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 I E) RA RY 
 OF THE 
 U N IVE.RS1TY 
 or 1 LLI NOIS
 
 ^ 
 
 BFILDINd SOCIETY 
 LEGISLATION : 
 
 BEING 
 
 CONSIDEEATIONS ON THE PEESENT STATE OF THE LAW, 
 
 AND SUGGESTIONS FOB ITS AMENDMENT 
 
 AND CODIFICATION. 
 
 BY 
 
 T. Y. STRACHAN, 
 
 FELLOW OP THE INSTITUTE OF ACTUARIES OF GREAT BRITAIN AND IRELAND; 
 
 FELLOW OF THE STATISTICAL SOCIETY OP LONDON ; 
 
 MANAGER OF THE NEWCASTLE-UPON-TYNE PERMANENT BENEFIT BUILDING SOCIETY; 
 
 ETC., ETC., ETC. 
 
 LONDON: 
 W. SPEAiaHT & SONS, 10, CEANE COIJET, FLEET STEEET. 
 
 1869.
 
 LONDON : 
 W. SPEAIQHT AND SONS, PRINTERS, CRANE COURT, FLEET STREET.
 
 BriLDII^G SOCIETY 
 LEGISLATIOJNT. 
 
 The rapid accumulation of wealth in England during the 
 past few years, and the necessity for finding safe and profit- 
 able investments for part of it, may be one of the chief,causes 
 of the recent great spread of Building Societies. Certain it 
 is that they have wonderfully developed, and have become a 
 mighty power — valuable as an investment for small periodic 
 savings, valuable as a means of securing a fair rate of 
 interest for accumulated savings, and especially valuable in 
 the assistance afforded to industrious and saving men for 
 becoming the owners of their own residences or places of 
 business, and laying the foundation of a habitude of saving 
 which has proved the groundwork of subsequent fortune. 
 
 The attention thus directed to such Societies has caused 
 many legal doubts and difficulties to appear, some of them 
 hardly worthy of attention, while some, by being impressed upon 
 the mind of the Registrar, are having the effect of casting doubt 
 and distrust where only confidence should reign. One of the 
 most important is proposed to be dealt with in a Bill now 
 before Parliament, brought in by Mr. Gourley, assisted by 
 Sir Roundell Palmer and Mr. Stevenson. This Bill deals 
 with the right of Societies to borrow money, or to issue paid- 
 
 A 2
 
 4 Building Society Legislation. 
 
 up, realised, or preference shares, being all analogous means^ 
 of raising a fund for the purposes of such Societies. 
 
 While this Bill (valuable so far as it goes) would clear up 
 one point, it leaves many others untouched. Eealising fully 
 the awkwardness of Acts which are repealed for the purpose 
 for which they were originally passed, yet are existing for 
 another purpose, we incline to the opinion that it would be 
 better at once to bring in an Act codifying the law on the 
 subject, removing those restrictions which are found to be 
 obsolete or ineffectual, and providing privileges similar ta 
 those which have been conferred on cognate Societies by 
 legislation subsequent to the passing of the Building Societies' 
 Act. 
 Existing Acts. Only one Act has been passed regulating Building Societies. 
 Thirty- three years have elapsed since it was enacted, and no 
 alteration has been proposed in it. This Act, 6 and 7 William 
 rV., c. 32, passed in 1836, incorporated with it the then exist- 
 ing Friendly Societies' Acts as far as they might be applicable 
 to the purpose of any Benefit Building Society — viz., 10 
 George IV., c. 56, and 4 and 5 William IV., c. 40. These two 
 last-mentioned Acts were repealed in 1840 as regards Friendly 
 Societies by the Consolidation Act of 13 and 14 Victoria, 
 c. 115. But by their incorporation in the Building Socie- 
 ties' Act they remain in full force as regards their Societies 
 *' as far as they may be applicable." 
 
 Some clauses of these incorporated Acts are clearly inap- 
 plicable, such as the objects of the Societies, the return ot 
 sickness experience, and the regulation as to rate of interest 
 allowed by the Commissioners for the Eeduction of the Na- 
 tional Debt on their investments. Some are applicable, and 
 applied, such as the arbitration clause, stamp-duties exemp- 
 tion, and modes of convening special meetings, while some 
 others are on debatable ground, and it is a subject of doubt 
 whether or not they would be held to be applicable if a case 
 should arise upon them. 
 
 It must be admitted that this is an unsatisfactory state of 
 the law ; and when we find that the short Act itself, 6 and 7 
 William IV., c. 32, is in some respects unintelligible, and in 
 other respects open to doubts which harass the mind of the
 
 Building Society Legislation. .5 
 
 liegistrar himself, it must be conceded that the time has 
 arrived when the whole law should be consolidated and 
 codified. 
 
 It is proposed to call attention to Building Societies as 
 they exist under the present law, to point out the disputes 
 and doubts as to the law, and suggest the basis of a new Act, 
 in the hope that discussion may arise upon the question among 
 those interested in it, which may eventuate in a good Bill to 
 be brought in at an early period. There is no doubt that 
 such a Bill, supported by the Building Societies, would readily 
 be passed into law. 
 
 It is difficult, if not impossible, to estimate the extent of Extent of Bmid- 
 Building Societies and the amount of the interests involved. ^"^ Societies. 
 No register is kept. The rules themselves are scattered 
 among the records of the Clerks of the Peace of each county, 
 and no one knows whether the Societies to which the rules 
 belong are now in existence or if they have fulfilled their 
 purpose and been dissolved. A writer * has stated that in 
 1866, 2.050 Societies had been registered, while new Societies 
 were being formed almost daily. He estimates their yearly 
 income at 4,000,000?. sterling. But, while these figures can 
 only be a rough guess, they are certainly within the truth. 
 One Society alone in London received over a million pounds 
 last year ; several others do two and three hundred thou- 
 sand pounds ; and in the provinces are many Societies whose 
 income exceeds a hundred thousand pounds. 
 
 A very large amount of confidence is reposed in these 
 institutions. They are increasing and spreading in every 
 town. A great proportion of the money now advanced upon 
 mortgages of house property is advanced by means of these 
 •Societies. It is found to be more advantageous to repay the 
 principal with the interest by monthly instalments than only 
 to pay interest half-yearly and leave the debt untouched. 
 Another inducement and aid to the development of Building 
 Societies is that the mortgage debt is not liable to be called 
 in at the cost of fresh legal expense. The consequence is, 
 that much of the money which previously was lent on small 
 mortgages is now offered in deposit to Building Societies. 
 * Barry on Building Societies, pp. 4, 5.
 
 Societies. 
 
 Building Society Legislation. 
 
 Hence they "become a medmm or exchange wliere money seek- 
 ing investment is bronglit to meet those who require it. An 
 element of safety is introduced into the transaction by the 
 repayments, which keep reducing the debt ; so that there is 
 less risk of loss by depreciation of the security than in the 
 case of an ordinary mortgage. 
 
 Bases of Early The kind of Building Societies which chiefly obtained at 
 the time of the passing of the Act is j^ointed out to us by 
 the second clause, which enacts — 
 
 " II. That it shall and may be lawful to and for any such 
 " Society to have and receive from any member or members 
 " thereof any sum or sums of money, by way of bonus, on 
 " any share or shares, for the privilege of receiving the same 
 " in advance prior to the same being realised, and also any 
 *' interest for the share or shares so received, or any part 
 " thereof, without being subject or liable on account thereof 
 " to any of the forfeitures or penalties imposed by any Act 
 " or Acts of Parliament relating to usury." 
 
 Premium Socie- "^^ ^^^^ after the formation of a Society as the funds 
 amounted to a share or more the privilege of receiving the 
 advance was put up to auction. An open auction, however,, 
 was frequently avoided. The biddings were taken by tickets, 
 which were collected in a bag or hat three times, and the 
 highest bidder upon the third collection was entitled to the 
 advance, or it was done by sealed offers opened like tenders. 
 By this means a needy man was compelled to pay a large 
 price for his advance, and, as it often turned out, a ruinous 
 price. In some cases the premium so bid was deducted from 
 the principal amount advanced. In others it was spread 
 over a term, and increased the monthly payment. In any 
 case, it was clearly an addition to the rate of interest, and as 
 such was liable to come under the penalties of the usury 
 laws. Hence the clause which we have just quoted, and 
 this may be said to be the first branch lopped off that upas- 
 tree. It was not wholly rooted up, however, till eighteen 
 years after. (Aug., 1854.) 
 
 The heavy premium often paid by a member was found to 
 work most injuriously. The needy man, having got the 
 advance regardless of cost, found himself unable to keep up 
 
 ties
 
 Building Society Legislation. 7 
 
 Ms payments. The mortgage had to be foreclosed, and he 
 found himself the loser of his property and often of what he 
 had contributed to the Society. Many devices were tried to 
 avoid heavy premiums. Eules were framed fixing a maximum, 
 but, like all attempts to fix a price by law, they failed of their 
 object. If a maximum premium was fixed by rule, there 
 must then be a ballot to decide between two or more bidders 
 of the maximum premium. The consequence was that specu- 
 lators entered into competition with the real borrower, and, 
 if one of the former was lucky enough to win the prize, he 
 sold it to his less fortunate rival and pocketed the difference, 
 so that the Society failed to gain what the member lost, and 
 the remedy was worse than the disease, because if the extra 
 premium went into the funds all participated in it, but when 
 it went into the private pocket of a speculator he alone reaped 
 the advantage. Societies were formed with a fixed premium 
 payable monthly, some without premium at all, and a ballot 
 or priority of application decided the rotation of the advance. 
 The disadvantage was that no one could contract to buy a 
 property, not knowing when the money could be had, and 
 Societies continued to exist, small in numbers, weak in sup- 
 porters, and to a great extent useless for the purposes for 
 which they were intended. 
 
