FINANCIAL COMPANY

Evening Post, Volume LXXXIX, Issue 105, 5 May 1915, Page 2

FINANCIAL COMPANY

I SUCCESSFUL YEAR. ) "The fourteenth annual meeting of shareholders in the Wellington Deposit, Mortgage, and Building Association, Ltd., was held last night in the Chamber of Commerce, Mr. W. H. P. Barber, chairman of directors, presiding. There were | about thirty persons present. ""A" '"summary of the directors' report and the balance-sheet has already been published. In moving the adoption, of the report, the Chairman cmph&siscdHhe statement in the directors' report that the business had made decided progress during the past year. "It is worthy of note that this satisfactory result has been achieved in spite of the state of -Uneasiness and uncertainty which prevailed during the greater part of tho year by reason of the war, and which naturally caused a temporary cessation or lack of enterprise in the building trade. Last year the deposits stood at £18,158 j this year they aro £28,859— an increase of £10,700. On the other side of tho balance-sheet, the investments have risen from £43,350 to £56,654, an increase of £13,304. These figures show that considerable progress has been made during the period under reviow, which has, of course, augmented the earning power of the association. During tho year the association took over from the Wellington Steam Ferry Company, Ltd., on favourable terms the agreements of purchasers of lands sold by that company at Day's Bay. The item, ' Interest suspense, £702 120 6d,' is accounted for by that transaction. It represents the difference in the rate of interest payable by purchasers on unpaid balances under their agreements and the basis rate on which the association took these over, being the balance availablo for that purpose, to be spread over the unexpired terms of the agreements. Tho transaction has proved a satisfactory and profitable one, and has also been tho means of opening^ up fresh business connections. Referring to tho profit and loss account, the net profit this year is £1549, us against £1238 last year, an increase of £311. _ Tho total balance available this year ia £1780, as against £1456 last year. The progress is duo to i the larger business the association was able to do. It will be 'noticed on the debtor side of the profit and loss account that interest paid has gone up considerably. This i 9 • due to the increased amount of deposits already referred to. On the creditor- side interest is greater by £666. Coming to the expenses, a comparison with last year shows that they aro lower this year by £47. The directors deemed it prudent to create a special reserve for tho purpose of meeting any loss or expense which may, from any possible reaaon ariae, .and accordJ ingly a. sum of £150 has been placed to that account. - The result of the year's operations justifies your directors in recommending the payment of a dividend at the rate of 5 per cent, for the year, as against 4| per cent/ for the 11 previous year. They further recommend that a sum of £200 be added lo the reserve account, which will then stand at £1200, leaving the balance of £330 to be carried forward to next year's account. The directors consider tho shareholders aro to bo congratulated on the greatly improved position of tho company During the year the directors used great caution in making advances, turning down many applications offered. They are pleased to state that the prospects for tlie ensuing year are good, and that profitable business is in view. They would point out that, without materially increasing the expenses, ,tho business could still be largely augmented by the receipt of moro deposits. They would therefore again ask shareholders to help the business by making deposits with "the association. They would particularly draw tho attention of small investors to the system of investofs' instalment deposits, under which a small sum monthly may be deposited at a good rate of interest." The motion for the adoption of the report and balance-sheet was seconded by Mr. J. J. Williamson, and carried without discussion. This carries with it tho declaration of the dividend referred to in the report. The retiring directors, Messrs. J. Russell and W. Watson, were re-elected, as also were the auditors, Messrs. R. T. Badhatn and J. H. G. Rowley. - Tho secretary, Mr. James W. Jack, was thanked for his capable services during the year. The sum of £100 was voted to thp directors as an honorarium for tho past year.