UNION BANK OF AUSTRALIA.

New Zealander, Volume 7, Issue 588, 3 December 1851, Page 4

UNION BANK OF AUSTRALIA.

(From the " Morning Herald," Jnty 22.) The annual meeting of the proprietors in this Bank was held at the offices, 3i, Old Broad-street, yesterday. Mr, Robert Brooks in the chair. The advertisement convening the meeting having been read. The Chairman proceeded to read the following report :— The business of the bank has increased at all the bunches dm ing the past year, and its piesent satisfactory position reflects much credit upon the zeal and ability of the inspector and ihe ofliceis geneully. By the deatli of James Sea, Esq., the late manager of tbe .Sydney blanch, the bank has lost the sei vices of a devoted and upright oflicei. Mr. Sea occupied this important post at Sydney since the osttblishment of the bank, and by his unifoim couise ot honouiable conduct, and urn omitting attention to the duties of hn> office, he secured to h<mself the cntue appiobation and confidence of the diiccton , as well as the nimWul esteem of the community amoegst whom he lived. Isy ihe last advices from Sydney, the dnecton have leaint the letuin of the inspector fiom visiting the New Zealand branches and the agency at Port Lytteiton, He had not then had time to appoint a successoi to Mr. Sea, and to make the anangements consequent thcieupon. The presence of the inspecioi m New Zealand, soon aftei tbe arnval of the fust laige body of setileis in the Canteibury distuct, was -vciy oppoituue loi the interests of the bank, as ciicumstances had most unexpectedly arisen to impede the opening ot the agency as contemplated in this countiy. Mr Fletcher received infoimation of these circumstances at Wellington, and immediately embaiked foi Port Lytteltou, where lie was enabled to make all ] the necessaty anangements in a very satisfactoiy manner. The directors feel bound to t^piess their sense of obligation to W. G. Bnttan, Esq., and the olhei local dnectors who had undeiUken t© give their assistance to the baukin opening this agency, for the judicious and tuendly manner in which these gentlemen acttd in veiy difliuiltcncumstancei, and the gieat care evinced by them in protecting the interests ot the bank. The commerce of the Austialian colonies gencially has been well suppoited throughout the past ytar, and the trade has every indication of being healthy and piosperous. James Ruddell Todd and William Wilson, two of the pieient dnectors, letiie by lotation, and now oiler themselves for re-election. 'Die riiicctors piocecd to submit the statement of accounts, the result of which cn.ibles them to declaie a dividend foi the half ycai at the late ot 0 pa cent, per annum on the entire paid up capital of the bank, togethci with a bonus of 10». pel share on the 32,000 p.iid up shaies of the thud seiies payable in London, Iree of income tax, on 'luesday ath of Angust, and in the colonies, with the addition ol sevtnpmce in the pnuud, as soon as the mspectoi shall fix altei the icceipt of advices. Mr. Jackson (the secretary) then read the following statement of accounts to the 30th of June last : LIABILITIES. Bills payable, and sundry balances £'146,336 12 0 Resenr fund (10 per cent.) 81,504 ? 3 Profitand loss 70,170 15 4 152,044 2 7 Paid up capital 820,000 0 0 1,118,380 14 7 ASSETS. Branch accounts, balance 322,932 15 3 Bills leceivable 178,979 18 3 Government stock, and loans on security ..608,214 13 4 Open policies, &c 5,738 4 3 Cash 12,515 3 0

1,118,380 14 7 STATEMENT OP PROFITS. balance of undivided profit at June, 1850 61,595 7 4 To which arc now to be added, piofits of the past year, ending at the branches 31st Dircmbei, 1830, and at the London oflicc 30th June 1851 92,760 8 10 Deduct one-tenth for reserve fund.. 9,270 0 10 53,484 8 t> Deduct. £148,070 35 4 Dividends and bonusis paid — At Midsiimmei, 1850 £JC,900 0 0 At Christmas, 1850 11,000 0 0 77,900 0 0 Balance ol undivided profit at tins date 70,170 15 4 RESERVE FUND. At June, 1810,81 pei statement 72,588 G 5 Add to June, 181*1, as per contra °i^™_!L" £<$1,8C4 7 3 Mr. J. Robinson rose to propose that the report and accounts just read be received, adopted, and printed for the use of ihe shareholders. He felt lmppy in beihg enabled to have the opportunity of congratulating the proprietors on the prosperity of the bank, and also upon the excellent management of all those connected with it, -which had led to such satisfactory results.