 The supply of money was not equal to the demand. The Remedy for Ex- 
 only remedy was the free-trade one of allowing supply to flow mfums. ^^^ 
 where demand called for it. The necessity of borrowing money 
 at the earlier stage of a Terminating Society was thus forced 
 upon the attention of promoters of Building Societies, and 
 successful Permanent Societies felt the constant necessity of 
 borrowing or taking deposits. 
 
 The most natural course was to take up loans from the Right to Borrow 
 bankers of the Society or others willing to lend, and by this ^°°®y- 
 means form a fund out of which advances should be made to 
 members. There appears nothing in the Act condemning 
 such a course. For many years it was a rule duly certified 
 by the Eegistrar that the trustees might borrow money for 
 the purposes of the Society. In those Societies where the 
 premium system was adhered to it formed a source of profit. 
 It had also the effect of lowering the premiums bid for the
 
 8 Building Society Legislation. 
 
 riglit of advance. Other Societies were enabled to start on 
 more liberal bases, and were beginning to prove tbeir 
 inherent value and take that place among provident institu- 
 tions which they are yet destined to maintain. 
 Difficulties with About the year 1857 the Eegistrar ceased to register 
 the Registrar. ^^^^ ^ ^^^q for any Society afterwards enrolled. He said 
 his attention had been drawn to a case where the practice 
 was said to be illegal. He quoted "Dobinson v. Hawks,'* 
 12 L. T., p. 238. This is a leading case upon the question of 
 who may be members of Building Societies, and it is clearly 
 laid down in it that these Societies were meant for individuals, 
 and that Joint-stock Companies could not be members. The 
 action was by a Joint-stock Brewery Company against a 
 Building Society. In the reports the terms Company and 
 Society appear to be misplaced. The Company had borrowed 
 • money of the Society. They brought a suit to obtain a release 
 of their property. It was held that such a Company could 
 not be members of a Building Society. The register of mem- 
 bers was not forthcoming to prove that they had been regis- 
 tered as members. It was decided that they were not and 
 could not be members, and that, therefore, the Company could 
 not horrow money of the Society in the form of shares. It was 
 ordered that an account should be taken charging the Com- 
 pany 5 per cent, interest and crediting the payments. It 
 was a Premium Society such as we have alluded to, and the 
 Society lost the profit of the premium ; but there does not 
 appear, upon any report of the case, any statement that the 
 Building Society had borrowed money. 
 Opinions taken The Ecgistrar, to satisfy himself, appears about this time 
 trar. ^ ^^^^^" ^^ ^^^e taken the opinion of the then Attorney-General (Sir 
 E. Bethell) upon the question, for in Mr. Scratchley's work 
 on " Building Societies " (p. 75, last edition) we find the fol- 
 lowing : " I am of opinion that a rule authorising the raising 
 " of money for the purposes of a Society would be repugnant 
 " to the fundamental principles of the Society, and that it 
 " cannot be certified as a rule in conformity with law 
 " and with the provisions of the statute. (July 6, 1857.)" 
 Acting upon this opinion, the Eegistrar has since refused 
 to certify any such rule. Many Societies, however, exist
 
 Building Society Legislation. 
 
 which have the rule duly certified. No intimation was 
 given to them that their rule was bad. The rule is valuable 
 to them, and they continue to act upon it. If, however, it 
 be bad in law, the Eegistrar's certificate cannot make it 
 good. In any case it is a very anomalous position for 
 Societies that one should have a rule certified which another 
 cannot obtain. 
 
 With all deference to the opinion of Sir E. Bethell (now 
 Lord Westbury), we are unable to follow his view of the 
 matter, unsupported as it is by either arguments or cases. 
 After twelve years of opposition to the opinion, it is gratify- 
 ing to have a counter opinion of Sir Roundell Palmer, also in 
 reply to a case stated to him by the Eegistrar, who says, " I 
 " am not able to agree with the opinion formerly given by 
 " Sir Eichard Bethell. (June 7, 1869./' With two such great 
 legal luminaries so diametrically opposed we may be excused 
 holding by our own opinion. Looking at Sir Eichard 
 Bethell's opinion, we would ask. What are the "fundamental 
 " principles of the Society" to which this practice is opposed? 
 The real " fundamental principle " appears to be the receiv- 
 ing money to create a fund which is to be lent out in accord- 
 ance with the rules. The whole dealings of the St)cieties 
 are in money. It is their commodity. The question is. Shall 
 they receive money from others than their members, and in 
 other forms than by share subscriptions ? Those who hold 
 that they shall not at least ought to be able to point out 
 the law or the case where it is so laid down. 
 
 The question often appears to be argued as though Building 
 Societies were Joint-stock Trading Companies, who wished 
 to supplement their subscribed capital by loans to be lent out 
 in works or speculations. They are talked of as though they 
 were a Eailway Company which had too much money bor- 
 rowed in proportion to the capital. Even judges talk of the 
 amount borrowed bearing some proportion to the capital of 
 the Society. What, then, is the capital of a Building Society ? 
 Some Societies advertise their subscribed capital at the total 
 amount of the shares when each has completed its term — 
 that is, the ultimate amount of the contributions and interest. 
 Such a sum is totally illusory. Others go to the opposite ex-
 
 10 Building Society Legislation. 
 
 treme, and take tlie amount held belonging to depositing mem- 
 bers, neglecting altogether the contributions of the borrowing 
 members. In fact, there is no analogy between these Societies 
 and Joint-stock Companies, and we are ve^y apt to be led 
 into confusion by discussion about capital. In regard to the 
 question of security for the money borrowed, it is generally 
 provided that in case of loss or deficiency members shall con- 
 tribute jpro rata, so that if a Society should be unfortunate a 
 few months' extra contributions from all the members would 
 choke the deficiency. All the money borrowed, in addition 
 to the deposit subscription, is lent on mortgage. All that is 
 required is to see that the Society can meet its engagements. 
 The continuing members of a Society will take care not to 
 let others withdraw without contributing to a loss if they 
 are unfortunate. In all cases, instead of raising obstructions 
 and enacting restrictions, it may safely be left to those having 
 money to deposit that they will exercise ordinary caution, and 
 see that the Society to which they will lend their money is 
 able to repay them. 
 
 Notwithstanding the Eegistrar's refusal to certify borrow- 
 ing powers, many new Societies continued the practice, whilst 
 others evaded the difiiculty by creating realised, paid-up, or 
 realised preference shares, upon which, by the first clause of 
 the Building Societies' Act, they were justified in paying out 
 interest half-yearly. This clause reads thus : — 
 6 & 7 Wm. IV., " I. Whereas certain Societies, commonly called Building 
 " Societies, have been established in different parts of the 
 " kingdom principally amongst the industrious classes, for 
 " the purpose of raising, by small periodical subscriptions, a 
 " fund to assist the members thereof in obtaining a small 
 " freehold or leasehold property, and it is expedient to afford 
 " encouragement and protection to such Societies and the 
 *' property obtained therewith : Be it therefore enacted by 
 " the King's most excellent Majesty, by and with the advice 
 " and consent of the Lords Spiritual and Temporal, and Com- 
 " mons, in this present Parliament assembled, and by the 
 " authority of the same. That it shall and may be lawful 
 " for any number of persons in Great Britain and Ireland to 
 " form themselves into and establish Societies for the purpose 
 
 C.32.
 
 Building Society Legislation. H 
 
 " of raising, by the monthly or other subscriptions of the 
 " several members of such Societies, shares not exceeding the 
 " value of one hundred and fifty pounds for each share, such 
 ** subscriptions not to exceed in the whole twenty shillings 
 " per month for each share, a stock or fund for the purpose 
 " of enabling each member thereof to receive out of the funds 
 ** of such Society the amount or value of his or her share or 
 " shares therein, to erect or purchase one or more dwelling- 
 " house or dwelling-houses, or other real or leasehold estate, 
 " to be secured by way of mortgage to such Society until the 
 " amount or value of his or her shares shall have been fully 
 " repaid to such Society with the interest thereon, and all 
 " fines or other payments incurred in respect thereof, and to 
 " and for the several members of each Society from time to 
 " time to assemble together, and to make, ordain, and consti- 
 " tute such proper and wholesome rules and regulations for 
 " the government and guidance of the same as to the major 
 " part of the members of such Society so assembled together 
 " shall seem meet, so as such rules shall not be repugnant to 
 " the express provisions of this Act and to the general laws 
 " of the realm, and to impose and inflict such reasonable 
 " fines, penalties, and forfeitures upon the several members of 
 " any such Society who shall offend against any such rules, 
 " as the members may think fit, to be respectively paid to 
 " such uses for the benefit of such Society as such Society by 
 " such rules shall direct, and also from time to time to alter 
 " and amend such rules as occasion shall require, or annul or 
 " repeal the same, and to make new rules in lieu thereof 
 " under such restrictions as are in this Act contained ; pro- 
 " vided that no member shall receive or be entitled to receive 
 " from the funds of such Society any interest or dividend, by 
 " way of annual or other periodical profit upon any shares in 
 " such Society, until the amount or value of his or her share 
 " shall have been realised, except on the withdrawal of such 
 " member, according to the rules of such Society then in 
 " force." 
 
