DIFFICULT YEAR

Evening Post, Volume CXV, Issue 109, 11 May 1933, Page 13

DIFFICULT YEAR

deposit Company

FAITH IN FUTURE

Tho annual meeting of shareholders of tho Wellington Deposit, Mortgage, and Building Association, Ltd;, was held today. In moving the adoption of the annual report and balance-sheet, the main features of which havo been published iv "The Post," tho chairman (Mr. ■W. 11. P. Barber) said:—"The principal change in our balance-sheet figures is in connection with deposits —last year they were £42,496, now £28,571, a drop of £13,925. This with, drawal wiped out the item.'special deposits,' also our credit balance at the bank, and necessitated a considerable overdraft. We have recently arrived at an arrangement with the majority of our depositors to allow their deposits to remain for a long period. "The result of the profit and loss account is brought about as stated in the annual report. The majority of our clients meet their interest well and credit has not been taken for uncertain ones. With regard to Panama Chambers, many offices remained unlet during the year, and some are still vacant. The ground rent on the leasehold payable to the City Council is heavy; ,-we did, however, get some relief in.this respect, as from December last.- .. . '. " ~.•.."•■■," •:: ' "Owing to. the withdrawal of deposits already referred to, we were forced to lean on the bank for' a larger sum than expected. _ Interest payable for that; accommodation Icing higher than on deposit rates and advances, naturally absorbed a good deal i of our profit. Since May 1 these conditions, however, have been altered, the bank rate having been lowered sufficiently to allow a small profit instead of a loss as hitherto. EFFECT OF LEGISLATION. ".The general circumstances of companies such as ours are so well known and have already. been so much reported upon that I need not enlarge upon them. By comparing the market values of : these shares of three years ago with those of the present time, you will see how shareholders' properties; have been affected by tho recent legislation. j "With regard to. the' circumstances of this company, I think you are to bo complimented on the fact that there has been retained from distribution in past years, and now; remains as a reserve in tho balanco-shcet, altogether £8400 standing against any losses which may occur from the general depression in the values of property. I may state here that all our advances on mortgage were made after careful valuation by experts.- Your directors, while regretting that practical. cessation of the company's; business at the present time, consider that, with care, the value of your property will turn out to bo much greater than that assumed in the present quotations for shares, and you: may rely that every endeavour will be audo to.bring this about." ■■~'.'•■/ . Mr. i Curtis expressed tho opinion that, considering tho restrictions which had been placed on Such companies during the past^ear, the shareholders should be- satisfied .that the association had come out so well. -, The- report, and ; balance-sho.et were adopted. '■*"•■■', : ' V t V • Messrs* W. IT. P. Barber and J. J. Williamson were re-elected directors. DIRECTORS' HOPES. In returning thanks* MiV Barber remarked that he' Jiad, been; a. director , since tho 'initiation, of. the .association. Ty-directors were etWnost" in their >a6r siroto see the company put on- ; a sound basis, and they hoped the day was not far distant when they, would - be able' to resume, tho payment of the dividends which had been paid _ so regularly ! for-"-the ; past twenty-:anq . J. J.:Williamson said the yea,r had been a' very difficult one, and it, looked as if the'next year would alao be difflcult. He thought it was now generally recognised that, the legislation enacted during the i»ast. three years had been a mistake. ■ _ _ ; Messrs. S. M. Hobbs and B. Arthur Glen were reappointed auditors. A vote of thanks was passed to the directors for their services.