WELLINGTON BUILDING ASSOCIATION

New Zealand Mail, Issue 1628, 13 May 1903, Page 74 (Supplement)

WELLINGTON BUILDING ASSOCIATION

HALF-YEARLY MEETING.

The ordinary half-yearly meeting of the Wellington Deposit, Mortgage and Building Association was held on the 15th inst. in the Chamber of Commerce, and was attended by fifteen shareholders. Air Wm. Watson presided in the absence of the chairman, Mr W. H. P. Barber, M.H.R* The other directors present were:—Messrs C. Smith, H. Gilmer, W. Cable and James Russell.

The report and balance-sheet for the half-year ending March 31st, which were taken as read, showed a profit on the working for the six months of <£lß9 6s 2d. At the end of the previous half-year there ■was a debit balance of <£ll2 18s 3d, and that was now cleared off, leaving a credit balance of <£76 7s lid to be carried forward to next year's account. Deposits had increased considerably dui’ing the half-year, thus improving the earning power of the association. During the half year 150 shares were applied for and allotted; and the subscribed capital now stood at <£18,770. As half-yearly balances and meetings were found to be inconvenient and unnecessary the directors recommended that annual balances . and meetings be submitted, and that the articles of association be altered accordingly.

The acting-chairman, in moving the adoption of the report and balance-sheet,

said:—You will notice with pleasure that the figures of,our business since our last half-yearly meeting show a very satisfactory increase, in fact our business has practically doubled itself during the halfyear. The items are set forth so plainly that little comment upon them is necessary. The total expenses of carrying on were, for the previous half-year, .£BO 39s 2d, and for the half-year under review, only .£63 5s 2d, which I think will show that every economy is studied in your interests. For the purpose of ascertaining what our profits really have been and •what we may look for in the way of dividends in the future, I will take the profit and loss account for the whole of the past year. At 31st March, 1902, we began the profit and loss account with a debit balance of <£l77 18s lOd, we ended the year with a credit balance of .£76 7s lid, thus showing a profit made during the whole year of ,£254 6s 9d, the preliminary expenses being entirely wiped out. This is just about five per cent, on the average capital of the shareholders, so that already you may look upon your investment as earning five per cent, interest: Further I should like to point out that every increase in our business really means an enhanced ratio of profit, as the larger the business we do the loss proportionately will the percentage of expenses be. Seeing that we have thus practically ‘ turned the corner, it is with a considerable amount of confidence that I now recommend shareholders and others to take up without delay new shares in the association. You may depend upon it that ere long these shares will not be available at par, and shares subscribed now will participate in all the advantages of the company equally with those taken at the commencement. A strong capital insures the successful and "profitable -working of a company such as this. It means security to depositors and an all-round feeling of confidence in every one dealing with -the association. I trust therefore that every shareholder will do his best to extend the capital by furthering the subscription for *>new shares. With regard to our investments I am happy to say that we consider them undoubted, and that we have had no difficulty* in getting prompt payment of interest. As you know, rates of interest have ruled comparatively low since the association lias been in existence, but with the assistance of our solicitors and through other friends of the company, we are enabled to procure investments on ~as favourable terms as others in our line of business. One fortunate feature in the business of the association is that having no assets which are subject to wear and tear, we do not require fo make provision for depreciation. It will, however. be advisable when we are in a position to do so. to build tip a reserve fund however slowly. Every pound added to a reserve fund besides strengthening the association in' other respects, means further earning power and consequently* higher d vidends in the future. It is now acknowledged by all well-managed companies that the principle of building up a reserve fund is sound, and bears the same relation to the success of a company as the practice of adding profits to capital does to an individual. The chairman of an important company having many shareholders in New Zealand (the New Zealand and River Plate Company) stated at a recent mooting in London:—“lf a company is to progress satisfactorily and pursue an upward path with safety, this principle must be recognised and acted upon. This is no mere dogma founded upon academical reasoning; it is based on the stern teaching of experience, and I think it is only those who have been brought into actual contact with the fatal consequences of neglecting the reserve who can fully gresp the. importance of this question.” For this enunc’ation, gentlemen, he was loudly cheered. His company is a most prosperous one. and I am glad to say that I have some shares in it, and had I been at the meeting I should have joined in the applause. Now we cannot look forward to doing much in the way of creating a reserve fund unless we extend the importance of this association bv raising further capital, and I trust I have made clear to you how necessary it is that every effort should be made by each one of you in this direction. Mr W. J. Gaudid. in seconding the adoption of the report and balance-sheet, expressed his pleasure at the progress made, and trusted it would continue. Mr F. W. Swift considered that advertisements should be published in the papers notifying that the shares would be taken up. The chairman thought the suggestion a very one. and promised that the directors would take it into consideration. The report and balance-sheet were adopted. On the motion of Mr W. White, seconded by Mr Swift, the retiring directors, Messrs Watson and Gilmer, were-re-elect_ ed. Mr Watson returned thanks for his re-election. Mr. J. P. Campbell moved. Mr Stuart seconded, and it was unanimously agreed that the retiring auditors. Messrs R. T. Badliam and A. S. Biss, be re-elected. This concluded the ordinary business. \ An extraordinary general meeting was then held for the purpose of passing a resolut’on to alter the articles of association so as to substitute annual meetings and balances for half-yearly. On the motion of the chairman, seconded by Mr S. P. Curtis 1 , the necessary resolution was passed. A vote of thanks to the chairman and d ; rectors brought th© proceedings to a close. At a meeting of the directors held subsequently. Mr Barber was ' re-elected chairman.