 It has very properly been said to be " by no means a good 
 " specimen even of the low standard of legislative composition." 
 The peculiarity of its grammatical construction is at the
 
 12 Building Society Legislation. 
 
 bottom of all tlie difficulties on this subject. What can be 
 meant by Societies being established " for the purpose of 
 " raising, by the monthly or other subscriptions of the several 
 " members of such Societies, shares not exceeding the value of 
 " 150Z. for each share, such subscription not to exceed on the 
 " whole 20s. per month for each share, a stock or fund for 
 " the purpose of enabhng each member thereof to receive out 
 " of the funds of such Society the amount or value of his or 
 " her share or shares therein " ? Is it the amount of the shares 
 which is to be raised by the monthly or other subscriptions of 
 the members ? If so, what is the verb governing " a stock 
 " or fund," &c. ? Or is it that a fund is to be formed out of 
 which advances in the form of shares are to be made to the 
 members under restriction as to amount — viz., 150Z. per share 
 and 20s. per month repayment ? It is as capable of the latter 
 construction as of any other, and under such a reading there 
 would be an authority to borrow money. 
 
 Realised Shares. The profiso at the end of the clause " that no member 
 " shall receive or be entitled to receive from the funds of such 
 " Society any interest or dividend by way of annual or other 
 " periodical profit upon any share in such Society until the 
 " amount or value of his or her share shall have been 
 " realised, except in the withdrawal of such member according 
 " to the rules of such Society then in force," has been taken 
 advantage of, and realised shares have been created by one 
 payment, which then could bear interest, to be paid out half- 
 yearly. For some years the Eegistrar has certified a rule to 
 the effect limiting the value of the shares to 150Z. only. The 
 opinion of Sir Eoundell Palmer seems to go to the position 
 that upon these shares also not more than 20s. should be 
 received in any one month, consequently that the value of 
 the shares should not be fixed above 11. each. These opinions 
 seem to neglect the enactment that what is to be raised is by 
 the monthly or other subscriptions. To remove the doubt, 
 however, both on this point and that of borrowing money is 
 the object of the short Bill brought into the House last Session, 
 the text of which we print in the Appendix. 
 
 Subscriptions in It is a practice in many Societies to receive subscriptions 
 vance. ^ advance. In some an equivalent discount is allowed for
 
 Building Society Legislation, 13 
 
 tlie prepayment. A member pays three or six montlis' sub- 
 scription down, and goes free for tbe rest of tbe stipulated 
 term. Many members under this regulation pay quarterly 
 wben tbey get their rents. The Registrar now doubts if 
 such a rule is in accordance with the Act where the amount 
 so paid exceeds 11. per share. He is now inclined to read 
 the Act as strictly meaning that upon one share no more than 
 11. can be taken in any one month. Such a restriction can- 
 not be supported by any reasoning. It appears to us that if 
 it applies to subscriptions in advance, it would equally apply 
 to subscriptions in arrear ; and who would say that a Society 
 is not to receive arrears when the amount is more than 11. 
 per share ? 
 
 It is a usual thing to allow a member to redeem his pro- 
 perty at any time. The amount due is or ought to be a 
 discounted prepayment of his subscriptions, and is always 
 more than 20s. per share. Is it to be held to be contrary to 
 law to redeem the mortgaged property ? 
 
 It was decided in Morrison v. Glover, 15 L. T. rep. Ill, that inutility of Re» 
 a member might hold more than one share. This renders 
 the restriction as to the amount of a share or of the subscrip- 
 tion thereon wholly inoperative. By decreasing the value of 
 the shares and multiplying the number the difficulty may be 
 evaded. But during the thirty-three years in which the 
 difficulty was lying dormant there have been hundreds of 
 Societies certified whose rules would be in contravention of 
 law if the recent doubts have any foundation. Hence the 
 necessity of an enactment sufficiently general to cover ex- 
 isting Societies, and to place their rules beyond cavil. It 
 has never been urged that this practice is at all vicious 
 or against sound polity. The difficulty is merely a technical 
 one. 
 
 It has been said that Building Societies are not carrying out 
 their original intention because they are so much larger than, 
 and are composed of a different class from what was contem- 
 plated in the Building Societies' Act in 1836. It may well be 
 conceded that these Societies are more extensive in their 
 operations than could have been contemplated at that remote 
 period. We could quote many subjects which have expanded
 
 Building Society Legislation. 
 
 far beyond vrliat tlie most sanguine could hope for in those 
 days, and wliicli are ranked among the blessings and advan- 
 tages of enlightened legislation. 
 
 These Societies are not confined to what some would inter- 
 pret as the limit of the expression " the industrious classes " 
 used in the preamble. But the Act itself goes farther than 
 the preamble, and makes it lawful for " any number of 
 " persons " to form a Society. 
 
 The success which has attended these Societies, and the 
 adhesion of the trading classes, may be a voucher for their 
 sound commercial principles, entitling them to a legal status, 
 free from unnecessary doubts and disputes. 
 
 But while considering the intention of the Legislature, 
 how is the last section of the first clause to be accounted for ? 
 "We are quite unable to understand any state of affairs at that 
 time when shares which were fully realised could be required 
 to be retained in a Society. Societies were all terminating 
 ones. All the shares became realised at one period, and 
 the Society then ceased to exist. Considering the Societies 
 then in vogue, it appears conclusive that a class of realised 
 shares was contemplated which could be created at an early 
 period of the Society's existence ; and such is the practice 
 now in many Societies. 
 
 The various Societies throughout the country create their 
 funds by one or more of ihe following methods : — 
 
 1. By the ordinary subscriptions of the members. 
 
 2. By loans taken up by the trustees or directors, 
 interest being usually paid out half-yearly. 
 
 3. By deposits at such rate of interest and with- 
 drawable upon such notice as may be agreed upon. In 
 some cases withdrawable on demand by cheques. 
 
 4. By paid-up, reahsed, or reaUsed preference shares, 
 interest being paid out half-yearly. 
 
 And the fund thus created is lent to members in shares, 
 repayable in one or more of the following methods, or in a 
 slight modification of some of them : — 
 
 1. In shares of a fixed amount, repayable by monthly 
 subscriptions. Interest, and premium or redemption fee, 
 being added to the monthly payments, some premiums
 
 Building Society Legislation. 
 
 being fixed by the rules, others depending upon the 
 biddings at a sale of shares. 
 
 2. In shares upon which a minimum annual payment 
 is required, but any larger amount may be paid, interest 
 (generally at 6 to 6j per cent.) being charged upon the 
 balance remaining due at the end of each year. 
 
 3. In shares of a nominal amount, to which is added 
 a premium generally of 10 per cent., the security being 
 taken for the larger sum, the repayments being as in the 
 last case. Interest is generally charged at 5 per cent., 
 and in case of redemption within ten years a propor- 
 tionate part of the premium is allowed to the member 
 withdra^ving. 
 
 4. In shares (generally of lOOZ. to 120Z. each), for 
 which a fixed and definite number of monthly or quarterly 
 payments are calculated and stipulated for. 
 
 5. In advances varying in amount as the term over 
 which the repayments are to be spread, the monthly 
 subscription, including interest, being a fixed amount 
 per share upon all shares in the Society. 
 
 (In Cases 4 and 5 there is generally a loan fee 
 charged upon the advance being granted. 'In Case 4 
 it is often made the price of immunity fi'om future 
 losses of the Society. The principle is that adopted 
 by Mr. Scratchley, and said to be the foundation of 
 Permanent Societies. In Case 5 the loan fee is to 
 create a reserve fund, the tables being generally 
 calculated with little or no margin for profit.) 
 
 6. In advances repayable without interest. In many 
 of them, however, there is now an alternative ballot 
 without interest and sales at a premium. 
 
 Societies in Class 6 have been self styled Mutual Socie- 
 ties. It does not appear on what their exclusive title rests. 
 The advocates of the other systems all believe in the mutuality 
 and generally in the superiority of their own Societies. It is 
 not our business here to institute comparisons, or pronounce 
 in favour of any one system over another, but rather to 
 suggest enactments which will be sufficiently general to allow 
 aU honest Societies to meet and claim the protection of the law.
 
 16 Building Society Legislation. 
 
 Necessity for Ge- It wiU be Seen from a contemplation of tlie bases of 
 New Act. existing Societies tbat every degree of difference is to be 
 
 found in tbem, from tbe somewhat gambling system of 
 balloting for money, to be bad free of interest, to tbe mathe- 
 matically calculated repayments involving a fixed rate of 
 interest. We may infer that the most equitable and just are 
 those likeliest to succeed. It would be unwise to attempt 
 to restrict the mode of doing business. All matters of bargain 
 should be left to the contracting parties. It may be desirable 
 that the rules of each Society should clearly show how it 
 is proposed to raise the funds, how advances shall be made, 
 and upon what principle redemption may be made. With 
 these data made known they may be left to court public 
 support upon their merits. 
 Right of Re- The latter question is one of great importance. The most 
 
 Member. ^ of the cases before the Courts in which Building Societies 
 have been concerned raise the question of the terms upon 
 which a mortgage could be redeemed. In the old Premium 
 Societies an arbitrary term for the Society's existence was set 
 up. Ten years were generally the time which their prospectus 
 set out. Mr. Scratchley shows that it is impossible for a 
 Society to run out in ten years at 10s. monthly subscription 
 for 120Z. shares, unless 14|- per cent, is realised on their 
 money. The promoters could conceive no basis of calcula- 
 tion to solve the problem of how much was equitably due 
 at any given time. Hence inevitable dissatisfaction when a 
 mortgage was to be redeemed. 
 
