Paying for the Kingdom Hall

by JH 12 Replies latest jw friends

• 

  JH

  In the late 80's, our hall was built and it cost about 150,000$ canadian. Every month, we had to give a certain amount to pay for the hall. After 3 or 4 years, we still owed 135,000 for the hall. It just didn't figure out.

  Since the interest rate was very high in the late 80's, a brother told me that probably the elders put the money in a bank account and kept the interest.

  In other words, the elders gave to the Watchtower the right amount that we gave for paying the hall, but would have kept the interest money.

  After 6 or 7 years, finally the amount that we owed for the hall was coming down fast enough.

  Is this possible, or did we speculate?
• 

  Bendrr

  What was the monthly payment to the Empire?

  Doesn't the Empire charge a small interest rate like around 1 or 2 percent on KH's? What's their justification for charging interest at all? I thought the Bible taught otherwise. Don't they even say not to charge interest when one dub loans another money?

  Mike.
• 

  freedom96

  I thought it was just like any other loan from anywhere else. I think it is terrible that the WTS charged interest, made the congregation pay for it, and then the WTS still owned the property outright. Just not right. I think the WTS should have paid for it to begin with, as they have more than enough to pay for it, instead of all the poor witnesses who could not afford it. Worse case, they should not have charged interest.
• 

  JH

  The payments were about $800 a month per congregation. Three congregations were paying into it.

  Thats 2,400$ a month. About 30,000$ a year.

  We payed 30,000$ a year, and what we owed went down only 15,000 in 3 years???

  Edited by - JH on 21 January 2003 19:24:58
• 

  Bendrr

  What was the interest rate?
• 

  JH

  Unknown interest rate.

  What I meant was that if the interest rate was 15% at the time, if an elder placed 30,000$ a year at 15% And after a year, he kept the interest. Then he made money.$$$ for himself.

  As for the 30,000$ it went to the society, but not right away. I guess the elders took their time sending it to them. They made the money work for them a while.

  BTW, that congregation doesn't exist anymore.

  Edited by - JH on 21 January 2003 20:51:42
• 

  Nathan Natas

  I thought your problem was interesting, JH, so I used a spreadsheet to try some figures. Her's what I got:

  $150,000 amortized over 10 years at 15% per year would give you a monthly payment of $2420.02.After 3 years (36 payments) your balance would be $126,252.81 and after 4 years the balance would be $115,426.14.

  If it was a 12 year loan, an interest rate of 16.25% would give a monthly payment of $2,373.37, with a balance of $134,810.32 after 3 years and a balance of $127,724.22 after 4 years.

  If it was a 15 year loan, an interst rate of 17.75% would give you a monthly payment of $2388.70, with a balance of $142,281.00 after 3 years and $138,579.96 after four years.

  If it was a 30 year loan, an interest rate of 19% would give you a monthly payment of $2,383.34 with a balance of $149,613.99 after 3 years and $149,424.65 after four years.

  So my guess would be that it was a 12 year loan at something close to 16+% interest.

  How'd I do? By the way, you might be able to get a better deal from Tony Soprano and the guys in the MOB.

  Edited by - Nathan Natas on 21 January 2003 21:7:32
• 

  JH

  Nathan Natas

  Very Good

  Now tell us how much the elders kept in their pockets?

  Since we gave 30,000$ a year for about 11 years, that makes 330,000$ for a hall that costs 150,000$

  If the 180,000$ lost was placed at 15%, then......somebody got fat.

  Edited by - JH on 21 January 2003 21:7:41
• 

  Nathan Natas

  Shhhhh........... or you'll be sleeping with the "ancient worthies."

  If someone was getting 15% in the bank and paying a 16+% loan, they were LOSING money. I think we have a clearer vision of how the WTS got so wealthy - loaning congregations their own money at usurous rates.

  Armageddon is "just around the corner," yet they'll write loans for 10 or 12 year terms?

  Of course, they expect to survice, and the faithful Dubs expect to survive... I wonder what becomes of the loan?

  Is it paid with cucumbers, since the world's economy and monetary systems will have been completely destroyed?

  Is it "forgiven" as a leftover of this wicked system? If it would be forgiven after Armageddon, what's the justification for "beating the brothers" before Armageddon?

  Edited by - Nathan Natas on 21 January 2003 21:17:26
• 

  email

  One thing that I don't get... and I've always had this question...

  When we collect donations while going door to door (if you ever dared to ask)... we usually used to tell people it was to further our work world wide... to publish more literature... to build more halls... etc... the question is... if the individual congregations are paying for the halls out of their own pocket... PLUS the WTBTS is making money out of the interest on those loans... are they deceiving people? the WTBTS is NOT paying for the halls...

  Did you used to tell that to people too?...