The number of associations operating under this plan and its modifications is as follows: LOCAL.- Alabama, 11 ; Arizona, 3; Arkansas, 9; California, 45; Colorado, 14; Connecticut, 4; Delaware, 2; District of Columbia, 13: Georgia, 7; Illinois, 248; Indiana, 63; Iowa, 24; Kansas, 22; Kentucky, 13; Louisiana, 1; Maryland, 1; Massachusetts, 1; Michigan, 9; Minnesota, 38; Mississippi, 11; Missouri, 149; Montana, 1; Nebraska, 14; New Hampshire, 2; New Jersey, 100; New Mexico, 2; New York, 24; North Carolina, 3; North Dakota, 3; Ohio, 20; Oregon, 8; Pennsylvania, 338; Rhode Island, 1; South Carolina, 6; South Dakota, 10; Tennessee, 24; Texas, 12; Utah, 1; Virginia, 2; Washington, 2; West Virginia, 12; Wisconsin, 6; Wyoming, 1; total local associations, 1,280. NATIONAL.-Colorado, 2; District of Columbia, 1; Georgia, 6; Illinois, 19; Indiana, 1; Iowa, 1; Kentucky, 11; Maryland, 2; Minnesota, 4; Missouri, 7; Montana, 1; Nebraska, 1; New York, 2; North Dakota, 1; Oregon, 1; Pennsylvania, 1; South Dakota, 1; Tennessee, 12; Texas, 2; Utah, 1; Virginia, 2; Washington, 1; West Virginia, 1; total national associations, 81. PLAN 2. 1. Give to each series, except the last, interest at the legal rate upon the value of the shares in force as declared at the last report. 2. Deduct this interest from the profits for the term and divide the remainder equally among all the shares. Assuming that 6 per cent is the legal rate, and using the same data as in the illustration of plan 1, the plan is worked out as follows: ILLUSTRATION. $38.87 x .06 - $2.33, interest on one share of the first series. $2,373, total interest belonging to the old series. $3,000, the profits for the term, - $2,373 = $627, profits remaining to be divided. $627 -- 2,000, total shares in force,=$0.31, profit of each share. $38.87, previous value, + $2.33, interest, + $0.31, profit, + $12, dues, =$53.51, value of a share of the first series. $25.27, previous value, +$1.52, interest, + $0.31, profit, + $12, dues,= $39.10, value of a share of the second series. $12.32, previous value, + $0.74, interest, + $0.31, profit, + $12, dues, == $25.37, value of a share of the third series. $0.31, profit, + $12, dues, == $12.31, value of a share of the fourth series. Undivided profits, $7. This is known as Wrigley's rule. Many associations using this plan of distributing profits allow a higher or a lower rate of interest than the legal rate, but no separate The above plan is varied by different associations in the following manner: 1. Interest is allowed on all the series except the last. 2. Interest is allowed on the dues paid in up to the last report on the shares in force. 3. Interest is allowed on the withdrawal value of the shares in force. 4. Interest is allowed on the value of the shares in force as declared by the last report, plus all the dues paid in during the term. 5. Shares less than six months old do not participate in the profits. 6. Interest is allowed on the value of the shares in force as declared by the last report plus one-half the dues paid in during the term. 7. Interest is allowed on all the dues paid in on the shares in force for one-half the time they have been invested. 8. After the legal rate of interest has been deducted from the total profits, the remainder of the profits is divided in proportion to the amount of dues paid in during the term. 9. Profits arising from withdrawals are divided equally among the shares of the respective series from which the shares were withdrawn. 10. After the legal rate of interest has been deducted from the total profits the remainder of the profits is divided as follows: All shares in force at last report receive an equal part, while shares three months old receive one-fourth as much as shares one year old, shares six months old receive one-half as much as shares one year old, etc. 11. Shares less than three months old are not allowed any part of the profits. 12. This variation of the rule is made by some national associations: After the interest has been deducted from the total profits the remainder of the profits is divided among all the shares in force, in proportion to the amount of dues paid into the loan fund during the term. 13. Each series except the last is given interest at the legal rate upon the value of the shares in force as declared by the last report; the first series is then given credit for all the interest paid during the term on loans made prior to the issuing of the second series. The first and second series together are given credit for all the interest paid during the term on loans made during the existence of the second series and prior to the issuing of the third series, the apportionment being made equally to the shares in each; and so on for any number of series. The remainder of the profits is divided equally among all the shares in force. 14. A fixed rate of interest is allowed on the value of all shares in force as declared at the last report. This interest is deducted from the profits and the remainder divided among all shares three months old or over, in proportion to the amount of dues paid in during the term. The number of associations operating under this plan and its variations is as follows: LOCAL.-Arkansas, 1; California, 32; Colorado, 4; Delaware, 6; Florida, 3; Georgia, 1; Illinois, 34; Indiana, 4; Iowa, 1; Kansas, 6; Kentucky, 5; Louisiana, 8; Michigan, 1; Minnesota, 2; Mississippi, 2; Missouri, 9; Montana, 3; Nebraska, 5; New Jersey, 41; New York, 8; Pennsylvania, 63; Tennessee, 15; Virginia, 1; West Virginia, 1; total local associations, 256. NATIONAL.- Kentucky, 1: total national associations, 1. PLAN 3. 1. To the value of all the shares in force as declared by the last report add one-half the dues paid in during the term. 2. Divide the profits for the term by this sum for the rate per cent of profit. 3. To the value of each share as declared by the last report add onehalf the dues paid in during the term and multiply the sum by the rate per cent of profit, for the profit of each share. 4. To the value of each share as declared by the last report add the dues paid in on the same during the term and the profit of each share, for the present value. Using the same data as in the previous illustrations the result is as follows: ILLUSTRATION. $39,525, value of all series at last report. $12 -- 2 2,000=$12,000, one-half the dues paid during the year. $39,525 + $12,000=$51, 525, total dividend bearing capital. $3,000, the profits for the term, -- $51, 525 = 5.8224, the rate per cent of profit. ($38.87 + $6) x .058224=$2.61, profit of a share of the first series. ($25.27 + $6) x .058224=$1. 