PROPOSED DONATION BY THE SAVINGS BANK.

Otago Witness, Issue 2527, 20 August 1902, Page 56

PROPOSED DONATION BY THE SAVINGS BANK.

J-JvUISLATION NECB«SARY,

It seems probable that the Otago University Council will s-hortly receive a h-andsome donation of £6500, forming ]jart of the surplus profits of the Dunedin Saviags Bank. Before this can be done, however, tho assent of the Governor-in-Council must be obtained, and a ftliort amending- act passed by Parliament widening the meaning of clause 2 of " The Savings Banks Profits Act, 1878." The matter oamo up at a meeting of the trustees of the. Dunedin Havings B;\nk, held on Monday, and attended by Messrs K. Rauiaay (vice-president, in the ohair), A. Bartlem.ni, T. "R Ciuistie, R- Chwholm, G. L Derunisto'.i, G. Lawrence, J. T. Mackerrae, and N Y. A. Wales The trustees who were ab&ent are Messrs J. T. Wright and J. R.attray. The bubiness of the meeting was the consideration of the following letter from the Chancellor of the Uni\crtity of Otago: — To the Chairmin of the Board of Trustees of

tho Dunedtn Savings Bank

Sn\— As you are doubtless aware, efforts are Lemg made »»i tho shape of ?.n appeal to the public to strengthen the University by raising an adequate fund to enable it to properly carry on its duties. The present position of tho University iinnnco ib ascnbable solely to losses of rental iiom iuns, duo chiefly to the decline m the (in c o - v, ool affecting the re-letting of the endo-vir^nts The figures illustrating this may be bi »• fly summarised — Former Present lent. rent. Los? Eaionncd urn .. £1750 £900 £850 Kcnmoic uni 36W 31)00 600 Mu--sum Kc<=e.-\e 91t> 550 3C6 Mining i<-i.ti .. 460 - 460 iG'Jti £1150 £2276 I "vat the 'o«9 of £'22"G a year is not o\crstated ;s> proved by the fact that if we go b<>ck to the year 18JW the difference will be fuunu to amount to £2991 There is no prosper', of anything hko the former rental being ltstorctl In lf*9l the council endeavoured to meet its losses by a reduction in i*s annual expenditure of £766, and again in the early part of this year by a further reduction of £.150 PT annum. It has occurred to those interested in the University that the trustees of the Dunechn Savings Bank might aid this movement if po disposed. "'Llie Savings Bank Profits Act, 1878." nernnts the trustees to appropriate the profits of the bank in the manner set forth in that act. The University is not an " institution " within that act, but an examination of the definition of "institution" shews that all the institutions there referred to have been provided for by legislation, throwing the cost of maintaining the persons intended to be benefited cither upon the State or upon the local ratepayers. Ir> these cirr umstancp-> the Council of the University has decided to approach the trustees and ask them if they can see their way to apply for legislation extending their powers so as to enable them to rc:ogmse the University as an institution within the act. Should the trustees decido that this is a proper course to take, the University Council will do all in its power to assist in procuring the necessary legislation, rfncl tho extent of th.s benefit to be conferred will remain in the discretion of thj trustees.

I would paint out tli^t tHo session of Parliament *s well advanced, and that if any step is to y u2 taken it should bo piGmptly taken — I am, etc ,

Joshua Strange "Williams,

OH&£ £ Us{ fl* i^e UjuvexAim. ci OUa9-.

Mr K. Rpmsay moved — "That the Dunedin Savings Bank having by investment of its deposits realised profits to at least the undermentioned amounts in excess of 10 per centum on the aggregate amount of its d-epo-sifs, the trustees of the said bank heroby. pursuant to the powers in that behalf contained iw ' The Savings Bank Profit Aot, 1878,' declare that the sum of £6500 shall be paid over to the University of Otago, to be dealt with by the said University in accordance- with tho provisions of 'the said act. The foregoing resolution is subject to the approval of the Governor-in-Council and to the necessary legislation being obtained at' the instance of the University of Otapo, extending the interpretation of an institution uxicW the abovementioned act, so that it shall embrace the University. That upon the University of Otago applying for such legislation the' trustees will giie them all reasonable assistance." Mr J T Mackerras seconded the motion.

