UNION BANK OF AUSTRALIA. [From the " Morning Post." July 13]

New Zealander, Volume 8, Issue 689, 20 November 1852, Page 3

UNION BANK OF AUSTRALIA. [From the " Morning Post." July 13]

The annual meeting of this company was held at (ho offices, Old Broad-street, ) esterdny, — Mr. 11. Carter in the Chair. Mr. Jackson (the secretary) read the advertisement convening the meeting. The Chairman then said that he had now to bring under their notice the report of the directors, to which he requested the particular attention of the proprietors, as it was of a more interesting description than any report which the directors had yet had to bring before them. The lion, gentleman then proceeded to the following report : — • In i ho report presented to (lio proprietors at the halfyearly meeting m January List, the duecioris advened to the then recent .ircounts of die discoveiy of gold in the Bathurst district of New South Wnle-,. '1 i>e wide extent to wlncb these discovers h.ive .since renclx d, both in N«'W Souili Wains .md ViaoiH, and the vast .unounr of tiie precious metals aciu.illy r. ceived from thence in this country, hiive given a national as well as n colonial importance to the subject, and it has consequently attracted such general attention, t-ntthedi rectois think it nece--.iry only towdveit 10 the subject, so lar iv- it hear* on the mteiesU of the biinlc, anil upon the (ommeicml prospects ol the Aubtialian colonies geneially. Although the accounts which arc now presented only re.ich to the close of the past year in the colonies, yi t they hear Mi ong evidence ot the general expan-ion of the bank's business. Nor is the effect altogether confined to the brunches adj.icent 10 the vlistucts which yield the i»o!d; intercolonial trade hasieceived 11 slung and. as yt t, with the singl exception of South Austrnlia, n very beneficial impetus. In South Australia n ccnsidenible *hoclt was jiiven by a r«pid emigration proceeding 1 tow.nds the gold regioxs, and n veiy general sUjjnation ol busitir so. '1 ho dnectuis aie, ln»we?er, gi.itified in beinj{ able to stale that these evilt. have not be n without allevi twig ciicum-.taoces, and such us wanant some hope of speedy linpiovenient. '1 he de cnand in the gold di-tricts foi surplus ol nil tin 1 necessaries of hie has relieved the overstock! (1 niaikets a* Adilaide to a v<<iy important degree; and the supplies of gold which, at the d.Ke of the last «d vices, wen' heing leceivcd at Adelaide, rendered the nionutury affairs ot that colony more easy. The clislm ounce i» the labour murker of Van Diemen's Land w.is frit sevprely, but the accounts trim Uaunc-feion -md Hot->^ii Town ul tlie bank*--" i»ti<?in»«9'* nrn nevertheless Mitwiarioiy, and those liom New Zealand aie d cnletllv >>l that cluuacter. In the gold districts hemselves, the increase o( wealth, viewed as> u whole, Ins doubtless iompi nsated in n vhiv great degree foi the injuries find discomforts sustained i)y landowners anil settlers, in consiqueuce ot an exorbitant rise in the rate ol wages, and thedifheuliy in obtaining njiicultui.il «nd other servanls at almost any puces, 'flint under t.uc!i cm utust vices the corn ciops should have been secured, and the wool, on ihe whole, w< 11 biou_ht to mniket, hns been highly Hiitistaciuiv, »nd the maunei in which peace and good order have been jir. se rv. d rnilect- much honour on the geneial chamcter vi oui colonial (ellow-sui«ji'cts, and is (* i^4 lil^ cieditable'to all the constituted authorines in the diwctwrfse ot their ,iuluou« dutu'a at j,uch a crisis. Ihe directors confidently hope that the increased attention which is now dr i«n to the important subject ol emigration liom Gnat liritnm io Australia, and the establislimeiit of steam communication, will greatly I tend to mitigate, it not entirely to remove, the evils which the) h.ive noticed. The manner in which Mr. Fletcher, the inspector, and indeed all th ofliceis of the bank, with «c,)rcel_y an exception even of the most junior ia runic, have devoted themselves at ibis important period to the pio(ec(iou of the I>ai/W interests, cannot be iwo highly estim.ii'd by the piopneiots. The dnectora have now to advert to a subject of peculiar mteiest to the bank. It will doubtless be in the lecollertion ol in.my of the propnetois, thai about the year 10 16— owing to the gicat contiaciion ol colonial "business that followed ihe commeici.il rri-w, by w hich the colonies wete visi ed during ihe previous two or three years— the directors lotitid it difficult to employ the entire capiial with security and udvautage, and for u lime H <ip|»eaied desirnble to reduce it, to the extent of £100,000 to £^00,00 >. The bubject was noticed at one or two general meetings, and the diiec'oiH wete induced to take the opinions of Sir Fi<7roy Kelly and Mi. WigKiiii, aa ro whether they could adopt such a cmiibe consist utl> with the, provisions of their deed. Tho opinions leceivid \v. re «d verse; but as tlm deed i allowed the investment of ai,y bpuie funds in the bh.ires ol the bank, and as they .were then raiher under pur in the market, which the directors knew to be far below their real value, they determined, aftet mature conmde-

