LOAN AND MERCANTILE AGENCY.

Otago Daily Times, Issue 20317, 27 January 1928, Page 7

LOAN AND MERCANTILE AGENCY.

ANNUAL MEETING IN LONDON. DIVIDEND RAISED TO ?i PER OENi. (From Our Own Correspondent.) LONDON, December 14. Mr Alfred Shepherd (chairman of the company) presided at the annual meeting of the New Zealand Loan and Mercantile Agency Company. Mr Shepherd, in addressing shareholders, referred to the drought in Central and Northern Queensland, and the very large losses in stock that had occurred. He was able to read a telegram, however, which reported that rains had lately fallen. The condition as regards New Zealand had not been so unsatisfactory. Beneficial rain fell in Hawke’s Bay and Poverty Bay early in the year, and materially assisted in the restoration of those provinces, which had greatly sui fered from a very dry spell experienced in the previous season. The greater part of the South Island was much in want of rain from January to May, which, among other things, adversely affected prices of live stock. During the winter the rainfall throughout the Dominion was above the average, which greatly improved the position, an abundance of spring and summer feed being assured. SITUATION IN QUEENSLAND. “ In connection with the situation in Queensland,” the chairman continued, “ one source of satisfaction is to be found in the recognition by the Government that the wool-growing industry requires ion sideiation in respect of tenures, rental, taxation, and other matters of vital importance. as shown by their appointment of the Land Settlement Advisory Board to report upon the position. The report of that board, which has now been issued, deals with the financial importance of the wool industry as far as Queensland is con cevned, and with the present financial position of the industry, and suggests the immediate review of all selection rents, stress being laid on the relation between rents and taxation.” The chairman also referred to the fact, just reported in the press, that following on the Advisory Board’s report, a Bill for the reform of the Land Department had been introduced into the Queensland Parliament. From the information given it appeared that the recommendations of the Advisory Board had been adopted with one exception, namely, the recommendation for the extension of the pastoral leases. In many quarters it was considered that the recommendations >f the board erred, if they erred at all, m recommending inadequate extensions and he feared that great disappointment would be felt if at least the conservative recommendations regarding the extension of leases were not adopted by the Government and passed into law. WOOL STATISTICS. Continuing, the Chairman said: “ Contrary to general expectations, the 1926-27 Australian wool clip showed a marked increase—334,ooo bales—as compared with the preceding season, the production in round figures being estimated at 2,712,000 bales, as against 2,373,000 bales for the like period of 1925-26. “ In New Zealand also the clip showed slight expansion, the production being returned at 587,000 bales, as against 585,910 bales. “ A good demand, both in the oversea markets and in London, was experienced throughout the 12 months, home trade operators, who at times were hampered by economic conditions in this country arising from the coal strike and other causes, taking a rather smaller share than in the previous year. France, Belgium, and Germany were again large operators, buying by the last-named section being on a much freer scale than at any time since pre-war conditions, whilst in Australia Japan gave useful support. In New Zealand the Home trade secured more than half of the offerings, Germany, France, and the United States being the .next largest operators. “ The total realised value of the Commonwealth clip is computed at £55,610,000, giving an average of £22 8s 5d per bale, as against £57,718,000 and £2l 14s 5d per bale, as against £57,718,000 and £2l 14s 9d respectively for the preceding season. “in New Zealand the figures were •F 9 208,000, being an average of £l7 18s 8d per bale for 1926-27, compared with £8,262,000, being an average of £l6 16s 8d per bale for 1926-27, compared with “In New Zealand the enhanced value is more marked than in the case of Australia, due to the fact that cross-bred wools appreciated to a greater extent than merino. WOOL HANDLED. “ Regarding the quantity of wool actually handled by your company during the period under review, the figures are: 292,243 bales, valued at £6,477,960, as compared with 304,010 bales of the value of £6,497,778 for the previous year. While the number of bales disposed of m Australia shows a decrease of 17.507 bales, it is right that I should explain that there was included in the figures 40,000 bales held over from the preceding clip. Allowing for this and the smaller quantity shipped to London, the company received in the Commonwealth for disposal 12,300 bales move than it received in the previous season. The quantity of wool disposed of by you* company in New Zealand was 50,64 bales, realising £850,000, against 44,»10 bales, realising £743,606, in the previous season. Including the consignments disposed of in London, the total quantity of wool handled by your company was 303,632 bales, of the value of £6 723,616, as against 324,49 b bales, of S; value of £7,045,248, in the corresponding period 1925-26. Mr Shepherd then quoted statistics lecardins flocks in Australia and New Zen land, and the wheat crop m Australia. NEW ZEALAND DAIRY BOARD. “ With reference to the dairy product conditions,” Mr Shepherd continued: > I may say that New Zealand and Australia suffered a setback during the past year, owing mainly to two causes, viz., ba markets in ‘ this country due to he prolonged industrial stoppage in 1925, ano the failure of an experiment in control of marketing, in the form of pnee fixation and the weekly limitation of offerings made by the New Zealand Dairy Produce Control Board, which not only signally failed to achieve the object aimed at but, even after the abandonment 31 price control, owing to the accumulation of stocks which had resulted therefrom, adversely affected the market during the rest of the season.” Mr C. L. Baillieu. a director of the company, had recently returned after a visit to' Australia and had been able to give valuable information with reference to the conditions prevailing there generally, as well as more particularly in connection with the conduct of the company s business. “ It is proposed that our manager. Mr Reid should again visit Australia and New'Zealand in connection with developments which are taking place. I can only repeat what 1 have said on former occasions—that our endeavour to keep .n closer touch with the Commonwealth and Dominion by visits from our local representatives there, and by visits of ou>manager to those parts, has resulted, and will, I am sure, continue to result, advantageously to your interests.” BALANCE SHEET. On the credit side of the balance sheet the cash with bankers, money at short notice, and investments at or under market value all showed considerable increases, aggregating together £248,134, ing in part the proceeds of the issue- of 6£ per cent, cumulative second preference, stock. Shares m other companies, bills receivable, etc., also'showed an increase, due to these accounts being of a fluctuating nature and varying from time to time.