Mr R. Clusholm moved as an amendment

— "That the bank's solicitors be asked to prepare a bill for preocntation to Parliament at its present fitting empowering the trustees to liquidate the business of tho bank, and forthwith, or as i>ocm as the said aot comes into force, to donate to the Otago University the sum of £6000, or as much of the accrued profit as is available at the time, after deducting t-he> 10 i) it cent, on amount of deposits in terms of the present act. Tho said bala-ic-3 of 10 per cent., after paying all chjiges consequent upon liquidation and the liquidation being completed, to be donated as follows : One-half towards the establishment and maintenance of a free public library, and one>-half towards the support of the Technical School already eitabhbhed in Dunedin."

Mr G. Lmvronce seconded the amendment.

A vote was then taken, when there voted for tho motion Messrs Ramsay, Bartleman, Denniston, and Mackerras.

Those for the amendment were Messrs Christie, Chisholm, Lawrence, and Wales.

The Chairman save his casting vote in favour of the motion, which was therefore carried.

The Dunedin Savings Bank was opened in 1E64, and for many years carried on business to the great advantage of the community at large, no Post Office Savings Bank being in operation at that time. Naturally in those days of gold rushes the profits made were considerable. In order to dispose of the profits made by the Dunedin Savings Bank and similar institutions "Tho Savings Banks Profits Act, 1878," was passed by the Colonial Parliament. The clauses of that aot which Jjear upon the present transaction are: — 2. In. tha interpretation of this act the following words and expressions shall hare the meanirg hereby assigned to them respectively i.clesa there be something in the context repugnant thereto or inconsistent therewith • — " Savings bank " means a. savings bank established under " The Savings Bank Act, 1858, ' or any act for the time being in forco providing for the establishment of such banks. "Institution" means and includes any public hospital, benrvolent society, or association for the relief of diseased, aged, incurable, or destitute persons, whether administering m-door or out-door relief. " Governing authority " means tho trustees, committee, or other the peisons in whom the pioperty of any such institution ia invested, and if such institution has no property, then the persona having the control of management of itq affairs. 3. When a savings bank has by investment of its deposits realised a. profit exceeding in amount 10 per centum on the aggregate amount of deposits, the trustees may by a majority of their number declare that any portion of such profits in excess of the said 10 per centum shall be paid over to any institution or institutions. 4. No such declaration shall take effect till the same shall be approved by tho Governor-m-Council, and the Governor may before, such approval require the trustees of the bank to furnish him with such information as he shall direct respecting the debts or liabilities of the bank, and may require any such declaration to ba modified or altered as he thinks fit, but not so as in any case to increase the amount proposed to be paid. 5. Upon the approval of the Gcvernor-in-Council the sum' or sums mentioned in any such declaration or amradment th-neof shall be paid over to the governing authorities of the institution, etc., etc. 6. The moneys paid to any such institution shall be held upon trust as a. permanent endowment for the objects for which such inM.tution was oiigmaKy o«tal>tif t " I d, a'-d sh;\'l be invested as lieremcfKr piovidi-d.

As already ftated, tho bank op"r.r>d in 1864, and Finee the pas-ing of the art of 1878 there has been paid over out of the surplus profits to the Benevolent Institution between £11,000 and £12,000. The business of the bank steadily in orpased despite the opening of tho Po<4. Office Savings Bank at various centres, until 1895, when the Government gave out that savings banks other than the Post Office Savings Bank were likely to be closed. This affected tho business of the bank, as mnv ba pepn from the fact that while in 1*95 tho deposits amounted to £52 000 thpy dropped tho following year to £30,000. Tho withdrawals in 1897 rraihod a maximum of £63,300. Since the idea of ilo<-jnpr up the bank has boen abandoned Hip business has been creeping up again steadily, and the total deposits last year amounted to £36.000, while the withdrawals had dropped from £63.000 in 1897 to £^5,000 last year. The profits made by the bank, of course, dropped with the decrease in the deposit*. The profits in 1F97 amounted to £1055. These dropped to £440 in 1898. but last year went up again, and reached £950.

The accumulated profits at present out of which it is proposed to pay the £6500 amount to £16,400. That the hank is still doing good busings is shown by the fact that there are 2500 depositors, the total deposits amounting to £100,000. The funds of the bank are invested aa follows: — In debentures, £25,000: on fixed deposit, £19.000; on deposits almost at call which bear some interest, £22,000 ; loans on mortgage on freehold security, £46,500. The building on which the bank is carried on is freehold property belonging to the bank, and a portion of it ie let to a good tenant.