ration, to buy any shaies winch mi^ht be ofFeied to tlnm, nt nol excluding the par valci". 'I hey comi menced i bete pnrch,is.es vi May, 1847, .aid closed ilu-m in Oc obei, US-13, having obiamed Jj-)1 paid up limit's, and 824 small slian-s, at an .icer.ige of abom i.^l. lur the |„ml-up bli.ni 1 ", sun! 'he sm til m piopornon. 'I liebe I sliau-. uniii the picsent liali-.ycnr, Iravp bwii licM ajiutoi th« assU", vain d at p.ir, and have not been either added to o. diminished by tuiy imrclnsps 01 s les Mtic that pftiod, the dividends liivin» bet-n always Ciriii-il lo at count of piofu, 'I In- i-ccnt cxj.ansio.i, Unnt'Yi'r, of iljo busmen of thy bmk, winch they have alrtady ml verted to, hd Uih dueoims seriously lo consider H'iiciiuM it would no) bi 1 prjili j nt io bine nil the capita! of the bank at command, and the enhancement which had taken plate in th<- value of the t.ha tw seemed io mark the time as fiivnuiab!c for the accomplishment ot (hat object, provided H could be done without pio ducni" any injuiioiis influence on the mat Let value of the piopnetors' sioclc. The proceedings winch have grown out of ibis consideration on the subject will, the d lectois b( Leve.be best brought before ibis meeting, and most easily understood, by insetting in this repoit a ropy of the minute* morded in their proceedings ol tde 'J7ih of Way List, and which they trus>t will meet with toe full approval of the [iropnetois.

