$3,000, the profits for the term, -$63, 525=4. 7225, the rate per cent of profit. $25, 435 X. 017225 $22, 362X.047225 $9,728 ×.047225 $1, 201. 17, the first series' share of the profits. $459. 40, the third series' share of the profits. The following modifications of plan 5 have been found: 2. Profits are distributed to all shares six months old and over in accordance with the rule, shares less than six months old not participating in the profits. 3. Profits are distributed on the amount standing to the credit of shareholders three months previous to the dividend day. 4. Profits are distributed on the values of the shares at the last report, and on all the dues paid in during the term except the last regular payment. 5. Profits are distributed to all shares thirty weeks old and over, shares less than thirty weeks old not receiving any profit. 6. Instead of finding an exact dividend rate, as in the foregoing rule, an arbitrary rate, within the limit of the profits, is allowed. 7. A fixed rate of interest is allowed on all balances at the beginning of the year and on the dues paid in on shares then in force. The same rate of interest is allowed on the dues paid in on shares less than a year, but more than three months, old. Shares exactly one year old receive a much higher rate of interest; but, if allowed to remain in the associ ation, the dues and dividends would become a balance on which the lower rate of interest would be allowed at the end of the following year. 8. A fixed rate of interest is allowed on the values of the shares in force as declared by the last report and on all the dues paid in during the term. This interest is then deducted from the profits for the term, and the remainder divided in proportion to the age of the shares. 9. Profits arising from premiums are distributed in accordance with the rule. All other profits are divided equally among the shares of the respective series in which such profits were made. 10. Profits arising from interest, fines, withdrawals, etc., are distributed among all shares three months old or over in accordance with the rule. Profits arising from premiums are divided equally among all the shares in force three months old or over. 11. Profits arising from interest and from premiums on interest are premiums other than on interest are divided equally among all the shares in force. 12. A fixed rate of interest is allowed on the amount standing to the credit of the shareholders at each semi-annual term. This interest is then deducted from the profits for the term, and the remainder is divided equally among the borrowing shares. 13. Profits arising from interest are apportioned according to the rule. All other profits are apportioned on the basis of the dues paid during the term plus the interest credited for the term. 14. The rate per cent of profit is found in accordance with the rule; but the rate thus obtained is applied to each shareholder's account on his dues only, the remainder of the profits being held in reserve. 15. The profits are distributed every month. The gross profits of the month are divided by the total capital, for the rate per cent of profit which is then applied successively to the values of the shares in each series as determined at the previous apportionment, for the gross profit on each share. The monthly expenses are apportioned to each share on the same basis, and the net profit of each share is the difference between the gross profit of each share and the expense of each share. The number of associations operating under this plan and its variations is as follows: LOCAL.-California, 1; Colorado, 2; Idaho, 2; Illinois, 20; Indiana, 6; Iowa, 4: Kentucky, 4; Louisiana, 4; Maine, 2; Maryland, 21; Michigan, 2; Minnesota, 8; Mississippi, 1; Missouri, 6; Montana, 2; Nebraska, 1; Nevada, 1; New Hampshire, 1; New Jersey, 18; New York, 38; North Dakota, 1; Ohio, 8; Pennsylvania, 40; Tennessee, 4; Utah, 1; Virginia, 2; West Virginia, 2; Wisconsin, 1; total local associations, 203. NATIONAL.-Illinois, 1; Indiana, 4; Iowa, 1; Kentucky, 1; Minnesota, 1; Mississippi, 1; New York, 3; Virginia, 1; total national asso. ciations, 13. PLAN 6. 1. Divide the net profits for the term by the total amount of dues paid in on all the shares in force, for the rate per cent of profit. 2. Multiply the total dues paid in on one share of each series by the rate per cent of profit, for the profit on one share. Using the same data as before the result is as follows: $18.049019 $24 × .049019 $3,000, the profits for the term, — $61, 2004.9019, the rate per cent of profit. $38.87+$2.35 + $12 $25. 27+ $1.76 + $12 This rule is known in some sections of the country as the second dividend rule. The following variations differ from the rule only in the method of computation, as exactly the same results are obtained: 1. Multiply the number of shares in force in each series by the number of months the series have run. Add these products and divide the sum into the net profits for the term, for the profit of one share for one month. Then multiply the profit per share per month by the number of months the series has run, for the profit of a share in any series. 2. Multiply the number of shares in force in each series by the time of investment expressed in terms or periods corresponding to the intervals between the series. Add these products and divide the sum into the profits for the term, for the profit of a share of the youngest series. Shares twice the age of a share of the youngest series will receive twice as much profit; a share three times as old will receive three times as much, etc. 3. Multiply the number of shares in each series by the dues paid in per share, or by one-half the dues paid in, according to the practice of the association. Add these products and find what fractional part each product is of the sum of all the products. These fractions represent the parts of the total profits belonging to each series. 4. Multiply the dues on the shares in force for one-half the time of investment by an assumed rate per cent of profit, for the assumed profits. Divide the actual net profits of the term by the assumed profits and multiply the quotient by the assumed profits of each series, for the actual profits of each series. 