N.Z. LOAN AND MERCANTILE AGENCY COMPANY.

Evening Post, Volume LXVII, Issue 24, 29 January 1904, Page 2

N.Z. LOAN AND MERCANTILE AGENCY COMPANY.

m* - MEETING OF SHAREHOLDERS. THE TRUST-CERTIFICATES SCHEME. WARM DISCUSSION. (From Our Own Correspondent.) LONDON, 19th December. On Thursday, at Winchester House, Old Broad-street, E.C., a meeting of shareholders of the New Zealand Loan and Mercantile Agency Company was held. Mr." Dawes presided, and there was a good attendance. In moving the adoption of Iho roport and balance-sheet, the Chairman said the result of the past year's working was that after payment of interest on the prior lien and second debenture stocks there remained £392, which amount was carried forward to tho credit of the third debenture stock interest account, increasing that account to £1630. Some important changes in the control and management of tho company's affairs had taken Elaco in tho colonies during tho year, luring tho year local Boards had been appointed in Australia and Now Zealand. This step had beon contemplated for some time. Tho company's interests in tho colonies wore so great that in many important matters that camo before the directors for approval and sanction, if they had had, in addition to tho strong recommendation of officers, tho support and approval of somo independent gentlemen on tho spot, with knowledge of local conditions, tho business would have been inoro expeditiously proceeded with. Any delay in an important step was often dangerous, and as shareholders wero aware, lettors of explanation, etc., to and from tho colonies took a considerable tiino ; therefore, the, local Board* had been formed. To bring this, Mr. Laing went out to tut colq-

