CLUTHA, TAPANUI, and MATAURA BUILDING SOCIETY.

Clutha Leader, Volume IV, Issue 166, 7 September 1877, Page 5

CLUTHA, TAPANUI, and MATAURA BUILDING SOCIETY.

tO THK EtilTOß.

Sift,— 'ln your report of the annual meeting of the above Society, t observe it stated, by "way of congratulation, that the handsome sum of £843 of accrued profits has been added to the shares since the Seciety started, two years ago. As this appears an extraordinary profit, I have had the curiosity to examine into the matter-. The explanation of these profits is, I am sorry to say, most unsatisfactory-. The amount received lor forfeitures through shareholders withdrawing, has been £196 13s 9d ; fines, £101 13s ) balance of entry money of 3s. per share on 1196 shares, held by upwards of 120 members, £102-— total, £400 ?s 9d. This reduces by nearly a half the profits of the Society,, the shares in which have now dwindled down .to "545> held among not more than 50 members. As the other local Society issued shares at the same time, it may be interesting to see how it stands. The number of new shares issued by the old Society in June, i 87b* . was 1101, held by 137 members. At this date it has still 950 6f these new shares held by 113 members, -t shall now compare the items in this Society's accounts with the above ': -—Balance of entry money after dedufttmg preliminary expenses, £11 ; forfeitures in shares withdrawn, £139 '3s Id ; fines, £50 3s Sd--total, £'200 6s 9d. This is a considerable difference-. The first-mentioned Society lias shrunk into less than half of its Original proportion) whereas the latter shows a very insignificant reduction in its new shares. The book-keeping and Financial Statement of the Glutha, Tapamti Society appjars of rather an incomprehensible nature, and I have to call attention to the fact that the fines last year credited in Profit and Loss Account are still unpaid. The forfeitures, £131 9s 9d, are entered as received, and then debited as outstanding, nevertheless are credited in the Profit and Loss AccoUnt. It is altogether a most extraor^ dinary balance sheet. Are the Auditors of this Society men who understand their work ? I much doubt it, and the so6ner the Committee have the books placed in hands of competent auditors, the better for the Society-, and the sooner will public confidence be restored in the management. Although the business of this Society is now so much diminished, I do not observe any decrease in the workinglexpenses, but probably next year will show an improvement in that respect. —I am, etc., 1 M^TONi,