NEW ZEALAND LOAN AND MERCANTILE AGENCY (LIMITED).

Auckland Star, Volume XXIV, Issue 4325, 26 March 1884, Page 4

NEW ZEALAND LOAN AND MERCANTILE AGENCY (LIMITED).

The eighteenth annual ordinary general meeting of the shareholders of thi. Company was held on February Ist at their offices, Queen Victoria-street.—Mr T. Russell, C.M.G., who occupied the chair, said it gave the directors great pleasuro to be able to come to them again with their customary dividend of 15 per cent., adding £10,000 to the reserve fund, thereby increasing it to £220,000 and carrying forward £6,543. Nor was there anything in the present position of affairs—for they had telegraphic advices from the colony up to yesterday which would lead them to suppose that they would be less prosperous in the future than in the past. It had been his pleasure since he last met them in that room to pay a lengthened visit to the colony. He had had the advantago of a residence of ten months in New Zealand, and ho took the opportunity of making himself acquainted with the character of the business there. He had the advantage of frequent communications with the colonial board, and of attending board meetings, and he was pleased to be able to tell them that all he learned and all he saw gave him the fullest confidence in the Company's operations there. They had a large body of colonial proprietors, and though money was always dearer there, 7,8, or 9 per cent., as against 3, 4, or 5 here, shares frequently commanded a higher price there than hero. The great group of countries known as the Australian colonies were making rapid strides infwealth and importance, and ho believed the most sanguine among us could not realise what would be the development and growth of those colonies the next 20 years. Besides their business in New Zealand, his Company did a large amount of business in Melbourne and Sydney. Last year their sales of wool in Melbourne amounted to 27,989 bales, apart from those sold in this country. In 1882 their wool business, including that which they dealt within this country, amounted to 98,734 bales. This year they had dealt with 109,868 bales. Their business being so enlarged, they were about to propose an increase in the capital of the Company. They would call a meeting of the shareholders for the purpose, and give them full notice of it. They would - aßk them to increase the capital by £500,000. They proposed to issue to the proprietors in this country one-half of the new capital, which would be about one share to each 12 shares now held at a small premium, say about £1. That would give them a very handsome bonus. They proposed to deal with the other portion of the half million by issuing it in the Australian colonies. They had a large proprietary in New Zealand who were of great use to them, but they had no shareholders in the Australian colonies, or only a few. The recent Imperial legislation enabled them to establish colonial registers of shares. They proposed to take advantage of this, and to establish a share register in Melbourne, and perhaps in Sydney, and to create there a local proprietary, and issue to them the other naif of the new capital, and they proposed to issue it at a considerable premium. The directors were entitled under the articles of association to one-fourth of the new issue of shares, but this privilege they proposed to forego —(hear, hear)—and to give to the shareholders the full benefit of the new issue, the directors only taking such portion 08 they were entitled to as shareholders. In conclusion, he moved that the report and accounts be received and adopted. Mr Boutcher seconded the motion. In reply to Mr Brown, who asked for further information than the balance-sheet gave as to tho amount of the debentures.'the Chairman said that the amount was always varying as debentures were paid off and as money came in, but the amount was always within the authorised amount. With regard to the amount of information given in the accounts, he challenged Mr Brown to produce the accounts of any similar com- ' pany which gave more details. ■ In reply to Dr. Drysdale, who asked for some information about the frozen meat trade and whether it was a profitable trade to the importers, the Chairman said the number of carcases of sheep imported from Australia in the last three years was 141,823. From New Zealand the number in ISB2 was B.SS9, and in 18S3, 121,621, making a grand total of 272,283, and he bad reason to believe that this year the importation would be considerably greater. With regard to the capacity of the Australian colonies to carry on a large trade in meat, he might state that the last returns showed that in Australia and New Zealand together there wore 76,796,217 sheep, so that with a population of about four millions there must be a large annual surplus, and he hoped that a good deal of it would find its way to this country. The trade, he believed, was paying, but tho results were not as satisfactory as they might be. Mr Larkworthy, the manager, said he believed there would be an importation of between 400,000 and 500,000 carcases of sheep this year. Be knew of one shipper who had contracted, to bring over 200,000 carcases from New Zealand alone, this year. A shareholder observed that while the expenditure had been increasing very fast, the prtfits had not beon increasing at all, and said he thought that tho item of £182,874 for premises was an undue amount. •

The Chairman said tho investment In premises included their stores. They hod very fine premises in Melbourne, where they were doing a large and profitable business, and all their premises were put down at less than their actual value.

Tho motion was then put and carried, and the retiring directors and auditors wero re-elected.

On the motion of Mr Norman, seconded by Dr. Drysdale, a vote of thanks was given to tho Board of Directors.

Mr Mundella, who returned thanks on behalf of the Board, said the shareholder who had moved the resolution expressed a desire that the dividend should be 20 per cent. He considered a, dividend of 15 per cent, was not a bad one, and he thought they ought to wait a little longer and put) themselves into a still more solid position. If good management would bring them 20 per cent, he was sure they would get it. A vote of thanks was also passed to the managers and staff here and in the colonies, and the meeting then rosolved itself info a special meeting, at which certain resolutions were passed to enable the directors to open registers of shares in tho colonies.