NEW ZEALAND LOAN AND MERCANTILE.

Auckland Star, Volume XXXIX, Issue 6, 7 January 1908, Page 3

NEW ZEALAND LOAN AND MERCANTILE.

A PROSPEROUS YEAR. (From Our Special Correspondent.) LONDON, November 29. The report of the New Zealand Loan and Mercantile Agency Company for the year ended June 30 states that, after paving interest on the debenture stocks and adding £58,000 to reserve accounts (bringing the same up to £215,000), there remains to the credit of profit and loss account, including the balance brought forward, the sum of £6,562. The directors recommend a dividend at the rate of 5 per cent per annum (less tax) on the fully and partly paid shares, and that the balance of £133 be carried forward. The net revenue has been arrived at after distributing £4254 as a bonus to the staff, and writing £9956 off the London investments in order to reduce them to their approximate market value at June 30. Since 1897, when, under the scheme of that year the company's capital account was reorganised, the directors have from time to time been able to take advantage of the improved conditions in Australia and New Zealand to realise a considerable number of the properties which were handed over to them by the old company. On balance, these realisations have been effected at figures in advance of the valuations of 1897, with the result that there is a surplus in hand. The directors feel that the time has now come when they may safely transfer additional sums to this account. The weather conditions in Australia proved favourable during the early part of the year, but subsequently, owing to the want of sufficient rain, some anxiety was caused as to the general pastoral conditions in the Commonwealth. Recant" telegraphic advices, however, report good general rains in New South Wales and Victoria, while Queensland has also benefited to some extent. A portion of the South Island of New Zealand also suffered for a considerable period from very dry weather, which adversely affected the farming interests. The position of the wool market, both at home and in the Colonies, was, during the year under review, very favourable, and values ruled at a satisfactory level. Since the year 1903 the directors have been committed, as soon as the scheme for the purchase of the trustees' certificates J ad been worked out, to wind up the New Zealand Land Association, if, after full consideration, the trustees for the certi-ficate-holders and for the second and third debenture stockholders of this company so required. During the year this matter has been under the most careful consideration of both the directors and the trustees, and the directors .are glad to be able to report that, as the result of the many weighty arguments which they have been able to adduce in favour of the continuance of the Land Association as a separate company, the trustees have now given their assent to that course being adopted. NJZ. LAND ASSOCIATION. The report of the New Zealand Land Association for the year ended March 31 states that the trading and interest received resulted in a gross profit of £31,020. The management and other charges, including income-tax, amount to £3423, and the interest on debenture stock to £14.268. After deducting these sums, there remains a balance of profit of £13,329, of which £8427 has been applied in writing off the balance of the New Zealand Loan and Mercantile Agency Company's trustees' certificate euspense account, leaving £4902 to be carried forward. The directors have from time to time been able to take advantage of the improved conditions in Australia and New Zealand to realise some of their properties. On balance, these realisations have been effected at figures in advance of the valuation of 1901, with the result that there is a surplus in hand, which has been increased by the sale of a property since March 31. Out of this surplus the directors feel that they may safely transfer £75,000 to a capital reserve account. . i