INVESTMENT COMPANIES.

New Zealand Herald, Volume LXVI, Issue 20171, 4 February 1929, Page 7

INVESTMENT COMPANIES.

EQUITABLE'S DIVIDEND.

LOSS ON FARM MORTGAGES.

[by telegraph.—own correspondent.]

WELLINGTON. Saturday

The annual 'meeting of the Equitable Building and Investment Company was held yesterday, Sir Harold Beauchamp, chairman and managing director presiding.

In moving tho adoption of the report and balance-sheet, the chairman said the capital of tho company is £60,000. The reserve fund last year was depleted by the transfer to securities depreciation account of £13.700, reducing the reserve fund to £73.300. This year £IOOO has been added and tho fund now stands at £74,300. Deposits and interest are rather better at £231,638, compared with £221,432 last year. Mortgages and interest, less £14,000 held in securities depreciation account, amount to £348,330, as against the previous year's figure, £346,042. Ascertained losses on mortgage securities amounted to £8065, and to meet these £6OOO has been taken from the securities depreciation account. The gross profit for the year was £12,764 lis 2d, being nearly £7OO better than the previous year. After allowing for interim dividend paid in July and other provisions, there remained, with the amount brought forward, a balance of £7238 19s 2d, which tho board recommended should be appropriated as follows:—To payment of a further dividend of 5s a share, making 10s a share, for the year, £3000: transfer to reserve fund, £1000; to carry forward, £3238 19s 2d. "Of the £20,000 we set aside to meet possible losses on realisation of mortgage securities," said the chairman, "to provide for actual sustained losses, we haye been compelled to trench upon that reservation to the extent of £6OOO. That leaves £14,000 in suspense account, and I am afraid the whole of that sum. and probably an additional £IOOO or thereabouts, will be wanted before we are in a position to eliminate from our books losses sustained on the liquidation of advances to farmers who cannot meet their financial obligations." Sir Harold Beau-, champ added that tho majority of these advances were made many years ago and prior to 1926 interest on them was paid with almost unfailing regularity. With tho drop, however, in the value of primary products, the increased cost of production and other adverse conditions, farming became unprofitable and many farms were abandoned to mortgagees. In spite of these losses, he felt confident that on the safe and profitable business the company is now doing, it would have no difficulty in maintaining ,the dividend to which shareholders had been accustomed for so many years, namely, 10 per cent., free of tax.

The three retiring: directors, Sir Harold Beauchamp, Mr. W. Ferguson and Mr. D. W. Anderson, were re-elected. Messrs Bucholz and Wheeler were re-elected auditors. TRUST AND LOAN. FUTURE DIVIDEND POLICY. [BY TELEGRAPH.—OWN CORRESPONDENT. ] WELLINGTON, Saturday. The annual meeting of the Wellington Trust, Loan and Investment Company was held to-day. Mr. J. A. Plimmer, chairman of directors, presided. The chairman said the accounts showed a very satisfactory result. There had been a considerable increase in repayments and advances, and the company's funds had been invested on a good class of freehold security. Interest on mortgages had been punctually paid, and there'were no properties pn the company's books from foreclosures. Mr. Plimmer added that the directors proposed in'fnture to equalise the interim and final dividend, provided circumstances warrant it.

In the course of the discussion, the opinion was expressed that a slightly increased dividend might be paid. The chairman said lie thought' the time inopportune. The decision of the directors had been made after full consideration. Messrs. J. A. Plimmer and Dr. C. P. Knight, retiring directors, were re-elected, and Messrs. E. W. Hunt and G. F. Judd were reappointed auditors.

The company's dividend for the year is 8 per cent., of which 3,> per cent, was paid as the interim dividend.

AUSTRALIAN BANKING.

RETURNS FOR LAST QUARTER,

Australian and !N .Z. Press Association. (Received February 3. 5.5 D.m.) SYDNEY, Feb. 3

The Australian bank returns for the quarter ended December 31 show that deposits and advances increased considerably over the September quarter. Fixed deposits, £170,969,000, were £4,857,000 higher. Free deposits, £106,488,000, increased £3,400,000, while advances, £237,950,000, were £8,510,000 higher.

The returns are those of the eleven ordinary commercial banks, and aro exclusive of the Commonwealth Bank. The corresponding figures for the December quarter of 1827 were: —Fixed deposits, £160,970,307; free deposits, £104,645,072; advances, £233,962,200. THE ' A.P.A. ASSOCIATION. DIVIDEND OF FIVE PER, CENT. Australian and N.Z. Press Association. (Received February 3. 5.5 p.m.) SYDNEY, Feb. 3. Following completion of the merger between the Life Insurance Company of Australia, Limited, with the Australian Provincial Assurance Associttion, Limited, the .latter has issued a combined balance sheet for the year ended September 30 last. Savings in the cost of administration have been effected, but there has been a decrease in new business and surrenders. The new business totalled £588,000, carrying a premium income of £20.000.

Out of £193,000 at credit of the appropriation account, a dividend of fivo per cent, is recommended, absorbing £16,000, while £43,000 is allocated to the reserve.'

QUALITY OF CHEESE. AMENDED REGULATIONS. Tho -amended dairy regulations which permit of cheese made from standarised milk being shipped to England tinder tho national New Zealand fern leaf brand with the crates marked " Factory cheese, first grade,' 50 per cent, fat or over," are meeting with criticism in some parts of New Zealand. It is considered by tho critics that undue haste was ehown in gazetting the amended regulations, and that tho representatives of" tho dairy industry and others interested should havo been given an opportunity of expressing an opinion. ■

Tho directors of tho Rahotu Dairy Company, Taranaki, have passed the following resolutions:—" (a) The regulations are not sufficiently clear; (b) they have been adopted without adequate consideration by-the industry; (c) their adoption is calculated to damage Now Zealand produce on the London market." The directors of the Tisbury Dairy Company, Southland, havo resolved:— "That a protest be forwarded to the Dairy Division against the registering of standardised cheese factories, this company being of the opinion that all cheese manufactured should be ' whole milk ' cheese."