LAND ON DEFERRED PAYMENTS SOCIETY.

Wellington Independent, Volume XVI, Issue 1702, 21 February 1862, Page 3

LAND ON DEFERRED PAYMENTS SOCIETY.

The third annual meeting of the above Society took place, according to advertisement, in; the Hall of the Mechanics' Institute, on Thursday evening last, the 13th February. There was a considerable number of members present. Owing to the indisposition of Mr. L. Levy, the Chairman of the Society, G, Hunter, Esq., one of the Trustees, was called to the Chair. Mr. Hunter opened the business of the evening by reading the advertisement calling the meetting, the occasion of which was to receive the Report of the Committee, annual statement of accounts, election of committee, auditors, and other business. Mr. Hunter then called upon , Mr. Allen the Manager, to read the Report, which would be afterwards put to the meeting for adoption.. Mr. Aixen accordingly rose and read the following Report of the Committee and balance sheet : — "The period having arrived for laying before the Members the Annual Balance Sheet of Receipts and Expenditure, the Committee, in acordance with previous custom, take the opportunity of presenting a complete detailed statement of the Society's operations during the past three years. The total number of Shares at the close of the past year amounted to 12355, held by 485 Members. During the three years of the Society's existence the following sums have been received —

For Subscriptions 10,816 5 3 „ Entrance Fees 19 7 6 „ Interest on advances.... 2,254 4 7 „ Balance of Management and Contingent Fund 523 13 1 „ Deposits 4,023 3 7 £17,636 14 0 The Disbursements during the same peiiod have been — For advances ........ 17,070 6 0 „ do. in suspense 325 0 0 „ Interest on Deposits 109 16 0 „ do. tothoU.B. of Australia..,. 15 O 2 „ Insurance Premiums in advance 42 0 3 „ Balance at Banker's 74 II 7 £17,636 H 0 The Assets consist of — Security for advances 17,070 6 0 Do. iv suspense 325 0 O Subscriptions in avrear 3Q9 4. 9 Interest do 40 17 8 Premiums of Interest due 42 O 3 Fines &c.. Management and Contingent Fund 103 10 10 Balance at Banker's „.,. 74 1L 7 mv r- ..,. • £17,965 11 1 1 he Liabilities are— 1235 £ Shares® £d each 11,119 10 0 Subscriptions <fc interest paid in advance.. 12 13 4 Deposits and interest duo 4,149 19 5 Management and Contingent Fund .. 646 11 5 Balance profit 2,036 16 11 £17,963 11 1

The profit, as shown iv the above balance (£2,036: 16: 11), when divided by the number of shares (1235J), will give nearly £l ; 13 ; 0 per share.

The following analysis of the securities held by the Society will " not be considered uninteresting." They consist of 7295 acres of Country Land ; 12$ Town Acres, and frontage to different Town properties amounting, in the aggregate, t<> 3128 feet; the amount of Insurance on the various Buildings exceeds £12,000. The number of borrowers is 143, or nearly one third o( the whole number of Members. The average amount of advances is not quite %\ shares to each borrower, The Management and Contingent Fund has been exceedingly productive. By its means all the working expenses have been met, without trenching upon the ordiuary funds of the Society, and leaving a balance to credit of £646 : 11 : 5, equal to nearly 10s. 6d. per share, making together a profit of nearly £2:3:6 per share, the gross profits amounting to £2,683 :8: 4. This is equal to upwards of 15 per cent, per annum simple interest on the amount paid on each share.

The profits of the past year are double or equal to those of the fitst two years. By the table of calculations made by the Manager, and upon which the operations of the Society are based, the working of 12355. Shares would only prodnce a capital sufficient to make advances to the extent of 2571 Shares, of £12,875; whereas the preseut statement shows advances to the extent of 341| Shares, or an increase of 84 Shares advauce. This is accounted for by the profitable action of the Deposit Account, which has been increased from £1,111 : 17: 6on the Ist January. 1861, to £4,023: 3 : 7 on the Ist January, 1862, and the Committee with great pleasure point to this circumstance as showing the growing confidence of the public in the Society. The facilities offered to Depositors the Committee believe, have exercised a most beneficial influence; a considerable number of persons particulaily those holding small amounts have availed tuemselvee of the comparatively high rate of interest paid by the Society. At the last Annual Meeting it was determined that the Entrance Fee on all new Shares should be raised to one guinea per Share. The Committee havo latterly abstained from creating any new Shares, and they recommend that no new Shares be created, — Section 3, ltule 10, providing for the need of any Member desirous of realising more Shares than he is the holder of.

