Local Building Societies.

Patea Mail, 18 August 1882, Page 3

Local Building Societies.

An adjourned meeting of members of the Patea Land and Building Society was held on Wednesday evening, in the manager’s office, to inquire into certain irregularities, and to receive a report as to winding up its affairs. This was the third meeting held for the purpose of receiving final report and winding up, yet it appeared the inspector was not able to report that his examination of the books is completed. He had received the books only on the previous Wednesday, shortly before the hour of meeting ; but since the adjournment on that occasion he and the manager had spent considerable time in revising every account, and seeing that it properly balanced before passing it as correct. The inspector now reported that he had revised the accounts in this manner as far as the letter W, and he thought a few more hours would complete the inspection. It appeared that the books had not been systematically balanced each year ; and the work of revising a number of unbalanced accounts is now made more complicated by that neglect. The inspector said that receipts for every account except three are now in hand. Resolved to appoint Messrs Gibson and to audit the accounts, after the inspector has handed books over in a day or two ; and that the auditors present a report at an adjourned meeting to be . held next Wednesday. No reference was made at the meeting to the manner in which the manager became indebted for L4OO which ought to have stood to the society’s credit at the bank, or been paid through the society’s cheque to Mr Reid of Wanganui. It will be a necessary part of the auditors’ duty to enquire into and report on any irregularity of this nature. It appears the manager has stated that Mr Reid’s recent demand for L4OO was a surprise to him, as ho supposed it had been paid, because he had sent a cheque to Mr Reid early in January. It will be the duty of the auditors to silt this. The manager paid the L4OO out of his private account about the end of July—that is admitted. If he was ignorant of the L4OO being owing until say a week before he paid it, how could he be ignorant that the L4OO bad in some way got into bis private account ? If it bad not got into bis private account, why did ho pay it out of that account ? Suppose the L4OO was in bis private account a week before Mr Reid made bis demand, or one of his demands, how long could L4OO have been in the manager’s private account without his knowing it ? If be did know, and was not taken by surprise at Mr Reid’s demand, bow is it that be bad kept L4OO of the society’s money in bis private account ? Suppose the L4OO was in his private account, and he did not know whom it belonged to, it will follow that he has been using the society’s funds without knowing (firstly) that the society which he managed had lost 1.400, and (secondly) without knowing that the money had gone to his own account.

Every past or present member of the society is interested in knowing what are the facts of this irregularity in one large account, and in knowing whether this is the only irregularity. We are urged by various members of the societ3’ to give publicity to any matter we may learn of interest to them. Some of those interested in the society, and living at a distance, have no means of knowing Avhat is going on, nor why the society is not wound up, unless they learn through the press. It would be an agreaable duty for us to record that the winding-up is satisfactory and creditable.to all concerned. We hope yet be so. If the fact proves to wo shall not flinch from ' recording it. It will probably be admitted that we have done a public service in giving publicity to an irregularity in society accounts which could not be tolerated if generally known, and which ought to be generally known iii order that it may not be tolerated. rnagaamßtanßumttmmssmtKmmm