NEW ZEALAND LOAN AND MERCANTILE AGENCY COMPANY.

Auckland Star, Volume XXIV, Issue 175, 26 July 1893, Page 2

NEW ZEALAND LOAN AND MERCANTILE AGENCY COMPANY.

THB ANNOUNCEMENT OF_ SUS PENSION IN MELBOURNE. .

BUSINESS TO BE CONTINUED BY THE NEW ZEALAND LAND ASSOCIATION.

The " Melbourne Age" of July 12th says

—-" Tho ' Age' cablegram given above was received early yesterday, and was the first information to reach Melbourne of the suspension of the New Zealand Loan and Mercantile Agency Company (Limited). Although the local authorities when seen on the subject seemed prepared for the announcement, they had no official intimation until 3 in the afternoon. At that hour they were in receipt of a confirmatory message from their head office in London, embodying directions to announce the suspension. In the case of Goldsbrough, Mort and Co., two reasons for suspension were assigned, viz—a difficulty in arranging with London holders for the conversion of their debentures from terminable to interminable scrip, and a withdrawal of deposits in tho colonies. Tho New Zealand Loan and Mercantile Agency Company has had no troubles of that kind. In the first place, the bulk of its debentures have been already converted into consolidated perpetual 4 per cent, stock, and in the second placo it has practically no deposits in the usual acceptance of the term. It has, howover, been experiencing a difficulty Borious enough to justify tho stop now decided on. It has found that the recent numerous suspensions of Australian banks havo made business transactions vory impracticable on former lines, and thoraforo that ib must reconstruct.

STATEMENT BY MR DAVID ELDER

Mr David Elder, the general manager for Australia, mado the following statement to our representative laab night:—l am liko the local managers of somo of the suspended banks, in that I have my head office in London. All I can say is that the London directors have senb mo a telegram informing mo that for certain reasons the compauy has been temporarily suspended, with a view to an early reconstruction. In ordor to conserve the very valuable business which we undoubtedly possess, and with a view to tho convenience of our constituents, we have arranged to carry on the business by means of the Now Zealand Land Association. That association was incorporated on 24th De combor, 1879, and of it 3 subscribed capital of £1,400,000 the sum of £829,481 12a ed is paid up. It is controlled by a board of directors in London constituted as follows : —Mr Thomas Russell, C.M.G, (chairman); Mr H. J. Bristow (Meaara Bowloy and Bristow); Sir James Fergusson, Bart., M.P. ; Sir John E. Gorsb, Q.C., M.P. ; Mr W. K. Graham (Messrs W. K. Graham and Son) and Mr A. M. Mitchiscn. Ib is therefore obvious tbab thia association is worthy of tho confidenco of our constituents, seeing thab it is in a substantial position and directed by such able mon. The administration in Aus tralia will be the same as heretofore—-that is to say, the business will bo conducted by the old staff, with Mr J. S. Horslall aa adviser, and tho arrangements are therefore as complete as they were for carrying on the extensive business of tho New Zealand Loan and Mercantile Agency Company. There need bo no anxioty on tho parb of any creditora of our company, for there is a very "large aocurity in the uncalled capital alono. whilst our business is sound and our securitiea good. Our debentures are. nearly all hold in England. Of our shares, about two - thirds are held in England and one-third in the Australasian colonies—principally iv New Zealand, so thab in Australia there aro very few shareholders indeed. Wo have as yet received no information as to the nature of the reconstruction scheme. No doubt ib ia being formulated by our London directors, and will be wired in duo course, but we are in tbe advantageous position of being able to carry on business in tho meantime by moans of an independent company.