UNION BANK OF AUSTRALIA

Otago Daily Times, Issue 14001, 6 September 1907, Page 6

UNION BANK OF AUSTRALIA

ANNUAL GENERAL MEETING. PROSPERITY AND PROGRESS. . (From: Our Owjt Correspondent.) LONDON, July 26. Mr Arthur Flower was in tho chair at the annual general meeting of the Union Bank of Australia, which was held this week at the office, 71 Cornhill. In tho course of his speech, tho Chairman referred to the presence in 'London of .Mr G. E. Tolhurst, their inspector in New Zealand, as also of their general menager, Mr Hallamorc, who was at present in England. The directors bad every reason to be pleased with tho present management and business of tho. hank in all its departments. He expressed the thanks of the board to the heads of tho bank and the staff generally, alike in Australia, New Zealand, and London.

Tlio Chairman montioned that among the appropriations 'now. made the £I'o,ooo to the bank's guarantee, and provident .• fund would be noticed, thus completing -.the £30,000. pointed i to by the actuaries ■ in their report, as called for. Thero had boon a serious decline in the value of many classes of securities _ during the interval since their last meeting, and in order to providp : . for all depredation to the present time in their investments, it had been found necessary to provide a sum of £60,000 for that purpose. He hoped that that might prove to be the lowest point to which it would be found necessary to go in tliat. direction. He felt sure that the increase of their reserve fund by £50,000 from the result" of the half-year would bo a matter of satisfaction to their shareholders, who, ho knew, held strong views on that subject. Ho.thought ho was safe in assuming that the continuance of a dividend and bonus at the 6ame rate as last half-year, together with the other appropriations mentioned, would bo regarded as the shareholders, as it certainly was by the directors, as most satisfactory. But, of course, those results had not been accomplished by means of tlio ordinary six months' banking profits, hut had been assisted to a material extent, by recoveries on account- of debts in respect to which the materially-improved conditions and prospects in Australia had obviated the necessity for provision previously called: for. So that to that extent those results were exceptional, so certainly wero tlio dividend and other appropriations. The directors had recently had the opportunity for full dis-cussion-of the bank's affairs with their general manager, Mr Hallamore. Turning to the accounts, tho. Chairman kept each half-year distinct. • Thus, in the present accounts it would be found that while their deposits had increased by £1,200,000, their advances wcro practically the same a 6 six months' ago. That followed a. decrease in deposits of £500,0 M and an increase .in advances of £900,000 in their last accounts. Their expenses showed an increaso of £4000 as compared with the previous six months, of which amount salaries accounted for £1500, the remainder being due to sundry items of expenditure connected with their business. Their liquid and readily-available, resources, as shown in the present accounts, consisted of specie on hand and cash balances, £3,307,000; bullion and advances on bullion, £182,000; money at call and short notice in London, £1,280,000; balance of remittances and drafts in transit and bills receivable at London office' £3,943,000; and investments, £1,774,000;—t0ta1, £10,4%,000 —represented, after deducting £1,000,000 for investments allowed to the reserve fund; some 8s 9d in the £ of all their liabilities in London and the colonics, consisting of circulation, £540,000; bills payable, £1,634,000; .and deposits, £19,368,000;— total, £21,524,000. Bank promises in the colonies stood after appropriation at the present time of £10,000, at £502,000, and showed a reduction of £11,000 in the six months.

Tiie motion for the adoption of the' report and balance sheet was seconded by Mr 'William 0. Gilchrist. Mr John Hedges said he considered that tho report presented was an excellent and satisfactory one. Australia and New Zealand had been very prosperous. The wool industry had increased in value by about 100 per cent., and the stocks, sher^ ! and everything had increased by millions. They had therefore fallen on very fortunate times. At the same time, lie wished to congratulate tho board as well as the proprietors oil tiie splendid two half-years they had experienced. He though that in these times it | was only right and proper that tho proprietors who were deriving an extra dividend should also think of those who wero devoting their lives to tie service of the bank. Ho was sure that they all thought a great deal of the directors, the managers, and the employees for the persevering manner in which they were looking after the business. Tho retiring direcors, Lord Hillingdon and Mr Arthur Flower, were unanimously re-eleced, and tie auditors were reapppihtdL • ' "

It was announced that the directors had declared a dividend at tho rate of 10 per cent: per annum, equal to 25s per 6hare, and n'bonus of. 2'per cent., equal to 10a per share, the dividend and bonus together amounting to 35s'por share, free'of income tax, and that tlio' warrants would bo transmitted on July 2i On behalf of his 00-direotors and himself, the Chairman 'thanked Mr Hedges for tho kind words, he had spoken in respect o£ tho board the staff and tho proprietors for. tho kindly manner in which they had received them, Ho was specially glad that the general -manager and inspector in New Zealand wore present to hear .the • remarks which had been made concerning tho staff as a whole. Ho oould only a-ssiiro the proprietors that they were cordially reciprocated by the Board of Directors.