 In the second and third cases the balance due usually 
 appears upon the pass-book and in the Society's ledger. At 
 the end of each year the interest is charged and the propor- 
 tion of profits credited. The balance shows the debt due, 
 subject to a provision in the rules, usually in Case 2, adding 
 a redemption fee of, say, 1 per cent., in Case 3 crediting a 
 proportion of the premium for the imexpired term contem- 
 plated at the time of the loan. 
 
 In Case 4 the redemptions are to be calculated by the con- 
 sulting actuary. There is often a discretion allowing him to 
 discount the redemption payment at a lower rate of interest 
 than is involved in the original calculation. While we admit
 
 Building Society Legislation. 17 
 
 that all sucli stipulations, forming part of a bargain, are 
 binding, it would be well that members understood the effect 
 of such a condition. The rates of repayment in the rules 
 are calculated at 6 to 7 per cent., and the redemption may be 
 <jalculated at not less than 3 per cent. If a person borrows for 
 fourteen years, and at the end of four years wishes to redeem 
 the ten years' charge yet to run, the actuary, by calculating 
 the redemption at 3 per cent., secures to the Society, not 
 only the 6 or 7 per cent, which it has got for the four years 
 the money was out, but 3 to 4 per cent, upon the next ten 
 years' payments, when the Society has the money in hand, 
 which makes the transaction rather a costly one for the 
 borrower. 
 
 In Case 5 tables are published Avith the rules, showing the 
 amount due on redemption each month. 
 
 We cannot conceive that any one could ever wish to pay 
 off in Case 6. If he should require to sell his property, he 
 would immediately look out for another, so that he might 
 secure the rents, while he gradually pays back the capital 
 without interest. 
 
 In Case 1 the payments were (upon a share of 120(.) 10s. 
 per month subscription, IO5. per month interest, and Is. to 
 6s. per month premium. Although the total payment ex- 
 ceeds 20s. per month for a share, yet, as only part of it was 
 called subscription, it was supposed to be within the letter 
 of the law. In Case 4 principal and interest are mixed up, 
 and only the actuary can tell how much is subscription of the 
 capital and how much interest each month. These tables, 
 however, have been regularly and commonly certified, 
 although the monthly payments appear and are beyond 20s. 
 for a share in a month. In Cases 2 and 3 the payments may 
 be, and doubtless often are, more than this maximum ; it is 
 not customary to insert a limit in the rule fixing the maxi- 
 mum amount which any member may pay. 
 
 When the Building Societies' Act was passed the office The Reiristrar 
 of Eegistrar of Friendly Societies and of Savings' Banks was cate. ^^ ^ ^ ' 
 then in existence. The same officer was, by the incorporation 
 of the Friendly Societies' Act, constituted Eegistrar of Build- 
 ing Societies. He is now paid by salary for Friendly Socie-
 
 cate. 
 
 13 Building Society Legislation. 
 
 ties' registration. He receives a guinea fee for every new 
 rule or alteration of rule by Building Societies. His 
 duty is to examine the rules, see tliat they are in accord- 
 ance witli law, advise with, the secretary if anything objec- 
 tionable should be found therein, and when found in accord- 
 ance with law to certify the same. They then become 
 binding on all members, and may be given in evidence. 
 Production of a coj)y purporting to be signed by the Regis- 
 trar is to be admitted as evidence of their registration, unless 
 evidence to the contrary be produced. The Registrar sends 
 the copy of certified rules to the Clerk of tbe Peace for the 
 county where the Society meets, to be by him placed among 
 the records of the county. There does not appear to be any 
 account kept of the Societies enrolled — any number of Socie- 
 ties may be and are enrolled under the same or very similar 
 names. Ko returns or statistics can be had. Societies dis- 
 solved give no notice to the Registrar. 
 Tse of Certifi- It was doubtless the intention of the Legislature that the 
 rules, when certified, should be conclusive evidence of their 
 legality. The tenor of the Friendly Societies' Acts was to 
 free them from liability to expensive legislation. Within the 
 past year, however, two Bills have been filed in Chancery 
 seeking to declare the rules of Building Societies to be con- 
 trary to law. 
 
 If an official is appointed to examine rules, and see that 
 they are in conformity with law, surely his certificate ought 
 to be final. There ought to be no further doubts. Or, if 
 doubts should arise, there ought to be a means of settling 
 them, and rectifying rules without the expensive and annoy- 
 ing resource to the Court of Chancery. On the part of 
 Priendly Societies it has been long complained that the Regis- 
 trar's certificate was useless, and even misleading, seeing that 
 the sufficiency of the rules and payments to secure the objects 
 was not inquired into. How much greater cause of com- 
 plaint have the members of Building Societies when rules 
 are one day certified and the next refused a certificate, no 
 notice being given to the Societies whose rules are afterwa^rds 
 believed to be not in accordance with law ? 
 
 We seek exemption from such doubts and anomalies. If a
 
 Building Society Legislation. 19 
 
 rule be presented to the Registrar wliicli lie considers illegal, 
 and after consultation with the promoters or managers of the 
 Society he sees no reason to alter his mind, let the Society 
 agree with the Registrar to state a case for the opinion of 
 the Court, and let any decision so arrived at have the force 
 of a decision in a suit. 
 
 And when a rule has been already certified, and subsequent Alteration of a 
 reasons cause doubts to exist in the Registrar's mind, a similar ^^'^^^^'^ ^"i^- 
 power to state a case and obtain an authoritative decision 
 would avoid the differences now existing. In such a case it 
 would be necessary to give notice to Societies acting under 
 the illegal rule to amend or expunge the same. The Regis- 
 trar should have power to give a certain time for such altera- 
 tion, and, failing the alteration by the Society, it should be 
 no longer entitled to the benefit of the Act. Such a neglect 
 of the Registrar's notice might also be made a ground of 
 application for winding up the Society. 
 
 The fees payable on registration of Friendly Societies were Registrar's Fees. 
 swept away, and the Registrar now receives a salary for his 
 services in regard to these Societies. The fees payable under 
 the old Act continue to be paid by Building Societies, and 
 we suppose will be additional perquisites to the Registrar. 
 We would not propose any exemption to Building Societies on 
 this head. They are able and prepared to pay all necessary 
 expenses attending their constitution, and would rather pay 
 an extra fee than be subject to doubts and be liable to be 
 harassed by suits or actions. We believe that no Society 
 would object to pay the fee even on altering a rule at the 
 request of the Registrar, on the ground that the guinea thus 
 spent in avoiding suspicion and probable law costs was well 
 invested. 
 
 While most cognate associations are now required to file riling Balance 
 balance-sheets, it will probably required of these Societies to ' ^^ ^* 
 do similarly. The Bill now before the House goes to this 
 extent. Our experience leads us to attach very little im- 
 portance to filing balance-sheets in a public office. On the 
 part of Building Societies no objection would be made. We 
 conceive, however, that the proposal now before Parliament 
 is defective. 1st. Because the Registrar, having no pre- 
 
 B 2
 
 20 
 
 Building Society Legislation. 
 
 sent list of Societies, is not in a position to say whether he 
 gets "balance-sheets of all existing Societies. 2nd. Although 
 a member may sue for penalties, there is no mode provided 
 by which he may know whether or not the balance-sheet has 
 been filed. And, 3rd. There is no provision as to what the 
 Registrar is to do with the balance-sheets when he gets 
 them. The necessity for a thorough and efficient audit is 
 one which we would at all times strongly urge. 
 Re-Registration ^® would suggest that, upon the passing of an Act, all ex- 
 of Existing So- igting Societies should within a given time send the Eegistrar 
 a copy of their present certified rules. If anything should 
 appear in them repugnant to the Act, the Society should be at 
 once required to alter or expunge it. From these rules the 
 Registrar could form a register of existing Societies to which 
 he could add all new Societies when certified. On the 
 dissolution or extinction of a Society notice should be 
 sent to the Registrar, who would enter it accordingly. 
 Until such notice of extinction the penalties for non- 
 registration of accounts to be in force. The Registrar would 
 thus be enabled to see that each Society had filed its ac- 
 counts. He, as well as a member, should have power to sue 
 for penalties. 
 
 A small fee might be payable on the registration of every 
 balance-sheet, for which a receipt or certificate of registration 
 should be issued by the Registrar. This receipt or certificate 
 should be exhibited in the Society's room, or produced to a 
 member on demand, and the refusal to produce should render 
 the officer liable to a penalty. The Registrar should make a 
 schedule of the Societies and certain particulars from their 
 balance-sheets, which would be the basis of statistics as at pre- 
 sent is the case with Savings' Banks. The difference would 
 be that Savings' Banks' accounts are all made up to one certain 
 day in the year ; Building Societies close their accounts on 
 various days. It would be part of the register to show the 
 time the balance-sheet is made up to, and the returns would 
 be of all Societies whose accounts close on or before a given 
 day. 
 
 It is not at present required that the appointment of 
 trustees should be enrolled. In some Societies, however, it 
 
 Enrolment of 
 Trustees.
 
 Building Society Legislatio7i. 21 
 
 is made a rule. It would be well that tbe law should require 
 the registration of every newly appointed trustee. The pro- 
 l^erty of the Society is vested in trustees, and upon a 
 mortgage being paid off and property redeemed, or on 
 the sale of property under the powers of sale in the 
 mortgage deed, evidence is often required of the due 
 appointment of the then trustees. A copy of the resolu- 
 tion certified by the Eegistrar might be made good proof 
 that the trustee is duly appointed, and immediately vest 
 the property in him. 
 
