COMMERCIAL.

Press, Volume LIX, Issue 17742, 19 April 1923, Page 10

COMMERCIAL.

RATIONAL MORTGAGE AND AGENCY CO.

ANNUAL MEETING. BRIGHTER OUTLOOK. (nsOM otra owrr cokbespondzst.) LONDON', March 8. A more optimistic feeling prevailed at . the annual meeting of tho National Mortgage and Agency Company, yesterday, than has been the case for the' past three years. Beside tho chairman (Mr Eobert Logan), other members of the Board were Mr C. S. Grenfell, Mr L. E. Smith, and Viscount Hampden.

The chairman first referred to the death of a late colleague —Mr Edward Pearce —who had been closely associated with the company since its inauguration some 47 years ago —first as an agent in Wellington, and for about seventeen years as a member of the Board in London. Sir Thomas Mackenzie and Sir James Mills, said the' chairman, were at present in New Zealand carefully watching the interests of the company and assisting the general manager (Mr G. B. Eitchie) with their advice and ripe experience of affairs.

Mr Logan summarised the conditions of trade during the past year. Things had changed, jio sa id, entirely for.the better. Large quantities of raw material had passed into consumption, not through London only but also at the various sources of origin, and instead of large stocks. of wool remaining on hand, as was the case a year ago, it was safe to say that these stocks had beon absorbed with the exception, of course, of BJLW.R.A. wool. The quantity of raw wool taken into consumption during the past year was estimated at 5,000,000 bales, of which B.A.W.R.A. wool accounted for well over 1)000,000 bales. The total offerings in London during 1922 were estimated at 1,265,000 bales, an increase over 1921 of 272,000 bales. Of-,last year's total New Zealand contributed 467,000 bales, as compared with 301,000 ; bales in 1921. In the last year 729,000 bales were stated to have been bought •on Home account, 429,000 bales for the Continent, and 41,000 for the United States. Lastly, the average value was £22 a bale in 1922, as against £lB in 1921. For 1916 and 1917 the figures were £27 and £32 10s per bale respectively. The increase of f merinos and fine crossbreds was estimated at from 25 to 30 per cent., while coarse and medium crossbreds, of which the greater part of the New Zealand clip was composed, had risen something like 35 per cent, to 40 per cent. Prospect of Tinner Prices. - From this it was evident that the demand for wool at the present time was considerably in excess of the rate ■of production, and that fine qualities were mostly sought after. There were, however, indications that the manufacturers were turning their, attention to the coarser grades to satisfy the requirements of their customers —an event which would, no doubt, be hastened by the liquidation of 8.A.'W.8.A. stocks, which now totalled only 1,000,000 bales, as compared with 2,500,000 bales at the beginning of last season. Firmer prices, therefore, might be anticipated from this cause. Another important factor which would influence the situation was the decrease in the number of sheep throughout tho world. Dairy farming had been rapidly increasing'in the Dominion, and last season showed a substantial improvement in the total output. . The ; new 'season had been, very remunerative to

all engaged in this important industry. ■■* Values of New, Zealand butter were now nearly up to 2s per lb wholesale, and some shrinkage in the demand was almost inevitable. Cheese, also, con- . , tinued to make excellent prices. The frozen beef outlook was still difficult and .uncertain. "Unfortunately, not

much could be said for New Zealand .frozenVbeef, which could not, apparently, compete successfully with the , chilled article from America. The total importations of frozen and chilled meats into the United Kingdom during 1922 amounted to 821,000 tons, compared with 917,000 in 1921, and 720,000 in 1913. New Zealand shipments, however, showed a decrease of about 80 per cent, on the previous year's figures, while the proportion supplied by the whole of the British Dominions was about 85 per cent, of the total importations, against 40 per cent, the year before. Another interbesting item was that 1100 tons of freshkilled beef and mutton were imported . from the and 49,500 head of cattle from Canada and the United States. The 'chairman then quoted statistics with regard to sheep in New Zealand, and montioned that a satisfactory feature of the returns was an addition ■i' of 348,000 breeding ewes. Speaking pf the Meat Export Control Act, he " said, although created .nearly a year ago, the Board, so far, had abstained ■from exercising the very full and drastic powers bestowed upon them, while, on the whole, the Board's operations :■• had met with a fair amount of approval. The Balance Sheet ■ Issued capital, continued the chair- , : .man, remained the same, and also the reserve fund which was £36,250 in excess of paid-up capital. Liabilities showed the usual fluctuations. Sundry creditors showed a decrease of £133,000. Bills payable showed an • increase of £40,000, due chiefly to increased business in Eastern goods shipped to branches and customers in New Zealaill, for which acceptances against .d/fimeiits were given. Loans oh mortgages and secured accounts showed an increase of £42,438, which was accounted for not so much by new business as by further transfers of unsecured accounts to the secured category. Advances on wool and produce showed a decrease of £38,101, due chiefly to the firmer tone of the markets and better prices ruling for staple products, which had enabled the prompt clearance of shipments upon arrival, particularly in the case of frozen meat towards the end of the year. The gross profit of the company was £IBB,IOO, as against,£l4s,2o9 in the previous " year. Charges in London were £ 6500 down, a very satisfactory result. Provision -had been made for a bonus to the staff of 5 per cent, on their salaries. They could not give the staff any bonus last.year, although they thoroughly deserved it. In b.-.d times equally with good times they got the unstinted service from the' staff both here and in. the Dominion, and ' the directors were glad to recognise this. Debenture-interest had increased nearly £SOOO, which was partly due to the rates for debenture money - mounting so rapidly. New Zealand taxation amounted to £84,600, and to ' meet a portion of this amount they - had drawn upon contingencies reserve < to the- extent of £30,000. This approximately represented arrears of tax-ation—-the result of unsettled items spread iover previous years which had now been finally cleared off. They ex-, pected that their taxation in New Zealand in the current year w&uld be re-

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duced. The Board looked forward to a prosperous year, always provided that they did not experience any unforeseen, set-back either in England or the Dominion. Mr Logan concluded by asking the meeting to pass the customary vote of thanks .to the staff at Home and in the Dominion. Viscount Hampden and Mr L. E. Smith were reappointed directors.