There are various plans of starting and arranging building and savings associations, which differ one from another only in matters of detail. The price of the share may be two, three, or four hundred dollars, or any other sum. The amounts paid in a week vary from ten cents to any larger sum. In the past, most associations have been started on the series plan, which is defined as follows by Henry S. Rosenthal of Cincinnati in his "Manual for Building Associations:"--
"In an association, organized on the terminating plan, all the stock is issued as of one date. A terminating association is organized on the presumption that all the stock will be subscribed for at the open meetings. This, however, is seldom done. The consequence is, that shares sold after the first meetings must be sold at such prices as to make them equal in value to those already issued. To do this a sum must be charged equal to the amount already paid in in instalments by the subscribers to the original shares. If the regular dues on shares should be one dollar per week, a person subscribing for a share after the association has been running ten weeks must pay ten dollars for the share. In like manner, if the association has been running for a longer period, he must pay an additional dollar for each additional week. Moreover, if he does not subscribe until after the profits have been declared, he must pay such an additional amount on his share as will correspond to the earnings of the original shares up to that time. The same rule holds through the entire existence of the association, each year making it more difficult to enter. After an association, organized on this plan, has run for a time, it is impossible for many persons, who would gladly become members, to raise a sufficient sum of money to pay up the back instalments, the initiation fees, the accrued profits, and other incidental expenses. In its practical workings, therefore, an association organized on this plan is not well adapted to meet the conditions of that particular class of persons who most need such an organization, and are most likely to be benefited by it.
"In a terminating association all the shares are, of course, at all times of equal value. Whenever the total amounts of the dues paid in and of accumulated profits equal the par value of all the shares, the association terminates and its affairs must be wound up. Each stockholder who has not borrowed his money in advance receives the full value of his shares. To those who have secured their money in advance, their mortgages, cancelled and receipted in full, are returned.