Page 1 Advertisements Column 3

Southland Times, Issue 4494, 5 December 1882, Page 1

Public Notices SOUTHLAND BUILDING AND O INVESTMENT SOCIETY AND BANK OF DEPOSIT. PRESIDENT ; J. Walker Bain, Esq. DIBECTOBS : Messrs J. E. Hannah, D. L. Matheson, John Thomson, W. H. Hall, C. W. Brown, Wm. Sloan, John Kingsland, George Froggatt, and Robert Erskine. solicitoes : Messrs Macdonald and Russell. BANKEBS: | Colonial Bank of New Zealand, SECBETABY : Mr James Brown. Office— Temple Chambers, Esk stieet, Invercargill. he leading features of the Society are as follow :— The net profits are credited at the end of every year to each shareholder (borroweror investor) in proportion to the amount then standing to his or her credit in the books, except subscriptions paid in advance. The above Society was established in 18G9, ■ and is incorporated under the Building Society's Act, 187G. It is based on mutual principles, borrowers participating equally with investors in the prjfits. Shares date from the first pay day in the months of May, August, November and February. Shares represent when realised the sum of £25 each. The rules provide that borrowing members can repay the whole of auy portion of the amount borrowed in sums of £25 and upwards at any time without previous notice, interest ceasing at once on the same. Members are of two classes, investors and borrowers. Investors pay ls, 9d or 6s ft week per share, the currency of the shares being 7, 9 aud 11 years respectively, and this amount, with the profits added annually accumulates till it reaches the sum of £25 per share, when a cheque is given for the money invested. Borrowers pay in addition to the Is, 9d or 6d a week per share, interest at the rate current when the loan is negotiated ; and I when the ls, 9d or tid per week per share 1 ' with profits, reaches the sum borrowed, the property given as security is released. The Society has made arrangements whereby mortgage and release charges are reduced to a minimum. Borrowers building houses, according to plans and specifications approved of by the Directors, are allowed progress payments on the architect's certificate. It was anticipated that shares paying ls per week would mature in seven years, and on this data the following calculations were made : — Investors of four shares pay 4s a week, or £10 8s per annum, which, multiplied by gives £72 16s, the actual payments in seven years, and then they are entitled to receive a cheque for £100, the difference of £27 4s haviug accrued as profit during that period. Suppose tbe sum of £10 8s were saved by an investor, and deposited half-yearly in a bank in payments of £5 4s each half-year, the bauk allowing 5 per cent, per annum, the result would be that in the period of 7 j-ears, while £100 would be accumulated the Society, only about £87 would be accumulated in the bank, so that a clear gain of £13 in the period would result by investing savings in the Society, "borrowers who have realised on four shares pay in addition to subscriptions: inteiest at the rate of 8 per cent, per annum, making £18 8s ; which, multiplied by 7, gives £128 16s as the total payments in seven vears. Deduct from this sum the amount borrowed, and it leaves £28 16s, which sum divided by 7, shows that £4 per annum, or 4 per cent., has been paid for the use of the money. Suppose a member purchases a house for £200, for which he ha3 beeu paying a rent of 10s per week, and he obtains from the Society an advance of £150 on the security of the same, his payments would be — interest, £12 ; subscription, £15 12s ; total, £27 12s, In seven years his actual payments would amount to £193 4s, and the property would be his own: Had he not become a member of the Society he would have paid £182 as rent, and ihe property would still belong to his landlord, In order to arrive at the exact sum he hat paid for the house by the aid of the Society add to his actual payments in seven years to the Society the £50 paid on purchase. Actual payment £193 4 0 Paid on purchase 50 0 0 £243 4 0 And deduct reDt he would have paid 18*2 0 0 £61 4 0 and it is seen that £61 4s is the net cost of the house lo the member. The actual operations of the Society have demonstrated the correctness of the foregoing calculations, aud the results have been considerably better both to the borrower and investor tban anticipated ; for instance, at the balance of 1576, on which date the first seven years' series of shares matured, the nvestor of four shares received a cheque for £101 14s, and the borrower obtained a bonus of £1 14s in addition to his loan beiug repaid. The following table will show the results since then, the next series maturing in 1879— Borrower obtained Investor of 4 shares bonus in addition received cheque for to his loan being repaid — 1579— £102 15 0 ... £2 15 0 1880— £103 12 8 ... £3 12 8 1881— £107 9 8 ... £7 9 8 The rapid increase in the profits shows the advantages of co-operation, the same machinery and the same expense being capable of overtaking a largely increased business consequently the profits increase, hence the balance of 1882 phows a bonus of £8 14s 4d to the borrower of £100, and the investor of 4 shares received a cheque for £108 14s 4d. JAMES BROWN, Secretary. Plumbers, Etc. pr o t I c e • STEWART, WATSON & CO., PLUMBERS, TINSMITHS, GASFITTEBS, BELLHANGERS, kc, (Awarded 3 first and 1 second class certificate'', 18M Exhibition), Wholesale Manufacturers of Tinware, Tanks, Ridging, Spouting, Furnace Frames, Copper Boilers, Ovens, &c, &c, of every description. PRICE LISTS ON APPLICATION— THE TRADE SUPPL'ED. Excctric work of all kinds, viz., Fire-alarms, Thief-detectors, House-bells, Batteries, Telephones, kc, made, fixed, aud repaired ; houses at present fitted with common bells can be altered to suit electric ditto at a comparatively small cost, and Guaranteed any length of lime. A large Stock of Gas-fittings, Gas Globes, including the new Electric Shadowless Globe, always on bind to select from. INSPECTION SOLICITED. Repairs and Jobbing Work will receive every attention. CASH PURCHASERS of Old Lead in any quantity. V/f ONEY to lend on freehold security Ap ijJL ply to MACDONALD k RUSSELL, ( Solicitoru,