NEW ZEALAND LOAN AND MERCANTILE, AGENCY CO.

Oamaru Mail, Volume X, Issue 4071, 28 March 1888, Page 3

NEW ZEALAND LOAN AND MERCANTILE, AGENCY CO.

The annual meeting of this company waa held on February 3rd at the Cannonstreflt Hovel, London. The Right Hon. A. J. Mundella, M.P., who presided, in moving the adoption cf the report, which recommended the payment of a dividend at the rate of 10 per cent, and a bonus of 5 per cent, which, with the interiin dividend, made 15 per cent for the year, congratulated the meeting on the light which the report and the balance-sheet threw upon the present position of the Australian colonies and of New Zealand, and said although in New Zaaland the return to prosperity had been leis marked than in Australia, there had been in that coloDy a decided return of confidence and Increased activity. Although New Zealand bad been passing through a time of severe trial and adversity, that adversity had not been without its use, for it had led to greater thrift and prudence in the administration of both pnblic and private affairs. The balance-sheet, which ended In the colony on the Ist of September and in this country on the 31st December, showed an increased earning power and increased profits" during the year. In 1886 the net earnings were L 57,899 ; last year they were L 69.567, an increase of nearly L 12.000. and while in 1886 they carried forward L 3600, they now carried forward L 15,053. In the balance-sheet there was an item " Company's premises, ■tores and plant, L 201.312," but since the close of the financial year their Melbourne manager had, after much negotiation, sold their premises in Collins-street In that city for L 200,000. Those premises stood In the Company' 4 books at L120.G00, leaving a net profit of LBO.OOO. If he were asked why did they sell those premises, bis reply would be that Collinsstreet bad become a great centre of business, and that It would be just as reasonable for them to have Btores for wool and produce in Caunou-Btreet and Cheapside as it was to have them now in Collinsstreet, Melbourne. They proposed to erect a plain bnilding near the railway station, where they conld carry on the business more efficiently and economically. They did not propose to deal with this LBO.OOO as profit, but that it should be held as a special fund to meet any contingencies, that might arise. The Chairman then read copious extracts from the reports of the managers in the different Australian colonies and in New Zealand, all of them sneaking of the season having been generally favorable, of good harvests, and of Increased activity in trade. He ■went on to say that some ontsiders had assumed that the Company's operations were exclusively confined to New Zealand. Until 1874 they were so, bnt in that year they decided to extend them to Australia, and the result had been that their mercantile busineo3 was rapidly becoming the largest part of their business, and so_far from their business being confined to New Zealand, 60 per cent, of their capital was used in the Australian colonies. The money they raised on debentures was used mainly in loans on mortgage of real estate, but their mercantile business had practically no limit except their own capacity, and it was annually growing. They began 23 years ago with debentures at 5, 6, and 7 per cent. They first paid off those at 7 per cent., then thoae at 6, and last year they paid off a considerable portion of those at 5 percent., and now they had come down to 4i and 4 per cent. Their mercantile business was the most profitable department of their business, and it conld be increased without adding proportionately to the expense. He thought there ought to be a capital specially provided for that business. It ought to be conducted not on loans, but on the capital of the company. He waa stating what was foreshadowing in the minds of the directors, but ha did not know what form it might take.—Sir J. Ferguson seconded the motion.—A discussion followed, in which Mr Worley suggested that the LBO,OOO profit on the sale of the Melbourne premises should be specially invested and used to equalise dividends, and Mr Lirkworthy, the managing director, said it would bo available for that purpose. The motion was unanimously passed, the retiring directors and auditors were re-elected, and thanks having been voted to tho chairman and directors, and to the Home and colonial staff, the meeting separated.—Daily News.