N.Z. LOAN AND MERCANTILE AGENCY COMPANY.

Wairarapa Age, Volume XXIX, Issue 8342, 26 January 1907, Page 6

N.Z. LOAN AND MERCANTILE AGENCY COMPANY.

(From Our London Correspondent), i LONDON, December 14, 1906. The twelfth annual meeting of the ! New Zealand Loan and Mercantile I Agency Co., Ltd., was held on De- I cember 6th last, at their offices at No. 11 Coleman Street, E.G., Mr Dawes presiding. As the chief items of the report are embodied in the Chairman's speech, I content myself with giving this at some length—"As you have each received a copy of tlie report and balance sheet, 1 will ask you, as usual, to take them as read. The balance sheet shows that after paying interest on the prior lien, second and third debenture stocks, and adding £52,622 7s 4d to reserve, brining it up to £147,000, there remains to the credit of profit and loss account, including the balance b'.vrJTh!: forward from last year, the sum of £5,781 Is sd. From this amount we ,ix.w rcconrnr.end the payin ant of a divide.id at the rate of 3 per ani, less ir.ror.ie t:i::, which will absorb ££,428.0s J (Id, leaving a balance of £BSB tis 7d to be carried forward. I venture to think you will consider these figures satisfactory, and unless anything happens of an extraordinary and unforeseen nature, the compary will now have the hallmark of being a regular- divider.dpayir.g concern. I need hardly tell - you that the question of dividend was one to which the directors gave much consideration in all its bearings, and had we not thought there was every treasonable prospect of the company being able to continue paying ' dividends, we should not have considered it in your best interests to make this new departure. Again, the amount required to pay the dividend is small, and so doer, not materially interfere with the important matter of building up a reserve *as*quickly as possible, a policy with which the board are fully impressed, and which is especially necessary for the protection of the holders of partly-paid shares, on which the liability is so large in proportion to the amount paid up. Australia has been fortunate in having another very prosperous year, and our Aus- ' tralian earnings are increased through the large quantity of wool handled and the high prices l-ealised. The building of our new wool stores in Sydney is ' now completed and they are highly spoken of, both by friends and competitors; there is no doubt they will prove a great advantage to the company. The continued prosperity of New Zealand is a matter x for congratulation, and I am glad to be able to state that New Zealand has again returned us a satisfactory surplus. As an indication of the extraordinary recuperative powers of Australia, I would mention that the increase in the number of sheep in Australia between the years 1902 and 1905 was about twenty-one and a quarter millions, while the estimated increase for this year is about eight and a half millions, making about thirty millions. The increase in the wool clip for last year was about 230,000 bales, and for this year 170,000. With these large increases, one mijjht expect some depreciation in values would follow, but I am glad to say that at the end of June prices, on average, ruled higher than at the corresponding period last year. The value of a bale of colonial wool sold by the company in London at the end of June amounted to £l9, as compared with £l7 10s last year. In consequence of the increased, but rather irregular, supplies of frozen meat from Australia and Argentina, low .rates had to be accepted at times in order to reduce stocks; latterly supplies from"Argentina have been a good deal restricted, and prices of all descriptions of frozen meat at .a higher level, and it looks as though the supplies from Australia and New Zealand, which are undoubtedly the p larger this season, will meet a better market. A good market was experienced here for Australasian butter, and prices on an average ruled at a higher level than for the past ten years. We are much impressed with the increasing importance of the dairy industry, and we are doing our utmost to secure our share of it. We have opened offices in Tooley Street, which is the London centre of this business, in order that our salesmen may keep in close touch with the trade. Having, spoken of the recuperative powers of Australia, I think it will be gratifying to you if I remind you for a moment of the equally recuperative powers of this company, as evidenced in the increased values of the different classes of its debenture stocks and shares. On the debit side, capital shows a small increase of £IOO, arising from arrears of calls recovered during the year. New Zealand land association deposit account has increased £94,624 2s 7d, 1 owing to the deposit of further surplus funds arising from sales of properties, etc. Contingent liabilities are very much reduced, as our guarantee in respect of interest on the debentures of the Real Estate Mortgage and Deposit 'Bank terminated during the year. This will effect a considerable saving in expense in the future. Under the old company's guarantee we also had to make good certain capital loss by the issue of second and third debenture stocks to the Real Estate Bank debenture holders. In preference to issuing fresh debentures stocks we arranged this by giving them £11,982 second and £8,274 third 4 of the stocks held by the company.* This will explain the reduction to this extent of the amount of the stocks in the company's hands, as shown on the credit side. We are very glad that we are now able to take out of our balance sheet this particular item of contingent liabilities, which has appeared for so many years. On the credit side cash with bankers and loans in London at short notice .show a reduction of £72,266 10s Bd, while our investmerits in first-class securities are increased by £182,299 4s. Revenue ' is increased by £65,227 8s lOd, which I hope you will consider satisfactory, but our general expenses are higher by £8,421 9s 6d." The resolution was seconded by Mr Warrington-Laing and carried unanimously. A resolution was afterwards passed empowering the directors to borrow, if necessary, up to £250,000, instead of, as before, £50,000, on the gilt-edged securities held by the company. <. ' ■■ BtfKCMO has enabled- many n poor sufferer from rheumatism, gout, sciatica, at d lumbago to once more enjoy health and happiness. 2/6 and 4/6. Sold everywhere.