1100 
 
 24 
 
 .0600 
 
 04 
 
 .0100 
 
 103 
 
 .2575 
 
 83 
 
 .2075 
 
 63 
 
 .1575 
 
 43 
 
 .1075 
 
 23 
 
 .0575 
 
 03 
 
 .0075 
 
 102 
 
 .2550 
 
 82 
 
 .2050 
 
 62 
 
 .1550 
 
 42 
 
 .1050 
 
 22 
 
 .0550 
 
 02 
 
 .0050 
 
 101 
 
 .2525 
 
 81 
 
 .2025 
 
 61 
 
 .1525 
 
 41 
 
 .1025 
 
 21 
 
 .0525 
 
 01 
 
 .0025 
 
 Rule — To find the interest for any given series multiply the "Dues Capital" 
 of the series by the amount of interest set opposite the average number of months 
 the series has been in force. 
 
 For example — ^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 3 per cent 
 on $1 for 40 months is 10 cents. $20,000X10=2,000. 
 
 [316] 
 
DISTRIBUTION OF EARNINGS. 
 
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 [317] 
 
CHAPTER XXII. 
 
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DISTRIBUTION OF EARNINGS. 
 
 SIMPLE INTEREST. 
 
 The following method for calculating simple interest 
 is one found to be most practical. 
 
 Interest is usually calculated on the basis of 360 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 60 days at 6 per cent per anntmi 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 ^2 per cent 
 per month, or 1 per cent for two months, or 60 days. 
 
 The interest for $750, $225, $327.50, 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. 
 
 AUQUOTS OF 60. 
 
 30=H, 20=^, 15=54, 12=H. 
 
 lQz=ye, 6=V«,, 5=Vi,, 4=V«. 
 3=7.,, 2=V«,, 1=7.,. 
 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 " :^ 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=imerest for 15 days. 
 [319] 
 
CHAPTER XXII. 
 
 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, 
 zve take that part of the interest for 6o days. For 30 days we take 
 y^y 20 days Yz, 15 days %, 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 =^ 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. 
 
 [320] 
 
DISTRIBUTION OF EARNINGS. 
 
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 [321] 
 
CHAPTER XXIII. 
 
 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 approval 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. 
 
 [322] 
 
LEGAL FORMS FOR ASSOCIATIONS. 
 
 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 191.. 
 
 STATE OF OHIO, | 
 
 County of ( ^^• 
 
 Personally appeared before me, the undersigned, a Notary Public 
 
 within and for said County, this day of 191. ., 
 
 the above-named 
 
 who each severally acknowledged the signing of the foregoing articles 
 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. 
 [323] 
 
CHAPTER XXIII. 
 
 STATE OF OHIO, ( 
 
 County of j ^^• 
 
 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 acquainited 
 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 191.. 
 
 Clerk. 
 By Deputy. 
 
 United States of America, Ohio, | 
 Office of the Secretary of State. ) ^^• 
 
 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 191. ., 
 
 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. 191.. 
 
 Secretary of State. 
 By Deputy. 
 
 [324] 
 
LEGAL FORMS FOR ASSOCIATIONS. 
 
 SUBSCRIPTION LIST 
 
 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. 
 
 Rrsidbncb. 
 
 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 191. . 
 
 Done at on this day of 
 
 191.. 
 
 [325j 
 
CHAPTER XXIII. 
 
 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. 19L., 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 corporation, 
 and shall, when duly requested by the Board of Directors of said 
 corporation, turn over to such person or persons as it may designate, 
 all books, papers, receipts or other documents, money or moneys, or 
 other property of any nature whatsoever, belonging to said corpora- 
 tion 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: 
 
 1 
 
 Seal. 
 Seal. 
 Seal. 
 
 I 
 
 Note. — Bonds are backed for filing as follows: 
 
 Bond of as of The 
 
 Building and Loan Company. 
 
 Attorney. 
 
 [326] 
 
LEGAL FORMS FOR ASSOCIATIONS. 
 
 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. 
 
 [327] 
 
CHAPTER XXIII. 
 
 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 pei 
 
 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 amount 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, premium, 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- 
 tion's, 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 
 
 (191..). 
 
 Signed, sealed and acknowledged in presence of us : 
 
 [328] 
 
LEGAL FORMS FOR ASSOCIATIONS. 
 
 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. 
 
 191.. 
 
 The within mortgage being fully paid and satisfied, may be can- 
 celled off record, by order of the Board of Directors. 
 
 The Building and Loan Company. 
 
 By , President. 
 
 and , Secretary. 
 
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 ;329] 
 
CHAPTER XXIIL 
 
 MORTGAGE CLAUSE FOR INSURANCE POLICIES. 
 
 It Being Hereby Understood and Agreed, That this insurance, as 
 to th€ interest of the Mortgagee 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 upon, 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 stipulated 
 in the printed conditions in said Policy ; and also, to cancel this agree- 
 ment 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 Furthfj? 
 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 in-sured 
 bears to the whole amount of insurance on said property, 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 liability therefor exists, 
 it shall at once, and to the extent of such payment, be legally subro- 
 gated 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 subrogation shall be in subordina- 
 tion to the claim of 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 so secured, with all the interest which may 
 have accrued thereon to the date of such payment, and shall there- 
 
 [330] 
 
LEGAL FORMS FOR ASSOCIATIONS. 
 
 upon 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. 
 
 [331] 
 
CHAPTER XXIII. 
 
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 [332] 
 
LEGAL FORMS FOR ASSOCIATIONS. 
 MECHANICS* LIEN (OHIO). 
 
 , Ohio m.. 
 
 In consideration of ont 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. 
 $ 191.. 
 
 after date 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. 
 
 [333] 
 
CHAPTER XXIII. 
 
 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. 
 
 191.. 
 
 [334] 
 
LEGAL FORMS FOR ASSOCIATIONS. 
 
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 [335] 
 
CHAPTER XXIV. 
 
 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. The 
 improvements which have appeared in the last few years 
 are manifold. 
 
 A good illustration of the labor-saving methods w^hich 
 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 
 polyform columns and rulings, so that, as the secretary 
 
 [336] 
 
BOOKS AND BLANKS. 
 
 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 and loss 
 on each item, etc., and at the end of the term, he simply 
 enters the entire amount of each item on its account 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 so 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 
 convenient books and forms. It is especially desirable 
 that the system adopted should be so simple and com- 
 prehensive 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 
 ordering books care must be taken that they correspond 
 
 [337] 
 
CHAPTER XXIV. 
 
 to each other, so that all will fit in properly as parts of 
 one system. 
 
 Economy should be practiced in the purchase of books 
 as in all matters connected with an association. But it 
 will be found poor economy that does not provide the 
 best available books for the keeping of the accounts and 
 records. 
 
 BOOK ACCOUNT. 
 
 Many secretaries keep a separate account of the blank 
 books and pass-books used by the association. Secretaries 
 sometimes have difficulty with this account. The matter 
 is very simple when once understood. The cost of all 
 books purchased should be separately charged to the book 
 account, and all receipts from members for pass-books 
 should be credited to this account. At the end of each 
 fiscal term a certain percentage, to cover the cost of the 
 books in use for that term as determined by the board of 
 directors, should be charged to the profit and loss account. 
 The following exhibit illustrates how this account may 
 be kept : 
 
 [338] 
 
BOOKS Ax\D BLANKS, 
 BOOK ACCOUNT. 
 
 Jan. 16 
 Jun.29 
 
 Cash (Acc't Books) 
 " 600 Pass Books 
 
 P. & Iv. gain on 64 
 Pass Books. 
 
 6 
 6 
 
 J72 00 
 65 00 
 
 8 69 
 
 Jan. 29 
 
 By cash 64 P. Bks. 25c 
 •'^6jtP.&I..AcctBks 
 
 By Bal. Acc't Books 
 '' " Pass Bks. (480) 
 
 7 
 
 116 00 
 800 
 
 68 41) 
 47 Wi 
 
 
 186 96 
 
 185 96 
 
 July 1 
 
 Bal. Acc't Books. 
 " 486 Pass Bks. 11 
 
 9 
 9 
 
 168 40 
 47 96 
 
 
 
 
 
 PASS-BOOKS. 
 
 The pass-book is the book furnished to each member by 
 an association, in which are recorded the receipts for his 
 dues as he pays them from meeting to meeting. This 
 book is known under various names, as 'Tass-Book/' 
 ''Member's Book," ''Receipt Book," "Stock Book," etc. 
 There is so much inquiry in 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 4J^ inches in width and 
 6 to 7 inches in length. They should contain the constitu- 
 
 [339] 
 
CHAPTER XXIV. 
 
 tion and by-laws of the association, a blank certificate of 
 stock, blanks for transfers 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.. 
 
 The certificate of stock is made to occupy one page of 
 the pass-book. On the back 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 : 
 
 Some associations put their seal on each certifica'te. 
 
 [340] 
 
BOOKS AND BLANKS. 
 
 DATE. 
 
 DUES. 
 
 Interest. 
 
 Premium 
 
 FINES 
 
 RECEIPT. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 .... 
 
 
 
 Pass-books are sometimes made with twenty-six instead 
 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 convenience. 
 
 On the front cover of the book should be pasted the 
 number of the book and a printed label as follows : 
 
 3SS 
 
 In account with 
 
 The Building and Loan Association, 
 
 of 
 
 No Shares 
 
 DEPOSIT ENVELOPES AND SLIPS. 
 
 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 bet- 
 ter. 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 caus- 
 ing'loss, delay, or error. The receiving officer calls off the 
 
 [341] 
 
CHAPTER XXIV. 
 
 number of the pass-book and the amount of money writ- 
 ten 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. 
 
 Below are forms of deposit slips and deposit envelopes : 
 
 DEPOSIT SLIP. 
 
 The Building and Loan Association. 
 
 19. 
 
 Name 
 
 Book No. 
 
 No. of Shares. 
 
 For weeks 
 
 Dues 
 
 $ 
 
 cts 
 
 Interest 
 
 
 Premium 
 
 
 Fines 
 
 
 Admission ") 
 
 or Y 
 
 
 Transfer ) 
 
 Book 
 
 
 
 
 Total 
 
 
 [342] 
 
BOOKS AND BLANKS. 
 
 THE 
 
 BUILDING ASSOCIATION 
 of 
 
 DEPOSIT ENVELO PE- 
 
 NOTE. — All moneys handed in to the Association for Credit on Member 
 skip Account, must be enclosed in one of these envelopes, and the blanks 
 ^roper'y filled out, to prevent mistakes or disputes. 
 
 Bock No. 
 
 MEMiBER'8 NAME. 
 
 M*k. M I 
 
 Dues for..j>^^. ^...Shares, for..j^^^^...Week5 
 
 Interest on Loan,. 
 
 Premium on Loan, w,^u^m,^„m,,i. 
 
 Fines, 
 
 Initiation Fee, {50c. j. 
 Pass Book " (25 c. ). 
 Transfer " (50c. ). 
 
 S 
 
 $ 
 
 .- •$ ~. 
 
 Total Cash in £ny elope, 
 
 Date,. 
 
 Copjrigbt, 18%, by ▲. O. 
 
 [343] 
 
CHAPTER XXIV. 
 
 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, together with 
 many others, will be found described in the list on next 
 page. 
 
 BUILDING ASSOCIATION SUPPLIES. 
 
 The following is a list, alphabetically arranged, of 
 books and forms for building associations, prepared by 
 S. Rosenthal & Co., Cincinnati, who have made a spe- 
 cialty of furnishing building association supplies for the 
 past twenty-three years : 
 
 [344] 
 
BOOKS AxND 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 Loans), Combined with Attorney's 
 Reports. 
 
 Application Book (For Membership). 
 
 Applications for Money (Dividends). Bound in ix)ok 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 OMcers.— (See form, page 260.) 
 
 Cash Book and General Ledger. — Copyright. — All 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.) 
 
 Combination Check Journal, S. T. Williams's. — Copyright. 
 
 Constitution Record Book with Members' Numerical Register 
 and Ledger Index Combined. — Contains blank space for recording 
 constitution and amendments thereto, with blanks for signatures of 
 
 [345] 
 
CHAPTER XXIV. 
 
 members numbered in regular order, record of shares held by each 
 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 Tables. 
 
 Dividend Warrants. 
 
 Dividend Withdrawal Blanks. 
 
 Dodgers. — All sizes, English or 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 of respect for deceased officers, directors, 
 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 
 
 [346] 
 
BOOKS AND BLANKS. 
 
 Nightly Receipt Books and Sheets. — (See Dues Book.) 
 
 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 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 CertiUcate Ledger and Dividend Books. 
 
 Pamphlets, in English and German. — 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 irrdex. 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 orr the most labor-saving plan. Second 
 Secretary books in different styles. 
 
 Show Carrf.y.- -Signs for place of meeting. 
 
 Solicitor's Reports. 
 
 Subscription Blanks. — For new associations. 
 
 Subscription Books. — Stock. 
 
 Tally Books and Blanks. — 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 s>iid shortages 
 in cash received. 
 
 Vos's Indizndual Record and Ledger. 
 
 Withdrawal Blanks. — In pads or book form. 
 
 [347] 
 
CHAPTER XXV. 
 
 Juvenile Savings.* 
 
 Owing to the prominence given to the movement in 
 Elmira, N. Y., by Mr. McEwan, of the New York Eve- 
 ning Post, some two 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. Twenty years or more ago 
 Prof. Elias J. Beardsley, principal of one of the Elmira 
 schools, operated a savings department successfully, until 
 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; 
 
 Prepared by Mr, H, M. Clark. 
 
 [348] 
 
JUVENILE SAVINGS. 
 
 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 Clay W. Holmes, 
 a loan association enthusiast of wide experience, who 
 recognized, at once, the beneficial features of a system 
 designed to stimulate thrift and the savings habit in chil- 
 dren. 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 Secretary 
 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 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 15,000 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. 
 
 ' [3491 
 
CHAPTER XXV. 
 
 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 
 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. 
 
 [350] 
 
JUVENILE SAVINGS. 
 
 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 President Kingsbury, 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. 
 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- 
 
 [351] 
 
CHAPTER XXV. 
 
 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 Alonday the teachers in the ten grammar 
 schools of Elmira received from such pupils as desired to join the 
 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 numberer 6,797, of which num- 
 ber 4,965 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 
 
 [352] 
 
JUVENILE SAVINGS. 
 
 25 cents each. These figures clearly prove that the plan is a great 
 success educationally, and that the belief of the promotors 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 
 institution, 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. 
 
 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 promotors, 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 
 
 [353] 
 
CHAPTER XXV. 
 
 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 fuUfledged 
 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-books 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 his savings, 
 he may apply in person at the office of the association 
 with his pass-book and receive his money. Such with- 
 drawals must be in sums of one dollar or multiples 
 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- 
 
 [354] 
 
JUVENILE SAVINGS. 
 
 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 sell- 
 ing 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 that 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 uses 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 
 a note to meet." It is to be regretted that he became dis- 
 couraged, turned in his bank 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, say- 
 
 [355] 
 
CHAPTER XXV. 
 
 ing, "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. 
 
 M^no 
 
CHAPTER XXVI. 
 
 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 T 
 
 This sounds like a somewhat homely, commonplace 
 proposition. But observe how very cleverly and pointed- 
 ly the great Scotchman, Burns, expresses the same idea: 
 
 Save Money 1 
 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, 
 
 [357] 
 
CHAPTER XXVI. 
 
