MUTUAL AGENCY COMPANY.

Clutha Leader, Volume XVII, Issue 834, 11 July 1890, Page 6

MUTUAL AGENCY COMPANY.

" . — — : — *^ : The fifth annual meeting' of the above

company was' held in the Chamber of Commerce;' Dunedin; on Saturday. 1 There were '30 shareholders present; Mr R. Wilson in.thechair. • ; ; . , The following .report was submitted to the meeting : — - " The directors have much pleasure in showing the shareholders that the company is now a ; paying _ concern. The profit, although a small one, is an, earnest 1 of what can be done in the future, now that shareholders are giving the company their support. " The credit" balance for "the year, after providing for bad and doubtful debts, is L 173 2a 9d, and. this would have .been fully 'Ll 50 more but for the fact that many of the constituents of the company stored , last season's graiu for such a long ,time that warehouse charges account shows a loss of the sum named instead of a small profit as usual. It id proposed to carry forward this balance to next year. Considering that the'company, commenced the year, to all practical intents, without any -paid-tip capital, the result of operations may be considered encouraging. The new capital received up to date amounts to about L 4700, and in a few months, after the new. grain is. sold, over LSOOO will be on hand. In the current year, therefore, the large saving in outgoing interest will put the company on a much better footing. With business, equal to that of the past year (directors hope for an increase), the profit should not be less than 10 per ccn + . on the capital employed. At the annual meeting the directors will ask the shareholders to give them power to write off the first 20s per share as lost capital. They propose to absorb the L 6373 15s thus available in writing off old , profit and loss account L 5591 11s 4rl, preliminary expenses L 276 5s lOd, and writing down the Inch Clutha property by L 505 17s lOcl. In accordance with the articles of association, Messrs : Henry Clark, William Snow, and George Todd retire from the directory, but are | eligible for re-election. Mr R. H. Leary, the auditor, also retires, but is eligible for re-election." The Chairman, in moving the adoption of the report and balance-sheet spoke in most hopeful terms of the future of the company. Ho. pointed out that the business during the- past year showed 25 per cent, increase on the gross sales made by the company. He pointed out that if the business goes on increasing at the present rate it would be necessary to look out for larger premises. He had no fear they would be able to pay a dividend after 20.3 per share is written off. He concluded : — There has been a good deal of talk about this company selling out to a new cooperative company ; but I cannot see why we should sell out now., when we have brought, the company to a , paj'ing. point. If the farmers go in for a new company, they must have the premises and a staff of officials, as wo have, and I very much doufcfc'if they can run the business cheaper than we are doing now; I would specially urge shareholders ! hot to j cut their own : throats by running • another business against us, as I am informed a gentleman who professes to be a shareholder in this company (which he is not) has been proposing. I would ask our shareholders rather to give the present management of the -Mutual Company" a. fair trial. What I would Hka to see is some more of (Mir shares taken up by farmers, and so place the company in a strong position. If wo could place 5000 more shares, so as to give usLIOjOOO paid up capital and L 30 ,000 uncalled, we would increase our business, still, however, continuing on the safe lines we have laid down, and would not require to pay the bank so much for interest. I may, however state that the directors will ! be happy to give their careful consideration to any scheme which may be suggested to them for meeting the farmers and helping the farming interest. It has been our object to make the' Mutual .a true "farmers' company." We do not want to make large advances, however promising the contingent profits may seem ; but we want to be comfortably provided with funds to meet the safe requirements of our farming constituents, shareholders or otherwise. I mentioned at the last annual meeting that farmers -who have money to deposit should lodge it with the company, as we can afford to give them a better rate •of intoi'csfc than the. banks, and the security is undoubted, with L 15,000 of uncalled capital. We have had a few thousands on deposit last year, and we expect a good deal more this year. I know farmers are good at grumbling, but I think they are very well served at present, commission and storage charges being very low, considering the risks we have to take. Unions seem to be the order of the day, and I think the farmers have a perfect, right to unite to protect their own interests. . The best union for them is a company such as this, where they can do their business at the lowest ..possible cost, and secure any remaining profit for themselves. Mr John Findlay seconded the motion, .which was carried. ' The retiring directors and auditor were re-elected without opposition. The Chairman, in" reply to Mr Charters, said that the. company were prepared to give as, interest on deposits 5£ per cent, for money at call and 6 per cent, at six months. .--.■ ..,.-, „..,. [/A vote of thanks haying been accorded •to the chairman and the directors for his and their services during the past year, 1 the meeting terminated.