MEETING THE MATURING OF A LARGE SERIES. To avoid the hoarding of money to pay at maturity the first series of 691 shares which would require $138,200 and would cause a great loss of interest to the association and the stockholders, as well as retard the maturing of the shares, the Board of Directors of the Lester Building and Loan Association of Philadelphia adopted the following resolutions: Resolved, That the secretary notify all of the stockholders of the first series that they can avail themselves of any one of the three following methods: 1. After the close of the books for the tenth year to cancel and receive the full book value of the shares (which you see is $181.50 each). 2. To keep paying until the shares have been declared matured by the Board of Directors and receive the $200 per share at the time. 3. To leave with the association on deposit the matured value of such shares and receive interest thereon at the rate of five and three-quarter per cent from the time such matured shares are payable until such time as the money is withdrawn. Provided, however, that such stockholder shall be required to give immediate notice of which plan he elects. And provided further that none of this money shall be payable until thirty days after the secretary receives written notice from the stockholder as to which option he exercises. The following blank, together with an explanatory circular, was sent to all shareholders in the first series: DEAR SIR: In accordance with the requirements of the Board of Directors you are hereby notified that I am the owner of book No....... for........shares in the first series of the Lester Building and Loan Association and that I elect to have 1. Book value paid to me at the.. 2. Shares paid when fully matured. ..meeting. 3. Matured shares value remain on deposit with the association at 54% interest subject to thirty days call. Name STRIKE OUT THE TWO OPTIONS NOT WANTED. JOSHUA S. BUTEN, Sec'y. SIX PER CENT THE BLACK MAN'S TEXT. "Persumverance," said the colored preacher, "I propose to discourse under three heads: Fustly, grab hold; nextly, hold on, and conclusively, nebber let go." From infancy to age sixty-seven, only four pennies a day, leaving out Sundays, Valentine's Day, St. Patrick's and other holidays, with six per cent compound interest will give $10,000. From the time Ephraim Huntington and others came to brighten Kanesville or Council Bluffs seventy years ago, two nickels or a dime a day with six per cent compound interest would amount to $30,000. Suppose a traveler along the Mormon trail in 1846 upon viewing the magnificent prospect for a great city upon the western border of Iowa had said: "Let Brigham have his harem beside the salted sea; one wife and Council Bluffs will make a Zion for me." Then putting aside day by day, again excluding Sundays and holidays, only fifty cents and keeping it earning six per cent compound interest in this Anno Domini, 1921, he could have built a $200,000 monumental building to add to the charm of this terrestial paradise. It is hard to beat six per cent and perseverance. We will lend a metal safe to accumulate your pennies, nickels, dimes and dollars. Council Bluffs (Iowa) Mutual Building and Loan Association, Wm. J. Leverett, secretary. A BETTER NEW YEAR Full of faith and hope and the charity which begins but does not end, at home. you start in the right way to own a home. Money blessings multiply with interest on saved cash. American labor is paid when this money is used in the building of homes. Good times come. The New Year may bring you a new home, in the safe, easy and sure way by which four thousand families through The Buckeye Savings and Loan Company of Bellaire, Ohio, are paying rent to themselves. Your family ought to be in that number, and will be if you say the word. There is a saving book for you, free for the asking. W. G. MCCLAIN, THE BUCKEYE WORKING IN A DARK HIVE. To some people there are those of us who appear to be bees, working in a dark hive. They have no idea of the care, anxiety, frets and disappointments that come with each day; working out the wrong things and working in the better, truer things that build up the soul's plans, not alone for personal gain and pleasure, but for a finer city and a nobler citizenship. Think it over and watch me help the little fellows to make good. I'm the safe and sane Oneonta (N. Y.) Building and Loan Association. Walter Scott, president; W. Irving Bolton, secretary. TWO BOOKS OF REAL MERIT. The Real Estate Educator F. M. PAYNE. (New Edition 1920.) A repository of useful information for ready reference, especially designed for Real Estate Investors, Operators, Builders, Contractors, Agents and Business Men. What you NEED to know, what you OUGHT to know. The New 1920 Edition contains The Federal Farm Loan System, How to Appraise Property, How to Advertise Real Estate, HOW TO SELL REAL ESTATE, The Torrens System, Available U. S. Lands for Homesteads, The A B C's of Realty and other useful information. 208 pages, cloth, $2.00 postpaid. The Vest Pocket Lawyer This elegant work just published contains the kind of information most people want. You can know the law-what to do what to avoid. It is a daily guide-a manual of reference for the business man-the law student-the justice of the peace-the notary publicthe farmer, clergyman, merchant, banker, doctor. 