 It is interesting, on looking bacl^ to old privileges, to see Ancient Privi- 
 how the march of progress has left them far in the rear, and ^^^^' 
 what was once a valuable concession is shorn of much of its 
 glories by the advanced state of society and its consequent 
 improvements. The Act of 4 and 5 William IV., cap. 40, 
 sec. 13, passed in 1834, and still in existence as regards 
 Building Societies, enacts that all letters and packets to 
 the Eegistrar are to go post free, and severe penalties are 
 enacted against a Eegistrar using this privilege for other 
 than official purposes. At that time letters were single, 
 double, &c., and were charged according to distance. 
 
 The rates for an ordinary letter were — 
 
 Not exceeding 15 miles 
 
 Abov<^ 20 and not exceeding 30 miles 
 „ 50 „ 80 „ 
 
 „ 170 „ 230 „ 
 
 „ 400 „ 500 „ 
 
 M. 
 
 6d. 
 
 8d. 
 Ud. 
 Ud. 
 
 The rules of a Society would by these rates cost a heavy 
 postage. Now, by the book post, they go any distance 
 for Id., up to ^Ib. weight. 
 
 Upon a set of rules being duly certified members should Rights of Socie- 
 be entitled to all the benefits and privileges of the Act. bers.^^ 
 No doubt many of the privileges conferred by the Building 
 Societies' Act of 1836 are now extinct, and many are practi- 
 cally valueless. 
 
 The repeal of the usury laws in 1854 renders the privi- e &j Wm. iv., 
 lege in Clause 2 unavailing. The power given to the Court 
 to appoint a person to convey when trustees are out of
 
 22 Building Society Legislatiofi. 
 
 10Geo.IV.,c.56, 
 s. 15, 16, 18, 19. 
 
 cf Death or 
 Eankruptcy. 
 
 jurisdiction of the Court is also in most part superseded by- 
 recent enactments for relief, &c., of trustees. When this 
 Act was passed County Courts had not been founded ; now 
 they have jurisdiction given them in Friendly Societies' 
 cases, besides others both of law and equity. We have 
 no hesitation in considering them the proper tribunal for 
 
 Do., s. 17. Building Society disputes. The clause requiring barristers 
 
 to move without £ee has never been acted on by Building 
 Societies, and is contrary to their self-supporting character. 
 Even the stamp exemptions are shorn of much of their value. 
 In 1836 stamp duties were heavy. A mortgage of 500Z. was 
 liable to 41. stamp ; receipt stamps were from Sd. to 10s. 
 each. Now mortgages are charged only 2s. 6d. per cent., 
 and the uniform receipt stamp of Id, covers any amount. 
 
 ISm'nUnLses % *^® ^ ^^^ ^ William IV., c. 40, s. 12, Building Societies 
 acquired the Friendly Society right of priority of payment in 
 case of the death or bankruptcy of an officer having money in 
 his hands belonging to the Society. The Bankruptcy Act of 
 1849 repealed the right as regards Building Societies. It still 
 holds as regards Friendly Societies. It is believed to have 
 been an oversight that Building Societies were not mentioned 
 along with Friendly Societies. It is only another evidence of 
 the difficulty and danger attending incorporating one Act 
 with another for a special purpose, and then repealing it 
 for its original purposes, but leaving it existing as incor- 
 porated. The majority of peoj)le looked upon an enactment 
 in favour of Friendly Societies as extending to Building 
 Societies. Such, however, is not the case unless it be 
 expressly so stated. If an officer, at the time of his death, 
 have either goods or money in his possession by virtue of his 
 office, the ownership should not change by these occurrences. 
 The property should be given up to the rightful owner. The 
 new Bankruptcy Act is expected to modify the order and 
 disposition clause of the old Acts, which was similar in 
 principle to that which we are now objecting to. If goods 
 were in the order and disposition of the bankrupt at the 
 time of his bankruptcy they were held to belong to him, 
 and the rightful owner lost his property. The tenor of 
 the new law is that the owner should have his property
 
 Building Society Legislation. 23 
 
 restored to Mm. We seek to restore a similar privilege 
 to Building Societies in case of officers dying or being 
 "bankrupt with funds in tlieir possession by virtue of tlieir 
 office. 
 
 The power of nomination by a member, or tlie right of Power of Non.- 
 
 ^ •' 1 ■) no nation or Distn- 
 
 distribution without administration of a member s effects button. 
 who has had on deposit a sum not exceeding 50Z., — similar 
 to that of Friendly Societies by 18 and 19 Vict., c. 61, s. 31, 
 and of Industrial and Provident Societies by 25 and 26 Vict., 
 €. 87, s. 16, — ought also to be extended to Building Societies. 
 By the present law, 10 Geo. IV., c. 56, s. 24, Building Socie- 
 ties have the right to pay to representatives of deceased 
 members deposits not exceeding 201., but there is not the 
 power of nomination contained in the subsequent Acts 
 above quoted. 
 
 By section 32 of 10 George IV., cap. 56, minors may Minors may be 
 become members with the consent of their parents or 
 guardians, and arc empowered to execute all instruments, 
 <fcc. It is doubted, however, whether a minor could be- 
 -come the owner of property, and give a legal mortgage 
 thereof. It may not be necessary to alter the law of in- 
 fancy further than to allow them to be depositing members, 
 and on withdrawal to give quittances, &c. 
 
 Subsequent to the date of the Building Societies' Act it Amaigamaticn. 
 v/as found advisable to confer on Friendly Societies the right 
 of amalgamating. By 18 and 19 Vict., c. 63, s. 14, it is de- 
 clared lawful for two or more Societies to unite and become 
 incorporated in one with or without dissolution or division of 
 the funds, or for one Society to transfer its engagements to 
 another Society. In many cases this would be found to be a 
 very valuable privilege to Building Societies ; and as Build- 
 ing Society calculations, by being divested of both health and 
 life contingencies, are less complicated than those of Friendly 
 Societies, the concession may the more readily be made. 
 There are many small Societies whose expenses are a heavy 
 •charge upon tlie few members. There are other Societies in 
 districts where all necessary branches are not supported. 
 Some districts supply borrowing members, and some depo- 
 positors only. In other places Societies started under
 
 24 
 
 Biiildincj Society Legislation. 
 
 Eeconveyance. 
 
 Stamp Exemp. 
 tions. 
 
 auspicious circumstances have met adverse ones, and pro- 
 sperity leaves tliem. Then arises a demand for repayments, 
 of deposits. Borrowing members cannot be compelled to 
 repay their advances quicker than was stipulated in the rules. 
 The consequence is distrust and fear of loss, which are often 
 miore imaginary than real. The only course at present open 
 is to induce borrowing members to obtain an advance from 
 another Society, and pay the unfortunate one off. This is 
 attended with expense to them. Surveyors and solicitors are 
 to have fees, — new deeds are to be prepared. We would 
 recommend that upon a resolution, duly arrived at by a 
 majority, say, of two-thirds of the members of each Society, 
 specially summoned to consider the matter — duly confirmed 
 at another meeting held at least twenty-one days thereafter — 
 the amalgamation should tate place, and, upon a transfer by 
 the trustees of the discontinuing Society, the assets should 
 become vested in the new trustees. It would be proper to 
 have a valuation of the assets, and in some cases a re- 
 arrangement of the contributions. This might be done, and 
 still leave the powers of sale, &c., in the mortgage-deeds in 
 force to the trustees of the amalgamated Society as fully 
 as they originally were. Such an enactment would be valu- 
 able, not only to many Societies now in existence, but would 
 aid materially in the winding up of Societies, of which we 
 shall have hereafter to treat. 
 
 One of the most valuable clauses in the 6 and 7 Wm. IV^., 
 c. 82, is the fifth clause, declaring a receipt endorsed upon 
 a mortgage- deed to be sufficient discharge without a re- 
 conveyance, and it must by no means be omitted from a 
 new Act. 
 
 The present Act, clause 3, also permits Societies to de- 
 scribe in their rules form of mortgage, transfer agreement, 
 bond, or other instrument necessary for carrying the pur- 
 poses of the Society into execution. To the list might be 
 added the words "certificates and releases." 
 
 From 1836 to 1868 these Societies were ' exempt from 
 all stamp duties by 6 and 7 Wm. TV., c. 32, s. 8, and 
 10 Geo. IV., c. 56, s. 37. In 1868, near the close of the 
 Parliamentary Session, there was a clause found inserted in
 
 Buildincj Society Legislation. 25 
 
 an Inland Revenue Bill abrogating this exemption npon 
 mortgage- deeds for upwards of 200L It almost passed be- 
 fore the Societies knew of it. Mixed up with various matters 
 of inland revenue, it was nearly smuggled through the 
 House before any one was aware of its existence. A few 
 Societies heard of it, too late for organising opposition. 
 G-reat annoyance was felt at the surreptitious manner in 
 which it was introduced. The exertions of those who moved 
 in the matter could only modify the clause so that the limit 
 was fixed at 500Z., and words were inserted for the purpose 
 of declaring that the reconveyance endorsed on the back of 
 the mortgage-deed should not in any case be liable to stamp. 
 The clause itself, as ultimately passed, reads thus : — 
 
 " The exemption from stamp duty conferred by the Act of 
 " the sixth and seventh years of King William the Fourth, 
 " chapter thirty-two, for the regulation of Benefit Building 
 " Societies, shall not extend to any mortgage to be made after 
 " the passing of this Act, except a mortgage to be made by a 
 " member of a Benefit Building Society for securing the re- 
 " payment to the Society of money anclnot exceeding fivehun- 
 " dred pounds : provided always that nothing herein contained 
 " shall render any receipt given under the provisions •of the 
 " fifth section of the said Act liable to any stamp duty." 
 
