BUILDING SOCIETY

New Zealand Times, Volume XLVII, Issue 10849, 15 March 1921, Page 6

BUILDING SOCIETY

A SUCCESSFUL YEAR INCREASING COST OF CONSTRUCTION. » INCENTIVE TO THRIFT. A vote of thanks for the satisfactory report and for the careful management of affairs wan extended to the directors and staff of the Metropolitan Permanent Building and Investment Society by Mr H. Hall a£ nie thirtieth annual’ report of directors, held in the offices of tlio society last evening. A YEAR’S WORK. STRENGTHENING THE! RESERVE. In his opening remarks, the chairman, Mr W. M. Hannaway, said: “I have again to congratulate shareholders on a successful year’s work. Our net profits being somewhat greater than, last year, thus justifynig ;your directors in recommending the payment of the usual dividend of 7 per cent., with a bonus of 1 per cent., as ive did last year. “As will he seen from tho balancesheet, after providing £515 for the bonus, we add another £IOOO to the reserve, and carry a slightly greater sum forward than we did last year. Reserves now amount to £16,000. Your directors consider a strong reserve not only prudent but necessary, and the steady strengthening of our reserves gives increasing security to shareholders and depositors.

The previously high cost of building construction increased during the year, and your hoard exercised the greatest caution in its investments, as in previous years a very conservative policy has been adopted, consequently there has only been a small increase of £2500 on loans on mortgage. Tlje other items in the balance-sheet require little explanation. Tlie “A” sharb capital stands at £30,000, as last year. ISSUE OF SHARES. Th© subscriptions on “B" shares are £ISOO more than last year. The value of the “B" scares maturing during the year amounted to £13,308, which sum was paid in cash to shareholders. As I have said on prevkaia jpceasions, the issue of “B" shares do not add to tlio society’s profits to any considerable extent, but they are a great incentive to thrift, and 1 am satisfied that a very small proportion of this £13,000 would have been saved, except through some such medium as is made available by our society. During the year 882 new “B" shares have been issued. The working expenses continue low.” REPORT OF DIRECTORS. The directors’ .thirtieth annual report read, inter alia:—The directors reoommend that the usual distribution of profits at the rate of 7 per cent, per annum be made, together with a bonus of 1 per cent., and that a further sum of £IOOO be added to the reserve fund, which will then stand at £16,000. It will be your duty to elect two directors in place of the Hon. J. G. W. Aifken and Mr Wright, who retire in accordance with the rules, but are eligible, and offer tfiemselves lor re-election. The profits for the year (including a balance of £962 13s 7d brought forward from last year) amount to £7090 14s 6d, less expense account of £BBI 14s sd, leaving a net profit of £6209 0s Id, lees inrSHni""dividend for six months ending August 15th, 1920, £IOSO, leaving a balance of £5159 0s Id, which it is proposed to appropriate as follows: To credit holders “B” investment shares at 7 per cent., for twelve months ending February loth 1921, £1441 11b Bd, and 1 per cent, bonus, £215 12s 1d—£1657 3s 9d. To payment of dividend at 3J per cent, for six months ending February 15th, 1921, to holders of “A” shares, £IOSO, and 1 per cent, bonus thereon, £3O0 — £1350; to reserve fund, £IOOO, a total of £4007 3s 9d, leaving to carry forward to n?xt year £llsl 16s 4d. Liabilities and assets were stated as under:—Liabilities: “A” shares, £30,000; reserve fund, £15,000; “B" shares, £31,108 19s 3d; fixed deposits, £83,745 list 4d; adjusting accounts of profit, £lll3 12s Id; balance pr.ofi-fc and loss, £5,159 0s Id; total, £166,127 2s od. Assets: Loans on mortgage, £155,282 2s Id; loans on shares, £705 Is 9d; Bank of New Zealand, £3139 18s lid ; debenture account, £6000; New Zealand Government War Bonds, £1000: total, £166,127 2s 9d. Tho H.on. J. G. W. Aitken and Mr G. R. M. Wright were re-elected as directors; and Messrs H. Kember and Son and E. Bucholz were re-elected auditors.