WELLINGTON DEPOSIT, MORTGAGE AND BUILDING ASSOCIATION, LTD.

NZ Truth, Issue 725, 10 May 1919, Page 4

WELLINGTON DEPOSIT, MORTGAGE AND BUILDING ASSOCIATION, LTD.

Eighteenth Annual Report and | Balance-ahoet, ■ ' For a long time past the above concern has shown very little prof gress. . Over and over again has "Cambist" urged the directors to "get: a move on," and never failed to point • out to them the folly of playing finance upon the ridiculous basis of ten bob m the £ . The authorised capital ! is only £50,000, and of that sum just one-half is paid up. The little com- . pany has to carry a board of direc-; tors, officials, auditors and solicitors,, and considering what this means m. the matter of expense,! it has to bepraised for the great economy with^ which' Its affairs are conducted. Now, there are many money grubbers m, the town of "Wellington, who are the owners of very much greater funds, than .are -paid up m the Wellington De-< posit, Mortgage . and Building Association, Ltd., and it is also permitable to assume that such capitalists^, are well able to earn much more than-, 5 per cent, on their funds. Then why does this company keep so constantly* to that low level of earning? This writer considers the real cause is to ; be found In the want of enterprise^ which too much caution is sure to breed m timid minds unable to grasp, the opportunities that abound on every side. Not only is this a deposit company, but it is also a mortgage! and building association. Are therefc riot many thousands of mortgages offering? "Was there ever such a time for building operations? Is It not a^ fact that thousands of home-seekers" have been forced to live m rooms for lack of decent house accommodation? Evidently all of these important factors have escaped the management of the concern fov the last eighteen.' years, and it is nothing more than, folly to put this all down to the war. Had. these persons responsible for the conduct of the company's business exercised a reasonable amount of fore-^ sight and caution, they would have: laid the l' FOUNDATIONS FOR A HUGE b) BUSINESS -ji m the time mentioned. It is surely; time' that they woke up and tackled- 1 these problems m a businesslike man=Jner. They need very much more:.' capital. There are many ways of get- • ting this m spite of the silly embargoplaced upon enterprise by the Government. Three of the English banks' which have been exploiting the people here during the war period have sue- ( ceeded m enlarging their capital accounts by no less than £2,500,000. within the past year. This concert! . should be able to gather m a modest £,200,000 if it went the right way; about matters. Its -credit is relatively* quite as good as that of any of ihesfe. banks, and its opportunities for money;, making are rather better. Also, its: operations would enormously benefit the district m which it carries on a business. , .. The reserve fund 'is £ 2400, to which." £400 more is added from this year's^ profits. £150 stands as a reserve fq}V ; contingencies as usual. Deposits are less by £942, at £32,743; but for. these loans the association is giving.', a large margin of security to the der. poaitors. The total of assets comes,; to £62,541, to which should be added: the uncalled capital, viz,, £25,000,,The two sums make up a total of] £87,541, or nearly three times the; amount of the deposits. It would be'- 1 hard to find any better security, and the wonder is that the deposits have, fallen away under such remarkable'^ conditions. Evidently the public are. not aware of the facts. The manage^' 1 ment should let them be known. Here' is an opportunity to test the management. There is nothing better than' the deposit account m a financial' company to prove its enterprise arid' ability. I On the assets side mortgages have decreased by £5576, to £55,598. But, on the other hand, special deposits, ', ! a new entry, have come to light to the extent of £5464. This writer can say; nothing definite regarding the earning: power of the new deposits, but :he considers that they will be somewhat, lower than the return from the mdrtV gages. On many other occasions he has pointed out his preference ;, FOR THE MORTGAGE BUSINESS) • and he still maintains that view. ' ■■->■ Looking over the profit, and loss account, the gross earnings are £135 i less at £3834. Expenses are lower rtor the. extent of £10, while the cha'rge< for interest is also lower by £171J act: £1350. Nothing could better show, care and economy, but is it the best policy. How ca n anyone be afraid of. a little enterprise m view of the solid opportunities for safe investments spi'ead around at the present momentFive per cent, is all the shareholders^ are receiving for all the caution dis•playod, and also on the £25,000 they, have handed over to the financiers that are: brooding- over the war, and other matters. It seems time to wake up out of thia slumber. The tim.e ; for 1 action has arrived. •, :;■;:,