COMPANY AFFAIRS.

Taranaki Daily News, Volume LVII, Issue 210, 12 February 1915, Page 3

COMPANY AFFAIRS.

N.Z. LOAN AND MERCANTILE AGENCY. The twentieth annual meeting of stockholders of the New Zealand Loan and Mercantile Agency Company, Ltd., was held in London on December 10th last, Mr .Warrington Laing (chairman of the company) presiding. ! The chairman, in moving the adoption of the report and accounts, e : plained that the accounts covered the 1 period to June 30th last, during which j the company's business was carried or . under normal conditions, but later on. owing to the outbreak of the war, and, in a lesser degree, the continuance of a state of drought in parts of Australia, ! entirely new conditions had arisen, and these were rellected in the report, with i ' its recommendations. The directors re- ]

commended the. payment of a final dividend at tile rate of 5 per cent, per annum, less income tax ,011 the cumulative preference stock for the lialfyear to June 30tli. An interim dividend at the same rate for the previous six I months was paid on .Tune 12th. They ' further recommended payment of a dividend at the rate of 5 per cent, per cent., less income tax, for the year to .Tune 30tl). They liad again appropriated the sum of £SOOO to the staff ' benevolent fund, but did not make, the | usual appropriations to reserve account. I or for writing down premises account, j but carried fowaru a substantial balance lof £52,279 5s 3d. This decision was ' only come to by the directors after the fullest consideration of all the circum- 1 I stances, and must not be taken as evidence of a departure from the policy i Which the directors had always so ' strongly urged, of the importance of ; building up reserves and writing down premises. The chairman referred to the war, and

continued: —"The realisation of wool and other produce is to a great extent hindered, resulting in the disturbance of our regular sequence, of finance in relation to our clients, many of whom must lean on the company for longer periods, and to a greater extent than 1 under normal conditions. Tn addition to this, conditions of drought have existed for some time in parts of Australia, chiefly in Victoria and portions of New South Wales, and although rains have fallen in different localities, and the situation is to some extent improved, nevertheless there has already been considerable mortality amongst sheep and lambs, and we must expect ; that wool from these districts will he j both less in quantity and lighter in con- j j dition than last year. In these, circum-1 stances the directors feel that it is: I more to the best interests of the pany to carry forward a large and unappropriated balance available, for any possible contingency than to make the usual appropriation to reserves and premises accounts. The directors were ■ strengthened i n this view bv the fact j that next vear a considerable amount j will be available, a portion of which, at any rale, may be applied to these ac- J counts, from the liquidation of the New j Zealand Land Associntion—now practi- j cally completed—by the sale since June 30th of the last of its station properties." j Regarding the prospects for the cur- ,i | rent year the chairman said he feared I j they must look for a not inconsiderable : shrinkage in profits. Tt was impossible to foretell what the effects' of the war would be on the !irm''s business in the near future. Markets for wool were I greatly restricted, and under present conditions the outlets would probably be confined to Great Britain, Japan, and America. It was, perhaps, not generally known that in normal circumstances. GO per cent, of the meriiio clip, which was used for the manufacture of the filer descriptions of cloth, was taken for Continental requirements. Values of merino wool already showed a eonsider-

able fall, and when tlie Australian clip ! became available in larger ouantiti"-!. a further depreciation seemed inevitable. | On the other hand, crossbred wool, of which the larger quantity came from | Xew Zealand, was in a different posi--1 tion, Great Britain and America being' tlio principal purchasers. The heavy demand for military requirements bad Had the effect of raising prices to a lugh level, and these conditions seemed like--1-' to continue for some time. Values of frozen meat and other food products also appeared likely tn be maintained en account of the large Government requirements. A turtlier burden must fall on the company on account of increased taxation, which had already neen indi- , cated at Home, and a higher taxation was also inevitable botli in Australia and Xew Zealand. The revenue for the year, which included a sum of £00(l(i received from the liquidator of the Land Association, amounted to ;C438,V2!>, which was £4lOl in excess of last, year's income. Charges showed an increase of C-t'it"). Increasing charges, the chairman remarked, were regrettable, but the dij rectors feared they were to a great i extent inevitable, owing to the condij lions existing in Australasia. The ques- . lion, however, was a. burning one, and I was occupyiny the careful attention of j the directors, as well as the local boards j and executive in Australia and Xew

Zealand. It was resolved, on tbo motion of tlie chairman, seconded by Mr. A. 11. Mitehison, tliat tbo report and statement of accounts be adopted, and that ft final dividend at the rate of 5 per cent, per annum less income tax, on tbe cumulative preference stock for this six montlis to June ISOih. IHI4, and a dividend at tlie rate of 5 per cent, per annum, lens income ia**. on tlie ordinary stock for the year to June 30th, 1!) M, bo paid. Mr. Henry -T. Gibbs was re-elected a director of the company, and Messrs Kemp, Sons. Sondoll ami Co., end Mr. Sydney T5. Worlev auditors. A vote of thanks was passed to tbo chairman, directors, members of local boards, and the London and colonial staff for their services durim; the year, and the chairman added a personal' triInito to the efficiency ami loyaltv of tlft staff.