Novelist. Through Deep Waters.

Waikato Times, Volume XXX, Issue 2462, 21 April 1888, Page 1 (Supplement)

Novelist. Through Deep Waters.

By TNA LKON CASSILTS,

Author of "lima Raphael, Actrcss," "The Young Widower," " .M. Caddie's Carpet Bay," &c„ &c.

CIIAPTER 11.

It was about a fortnight after the visit to Messrs Angus's Fine Art 'Gallery that a handsome cabriolet stopped outside a house in Great Queen-street, Westminster, and Sir •Sehvyn Grant-Faulkner and the German Painter, Elsinger, jumped out.

" I wonder if he is in," said Sir Selwyn, as he knocked at the door. " Strange place to choose, this, isn't it.

" Not for an artist," said Elsinger, " it is one of the most picturesque in London." { As lie spoke the door was opened 'by a young man, an Italian, who, in answer to Sir Selwyn's inquiry if M. de Cainbaceres was within, | said " Si, Signori," and, receiving their cards with a low bow, conducted the visitors to a large room to the left of the hall, lemarking, by way of apology, that the signor was in the drawing-room with some ladies, but would be disengaged in a few moments. The apartment in which the gentlemen found themselves was hansomely furnished, and showed that an artistic taste had presided over its arrangements; oven the hall, as Elsinger had not failed to observe, was adorned with llowers and statues, for the artist's eye must be pleased, and Cola de Cainbaceres, it would seem, was determined to bring Italy over to England with him. Before long the visitors heard steps descending the stairs, and the rustling of silken garments in the hall, accompanied by a treble of ladies' voice, and the tones a man's voice, very sweet and clear, but not English, and evidently speaking some foreign language. In another moment the hall door closed upon the ladies, and the door of the apartment wore Sir Sehvyn and his

companion were waiting was gently opened, giving entrance to a young man of, perhaps, five or six-and-twenty, who advanced at once, holding out a hand so slender and delicately-shaped that an ignorant observer would have supposed it lacked strength. '• Ah !"-he said, in French, " how do you do, Sir Selwyn 1 I am sorry that you have been kept waiting ; and, Elsinger, I did not expect the pleasure of meeting you." He clasped the hand of the German painter warmly, and GrantFaulkner said—

" I cannot claim so long a:

acquaintance as my friend Elsinger, Don Cala ; but he was coming to call upon you, and I thought that I might give myself the pleasure of accompanying him. " You are most welcome," replied the artist " perhaps you would like to come to the studio 1 You would, I know, Elsinger, though it is not in anything like order at present." " I don't know what you call order, M. de Cambaceres," said Sir Selwyn, as the young man led the way to the studio, " for your studio in Rome was not in the state which usually goes by the name of order." "Ah! but that is what ladies call order ; an atelier never could be neat, could it? Half my things are not even unpacked yet, and the other half not arranged; but I have got some beautiful statuettes of M 's and a cabinet piece by L , a perfect gem, which I want you to see." He went up the wide stone stairs, and, opening a door at the top of the first landing, discovered a small ante-room (in which, as in the hall were statues and flowers), which having traversed the Spanish artist, opened another door, and ushered his guests into the studio. It was a large room, lighted from above, and with neutral-tinted paper on the walls, so as to produce no displeasing clash with the colours in the paintings which hung against it. There were not, at present, a great many of these, and certainly Cambaceres had been right in saying that the apartment could hardly be called orderly. It was, indeed, in considerable confusion. Several large packing cases, one partially unpacked, still encumbered the floor;

handsome chairs, silk covered couches, and marble-topped and inlaidtopped tables were, to use a housewife's term, "dancing reels;" the wide tire-place was filled with a pyramid of flowers; over the mantlepiece a magnificent pier glass ran up to the vaulted ceiling of the chamber, and on the mantel-piece itself were several statuettes and models

not yet arranged in their places. In one corner a rich table cloth had

been thrown on the floor, in another was a pile of books ; several painting implements were scattered about, some 011 chairs, some on tables; a supberb cabinet of ebony inlaid with silver, of Italian workmanship, the gift of a crowned head, stood opposite the fire-place, and on either side

