THE NEW ZEALAND LOAN & MERCANTILE AGENCY COMPANY, LIMITED..

Hawke's Bay Herald, Volume 14, Issue 1150, 6 May 1870, Page 2

THE NEW ZEALAND LOAN & MERCANTILE AGENCY COMPANY, LIMITED..

50, Oid Beoad Street, London, E.C. Minutes of Proceedings at the Fifth Annual, General Meeting of the Shareholders, held at No. 50, ' Old Broad Street, in the City of London, on the llth February, 1870, William Smellie Geahame, Esq., in the Chair. The Secretary; Mr W. J. Steele, read the advertisement convening the Meeting and the Minutes of the previous Meeting, held on the slh of February; 1869, which were confirmed. Tllo report, as follows, was tali en as read :— The Directors have much pleasure in presenting, for the approval of the Shareholders the Fifth Report of the operations of the .Company for the year ending 30th September, 1869, in the Colony, and 31st December, 1869, in London. , The net profit of the year, including, £1,281 0s lid brought from last year, after deducting all expenses, interest, commissions and income-tax, and writing off stationery and furniture accounts, amounts to £13,090 15s lOd, and tlio Directors propose that this sum should be apport : oned us follows, viz: — $o Dividend at 10 per cent, and Interest and Calls paid in - . - advance £6,505 15 1 To Reserve Fund 5,000 0 0 To bo carried forward 1,585 0 9 £13,090 15 10 —Of the above sum of £3,503 15;. Id., £3,253 0.?. 7il. was paid in July last by way of Interim Dividend to 30th June, thus leaving: £3,25 5 145. OJ. now to be distributed on the Share Capital of the Company. The Progress of the Company has been marked during the past year by the growing confidence of the public, in the security offered to investors, and by a considerable extension of its Agency connection , !The result in regard to profits have been more apparent were it not for the increased capital upon which dividend is payable, and the difficulty of procuring first-class investments iti the Colony at the rates hitherto secured. Notwithstanding the depression . which has characterized the Wool Market for the last two years, and the consequent depreciation in the value of all squatting properties in the Colony, the caution exercised by the Colonial Boar.l in lending only on properties with ample margin hasre-ultedm no loss of any kind having been incurred : nor is any anticipated; whilst the probability of a higher range of prices f >r Wool during the current year, and the prospect of the utilization for export of the fat stock of the Colony by some of the many methods of meat preservation, which arebninp perfected by experience, induce the hope that the time is not far distant when this important interest will at least be re-es-tablished on its former basis of prosperity. The consignments to the Company's care during the past year have exceeded 10.000 bales of wool, besides other descriptions of produce, and indicate that the Company is assuming an important position in connection with the commerce of the Colony. . The extension and success of the gold mines hi' the North Island of Now Zealand, coupled with a fast increasing population, are tending towards that Island's permanent pacification, and afford the ex- ' 'pectation that fresh fields may be found for the safe extension of the Company's operations. The formation of a Life Assurance and Annuity Society is in' contemplation, which it is proposed shall be affiliated to this Company by a working agreement for its management and the investment of its funds in the Colony on mutually beneficial terms. The Chairman-.— Gentlemen, I have been unexpectedly called upou to preside on this occasion from the unavoidable absence of the chairman appointed for the day, and therefore I claim your iiidulgcnce. (Hear, hear.) In proposing that tlio report, with the accompanying balance-sheet he received and adopted.it may be unnecessary for me to add one single word to what is contained in the report, further than to congratulate the Shareholders in the name of the Directors on the successful operations of the Company during the last twelve mouths. The balance-sheet and accounts are perfectly satisfactory to the Directors, and I think must lie equally gratifying to the Shareholders (Cheers), particularly as the year which has just passed has been one of a very remarkablo character so far as New Zealand is concerned, and the colony has gone through a very severe ordeal. There hsd been the native rebellion in the north, coupled with great commercial distress in the south. They suffered seriously from the diminished value of their main product, namely, wool, while' at the same time they had no outlet for the surplus stock. I think, however, I may say that these trying and troublous times are nearly at an end. The natives are getting tired of rebellion, while through the improvement in the wool market, there is a better prospect for the wool growers, and I hope that Professor Gamgee's " process will yet be successfully matured so as to enable them to take advantage of the great and increasing market for preserved meat in this country. If, indeed, it should prove successful, it will cause a revolution in the value of all the stock in the colony, while at the same time it will be a great boon to the people of England by reducing the present enormous price of all kinds of butchers' meat. I think, gentlemen, that with these prospects the silver lining to the cloud is distinctly visible, and I am quite sure that there will be a more prosperous lime foi' the colony during the ensuing. year. This is the fifth an; ual report, and it brings our transactions in the colony to a close up to the 30th of September, 1860, and in London to the 31st of December in the same year. But, although the Company has been in existence for five yoars or a little over, we have really only been in active operation for three years within the colony. In tlio first season in which wo commenced operations in the colony, we had only in the mercantile department consignments to the extent