LOWER DIVIDEND THIS YEAR

Southland Times, Issue 25358, 9 May 1944, Page 3

LOWER DIVIDEND THIS YEAR

SOUTHLAND BUILDING SOCIETY A dividend at the rate of 4J per cent, compared with 5 per cent, last year, is recommended by the of the Southland Building Society in their annual report, which will be presented at the annual meeting on May 15. "At the beginning of July last s’ ea L the directors reduced the lending rate to 4,4 per cent. This, together. with the large amount paid by the society as its proportion of war damage insurance, has had an effect on tne dividend declared. The directors, therefore, have thought it wise to recommend a dividend of 4'A per cent.,” says the report. ‘‘The allocations are made as follows: —Rebate to borrowers, £32,152/3/8; profits paid to investing shareholders, £33,186/18/4; property maintenance reserve, £lOOO. "The sum of £l5OO has been written off premises account and £497/12/9 off office equipment." As this is a jubilee year, and the society has several of its staff overseas, the directors have decided to create a start superannuation fund, and they are using £2500 to open this account. The sum of £4OOO/4/2 has been placed to general re-, serve, leaving the fund now at £67,076. The balance carried forward is £3767/9/6. During the year £461/9/10 has been written off doubtful securities. The society has one leasehold property on hand at the present time.” , The claim that during its 75 years of operation the society has in no small measure assisted Southland tp be the prosperous province it is today is made in the report. The report states that it was the directors’ intention to celebrate the society’s ,75th anniversary in a suitable way, but because of the war and the difficulties arising frtom it, they had found it impracticable to do this, or even issue a souvenir booklet. SUCCESSFUL YEAR

"The year has been a most successful one, despite the Government’s limitations on building societies’ deposits,” the report states. "The directors are of the opinion, however, that the assistance given to the war effort by limiting the operations of building societies is not commensurate with the inconvenience brought about by restricting the society's normal activities. We hope that the promised consideration -by Cabinet of the raising of deposit limits will allow building societies to assist in overcoming the present acute shortage of houses." The gradual growth of the society’s lending :sower since its incorporation is referred to :in the report. It states that in the first 25 yearjs period £309,189 was advanced, in the second 25 years £1,090,350 and in the last 25 years (1919-1944), £8,739,330. During last year the sum of £534,200 was advanced. A considerable portion of this sum was for the erection of new dwellings, and it was pleasing to note that permits were now being issued for an increasing number of dwellings. A total of 201,286 shares are now held by shareholders, which is an increase of 1704 on the previous year's figures, the report states. The directors are restricting the issue of investing shares. The sum of £2,213,945, is now held on deposit, which includes £198,909 invested in the society’s savings bank department.