of it was a noble statue, the one a Psyche; the other a Venus : on the third pedestal was a model of Milat Cathedra], wrought with wonderful skill and beauty; on a fourth a group of Greek statuary, presented to the painter by the Pope ; while a fifth sustained a Parian vase of

transparent whiteness and matchless grace of form. The few paintings yet hung were gems of art; two of them were Cambaceres' own work; an easel with an unfinished painting on it stood nearly in the centre of the studio, not far from it was a large table literally covered with sketch books drawings, papers, and photographs. The picturesque confusion of the chamber was completed by a num-

ber of Russian bronzes and articles of virtue from Italy and France, which occupied a splendid table topped with inlaid coloured marbles, itself a work of art.

Albrecht von Elsinger advanced at once to the easel ; Sir Selwyn, catching sight of a noble painting of Cambaceres': "The Death of Rienzi," paused involuntarily. Don Cola turned to Elsinger, and stood silent while the German examined

the incomplete work before him. Strangely matched were those two men, between whom a friendship which time would doubtless ripen had sprung up, followers of the same profession, and in all else with nothing, it would seem in common ; the one Teutonic, tho other Latin, the one with the fair hair, the blue eye, the light complexion of the Gothic ancestors, in stature somewhat tall, but striking the eye as built more for power than grace ; the other with the olive hues of the Spaniard enriched by tho clear brown of his West Indian blood, with raven hair and black eyes, and that peculiar symmetry of form and grace of movement which distin-

guishes the Creole race. Elsinger had said that Cainbaceres was the

most handsome man he had ever met; and certainly the young painter was one of those men who challenge the notice and admiration even of their own sex. Most men would

lave used the term " beautiful" ■ather than " handsome" in speak-

ing of him ; not as we speak of an Antinous or a Narcissus conveying the idea of effeminacy, but because where there is such perfection and delicacy of chiselling, such harmony and colouring as in this artist, the adjective " handsome," is tame and almost meaningless; moreover, "a beautiful face" seems to carry the impression of something more than the mere beauty of feature, which might be at least considerably

marred by being the medium of a sinister intellect or a debased soul. This is too often the case among th<* Creoles, who frequently possessing a personal beauty unrivalled by the European races, unite to it an expression of eye and lip—" a lurking devil," which makes us regard tlio very beauty with a feeling of distrust proportioned to our admiration. But there was nothing sinister in the countenance of the man who stood by Yon Elsinger ; a nobly balanced head, a forehead broad, high, and full, the brow very prominent, the imaginative and reflective organs remarkably developed, large black eyes of singular brilliance, delicately curved lips, habitually compressed, rarely, to judge by their expression now, smiling—this was a face 110 one could pass by, which women would trust instinctively; proud it was, yet without hauteur—grave to sterness, but a gravity that attracted instead of repelling. Standing, as

now, with his features in perfect repose, there was in every line that profound sadness which no one sorrow, however heavy, can pormanenty impress upon a human countenance, which only an ever present care that crushes all that might be happiness and takes the very light from the sunshine, can impart. Perhaps the index to this lay in the taint of half caste, which, while it gave to the painter its own peculiar beauty, rob lied him, as in revenge, of the inward peace for which he would joyfully have yielded the outward grace. Patrican as he was, as he looked, recalling some of those grand old portraits of Spanish grandees in the days when the cry of 11 Spain and St. Jago," was the harbinger of victory, when nobility was, as it should be, in truth a caste, the bright Castilian steam was I crossed and crowded. To many, to most, that knowledge would cause no pain, nay, they would vaunt, the " blue blood," and forgot that its azure was dimmed ; but Cola de Cambaceres was of a different mould, and it would be strange if the sword had not pierced deeply. "You will not decipher much of that painting," he said, after a short silence, " there is so little done. I have not yet had much time ; and you see what disorder the studio is in." Here is the cabinet piece I wanted to show you." He opened the drawer of a table near him and drew forth a small picture, which he placed in Elsinger's hand ; and at the same moment Sir Selwyn came up.

