NEW ZEALAND LOAN AND MERCANTILE AGENCY COMPANY (LIMITED).

Timaru Herald, Volume XXVIII, Issue 2006, 5 April 1878, Page 3

NEW ZEALAND LOAN AND MERCANTILE AGENCY COMPANY (LIMITED).

The thirteenth annual ordinary general meeting of the shareholders of this company was held on the Bth February, at the offices of the company, Queen Vicioria-street, Mansion Houae, Mr A. J. Munde la, M.P., m the chair. The report of the directors having been taken as read, The Cluiirmnn said that it was with great satisfaction that the directors met them again with a report so favorable as they now submitted to ihem. The progress of the company during tlie past year had been as great and as sound m all respects as m any previous year of their existence. Indeed, they had more reason to be satisfied with their position at that moment lhan ihey had at any previous timo. The net profit lor the year, including £3342 brought forward, was £41,633. He held m his hand som? statistics showing the steady progress of the company m Ibe last five years. Their wool consignments m 1873 were 15,610 bales ; Li6t year they were 48,166, exclusive of 2000 bales wliich were wrecked on tbe passage Home, so that really, if all their wool had come to market, they would have had nearly 61,000 bales last year, against less than 16,000 m 1873. Their position as importers of wool from New Zealand had been first, for some years they were far ahead of any other importers ; indeed, their import was three times as large as that of any other importer. Then their business m Australia had been growing as steadily and as soundly as their business m New Zealand. In 1873 they stood sixth on the list, of importers of wool from Australia ; m 1875 they stood fourth, and m 1877 they stood ttiird, and the actual value had increased from £44,000 m 1873 to £997,000 m 1877. Then, with regard to the capital of tbe company and the reserve fund. In 1873 the capital of the company was £85,655 ; m 1875, £115,655 ; m 1876, £154,046, and that day, as they would see by the balance-sheet, it was £194,147. Their reserve fund was begunin 1867, when they put £5000 to it ; m the two subsequent years they put £5000 moro ench year ; m 1870 they added £6600 ; m 1871, £10,000; and now they proposed to add to it £12,000, making a total between 1867 and 1877 of £ 1 20,000 placed to reserve. The next item to which he would call attention was the amount for which the debenturas had been issued. The debentures outstanding on the 31st December, 1873, were £325,802, and on the 31st December, 1877, £1,631,321; the total amount that thoy weie able to receive on debentures according to the articles of association was two millions, minus their capital, so that they were coming very close upon the amount thoy were entitled to receive, and the directors had had to consider whether they ought to close their share list and their debenture list finally, or whether they should make a further extension of their shore list and increase their husiness. They could not take the business which was opening io them wiihout increasing their capital, but at the same time tliere must be a limit to tlieir business. They were not disposed to take upon themselves all the business of this kind that waa to be dona m the colony, and they

were willing thit other companies ?h .u ! d come m and take their chare. The view of the directors was that they shou'd i-sue 40,000 a Iditional shares, and that this should be a last and final issue. Ihey had decid' d after careful coii ? ultation with tlieir colleagues abroad to make this issue, be.au-e iand was every day being brought in^o pasture and cultivation m New Zealand — rich land. There was no iiinit to it, ami would not. be tor years, except that whicli was caused by the want of population and of labor. As he toid them two years ago, they had bjen compelled, by the increase of their business, to relieve tae Bank of New Zealand from the conduct of it, and to establish their own independent offices ; and they were satisfied that tbey could diminish the ratio of expenses considerably if they increased their capital one third, and they had therefore determined to i-sue another 40,000 shares, but if it should ever be thought desirable to make any further issue, that would not be done without first consulting the shareholders. He should say that they had there that day Mr Rusaell, one of the directors who went laat year to the colony, and inspected for himself the working of their business m all its branches, and they had from him, as they had from every other quarter, the fullest asßur ance of the perfect aa'ety and security of their investments, and of the general good management of their business. Iv conclusion, he moved that the report and statement of accounts be adopted and circulated among the proprietors. Mr Simes seconded the motion. Mr Agnew said he was glad to find that they had no capital locked up m premises m this country, buL ho found that £40,000 was put down for landed property and plant m New Zealand, which was an increase of £7000 on last year. He also called attention to the expenaef, which amounted to 43*> per cent, on the gross profits. Mr T. Russell said tho amount charged for furniture had all bpen written off, and the whole of the furniture m the office formed a charge on tbe current revenue of last year. And then, as to their busineas m New Zealand, they found as they extended their business there that it was bettor not to rent stores, but to have stores of their own, and give accommodation Jto their customers. When they firat Btarted, they had offices m the Bank of New Zealand, but aB the business of the Bank grew it became necessary for them to have separate and independent offices, and now they had staffs at Canterbury, Dunedin, and at all the principal ports, which increased the expenses, but enabled them to do a larger amount of business. It was quite impossible to fix a ratio of expenditure, but no expenditure was incurred that was not absolutely necessary. Mr Agnew expressed himself satisfied with tho answer, but asked for an explanation of the item " sundry amounts receivable m the colonios, £313,712." The Chairman explained that that was merely produce m transit. He observed that tlieir expenditure would bear a very favorable comparison with that of other companies. The resolution was then put and unanimously agreed io. lh« Chairman next moved thafc a dividend be declared at the rate of 10 per cent, per annum and a bonus of 5 per cent., that £12,000 be added to the reserve fund, and that tbe balance— £3,s4B— bo carried forward. Mr Weeks seconded the motion, which was also passed unanimously. The retiring directors, Mr Mundella and Mr Russell were then re-elected. Mr Rußsell, m returning thanks, said he had taken great interest m the company from the commencement, because whilo it was profitable to the shareholders it had been of great value to the colony of New Zealand, with which bis interests weie o'osoly bound. The institution had been of more value to the colony than they could have any idea of. It had reduced the rate of interest tliere, and had enabled many a man to buy a smuii estate, and many a man who had a small estate to buy a larger. Mr Newman had made a remark about the liability on the shares — £i 10s a share, lt was a liability he would not have on his ahouldera for five minutes if this were a trading company, but it waa not. They advanced their money on mortgage of real eatate, and on produce, and they looked narrowly at the *ecurity and only advanced a proportion of the value, pjrhaps not more than half. On the motion of Mr Abraham, seconded hy Mr Mau l , a vote of thanks wus given to the directors, and thanks were also voted to the managers and staff. The meeting then resolved itself into an extraordinary general meeting lo consider the proposal of tlie directors to increase the capital of the company by the issue of 40,000 shares of £25 each. The Chairman moved a resolution authorising the issuing of the shares at lhe premium of iOs each. This pre-nium, he stated, would be added to the reserve fund, and it was intended to call up £2 10s per share ; the premium and 10s per share would be added on ullottment, £1 m aix montha, and £1 more, making £2 10s m twelve months, and the shares would rank pari passu with the old shares. The motion waa unanimously agreed to, and a vote of thanks to the chairman brought the proceedings to a close.