ANNUAL MEETING

Dominion, Volume 11, Issue 190, 1 May 1918, Page 8

ANNUAL MEETING

DEPOSIT. MORTGAGE, AND BUILD- ; ' ING, ASSOCIATION. ' The annual meeting d£ the Wellington Deposit, Mortgage, and Building Association, Ltd., was held in the Chamber ot; Commerce' last night. Mr. W. H. P. .Barber, chairman of directors, was in the chair, and there was a small attendance of members. Tho directors' report 6tated that the net profit on the year's business had been ■£1G35 13s. 2d., v/hich, added to £331 11s. 7d., brought forward from last year, made a. total of £1%7 Is. ikl. Tho directors recommended that this sum should ho applied n.s followe:—The payment of a dividend for the year at the rate of 5 per cont. per annum, which will absorb .£1250; a sum of #100 to bo placed to the reserve account; and the balance, .£317 in. 9d., lo bo carried forward to next year's account.

The chairman, in moving the adoption of the annual report and balance-sheet, said the directors had pleasure in presenting a balance-sheet whicli showed the year's transactions to bo very similar 'to the immediately preceding one. The iftiture of tho company's business does not readily lend itself to expansion in'these days, when tho price cf building materials was constantly on tho upward grade, and it was increasingly difficult to obtain supplies, while st the same .time labour was u diminishing quantity, resulting in the -ost of building being enormously advanced. There was therefore need for caution in making advances, on securities which tonsisted of buildings erected at the present high cost, it b'Sing essential to allow for lower values when times became norninl. The directors took this opportunity of pointing out that the unusual financial circumstances of the paat few years have prevented the company making tho progress which was reasonably anticipated before these circumstances arose. They would also point out that although the shares wero quoted nt n discount on the market, they wero really, owing to tho provision made by wnc of. reserve, worth over par. The formation of the reserve fund had been a wise precaution. Notwithstanding the unusual times, it must be conceded that dividends of 5 per cent., freo of income tax, rero fair returns on capital which was "undoubtedly secure. In view of the call for money for tho Government War Loans, the association might be considered foriunate in that its deposits showed a reduction of only on last year's figures. Jfortgngoa showed an incrc-nso of JffttM, advantage having been taken of some good r ecunties which offered. Freehold property was reduced by .C 532 from eal"s. the value of the small amount rpmainimp in the balr.ticcolieet t>ein<r undoubted. Durin<j tho year the sum of .£IOOO had been invested in tho New Zealand Government War Bonds. , , , Tho report and balance-sheet were adopted without discussion, and the proVO^als , of the directors were approved The retiring directors, Messrs. \\. Ji. P. Barber and W. Watson., wero re-eiect-e<MeSSw. .T. G. H. Rowley and W. Beauchamp Platte were re-elected auditors.