of 1,500 or I.GOO bales of woo), while in the following year weliad about O.OOObales consigned, and in the season which has just closed we had upwards of 10,000 bales* Now, I cannot but consider this as very satisfactory; (Hear, hear, and cheers) and, gentlemen, I see no reason if the interests of our constituents are well attended to on this hide, why this Company should not receive and pass through its hands one half of the whole produce of the wool of the colony, as well as ether articles of export. (Cheers.) The available balance which we shall now have to deal with, including £1,281 os. 11(1. brought from last year, after deducting all expenses, interest, commissions, and income tax, and writing off stationery and furniture accounts, amounts to £15,090 15s. 10d., and the Directors propose in this report to dispose of this amount; in the following manner :— To dividend at 10 per cent., and interest on calls paid in advance JE0.505 15s Id. to add £5,000 to the reserve fund, (Hear, hear,) and to carry forward the respectable balance of £1,585 0s 9d. One moiety of the £5,505, was paid in July last as an in- . teriin dividend, and the other will now be payable oivthe adoption of the report. You will observe by referring to the balance-sheet that we could out of our profits have actually paid a dividend at therato of 20 per cent., but we thought it far more advisable to increase the reserve fund by £5,000. and with this addition it now stands at £15,000. (Cheers.) In addition to our. other prospects," the vast discoveries of gold which have been made and developed ni the northern island will-I believe prove a great pacificator in New Zealand. Gold always works" wonders, and particularly in these cases, and at all events this great resource, coupled with the tact and the judicious management.of the natives by Mr M'Lean. will bring about a state of things which will avert all danger from the colony ; and I believe that if Mr. M'Lean is allowed to proceed in the course which he is now pursuing, he will bring about a permanont peace botwesn the natives and the colonists. Indeed, the first fruits arc already visible, for the last accounts which have been received are of a much more favourable character than those we nave Tiacl for many months past. (Heav, hear.) I hero is a groat field in the colony for emigration, and one which cannot easily be occupied for many years to come. Sir George Grey, I think, deserves tlio thanks of the colonists, as well as those of the people of the mother country, for his unwearied exertions in bringing before the British public the ~ advantages which will spring from an extended system or emigration to the British colonies. "We want, in the colony of New Zealand, the able bodied unemployed men that are swarming in Knglaud: Me want them, avid England wants to get rid of them. But however necessary this may be for the * people themselves, and for the colohv, there must ' be a guarantee on the part of the Government that thoy will in some way assist the Emigration Commissioners to carry out a scheme that would bo beneficial not only to the mother country, but to the colonies. In order to convince you that thore is a great field for industrious people in New Zealand, I may mention that one of the Now Zealand Commissioners just arrived in this country, told me the ?i ? r &$. a fa £ fc whs ? h , wiU s P eak fov ' itse!f ' namely, ' that children from eight, to twelve years of ago were' earning in New Zealand at the present moment no • less than 3s. per day for their labour in feediug the ty>x mills with the green loaves, which is a very simple process, but at the same tima it is one that requires labour. The Commissioner informed mo that in one family, to which he. particularly referred, there were three children at the ago I have mentioned, who wuve together earning no less than 363. ' per week. Now just compare that with the Dorsetshire farm labourer with his Bs. or 10s. or 12s. a

weeTc, out of which he has to support a wife and family.- How In uch better it would be to encourage a system of emigration than .to try tosuppo; t people by charity, or by the importation of cheap food from Australia or elsewhere, and so keep these people at home! when there is cheap food in abundaucu in the colony, and as much labour as they can sot then* hands to (hear,-- hear.) I cannot help thinking, ' though I do notwish in any way to go into tho political question of Now Zealandj that the colony has beVn most criieily treated by tho luiperial Government: ThatT may be a question open to dispute; but .looking at it; from a colonial point of view I cannot heli>. expressing my opinion that the colony has been tiruelly treated: The colonists of New Zeal.md ,are still Her Majesty's subjects, and they have done to. forfeit their rights privileges, y«.t when they implored assistance iv "a life and death struggle with a determined foe, they received the cold shoulder and were told in direct terms that no such assistance would be given, but that they must rely, upon themselves; The colonists are in every respect as loyal as tho people of England, and as a proof, of it, I would only ineution that during the time ths Patriotic Fund was established in Lngatid there was not a settlement in New Zealand that did nob contribute liberally towards it: Again* at the time of (tie cotton famine, when great distress oxisttd in Lancashire; one province aluiie furnished through my bands close upon £2000 as its contribu-tion-to the -relief of that distress; and six or seven other provinces contributed equally liberally (" Hear, hear"); Now 1 think such conduct on the part of a colony, not then in a flourishing condition, though not in distress, and With a small population, speaks volumes for the loyalty, as well as the good feeling of the colonists towards the mother country (cheeks)* Tlie retiring Directors on the present oc» casioh are Mr. James Williaiasoa and. Mr.