BUILDING INVESTMENT SOCIETY

Evening Star, Issue 20022, 13 November 1928, Page 11

BUILDING INVESTMENT SOCIETY

SEVENTH ANNUAL MEETING There was .a fair attendance of members at the seventh annual meeting of the Otago Building and Investment Society and. Bank of Deposit, held in the Chamber of Commerce board room last evening. Mr H. F, Sincock occupied the chair. In moving the adoption of the report and balance-sheet the Chairman said the year had been a somewhat trying one. The absence of any volume of deposit money had restricted the society's advances. As usual thcrc had boon plenty of applicants tor mortgage advances, many of whom it was not possible to accommodate. This was to bo regretted; hut until such time as the society was able to command the confidence of those whe now place money elsewhere on deposit at lower interest rates than the society could offer they must move along slowly and steadily gain a fooling, from which with good, management they must benefit in the end. The balance-sheet showed a good return, and demonstrated how firmly the society was established, in spito'of ite slow growth. The advances on mortgage and on .shares showed an increase of £G,OS7. In the. previous year the increase was £8,005. The liability to members had increased by £2,759 17s 4d, .and included tbe Gi per cent, dividend credited members for the year just closed. Debentures current at the end of the financial year amounted to £21,308, and were just over 3GJ per cent, of the, ■ advances. The mortgage reserve account now I stood at £1,045 12s td, being just over 1 4-5 per cent, on current adtances,

and nearly 2J per cent, on the net mortgage advances. The bank account was in debit to the extent of £663 15s 4d. This account varied very rapidly. The society_ availed itself of tho bank to temporarily meet advances for which finance was arranged, but not to hand. Share subscriptions totalled £8.674 2s lid, against £8.884 11s 8d last year, a drop of £2lO 8s 9d. This was, all things considered, very gratifying, as shares withdrawn and matured amounted to £904 7 s 7d more than the previous year. The mortgage advances repaid totalling £2,727 10s, being £2,352 10s less than last year. The interest paid on debentures had advanced to about £2OO more than last year. Tho amount credited to members, being the dividend at the rate of 61 per cent., was £1,864 8s lOd. Last year tho same rate of dividend absorbed £1,698 12s 4d. Fines amounted to £l2 15s 2d, against £2l 13s 2d the previous year. Entrance_ and transfer feees dropped to £l6, while shares and profits forfeited totalled £l3O, as against £l6O tho previous year. It was a pleasure to see this unwished-for revenue on tho decline. The amount carried forward was £22 7s lOd more than the previous year. The society was at present working on a very low overhead, and for this reason lie would like to see tho society expand more rapidly while trading under such favourable conditions. The cost of management per share last year was a little over Is Bid, and was just about id per share less tuan the previous year. This low rate per share could not continue as the years passed unless the society added considerably to the number of shares on the books. The Southland Society worked in 1927 at lid per share, but that body worked on just short of 60,000 shares, against tho Dunedin Society’s 4,543. The Southland body, therefore, had thirteen shares on its register to every one on the local

register. It was found necessary to increase the share register. In addition to this the society must incur larger expenses in order to expand its operations, and for tho year just opened it must face heavier expenses in tho hope of fruitful results. Ho thanked tho directors for their support during tho year, and also the staff for the capable manner in which tho work of tho society had been attended to, Mr J. W. Patton seconded the motion, 1 which was carried The election of office-bearers re-* suited:—President, Mr H. F. Sincook (re-elected); directors —Messrs S. Bowman,' W. R. Hayward, and R. W. M‘Creath (re-elected); auditor, Mr H, H. Sykes (re-elected). Mr R. W. M’Creath gave a brief address on the aims and objects of the society, and the good that would accrue to anyone holding shares. Ho stressed the fact that if every person was imbued with the spirit of assisting others, he would thus be helping someone to secure a homo.