5. The legal rate of interest is allowed on the total dues paid in all the series, and the remainder of the profits divide among all the shares in proportion to the total amount of dues paid in each series. The variations from the rule which give different results are the following: 1. Only the dues standing to the credit of the shareholders six months prior to the dividend day participate in the profits. 2. Shares must be three months, six months, or one year old, as the rules of the association may provide, before they are allowed to participate in the profits. 3. The last three months' payments of dues do not participate in the 4. A fixed rate per cent of profit is allowed and profits are distributed only when a sufficient amount has accumulated to give to each share this rate per cent on the dues paid in. 5. A rate per cent of profit is ascertained by dividing the net profits for the last year by the total amount of dues standing to the credit of the free shares, plus the dues paid in on the pledged shares during the year. This rate is applied on the dues standing to the credit of each share at the end of the year and the profit belonging to the free shares goes to increase their value, while the profit belonging to the pledged shares, with the dues paid on them during the year, is credited on the loan as a partial payment. 6. The profits are distributed to the free shares only. All payments made on pledged shares are credited on the loans. 7. The legal rate of interest is allowed on all the dues paid in except the last regular payment. The remainder of the profits is held in reserve. 8. Profits arising from fines and transfer fees are divided equally among the shares of the series in which such profits were made. The remainder of the profits is distributed in accordance with the rule. 9. A fixed rate of interest is allowed on all the dues paid in. 10. Profits arising from interest and fines are distributed in accordance with the rule. All other profits are divided equally among all the shares in force. 11. Profits arising from premiums are divided equally among all the shares in force. All other profits are distributed among all shares three months old or over, according to the rule. 12. Profits arising from interest are divided in accordance with the rule. All other profits are divided among all the shares in force, in proportion to the amount of dues paid in during the term. 13. No profit is allowed on the dues paid in during the term. The number of associations operating under this plan and its variations is as follows: LOCAL.-Alabama, 1; Arkansas, 2; California, 2; Colorado, 2; Connecticut, 1; Delaware, 3; District of Columbia, 2; Florida, 3; Georgia, 1; Idaho, 1; Illinois, 29; Indiana, 39; Iowa, 2; Kentucky, 8; Louisiana, 3; Maryland, 12; Massachusetts, 1; Michigan, 8; Minnesota, 3; Missouri, 21; Nebraska, 6; New Hampshire, 4; New Jersey, 17; New York, 142; Ohio, 76; Oklahoma, 1; Pennsylvania, 51; Rhode Island, 1; Texas, 1; West Virginia, 1; Wisconsin, 2; total local associations, 449. NATIONAL.-District of Columbia, 2; Illinois, 5; Indiana, 7; Michigan, 1; Minnesota, 1; Missouri, 1; New York, 4; Pennsylvania, 2; Tennessee, 1; Washington, 1; West Virginia, 1; total national associations, 26. PLAN 7. 1. To the amount of dues paid in on one share in each series up to the last report add one-half the dues paid in during the term, and multiply these sums by the number of shares in each series, for the dividend bearing capital of each series. 2. Add these products and divide the sum into the profits for the term, for the rate per cent of profit. 3. Multiply the dividend bearing capital of each series by the rate per cent of profit, for the profit of each series. 4. Divide the profit of each series by the number of shares in the series, for the profit of one share in each series. Using the same data as before we proceed thus: $6 × 500 ILLUSTRATION. ($36+$6) × 500 – $21,000, dividend bearing capital of the first series. ($24 - $6) × 600 --- $18,000, dividend bearing capital of the second series. ($12+ $6) × 400 $7,200, dividend bearing capital of the third series. $3,000, dividend bearing capital of the fourth series. $49,200, dividend bearing capital of all series. $3,000, the profits for the term, -$49, 2006. 0975, the rate per cent of profit. $21,000 × .060975 -- $1,280.48, the first series' share of the profits. $18,000 × .060975 $1,097.55, the second series' share of the profits. $7,200 × .060975 - $439.02, the third series' share of the profits. $3,000 × .060975 - $182.93, the fourth series' share of the profits. $1,280.48-500 $2.56, profit of a share of the first series. $1,097.55 - 600 $1.83, profit of a share of the second series. $439.02 — 400 = $1.10, profit of a share of the third series. $182.93 500 $0.37, profit of a share of the fourth series. $38.87+$12+$2.56 . $53.43, value of a share of the first series. $25.27+$12+ $1.83 = $39.10, value of a share of the second series. $12.32+$12+ $1.10 = $25.42, value of a share of the third series. $12+ $0.37 = $12.37, value of a share of the fourth series. $0.02, profits undivided. The following variations of this rule have been found: 1. The profits are distributed to the free shares only. 2. The dividend bearing capital of the free shares is ascertained in accordance with the rule. The dividend bearing capital of the shares borrowed on is found as follows: At the end of the first half of the year one-half of the dues paid in on such shares during the period is taken: at the end of the second half of the fiscal year, all the dues paid in during the first half of the year, and the dividend thereon, plus one-half of the dues paid in during the second half year, forms the dividend bearing capital of such shares. In such cases the association makes an annual settlement with its borrowers, and credits the dues paid in and dividends declared each year on their loans. 3. Profits arising from entrance and transfer fees are divided equally among all the shares. The number of associations operating under this plan and its variations is as follows: LOCAL.-Illinois, 21; Indiana, 5; Kansas, 1; Maryland, 15; Michigan, 11; Missouri, 1; New York, 1; Ohio, 101; Pennsylvania, 10; Tennessee, 1; Utah, 1; Wisconsin, 4; total local associations, 172. NATIONAL.-Michigan, 1; New York, 1; total national associa |