FARMER DEBTORS

Sun (Auckland), Volume I, Issue 269, 3 February 1928, Page 8

FARMER DEBTORS

PERSUADED TO CARRY (ft

WAITING TIDE’S TURN

(From Our Oim CorresponOattt WELLINGTON. Tod** "By making substantial , in principal and interest we hav*. ans suaded nearly all of debtors to remain on the l-.ns , hope that the tide would tu'.-Jfin'V I'* 1 '* favour sooner or later" Harold Beauchamp, chairman ®? r rectors of the Equitable Btiildinf ± Investment Companv. Limited meeting of shareholders yesterdav * He had mentioned that • 1927 and throughout the past l'* one mortgagor after anotl erhj formed the board that owing .“V*" prices of produce, adversa C limi?£ conditions and other causes, heTSTu no longer carry on. Most of thS! mortgagors expressed a desire to off the land and abandon eremfe in favour of the mortgagee ' "I have to deal with a 'matter has occasioned your directors ts gravest concern during the past 1. months," Sir Harold Beauchamp "I refer to the unfortunate poshi n . this and so many other lending ? stitutions in the Dominion find iw selves in with regard to mongai-eVI vances on broad acres. * o ’ “In pre-war days there was no icurity held in such high esteem* farm lands, against which, valued fn. mortgage purposes by men who considered as highly competent vain ers, borrowers had no difficulty whaever in obtaining advances to theej tent of 50 per cent, to 60 per cem of such valuation. When I addresses you last year neither my colleagues nor myself had any reason to think that we would have to face heaw losses in respect to any such advances, all of which had been on «- books for many years. In fact un till December 31. 1926, the intereson the majority thereof had been pa d with commendable regularity anpunctuality. “The prompt payment of interest® the past naturally lulled us into 1 sense of false security and othelenders were In similar circumstances In the meantime the board had considered it prudent to transfer to a® contingent securities depreciation ac count from the general reserve fund the sum of £20,000 to meet any losses that may occur on the ultimate real isation of mortgages that may corn? under the category of ‘B and doubtful.’ I apprehend there will be no difficulty in paying the same dividend in future as that which we are recommending to-day, namely, 10 per cent per annum. "I would add that we have since discontinued making advances to farm ers, and are now confining our opera tions to loans op properties in Wellington and suburbs.”