LAND, BUILDING AND INVESTING SOCIETY.

Gisborne Times, Volume XXV, Issue 2181, 10 September 1907, Page 2

LAND, BUILDING AND INVESTING SOCIETY.

A PROSPEROUS YEA it. NO LOSS MS: ARREARS NIL. l’Oi-1' LA.lt iSJNG TUE SOCIETY.

The adjourned annual mooting of the Gisboiji(. Permanent Land, iiiiiidi'ug, and Mutual Investment Society was held last evening at tho office ol the secretary (Mr. H. At. Porter). Air. J. Toivuloy, chairman of directors, presided. The directors’ report for 1 lie year ended Juno 30tii staled : —“Jn placing the thirty-third annual statement of accounts bet'oro Lho shareholders, tlie directors are assured that the result of same will be found .satisfactory. The investments on mortgage are £1662 above tho previous year, and are all of the very best class of security, and with substantial margins. It is a matter of congratulation that for tho past 15 years it has not been necessary to take any harsh steps to secure our investments; neither has any loss been made. The arrears in the society’s books are nil. The loans on shares are some £BOO less than last year, which may be taken as evidence of prosperity amongst our shareholders. A number of investing shares have .matured during tho period and have been paid out, lessoning tho liability under this bead. Permanent .shares have been reduced by £SOO, which is not a matter of regret. The profits earned have been equal to 01 nor cent, net, enabling a distribution on a basis of 0 per cent., which is our lending rate, tho balance being carried forward; this is after paving tho working expenses of the society. The profits distributed in 1905 wore 5 per cent., and 51 per cent, in 1900.” Tho balance-sheet- showed : Liabilities.—Fixed deposits, £4875: accrued interest on same, £O2 8s 9d : permanent shares, £1300; profits allotted to same. £7B; investing shares, £8559 13s lOil; accrued bank interest, £8 14s; balaneo of profit and loss account, £44 4s sd. Total, £14,928 Is. Assets. —By loans on mortgage. £10.570 0s lOd; loans on shares. £4089 15s Od; furniture, £10; balance in bank, £253 lOs 8d ; less outstanding cheque, £1 6s. Total, £14,928 Is. The Chairman, in moving the adoption of the report and balance-sheet, emphasised that there were no losses on outstanding accounts, everything being paid up to date. Altogether the society was in a thoroughly sound condition. Tho main drawback, in bis opinion, was the limited amount of capital, and ho advocated that a systematic effort be made to induce more shareholders to join. _ There was no doubt that tho formation of a now society in Gisborne had a tendency to affect tb«r> membership, ami the operations of the Government Advances to Set-tiers office to some, extent took over business formerly confined to building societies. The directors were anxious- to do more business, but without "the influx of now shareholders had not ho mean:, to extend operations. There was a substantial sum of £4875 borrowed on fixed deposit, and the margin obtained by lending it out at tho usual rates of interest accounted mainly for the 0 nor cent, "distribution. The society, despite limited capital, was a very sound concern, offering a safe investment, and he trusted some scheme would be devised to add to the membership. Mr. Whitby seconded tho adoption. —C a rricd unanimously. Alessrs. Buslinell and Whitby (ree.leotcd), George Evans, and T. Alc--Connoll were elected directors. All'. John Warren was reappointed tho shareholders’ ajjditor. Mr. Buslinell raised a discussion on the need for popularising the society. It was mooted outside, he said, that, if was becoming moribund and not fulfilling tho functions for which it was originally intended. Ho did not know whether he or his co-directors were to blame, but the society did not seem to be keeping pace with the times, though it was a “safe” investing medium. The Chairman agreed that it was not enlarging in keeping with the progress ol Gisborne. I-lo attributed this to tho fict that nowadays there Mere so maiiiv- more mediums for borrowing compared with feu years ago, when the society was more needed.

A shareholder: l think we made a mistake in raising the rate of interest . The Chairman : Oh, we- can lend money all right. It is the matter i>f getting money into the concern that wB must consider. A Indy member said tho society was an excellent savings bank for depositors, with a sure rale of interest. It was not of a sufficiently speculative character, it would seem, to attract membership. People nowadays wanted a gamble. (Lh lighter.) A shareholder thought tlie withdrawal ice of 5s per share was not relished by those wishing to withdraw their money, but it was pointed out that some precaution of tho sort was essential. In answer to a question the secretary arid that for tlie convenience of shareholders the month’s notice of withdrawal was not insisted upon.

A member sought information as to a system of balloting, and was. informed that to introduce this a revision of the rules would bo necessary.

After further discussion as to the best- means to attract membership, the meeting concluded, tho matter presumably bein'* left to tho directors for some suggestion.