BUILDING SOCIETY.

Gisborne Times, Volume VII, Issue 361, 11 March 1902, Page 2

BUILDING SOCIETY.

MEETING OF SHAREHOLDERS.

A special meeting was hold last night of the Gisborne Permanent Land, Building, and Mutual Investment Society. There was a large attendance, the Chairman of Directors (Mr J. Townley) presiding. The first business was to pass a resolution that rule 4 be altered by the substitution of one shilling entrance fee in placo of two shillings and sixpence as at present. The resolution was unanimously adopted on the motion of the Chairman, seconded by Mrs Eraser. The next proposal was to alter rulo 61 in regard to fixed deposits. The rulo stood as follows “If they shall deem it advantageous, it shall be lawful for the trustees of the Society, with the sanction and advice of the Board, to borrow money for the purposes of the Society, and to receive from any person or persons any sum or sums of money on fixed deposit for 8,6, 9, and 12 months at such rates of interest as the Board shall from time to time decide. Provided the total amount so received on deposit or loan shall not at any time exceed the amount of the previous year's subscription receipts.” It was proposed to rescind that rule in favor of the following :—“ It shall bo lawful for the Trustees of the Society, with the consent of the directors, to borrow

money at interest for the purpose of the Society from any member, person, bank, corporate body, joint stock company, or other source, and also to receive from any member, person, bank, corporate body, joint stock company, or other source, any sum or sums of money on fixed deposit for such terms and conditions and at such rates of interest as the Board shall from time to time decide. Provided that the total amount so borrowed or so received

on fixed deposit or loan shall not at any time exceed two-thirds of the amount for the time being secured to the Society by mortgages from its members.” Mrs Eraser said that thore had been a

booming of the price of land, and values

had been rushed up lo such an extent that before long there would be a heavy drop in prices. The Society had progressed well under the present rule, and she asked was thero not danger of making losses by the proposed change. They had good business men at the head of affairs now, but they might not always have those who could manage so well. The Chairman said that proportionate loss might also be made under the old rule.

Mrs Fraser : Only twelve months' subscriptions. This allows for two-thirds of the money in the Society. The Chairman said that the meeting could limit it to a third if they so desired. As for boom prices, the directors did not allow investments on such a basis. It would be found on looking up the records of the Society for the 27 years of its existence that they had not lost £SO on any property or on the whole of them put

together. Mrs Fraser : We have good men now, but we may not always have them as directors. There has been a good deal of booming in property, and now Mr Simson is revaluing them at high values. The Chairman said the motion as proposed was what the directors had thought advisable after consultation with the solicitor. It bad been framed in accordance with the wording of the Act. In reply to Mr Friar, the Secretary (Mr Porter) said that roughly speaking thero was now £II,OOO out on mortgage. The Chairman said that there was no intention of going to the length allowed if the resolution were adopted. Mrs Fraser said that she did not claim to be a business woman. She had and always did have the fullest faith in the directors and trustees, and was quite willing to accept whatever might bo the opinion of the majority.

Tbe Chairman said that tho new rule would s.triply remove restrictions which they themselves had imposed on the operations of the Society twelve years ago, when there was a downfall of such societies in Australia. They had thereby been largely restricted in their governing powers and tho usefulness of the Society had been decreased.

Mr -J. T. Evans said that he supported the proposal, which he believed to be in the best interests of tho Society, and would greatly increase its usefulness. The yearly subscriptions did not raise sufficient if they were to give tho necessary help to the thrifty young people. When the restrictions were made it was not known that they would also apply to thendealings with the bank. But they found that the bank took another view, and held that the restriction also applied to them. Mrs Fraser had raised points that were worthy of attention, but she could rest assured that while the usefulness of the Society would be further increased by the carrying of the resolution the directors would proceed as cautiously as they had done in the past.

The Chairman said when the restrictions were made it was never thought that they- would apply to moneys borrowed from the bank. There was no doubt that Gisborne was progressing, and while at one time they had a minute on the books that not more than £250 should be given to each borrower, now loans of £‘soo were frequently applied for on good security. Mrs Fraser said they must remember that there was such a building boom in Auckland at one time that "when it was ended some people were for a time glad to get tenants rent free so as to keep up the insurances.

The Chairman said that he did not "think there had been such booming here, but in any ease with a buildiDg society it was not like risking money for an indefinite period, as the liability was always being reduced, or they soon wanted to know the reason why. The resolution was proposed in the best interests of the society,

Mrs Fraser : 1 am quite sure of that,

Mr Evans said it was cut the lines of the Government restriction to two-thirds of the value.

The resolution, which was proposed by the Chairman, and seconded by Mr Evans, w-as carried unanimously. ' On the motion of Mr Evans, seconded by Mr H. Bail, Mr C. Davies was unani mously appointed a trustee in place of Mr E. W. Easley, who has left the district.