PERMANENT BUILDING SOCIETY OF OTAGO.

Otago Witness, Issue 1162, 7 March 1874, Page 11

PERMANENT BUILDING SOCIETY OF OTAGO.

This Society held its tenth annual meeting in the office of the Secretary (Mr J. S. Webb), last evening. Mr Fish occupied the chair. The balance shoot appended to tho report showed a surplus profit. Messrs H. Wise, H. S. Fish, W. J. Burton, D. Brent, and H. J. Walter, were re-elected a Committee of Management. The report for the year 1873 was as follows :—: —

The past year has boon characterised by increased activity in building, and in the demand for money for reproductive purposes ; and in spite of increased competition, your Committee are able to report that a good remunerative business has been done by this Society. During the year the rates for advances have necessarily been lowered, in consequence of the publication of tables by several other Societies based on a seven and a half 'per cent, rate of interest. To moot this competition your Committee have adopted a new table (a copy of which is appended to this report), at a mean of the reduced rates charged elsewhere. On the other hand, they have been able to obtain money on debenture at very favourable rates, and a largo number of Cl.tss A shares havo been issued at a premium of 3 por cent, per annum. Your Committee have thus been enabled to continue tho operations of the Society at reduced rates without any diminution of profit to shareholders. In fact, the bonus on shares in the Permanent Society for the past year is much larger than that declared at the last annual balance, whilst tho other scries have equally participated in tho success of the Socictv.

Piyinents of .subscription.-, and redemptions in the First Series ceased with the November meeting of tho Society la-st year, and the securities for recent investments wore realised, and the full sum of £00 per share paid to shareholders during the current month. 1 here icniains on an adjustment of the affairs of the Series a sum of £141 9s (id, being surplus of profits. This will, after paving' the expenses of winding-up, return 12s Gil per share to the holders of the sh.vres lately realised. Your Committee believe that the realisation of this Series, which has been greatly advanced by the recent changes in the constitution of tho Society, will compare favourably with that of any terminating Society which has existed in Dunodiii. Tho' funds of the Second Series have, during- the past year, been wholly invested through the medium of tho 'Permanent Series, no shareholder having sought an advance. Tho number of shares has been reduced by withdrawals and by tho foreclosure of a mortg.ige to 20t. These shares aro in a groat number of hands, being held chiefly by shareholders in the country in small lots. This circumstance has induced tho Committee to talfo no further steps to induce shareholders to exchange them for those of Class 13 ; and, except for convenience in keeping the accounts of the Society, there docs not appear to be any valid reason for further urging this course on the holders of these shares. The amount at tho credit of tho Profit and Loss Account of this series is now £533 10s lid, equal to £2 1?.-. Id per share. Permanent Series.— During tho past year investments on mortgage have been made to tho amount of £0380, and £107 2s lias been advanced on security of paid-up shares. After paying 9 por cent, interest to holdors of class A shares of the early issuo, and crediting tho holdors of shares in class B with profits in accordance with tho Society's tables, there remains a surplus profit of £200 7s 'M. In compliance with the Rules, one-half of this will bo placed to tho credit of a Reserve called tho Guarantee Fund, and the remainder will be apportioned to the paymont of a bonus of 1J per cent, to tho shareholders. Thus tho profits of tho year yield interest at tho rato of 12 por cont. por annum on the moneys of shareholders invested in tho Society, and 10J- per cent is actually divided ; shareholders boing further entitled to their proportion of tho f uUU'O divisions of tho Rcsorv'o Fund. Tuoius Dick, Chairman.