BUILDING SOCIETY

Taranaki Daily News, 9 November 1935, Page 22 (Supplement)

BUILDING SOCIETY

NEW PLYMOUTH ANNUAL MEETING.

GROUP THREE TO BE WOUND UP.

There was an attendance of about 25 members at the annual meeting of the Equitable Building. Society of New Plymouth. Mr. R. J. Deare, chairman of directors, presided. The annual report showed that the total amount lent on mortgage to the end of the last financial year in respect of Groups 3 and 4 was £51,229 7s lOd, of which £35,163 10s lid had been repaid, leaving a balance of £16,065 16s lid. Repayments of loans with a few exceptions had been made satisfactorily, while as regards security the directors were satisfied that an ample margin existed in all cases except one in Group 4. The undivided profits in group three stood at £3141 17s lid. The balance of loans on mortgage anl the value of one property taken over by the society amounted to £8713 15s 9d. The property referred to comprised a good section and dwelling that should return the full amount outstanding against it. The balance due to shareholders for subscriptions amounted to £t>l37 16s. The number of shares still operating was 171, of which notice to withdraw had been given in respect of 22. Loans were being paid on 72 and 77 were entitled to participate in ballots and sales. The undivided profits in the grouo amounted to £1323 Os 3d. Balances outstanding on loans and securities amounted to £7352 Is 2d, vhile the amount due to members for subscriptions was £6208 12s 2d. The number of shares operating in the group was 190, of which loans were being redeemed on 49, notice to withdraw had been given on 38, and 103 were entitled to participate in ballots and sales. The property taken over by the society some time ago might show a loss upon realisation as values had declined appreciably since the loan was granted. In moving the adoption of the report and balance-sheet, the chairman referred to the evident activity in the building trade of the town and the district. All would agree that no trade had had a greater setback during the years of depression than building and allied trades. He expressed the hope that the present activity was an indication that better times generally were ahead. Reviewing the activities of the year, the chairman explained the position of two properties taken over several years ago after it had been found that the borrowers concerned were making no effort to fulfill their obligations. Values slumped considerably since the loans were granted and the directors withheld disposal in the hopes that values would again rise.

The group three property should cause no concern as its present-day value

should be adequate. The group four property would probably show a loss, but it was not possible to say how much.That would constitute the first loss on any property handled by the society since its inception, and considering the difficult times that had been encountered and the fact .that almost 100 per cent, of the borrowers had been wage-earners, he considered it was a remarkable record and a tribute to th foresight and ability of tfiose who had managed its affairs.

A careful examination of aL other outstanding loans reve.Jed that the securities held should be of sufficient value to meet the liabilities in full. Some borrowers had to be assisted by reduced fortnightly redemptions, the directors having given a sympathetic hearing to all genuine appeals for assistance. As long as the borrowing member could show he was doing his utmost to fulfill his obligations, he could always be assured of advice and co-operation. The retiring directors, Messrs. P. Hopkins, F. S. Johns, E. B. Davies and W. H. Broome were re-elected unopposed. Mr. C. T. Mills was re-elected auditor. The'directors’ honoraria were fixed at the same amount as last £3o per group. , • / . f At a special meeting of members of group 3 held subsequently it was decided to take steps to wind up the group. At a subsequent meeting of directors Mr. P. Hopkins was elected chairman and Mr. F. S. Johns vice-chairman.