N.Z. LOAN AND MERCANTILE

Otago Witness, Issue 2809, 15 January 1908, Page 21

N.Z. LOAN AND MERCANTILE

AGENCf* COMPANY.

ANNUAL. MEETING.

SATISFACTORY RESULTS.

(Fhom Oub Own Correspondent.) LONDON, December 6. Already I have sent you the report issued by the New Zealand Loan and Mercantile , Agency Company, which was presented at j the thirteenth annual general meeting, held ' yesterday afternoon at the' company's offices, 1 Coleman street

In the absence of Mr W. C. Dawes, who is on a visit to New Zealand and Australia, the chair was occupied byi Mr Warrington Laing, ' who,' in moving the adoption of the report and "accounts, remarked that the document showetJl the results of th© year's wording to harfi > been satisfactory. After paying- interest, on the different classes of debenture stock and carrying forward £58,000 to reserve accounts (bringing these up to £215,000), there remained to the credit of profit and loss ac« count £6562. From this amount the directors recommended the payment of a divi'

dend of 5 per cent., leaving a balance of £132 to be oarriea forward. The net revenue had been arrived at after making full provision for bed and doubtful accounts and writing off London investments (£9956) in order to bring them to their approximate ina-rket value at the 30th June. Since the reorganisation of the capital of iie co ran any «x 1897, the ch*irman> said a

number of properties had been sold at prices ■which in the aggoreg&te left a substantial surplus over the valuation then made. Applause greeted his statement that from this surplus the board had considered it could now safely transfer £100,000 to a reserve ear-marked as capital reserve account, inasmuch as th-a writings down in connection '

•with the reorganisation were provided from capital. _ There were other properties still to be sold, and the directors tad every hop© that the capital reserve account -would be further increased from these realisations. In any case the board felt assured that the amount ■which they represented was fully covered. The properties of the New Zealand. Land

f Association had been dealt with in a some- * ■what similar manner, and they had. been able to transfer in its accounts to a " capital reserve account " from the surplus of realisations an amount of £75,000. The Loan Company now had reserves totalling £315,000, and theoje was, in addition, the further sum of £75,000 at capital reserve account of the Land Association. The policy of building up a strong reserve was one which the direotors felt would have the approval of the shareholders for reasons which were obvious. In their company, where the proportion of the paid-up capital ■was so small and the shareholders' liability so great, such, a policy was specially important. During the greater portion of the year under review the weather conditions n* Australia continued to be favourable, and business very satisfactory. Thore was a marked increase in the number of sheep and in the wool clip ; 'the harvest was a bountiful one, and exports of frozen meat— moro paiticulp.rly of sheep and . lambs — reached high figures, while tho dairying industry showed marked extension, especially in the State of Que-ensland. The position of the woql market, both here amd in the colonies, was satisfactory, and. notwithstanding the increase in quantity, values ruled; at a high j level, which conditions were probably assisted by a greater demand, consequent on the continuance of general trade prosperity in this country and abroad. Fox most of the other descriptions of Australian produce satisfactory prices also ruled. The wool and produce handled by the company for its con— [ etrfcuents showed a satisfactory increase, and tho larger commission earned had made itself felt in this year's accounts. Later on, however, the season was less favourable, and a prolonged period of dry weather gave pas- . storalists cause for anxiety. Within the past month, however, reports had been received of good rains having fallen, which seemed to have been pretty general throughout -the different States. The spell of dry weather had made itself felt, howeveT, and instead of th« progressive increase in the clip, which j might have continued, there had been losses of stock, and a decrease of the current year's clip, estimated at from 80,000 to 100,000 bale 3, was forecasted. Prices, moreover, at the sales of the new season's clip, both in London and in Australia, marked a substantial i reduction, doubtless due to -joane extent to the disturbance of credit " arrangements | caused by the financial stringency which had I existed for some little time, and still continued. If unfavourable seasons came, however, the company had never been in a strongi&r position to withstand the effects tha.n it was at present. With regard to New Zealand. Mr "Warrington Laing said that the conditions had been on the whole satisfactory, although the South Island experienced a considerable period 1 of exceptionally dry weather. In certain parts of the North Island, on the other hand, there had been heavy floods, causing some damage. The returns from the company's ibusiness in the Dominion had, however, been satisfactory. Agencies had been opened during the year in three new districts and a branch office in one. One of the most important paragraphs in their report waa that dealing with the continuance o£ the New Zealand Land Associaition as a separate company. Nat improbably the directors might decide to increase the usefulness of the association by transferring to it for management the 1 few station properties of which their company still remained tit© owner, and, in the meantime they had brought its organisation- more immediately under the control of the Loan Company. Turning to the accounts, the Chairman said -there was no doubt that the company must look to its agency and commission business 1 for its chief source of profit. Their operations must be extended to new districts as they were developed. The competition they had to contend with was very gTeat, and tho business would go to those companies which did it best and showed the best results. The company could, not afford to be left ibehind in the race, and in these circumstances ahaareiholderß would undex- . stand that it was not possible for the directors to adopt a chesss-paa-ing policy in the' question of expense of the company's establishments, although expenses would be kept at iSe lowest possible point consistent with obtaining perfect efficiency. The motion for th© adoption of the report was seconded by Mr A. M. Mitdhison. It was carried -with unaminity. The dividend recommended was declared, and the proceedings were brought to a close in the usual manner.