1893 - State Library Information Center

456 STATISTICS OF LABOR AND INDUSTRIES.the invitation of your president to say a few words on one branchoi this Bubjeet before you to-day.That the subject allotted to me is of vast importance I thinkno one will deny. As a matter of fact building associations havebeen ruined by improper methods of apportionment of profits.'Most of the methods in current use are extremely intricate, someare inequitable, and some entirely opposed to sound sense andgood arithmetic. Yet close at hand, but unregarded, there is anold rule of arithmetic, simple in operation, exact and equitablein application, and taking but little time to work out, which willperfectly and easily solve the problem. It is this old rule, andnot a new-fangled theory of my own, to which I propose directingyour attention.You will easily understand that before any rule can be appliedthe ground must be prepared. Only when a clear comprehension,and arrangement of the facts is obtained can a rule be properlyand successfully uaed; yet I do not generally find such a clearcomprehension of facts preceding the co-ordination of those facts;and in my opinion herein lies most of the mathematical troubles.of building associations.I am constantly told by building association officers that theirbusiness is BO different from mercantile business that rules whichapply to the one are impracticable for the other. This I totallydeny; and a little care in considering the facts will, I think, convinceyou that I am entirely right. In a mercantile business thecapital is invested in goods which are sold for profit, and afterdeducting expenses and losses the net profits arc divided amongthe partners in a previously-agreed proportion. If a partnerwishes to withdraw, or a new one desires to be admitted, thebooks are closed, losses deducted, and profits distributed, so thatthe withdrawing partner bears his share of the losses, or the newone is excluded from participation in the previously-made profits.Now, if you substitute the word " money " for the word " goods,"'you have an exact description of a building association. We maywithout disadvantage follow the comparison further. In a mercantilebusiness the capital is shown by au account which isopened for each partner. To this account is accredited his originalcapital, with any additions thereto, and its accretions by interestand profits; and it is charged with all withdrawals, the balance-