“A GREAT PROBLEM

New Zealand Times, Volume XXXIII, Issue 7848, 10 July 1911, Page 8

“A GREAT PROBLEM

HOW TO ABOLISH RENT Tn every corner of the universe to-day the “wagr--ca.rru‘r” is perforce tile “rentpayer.’ 1 The problem, therefore, of providing those most in need of “a home of their verv ora, 11 with such, is daily becoming one of the vital issues of the moment. Few men, if any, can ever hope to escape the fear of being cast adrift until they stand possessed of a homo which knows not the persistent weekly call of the rent-collector. “An Englishman’s home 11 is no more a castle, than a Hottentot’s if it cannot withstand the assault of the rent-collector every Monday morning. Thousands of wage-earn-ers and those dependent upon their efforts to secure a livelihood at Homo, in. the Commonwealth and in this fair Dominion, live in positive dread of the fearful catastrophe of ever becoming “homeless. 11 No person need perpetually remain in this unhappy condition today who will take the offer presented by the Co-operative Assurance Company, Limited (the first in Australasia), of becoming possessed of their own homo. Cooperative societies arc both ancient and honourable. In England 00-operativo stores for tho supply of workmen’s family wants have hitherto been looked upon with the greatest amount of favour. On the Continent of Europe its greatest outlet has been in tho direction of people’s banks. By this means the French people are the most thrifty, independent, and happy in all Europe. In America co-operation has mostly taken tho form of insurance and building societies. In Philadelphia alone it is estimated that over 100,000 workmen have purchased their own homes on the cooperative system. In Australia fully two-thirds of the private wealth consists of (1) land and <2) houses, in almost equal proportions, owing to the Tory laudable desire of increasing numbers of poorer people to become owners of real estate, mainly with a view to becoming their own landlords. Tho progress of building societies and their growing independence is a sign of -the, times. Starr-Bowkett societies are rapidly springing into existence and activity, and while not for a moment wishing to detract from the usefulness of such institutions it must he observed that they are usually of local character and importance, and consequently very subject to local fluctuations. It is just here that the operations of the Co-operative Assurance Company, Limited, call for marked attention. None of its special co-operative advantages are subject to lottery or chance. The House Purchase Endowment Branch alone is full of attractiveness. lit is a business with a lofty aim, a business with a magniccnt purpose, a business with everincreasing advantage for all concerned. If you are paying rent just study how much you pay for rent alone. In a city like Wellington few can secure a cottage at a rental of ten shillings per week, yet a man paying this low rental pays his landlord no less a sum than ,£260 in ten years, and is less able to face tho difficulties of a fight for existence than when he commenced; in twenty years he contributes £520, and is in a worse plight than ever; in thirty years £7BB of his hard earnings has gone to tho landlord, arid ho is still “homeless.” The 00-operativo Assurance Company, Limited, operates throughout Australasia, Sydney being the head office for Australia, and Wellington the head office for Now Zealand. Wellington directors will shortly bo appointed, and meanwhile the company (which is ready for operations in New South Wales by reason of tho promoters having already procured the subscription of more than the minimum fixed by tho directors as sufficient for the purpose) is reserving a third each of the whole issue for New Zealand and Tasmania. Tho company, which is to be incorporated under the Companies Acts of Now South AVales, is to have a capital of a quarter of a million (£250,000), divided into half-a-million (500,000) shares of ten shillings each. Of the latter 300,000 shares are now offered for subscription on payment of one shilling per share on application, and one shilling per share on allotment. No call shall exceed two shillings per eharo, and such shall not be made within three months of tho registration of the Company and thereafter at periods of not less than throe calendar months. In terms of the agreement made with them the promoters shall be allotted six thousand (6000) fully paid up share®, whilst 191,000 shares iaro held in reserve. The Sydncy Dirootors are the Hon. C. E. Pilcher, K.C., M.L.C., Union Club; A. G. Ralston, Esq., K.C., Wigram Chambers, Phillip street, Sydney; and James S. Inch, Managing Director (one of the promoters, who in company with Mr James Edward Stokes left lucrative Assurance appointments to found the present Company). Two other directors will bo d.ppointed at first meeting of directors, whilst ‘ New Zealand and Tasmanian directors will bo appointed as scon •as business is commenced in these places. The subscription list opens in Wellington to-day, and will close on or before MONDAY, July 31st. Tho New Zealand agents are Messrs William H. Turnbull and Co., Panama street, Wellington, who are likewise, brokers in connection with Messrs Irwin and George, of Panama street. Tho Company’s bankers are the Union Bonk of Australia, Limited, and the local solicitors Messrs Moorhouse, Hadfield, and Newman. In conclusion it might be stated that in Great Britain it would appear from the records that £70,000,000 (seventy million) sterling is invested in companies doing House-Purchase Business, which should materially establish confidence in this new and similar institution when it is known that tho value of the shares in “The Britannic Assurance Company,” in 18S7, stood at thirty-five shillings, and rose in 1009 to twenty-six pounds; and four pound shares in the Pearl Assurance Company, in 1895, rose to £56 in 1903. The above companies are combining ordinary Insurance work with HousePurchase, and are thus paying dividends of forty and fifty per cent. As recently as last year two insurance companies were formed in Australia, and were largely over-subscribed, and to-day shares are selling in both of them at a considerable premium. Neither of these companies, however, is doing House-Pur-chase business, which is tho principal feature of the Co-operative Assurance Company, Limited, w'hdch is being formed to transact or procure the business of Improved Industrial Insurance, Ordinary life Assurance, Fire Insurance, Personal Accident and Sickness, Plate Glass, Burglary, Employers’ Liability, Workmen’s Compensation. Fidelity Guarantee, and in addition the House-Purchase System already enlarged upon. Its objects are the raising of a fund by the payment of subscriptions or contributions by its members and Ihe_ application of such funds in assisting its members to obtain Freehold (or Leasehold) Property, or in the making of loans and advances to its members and others upon approved security with periodical repayment of principal and interest by instalments. In this respect what are commonly known as House-Purchase Companies are doing excellent work, their object beingto enable thrifty people, by means of small periodical subscriptions, to become the absolute possnssotre of their own homes. *