SUMMARY FOR EUROPE.

Otago Daily Times, Issue 12564, 19 January 1903, Page 6

SUMMARY FOR EUROPE.

(Conliiicd from Supplement.) COMMERCIAL PROPERTY AND FINANCE COMPANY. The twenty-third annual meeting of the Corameroial Properly and Finance Company (Limited) was hold in tlic company's ofliees, Yogel street, on January 14. -Mr William Burnett, chairman of directors, presided, and tlioi'o were 17 other shareholders present. The report of the directors was as follows: Your directors submit, their annual report and statement ot accounts for the year ending the 30th September, 1902. The meeting is held later than usual as it was thought desirable to have the resolution for the reduction of the company's capital disposed of before calling the meeting. From the circular issued on 4lh November last shareholders would see that losses had arisen from fraud? of an exceptional nature. Your directors therefore thought it wise to recommend a. writing off of ths capital to the amount of 2s Gd per'shire upon the £i 10s shores, and 12« Gd upon the £1 10.1 shares. This reduction—carried by the shareholders and confirmed by the Supreme Court—places the company in a thoroughly sound and satisfactory condition, our securities and advances being now written down to a, sate and realisable vahte. , During the first part of last year's operations your directors though; it wise to adopt a conservative .policy, and did not press for business, and for a time a. considerable portion of the cempany's resources were idle. The net profit for the year amounts Jo £75S 183 Id, out ot which we recommend a dividend of 5 per cent, on the capital as standing at the date of tho balance sheet, which, with the balance bronght forward from last year, ■will leave a sum of £i 53 15s 9d to carry forward to tho new profit and loss account. During the latter part of the year, and the period sin:o the data of the bukncc sheet, the fm:ds of (lie company have beon fully employed in safe and profitable business. / The directors and shareholders have to regret ■ the los 3 sustained bj'the death during the year of Jlr Andrew Melville, a very old shareholder of tho company,' and for many years a. director of it, and who devoted much time aiid attention to the company's affairs. Directorate.—The vacancy caused by the death of Mr Melville was filled by the directors by the appointment of Mr James Arkle, whose term of. office will, \wder the articles of association, expire at the present, meeting, but who offers himself for re-election. Jlr William AVright retires fro-n the board by rotation, and he also offers himself for re-election. During Ida year llr James Hazlctt resigned his position as director on account of an intended visit to the Old Country, from which he has since returned. It is competent for the meeting to fill up the vacancy caused by Mr Hewlett's retirement, and he is eligible for re-elec-tion. Auditors.—Mes3:s James Brown and John Davic, the. auditors of the company, retire, and offer themselves for re-election. The Chairman, in moving the adoption of the report and balance sheet, said the shareholders might think the directors had been a. long time in meeting them, but it had to be remembered that they had had. a good deal to do. Resolutions were adopted and confirmed at n subsequent meeting, and after that Mr Justice Williams had to set aside a day for the placing before him of tho accounts and resolutions for confirmation, and when ono considered how finootbly things went through they should feel obliged to Mr Woodhouse for steering them clear of nil the little legal difficulties that often stood in the way of men when they got into tho meshes of the law. The manager and the staff also had to bo thanked for having the accounts in such a state tint on being presented to the court the judge saw at once that the course suggested by the directors, and confirmed by the shareholders, was the prop?r course to take. Since that time the company had done a. fair amount of profitable business, and as far as any man could eee they had fair weather in front of them.—(Hear, hear.) Mr T. T. Ritchie seconded the motion. At the annual meeting, he said, certain doubts were expressed, and to set these at rest a. proposal was made for a. committee to confer with the directors. The proposal did not meet with favour, but the necessity for ifc at the time was now proved by the recent writing down of capital to the extent of £3100. This hiving been accomplished with the sanction of the Supreme Court, the shareholders had reason to be at last fairly well' satisfied that the present balancesheet gave a reasonably''approximate statement of the actual position. Nevertheless, lie was very positive it would slill bo to their advantage, and would inspire confidence, give increased value to the shores, and prevent many timid shareholders from selling at 2s 6d or 3s when the intrinsic value of the shares was more than double, wore a. report obtained from two gentlemen of standing in commercial circles, with knowledge and practical experience, specially applied to an exhaustive examination of the company'* affairs. This would most undoubtedly at the present juncture be of more service and do mors to rehabilitate the company, not only in the public estimation, but also in the estimation of many of the shareholders, than would the declaration of a 10 per cent, dividend. He made the suggestion for the coiiFideration of the shareholders, hut would not move in thn matter further. Referring to the balance sheet, no experienced business man could study it without detecting the weak spot. The net profit was shown at £753 IBs 4d, and to earn that comparatively small sum an expenditure of £132+ 17s 3d wa* necessary. The point he wished to emphasise was this: the expenses of the company were out of all reasonable proportion to the net earnings. He was not prepared to say that any great reduction wns possible compatible with efficiency, but lie might point out. that even so small a saving as £225 would be 2£ per cent, on the reduced capital. Whether it was possible or not to reduce, expenses it was very clear that the directors should endeavour to transact a larger business. There were other classes of business that they ought to take up. For instance, why should they not lay themselves out to secure a share of land and estate atrency, auditing and accountants' work generally, and also an insurance agency? Doubtless many shareholders would gladly put business of the

