H.B. PERMANENT BUILDING AND INVESTMENT SOCIETY.
The annual meeting of the shareholders of the above society was held last evening in the Council Chamber, Mr C. B. Winter in the chair.
The following report was read by the secretary : —
Your committee have much pleasure in submitting the accounts for the seventh year of the society's operations, and to congratulate them on its continued success and large increase of business.
At the close of the last year 1631 shares were good on the books, showing an increase over the previous year of 311. These were held by 231 members, being an increase of 41-.
D uving the past year applications for loans amounting to £18,042 have been received, of which sum a1G,142 was granted.
In consequence of the falling off of applications for loans, and in view of thd shares of the first is3ue arriving at maturity in about two years, your committee deemed it advisable that investment shareholders should bo allowed to borrow on the security of their shares under rule Si; and that such loan should not be repaid, but the amount borrowed to be deducted from the value of the share when the same is paid off j and to induce members to avail themselves of this provision the following rate 3 of interest were fixed, payable quarterly : —Under £100, 9 per cent, per annum ; £100 and over, 8 per cent, per aHnum.
By this means shareholders will be t>nabled to anticipate a large sum they would have to receive when their shares are of the value of £50 each ; no expense for deeds is occasioned by thus borrowing, and it is hoped that shareholders (especially of the first issue of shares) will liave recourse to this means of assisting the society in disposing of its capital, that would otherwise be tying idle awaiting the payment of so large a sum as will be required to pay off the shaves of the first issue. Members still have the option of borrowing on the security of their investment shares, and repaying the loan by monthly instalments, or by repaying the whole or a part thereof, on giving three months' notice in writing. Owing to the large increase in the business of the society, your committee have availed themselves of the provision contained in rule 14, by instructing the trustees to purchase a site for the erection of offices, and a section of land in Tennyson-street, 33 feet frontage, by a depth of 82£ feet, has been purchased at a cost of £224 7s, which has been filled in to the proper level. Tenders have been called for the erection of a building, the plan of which will be submitted to you at this meeting ; the tender of Messrs Lucas and Humphries for £675 lias been accepted, subject to your approval. The Agricultural and Pastoral Society will occupy a portion of the building as offices at an annual rental of £50. Your committee have, during the past year, brought rules 4S and 49 into operation, which provide for payment for attendance at their meetings, and fines for non-attendance. Since last meeting Messrs E. Lyndon and J. M. Satham have resigned their trusteeships, and under rule 11 Messrs H. A. Banner and Ramsay Sime are nominated their successors. During the past year Mr H. O. Wilson has retired from the committee, and Mr J. Gfrubb has been elected in his place, Messrs F. Bee, R. Holt, and C. B. Winter are the retiring members of committee. Thoy are eligible, and offer thomselvos for reelection. Two auditors will have to be elected. O. B. Winter, Chairman. J. B. Fieldek, Secretary. A table showing the value of each investment share was appended to the report. It showed that each share of the first issue, with seven years' currency, was worth £31 12s 4d, the amount paid being £21. The balance - sheet showed receipts amounting to £23,820 3a 6d. The expenses of management amounted to £211 8s 3d ; property tax and borough rates, £49 2s 5d ; report of actuary, £31 12a; office furniture and sundry other small items, £15 19a 2*l ; purchase of land for offices, £224 7s- The other sums on the credit side were for loans on mortgage and on securities of shares, repayment of bank overdraft, withdrawals of deposits and of investment shares,
and amounts credited for investment shares converted into borrowing shares. The profit and loss account showed £1181 13a 3d profit for the year, of which £1020 19a 2d was credited <o members' shares, and £IGO 14s Id carried to the reserve fund, making that fund £590 103. The Chairman, in moving the adoption of the report and balance-sheet, said that the past year was the first since the existence of tho society that there had been an accumulation of funds. Previously the society was generally overdrawn at the bank, but that state of matters was reversed last year, through falling off in the applications for loans, and also through tho increase of income by the growth of the society. This had led the committee to avail themselves of the regulation which ; permitted making advances on the security of shares. The borrowing might be to the full amount, paid