Mr. Macmtyie bcgs-ed h>a\e to second the pro- I position. He fully cuncuired in all the observations of Mr. Hol.mson, v»l.o bid left him noihinp to say. The C'uuim.m wid, m putting to tho meeting the motion ju-,t made, he felt that the icpoit was so full and satisfactory, a-, (o u'quire but veiy few woids of explanation from him. The business of the past year bad b>'pn fully equal to ibat of tbe preceding, and tbe directois considered the present report as most satisfactory. The bad debts of the past year bad bepn very tufling— they bad been all written off, and there was nothing left in the backgiound. (Cheprs.) The question was then put and carried unanimously. In answer to questions, the Chairman stated that the amount of Government stock they held was the same na at this time twelve months. They bad in all £590,000 on loan m this country. The whole of that amount was chiefly seemed on good commercial bills, and did not rest upon peisonal secunty only. r J lie money loaned was at command, and there was none oi it out at a lower late of interest than V 2\ per cent. Mr. Wells wished to ask a question, relative to a subject which be had biought foiward a year or a year and a half ago— Why, m the division of their profits the word "bonus" was retained, it appeared to him that the word " bonus" meant something that was casual, unexpected, and unlooked foi, and might not again occur, lie might be wiong, Kit it appealed to him that after .1 bonus bad been declnted for «i number of successive half-years, it ought to diop into dividend, for if they vaned the amount of bonus declaied, the proprietors and the public would consider it the same as the lowering of the dividend. After they had had a bonus for several years it ought to be amalgamated with the dividend or called by some other name, as he did not believe that they had the powei 10 declare these successive bonuses in law. If they adopted another word, he thought it would have a good effect in preventing the raising of any legal quibble as to their proceedings. It occurred to him that the declaration of these bonuses had the effect of preventing tbe trustees of shares, in their bai.k from exeiching .1 propel contiol over it. That objection, bow ever, would be removed if they were to divide then profits by the use of a word which was not illegal. If he were expressing merely bis own opinion it might be of little worth, but be was giving them the opinion of council 111 other cases, which ou.'bt to have weight with them. Mr. J. J. Cummins, said tbe Chairman bad given him permission to mention a few circumstances in connection with the subject alluded to hy the honorable proprietor. 1 hey would recollect that tbe subject was intioduced on a previous occasion, and a veiy strong objection taken upon some supposed legal grounds to the division of profits by way of bonus. The directors consequently carefully considered the matter, and they found that tbe deed, in express terms, enabled the directors to divide their profits either in the shape of dividend or bonus. In tbe next place, they were not dividing any sum thnt did not come out of tbe profits of the half year with which they were dealing. This wa6 expressly stated in (be resolution, and therefoie it was not a question open to any legal quibble as to trustees. After the previous discussion upon the subject, he went to the Bank of England, with tbe legal officer, and upon comparing tbe Act of Parliament with tbe deed of tbe Union Bank of Australia, it was evident that so long as they only paid their bonus out of the profits of tbe half year upon which it was declared, no legal objection could be taken. The directors, tberefoie, considered it wise to continue tbe practice they bad adopted, as this was a trading company, and was liable to years of adversity. They had had those years before, and they might come again. Having gone through such periods, and had occaaion to reduce their dividends when th^y j exceeded 6 per cent., the directors believed that it would be a wise policy to keep their dividends at an amount which they thought the proprietors might always fully rely on receiving; but they at the same time told the proprietors that after making a proper allowance for bad debts, and reseiving 10 per cent, of the profits as a reseive fund, they would divide any additional profits of the half year bejond 6 per cent, among the proprietors by way of bonus, and he thought that this would be considered both advisable and sutisj factory by tbe proprietors. j After a short conversation, in which Mr. Silver and I Mr. J. Robinson expressed their full conviction that the policy pursued by the dnectors was a correct one, and that tbe lowering of the amount of bonus would not he so injurious as a variable dividend, it was explained in answer to a question by Mr. James, that the accounts were regularly audited every half year by a certain { number of the directors, who took it in rotation to perform that duty. Upon that audit they made their leport, and from the results of that report the dividend was declared. After a short conversation on the subject, Mr. Jamee, who put the subject, expressed bimself peifectly satisfied with the explanation, as did ulao other proprietors. The retiring directors having been re-elected, Mr. Varnish moved n vote of thanks to tbe chairman and directors for their zealous and active attention to the business of tbe company. Major Minter seconded the resolution, which having been carried by acclamation, The Chairman returned thanks for the vote, and Mr. Jackson declared tbe dividend payable on tbe sth of August. The meeting then separated .