 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. 
 
 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 
 advertising. 
 
 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 obliga- 
 tion, or as a business proposition, but also as a matter of 
 self-preservation. 
 
 No 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- 
 
 [358] 
 
ADVERTISING. 
 
 sion everywhere. Building associations now existing 
 must extend their membership and their usefulness; new 
 associations must spring up everywhere and dem- 
 onstrate 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 our article make it impossible to 
 enter into a detailed dissertation on the ''science" of 
 advertising. 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- 
 ful 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 
 
 [359] 
 
CHAPTER XXVI. 
 
 the human 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. 
 
 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 
 
 [360] 
 
ADVERTISING. 
 
 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 
 judiciously followed up.* 
 
 THE PREPARATION OP 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 
 words and formations of words into sentences are pleas- 
 ing, certain others displeasing, not only to individuals, 
 but 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. Adver- 
 tisements 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 
 
 • 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 reader's attention to the advertising 
 service rendered in connection with the American Building Association News. 
 
 [361] 
 
CHAPTER XXVI. 
 
 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, 
 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 thq 
 part of the general public. Of all occupations there is 
 
 [362] 
 
ADVERTISING. 
 
 none nobler than ours. "The American home" is in 
 truth "the safeguard to 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 newspapers 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. He 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, 
 in thinking over the business, or when reading the Ameri- 
 
 [363] 
 
CHAPTER XXVI. 
 
 can Building and Loan Association News, a splendid 
 paper, they are jotted down and in time duly developed. 
 
 TECHNICAL DATA. 
 
 It is impossible to establish rigid rules for advertising. 
 Many roads lead to Rome. Close appliance, study and 
 observation, together with practical experience, are the 
 best teachers. But there is a great deal of technical 
 data, which is of great value to every advertiser. In 
 the following 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 
 SVt points, while regular agate is cast upon 5^ points. See explana- 
 tion of point system.) 
 
 Some newspapers, especially the German, 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 
 22/3 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. 
 
 [364] 
 
ADVERTISING. 
 
 1 point=12 to pica. 6 point=Nonpareil. 18 point=Great primer. 
 
 2 point=^fi to pica. 7 points Minion. 24 point=Double pica. 
 
 3 point^-4 to pica. 8 point=Brevier. 30 point=5 line nonpareil. 
 854 point=BriIliant. 9 point = Bourgeois. 86 point=8 line pica. 
 
 4 point^S to pica. 10 point=Long primer. 42 point=7 line nonpareil. 
 454 point= Diamond. 11 point=Small pica. 48 point=4 line pica. 
 
 5 point=PearI. 12 point=Pica. 60 point=5 line pica. 
 654 point=Afi:ate. 14 point=EnKlish. 72 point=6 line pica. 
 
 PAPERS. 
 
 The selection of paper for advertising matter of any kind, be it 
 stationery, circulars, booklets or catalogues, 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 ar« : 22x30, 22x32, 22x35, 24x35, 24x36, 25x38, 
 26x38, 26x40, 28,x42, 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 supercalendared (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. 
 
 [365] 
 
CHAPTER XXVI. 
 
 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. 
 
 WRITING PAPER. 
 
 Writing paper is used for all kinds of commercial forms, which 
 are impregnable to fluid ink. Plain White Writing, Colored Writing, 
 Bond Papers, Linen Papers, Ledger 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 14x17 Double Demy, Broad 21x32 
 
 Crown 15 X 19 Double Demy, Long 16x42 
 
 Demy 16x21 Imperial 23 x .31 
 
 Folio 17 x 22 Double Medium, Broad 23 x 36 
 
 Medium 18x23 Double Medium, Long 18x46 
 
 Royal 19x24 Double Royal, Broad 24 x 38 
 
 Double Cap 17 x 28 Double Royal, Long 19 x 48 
 
 Super Royal 20x28 
 
 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 20x25 and 22x28. Other sizes 
 can be had to order only. Weights can be obtained in these sizes 
 from 25 pounds per ream to 125 pounds. Prices vary from 5c to 25c 
 per pound. 
 
 Cover Papers, as the name implies, are mainly used for covers of 
 pamphlets, booklets, folders, catalogues, etc. In the selection of a cover, 
 the text, the illustrations, color combination, etc., must be carefully 
 considered to obtain the desired efl^ect. Cover Papers, however, can 
 also be used for many other kinds of printing matter, such as pro- 
 grams, folders, leaflets, letter inserts, circulars, announcements, etc. 
 
 [366] 
 
ADVERTISING. 
 
 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. 
 
 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 printin-g 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 a screen of 1*20 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. Use always originals. 
 
 The cost of half-tone engraving plain square, 20 cents per square 
 inch ; blocked-out or vignetted, 25 cents per square inch. Minimum 
 cost of small-sized engravings $2.00. 
 
 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. 
 
 Line Engr.wing (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 
 
 [367] 
 
CHAPTER XXVI. 
 
 an acid bath, and produces a perfect printing plate, which can be used 
 as original, or be duplicated by stereotyping or electrotyping. 
 
 Cost of Zinc Etching is 7 cents per square inch. Minimum price 
 of small cuts 75 cents. 
 
 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 decid- 
 edly the best process for mechanical subjects and illustrations which 
 are to be extensively duplicated. 
 
 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. 
 
 Cost of good electrotypes, 4 cents per square inch. Minimum 
 price for, small cuts, 25 cents. 
 
 nickeltyping. 
 NiCKELTYPiNG involvcs 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. Cost, 5 cents per square inch. 
 
 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- 
 
 [368] 
 
ADVERTISING. 
 
 ing the form to a high temperature. The matrix is placed in a casting 
 box and melted type metal poured thereon. Wood base cuts should 
 not be used in any form which is to be stereotyped. Cost of stereo- 
 types about 2 cents per square inch. 
 
 BILL POSTING. 
 
 There are today in the United States bill-boards in every hamlet. 
 Every large city and the best towns of 3,000 inhabitants or over have 
 their own official bill poster. 
 
 Rates for posting are made per one sheet poster for four weeks, 
 and vary according to the population of the different cities. Average 
 prices are : 
 
 Cities under 5,000 population 7 cents per sheet 
 
 " over 5,000 population 9 cents per sheet 
 
 " over 100,000 population 12 cents per sheet 
 
 " over 250,000 population 14 cents per sheet 
 
 " over 500,000 population 16 cents per sheet 
 
 Special prices are charged for selected stands. Discounts arc 
 given for three months' and six months' showings. 
 
 A bill poster's month is four weeks instead of a calendar month. 
 A bill poster's year is forty-eight weeks. 
 
 Example for approximately computing cost of Bill posting. The 
 proposition to cover a town of over 5,000 population, where the rate 
 per one sheet and one month is 9 cents. There are 20 Stands, and 
 an 8-Sheet Poster is to be shown on all stands for three months. 
 Solution : 
 
 8 (sheets) X 20 (stands) X3 months) 
 X 9 (cents) =$43.20. 
 
 It is necessary to add to the number to be posted 25 per cent for 
 renewals. Bill posters agree to keep the showings in good condition 
 and renewal's are not charged for. 
 
 Bill-boards are nowadays, with few exceptions, faced with sheet 
 iron and are generally very substantial. 
 
 COST OF PRINTING POSTERS. 
 
 Cost of Printing Posters. The best high-grade pictorial work 
 is done by Lithography. The cost of making 8-Sheet Posters (size 
 most generally used) of that kind is approximately as follows: 
 
 [369] 
 
CHAPTER XXVI. 
 
 In lots of 
 
 8 colors. 
 
 4 colors. 
 
 5 colors. 
 
 1.000 
 
 $420.00 
 
 (42c per poster) 
 
 $560.00 
 
 (56c per poster) 
 
 $700.00 
 (70c per poster) 
 
 2,000 
 
 $600.00 
 (30c per poster) 
 
 $760.00 
 (38c per poster) 
 
 $900.00 
 (45c per poster) 
 
 3,000 
 
 $750.00 
 
 (25c per poster) 
 
 $930.00 
 
 (31c per poster) 
 
 $1,100.00 
 
 (37c per poster) 
 
 4,000 
 
 $840.00 
 (21c per poster) 
 
 $1,080.00 
 (27c per poster) 
 
 $1,300.00 
 (32.5c per poster) 
 
 5,000 
 
 $900.00 
 (18c per poster) 
 
 $1,200.00 
 (24c per poster) 
 
 $1,500.00 
 (80c per poster) 
 
 These prices are for high-grade pictorial work (lithography) and 
 include designs, etc. It ought to be mentioned, however, that the 
 "design" influences the cost materially. 
 
 One-color and two-color posters (not pictorial) are generally 
 done by letter press and the cost is much lower. 
 
 Signs on Dead Walls are generally sold on yearly contracts. 
 The price varies with locations and space covered. It averages about 
 6 cents per square foot per year, one painting included. 
 
 Bulletin Sign Boards are usually 10 feet high, although some 
 are 12 and 14 feet. The price varies according to locations from 
 25 to 50 cents per running foot per month. Contracts must run at 
 least six months and each six months of the contract include one 
 painting. 
 
 [370] 
 
ADVERTISING. 
 
 ^V-i. Ft 
 
 ¥2, rrf 
 
 — > •v •\'"> 
 
 I 
 I 
 
 I 
 I 
 
 I 
 
 
 .-.; 
 
 I 
 
 J 
 
 DIMENSIONS OF POSTERS. 
 
 The size of a one-sheet poster is 28 x 42 inches. The standard height from 
 8-sheet size up is 9J4 feet. The width of an 8-sheet is 7 feet. Add 3J^ feet to 
 the width for each additional 4 sheets added to the poster. 
 
 [371 : 
 
CHAPTER XXVI. 
 
 STREET CAR ADVERTISING 
 
 Has been given an impetus during the last years, and the system 
 been much improved. It is possible to advertise in any or in all 
 towns where street cars are running. 
 
 In Street Car Advertising parlance a "full run" means one card 
 in every street car in a given city or town, or group of towns, even if 
 several lines or routes are implied. Often suburban and interurban 
 routes are included. In other words, it is necessary to advertise 
 "full run" to completely cover a given territory by street cars. Con- 
 tracts can also be made for "half run" (one card in every other car) 
 and in some cases for any other fraction of a "full run." 
 
 The rates are 50 cents per card per month for three months; 
 45 cents for si?: months; 40 cents for a year for a full run. When 
 less than a full run is used, 5 cents additional per card per month 
 is charged. 
 
 Example. The proposition is to cover XYZ City completely for 
 one year. The city has two street car lines, altogether 40 cars, 
 constituting a "full run" for that territory. The cost is : 
 40 (cars) X 40 (cents X 12 (months) $192.00'. 
 
 The Street Car Advertising Agent figures 360 days to the year, 
 and expresses the above, in order to avoid the large sum, as : 
 lys cents per car per day. 
 
 These rates, of course, do not include the cards which must be 
 furnished. 
 
 The Standard size for Street Car Cards is 11 inches high by 21 
 inches wide. 
 
 Cost of printing Street Car Cards is approximately as follows: 
 
 Quantity 1 color 2 colors 3 colors 4 colors 5 colors 
 
 10 
 
 $ 2.00 
 
 $ 3,25 
 
 $ 4.75 
 
 $ 6.25 
 
 $ 8.00 
 
 50 
 
 2.70 
 
 3.95 
 
 5.46 
 
 6.95 
 
 8.70 
 
 100 
 
 3.40 
 
 4.65 
 
 6.15 
 
 7.65 
 
 9.40 
 
 200 
 
 5.00 
 
 6.50 
 
 8.00 
 
 9.50 
 
 11.25 
 
 500 
 
 9.25 
 
 10.75 
 
 12.50 
 
 14.25 
 
 16.25 
 
 1,000 
 
 15.50 
 
 17.50 
 
 20.00 
 
 22.50 
 
 25.50 
 
 2,000 
 
 28.00 
 
 32.00 
 
 36.00 
 
 40.00 
 
 44.50 
 
 5,000 
 
 65.00 
 
 75.00 
 
 85.00 
 
 97.50 
 
 110.00 
 
 [372] 
 
APPENDIX, 
 
 Laws of Ohio Relating to Building and Loan Associations. 
 
 (Senate Bill No. 419.) 
 
 AN ACT 
 
 To provide for the organization, regulation and inspection of Building 
 and Loan Associations, and Savings Associations. 
 
 Be it enacted by the General Assembly of the State of Ohio: 
 
 AUTHORIZED AND DEFINED.* 
 Section 1. A corporation for the purpose of raising money to be 
 loaned to its members, and others, shall be known in this act as a 
 "Building and Loan Association," or as a "Savings Association." 
 Associations organized under the laws of this state shall be known 
 in this act as "Domestic" associations, and those organized under 
 the laws of other states or territories, as "Foreign" associations. 
 Associations may be organized and conducted under the general laws 
 of Ohio relating to corporations, except as otherwise provided in 
 this act. 
 
 A manufacturing corporation may become a member of a building association 
 to borrow money: Norwalk Savings Bk. Co. v. The Metal Spinning and Stamping 
 Co., 14 C. C. 13; 7 O. D. 275. 
 
 A receiver cannot be appointed upon the sole application of the directors, 
 asserting no individual rights in the property of the building association: Schone 
 et al. V. The Consolidated Bldg. and Savings Co., 4 N. P. 216; 6 O. D. 246. 
 
 NAME. 
 Sec. 2. 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 shall end with the word 
 "Company" or with the word "Association," and it shall also use in 
 its name in any order it may designate, and if it so desires, with other 
 
 * By .Judge O. P. Sperra, Ex-Deputy Inspector of Building Associations of the 
 State of nViio, 
 
 [373] 
 
APPENDIX. 
 
 words not forbidden by law, any one or more of the following words, 
 or combinations of words, at its option, to wit: "Savings," "Build- 
 ing," "Loan," "Savings and Loan," or "Building and Loan." Pro- 
 vided, however, such association shall not use the words "bank," 
 "banking" or "trust", or any one or more of them in combination. 
 
 In organizing a building association under the act of February 21, 1867 (64 
 V. 18), the certificate of incorporation was by mistake acknowledged before a 
 notary public, instead of being acknowledged before a jus'tice of the peace, as 
 then required. In proceedings instituted under the act of March 10, 1859 (S. & 
 C. 1172), the mistake was subsequently corrected: Held, that the effect of the 
 correction was to make the association a corporation de 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 Ass'n, 26 O. S, 483. 
 
 ORGANIZATION. 
 
 Sec. 3. The capital stock named in the articles of incorpora- 
 tion shall be deemed to refer to the authorized capital, and the organ- 
 ization may be completed and business commenced when 5 per cent 
 thereof is subscribed, and when 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 Associations. 
 
 Sec. 4. Directors may be elected for any term, not less than 
 one year nor longer than three years, but if such term be longer 
 than one year, it shall be so arranged that the term of office of an 
 equal number of directors, as nearly as may be, will expire each year. 
 
 POWERS. 
 
 Sec. 5. Such corporation shall have all the powers set forth 
 in the following sections of this act. 
 
