NEW ZEALAND TRUST AND LOAN.

Auckland Star, Volume XXXIV, Issue 166, 14 July 1903, Page 3

NEW ZEALAND TRUST AND LOAN.

GRADUAL LIQUIDATION.

(From Our Special Correspondent.)

LONDON, June 12.

The report of the New Zealand Trust and Loan Company, Ltd., for 1902, to be presented at the meeting next Tuesday, states that the balance of undivided profits shown, after payment of all current expenses, is £11,235. The directors recommend that a sum of £2000 be appropriated for the payment of a dividend on the ordinary shares of 1/ per share, being 5 per cent, for the year, and that the remaining balance (£9235) be carried forward. The directors further recommend a distribution to the shareholders out of the funds on hand of 10/ per share, amounting to £20,000, to be debited to the reserve fund, which will then stand at £85,757. Considering the high figures to which prices of cattle and sheep have risen in consequence of the disastrous effects of the recent drought in Australia, it has been deemed advisable to make provision for possible depreciation in the future by writing down values to a safe figure, and the sum of £5017 has been debited to revenue account for that purpose.

At the annual general meeting, held last Tuesday, Mr Lionel J. W. Fletches, who presided, said that though tlie word ••liquidation" was never mentioned in their reports, the company was liquidating its affairs, but without any official operations by the Court. At present no official step had been taken by way of a formal resolution to liquidate the assets. Not that the directors were desirous of unduly prolonging the life of the company, but the present course was being taken because, in the judgment of the Board, such a liquidation was most economical and most advantageous to the shareholders. At the right moment, if thought necessary, steps would be taken either to transfer the business -en bloc to some firm or institution or liquidate the company by tlie passing of a formal resolution. The crux of the financial matter had been whether the contingent account was ample to meet the depreciation in the value of securities. They had taken care in the present report to reiterate the conviction expressed two years ago that more than sufficient provision had been made, and this conviction had _ borne the test of experience. As to investments in the colonies, the. mortgages had been reduced from about £00.000 to about .J3 3LOOO, and the properties worked and let had been reduced from £198,000 to £180,000. Since the close of the accounts at December 31 last, properties in hand had been further reduced. They were carrying out the policy foreshadowed four or five years ago, and such mortgages as they held were taken as far as possible for short dates. so as not to hamper a transfer of the business, should such be deemed necessary. In reply to remarks from shareholders, the chairman said that he did not think the directors would be in a position to make a further distribution of another £20,000 within the current six months, but were the Board desirous to do so he was not sure they had the legal power. An extraordinary meeting could be called authorising the directors to make such a payment, but all he could suggest at the moment was that the shareholders should give the Board discretion to do what was expedient accordin"- to 'the prevailing circumstances.