BUILDING SOCIETY

Evening Star, Issue 23100, 28 October 1938, Page 2

BUILDING SOCIETY

UNITED STARR-BDWKETT ALL GROUPS SHOW LARGE PROFITS Because of pending Government legislation virtually sounding the deathknell of the terminating classes of building societies in the Dominion, the directors of the United Starr-Bowketb Building Society have under consideration a plan to change certain aspects of its operations into a permanent society in order that it might be possible to merge some of the business that is at present being handled. This was announced at the annual meeting last night of the society by the chairman, of directors (Mr F. W. Mitchell). The satisfactory financial position of the society was the subject of special cornevery one of the 11 groups still showing a profit. There was a small attendance of subscribers. “ For many yeans terminating building societies in Dunedin have been conducted with conspicuous success,” said the Chairman, moving the adoption of the annual report of the directors and the balance sheet. “ There have been hundreds of thrifty people who, with the assistance from bodies such as these, have been able to build or acquire homes of their own within a reasonable time after securing their loans. They have either paid off mortgages or bought land and built on it. Others have’ been content to treat their loans as investments, leaving the money in savings banks and drawing interest till their group has been liquidated, when in most cases they have received a substantial profit.” Mr Mitchell asked whether there could be a more commendable scheme, which encouraged thrift and paid the cost of a home at little more than a. rental. Largely through legislative enactments, many restrictions had been applied to the building society movement, and members no longer looked forward to the time when they could get cheap money on most favourable terms of repayment. When loans were offered at auction bids they were seldom forthcoming. With all the obstacles, however, the society had managed to carry out the objects for which, it was formed. Loans granted had now reached the highly respectable total of £716,000. How many homes were represented by these figures was a matter' for conjecture, but it was a safe estimate that hundreds of people without assistance would be paying rent without

any other interest in the homes they occupied. The directors had hoped thas another group might have been started this year, but the response to the offer of shares* in No. 12 was disappointing, and it was improbable that the project would be proceeded with. “ While in England last year.’l said Mr Mitchell, “ I made some inquiries into the problem of building societies there, and from figures shown me I am satisfied that terminating societies are steadily winding up, while the permanent type continue to flourish. In this connection the directors are investigating the position, and have under consideration the idea of changing opera* tions into a permanent society in which it might be possible to merge some ot the business we are at present handling. “ Despite the drawbacks I have mentioned, it is interesting to note from the balance sheet that every group sti.l shows a profit, which will ultimately come into your hands,” concluded Mr Mitchell. , , . a The motion was seconded by Mr A. Lamb, and carried. appropriation by ballot. Following the conclusion of the formal business of the meeting, there was a ballot held to dispose of a number of appropriations. A ballot for the 104. h appropriation of £SOO in No 5 s«,up was drawn by cluster No. 23, held by one member. For the 185th:appropriation in No. 5 group of £ooo, -v ballou was held, cluster No 26 being drawn bv a croup of five shareholders. Ihe ninety-sixth appropriation of £SOO was drawn by sale in No. 7 group. Cluster No. 24, representing five shares, was drawn. In the same group die ninety - seventh appropriation for the same amount was won by cluster No. 18, held by two shareholders. The forty-third appropriation of £BOO by ballot in No. 11 group was drawn by cluster No. 251, held by one shareholder. DIRECTORS re-elected. The retiring directors, Messrs G. A. Lamb and E. A. Rosevear, were reelected for a further year. The directors’ fee was fixed at the usual amount. The retiring auditors, Robert Hanning and Son and George Blyth and Company, were re-appointed, and their fee was fixed at the same amount as last year. . . ~ The secretaries of the society, Messrs J. W. Smeaton and Company, were accorded a vote of thanks for their sen vices during the year.