Q.D. AND H.P. SCHEME.

Evening Star, Issue 19697, 26 October 1927, Page 2

Q.D. AND H.P. SCHEME.

■‘TJ THJi EDITOR. Sir,—lt is lo bo expected that a scheme like this should meet with opposition in a new field, but one- would expect a critic to possess himself of more than “meagre” information before coming to conclusions. However, honest criticism is good at any time, but perhaps “Accountant” has overlooked the (act that this concern is carried on. not on a commercial, but on a co-operative basis; and I would hero point out that no fixed percentage of dividends has ever been made by the scheme.

Any dealings which I have had with this concern have turned out exactly as promised. 1, therefore, have no reason yet io doubt tho .stipulated waiting period for loans. Regarding the Q.D. depositors’ reserve fund, it must be remembered that thousands of members have already received bark their original deposits by way of dividends. Their claim then on this fund is but a secondary one, as it is there to protect now members and those who have not yet drawn dividends ecpiivalent to their deposits in Q.D.; and if this fund grows as rapidly in the future as it has done in tho past, then I believe the winding up is as distant as “Accountant” thinks it is near.

Apparently your correspondent has not perused the book of rules, which makes it quite clear that members can withdraw their H.P, deposits to the extent of flo per cent, ah any time before their loan matures, but afterwards it remains in tho fund, and no promise of return is made, as is with Q.D. deposits.

At the end of 1926 tho H.P. deposit fund stood at £99,610. A large portion of this lias been lent out and repaid the second time. Your correspondent is quite correct in saying that the deposits are relent and reinvested in Q.D., hut whore do the dividends which they earn no to in the first place? Back into tho H.P fund by way of repayment of the loan, as cash dividends can only ho drawn on clear monev.

1 believe this scheme is a good thing lor tho working classes; but my advice to anyone is to invest where lie thinks best; hence tho reason of my investing in Q.D. and H.P. Regarding the article by “.T.,” I know nothing whatsoever about it: but there arc two sides to most questions, and f would hesitate in passing judgment on a man who is not hero to defend himself.—l am, etc.. I). Mom, Hon, Representative Q.D. and H.P. October 25. TO TUC KDTTOU. Sir,—A Iter reading the replies to my letter asking tor information ro the Q.D. and H.P., Ltd., scheme, I again delved into the pamphlets published by tho society. “Accountant” and the article forwarded you by “J ” made mo more critical, but I did not finally decide to discard the idea of reaping a 20 per cent, dividend on .£5,000 by the simple investment of £2, until I found out that the promoters of the scheme received or take for themselves 50 per cent, of all money paid in. When the promoters do this, to me it seems that tho likelihood of a dividend of 20 per cent, is stilt more remote. My reading of the pamphlets may not be correct, but I foci sure that, if I am wrong, tho local representative of the company or onr learned adviser “Accountant” will correct me.—l am, etc., B. October 25.