SOUTHLAND MUTUAL STARR-BOWKETT SOCIETY

Southland Times, Issue 17661, 19 February 1916, Page 7

SOUTHLAND MUTUAL STARR-BOWKETT SOCIETY

FIFTH ANNUAL AI MUTING . The fifth annual general meeting of Liu* Southland Alutual Slarr-Bowkett Society was held last evening, the chairman, Air Crosby Smith, presiding oxer a large attendance of shareholders. The following annual report was taken as read : The directors have pleasure in .submitting the report and balance sheet for the period ending .’list December, 101.7. During the year five appropriations of £.700 each have been offered to members, two of these being free loans, one under 2 per cent, premium section, and two purchase loans, the latter realising premiums of £1.7 and £l7 per £IOO. Five hundred and nineteen shares have been withdrawn or forfeited to the Soeiety since its commencement, ninetythree of which have been replaced, leaving a, balance, of four hundred ami twen-ty-six still available for intending purchasers. The many applications for withdrawal dining the year have given the directors considerable anxiety. The share lost has now fallen so low and premiums on sale loans have dropped off so much, that it appears to your directors that the Society is arriving at a point where it may not bo profitable to continue. The balance sheet shows the Society to be in a good financial position, the profit and loss account having been increased by £O7 Is and now standing at £1903 4s 10d, but your directors having fully considered the future prospects of the Society believe that in the best interests of the shareholders steps should be taken to consider the future position of the Society and if.deemed advisable to transfer its engagements to another Society. Proposals to this end will be placed before shareholders at the general meeting, and in order to place your directors iu a position to give effect thereto, an alteration of tiie rules is necessary, A special general meeting will be convened for the purpose of considering the same. The directors retiring in accordance, witii Rule No. 03 are ; Alessrs U. J. Broad, \V. Timpany .and T. Pryiic. All arc eligible, and all offer themselves for re-election. The auditors retiring in accordance with Rule 129 are : Alessrs Leary, Cuthbertson and Webb. They are eligible and offer themselves for re-election. The balance sheet showed liabilities amounting t» £l-1,474 10s 6d, assets £16,387 4s Id, the profit for the year being- £697 Is. Air Smith, in moving the adoption of the annual report and balance sheet, said that he was pleased to see such a large attendance as it showed that some stir was taking place. They bad had a fairly successful year, but unfortunately the success was more apparent than real for more than two-thirds of the profits had come through forfeiture of shares, which meant decreased subscriptions and appropriations. Since the war began a large number of shareholders had applied to withdraw their money. The directors had enquired minutely into tiie reasons and the shares had been relinquished as the third paragraph in the report showed. There was now no chance of placing them on the market so they were left with a diminishing number of shares. The directors had considered the question of doing something with the Society in the way of winding it nn, as there was not ranch prospect of profits in the future. If the number of shares went on decreasing as it had in the past the profits would decrease and they would be drawing on the capital to meet the ordinary expenses. To obviate this, they thought to form a building society to take over the Society and the shares, but they could not make up their minds what to do. The Permanent Building and Investment Society had taken over Group 3, and they found that they could not get a bid for any appropriation they offered. At the last two sales of this Society the one brought £ls and the other £l7, there being difficulty in getting even these amounts. It was being found that StarrBowkett societies were becoming unpopular and one cause of it was the number of years it took to terminate them. It took from 21 to 23 years to wind up and people wore inclined to withdraw. The Permanent Building and Investment Society would take them in at a cost of £1 per share for those who are withdrawing their money and at Iss for those leaving their money in. The Permanent Building and Investment did not want the whole of the Society only a part of it. By going in with that society they would save their subscriptions and annual levies and last year the Society was getting 5i per cent. The speaker’s opinion was that it would be wise to go to that society or some other society on advantageous terms. They bad, as yet, no written proposals from the Permanent Building and Investment Society. Mr C. J. Broad seconded the motion and congratulated the Society on their success in the past five years, but tiie future had some misgivings. He thought the proposal from the Permanent Building and Investment Society should be accepted. Air Smith explained that those who had appropriations would have to go over to the Society and pay what remained of their loan. In answer to questions lie said that subscriptions paid to the Permanent Building Society would bear interest: the loss if a shareholder withdrew would be £1 per share. Air AV, A. Ott said that so far as the Alutual Society was concerned, if the shareholders agreed to continue it would be all right. They were not forced to liquidate, and if all paid in regularly it would wind up in a reasonable time, but if withdraawls went on it would be disastrous to continue. Therefore the directors were reluctantly compelled to try and save the shareholders and themselves, they being on the same footing as the shareholders. At present they were making profits at the expense of those who were not in a position to continue paying. The rules provide that after a lapse of three years shareholders could withdraw if they had reasonable excuse. To-day the Society was solid and in a sound position lint there was trouble looming ahead if withdrawals continue. He supported the motion. Air Leary said lie felt disposed to leave it to the directors and he thought lie voiced the opinion of most of the shareholders.

The motion was carried unaiwmously. Mr T. XTyde suggested that the shareholders, if agreeable to the directors’ proposal, should pass a motion authorising them to xToceed with a view to getting the best offer they could and submitting it to the shareholders. He moved to that effect. Mr Watson seconded. Mr A. Jones supported the motion and after complimenting the directors on the way they laid worked for the shareholders’ benefit, suggested that they should try to lessen the amount which the Permanent Building Society proposed ashing for each share. The motion was carried. ELECTION OF OFFICERS. The following three directors were reelected :—C. J. Broad, T. I’ryde and Wm. Timnuny. Auditors: i’. E, Borne and Lea rv, Cuthhertsou and Webb.