NEW ZEALAND LOAN AND MERCANTILE COMPANY.

New Zealand Herald, Volume IV, Issue 1144, 15 July 1867, Page 4

NEW ZEALAND LOAN AND MERCANTILE COMPANY.

The animal local meeting of the proprietors of this Company was held on Saturday at noon at the Company's office, Bank of New Zealand. There were present T. Russell Esq., president, Messrs. G-. B. Owen, C. J. Taylor. S. Browning, C. J. Stone, E. Sidings, and J. T. McKelvie. The Manager having read the advertisement convening the meeting, The Chatbitan said our duties to-day will not be very onerous, the principal communication between tho shareholders ana the directors takes place in London. There the accounts are presented and adopted, and transmitted to lis. The report for the past year has appeared in print. It will bo read and laid on the table for the information of tho meeting, under the articles of association. Our duties to-day will be to elect directors for the Colonial Board under the clauso 71 A, and to determine the numbers of directors of which the Colonial Board shall consist. That being done it will be for us to elect that number. While on this subject I may say that the Board of Directors in London consists of five members, inclusive of tho managing director. Mr. James Williamson being absent in England is disqualified by his absence, and Mr. Murdoch has Deen appointed in his place. There arc four other Directors, and it is the suggestion of the Board that they should be re-elected. The next duty will be to elect an Auditor. Tho Auditor may be elected by this meeting and tho remuneration may now be fi-sed, or you may leave that matter for another year. The duties of the Auditor at present are very few and simple, and therefore, perhaps it would be as well to leave the remuneration for another year, when tho extent of the Auditor's duties will bo more fully known. The Managing Director then read the follow, ing : — REPORT Presented to the Shareholders at the Second General Meeting held on the 4th of February, ISG7.

The Directors, in presenting their Second Annual Report, congratulate the Shareholders on the success which lias been attained. The annexed Balance-Sheet comprises all transactions o£ the Loudon Office up to the 31st December, IS6G, and in Hew Zealand to the 30th September. ISG6. After the payment of all expenses, Interest on Deposits, on Debentures, and on Guaranteed Mortgages, there is left a sum of £4,215 Is. Bd. at the credit of Profit and Loss Account, which, added to the sum of ,£2,010 divided as an Interim Dividend at Eight per cent, for the first six months, shows a total of £0,225 Is. Sd.—equal to about Twelve and a half per cent, per annum on the paid-up Capital of tho Company. Tho Directors propose for the approval of the Shareholders, that a Dividend at the rate of Twelve per cent, per annum for the Half-year bo now declared, which will make tlio distribution for tho whole year equal to Ten per cent-, or ±'5,025 ; and that the balance £1,200 Is. Sil. bo carried forward to a new account. The Directors are happy to state that tho amendments of tho Articles of Association passed by the general body of Shareholders in July last havo given entire satisfaction to the Colonial Shareholders, and that the business of the Company is now being prosecuted with vigour in the Colony, under the control of a highly inhuential Board The high rates of interest which have prevailed during the last twelve months havo interfered to some extent with the issue of Debentures, but the Directors have eveiy reason to expect, from tlio altered state of the Money Market, that considerable progress will be made in that branch of tho Company's business during the current year.

The desirability of reducing tho liability upon the Company's Shares, by increasing their number and decreasing their nominal value, has been pressed upon the Directors and has had their most attentive consideration; but the difficulties in the way of such a step are great, as the unanimous consent of the Debenture-holders of tho Company would have to be obtained. As the only practicable step open to them, the Directors propose for tho consideration of the Shareholders that they should havo the opportunity afforded them of paying up any portion of the unpaid liability upon their Shares, and that such prrp.-iymrmf;s should hnar interest, at Mi p. highest rate allowed by the Company for money deposited with them for long periods. It is necessary, however, to remark that Shares upon which the liabilityhas been reduced by such payments woidd not be readily negotiable in case of need, and that therefore it would only be 'advisable for Shareholders who propose to make a permanent invest.jent in the Company, to avail themselves of tho opportunity offered them.

