1893 - State Library Information Center

CO-OPERATIVE BUILDING AND LOAN ASSOCIATIONS. 181The Mutual Land and Home Company is formed for the purpose of providingall who become members of it* with comfortable homes amid congenialsurroundings at the lowest possible cost.The company, under the supervision of the board of incorporators, is subdividedinto groups of one hundred and fifty members each, each group beingpermitted to establish for itself such modification of the following commonplan of operations as may nofc injuriously affect the general interests of thecompany :Every member on joining pays the sum of two dollars as first iDstallment onhis entrance fee. As soon as bin group is completed the remainder of his entrancefee often dollars becomes payable in four monthly installments of twodollars each. He then also contributes regularly the sum of one dollar perweek.As soon as the entrance fees and dues foot up the needed amount a plot ofunimproved land, to be selected by the members, in the suburbs of Newark, orany other city where groups may be located, will be purchased, large enoughto cut up into at least one hundred and fifty ordinary sized lots. As soonthereafter as fifteen hundred dollars, or some other fixed sum to be determinedby the members, again accumulate in the treasury, those who desire a housestep forward, lots are cast, and the winner selects from eight or ten standardplans adopted by the group the kind of house he wishes to have built. Thisis erected, the winner moves in, and until the association winds up pays anequitable monthly rental into VM treasury. This increases the income of theassociation. A second allotment is made in thesame way when the fixed amounthas been again reached; and BO accumulation from dues and rents, allotments,erection of houses go on at an ever increasing rate until one hundred and fiftyhouses have been built. The company then gives each member a full, cleardeed to his house and lot and the group goes out of existence.Under a fair estimate the lifetime of such an association, where no specialeffort is made to hasten its maturing, figures out to about twelve or fourteenyears. The association is, however, free to speed maturity by any plan that itmay consider safe and desirable. Thus, by holding the corner lots until theend of, say, the ninth or tenth year, enough may be realized by a direct sale toprovide the remaining members with houses at once and so terminate theassociation.It being a fraternal association, the interest of one is the concern of all.Should a member desire to leave he gets the value of his interest in the association,what he has paid in less his just share of the expense, and plus his justshare of whatever profit may have accrued. Should he have taken a house, hecan transfer the house to anyone acceptable to the asssociation.The standard plans of the company are such as provide houses at a cost closeto fifteen hundred dollars. Should a member desire a larger or costlier house,he is left free in his choice, but it will be necessary for him to secure the additionalamount needed himself, as well as have his plan approved by the association.There may be some who may not specially want a house and yet woulddesire to join such an association for the purpose of profitably investing theirmoney. For such an excellent opportunity is afforded.