360 pages printed on bible paper. Cloth, $1.50. Leather, gilt, $2.00 postpaid. American Building Association News Co. 15 West Sixth St., Cincinnati, Ohio ARE YOU THE BOSS? SURE, I'M THE BOSS. Everyone likes to be a boss. It feels good to have someone working for us And the funny thing about it is that every fellow could be in the boss class If he only had sense enough to put some of the iron men from his pay envelope to work for him. How long have you been working? What have you to show for it? Are you just breaking even or are you getting ahead? Start bossing your money today. Plan a program for the use of your money and get ahead in the world. You work hard for your dollars-make them work hard for you. When a man and his dollars work together they get prosperity and happiness. STATE MUTUAL BUILDING AND LOAN ASSOCIATION, Los Angeles, Cal. SHOULD BE AVAILABLE AT ALL TIMES. Your or Association's Name Stamped in Gold on Cover. To the American Building Association News, 15 W. Sixth St., Cincinnati, O. Forward one black leather Binder as described to "The American Home, the Safeguard of American Liberties" The American Building Association News A Newspaper devoted to the interests of Building, Loan OFFICIAL ORGAN UNITED STATES LEAQUE. 18 WEST SIXTH ST., CINCINNATI. S. W. COR. ADAMS AND DESPLAINES, CHICAGO. WEST COAST DEPARTMENT: 401 VAN NUYS BUILDING, LOS ANGELES, CAL. SUBSCRIPTION, $3.00 PER ANNUM. CANADIAN AND FOREIGN, $4.00 30 CENTS A COPY. Entered as Second Class Matter at the Post Office at Cincinnati, O.. SINCE 1880 THE RECOGNIZED AUTHORITY ON BUILDING ASSOCIATION MATTERS. Vol. XLII. FEBRUARY, 1922 No. 2 Ruling of the U. S. Department of Internal Revenue in re $300.00 Tax Exemption. TH HE Federal Legislative Committee of the United States League, through its chairman, Charles O'Connor Hennessy, has issued the following circular, announcing the recent informal ruling of the Internal Revenue Department, holding the exemption to apply annually, as briefly stated in the last issue of the NEWS: A recent informal ruling of the U. S. Department of Internal Revenue makes it clear that the special income tax exemption in the new Federal Revenue Act for the benefit of investors in the shares of domestic building and loan associations was intended by Congress to be an annual exemption of income up to $300. The exemption privilege is for five years, commencing January 1st, 1922, ending December 31, 1926. The Acting Commissioner of Internal Revenue, in response to an inquiry regarding the construction of subdivision 10 of Section 213 of the revenue act of 1921, has written Hon. Nicholas Longworth, a member of the Ways and Means Committee of the House of Representatives, as follows: "I received your letter of January 9, 1922, in which you ask how it is intended by the department that subdivision (10) of Section 213 shall be construed. The pertinent provisions of Section 213 read as follows: 'That for the purposes of this title (except as otherwise provided in Section 233) the term "gross income" (b) Does not include the following items which shall be exempt from taxation under this title: (10) So much of the amount received by an individual after December 31, 1921, and before January 1, 1927, as dividends or interest from domestic building and loan associations, operated exclusively for the purpose of making loans to members, as does not exceed $300.' Under the construction placed upon subdivision (10) by the department, the limit of $300 applies to the amount received in any one year for the years 1922 to 1926, inclusive." The committee of the United States League, which, in the face of powerful opposition, waged the long campaign for this exemption, feel highly gratified to be able to announce the final outcome of their labors. In their formal report to the League, as to this and other important matters of federal legislation, the committee will endeavor to acknowledge recognition of the helpful aid received from friends at Washington and elsewhere. The committee is especially appreciative of the aid, financial and otherwise, given by the associations to whom this circular letter is addressed. We thank you! Finally, let us hope that the gentlemen in public life, and those outside of it who labored to secure this and other favors to building and loan associations in the tax laws of the country, may find their labors amply justified by the results that we may be able to point to during the next five years. May our associations grow rapidly greater in membership and in savings funds dedicated exclusively to the high purpose of solving the housing problem by providing the means whereby every worthy home-seeker may procure a home. AS The Editor's Dates in the Southwest. S referred to in our last issue, the editor of the AMERICAN BUILDING ASSOCIATION NEWS, Henry S. Rosenthal, is making a tour of the western coast, renewing old acquaintances and conferring with the building association leaders of that section. On his return trip home in the latter part of March he hopes to meet with some of the southwestern representatives. ments have been made for meetings as follows: Oklahoma City, March 22, noon luncheon. Kansas City, March 23, evening dinner. St. Louis, March 24, evening dinner. Arrange FOR what doth it profit a man if he hath seen the castles of many kingdoms, and hath not a cottage of his own? |