WORK IN EARLY DAYS

Southland Times, Issue 23513, 20 May 1938, Page 10

WORK IN EARLY DAYS

DIFFICULTIES MET AND OVERCOME STORY TOLD BY FIRST ANNUAL REPORTS Difficulties that were met and overcome in the early years of the Southland Building Society’s existence are described in the annual reports, of which there is a complete record since the first annual meeting in 1870. Following are some interesting excerpts taken from annual reports at various stages of the society’s early growth: 1870. A financial statement only was issued for this year without any comment. It is disclosed, however, that Mr Frederick Nutter was the first secretary and Messrs T. Perkins and B. A. Dickinson were auditors. The amount lent on mortgage was £2775. The profit distributed at the rate of 13/- a share was £696 16/-, and the number of shares issued was 1072. 1871. A similar statement was issued for this year. The amount lent on mortgage was £3325. The profit distributed at the rate of 14/— a share was £736 8/-. 1872. The sum of £4360 was lent on mortgage and shares during this year. The amount credited to members’ shares was £789, being at the rate of 15/- a share. 1873. For the first time a report was issued with the balance-sheet and consequently the information is fuller than that for the three previous years. Mr James Brown’s name appears for the first time as secretary and Mr George Trew’s name replaces that of Mr B. A. Dickinson as auditor. There were 282 shareholders, holding a total of 1509 shares, showing an increase for the year of 457 shares. It is stated that “die power to withdraw having come into operation during the year 124 shares have been withdrawn, which although at first sight a seeming disadvantage has proved otherwise, resulting in £l4B 16/- being placed to the credit of the Reserve Fund, which can only be apportioned every three years.” The profits for the year amounted to £BO5 19/6, representing a dividend of 15/6 a share on the old I paid-up shares, the new shares re-1

there are big folding doors to the main lounge. A fully equipped kitchen and cloak room make these rooms very attractive as club rooms. The building is being heated by means of a low-pressure hot-water service. Even the parking garage will be heated in this manner. The floors to all the entrances, to the stairway, to the corridors and to the Building Society’s office are covered in “ruboleum,” worked out in a simple modern pattern in red, buff and black. All the offices in the building have been fitted with points for electric clocks. The frontage to Tay street is of a modem and dignified character reflecting the steady progress and standing of the society itself. Under the hanging veranda, the front is covered in “vitrolite,” with a light cream plaster finish above the veranda. The contractors were Messrs Keen and Daily and the architect was Mr Edward H. Smith.

ceiving their proportionate quota. For the first time debentures, which were in active request, were issued to assist the finances of the society. The committee says “It is hoped that in the course of another year the profits made by the society will be so large that they will induce a great increase of investing members who will supplant debenture holders.” Evidently at this time investing shareholders were preferred to debenture holders. 1874.—“ The demand for money still continues steady and the committee has issued debentures to a moderate extent in order to .keep pace with the times.” •

The interest paid on debenture for six or 12 months was eight per cent, and the interest charged to borrowers was 10 per cent. “The committee has had under consideration the desirability of procuring more adequate accommodation, and has unanimously agreed to recommend the shareholders to delegate to them the necessary power to purchase a piece of land.” This recommendation was adopted. 1875.—“ The committee has much satisfaction in stating that it has no claim whatever on the reserve fund, which this year, in accordance with the rule, falls to be divided among shareholders of not less than three years’ standing. The amount to the credit of the fund is £299 8/-. This will yield 6/6 to old shares and 2/10 to shares which have been held for three years, leaving a balance of £7 3/6 to be carried to reserve fund new account.” The committee “exercised the borrowing powers of the society by issuing debentures. The total amount raised in this way is now £4820. 1877.—“1t is with more than ordmary satisfaction that the committee submits the eighth annual report. The year opened with considerable anxiety be--1 cause of the first series of shares necessitating the payment of over £BOOO in cash and the closing of accounts representing about £lB,OOO. In order to provide the money required to pay the matured unrealized shares the committee determined to avail itself to the fullest extent of the borrowing powers, and this had the effect of crippling the. society’s operations for a period of five months, inasmuch as the consideration of loans had to be postponed during that time. Notwithstanding this fact, however, you will agree with us after perusing the balance-sheet that the past year may be considered one of the most successful in the society’s career.” 1879.—“ The fluctuations of the money market during the past year have been somewhat remarkable. At the earlier Eart of the financial year the directors ad considerable difficulty in securing

investments, and the rate of interest was consequently lowered. During the last few months, however, the demand for money has been beyond the society’s resources and it was found necessary to raise the rate of interest to 10 per cent.” 1880.—“ There has been a steady and increasing demand for advances throughout the year which the directors have endeavoured to meet to the best of their ability, but they, regret that they have been unable to keep pace with the requirements of the community. The mortgages held by the society represent £57,800. Notwithstanding the depression which the district has experienced in common with the other parts of the colony the repayments on advances have been kept up with commendable regularity. All properties advanced upon during the year have been subjected to the usual careful scrutiny, and the directors are thoroughly convinced that the society’s operations deserve the confidence of the shareholders.”