MEETINGS OF COMPANIES.

Otago Witness, Issue 2455, 3 April 1901, Page 8

MEETINGS OF COMPANIES.

(From Our Own Correspondent.) LONDON, February 23. NATIONAL MORTGAGE AND AGENCY COMPANY OF NEW ZEALAND. On the 13th inst., at Winchester House, Old Broad street, the twenty -fifth annuil meeting of shareholders in the National Mortgage and Agency Company of NewZealand w-as held. Mr H. R. Orenfell presided. In moving the adoption of the report and balance sheet, a summary of which 1 have already sent to you, the Chairman said the business had had considerable changes and fluctuations, seeing that when they started it, it was believed that it would be lucrative to have a mortgage business and a mercantile or agency busine=s too. The foundation of the profits of the concern was, in point of fact, really the mortgage business. Great changes i:a'l taken place, for the owners of ieal property in New Zealand found that they could obtain money at a cheaper rate, if they weie on the best secured estates, than 8 per cent., and it was a' so found more difficult to obtain the difference between the 6 and the 8 per cent, afterward than it was at first. That produced a great change in the mortgage business. With regard to the mercantile business, the Chairman explained that the company took over the business of Messrs Russell, Ritchie, and Co., and the partners of that eempany had ever sines more or less managed the business in New Zealand ; there was every reason to belies c that that transaction had been -\ery satisfactory to all. But a- time came when it was found that some of the debentures had to be renewed, and even at the very good rates then obtainable for them there was an unwillingness to renew those debentures ; that, therefore, was another change which occurred. The company had been eminently successful in paying oft a very large number of those debentures, and so reducing the amount of Ihem from upwards of £700,000 to what they now were. The company had cveiy reason to be contented with that slate of affaire, which had changed the business very much. The two things taken together had turned it fiom a mortgage and agency business to more- of a mercantile business, and the directors were pleased to have it so; that change had been effected without any very necessary loss to ! the shareholders. At one time they had i been otfiged to make c rail, which was | excellently well met, both in London and in the colony. It was true that they had [• used what was their first reserve hind ; , it had been used by so much in writing down : some of the real estate that had been made over to them, but the directors now had the satisfaction of knowing that they could go back, not to a special fund for estates about which there was some doubt, but to what could be termed a reserve fund in the real sense of the phrase. Next the Chairman dealt in detail with the accounts. An item which had appeared last year, that of the Three Springs Estate, had now entirely disappeared: it had been sold to the Government, and the loss upon it was slightly in excess of £3000 ; that sum had been entirely written off the accounts, and theie was nothing of it left in any shape whatever. The loans on mortgages and secured accounts were less than last yeai ; this indicated the diminution in the "mort- | gage business. Next came advances on wool and produce, including consignments in transit; these showed a large increase, from £50,000 to £135,000, which again indicated : the increase of the commercial business in | comparison with the mortgage business In the current accounts also there was an increase ! in the same way, which might be accounted for by the same reason. Then there were investments in sundry securities and shares in colonial companies ; on the whole, these investments had been good, and one company in which they had a large stake was Messrs Levin and Co. After making provision for bad and doubtful debts, the gross profit for the year was £58.896, against £58,563 ; this left a balance of £19,511 to dispose of. From that sum an interim dividend at the rate of 6i per cent, had already been paid, and the directors recommended the payment of a further dividend at the same rate, with a bonus of 6d per share, both free of income, tax, making 7^ per cent, for the year; adding £1180 to the leserve fund, which would thus I .be raised to £25,000, the balance of £4334would be carried over to next account. The Chairman went on to say that they had heard from shareholders and friends in the colony, who must know more than peop'.e here of what was being done in their business, that they were making offers of much higher price for shares than were made here This was a very satisfactory matter. The funds of the company were now used in advances to agriculturists or small farmers, from whom higher Tates of interest were obtainable, and, in addition, the capital was much more lir^iid than previously was the case. Referring to colonial prosperity generally, Mr Grenfell remarked that the irnprQvejnjen^ in New Zealand ljad been very remarkable during the past "two years; wool — the great staple— had had a great advance. Though during the past six months prices had fallen very much, there was little doubt that during 1899 and the first six. months of 1900 the greater part of two clips was sold an very satisfactory prices. The company had a great interest in the frozen mutton trade, as there was a freezing company under ita control. There was also another industry found in the South Island of New Zealand— that of gold dredging, which gave employment for a large number of men in building and manipulating the dredges. This company had had a good share of procuring machinery for the dredging companies. The Chairman then moved the adoption of the report and accounts, together with the proposed dividend aivl bonus The motion was seconded by Loid Ebuiv. 1 "Mr Law lenee tkea asked if the reserve lund

