LOAN AND MERCANTILE.

Press, Volume LXIV, Issue 19227, 6 February 1928, Page 10

LOAN AND MERCANTILE.

ANNUAL MEETING IN LONDON. DIVIDEND RAISED TO 74 PER CENT. (PROM OCR OW* CORRESPONDENT.) LONDON, December 14. Mr Alfred Shepherd (chairman of the , at the annual meeting ! ofThe New Zealand Loan and Mercantile Aeency Company. Mr Shepherd, in addressing shareholders, referred to the drought in Central and Northern Queensland, and the very large losses to read a » le SJ ß ?' a late i y fallen. The P ° r -in as regards New Zealand had not condition as "garos Beneficia i rain {e n * eß w.wbS Bay Mid Poverty Bay early in tL vear and materially assisted in the the year, »""•.. provinces, which had g fe^sSffe° r y dry .pell exgreatly su previous season. The penenced in tne p wm SEhVw nt of rahx from January to May, S am one other things, adversely afW ml nrices of livestock. During the winfected prices ° throughout the Dominion ter '\nvfl tlw average" which greatly imr0 S ved b he petition! .1 abundance of spring aTd summer feed being assured. Situation in Queensland. '•ln connexion with the situation m Queensland," the chairman continued, one source of °satisfaction is to be found in the recognition by the Government that the woolgrowing industry requires consideration in respect of tenures, rental, taxation, and other matters of vital importance, as shown bv their appointment, of the Land Settlement Advisory Board to report upon the position The report of that Board, which has now been issued, deals with the financial importance of the wool industry «»*«■* Queensland is concerned, and with the present financial position of the Indus ry and suezeats the immediate review of all selection rents, stress being laid on the relation between rents and taxation. The chairman also referred to the fact, just reported in the Press, that following on the Advisory Board's report, a Bill for the reform of the Land Department had been introduced into the Queensland Parliament. From the information given it apDeared that the recommendations of Hie Advisory Board had been adopted with one exception— namely, the recommendation for the extension of the pastoral leases. In many quarters it was considered that the recommendations of the Board.erred, if they erred at all, in recommending inadequate extensions, and he feared that great disappointment would be felt if at least the conservative recommendations regarding the extension of leases were not adopted by tne Government and passed into law. Wool Statistics. Continuing, the chairman said:—_ "Contrary to general expectations, the 1926-27 Australian wool clip showed a marked increase—334,ooo bales—as compared with the preceding season, the production in round figures being estimated at 2,712,000 bales, as against 2,378,000 bales for the like period of 1925-26. "In New Zealand also the clip showed slight expansion, the production being returned at 587,000 bales, as against 585,910 "A good demand,' both in the oversea markets and in London, was experienced throughout the 12 months, home trade operators, who at times were hampered by economic conditions in this country, arising from the coal strike and other causes, taking a rather smaller share than in the previous year. Prance, Belgium, and Germany were again large operators, buying the last-named section being on a much freer scale .than at any time since pre-war conditions, whilst in Australia Japan gave useful support. In New Zealand the home trade Becured more than half of the offerings, Germany, France, and the United States being the next largest operators. . "The total realised value of the Commonwealth clip is computed at £55,610,000, giving an average of £22 8s 5d per bale, as against £57,718,000 and £2l 14s 9d respectively for the preceding soason. "In New Zealand the figures were: £9,208,000, being an average of £l7 18s 8d per bale for 1926-27, compared with £8,262,000, being an average of £l6 16s 2d per bale, for the previous year. "In New Zealand the enhanced value is more marked than in the case of Australia, due to the fact that crossbred wools appreciated to a greater extent than menno. Wool Handled. '"Kegarding the quantity of wool actually handled by your company during the period under review, the figures are: —In Australia and New Zealand, 292,243 bales, valued at £6 477,960, as compared with 304,010 bales of the value of £6,497,778 for the previous year While the number of bales disposed of in Australia shows a decrease of 17,567 bales, it is right that I should explain that there was included in the 1925-26 figures 40 000 bales held over from the preceding clip. Allowing for this and the smaller quantity shipped to London, the company received in the Commonwealth for disposal 12,300 bales more than it received in the previous season. The quantity of wool disposed of by your company in New Zealand was 50,640 bales, realising £854,058, against 44,840 bales, realising £743,606, m the previous season. Including the consignments disposed of in London, the total quantity of wool handled by your company was 803 632 bales, of the value of £6,723,616, as against 324,496 bales, of the value of £7,045,248, in the corresponding period 192'5-26." . , Mr Shepherd then quoted statistics regarding flocks in Australia and New Zealand, and the wheat crop in Australia. New Zealand Dairy Board. "With reference to the dairy produce conditions," Mr Shepherd continued: "I may say that New Zealand and Australia suffered a setback during the past yeaT, owing mainly to two causes, viz., bad markets in thi* country due to the prolonged industrial stoppage in 1926, and tie failure of an experiment in control of marketing, in the form of price fixation and the weekly limitation of offerings made by the New Zealand Dairy Produce Control Board, which not only signally failed to achieve the object aimed at, but, even after the abandonment of price control, owing to the accumulation of stocks whidh Lad resulted therefrom, adversely affected the market during the rest of the season." Mr C. L. Baillieu, a director of the_ company, had recently returned after a visit to Australia, and had been able to give valuable information with reference to the conditions prevailing thoie generally, as well as more particularly in connexion with the conduct of the company's business. "It is proposed that our manager, Mr Boid, should again visit Australia and New Zealand in connexion with developments which are taking place. I can only repeat what I said on former occasions—that our endeavour to keep in closer touch with the Oomomnwealth and Dominion by visits from our local representatives there, and by visits of our manager to those parts, has resulted, and will, I am sure, continue to result, advantageously to your interests." Balance-sheet. On the credit side of the balance-Bheet the cash with bankers, money at short notice, and investments at or under market value, all showed considerable increases, aggregating together £248,134,. representing in part the proceeds of the issue of sir and a half per cent, cumulative second preference stock. Shares in other companies, bills receivable, etc., also showed an increase, due to these accounts being of a fluctuating nature and varying from time to time. Secured leans and other advances and current accounts showed an increase of £203,764, chiefly represented by advances on security of stations, stock, etc., and constituents' balances. On the debit side of the balance-sheet, the capital account had been increased by the creation of £500,000 six and a half per cent, cumulative second preference stock. The other stocks and general reserve account and the mortgage stocks were unaltered. Bills payable and current accounts showed an increase of £175,965, due to acceptances connected with the mercantile business, tho balances due to clients relating to consignments, etc. Temporary loans were less by £220,886. After deducting from the gross revenue the administration expenses, taxes, the [".mount written off premises, and interest on the debenture stocks, the balance carried to the balance-sheet was £13,351 greater than last year. In the directors' report a balance after paying interest, etc., of £148,991 waß shown. This was an increase of over £13,000 compared with the sum brought into last year's report. From this sum the directors have appropriated to tho staff benevolent fnnd £IO,OOO, the same as in the previous year. The Dividends. The interim dividends on the ordinary and five per cent, preference stocks paid in June last absorbed £55,000, and the balance, after adding the amount brought forward, showed a total of £129,278 to be dealt with, as against £110,286 last year. Out of this siiin there fell to be met the dividend paid on- July Ist on the new six and a half per cent, cumulative second preference stock, amounting to £11,680, which did not appear in previous accounts. The directors, recommend that after payment of the usual dividend at the rate of 5 per cent, on the pre-

