PLAN 8. 1. Find the legal rate of interest on the values of the shares as declared by the last report and deduct it from the profits of the term for the net profit. 2. Divide the net profit by the sum of the dues paid in during the term and the interest on the previous series, for the rate per cent of profit. 3. Multiply the sum of the interest and dues for the term on one share of each series by the rate per cent of profit, for the profit on one share. 4. Add the previous value of a share of each series, the legal interest on this value, the dues paid in during the term, and the profit on the share to find the present value of a share of each series. Let the legal rate of interest be 6 per cent, and using the same data as in the preceding illustrations, we proceed thus: ILLUSTRATION. $38.87 .06 = $2.33, interest on a share of the first series. $2,373, total interest on old series. $3,000, the profits for the term, — $2,373 = $627, the net profits. $12 × 2,000, the number of shares in force, = $24,000, the dues paid during the term. $24,000+ $2,373 $26,373, the active capital. $627÷$26,3732.3774, the rate per cent of profit. ($12 + $2.33) × .023774=$0.34, the profit of a share of the first series. $25.36, value of a share of the third series. The above rule is known as Brooks' rule. Some associations using this rule vary it by allowing less than the legal rate of interest on the old values, but no separate classification of such associations has been made. Another variation from the rule consists in allowing the legal rate of interest, not only on the values of the old series at the beginning of the term, but also on the equated amount of dues paid in on all the shares during the term. Another variation from the rule is as follows: After the legal rate of interest for the term on the values of the old series has been deducted from the profits for the term, the remainder of the profit is divided by the sum of the value of all shares at the beginning of the term, the dues paid in during the term, and the interest for the rate per cent of H. Ex. 209-29 profit. This rate is then applied to the sum of the previous value of each share, the dues paid in during the term, and the interest on the share for the profit on one share. The number of associations operating under this plan and its variations is as follows: LOCAL.-Colorado, 1; Illinois, 2; Mississippi, 1; Missouri, 9; New Jersey, 7; Pennsylvania, 5; total local associations, 25. PLAN 9. The profits are divided equally among all the shares in force. This plan is used principally by terminating associations. The following variations of this rule have been found: 1. The profits for eacli term are divided equally among all the shares in force. 2. The profits for each term are divided equally among all shares three months old or over, six months old or over, or nine months old or over, as the rules of the association may provide. In such cases shares less than three months, six months, or nine months old do not partici pate in the profits. 3. Shares less than a year old are given such portion of the profits as the board of directors may allow. The remainder of the profits is divided equally among all the shares one year old or over. 4. The profits for each term are divided equally among the free shares. 5. Shares one year old or over receive equal amounts of the profits for the term. Shares nine months old receive three-fourths as much as those a year old; shares six months old one-half as much, etc. 6. The profits made by cach series are kept separate, and are divided - equally among all the shares of the series. 7. Profits arising from premiums and fines are divided equally among the shares of the series in which such profits were made. All other profits are divided equally among all the shares. The number of associations operating under this plan and its variations is as follows: LOCAL.-Alabama, 5; Arkansas, 10; California, 4; Colorado, 10; Connecticut, 2; Delaware, 3; District of Columbia, 6; Florida, 3; Georgia, 15; Illinois, 27; Indiana, 191; Iowa, 13; Kansas, 20; Kentucky, 27; Louisiana, 2; Maryland, 22; Michigan, 11; Minnesota, 1; Mississippi, 6; Missouri, 108; Nebraska, 14; New Jersey, 37; New Mexico, 2; New York, 31; Ohio, 48; Oregon, 3; Pennsylvania, 294; South Carolina, 37; South Dakota, 3; Tennessee, 4; Texas, 23; Virginia, 38; Washington, 3; West Virginia, 30; Wisconsin, 5; Wyoming, 4; total local associations, 1,062. PLAN 10. The profits are distributed according to the value of the shares as declared by the last report, disregarding dues paid in during the term. ILLUSTRATION. Value of all shares in force at last report, $25,800. Profits to be distributed, $1,612. $1,612 $25,800 6.248, rate per cent of profit. Suppose the value of a given share at the last report to be $52.60. Then: $52.60 × .06248-$3.28, profit for the term. $52.60, previous value, +$3.28, profit, +$12, dues paid during the term, $67.88, present value. The above rule is slightly varied by some associations that reserve a small portion of the profits which is arbitrarily distributed to the series issued during the term. The remainder of the profits is divided according to the rule. Another variation from the rule is made by associations that distribute the profits to the free shares only. The number of associations operating under this plan and its variations is as follows: LOCAL.-Illinois, 7; Indiana, 53; Iowa, 1; Kentucky, 2; Maryland, 1; Minnesota, 6; Missouri, 2; Nebraska, 1; New York, 19; Ohio, 23; Pennsylvania, 3; Tennessee, 6; Virginia, 2; West Virginia, 4; Wisconsin, 1; total local associations, 131. NATIONAL.-Illinois, 1; Indiana, 2; Minnesota, 3; Missouri, 2; New York, 3; total national associations, 11. PLAN 11. 1. The legal rate of interest is allowed on the dues standing to the credit of shareholders at the beginning of the year, but no interest is allowed on the first year's payments. 