BUILDING SOCIETY

Southland Times, Issue 21101, 5 June 1930, Page 6

BUILDING SOCIETY

ANNUAL MEETING

RETIRING DIRECTORS RE-ELECTED.

The annual general meeting of shareholders of the Southland Building and Investment Society and Bank of Deposit was held last evening, Mr John Matheson presiding over an attendance of 80. Mr Matheson’s address was as follows: —- “The result of the year's operations must be gratifying to you, there being a net profit of £48,194 12/6, £47,812 4/11 of which has been added to shareholders’ accounts, on the amount at their credit at the end of the period. The sum of £1712 4/4 was credited to shares which matured and were paid out during the year; the balance of £1164 1/1 being carried forward. As stated in the report, the amount credited is equal to 64 per cent, at credit of shareholders on April 29. Many of you will no doubt recollect, that at the annual meeting in 1928 I indicated the possibility of a reduction of interest (then 64 per cent.) charged borrowers. This materialized in November of the same year, with a 4 per cent, decrease, and was effected without lowering the rate, payable on deposits of varying periods. “Last year being Diamond Jubilee year, an effort was made and accomplished for a division equal to that of the previous several years, viz., 7 per cent. Furthermore, for the first time in .the history of the society, additional interest was added to shares maturing at the balance and not paid out until after the annual meeting, the amount added being in the vicinity of £3OO. I refer to this aspect in case any shareholder may be disappointed at not receiving a division equal to 7 per cent. Keen observers are aware that the present system of distribution of profits does not show our dividend to the best advantage, as shareholders paying monthly or taking up shares during the year, receive interest at extraordinary rate when one considers the short period the money was invested. Further reference to this phase will be made when the proposed alterations to rules are being considered. “For the year under review, the number of inquiries made with the view of obtaining advances has been varied and numerous. A large percentage, however, were such that they did not suit to entertain, while with others our terms of repayment could not be made to suit. Mainly for the purpose of erecting or purchasing dwellings for the personal occupation of applicants, and on business premises and farming lands in various parts of Southland and Otago, great activity was shown in the applications for advances. The number of applications during the period was between 650 and 700, totalling approximately £430,000. Each property was inspected and reported on by two or more directors, with the result that £300,887 10/- was advanced, a further sum of £13,890 being loaned against security of investing shares and debentures. I mention these amounts separately to draw shareholders’ attention to the fact that they may borrow against investing shares or on money placed on fixed deposit. For a period during the year the amount of money available was in excess of the demand, consequently it was decided to curtail applications for large groups of investment shares. Personally, I have some doubts as to the wisdom of this action. Though the quantity of money coming in was.abundant, we rarely had cash idle. The number of shareholders increased by 615, shares by 99154, the totals being 5213 and 86,882 respectively. A total of 4698 ballot papers and 1533 proxy forms was posted, the latter being sent to those resident beyond a five-mile radius. It is to be regretted that during the year five properties came into our hands; two were sold without loss being made, while at date of balance there were three to dispose of. We are hopeful of placing these at no distant date. Our policy has always been to give preference to homemaker borrowers, and as no concern in the Dominion has been more instrumental in lending money for home erection or purchase than our society, it should be a matter of congratulation, considering the state of finance generally, that we have so few properties on our hands. The Reserve Fund, as you will observe, now stands at £20,928 1/4, £462 3/4 having been added during the year. Taking into consideration the fact that when repayments are regularly made on loans the annual reduction, with profits added, varies from about 5J to 23 per, cent according to the series under which loans are taken up. Most of you will agree (there may be exceptions) that the reserve should provide adequate protection against any possible contingency. Personally, I am a believer in having strong reserves as we are passing through critical times. The directors recommend to you various alterations of the rules which, if agreed to, will effect a more correct distribution of profits and generally facilitate the working of the society’s business. “We are under an obligation to the staff for many suggestions advantageous to the society. Your directors, having regard to the good work accomplished by them, recommend that to-night you will vote them a bonus of £250, to be allocated at a future meeting of the board in such manner as they consider just. My personal thanks are again due to my colleagues on the board for their promptness, care and judgment in conducting the affairs of the society for the past year. Also to Mr Hay, Mr Ritchie, Mr Welsh, and all other members of the staff (too numerous to mention) for their valuable services’and courtesy shAwn to our many clients and myself. I also wish to express my appreciation of the' promptness with which our solicitors transact the speiety’s business, and to thank our young friend, Mr Nicholson, their representative, for his courteous attention and interest evinced in attending to our instructions.”

The annual report (already published) and balance-sheet were adopted. Mr John Matheson was declared reelected as president of the society. The retiring directors, Messrs James Ward, A. S. Froggatt and J. R. Martin, were re-elected for a further term. Mr 0. E." Borne was, re-elected as the shareholders’ auditor. It was decided that a bonus of £250 be voted to the staff, and the auditors’ remuneration was increased from £9O per annum to £lOO each. After "considerable, discussion, all the proposed alterations- of and additions to and recissions of several rules of the society were agreed to,,