The New Zealand Times (PUBLISHED DAILY.) WEDNESDAY, FEBRUARY 6, 1878.

New Zealand Times, Volume XXXIII, Issue 5264, 6 February 1878, Page 2

The New Zealand Times (PUBLISHED DAILY.) WEDNESDAY, FEBRUARY 6, 1878.

The fuct that yesterday wo reported the annual meetings of two strictly local companies is one that deserves some special notice. The companies are very different in their objects and modes of operation, but both concur in reporting that their operations have been successful, so that the directors of each were enabled to recommend the payment of a satisfactory dividend upon the capital invested. One of these—the Wellington Gas Company—stands alone in this town as carrying on a local manufacture. Probably the time may not be distant when the examples given by Nelson and Otago may be followed by companies being formed for the manufacture of woollen goods, instead of our continuing to ship the raw material to England, and re-import it from thence in the shape of blankets, tweed, and broadcloth, incurring charges for freight, duty, &c., which alone ought to represent a handsome profit. It is no doubt gratifying to see from time to time the large value of the wool exported from this port ; but wo should be content to see this considerably diminished if we knew that the diminution was caused by “home consumption.” The other- the Wellington, Trust, 1 Loan, and Investment Company—is simply a money-dealing association, but as such—to use a familiar quotation, slightly altered, —if not a manufacturer itself, it is, or may be, the cause; of manufactures by others. It is not, however, in this aspect mainly that we now regard it. It is at once a sign of the development (by growth) of our social condition, and a striking application of the principle of co-operation. With ;a capital that, before its augmentation, amounted to no less than £IOO,OOO, of which £51,250 was paid up, its capital was not made up of large sums, such as only the wealthy-could invest, but'of the accumulations of monthly payments small enough to be within the power of almost every man in the community. The same mode, we perceive, is being followed in respect to the increase of the capital, which has been resolved upon during the past year.' Each shareholder has had the opportunity to double his investment, paying up £5 on each new share taken, in monthly instalments of 2s. 6d. each. This was, so far as we know, the first instance in which the old practice of the building societies was applied to the raising of the capital of a joint-stock company, and that it has succeeded is shown by the fact, stated by the chairman at the meeting, that the holders of the original 10,000 shares had availed themselves of the right to take up new ones to an extent exceeding 8000 shares.. Probably the remaining 2000 will soon be allotted, as it , was intimated -that arrangements would be made by which shareholders might subscribe for portions of the shares that have .not beep taken up. It may be interesting to add that a laige company has been recently formed in Dunedin, upon a similar basis. Those who are familiar with the working of the building societies tkat have been carried on here, will see that this company, with its large capital and business, is the natural outcome ef that small and humble society that was established nearly thirty years ago. Many still remember the active part that was taken by the late Mr. Wil■niAM Allen in the formation and working of the first and succeeding societies, but he could have little imagined that he should live to see the germinal idea that he suggested and fostered, developed into an undertaking of such magnitude as the present company. It was pleasant however to see his son taking part in the proceedings of Monday evening, and he must have felt a very natural pride in seeing what the small seed has grown to be. The sums stated in the balance-sheet’of the company look large even in these days of “big figures.” Deposits, £81,668,; amounts belonging to investors, £45,142 ; mortgages held by the company, £182,897, are sums that would have taken away the breath of those who had the management of the societies referred to in their earlier days. Yet the bare enunciation of these sums

fails to I convey anything like their true significance. They do indeed prove an amount of public confidence that is most gratifiying, but they also show an extent, of resources that may well maintain and justify that confidence ; while the'shareholders see that because of the support which the public finds it advantageous to give, the capital of £51,000 is so expanded that the company edn show interest-bearing securities to nearly four times its amount. Of course the depositors are paid for this, and the accounts show that nearly £BOOO has been appropriated during the year to interest on deposits and investments; It is because it is profitable to the investors, that these large sums aro placed and kept at the disposal of the directors of the company. The larger, truer moaning of these figures is still to be found. It cannot bo traced or recorded by the statist, but it exists in the shape of houses, farms, runs, homes, which have been bought, built, cultivated, and improved by advances made by the company, and which will remain as substantial heritages to many a family that might have possessed little or nothing had it not been for this and' similar societies. The power (o borrow and repay by regular but small instalments, is a priceless boon to prudent men, who as artisans, clerks, and men of business, earn incomes more or loss regular, and are enabled by these periodical payments to save and lay by in a permanent and improving form, that which otherwise might have been frittered away, leaving “not a rack behind.” That the same principle is or can be applied ! to much larger transactions is made evident by the advance which the company made,, or rather undertook to make, between four and live years ago, to the then-oxisling Province of Wellington, for - : tho reclamation pf the land on Lambtbh-quay. I It is possible; though by no means certain, that the province might have got the money at similar rates elsewhere, but it could scarcely.have, got-it on terms so advantageous, for we are informed that the.■Government*.haA taken, and still takes, just such sums each month as it requires to pay tho contractor, and;thf)s ’ddea'-not pay interest bib a single pound for which it lias not an immediate use. That the money would have been got in other ways, if tho company had refused to entertain tho proposition, wo do not fur a moment doubt, and

yet the Piuvincial Government must have felt encouraged to go on with the work, when it found that instead of having to seek outside the province or tho colony, there was an association in Wellington which could and would venture to advance £IOO,OOO on such an undertaking. The time may come when it will be recognised that the directors of the company probably saw that in entering into a business arrangement they were doing not a little for tho city and province in which their business was being carried on. Our advertising columns of late have shown that both local and foreign companies are entering into and carrying on similar business to that of the company which is tho subject of our remarks; but with the standing it has obtained, and the capital that it will have to employ, we think there is little fear but that,its future reports will be as satisfactory as tho one lately presented to its shareholders.