LOAN AND MERCANTILE.

New Zealand Herald, Volume XXXI, Issue 9490, 20 April 1894, Page 5

LOAN AND MERCANTILE.

THE POLICY OF THE NEW

BOARD.

COMMENTS OF THE FINANCIAL PRESS. Press Association.—Electric Telegraph.—Copyright. London, April 19. The policy of the new Board of directors of the New Zealand Loan and Mercantile Agency Company is favourably received in the city. Fair Play, commenting on the re-con-struction scheme, says Baron Sehroeder, who is master of the situation, has agreed to do his best to carry it out, if shareholders fulfil their part of the conditions. If the shareholders reject the scheme they will have to meet forced calls to the utmost extent of the liabilities, besides losing a magnificent business which is capable in competent hands of recovering past losses. If, on the other hand they accept the scheme, the calls will be deferred, the total amount will be reduced, the business will be preserved, and colonial exporters will have under their own control a valuable portion of their exports. Under the circumstances, Fair Play assumes the shareholders will not hesitate to accept the scheme, as they have absolutely nothing to losei but much to gain. It says the new Board of Directors, with Mr. Martin as chairman, and backed up by Baron Schroeder, contrasts favourably with the old directorate. The paper goes on to say it will be necessary to regain the good-will of shippers by reimbursing where possible those whose consignments were confiscated by having been merged in the general assets of the company after its suspension. In order to prevent a recurrence of such possibilities a clause should, it says, be inserted in the articles of association to provide that all such consignments or money arising therefrom, should be held in trust by the company as trustees for the consignees. Fair Play strongly commends this step to the consideration of the Board, and dwells on Mr, Martin's intimate relations with the powerful shipping companies. While on the question of shipping, it also urges that consideration should be given to the scheme for assisted emigration. In the cablegram dated London, April 17, referring to the Loan and Mercantile Agency Company, the last sentence should have read, " The company's bondholders of the 1879 issue are asking for a large representation on the Board."