TARANAKI LAND BUILDING INVESTMENT SOCIETY, (PERMANENT).

Taranaki Herald, Volume XVI, Issue 821, 18 April 1868, Page 3

TARANAKI LAND BUILDING INVESTMENT SOCIETY, (PERMANENT).

A special general meeting of the shareholders of the above Society was held in the Freemasons' Hall od Monday last, for the purpose of taking into consideration the advisability of amending the present rules of the Society, and giving power to the directors to lend money on tho seourity of leasehold property. Mr. Ciulman on being called to the chair, briefly stated the purport of the meeting, aud drew tho attention of tho members to the fact that if the proposed rnlu was passed it would materially alter the basis on which the Society was formed. He had a short resolution laying before trim — would auy one move it ? (There being a pause for a considerable length of time) The Chairman remarked that as no one rose to propose the resolntion, he presumed tho feeling was against it. (Hear, hear.) Mr. W. Bayly said he was not in favour of the •change, but would like to try the voice of the meeting on the subject so he would move pro jormd. " That it be desirable for this Society to lend money ou leasehold security," he thought there would be no harm in giving it a trial. Mr. Howell seconded the resolution. Mr. T. Gledhill thought they had no power to pass a resolntion of ihe kind. There were a great many persous present, he would like to hear their opinions on the subject. Mr. Dingle was of opinion that their money was safer invested on freehold property and in the Bank, than it would/be if out on leaeehold property. / Mr. Kelly had heard of the subject mentioned only a few days ago, aud had hardly made up his mind ; but having confidence in the discretion of the directors, he thought he should vote in favour of the resolution. Mr. Dingle inquired if the money was lent on leasehold property, and tho* mortgagor neglected to pay rent or interest so as to forfeit the property to the landlord of the leased ground, could tho Society seize upon any other property of tho person borrowing ; — would the law allow them to •take the other property to make np any deficiency. The Chairman answered that the mortgage deed covenanted that if Ul9 property sold did not meet the amount lent, the balance was recoverable ; and any other property the mortgagor . might possess was liable to be swept off. * Mr. W. Bayly did not wish to throw cold water on this resolution. The directors bad made no blunders as yet, and he believed that they would not lend money on leasehold property auless they saw there was a good chance of realising it. He was perfectly satisfied with again leaving it to tho directors. Mr. Dingle differed with the last speaker, he thought that if they could not lend the money outj °n freehold security, they had better " stick to it." Mr. Warwick Weston admitted that the directors had done very well, bat for all that, he thought we had better leave well alone, and leave them no temptations. He did not wish to throw cold water on any proposition of the directors, but this resolution did not appear to emanate from them, for neithor the proposer nor the seconder was a director, nor had one spoken iv favor of it. However, as to lending money at the present time oaf leasehold property, he was sure no sensible man would suggest such a course. Leases were only granted for short terms ; the tenant might vacate, and then Ihe Society would have to pay tho taxes,J*ent, and have to return all bnildinga to the landlord in good condition ; thus it was probable we should lobo our principle, our interest, in addition to the liabilities we have incurred for taxes and rent. It was different iv largo towns, where they granted leases for ninety-nino years, ' — but here they were taken for seven, fourteen, and twenty-one years, which were really not holdings at all. He thought it almost better to lend without seenrity, than upon leasehold security. He thought it unadvisable to alter the rnles. There were a great number of members present, but no member who had signed the requisition calling the meeting, had courage enough to rise to support the resolution. The Chairman then pnt the resolution, which was lost, there being only one hand (the proposer's) held up in favour of it. After a vote of thanks to the Chairman, the meeting separated.