ference stock, a final dividend of it PPr° r cent, should bo paid on the ordinary stock, making 7J per cent, for the year, ae against ' per cent, last yeir. "I trust," concluded the chairman, "that the stockholders will approve the action of the directors in recommending the small increase in the dividend on the ordinary stocK. They considered the matter carefully, and, in view of the fact that in bad times the dividend on the ordinary stock had to b e drastically reduced, felt that the figures shown in the balance-sheet and revenue account for the past year justified the recommendation of this modest inorease." The report and balance-sheet were adopted. Jfa W. W. Paine and Lord Ritchie of Dundee were re-elected directors, and the meeting closed with a vote of thanks to the chairman, directors, members of the local board, and ihe London and oversea staffs for their services during the past year.' WHEAT. ' (Received February sth, 5.5 p.m.) LONDON, February 3. Cargoes—The depression has not been relieved, and the demand is slow. Quotations are lower. Parcels—The market is quiet, and prices are mostly 8d down. At Liverpool, futures are quoted: March 9s UJd, May 10s OJd, July 10s ljd per cental. CHICAGO, February 4. "Wheat—March, 129 cents a bushel; May, 129;! cents; July, 127} cents. MEAX (BY CJU6U—PKSSS ASSOCUTIOK—OOPTJkI&HT.) Utjsmulu* ij»n a.s cixvt tssocuTiOH.) (Received February. sth, 6.5 p.m.) LONDON, February 4. Sheep—North Island, light Gld, medium 6d, heavy sid. Lambs—North Island, firsts light 9ld, seconds 9Jd; Australian, firsts, other States, 18<i; seconds, other States, 7d; thirds, 6|d; Argentine, firsts 7Jd. Chilled Beef—Argentine, forea 4id, hinds 6Jd. I Other meats are unchanged. | LONDON MARKETS. (Received February sth, 5.5 p.m.) LONDON, February 4. Cotton—March, 9.25 d per lb. Rubber—Para, lSd per lb; plantation j smoked, 18Jd per lb. Jute—February to March shipment, £3O 15s a ton. « Hemp—February to April shipment, £34 10s a ton. Copra—January to February shipment, £27 a ton. Linseed Oil—£2B 15s a ton. Turpentine—4ls 3d per cwt. GOLD. (BY CA3LI—HISS A.BSOCUTIOIC COJTMGHT.) (atjstkaliah a.vp k.z. cablb ASSOCIATION.) LONDON, February 3. Gold is quoted at £4 4s ll£d per fin© ounce. MELBOURNE GAS COMPANY. The Metropolitan Gas Company, Melbourne, shows a profit for the half-year ended December 31st of £105,842. There was transferred to the reserved account £7OOO, to. the meter fund renewal account £IOOO, and a dividend of 7s 6d a share absorbs £97,500, being at the rate of 15 per cent, per annum. PEA-GROWING IN MARLBOROUGH. The highly-satisfactory profits to be made from pea-growing in good seasons Were referred to, in the course of an address at the Blenheim '.Rotary Club, by Mr O. W. Parker. He quoted the case of an Awatere farmer who had just harvested a crop of peas yielding 56 bnshels to the acre. He secured 10s per bushel, so that the return per acre waß £2B, though the value of the land was estimated at only £2O.