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The sixteen general tables presented and analyzed in the preceding chapter summarized by states and territories the facts of a more general character relating to the description and condition of the associations of the country. In addition to them sixteen special tables have been constructed, which give in a summary by states and territories some of the facts relating to the methods and practice of the associations. The special tables as a rule relate to fewer associations than the general tables, the aim here being to give a statement that shall be representative rather than complete. The titles of these sixteen special tables are as follows:
A.-Age of associations.
Q.-Associations taking money on deposit.
Table A.-Åge of associations, pp. 338, 339.-While building and loan associations had their birth in the decade of years from 1810 to 1850, with perhaps here and there one prior to 1840, it is seen by this tablo that the average age of all the associations is but 6.2 years, the locals having an average age of 6.3 years and the nationals of only 2.5 years, Of the locals 2,394 are under 5 years of age, 2,163 are 5 or under 10 years of age, and 589 are 10 or under 15 years of age, making a total of 5,146 associations under 15 years of age. There are 433 associations 15 years of age or over. Of the nationals 226 are under 5 years of age and only 14 over 5. These figures certainly show that the building
and loan associations of the country are entirely modern institutions and have reached their great proportions during the last ten or fifteen years.
Table B.-Frequency of issue of series, pp. 340, 341.—This table needs no explanation. It shows how many serial associations there are-local and national and all taken together--which issue their series monthly, quarterly, quadri-monthly, etc. Associations operating under the permanent and terminating plans are omitted for reasons that will be seen by reference to the explanation of the plans on pages 22 to 24.
Table C.-Shares, shareholders, and dues and profits, pp. 342, 343.This table is intended to show the average shares per shareholder, the average instalment dues paid in plus profits on the same per shareholder, and the average value of shares. In order to obtain a fair basis for the averages all associations which failed to report in regard to either their shares, shareholders, or dues and profits frere discarded from consideration. The dues and profits do not include the amount received for paid-up or prepaid stock, but are confined simply to the dues paid in on instalment shares in force plus the profits on the same. This element of paid-up and prepaid stock has also been eliminated from the number of shares and number of shareholders. It will be seen that the number of shares per shareholder in the local associations is 7.6 and the average dues aad profits to each shareholder $302.87, while the average value of the shares is $39.71. In the nationals the average number of shares to each shareholder is 7.2 and the average dues and profits to each shareholder $86.74, while the average value of the shares is $12.12. Taking all the associations together the average shares per shareholder is 7.5, the average dues and profits to each shareholder $257.03, and the average value of the shares $34.16.
Table D.-Entrance fee, pp. 314 to 347.—This table needs but little explanation. It will be seen that the entrance fee of 25 cents per share is that most frequently determined upon. One thousand five hundred and nineteen associations, however, charge no entrance fee at all.
Table E.-Frequency of payment of dues, pp. 348, 349.—This table shows that the majority of the associations coliect their dues in weekly or monthly payments, the variation from this being very rare.
Table F.-Dues per share at each payment, pp. 350 to 353.-A very large number (1,289) of associations require the payment of 25 cents per share as dues, and 1,123 require 50 cents, while 2,413 require a payment of $1 per share. The number varying from these amounts is small.
Table G.-Maturing value of shares, pp. 354 to 357.-This table shows that 2,215 associations have their shares mature at $100, while 2,337 have their shares mature at $200, the variations from these two sums being comparatively few.
Table H.—Number of shares allowed one person, pp. 358,359.-A large number of associations (2,341) do not limit the number of shares allowed to one person, while 1,190 associations place the limit of shares which
Table J.-Votes allowed, pp. 360, 361.--The associations which allow one vote to each shareholder number 2,513, and those which allow one vote to each share number 2,558. These two classes comprise all but 11 of the associations reporting as to the voting qualifications of members of building and loan associations.
Table K.-Transfer fce, pp. 362 to 365.---The fees charged by associations for the transfer of stock are shown in this table. One thousand one hundred and eighty-nine associations reported that they make no charge for such transfers, while 346 charge 25 cents, 351 charge 50 cents, and 307 charge $1 for each transaction. The associations charging a transfer fee for each share transferred are shown in the second half of the table. Of these 1,386 charge 25 cents per share, while the balance vary from 2 cents to $1.