 Sec. 6. To receive money on deposit, and all persons, firms, 
 corporations and courts, their agents, officers and appointees are 
 hereby authorized to make such deposits and stock deposits, but such 
 corporation shall not pay interest thereon exceeding the legal rate; 
 and whenever any such deposits or stock deposits are made to the 
 joint account of two or more persons, whether adults or minors, 
 with a joint order to the corporation that such deposits or any part 
 thereof are to be payable on the order of any one or more of said 
 joint depositors, and that such deposits shall continue to be so pay- 
 able notwithstanding the death or incapacity of one or more of the 
 persons making such joint deposits, such account shall be payable to 
 any one or more of such survivors or survivor or order notwith- 
 standing such death or incapacity. And no recovery shall be had 
 against said corporation for amounts so paid and charged to sucK 
 account. 
 
 [374] 
 
APPENDIX. 
 
 Sec. 7. To issue stock to members on such terms and conditions 
 as the constitution and by-laws may provide. Each member shall 
 have the right to vote his stock in whole or fractional shares, as the 
 constitution and by-laws may provide, but no person shall vote more 
 than twenty shares in any such corporation in his own right, and no 
 one shall have the right to cumulate his votes, provided, however, 
 every subscriber for stock shall have the right in accordance with 
 the constitution of the association, to vote the amount of stock so 
 subscribed for, in no event to exceed twenty shares. 
 
 Each association should provide itself with a corporate seal as directed by the 
 general statutes of the state and all issues of stock by the association, in addition 
 to having the signatures of the president and secretary, should also bear the im- 
 press of such seal. (Ruling of the Department.) 
 
 Sec. 8. To assess and collect from members and others, such 
 dues, fines, interest and premium on loans made, or other assess- 
 ments, 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. 
 
 These various charges in excess of usual conventional interest are not usurious 
 Lucas V. C.reen\ille B. A.. 22 O. S. 339. 
 
 A member who paid by giving the secretary checks payable to the society 
 which the secretary appropriated, the constitution requiring payments in le^al 
 money cannot hold the society, and estoppel arises from the directors having 
 frequently taken his checks, for their power is limited by the constitution: 
 Mueller v. Cohen, 27 Bull, 352. 
 
 Payments should be made at the usual place of business of the association, and 
 during the time fixed by the by-lavvs, and while the board of directors are in 
 session and should be in cash and paid to the board, and also are good if so made 
 to any officer or director in the presence of the directors: Sachs v. The Duck- 
 worth Bldg. and Loan Ass'n., 4. N. P. 214; 6 O. D. 254. 
 
 If payments are made otherwise they are good, if the party paying shows that 
 the money actually reached the association. Id. 
 
 The burden is on the party paying to show payments as above stated; the 
 introduction of a pass book showing credits is not sufficient. Id. 
 
 FINES — Reasonable fines may be imposed, but only one fine for the same 
 due and none for default on interest: Hagerman v. Ohio B. A., 25 O. S 186; 
 Forest City B. A. v. Gallagher, 25 O. S. 208. 
 
 The mortgage may secure fines though the statute is silent, for power to fine 
 implies power to take security for it: Hagerman v. Ohio B. A., 25 O. S. 186. 
 
 Fines cease on a decree for sale, for interest then begins and the society 
 cannot have both: Windisch v. Korman, 5 Bull. 364. 
 
 Fines are not stopped by the mortgagor's assignment for benefit of creditors, 
 but run until payment of the mortgage under a decree to sell: Hutchinson v. 
 Straub, 9 Cir. D. 171; 16 C. C. 452. 
 
 INTEREST — No interest is chargeable on the premium : Forest City B. A. 
 r. Gallagher, 25 O. S. 208; Risk v. Bldg. Ass'n, 31 O. S. 517, 519. 
 
 The law of 1880 (S 3835) reduced the interest bearing power of loans by 
 annual rebate, but did not provide thereby for cancelling parts of a loan by 
 crediting dues year by year: Seibel v. Bldg. Ass'n, 43 O. S. 371. 
 
 The borrower's contract as to rebate of interest and payment of dividend is a 
 vested right and cannot be altered as a condition of granting a loan: Betz v. 
 Fulton B. A., 1 N. P. 42; 1 O. D. 58. 
 
 PREMIUMS — The premium can be fixed only by competitive bidding. A 
 minimum premium is not to be fixed as a condition of granting a loan: State v. 
 Greenville B. A., 29 O. S. 92; State v. Bldg. Ass'n, 35 O. S. 258. 
 
 [375] 
 
APPENDIX. 
 
 A premium not fixed by competitive sale is usurious if it raises the interest 
 above the legal rate: Bates v. People's Ass'n, 42 O. S. 655. 
 
 A stipulation in the mortgage that the whole loan should become due on 
 default of payment was held void where the premium was all deducted in 
 advance, for it amounted to forfeiting the premium: Hagerman v. Ohio B. A., 
 
 25 O. S. 186, 205. 
 
 The premium on existing loans cannot be increased by any change of by-laws, 
 unless power to do so is explicitly reserved: Burke v. Home Bldg. Ass'n, 7 BulU 
 114; Home Bldg. Ass'n v. Boning, 7 Bull. 174. 
 
 The right to fix the premium is conferred upon the association alone since 
 (§ 8836-3) is in force: People's S. & L. Ass'n v. Roberts, 5 N. P. 86. 
 
 The premium may be in excess of the legal rate of interest: Id. 
 
 1. USURY LAWS SUBJECT OF LEGISLATIVE CONTROL. 
 
 Usury laws are statutory, and their application may be extended or limited at 
 the pleasure of the legislature. 
 
 2. SECTION 3836-3 REVISED STATUTES EXEMPTING BUILDING 
 AND LOAN ASSOCIATIONS FROM USURY LAWS IS CONSTITUTIONAL. 
 
 Section 3836-3 Rev. Stat, exempting building and loan associations from the 
 operation of the usury laws of the state, with respect to loans made to members 
 and depositors, is neither violative of Sec. 26, Art. 2, of the constitution which 
 requires all laws of a general nature to have uniform operation throughout the 
 state, nor Sec. 1, Art. 13, which provides that the general assembly shall pass 
 no special act conferring corporate powers, nor of Sees. 1 and 2, Art. 1, of 
 the constitution. 
 
 Brooklyn B. & L. A. Co. v. Desnoyers et al. Vol. XLIX Ohio Law Bull. a52, 
 
 26 O. C. C. 352. 
 
 1. Section 3836-3 Rev. Stat., which confers power on building and loan 
 associations "to assess and collect from members and depositors, such dues, fines, 
 interest and premium on loans made, or other assessments as may be provided 
 for in the constitution and by-laws," — and which further provides, that "such 
 dues, fines, premiums or other assessments, shall not be deemed usury, although 
 in excess of the legal rate of interest," — is a valid enactment, and is not in con- 
 flict with Sec. 26, Art. 2, nor with Sec. 2, Art. 1, of the constitution of Ohio. 
 
 2. Under the provisions of said statute, the premium for a loan, if reason- 
 able in amount, need not be ascertained by competitive bidding for precedence in 
 obtaining the loan, but it may be fixed at a uniform rate by the constitution and 
 by-laws of the association. Simon W. Cramer v. Southern Ohio Loan & Trust 
 Co. Error to the circuit court of Paulding county. 50 Ohio Law Bull. 163. 
 
 BUILDING AND LOAN ASSOCIATIONS— USURY— CONSTITUTIONAL 
 
 LAW. 
 (Richland Common Pleas, January 8, 1905.) 
 1. PETITION MAY BE CONSTRUED AS MAKING DIRECT ALLEGA- 
 TION, WHEN. 
 
 Although there is no direct allegation in the petition that defendant is a 
 building and loan corporation, it will be construed as making such allegation when 
 it charges defendant with doing that which such a corporation alone may do. 
 
 ' 2. PRESUMPTION IN FAVOR OF LEGISLATIVE ENACTMENTS NOT 
 OVERCOME EXCEPT WHERE INVALIDITY CLEARLY APPEARS. 
 
 The presumption is that legislative enactments are not in conflict with the 
 organic law; and such enactments will not be declared invalid except where the 
 conflict clearly appears. 
 
 8. STATUTE EXEMPTING BUILDING AND LOAN ASSOCIATIONS 
 FROM USURY LAWS (LAN. R. L. 6279) VALID. 
 
 Laning R. L. 6279 (B. 3836-3) exempting building and loan associations from 
 the operation of the usury laws of the state, is not in conflict with the organic 
 law, nor violative of Sees. 1 and 2, Art. 1, of the Ohio bill of rights. 
 
 4. LOWER COURTS NOT BOUND BY DECISIONS OF SAME 
 COURT, ETC. 
 
 There is no rule of law which makes the decisions of a circuit court more 
 authoritative than the decisions of the district court, or the decisions of one 
 circuit court more authoritative than those of another; and in case of conflict, 
 the one will be followed which is supported by the best reason. Lucretta Car- 
 michael v. Indemnity Sav. & Loan Co., 15 O. D. 341. 
 
 [376] 
 
APPENDIX. 
 
 Sec. 9. To permit members to withdraw all or part of their stock 
 deposits, at such times, and upon such terms, as the constitution and 
 by-laws may provide. Any member, however, who withdraws his 
 entire stock deposit, or whose stock has matured, shall be entitled 
 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. To permit withdrawal of deposits upon such 
 terms and conditions as the association may provide except by check 
 or draft ; provided, however, that no such association shall be per- 
 mitted to carry for any member or depositor any demand, commercial 
 or checking account, but nothing in this act shall be construed to 
 prevent members or depositors from withdrawing funds by non- 
 negotiable orders. 
 
 Notice of withdrawal will not save a member from liability for losses incurred 
 before he succeeds in getting his money: Harrison Bldg. Ass'n v. Howell, 39 
 B. 386, edit. 
 
 Notice of withdrawal does not terminate liability for losses by depreciation of 
 securities sustained at the time of notice: Vincent v. Harrison B & L. Co., 7 O. 
 D. 353; 5 N. P. 273; /rf. 390. 
 
 The constitution providing that withdrawal claims could only be paid in the 
 order of notice given, a borrowing member, having purchased a withdrawal claim 
 not yet payable, cannot have his mortgage canceled upon his tendering as pay- 
 ment the withdrawal claim: Ward v. Bldg. Co., 5 N. P. 133; 8 Low. D. 489. 
 
 A withdrawing member is, until paid, a stockholder and not a creditor: 8 Low. 
 D. 594; 6 N. P. 185; Rehn v. North Fairmount B. & S. Co., 7 Low. D. 398; 
 6 N. P. 814. 
 
 Notice of withdrawal before the appointment of a receiver and when there 
 was sufficient money on hand to pay him, will not exonerate him from sharing 
 losses already incurred, though this was not then known. Vincent v. Harrison 
 B. & L. Co., 7 Low. D. 353; 5 N. P. 273; S. C. as Harrison Bldg. Ass'n v. 
 Howell. 39 B. 386. 
 
 The rieht to compromise with the association is not a right to obtain what 
 would be grossly inequitable and a fraud on other shareholders: Main St. B, and 
 L. Co. V. Eichter, 9 Cir. D. 74 ; 16 C. C. 191. 
 
 Withdrawal and cancellation of the mortgage of a borrowing member, on his 
 paying an assessment for losses, where the society is then hopelessly insolvent 
 and the assessment grossly inadequate, will not relieve him from liability to con- 
 tribute further: Galvin v. Albers, 9 Low. D. 279; 6 N. P. 273. 
 
 Sec. 10. 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. 
 
 Sec. 11. 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 the same 
 to such minors, or upon their order, and the receipt or paid order of 
 such minor, therefor, shall be a valid acquittance of the rights of 
 all concerned. 
 
 Sec. 12. To lease, acquire, hold, encumber, convey and rent such 
 
 [377] 
 
APPENDIX. 
 
 real estate and personal property as is necessary for the transaction 
 of its business, or necessary to enforce or protect its securities. 
 
 Purchases of land to be allotted among members is ultra vires and the pur- 
 chase notes are voidable: Vos v. Cedar Grove B. A., & Bull. 194. 
 
 A corporation is an artificial being, which exists only in legal contemplation, 
 and, being a mere creature of the law, possesses only those attributes which the 
 law confers, or such as may be implied as necessary to its existence, and it can 
 exercise no powers but such as are given to it by its charter, or such as are 
 necessary to carry into effect the powers expressly conferred: Bonham v. Taylor, 
 100-108; and corporations are strictly limited to the exercise of such powers, 
 and in such manner and by such agents, as are provided in their charters; 
 Bartholomew v. Bentley, 1 O. S. 87. 
 
 Where property which a corporation, under certain circumstances, is author- 
 ized by its charter to acquire, is purchased in a mode or for a purpose not 
 authorized, the title of the corporation to the property cannot be defeated by a 
 party who is a stranger to the agreement by which the property was acquired, 
 and who is not injured by the transfer: Ehrman v. Insurance Co., 35 O. S. 324, 
 Okey, J., dissented. 
 
 A corporation can make no contracts, and do no acts, either within or with- 
 out the state which creates it, except such as are authorized by its charter: 
 Ewing V. Bank, 48 O. S. 31. 
 
 Sec. 13. To borrow money, not exceeding twenty per cent of 
 the assets, and issue its evidences of indebtedness or other security 
 therefor. 
 
 Sec. 14. To make loans to members and others on such terms, 
 conditions and securities as may be provided by the association. 
 
 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. 
 
 Collecting money from members or depositors and loaning it among members 
 is not exercising banking powers: Forest City, etc., B. A. v. Gallagher, 23 O. S. 
 208; Dearborn v. Bank, 42 O. S. 617. 
 
 The use a member intends to make of his loan need not be ascertained by the 
 society: Hagerman v. Ohio B. A., 25 O. S, 186. 
 
 Loans to non-members or buying their notes is ultra rives nor are loans to 
 members at usurious rates authorized: State v. Greenville B. A., 29 O. S. 92. 
 
 A colorable deposit to qualify one to borrow estops him when sued for the 
 loan to deny that he was a depositor: Bates v. People's Ass'n, 42 O. S. 655; 
 and so thought that he drew out his deposit next day: Lockwood v. Robbins 
 (1 Cleveland Reporter 101). 
 
 If the mortgagor is not in default on foreclosure, a stipulated attorney's fee, 
 payable on foreclosure, is not chargeable: Resting v. Donahue, 2 Oh. Dec. 567. 
 
 The effect of a provision in the by-laws of a building and loan association 
 requiriMg members making loans, to be secured by mortgages, to insure the 
 property for a sum to be named, and to keep it insured in a company approved 
 by the association during the continuance of the loan and to deposit the policy 
 with the treasurer of the company, and authorizing the association, upon failure 
 of a member so to do, to make renewals at the expense of the borrower, is 
 mutual benefit or insurance. Such a provision makes the association the agent 
 of the borrower and imposes upon it the duty of renewing the policy if the 
 borrower fails to do so; and if the association neglects to keep the property in- 
 sured, and it is destroyed by fire, it is liable for the loss: Geswine v. Star B. & 
 L. Co. (Lawrence (4th) Circuit Court) 13-23 O. C. C, 477. 
 
 A mortgagor of improved premises who stipulates in her mortgage, as a 
 condition thereof, to procure insurance for the benefit of the mortgagee, does not 
 thereby become the agent of the mortgagee in procuring the insurance. 
 