"M. do Cambaeeres," he said,

" you must let me come again and see your " Ricnzi," unless, indeed, some one lias been fortunate enough to secure it."

The artist shook his head

"No, Sir Selwyn ; but it will not be here further than another week or ten clays : it is going to Pall Mall."

"Ah ! that is right, Your studio, Monsieur, invites one to forget everything except its contents ; 1 can hardly keep ray eyes from wandering all round, or decide what object to fix upon with a steady attention."

" L'embarras de riehesse," observed Elsinger, smiling. " Well, let me guide you, Sir Selwyn ; look at this model of Milan—c'est superbe ! but are we interrupting you, Cambaceres V

"Not afc all; I have given up today to idleness. You have not told me your opinion of L 's picture." '• There cannot be two ; it is a gem. Where did you pick it up 1 It is not easy to getL——'s pictures now." "It was a gift," said the West Indian, " from Cardinal A—-—." "Ah !" said Elsinger. " I met him in your studio in Rome six months ago ; but, Oambaceres, you had not this Milan then."

" No," said Don Cola; " the Princess Colonna did me the honour to bestow that gift upon me a week before I left Rome."

" A noble gift," said Grant-

Faulknnr, adding, with a smile, " the Princess Colonna was it, Don Cola, or the Princess Teresa ?"

" The Signorina Teresa' returned the painter, without even a change in his mobile features.

Sir Selwyn glanced keenly at the speaker, and remarked, laugliingty — " Rumour in Rome, you know, M. de Cambaceres, credited la belle Teresa with a deep interest in ColaMaria."

" Rumour, in a city where gossip is daily bread, goes for nothing, Sir Selwyn," said the artist, carelessly ; " at any rate, my vanity never led me to imagine that the Princes? Teresa honoured me so far as you seem to intimate."

" I wish," said Elsinger, " that had I been able to render her equal justice, I could have changed places with you in painting la diva's portrait."

"You admired her so much?" said the West Indian. "Well, she was very beautiful, but she lacks mind."

" You don't want a ' blue stocking,' Cambaceres do you?" said Elsinger. " A blue stocking," repeated the painter, looking a little puzzled ; adding directly, " Ah ! je comprends; no, but is there no via medh? Teresa Colonna was a tliorough Roman," "Then you have not lost your heart to her," said the German, smiling, " will you be equally proof against the English maidens V "Quien sabe I —but I know

nothing of them yet, and the specimens I saw this morning were not attractive."

"Ah ! the ladies whose silvery chatter we heard while we were waiting for you?" said GrantFaulkner. " I thought you know the voice of one of them."

" 'Tis likely, monsieur. They were Mrs Chandos and her daughter,"

" Millicent Chandos !" exclaimed Sir Selwyn, " why, she was the belle of last season ! You artists are too exacting! What do you expect V "Something more than—, but I beg pardon," said the courtly painter interrupting himself, " I am speaking of Sir Selwyn's friends." "No friends of mine, Don Cola," said the baronet. " Poor Milly Chandos," he added, laughingly, "it is fortunate we cannot read eachother's thoughts."

" Fortunate, indeed," said ColaMaria, lifting his eyes for a moment, and in those eyes was that steady depth of expression which hides at least as much as it reveals of the soul within, " volto sciolto, e pensieri s'retti. Still, I do not say Miss Chandos is not pretty ; she is very pretty, but cold—-too much pink and white j she will make a portrait for the Royal Academy, but I do not care to paint ner."

" Have you refused to do so ? " asked Grant-Faulkner, with a slight accent of purpose. " No, no ; I would not like to do that, if I could ; but I will paint her in tho costume Ishall choose."

"Ah ! I wish I could dictate terms in that style," said Elsinger, sighing. " You make me sadly jealous, Cambaceres; are you going to make her dress like an Arcadian shepherdess ?"

"No ; only like a woman ; she was dressed to-day like a French doll. I eanuot paint chignons, and puffs, and contrasts of colour that make one shudder ; but she took my good part ; sho only laughed and said she would obey my commands I chose to lay upon her." " Et la mere ?" said Elsinger.

