Australian Trust Company, Incorporated by Royal Charter, No. 48 Moorgate Street, London.
Capital t1,000,00, in 10,000 shares of t100 each, with power to increase the capital to t2,000,000.
Directors. Chairman– John Abel Smith, Esq., M.P. Levi Ames, Esq. . Robert How, Esq. Henry Bainbridge, . Esq. John Innes, Esq. Thomas Byron, jun., Esq. . Francis Mowatt, Esq. Benjamin Green, Esq. . Charles John Pearse, Esq. William Hart, Esq. . Hastings Elwin, Esq., Langford Hovell Hodge, . now in Australia Esq. Auditors. Right Hon. The Lord . Sir Edward Parry, R.N. Mayor. . Nassau William Senior, Abel Lewis Gower, Esq. . Esq. Bankers–Messrs Smith, Payne, & Smiths. Solicitors–Messrs James, Charles, & H. Freshfield. Colonial Board in Sydney. Chairman– Hastings Elwin, Esq. who was Deputy Chairman of the Court of Directors. Alexander Macleay, Esq. . Richard Jones, Esq. Thomas Barker, Esq. . John Lamb, Esq. To be joined by Thomas Icely, Esq. who was a Director here, and who is on his way to Sydney. Solicitor–James Norton, Esq.
The Company was established and incorporated (and is now in full operation) to carry out in Australia a principle which has been acted on with great success elsewhere, namely, that of taking up money in this country, at a moderate rate of interest, on the credit of a large invested capital, and laying it out on undoubted freehold security, at a higher rate.
The Company is now prepared to grant transferable notes, under the Corporation seal, to persons desirous of advancing Money to the Company on loan. The notes will be for t100 each, or any larger sum desired by the lender, and will be made payable at any period which may be agreed upon, not being shorter than two years. The notes will bear interest at the rate of five per cent, per annum, payable half-yearly (on the 15th January and 15th July), on the production of the half-yearly vouchers, which will be annexed to each note: these vouchers, or coupons, will render it unnecessary for the holder of a note to present the note itself until the principal becomes due. The form of note has been preferred to that of bond, as admitting of transfer without expense or trouble, whilst it affords equal security to the holder.
The Colonial Board has been established in Sydney, and the operation of the Company are at present confined to New South Wales.
Security being the first object of the Company, all the arrangements have been framed with the view to attain that end.
The Loans are made at a fixed interest of 10 per cent, although the current rate is much higher. The land mortgaged (exclusive of collateral security) must not be of less value than double the amount of the loan. The non-payment of interest on the day it becomes due, subjects the mortgager to 2 1/2 per cent, additional interest for the period in arrear; and all parties in default for ten days are to be proceeded against the Solicitor of the Company “without further instructions” and “without distinction or exception of any person whatever.” The Colonial Board only draws on the Company, as loans are agreed on; their bills must be advertised for public competition and the purchasers pay the amount, in exchange for the Bill, to the Bank of Australasia (the Capital of which is t1,200,00) to the credit of the Company, to be drawn out by checks of the Colonial Board in favour of the borrowers as the mortgages are completed.
The high character of the members of the Colonial Board, affords the fullest assurance that these arrangements will be strictly adhered to in spirit as well as in form; no difficulty has been experienced in investing the full monthly amount sanctioned by the instructions of the Court of Directors: indeed the Chairman of the Colonial Board states that “he does not entertain the smallest doubt of a safe investment of all the funds which may be placed at the disposal of the Colonial Board.”
The high rate of interest in Australia, has attracted much private capital from this country to be invested in mortgages. These investments have been made through the agency of individuals or mercantile firms, and therefore subject to contingencies from which the Company is exempt. To those who may desire to make such investments, it must be obvois that the stock of the Company presents a much superior security, and the prospect of a greatly increased return, inasmuch as the Company derives a large profit by lending at 10 per cent in Australia, the money borrowed here at half that rate.
It is equally clear that those who merely seek temporary employment for their money without becoming shareholders, cannot have a better security than the Promissory Notes of the Company, for the due payment of which, the whole capital of the Company, as well as the mortgages on which the money is laid out, stand pledged. Every shareholder is required to execute in a Deed of Covenant, by which he becomes bound to pay to the full amount of his shares, and the Charter supplies Creditors with the utmost facility in enforcing demands against the Company. When it is considered that the funds of the Company here are kept in Government Securities and no money lent in Australia, except on the best mortgages on land, with collateral security in addition, it may be fairly asserted, that in many respects the Promissory Notes are entitled to a decided preference over mortgages in this country, which generally bear one per cent. less interest than that paid by the Company.
The Charter provides that the sums borrowed shall not exceed four times the amount of capital paid up.
That the whole capital of the Company, and all the mortgages on which their money is lent, in Australia, shall constitute a security to the lenders of money to the Company.
That the mortgages are to be on land, with the power of taking collateral security on stock, &c.
That every mortgage shall be registered–the register to contain such particulars as the Governor of the colony may deem necessary.
That a copy of the register of the mortgages shall be kept at the office of the Company, in London, for the information of the share-holders and lenders.
That an annual report be made to the Lords of the Treasury of all sums borrowed by the Company, and of the appropriation of them.
John Innes, Managing Director. No. 48 Moorgate Street. London, 1st January 1842
Citation: Scotsman (Edinburgh, United Kingdom), 05 February 1842, available at the Scissors and Paste Database, http://www.scissorsandpaste.net/313.