 Where an insurance company issues a policy of insurance upon mortgagejl 
 property in which it unconditionally stipulates to pay the loss thereunder to the 
 
 [378] 
 
APPENDIX. 
 
 mortgagee as her interest may appear, it is no defense to the claim of the 
 mortgagee, who has been made a party to an action commenced on the policy by 
 the mortgagor and has set up her mortgage interest by cross-petition, that the 
 policy was procured by the fraudulent representations and concealments of the 
 mortgagor, when it does not appear that the mortgagee was a party to the insur- 
 ance contract or had any knowledge of the fraud: Clara E. Agner v. Fireman's 
 Insurance Co. et al., 14 O. Dec. 268. 
 
 A mortgage executed agreeably to the provisions of Sec. 4106 Rev. Stat, of 
 Ohio, and attested and acknowledged as therein provided, is not invalid and 
 cannot be impeached, in the absence of fjaud or undue advantage, merely because 
 the witnesses who attest the signature of the mortgagor and -the notary public 
 taking his acknowledgment are stockholders of, but not otherwise interested in, 
 the corporation named in said mortgage as grantee. 
 
 In taking and certifying an acknowledgment, as provided in said Sec. 4106 
 Rev. Stat., the act of the notary public or other officer taking and certifying the 
 same is a ministerial and not a judicial act: Read, as Assignee for the Creditors 
 of Lindsay v. The Toledo Loan Co., 68 Ohio St. 280. 
 
 Under Sec. 5464, Rev. Stat, the dower interest of the judgment debtor may be 
 subjected to the payment of his debt, notwithstanding such interest has not been 
 assigned: Gildhaus et al. v. Fidelity Building & Savings Co. et al., Ohio Law 
 Bull.. Vol. 48, p. 110. 
 
 Where an action is commenced by the mortgagor against the mortgagee, upon 
 a defectively executed recorded mortgage, for the purpose of having the same 
 reformed and for sale of the premises: Held, that judgment liens obtained after 
 the commencement of the action and before decree reforming the mortgage, do 
 not have a preference over the mortgage lien, and that the claim of the mortgagor 
 should be first satisfied out of the fund arising from the sale of the property: 
 Caldwell Building and Loan Ass'n v. J. W. Bigley et al., 25' O. C. C. 431. 
 
 Where the property of an insolvent debtor by order of court, is placed in the 
 hands of a receiver to be administered upon for the payment of the insolvent's 
 debts, a creditor who holds collaterals taken to secure his claim, and upon which 
 he has realized before a dividend is declared; is entitled to a dividend on only so 
 much of his debt as remains after deducting the proceeds of the collaterals; and 
 this sum may be ascertained at the time dividend is declared, although the claim 
 had formerly been proven and allowed for the full amount: Buckingham et al. 
 V. Springfield Building and Loan Association et al. (decided October 13, 1903). 
 Ohio Law Bull, Vol. 48, p. 914. 
 
 The doctrine caveat emptor applies to mortgage foreclosure sales of real 
 estate; and one who has entered into competitive bidding for the purchase of 
 property at such sale cannot, after his bid is accepted, avoid the sale or refuse to 
 complete his pnrch.ise because of the existence of liens and encumbrances thereon, 
 or defects in the title. Such purchaser is bound to examine the public records 
 to ascertain the condition of the title before entering his bid, or, failing so to do, 
 abide the consequences of such neglect. 
 
 A sale of real property at foreclosure sale is not void because the journal 
 entry recites that the attorney for plaintiff also confessed judgment as attorney 
 for defendant, as the presumption is, in the absence of proof to the contrary, 
 that such action was authorized; nor because the published notice of sale desig- 
 nates "C. E. Millers et al.," instead of "Charles E. Miles et al.," as defendants, 
 and gives the docket number of the case as "16,149," instead of "43,834." Such 
 errors are mere irregularities, nei-ther preventing the passing of the title to the 
 purchaser, nor affecting the validity of the sale: Brickell v. Miles et al. 
 (Franklin Common Pleas, February 24, 1904) 14 Dec. 456. 
 
 A judgment for the amount due at the date of its rendition, instead of at the 
 date of filing the petition, is not excessive because no supplementary petition was 
 filed, when the petition prays "that an account be taken" and judgment be 
 rendered for the "amounts found due," and no new facts have arisen after the 
 filing of the petition, and all the facts necessary to determine the amount 
 becoming due thereafter are averred therein. A supplementary petition is un- 
 necessary under such circumstances: Martha N. Miller v. Highland Ave. L. and 
 B. Co., 25 C. C. 733. 
 
 CONTRACTS. RULE AS TO STATUTES BEING A PART OF CON- 
 TRACT. The rule that the law writes into every contract the provisions of the 
 statutes that are applicable to the transaction refers only to statutes existing at 
 the time the contract was made, and not to subsequent statutes such as would 
 abrogate or impair the contract. Supreme Court of Illinois, Vol. 226 at page 57. 
 
 The West Virginia Supreme Court of Appeals held in the case of William 
 
 [379] 
 
APPENDIX. 
 
 B. Burkheimer, Jr. v. National Mutual Building and Loan Association of New 
 York, that a change of the plan of a building and loan association making a 
 material departure from its original plan is sufficient to justify a dissolution of 
 its contract with a member. 4 L. R. A. (N. S.) 1047. 
 
 Sec. 15. To cancel such loans and release the securities on such 
 terms as the board of directors may provide. But any member may 
 have his loan canceled upon the following terms, to wit : After the 
 premium for one year has been paid, and also the interest and 
 premium up to the date of cancellation, the borrower shall pay the 
 sum actually borrowed less the dues paid and dividends credited. He 
 shall pay also any fines or other assessments required by the constitu- 
 tion and by-laws. 
 
 Withdrawal or release on bona fide and reasonable compromise is legal both 
 for drawn and undrawn shares: State v. BIdg. Ass'n, 25 O. S. 285; Wangerien 
 V. Aspell, 47 O. S. 250. 
 
 A bona fide compromise will not be rescinded because the released member 
 received more than a pro rata share: Wangerien v. Aspell, 47 O. S. 250. 
 
 The constitution providing that withdrawal claims could only be paid in the 
 order of notice given, a borrowing member, having purchased a withdrawal claim 
 not yet payable, cannot have his mortgage cancelled upon his tendering as pay- 
 ment the withdrawal claim: Ward v. Bldg. Ass'n Co., 5 N. P. 133. 
 
 All canceled shares of stock mus't be preserved with the files and other papers 
 of the association in such manner as to be readily accessible. (Ruling of the 
 Department.) 
 
 An answer to a foreclosure suit that the by-laws provide against foreclosure 
 until the dues are three months in arrears states a defense to a suit begun in two 
 and one-half months: Home Bldg. Ass'n Co. v. Tenny, 8 Low. D. 391; 
 7 N. P. 130. 
 
 On foreclosure, when the mortgagor is not in default, a stipulated attorney's 
 fee, to be paid on foreclosure, is not enforcible: Resting v. Donahue, 6 Cir. D. 
 262; 13 C. C. 653. 
 
 A mortgage reciting that the borrower owned a certain number of shares 
 and tViat the company advanced to him $1,480, the estimated value thereof, as a 
 loan and that to secure payment thereof he mortgaged the property, is not within 
 the rule that the property alone can be looked to without judgment over unless 
 the rule that the property alone can be looked to without judgment over, unless 
 hence a judgment for deficiency after sale is proper: McHenry v. Batavia Bldg. 
 & L. Co., 9 Cir. D. 531; 17 C. C. 206. 
 
 A building and loan association is without authority to withdraw mortgage 
 credits for the purpose of paying fixed charges. 
 
 Sec. 16. 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 asso- 
 ciation ; and 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, village, or other incorporated 
 municipality in the state of Ohio; and in such other securities as are 
 now or may hereafter be accepted by the United States to secure 
 government deposits in National banks ; provided that such invest- 
 ments shall at no time amount in the aggregate to more than twenty 
 
 [380] 
 
APPENDIX. 
 
 per cent of the assets of such corporation. Also to deposit any of 
 said funds or any 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 and to buy but not sell, 
 except in case of financial emergency and then only with the consent 
 previously had of the Inspector of Building and Loan Associations, 
 interest bearing obligations 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, 
 and such mortgage investments may be held and reported as mort- 
 gage loans. 
 
 Sec. 17. To make such annual or semi-annual distribution of 
 the earnings as is hereinafter provided, and as the constitution and 
 by-laws may prescribe 
 
 The ownership of a share of stock involves the right to participate in the 
 dividends declared from the profits of the business, and, upon the dissolution 
 of the corporation, to a proportionate share of the fund remaining after payment 
 of the corporate debts: Jones v. Davis, 35 O. S. 476, 477. 
 
 Sec. 18. To increase or decrease its authorized capital or the 
 face value of its shares, or change the name of the corporation at 
 any time, by a majority vote of its board of directors; and a cer- 
 tificate 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 any such change was made. 
 
 Sec. 19. To dissolve the corporation when its continuance shall 
 be deemed by a majority vote of the stock entitled to be voted under 
 its constitution and by-laws, which shall not be inconsistent with the 
 provisions of section 7 of this act, to be no longer desirable, subject, 
 however, to the contract rights of its borrowers, and the vested rights 
 of its members. 
 
 But as to dissolution, see section 48 of this act. See also sections 5687 
 and 5688. 
 
 Building societies are to be wound up like other corporations for profit, as if 
 dues were payments on stock subscriptions. If all members have stopped paying 
 dues, a borrowing member's stoppage is not a default under a clause making his 
 whole amount due on default. Interest continues during proceedings to wind up, 
 but not dues, except as assessments are ordered: Hinman v. Ryan, 3 C. C. 529. 
 
 Where the board of directors, merely as such, of a building association ask 
 for a receiver, without asserting an individual right as stockholders or otherwise, 
 though on the grounds of insolvency and inability to manage the affairs of 
 the company, the court has no power to grant a receiver without notice to or 
 consent of stockholders. Only shareholders can apply for a receiver: Schone 
 z: Consolidated B. & S. Co., 6 Low. D. 246; 4 N. P. 216. 
 
 When a building association, by general consent of its stockholders, concludes 
 to cease business as a going concern, and by general consent the closing up of 
 its affairs is left in the hands of the board of directors, the directors retain all 
 
 [3«1] 
 
APPENDIX. 
 
 the power they previously had with reference to the disposal of the assets of the 
 association: Roth v. St. Clair B. and L, Co. et al. (Superior Court of Cincinnati, 
 General Term, 1902.) (18 Dec, 154.) 
 
 LOAN ASSOCIATIONS. ASSOCIATIONS MAY CONTRACT FOR 
 ATTORNEY'S SERVICES AFTER AUDITOR HAS PLACED CUSTODIAN 
 IN CHARGE. The act of the State Auditor in putting a custodian in charge 
 of the assets of a building and loan association does not deprive the association 
 of the power to make a contract for services of attorneys to resist the appoint- 
 ment of a receiver. 
 
 SAME. WHEN COURT MAY ALLOW FEES TO ATTORNEYS RE- 
 SISTING RECEIVERSHIP. In a receivership proceeding against a building 
 and loan association the court has power, where the equities of the case so 
 require, to allow a claim for attorney's fees for services rendered to the asso- 
 ciation in resisting the receivership, even though the litigation was unsuccessful 
 and the contract of employment was made after the State Auditor had placed a 
 custodian in charge of the assets; and the allowance of such claim is binding 
 upon the purchaser of the assets who has agreed in his bid "to pay in full the 
 general creditors of the estate such claims against the estate as may be allowed 
 by the court." Supreme Court of Illinois, Vol. 225 at page 508. 
 
 Sec. 20. To amend its articles of incorporation, and to increase 
 and decrease the number of its directors, by complying with all the 
 requirements provided in its own constitution for the amendment 
 thereof, and the other officers of such corporations shall consist of 
 a president, one or more vice-presidents, one or more secretaries and 
 such other officers as its constitution and by-laws may provide. 
 
 This right to amend does not extend to a substantial change of the original 
 purpose of the organization: State ex rel v. Taylor, 55 O. S. 67. 
 
 Sec. 21. To provide, by constitution adopted by its members, and 
 by-laws adopted by its board of directors, for the proper exercise of 
 the powers herein granted, and the conduct and management of its 
 affairs. 
 
 Amending the constitution and by-laws is a power incidental to all corpora- 
 tions, and though this may be limited by the constitution, mere silence does not 
 take it away: Wangerien v. Aspell, 47 O. S. 250, 260. 
 
 By-laws are sufficiently proved if appearing on the records and uniformly 
 acted on. Proof of a formal vote of adoption is not necessary: Hagerman v. 
 Ohio B. A., 25 O. S. 186. 
 
 Sec. 22. To have all such other powers as are necessary and 
 proper to enable such corporation to carry out the purpose of its 
 organization. 
 
 While the law neither requires the directors nor gives them authority to 
 
 appoint an attorney, yet an association may by virtue of this section adopt a 
 
 constitution providing for an attorney: New German Loan and Bldg. Co. v. 
 Kuehnert, 6 O. D. 502. 
 
 REGULATIONS. BONDS OF OFFICERS. 
 
 Sec. 23. The board of directors shall designate a bank or banks, 
 in which it shall cause the funds of such corporation to be deposited 
 in the name of the corporation, and such funds when so deposited, can 
 
 [382] 
 
APPENDIX. 
 
 be withdrawn only in such manner and for such purpose as may be 
 provided in the constitution and by-laws and authorized by law. 
 
 All bank books showing such deposits shall be open to the inspec- 
 tion 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 board of directors, for the 
 faithful performance of the same, and the safe keeping and proper 
 application of all moneys or property coming into their hands. All 
 officers of such corporations on being re-elected to office shall renew 
 their bon-ds. The bond may be increased or additional securities 
 required at any time by the board of directors. Directors shall not 
 be eligible as bondsmen, and shall be individually liable for any loss 
 to members, caused by their neglect to comply with the provisions 
 of this section. 
 
 As to bonds of building association officers and actions thereon, see Building 
 Ass'n V. Cummings, 45 O. S. 664. 
 
 An attorney for an association is not an officer: New German Loan and 
 Bldg. Co. V. Kuehnert, 6 O. D. 502. 
 
 His bond is not an oficial bond: Id. 
 
 Sureties on an attorney's bond "during his continuance in office," his appoint- 
 ment being at pleasure, are liable for any default during the attorney's incumb- 
 ency, he being continued in office from time to time without giving a new 
 bond : Id. 
 
 See note to <;amp rase 5 (.'*Rafi-4). 
 
 This would include entering into of sufficient bonds by the president and 
 vice-president of an association. (Ruling of the Department.) 
 
 Each officer required to give a bond must have at least two sufficient sureties 
 thereon, or it can be signed by a surety company authorized under the laws of 
 Ohio. (Ruling of the Department.) 
 
 BONDS. 
 
 [Hamilton (1st) Circuit Court, June 22, 1907.] 
 
 Swing, GiflFen and Smith, JJ. 
 
 EDWARD DIENST ET AL. V. FISCHMANN LOAN & BLDG. CO. 
 
 Subrogation OF Building Association against General Creditors. 
 A building association through the negligence of its attorney loaned $1,000 to 
 one holding a defective title to the property upon which he gave a mortgage to 
 secure the loan. The mortgagor died. The proceeds of the loan could not be 
 traced to his creditors, but were probably used by the widow in satisfaction of 
 her allowance of $1,500 for the first year's support of herself and minor children. 
 The attorney moved out of the jurisdiction and in the present suit on his bond 
 service could not be obtained upon him: Held, 
 
 (1) In an action on a bond which is in the nature of a joint obligation, the 
 fact that one of the obligors could not be served with summons because not 
 within the jurisdiction of the court does not prevent the taking of judgment 
 against obligors who are within the jurisdiction. 
 
