New Zealand Loan and Mercantile Company.

Oamaru Mail, Volume XXII, Issue 6793, 19 January 1897, Page 1

New Zealand Loan and Mercantile Company.

ANNUAL MEETING.

The annual meeting of the New Zealand Loan and Mercantile Agency Company was held on December 4, Mr Edward Martin presiding. In moving the adoption of the report the Chairman said that the directors regretted that the result of the year's working had not been more satisfactory, but the causes of this—the drought in Australia and the snowstorms in New Zealand —had been manifestly beyond the control either of the directors or the officials. The drought in Australia had been one of the most severe on record, and as might have been expected, many of the company's properties, as well as those of its clients, suffered in consequence. An unfavorable season was likewise experienced in New Zealand, the winter of last season proving very severe in the South Island and causing considerable losses in stock. The whole of the losses experienced by the company owing to these unfavorable circumstances had been provided for out of the current year's profits, and this circumstance accounted for the shrinkage in the returns. Since the break up of the drought the season in Australia had, on the whole, been a fairly good one, and recent rains had allayed any fears of a recurrence of the unfavorable conditions which prevailed last year. Also, a good season was being experienced in New Zealand.

After commenting on the wool market, the frozen meat industry, etc., Mr Martin observed that the report explained that the assets were entered in the balancesheet, subject to the changes during the past two years, and to the reduction of L 307,781 therefrom for actual and contingent losses, at the same figures as in last balance-sheet. "I have heard," he went on to say, " the criticism passed upon clause 6 of the reporb that it may read as implying that further depreciation has taken place during the existence of the new company. This is not the case. The directors believe that the whole of the deficits referred to in that clause had occurred before the new company came into existence. We thought it right to insert the clause in our report, because we had not as yet seen our way to revise in the balance-sheet the values of these assets as taken over by us from thenld company. We have, therefore, dJfb with the question of the value of thi-assets in much the same manner as last year, having been advised by eminent counsel that we were justified in continuingto treat values as we did in the last balance-sheet, provided no dividends are paid, and statements similar to that in the report are made, setting forth the facts as they exist. Yet for practical and business reasons counsel recommend that this should not be done for an indefinite time, and that directors should, as soon as practicable, proceed to readjust the capital account. This is a matter which is receiving the most careful attention of the Board, but as yet they have not been able to see their way clear to deal with the subject."