EQUITABLE BUILDING CO.

Evening Post, Volume CVII, Issue 27, 1 February 1929, Page 9

EQUITABLE BUILDING CO.

SHAREHOLDERS' MEETING

DIVIDEND OF 10 PER CENT

The annual general meeting of the Equitable Building and Investment Company, of Wellington, Ltd., was held to-day in the Chamber of Commerce, Sir Harold Beauchamp, chairman and managing director, presiding.

Sir Ilarold Beaueharup, in moving the adoption of the report and balance-, sheet said: "Having failed to secure a quorum on tliq date fixed for the last annual general meeting, no business was transacted except a declaration of a dividend. On the debit side of the' balancesheet the capital is the same as last; year, namely, £60,000. The- reserve fund last year was depleted by the transfer to securities depreciation account of £13,700, reducing the reserve fund to £73,300. This year £1000 has been added, and the fund now stands at £74,300. Deposits and interest are rather better at £231,638, compared with £221,432 last year. .On the credit side, the mortgages and interest, less £14,000 held in securities depreciation account, amount to £348,330, being slightly more than the previous year's figures, £346,042. The item, New Zealand Government Inscribed Stock, £24,862, is unchanged compared with last and previous years. The profit and loss account on the debit side shows income tax £1680 13s 9d (about £450 less than last year). Ascertained losses on mortgago securities amount to '£Sooo 3s od. On the credit side —to meet tho ascertained losses referred to—£6ooo has been taken from securities depreciation account.

"Tho gross profit for the year is £12,764 11s 2d, being nearly £700 bettor than the previous year, which was £12,077 16s sd. After allowing for interim dividend, paid in July last, and other provisions, there remains (with the amount brought forward) a balance of £7238 19s 2d, which the board recommends should bo appropriated as follows: —To payment' of a further dividend of 5s per share, making 10s per share for the past year, £3000. To transfer to reserve fund, £1000. To carry forward, £3238 19s 2d.

"Of tho £20,000," said Sir Harold, "wo sot aside to meet possiblo lossos on realisation of mortgage securities, you will obscrvo that to provido for actual sustained lossos wo have been compelled to trench upon that reservation to tho extont of £6000. That leaves £14,000 in suspense account, and I. am afraid tho whole of that sum, and probably an additional £1000 or thereabouts, will bo wanted before- Wo are in a position to eliminate from our books lossos sustained on tho liquidation of advances to farmers who cannot meet their financial obligations.

"I think I can safely assort that in no single instance can any blamo bo attributable to your directors for the unfortunate experience this company, in common with tho Government lending Departments, and so many financial institutions, has had in respect to loans to farmers. Tho majority of theso advances wore made many years ago, and prior to 1926 interest thereon was paid with almost unfailing regularity. With tho drop, however, in tho valuo of our primary products, the increased cost of production, and other advorso conditions, fariniug bocamo unprofitable, and many farms wcro abandoned to mortgagees.

"In every instance this company, boforo making advances, had securities carefully valued by men.enjoying a

high reputation as competent and experienced valuers, and tiio latter wcro, in most cases, confirmed ,by the Government Valuation Department. Moro caulion than that your directors could not possibly exercise.

"Still, in spite of our losses. I foci confident that, on tho safe and profitable business wo aro now doing, wo shall havo no difficulty in maintaining tho dividend to which you havo boou accustomed for so many years, namoly, 10 per cent, per annum, frco of tax." The three retiring directors, Sir Harold Boauchamp, Mr. AY. Ferguson, and Mr. D. AY. Anderson, wcro re-elect-ed. Messrs. Bucholz nnd AVheoler wore ro-olected auditors. Tho mooting concluded with votes of .thanks to tho directors and to the staff.