COMMERCIAL.

Poverty Bay Herald, Volume LII, Issue 16942, 26 January 1926, Page 8

COMMERCIAL.

LOAN AND MERCANTILE. THE. ANNEAL MEETING. DIVIDEND <<.'•' m-AIA I.'KK ( J-.N I I.li-NIM*N. J.)ic. 31. —AL the annual meeting of (lie. New Zealand Loan and A 1 i-icatiti!<• Agency Company this afternoon, Air Alfred Shepherd, chairman of I lie company, presided. Mr Shepherd first referred to the return to the gold tan third. The result had been, ho .said, that almost immediately■ the embarrassingly high rate of exchange existing between this country and the t 'omnium. i-all h and Dominion disappeared. and cv hange rates returned to rates, approximating those ruling in 101 A. thus removing Die heavy burden on exports from Australia and, Now Zealand. it was to he Imped: that wiih a return to the gold standard and the removal of restrictions this country might again be in a. position l. meet the demands of Die ( ummun wealth and Dominion e. regards future borrowing. “Willi I'iifereiiee to taxation." continued (he chairman, “I am glad to say a J'uiTber small reduction has been made in Die rale of New Zealand! income lax this year. In Australia, certain reductions in the rale of income tax have been made, though il Mould appear that these ■ reductions apply only to individuals and not (o companies such as our own. “As regards Die market, for Die raw materials, two outstanding features present. themselves(a) The consistent advance in value of all deseriplions of wool during'the last half of 1924; and (l>) Die ra.pid' decline which took place early in the current year, culminating in a slump unprecedented in Die history of tin' wool trade. While il could not, be expertod, and probably was not desirable. that so greal an advance in the values of an essential commodity such as wool should! be permanently maintained, statistics which were widely circulated appeared to show that, in consequence of shortage in the mmibevr of sheep, both m Australia and Die Argentine, the world production of wool was not equal lo the demand, and that no immediate or rapid decline in values was therefore to he looked! for. Bui other factors, which had not been fully foreseen, such as the effect of high prices .upon purchasing power and the larger use of substitutes, intervened and had a very •narked' elicet in reducing prier*.' - THE BALANCE' Eft It THE YEA IL After paying interest on the first arid second mortgage debenture stocks, making provision for bad and doubtful debts and other eontingenciw. there remained a balance of £151,889, which compared with. £131.724 for Hie previous year. From Diis sum the directors have written £ 10. COO off premises, have deducted appropriation for thoi staff benevolent fund of £IO.OOO, as against £SOOO last year, and it was now proposed: that in addition to the preference dividend a dividend of 7 per cent., as against 6 per cent, last year, should he paid on the ordinary stock, leaving a balance to he earned forward of £39.645. ns against £2-7.755 the previous year.

On the credit side there were one or two items which cere considerably reduced, including cash and money at short notice, while the advances on wool, secured loans and current accounts showed some! considerable increases. 'The alteration in these figures were also due to a large extent, if not wholly, to the additional wool in store at .Tune 50, and were tlici counterparts of the figures on the other side of the balance-sheet. DIVIDEND POLICY. “Some of the stockholders,” concluded the chairman, “may think that in view ol the larger carry forward from profit and loss account, as against the amount brought, it- last, year, we might have, paid a higher dividend on the ordinary stock. This matter was carefully considered by (ho directors before coming to a decision to recommend n* dividend of 7 per cent, per anil urn. They felt that the best policy was a steady and gradual increase. of the dividend, as warranted by the progress of the company rather than a- larger increase this year, which possibly could not be repeated in a. subsequent year. Moreover, they have it m mind, if circumstances warrant, to revert to half-yearly instead of yearly dividends on the ordinary stock, and it was therefore desirable to keep in hand fluids toward that purpose should the progress of thei company during the current year warrant such payment.” Concluding, he moved that the report and statement of accounts he received and adopted 1 , and that, a, final dividend of 2j per cent, he paid' on the 5 per’cent, cumulative preference stock and a divided of 7 per cent, on the ordinary stock (both less income tax at 2s 3d in the* £). The resolution was adopted. Mr A. M. Milchison and Mr Clive I/. Baillieu were re-elected directors.

Messrs Dalgcty and Co. have received the following cable from their London olliee, dated January 21:—“Quotations : N.Z. prime crossbred lamb, Oankwbury, heavy Bd, light lid’. North .Island, heavy 7d, light 8d; demand for N.Z. Jamb, moderate; N.Z. prime crossbred mutton, Canterbury, heavy 7d. light 7-jjd, North' Island, heavy 6|d, light 7jd; demand for N.Z. mutton fair. N.Z. prime ox beef; hinds 4|d fores 41,-d; demand for N.Z. feeb limited; market for N.Z. lamb firm; market for N.Z. mutton steady; market for N.Z. beef, prices nominal. Buyers seem unwilling to operate at present prices.”