Rate of profit during 1890 on average amount invested, 8 per cent. on all shares. Ratio of expense to income, % of one per cent. FOURTH ANNUAL STATEMENT FOR THE YEAR ENDING MARCH 25TH, 1891. The receipts and disbursements for the year have been as follows: Cash balance-Amount held pending completion of loans.. The association has the following assets and liabilities: 1,365 82 $44,519 68 6,139 20 2,463 07 $53,121 95 Bonds and mortgages........ ASSETS. Cash-Amount held pending completion of loans................. Balance in hand........ Temporary loans....... Accrued premiums on uncompleted loans... Undivided profits of 1890..... LIABILITIES. Savings fund, balance due depositors....... Amount to credit of shareholders Value of shares brought forward from '90... $56,846 58 Five per cent. interest on same......... ... Amount paid in as dues......... $36,577 00 2,787 78 $89,040 00 6,139 20 2,463 07 760 00 340 80 18 34 283 50 $99,044 91 $1,012 98 Interest on savings fund deposits (to May 21st, 1890)....... $6,214 71 $10 47 $90 81 Net earnings for the year, $6,123.90, divided as follows: Five per cent. on balance brought forward (* Shows a profit on the year's business of a little over 94 per cent.) SAVINGS FUND. This fund is discontinued and no deposits have been received since May 21st, 1890. Balance due depositors at last report.. Deposits...... Interest on balance (to May 21st, 1890)... Drafts............ Transfers for dues.... $3,398 66 Balance due depositors.......... 1,012 98 $4,304 77 EXPENSE fund. [Followed by detailed statement of loan account, showing number of pledged shares, amount and rate of premium for each loan outstanding or uncompleted] APPENDIX III. BUILDING AND LOAN ASSOCIATION LEAGUE OF NEW JERSEY. Papers Read at the First Annual Meeting, at the State House, Trenton, January 21st, 1892. THE WORK AND AIMS OF THE LEAGUE.* Building and loan associations are doing well, it is true; but improved methods of doing business are in use in this and other States: more equitable plans for charging premiums, fines; better ideas in regard to withdrawals, auditing and other details of management. Great ignorance, or, rather, lack of information, exists on the part of boards of directors respecting these matters. There is an all-pervading feeling of satisfaction with existing methods arising from lack of knowledge of better ones. As an instance of this, I will mention this fact probably, Dexter's and Brook's rules for dividing profits under the serial plan are among the best in use. Judging from the letters I have received from all parts of New Jersey, not over a dozen associations in this State had ever heard of these rules. The same applies to many other details of management. Building and loan associations are successful notwithstanding this limited knowledge on the part of boards of directors, because (1) there is in this form of co-operation the inherent property of success; and (2) because the affairs of the associations are conducted by publicspirited, intelligent, responsible business men who work for their neighbors in this capacity for nothing, and consider it an honor to be selected for such a position of trust. It will be the province of the League to make known to its members all these improved details of management; to advise, inform and *Extracts from the report of the secretary, Prof. George Forman. of Newark, N. J., to the first annual meeting of the New Jersey Building and Loan Association League. suggest; never to dictate. The amount of literature bearing upon building and loan associations is very limited; the mathematics of the subject is very little understood; many erratic and inequitable methods exist; gross injustice is done under some plans; and all because this great co-operative question has never received the study and attention that its importance warrants. It is the design of the League to enlighten the directors and stockholders of building and loan associations, so that they may know more about these institutions and thus see the injustice they do their stockholders by faulty and ill-considered practices. Building and loan associations are increasing in number very rapidly. Their success, their simple plan of operation, their practicability, and their economic importance have caused them to be deservedly popular. But let a suspicion be aroused among the people that there is mismanagement or ignorance on the part of the officers, and a collapse will come which would be a great and disastrous misfortune. The increase of the "nationals," and the apparent similarity of their plan, their utter unreliability, and the stigma that this casts on local associations, is a serious feature of the building and loan association problem. As to the actual work of the League during the past year, I have the following facts to report: Immediately after the organization of the League, circular letters were sent to every association in the State, setting, forth the objects and aims of the organization. Eighty-eight associations have up to this date joined the League, among this number being some of the largest, best-managed and progressive associations in the State. This is nearly one-third of the whole number in the State. No League in America can show so large a proportion of members. Ohio has a League with about one-fifth of its associations members; Louisiana, one-fourth; New York State, one-tenth; Pennsylvania, one-fourth ; and so on. This speaks well for the enterprise of our New Jersey associations. In March, 1891, an unsuccessful effort was made by the League to secure the amendment or repeal of the 1890 lien law act, but as the League then had few members no combined onslaught on the Legislature could be made.* The act was modified materially by the Legislature at the session of 1892. |