nies, and while there visited tho different branches of the company's business. Mr. I Worley, one (if the company's auditors, ulso went out to assist Mr. Laing in his inspection, and as auditor. Mr. Worley's investigation was very complete and thorough, and showed that the system of accounts, with some email changes, was quite satisfactory. Mr. Laing was pleased to find the company's staff so able and energetic, all taking the keenest interest in the success and welfuro of the company. ( Mr. Macpherson, the senior officer in i New Zealand, had been Home this summer and autumn on a visit, and after many business discussions with him, the directors realised bis strength of charac- . tor, and that his whole mind and ambition wore directed to make a success of tho company in New Zealand. The company had good cause to be grateful to Mr. Macpherson and the branch managers in New Zealand, as, during the anxious years of drought in J Australia, the New Zealand earnings had been most oppor- j tune as a set-off against the bud times in Australia. The losses had been enormous, | and though they had been provided for ' out of profits (as otherwise a. part of the capital wpuld have disappeared) it would take time for the natural increase of tho (locks to approach the numbers before the drought, hutf not so long as might bo expected, the greater number of sheep saved being the more valuable breeding owes. Shareholders must not, however, fancy that all troubles were immediately over by tho cessation of tho drought. On tho other hand, ho could most heartily congratulate shareholders on the complete break-up and upon the reports recently loceived of abundant feed and good crops. The decrease in tho wool'clip from Australia for the last season was 280,000 bales, but there was some compensation for that in tho higher values obtainable, us the average value of a bale of wool was £2, 10s greater than for tho preceding year. Again, Now Zealand had assisted with an even larger revenue than last year, the conditions having been favourable. Turning to tho bulance-sheet, tho Chairman said thut the figures relating to capital and debenture stock were practically unchanged. Current accounts ' showed an increase of £10,786, and tho j bills payable were £44,269 more. New Zealand Land Association, £143,516 a» j against £108,214 last year, was increased j by £36,303, wbjch represented receipts from sales of stock and other capital realisations. The third debenture- stock jnj tercst account was increased by £392 ; the total sum at the credit of that account I was now £1630. Tho reserve account and suspense account had been combined. Contingeut liabilities were very slightly in- i creased. On tho credit side, cuftli with bankers, loans at short notice, etc., had increased by, say, £109,000. Under that ] heading would bo observed an investment in Exchequer Bonds to tho extent of £100,312. Bills receivable had increased by .813,645, and advances on wool and produce on hand and afloat were £56,902 more. Secured loans and other advances showed a small increase of £14,827. Properties and stock belonging to tho company were decreased by tho sum of £19,495, through certain properties having beun sold and the proceeds of such sales represented, the difference. Tho company s offices, etc., were increased by £5131. That was expenditure in connection with the acquirement of stock saleyards and premises which it had been neoeasary to purchase in order to meet the growing business of the company in New Zealand in connection with the sale of live stock. The total figures under the honds of New Zealand Land Association and debenture stocks held by the coinpan> remained unchanged. Merchandise, stationery and stamps were decreased by £25,696, and current accounts had also decreased by £63,595. Dealing with tho profit and lo&a account, tho Chairman said that charge account was nlightly leas. Tho revenue was some £4000 less, but in view of the 'effects of tho drought and tho terrible loss of sheep, tho result might bo considered favourable. The question of uew premises had been before tho Board for some time, and the- directors had secured the lease of 1, Colemanfctroet, on what they considered advantageous ternw. Ho then moved the adoption of tho report. This motion waa seconded by, Mr. Garrctt. Dr. Moody, complained that the Chairman mid- Secretary had persisted, in refusing him access to the accounts of the Now Zeqliuid Land Association. Ho tlten \v<att' ou to, rend correspondence dating from 1901. 'This was received with cries of "Ancient history," and "Don't waste time-." Passing on, J)r. Moody turned his back on the Chairman and continued to speak, amid cries of "Chair !" and prott\s>ts from tho reporters. Dr. Moody said ho wanted to epeak to tho shareholders, and not to the reporters. (Cries of "Business" and "Chair.") He impressed upon shareholders tho necessity of giving tho fullest information as to the account*, and complained of the enormous law costs on. schemes from which nothing came. Tho «chome for redeeming preference shares, ho complained, wus waste paper, yivo eminent counsel hud been engaged upon it, and yet tho Law Courts would not allow it. All this was waste of money. Ho proceeded amid calls of "Time," to cay that the shareholders wero called upon to. pay heavy sums to get rid of their shares/ It was a^ most urgent mutter that tho Lund Association should be absorbed by tho company. Ho niovod that tho meeting stand adjourned until 14th January next, and that tho directors submit full details of tho charges accounts to tho shareholders before that da to. Mr. Parrer seconded Dr. Moody's amendment. Dr. Moody then procoedod tt> read his amendment ugain. He, however, in mistake, road a resolution which he had prepared to move against the preference certificate scheme. This was received with loud Uughter and cries of "You have let tho cat out of the bag." The amendment was rejected, and the report passed. Air. W. C. Dawes and Mr. Russell wero then re-elected directors, and tho auditors wero re-appointed. A special meeting was then hold for the purpose of considering and if thought (it approving a Parliamentary Bill dealing with tho trustee certificates. Tho Chairman vnioved a resolution approving Iho Bill, which mainly provided for tho surrender of tho trustee- certificates at 2s per certificate; concurrently trustees' preference shares to be reduced to the lovel of ordinary shares; and in lieu of 10,000 trustees' preference shares of £1 thero should bo 20,000 ordinary shares of 10s. Dr. Moody contended that tho scheme was the identical ono that had beon refused sanction to by tho Court because it was co inequitable. There was not the least clianco of the BUI going through. (Cries of "Don't prophesy !" and "That is your opinion.") Ho moved an amendment to the effect thut tho mooting was of opinion that Parliament Mould not sanction a scheme unless it provided for tho payment

of 10a per certificate. (A voice in an astounded tone : "Good gracious me !" and loud laughter). Mr. Puyne (Solicitor) said Dr. Moody had entirely misrepresented what the Court of Appeal had suid. Dr. Moody ugain rose, and was greeted with cries of "Sit down," and "You are a nuisance!" Mr. Payne said the scheme had eimply not been accepted by the Court for technical reasons. Mr. Farrer seconded Dr. Moody'a amendment. Mr. Vezey seconded the motion. On being put to the voto only ,ro voted for the amendment, the motion being agreed to by a large majority