 Complaints are made that it *is unintelligible. It is an 
 instance of the effects of verbally altering a sentence already 
 formed, — more especially when part of it is considered to 
 have some hidden effect not apparent on the surface. The 
 Solicitor to the Treasury insisted on the form of the clause 
 as it was originally brought in. With great difficulty he was 
 brought to consent to the insertion of a proviso that stamps 
 were not to be required on reconveyances. He had an idea 
 that Building Societies lent to non-members, and that the 
 wording of the clause in that case rendered them liable to 
 stamps. Hence he adhered to the form. 
 
 When the clause was passed and printed it was found that • 
 one word " and" was not among those struck out, although 
 intended to be. The effect is that the clause is practically 
 unintelligible, although its intended meaning may be inferred. 
 
 An attempt has since been made to have the old exemj^tion
 
 Building Society Legislation. 
 
 restored — as yet without any apparent effect. If it should be 
 found impracticable to restore the total stamp exemption, we 
 may at least claim to pay only upon mortgages. By this 
 means the whole of the money turned over by Building Socie- 
 ties would contribute once to the revenue. It might fairly 
 be allowed that money at its inception should not be liable to 
 stamp duty, whether the acknowledgment for it be by bond, 
 certificate, or simple receipt. 
 
 By 10 Geo. IV., c. 56, s. 21, all the property of the Society 
 is vested in the trustee or treasurer, and in their successors 
 without assignment or conveyance, and all actions are to be 
 brought by and against the treasurer or trustee. The trea- 
 surer was added because Friendly Societies frequently had 
 no trustee. Not having much property, they neglected 
 appointing trustees ; property, therefore, was vested in the 
 treasurer. In Building Societies, however, trustees are 
 necessary officers, and we believe no Society is without them. 
 There is, therefore, no necessity to substitute or add the 
 treasurer. The funds should vest and all actions be brought 
 by or against the Society in the name of the trustee. 
 
 So much importance has been attached to the arbitration 
 clauses of the Building Societies and Friendly Societies that 
 we feel it will be necessary to give some reason for not con- 
 curring in the almost universal feeling in favour of arbi- 
 tration. 
 
 When the Building Society Act was passed the only remedy 
 for settling disputes was the expensive and slow process by 
 the superior Courts. It was therefore a great privilege to have 
 a civil action settled by the justices or by arbitration. In 1829 
 the 10 George IV., c. 56, s. 27 & 28, gave liberty to Friendly 
 Societies to have their disputes settled by arbitration or by 
 the justices, and in case of arbitration the justices were 
 empowered to enforce their decision. In 1834 the 4 and 
 5 Wm. IV., c. 40, extended the privilege thus far — That 
 when the rules of a Society provided for settling disputes by 
 arbitration, and the Society neglected to appoint a reference, 
 or the arbitrator refused or neglected to make an award, then 
 the justices should decide. 
 
 Such are the enactments which regulate Building Socie-
 
 Building Society Legislation. 27 
 
 ties ; they have, however, been altered and repealed from time 
 to time as regards Friendly Societies. We purpose to follow 
 the Friendly Societies' law, to show what alteration experi- 
 ence has from time to time called for. In 1846 the 9 and 
 10 Yict., c. 27, allowed the Eegistrar to settle disputes when 
 the subject-matter was under 20L About this time the County Courts 
 County Courts were established, and in 1855, when the 
 Friendly Societies' Acts were repealed and a Consolidation 
 Act (18 and 19 Yict., c. 63) passed, the jurisdiction of 
 these Courts was extended to Friendly Societies' disputes. 
 Where rules directed disputes to be settled by justices they 
 were now to be settled by County Court ; and similarly, Tvhen 
 no mode of settling disputes was provided, the County Court 
 was to be the tribunal to which they should all be referred. 
 (Sees. 40 to 44 inclusive.) In 1858 it was decided to 
 bAIow the Society the choice of having the justices to decide 
 their disputes if they should so determine, the 21 and 22 
 Vict., c. 101, s. 5, enacting that when the rules so direct dis- 
 putes may be settled by justices, and such is the present 
 state of the lavr — Building Societies may have arbitrators or 
 justices; Friendly Societies may have arbitrators, justices, or 
 the County Court judge. 
 
 The idea of arbitration was to save expense, and it was 
 believed that a sound, common- sense opinion might be had 
 from independent gentlemen without rendering the Society or 
 its member liable to heavy fees. The County Courts have pro- 
 vided a cheap remedy at every man's own door, and the large 
 amount of varied business now being entrusted to them, both 
 equity, admiralty, and bankruptcy, in addition to the common- 
 law business for which they were originally founded, must be 
 accepted as a proof of their utility and accep tability . The legal 
 training and local independence of the County Court judges 
 point to them as proper officials to deal with Building Society 
 disputes. Happily disputes do not often arise, but experience 
 teaches us that arbitration is neither a cheap nor efficient means 
 of settling them when they do. In a recent case of dispute 
 which would have been settled by the County Court judge in 
 half an hour the three arbitrators claimed two guineas each, 
 solicitor and witnesses were allowed on each side, so that the
 
 Building Society Legislation. 
 
 costs were more like those of a superior Court than a cheap 
 tribunal, and the decision was such that the tossing of a 
 penny would have had more probability of deciding the merits 
 of the case. 
 
 It has also been found in large Friendly Societies having 
 branches throughout the kingdom that the arbitration of 
 gentlemen residing near the head office was more unattain- 
 able, by reason of the expense of attending the hearing, than 
 would be the superior Courts, and that the local County Courts 
 would be a cheaper remedy. We would, therefore, propose 
 that the County Courts should have jurisdiction in all matters 
 affecting Building Societies in their disputes with members 
 or those claiming under members. 
 
 What bankruptcy is to a private trader winding up is to 
 Comj^anies. It is a matter unpleasant to contemplate, yet 
 one which must find a place in any codification of Building 
 Society law. It is now clear that the only resource for a 
 Society unable to meet its engagements, and which cannot 
 arrange its affairs privately, is the winding-up department 
 of the Court of Chancery. It is no libel on that honourable 
 Court to say that its proceedings are too protracted and costly 
 to meet the approval of the Building Society world. A less 
 expensive and more summary jurisdiction is more in confor- 
 mity with legislation for similar Societies. The business of 
 these Societies being of so simple a nature, the settling contri- 
 butaries which on each occasion occupies so much time in the 
 Court of Chancery Avould in these cases be soon effected. In 
 case of disaster to a Society the chief requisite is to realise 
 the outstanding mortgages and distribute the assets. If there 
 is a deficiency, then a month or two's extra contributions by 
 each member chokes the deficit. In case of a surplus it is to 
 be returned to them. 
 
 Setting aside the Court of Chancery, we have the choice of 
 two methods for compulsory winding up. The one is to vest 
 the Registrar with such functions, the other is to refer them 
 to the local County Courts. Local liquidators must in either 
 case be appointed. Their duty will be to receive the periodic 
 contributions of the advanced members, and facilitate redemp- 
 tion of mortgages, so as to get the whole assets realised as
 
 Building Society Legislation. 29 
 
 speedily and as economically as possible, and divide 
 
 them. Friendly Societies may be wound up voluntarily, or 23&24Vic.,c.58, 
 
 under an order of the Registrar. Industrial and Provident 
 
 Societies are to be wound up by the County Court of the 25&26Yic.,c.87, 
 
 district in which the business is carried on. In the case 
 
 of Building Societies we incline to favour the jurisdiction 
 
 of the County Courts. One tribunal would then have 
 
 cognisance of the Societies, settling their disputes, and 
 
 winding them up. 
 
 On dissolution as well as on winding up, notices should be 
 required to be sent to the Registrar, that he might take the 
 name off his register. 
 
 Among the grounds for obtaining a winding-up order 
 might be — 
 
 1. Neglecting or refusing for a given time to obey 
 the award of the Court in settlement of a dispute. 
 
 2. Neglecting or refusing for a given time to pay or 
 satisfy a judgment obtained by a creditor, or suffering 
 execution to issue. 
 
 3. Engaging in business not contemplated by the rules. 
 
 4. Neglecting for a given time to file balance-sheets 
 with Registrar, or alter rules when rec[uired* by the 
 Registrar. 
 
 The latter case may seem small to incur the liability of being 
 wound up for. But well-meaning Societies will not be found 
 so offending, and some remedy must be had against a Society 
 which will pretend to act upon a rule authoritatively declared 
 to be contrary to law. It might be advisable in the latter 
 case to entitle the Registrar to petition against a Society. 
 Members might not be found willing so to do. 
 