on the shares, the inte-> re3t charged being 9 percent, under £loo, and 8 per cent, for that amount and upwards. There had been about £3000 borrowed under that arrangement. Tho committee had also taken another step to relieve the society of unemployed fands — they had passed a resolution to discontinue taking money on deposit. Of course, as the society increased there would bo larger amounts to invest, and tho committee would have quite as much as they could perform without the addition of deposits. He however, glad to say that tho steps that had been taken had already borne fruit. At the end of the last financial year there was £10,500 invested in debentures, which hr.d been since reduced by £3000, and it was hoped to further reduce it during the current year. They must all agree that the office where the business of the society was at present conducted was quite inadequate for tho purpose. This had been felt so much that the committee had purchased a site in Tennyson-street upon which offices would be erected. An arrangement had been made with the Agricultural and Pastoral Society for their renting the upper flour for a sum which would give this society 7 per cent, on their outlay after taking into account the rental value of the offices they would use themselves. There was one other matter which he had to mention. The committee had looked after themselves to the extent of putting into force the rule which allowed them to make a charge for the performance of j their duties. The allowance decided ' upon was 5s for each attendance, a fine of 5s being imposed for non - attendance. The amount so paid for the past year was only £15 15s, and he did not think the shareholders would find fault with it. They could hardly expect that men would give their time for nothing. Indeed, he only mentioned the matter lest it might be said that he had passed it over. With regard to the operations of the society he must admit that he felt disappointed, but that might be because his expectations had been too high. Last year a gentleman brought him a balance-sheet of a building society, remarking that if the Hawke's Bay Bociety at the same age showed as well it might be very content. Well, this society was now at the same age and showed 2s per share better than the other society ; so that at all events the Hawke's Bay society was abreast of kindred societies in the colony. The chairman concluded by formally moving the adoption of the report and balancesheet. The motion was seconded by Mr Bennett and carried nem. con. On tho motion of Mr W. Miller, seconded by Mr Craig, Messrs Banner and Sime were appointed trustees in place of Messrs Lyndon and Batham, resigned. Mr Banner moved that the vacancies on the committee be filled by the appointment of Messrs Bee, Holt, Winter — the retiring members — and F. W. Williams. The motion was carried unanimously. Mr Colledge moved, and Mr J. Sidey seconded, that Messrs Liddle and Craig be re-elected auditors. Mr Craig said that it had not been his intention to serve again as he had found the work very heavy. At the same time he felt bound to acknowledge the courteous assistance given by the secretary. The motion was carried unanimously, and Mr Craig acquiesced in the decision. Mr Banner asked whether the adoption of the report by the meeting would be taken to endorse what had been done by the committee with regard to the new offices ? The Chairman thought it would, but it would perhaps bo better to have a formal resolution passed on the matter. Mr Craig moved that the action of the committee in purchasing land and arranging for erecting offices be confirmed. The motion was seconded by Mr Sime, j and carried nem, con. The Chairman announced that the profit of the society for tho year was at the rate of 12| per cent. The Rev. Mr Campbell asked whether the committee were precluded from lending on shares to the full extent of profit ? The Chairman said that loans on shares could not include profit. If money accumulated very much the question might arise whether a special meeting should not be held for the purpose of balloting for the withdrawal of shares, in which case profit would be included.
A vote of thanks to the chairman concluded the proceedings.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/HBH18820217.2.14
Bibliographic details
Hawke's Bay Herald, Volume XXI, Issue 6173, 17 February 1882, Page 3
Word Count
1,618H.B. PERMANENT BUILDING AND INVESTMENT SOCIETY. Hawke's Bay Herald, Volume XXI, Issue 6173, 17 February 1882, Page 3
Using This Item
No known copyright (New Zealand)
To the best of the National Library of New Zealand’s knowledge, under New Zealand law, there is no copyright in this item in New Zealand.
You can copy this item, share it, and post it on a blog or website. It can be modified, remixed and built upon. It can be used commercially. If reproducing this item, it is helpful to include the source.
For further information please refer to the Copyright guide.