EQUITABLE BUILDING

Evening Post, Volume CXI, Issue 26, 1 February 1926, Page 7

EQUITABLE BUILDING

FINANCIAL COMPANY'S YEAR.

The forty-eighth annual general meeting of the Equitable Building and Investment Company of Wellington, Limited, was held at tho Farmers' Institute Chambers, 110, Featherston street, on Monday, Ist February, 1926, at noon. Iv moving that the report and balance-sheet for the ysar ended 31st December, 1925, be adopted, the chairman of directors (Sir Harold Beauchamp) Baid:— The report aiid balance-sheet having b"een in. your hands for several days, you will, I presume, as customary, take them as read. Before putting the motion I shall refer briefly to some of the items in the balance-sheet, and make a.few comments as to monetary conditions and the financial and commercial outlook generally. (Sir Harold '8 remarks on finance will be found in another column.) In the first place, I think wo have reason to congratulate ourselves upon the results achieved for tho past year, notwithstanding, the keen competition we haVe had to face for deposits and mortgage investments. Our principal competitor (as I pointed out in my last address to you) is the Public Trustee. Still,.the facilities afforded by lending institutions such as this— ■ in particular, the prompt manner in which applications for loans are dealt with and the easy terms granted for their repayment—enable them to retain, and, indeed, steadily expand, their business. Under the heading ''Assets and. Liabilities' '■ you will note that our paid-up capital (viz., £60,000). remains the same as last year, and that our reserves fund (now £85,000) has been strengthened by the addition of £3500 from the profits of 1925. "Deposits and Interest" are £242,423 19s 4d, as compared with £237,567 9s lOd at 31st December, 1924. On the credit side of. the balancesheet you will observe that "Wortgages and interest" are anown as £377,299 9s lid, as against £369,559 6s lOd at 31st December, 1924. The other items in the balancesheet, such as "sundry debit balances, 13 "amount due to us by our bankers," "our holding of New Zealand Government inscribed stock, H. being approximately the same as last year, require no special comment. Glancing for a moment at the profit and loss account, it will be seen that the balance to credit of interest account is Blightly less in 1925 than it was in 1924-£13,882 19s in 1925, as against £14,356 16s 3d in tho previous year. This drop In profits is practically accounted for by reduction of interest on mortgages and renewals, whilst our rates tor deposits have remained stationary. - Expenses of management, it may be noted, have slightly increased, this being due to large amount required for payment of income tax, which means our loss but the State's gain. Since the termination Of the Great War it has been necessary to foreclose on a few securities—all of them, .1 may say, represent advances to tatmers—but on the realisation of these securities we have been able to provide for all losses out of current profits. The amount to-day under the heading of "Contingent Securities Depreciation Account 1' stands in our books at £5000, at which figure it- has remained since 1922, Arrears of interest on mortgages are negligible, but whilst we look for no loss in respect to such interest, I can assure you that none of it has been taken to credit .in the statement of accounts we. present to you today. Being unable to renew lease 6f offices occupied by the company in Grey street, it was necessary for Us to seek new quarters towards the close of last year. f These, after a little difficulty, were secured in Myers's Building, No., 11, Hunter street, adjoining the Bank Of Australasia, where We ate lit present installed. Before closing, I Wish to recOrd my appreciation, and that Of my colleagues, of the capable and efficient manner in which our secretary, Mr. E-. A. Liddle, has carried,out his 'responsible duties. He has, I may mention, been associated with the company since 1884> ahd has occupied the position of ■ secretary for eighteen years. ,1 now-beg to move that the report and balance-sheet' be adopted. If this motion be carried, dividend warrants will'lie pasted to you this afternoon. Mr. William Ferguson seconded the motion, which was carried. Messrs. D. M'Lean and A. D. Craw ford were re-elected directors, and Messrs. Bucholz and Wheeler were reolected auditors.