YEAR OF PROGRESS

Southland Times, Issue 20495, 25 May 1928, Page 5

YEAR OF PROGRESS

SOUTHLAND BUILDING SOCIETY. FIFTY-NINTH ANNUAL MEETING. PRESIDENT’S INTERESTING REVIEW. The annual meeting of the Southland Building and Investment Society and Bank of Deposit was held last evening, the president, Mr. John Matheson, presiding over a large attendance of shareholders. Sixtysix proxies were received. In an interesting address to shareholders the president covered the principal items in the annual report and balance-sheet. His address was as follows: — LOANS. “Owing to the stringency in the money market, applications for Joans have been rather more than the society could meet; consequently they have had to be dealt with in rotation as funds became available. A total of £199,466 10/- has been lent for the year, which under the circumstances, must be considered very satisfactory. The loans current are £1,092,131 7/5. It will, of course, be understood that this amount does not represent the actual amount due on mortgage at date, as certain repayments have been made in the way of share subscriptions. Some shareholders will doubtless be surprised to learn that since May 1, 1919 (this date is named as it was the beginning of the financial year immediately following the close of the Great War), your society has lent the sum of £1,287,973, nearly all in Southland. Notwithstanding these large figures it must be gratifying to members to know that at the end of the financial year one property only was on the hands of the society, which, to my mind, indicates that loans have been dealt with in a very cautious manner. SHARES. ~ *■ “The number of shareholders on ti».e register is 4,172, holding 67,728 A shares, an increase over last year of 356 shareholders and 7,7654 shares. This is, of course, the largest number of shareholders and shares held since the inception of the society. The shares are held by persons not only in Southland, but throughout the Dominion — indeed, former residents of the town, now resident in London, New York, Fiji and other places, still keep up their connection with the society, with which not only they, but. in most cases their parents, were associated in days gone by. DEBENTURES. “The society continues to hold the confidence of investors, as is shown by the fact that the increase of deposits for the year is £39,420, the total standing to the credit of depositors being £491,727. The total assets of the society amount to £1,125,529. Deducting the amount at credit of depositors, etc., £508,102, shows a balance oi £617,427. The amount received is, of course, fairly satisfactory. But I claim that this society, which encourages systematic thrift by every means in its power, must have created an incentive to saving in many hundreds, indeed in thousands, of the community. It does this, we know, until at least an object has been attained and I believe that the habit thus learned continues with many. I take the liberty of suggesting to such that they let us have some of surplus on debenutres (a proportion do) and not to be too much actuated by self-interest, that is, by taki-ng up shares with us and placing their deposits elsewhere, unless by so doing, they are earning a higher rate of interest. To my mind local investors should deposit to help local affairs.» I appeal to past and present shareholders, who are in a position to do so, to consider this aspect. Our position is undoubtedly strong—overhead expenses not heavy, no extravagances, adequate but not pretentious premises, free of debt. In my opinion, there is no need for the man who cannot afford to lose his capital to look further for a safe investment —safe, that is, in a world of changes. PROFITS. ‘‘Profits equal to seven per cent, have been credited to shareholders in terms of Rule XV, absorbing £38,123 17/6; in addition the sum of £1533 4/11 was credited to shares which matured and were paid out during the year. The sum of £l5OO has been transferred to reserve account, £462 10/6 written off the building and furnishings account, and the balance of £2616 16/carried forward. It has been decided to extend a further benefit to shareholders by paying interest at the rate of 64 per cent, on maturing shares from the end of the financial year till May 25, the day on which payment is available. There being at all times shareholders coming along who are not quite familiar with the manner by which profits are divided, may I explain to those that the profits are added to the amount of their share subscription (not including payments made in advance) at the close of the financial year, which was at April 17. It is, therefore, essential that all interested should see that subscriptions are paid to date and should not come along a few days late, as is sometimes the case, when, of course, profits are lost on the amount overdue. As an example, the subscription payments made during the month of April up to the 17th were £9,175 3/4 (a small proportion" of which would be in advance), and this amount participated in profits, proving that the amount earned by both investing and borrowing shares is very high indeed. It is barely possible that some of you may be of opinion that we should have paid an extra half per cent, this year and that we should aim at a division equal to 74 per cent, for the present year. Personally, rather than that, I would prefer (if practicable) that the rate of interest to borrowers should be re-duced-after all, they are the ones finding the ammunition and, in my opinion, entitled to first consideration.

RESERVE FUND. “In addition to the £l5OO referred to above, the sum of £413 16/6, being profits surrendered on shares withdrawn, has been added to this fund, bringing the total to £20,015 3/7. Notwithstanding the financial stringency already referred to, two properties only have fallen to the society during the year; one has been disposed of without loss, the other being still on hand. Shareholders generally will approve of the addition to this fund. The first thing an intending investor of experience looks for in a balance-sheet is the position of reserve fund, and knows at a glance whether the management is making it safe for him or her or not. Safety first is the consideration. BALANCE-SHEET. “As you have had this in your hands for some days, and as it is published in the local newspapers, I do not propose to go into detail, feeling that shareholders are gratified with the result of the year’s work as disclosed therein, and knowing that people do not worry over details so long as the nett result is right. However, I shall be pleased to answer any questions relative thereto. I may add that d/uring the year I peruse many balance-sheets, and without exception there is none where details are so fully shown as here, thanks to the excellent work of our secretary, Mr Hay, and accountant, Mr Ritchie, and their willing staff. “Before closing I wish to express to my colleagues oh the board my hearty thanks for their assistance to, co-operation with and consideration for myself at all times, and to bear testimony to the excellent services rendered by Mr. Hay, Mr. Ritchie and the whole staff, and also to thank them for courtesy extended to all during the year. In conclusion I would state that the continued success of the society has been the first consideration of the directorate and staff.” The annual report and balance-sheet were unanimously adopted. ELECTION OF OFFICERS. The election of officers resulted: —President, Mr John Matheson (re-elected unopposed). Shareholders’ auditor, Mr C. E. Borne unopposed).

For the four vacancies on the directorate Messrs T. H. Watson, John Gilkison, C. W. Brown and A. W. Jones were elected by ballot. The three first-named were elected for three years and Mr. Jones for one year. GENERAL. A bonus of £2OO, to be allocated by the directors, was voted to the staff, several members eulogizing the services of all those on the staff. The secretary thanked the shareholders on behalf of the staff. The remuneration of each auditor was fixed at £B5 for the ensuing year. The meeting concluded with the passing of a hearty vote of thanks to the president and directors.