" Oli! in those days the daughters lead, and the mothers follow, in most things ; as for mo. I will have my own way." Your face spares your tongue that announcement," said Elsinger,

"an artist, you know, should be a physiognomist; hut it hardly needs a physiognomist to read as much as that in tho lines of your countenance. Yet you had a tusslo with Nina Caracciolo, if tho tale I heard is not false."

"True enough," said Cambaceres, "butl won. She would have a fantastic garb, and I would liavo flowing draperies, and her hair worn at length ; and sho was cool enough to get into my studio in tho dress of Iter own choice, and brought the prince, her father, to ovoraw e me."

" And what did you do ? " asked Grant-Faulkner.

" I would not lay brush ou canvas, and she, at last, not only submitted, but allowed me to effect the change I wanted, and took the comb and ribands out of her hair as meokly as a child. Proverina! they married her to a villain, who broke her heart."

"Well," said Sir Selwyn, "I daresay, if she had been left to her own choice, she would not have .done much better. When girls choose thoir own husbands they generally make mistakes." A quick glance into the speaker's face from the brilliant and penetrating eyes of the West Indian did not escapo Elsinger. Don Cola observed a little sarcastically-—•

" Unless the husband of tho lady's choice happens to reciprocate her sentimeuts, and then the paronts go for nothing."

jNtnny a shot at random sent, I'inds mark the archer never meant, says tho poet. Sir Selwyn winced under the artists' eyes, and the artist saw it.

Elsinger laughed. " That is my way of looking at the question," he said ; " it's veiy well for the parents to dictato in some cases—that is, if you do not object to an unwilling bride." " I certainly should," said Oambaceres; " but I do not trouble myself about such things." "Is your heart of adamant, Don Cola ? " said Grant - Paulkner, lightly.

"I havo never tried it, Sir Selwyn," tho painfcor. As ho spoke, he took up a statute from the mantel-piece, and added—

" X bought this in Athens—from an old Jew dealer ; it is modern, as

yoa see, but wonderfully beautiful. I could not ascertain the name of the sculptor."

Elsinger gazed in silent admiration on the chaste work of art hefore him Sir Selwyn covertly watched the face of tho AVest In-

dian ; for whatever reason, he seemed anxious to learn something of the inner life which tho Spanish painter, from a reserve natural or acquired, veiled with jealous care. " Can it be," thought tho baronet,

"that this man—but six-and-twenty in years—has really resolved to crush, and hitherto succeeded in crushing, his strong, passionate nature ? Stuff! why should the bar—sinister, even though it be — forged in the West Indies, be for ever a barrier between a man who lias made his own name, his own fame, and a woman, however nobly born, who loved him! Alia ! Senor Don Cola ! you sought to blind mo —but this sudden journey to England—Teresa (Jolonna, at least, was willing to overlook the taint in your blood few women would remember

it in your presence —and you have either clung in your pride to your

self-imposed penance, or tho prince, her father, has clung to his pride. But in either case you are not the man to forget a love which has once taken a hold on you ; and you have not frittered away your heart and soul in frivolous pleasures; and so-" "It is too early to ask you, M. de Canibaceres," he observed aloud, " what you think of our muchabused, smoky Babylon ; but I tremble for your judgment 1" " I have seen, I am told, the most picturesque portion, Sir Selwyn," replied the painter, "and that is why I chose it. The abbey is noble, but within it wants much ; it is so bare, so bald ; how can you reconcile such beauty of architecture! with such barrenness of all symbolic decoration ?"

