"MUTUAL HELP" BUILDING SOCIETY.

Otago Daily Times, Issue 10478, 29 April 1896, Page 3

"MUTUAL HELP" BUILDING SOCIETY.

A. meeting of those interested in the formation of the " Mutuil Help " Building Society) projected on the Stnrr-Bowkett system, was held in the lecture hall of the Y.W.C.A. Rooms j last evening. There was a numerous attendance, upward! of a hundred persona being; present. "■ Mr Thomas Scott, one of the provisional directors, briefly introduced the subject of th« formation of tue society, and called upon Mr Adams to explain the manner in which the society mould carry on its operations, the purpose of which was by combination upon a lystematic plan to «nnble people to acquire homes for themselves without paying extra tent.

Mr A. 8. Adams, in the conrse of his explanatory address, stated that the object of the society was to raise funds by mutual subscriptions out of which to make advances to members on the security of freehold or leasehold property, and so to assist them to obtain homes of their own and generally for the purposes contemplated by " The Building Societies Act 1880." There were to be no paid-up, preferential, or promoters' shares, and no borrowed capital. No member could hold more than five shares, but might sell or transfer the shares at any time, and the liability of a merabar would be limited to the amount actually paid or in arrears on his <.iiares. Each member would be entitled to ft loan of £100 for each share, free of interest, which amount was to ba repaid by weekly payments of 3a Id extsndiDg ovsr IS£ years. A portion of the funds ara to bo lent at a small premium of 2 per cent, to provide Bgainst loss and for a small profit. Auy member wishing to ofcc»in a loan in advance of his free loan, which iis to be allotted by ballot, nip.y apply for a premium losn, and these will be granted in Ihe order of application. Free loans are to -be allotted by ballot as the money may become available; and at least one half of the funds will be allocated for free loans. By this arrangement it fus stated a man could neenre a home, and by fortnightly payments of less than the rent value become the freeholder free of all encumbrances within a period of 12£ years. In other words a member by paying 8 per cent, on his free loan for 12£ years would be freed from all further liability with the. exception that he would continue his subscription)) to tha society, which would amount to 54s per year, and which would be returned to him, together with his share of accumulated profits, when the society is wound up. When a free loan of £100 has been appropriated to each share the society would be wound up, and this it was estimated would occur in from 15 to 20 yeirs. ,

A conversational ducussion followed, in which various points of interest to intending shareholders came under review. It was stated that for the safety of tha society a margin would have to be allowed in granting loans; bat as the repayments weie large, this would not require to be as great as in other societies. It was also stated that heavy losses in connection with loans were not made upon advances on fsmall properties. A gentleman pceeeut expressed the opinion that 30 years would ba required for the society to work itself out'on the lines laid down; but in reply it was stated that experience showed the period would almost certainly be from 15 to 20 years, though no exact calculation could be made on the unbject. ■

On tlje motion of Mr David Dawson, seconded by Mr Gobdon, it was resolved—" That an opportunity be given to sign and tender forma of application for shares."

This was done, and a large number of shires were applied for in the room.