COMPANY AFFAIRS.

Auckland Star, Volume LIX, Issue 95, 23 April 1928, Page 4

COMPANY AFFAIRS.

BANK OF ADELAIDE. j RLMOL'RS OF MERGER. An interesting controversy has arisen in I Adelaide in connection with a contest for a vacant seat upon the board of directors of the Bank of Adelaide, states the Melbourne "Argus." At various tiir.es in the last two years reports gained currency that other banking organisations wished either to absorb the Bank of Adelaide or amalgamate with it. The subject was discussed at a meeting of the shareholders of the bank some time ago, and shareholders then appeared to be adverse to any merging of interests with outside concerns. In Adelaide the bank is held in sentimental regard. It is an old-established South Australian organisation identified with leading business interests of the State and the reputation its management bears for care in finance is exceedingly high. Candidates for the vacant seat on the board have issued circulars to shareholders urging their claim for selection. These touch upon the amalgamation question, and one candidate states definitely that reports "are abroad of an extremely advantageous price being offered for shares at an early date." He adds that if he became a director he should consider it to be his duty to submit any offer to shareholders. From the circulars it is apparent that all candidates place an exceedingly high valuation upon the goodwill and the assets of the bank. The discussion upon the amalgamation problem has led to a hardening in the market of the shares of the bank, rumours of an attractive offer no doubt leading to speculative dealing. Some shareholders of the bank regret the prominence given to the subject of a probable merger, as they think that longsustained rumours of the kind are more likely to create unrest than do good to the organisation. Among statements current is one that a London bank has thoughts of engaging in business in Australia and would not be disinclined to acquire such an institution as the Bank of Adelaide. On the other hand, the suggestion has been made that a Sydney bank would like to obtain the business to add to its chain of branches in the different States. No confirmation of statements of the kind is obtainable. The management is silent upon the subject of any amalgamation possibility. If it hag been approached it can be quite understood why, from motives of prudence, it would decline to make any announcement until definite proposals were in its possession. A.M.P. SOCIETY. NEW ZEALAND BUSINESS. At the annual meeting of the Australian Mutual Provident Society the chairman referred to the splendid progjess during 1927. Further records had been created and the cash surplus for the. year was the magnificent total of £3,070,513. The operations of the society in New Zealand were reviewed by Mr. R. A. Holmes, of the Dominion board of directors. "I am happy to say that New Zeat land has surpassed our most sanguine anticipations and we are very proud of her record business for the past year," > he remarked. "To complete total new business for both departments of over £4,000,000 from a population of 1,375,000 i is undoubtedly a remarkable performance. We easily beat all previous records, being £409,788 ahead of 1924 (our previous best year) in the ordinary department and £40,527 ahead of 1926 total in the industrial department. Not only did we complete exceptional new business, but we retained an improved proportion of the | old business, and the net increase was i highly satisfactory. "To show the progress of the society f in New Zealand I would say that the . new business 10 years ago was £1.338,256 . from both departments, as against over ; £4,000,000 for 1927, the business on the i register having increased during the same , period from £17,088,431 to £36,593,651." Referring to the society's investments . in New Zealand, Mr. Holmes said that , notwithstanding the somewhat unsettled r land values the society's landed securities ' have stood the test well and the fact that all interest due in 1927 was paid before December 31 is evidence of the care which has been exercised. The society's investments in New Zealand Government and local body bonds now total over £9,500,000, so that the assistance rendered to New Zealand by the society is not I inconsiderable. THE DAIRY INDUSTRY. 1 WAIKATO PAYMENTS, i Payment* totalling £3.754,569 have been advanced to the suppliers of 11 Waikato dairy companies for butterfat received i for the season up to the end of Manch, , compared with £3,174,128 for the corres- [ ponding period last season, an increase of : £580,441. For the month of March the i advances totalled £372,927, compared with i £321,013 tor March, 1927. 1 ! TAURANGA. i 1 The Tauranga Co-operative Dairy Association paid out for March supplies £7500, representing an advance of 1/4. In addition a further payment of Vtd per lb for August, Id per lb for December, and Md per lb for January, totalling £1400, was made. This brings the average advance for the season to date up to 1/4 per lb. OUR TEA DRINKERS. The tea-drinking h*bit appears to be growing in New Zealand for it has increased a half-pound per head in recent years. For the past four years our imports have been approximately 81b per head per annum, as compared with 7%1b in 1923, 71b in 1922, 5%1b in 1921, 10 l-31b in 1020, and 7V&lb in 1919. Last year 10,827,3811b were imported, at a cost of £891,831. Chief sources of supply were: Ceylon, 9,757,5401b; India, 776,3771b; Java, 205,0791b; China, 86,8521b.