PROFIT £2590.

Press, Volume LXIII, Issue 19143, 28 October 1927, Page 10

PROFIT £2590.

CHRISTCHURCH BUILDING SOCIETY. SHAREHOLDERS' ANNUAL .MEETING. The fifty-fourth, annual meeting ol the shareholders in the Christchurch Building and Land Society (Permanent) was held yesterday afternoon, Mr J. H. Seager presiding. The annual report- stated ihat tho improved business of the previous vear and tho stronger financial position of the Society had been fully maintained and the proiits for the year proportionately greater. A further issue had been made to members of 1300 A shares, increasing the capital Itv £l3 000. These shares had all been taken up, the members having until Januarv 31st "est to complete payment therefor. Tho premium received ot' this issue had been, in accordance with custom, placed to credit of reserve fund. , The net profits lor the year (excluding premium on share issue), after providing for payment of interest to A and B shareholders at the rate of S per cent, per annum, and to D shareholders at the usual rate, amounted to £2590 3s 3d, as against £1544 9s 3d last, year. The Board had decided under Rule 52 to allocate this sum as follows: Writing off balance of property account, £1500; carry to reserve fund (in addition to £I3OO referred to above), £700; carry forward to further credit of profit and loss account, £390 3s 3d—total, £2590 3s 3d. The whole of the property account having been written off, the balancesheet showed, for the first time, the true financial position of the Society, the property account appearing as an asset representing its value, the amount being included on the other side as part of the reserve fund which now stood at £17.000 in addition to profit and loss credit balance of £1137 19s lOd. "After perusal by you of the report and balance-sheet of this Society for the vear ending September 30th last, it will be readily understood that the Board has much pleasure in meeting you to-day, and in rendering an account of its year's stewardship," said the chairman" in moving the adoption of the report and balance-sheet. "The year has been one of great activity and advancement. The workings and result of the previous year with its forward movement, and promise of higher expectations have been fullv realised—in fact, judgmg from the "two last balance-sheets, the Society seems to have risen from a lethargic state, to a condition of vitality and vigour. This is shown in measure by the large volume of receipts and expenditure passing through the Society's bands for the year, amounting to over half a million pounds sterling. It is further shown by the great increase of about £40,000 in the net amount 01 mortgages for the year. This is an impressive expansion, and what must be regarded <is most satisfactory in connexion with it, is that the increased business has been in no way forced (rather has it been checked), but has been gradual and natural. So careful has the Board been in its selection of securities, that I am able to say that every account on the boofe is a good one.

"The Board having confidence thai this increase of business will bo maintained, and so as to strengthen the Society during the year, made a, further issue of paid-up fixed capital shares to present shareholders of £13,000. "The only other item in the statement of accounts which may need explanation: is the increase of the ite pnid to the auditors. Heretofore the nooks and accounts have been sabjoct to a monthly audit by members 6x the Board, but now that the transactions of the Society have so greatly increased, the Board considered that it would give greater satisfaction to the shareholders if the auditors appointed by them conducted a continuous audit. The Board has therefore placed the auditing in the hands of the professional auditors appointed by the shareholders, and they make a monthly audit in addition to the usual annual o.viilit.

"As set out in the report the Board hns under power given to it by Rule 52, decided to pay and reserve respectively to shareholders, interest and profit for the year equalling 8 pel cent., and to carry to reserve fund out of the year's profits a sum of £2OOO. (This is in addition to £ISOO written off property account) and to carry forward the balance to credit of profit and loss of £390 3s 3d.

"Before proceeding formally to move the adoption of report and balancesheet, I take this opportunity of placing before all interested or who should bo interested, the valuable service building societies offer to investors of small means, and also to borrowers. "The Legislature of New Zealand has always recognised this, and the administration of building societies is subject to a measure of benevolent control exercised by the Registrar of Building Societies and also through the Government Statistician. The Legislature too, grants certain privileges and benefits to these societies in consideration of the good work done by them in helping small investors, and particularlv in assisting, so very materially, very many to become houseowners instead of house-renters. "Few institutions can offer a safer or more profitable medium of investment to small capitalists either as shareholders'or depositors. It is therefore rather surprising that the public generally do not avail themselves of the benefits of building societies to a greater extent. "Much the 6atne indifference was experienced in England until the conclusion of the Great War. Since then building societies have made great advancement, some of the societies in the large centres numbering their members by the thousand, and their assets by millions. "The present Prime Minister of England in a letter addressed to the National Association of Building Societies, and reproduced extensively in the Press, has drawn attention to the strides made by building societies during the past few years. Inter alia ho says: 'They afford abundant evidence of the growing popularity of the Building Society as a medium for the investment of savings, and of the success which has been achieved in the encouragement of thrift and independence, and indicates also a steady increase in the number of those who are becoming owners of their own houses, a hopeful sign of National stability.' "The Rt. Hon. J. Ramsay Mac Donald. M.P.. has also said: 'No movement of co-operative self-help is more worthy of support than that of the building society. A house should be an expression of a personality and whensoever it is possible it ought to be owned and not merely rented. Would that every workman could own his own home just as he owns his own clothes. "100,000 houses are required every year, and the contribution of building societies to this total is probably unequalled by any other single agency in the country.

" 'Building society figures are colossal but behind them is an equally striking sain in human liberty and" happiness.'

"To illustrate the manner in which building societies are estimated in England ; under the Housing Act passed in 1P23. local authorities ar§ empowered to give guarantees to enable building societies to lend ur» to 90 per cent, of the valuation, the authority to be responsible in ease of h>sa for the dif-

i'erence between Lbe nominal amount which the Society would ieud and the 90 per cent. "Under this plan the local authorities are enabled to take advantage of the machinery which already exists and are relieved from the expenses incurred in borrowing and lending. "Probably this is a better scheme and one likely to result in less loss than that adopted by our own local authority." Messrs \V. S. Richards and H. L. Bowker, who were, the retiring directors by rotation, were re-elected to the directorate. Messrs J. IT. Stringer and W. S. Mac Gibbon were elected auditors to the Society. (Extended Report by Arrangement.)