Mr. William Allen, the originator and first Manager of the Society, having returned from a visit to England, was re-elected Manager on the 14th Februrary last; and the Committee think it due to that gentleman to

express their entire satisfaction with the man* ncr in which the business of the Society has been conducted, and to place oa record their opinion that the successful position it now occupies may, in a great meaaure, be attributed to the zeil and energy displayed in its management

In conclusion, the Committee beg to express their full confidence and trust in the working of, the Society, and congratulate the Members upon the agreeable prospect of its accomplishing all its ends at a much earlier period than could have been calculated upon, and this too without pressing with undue weight upon any portion of its Members. L. Levy, Chairman. Wellington, 13th Februaiy. 1862." BALANCE SHEET FROM THE 12th JANUARY 1861, TO THE Ist JANUARY, 1862. RECEIPTS. 1861. January, 12 — To Balance at Union 8ank ........ 184 8 9 1862. January 1 — ■ To Subscriptions 3700 3 11 Less, amount of forfeited Shares transferred to Forfeited account . . 18 5 0 Error in Stewards account.. 0 3 2 18 8 2 3681 15 9 „ Interest on advances .. 1848 17 7 „ Insurance Premiums ... 60 13 3 ,, Deposits 3885 16 1 „ Special Deposits 180 0 0 4065 16 1 Repayment of advances... 554 14 0 Management & Contingent. Fund. To Entrance Fees 1 15 O „ Subscription Fines ......143 2 10 „ Interest Fines .... 34 1 3 „ Insurance Premium Fines 511 3 „ Transfer Fees 27 J8 9 „ Commission on advances 98 2 6 „ Rules and New Pass Books 14 0 „ Amount transferred from Subscriptions to forfeit Account 18 6 0 „ Amount Error Transferred 03 3 18 8 2 - — u— < 330 3 9 £10,226 3 2 To Balance brought down £74 11 7 ExPE*r>ITUB*3. 1869. Or. January 1 — By advances 8622 10 0 „ Repayment of Deposits 828 15 0 Do. Special do. 388 5 0 — — - 1165 0 0 „ Interest on Deposits 83 3 5 „ Do. Union Bank 1.0 13 7 98 16 0 „ Insurance Premiums 6ft 4 9 Management & Contingent Fund. By Salary, Rent of Office, &c. 126 16 0 „ Printing, Advertising, «fc Stationary, viz. ! "Advertiser" 13 13 0 "Independent" 5 2 0 "Spectator".. 19 9 10 38 4 10 i — — . .. 165 0 10 By Balance at Union Bank 74 11 7 £10,326 3 2 | GENERAL ACCOUNT. i Liabilities. To 1235* Shares at £9 11,119 10 0 \ „ Deposit Account 3266 15 7 , „ Special do. do 758 8 0 „ Interest on Deposits . . . .126 15 10 ' — 4149 19 5 „ Substriptions in advance 6 0 0 „ Interest do. 6 13 4 -... 1213 4 I To Balance 2683 8 4 £17,965 11 1 Assets. i By Amount advanced ... 17,070 6 0 " do. do. in suspense 325 0 0 — 17,395 6 0 •' Subscriptions in arrear 309 4 9 „ Interest on Advances do 40 17 8 „ lusurance Premiums do. 43 0 3 392 3 8 „ Management and Contingent Fund,— Subscription Fines in arraer 89 3 11 Interest do. do 77 11 Insur. Prem. do. d 0... 0 9 0 Transfer Fees d 0... 30 0 Commission on adrans. do. 3 10 0 103 10 30 By Balance at Union Bank 74 11 7 £17,965 ITI By Balance brought down £2683 8 4 Audited and found correct this 27 th day of Jan vary 1862. Edwin Robinson, ) . „, D. Ramie, {Auditors. William Allen, ManagerAfter Mr. Allen had concluded reading the Report, he entered into a minute statement of the working of the Society, present and pros pective, convincing all present of the soundness of the system upon which the business of the Society was conducted. Mr. Allen said that with the consent of the meeting, he would put before them a few facts and figures, supple* mentary, as it were, to the report, which it was desirable always to make as concise as possible. The gross sums received by the society, were as follows, viz. : —

In 1859 £ 5,176 11 7 In 1860 5,791 14 10 In 1861 10,041 19 5 Gross total received ...£21,010 5 10

Deposits received in 1859—24 ...£ 737 0 0 Do. 1860—26... 991 18 6 Do- 1861—62 ... 4,065 10 1 Total; £5,794 8 7

TJhe view taken in the Report that the society is largely indebted for its suocess to the operation of the Deposit account is undoubtedly cor rect; the large amount of deposits, together with the advantage of an occasional overdraft from the Union Bank, having enabled the society not only to use up every shilling of its capital, but to largely anticipate its income. This is shown by the advances to Borrowers in excess 84 shares, or £4,200 more than the or* dinary receipts would have afforded. The amount of interest paid by the society has been exceedingly small, via.: — Interest paid on Deposits £109 16 0 do. due to Ist Jan. 1863 136 15 10 do. paid Union Bank 15 0 2

