Page images
PDF
EPUB

the series: The amount of total receipts since beginning is to the amount of interest received and interest share of premium for the term, as the amount of A's receipts since beginning is to A's share of interest and interest premium; treating each series, B, C, etc., in the same way, to find their respective shares.

Add dues' share of premium and fines received during the term and divide among the series, as follows: The amount of dues received by all series during term is to the dues' share of premium and fines received during the term, as the amount of A's dues received during the term is to A's share; treating each series, B, C, etc., in the same way, to find their respective shares.

Expenses are divided among the series by the following proportions: The amount of total receipts from dues, interest, and interest share of premium during the term is to the total expense during the term, as the amount of A's receipts from dues, interest, and interest share of premium for the term is to A's share of expense; treating each series, B, C, etc., in the same manner.

Each series' net gain since last apportionment of profits is found by adding their respective shares of interest and interest share of premium and their dues share of premium and fines together, and taking from this result their share of expense and whatever incidentals there may be, such as interest on withdrawals, etc. To this remainder add dues and entrance fees received during the term and each series' share of the profits for the value of the series.

The number of associations operating under this plan is as follows: LOCAL.-Colorado, 1; total local associations, 1.

PLAN 21.

1. A fixed rate of interest is given upon the value of the shares as declared by the last report plus the equated amount of dues paid during the term.

2. Profits arising from withdrawals are divided equally among the shares of the respective series from which the withdrawals took place. 3. The remainder of the profits is divided equally among all the shares.

To illustrate the rule, suppose that at the end of the second year of the existence of an association there were two series in force; first series, 100 shares, present value, $26; second series, 200 shares, present value, $12.40. At the beginning of the third year another series of 150 shares was issued. During the year a general profit of $569.50 was made, and, in addition, a withdrawal profit of $15 in the first series and $12 in the second series.

ILLUSTRATION.

$26.00, previous value, +$6.50, equated amount of dues, = $32.50, amount per share of first series entitled to interest.

$12.40, previous value, +$6.50, equated amount of dues,

share of second series entitled to interest.

$6.50, equated amount of dues,

terest.

$32.50 x .06
$18.90.06
$6.50 X .06
$1.95 × 100 =
$1.13 × 200
$0.39 × 150

$569.50 $90.00

[blocks in formation]

amount per share of third series entitled to in

= $1.95, interest on one share of the first series.
$1.13, interest on one share of the second series.

= $0.39, interest on one share of the third series.
$195.00, interest belonging to the first series.
$226.00, interest belonging to the second series.
$58.50, interest belonging to the third series.

$479.50, interest belonging to all the series.
$479.50 $90.00, net profits due all the series.
450, shares in all series, = $0.20, profit per share.

$15.00100, shares in first series, $0.15, withdrawal profit per share in first series.

$12.00 200, shares in second series

-

= $0.06, withdrawal profit per share in second series.

$26.00 $1.95 + $0.20 + $0.15 + $12.00 $12.40

$40.30, value of a share in first series.

$1.13 + $0.20 + $0.06 + $12.00 = $25.79, value of a share in second series. $0.39 + $0.20 + $12.00 = $12.59, value of a share in third series.

The number of associations operating under this plan is as follows: LOCAL.-Louisiana, 1; total local associations, 1.

PLAN 22.

1. Multiply the total amount of interest collected by the average rate paid for premiums during the year and add the product to the interest collected.

2. Divide this sum among the shares in force in proportion to their previous values and the average amount of dues paid in during the year.

3. Deduct the premiums already apportioned from the total amount of premiums collected during the year and divide the remainder in proportion to the dues paid in during the year.

4. Divide the gross losses in proportion to the previous values of the shares and the average amount of dues paid in during the year.

5. From the sum of the profits gained on one share deduct the loss on the share for the net profits of one share.

The number of associations operating under this plan is as follows: LOCAL California, 1; total local associations, 1.

PLAN 23.

This rule applies to some associations whose various series are divided into separate classes. For instance, the monthly series issued during the first year form class A; the monthly series issued during the second year form class B, etc.

The rule is as follows:

1. Profits arising from fines and transfer fees are credited to the shares in the class in which they occur.

2. Interest and premiums are distributed to the different classes in

3. The total profits apportioned to each class are divided by the amount of dues paid into the loan fund for the rate which is applied upon the dues standing to the credit of each share.

The number of associations operating under this plan is as follows: LOCAL. Illinois, 1; total local associations, 1.

PLAN 24.

1. Multiply the total value of all the shares in force as declared by the last report plus the dues paid in during the term by half the time of investment for the dividend bearing capital.

2. Divide the net profits by the dividend bearing capital, for the rate per cent of profit.

3. The dividend bearing capital of a share multiplied by this rate gives the profit per share.

The number of associations operating under this plan is as follows: LOCAL.-Illinois, 1; total local associations, 1.

PLAN 25.

The net profits for the first six months are assigned to the first series; the net profits of the second six months are divided between the first and second series, giving 19 parts to the former and 7 parts to the latter; for the third six months the division is made by giving to the first series 31 parts, to the second series 19 parts, and to the third series 7 parts; and for any period of six months the number of parts assigned to any series is 12 units greater than the number assigned to the same series the preceding six months, but no series which has not been in existence for a full period of six months is entitled to share in the distribution.

The number of associations operating under this plan is as follows: LOCAL.-Illinois, 1; total local associations, 1.

CHAPTER V.

WITHDRAWAL PLANS.

« PreviousContinue »