NEW ZEALAND LOAN AND MERCANTILE AGENCY COMPANY

Ashburton Guardian, Volume VII, Issue 1804, 2 April 1888, Page 3

NEW ZEALAND LOAN AND MERCANTILE AGENCY COMPANY

("London Diily Telegraph," Feb, 4th

The annual meeting of tbia company was held yesterday ut the Cannon-street Hotel, Tha Right Hon. A. J. Mundellft, M.P,, who presided, m moving tho adoption of the report, which recommended tho payment of a dividend at the. rate of 10 per cent., and a bonus of 5 por cent., which with the interim dividend made 15 per cent for the year, congratulated the meeting an the light which the report and the balance-sheet threw upon the present position and prospects of the Australian colonies and of Now Zealand, and said although m New Zoaland the return to prosperity bad been leas marked than m Australia, there had been m that i colony a decided return of confidence and I increased activity. Although New Zea- ' land had been passing through a time of Bevere trial and adversity, that adversity < had not been without its use, for It had > led to greater thrift and prudence m the administration of both public and private I affairs, The balance-sheet, whioh ended ! m the colony on the Ist September and In this country on the 3lßt December, showed an increased earning powbr and increased i profits during the year. la 1886 the net i earnings were £67,889 ; last year they i were £69 567, an increase of nearly i £12,000, and while m 1886 they carried forward £3,600, they now carried forward < £15,(53. In the balance-sheet there was < an item, (s Company's premises, stores, ; and plant, £291,312," but since the close i of the financial year their Melbourne manager had, after much negotiation, Bold their premises m Collins street m that city for £200,000. Those premises i stood m the company's . books at ' £120,000, leaving a net profit of £80,000. If he were asked why did ihey sell tnoße ' premises, bis reply would be that Collins Btreet had become a great centre of : business, and that it would be jast as < reasonable for them to have stores for wool and other produce m Cannon Btreet or CheapsiUe as it was to have them now < m Collins street, Melbourne. They proposed to erect a plain building near the railway station, where they could carry on the businss, more efficiently and economically. They did not propose to deal with this £80,000 as profit, but that it should be held as a speoial fund to meet any contingencies that might arise. The Chairman then read copious extracts from the reports of tho managers la the different Australian colonies and m New Zealand, all of them cpeaklng of the season having been generally favorable, of good harvests, and of increased activity In trade. He went on to cay that some outsiders had assumed that the company's operations were exclusively onGned to Haw Zealand. Until 1874, they were ao, bnt m that year they decided to extend them to Australia, and the reßO.lt had been that their mercantile business was rapidly becoming the largest part of their business, and so far from their business being confined to New Zealand, 60 por cent of their capital was uaed m the Australian colonies. Tho money they raised on debentures w&a used mainly (n loans on mortgage of real estate, bat their mercantile business had practically no limit except their own capacity, and ifc was annually growing. They began 23 years ago with debentures at 5, 6, and 7 per cent, They firat paid off those at 7 per cent , then those at 6, and last year they paid off a considerable portion of those at 5 per cent, and now they had come down to 4£ and 4 per cant, Their mercantile bußlneßS was the most profitable department of their basinets, and it could bo Increased without adding proportionately to the expense. He thought thoro ought to bo a capital specially provided fos* that businesa. It ough f . to be conducted not on loans, but on the capital of tho company. He was stating what was foreshadowing m the I mlnda of the dfrectorn, but ho did not know what form it might take. — Sir J. Ferguascn seconded the motion. — A diacuaaloa followed, m which Mr Worloy BUggeuted that the £80 000 profit on tho sale of the Melbourne premises nhould be specially Invented and nsed to equalise dividends, and Mr Larkworthy, the managing director, said it would bo available for that purpose. — Tho motion was unanimously passed, the retiring directors and auditors were re-elected, and thanks having been voted to the chairman and directors, and to the homo and colon! >1 staff, the raeettog lepirated,