" I don't know that wo do reconcile it," .said Grant Faulkner, shrugging his shoulders. "I suppose it is that we don't care much about it. It's no worse off than all the other cathedrals. I think the dean and chapter would be horrified at the next oration which you would propose for the choir of the abbey." "You may paint them an alterpieco as a commencement," suggested Elsinger. " Painting would not keep there, or I might think about it," re-

turned the West Indian. " Moreover, tliey have already Salviafci's mosaic—a fine work, but too small for its position." " Well, I don't trouble the abbey much, nor any church, for that matter," said Sir Selwyu; "but I must take leave now; I have to call on a friend at Whitehall. Elsinger, are you coining ?" " Nay; you can spare a little longer," said Cambaceres. "In truth, I can ; and shall be very happy to spare it, if you desire the infliction of my company," said the German. " Very well; then I must bid you cm rovoir also, as well as Aide Cambaceres," said the baronet. 11 1 hope you will do me the the honour of calling soon again, Sir Selwyn," said the Spanish painter, as, with his punctilious foreign courtesy, he accompanied his guest to the hall door. "Thank you. I shall avail myself of your invitation. The baronet departed, and Cambaceres went back to his studio. " Elsinger," were his first words, as the German turned from the " Death of Rienzi," " where did you meet Sir Selwyu Grant-Faulkner 1" "In Paris—last March. You met him in Rome first, didn't you ? What do you think of him 1" "Ha is a man of the world— agreeable, talkative ; many a woman would like him. Do you ?" " A very direct question, Cambaceres ; particularly, as you reply to my question is so evasive ; but I am more frank than you are. I can't say I dislike him ; but I don't trust him." " Nor I, Alberto mio ; I have scanned every line of his face," said Colo-Maria, "and, like you, I do not trust him ; perhaps I go further than you, but that I will keep to myself. I am well pleased, however, to sec that you are on your guard, for I do not think his friendship a great acquisition." " I might think your judgment a hasty one," said Albrecht Elsinger, " but we artists are, like women, quick in our apprehensions of character; unlike women, we do not always attend to them." "I do, Elsinger, and I have never yet found myself mistaken. Is Sir Selwyn a man of means?" '■ Of very good means, I believe,"

replied the German, " whether lie is above the need of a wealthy marriage I can't say. I have no doubt there are plenty who would have him." "Sans cloutc. If he is wealthj r , or .seems so, lie can certainly command homage," said the West Indian, " but he is hardly of the age to attract, for his own sake, a very young woman." "Why, no; though like most bachelor man of fashion, he wears well, and young girls are attracted by some kinds of mindle aged men, I don't think Sir Selwyn is one of that kind. ITe must he past forty I suppose, lie is an old friend, I find, of a lady who will doubtless come to you for her daughter's if not also for her own portrait. He might marry the mother for anythink I care, but I hope he will not trouble his head about the daughter." " Why, are you lifting your eyes in that direction yourself?" said Cola-Maria smiling. "I, mon chef 1 The young lady in question is heiress to one of the oldest and haughtiest families in England. I should as soon lift my eyes to a princess of the blood, even if I were not already pledged to my pretty Sybil. It is well for me that such impediments exist, or else I might be tempted to forget my obscurity, and illustrate in my own person the truth of the axiom that love knows no distinction of rank." (To bo conlinunrl.)

NEW ZEALAND LOAN AND MERCANTILE AGENCY COMPANY (LIMITED.)

The twenty-third annual general meeting of the shareholders of thiti company was held at the Cannon-street Hotel, London, on Friday, the 3rd day of February, 1888, the liight Honourable A. J. Mandulla, M.P., in the chair.

The notice convening' the meeting having been read, the minutes of the twentysecond annual general meotm<*, held on Friday, the 4th February, 1887, were read and duly confirmed.

The twenty-third report and .statement of accounts, a copy of which had previously been sent to each shareholder having a registered address in Great Britain, were taken as read.

111 tho report it was stated that the nett profit for tho year 18S7, inclusive of £3,625 13s Gd brought forward from the preceding year, after deducing expenses, interest, commission, Income-tax and Property-tux, writing off stationary, and making duo provision for bad and doubtful debts, exhibited a .sum of £69,567, 14a Gd, which tho directors recommended should bo applied as follows : — £ s d lo payment of a dividend at the rate of 10 per cent. per annum, and interest on capital paid m advance on old shares 3(5,37(5 9 0 To payment of bonus at 5 per cent 1.8,137 10 0 To be carried forward ... 15,053 15 (i TO, 507 14 0 In July last an interim dividend was paid iit, tho rate of II) per cent, per annum, amoiiuting, with interest on capital paid in advance, to £18,188 <Is Gd, so that there now remained for distribution, the sum of .£36,325 Ms (j<l.

