EQUITABLE BUILDING COMPANY

Evening Post, Volume CVII, Issue 27, 1 February 1924, Page 4

EQUITABLE BUILDING COMPANY

'VERY EXCELLENT RESULTS,

•^ Speaking at the anhual meeting of the Equitable Building Company to-day, the chairman said, inter alia :—

I have much pleasure in congratulating the shareholders upon the very excellent results the directors are able to place before the shareholders on this occasion, one of the best in the history of the company. These results are due, firstly, to tho remunerative rates obtained for money during -tho past twelve months; and, secondly, to the recovery of a substantial amount of interest! overdue at 31st December, 1922, and not then taken into account. It has always been the policy oi this company not to include any sums under this head in respect to the payment of which there is the slightest doubt. From our balance-sheet you will note there has not been, any violent fluctuation in the figures for 1923, as compared with 1922. Oh the credit side, under "Mortgages and Interest," we have Wing to us £345,985 9s 9d, as compared with £363,206. On the debit side there is due to depositors, with accrued interest, £217,338 17s 2d, as against £236,486 in the preceding year. To provide! for loss on realisation of certain securities, you will observe we havohad to take from "Contingent Securities Depreciation Account" the 6um of £767—that fund now standing at £5000. We estimate this amount will be more than sufficient to cover any future losses we may sustain in respect to any properties which may, fall into our hands. It may be mentioned that the losses already incurred have been confined wholly and solely to advances made to farmers who have been the chief sufferers during the bad times we have experienced since the*close of the Great War.

In conclusion,^ the chairman stated that the year 1923 had furnished convincing - evidence that New Zealand had . completely recovered from the slump of 1920-1921. This recovery was due primarily to the higher prices realised for an increased output of butter and cheeEc, the exports of which amounted in value to approximately £16,000,000. Frozen meat did not, come up to expectations, nevertheless the farmer obtained fair prices, and latterly woo] developed into an exceedingly profitable asset. Recovery was undoubtedly accelerated, as I have already intimated, by the extensive borrowing by the Government, and local bodies, and the danger of this excessive borrowing ss, I fear, not yet realised by, the peojile. Unfortunately credit is being obtained too easily and too cheaply, consequently many public works that are not urgently required are being undertaken at a time when the cost 3 are abnormally high.