BUILDING SOCIETY.

Westport Times, Volume VIII, Issue 1160, 20 March 1874, Page 4

BUILDING SOCIETY.

The meeting held on Monday evening, at the Empire Hotel, was numerously attended, and much interest taken in the proceedings.

His Worship the Mayor occupied the chair, and in opening proceedings, Mr Joun Munko, as convener of the meeting, gave a clear and concise resume of the objects and principles of building societies generally. Ho explained the difference between terminable and permanent associations, and the regulations under which the business of a new society would commence, and the method whereby its operations would gradually cease, in the event of such cessation becoming desirable. In illustrating the method of obtaining loans, he explained that whenever the accumulated funds of the Society, accruing from monthly payments by investors, reached a certain amount, that amount would be offered for competition among shareholders at a certain minimum premium, and the individual offering the highest premium would be entitled to obtain the loan, provided that the security he offered was considered sufficient by the Trustees of the Society Such security might be either freehold land or existiug house property, or might be secured on buildings to be erected by the borrower, or after a certain time, might be lent on the security of investing shares held in the Society. He explained the mode of refund, or redemption of mortgage, by a series of graduated payments, extending over a certain number of years, showing that a borrower getting £IOO from the Society would, if ho wished to pay it back in one year, pay about £9 per month, or if his inclination or circumstances compelled him to take five years to pay off his mortgage, the rate for that term would be about £2 5s per month. Power being retained to pay ofF the liability at a shorter date and with a discount allowance, if the borrower should at any time elect to do so. Referring to the local benefits of such institution, he pointed out that the recent sale of freeholds in Westport had created the security required for the safe operations of the Society, and had also created a demand for money to be spent in erecting permanent buildings, in lieu of the makeshift structures now doing duty as dwelling-houses. The opening up of Queen street and Brougham street; as the main arteries of tho town would give access to many eligible building sections, and by the operations of the proposed Society the town of Westport would soon assume a more homely and business-like appearance. He proposed, " That this meeting is of opinion that it is desirable to establish a Building and Investment Society in Westport." Mr Ijjgs in seconding the motion explained that the management of the Society would, in terms of the Building Societies' Act, be invested in a Board of Directors, and that it would be necessary to also appoint two or more trustees, a treasurer, auditors, surveyor, solicitor, and secretary, all of them members of the Society. The office of Trustee, Directors, and Treasurer should be honorary, and the remuneration to be paid the others would necessarily bo small at first, and made contingent on the transactions of the Society. The motion on being put was carried unanimously. Mr Fishes pror osed, " That a Land, building, and investment society be formed, consisting of shares of £25 each, to be either paid up at once or by instalments of 5s per share per month. Such society to bo called ' The Westport Permanent Land, Building, and Investment Society," and that Messrs Humphrey, Munro, . Kerr, Andrews, O'Conor, Shapter, Fisher, Ings, Whyte, Powell, and Organ bo appointed a Committee to prepare rules and carry out details." He explained that the operation of the Society was not necessarily limited to adults, but that minors and females might become either investors or borrowers, and that by special provision made in the Act regulating building societies they could also transfer their properly. The Act also gave every facility for dealing with property and lessening expenses. For instance, when a mortgager had paid all his redemption money a reconveyance deed was not necessary, as the Act provided that a receipt by the Secretary endorsed on the back of the original deed was a sufficient release. From his knowledge of tho working of similar societies in Christchurch he felt assured that the proposed society would bo a success here and that shares would be also taken outside the township. He had been informed by Mr Munro that enquiries had already been made by Charleston residents with a view of taking shares if the terms of business proved satisfactory, and no doubt many similar applications would come iu.

Mr SiiAPTEit seconded the motion, and said he thought the action taken was a step in the right direction. The freeholds lately purchased would form available building sites, and to farther the views of Society as well as the interests of the town tho sooner the streets leadiug to such sections were opened up tho better for all parties. lie was glad to see tho Mayor in the chair, and hoped that ho would accept

tho business of the meeting as a proof that tho corporation would bo acting wisely in thus expending money. Tho motion was put and carried unanimously. It was then suggested that parties present should put down their names for tho number of shares they were willing to take. One hundred and thirty-three shares were subscribed for, representing a capital of £8325, end tho meeting then adjourned.