NATIONAL MORTGAGE AND AGENCY COMPANY

Otago Daily Times, Issue 21924, 8 April 1933, Page 15

NATIONAL MORTGAGE AND AGENCY COMPANY

ANNUAL MEETING (From Our Own Correspondent.) LONDON, March 2. Addressing the shareholders at the annual meeting of the National Mortgage and Agency Company of New Zealand yesterday, the chairman (viscount Hampden) first referred to the resignation of Sir James Mills who, he said, had been closely connected with the company during the whole of its history, and had been a director since 1919. The figures of the balance sheet, com tinued the chairman, might be considered satisfactory, especially those which disclosed the strong liquid cash position, a position so essential in these times of uncertainty. . . . , Debenture issue had been maintained, and showed an increase of some £30,000. Loans against securities showed _ a decrease of £121,000, which, taken in conjunction with the increase of £88,226 in the cash at bank and on deposit, added greatly to the strength of the liquid position. Sundry creditors showed a decrease of £23,169, due to various reasons. Premises, plant and furniture showed a decrease of £2942, accounted for by depreciation written off being in excess of expenditure. Goods on hand showed a decrease of £30,900. The directors were continuing the policy of not carrying more stocks than were necessary for the immediate requirements of the business. Loans on mortgages and secured accounts were decreased by £63,996, and current accounts by £42,479. ..This, to an extent, was due to the continued policy of caution pursued by the board, and to the efforts being made by the- farmer clients to meet: the existing depression. The directors had also considered it advisable to make further provision. Advances on wool and produce showed a small decrease of £6IOO. Investments in London showed a decrease of £62.924. It was considered advisable to realise the profit shown on some of the investments, a proportion of which was included in the gross profit for the year. Investments in New Zealand were increased by £11,165, due to a, purchase of Government securities. PROFIT AND LOSS. The balance shown in the profit and loss account was practically the same as last year, although the gross profit showed a reduction of £31,590. The. figure was arrived at after making provision for bad and doubtful debts, which last year was made by a direct transfer on the other side of the . account, Other items which went towards the maintenance of the balance was a decrease in -the _ charges of £6027, due to further economies, and no charge, for United Kingdom income tax. Land and income tax in New Zealand also showed a decrease of £5744. interest on debentures, however, showed an increase of £1503. ■ ■■ As regards the Longburn Freezing Works, in spite of the unprecedented collapse in meat prices which occurred during the year, and which reached the lowest point in October last, he was happy to say a small profit was shown on tne year’s operations. EXCHANGE RATE.

Referring to the rise in the exchange rate, the chairman continued:— • “Although still of the opinion which 1 expressed last year as to the doubtful wisdom of this policy, I realise the great difficulties under which the New Zealand farmer is labouring at the present time, and trust the benefit he should obtain from the depreciation of the New Zealand currency will more than compensate him, and the Dominion of New Zealand as well, for such disadvantages a* may accrue. ' . .“ I also recognise the heavy responsibility the present-day problems have laid upon the New Zealand Government, and that the step was only taken after the most careful consideration and in tne mterests of the Dominion as a whole. “It must not be forgotten that the prices the New Zealand farmer gets tor his produce depend mainly on the purchasing power of the people in this island, and that the more New Zealand can 'mpprt from here the more is our purchasing power increased. , “It may not be out of place | or , ,™ e to mention that, in view of the further heavy depreciation in the rate, the board has decided that, in fairness to the New Zealand shareholders, they should m future receive the New Zealand equivalent of sterling in the payment of their The* 1 chairman then read a telegram from the general manager: , , “Season very favourable throughout Dominion. Wool prices rather better than last year. Stock prices about same. Grain prices lower, but yield will be much heavier. Quality mutton lamb better. Company has maintained volume business, but lower prices affected profits. uur farmer clients great majority exhibiting pluck and determination, undergoing considerable hardship in endeavour to carry ° n “ I hope you will feel,” said Lord Hampden, “as I do, that this is an encouraging message. I believe our company is in a position to face and overcome any fresh difficulties that may arise. _We shall continue to conduct our business with extreme caution during this very difficult and uncertain period through which we arc passing. “I have again to express the boards sincere appreciation of the loyal and effective work of the company s staff, both in New Zealand and London. The responsibilities of a general manager in da vs such as we are now living are heavy, and we are grateful for the unsparing service Mr Ritchie gives to the company s affairs.” . , A The chairman then moved — That the report and accounts be received and adopted, and that a dividend at the rate of 5 per cent, per annum, free of income tax, be declared for the half-year ended September 30 last, mating, with the interim dividend, 5 per cent, for the year, and that the balance of £14,961 9s 8d be carried forward to next account. Mr H. J. Beswick and Lord Glenconner were re-elected directors of the company. Lieutenant-colonel D’Arcy Chaytor, in proposing a vote of thanks to the chairman and other directors, to the manager and the staff, both in London and New Zealand, said he still maintained substantial interests in farming in New Zealand, and he knew what the management aud staff were faced with. They had earned the thanks of shareholders in carrying through their work in the satisfactory way which had been revealed in the balance sheet. The fact that it was possible to reduce the item loans on mortgages in these times showed that the directors were pursuing a policy of caution. The shareholders would appreciate the efforts that had been made on their behalf.