NATIONAL MORTGAGE AND AGENCY.

Otago Witness, Issue 3713, 12 May 1925, Page 13

NATIONAL MORTGAGE AND AGENCY.

ANNUAL MEETING. DOMINION’S PROSPERITY. (F-bom Our Own Correspondent.) LONDON, March 19. Directors present at the annual meeting of the National Mortgage and Agency Company of New Zealand yesterday were Mr Robert Logan (chairman), Viscount Hampden, Sir Thomas Mackenzie, and Mr L. H. Smith. The Chairman’s speech was mainly taken up with a review of the conditions in New Zealand. First, however, he referred with deep regret to the death of Mr W. S. Davidson. Dealing with the accounts, he said that the reserve fund now stood at £290 000, after transferring £3750 to that account last year. The greater portion of this fund was invested in securities outside the company’s business. With regard to liabilities, their debenture issue showed a decrease of £2615. Treasury bills showed an increase of £30,000, due to the company having larger cash balances than usual in London, owing in a great measure to the high rate of exchange between London and the dominion. Turning to the profit and loss account, the gross profit showed a small increase. It was satisfactory to find that, notwithstanding the increase in New Zealand taxes and other charges, the net balance at credit of the profit and loss account was well maintained, and that they had been able to increase the carry-forward by £2486. In reviewing the conditions affecting the principal exportable products of the dominion, the chairman referred to the postwar depression of 1921, and showed how the company's confidence had been justified. Regarding cattle, tho war had shown few benefits, out. it had, a 1! any rate, familiarised Continental nations with the excellent quality and comparative cheapness of imported

frozen mea A . as compared with that locally produced, with the consequence that some 460,000 tons of the commodity found its way there during 1924, and there was promise that a continuance of this trade would follow.

The Chairman referred to the settlement of returned soldiers on the land, and added that there was every prospect of a reasonable stabilisation of the value of landed property in the dominion. Prices produce were now—taking lamb, for instance—just double that which was paid by the Home Government during the war for New Zealand primest lamb. The price of mutton had improved considerably, and wool had advanced 100 per cent, within the last two years, while dairy produce realised prices quite on a level with those that had obtained for many years. All these factors went to show that, at reasonable values, land, in tho hands of competent men, could be made to yield satisfactory profits. THE FINANCIAL POSITION. The financial position W New Zealand, said Mr Logan, was probably the best of any of the overseas possessions, and it was developing at a great rate and in various ways. Large areas of swamps were being drained, and would become fertile. Irrigation works had been established in mnny of the drier parts of the country; 220 miles of water races had been formed for irrigation purposes; waste lands were being reclaimed, while the waters of the country were being harnessed for electrical and further irrigation purposes. The Chairman went on to speak of the financial condition of the oountry. No other overseas dominions, he said, borrowed at less than 5 per cent., and in some instances it was over per cent. New Zealand had made such a rapid recovery after the post-war depression that she was able to record a 38 1-3 per cent, reduction in the rate of income tax and substantial reductions in her land tax—the two forma of taxation which particularly affected the interests of the company. Further reductions, it was believed, were in contemplation. The statistical position of wool remainded sound. With regard to frozen meat, the year under review had been noticeable for the increased demand for both mutton and lamb. Dairying in New Zealand continued to expand.

He would ask shareholders to pass a hearty vote of thanks to the general manager (Mr Ritchie), the branch maragers, officials, and staff in New Zealand; also to Mr A. St. G. Ryder, the iffknager, and the staff in London, for the capable and successful manner in which they had fulfilled their duties, and helped to contribute to the company’s prosperity. In conclusion, he moved the adoption of the report and accounts, and the declaration of a final dividend and bonus, both free of income tax, making, with the interim dividend, 11J per cent, for the year, carrying forward. £14,346. HIGHLY ESTEEMED COMPANY.

Sir Thomas Mackenzie said that the chairman had gi’-en them a comprehensive review of the position of the affairs of the company and of the dominion of New Zealand. He himself knew the properties and the type of men on them. The position of the dominion just now was exceedingly satisfactory. It had gjone through a period of very great depression, and he could not say that the company had escaped; but, thanks to the great forethought of the directors, ample provision had been made for all that had to be faced. They had an exceedingly good business in the country, and the company was highly respected and trusted. Mr 11. C. Cameron, a shareholder, who has been in the dominion recently, also bore testimony to the high opinion in which the company is held in New Zealand. As for the Longburn Freezing Works, there was no more up-to-date, well-organised, and wellsituated works in the country. The staffs in the various branches were thoroughly keen, and took a very real interest in their work. The appointment of Mr LancelQt Hugh Smith as a director was confirmed, and Mr Robert Logan and Sir James Mills were reelected.