kind indicated in tlie wav of tlie company. It was in such or other directions that they must look for some relief, nnd not alone to any mere extension of the advance business. The suggested extension in certain directions, if carried out, miirlit he found to conflict with the interests of individual shareholders, but, if so, these must give way, and the expansion of the comoany's business in every legitimate channel be the sole object of directors and manager. Tn conclusion, he said that possibly, on the assumption that the position of the company was for the time bring assured (so it was asserted last, year), there might be a feeling on the part of some shareholders against making any change*, and that for the snfce- of peace it might be as well to allow things to rpmain undisturbed nnd lo go on in the. old optimistic, hnppy-go.luekv style. Tf any considerable number held such views, they would be revealed before the mealing was over; but whatever divergence of opinion iniglit be found to exist, having; done their best to »ive effect to their r«nN>etive convictions, lot. them thereafter sink differences and (ret rid of any soreness nnd endeavour to mnkn the compinv a- grand siiocwf.—(Hear, hear.) The motion was carried. Mr G. Esther moved that Messrs W. Wrieht. J. Arklo (retiring directors), nnd .T. Hazlett be elected directors of the- com-, nany. Mr T. Hoodie seconded thn motion pro forma. The Chairman ruled that as Mr Fazlett had not been nominated «oveti days before thft meeting he was not oligiblo for election. Jfr .Tames Hunter moved as an amendment—'Thaft as nn imlicntion to fie lxinrd of directors tint, in tlw opinion of the shareholders, tho hitherto large annual expenditure is out of proportion to the volume of business transacted, this meeting resolves that the number of directors be restricted to three." Mr W. D. Hanlon 6oconded the amendment. Tlie amendment was supported by 11 votes to 2, and Mr Esther demanded a poll, which

resulted as follows:—For the motion, 1046 shares; against, 885 shares. The amendment was declared carried. Messra W. Burnett and T., Moodie »re at present directors of the company, and, in accordance with the resolution limiting the number to three, It was necessary to appoint another director.. -Mr Hunter proposed and Mr Hanlon seconded the nomination of Mr James Arkle, and Mr J. B. Thomson proposed and Mr Either eccondod the nomination of Mr W.. Wright. On a show of hands being taken Mr Arkle was declared elected. Mr Huntor proposed and Mr Chase seconded, that the remuneration to the directors ho £90 per annum, to be dividwl nmOng them; and Mr Wilson moved and Mr Esther seconded, as an amendment, that the amount bo £105. The amendment was lost and the motion carried. __. . Messrs Jamea Brown and John Da-vie were ro-eleeted auditors. Mr Esther moved and Mr Wright seconded that the remuneration to the auditors be £50 a year, or £25 each. Mr Hunter moved as an amendment and Mr Hnnlon seconded that the remuneration be reduced to £40. The .amendment was carried. On the motion of Mr Esther, eeconded by Mr Hunter, a vote of thanks was accorded tho directors and the officers for their services last year.