 IFor other cases in point, see 2 Cyc. Dig., "Bonds," §§ 834-847. — Ed.] 
 
 (2) The building association was without remedy on its mortgage by way of 
 subrogation against the general creditors of the mortgagor or the first year's 
 allowance to the widow. 
 
 [For other cases in point, see 2 Cyc. Dig., "Bonds," §§ 1110-1116; 7 Cyc. 
 Dig., "Subrogation," §§ 8-23.— Ed.] 
 
 (3) The attorney having knowledge of the mistake which he had made, notice 
 to him or his bondsmen of the loss the building association had sustained was 
 not necessary, and laches or estoppel cannot be pleaded in their behalf. 
 
 [383] 
 
APPENDIX. 
 
 RESERVE FUND. 
 
 Sec. 24. 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 the same is exhausted, and when- 
 ever the amount in said 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 said amount. 
 
 The reserve fund belongs pro rata to all members whether borrowers or not: 
 Seibel v. Bldg. Ass'n, 43 O. S. 371, 375. 
 
 Charges made from the contingent fund should, in each instance, show for 
 what purposes they are made. (Ruling of the Department.) 
 
 DIVISION OF EARNINGS. 
 
 Sec. 25. All expenses of such association shall be paid out of the 
 earnings only, and so much of the earnings as may be necessary shall 
 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 cur- 
 rent expenses. 
 
 After payment of expenses and interest, a portion of the earnings 
 to be determined by the board of directors, shall also be placed 
 annually or semi-annually in the Reserve Fund for the payment of 
 contingent losses, as hereinbefore provided, and a further portion of 
 such earnings, to be determined by the board of directors, shall be 
 transferred as a dividend annually or semi-annually, in such propor- 
 tion to the credit of all members as the corporation, by its constitu- 
 tion and by-laws, may provide, to be paid to them at such time and in 
 such manner in conformity with this act as the corporation by its 
 constitution and by-laws, may provide. Any residue of such earn- 
 ings may be held as undivided profits to be used as other earnings, 
 provided, however, that such undivided profit fund shall at no time 
 exceed three per cent of the total assets of the association. 
 
 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 of the same. 
 
 Prior to the act of 1886 dividends were to be declared to borrowers and 
 non-borrowers alike without discrimination: Seibel v. Bldg. Ass'n, 43 O. S. 371. 
 
 After that act the society could confine borrowers to dividends on the previous 
 six months' dues: Deiringer v. Carlisle Bldg. Ass'n, 2 Ohio Decision, 543. 
 
 [384] 
 
APPENDIX. 
 
 One who on borrowing is fully advised as to how dividends are declared and 
 received them for 8 or 9 years on that basis, and allowed other members to 
 be dealt with in the same way, and to recast the accounts now would entail great 
 loss on the sorietv, will be estopped to deny the legality of the division: Buehl- 
 man v. Atlantic Bldg. Ass'n, 6 C. C. 285, and see Deiringer v. Carlisle B. A., 
 2 Ohio Dec. n4S (aff'd by Supreme Court, no report, 38 Bull. 328). 
 
 No dividends could be allowed in 1884 on dues paid in advance, as where 
 $9,000 was borrowed and $7,000 was paid back two years later and credited on 
 weekly dues: Turner Bau Verein v. Woodburn, 27 Bull. 409. 
 
 A borrowing member is one who receives the par value of his shares in 
 advance and agrees to pay dues and interest until dues and undrawn dividends 
 equal the par value of his shares, and his share of losses, when he ceases to be 
 a member and is entitled to a cancellation of his mortgage. Eversmann v. 
 Schmitt, 53 O. S. 174. 
 
 Where a foreclosure was begun in December, 1896, an answer that the 
 dividends due in January, 1897, will pay all balances due, states a good defense; 
 for when the par value of the stock has been paid this satisfies the mortgage: 
 Home Bldg. Ass'n Co. v. Tenny, 8 Low. D. 391; 7 N. P. 130. 
 
 A member's certificate of stock contained a promise to pay the share in full 
 in five years. But having borrowed the amount his mortgage to the society 
 required him to pay until the amount was repaid: Held, the mortgage controls 
 and he is not entitled to have it canceled at the end of five years, though bjr 
 reason of defalcations the time is prolonged: Haynes v. People's B. and S. 
 Ass'n, 3 Low. D. 228; 2 N. P. 181. 
 
 The premium may now (B. R. S. § 3836-3) be fixed bv by-laws of the society. 
 The borrower no longer has a right to fix it by his bid. It is not now a premium 
 for the right of precedence, but is a premium on the loan. This has been so 
 since 1896. People's Sav. and Loan Ass'n v. Roberts, 5 Low. D. 489; 5 N. P. 86. 
 
 § (3836-3) in giving the associations an exemption from the usury laws if a 
 premium fixed by them without competitive bidding exceeds what other institu- 
 tions may charge, grants a special privilege contrary to Const. 1, 2, and is so far 
 void: Mykrantz v. Globe B. and Loan Ass'n, 10 Cir. D. 250; 19 C. C. (Aff's 
 41 B. 262, edit.). Overruled; see Spies v. Southern Ohio Loan and Trust 
 Company, 24 O C. C. x^ 
 
 A borrowing member in case of losses is like a non-borrower assessable on all 
 dues and earnings which should stand to the credit of his stock and no annual 
 settlement crediting dues paid to a loan and rebating interest thereafter can limit 
 the liability to the dues of the current year only: 6 Low. D. 95; 4 N, P. 97; 
 Main St. B. and L. Co. r. Richter, 9 Cir. D. 74; 16 C. C. 191. 
 
 A borrowing member who has acquiesced for several years in rebate of 
 interest and dividends only upon the current year's dues, in a society organized 
 prior to the law of 1880, is estopped to demand a credit of dividends on the 
 entire amounts paid in as dues, and the purchaser of his property is also estopped. 
 Atlantic B Ass'n v. Vogeler, 5 Low. D. 581; 7 N. P. 606. 
 
 Where a borrower's dividends were wrongly confined to dues for the last six 
 months only, and not on all dues, paid in his silence for several years, does not 
 estop him to object to the mistake: 55 O. S. 681; Deiringer v. Carlisle Bldg. 
 Ass'n, 2 Low. D. 543. 
 
 Premiums of 16^ cents per month on each $100 share, and fines of 10 cents 
 per month during default of dues of 50 cents per month on each such share, 
 imposed by a building and loan association upon a borrowing member in addition 
 to 6 per cent interest upon his loan, are not in the nature of usury or unreason- 
 able in amount: Spies v. Southern Ohio L. and T. Co., (Lucas (6th) Circuit 
 Court, 1902.) 24 O. C. C. 41. 
 
 Section 3836-3 Rev. Stat., in exempting building and loan associations from 
 the operation of the usury laws, is not in violation of Sees. 1 and 2, Art. 1 of 
 the constitution: Mykrantz v. Globe B. and L. Ass'n, Circ. Dec. 250 (19 R. 51), 
 overruled. 
 
 Losses must be shared by borrowers and non-borrowers alike: Eversmann 
 V. Schmitt, 53 O. S. 174. 
 
 Where borrowing member's mortgage contained a stipulation to pay such 
 assessments as might be levied on him as a member, a receiver to wind up the 
 association may make a pro rata assessment upon him to meet a shortage, and he 
 is not entitled to cancellation of the mortgage until he has paid the assessment: 
 Eversmann v. Schmitt, 53 O. S. 174. 
 
 If a certificate of stock contains a promise to pay the share in full in five 
 years, but the mortgage requires dues to be paid until the loan is paid in full, 
 
 [385] 
 
APPENDIX. 
 
 the mortgage controls, though the time is prolonged by defalcations. Haines v. 
 People's B. A., 2 N. P. 181; 3 O. D. 228. 
 
 A borrowing member, like a non-borrower, is assessable for losses on all 
 dues and earnings which should stand to the credit of his stock, and no annual 
 settlement, crediting dues paid to a loan and rebating interest thereafter, can 
 limit the liability to the dues of the current year only: Main St. B. and L. Co. 
 V. Richter, 16 C. C. 191. 
 
 TAXATION. 
 
 Sec. 26. The shares and loans advanced to its members, shall be 
 exempt from taxation, except shares or stock upon which no loans 
 have been made or money advanced by the company, shall be con- 
 sidered and held as credits, and the said 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 Monday in 
 April each year, and the same shall be assessed at such valuation for 
 taxation and taxes as other property. 
 
 A building and loan association advancing or paying taxes on real estate 
 securities mortgaged to it, should first examine carefully the provisions of House 
 Bill No. 339, filed in the office of the Secretary of State April 16, 1906, entitled, 
 "An act to revise Section 2847 of the Revised Statutes of Ohio and to further 
 safeguard the real estate securities of banks and others," and which said act 
 is as follows: 
 "Be it enacted by the General Assembly of the State of Ohio: 
 
 Section 1. That section 2847 of the Revised Statutes of Ohio as amended 
 April 19, 1904 (97 v. 100) be and the same is hereby amended so as to read 
 as follows: 
 
 Sec. 2847. Every person holding lands as aforesaid shall pay the tax which 
 may be assessed thereon each and every year; provided, that agents and attorneys 
 shall not thus be obliged to pay sucfi taxes, unless sufficient moneys of their 
 principals be in their hands to pay the same; and provided, further, that any 
 persons owning lands as aforesaid, may authorize or consent to the payment by 
 any other person, of the taxes levied upon such lands, and any person so paying 
 such taxes shall first obtain from the owner or owners of such lands a certificate 
 of authority to pay such taxes signed in the presence of two witnesses, and duly 
 acknowledged before an officer authorized to administer oaths, which certificate 
 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 the same 
 were levied and the name of the person authorized to pay the same and the 
 date of the payment thereof; and shall, within ten days from the date of the 
 payment of such taxes, file the same in the office of the county recorder for 
 record, and when such certificate has been filed as aforesaid, the amount thereof 
 with interest at the rate of eight per cent per annum from the date of the pay- 
 ment of such tax, shall operate as 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 certificate of 
 authority and the money so paid, together with the interest thereon, may also be 
 recovered by action for money paid to his use against the person or persons 
 legally liable for the payment of such tax, which action may be brought by such 
 person so paying such tax as aforesaid, at any time after the expiration of one 
 year from the date of the payment thereof; that such certificate so filed as afore- 
 said with the county recorder, shall be recorded and cancelled in the same manner 
 as mortgages on real estate, in a book to be separately kept and indexed by him 
 for that special purpose, and such recorder shall receive such fees as are prescribed 
 by law for recording real estate mortgages. 
 
 Section 2. That section 2847 of the Revised Statutes of Ohio as amended 
 April 19, 1904 (97 v. 100) be and the same is hereby repealed." 
 
 See Vol. 98 Laws of Ohio, pages 285 and 286. 
 
 [386] 
 
APPENDIX. 
 
 INSPECTION. 
 
 Sec. 27. There is hereby established in the department of 
 insurance a bureau to be known as the bureau of Building and Loan 
 Associations, which shall be charged with the execution of the laws 
 of this state relating to such associations. 
 
 Duty under act to regulate certificate, etc., companies, etc., other than building 
 and loan companies, and to regulate investment guaranty companies doing business 
 on the service dividend plan, see § 382 Ir et seq. 
 
 Sec. 28. The chief officer of said bureau shall be known as the 
 "Inspector of Building and Loan Associations." The superintendent 
 of insurance shall ex-oflicio be also such inspector and as compensa- 
 tion for his services as such inspector he shall be entitkd to receive 
 such compensation as provided by law. Before entering upon his 
 duties, he shall give bond to the state of Ohio in the sum of ten 
 thousand dollars, to be approved by the governor, conditioned for 
 the faithful discharge of his duties, and the bond, with his oath of 
 office and the approval of the governor endorsed thereon, shall be 
 filed with the secretary of state. 
 
 The inspector shall appoint a deputy, who is hereby authorized to 
 perform the duties attached by law to the office of inspector, and 
 such deputy shall receive as compensation therefor the sum of three 
 thousand dollars per annum and this salary shall be in full for all 
 services rendered to the state for inspection of bond investment com- 
 panies and for services rendered under this act. 
 
 He shall also appoint such clerks and examiners as may be 
 necessary. 
 
 Sec. 29. The adjutant general shall provide suitable accommoda- 
 tions for the conduct of the business of the ^bureau in the office of 
 the superintendent of insurance and furnish the necessary furniture, 
 etc., and the expense of the same shall be paid out of the state 
 treasury, on the certificate of the inspector and the warrant of the 
 adjutant general. 
 
 Sec. 30. It shall be the duty of the inspector to see that all the 
 laws of this state relating to building and loan associations and to 
 savings associations are faithfully executed. 
 
 FOREIGN ASSOCIATIONS. 
 
 Sec. 31. Foreign building and loan associations doing business in 
 this state, shall conduct the same in accordance with the laws of the 
 state governing domestic associations, and no such association shall 
 do any business in this state until it procures from the inspector a 
 
 [387] 
 
APPENDIX. 
 
 certificate of authority to do so. To procure such authority, such 
 association shall comply with the following provisions : 
 
 First. It shall deposit with the inspector one hundred thousand 
 dollars, either in cash or bonds of the United States or the State of 
 Ohio, or of any county or municipal corporation in the state of Ohio, 
 satisfactory to the inspector. 
 
 Second. 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 state- 
 ment such as is required annually from all associations. 
 
 Third. 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 the inspector is situate, commanding him to serve 
 the same by certified copy personally upon the inspector or by leav- 
 ing a copy thereof at his office. The inspector shall, however, mail 
 a copy of any papers served on him, postage prepaid, to the home 
 office of such association. 
 
 Sec. 32. Whenever such association has complied with the pro- 
 visions of this act, and the inspector is satisfied that such associa- 
 tion is doing business according to the laws of this state, and is in 
 sound financial condition, he shall issue his certificate of authority 
 to such association to do business in this state. Annually thereafter, 
 upon the filing of the annual statement herein provided for, if the 
 inspector shall be satisfied as aforesaid, he shall issue a renewal of 
 such certificate of authority. 
 
 Sec. 33. Such foreign association may collect and use the interest 
 on any securities so deposited, so long as it fulfills its obligations 
 and complies with the provisions of this act. It may also exchange 
 them for other securities of equal value and satisfactory to the 
 inspector. 
 
 Sec. 34. The deposit made with the inspector shall be held as 
 a security for all claims of residents of this state against said associa- 
 tion, and shall be liable for all judgments or decrees thereon and 
 subjected to the payment of the same in the same manner as the 
 property of other non-residents. Should any association cease to do 
 business in this state, the inspector may release securities in his dis- 
 cretion, retaining sufficient to satisfy all outstanding liabilities. 
 
 Sec also Section 148d of the Revised Statutes of Ohio. 
 
 [388] 
 
APPENDIX. 
 
 ANNUAL REPORT OF ASSOCIATIONS. 
 
 Sec. 35. Every building and loan association doing business in 
 this state shall annually, at the end of each fiscal year, or within forty 
 days thereafter, 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 of said fiscal year. With the 
 first report made by any association it shall also file a certified copy of 
 its constitution and by-laws or other rules and regulations, showing 
 its manner of doing business. 
 
