DEPOSIT, MORTGAGE & BUILDING ASSOCIATION.

Dominion, Volume 4, Issue 1123, 10 May 1911, Page 8

DEPOSIT, MORTGAGE & BUILDING ASSOCIATION.

PROPOSAL TO WIND TIP. There was a large attendance at the annual meeting of the We.-ington Deposit, Mortgage, and Buiidi—g Association, Ltd.. held in tho Chamber of Commerce. In moving the adoption of the report, tho chairman of directors (Mr. W. 11. P. Barber), said:— The result of the year s operations is satisfactory. A comparison of the figures for the vear ended March 31, 1910 and 1911, is as follows m £ £ ' Deposits 16,<10 17,304 Investments 45.333 45,472 Net profit 1.512 1,«68 Jt may be remembered that the association "during the time it has been in business has paid to shareholders dividends amounting in the aggregate to £8029, being nearly one-third of the paidup capital, in addition to winch a reserve fund of £ICOO liar? been created, and tho Glim of £325 carried forward last year. During the past year two extraordinary general meetings were held—the first in July last, called in response to a requisition received by the directors.,for the purpose of proposing amalgamation with another company; the second in March last, bv ; the. directors,..for the purpose of considering tho voluntary.winding-up of the association. The resolutions proposed at these meetings were not carried. A majority voted for voluntary liauida.tion, but tho number did not rccxh three-fourth?, as required by the ComDinio3 Jiot. Ine support given, however, showed that a large number of shareholders were in favour of winding-up. Your directors arc of tho same opinion, ani it now reset* with the members to make a recommendation accordingly, if they ,so desire. Shareholders should realise that an association such • as this hao to compete with the Advances to Workers Office, Public Trust. Advances t-o Settlers. and other institutions which are lending money at Q per cent., with exceptionally low legal costs. The result of competition of thin kind necessarily restricts our earning power, and it is difficult to find investments that" carry good securities at remunerative rates of interest. Those holding first-class securities naturally go where they can get. money, at tho lowest rate*. I say this—not that we have done badly in the past, not that there is any cause to be anxious as to the futiirc. We have not as single investment that causes us any alarm. Your directors make the recommendation .to shareholders simply from a business point of view. A large amount of money will be repaid to tbo association thia yc-ar. One sum alono amounts to over. £7COO, and as there appears to be littlo prospect of reinvesting the money in securities at remunerative rates, your directors consider the time opportune to wind up the association, believing they can return to shareholders tho full amount of capital paid by them. In response to a rucstion as to the amount falling due this year, the chai-r---•man stated tho amount was between £16,0C0 arid £20,C00. A shareholder; "And we can only get 45 per cent, for it?" The chairman: "Yes; if wo insist on first-class securities. It is useless denying that we are unable to a-st the r.i>o of interest that we wero five years ago. It cannot bo done. . One Mortage ui £7000, falling duo this year, was brineins in 6 per cent. The mortgagees have given notice that they can get the mchev at « lower rate of interest, and wo have not a prospect of investing it at the same rate of interest that we are getting now " The motion to adopt the report and bal-ance-sheet was carried unanimouslv. . Tho retiring directors, who offered themselves for re-election, were the Hon H Gilmer and Mr. J. Russell. Mr. F. J. Evans .was also a candidate. The votine was as follows :-J. ltussell, 36; F. Evana, 21; II Gilmer, 19. Tho first-named wcro declared elected.

Messrs. R. T. Badham and J. H. G. Eowley were ro-elected auditors, at a remuneration of £10 IDs. each Mr. Watson moved: "That'this meet'nrecommend that the chairman ca" a private raoet-ing of shareholders for tho Durpose of difcussing tho future of tho com§ib' y ' motion was seconded by Mr.

On tho suggestion ol tho chairman, it "as dccided to make the meeting an extraordinary one.