Page 1 Advertisements Column 3

Southland Times, Issue 4495, 6 December 1882, Page 1

Public Notices QO^THLAND BUILDING AND O INVESTMENT SOCIETY AND . BANK OF DEPOSIT. V ' «__»_«----_- ■ - ' ' ..•"f PBESIDENT : . ;. J. Walker Bain, Esq. „ / DISECTOBS: Messrs J. E. Hannah, D. L. Matheson, John Thomson, W. H. Hall, C. W. Brown, Wm. Sloan, JohnJßangsland, George iTroggatt, and Robert Erskine. solioitobs: Messrs Macdonald and Russell. ; BANKEBS: Colonial Bank of New Zealand, '.'■"■■' secbetaby: Mr James Brown. Office— Temple Chambers, Esk street, , . Invercargill. he leading features of the Society are as follow :— The net profits are credited at the •end of every year to each shareholder (borrower or 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 1869, and is incorporated under the Building Society's Act, 1876, . It is based on mutual principles, borrowers participating equally with investors in the profits. 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 any 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 Is, 9d or 6s a week per share, the currency of the share, being 7, 9 and 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 when the Is, 9d or 6d per week per share' 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 Is 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 _s having accrued as profit during that period. Suppose the sum of £10 8s were saved by an investor, and deposited half-yearly in a bank in payments of £5 4s each half-year, fche bank allowing 5 per cent, per annum, the result would be that in the period of 7 years, 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, -Sorrowers who have realised on four shares pay in addition to subscriptions : inteiest at the rate of 8 per cent, per annum, making £18 8a ; which, multiplied- by 7, gives £128 16s as the total payments in seven years. 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 has been 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 the property woald still belong to his landlord. In order to arrive at the exact sum he hae paid for tue house by the aitf 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 ... ... 182 0 0 £61 _ 0 and it is seen that £61 4s is the net cost of the house to the member. The actual operations of the Society have demonstrated the correctness of the foregoing calculations, and the results have been considerably better both to the borrower and investor than anticipated ; for instance, at the balance of 1876, 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 being 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 — 1879— £102 15 0 ... £2 15 0 1880— £103 12 8 ... £3 12 8 I 1881— £107 9 8 ... £7 9 8 The rapid increase in the profits ahows 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 shows 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. 1^- O T~ I O~~lT' STEWART, WATSON & CO., PLUMBERS, TINSMITHS, GASFITTERS, BELLHANGERrf, &C, (Awarded 3 first and 1 second class certificates, 1881 Exhibition), Wholesale Manufacturers of Tinware, Tanks, Ridging, Spouting, Furnace Frames, Copper Boilers, Ovens, &c., &c., of every description. PRICE LISTS ON APPLICATION— THE TRADE SUPPLIED. Electric work of all kinds, viz., Fire-alaims, Thief-detectors, House-bells, Batteries, Telephones, &c, made, fixed, and repaired j houses at present fitted with common bells can be altered to suit electric ditto at a comparatively small cost, and Guaranteed any length of time. A large Stock of Gas-fittings, Gas, Globes including the new Electric. Shadowless ' Globe, always on hand to select from, INSPECTION SOLICITED. Repairs and Jobbing Work will receive every attention. CASH PURCHASERS of Old Lead in anj quantity. ._ _ I>|"ONEY to lend on freehold security Aj P SaODONA3_D k BUSSELL, Solicitor*!