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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 x .06218 ==$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: Dnes paid on one share the first year.

$12.00 Interest on this amount at end of second year.

.72 Dues paid during the second year ....

12.00 Interest on the dues paid during the second year.

.27

Value of the share at the end of the second year...

24.99 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.

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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 on 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 duo each share of first series, on loans made prier to issuing the second series,

$31) --- 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, previons value, +($0.15 + $0.15), interest, + $0.40, profit, + $12, dues, = $25. 10, valuo of a share of the second series.

$0.15, interest, + $0.40, profit, + $12, dues, = $12.55, value of a share of the third series.

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 amountof 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 there. after 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 6 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

be any funds in the treasury remaining uninvested at the time of the issuing of any new series above the amount of debts of the association then outstanding and not required to meet payments that may be due to borrowers upon any loans made prior to the issuing of said new series, the series which were in existence prior to the issuing of such new series shall be entitled to interest from the time of investment of said money at the rate of 6 per cent per annum upon the net amount of said funds, said interest to be apportioned among said last mentioned series in the same manner as the interest upon loans is hereinbefore directed to be apportioned, and the amount of said interest shall be deducted from the interest to which the series in existence at the time such funds shall be invested would otherwise have been entitled.

Should any shares be redeemed or cancelled, the money paid for such redemption or cancellation shall be deducted from the accumulations of the current quarter belonging to the series to which said shares so redeemed or cancelled belonged, and the value of said shares shall be credited to the remaining shares of said series in equal proportions.

Should any loss occur on any loan, the amount of such loss shall be deducted from the value of the shares of the several series which were in existence at the time of making said loan, to be apportioned among said series in the same manner as the interest on said loan is herein. before directed to be apportioned.

The number of associations operating under this plan is as follows: LOCAL.-New Jersey, 2; total local associations, 2.

PLAN 15.

The profits are distributed annually on the basis of each $10 paid into the association. A member who has paid in $100 receives ten parts; one who has paid in $10 receives four parts; one who has paid in $52 receives five parts, etc., the excess of dollars over a multiple of $10 not participating in the profits.

The number of associations operating under this plan is as follows: LOCAL.-Maryland, 2; total local associations, 2.

PLAN 16.

Associations using this plan declare a semi-annual dividend, but shares less than a year old are not allowed any part of the profits.

The rate per cent of profit is ascertained by dividing the net profits by the amount of dues standing to the credit of the shares at the time of the last report, plus the profits that were credited six months previous to the last report.

ILLUSTRATION.

Total dues paid up to last report .....
Total profit credited six months previous to last report

$18, 120 1,240

Then: $968 -- ($18,120+ $1,240) - 5, rate per cent of profit. Total dues paid on a share

$36.00 Dnes paid on a share at the last report.

30.00 Profit eredited on a share at last report

3.40 Profit credited on a share six months previous to last report ...

2.50 $30 + $2.50 =$32.50, amount per share entitled to dividend. $32.50 x .05 = $1.62, dividend per share for the term.

$36 --- $3.40 +$1.62 = $41.02, present value of a share. The number of associations operating under this plan is as follows: LOCAL.-Maryland, 1; total local associations, 1.

PLAN 17. 1. Divide the net profits for the term by the total number of shares issued since the organization of the association.

2. Multiply the quotient by the total number of shares issued in each series, for the profit of each series.

3. Divide the profit of each series by the number of shares in force in each series, for the profit per share.

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Total...... 2,000 1, 300
Profit made during the term, $1,500.

$1,500 – 2,000 = $0.75, profit per share issued.
$0.75 x 500 = $375, the first series' share of the profit.
$0.75 X 600 $450, the second series' share of the profit.
$0.75 X 400 $300, the third series' share of the profit.
$0.75 X 500: $375, the fourth series' share of the profit.
$375 400 = $0.94, profit of a share of the first series.
$150 350 =$1.29, profit of a share of the second series.
$300 250 = $1. 20, profit of a share of the third series.

$375 = 300 = $1.25, profit of a share of the fourth series. The number of associations operating under this plan is as follows: LOCAL.-Wisconsin, 1; total local associations, 1.

PLAN 18. 1. To the value of the free shares as declared by the last report add one-half the dues paid in on the free shares during the term, for the dividend bearing capital of the free shares.

2. To the value of the shares borrowed on, as declared by the last report, add the interest paid in up to the beginning of the term and onehalf the dues and interest paid in on the borrowed shares during the terin, for the dividend bearing capital of the shares borrowed on.

3. Add the dividend bearing capital of the free shares to the dividend bearing capital of the shares borrowed on, and divide the sum into the profits of the term, for the rate per cent of profit.

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