SPECIAL BOARD MINUTE, 27T11 MAY, 1852. " With lefeience to the iiiMiuction* gi'.enou the2lst instant by i lie hoaid to ihe commute-, to consider of the best mean* of disposing of the hank shaies, which have been purchased on account ol the bunk, viz 45M paid u|>, nnd t'24' of the third series, and which the board decided outfit now to be reilwd, with a view, as well to the ~equi>ements ot ihe business in the colonies, as to the piolit to he derived liom a sal<-, pu>vulnd »uch sale could bv t fivcied without depressing the value of the shares genially. The chdii«nau of the committee reported at. follows : — '• I ha i the commutee having carefully con«ideied the matter r. leued to them, weie of o|innon that it would not be , dvisable to atiempl a bMe in the open mmkvi. "That they had consequently opeiit-d a confidential communication with INJessib. 11-enry Tudor and Son, influential brokeis in the Stock hxchange, with a view of aseemming whether they could place the shares puvjitely amongst their fi lends, at the mat ket puce of the day. " I hat i\.essr<*. Tudor and Son had requested permission lo introduce into the ncyoti.ition Messrs. Bai net t and Llh>-, also highly lesjiectabie stock.brokeis, winch was>agie«'d to bv the committee. ' Tliat ilie committee bad, on llk 25th instant, held a c inference with i\lr. Tudor and Mr. B-ruett, :tt which tho&e gentlemen agreed to undertake the disposal of the sliaies, provided the directors would themselves, lake a considerable portiun of them. They proposed /.40 ,is the puce al winch the pnid up shares should he la^cn; hut the committee declined ti eating at lesb than £4^, which had been quoted a3 the price of i ho previous d.iy. "Tuat the committee being doubtful of the piopriety nf the dueciors becoming purcbaseis of any poitnni of the shares, desiied the brokers to effect tlie sale of the whole, il possible, and if not, to name the snullest number that they considered it necess>aiy for the dnectoiM to assume. *' '1 hat the directors this morning received a letter (mm Messis. Tudor and Bamett, of which the following is, a copy :—: — «■ Birchin-lane, 26"th May, 1852. " Dl'au Sir,— Taking into considerati' n tlie large amount ol shares to be dealt with, and the veiy limited market open (or their dwposnl, without seriously attect ing tlie.r value, we venture lo s>u%" st that it would be veiy desitabie that the direciois should themselves ! adopt a good portiun of them, pet haps as many n- 2">U() 'o 3000, and then we see little difh. ulty in concluding the list for tlie whole amount. — Youjs faithfully, " Robert Bamett. " Henry Tudor, " J. J. Cummins, Esq." '■ P.S. 27th May.— Since wiiling the annexed, we find t >at tlie price of (Iw shaies at bet,t is -11 to lll l 2 } and we therefore beg to tall your attention once more (o oui iiupiessioii that the public will e\pect something of a turn, and whethei, under the circumstances, Jt4o would nol be an adequate puce. R B That "the committee have declined recommending the disposal of the shaies at a less puce than £'12 lor those paid iq;, and that Messrs. 'I'idor and Jiainett had consented to adopt that [nice. •' Th.it the committee had unanimously agreed lo refommtnd th.it the boird should cot firm the arrange ment with Me-sis. Tud"r and Bamett, on the tuims pro|>osed, mcltiding the as umption of Jr>(W sh.nes h\ I the dnectorH, »t their own individual u-k; that the tian*nction should be specially reported in tlie next genuul m.etiug of (he propuetois; thin the scares so taken by the diiectois shoul'l then be olleted to the j piopnetuis vi l\,e shaies now held by the public, in piopoilion to ihen bohling in the capital of the bnnk ; lli.it the profit ausing from the disposal of the shaies be added to the re-eive fund ; an<4 that it be recommemlid to tlie general meeting to authorise a tiansfer from the undivided profits ti> the reseive fund, of a t,u(ficiorit sum to complete the j£2(JO,OOO lequirea by the deed of set-ilemi-nt." The preceding report having been fully considered by tlie boa-d, it »a> unanimously resolved ;—; — Tha- the shaies held by the bank, be sold at the rate of X' 42, for those paid up, and in propoition for those of the thud K'li' s. That a poition of the same, equal t0 '2500 paid up shares, be taken by the. aireetois, on their own individual nyk, in the proportion btated in the list now opened. That such shares be offered at the next general meeting to the then proprietor of shares, exclusive of those di-po-ed ot under tuis artangemeut, in propoition to the stock held by them respectively in the bank. That the profit aiising lioin the sale of the said $> ha it's be added to the leseive lund. '1 lint it be recommended to the next general meeting of pro|>netoi-. to Huthoiuo il.u diroctois to tiansfei horn the undiudf tl piofits to the re-erve fund a sulhcient hum lo inctense (he sum to £200,000. 'llrat such fund be held invested in (he names of the tiustees in the 3^ per Cent. Government Annuities, and that tli- addition to the reserve fund of one-tenth pait ol the annual piotits be theucefoith discon uiued. By the completion of this arrangement as thus auilionseil the hank became possessed of a profit, which did not arise out of its ori.lin.ir) banking business. aa.otuiting to £73,707 165.; nnd, in accoidance with the resolution adopted by tlie ho.ird, this sum has been added to the reserve fund, as recommended by the committee, and invested in 3£ pw Cent. Annuities, at an average cost of i 103 18s. per cent. As the (otttpUtmn of the reserve fund to £200,010, the maximum amount contemplated by the de< d of *>etilement, will pi event the necessity for any futuie deduction fumi U>e divi-nble jnofit »or that purpose, nnii a» the piofits for tht year now repnited will easily admit of its being dona, the d'rectors recommend lluit tin-, meeting should an hoiise theii applying the limber t sum of .£'i!?3ll 0s ?d. to that lund horn the balance of undivided profits', the reserve fund to be invested in tlie names of the trustees- ol the bank, and held in futuie a-> an investment apart fioin the capital of the bank, the dividends thereon being applied to the annual profits. James John Cummin* and Charles Edward i\Jau«les, Ssqrs., retire from the dnection bv lotation, in accoidance with the provisions of the deed, and now oflur themselves lor le-election. lhe directors pioceed to submit the statement of accounts; and looking to the general improvements in the bank's business, and the very satisfactory poMiion in which us finances are placed, they have pleasure in declaring the usual half-yeaily dividend at the rate of 6 per cent, per annum on the enure paid up capital of the bank, togelhei with a bonus of 16s. per shaie on the ,ivoo paid up shares, »ud ft like piopoition of bouu-> nn he £2 JOs. per share paid up on the 8000 sbaies rf the third series, p-iyable m London, free of income tax, on I ue^lay, the «9tli of the pie^ent month, and iv lhe Ci.onies, wilh the addition of 7d. in th- pound, .is boon as the inspector thall fi* afier the receipt of advices. The Chairman said thnt, to save tlio trouble of calcula-ion, lie mi";ht as well state ibat the dividend and bonus together were equal to an halfyearly dividend at the rate of 12 per cent, per annum. (Cheers.) Mr. Jackson then read the following statement of accounts, to the 30th June last :-—