 Sec. 36. The statement shall be in such form and contain such 
 information as may be prescribed by the inspector of building asso- 
 ciations. 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 build- 
 ing associations within forty days after the close of the fiscal year, 
 and such an abstract thereof as the inspector may require shall' be 
 posted for sixty days in the office or meeting place of such associa- 
 tion, and also published in some paper regularly issued in the county 
 in which said association is located. 
 
 EXAMINATION OF ASSOCIATIONS. 
 
 Sec. 37. The inspector shall make or cause to be made by some 
 person or persons by him appointed for that purpose, examinations 
 into the affairs of every such association at least once in each year. 
 The expense of all examinations provided for herein shall be paid by 
 the State of Ohio; provided, 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 authority of such other state, district, territory, or nation, at the 
 expense of such associations, then the expenses of all such examina- 
 tions, made by the inspector of this state, of such associations of such 
 state, district, territory or nation, shall be respectively charged to 
 and collected from such associations so examined. 
 
 Sec. 38. Should the inspector, upon examination, find any domestic 
 association conducting its business in whole or in part contrary to 
 law, or failing to comply with the law, he shall so notify the board 
 of directors of such association in writing, and 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. 
 
 [389] 
 
APPENDIX. 
 
 Sec. 39. Should the inspector find, upon examination, that the 
 affairs of any such association are in an unsound condition, and that 
 the interests of the public demand the dissolution of such associa- 
 tion, and the winding up of its business, he shall so report to the 
 attorney general, who shall institute the proper proceedings for that 
 purpose. 
 
 Sec. 40. Such examiners shall have access to and may compel the 
 production of all the books, papers, securities and moneys, etc., of 
 the association, under examination. They shall have power to admin- 
 ister oaths to, and examine the officers and agents of such associa- 
 tions as to its affairs. 
 
 Sec. 41. When the inspector deems it to the interest of the public, 
 he may publish the result of such examination in some newspaper of 
 general circulation in the county in which such association is located, 
 if it be a domestic association, and in some newspaper in the city 
 of Columbus, Ohio, if it be a foreign association. 
 
 Sec. 42. Should the inspector find, upon examination, that any 
 foreign association does not conduct its business in accordance with 
 the law, or that the affairs of any such association are in an unsound 
 condition, or if such association refuses to permit examination to be 
 made, he may cancel the authority of such association to do business 
 in this state, and cause a notice thereof to be mailed to the home 
 office of the association, and to be published in at least one news- 
 paper published in the city of Columbus. After the publication of 
 such notice, it shall be unlawful for any agent of said association 
 to receive any further stock deposits from members residing in this 
 state, except payments on stock on which a loan has been taken. 
 
 FEES. 
 
 Sec. 43. Foreign building and loan associations shall pay to the 
 inspector the following fees, to wit: For filing each application for 
 admission to do business in this state, one hundred dollars. For each 
 certificate of authority and annual renewal of same, fifty dollars; 
 both foreign and domestic associations shall pay to the inspector for 
 filing each annual statement, as follows: If the assets of the associa- 
 tion, as shown by the statement filed, amount to $50,000.00 or less, 
 $3.00; if more than $50,000.00 and less than $100,000.00, $5.00; if 
 more than $100,000.00 and less than $250,000.00, $10.00 ; if more than 
 $250,000.00 and less than 500,000.00, $20.00; if more than $500,000.00 
 and less than $1,000,000.00, $30.00; if more than $1,000,000.00, $50.00. 
 For each copy of a paper filed in his office, twenty-five cents per folio. 
 
 [390] 
 
APPENDIX. 
 
 For affixing the seal of office and certifying any paper, one dollar. 
 The fees provided for herein shall be deposited by said inspector, 
 with the state treasurer upon the warrant of the state auditor. 
 
 Sec. 44. All securities of cash deposited with the inspector shall 
 be immediately deposited with the treasurer of state, who, with his 
 sureties, shall be responsible for the safekeeping thereof. The treas- 
 urer shall deliver such securities only upon the written order of the 
 inspector of building associations. 
 
 PENALTIES. 
 
 Sec. 45. It shall be unlawful for any building and loan associa- 
 tion to do business in this state without having first complied with the 
 provisions of this act, and any association violating any of the pro- 
 visions of this act, or failing to comply with any of its provisions, 
 shall- be fined not less than fifty nor more than one thousand dol- 
 lars, to be recovered by an action in the name of the state, and on 
 collection paid into the state treasury. 
 
 Sec. 46. Every president, director, trustee, member of any com- 
 mittee, secretary, treasurer, attorney or any other officer at any time 
 created, or agent of any such corporation, who embezzles, abstracts or 
 willfully misapplies any of the moneys, funds or credits of such cor- 
 poration, or who issues or puts into circulation any warrant or other 
 order, or who assigns, transfers, cancels or delivers up any note, bond, 
 draft, mortgage, judgment, decree, or any other written instrument 
 belonging to such corporation, or raises money otherwise, or receives 
 money from any member or other person for and in the name of 
 such corporation, unless duly authorized by the board of directors 
 of such corporation; or who shall sign the name of any person to 
 an order or warrant for the payment of money without proper 
 power of attorney or written order from such person to whose order 
 such warrant or order is made payable ; or any member or members 
 of the board of directors who shall vote to declare, or any financial 
 or first secretary of such corporation who shall declare or advise 
 the board of directors of such corporation to declare a greater 
 dividend than what has been actually earned by the corporation, for 
 the purpose of deceiving the people or defrauding the members of 
 such corporation ; or who certifies to or makes any false entry on any 
 book, report or statement of or to such corporation, with intent in 
 cither case to deceive, injure or defraud the corporation or any 
 other company, body politic or corporate, or any individual person, 
 or to deceive anyone appointed to examine the affairs of such cor- 
 
 [m] 
 
APPENDIX. 
 
 poration; and every person who with like intent aids or abets any 
 president, secretary, treasurer, committee or other officer or person in 
 any violation of this section shall be deemed guilty of a felony, and 
 shall be imprisoned not less than one year nor more than ten years, 
 and shall be liable civilly to the party injured, to the extent of such 
 damage thereby incurred, and suit may be brought against such 
 person and the sureties on his bond given to such corporation for the 
 faithful performance of his duty. Any officer whose duty it is, fail- 
 ing to make the reports required by this act, and any officer, employe, 
 or other person, who solicits business for, aids or assists any build- 
 ing and loan association to do business contrary to the provisions of 
 this act, or without having complied with its provisions, shall be 
 guilty of a misdemeanor, and on conviction thereof shall be fined 
 not more than five hundred dollars, or imprisoned not more than six 
 months, or both. Such fines, when collected, to be paid into the 
 state treasury. 
 
 Sec. 47. The inspector shall keep and preserve in permanent form 
 a full record of his proceedings, including a concise statement of 
 each association examined, and he shall, annually, make a report to 
 the General Assembly of the general conduct and condition of the 
 building and loan associations doing business in this state, with such 
 suggestions as he may deem expedient. Such report shall also include 
 the information contained in the statements required of the associa- 
 tions, and arranged in tabulated form. He shall also report the names 
 and compensation of the clerks employed by him, the whole amount 
 of the income, the source whence derived, and the expense in detail, 
 during the year ending on the thirty-first day of December. 
 
 Sec. 48. Building and loan associations and savings associations 
 shall be authorized to provide in their constitutions and by-laws for 
 the time and terms of the dissolution of such corporations ; also for 
 the consolidation for two or more of such corporations into one, upon 
 such terms and conditions as may be determined upon by their boards 
 of directors ; also, in the case of the dissolution of any such corpora- 
 tion, its board of directors may, by a majority vote, be authorized to 
 sell and transfer its mortgage securities or other property, or both, 
 to another corporation^ person, or persons subject always to the con- 
 tract rights of the mortgagors. 
 
 Sec. 49. The following acts and parts of acts are hereby repealed, 
 to wit, sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 
 17, 18, 19, 20, 21, 22, 23, 24, 25, and 26, of an act entitled, "An act to 
 
 [302] 
 
APPENDIX. 
 
 provide for the organization, regulation and inspection of building 
 and loan associations," passed May 1, 1891, (Vol. 88, page 469.) 
 
 Also section 1 of an act entitled, "An act to provide for the dis- 
 solution and consolidation of building and loan associations" as 
 passed April 27, 1893. (Vol. 90, page 315.) 
 
 Also sections 3836-18 and 3836-22 of an act passed May 12, 1902, 
 (Vol. 95, pages 614-615), entitled, "An act to amend sections 3836-18 
 and 3836-22 of the Revised Statutes of Ohio." 
 
 Also section 3a of an act, passed March 18, 1904, (Vol. 97, page 
 43), as to investment of funds, entitled, "An act to supplement sec- 
 tion 3 of an act entitled 'An act to provide for the organization, 
 regulation and in«pection of Building and Loan Associations' " passed 
 May 1, 1891. 
 
 Also section 3 of an act, passed March 31, 1906 (Vol. 98, page 
 173), relating to minors, entitled "An act to amend section 3 of an 
 act to provide for the organization, regulation and inspection of 
 Building and Loan Associations," passed May 1, 1891, and all acts 
 or parts of acts inconsistent herewith are repealed. 
 
 Freeman T. Eagleson, 
 Speaker of the House of Representatives. 
 James M. Williams, 
 
 President of the Senate. 
 Passed May 1, 1908. 
 Approved May 11, 1908. 
 
 Andrew L. Harris, Governor. 
 
 Sec. 5687. (Directors may appoint trustees to settle affairs of 
 corporations.) The board of directors or other officers having the 
 control and management of any corporation in this state, may appoint 
 three trustees to adjust and settle the affairs of such corporation, and 
 the trustees so appointed shall be authorized to use the corporate 
 name of the corporation, for such period as may be necessary for the 
 adjustment and settlement of its affairs, by suit or otherwise. (50 v. 
 272, §2; S. &C. 367. 
 
 Sec. 5688. (Removal and duties of trustees.) The trustees so 
 appointed shall report annually to the stockholders of the corporation 
 a full and succinct statement of its affairs; and 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. 
 (50 V. 272, §§3, 4; S. & C. 367.) 
 
 [393] 
 
APPENDIX. 
 
 DIVIDENDS. 
 
 (3269-1) Sec. 1. (Corporate dividends to he paid from surplus 
 profits only.) Be it enacted by the General Assembly of the State of 
 Ohio, That it shall not be lawful for the directors of any corporation 
 organized under the laws of this state to make dividends except from 
 the surplus profits arising from the business of the corporation. 
 (1888, April 11; 85 v. 182.) 
 
 (3269-2) Sec. 2. (Unpaid interest due corporation not to he 
 included in profits.) In the calculation of the profits of any corpora- 
 tion previous to a dividend, interest then unpaid, although due, on 
 debts owing to the company, shall not be included. (1888, April 11; 
 85 V. 182.) 
 
 (3629-3) Sec. 3. Surplus profits: how ascertained ; prohihiting 
 advertisement of capital not subscrihed and paid in.) In order to 
 ascertain the surplus profits, from which alone a dividend can be 
 made, there shall be charged in the account of profit and loss, and 
 deducted from the actual profits 
 
 1., All the expenses paid or incurred, both ordinary and extra- 
 ordinary, attending the management of the affairs and the transaction 
 of the business of the corporation. 
 
 2. Interest paid, or then due or accrued on debts owing by the 
 corporation. 
 
 3. All losses sustained by the corporation, and in the computation 
 of such losses, all debts owing to the corporation shall be included 
 which shall have remained due without prosecution, and no interest 
 having been paid thereon for more than one year, or on which judg- 
 ment shall have been recovered, and shall have remained for more 
 than two years unsatisfied, and on which no interest shall have been 
 paid during that period; and no such corporation shall advertise a 
 larger amount of capital stock than has actually been subscribed and 
 paid in; also, shall not advertise a greater dividend than what has 
 been actually earned and credited or paid to its stockholders or mem- 
 bers. (1889, April 10; 86 v. 228; 85 v. 182, 183.) 
 
 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. Vogeler, 
 5 Low. D. 581; 7 N. P. 606. 
 
 (3269-4) Sec. 4. (Penalty for violation of section 3.) Every 
 director who shall violate, or be concerned in violating, any provision 
 of the preceding sections of this act contained, shall be liable person- 
 ally to the creditors and stockholders respectively of the corporation 
 of which he shall be a director, to the full extent of any loss they 
 
 [394] 
 
APPENDIX. 
 
 may respectively sustain from such violation. (1888, April 11; 85 
 V. 182, 183.) 
 
 § (3269-5) was changed by the legislature to § liSd. 
 
 Sec. 3229. (Corporation thereby created, and its general powers.) 
 Upon such filin-g of the articles of incorporation, the persons who sub- 
 scribed the same, their associates, successors, and assigns, by the name 
 and style provided therein, shall thereafter be deemed a body cor- 
 porate, with succession, and power to sue and be sued, contract and 
 be contracted with, acquire and convey at pleasure all such real or 
 personal estate as may be necessary and convenient to carry into effect 
 the objects of the incorporation, to make and use a common seal, the 
 same to alter at pleasure, and to do all needful acts to carry into 
 effect the object for which it was created. (50 v. 274, §3 ; S. & C. 273.) 
 
 A contract made with a company before it is incorporated, is void for the 
 want of mutuality: Turnpike Co. r. Coy, 13 O. S. 84. 
 
 A deed was executed by S. in his name, as president, and under his own 
 seal. Held not to be the deed of corporation: Hatch v. Barr, 1 O. 390. 
 
 Where contract has been performed by either, the other will be estopped to 
 insist that contract was ultra vires: Hays v. Galion G. L. & C. Co., 29 O. S. 330. 
 
 See case of Ehrman v. Insurance Co., 35 O, S. 324, under § 3235. 
 
 An executory agreement between a manufacturing corporation of this state 
 and one of its stockholders, for the purchase of the stock of such corporation 
 by the former from the latter, cannot be enforced, either by action for specific 
 performance or for damages: Coppin v. Greenlees & Ransom Co., 88 O. S. 275. 
 
 Filing the articles do not make a corporation, but are simply authority to do 
 so. There is no corporation until the requisite stock is taken and paid and the 
 directors chosen: State v. Ins. Co., 49 O. S. 440. 
 
 A corporation comes into existence as soon as articles of incorporation are 
 filed: State ex rel. r. Robinson (Ham. Dist. Court), 12 W. L. B. 269. 
 
 A chattel mortgage executed by the president and secretary of a corporation 
 who are members of the board of directors, executed to secure a corporation 
 debt, without the knowledge of the directors is valid as to the mortgagee who 
 had no knowledge of that fact: Bosche v. Toledo Horse Display Co., 14 C. C. 
 292; 7 O. D. 374. 
 
 A corporation may give a chattel mortgage to secure an antecedent loan created 
 for carrying on its business, and it is not void against creditors, there being no 
 intention at the time to cease business; although afterwards threatened with 
 attachment, it asks for a receiver: Bosche v. Toledo Horse Display Co., 14 
 C. C. 292; 7 O. D. 374. 
 
 A corporation cannot give a secret inchoate preference, allowing other 
 creditors to give it credit, and by a signal previously given, allow this inchoate 
 secret preference to be made absolute to the exclusion of the other creditors: 
 Benedict et al. v. Market National Bank et al., 4 X. P. 231; 6 O. D. 320. 
 
