Building Society Accounts.

Patea Mail, 11 August 1882, Page 3

Building Society Accounts.

We are requested by several members of the Patea District Land and Building Society to give publicity to a state of affairs which they regard as unsatisfactory. Many of our subscribers, to whom we owe a special duty, are also interested in the proper management of building societies. The facts which have been furnished for publication shall be stated as mildly as circumstances seem to warrant.

This society' ought to have been wound np about the end of last year, in ordinary course. The majority' of members accepted immediate payment of their claims, forfeiting any accumulated profits. This left only' a few members to participate in the results of winding up. The paid manager was. expected to close up the society’s business and prepare a final statement. This was delayed so long, that at length the grievance took the form of complaints. During this time Mr Reid, of Wanganui, had £4OO due to him from the society. The money was supposed to have been paid last January, but it was not actually paid till about the end of July'. Reports as to this claim had become unpleasant to those interested in the society, and they tried to get a final meeting. This final meeting lias been called twice within the past three weeks. On the first date, the manager was out of town. On the second date (Wednesday evening last) a meeting was held, the following members being present : Messrs R. A. Adams (in the chair), J. Gibson, W. Aitchison, Eyton, J. B. Key, H. E. Deane, and Taplin. The inspector, Mr Tennent, was present ; as well as the manager. The inspector reported that the books were not fully entered np till that evening ; that having been handed to him so short a time before the meeting, he had not time to examine them fully' ; that a number of receipts from members for money sent by the manager had not come to hand, but he was satisfied that the amounts had been sent and had reached the parties in those cases- which he had traced in the books ; but that his inspection was not completed. The Chairman questioned the manager as to the £4OO which ought to have been paid to Mr Reid many months ago,

but had been paid in an irregular manner only within the last few days. The manager explained that lie did send a cheque to Mr.Reid in January last, but it appeared the cheque did not reach him. He did pay the £4OO to Mr Reid within the last fortnight ; for on passing through Wanganui he gave Mr Reid a bank draft, and the draft had been paid. It appeared from the manager’s explanation, that having thus paid £4OO out of his private account a few days ago for moneys belonging to the building society) he must have paid some of the society’s moneys to his private account at some time or other without the directors’ authorit3 r . This was not the only instance of the society’s moneys being paid otherwise than by the society’s cheque. The Chairman elicited that if the cheque had been presented for payment later than January, there wore not funds of the society in the bank to meet it. The manager said that Mr Tennent would no doubt have informed him before dishonoring- the cheque, and if he had done so the manager would have arranged to meet it.

It was not shown whether a cheque for £4OO had actually been issued from the society’s cheque book, nor whether it had ever been presented for payment ; nor was it explained to the satisfaction of the meeting how the manager’s private account became ultimately indebted for the £4OO.

Some blame for this state of- things seems to lie also on the trustees or the directors. We are informed, however, that the Chairman of directors has endeavored during the last few months to get the society wound up, by applying to the manager for that purpose. The meeting, on Wednesday could do nothing until the inspector’s report is ready ; and the meeting was adjourned for a week.