COMMERCIAL PROPERTY AND FINANCE COMPANY (LIMITED).

Oamaru Mail, Volume IV, Issue 1319, 8 November 1880, Page 2

COMMERCIAL PROPERTY AND FINANCE COMPANY (LIMITED).

First Annual Report or thk Directum op tiie Commercial Property and Finance Company (Limited), and or tiie Liquidator of tiie Commercial Building and Mutual Investment Society, As adopted by the Meeting of Shareholders held at Oddfellows' Hall, llattraystreet, Dunedin, on Monday, Ist November, ISSO, at S o'clock p.m.

The shareholders are herewith presented with the balance-sheet and profit ami loss statement of the affairs of the Society and Company as on 30th September. The net profits for the 12 months, after making provision for losses, amount to LGI33 17s 4d, which, subject to the approval of shareholders, lias beon allocated aa follows : A bonus of 11 per cent.,-free of property tax, to the credit of Society shareholders, absorbing £5109 9 7 A dividend of 11 per cent, to the shareholders of the Company 652 0 Oi Transferred to reserve fund ... 250 0 ft (Which, with L7O 10s realised solely from Company's transactions, makes this fund begin with a credit of L3IO 10s) Leaving at the credit of profit and loss, to meet this proportion of property t; cVXj the sum of ... ... 122 j g

£6133 17 4 The subscriptions received from Society members during the yearamountto L12.72G, and the withdrawals and matured shares to L 23,537, inclusive of capital transferred to the Company. The profits to shareholders of the Society have been divided among them by way of bonus as formerly ; but as this system is unfair to shareholders of the Company, it is intended to distribute the profits next year through the medium of interest. It is scarcely necessary to say that this alteration docs not involve any reduction in the earnings of Society members; but such a method appears to be the best in order to secure the two classes of capital being kept upon a perfectly equitable footing. It is confidently hoped that the proposal will meet with the appropal of Society members. The directors are much gratified with the result of the first year's operations of the: Company. After providing for all expenses in | nection with the formation of the Company,, the profits for the past year exceed by LSO0 1 the largest amount which has yet been realised, and this notwithstanding Mat our funds have not always been fully occupied,, and that the unusual course (in the history of the Society) has been taken of not only writing off actual ascertained losses, hut. making provision for the reduced value of certain of the investments of the Society,, wliieh it would have been imprudent to forcein to realisation during the past year in consequence of the depressed value of real ; estate property. The advances made to borrowers during: the year amount to L 23,246. At the date of this report 1393 shares; have been taken up in the Company, many of them at a premium. -1076 investing shares were held by Society members at the date of the balance. A large number of those who withdrew from the Society during the year availed themselves of the privilege of transferring their interest to the Company ; but in keeping with the representations made by'thedirectors prior to the formation of the Company, Society members have remained entirely uncontrolled in respect' of this matter, and the directors are confident thatany residue of shares not taken by them will be readily disposed of to the general public at a premium. Shareholders will observe that the directors have inaugurated a reserve fund witlrL 320 10s. We have in the past been living* as it were, up to our income, which is not a. practice which either deserves or will secure the confidence of the investing public, ® are sure that shareholders will approve of the creation of a reserve as a prudent a' l ' l progressive measure, and one that will no doubt be appreciated by our dep-.j-itovs, so as to conduce to an increase of their numbc and patronage. 35S deposit shares, representing subscriptions of LB9 10s per l vie nth, are now by 52 persons. Tho deposit shares _ arc- a»> admirable agency for- tl.-c accumulation' anal fructification of sayings, and are. as f | ' cei from liability as our oidinary (fejjosits,, or deposits in a bank. Sccioty shareholders will recollect that in the circular issued by the- Board when recommending the formation of the Company one of the arguments used by them " as that as the Compwiy would be able to oner an improved security to the public they might reasonably depend upon obtaining an increase of deposits. It is with pleasure that the directors now point to the balancesheet in evidence that their anticipationshave been justified. Although the Company is only in the infancy of its career, wc . , on deposit LSOOO more than was held 11 J; tho Society at the cloao of its last balance. "With tho view oi affording greater c o ' l ' vciv'enee aid s<\f-. ty in the conduct of tfl business of the Company, the Board durinf,. the past y-jar have had certain improvemen ■ effected iii| the internal arrangements cf t 1 ' oiliues.

In accordance with the articles of assocu tion, all the members of the Board * • retire from office at the ensuing but are eligible and oft'er themselves foi election. Two auditors will also reqiiir® be elected, and their remuneration J the meeting. The present auditor' 5 a eligible, and offer themselves; for c 'I ho directors hope that 4fte< will be gratified at receiving the report '. e balance-sheet so soon after the- close oi financial year. , ,t. O '.riie dividend to- shareholders or , Company will be payable on Mondny> November,, Andrew Lees, j pj rec tors. Wm, Watson, j John Boyd, _ -j wo£' Manager of Company and Liquidat Society. Dunedin, 22nd October, 18S0.