Show for the ITA IT A FROM THE PEOPLE the of at til tile system of building associations all points BY DY C A II 11 UTAH the present scarcity of dwelli dwelling 09 houses in this city and the high agh rentals ef if all kinds of residences residence a is an everyday every day subject of comment although somo some two hundred dwellings have been erected during the pa past qt season in in various parts of the city a new nev population is is constantly arriving new stores are icide being opened and new industries being agitated so that the tile supply i A today unequal to the tile demand this fills is is more particularly true of medium sized dwellings with a rental of ten to fifteen dollars per per month suitable to the wants and income of clerks laborer an I small families of moderate means who 1010 comprise in in all towns and cities a majority of the population this class of houses is is in in con wn demand everywhere a fact particularly exemplified last las week in an examination of the record of lil dinga erected in eastern cities aling the ye year arjust just closed take lur fur example reading pennsylvania essentially a manufacturing city the seat of the iron coal and wood trade where hundreds of industries dus tries exist the population is is compo composed cd mainly of the laboring classes or per persons eolis of moderate e means during 1882 abou t buil buildings diDgS were erected of which tome mc were dwelling houses abile there was but one building permit issued by the city authorities lor a house of four stories there were twelve for houses of three shree stories and two hundred and twenty twenty three for two story houses of ma moderate capa capacity ci ty A d dwelling e ring house being a necessity it is a desideratum to obtain one as cheaply as possible and if any system can be whereby any one desirous of having his own home can acquire one with no greater outlay than what he would of nece necessity pay out monthly in his rental of another mans building of tuch a system will by every one be pronounced a blessi blessing Dg both public and private while it is a blebee ing to an individual it is at tho the same time productive of public good as it assists as no other plan practically caa can in building up a city and thereby increasing the public revenue the general value of real real estate and all coordinate values of pr property in in the vicinity such a system purely co opera tive one exists in england germany sweden and some other parta parts of europe and in this country t er in the building A associations ekich which havo have provided for the stock holders many thousands of comfortable homes at a minimum cost having examined their workings in the east with a view of aiding if P OSSI ble in their establishment in utah a summary of their mode of operation may be found fauna ef of interest one li hundred undred men able to gave save five dollars a month agree in in order to strengthen each other in their purpose to save to put their money together at fixed periods and lock it up in a strong box until each has accumulated one thousand dollars it is evident that if each I man is is prompt in payment that the strong bex box will bo be ready io to be opened for a division of the tile savings savin eavin in s at the end of two hundred months in other words if each monthly payment of one dollar rep rants a share of stock each share will avill be worth a fixed par value of at the end of two hundred months mouth no sooner however boweter has thia thi agreement gre ement to L save ave money in this way been made when one of the tile members suggests that instead of allowing the money to lie idle it lar far better to put it out at i as it is gathered in each mouth ra etith the securities for iti repayment together with the interest re being all placed in their strong c box it is evident that it will not require two hundred months to accumulate two hundred dollars per share the division of two hundred dollars per share may be made at the end of one hundred and seventy months when the they y will have paid on each share but one hundred and seventy dollars the sugg suggestion aa to investment being adopted wo we have a purely operative cooperative co saving fund with only one distinguishing feature and that one most valuable the saying savings gs are compulsory and are made at stated periods tho the member does not lay aside hiss his spare are cash as the humor may seize seize flim him but he lie enter enters into an obligation to pay a fixed sum per month the other branches of business in which they engage although aliey give character and to the societies arc ure realy really only incidental to the tile accomplishment of one grand purpose that of saving money by cooperation and by compulsory payment into the treasury we now have an organized society as above outlined with the object jentof of saving money maney and deriving interest from the funds as they accumulate the first problem for the directors anil and the one that first presents itself is how jiow hall shall we use tho the money that accumulates the first month montil mong the of its society will be defeated if the funds are not safely invested shall it bo be put in government bonds at per cent interest or in bond and mortgage with real estate security at it a higher eigher rate if the latter course ie is adopted to whom shall the money be lent fent carl or ar john anderaon anderson who inot n member of tho the adocia tiou desires to borrow but so dues does aleo also william or henry young who is a member if the lends tends it to either of the youngs it will have additional