398 THE PEOPLE'S FARM AND STOCK CYCLOPEDIA. 



each year a dividend is struck, and the profits are divided pro 

 rata among the members. 



The association is governed by a board of directors chosen 

 from the stockholders, who serve without pay, and the only 

 salaried officer is the secretary, who keeps the books. The 

 money accumulating from dues and interest is put up at auction 

 and sold to the highest bidder, the amount bid being the pre- 

 mium above six per cent. For example, if a stockholder at a 

 sale of money should bid one cent and the money is knocked 

 down to him, he will pay seven per cent interest on the money 

 advanced to him until all his stock is paid up and canceled. To 

 do this, he can take the full time of eight hundred weeks from 

 the date of his stock, or at any time when he can get the 

 money he can pay it off and have his stock and mortgage 

 canceled. 



Each association has an attorney, whose business it is to see 

 that the property offered for security for the loan is free from 

 incumbrance and to draw the necessary writings, and for this 

 service a moderate fee is fixed by the association and paid by 

 the borrower. The attorney also sees that the buildings are 

 insured. When any one borrows money from the association, a 

 committee of members is appointed to examine the property 

 and report if it is ample security for the amount wanted on it, 

 and the attorney at once examines the record to see that the 

 title is clear. 



We will suppose that a man finds a piece of property which 

 will make him a home, which he can buy for $600.00. His 

 payment of dues would be 75 cents a week on this amount of 

 money, or $39.00 a year. His interest the first year will be on 

 the $600.00, and at seven per cent would amount to $42.00; 

 but the next year he will only pay interest on $561.00, and so 

 his interest will be reduced each year until it will finally cease 

 when the principal is all paid. There are many localities where 

 small tracts of land can be bought at from $50.00 to $100.00 per 

 acre and often for less, where a man could buy from two to six 

 acres and build a comfortable house on it, and his annual pay- 

 ments would not greatly exceed what he pays for rent for a 



