Building Associations of Connecticut Adn Other States Examined, with a Review of the New York and Massachusetts Systems (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1856 Excerpt: ... tendency seem to demand. We shall number them 1, 2, 3, &c, in the same order as presented in the report, and if, after passing from any institution to one beyond it, we shall have occasion to allude to the former, we shall for brevity often refer to it by its number rather than its name. 1. ANaONIA SAVINGS BANK. This institution belongs to the second class, as classified in Chapter II. Although it would seem that they are doing a legitimate business, as under the law authorizing building associations, yet, unless they have sustained losses, it would appear that with the rate of bonus they have taken, they could make larger dividends than they reported to the Commissioners. We have therefore, in estimating the dividends which the different institutions may reasonably hope for, supposed that this will make 16 per cent, annually, instead of 11 percent, as reported by the Commissioners. This institution will be liable to forfeit the bonus and interest which had been paid in prior to the decision of the court in respect to monthly bonus, if the borrowers see fit to take advantage of the decision. The gain in this institution on a loan of $1,000 is about $1,800 more than by the model system, with a bonus of 1-4 per cent. 2. BRIDGEPORT MUTUAL SAVINGS BANK AND BUILDING ASSOCIATION. This is an institution of the first class, having an advance bonus of 25 per cent., which is equivalent to a monthly bonus of 1-3 per cent. It reported to the Bank Commissioners a dividend of 52 per cent, annually, which, incredible as it appears, is by no means extravagant for an institution which takes an advance bonus of even 15 per cent., and divides it as fast as it is received. It has illustrated the legitimate workings of that system of dividing, and it will by and by further...