 Sec. 3262. (Increase of capital stock.) A corporation for profit, 
 after its original capital stock is fully subscribed for, and an install- 
 ment of ten per cent on each share of stock has been paid thereon, or 
 a corporation not for profit, having a capital stock, may increase its 
 capital stock or the number of shares into which its capital stock is 
 divided, by the unanimous written consent of all original subscribers, 
 if done prior to organization, and after organization then by a vote of 
 the holders of a majority of its stock, at a meeting called by a 
 
 [395] 
 
APPENDIX. 
 
 majority of its directors, at least thirty days' notice of the time, place 
 and object of which has been' given by publication in some newspaper 
 of general circulation, and by letter addressed to each stockholder 
 whose place of residence is known ; or such increase may be made at 
 any meeting of the stockholders at which all the holders of such 
 stock are present in person, or by proxy, and waive in writing such 
 notice by publication and by letter ; and also agree in writing to such 
 increase, naming the amount of increase to which they agree; and a 
 certificate of such action of the corporation shall be filed with the 
 secretary of state. (90 v. 141; 83 v. 134; 80 v. 23; Rev. Stat. 1880; 
 69 V. 24; 70 v. 37, § 1.) 
 
 Where stock issue has been irregular, but s-tockholder has acquiesced, he is 
 bound on stock liability: Clarke v. Thomas, 34 O. S. 46. 
 
 Stock must be fully paid up before right to increase capital stock accrues: 
 Peter v. The Union Manfg. Co., et al., 56 O. S. 200. 
 
 Sec. 3258 The stockholders of a corporation who are the holders 
 of its shares at a time when its debts and liabilities are enforcible 
 against them, shall be deemed and held liable, equally and ratably, 
 and not one for another, in addition to their stock, in an amount 
 equal to the stock by them so held, to the creditors of the corporation, 
 to secure the payment of such debts and liabilities; and no stock- 
 holder who shall transfer his stock in good faith, and 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 the books 
 of the company prior to the time when such debts and liabilities are 
 so enforcible, shall be held to pay any portion thereof. Provided, 
 however, that the above provisions of this section shall not apply to 
 stockholders in any corporation created after the twenty-third of 
 November, 1903, nor shall it apply to any debts or liabilities of any 
 corporation incurred after said date; and as to all debts and liabilities 
 of corporation for profit incurred after said date, the stockholders 
 of said corporations shall be under no liabilities other than those 
 stated in article XIII, section three, of the constitution of Ohio. 
 
 Sec. 3258a. An action upon the liability of stockholders under 
 the last preceding section, can only be brought within eighteen months 
 after the debt or obligation shall become enforcible against stock- 
 holders. 
 
 [396] 
 
APPENDIX. 
 
 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 00 
 For filing a certificate of increase of capital stock of any such association. . 5 00 
 
 For filing a certificate of reduction of capital stock of any corporation 5 00 
 
 For filine a copy of the decree of court changing the name of any cor- 
 poration 5 00 
 
 For filing a certified copy of the acceptance by any corporation incorpo- 
 rated prior to the adoption of the present constitution of any of the 
 
 provisions of the Revised Statutes 5 00 
 
 For filing an amendment to articles of incorporation of any corporation... 5 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 5 00 
 
 For filing the certificate of subscription required to be filed by Section 
 
 3244 of the Revised Statutes 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 nor record any of the articles of incorporation, certificates or 
 other papers hereinbefore referred to unless the fees for filing same 
 are first duly paid. 
 
 [39' 
 
APPENDIX. 
 
 Rights Granted and Liabilities Imposed 
 by the New Ohio Law. 
 
 Subject to the provisions of the Constitution and By-Laws 
 
 (C. J. McKEE) 
 
 Sec. 7. To issue stock to members on such terms and conditions 
 as the constitution and by-laws may provide. To permit subscribers 
 for stock to vote the amount of stock subscribed for, not to exceed 
 20 shares. 
 
 Sec. 8. To assess and collect from members and others, dues, 
 interest and premium on loans made or other assessments. 
 
 Sec. 9. To permit members to withdraw all or part of their stock 
 deposits at such time and upon such terms as the constitution and 
 by-laws may provide. To permit withdrawal of deposits upon such 
 terms and conditions as the Association may provide, except by check 
 or draft. 
 
 Sec. 14. To loan money on such terms and conditions as are 
 provided by the Association. 
 
 Sec. 15. To require borrowers to pay all fines or other assess- 
 ments required by the constitution and by-laws. 
 
 Sec. 17. To make annual or semi-annual distribution of earnings 
 as is hereinafter provided, and as the constitution and by-laws may 
 provide. 
 
 Sec. 19. To dissolve the corporation. 
 
 Sec. 20. To amend articles of incorporation. To increase the 
 number of directors. To decrease the number of directors. To 
 provide officers additional to President, one or more Vice-Presidents, 
 and one or more Secretaries. 
 
 Sec. 21. To provide for the proper exercise of powers granted in 
 the act and the conduct and management of the afifairs of the 
 Association. 
 
 Sec. 23. To provide the manner in which, and the purpose for 
 which, funds may be withdrawn from bank. 
 
 Sec. 25. To provide for the proportion and time of payment of 
 dividends to members. 
 
 [308] 
 
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 stockholder 
 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. 
 
 [39»] 
 
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 for 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 appointed 
 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 Assciation 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 see Sec. 3, Art. VII. 
 
 [400] 
 
APPENDIX. 
 
 Sec. 2. The Directors shall choose annually a President, one or 
 more Vice-Preside rts. fr^m 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 employe 
 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 ^11 
 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 depositaries; 
 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 inconsistent 
 with this Constitution. 
 
 ARTICLE VIIL 
 
 AMENDMENTS TO CONSTITUTION. 
 
 Section 1. This Constitution may be amended at any annual meet- 
 ing 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. 
 If, however, the shareholders desire to consolidate or dissolve it, a 
 
 [401] 
 
APPENDIX. 
 
 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 shareholders 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' meetings. 
 He shall be the general receiving, disbursing and managing officer ot 
 the Association, and under the Board of Directors and its commit- 
 tees, and with the assistance of such employes and other officers 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 offered 
 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 
 his report in writing of the condition of title to premises described 
 in each mortgage. He shall represent the Association in all legal 
 
 [402] 
 
APPENDIX. 
 
 proceedings in which it is interested and shall have power to enter its 
 appearance therein; he shall give his advice and counsel whenever 
 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 Pres- 
 ident 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 AUTHORIZED TO SIGN FOR THE ASSOCIATION. 
 
 Sec 13. All certificates of stock and all releases of mortgages 
 shall be signed by the President and Secretary, and all certificates of 
 deposit, all orders, checks, drafts and other instruments for the 
 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. 
 
 [403] 
 
APPENDIX. 
 
 DEPOSITARIES 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 depositary or depositaries, 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 depositaries 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 payments 
 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 credits on his pass-book, and a certfficate 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 therefor may be executed by the Pres- 
 ident 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 loam 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 
 reduction of the general payments as the Association will permit. 
 All advance payments thus applied shall be deducted from the agreed 
 payment credits. 
 
 • 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 recon- 
 ciled ■with fterfinn ?IS. 
 
 [404] 
 
APPENDIX. 
 
 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 th^ 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 , 191.. 
 
 [405] 
 
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 together 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 receive 
 the amount of all credits at the time of the application to withdraw, 
 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 : 
 
 [406] 
 
APPENDIX. 
 
 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 
 Undivided 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 
 require. Such applications shall pass at once to the Appraising Com- 
 mittee, who shall report on the security offered as soon as possible 
 
 [407] 
 
APPENDIX. 
 
 and when the Board has si^ified 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 pay- 
 ment shall be not less than one dollar per month on each $100.00 bor- 
 rowed, 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 
 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. 
 
 [408] 
 
APPENDIX. 
 
 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 an-d 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 forfeited 
 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-Books. 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-thirds 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. 
 
 [409] 
 
APPENDIX. 
 
 RULES. 
 
 In order that the members may at all times be informed as to 
 the proper rotation or order of business, and, particularly for the 
 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 as pleasant and sociable a character 
 as possible so as to be enjoyable to members and visitors. Partic- 
 ular pains should be taken by the directors to make the meetings 
 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 sec- 
 retaries and the finance committee shall count the receipts and check 
 
 • In some associations the rule is that an assistant secretary, or a member 
 of the finance committee, shall make the entries in the Dues 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 the 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. 
 
 [410] 
 
APPENDIX. 
 
 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, 
 
 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 waitingf 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. 
 
 [411] 
 
INDEX OF SUBJECTS. 
 
 ADVANTAGES. 
 
 Of a Building Association Loan 151 
 
 ADVERTISING 367 
 
 Bill Posting : 369 
 
 How Should You Advertise 360 
 
 Illustrations 367 
 
 Papers 365 
 
 Preparation of Advertisements 361 
 
 Printer's Point System 364 
 
 Street Car 372 
 
 Technical Data 364 
 
 Why Should You Advertise? 359 
 
 APPRAISEMENT. 
 
 Of Real Estate 107 
 
 Expert Appraisers 109 
 
 ASSESSMENTS 160 
 
 ASSETS 155 and 206 
 
 ASSISTANT SECRETARIES 121 
 
 ATTORNEY. 
 
 Appointment of, Duties and Compensation 125 
 
 Report of 334 
 
 AUDITING 187 
 
 Auditor's Certificate 208 
 
 Auditor's Report on Special Matters 207 
 
 Change of Auditors 185 
 
 Compensation of Auditors 186 
 
 Necessity and Object 166 
 
 Purposes of 170 
 
 Qualifications for 179 
 
 Selecting an Auditing Committee 179 
 
 The Auditor the Representative of the Members 178 
 
 [413] 
 
INDEX. 
 B 
 
 BALANCE. 
 
 Balance Sheet 177 
 
 Cash Balance. See Cash. 
 
 Secretary's Balance Sheets 215 
 
 BLANKS. 
 
 And Books 336 
 
 Deposit Envelopes and Slips 341 
 
 See Legal. 
 
 BONDS. 
 
 Officers' 130 and 326 
 
 Surety 131 
 
 BOOKS. 
 
 And Blanks 336 
 
 Book Account 338 
 
 Building Association Supplies 344 
 
 Care of 188 
 
 General Suggestions 336 
 
 Monthly Secretary's Book 200 
 
 Necessary Books and Forms 344 
 
 Pass Books .339 
 
 Secretary's Cash Book 202 
 
 Secretary's Contribution Book 196 
 
 Treasurer's Cash Book 202 
 
 BORROWING. 
 
 Members 83 
 
 Money 147 
 
 Rights of Borrowers 99 
 
 See Duties. 
 
 BUILDING, LOAN AND SAVINGS ASSOCIATIONS. 
 
 Always a Savings Society 5 
 
 Articles of Incorporation 323 
 
 Laws of Ohio 373—411 
 
 Legal Forms 322 
 
 Name and Title 4 
 
 Object of the Associations 4 
 
 Permanent Plan Associations 51 
 
 Periodicals Devoted to the Interests 10 
 
 Safety of these Associations 84 
 
 Serial Associations 48 and 82 
 
 Statistical Information 7 
 
 Why Persons Become Members 5 
 
 BY-LAWS. 
 
 See Ohio Laws, Appendix. 
 
 See Organisation 66 
 
 [414] 
 
INDEX. 
 C 
 
 CALENDARS. 
 
 Perpetual Weekly 246 
 
 CAPITAL STOCK. 
 
 See Organization 64 
 
 CASH. 
 
 Balance, Proving It 196 
 
 Book, Secretary's and Treasurer's 202 
 
 Book, Treasurer's 202 
 
 COLLATERAL NOTE. 
 
 On Pass-Books 333 
 
 See Mortgage. 
 
 COMMITTEES. 
 
 Auditing 179 
 
 CONSTITUTION. 
 
 See Ohio Laws, Appendix. 
 
 See Organization 65 
 
 Statutory and Constitutional Requirements 175 
 
 CONTINGENT FUND. 
 
 See Reserve Fund 153 
 
 CONTRACTS. 
 
 And Agents 141 
 
 CO-OPERATION. 
 
 Co-operative Efforts in the United States 3 
 
 Definition \ 
 
 Origin 1 
 
 CORPORATE. 
 
 Government 110 — 113 
 
 Interests 172 
 
 Officers — Election and General Powers 115 
 
 Rights of Membership 94 
 
 Seal 139 
 
 D 
 
 DEPOSIT. 
 
 Envelopes and Slips 341 
 
 Stock Certificates of 79 
 
 [415] 
 
INDEX. 
 
 DEXTER'S RULE 309 
 
 DIRECTORS. 
 
 Duties of 123 
 
 Salary. See Remuneration. 
 
 DISTRIBUTION OF EARNINGS. 
 See Tables. 
 
 Serial Plan 302 
 
 Permanent Plan 252 
 
 DIVIDENDS 96 
 
 Calculation of, Permanent Plan 252 
 
 Payment 160 
 
 2H% Semi-Annually 244 
 
 DIVISION OF PROFITS. 
 
 Serial Plan 303 
 
 Under Dexter's Rule and Partnership Plan 303 
 
 DUES 74 
 
 See Stock Payments. 
 
 DUTIES. 
 
 Of Attorney 125 
 
 Of Borrowers 101 
 
 Of Directors 123 
 
 Of Members 91 
 
 Of Officers 117 
 
 Of President and Vice-Presidcr.t 119 
 
 Of Secretary 120 
 
 Of Treasurer 121 
 
 Of Trustees 124 
 
 £ 
 
 EARNINGS. 
 
 Distribution of— See Serial Plan 302 
 
 See Tables. 
 
 ELECTION. 
 
 And Duties of Officers 117 
 
 See Corporate 115 
 
 EXAMINATIONS. 
 
 State 166 
 
 [416] 
 
INDEX. 
 
 EXEMPTION FROM TAXATION 39 and 40 
 
 FINES AND FORFEITURES 92 
 
 FORMS. 
 
 Mechanics' Lien 333 
 
 Of Associations 47 
 
 See Blanks. 
 See Books. 
 See Legal. 
 
 G 
 
 GENERAL. 
 
 Ledger 205 
 
 Manager 122 
 
 H 
 
 HISTORY. 
 
 Early History in the United States 16 
 
 Future of the Movement 23 
 
 Historical Review 13 
 
 Movement in France 16 
 
 Societies in England 13 
 
 I 
 
 INCORPORATION. 
 
 See Building, Loan and Savings Associations. 
 See Organisation. 
 
 INSURANCE. 
 
 Health, Accident and Disability 8tt 
 
 Life 87 
 
 Mortgage Clause for Policies 330 
 
 Policies as Collateral Security 167 
 
 Tornado 87 
 
 INTEREST. 
 
 Calculation — Permanent Plan 262 
 
 Compound. See Tables. 
 
 Rebate. See Tables. 
 
 Simple Tables .319 
 
 INVESTORS. 
 
 Rights as 96 
 
 (417] 
 
INDEX. 
 
 J 
 
 JUVENILE SAVINGS 348—356 
 
 L 
 
 LAW. 
 
 See Legislation. 
 
 Laws of Ohio Relating to Building and Loan Associa- 
 tions. See Appendix 373—411 
 
 LEAGUES. 
 