Secured loans and other advances and current accounts showed an increase of £209,764, chiefly represented by advances on security of stations, stock, etc., and constituents' balances. On £he debit side of the balance sheet, the capital account had been increased by the creation of £500,000 6J. per centcumulative second preference stock. Txia other stocks and general reserve accounts and the mortgage stocks were unaltered. Bills payable and current account* showed an increase of £173,966, due to acceptances connected with the mercant/i* business, the balances due to clients ra-* lating to consign* ients, etc. Temporary loans were less by £220,886. After deducting from the gross revenue the administration expenses, taxes, the .'.'mount written off premises, and interest on the debenture stocks, the balance carried to the balance sheet was £13,351 greater than last year. In the directors’ j-epnrt a balance after ()a\ - ing interest, etc., of £148,991 was shown. This was an increase of over £13,000 compared with the sum brought into last year’s report. From this sura the directors have appropriated to tho staff benevolent fund £IO,OOO. the same as in the previous year. THE DIVIDENDS. Tiie interim dividends on the ordinary and 5 per cent, preference stocks paid in June last absorbed £55,000, an Jfhe balance, after adding the amount brought forward, showed a total of £129,278 to be dealt with, as against £110,286 last vear. Out of this sum there fell to be met the dividend paid on July 1 on the new 6£ per cent, cumulative second preference stock, amounting to £11,680, which did not appear in previous accounts. The directors recommended that, after payment of the usual dividend at the rate of 5 per cent, on the preference stock, a final divi. dend of 4£ per cent, should be paid on the ordinary stock, making 7£ per cent, for the year, as against 7 per cent, last year. “ I trust,” concluded the Chairman, that the stockholders will approve the action of the directors in recommending the small increase in the dividend on the ordinary stock. They considered the mat-, ter carefully, and, in view of the fact that in bad times the dividend on the ordinary stock had to be drastically reduced, felt that the figures shown in the balance sheet and revenue account for the past rear justified the recommendation of this modest increase.” The report and balance sheet were adopted. Mr W. W. Paine and Lord Ritchie of Dundee were re-elected directors, and the meeting closed with a vote of thanks to the chairman, directors, members of the local board, and the London and oversea staffs for their services during the past year.