NEW ZEALAND LOAM AND MERCANTILE AGENCY COMPANY.

Otago Witness, Issue 2808, 8 January 1908, Page 22

NEW ZEALAND LOAM AND MERCANTILE AGENCY COMPANY.

ANNUAL REPORT. LAND ASSOCIATION 1 . (FSO^I GUB OWH OoKRBSPOHDEHT.y LONDON,. November <&. On the sth pros, the annual meeting of the New Zealand Loan and Mercantile Agency Company is to be held in London, and the directors have just issued their report for the year ended SOth June", 1907." They -state) that after paying interest on the prior lieu, second and third debenture stocks, ancl adding £58,000 to reserve accounts (bringing the same up to £ 215,000), --there remains- tol credit- of profit and loss account, including! the balance brought forward, the ' sum ofi £6562. Of this the 4irectors recommend tha£ £6429 be applied" in payment of a diyidendl' at the rate of 5 per cent per annum, (lesav .income tax) on, the amount paid up on -thfifully' and partly paid shares of the company*, and that the balance of £132 bo. carried forj. ward. * The net .revenue , has . been arrivea at after distributing £4284 aa a bonus", to tha -staff and. writing £3356 off tEe 'Xtofi^xm' Sn=-7~ vestments, in, order" to" ".reduce them to.theiij' approximate .market value at June 30, 1907. , Since ,1897, .when under < the -scheme of that year the company's- capital account was rep organised the directors have from time io time been able- to' take advantage of the improved conditions " in Australia and Nevft Zealand to realise, a considerble" number o$ the properties which were handed over tot them by the old company. On balance "these realisations" have been effected at figures io advance of the -valuations of 1897, with the; result that there is a surplus in hand. Th<j directors feel that the time has now coma when they may safely transfer £100,000 putt of this surplus to * capital reserve account which "accordingly appears for the first time in the present balance sheet. The directorjp hope that, as further realisations' are effected they may be able to transfer additional sums to this account.

to this account. The weather conditions in Australia provecj favourable during the early part of '.he - year, but susequently, owing to the wanfj of sufficient rain some anxiety was caused as to fhe general pastoral conditions in the) Commonwsalth". Becent telegraphic advioes^ however, report good "general rains in Neijr South Wales and Victoria, while Queeas> land has also benefited to some extent.- 4£ portion of -6lie South Island of New 2ea* land also suffered for a considerable period ,from very dry weather, ~ which adversely affected the farming interests: The position of the wool market both at Home and i^ the colonies was, during the year undegreview, very favourable, and - values xulea* at a satisfactory level. < "-' .- r i- *-+■ During . the year the directors ' received] with regret Mr Malcolm Macphersop's resigA ration of the post of chief inspector of tl}s company for. New Zealand! "The board felfi that the appointment of 'a suitable successor was a matter of great importance to the cdm^ panyj and they are -glad to report that'theaj I were able to induce their colleague; Mr W^ E. - Russell, late London manager of She; National - Bank of Australasia, to. accept th# position. Mr Russell "took up his duties a$ Wellington at the. beginning of Julj* It it

Qfg-xiuary 8, 1908.

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poi proposed at present to fill Mr Eussell's ©eat on the board. 'Since" 1903 the directors have been cominitxed,- as soon aB the scheme for the purchase of the trustees' certificates had- been worked out to wind up the New Zealand Xand Association, if, after full consideration" the trustees for the- certificate-holders spid-for the second and third debenture stockholders of the company so required. During the year this matter las -been under the . most careful consideration of both the directors and the trustees, and the directors are ' glad to be able to report that, as the result of the many weighty arguments which they have been able to adduce in favour of the continuance of the Land Association as a separate company, the trustees have now eiven their assent to- that course, being Idopted. Mr Vesey G. M. Holt lias been s appointed a director of the association, and its registered office has been removed to 1 '"Coleman street. "~ ' ' The report- of the New Zealand Land" Association for the yem ended llarch 3 V -1907 states that tie trading and interest received resulted in. a-gross- profit, of -£31,020. The and other charges, including income tax, anrount to £3423, and the interest on- debenture stock --to £14,268. After deducting -these sums there remains a balance of profit of £13,329, of which £8427 las been applied in writing off the ba-ance -of the" New -Zealand Loan and Mercantile Agency Company's n trustees' certificates 'suspense account; leaving -£4902 to be xjarned forward." The directors have from tame -to time been to take advantage of the improved- -conditions in Australia and- New Zealand to realise some of their properties. -On balanoe these realisations have been 'effected »t figures' in advance of the valuation of 1901^ -with the result; that there is a --surplus in hand, which ias been increased -br the 'sale of^a property since; March 31. , "dot of" this surplus the n directors feet -that. they may safely transfer £75.000 to a capital reserve "account. ■ , -The-dtiectors report- -with regret the death Of Mr Jamea- Worley) one of . the auditors of the company. They have -appointed This son, Sir Sydney. H.=~Wo*ley, as joint auditor with .Messrs C. F. Kemp, Sons, and Co.