82, profit of a share of the second series. ($12.32 + $6) x .058224 =$1.07, profit of a share of the third series. $6 x .058224=$0.35, profit of a share of the fourth series. $38.87, prerious value, + $2.61, profit for term, +$12, dues, = $53. 48, present ralue of a sharo of the first series. $25. 27, previous value, + $1. 82, profit for term, + $12, dues, = $39.09, present value of a share of the second series. $12.32, previous value, + $1.07, profit for term, + $12, dues, $25. 39, present value of a share of the third series. $0.35, profit for term, + $12, dues, = $12.35, present value of a share of the fourth series. The above rule is known in some sections of the country as the third dividend rule. It is varied by different associations in the following manner: 1. To the value of all the shares in force as declared by the last report add one-third of the dues paid in during the term for the dividend bearing capital. 2. To the value of all the shares in force as declared by the last report add two-thirds of the dues paid in during the term for the dividend 3. To the value of all the shares in force as declared by the last report add eight-thirteenths of the dues paid in during the term for the divi. dend bearing capital. 4. To the value of all the shares in foree as declared by the last report add three-eighths of the dues paid in during the term for the dividend bearing capital. 5. To the value of all the shares in force as declared by the last report add one-half the dues paid in during the term, not including the last regular payment, for the dividend bearing capital. 6. Shares less than six months old do not participate in the profits. 7. Instead of ascertaining a rate of profit according to the rule, each series' share of the profits is represented by a fraction whose numerator is the dividend bearing capital of the respective series and whose denominator is the total dividend bearing capital of all the series. 8. Profits arising from withdrawals are divided equally among the shares in force of the respective series from which the shares were withdrawn. 9. The profits belonging to the series issued since the last report are kept separate and are divided equally among the shares of that series. 10. The rate of profit is found according to the rule, but this rate is applied upon the dues paid in at last report plus one-half the dues paid in since, previously apportioned profits being disregarded; the remainder of the profit being held in reserve. 11. The rate per cent of profit annually based on the free shares only is found according to the rule, and the board of directors arbitrarily declares what part of said rate shall be distributed to the free shares, the remainder being carried to the reserve fund. The shares borrowed on do not participate in the profits, their dues being credited on the principal of the loan. 12. All of the profits are distributed to the free shares only. The shares borrowed on do not participate in the profits, their dues being credited on the principal of the loan. 13. To the value of the free shares as declared by the last report add one-half the dues paid in during the term on all the shares in force, for the dividend bearing capital. The shares borrowed on receive profits on one-half the dues paid in during the term only. These profits and the dues paid in are credited on the principal of the loan. 14. This variation from the rule is largely used throughout the New England states, and is known as the Eldredge plan. It differs from the rule, in that the rate per cent of profit is not computed in the usual way, but instead the division of profits is based on an assumed rate per cent. This assumed rate of profit is distributed to each share as under the rule. If a portion of the profits still remains undistributed, the profit per share is increased by one-half per cent, one-fourth per cent, etc., according to the amount of profit reinaining. To illustrate the plan, suppose the last annual report shows a share of a given series to be worth $38.87, and that a rate of 6 per cent is assumed. $38.87 x .06 = $2.33, profit on previous value at the assumed rate. $2.69, total profit of the share at the assumed rate. The same computation is made upon all the shares in force of the exist. ing series, which gives the total profit of all shares in force at the assumed rate, 6 per cent. If, after deducting this profit from the total profits, it is found that the profits are sufficient to allow 64 per cent instead of 6 per cent, the profit per share is increased one-twelfth; if sufficient to allow 7 per cent, the profit per share is increased one-sixth, etc. 15. The series issued since the last report is given all the entrance fees. The profits arising from withdrawn shares are divided equally among all the shares in force of the series in which the withdrawals took place, and the preceding ones. To illustrate, suppose the with drawal profit was made in the second series; then such profit would be divided equally among all the shares in force of the first and second series; if the withdrawal profit was made in the third series, it would be divided equally among the shares in force of the first, second, and third series, etc. 16. A fixed rate of interest is allowed upon the value of all the shares in force as declared by the last report plus one-half the dues paid in during the term. The remainder of the profit is arbitrarily divided among all the shares in force, a larger portion being given to the shares of the older series than to those of the younger series. 17. Some permanent associations vary the rule in the following manner: Members may pay more than the regular required weekly or monthly dues, but no dividends are allowed on such overpayments until the close of the current term in which they are paid. Members may also withdraw all or any part of the dues paid or of the dividends declared, future dividends being based on the amount standing to the members' credit at the beginning of the term and on one-half the regular dues paid during the term. The number of associations operating under this plan and its varia tions is as follows: LOCAL.--Alabama, 1; Arizona, 1; Arkansas, 2; California, 1; Colorado, 1; Connecticut, 4; Delaware, 4; District of Columbia, 1; Illinois, 38; Indiana, 28; Iowa, 3; Kansas, 10; Kentucky, 70; Louisiana, 2; Maine, 5; Maryland, 93; Massachusetts, 65; Michigan, 18; Minnesota, 10; Missouri, 10; Nebraska, 13; New Hampshire, 2; New Jersey, 6; New York, 34; Ohio, 347; Pennsylvania, 42; Rhode Island, 3; Tennessee, 3; Utah, 1; Virginia, 18; West Virginia, 2; Wisconsin, 13; total local associations, 851. |