LOAN AND MERCHANTILE AGENCY. THE ANNUAL MEETING.

Te Aroha News, Volume VI, Issue 355, 30 March 1889, Page 5

LOAN AND MERCHANTILE AGENCY. THE ANNUAL MEETING.

The annual meeting of this company was held on February Ist at the Gannon-street Hotel, Sir J. Ferguson, M.P. presiding. The report recommended a dividend at the rate ot ten per cent, per- anuum, and a bonus of 5 per cent., carrying over £12,348. The Chairman, in moving the adoption of the report and accounts, referred to the continued prosperity of the company, and to the consequent growth of the capital, and went on to sp<3ak of the change in the conditions of the company'? operations, three-fourths of its business being now done in Australia, and considerably more than half its capital being held in this country. These conditions made another change absolutely inevitable — namely, that the Boaid in London should assume increased responsibility, and should hold the reins in their own hands. There was no insinuation that they had not been ably served by the Colonial Board, but it was not suitable under the altered condition of things that there should be such large responsibility delegated to the Board sitting in New Zealand. Therefore the Boatd here had resolved to take powers to exercise supreme control over the company, reviewing all important matters in London, and the managers in the colonies bring directly responsible to the London Board, so that no large transactions could take place without the approval and confirmation ot the latter. Mr Larkworthy, the managing director, was now in the colonies, communicating bo the Board the recommendations which he thought would most effectively carry out their dehigns. With this increased control and responsibility they must strengthen the London Board. Sir George Russell, M.P. for Berkshire, a good lawyer, and of large experience in commercial affairs, had consented to join the Board, but the directors would not hastily add to it, and would only do so when assured that the additional members would give strength to the Board and confidence to the public. Another important change was the separation of the company from the Bank of New Zealand. In theearly days of the company it was a great convenience that the agents for thebank should actasagentsforthecompany, but as the business increased it waa found expedient to have separate agents, and now the company had not a single agent connected with the bank. At the end of the present lease the company would be provided with separate offices. With regard to the depression of trade in the colonies, it did nob occur in a moment, and the Board had marked its rise and progress, and, being fully informed of every transaction by the New Zealand Board, they had heen able to provide for every loss as it accrued. The drought in Australia had been terrible, but he had himself seen the wonderful recuperation of the country after a drought ; and whereas in December in South Australia there was a sky of brass, and the whole region seemed nothing but dust, while the temperature was from 110 to 115 degrees, the last advices were that part of the country was now covered with grass. \ Tho Board had not yet roceivod olio full ac-

counts, but they had no reason to believe thab the company would suffer atw serious Joss from the drought. — Sir E. Stafford seconded /the motion. —In the course of some discussion Mr Montefiore expressed his satisfaction at the position of fcho company, and his confidence in it. — The report was adopted; and Sir J. Fergusson and Mr Mundella, M.P., were re-elected directors. The auditors were re-elected, and sundry votes of thanks were passed, including one to the staff at home and in the colonies. — The meeting 1 was then made extraordinary, and resolutions were passed for carrying out the alterations which the chairman had referred to.