security to that represented in his bond blind and mortgage in ilia his stock growing in value month by month to cover this point that ia is to get this additional I security for all the money it lend and at the same time secure a higher rate of interest in for its money then titan could be obtained from government bond bonds the association determines to lend to ita its members ont only now it ie is found that other niem member rs of the tile association besides coulig want to borrow the first months collection how ilow schall it be decided between them then surely the fairest plan for the association ao is to let the members bid one against another and lend it to the man who ii willing to give the highest premium over and aud above the legal rate of interest or in other words over the fixed price of loans loatis this course is adopted and the biety finds itself in the possession of two sources of profit interest on loans to its own members and premiums for tho the prior use af the money collected it is now manifest that instead of requiring two hundred or one hundred and seventy months in which to accumulate in tho the strong box daou enough h money and to divide divide two hundred dollars per share that it will take only one linn dred and forty four months in tho the course of time some one of the members failed to pay hia his instalment installment if chii were permitted to pass unnoticed it is evident that the members so colliding n di ing and withholding his deposit und de depriving va the a association of its use will in t the ll 11 end have anahid vantage over his fel low member members ho ile will low only ili liis proportionate bare share of the possible profit on oil this unpaid deposit depo eit but will gain or may gain pin to hie hill pe personal anal use the whole of ite its interest value by other investments to check this a fine is imposed on oil unpaid instalments installments or deposits of more than tho the interest value of money so that he file fine mayerle may serve erve as a penalty as well as a to burm the association far for the loa of the use ute of the money so kept baak it always abw ats happens that one or more m members find they cannot keep up the payments or to re moye to another part of tho the country to accommodate them the society agrees to open its stron strong box before the appointed time give to the members withdrawing from the ns association of the tire profit already ac no caner cancel 14 their stock now it will be seen that incidental to the simple buLin baines bu ines evs of saving money and getting interest thereon there arc are three sources of profit namely premiums arising from campett com competition pett on for priority of loa loan penalties collected collect el for nonpayment non payment of daes and profits withheld from members who fail to keep their agreement and stock has been canceled and eo so we have havo developed all the features of a thoroughly organized building association v course of such a society at first the demand fur for money is brisk and premius prem iun rule higlin As time goes on the demand jand slackens premiums fall hill off oft and eventual eventually I it becomes difficult to d dispose of money to members and other safe and absolutely eckre investments have to be found which as a rule develops itself into juto the building of moderate sized houses which nill find readily a desirable close clam of tenants or assure remunerative sales either bein being a good source of profit at last between the th tenth and eleventh year year when from one hundred and twenty to one hundred and thirty dollars have been paid in per bhare the shiong box is found to contain se so curi cu ritie or money or buildings sufficient to divide all borrowed and tr hundred bundred I dollars each the society is then like grandfathers clock wound up never to go again every very holder of an all bor share gete gets in cash each borrower is entitled to but lie owes the two hundred for which the a association holds his bond an I mortgage ao so lie ret gets thein back and the account rett led he lie has hie his lilure and bonie the idea ia is awl it is perfectly safe fafe and sound in every every point of view and the Buil building dink associations with which any to town n or eity city is blessed and a safe safia saving fund for the people the calculation as ns to the time of lie s strong bos box being fall is is in tile castera eastern basis of the legal rate of interest its ax per cent ant A As that rate is higher and as the demand fur for noney ie is greater both of which conditional condi tiona exist in the west so will the ofru run a oue outa P more quickly or tile strong bos box became the sooner filled in III tho the east last the shares of stock arc sire placed generally at one dollar per rm month th some organizations are kineon framed with weekly payments instead of monthly making the time of closing leee lees than one fourth as loi long be as the latter in in laramie city wyoming an association aw lias has been formed on the basis of shares one dollar and twenty five cent premium 12 per cent interest in 10 per cent the ma profits 18 to t stockholders have amounted to 19 per cent per annum if a building association Aso ia is well organized aed and carefully conducted in this city and elsewhere in thie this territory the profits would probably aggregate from 15 to 25 per cent per annum from the present condition of the real estate market to any organization stai starting ting here a copy of of the and bylaw of the finest building accia lions in the tho fast will b furnished furni ebed free |