 Some writers on Building Society topics have considered it rreeh9id Land 
 would be advisable to empower such Societies to purchase 
 land, and apportion it among the members as building- sites, 
 or to erect dwelling-houses thereon and apportion them. 
 Freehold Land Societies have conducted similar pursuits under 
 cover of Building Society rules ; but it has been decided 
 that it is contrary to law. The manager, or whoever buys 
 the land, does so at his or their individual risk. No doubt 
 the object is a very laudable one, more especially when the
 
 80 Building Society Legislation. 
 
 dwellings so erected have particular attention paid to tlie 
 sanitary appliances so conducive to health and comfort. But 
 it does not appear to us to fall within the sphere of a Building 
 Society. Our feeling would be to keep the two classes of 
 Society distinct. The business of a Building Society is to 
 deal in money only ; to be mortgagee, not owner. It should 
 be an exchange into which to bring money seeking permanent 
 investments to be lent out on real securities, repayable by 
 periodic contributions. The element of buying and selling is 
 distinct from its proper functions. In a Building Society 
 proper the element of speculation is eliminated. The case is 
 different in dealing in land and building houses. 
 Right to have or But while WO would not wish to see Building Societies 
 of Meeting. dealing in land or buildings, there is one power to be desired 
 which Friendly Societies and cognate Societies have attained 
 18 & 19 Vic.,c.63, by Acts Subsequent to the Building Societies' Act, that is the 
 right to buy or lease premises for carrying on their business 
 and holding their meetings in, or land not exceeding an acre 
 to erect such upon. 
 
 This right seems one to which Building Societies are 
 peculiarly entitled. As they seek to assist their members to 
 become owners of their own dwellings or place of business, 
 so the aggregate of members should also be enabled to 
 be the owners of the place of conducting the Society's 
 business. 
 Building Socie- Somo exprcss the opinion that the objects contemplated by 
 stock Compa- Building Societies could be as well if not better performed by 
 Joint-stock Companies. Some have gone as far as to urge 
 Building Societies to throw up all their privileges and become 
 Joint-stock Companies. We may assume that the reasons 
 urged have not appeared very conclusive as no Societies have 
 followed the advice. 
 
 Joint-stock Companies are being promoted for Building 
 Society and freehold-land purposes. For the former — which 
 we have advocated should be kept separate from the latter— 
 we submit that the present constitution is most favourable for 
 their development, and most likely to sustain the confidence 
 of the public. 
 
 A Joint-stock Mortgage Company must require a capital 
 
 mes.
 
 Building Society Legislation. 31 
 
 and receive deposits to enable it to cany on business. The 
 necessity for the capital would soon force the directors to call it 
 all up. There would then be no margin to secure depositors if 
 the Company should be unfortunate. Depositors would become 
 wary of investing with such Companies. Again, borrowers 
 in Building Societies are often content to pay a high rate of 
 interest, because in the division of the profits they get part of 
 it bact again. In a Joint-stock Company this excessive 
 charge would be necessary to provide dividends for the share- 
 holders ; so that to neither depositors nor borrowers would the 
 change be an improvement. Only the shareholders in the 
 Company would be benefited by it. At present if a Building 
 Society is unfortunate, the payment of a few months' sub- 
 scriptions more than was calculated will meet the deficiency. 
 Although it has very seldom had to be resorted to, yet there 
 can be no doubt that this unlimited partnership has conduced 
 to the stability and prosperity of these institutions. They 
 have in them the germ of increased success and usefulness. 
 Our desire is to have the law cleared up, and the Societies so 
 established that, free from doubts and unharassed by threats 
 of legal proceedings, they may honestly and honourably 
 perform their functions. 
 
 No Societies are free from the vices which more or less affect 
 all mundane affairs. But we do believe that Building 
 Societies afford as few instances of loss and misappropriation 
 of funds as any Societies transacting a similar amount of 
 business. Many of those which have occurred have been 
 rendered more easy of accomplishment by the doubts which 
 have been thrown upon the powers of these Societies. To 
 clear up these doubts and enable Societies to conduct all their 
 business in the light of day should be the aim of a codifica- 
 tion of the law. The proposals which we have made upon 
 the subject, we believe, tend in that direction. We wish the 
 subject to be ventilated and thoroughly discussed. We not 
 only invite discussion upon the topics herein treated of, but 
 also will be glad of suggestions if any point is omitted. If 
 the leading Societies in London and the large towns will 
 take up the subject, and agree upon the requirements of a 
 Bill, the Legislature will doubtless at their request pass it
 
 32 Building Society Legislation. 
 
 into law. There is a strong feeling in the present Parlia- 
 ment, on both sides of the House, to strengthen and consoli- 
 date Societies having for their object to aid and ameliorate 
 the condition of the people. All reasonable proposals with 
 this object are sure of a careful and candid attention. We 
 therefore believe that the present is a favourable time to 
 discuss the question, and if possible agree upon a Bill to be 
 introduced next Session. 
 
 In the meantime, however, there could be no objection to 
 the Bill at present before Parliament being passed into law. 
 We append the text of it, and also a resume of the points 
 which we suggest as the heads of a new Bill.
 
 33 
 
 POINTS SUGGESTED 
 
 AS THE HEADS OF 
 
 A NEW ACT ON BUILDING SOCIETIES, 
 
 1. — Constitution of Societies. 
 
 Eepeal of existing Acts and substitution of this Act. See is & 19 vie, 
 
 Subsisting Societies, tlieir contracts, engagements, bonds, dc/s. 2 & 4. 
 and securities to remain in force. 
 
 Within of the passing of the Act, subsisting 
 
 Societies to deposit with the Eegistrar copy of their existing 
 duly certified rules ; and upon a certificate by the Registrar 
 under this Act that such rules are in conformity with law 
 and the provisions of the Act, the Society shall be entitled 
 to all the privileges of the Act. 
 
 New Societies may be formed of any number of persons, comp. 10 Geo. 
 partnerships, or companies, who may make rules, appoint JJ^ig^c' ^^q^' 
 trustees, and other officers, and committees to carry out s-^&iT. 
 such rules, and alter and amend such rules from time 
 to time. 
 
 All alterations of rules or appointments of new trustees to see 10 Geo. iv. 
 be done by a special meeting of the Society, of which every ^' ^^' ^* ^* 
 member shall have fourteen days' notice sent to his address 
 as it appears by the register of the Society ; a majority of 
 two-thirds of the members present being required to alter a 
 rule or pass a new one. 
 
 All rules of new Societies, every alteration in the rule, and See is & 19 Vic, 
 appointment of a new trustee to be certified by the Eegistrar ' ' *
 
 34 Buildmg Society Legislation. 
 
 upon proof of tlie requirements of the law having been 
 
 adhered to, and on being satisfied that the proposed rules are 
 
 in conformity with law. 
 
 Seoi8&i9 Vic, Eegistrar's certificate of the registration of a resolution of 
 
 ^' ^ ' ^' ' appointment of new trustee to be evidence thereof, and vest all 
 
 the funds and effects in trustees. 
 Do., s. 28, On removal of principal ofiice or place of meeting, dissolu- 
 
 tion, amalgamation, or extinction of a Society notice to be 
 sent to the Eegistrar within one calendar month. 
 
 2. — Objects of Societies. 
 
 To raise a fund by the contributions of its members, and by 
 deposits or loans from members and other persons, out of 
 which advances are to be made to members on security of 
 real and leasehold property, repayable by such instalments or 
 contributions, and at such rate of interest or redemption as 
 may be agreed upon. 
 
 It shall be lawful in the rules of any Society to provide for 
 degrees of preference to be given to depositors or others, and 
 it shall be requisite that the rules state how the funds of the 
 Society shall be raised. 
 
 The rules shall also provide the terms upon which ad- 
 vances are to be made, and prescribe how the amount due 
 on redemption shall be ascertained, or by whom it shall be 
 decided. 
 
 The rules may also impose reasonable penalties for neglect 
 to pay, or for breach of rules or other defaults. 
 
 They may also prescribe forms of mortgage, release, agree- 
 ments, bonds, certificates, and transfer of shares, &c., &c. 
 
 See 18 & 19 Vic, 3.— THE EEGISTEAE : 
 
 c. 63, 3. 6. 
 
 APPOINTMENT AND QUALIFICATION . 
 
 Duties. 
 
 To receive the rules of existing Societies, certify them if 
 according to law, and file copy. In case of anything objec- 
 tionable, to refer them back to the Society for alteration.
 
 Building Society Legislation. 35 
 
 To examine and certify all new rules, alteration of rules, 
 and appointment of trustees. 
 
 To make and keep a register of all existing Societies so 
 certified, and all new Societies as certified, of their trustees, 
 with all alterations thereof, and of the dissolution or amal- 
 gamation of the Societies. 
 
 To receive annually register and file copy of the balance- 
 sheets of every registered Society, and issue certificates of the 
 receipt thereof. 
 
 Eules, alteration, and enrolment of trustees, purporting i8&i9Vic.,c.63, 
 to be signed by the Eegistrar, to be received in any Court ^' ^^* 
 in the absence of any evidence to the contrary. 
 
 Eules, when certified, to be binding on all the mem- 
 bers. 
 
 Registrar's certificate to be conclusive evidence that rules 
 are in conformity with law. No question to be thereafter 
 raised thereon in any Court of law or equity except in the 
 manner hereinafter appointed. 
 
 If at any time doubts shall arise in the mind of the Eegis- 
 trar upon the legality of any rule previously certified by him, 
 or if he shall reject a rule presented to him for registration, 
 and the Society presenting it shall request it, then the 
 Eegistrar shall state a case to the Court of Chancery, and 
 take the opinion of the Court thereon, such opinion to be 
 thereafter received as a legal decision upon and an interpre- 
 tation of the law. 
 
 Upon it appearing to the Eegistrar that any rule previously 
 certified by him is not in accordance with law, he shall give 
 notice to every Society using such rule, and require them 
 within three calendar months to present to him an amended 
 rule or a resolution cancelling such rule as the case may 
 require, under penalty on the neglect thereof of such Society 
 forfeiting all privileges under this Act, and being liable to 
 be wound up on petition. 
 