was pruticularlj earmarked as a re-civo fund, or wa« it u*ed in the general business of the company 1 ' Ho further ma'lo inquiries regarding ihp position of forfeited f-!iaro«; whether it was competent for any shareholders who had forfeited t' cir thaies to come and say that they would pay their cOls and t.tke back their shares In reply, the Chan man c aid that the rcpcrvo funJ was u-ccl in the busmen ; it wa3 goi. orally in tho biioircs, and, of eouihe. it might be used for tl.o payment of debenture', if iieceo°ary. As to the forfeited shares, they could not be claimed by tho old shareholders ; they had bocn forfeited for non-payment of calls. As to adding the forfeited bhaies to rescr\c fund, it could be done, but was not to be recommended. Mr W. B. Lee, an oiiginal rhareholder, said it reflected the greatest po'-nible credit on tho directors that they .should have found a way, by turning a gieat poition of their business into mercantile instead of mortgage bus. ness, oul of their difficulties, and had placed them in their present position. Hio friends, however, told him that thr expenses seemed perfectly enormous ; but if they could not be reduced there was no moro to be paid. Mr W. H. Bishop said that to him the most important matter appeared that they had been able to change irom one business to another with so small a cost in the way in which it had been effected. He thought it was a matter of congratulation. The resolution was then put to the meeting, and carried unanimously. Viscount Hampden and Mr William Soltau Davidson were then re-elected directors of the company. In reply, the latter said that the expenses, taking them all round, were really rather below what they had been in the past, in consideration of the larger number of branches now in existence. The increase of about £1000 was mainly accounted for by the increased income tax at home. Then in the colonies the expense was about £500 more than last year, which was accounted for by the increased number of employees owing to the extension of the commercial business. Mr Ritchie, general manager in the colony, took tin greatest care to work the company as economically as possible, and he did not think they really could take exception to the expenses. — (Hear, hear.) The auditors having been re-e'ected, a vote of thanks to the chairman, board, and colonial staff closed the proceedings. NELSON BROS. (LIMITED). Sir E. Montague Nelson had an agreeable task on Tuesday at the seventeenth annual meeting of Messrs Nelson Brop. In moving the adoption of the report, for he presided on the occasion, Sir Montague Nelson said he was pleased to state that at no period in the history of the company had it been in a more satisfactory and substantial position than at the present time. The precaution taken a year or two ago by the directors of writing down the capital £2 per share had proved a judicious one ; it had enabled them to pay a dividend, and had placed the company's assets on a satisfactory footing. He hoped that before long the company's shares would be of their nominal value — namely, £10. During the past 12 months the market for New Zealand meat had been higher than for a long time past ; in consequence of *he droughts of late years the shipments had 'lecreased. With reference to their new me it extract, Hipi (Maori for sheep), made from New Zealand mutton, the -chairman stated that _the directors felt sure that the trade would grow large, beeaiise the public welcomed this mutton essence as a change from the many beef extracts now so extensively advertised. 'In the report submitted ,*he directors state that the result of the year's trading, including the sum of £5286 18s brought from the previous year's account, has been a profit of £43,749. After deducting the interim dividends paid on August last of 3 per cent, on the preference shares and 2{ per cent, on the ordinary shares, there remained a balance of £32,243 19s, out of which the directors now recommend the payment of a final dividend of 3 per cent, on the preference shares (or 6 per cent, for the year) and of 3£ per cent, on the ordinary shares (or 6 per cent for the year), free of income tax, and then will lemain, after deducting transfer to reserve account, a balance of £6492. The directors then note that for the past 12 months the total supply of frozen mutton has fallen eliort of the previous year, the increased output of lamb from New Zealand and the continued drought in Australia being apparently responsible for the shortage. Prices here for the greater part of the period have been maintained at a satisfactory level. In the colony the new season has begun with stock at higher values than have been seen for some years past. The market for wool has been disappointing, in spite of the decreased imports, and there has been a general decline in values. The first see s of sales for the present year indicated ?n improvement to begrin with, but this has not been sustained. Prices realised for tallow have throughout been satisfactory The manager reports from New Zealand in a recent letter: — "All our landed properties arc a success, and at the present moment are a picture." The report was adopted, and dividends of 3 per cent, on the preference shares and 3£ per cent, on the ordinary shares were declared, making in each case 6 per cent, for the year.