NEW ZEALAND LOAN AND MERCANTILE AGENCY COMPANY.

Patea Mail, Volume V, Issue 414, 5 April 1879, Page 3

NEW ZEALAND LOAN AND MERCANTILE AGENCY COMPANY.

The fourteeth annual general meeting of the above Company was held at London, on the 7th February last. The following is the report presented to Shareholders : The Directors in submitting to the Shareholders for their approval and adoption, the furteenth annual report of the Company, -with balance sheet containing statement of accounts made up in New Zealand to 30th September, and in London to 31st December, 1878, beg to invite their attention to the following results. The net profit for the year 1878, inclusive of £3,548 2s 9d brought forward from the preceding year, after deducting all expenses, interest, commission and' income tax, writing off stationery and furniture, and making ample provision for all had and doubtful debts, shows a sum of £58,091 6s Id, which the Directors recommend should bo applied as follows, viz : £ s. d. To payment of a dividend at the rate of 10 per cent, per annum, and interest on calls paid in advance on old shares 22,873 0 2 To payment of bonus at 5 per cent. ... ... ... 11,394 1 9 To reserve fund ... ... 20,000 0 0 To be carried forward ... 3,824 4 2 58,091 6 1 In July last an ad interim dividend was pa*d at the rate of 10 percent, per annum, amounting with interest on calls paid in advance to £10,514 7s 4d, so that there is now left for distribution the sum of £23,752 14s 7d. In accordance with the resolutions passed at an extraordinary general meeting of the Shareholders held on Bth Febinary, 1878, the issue of 40,000 shares of £25 each then authorised has been carried into effect. The premium on emission at 10s per share, amounting to £20,000, the Directors now propose shall be added to the reserve fund, which, with the £20,000 recommended to be added from the profits of the past year, will increase that fund £40,000, thereby raising It to a total of £160,000. Notwithstanding the commercial disasters and financial difficulties consequent on the suspension of the City of Glasgow Bank, and other provincial banking institutions in the last quarter of the year 1878, it is with satisfaction that the Dilectors have to inform the Shareholders that the Company has in no way been involved in the recent failures. There has been a satisfactory increase of debenture-capital during the past year, for which safe and desirable 'outlets continue to be found in the Australasian colonies and New Zealand. Throughout the former the evil effects of the cumulative droughts of the years 1877 and 1878 have passed away, and in the latter, while larger areas are brought under cultivation, increased facilities are rapidly being afforded for the occupation of the country and for the speedy transit of wool and grain to the various ports for shipment. During the past year the consignments of these and other colonial products to the Company have been much developed, and it now occupies for the first time the highest position amongst importers of colonial wool. The extension of thsCompany’sbusiness has necessitated considerable additions to the staff both in Loudon and the Colonics. The Directors, accordingly, consider that the time has now arrived for the establishment of a Guarantee and Provident Fund, for the purpose not only of insuring the fidelity of the Company’s officials, but, by the accumulation and investment of guarantee premiums which have hitherto been paid to various Associations on their behalf, of making provision for the payment of suitable pensions, on retirement, 'to those who, after a satisfactory term of service, might be precluded from remaining on the staff. In order to form a nucleus for such a fund, the Directors invite the co-operation of the Shareholders by their authorising a sum of £5,000 to be placed for this purpose at the disposal of the Directors.