47 Percent: How a Local Savings Club Put Three Olympia Homes on the Ground
The Olympia Building & Loan Association reports its first six months in business — 450 shares, a steep return for investors, and three new houses built around town.
Statement Showing Profits for First Six Months Business of the Olympia Building & Loan Association.
RECEIPTS. Premiums .................... $996.00 Interest .................... 104.00 Fines ....................... 13.75 Transfer Fees ............... 5.00 Total ....................... $1,118.75
DISBURSEMENTS. Salary ...................... 319.67 Rent ........................ 65.00 Interest on Overdraft ....... 3.75 Books, Stationery, etc. ..... 28.41 Advertising ................. 60.00 Notary Fees ................. 2.42 Net Profits ................. 634.50 Total ....................... $1,118.75
There are 450 shares in force at the present time; the net profit per share is therefore $1.41. The equated amount of the investment for the six months ending December 1st is $3. This shows a clear profit of 47 per cent.
In addition to this profit to the investors, Olympia has been benefited by the erection of three neat and tasty homes.
At the last meeting of the trustees it was decided to open up another series, and the books are now open to receive subscriptions to the same at the office of the secretary, room 8, Chilberg block.
“In addition to this profit to the investors, Olympia has been benefited by the erection of three neat and tasty homes.”
Building and loan associations were the 1890s answer to a familiar problem: how do ordinary people pool small sums to build a first home? Neighbors bought shares, the association lent the pooled capital back for construction, and investors took the return. Today's housing debates circle the same question of who can finance a house and who profits from the scarcity of them.
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