THE MUTUAL AGENCY COMPANY (LIMITED).

Otago Witness, Issue 2253, 6 May 1897, Page 17

THE MUTUAL AGENCY COMPANY (LIMITED).

Au extraordinary general meeting of Vac shareholders was held on Thursday, the 29th ult,, at 11.30 a.m., about 40 shareholders being present.

Mr R. Wilson (the chairman of directors) said that he was pleased to meeb the shareholders, but would have liked to have seen a larger number present. However, 1 lac^e number cl" proxies had been sent *.o the directors, which they took as an expression of confideuc*, and was highly appreciated.

Mr j. B Reid then explained the details of the offer made by Messrs Dalgety and Co. (Limitea) to purchase the premises and business of the company, which the directors had accepted mVjsoc to the eoafinnation of ike shareholders —^sz :

3. To lakri over ihe premises ami goodwill of the company for the siinn of £9000.

2. To take over the plant and furniture at thp amount at which it stood iv tho books on 31st March last. 3. To take over all book debts considered good. 4. To take over any of the remaining assets they may require. The remaining ajssfca referred to site : 1. Dur.eclin Saleyttrd sharp's. 2. The Inchclutha property, heing the unsold portion known as Gordon's, faim. 3. The PortMolyneux property, known as Scott's farm. 4. Sections in the town of Balclutha on which it

was intended to build salayards.

5. Debentures Agiicnltural Hall Company. It was estimated that *fter realising the various properties belonging ho the compiuy above (referred U> a sum would be nvailstblo sufficient to pay 14s to 15i per share to the ordinary shareholders. This, added to the 4-a lOd per share returned to the original shareholders at the time of the amalgamation with "Reid, Maclean, and Co., would only leave a nominal loss on the original share capital. Hip reasons for recommending Usat this offer bu accepted weve as follow : — -First, commissions are now cut so tine that it in necessary to do a large business to cover working c-ipensea and provide for bad debus ; second, the company nob having the necessary amount of paid-np capital to conduct such a business, he did not consider it sound nuance to borrow money on deposit at six and 12 months, and lend it to farmers against stock »nd produce to come iv. At first sight the difforence in rateß of interest between borrowing aud lending locks like profitable business, and farmers are always sanguine that they will be able fco srspay their advances with the season's produce or sale of surplus stock, but in practice this was not the csse. and advances had to ba carried on from year to year, which to his mind proved beyond all manner of doubt that to use deposit money for such purposes was a very dftogerous policy indeed. Third, a call would not provide the necessary capital, for in » great many instances the amount per share sailed up would just be debited to shareholders' current accounts and the book debts increased accordingly. For the reasons mentioned he was satisfied that it was in the best interests of the shareholders that the sale to Messrs Dalgefcy and Co. (Limited) be confirmed, and when the resolution came before the meeting he would support it. The Chairman then moved the formal resolution — •' That the company be wound up voluntarily, under the provisions of "The Companies Acfc, 1832." The motion was seconded by Mr G. H. Gilroy, and carried unanimously.

Mr J. A. Anderson said he would like to take the opportunity of referring to an opinion which was prevalent among shareholders— that the amalgamation of the firm of Reid, Maclean, and Co. with the company had proved detrimental to its busineis. Such had not been the case, and his old colleagues would bear him out in stating that nearly the whole of the bad debts which had been, or were likely to be, incurred had come from the old Mutual accounts. He also wished to make it known to che shareholders that Messrs Reid and Maclean had behaved in the most handsome manner regarding their goodwill of £6000 in fully paid-up shires. They had agreed to forego their interest in this sum, although they were legally entitled to claim on the shares. He further st&tsd that, personally, he had received in bonuses and dividends a sum which, added to the dividend (which will be paid out of the assets), will* amount to more than the capital he had put into the company. Mr Snow and Mr John Reid (of Elderalie) expressed the opinion that the shareholders had acted wisely in accepting the offer made for the business of the company. The Chaibman thanked the shareholders for their attendance, and expressed the hope that they would all be loyal in giving their support to the purchasing firm (Messrs Dalgety and Co.), who had almost unlimited capital to assist the settlers. The meeting then closed.