 Any one circulating a false copy of the rules or other docu- i8&i9Vic.,c.63, 
 ment purporting to be signed by the Eegistrar to be guilty of ^' " ' 
 a misdemeanour. 
 
 No Society (in future) to be registered under same name 25&26Vic.,c.87, 
 as any existing registered Society.
 
 36 BuildiTig Society Legislation. 
 
 Eemtjneeation op Eegistrae. 
 The Eegistrar shall be entitled to receive from each Society 
 the following fees : — 
 
 On registration of new rules and certificate ^1 1 
 On the alteration of rules, per rale altered 5 
 
 (So as not to exceed on the whole £1 Is.) 
 On registration of a new trustee and cer- 
 tificate thereof 2 6 
 
 On registration of annual balance-sheet .010 
 On stating a case for the opinion of the 
 
 Court 2 2 
 
 (And all costs out of pocket.) 
 
 4. — Bights of Members aird Society. 
 
 l8&i9Vic.,c.63, On registration of rules Society shall have legal existence. 
 Minors may be depositing members. 
 
 18 & 19 vic„c.63, On the death of a member or depositor whose interest in a 
 
 Vij!Jc.87,t 16^ Society does not exceed 50?., Society may pay to person 
 nominated by deceased member, or divide among next of kin 
 of the nominator without a will or administration. 
 
 i8&i9Vic.,c.63, On death, banki'uptcy, &c., of any officer having funds in 
 hand by virtue of his office, Society to have preferential claim. 
 
 Do., s. 16. Societies may purchase or lease premises for place of meet- 
 
 ing and for conducting their business, or land not exceeding 
 an acre for the purpose of erecting such premises. 
 
 See 18 & 19 Vic, All rules, decds, bonds, certificates, notes, receipts, and 
 
 c. 63,s.37;6&7 , ^ \ o \> -. 
 
 Wm. IV., c. 32, other documents to be free of stamp duty. 
 
 6* & 7 Wm. IV., Receipts endorsed upon mortgage-deeds to be sufficient 
 
 c. 32, s. 5. discharge without reconveyance. 
 
 i8&i9Vic.,c.63, Societies may amalgamate or transfer their liabilities and 
 assets to another Society upon such terms as may be agreed 
 upon by a resolution of each Society, signified by a majority 
 of two-thirds of the members present at a special meeting 
 called for the purpose, and upon these resolutions being con- 
 firmed by a subsequent meeting at least twenty-one days 
 thereafter, and an agreement being entered into between the 
 trustees of each Society, the agreement to be binding, and 
 all rights and remedies belonging to the discontinuing Society 
 to vest in trustees of absorbing Society*
 
 Building Society Legislation. 37 
 
 The trustees of every Society shall once in each year, at a Seeis&^o^ vic^ 
 time to be specified in the rules, cause a full account of the ^^ vjc^ c/58,^s. 
 receipts and expenditure of the Society and a statement of c.'87,s.24&25.' 
 the assets and liabilities of the Society to be prepared, and 
 have it duly audited by one or more competent persons 
 appointed by the Society. The statement of the liabilities of 
 the Society shall set forth the amounts due under each of the 
 classes by which the funds are to be raised, as provided by 
 rule, stating what, if any, preferences are contracted to be ex- 
 tended to any class thereunder. The statement of assets shall 
 distinguish between the amounts due by members as mort- 
 gagors and any other asset in the Society's possession. 
 
 A copy of the balance-sheet to be filed with the Registrar 
 within one month of the date of each annual meeting, and a 
 certificate by the Registrar of the due filing thereof to be pro- 
 duced to any member on demand, or exhibited in the Society's 
 office, under penalties to be recovered by a member or by the 
 Registrar in the local County Court. 
 
 5. — Remedies of Members and Others. 
 The Society to sue and be sued in the name of the See is & i9 Vic, 
 
 •^ • c. 63, 8, 19 ; or 
 
 trustees. 21 & 22 vic, c. 
 
 All disputes between the Society and any member or person gee is & 19 vic, 
 claiming under any member to be settled by the Judge of the % ^j ^' ^' ^^' 
 County Court having jurisdiction where the office or agency 
 of the Society to which the member contributed shall be 
 situate. 
 
 Societies maybe wound up voluntarily or by the Court, See 25 & 26 vie, 
 the Court having jurisdiction being the County Court of the 
 district in which the head office of the Society is situate. 
 
 Lord Chancellor to draw up rules and orders for County i8&i9Vic.,c.63, 
 Court. ^•^• 
 
 Punishment of fraud in withholding money, &c. i>o-. s. 24 ; and 
 
 If a Society shall allow judgment to go against it for any s. 25. 
 claim due, so that execution might issue, or shall suffer any 
 of its effects to be taken in execution, or if any award of the 
 judge arbitrating between any member and the Society be 
 not duly performed within the time ordered by the judge, the 
 Society to be liable on petition to be wound up.
 
 88 
 
 TEXT OF A BILL 
 
 TO 
 
 AMEND THE ACT FOR THE REGULATION OF 
 BENEFIT RUILDING SOCIETIES. 
 
 (Prepared and brought in by Me. Gourley, Sir Eoundell 
 Palmer, and Mr. Stevenson.) 
 
 [August 4, 1869. 
 
 Whereas, by an Act passed in the Session of Parliament 
 held in the sixth and seventh years of the reign of his late 
 Majesty King William the Fourth, intituled " An Act for 
 " the Eegulation of Benefit Building Societies," after recit- 
 ing that " certain Societies, commonly called Building Socie- 
 " ties, had been established in various parts of the kingdom, 
 " principally amongst the industrious classes, for the purpose 
 " of raising, by small periodical subscriptions, a fund to 
 " assist the members thereof in obtaining a small leasehold 
 " and freehold property, and that it was expedient to aiford 
 " encouragement and protection to such Societies and the 
 " property obtained therewith, it was enacted that it should 
 " and might be lawful for any number of persons in Grreat 
 " Britain and Ireland to form themselves into and estab- 
 " lish Societies for the purpose of raising, by the monthly 
 ** or other subscriptions of the several members of such 
 " Societies shares not exceeding the value of one hundred 
 " and fifty pounds for each share (such subscriptions not 
 " to exceed in the whole twenty shillings per month for 
 *' each share), a stock or fund for enabling each member 
 ** thereof to receive oUt of the funds of such Society the
 
 Building Society Legislation. 89 
 
 " amount or value of his or her share or shares therein, to 
 " erect or purchase one or more dwelling-house or dwelling- 
 '* houses, or other real or leasehold estate, to be secured 
 " by way of mortgage to such Society until the amount or 
 *^ value of his or her share shall have been fully repaid to 
 " such Society, with the interest thereon, and all fines or other 
 " payments incurred in respect thereof; " and it was further 
 enacted that it should be lawful to and for the members of 
 each such Society as aforesaid " from time to time to assemble 
 " together, and to make, ordain, and constitute such whole- 
 " some and proper rules and regulations for the government 
 " and guidance of the same as to the major part of the 
 " members of such Society so assembled together should 
 " seem meet, so as such rules should not be repugnant to the 
 " express provisions of the said Act and to the general laws 
 " of the realm : " 
 
 And whereas doubts have arisen whether it is lawful for 
 Societies so constituted as aforesaid to make, ordain, and 
 constitute such rules and regulations as aforesaid, when the 
 same are so framed that t}iej enable the Society to borrow 
 money for the use of the Society, or to raise money by ^eans 
 of paid-up shares : 
 
 And whereas it would greatly contribute to the pro- 
 motion and advantage of Building Societies and to the 
 security of the industrious classes who have invested their 
 earnings therein if all such doubts were removed, and if 
 other provisions were made for protecting the funds of such 
 Societies : 
 
 Be it, therefore, enacted by the Queen's most excellent 
 Majesty, by and with the advice and consent of the Lords 
 Spiritual and Temporal, and Commons, in this present Parlia- 
 ment assembled, and by the authority of the same, as 
 follows : — 
 
 1. No rule or regulation for the government or guidance 
 of any Building Society which has been or may hereafter be 
 in other respects duly made, ordained, and constituted, shall 
 be deemed to be repugnant to the express provisions of the 
 said recited Act or to the general laws of the realm because 
 it provides for the borrowing of money for the purposes of
 
 40 Building Society Legislation. 
 
 the Society, or because it provides for the raising of money 
 by the issue of shares commonly called or known as " fully 
 " paid-up shares " or " realised deposit or preference shares," 
 
 2. The proper officer of every Building Society shall once 
 a year lodge with the Eegistrar of Building Societies an 
 account setting forth the funds of the Society and how the 
 same are invested, and distinguishing between the funds 
 raised by subscriptions on ordinary shares and funds raised 
 by the means mentioned in the preceding section of this 
 Act. 
 
 3. Any officer of a Building Society whose duty it is to 
 render such account as aforesaid shall, for every omission so 
 to do, forfeit twenty 'pounds, to be recovered in the County 
 Court of the district wherein the chief office of the Society is 
 situated on the suit of any member of the Society, half of 
 which sum shall be received by the plaintiff, and be applied 
 by him to his own use, and the remainder shall be paid into the 
 funds of the Society, and any officer rendering a false state- 
 ment of account shall be deemed guilty of a misdemeanour. 
 
 4. The "proper officer" for the purposes of this Act is 
 hereby declared to be the manager or secretary of the Society 
 or other the officer, by whatever title designated, who acts as 
 manager. 
 
 W, Speaight and Sous, Printers, Crane-court;, Fleet-street, EX.
 
 * 
 
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