THE N.Z.L. AND M.A. COMPANY.

Otago Witness, Issue 2085, 8 February 1894, Page 13

THE N.Z.L. AND M.A. COMPANY.

London, February 2. At a meeting of the unsecured debentureholders in the New Zealand Loan and Mercantile Agency Company it was decided not to appoint a separate committee. Resolutions were passed expressing confidence in the Creditors' Committee and approval of the reconstruction scheme.

February 3. The speeches made at the creditors' meeting of the New Zealand Loan and Mercantile Agency Company declared that everything had been done to obtain further concessions from Baron Schroeder, who was master of the situation.

Mr Alexander Young, insisting that the reconstruction scheme was the best possible, completely changed the views of the meeting.

Mr Dawson stated that the committee had decided on entirely changing the system of management, and tbab few of the old directors would be on the new board.

(From Odh Own Correspondent.) 30 and 31 Fleet street, London, December 30. The official receiver has issued a summary of the statement of affairs in connection with the N.Z.L. and M.A. Company. Ifc 6hows gross liabilities £5,439,626, of which £2,250,403 are exppcted to rank, against estimated total assets £4,493,112, subject to claims of . debentureholders £1,377,010, and to a preferential debt of £3042, resulting in an estimated surplus, after meeting the liabilities of the company (subject to cost of liquidation), of £862,656. The nominal amount or unpaid capital liable to be called up is £3,137,357. From the observations of the official receiver and provisional liquidator (Mr C. J. Stewart) it appears that the aggregate liabilities are obviously overstated to the extent of £40,054, and that the directors have valued the assets at a figure which makes the company, without the assistance of uncalled capital, appear to be in a solvent condition, and they have prepared a statement, of which a summary is furnished, explaining the disappearance of the company's nominal reserves. The official receiver states that the company was registered on April 6, 1865, in England, and was formed, in the terms of the first prospectus, for the purpose of carrying on the business of flnanciog and mercantile agency in connection with pastoral properties, wool, &c. ; and it was pointed out that New Zealand, owing to the rapid increase of population and consequent development of trade, was a most inviting field for the establishment of such a business. The intended operations of the company were declared to be quite apart from legitimate banking business, which had proved to be unequal to meet the demands upon it throughout the colony. It was represented that the company would have a very close connection with the Bank of New Zealand, and by that means a business and connection would be at once obtained, and the province of Canterbury was indicated as the most favourable field for the operations of the company in relation to pastoral properties. The company, since the time of its formation, has extended its business very considerably, and at the end of last year it had, in addition to a head office at Portland House, Basinghall street, E.C., five branch offices in Australia and 22 branch offices and agencies in New Zealand (most of the branches having warehouses or stores connected with them), with correspondents elsewhere. The nominal capital of the company was originally £500,000, but was increased in February 1872 to £1,000,000, in March 1876 to £2,000,000, in February 1878 to £3,000,000, in July 1884 to £3,500,000, and in April 1888 to £4,500,000— a1l shares being of the nominal value of £25 each. The official receiver proceeds to give some details with reference to the issue of shares, and states that the number of shares on the London register is 101,788, including 20,000 fully paid. The dividends paid by the company have been : — For eight months ending December, 1865, 6 per cent. ; from 1866 to 1870, 10 per cent. ; from 1871 to 1874, 10 per cent., and a bonus of 2-£ per cent, each year ; from 1875 to 1888, 10 per cent, and a bonus of 5 per cent, each year ; from 1889 to 1892, 10 per cent, with a bonus. The official receiver observes that from preliminary inquiries which he has made it would appear that in the event of its being necessary to call up the whole of the uncalled capital there are many of the shareholders who could at present only be expected to meet their liabilities to a limited extent. The insolvency of the company is attributed to the absence of the customary banking facilities owing to the recent financial crisis in Australia, and to the consequent inability to realise assets which, under normal conditions, could readily have been disposed of. The official receiver proceeds to give details with reference to the issue of terminable and perpetual debentures and consolidated debenture stock, and says that on July 13 last, Mr Alexander Young was appointed receiver and manager for the debenture stockholders under the 1882 issue, and he is now in possession of, and dealing with, the assets of the company. The company has in a number of cases allowed commissions varying from g to 1 per cent, to agents for securing debenture and debenture stock investments. In the coarse of his remarks upon the statement of affairs the official receiver says that the company's premises in Australia and New Zealand (returned as an asset estimated to produce £353,294) represent about 20 warehouses and stores, land, and office premises. The amount must not be taken as immediately realisable; but it is stated that the valuation would be a fair one for the purpose of a going concern. Also that the book debts (£4,153,836) must be regarded to some extent as a doubtful asset. The official receiver asserts that the issue and conversion of debentures and debenture stock, to which he refers at some length, are matters as to which further inquiry may be deemed to be desirable, aud the question of applying for a public examination is being considered. He concludes by stating that a scheme of arrangement has been practically agreed to by the committee of creditore, but its i-sue is withheld pending the Fettltsmc-nt of an unforeseen difficulty which has arisen.

The Southland Education Board intends to take steps to inaugurate a technical school as soon as a site is obtained from Ihe School Commissioners for public school purposes.

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