PERMANENT BUILDING SOCIETY.

Tuapeka Times, Volume V, Issue 240, 5 September 1872, Page 7

PERMANENT BUILDING SOCIETY.

A' well-attended meeting was held at the Commercial Hotel on Friday evening to consider the advisability of forming a Permanent Building Society. Mr. H. Bastings was, on the motion of Mr. Jamison, voted to the chair.

The Qhairman explained the object of the meeting, and briefly touched upon several of the advantages a permanent building society possessed over a terminable one. He then requested Mr. Hawkins, of Dunedin, who was present, to give the meeting some information on the subject.. Mr. Hawkins said that tha difference between permanent and terminable building societies , might be briefly explained as the difference between certainty and uncertainty. With the method of regulat- j ing permanent societies the manager can j determine the exact date when a share will accrue to its ultimate value, while* under the terminable system, it can only be guessed at. In a terminable society, ; after it is once formed, no new shares can be issued, and a man wishing to join had

to buy in; whereas, in % permanent society, shareholders can join at »nj time* In a terminable society borrowers often had to pay heavy premium* for loans, and the profits of investors were spmetime.3 very high. In a permjaoetit society the pase was different. Th* investor received a fair guaranteed percentage, and the borrower Was charged only a fair rate of interest, and the number of repayments was fixed. There was ff»: lingering suspense as to the termination of the pay* ments in a permanent :: society. Mr. Hawkins instanced the baae of a terminable society, in which/through the shares having been injudiciously bought in at the amount paid up, with the profits added, by the directory, the repayments by the borrowers extended over a much longer period than was originally contemplated. By this means the unfortunate borrowers had to pay 400 per cent. Under the permanent system nothing like this could occur. Anyone borrowing knew exactly how many' repayments he had to make, the actual money he had to pay, the amount of interest, and when he would get his title deeds.

In answer to question*, Mr.^Hawkinß stated that according to the rules of the Union Permanent Building Society, the borrower repaid the sum advanced in seventy-five monthly payments. Three months after the last payment, the title deeds were given up. Anyone could besome a shareholder at anytime, by the simple method of paying half-a-crown per share. Investing shareholders were guaranteed 8 per cent., and at the end of three years were entitled to participate in the profits,

Mr. Ferguson said that for some time past there had been great dissatisfaction with the working of the Tuapeka Building Society, which contained two conflicting interests— that of the shareholders and the borrowers. According to the case instanced by Ml 1 . Hawkins, if shares were bought in at the present price offered, Mie borrowers might go on paying for ten years.

The Chairman thought it injudicious to refer directly to the Tuapeka Society. No doubt many shareholders of that Society would find it to their advantage to join the new one proposed to be started. He might mention that in the Union Permanent Society no premium was required on an advance, and that the repayments for a loan of £100 would be £132 10s.

Mr. Abel said he had read the rules of the Union Permanent Building Society, and he believed a similar society would be a very good thiug for the place. He moved: "That it is desirable to establish a Permanent Building Society." Mr. Pyke said that he had often been struck when passing through Lawrence, by the great advance it had made over other goldfields' townships. This was attributable to the Building Society. It was now proposed to achieve something better, The establishment of a Permanent Bnildiug Society would be the best thing that ever happened in Lawrence, since the first house was built in it. He seconded Mr. Abel's motion.

Mr. Hay made some remarks anenl the borrowers in the Tuapeka Building Society, and suggested that it would be advisable to constitute the proposed society, as a branch of the Union Permanent Building Society. The motion was carried unanimously.

On the motion of Mr. Pyke, Mr. Farrer was appointed honorary treasurer, and Mr. Abel honorary secretary.

On Mr. Pyke's motion, it was decided to fix the entrance fee at 2s. 6d.

A number of shares were then taken np, and those who did so proceeded to hold a meeting. Mr. jJamison moved : " That application be made to have the Society admitted as a branch of the Union Permanent Building Society with a local board of Management."

Mr. Hawkins explained that the Union Permanent Building Society would, in the event of 200 or more shares being taken up, appoint local directors to consider applications, and recommend them or otherwise,

A discussion ensued relative to whether it would be more advisable to form a local society, or a branch of an established Dunedin Sooiety. Ultimately Mr Pyke suggested that the motion should be that a provisional directory be appointed to make terms with a permanent building society in Dunedin, with a view to affiliation thereto,

Mr, Jamison acoepted the suggestion, and the motion having been seconded, was put aud carried. On the motion of Mr. M'Kimmie, seconded by Mr. Bryant, Messrs. Pyke, Bastings, Abel, Farrer. Janriaon, and Dr. Stewart we.re appointed provisional directors.

A vote of thanks was aocorded to Mr. Hawkins, for the explanation he had given to the Chairman, The meetipg then separated,

At a Meeting of the Provisional Directory, held on Saturday evening, it was decided to communicate with the Dunedin Permanent Building Societies to ascertain whether, in the event of 250 shares being guaranteed, shareholders in the Tuapeka District would have the power of electing a Local Committee of Management, Local Valuator, and Resident Secretary ; sind also to ascertain in what proportion to subscriptions the Societies would be prepared to advance upon approved securities in tr c Tuapeka District.