Report of the Forty -Seventh Annual General Meetin<j. 369 



existence of this rentcliarge might have a deterrent effect. Mr. Head is, however, of 

 opinion that the advantages which would accrue to us from the acquisition of the pro- 

 perty outweigh any possible disadvantages which might arise owing to the existence 

 of the rentcharge. I have here a very full report from Mr. Head, but I will only read 

 you the concluding paragraph. He says : — 



" After a careful consideration of the whole matter the conclusion I have 

 arrived at is that the Council have been very wise in deciding to avail themselves 

 of this opportunity, and that if they had neglected to do so, they would probably 

 at some future time, should they then have been anxious to purchase, have had 

 to pay a considerably larger sum in order to fulfil their wishes." . 



Now it may be said that this is not a time to buy property or to borrow money. 

 In a general way I agree, but in this particular case the answer is : First, we are getting 

 the property for £2,000 less than we were prepared to give for it prior to the war. That 

 is a very considerable reduction. Secondly, it is a case of now or never, for if we do not 

 buy now the property will pass into other hands and be rebuilt. Thirdly, the acquisition 

 of this property will increase the value of the present Institute building, and in the same 

 way the new premises, when added to our present property, will immediately become of 

 more value than if ovmed separately. In other words, the conjunction of the two pro- 

 perties in one ownership puts up the value of both, and Mr. Head advises us that the 

 value of the whole would exceed that of the two parts taken separately by at least 

 10 per cent, in his opinion. Fourthly, the property, by reason of its position, is the key 

 to the larger properties. No. 21, Northumberland Avenue and the Turkish baths, and 

 to a large extent controls those properties if at any time we should wish to purchase 

 either or both and embark on a large rebuilding scheme. The Council, therefore, have 

 no hesitation in recommending the purchase, and they hope it will meet with your 

 approval. 



With regard to the mortgage, we are asking leave to borrow up to £20,000. We do 

 not propose to borrow the whole of this at once, but in the first place to obtain an 

 advance of £16,000 to enable us to complete the purchase and pay the expenses incidental 

 thereto, but we propose to arrange for the right to draw a further £4,000, if and when 

 required, to meet contingencies either in connection with this new property or for the 

 general purposes of the Institute. The mortgage will be secured on the present Institute 

 building only. The security is ample, as we have, of course, a very valuable property. 

 We have negotiations on foot in two or three quarters for the loan and the money has 

 been offered us at 5 per cent., or at 4f per cent, if coupled with a capital redemption 

 policv, and we hope that it may be possible to arrange for it at 4J per cent, if a capital 

 redemption policy be taken out providing for the repayment of the loan in thirty years. 

 This, however, is a matter which I think you may safely leave in the hands of the 

 Council. You may rest assured that the Council will arrange the loan on the best 

 terms possible. 



I, therefore, now beg to move : — 



" That the approval of the Fellows be granted, in accordance with Clause XI. 

 of the Charter, to the raising of a loan, not exceeding £20,000, by a mortgage 

 upon the Institute building on such terms as the Council may approve, for the 

 purchase of Nos. 16 to 20, Craven Street, W.C, and expenses incidental thereto, 

 including necessary alterations and repairs, and for the general purposes of the 

 Institute." 



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