COMMERCIAL.

New Zealand Herald, Volume XLVI, Issue 13948, 2 January 1909, Page 3

COMMERCIAL.

~——to. MESSRS DALGETY AND CO. MEETING OF SHAREHOLDERS. [FROM OPR OWN CORRESrONDKNT.] London, November 20. TESTEnnAV, at the offlceg of the company. BUhopsgate, 8.C.. the 24th annual meeting of Messrs. Dalgety and Co. took place, Mr. E. T. Doxat presiding. The Chairman summed up the chief factors affecting the working" of their business to June f , last as follows :—The severe financial crisis last autumn ill the United States, with a result, ing scarcity of money and high rates of interest in JMirope, a severe drought in parts of Australia—.New Zealand also suffering troin the same cause— and a heavy fall in the value of wool and most- other raw material*. The rise, in the value of money in the autumn did not materially affect the company, except through the contraction of trade which followed, and the fall in the value of goods; but the fact on profits of this lull might bo gauged by the fact that from the nigh rates ruling In September-October series of wool sales in 1907 the decline in November was m to 15 per cent., in January a further 5 to 10 per cent., in March a further 10 to 15 per cent., the lowest point being reached at, the opening of the May series, when the drop from the highest figures of the previous autumn was 30 per cent, on merinos, 35 per cent, on fine crossbreds, and as much as 50 per cent, on coarse crossbreds. When it was considered that they told annually some 300,000 to 360,000 bales of wool here and at the various Australian centres, the value of which might be roughly taken at about three and a-half millions sterling, it would be clearly seen that a decline, averaging during the whole season from July 1, 1907, to June 30, 1908, of, say, 20 to 25 per cent., or probably about £700,000, must have told seriously upon the commission earned, and in addition to this the fall in wool led to . largely-decreased earnings in all stock and station business, transactions in face of the drought and falling prices having been much reduced. Since June 30, however, the position had improved, fair rains having fallen in Australia, while in New Zealand (with the exception of some, heavy snowstorms ii the hill districts of the South causing a certain loss of sheep) the conditions were now favourable. Wool had also improved in value, both here and at the sales in Australia, and, the tendency seemed in favour ol a moderate further advance. For the profit hud loss account the only thing calling for notice was the Increase of the expenses by £4988, and it was as well to mention that those expenses were irrespective of those of the sub-branches, whose returns were taken as net. Considering that the expenses included those of the new branch opened in Auckland and additions to the staff, owing to increased business at other branches, the additional amount was not more than might be expected, and it included certain expenses consequent, on the visit to this side of two of their colonial managing directors, and £1000 additional for colonial audits —they had found it necessary to have every subbranch carefully audited—and the wide distances to be traversed by the auditors rendered the matter a costly one. 1 shareholder considered that the fact that the capital was £4,000,000 ought to be set out in the balance-sheet. It merely showed the capital at £5 11 share, £1,000,000. The Chairman thought, the accounts made it clear that while the, capital was £4,000,000, only £1,000,000 was paid up, and it was understood that with debentures and debenture stock issued no call could be made on the »hares, excepting for the purpose of extinguishing debentures. Messrs, J. Dowling, S. Fairbairn, and W. O. Gilchrist, the retiring directors, were re-elected. The auditors, .Messrs. Gerard Veil do Liudc, were also re-appointed. - AUSTRALIAN BANK CLEARANCES. By Telegraph.—Press Association.—Copyright. Melbourne, January 1. The bank clearances for the past, year totalled £221,354,000, which is £15,240,000 below the total of the previous year.