 County, City and Local 27 
 
 International 27 
 
 Membership 29 
 
 Organization of State Leagues 26 
 
 Purposes of 25 
 
 Resume 31 
 
 United States League 25 
 
 What a League Can Do 28 
 
 LEASEHOLDS 159 
 
 LEDGER. 
 
 General 205 
 
 Members' 204 
 
 LEGAL FORMS. 
 
 Articles of Incorporation 323 
 
 Attorney's Report 334 
 
 Bond of Officers 326 
 
 Certificate of Paid-Up Stock 335 
 
 Collateral Note for Loan on Pass Book 333 
 
 For Associations 322 
 
 Mechanics' Lien 333 
 
 Mortgage 327 
 
 Mortgage Clause for Insurance Policies 330 
 
 Mortgage Collateral Note on Shares of Stock 332 
 
 Proxy on Stock 325 
 
 Subscription List 325 
 
 LEGISLATION. 
 
 Defects in the English Law 35 
 
 Exemption from Taxation 39 and 40 
 
 In England 33 
 
 Its Necessity 32 
 
 Laws in the United States 36 
 
 Laws of Ohio. See Appendix. 
 
 Litigation 38 
 
 Provisions of the English Law 35 
 
 Statesmen Who Have Been of Direct Benefit to the 
 
 Movement 41 
 
 Taxation 32, 42, 46 
 
 [418] 
 
INDEX, 
 
 LIABILITIES 2M 
 
 See Pozvers 13S 
 
 LOANS. 
 
 Loans and Securities 102 
 
 Mortgage 104' 
 
 Nature of 103 
 
 Other Securities 105 
 
 See Advantages. 
 
 Straight Mortgage 109 
 
 M 
 
 MANAGEMENT. 
 
 General Manager 122 
 
 Of Corporate Meetings 113 
 
 MECHANICS' LIEN. 
 
 Form for 333 
 
 MEETINGS. 
 
 Corporate 110—113 
 
 See Organization 70 
 
 MEMBERS. 
 
 Borrowing 83 
 
 Corporate Rights of 94 
 
 Duties of 91 
 
 League Membership 29 
 
 Members' Ledger 204 
 
 Membership 90 
 
 Protection of 173 
 
 Riehts of 94 
 
 METHODS. 
 
 Economical, Labor-Saving and Simple 176 
 
 MISTAKES 191 
 
 MORTGAGE. 
 
 Clause for Insurance Policies 330 
 
 Collateral Note on Shares of Stock 332 
 
 Custody — Recording 156 
 
 Legal Forms 327 
 
 Mortgages 104 
 
 Straight Mortgage Loans 109 
 
 [419] 
 
INDEX. 
 N 
 
 NAME. 
 
 Choice of 63 
 
 NOTE. 
 
 Collateral Note for Loan on Pass-Book 333 
 
 o 
 
 OFFICERS. 
 
 Bonds of 130 and 326 
 
 Corporate 115 
 
 Duties 117 
 
 Election 117 
 
 Remuneration 133 
 
 Required 117 
 
 Responsibility of 132 
 
 See Organisation 68 
 
 OHIO. 
 
 Laws Relating to Building and Loan Associations 373—411 
 
 ORGANIZATION. 
 
 By-Laws 66 
 
 Capital Stock 64 
 
 Choice of Name 63 
 
 How to Organize 61 
 
 Incorporation 67 
 
 Meetings 70 
 
 Of Officers 68 
 
 Of State Leagues 26 
 
 Preliminary Steps 62 
 
 The Constitution 65 
 
 P 
 
 PARTNERSHIP RULE. 
 
 Application of 309—317 
 
 PASS BOOKS. 
 
 Collateral Note on Pass Book 353 
 
 See Books 339 
 
 PERIODICALS. 
 
 Devoted to the Interests 10 
 
 [420] 
 
INDEX. 
 
 PERMANENT PLAN. 
 
 Application of Profits 253 
 
 Associations 51 
 
 Calculation of Dividends and Interest 252 
 
 Calendars 246 
 
 Reports 220 
 
 System 1 253 
 
 System II 277 
 
 PERPETUAL PLAN. 
 
 See Permanent Plan. 
 
 Succession 139 
 
 POWERS. 
 
 And Liabilities 139 
 
 Dissolution 144 
 
 Earning — See Tables. 
 
 General 139 
 
 See Corporate 115 
 
 Special 144 
 
 Suits 148 
 
 PREMIUMS. 
 
 See Loans 102 
 
 PRESIDENT. 
 
 See Duties 119 
 
 PROCEEDS. 
 
 Disposition of 10€ 
 
 PROFITS. 
 
 Application of 263 
 
 Division of 309 
 
 See Serial Plan 303 
 
 Undivided 154 
 
 PROXY. 
 
 On Stock — See Legal Forms 326 
 
 Q 
 
 QUESTIONS. 
 
 Assets 15S 
 
 Borrowing Money 147 
 
 Practical 147 
 
 [421] 
 
INDEX. 
 R 
 
 REAL ESTATE. 
 
 Appraisement 107 
 
 REMUNERATION. 
 
 Of Attorney 125 
 
 Of Auditors 186 
 
 Of Directors 134 
 
 Of Officers 133 
 
 Of Secretary 138 
 
 REPORTS. 
 
 Attorney's 334 
 
 Auditor's 207 
 
 Legal Requirements .- 213 
 
 Necessity of 212 
 
 Permanent Plan 220 
 
 Preparation 214 
 
 Publication 214 
 
 Serial Plan 216 
 
 Specimens 216 
 
 REQUIREMENTS. 
 
 Statutory and Constitutional Requirements 175 
 
 RESERVE FUND. 
 
 See Contingent Fund 153 
 
 RIGHTS. 
 
 Borrowers' 99 
 
 Corporate Rights of Members 94 
 
 Investors' 96 
 
 Members' 94 
 
 Of Withdrawal 97 
 
 RULES 143 
 
 Partnership Rule 317 
 
 Rules and Tables Exemplifying the Division of Profits 
 
 Under Dexter's Rule and the Partnership Rule 309 
 
 s 
 
 SAFETY. 
 
 Of Building and Loan Associations 84 
 
 SALARIES. See Remuneration. 
 
 [422] 
 
INDEX. 
 
 SEIAL. See Corporate. 
 
 SECRETARY. 
 
 Assistants 121 
 
 Cash Book 203 
 
 Contribution Book 196 
 
 Monthly Secretary's Book 200 
 
 Salary 138 
 
 See Duties 120 
 
 SECURITIES 105—106 
 
 SERIAL PLAX. 
 
 Associations 48 and 82 
 
 Division of Profits 303 
 
 Distribution of Earnings 302 
 
 Reports 216 
 
 STATE. 
 
 Examinations 166 
 
 Leagues — Organization 26 
 
 Supervision •. 210 
 
 STOCK. 
 
 As Property 73 
 
 Assignment of 105 
 
 Capital 64 
 
 Certificates of Deposit 79 
 
 Definition 81 
 
 Difference Defined 81 
 
 Increase 73 
 
 Paid-up Stock 75 
 
 Paid-up Stock Certificate, Legal Forms 335 
 
 Payments or Dues 74 
 
 Proxy — Legal Forms 325 
 
 Shares Transferable 74 
 
 Stock and Stockholders 72 
 
 SUBSCRIPTION. 
 
 List— Stock 325 
 
 SUITS. 
 
 See Powers 14S 
 
 SUPPLIES. 
 
 Building Association 844 
 
 SYSTEMS. 
 
 See Permanent Plan. 
 See Serial Plan. 
 
 [423] 
 
INDEX. 
 T 
 
 TABLES. 
 
 3 percent 255 and 266 
 
 3 per cent 256 and 267 
 
 4 per cent 257 and 268 
 
 5 percent 258, 269 and 289 
 
 554 per cent. 290 
 
 5^ per cent 291 
 
 5M per cent 292 
 
 6 per cent 259, 270 and 293 
 
 6% per cent 294 
 
 6^ per cent 295 
 
 6}i per cent 296 
 
 7 per cent 260, 271 and 297 
 
 7J4 per cent 298 
 
 IVz per cent.. 299 
 
 7^ per cent 300 
 
 8 per cent 261, 272 and 301 
 
 9 per cent 262 and 273 
 
 10 per cent 263 and 274 
 
 11 per cent 264 and 275 
 
 12 per cent 265 and 276 
 
 4 per cent 285 
 
 4J4 per cent 286 
 
 4H per cent 287 
 
 4K per cent 288 
 
 Of Earning Powers 306—308 
 
 Rebate and Compound Interest 221 
 
 Summarized Time Table — 1 to 26 weeks ., 279 
 
 Time 280—284 
 
 TAXATION. 
 
 Exemption from 39 — 40 
 
 See Legislation. 
 
 Taxes and Assessments 160 
 
 Terminating Plan 47 
 
 TREASURER. 
 
 Duties of 121 
 
 Cash Book 202 
 
 TRUSTEES. 
 
 Duties of 124 
 
 u 
 
 UNDIVIDED PROFITS 154 
 
 UNITED STATES LEAGUE 25 
 
 [424] 
 
INDEX. 
 V 
 
 VICE-PRESIDENT. 
 
 Duties 11» 
 
 w 
 
 WITHDRAWALS 204 
 
 Rights 97 
 
 [425] 
 
Building and Loan Association 
 Supplies a Specialty. 
 
 Having been in this line of busii ess over 
 twenty years, we are in a position to furnish 
 you with anything you may desire. 
 
 |L ASSOCIATIONS WOULD DO WELL 
 ^ TO CONSULT US BEFORE BUYING 
 
 We make a study of designing and improving 
 books for the convenience of the Associa- 
 tion. They are both practical and 
 labor-saving. Prices on request 
 and inquiries cheerfully 
 answered. 
 
 }V£ HAVE UNEXCELLED FACILITIES TO DO 
 
 ALL KINDS OF 
 
 PRINTING OF CONSTITUTIONS, 
 
 Br-LAWS, REPORTS, ETC 
 
 Hie American Building Associain News Co. 
 
 15-27 W. 6th Street. Cincinnati. O. 
 
NEW PUBLICATIONS 
 
 Robinsonian Installment Loans 
 
 Scries i. 
 
 FOR FINDING AS FOLLOWS: 
 
 Ist. When any loan will be paid up by monthly payments. 
 2nd. The unpaid balance on such loans at any time; 
 3rd. Amount of interest that has been earned. 
 
 Price, $2.00. 
 
 ACCOMPANIED BY 
 
 Tables showing what $100 or $90 amounts to in any number of months 
 from 1 to 200. 
 
 Also what $1 paid at the end of each month amounts to for the same 
 periods. All at monthly compound. 
 
 COMPUTED, PUBLISHED AND FOR SALE BY 
 
 U. WATTTS ROBIINSOIV, U. S. IN. A. 
 
 Author and Publisher of the Robinsonian Series of Reference Books for all 
 Banks, Trust and Insurance Companies, Railroads, and, fact, for 
 everyone who has to do with figures. 
 
 Copyright, 1908, by J. Watts Robinson. 
 
 ROBINSONIAN 
 Definite Contract Loan Tables. 
 
 Pf Ice, $2.00. 
 
 Showing both the monthly and semi-annual payments required to pay 
 up a loan in any number of years, up to 25— and at any pos- 
 sible rate of interest. 
 
 It also shows the balances remaining unpaid after any number of regular 
 payments have been made. Bound in cloth. 
 
 SEND ORDERS TO THE 
 
 American Building Association News, 
 
 15 W. Sixth Street, Cincinnati, O. 
 
Attention is called to the enumeration below of the 
 contents of the 
 
 ROBINSONIAN 
 Building-Loan Interest Tables 
 
 Price, $5.00. 
 
 which are now recognized throughout the United States and Canada as the 
 authoritative reference tables for all building-loan calculations, as well as for 
 many other classes of money. 
 
 1st. — Useful Rules and Information. 
 
 Q. — Division Key-Table. — For finding the rate earned by a loan, etc. 
 No, 1. — Amount of $1. — For finding what any sum of money amounts to at any 
 
 rate of interest, compounded monthly, up to 150 months. 
 No. 2. — Amount of $1 per Month, etc. — For finding what any sum paid each 
 
 month, etc., amounts to, up to 150 months, with interest compounded 
 
 monthly. 
 No. 3. — Present Worth of $1. — For finding the present worth of any sum due 
 
 at any future time. 
 No. 4. — Present Worth of $1 each Month, etc. — For finding the present worth 
 
 of any sum due each month, etc. 
 No, 5 and 8. — Sinking Fund Tables. 
 No. 6. — Amount of $1 Paid each Week, with interest compounded Semi-annually 
 
 — and Maturity Key-Table. 
 No. 7. — Perfect Maturity Tables. — Maturity of Installment Stock, with pay- 
 ments from 20 cents to $10.00 and rates from 4% to 30%, including 
 
 10.2% and 13.2%. 
 No. 7a. — Supplement to No. 7, for payment at end of month. 
 No. 8a. — Maturity of Prepaid Stock. — Prepayments from $25.00 to $80.00, 
 
 and rates 'same as next above. 
 No. 9. — Equivalent Mqnthly and Prepaid Payment, that will mature in same 
 
 time. 
 No. 12. — Equal Monthly Payments, made at the end of each month, that will 
 
 pay up a $100 loan at 6, 8, 10 or 12% per annum. 
 No. 12. — Same, when interest on the loan is payable monthly in advance, and 
 
 Payments are at the first of each month. 
 AME, when interest on the loan is payable monthly in advance, with 
 
 payments at end of the month. 
 No. 15. — Equal Monthly Payments, made at the beginning of the month, that 
 
 will, at any rate from 1% to 25% per annum, interest compounded 
 
 annually, pay a loan of $100 in from 1 to 25 years. 
 No. 16. — Monthly Sinking Fund, that will pay up quarterly, semi-annual, or 
 
 annual dividends and expense; also Amount of $1 paid either at the 
 
 first or lasft of the month for 3, 6 and 12 months, at any earning rate 
 
 from 3% to 60%. 
 No. 17. — Division of Profits. 
 No. 18. — Present Worth, at monthly Compound, of $1.00 due at the end of 
 
 each half year, showing what portion of the pre-payment is required to 
 
 pay off quarterly, semi-annual, or annual dividends and expense. 
 No. 18a. — The Same as No. 18, but with interest compounded semi-annually. 
 No. 19. — Comparative Interest Table, showing what $1.00 amounts to in any 
 
 number of years up to 15, at Simple interest, and at monthly, quarterly, 
 
 semi-annual and annual compound. 
 No. 19a. — Comparative Interest Table, showing what $1.00 paid each month 
 
 amounts to in any number of years up to 15, at simple interest, and at 
 
 monthly, quarterly, semi-annual and annual compound. 
 No. 20. — Withdrawal Values, at any rate of Simple interest allowed, and at 
 
 any time from 1 to 150 months. 
 No. 21. — Rates earned by a loan, and actual rates paid by a borrower in a 
 
 Building-Loan Association, when the loan is paid up in a given time by 
 
 equal monthly payments. 
 No. 22. — For finding the payment, made at the end of each month, etc., which 
 
 will at last nayment, pay a debt now due and its interest. 
 Table A. — Maturity Key-Table. — For finding either the Payment, par value of 
 
 Share, Earning Rate, or Time to maturity, when we know the other 
 
 three. 
 And many other useful Tables too numerous to mention here. 
 
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 American Building Associatian News, 15 W. 6th Si, Cincinnati 
 
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