1893 - State Library Information Center

CO-OPERATIVE BUILDING AND LOAN ASSOCIATIONS. 169These associations certainly seem to be good investments forfree-share owners who make no defaults in their payments andremain to maturity. What part of the profits a shareholder whowithdraws should receive, to what extent one who defaults in hisinstallments should be punished by fines or forfeitures, are questionsof practical management that gauge the liberality of anassociation. Forfeitures, too small withdrawal allowances andtoo heavy fines, are not co-operative any more than high interestand premium rates for the borrowers. Lapsed shares are hardlya feature of our strictly local associations; but a less liberalspirit is shown in the way of fines or paying off those who dropout. This subject has been discussed too frequently in theBureau reports to need repetition here, except as regards that offines. The total amount of fines paid during the year wasreturned by 225 associations reporting at $38,033, which is theannual interest, at 6 per cent., on $633,900. This leaves out olconsideration the 52 associations from which the items of fineswere not separately reported, and which held about one-sixth ofthe total number of shares outstanding at the close of the year.Making allowance for these non-reporting associations, the totalamount of fines received was not less than $45,000* for the year.This would be nearly one-half of one per cent, of the dues paidin. The amount of fines of associations reporting, by counties,was as followp :*The fines in arrears also amounted to $14,154, as may be seen below.12