- Boutcher; both of whom are eligible and olfer themselves for re-election; Tho only other matter of importance in the report is the paragraph referring to the contemplated formation of a Life Assurance and Annuity Society in connection with, or at all events to be-atfiliated in some way (to this company. It is. Suite in, the rough at present, but pur Managing tireotor, Mv. Larkworthy, will submit a statement, so far as the matter has progressed. It has, however, been under the seriousconsideration of tho Directors for some time, and its leading feature of advantage is, that in England sinrlar societies base their calculations nponaS percent, rate for the investment of their funds, while in the colony we can obtain either upon real security or Government securities, at least double that rate of interest. Hence the Company could offer advantages to its constituents which. wonld conduce to a large amount of business.' However, the whole matter is at present in embryo, aud will be made the subject of future consideration and explanation. ' Mi*. LABKwOETirtr.r-I must say that your Directors are justified in : regarding with some degree of pride the progress whichjias already been made in fulfilling the task they set themselves to perform *hen the Company was originally started. (Cheers. ) During the last four years you have had an annual dividend at the rate of 10 per- cent;, and at the same time we have been building up a respectable reserve fund for the purpose of meeting" any unforeseen contingencies which may happen here; after. As you are perfectly aware, our ti'ansactions in the colony may be classed under two heads : tho loaningof money and alii agency or commission business. Through the support of the public in this country oiir funds have been considerably increased during the last year, and we have been able to extend our advances in the colony. We have to regret, iioweverythafc.in consequence of lhe cheapness of money in this country and also the depression in the colony/ we havo hot been able to secure co high an average rate.of interest as we have been enabled to inform you of on previous occasions. Taking all the advances which have been made in the colony, the average rate of interest is something under 10 per cent., whereas before it amounted to something like 11 per cent.. You can quite understand that the falling off of bnedv two per cent, on the largo sums which we deal with, makes a very considerable difference iv the sum which would otherwise appear to our. credit under the head of 'profit in the balance sheet.- As to the safety of the loans which have been made we - have every reason to believe they are all perfectly good. In Auckland we havo invested about £80,000, in Christchurcb about £70,000, in Invercargill about £40.000, in Napier £3,000, in Wanganui £10,000,- in Nelson £5,000, in New Plymouth £15,000, in Pieton £2,000, and iv Otago about £13,000. ■' The annual interest we receive from them amounts to about £25,000, and out of that £25,000, in the report we received up to the 30th of September la>t it was stated that £1 ,501 only were in arrear, and since that date we have received advices informing us. that. £921 of. those arrears have been paid. (Cheers.) Under the head of agency and commission business we have an equally good talc to tell. In 186S the number of our constituents was 00, but last year it was 12a. In tho former year the value of the consignments to our care was in round numbers £100,000, in the latter they amounted to very close upon £200,000, and there is every reason to suppose they will go on increasing. Now as to the matter which is referred to in the report under the head of the formation of a Life Assurance and Annuity Society, I may say that it is not at all in contemplation to make the New Zealand Loan and Mercantile Agency Company into an Assurance Company, but to affiliate such a company to it. It will be arranged that this Company manage the business of the Assurance Society both here and in the colony, which it can well do without any very material increase to its staff. The Lite Association will bo able to charge its policy holders lower rates of premium than those current, and offer larger bonuses, arising from the cheap management and the comparatively high rate of interest secured by its connected with this -Company. I think it does pot require much more explanation to show that it is a mutually advautageous scheme. (Hear, hear). After some further remarks from shareholders, the Chairman put the motion for the adoption of the report aud balance-sheer, which was carried unanimously. Mr. Abraham, after some other remarks, said, — Persons connected with this Company and the Trust and Loan Company, ought to recollect that it is a distinguishing feature between themselves and all other financial companies, that we are affiliated, to two substantial banks that are competitors, and have the benefit of the kuowed^e and experien ce and counsel of the managers of those banks. The CHAiKMAisr.— I omitted, when stating the prospects of the colony, to refer you, as I intended, to one or two items of statistics which will satisfy you that the colony has nothing to fear for its future; In the year 1P67, the population was 218,000, it is now 240,000. In February last year, 087,01)0 acres were under crop, and the colonists possess 9,000,000 sheep, 300,000 head of cattle, and 65,000 horses. The population have also COO thrashing machines, 700 reaping machines, 12 steam ploughs and 28 steam harrows. - They produce annually 4,000,000 lbs. of butter, and 1,300,000 of cheese. The value of their export of wool amounts to £1,500,000, their export of gold to .£2,500,000, and of other products to- about £500,000 sterling, - When it is remembered that all these exports are produced by a population of something under 240,000. persons, I think it marvellous, and it promises much for the colony. A cordial vote of thanks to tho Chairman and Directorawas proposed by Mr. Abraham, arid carried by acclamation, and terminated the proceedings. '■•- .-.>.-...•■-