IMAGE EVALUATION TEST TARGET (MT-3; 1.0 I.I 1.25 |3j 11111=== llil]^ *" 1^ 1 2.2 ? ■- IIIM U 11.6 Photographic Sciences Corporation f^ «• \ \ '9> V '<*. 6^ i^ ,.^ ^ a ^^ ^^^^"^ - f » » toV' VICTORIA, B. a ^K ItoMillan, Bork and Job Printer. ii •''"'"roPf'fipii ' ' tmrntmrniiittt^- r" ,«^p^ y «,;:H,!i,u»-> n*- i i-'Jiai^T I :,!■■' Vhe British Columbian Investment and Loan Socictyt Editor British Colonist: — Bearinc: in mind the assistixnco rendered by you over since the Union of the Colonies of Jlvit ish Columbia and Vancouver Island, on the several applications to the Leii^ishitive ( 'Onncil for the passnp^e of an Ordinance t© encor ''apje the estahlishnient of Invest- m€^ and Loan Hocieties, now that tl;o 0M3N|jfncc has received the assent of the Crow^iand *'The British Columbian In- vestme^and Loan Society" has been in- Corp|(i|ll^||jindcr its provisions, I desire to avail naj^yt of a space in j^our columns as a medium through which an exphina- tion of tbo objects and system of the So- ciety, and also soiTie of the advantages which may be derived therefrom, may be placed before the public in a concise form ; fut before attempting this explanation it well to state that societies es- (jinder the Ordinance will be I operation to those known as lent Building Societies " and H : 4 THE BRITISH COLUMBIAN also to distinguish tlic '*■ rermancnt " form the "Terminating Building Societies," as the latter, although popular at first, havo deservedly fallen into disfavour in conse- quence of the uncertainty of the time at "which the funds willbedivisihlc amouijcst the Investing members, the period being dependent on the sufficiency, of the securi- ties taken for loans, because the funds of the society are not divisible amongst the members until tho moneys paid as instal- ments on the shares and profits thereon^ are ^qual to the aggregate of the nomiiml amount of the shares, tha! is the amouiit subscribed for. For instance : supjigsing the shares to be $50, each, payables fol- lows; $2 on a given day, say, tjj^ let of January 1869, and the balancc^y twelve monthly instalments of $4 iu advance, on the first day of each month. As the pay- ment on all of the shares in the "Termin- ating Societies" have to commence as from the given day the funds of the So- ciety would (if there had not been any losses and expenses or profits) be dr amongst the members at the expin one year from the given day, M •^ — "^ it" form itics," as rst, have 11 conse- time at amongst 0(1 being i lie securi- funda of 3ngst the as instal- J thereon^ 3 nomlm^l e amo|[ut . isiiig bl^s fol- Ist of >y twelve Ivance, on s the pay- "Termin- imence as of the So- been any )e dr pin .. 4 INVESTMENT AND LOAN SOCIETY. 5 f ■ January 1870 ; but the diVisior. niav take place before or after 1st January IHTO, according to the proilts or losses and ex- penses. If this uncertainty is considered objectionable by the investing members,, how much more so must it be to a l)or- rower, who, under the impression that the Society will terminate at an early date, may have purcliased shares (most probably, if not an original member) at a premium, and after having obtained an adiyance thereof from the Society at a discqunt (as was almost always the case) discovJirs that from unforseen circum- stances tthe termination of the Society will notli|kc place for double tho lengtl' of time he^h^id anticipated and tliat he will have to continue paying the instal- ments on his shares with interest on the nominal amount of the shares for the ex- tended period; that is to say, until the |actual cash in the possession of the Socie- jshall be equal to the aggregate of the il amount of the shares. Permanent Societies the system Nit. In these Societies an invcst- >er is entitled to withdraw the 1! () THE IIIIITISH COLUMIirAN amount of liis sliaiv (with profits if any) ul'ter pa3'nicnt of a certain number of in- stalments at stated times, and a borrower ran re}iay liis loan with interest by a stip- ulated number of instalments. THE OIUIXTS OF THE SOCIETY ARE : To ereate and foster provident liabits amongst tlic industrial classes and. to ac- cumulate their savings. To enable p rsons of small means to make some provision for their old agS and to secure jjort'ons for tlieir ehildu^n. To facilitate th.j acquisition of Lome- steads. J^ To enable persons, whether ^arehold- ('v^ or depositors, to obtain reayiftly, a safe and proHtablo investment ^r money, whether in larsrc or small sums, free from anxiety or doubt as to its safety or the re2:ulanty of their returns. - To provide a fund from winch the owners of real estate may obtain loans Uj a fixed rate of interest, with the privll » 'Spaying off the loans and the^^g thereon by small sums in the yenient way to themselves. TaansH its if any) il)or of iii- [i borrower t by a slip- { ARK : eiit babits and to ac- means to 3*11' old a«^S ;ir cbikkpn. yiareboUl- ^ly, a safe bv money, \9, tree from ifety or the le INVESTMENT AND LOAN SoriETY. 