DOMINION BUILDING SOCIETY

Evening Star, Issue 19802, 28 February 1928, Page 13

DOMINION BUILDING SOCIETY

THE ANNUAL MEETING A GOOD REOODD Mr J. H. F. Hamel presided at the second annual meeting of the Dominion Building Society last evening. The directors, in their report, stated that two groups (Nos. 26 and 27) have now been successfully established, and the third group (No, 28) is in process of formation. The total ballots for the two years in the two groups amount to £34,700, in which thirty-seven members have participated. First mortgage loans on the repayment principle have been negotiated for £20,980 on behalf of forty-one members. This makes total loans granted by the society during the two years £35,680, by which means seventy-eight members have been enabled to finance the purchase of their homes or business premises on a system of easy repayments. From the balance-sheet it will bo seen that the “ foundation charges ” have been written down by 10 per cent., and after making provision for interest and bonus to shareholders the directors have passed to reserve the sum of £179 Is Bd. This now makes the reserve account £221 0s 9d.

The Chairman, in moving the adoption of the report and balance-sheet, said that the directors were exceedingly pleased at the wonderful success of the society for the first two years of its existence. There could be little doubt that the advantages offered by the Dominion Building Society were being fully appreciated. The society’s record was an outstanding example of what could be accomplished by a progressive method of finance, and the fact that they were able to ballot in all £12,000 at one time proved that in the near future the society’s business would assume fairly large dimensions. Altogether seventy-eight members had, up to the end of 1927, been enabled to finance their homes, and, in some cases, business premises involving loans of £55,680. Building societies in the Homeland were a tremendous factor, and they were fast establishing a hold in the dominions overseas. Their own country was’ not slow to appreciate the wisdom of the sound economic principle of people acquiring their own homes. He could claim that the Dominion Building Society afforded to the young man who had vision a great opportunity to lay up a store and facilitate his purchase of n property. Members would appreciate the directors’ efforts to concentrate on bouse property, as, while pastoral lands had their undoubted place and value in the commercial world, there were institutions, such as the Government, which were better able to deal with that class of security. It was extremely gratifying that, after providing interest at 6 per cent, on subscriptions in group 26 and 5 per cent, in group 27, also providing a bonus of Is per share on subscribing and ballot loan shares, and 6d per share on first mortgage loan shares, it had been possible to write clown the foundation charges by 10 per cent, and carry a substantial amount to reserve account, making it now £221 0s 9d—a very satisfactory position he was sure they would nil admit. He bad bad the honor of being their chairman for the past two years, and he thanked his fellow-direc-tors for the able assistance they had given him in bearing the strain of the inaugural period of the society. The speaker referred to the capable work carried out by the secretary (Mr D. Leslie), and said that he intended to retire as chairman. Ho trusted that his successor -would find members continuing to be loyal to the society. (Applause.)

Mr S. B. Macdonald seconded the motion. Ho said that the society had been in existence for only two years, and he was sure they were all well satisfied with the balance-sheet w?iieh had been submitted to them. The society’s operations wore not confined to Dunedin alone, but they had also members in Oamani, Gore, and Invercargill. One feature in their society was that it paid interest on the subscriptions of members, and, apart from the fact that it provided homes for the people, it was a, good investment from a money-saving point of view.

M.r <T. Y. Love said that tho society worked on absolutely mutual lines. Ho bad been in Adelaide recently, and had taken the opportunity of investigating the working of the building society there. Their society was based on the Adelaide Society, which had been in existence for twenty-nine years, and had advanced over £1,500,000. The amount balloted in Adelaide every month amounted to something like £70.000.

Mr T. F. Hussey said that the society was writing of? yearly its foundation charges. They had to pay a royalty to South Australia for their rules, but it would bo a matter of only a few years before all these charges were written nff. Their overhead charges, salaries, directors’ foes, etc., totalled only £5lB. There were not many swivel armchairs in that lot Tho sum did not come to J per cent, of the total amount of their business. The society did not need to worry about first mortgages—these belonged to the other fellow. Most of the society’s money was locked up in second mortgages, and he could assure them that the directors looked very carefully into the security offered. The society had a large number of accountants amongst its shareholders, and he asked them if they could wish for a bettor recommendation. The motion was carried unanimously. OFFICE-BEARERS. Messrs J H F. Hamel and J. Y. Love, tho retiring directors, were reelected unopposed. Mr G. H. C. Smith was re-elected auditor. As Mr Hamel declined to accept the position of chairman, being, as he said, strongly of opinion that all such offices should be rolling offices, Mr Macdonald was appointed-to the position. A hearty vote of thanks was passed to Mr Hamel for his work since the start of the society. £12,000 BALLOTED FOR. Tho ballot in group No. 26 resulted as follows Cluster 213, £200; 197, £800; 202, £500; 24. £100; 37, £1,000; 2. £1,000; 41. £500; 146, £SO; 134, £400; 137. £200; 154, £1,000; 111, £100; 17, £200; 249, £I,OOO (£7OO in excess of the amount available, this sum being ear-marked for the next ballot). Group No 27:—Cluster 161, £500; 156, £500: 67, £1,100; 86, £300; 101, £1,000; 30. £7OO (£4OO was ear-marked for the next ballot). Group 28:—Cluster 9, £I,OOO.