THE COLONIAL BUILDING COMPANY.

Evening Star, Issue 3777, 2 April 1875, Page 2

THE COLONIAL BUILDING COMPANY.

To the Editor.

After due - consideration ef the prospectus of the above Company, I find that it contains features quite foreign to building societies existing, that it promises security, and according to their plan of business remunerato shareholders ; whilst borrowers Will have the advantage of getting their loans on equitable terms, and have, if desired, opportumty of repaying the atnount borrowed in 1 weekly,- monthly,' 'quarterly, half-yearly,'or yearly instalments, both capital and interest included, and, apparently, if the amount be paid previous to the expiration of the term agreed bn, they will receive a larger rebate of interest than can be allowed by existing buildmgsocieties. The difference of this company la that it will be registered under the Joint Stock Companies Act instead of the Building Society's Act and this may not" be universally understood, therefore a few words, on this point will not be °f place. Rules orice registered under the Building Societies’ Act cannot be .altered without considerable delay, expense, and inconvenienoe: whereas in a company registered under the Joint Stock Companies' Act fuller powers can be given by the shareholders to the directors, who may exercise these powers at their discretion. For instance, the rate of interest can be changed from time to time according to ra J ie ** security to shareholder! is established by the fact that the company intends only te lend money on real and leasehold estate or. Government and' Corporation securities.

A good futonjin the prospectus and a groat benefit to a large section of the community and the shareholders is ; the company, intending to purchase real estate and erect cottages or houses thereon, which the company will sell for either cash or deferred payments, whereby a person can become the owner of a freehold property cheaper than he Is able to build a single house on the same plan, and with'the advantage that, if desirous, he can pay off the amount of purchase in weekly, monthly, quarterly, half-yearly, or yearly instalments, including both capital and interest. The benefit derived by persons investing, by paying *o receive LSO or multiples thereof at the end of years, is so well known that any comment npoh it is unnecessary. I find the capital to be LIOO.OOO in 10,000 rV*® 80 / Ll ° eaeh J first issue, 5,000 shares of JjIO each : payable one shilling on applicStion, and (as I have been given to understand) from the day of allotment, five shillings per share per month until L 5 is paid up. No further sum can be called withent giving at Itaftt'three months’ notice, and such instalments are riot to be more than five shillings per share per month. X presume the second issue of 5,000 shares will be issued at a premium. The list of gentlemen acting as provisional directors is, l am certain, sufficient to put faith in intending shareholders and borrowers, that the undertalcing is legitimate and will become » paying one, ' You will agree that great credit is due te the promoters for bringing this epmpany before the public, as the prospectus promises the benefits to be equal to shareholders, investors, borrowers.—l am, &c., ' 11. D. Dunedin, April 2.