Page 4 Advertisements Column 1

Globe, Volume XX, Issue 1601, 7 April 1879, Page 4

NEW ZEALAND LOAN AND MERCANTILE AGENCY COMPANY (LIMITED). [London " Daily News," February B.] The fourteenth annual ordinary general meeting of the shareholders of this company was held yesterday at the offices of the company, Queen Victoria street, Mansion House, Mr Russell in the chair. Tha Chairman said the Board met tiiem with a great deal of pleasure, having to present to them the most satisfactory balancesheet they had yet had to present for their acceptance. And in saying that he said a great deal, for the career of the company had b.--en one of unbroken success from i's establishment to the pr»«ent time. Tney had been able to come to them at every meeting with a good balance-sheet, and pay them a substantial dividend, beginning at 6 percent, snd gradually increasing till they ha now arrived at 15 per cent., winch might bo considered their nopmal position. And while they had been paying them those dividends they had been laying up a good reserve fund. In the accounts they now asked them to adopt they maintained the usual dividend of 15 per cent., not only on the old but on the new capital whioh hud b.ien p:dd up during the year, and they added to the reserve fund the large sum of £40.000, of which ±'20,000 ca'tie from the p-cnnuius on the new shares, and £20,000 from the ordinary earnings of the company. But tbe--e was a class of figures which did not appear in the balance sheet or the report which indicated, great progress in the company's operations, and which he would take the liberty of referring to. First, as to the debentures. On the 31st December, 1871, their debentures amounted to £1,631 321. In the year just closed they amounted to £2,355,682, showing an increase in round numbers of three-quarters of a million. Again, in 1873 they stood sixth in the list of consignees of Australian wool. In 1875 they were fourth ; in 1877 they were third ; and now they were first. [Hear, hear.] In 1877 the value of the produce they dealt with amounted to £997,210; in the year just closed the amount was £1,352,800. These results had been obtained by the strictest application of business principles in the conduct of their operations. They did not speculate in land ; they were not the owners of a single acre of land except that which was necessary for the conduct of their own business, stores, and so on. And they neither bought nor sold goods, but the money which they advanced was advanced on first-class security, with a wide margin. Their consignment operations were based on security also, so that throughout the whole of their business they adopted the principle of no money without produce and complete security. And, while their operations were thus conducted, they were conducted not only without injury to, but to the great satisfaction of their constituents. They had a scale of charges for the conduct of business in this country, which, in comparison with the scale of former days, was very moderate. They had also been instrumental in reducing very much the rate of interest in the colony, and had thereby conferred great benefit on the colonists of New Zealand. The company being thus prosperous, they thought the time had come when they ought to establish a guarantee and provident fund, to which the officers of the company would contribute, and out of which in course of time a fund would be provided for pensions, and aln> as a guarantee for fidelity ; and they thought that the funds should be commenced by a donation of £SOOO from the company. In conclusion, he moved that the report and statement of accounts be adopted; that the dividend at the rate of 10 per cent, per annum for the half year ended 31st December, 1878, with a bonus of 5 per cent, which, with the interim dividend fund in July, will make a distribution at the rate of 15 per cent, per annum, be now declared ; that £20,000 be added to the reserve fund out of the profits, and £20,000, being the premium on the last issue of shares, be added to the reserve fund, raising it to £160,000 ; and that a guarantee and provident fund be established, towards the formation of which £SOOO bo set apart out of profits. Mr Mundella, M.P., seconded the motion. Mr Newman suggested that instead of adding to the reserve fund, the proprietors should participate in the prosperity of the company by receiving larger dividends. Mr Stafford, formerly Prime Minister of Now Zealand, said from long residence in that colony, and from an intimate knowledge of the circumstances of the country, he could testify to the great benefit which this company by its operations had conferred upon the colony, not only by giving greater facilities for the consignment of their produce, but by means of their advances in developing the agricultural resources of the country. A shareholder had suggested that there should be an increase of the dividend. He was opposed to that, but he thought the shareholders might participate in the profits of the company in other directions. One was by calling up more capital, and by providing that in any now issue of shares the directors should not keep in their own hands as large a proportion as they were entitled to under the articles of association, but that a greater proportion should be allotted to the shareholders, who would get the premium on them instead of the directors.

A shareholder asked if any of the investments of the company were in unlimited liability companies. The Chairman said they had no shares in any unlimited liability csmpany. They had some shares in the New Zealand Shipping Company, which was established in order to promote free trade in shipping to New Zealand. The shares spoken of by Mr Stafford were allotted to the directorsjin New Zealand as well as those in this country, and the premiums they were worth in the market at the time of the issue was only from 5s to 10s a share. The ptoposition to call up the remaining £50,000 of capital was one that did not find favour with the Board, as they could borrow money at from four to five per cent. The resolutions were then put and carried unanimously. The retiring directors, Sir Jas. Ferguson and Mr Boutcher, were re-elected ; Mr C. J. Taylor was re-elected and Mr Eodorick Mackay elected auditors of the company ; and a vote of thanks having been given to the staff and another to the Board of Directors and to the chairman, the proceedings terminated.