PERMANENT INVESTMENT AND LOAN ASSOCIATION OF CANTERBURY.

Globe, Volume VIII, Issue 821, 8 February 1877, Page 2

PERMANENT INVESTMENT AND LOAN ASSOCIATION OF CANTERBURY.

The sixth annual general meeting of investment shareholders in the above association was held last evening at Mr Charles Clark’s rooms, Mr 0. VV. Turner, chairman of the Board of Directors, in the chair. The chairman said the meeting had been called in accordance with rule XXII of the association’s articles, which required that a meeting should be held not later than the first week in February, for the election of directors and transaction of other business. In compliance with that rule the following advertisement—[readJ—had been inserted, but the business therein stated would not be completed, for certain reasons which he would hereafter explain. Mr 0. R. Blakiston and Hon J. T. Peacock were the only two shareholders who had given the necessary notice under the rules.

The minutes of the last annual meeting were read and confirmed. The chairman said the directors were not prepared to present the balance sheet that eveoihgi but would ask the shareholders to

comply with the rules by electing the directors, and adjourn until the 14th March. It was probably known to most of those present that Mr Lewis’s confidential clerk, Mr Herdson, through whose hands a large extent of the office business of the loan department had passed, had left a defaulter. This had not been discovered until the close of last year, and it then became absolutely necessary that the directors in their behalf, and Mr Lewis in his own, should have a lengthened and minute examination made of the accounts. After a very minute examination of the books, made by Mr Lewis, it was found that the association would not be a loser by the defalcations. Mr Lewis, the manager, had obtained leave of absence about the end of 1875, and the directors had agreed to appoint MrHerdson acting manager during his absence, taking the usual fidelity bond. On Mr Lewis’s return he again took up his position of manager, and though the accounts had been fully gone into it was desired that the audit should be complete before the directors’ report was presented. He would therefore ask for an adjournment until the 14th March, after the two directors had been elected, on which date he was certain they would be in a position to present a very satisfactory report. It was already known that the whole amount in which the association had been involved through Mr flerdson’s defalcations was under £650, which sum had already been claimed from the Alliance Company under their guarantee. He would now ask some shareholder to propose the election of Mr Blakiston and Hon J. T. Peacock as directors for the ensuing year.

On the motion of Mr Cooper, seconded by Mr Booth, those gentlemen were declared to be duly elected. The chairman said if the meeting desired any further information he would be happy to give it,

Mr W. E. Mitchell was glad to hear that the amount of the defalcations was as stated by the chairman, and so satisfactory by com* parison, as he had heard it stated by many—and only that day in one place of business—that it reached about .£2OOO. The chairman said the actual amount was £642 7s.

In reply to a shareholder, the chairman said it had been understood that the directors would not present a report that evening. On the 14th March they hoped, however, to be able to present a very favorable one. In reply to Archdeacon Wilson, who had just entered the room, the chairman repeated his previous answer.

Archdeacon | Wilson regretted that being about to leave Canterbury, and having some little interest in the association, that the directors would not be in a position to give a report at an earlier date than that mentioned. The more so as he had reason to suppose there was some change contemplated in the constitution of the association. Mr J. R. Hill said that the directors had desired to present a full report to the meeting ; but since the defalcations had become known, it was their opinion that sufficient time should be given for a full and exhaustive audit to be made ; and notwithstanding the careful examination made by the manager, it was the wish of the auditors—they having audited the previous year’s accounts—to go more fully into them, and farther back, for their own satisfaction. If Archdeacon Wilson were leaving Canterbury before the date of next meeting, or the audit was complete, he would no doubt be able to obtain full and satisfactory information on any matter he might require. The Chairman said that the other matter referred to by the Archdeacon jwas somewhat premature, as it had not emanated from the directors, but was a suggestion by a shareholder—he alluded to the alteration of the organisation of the association. And though the suggestion might be a valuable one, the directors did not think they would have sufficiently considered it to place it before the shareholders at next meeting. To those shareholders who might be able to attend at the next meeting he would mention, to show the confidence in which the association is held, that the loans out last year were £105,000, and this year £141,000. The special deposits last year were £23,000, and this year amounted to £40,000.