NEW ZEALAND LOAN AND MERCANTILE AGENCY.

Waikato Times, Volume XXX, Issue 2453, 31 March 1888, Page 2

NEW ZEALAND LOAN AND MERCANTILE AGENCY.

(Daily News, Feb. 4th.) The anmi.il meeting of this company was held yesterday at the Cannon-street Hotel. The Right Hon. A. J. Mundella, M.i\, who presided, in moving the adoption of the report, which recommended the payment of a dividend at the rate of 10 per cent., and a bonus of 5 per Kent.. which with the interim dividend made 15 per cent, for the year, congratulated the meeting on the light which the report and the balance sheet threw upon the present position and prospects of the Australian colonies and of New Zealand, and said, although in Now Zealand the return to prosperity lvul been less marked than in Australia, there had been in that colony a decided return of confidence and increased activity. A 1 though New Zualiad been passing through a time of severe trial and adversity, that adversity had not been without its use, for it had led to greater thrift and prudence in the administration of both public and private affairs. The balance-sheet, which ended in the colony on the Ist of September, and in this country on the Mist. December, showed an increased earning power and increased profits during tin. l year. In ISSIi the net earnings were £57,559 ; last year they were £60,5119, an increase of nearly £12,000, and while in ISSG they carried forward £3,500, they now carried forward £15, 02,3. In the balance sheet there was an item, " Company's premises, stores, and plant, .€201,812," but since the close of the financial year their Melbourne manager had, after much negotiation, sold their premises in Collins-street in that city for £200,000. Those premises stood in the company's books at £120,000, leaving a net profit of .£BO,OOO. If he were asked why did they sell those premises, his reply would be that Collinsstreet had become a great centrc of business, and that it would be just as reasonable for them to have stores for wool and other produce in Cannonstreet or Cheapside as it was to have them now in Collins-street, Melbourne. They proposed to erect a plain building near the railway station, where they could carry on the business more efficiently and economically. Thpy did not propose to deal with this £80.000 as profit, but that it should be heifi as a special fund to meet any contingencies that might arise. The Chairman then read copious extracts from the reports of the managers in the different Australian colonies and in New Zealand, all of them speaking of the season having been generally favourable, of good harvests, and of increased activity in trade. He went on to say that some outsiders had assumed that the company's operations were exclusively confined to New Zealand. Until 1874, they were so, hut in that year they decidcd to extend them to Australia, and the result had been that their mercantile business was rapidly becoming the largest part of their business, and so far from their business being confined to New Zealand, GO per cent, of their capital was used in the Australian colonies. The money they raised on debentures was used mainly in loans on mortgage of real estate, but their mercantile business had practically no limit except their own capacity, and it was annually growing. They began 23 years ago, with debentures at 5, (5, and 7 per cent. They first paid off those at 7 per cent, then those at (i, and last year they paid off a considerable portion of those at 5 per cent, and now they had come down to 4A and 4 per cent. Their mercantile business was the most profitable department of their business, and it could be increased without adding proportionately to the expense. He thought there ought to be a capital specially provided for that business. It ought to be conducted not on loans, but on the capital of the company. He was stating what was foreshadowing in the minds of the directors, but lie did not know what form it might take.—Sir.J. Furgusson seconded the motion. —A discussion followed, in which Mr Worlev suggested that the £SO,OOO profit on the sale of the Melbourne premises should be specially invested, and used to equalise dividends, and Mr Larkworthy, ths managing director, said it would be available for that purpose.—The motion was unanimously passed, the retiring directors and auditors were re-elected, and thanks having been voted to the chairman and directors, and to the home and colonial staff, the meeting separated.