The Chairman said: Gentlemen, my first business is to move tho following resolution : —

"That tho report and statement of accounts bo adopted ;md circulated among the proprietors, and that a dividend of 10 per cent, per annum for tho half-year ended 3Lst Douomber, 18S7, with a bonus of 5 per cent. 1 for tho yenr be now declared, which, with tho interim dividend at tho rate of 10 per cent, per annum, paid in July, 1887, v/ill make a distribution of 15 per cent, for that year; ;in:l that tho balance of profit, amounting to £15,053 15s Od, be carried forward." I think you will have, remarked the change of place of our meeting. Wo meet for the first time outside the Board room. We experienced so much inconvenience on former occasions from the inadequate accommodation there that we felt it was duo to us as well as to you that we .should hold our meetings in a more convenient place, aud I trust that you will consider the small expense incurred by our so doing'i.s justified by tho largo attendance I see hero to-day. At tho last meeting- I ventured to state my opinion, based on the evidence placed in our hands by our colonial managers that tho various Australian colonies and the colony of New Zealand had touched the lowest point of depression, and that we might reasonably look forward to a gradual return of prosperity, and to increased activity of trade in those colonies. The report and balance-sheet now placed in your hands, I think {justify tho accuracy of the forecast which I then made. Although that return to prosperity has been less marked in New Zealand than in Australia, there has been during the year a decided improvement even in Now Zealand. There has been a gradual return, of confidence and increased activity. Every mail we receive brings us moro encouraging advices, aud although New Zealand has passed through, anil is still passing through a time of trial, this has not been without its uses, and I think that, having regard to tho resources of that colony, wc may reasonably look forward to a fair measure of prosperity being in store for it. Tho lessons taught by the period of adversity through which New Zealand has recently passed are shown by incroased public aud private economy, and by greater prudence in the administration both of public and private affairs. There arc evidences there of a tendency to the raising of a greator variety of products, and I have been much struck at seeing certain items coming into this market which at first though only for the purposo of exhibition, may gradually increase and become matters of importance in tho commercial realations of tho mother country and the colonies. Attention is likewise being paid to the preparation for shipment of various varticlos of dairy produce, such as butter and cheese, which will tend to develope her agricultural resources. Tho report and balancc-shett deal with the accounts for tho colonial financial year, eridiug on 30th September, aud with those in this country to the 31st of December, ISS7. They show an increased earning power during tho period embraced by them. In 18SG the net profit was £57,889, and in 18S7 £G9,5G7, an increase of £11,678, which I think is very satisfactory, We paid a dividend and bonus of 15 per cent. in ISSG, and propose to mako a like distribution for ISS7. In ISSG £3,025 was carried forward to the next account: today wo proposo to carryforward £15,053 to the year 18SS. Now there are some things which cannot be stated in the balance sheet which it is due to you the 1 Chairman should explain, and if I detain 1 you a little longer in doing so, I hope 1 you will not think that I am detaining you unduly. Tho reports from our colo- : nial branches, with hardly an exception, • have boon more encouraging than for a considerable time past. I shall take up a ' little of your time to-day in reading ' extracts from these reports, in order that 1 you may know not only the extent of the ' business of the company, but also the 1 area over which it extends, and the pros- \ pects of tho company in the estimation of ] those who are on the spot managimg our - business. It is to thejinterost of the share- < holders that they should form correct views ou these subjects. There is an ' item in tho balance-sheet which calls for 1 special reference on this occasion, that : representing the "Company's premise*, 1 stores and plant, £201,312 15s Sd." ' After the close of tho colonial financial 1 year a sale was effected of our Melbourne 1 premises in Collins-street for a sum of 1 £200,000, yielding a profit of £80,000 ' on tho £120,000 at which these stood in 1 the company's books, and which formed 1 part of the above item, £291,312. Wo I were induced to make this sale because ' since these premises were completed as ' offices, wool and produce stores, some four ' years ago, Collins-street West, in which they are situated, has become a great 1 centre of business and the value of 1 offices in suoh a position has accordingly ! been much enhanced. To continue the 1 occupation of promises as wool aud pro- ( duce stores in Collins Street is not, there- ' fore, politic, as these can now be built on 1 a less expensive site in proximity to tho ' lino of railway which connects Melbourne ! with her shipping port, where such busi- 1 ness can bo carried ou not only more 1 economically but with greiter efficiency. 1 This profit of £80,000, which is not dealt 1 with in the Balance Sheet, will have to be ' considered in the succeeding financial year. Having regard to the extent of 1 our business we do not think that this sum ' should be carried to profit and loss ac- 1 count, but ought to be held as a special ' fund to meet any contingencies that may ' arise in the conduct of the Company's 1 business. Since wo last met we have 1 closed our San Francisco age,icy, which 1 was originally opened in order that this ' Company might take advantage of the '

