INDUSTRIAL AND PERMANENT BUILDING SOCIETY.

New Zealand Herald, Volume XXV, Issue 9090, 26 June 1888, Page 6

INDUSTRIAL AND PERMANENT BUILDING SOCIETY.

SEMI-ANNUAL MEETING.

TnE half-yearly meeting of the members of the above society was held at the offices, Vulcan Lane, last evening. There was a good attendance of shareholders, and Mr. G. P. Pierce, vice-president, occupied the chair. Tho minutes of the last annual meeting wero read by Mr. J. Bancroft, the manager, and confirmed by the meeting.

Repobt and Statement of Accounts.— The report for the half-year was then road as follows :~" Tho Board of management, in presenting their report and statement of receipts for tho half year ending March 31 last, beg to state that the business transacted has been of a sound character. The amount lent out during the six months has, owing to the existing depression, and the great caution exercised by the surveyors in their recommendations for advances, been considerably less than that of tho corresponding period of last year. The increase in tho investors' subscriptions points to the fact that t;he public are fully alive to the soundness of the society, and it is to give the Board power to suspend the issue of shares at any time when a profitable use of money cannot bo made, that you will be asked to adopt tho proposed rules at the special general meeting to bo held immediately after this mooting. It is also proposed to form a reserve fund, in ordor that in the event of any unforeseen losses occurring during any one year, a sum may be provided so as to enable the society to pay as constant and regular a dividend as possible. These and tho other alterations proposed, it is considered will be for tho wellbeing of the society, and will add materially to its permanence and stability." Tho statement of accounts for the halfyear was then road, and showed the following figures:—

Receipts.— in hand 30th September, ISSO, £1355 Us lit ; investors'subscriptions, £7476 fis 8d ; borrowers' repayments, £14,301 Os Id; deposits, £H«,914 ;ss; rents. £371 10s; borrowers' general accounts, £340 Is 6d ; insurance, £232 lls id ; entrance fees, £31 l«>s ; survey fees, £40 Ss Gil; tines, £70 17s lid ; interest, ok*., £23 13s 7d ; books, £5 ISs: total, £41,227 10s M. Expenditure. — Loans advanced, £0567 15a ; shares matured and withdrawn, £18,200 On lOd ; deposits withdrawn, £0631 IDs 8d ; Interest paid depo sitors, £1304 4s 4d ; insurances, £231 lls M ; rents and rates, £334 12s 10d ; survey fees, £02 5s 9d ; books, £1S ; borrowers' general averages, £216 l(is 4d ; returned fees, £12 Is 7d ; offices, £10 6s ; office furniture, £10 is tkl; salaries, honorariums, and sundries, £536 7s 3d ; cash in h.uid and bank, £4020 7s lid : total, £41,227 19s e<l.

The Chairman , , in rising , to propose the adoption of the report and statement as read, said that lie had to congratulate tho members on the holding of the present halfyearly meeting, as thoso for tho last five years had fallen through from insufficient attendance. It was patent to all that they were juet now passing through a severe financial crisis, and tho Board of Management was obliged to bo very careful in lending the moneys of the society, and also in borrowing. There was plenty of money to be had on loan, but the society had no opportunity of loaning it again. The surveyors had during tho past six months exercised extreme care concerning the securities they had recommended, and the Board itself even in some cases not approved of those that had been recommended. Some properties had through failure of borrowers to make their payments, fallen into the hands of the Society, but ho considered that but little loss had accrued from that source. The directors had, in view of the hard times, been as liberal as possible to borrowers, but they had not in his opinion done any injustice to lenders. He thought tho officers and board had done their duty and they hoped to have something better to present to tho shareholders at the annual meeting. He then briefly touched upon the proposed alterations in the rules of the society, which were to be considered at tho special meeting, and concluded by moving that the report and statement of accounts be adopted as read. Mr. J. P. SHANNON seconded, and the motion was carried without dissent.

This was all the business. NEW REG DILATIONS.

The members present then formed themselves into a special general meeting for the consideration of the alterations proposed to be marie iti the rule-3 under which the society's operations were conducted. At the request of the chairman, Mr. E. A. Mackechnie explained the purport of the proposed amendments. Several of these were mere verbal alterations tending only to expand or make clearer existing regulations, and were passed without argument. A proposal to alter the number of members required as a quorum at the halfyearly and annual meetings was, after a short discussion, put and lost on the voices. The adoption of an important alteration was then moved by Mr. Mackechnie, by which the society, through its officers, was to receive power, in the event of any mortgagor allowing any property given by him as security to the .society to fall into such disrepair that its value was diminished, to compel the mortgagor to reinstate such property iti its original condition, and failing his compliance, to execute any necessary repairs, which were to be chargeable to the mortgagor's account. The mover stated that this rule had been rendered necessary by the action of mortgagors, who, though promptly keeping up their payments, had allowed houses to be unoccupied, and to fall into great disrepair, whereby they became not worth the amount loaned upon them. The Chairman, in reply to a member, said cases similar to those instanced by Mr. Mackechnie had come before tho Board of Management, houses being loft without tenants, or even windows and doors, and as no insurance company would accept a policy on such properties, the whole risk was borne by the Society. The new rule was thon adopted. A second addition to the existing regulations was then proposed as follows: — "Reserve Fund.—For the purpose of meeting any contingencies that may arise, and of equalising dividends, a reserve fund shall bo made, consisting of all entrance fees and such other sums as the Board (whose decision shall be final, and binding upon all shareholders and other persons) may from time to time, at any ordinary or special meeting of tho Board, determine on, provided that whenever the amount at the credit of the reserve fund shall be in excess of 5 per cent, of the then present value of mortgages as attested by the auditors, such excess shall be divided according to rule 25." Mr. Mackechnie said that the effects of this rule would be to make investing shares of greater value, and had been partly provided for in the stipulation already exit-ting for the meeting of anticipated losses. Mr. J. Caklaw objected to the introduction of the rule, as he considered such-a reserve fund would not bo of benefit to any present members, as their shares would mature in about eight years. The proposers of the rule had not specified how any emergency such as they appear to have anticipated would be likely to arise, and ho was of opinion that as shares matured borrowing and investing members should have the profits divided amongst them frro rala. Messrs. J. P. Shannon, P. H. Mason , , and the Chairman supported the adoption of the rule as proposed. Mr. W. E. Payne asked if the Board could give any idea of the ultimate amount of tho proposed reserve fund, or if any limit had been set? The Chairman replied that it was impossible to fix any definite limit, but tho amount was a small one only, as it wap not to exceed five percent, of the value of mort-

gages. Mr. C. McMaster said the clause as read would be likely to frighten borrowers away from the eociety, and the investing members would naturally suffer from a scarcity of borrowers. The motion was then pub, and a division being called for, 13 members present and 41 proxies declared for it and seven against. The Chairman then declared the alterations as proposed carried. The meeting clos<- with a vote of thanks to the chairman, proposed by Mr. R. M. Clark.