The application of Clau-sen's patent for working up flax into lalirics composed chiefly of siIK, cotton, and woo len bas-b, has been proved successful both in Yorkshire and at Stepney Old F.irm, near London. A Lincp-corporal of the 61st Regiment, at present stationed at Belfast, named Benson, -who joined m Preatoa, wliere his family had been respec ble nadirs, has, by the death ot a maternal uncle, become pos-e-sed of piopprty north £70.000, and the rei-eiMim c . f: his deceased lelntive's plantation in Bailwd. e&, wlvre tho weilth was realised. Sinoe the loriunate inbeiitor of this unexpected treasure enlisted, his conduct bus been such as highly to deserve the appiobatioo of his a ipetiots.

ASSKTS. Hr.inch accounts balance ijilK i<'Ct>iv,»b:u Government (stock and lc>dns> on secu • nty lnvL'stniLMit in ok pci Ct-nis., for leservv lund »•• .oUii<liy. o Uii<liy h.ilc'niccs UuKincu vi iiatiLerd 122, 10j It 3 '2U1.0.V2 2 5 8y8,202 5 10 172,-158 19 5 8.313 8 6 41,728 18 10 £ 1,5 .4,702 i) 3

STATEMENT Or PROI'ITS. Balance of undivided profits at June, 18.51 70,179 15 4 To winch ure now to be added, jiroftt^ of tin' p.>-,t year, ending at the bi cinches 3 1st Dec, 18,31, and sit ilih London Ofhte, 30th June, 1»5« ; . .£118,268 1 5 Deduct one tenth for leserve fund 11,826 1G 2 . 106,441 5 3 ,£176,621 0 7 Deduct, Dividend and bonuses paid— At Midiummei, 1851. 41,000 0 0 At Chnstuias, 1851. 41,000 0 0 82,000 0 0 BaLinco of undivided profit at this iUte £<)..,62l 0 7

ItISSEttVEI> TUKD. At Juno, !«51,aa reported 81,864 7 3 Add to June, 1852, as per contra... ... 11,S'2(> 16 2 93,691 3 .5 Premium on Bant sbares, now added as per .report 78,76T 1G 0 £172, ti1l 19 5

LIABILITIES. Bills payable •• Bills (or col'ection.... Sundry bilmvces Reserve fund.. £1?2,<15« IDs. 5(1. Piofit and loss 94.M1 Os. 7d. Paid up capital £ s. 6. 24.3,Hr9 10 5 107 978 15 0 25,8*3 15 10 267,080 0 0 820,001) 0 0 £1,524,762 9