DIAMOND JUBILEE

Southland Times, Issue 20794, 7 June 1929, Page 5

DIAMOND JUBILEE

SOUTHLAND BUILDING SOCIETY. ANNUAL MEETING OF SHAREHOLDERS. REVIEW BY THE PRESIDENT. The sixtieth annual meeting of shareholders of the Southland Building and Investment Society and Bank of Deposit was held in the Y.M.C.A. last evening. The president (Mr John Matheson) presided over an attendance of approximately seventy shareholders. President’s Review.

“An honour of more than ordinary significance attaches to our meeting this evening, in that the Southland Building and Investment and Bank of Deposit attains its diamond jubilee,” said the president, in formally moving the adoption of the annual report and balance-sheet (already published). “The preliminary meeting in connection with the formation .of the society was held on March 23, 1869, resulting in its operations commencing on April 21 of that year. While the manifestly secure position in which the society stands to-day is an eloquent and most practical tribute to its founders, it is a privilege befitting this 60th anniversary to commemorate in appreciation those gentlemen whose foresight, courage and acumen in so soundly establishing the society evokes the highest admiration. In retrospect we cannot fully conceive the adverse circumstances of pioneer days, and the many difficulties confronting the initiation and successful control of the affairs of the society. It may surprise any here to-night who were resident in New Zealand during the financial stringency from 1880 to about 1899, though not then shareholders, that the Southland Building Society has not once missed paying an annual dividend since its founding. For the first five years the dividend was 10 per cent, for the first 20 years 9 per cent, and for the first 50 years 7 per cent. The average for 60 years was 6.975 per cent. “The advances for the 20-year periods are as follows: —First 20 years £265,034; second 20 years £384,105; third 20 years £2,048,042—a total of £2,697,181. The amount for the year just passed was £211,321, the largest since the inception of the society. The profits credited to shareholders have been: For first 20 years £57,049; for second 20 years £63,520; for third 20 years £359,883 —a total of £480,452. During the past year there was credited to shareholders investing and borrowing (b table) the record sum of £46,454; this, despite the fact that interest to borrowers was reduced half per cent, in that period and that interest to depositors was not reduced. Y’ou know, of course, that the amount credited is on the sum paid up to the end of the financial year. Debentures. • “Debenture money has been offered more freely during the year, the amount at credit of depositors being £531,837. Largely, I think, although this may be disputed, as a result of the associated banks restricting credit during the past few years in order to discourage importations, New Zealand finds itself with a glut of money for investment. Mortgages on land seem to be in disfavour for several reasons. It is not intended to attempt to suggest a solution but, in my opinion, if our lands, agricultural and pastoral, are not ample security for investment, then the future of the Dominion is not promising. Much money finds its way into the sharemarket, where prices paid in many cases are probably on a higher level than is warranted by the security given and the rate of interest returned to the investor. Mortgages. “Mortgages current, as you have noticed, are £1,208,241 16/8. As explained at former meetings, this does not represent the actual amount due at date. Certain repayments have been made by way of share subscriptions. During the year one property fell into our hands (due largely, in my opinion, to family dissension) and this has since been disposed of at a slight loss. The residence reported as being on the books at last balance is still unsold. However, it is let at a rental which is more than ample to cover interest. To have one property only on the books, in the face of our large and varied transactions, is sufficient evidence of the care given in the handling of this very large amount of money, namely, over £1,200,000. Reserve Fund. ‘This fund now stands at £20,465 IS/-, £470 11/7 being added during the year. Reserves obviously are to cover bad debts, depreciation, etc., and are not sums held for extension of business unless profitably employed or for ulterior motives. To determine adequate provision for contingencies is one of the most worrying things to be considered in financial concerns, and does not permit of hard and fast rules being laid down. Personally, I believe in having a strong reserve, at the same time maintaining that, as the various loans are constantly being reduced, by means of the four-weekly pre-payments, approximately £5,200 (always excepting a few who may be temporarily embarrassed) there was little need for a larger contribution on this occasion. The four-weekly income from all sources was £19,780. Shares. The number of shareholders on the register is 4,598, holding 76,9664 shares, which is also a record. In regard to shares, it has been suggested to me that directors have an undue advantage in the matter of purchasing shares from those wishing to withdraw. This is not so; a few directors have bought, but at a figure quite satisfactory to the vendors. Further, in this connection I have at each annual meeting since holding the position of chairman, suggested that if a holder desires to dispose of his or her interest, I would be glad to advise and in all probability find a buyer at a figure the vendor would approve. A few have acted on this suggestion and have been more than satisfied with results. Unfortunately for themselves there have been some who, probably not being at the meetings referred to, did not call at the office for information and have not come out so well. Again I urge shareholders, wishing to dispose of their shares, to call at the office for information. At the moment I consider that our shares, excepting the 19 year series, should not be disposed of at under face value. Assets. The total assets of the society amount to £1,271,405. Deducting the amount due to depositors etc., namely, £550,568 16/-, a balance of £720,836 18/- remains. Y 7 our society deserves and receives (with very few exceptions) the goodwill of its shareholders, and that, I venture, may be said of the citizens generally, by reason of its service to the community, and of the conduct of its business. Your directors appreciate that goodwill. While it does not follow because prosperity has been with us in the past that it will be recurring, it is my hope and expectation that results attained may be such that we shall long merit that good will, and the society continue to prosper as successfully, for the good of the people as it has done during the past sixty years. You will be pleased to learn that the directors are negotiating with a view to simplifying our system of book-keeping. This arrangement will make it possible for the shareholders and the public generally to conduct their business with more privacy. The balance-sheet having been in your hands for some days and no doubt carefully scrutinized, I do not propose going into details unless you specially so desire, assuming that you are gratified with the past year’s results. However, I shall be glad to answer any questions in connection therewith. Once again I wish to express my thanks to my fellow-directors for the close attention they have given to the society’s affairs, and the help they have given me whenever called upon. My thanks are also due to Mr. Hay, Mr. Ritchie, and all the staff for excellent service rendered, and for the courteous manner in which ; they attend to the society’s many share-j.

holders and clients. I have pleasure in moving the adoption of the report and balance sheet. There is no need for me to go into details concerning the balance sheet which I may safely say is the best in the history of the society.” The report was adopted without discussion. Election of Officers. The election of office-bearers resulted: President, Mr. John Matheson (re-elect-ed). . Shareholders’ Auditor: Mr. C. E. Borne (re-elected). The three returning directors,' Messrs. R. N. Todd, R. J. Cumming and A. TV. Jones were re-elected. There were twelve candidates for the three vacancies. On the motion of Mr. R. N. Todd a recommendation was made to the directors that a bonus of £2OO be allocated to the staff in appreciation of their services during the year. Tributes were paid by several speakers to the work of the president, directors and staff. It was mentioned by one speaker that the total administration costs amounted to only 8d per share.