In accordance with clause 70 of the Articles of Association, Mr. Emanuel Boutclicr retires from the Direction, but being eligible offers liirusel? for re-election. The Avditors, Messrs. Robert Tucker and W. P. Pattison, also retire; but, being eligible, .again offer their services. Robert Porter, Chairman. Balance Sheet of the New Zealand Loan and Mercantile Agency Company, Limited, to 30th. September, 18GG, for New Zealand, and to 31st December, 18C6, for London. m „ Dr. £ a . d. " £ s. d. To Capital, viz. :— 19,900 Shares, £2 10s. paid 49,750 0 0 100 Shares, £5 paid 500 0 0 50,250 0 0 „ Debentures issued, Deposits, Guaranteed Mortgages,'*&c 115,703 1G 11 „ Income Tax due 104 g q „ Net Profit for the year, after deducting all expenses and interest on Deposits, Loans, Debentures, & Mortgages 0,225 1 S ~ Less Dividend at 8 per cent, per ann., paid iu July 2,010 0 0

4,215 1 S £170,333 4 7 C}i. By Cash, Loans, and Investments.. 170,118 12 8 ~ Stationery on hand in London and New Zealand 214 11 11 £170,333 4 7 Profit and Loss Account. Dr. Commission, Exchange, and Interest „ l )ai<l 3,353 1 8 Expenses 2,753 10 7 Income Tax 97 3 4 Dividend paid in July 1....!'.'.'.'. 2,010 0 0 Balance, being net Profits 0,225 1 8 Less Dividend paicl as above 2,010 0 0 4,215 1 8 £12,429" 3 3 Cn. ~ Balance from last year 402 7 1 Commission, Interest, &c 11,930 10 2 £12,429 3 3 _ ' Expenses, viz:— Directors' Remuneration, Salaries, and Auditors' Fees .... n 07k q 4. Advertising % $ xnntmg aiid Stationery 77 5 1 Postages, Stamps for Debentures 59 15 11 Law and Notarial Charges S5 14 7 Suudry Incidental Expenses .... .109 9 4

£2,753 1G 7 Examined and found correct, Robebt Tucker, ) , W. P. Pattison, J Auditors. The CnAiB3rAN then on behalf of tho Board proposed that the Colonial Board should consist of five members for the time being. Seconded by Mr, G-. B. Owen, and carried. Mr. C. J. Tatlob proposed that the five directors whose term of office had expired be reelected, viz : Messrs. Henderson, Owen, Russell, Wnterston and Murdoch. Seconded by Mr. Bbowning, and carried.

It was then proposed by Mr. S. Beowning, seconded by Mr. C. J. Stone and carried, that Mr. (!. J. Taylor be the Auditor of the Company. Tho Chaibsian then said he might state gene-: rally with regard to the Company and its operations that they hoped at its future annual meeting to be able to give fuller accounts of their operations than at present. They had invested large sums of money on first class security, their aim being to obtain good security, in preference to a high rate of interest. They .had also investedlargely on freehold property in the South, and had also secured considerable consignments of wool to the Company in London. That was a kind of business they were most anxious to obtain. They anticipated from this source,' a good business to the Company. • The agency of the Company in England was thrown open to the wool-growers and consignors of wool, and afforded them advantages they could not secure by consignments to ordinary mercantile houses. There was the advantago of perfect : security, 1 afforded by tho Company's large and influential proprietary, combined with the lowest possible scales of charges. They wished. to' cultivate this business more than the investment on mortgage, they hoped thus to secure a good business for the Company and make the Institution at the same timo useful to the colony, introducing capital on moderate terms from England,and inducing capitalists in England to invest their money at a better rate of interest than could bd had at homo, while the share-! holders would also get a good dividend on their shares.

Mr. C. J. Taylob then proposed, " That a vote of thanks be given to tho Colonial Directors, for the trouble they have had in commencing the company's business in New Zealand." The motion was seconded by Mr. Ridings. Mr. Russell, on behalf of the Directors, thanked the meeting for their vote of thanks, and said thoy would continuo to forward the interests of tho Company to the utmost of their ability, looking more especially to securing consignments of wool as pointod out by Mr. Taylor. The meeting then terminated.