COMPANY REPORTS.

Otago Witness, Issue 2861, 13 January 1909, Page 11

COMPANY REPORTS.

DEPRESSION OF TRADE. (Fbom Ocr Own CosRESPONDrNT.) LONDON, November 27. N.Z. LOAN AND MERCANTILE AGENCY CO. The report of the New Zealand Loan Uid Mercantile Agency Company, to be submitted at the meeting to take place on the 3rd prox., is just out. The directors state that after paying interest on the prior iien, second and third debenture stocks, and adding £35,000 to reserve accounts (bringing up the same to £250,00*0), there remains to credit of profit and loss, including- the balance brought forward from last year, the sum of ±-6524. The directors recommend that £6429 shall be applied in payment of a dividend at the rate of 5 per cent per annum (less income tax), and that the balance of £195 be carried forward. Pursuing the policy adopted last year, they have transferred to capital reserve account a further sum ot £50,000, •rising out of surplus realisations of properties handed over by the old company, thereby increasing that account to £150,000. Parts of Australia during the past year Have suffered somewhat severely from want of rain, but 'recent telegraphic advices are reassuring, as good rains have fallen generally throughout the States of the Commonwealth. Adverse weather conditions prevailed in New Zealand early in the year, the greater part oi* the Dominion having been visited by a prolonged drought, and in the North Island bueh fires proved destructive. According to latest advices, however, there is now every prospect of a good season. The Westminster Gazette, in its financial column, contains the following reference to the report of the New Zealand Loan and Mercantile Agency Company : — '• The directory of the New Zealand Loan and Mercantile Agency Company are not able to present such satisfactory accounts for the past financial year as for the preceding 12 months, and it is less pleasing to note that this is owing in principal measure to a considerable increase in expenditure. The revenue is returned at £328,180, in comparison with £339,416; but chiefly because the general administration and office expenses have risen from £145,871 to £162,215, the net balance has fallen from £180,774 to £157,836. After meeting the interest on the various debenture stocks, the dividend is again 5 per cent., but the appropriation ' to reserve ia i 835,000, against £58,000, and only £195 is carried forward. In the previous year, too, the net revenue was arrived at after distributing £4284 as a bonus to ! the staff, and writing £9956 off London in- ' Vestments. Thus the company is dividing ' closely. Following the policy adopted in | 1906-07, the directors have transferred to ! the capital reserve £50,000 arising out of the surplus realisation of properties handed over by th« old company, thereby increasing this account to £150,000. As the other \ reserve accounts will now amount to ' £250,000, the combined total will be ' £400,000. It is noticeable that cash assets ' have fallen from £424,334 to £209,690. I caused mainly by the disappearance of £180,000 loans in London at short notice, I which has apparently been used in other I directions, other loans and advances and ' current accounts having risen considerably. ' Investments, at the same time, have shrunk from £293,269 to £100,607." I