2. Dues paid in after the first year bear interest from the end of the quarter in which they are paid; thus the first quarter's dues bear interest for nine months, the second quarter's dues for six months, and the third quarter's dues for three months. Assuming that dues are $1 a share per month and that the legal rate of interest is 6 per cent, the result would be as follows: The number of associations operating under this plan is as follows: LOCAL.-Pennsylvania, 2; total local associations, 2. PLAN 12. 1. Members who have $100, or any multiple thereof, in the associa tion at the beginning of the term (quarter), and leaving said money with the association during the term, shall receive a fixed rate of interest thereon. 2. All the remaining profits are divided equally among all shares that are three months old or over. ILLUSTRATION. Let us suppose that A, B, and C are shareholders. A begins the quarter with $98 paid in as dues, B with $216, and C with $398.50. Now, A would get nothing under the fixed interest rate. B would get the fixed rate of interest on $200, and C the fixed rate of interest on $300. In addition, A, B, and C would get an equal amount per share of the remaining profits. The number of associations operating under this plan is as follows: LOCAL.-New York, 2; total local associations, 2. PLAN 13. 1. Profits arising from interest on loans are divided equally among the shares of the series in force when the loans were made. 2. The remainder of the profits is divided equally among all the shares in force. To illustrate the rule, let us suppose that an association is three years old and has in force three series of one hundred shares cach. At the end of the second year the report showed the value of a share in the first series to be $26, and in the second series $12.40. During the third year a profit of $220 was made, of which $25 was interest on loans made when only the first series was in existence; $30 was interest ou loans made after the second series was issued and before the issuing of the third series; and $45 was interest on loans made after the third series was issued. ILLUSTRATION. $25 100$0.25, interest due cach share of first series, on loans made prior to issuing the second series. $30 ÷ 200=$0. 15, interest due each share of the first and second series, on loans made after second series was issued and prior to issuing the third series. $45÷300$0.15, interest due each share of first, second, and third series on loans made after the third series was issued. $220, profit, -$100, interest, = $120, net profit to be divided equally among all the shares in force. $120-300 = $0. 40, profit due per share in each series. $26, previous value, + ($0. 25 + $0. 15 + $0. 15), interest, + $0. 40, profit, + $12, dues, $38.95, value of a share of the first series. $12. 40, previous value, + ($0. 15+ $0. 15), interest, +$0.40, profit, +$12, dues, = $25. 10, value of a share of the second series. $0.15, interest, + $0.40, profit, + $12, dues, series. = = $12.55, value of a share of the third The number of associations operating under this plan is as follows: PLAN 14. The value of shares at each quarterly meeting shall be ascertained and adjusted as follows: The shares of each series shall be given credit (1) for the value of the shares at the previous quarterly meeting; (2) for the dues paid in on the shares during the quarter; (3) for the interest paid during the quarter on loans as follows: The first series shall be given credit for all the interest paid during the quarter on loans made prior to the issuing of the second series; the first and second series together shall be given credit for all the interest paid during the quarter on loans made after the issuing of the second series and prior to the issuing of a third series, to be apportioned between said two series in proportion to the amount of accumulations of the respective series during the existence of the second series and prior to the issuing of a third series, as shown by the previous quarterly statement, and so on for any number of series; provided, however, that should any loan be paid off after the issuing of a second or any later series the money actually paid on such loan, exclusive of dues, premiums, fines, and interest, shall be immediately reinvested, and thereafter all the series which were in existence at the time of making the original loan shall be entitled to interest on the amount so reinvested at the rate of 6 per cent per annum, to be apportioned between the said series in the same manner as interest on the original loan was apportioned prior to the paying off of said original loan, and the interest so credited shall be deducted from the interest to which the series in existence at the time of such reinvestment would otherwise have been entitled; and provided also, that the amount so paid off and reinvested shall not be regarded as receipts of the current quarter to be apportioned among the then existing series, the same having already formed part of the value of shares of the series which existed at the time of making the original loan; (4) the remainder of the receipts during the quarter, after deducting all expenses of the association, shall be apportioned among the several series in proportion to the amount of dues and interest hereinbefore directed to be credited to the respective series during said quarter. If at the time of issuing any new series there shall not be sufficient funds in the treasury to meet all payments that may be due to borrowers upon loans made prior to the issuing of such new series and to pay all debts of the association then due, then the amount that shall be required to meet said payments shall bear interest at the rate of G per cent per annum, and the amount of said interest shall thereafter be credited to all the series in existence at the time of such payments, to be apportioned among said series in proportion to the amount of dues paid by each series during the quarter that said payments shall be made, and the amount of said interest so credited shall be deducted from the interest to which the series which existed prior to the issuing of such new series would otherwise have been entitled. Should there |