7 THE SYSTEM OP THE SOCIETY aa regards the accumulation of move)/ is to amasB a fund by moans of pnymcnt on Bhares in the Society and re. nving de- posits of small sums; to set apart a por- tion of the profits as a llc^icrve Fund t<» lueot contingencies; andtoallnw members who make payments in advance (wlictbor in respect of shares or rcpaym«nl ot loans) an equal credit afterwards wlu'n other payments become due. The Capital Stock of the Society is un- limited and will consist of tlie moneys paid on the unadvanccd Bliarcs in tlio Society, and comprises two clas.-^es of stock t^he ^'Permanent Stock" and the '*Accuiiiulating Stock" The amQuut payable on each share in the Society is $50. The Shares in th:^ "Permanent Stock'" must be paid for in full wben taken, and mpney invested in the purchase of these shares cannot be withdrawn, but period i- rclal dividends will be paid thereon out of profits of the Society, and the shares le sold and transferred. » .shares in the "Accumulating? 8 THE BRITISH COLUMBIAN ' Stock" may be paid for, by instalments extending over a period of one, two or four years, at the option of the Share- holder. „, ,.,.^. . An entrance deposit of $2 is payable on each share in the Accumulating Stock and the monthly subscription on each share to be paid up in one year is $4; in two years $2; or in four years $1, mak- ing the total payments on each share $50; And the shares will arrive at ma- turity and be payable on the expiration of one month after the last monthly subscription thereon shall have become due. / The shares in the Accumulating Stock may at the discretion of the Directors be paid for in advance, and in case of such payment a discount will be allowed. Under special circumstances thelHr- ectors will be at liberty to allow the mo- nies paid on these shares to be withdrawn^ before the maturity of the shares. New shares may betaken at any til and the subscription thereon wjj mence on or as from the Ist month in which the share shal ^ jtalments ,e, two or he Bhare- is payable ting Stock u on each ar is $4; in 3 $1, mak- each share rive at ma- , expiration 3t monthly ave become ating Stock directors be jase of such allowed, ces the^Pir- low the mo- ewithdrawa shares, at any tt on w St lal ( INVESTMENT AND LOAN SOCIETY. The due payment of the sliiires in t]io ^'Accumulating Stock" at maturity will be assured by the reserve fund, and tlio monies invested in the purchase of ])cr- manent stock; And the reserve fund will be applied in meetino; contingencies in exoneration of the permanent stuck. No portion of the profits of the Society will be paid to the holders of shares in the accumulating stock until thematnr- ; ity of the shares ; but when the profits H^e from time to time declared, an equi- table proportion thereof will be allotted for each share, and w^ill be payable to the registered owner of the share, witli the amount of the sliare, when the share becomes due and payablo. To ensure punctuality in payment of the instalments, a small fine will bo levied on defaulters, and the fines will be a charge on their shares. And as regards the investment of the funds Jhe Society ^ the system is, to loan money ^der the supervision of a Board of for any time not exceeding repayable by monthly instah interest at a fixed rate (for ii £ 10 THE BRITISH COLUMBIAN • the purpose of illustration) say nominally i:;12. per cent., then supposing the loan to 1)C five hundred dollars for iive years or sixty months, the interest would be §300 and the mort^xniire v/ould he taken to secure $800; The monthly instalments would he $18 34 and at the expiration of the live years the debt would be discharg- ed ; ])ut a morti>:a2:or will be allowed to redeem his property at any time, on pay- ment of the money tlien due from lilm to the Society and such reduced sum as t}ie Directors may consider reasojudjle in^^at- t/ isfaction of the instalments which shall not then have become payable, and Bhould it not be convenient for him. to 'meiit moi •epay ^h merely have to make a payn\ent in ad- vance to entitle him to a corresponding rime for future payments, so that if he de- sires to make the repayments half-yearly, on making a payment of three instalr inents in advance he would not for tl space of six months be required to mi any other pa\niient. N'o proposal for a loan wilh taincd by the Directors unlesf Ill Dminally louu to years or be §300 akcu to 3talraents irallon of discharg- il lowed to c, oil pay- Mil him to Lini as tbe bio iu^^at- hicU shall rable, and for him to ,y he will cnt in ad- 'responding nat if he de- half-y early, hrce install not for tl •ed to vpLi INVESTMENT AND T.OAN SOCIETY. 