NEW ZEALAND LAND MORTGAGE COMPANY (LIMITED)

Te Aroha News, Volume II, Issue 95, 28 March 1885, Page 6

NEW ZEALAND LAND MORTGAGE COMPANY (LIMITED)

The fi»t annual ordinary general meeting of the shareholders of thin Company was held on January SO, Sir William J. Power in the ohair. The Chairman said that, as stated in the report, the net profit amounted to £9,151, and the directors recommended a dividend at tho rate of 7 per cent, per annum, which would absorb £6,388, and tbat the balance (£2.813) be oarried forward. The not profit; was arriyed at, after deduoting £2107 for preliminary expenses and office furniture, which was also entirely written off. He should state that the dividend had been earned in eleven months only. If the operations of the Company had been oarried on for the full period of twelve months, and th«y had not had to write off so large a sum for preliminary expenses, the dividend would have been considerably larger. The debentures came in in regular flow, and as fast as the money oame in hero it was invented in New Zealand. Another fact of importance was that they wore dealing with a prosperous oountry, a country full of resources, and therefore the margin of their securities was constantly enlarging. In fact, tho property was getting better every year. A hotter security than that which the debenture holders had there could hardly be. for thero was not only an uncalled capital of £1,00u.U00, but there wore also the entire investments of tbe Company, and this increasing margin. Mr Thomas Russell seconded the adoption of the report. Mr Newman said ho understood that the stuff of tho New Zealand Insurance Company was employed in the business of this Company, which he believed was an advantage to this Company, but he should be glad to know in what relation this Company stool with the New Zealand Insurance Company's staff what control it had over them, and what was the remuneration. Mr Russell said he had to do with the making of the arrangement with the New Zealand Insurance Company, and could therofore speak with certainty as to the facts. The Insurance Company gave thoir office to this Company free of cost The Neve Zealand secretary of this Company— Mr Buttle—performed some duty for the Insurance Company. This Company paid a portion of his salary, and the remainder was paid by the Insurance Company; but with that exception tho whole of the services of the clerks wero given to this Company free of cost With regard to the control over these officers who were paid by another company, one of the rules of this Company was that no advance whatever was made except through the Board at Auckland, which was presided over by their chairman—Sir Frederiok Whitaker— who had no connection with the Insurance Company. The officers of the insuranca company in the outlying districts merely forwarded applications for loans, and tho actual work was done by the board of this Company in Auckland. Sir Frederick Whitaker (the chairman) and Mr Buttle (the manager) were entirely in the interest of the Company, and, as a matter of course, exercised control on behalf of this company. One of the features of this Company was than they had succeeded in establishing a management at home and abroad on the cheapest possible basis, and ho need hardly say that as they were dealing with tho narrow nargin of difference between the interest which they paid on debentures and tho interest which they received from borrowers, the small expense of management was one or the great elements of the success of the Company. And he thought they had in their staff here a most efficient and careful management at the least possible amount of expense. The motion was then agreed to. The retiring directors, Mr W. L. Graham and Mr liark worthy, were then re-e ected. At a subsequent extra ordinary meeting, various alterations were made in the Articles of Association, in compliance with the requirements of tho Committee of the Stocs Exchange.