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 $40 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 .. Dnes paid on a share at the last report Profit credited on a share at last report Profit credited on a share six months previous to last report. $30+ $2.50 $32.50, amount per share entitled to dividend. = $32.50 × .05 = $1.62, dividend per share for the term. $36.00 30.00 3.40 2.50 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. $1,500 - 2,000 $0.75 X 500 $0.75 X 600 400 $450 350 $300 $375 ÷ = $0. 75, profit per share issued. $375, the first series' share of the profit. $375, the fourth series' share of the profit. $1. 29, profit of a share of the second series. 250=$1.20, profit of a share of the third series. 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 term, 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. ILLUSTRATION. Suppose the dues to be 50 cents a share per month; the rate of interest paid by borrowers, 8 per cent; maturing value of shares, $100; the rate of earnings, 7 per cent; and profits divided annually. Amount on which dividend is reckoned the second year. 9.21 First year's dividend at 7 per cent on half of dues and interest. $0.49 6.00 Value of a share borrowed on at end of first year. 6.49 8.00 Add one-half the dues and interest paid the second year.. 7.00 Amount on which dividend is reckoned the second year. 21.49 $1.50 Value at end of first year... 6.49 Second year's dues.... 6.00 Value of a share borrowed on at end of second year... 13.99 The number of associations operating under this plan is as follows: LOCAL.-Missouri, 1; total local associations, 1. PLAN 19. 1. Give a fixed rate of interest to the various series in proportion to the amount of invested capital as determined at the previous month's apportionment. 2. Give the profits from withdrawals, premiums, and fines, etc., to the series which have furnished the money from which the profits have been made, taking into consideration, with each item of profit, the amount of money furnished by each series and the length of time for which it is furnished. This rule is applicable only to associatious organized on the serial plan, time limit of series, gross premium fully earned, and monthly ILLUSTRATION. Let there be three series of 1,000 shares cach, series A being 24 months old, series B 12 months old, and series C just issued. Let the invested capital at the beginning of the month be $33,000 for series A and $15,000 for series B. Let 108 months be the length of time each series is to run. Fines on dues in arrears are credited to the respective series in which the dues were in arrears, as dues. Let the interest paid at end of month on invested capital, together with fines Let dues and fines paid on dues in arrears in series A at end of month be.... $320 1,000 1,000 1,000 3,320 Total cash paid during the month (including interest on capital) Let $850 of this cash be used in withdrawing stock, as follows: Book value of 25 shares withdrawn from series A, at $33-$825; 16 shares from series B, at $15-$240 Cash paid for the same by the association, at $26 650; for withdrawals from series B at $12.50-200 The profit made from withdrawals or $215 in all. 175 40 At the end of the month series A has yet to run 83 months; series B, 95 months; and series C, 107 months. Earned gross premium for loan of 83 months, stock of series A borrowed on, loan of $1,000 = $210. Earned gross premium for loan of 95 months, stock of series B borrowed on, loan of $1,000 = $240. Earned gross premium for loan of 107 months, stock of series C borrowed on, loan of $1,000 = $270. For simplicity of illustration, the matter of expense is not considered, but the expense is distributed in proportion to the total cash received during the month. The interest and fines on interest in arrears received during the month, and amounting to $320, are distributed to series A and B in proportion to the invested capital of each series at the beginning of the month, series A thus receiving $220, and series B, $100. The cash contributions during the month were, therefore, as follows: By series A $1,000 + $220 = $1,220. By series B $1,000 + $100 = $1,100. The withdrawal profit, amounting to $215, is then divided in proportion to the monthly contributions of each series, which gives a withdrawal profit of $79 to series A, $71 to series B, and $65 to series C. Profits arising from premiums are distributed thus: 1. For the loan of $1,000 for 83 months with stock borrowed on from series A, a gross premium of $210 was paid. The money furnished for this loan by the various series all remains for 83 months, so that in this case the question of time is eliminated and the distribution of the premium is the same as for profits on withdrawals. This gives $77, as series A's share of series A's premium; $70, as series B's share of series A's premium; and $63, as series C's share of series A's premium. 2. For the loan of $1,000 for 95 months with stock borrowed on from series B, a gross premium of $240 was paid. The money furnished by series A for this loan remains only 83 months (as series A matures then), while the money furnished by series B and C remains for 95 months; therefore, $1,220 for 83 months = $101,260, series A's investment for one month. $300,760, total investment for one month. The premium of $240 is then apportioned as follows: $300,760 : $101,260 :: $240: $81, series A's share of B's premium. 3. For the loan of $1,000 for 107 months with stock borrowed on from series C, a gross premium of $270 was paid. The money furnished by series A remains only 83 months, that furnished by series B, 95 months, and that by series C, 107 months: then, as before, $1,220 for 83 months-$101,260, series A's investment for one month. $1,100 for 95 months $104,500, series B's investment for one month. $107,000, series C's investment for one month. $312,760, total investment for one mouth. $1,000 for 107 months The premium of $270 is then apportioned as follows: $312,760 : $101,260 :: $270 : $88, series A's share of C's premium. Profits from premiums on loans of series A, 83 months....... Value of series at end of month ... Number of shares in force at end of month Value per share 825 32, 175 220 14,760 nothing 100 nothing 1,000 1,000 1,000 79 71 The number of associations operating under this plan is as follows: LOCAL.—Colorado, 1; total local associations, 1. PLAN 20. From the net receipts for each series from the beginning, as shown at the previous apportionment, deduct the amount of withdrawals from the series during the term, and to this remainder add dues and entrance fees received for the series during the term. To find each series' share of interest and interest share of premium: First, find the dues' share of premium, or what profit has been made on loaning out dnes at a premium; and, second, the interest share of premium, or what profit has been made by loaning out interest received at a premium, by the following proportions: The amount of dues and interest received during the term is to the premium received during the term, as the amount of dues received during the term is to the dues' share of the premium; the amount of dues and interest received during the term is to the premium received during the term, as the interest received during the term is to the interest share of the premium. Add the interest share of the premium to the interest received dur |