MUTUAL BENEFIT BUILDING SOCIETY.

Globe, Volume IV, Issue 332, 6 July 1875, Page 3

MUTUAL BENEFIT BUILDING SOCIETY.

A general meeting of the shareholders of the above society was held, pursuant to requisition, in Spensley’s Hall last night, to consider certain proposed alterations in the rules, and adoption of certain tables of repayments. Mr Wm. Wilson, the chairman of directors, occupied the chair, and in opening the business said that the shareholders were aware that the usefulness of the society had been much restricted during the past year, owing to the inability of the directors to borrow money at a maximum of 7 per cent, and lend it at 8 per cent, as laid down in the rules of the society. The rate at which money could be obtained had rapidly risen from 6 per cent, 7 per cent, 8 per cent, to 9 per cent, and in some cases to 10 per cent, and it had been quite impossible for the directors to obtain money so as to lend it out at 8 per cent, on which the original tables were based. Many complaints had been made to the directors on this head, and it had been pointed out to them that great advantage would accrue if the directors obtained power to borrow and lend at a higher rate, at least for a time until money became cheaper. In consequence of this the directors, after careful consideration, had resolved to call the shareholders together to lay the matter before them and ask them to adopt certain tables which had been prepared by Mr T. B. Craig, the auditor to the society, which would give the directors the necessary power. Before concluding, he might say that the bank overdraft at the time of last meeting was *15,000, but this had now been reduced to about £9OO This, he need not tell them, was not a satisfactory state of things, as the society should have a large overdraft if they were to do a large business. The overdraft had been reduced simply because the directors could not afford to borrow at the increased rate of interest. He might also point out that the Permanent Investment and Loan Association had adopted a similar course to that now proposed. He would now ask the secretary, Mr Bird, to read the requisition. Mr Bird having read the requisition to the directors, The amendments in the rules were put seriatim, and agreed to. The following new rule was put and carried: — « Every member of the Society shall pay a fee of sixpence for each share held by such member for working expenses, to be called the “ working expenses fee,” said fee to be paid at the first monthly meeting after the annual general meeting in each year.” Mr Jameson moved: — “ That the Directors shall have power from time to time at discretion to substitute for the Table of monthly repayments contained in rule No 32, either of the subjoined tables of monthly repayments; and also, at the like discretion, to return to the said table so contained in Rule 32, as aforesaid ; and that borrowers of the funds of the Society shall make the said repayments according to the table at the time of the advance being made, declared by the directors to be in force. That all existing Rules of the Society shall apply, and all Mortgages which may hereafter be executed by any borrower from the Society shall be framed, and made applicable to loans, repayable under the said altered tables so, for the time being, in force as aforesaid.” Mr Gr. Booth seconded the motion, which was agreed to. This terminated the business of the meeting, which then adjourned.