FINANCE AND TRADE

New Zealand Mail, Issue 1732, 10 May 1905, Page 71 (Supplement)

FINANCE AND TRADE

The manager for Australasia of the China Traders’ Insurance Co., Ltd. y , and the Union Insurance Society of Canton, Ltd., in New Zealand, has received a cable message from the head offices ot the two companies, Hong Kong, to the effect that the mean-bonus to be paid to contributors of business for the year 1904 will be 171 per cent.

Regarding the mutualisation cf the Equitable Life Assurance Society, it may be mentioned that under the charter the rights of shareholders are specifically restricted to 7 per cent, inteiest on the £20,000 deposited with the Government on the establishment ot the society as required by law. Not only dees the assurance fund of over £07,000,00'} sterling belong to the policy holders, but also the surplus fund of over £16,000,000. Every asset or the society, with the single exception of the £20,000 deposited with the Government, is the property of the policy holders. The directors of the society have new decided in favour of a plan of mutualisation under which, policy holders shall have the right to elect a. majority of the directors, hut in no circumstances would the* shareholders be possessed of any vested interest, in the assets of the society the £29,000 Government deposit and 7 per cent, interest thereon per annum.

According to Eastern advices, Mr O'. Cramer, of the Co-operative Wholesale Society of England, is making an all round the world business trip that will bring him shortly in touch with New Zealand producers. The report and bal-ance-sheet of this society recently issued show that the turnover of the Co-operative Wholesale Society last year amounted to £19,809,196, showing an increase cf £476,054, or 2|- per cent, over 1993. The supplies from the society’s productive works were £3,320,179, an increase of £143,566, or 4.} per cent, over 1933. The net profit for the half year amounted to £192,602. The committee recommended a dividend to members of 4d in the pound, a dividend to non-members of 2d in the pound. The deposits and withdrawals in the banking department for the half-year amounted to £48,134,310, as against £45,683,740 for the corresponding period of last year. The profit amounts to £9917, and the reserve fund £68,900.

Private cables from New York state that steam rates to Australian and New Zealand ports are still quoted 15s, and this rate is likely to rule for some time, as. competition continues keen. Sail rates are still 10s, and much lower for dead-weiglit cargo. Plaster has been shipped down to 2s, and rosin to 3s 6d, wdule in some instances vessels have remained on their berths almqst unable to get stiffening. Although ifecam rates have remained at the levels mentioned since January, there appears to have been some discrepancy in quotations at this end. It is suggested that importers and indent or® should look up their documents on the past three months’ business and see if the steam rate ment i oned lias been ex ceeded.

The recent amalgamation of the two leading firms engaged in the Swiss milk industry, the Henri Nestle, of Vevey, and the Anglc-Siviss Condensed Milk Company, of Cham, throws considerable light on the profitable working of this business. It seems that for several years prior to the amalgamation the Nestle Company paid 100 ner cent, per annum to its proprietors on the capital invested. The Anglo-Swis's Company, in addition to annual large dividends, has paid within the last two years bonuses amounting to £4 per share on the £l6 paid up.

The annual appropriation statement for the year 1903-1904 is published in the “Gazette of India,” over the signature of Mr Cox, Controller and AuditorGeneral. It shows that the year closed with an actual surplus of £2,996,400, as compared with £-2,711,200, given in the earlier revised estimates. This is in addition to the provincial surplus of £1,195,300, which compares with £1,201,200 in the revised estimates. The actual financial position of the Government of India at the beginning of the year which is now current is thus shown by the audited figures to be even stronger than appeared from the revised estimates upon which Sir Fdward Law based his last budget statement.

DEPOSIT, MORTGAGE AND BUILDING ASSOCIATION.

THE RATE OF INTEREST.

T3ie fourth annual meeting of the Wellington Deposit, Mortgage, and Building Association was held in the Chamber of Commerce* on Tuesday evening. Mr W. H. P. Barber occupied the chair.

The report for the year ending March 31st states that the* net profit on the year’s business was £866 11s 7d, which, with the addition of £203 17s Id "brought forward from last, year, makes £IO7O 8s 8d available. The directors recommend that that amount be apT>lied as follows:—Payment of a dividend for the year at the rate of 5£ per cent-., absorbing £755 19s lOd, the

balance to be carried forward to next year’s account. During the year 10,835 shares were subscribed for and duly allotted, making the subscribed capital stand at £32,500. In moving the adoption of tli© report the chairman said that last year he had congratulated shareholders on the interest on mortgages, received and accrued, having doubled itself. They could not expect that to continue, but the increase during the past twelve months had been extremely good. East year the amount was £IO3B 9s Bd, this year it was £1548 14s Id, as nearly as possible 50 per cent, increase. On 31st March, 1904, the number of shares subscribed for was 21,665. this they were 32,500, and that number might be greater if they were content to allot further shares at par. Ihe amount of capital paid up on March 31st, 1904, was £10,424 10s, this year it was £15,557. Deposits and interest had increased from £B6ol 6s zd las. year to £10,466 Is 5d this year but the substantial increase was more than met the eye, because last year they held some large temporary deposits which had since been paid oft, so that a large increase of a permanent character liad taken place. The amount lent on mortgage, etc., last year was £20,134 16s lid; this year it was £27,010 10s, and lie could assure them that the directors considered those loans to ho of a very good description and perfectly safe. The expenses showed very little increase notwithstanding the large accession ot business and the net profit admitted of a dividend at the rate ot 5i- per cent, per annum, besides leaving £314 8s lOcl to be carried forward, which was £ll Jin 9d more than last year. The directors had under consideration the advisalneness of issuing shares, and on that question would like to have a recommendation from the meeting. A larger capital would attract deposits more freely, and the larger the volume ot business tlie company transacted the less would be the ratio of expenses to profit, lhe rates of interest on deposits had increased during the past year, the cause being the raising of rates by the Government Savings Bank. It would have been better for business generally if rates for deposits were reduced, and consequently rates for advances lowei. It was to he hoped that the element Savings Bank would shortiy induce its rates, as, if they (1( To banks and other financial companies would follow, and cheapei money all round would be the rule. The Bank of England rate was lower now than it- had been for the past two years, and it was difficult to find any real reason beyond what he had stated for high rates here. He asked for an expression ot opinion with regard to the issue ot furthei shares.

Mr Curtis thought that before they issued further shares they should give tho shareholders the option of pacing up on shares already issued. lhe chairman pointed out the uncalled capital was the best security for an institution such as theirs, and was tho best security” to the hank. Mr F. Swift proposed that the directors he empowered to dispose of the remainder c*£ the shares to the best advantage possible. As an amendment Mr Davidson moved: —-“That the balance of the shares ho offered to shareholders at par during a limited period to be decided by the directors and thereafter to the public.”—On being put to the meeting tho amendment was carried. Mr Ivl. Laing moved that the directors bo remunerated for their past services at tho rate of 10s lor each meeting attended respectively during the past year, and during the current year. An amendment moved by Mr F. Cohen, curtailing the remuneration to last year’s meetings only, was carried. The amount involved totalled £52. A further amendment, that a lump sum of £75 bo voted to the directors was not agreed to. Messrs W. Cable and C. Palliser were re-elected directors, and (Messrs Badham and Biss were appointed auditors at tho same remuneration as last year.