11 nied by tlio report of one of the Vulua- tors of tlic Society, who will not only have to state what, iu his opinion, is the Value o;t'thc propei'ty oiiered as security, hut will lirtve to answer in writinu* tlio l»rinted questions required by the Direc- tors to bearswcred bv tlieir vnhnitors. For tliis rejiorl tiie niortgng'cevvill be re- quired to ]M\y such reasonable fee jistho Directors sliall have previously author- ized the valuat(U'^i to charji^e. k Xo money will be paid to nK)rt,; and applying for useful purposes a large amount of money which otherwise would be distributed amongst the community in small sums and lying idle, or would be squandered. - • The investor will bo relieved from yllie ^ trouble ot considering the suHlicien^y of property offered as security for lQi»n8 and the inveUigation of the title,#aQd may feel assured that everything \yill receive due attention, and should a loss occur it will b3 spread over the whole capital of the Society and will not fall on himself alone. He will receive his' iiicomo at stated times and will be relieved from the importunities of improvident or uij| fortunate debtors, and also from the p| sibility of having to enforce the provisi< in his deeds ot security. The borrovver applies to the So^ a matter of right, and choose? tinij for redemption w^ith tl )vldout in acquiring vision for ic means imulating s a largo ise wouUl immunity ' would bo fromjthe iciei^y of Iq^iis and #aad may .11 receive 3 occur it capital of 11 himself lucomo at 3ved from snt or 11 the pj provisi^ Soci INVESTMENT AND LOAN SOCIKTY. 13 that ho is giving fair value for wliat lio receives and tlicreforo in nowiso com- promises his indopendence ; That by promptly meeting the small periodical payment-:* whi^h no individual mortgagee would accept, he is gradually paying oil liis mortgage debt; That he is not sub- ject to the caprice of any individual who may sacritice his property by enforcing payment unexpectedly; And that should he wish to sell, exchange, or redeem his property, he can at any time accom- • plish diis purpose no certain equitable , principles. In the pj;eparation of these explanatory remarks, advantage has been taken by the , writer of the possession of the Prospectus and papers relating to a Permanent Euildirig Society, and of the experience obtained during his connection with that Society which continued up to the time ^^ of his coming to this Colony. r\ have now given an explanation of objects and system of the Society, and lome of the benefits it will confer. lid not, however, have it be supposed insider I have exhausted the sub- rS^^^T / i f 14 t'. TIIH: BRITISH COLUMIUAN * i ject, but I believe I have said sufficient to satisfy eveiy person on rcilection that the institution presents every prospect of beiiif^ of <^reat service to the public, and for the purpose of imparting to any hesi- tating mind, that confidence to which I believe the Society is entitled, I would add, that by the Investment and Loan {Society Ordinance, once at least in every year, tlic assets of the Society are required to be audited and returns made to theCol- oni>al Secretary in a prescribed form, ^yeri- lied by the declarations of the ^^uditor and Treasurer; That no divisiojcis of the proiits shall bo made until th(4. table on which they shall have been arrived at, shall have been sanctioned by such officer as the Governor shall appoint. And that the directors who shall sanction the decla- ration of a dividend when the Society is known by them to be insolvent will be liable for the debts ot the Society to the extent of the aggregate amount of the. dividend so declared ; and further, thj not only are the directors restricted fj boj'rowi ng money from the Societi they and the Secretary and Treasi ■wl— Mfcw— Mil n mm mfficicnt tion that ospect of blic, and any hesi- } which I ^ I would and Loan t in every e required to the Col- brm, Yeri- c j^uditor opi of the y table on arrived at, mch officer And that Li the decla- 5 Society IB 3nt will be ciety to the^ )unt of the^ irther, thj bricted li ^ociet^ 'reasi INVESTMENT AND LOAN SOCIETY. , 15 forhiddcM to receive any bribe, conirius- sions or L!;ratuity for procuring any ad- vance to be made by the Society, and the offenders are made liable to heavy penal- ties. Messrs. E. Grancini, F. Garesche, J. Lowe, E. Marvin, T. L. Stahlschmidt, I. W. Powell, T. Prichard, J. II. Stewart, 0. W. II. Thomson, and J. Trimble have been appointed the iirst Directors of the Society, and the prospectus will be adver- d in a few days. I#l|the present depressed state of tlio Colony^he Society probably wall not *'go ahead" sq fast as it would have done a few years since ; nevertheless I confidently as- eex^ to .if the public will give it their 8t^liMM||^ which I entertain no doubt, all that is^iui red to ensure success is cau- tion^ vigilance^ and routine, and a deterniina' tian on the part of tJie Directors to keep the working expenses of the Society as low as posJble during (is infancy, A SHAREHOLDER. . fi