TARANAKI BUILDING SOCIETY

Taranaki Daily News, Volume LI, Issue 267, 4 November 1908, Page 4

TARANAKI BUILDING SOCIETY

I The annual meeting oi' the Taraaaki Land, Building and Investment Society was held at tilt _iuee «i the secretary Air. K. 1". Webster, last 1-riilay | evening. Mr H. Cock, chairman ul | directors, presided. The directors congratulated the , shareholders on tiie successful results 01 the business transacted during the past- year. A..\ ami .\.T. Scries had lieva paid off ill nix years and eleven months, the same period as in previous years. A bonus of cent, and a dividend of HI per cent, had been declared, ma king a total distribution of li'/ipi'r cent, for the year. The net amount available for di.-l i iimfion (in.'eluding the -luilauee brought forward from ia,l year) was U2713' I, lid. This , had been apportioned as follows:--! I) : Ity placing lo tiie credit of all lueiiil bi-rs, burrowing and investing, a divi- ; dead equal to 10 per cent, and a bonus I of 2V, (including proiits allnlled to A.S.

I ;rad A.T. series, matured during the j year; C 232 8s Id; (2) To the credit of Reserve fund .CIOO. total 12(27 Ss Id. Leaving t'2Bs His 5d to be carried

forward to next account. In moving the adoption of the report the eliainuan said it had occurred to him that it was time tiie Society, .which had hem -I.') years in existence, amended its rules to give borrowers better terms. The Nelson Society*, w'hich was practically the parent oi this one, had reduced its rate of interest charged to borrowers to 5 per cent. Idle, however, suggested reducing the I, rate to l'/ :: per cent., and that repay,ment should be made at the rate of 2s, or even Is O'd per month per share. This would mean that the shareholder requiring to borrow £IOO would pay, at the 2s rate, £1 2s (id per month, that is. 10s for repayment oiufivc shares I' and 12s (id for interest at T/ 2 per cent., instead of £1 lis S<l as at present, being lfls 8d interest at 10 per cent. At

the Is lid rate tiie monthly payment would be £1 7s (id repayment and 12* (id interest. This would reduce the net rate of interest payable by borrowers, after allowing for proiits, to \\% per cent., as compared with about -J '/., per cent., which was the rate paid for sevi eral years past. Of course at the lower rate of repayment the payments would ,he spread over a longer period, but his iuea was to make the terms . easier. This was particularly desirable in* view of the higher cost of land and building jthan formerly. Twenty-live years age a man could buy a town section foi £SO and erect a house for £2OO, bor .rowing the latter sum from the Societj ,and paying £3 3s 4d per month inter est and redemption. To secure a sinii lar. home to-day a man would have Ic ' pay £2OO for a section and £350 foi 1 a house or £550 in all. Borrowiu; £4OO from the Society he would Jiavi ' ,to pay £0 lis Sd per month, and tlia ', ,was too much for most people to pa; ' out of wages. But if the Society adopt " ,ed his suggestion, the .borrower o £4OO would pay, at the 2s rate, of re itremp'tion, £4 10s per mouth, or if h chose to repay at the rate of Is Od pe share per month, hi* monthly paymen would be only £4 per month. Tii would encourage borrowers, luakiu the terms easier, though the period c repayment would be longer, lie intent ed to submit his proposals to the dire, Jj tors with a view to having them lai before shareholders. He moved tl: " adoption of the report and balane. u i sheet.

Air. liaily seconded the motion, which was put and carried. Air. 11. Daily moved that the directors take iuto consideration the Matter of altering the scale of fines and giving discretionary power to the directors. Air. King seconded the woiion, whie'.i was carried. A vote of thanks was passed to the directors and officers, and C.30 was voted as honoraria to the directors. The»retiring directors, .Messrs. T, K. Skinner. \V. L .Newman, ami ■!. Kil:were re-elected, and .Messrs. il. 1,. ~ and K. il. Tribe were re-elecl.'ii ;:.:;!,- ors.