PLAN No. 357. CLUB PLAN FOR HOUSEHOLD GOODS
A man who had been in several suit clubs, where each member pays in $1 a week for a certain number of weeks, and a suit is drawn every week, thus getting it for whatever he had paid in, be it $1, $10, or $40, wondered why the same plan wouldn’t work just as well with sewing machines, stoves, ranges, carpets, rugs, etc., as with suits. After thinking it over he concluded it would. Then he started to work out a plan.
Having about $500 of his own, he rented a small store on a side street, fitted it up with a desk, and a few chairs, and then going to a wholesale furnishing house, he bought one of each of the articles above mentioned, the retail price of which was $50. He paid $100 down, and the balance he agreed to pay in installments of $50 per month. His discount on the articles was 25%. These he had taken to his store room and displayed to the best possible advantage.
Then he proceeded to secure 100 members of the club, each to pay $1 per week for 52 weeks, one member to drop out each week. These payments met the installments on the goods as they became due, and left a comfortable balance besides, which was duly deposited in a bank. Each month one member was awarded his or her choice of the articles bought, and another was bought to replace it on the floor of the club room.
Many states now have statutes against drawing of any kind so the statutes of your state should be first considered.