MORTGAGE CORPORATION

Northern Advocate, 19 July 1935, Page 4

MORTGAGE CORPORATION

DIRECTORS' FIRST MEETING MAJOR MATTERS. ■ TAKING OVER FROM THE STATE. ' LENDING RATE QUESTION. [Per Press Association. — Copyright J WELLINGTON, This Day. The first meeting of the Board of Directors of the Mortgage Corporation of New Zealand was held on Wednesday, there being present the chairman. Sir William Hunt, Messrs A. D. Park, T. N. Smallwood (joint managing directors), James Robertson (State director), G. A. Lewin, L. W. Nelson, C. Russell Smith (shareholders’ directors), and B. C. Ashwin, Assistant Secretary to the Treasury (ex-officio director). The ’'Hoii.' Adam Hamilton, acting •Minister of Finance, briefly addressed the board prior to the commencement of business. In an interview yesterday. Sir William .Hunt stated that matters oi major importance engaged the attention of the directors. The board was conferring, with the Minister of Fin- ; ance, Mr Coates, as■ to the terms up.-. the State advances and other Government mortgages were to be taken over by the corporation, and that as this was a financial transaction involving many millions of pounds it could not Jae expected that the details could be 1 settled without mature con-

sideration. Sir William added that this was the first step in the business-organisation ~6f- the corporation, and while the . board would naturally like to make a public announcement as to the lend-ing-rate of the corporation,- it regretted'that, until details in connection with'the transfer of State mortgages had been concluded it was not exactly practicable for the board to give final consideration to what its lending . ..rate.:would be. ’■'there was another and most im-.'■-portant-’aspect •- of the l corporation’s activities that,must also be concluded before the board would set its lend- . in'g rate. Sir William drew attention Vo the fact that the lending rate of the* corporation depended largely upv pn the rate of interest upon which the : corporation could borrow. He inti- ' mated that the board was considering the question of a debenture, isshe, and the lending rate depended upon the terms-of this. The directors felt that it would be premature at this early stage to fix a definite lending rate. Pleasing Progress. The directors were very pleased with the progress that had been made up to the present in preparations for taking over State advances mortgages by the corporation, said Sir William. The transaction alone would make the corporation one of the largest financial institutions in the Dominion, and the directors felt confident that with such a solid foundation the corporation must exert a powerful influence for the good of borrowers and lenders alike. “The board will make an announcement at the earliest possible date—probably in August—as to the lending rate decided upon and as to when the corporation will be in a position to accept applications for new loans,” Sir William Hunt added. “The corporation will arrange for its share to be listed on the . respective stock exchanges of the Dominion. Share certificates will be ready for issue this week and the corporation hopes to be in a position to accept transfers in the near future.”

' The board has appointed Mr G. E Miller, at present superintendent of the State Advances Office, to the position of manager of the corporation. Qther appointments were. —Mr F. E. Mitchell, at present Chief Inspector to the Treasury and Secretary of the Local Government Loans Board, to

the position of secretary and inspector to the corporation, and Mr K. J. J. Coverhill at present Deputy Superintendent of the State Advances Office to the position of chief accountant to the corporation.

The staff of the State Advances Office has been seconded for duty with the corporation, but it is the intention of the board of directors at an early date to consider the whole question of staff, with the view to making permanent appointments to the staff of the corporation.