N.M. AND A. COMPANY OF NEW ZEALAND

Otago Witness, Issue 2663, 29 March 1905, Page 10

N.M. AND A. COMPANY OF NEW ZEALAND

MEETING OF SHAREHOLDERS (Fbom. Otjb Own Correspondent.)

LONDON, February 11

On Wednesday last, at Winchester House,

Old Broad street, the annual meeting of shareholders in the National Mortgage and Agency Company of New Zealand was held. Viscount Hampden was in the chair. I have already

sent you the directors' report. In moving its

adoption, together with that of the balance sheet, the Chairman said the accounts allowed of the payment of a dividend at the rate of 7§ per cent, per annum, with a bonus of 6d per share, both tax free, making, with the interim dividend, 8| per cent, for the year, leaving £7400 to be carried forward. During the 12 months ended September 30 last, the chairman went on to say, New Zealand had enjoyed prosperity, the prices of the main articles of export — meat and wool — had been very satisfactory. This condition of things

had benefited the company, and the balance

of profit last year was £8000 more than was obtained in the previous year. This balance of profit had bsen carried to the increase of t^ie reserve fund — a policy which he stated at their two last meetings had been adopted by the directors with the view of augmenting the reserve fund to at least £100,000 before they considered the question of increasing the dividend, 'i'he shareholders must be prepared, he thought, for an increase in the company's charges. In all probability, with a view of carrying on the business and meeting, compeiii tion, they would have to appoint in the colony travelling agents, who would bring them more into touch with the small traders and occupiers, whose requirements were best ascertained by personal communication. Prosperity was still with New Zealand, and there was every prospect of a very successful year, but this state of things could not be expected to continue indefinitely, and, therefore, the directors asked the shareholders to support them in continuing a policy of caution so that, in the event of prices falling, as they must do, the company would ba able to meet the position with the equanimity which was sure to follow on the possession of ample reserves. Turning next to the balance sheet, the chairman remarked that the item of " debentures issued " was slightly less. The reserve fund stood at £55,000, and the directors proposed this year to add £10,000 to it out of profits, as against £7000 in the previous year. The in-

crease on the other side of the balance sheet

in " premises, plant, and furniture " was owing to a considerable extension of their business premises at Dunedin. The loans on mortgages, secured accounts, and property held exhibited an increase, but this was merely in the course of the company's business. The

advances on wool and produce, including con-

signnients in transit, also stood higher ; there were more consignments unrealised at the date of the balance sheet. The current accounts were trade accounts — advances on produce, — and they were well spread. The cash at bankers and investments showed a, considerable decrease owing to the fact that more modey had been employed in the colony. The motion for the adoption of the report wos seconded by Lord Ebury. One of the directors — Mr William S. Davidson — observed that he was in New Zealand about a year ago. The prosperity of the

colony was largely owing to a combination

of events which had helped it very much in the last three or four years. The war in South Africa and the drought in Australia had increased the demand for New Zealand produce, and the farmers had saved money and had in-

creased their holdings.

The eSect of cutting

up the land in the colony for closer settlement had caused the company to have on their bocks hundreds of accounts now instead of only a few dozen, and their risks were thus much niore scattered. Wliexi lie was in NewZealand he interviewed the branch managers,

and asked them about the various accounts

under their control, and he was well satisfied with all that he saw and heard. If there was

a doubtful account here and there it had been very well provided for in this country, and he did not anticipate any loss. Taking the company as a whole, Mr Davidson said he thought it could be safely said that it was never in a stronger position than it was at the present time ; in fact, he did not believe that it was ever in such a strong position^ Mr Grenfell seconded the adoption of the report, which was agreed to. Lord Ebury and Mr Grenfell were re-elected to the board. Votes of thanks to the direc-

tors and the ofueials brought the proceedings to a close.