EQUITABLE BUILDING COMPANY

Evening Post, Volume CV, Issue 27, 1 February 1923, Page 3

EQUITABLE BUILDING COMPANY

ANNUAL MEETING

if STILL BOTHERED WITH THE

MORATORIUM."

The annual general meeting of shareholders of the Equitable Building and Investment Company of Wellington, Ltd., was held at the Chamber of Commerce to-day. ' The chairman and managing director (Mr. Donald M'Lean) presided. " Your directors," stated the annual report, " have pleasure in submitting to shareholders the 45th annual report, balance-sheet, and profit and loss account, from -which it will be noted that, including the- amount carried forward from last year, the profit for 1922 amounted to £7576 7s' 6d. Your directors recommend that this be allocated as follows: —To payment of dividend of 5s per share, £3000; to transfer to reserve fund, £1000; and to carry forward the balance, viz., £3576 7s 6d_. Messrs. M'Lean and Crawford are the retiring directors, and, being eligible, offer themselves for re-election. The retiring auditors, Messrs. Bucholz and Wheeler, offer themselves for re-election." "In view of the unfavourable conditions with which we have had to contend since the signing of the Armistice," remarked the chairman in moving the adoption of the report and balance-sheet, "I think I may congratulate you upon the results for the year ended 31st Dscember, 1922. True, we had to pass the interim dividend nsnally paid in July of each year, but we feel- justified in now recommending that a dividend of 5s per share should be paid for. the twelve months. That sum will absorb £3000. "Before making any general remarks I will make a few comparisons between the balance-sheet for the year just ended and that immediately preceding it. Firstly, it will be noted that mortgages due to the company and interest thereon stand at £368,206 12 3 lid at 31st'December, 1922, as agaiust £383,980 on 31st December, 1921. This shrinkage in advances is accountable by the repayment of mortgages, and the fact that during the period of financial stringency we have not been seeking fresh investments. "On the debit side of the balance-sheet amount due to depositors and interest totals £236,486 4 S 2d at 31st December last, as compared with £261,545 5s 2d on 31st December, 1921. "New Zealand Government Inscribed! Stock, £24,862 10s, is the same as it was in our previous balance-sheet. Owing to the appreciation which has occurred daring the past twelve months in the value of this stock, there is now no very great difference between market and face value, and if monetary conditions continue easy it is quite possible these debentures will be selling at par at no distant date. "At the close of 1921 we bad for allocation in rJrofit and loss, after placing £1000 to reserve fund, £5872 8s 2d. This year, after carrying to reserve a similar amount, there remains a sum of £6576 7s 6d to be dealt with. The dividend we now recommend, if passed by you, will absorb £3000, and will leave the snm of £3576 7s 6d to carry forward to next year's account. The larger amount we have available this year is due to the fact I have mentioned, namely, the passing of the interim dividend in July last. : "In my last, address I explained to you the disabilities under which and other lending companies were placed through the action of Parliament in deciding to lift the moratorium on" deposits and continue it on mortgages. By this'legislative action we'were stopped from collecting money due to us to discharge our liabilities. It now remains to be seen whether the moratorium on mortgages will be extended beyond tht existing term. "It is gratifying to note the greatly improved financial conditions which have taken place recently. This is due to the big increase in the value of all descriptions of wool and the remunerative prices realised for nearly all other primary products in which this Dominion is so vitally interested. The enhanced value of wool, principally crossbred, will enable many straggling farmers lately in difficulties to carry on and meet their engagements. In some cases we have had to take possession of one or two i farm properties on which we hay* ' Eiads erivsnces, but we are hopeful to quit .these without substantial loss. In any case, any losses of that nature are provided for in the amount we have set aside under contingent securities depreciation account." The motion for the adoption of the report and balance-sheet was seconded by Sir Harold Beauch'amp, and was agreed to. . The retiring directors, Messrs. D. M'Lean and A: D. Crawford, were reelected, and the auditors were re-ap-pointed. ■ ... In returning thanks for his re-election, Mr. A. D. Crawford expressed'the hope that next year they would have a better year. It had been a somewhat anxioos time during the past twelve months. Our primary products were now going np in price, and there was every prospect of a better balance-sheet next year, although there was nothing to be ashamed of in this year's balance-sheet.