Table L.-Existing real estate loans in certain representative associations, pp. 366, 367.--This table deals with 2,173 associations only. It shows the number of existing loans on real estate for that number of associations; also the original amount of such loans and the largest and smallest loan. The figures given sbow the original amount of loans, undiminished by partial payments on the same, and although less than one-half of the total associations have been considered as regards the facts shown in this table, it is believed that the showing is fairly representative of all the associations in the country. The table shows that the 2,173 associations which reported the value of existing loans on real estate had 164,627 such loans, with a total original amount of $184,404,322; the largest loan being $100,000, the smallest $5, and the average $1,120.
The classification of the loans is shown in-
Table M.-Individual real estate loans in certain representatire associations, pp. 368 to 371.-This table is designed to show the size of the loans usually made to individual borrowers. A number of the representative associations reporting the amount of each of their real estate loans to shareholders have been used and the loans classified according to the size. The chief object of this table was to show whether the building and loan associations of the country have been used by small or large borrowers; whether the loans have been made in small sums for the purpose of helping the ordinary man, or in large sums to aid capitalists in the erection of buildings, ete. Taking the totals, which include both local and national associations, we find that 532 associations made report as to 36,821 individual loans. It is found that there are only 664 loans out of the 36,821 the original amounts of which were over $5,000 each. This is 1.8 per cent of all the loans existing in 532 associations. This is an exceedingly gratifying showing, and leads to the conclusion that the associations are being conducted in the interest of men of small means. There have been comparatively few associations making loans of over $7,500 each. In some instances the Department has learned of loans to the amount of $50,000 or more—even up to the amount of $100,000 in one case-but these have been rare, and
are made by associations that are composed very largely of merchants and business men generally.
Table N.-Interest rate charged on real estate loans in certain representatire associations, pp. 372 to 375,-By this table it will be seen that 6 per cent is the prevailing rate of interest, but 388 of those reported falling below and but 377 going above that rate.
Table 0.--Average premium rate charged on real estate loans in certain representative associations, pp. 376 to 379.--This is a companion table to Table N. The majority of associations charge a premium on loansin addition to interest. Two methods of doing this prevail (a). Under the first the borrower receives the full amount of the share or sbares on which the loan is made, and pays the premium in instalments, with the interest. For the sake of uniformity this has been reduced to the rate per cent per annum in this table. Under the second method the borrower receives the amount of the share or shares on which the loan is made less the premium charged, the gross amount of which is deducted in advance, interest, however, being charged on the face of the loan. In the table the associations using this method are tabulated under the head gross. These facts were secured from but 1,704 associa tions, yet they are believed to be fairly representative of the entire number. The interest and premium charges enable us to ascertain the cost of a loan to the borrower, and also to consider the question of whether loans secured through building and loan associations are more or less economical to the borrower than those secured from savings banks or private capitalists. In order to illustrate this interesting question we have made an analysis showing the comparative cost to the borrower of a loan of $1,000 from a representative building and loan association and from a savings bank, both in the state of Massachusetts.
A building and loan association has been selected which has matured several series of shares, the maturing period being in each ease 133 months. The comparative results have been shown under the lowest, highest, and average premium rates charged by this association upon the loans in existence at the end of the fiscal year reported to the Department. The practice of the association was to charge upon each $200 share dues of $1 per month, interest of $1 per month, and such monthly premium as might be bid. These payments are made for 133 months, when the shares mature and the loan is satisfied.
A loan of the same amount, principal payable at the end of 133 months, interest at the rate of 5 per cent per annum payable semi-annually, is made from a savings bank. We will suppose the borrower to deposit in the savings bank each month a sum equal to that which is paid into the building and loan association. From this sum he will require $25 semi-annually on each $1,000 to meet the interest payments. The balance he allows to remain in the savings bank to create a fund to pay off the principal of the loan at the end of the 133 months. At the end