Correspondence.

Feilding Star, Volume XVI, Issue 272, 21 May 1895, Page 2

Correspondence.

[We do not hold ourselves responsible for the opinions of correspondents.] TO THE EDITOR OF THE STAR. Sir —At the meeting of shareholders of the Farmers' Alliance, held recently, the Chairman stated some of the properties were over - valued and some were under - valued. Now, this, to my mind, is a most unsatisfactory state of affairs. Why should any property be over-valued ? I think Mr Eraser's remarks should have had more weight with the meeting. I am quite sure that the true position of the company was not placed before the shareholders. I regret to say this as I believe that there is a good future yet before this company. There are many shareholders in this district and, of course, oy remarks may interest them. I will relate an experience of mine which has the merit of being strictly true, A bank in thiscolony, with numerous branches, whose headquarters are in Londun, owns a corner two-storey brick building in a city of the South Island, which covers a quarter of an acre. The business, prior to coming into the bank's hands, took an acre of land to work. Oue quarter is freehold on which the buildiog is situated, and three quarters are leased. This pro perty, to my certain knowledge, appeared regularly on the bank's balance sheet as of the value of £10,000. I also know, for a fact, that if that same property had been placed in the market its value was nearer £3.000. This was only one property of many held by the same bank. At last one shareholder, at a meeting in London, said, " These properties appear regularly on our balance-sheets, let us send out Mr So-and so to inspect tham." They did so. I saw this gentlemp.u, but, mark you, in the presence of a local bank manager, and thus he was hawked by managers from Auckland to the Bluff. He knew as much when he left the colony as when he came, and the shareholders' money was wasted. The point is this —if the proper value was placed on all the propiTtiesheld by the bank what would the position be ? Could they pay the 5 pei cent dividend that they regularly'do? No, nothiug of the kind. The Farmers' Alliance is exactly in the same position *as the bank in question Until the properties are valued cor rectly, the true position of the com pauy is not known, and dividends paid are only misleading. I am, etc., A Settler.