£251 12 0 With respect to one item in the assets, viz., "Country Land," be begged to inform the meeting that all the advances made had been on ten shilling land. Another matter which it was only proper to explain, namely, the "Suspenoe account," consisted of properties

forfeited tot non-payment, and which it was considered unadvisable to force the sale of these would be held until a favourable opportunity occurred, and as, with' the exception of a Town Acre, they consisted of Country Land, I there was doubt of the society's claims being f fully met. The last pararagph of t^Report sta- i ting that the success was not the result of pressing unequally upon any portion of the members is shown by reference to the remarks on the Deposit Account. As shewing the working of the Society, he might by way of illustration mention that Simple interest at 10 per cent, per annum on ss. per month paid monthly, would in three yearn amount to , jgi 7 9 Compound do. do. 210 7| The present value of the shares is 3 3 6 In conclusion he would add, that it would no doubt be satisfactory to the meeting to learn that the income of the Society continues stea- j dily to increase, the Receipts during The month of January in this year, being £1,734 19 2 The month of February in this year, to date 934 0 3

_, , Total £2,668 19 5 Of which amount £1,445 12s. is Deposits. Mr. Hunter said, that in accordance with the rule generally followed on such occasions, the duty devolved upon him of moving the adoption of the Report. It was now in the hands of the Members present, and either the Manager or himself would be happy to afford any explanation, or to answer any question or questions that Members might like to put. He thought the Report clear and explicit, and that the Committee were justified in congratulating the Members ou the position now occupied by the Society. Mr. Deansfield, in a few words, complimented the Managers of the Society, and seconded the adoption of the Report. The Report was then put to the meeting, and carried. -

Moved by Mr. Hobneb,^ seconded by Mr. BUBGESS —

That Mes»rs. Yates, Watkiu, Levy, and Stokes, the retiring members of Committee, be re-elected. The resolution was then put and carried. Mr. Hunteb said that the society were very much indebted to the Committee for their exertions, and he would particularly mention the Chairman of the Society, Mr. Levy, who was absent from illnes3, and to whom, next to Mr. Allen, he might say the Society owed a large portion of its success. Mr. Hunter, in alluding to what Mr. Allen, the Manager, had said respecting the properties held "in. suspense," fully concurred in the view the Committee had takeu to hold them until a favourable opportunity ; and he believed that no loss would be sustained; they had done so already in two cases, and covered the Society's demands by the sale of these proDerties. Moved by Mr. Wyatt, seconded by Mr. GILLESPIB—

That Messrs. D. Raine, E. Robinson, and F. Sidey, be appointed Auditors for the ensuing year. The resolution was then put and carried. Moved by Dr. Johnston, seconded by Mr. Jones —

That the thanks of this meeting be given to the Trustees, Committee, Auditors, and Officers of this Society, for their services during the past year. The resolution was then put and carried. Mr. Hunter thanked the Meeting for the resolution just passed, and said this finished the formal buisness; but before breaking up, he would take the opportunity of throwing out a suggestion with regard to the establishment of a new Society on a more extended plan than the previous one. The present is the third society established in this place, and it had reached that stage that though beneficial to the members was not so to new comers. At the commencement of these societies the money is readily taken up, but towards the end parties do not take it up so readily, as they do not think it worth their while to borrow for only a year or two, and if it had not been for the new societies the old one 3 would not hare been able to 'clear up their accounts so quickly. No. 1 Building Society received great $elp at its close from No, 2, and in its turn had received help from this society, and it was thought that a new society would be rery beneficial in working out the present one. It was now believed by many that something more permanent was wanted, so as to do away with the great drawback experienced by the compulsory closing of these societies. They have been very beneficial to this place, enabling many to secure freeholds who otherwise would not have been able to do so. He thought this a good opportunity of drawing attention to the subject, and hoped it would be followed up. Mr. Allen wished to direct attention to the way in which persons who desire to realise more shares than they held at present, may do so. The society advances what is required provided the security be sufficient, and fixes the amount to be repaid by instalments, at convenient periods for the borrowers. These societies were a great advantage to persons wishing to borrow, for they lend their money at the ordinary rate of interest, 10 per cent., and it can be paid back in binall sums at a time, as small a sum aii £2 has been taken ; he might say there was no place in New Zealand where mortgages could be paid off so easily. With raspect to the creation of new shares, the meeting would see that in justice to the present members this could uot be done unless by fixing as an equivalent a very heavy entrance fee, something like £3 per share, which would bring the price^>f each uew share up to £12, and would really* act as a prohibition. The rule alluded to in the report was framed to meet this difficulty, the experience gained in the working of the Building Societies having suggested the necessity. Another remark be would make ; many persons had not applied to the Society in the belief that it was restricted to the advance of one shire or £50 to each person ; this arose from the preference being always gireu to those requiring this small amount in the commencement, but now, as the meeting had been already shown, the income was getting very large," and there was nothing to prevent the Society lending thousands, provided the security be sufficient. During his visit to England he had enquired into the working of similar societies, and he had shewn the rulea and calculations on which this society was established to an eminent actuary in London, who pronounced them quite correct. From enquiries made in Sydney and Melbourne concerning similar institutions, he had no doubt a Society on a more extended basis might be successfully established. Mr. DfUNSFiELD moved a vote ol thanks to the Chairuaau, which was cordially given ; after which the meeting broke up.— Spectator.