increased business relations which wore being established between the Australasian Colonies and the Western States of America. The purpose for which the agency was opened having , been served in making known at San Francisco the position occupied by this Company in thu Colonies, nothing was to be gained by its continuance. As it lay outside the sphere of ouv usual operations, a .suitable opportunity was accordingly taken of closing it without loss, Should the revision of the tariff as proposed by the President of the United States come into operation, a great impetus would probably be given to the import of Australian wool and other produce into that country. In corroboration of what. I haYo already stated as to the improved outlook for business throughout the Australian Colonies, I will, with your permission, now quote the following extracts from our Reports received after the close of the Colonial financial year. Thb first is from our Blenheim Agent. Ho says " Yuu will observe that we this year have handled 5'H bales more wool than we did last year, and I am satisfied that iu the coming year wo will still further improve our position. I feel that our business is in a thoroughly sound and improving condition. Wo are ever increasing the number of our clients, and in spite of very keen competition, rapidly extending- our operations. Of the prospects of our clients fen , the coming year I am pleased to say I can speak hopefully. The wool clip will, I think, bo a heavy and sound one." Our manajrerat Christen uveh s,i- s :—"So far as we (Jan judi-o during th" pust year, business h:is been, on the whole, satisfactory. Both imports and exports, and, as a natural corollary, customs' duties show some expansion. Failures have been few and nnnnportant, whilst business throusrli tin; debtors' court, displays a wholesome contraction." Fr.mi Dunediu we have a very interesting report from another point of view. Our Manager there says:—" I have coiifldenci iu stating that the business of this brand has not, at any time during my manage ment been in a healthier condition th'ii it is at the present moment. We arc now in the position of earning interest upoi certain accounts that have iu the pasl yielded nothing to profit." Ho adds: — "I look with extreme satisfaction to the to the spectacle of large estates being cut up and sold at nndorato prices t< woiiiing farmers, this to me being tin most hopeful sign for the future. The available land in the South is gradually being settled by a steady, hard'workini class of farmers, and will id time carry h large population. I look forward to a general improvement in our business hero in the future.' . From Nupier our Airent writes:—" With wool finn and tallow rising the prospects for the coming season seem satisfactory, and the extcndi-d sphere of our operations hero should enable me to present you at the end of the cuiront year with a more encouraging balancesheet." Our Manager at Titnani says- : — "I think wo are now doing the largest stock and wool business here, and wilf endeavour to keep the lead. There is no doubt we have a good future for South Canterbury, both as a stock-producing and agricultural couutry, and may fairly reckon on our business growing with it." From Wanganui our Agent writes to the same effect. Our Melbourne Manager, in a letterdatoil 13th December, siys :—" Our sales of produce for the year show a fair increase on last year's operations, and I anticipate that for the year we have recently entered upon a much larger in. crease will ha shown. The seasons in Victoria, New South Wales and Queensland are all that can he. desired, and I am more hopeful respecting the future Land Lws of >T<!W South Wales than I was last year." Then h<; ad,ls : "The recent favourable sale of the Company's premises in Jl'jliiniinic, means not only mak-

i"t,' a large profit but will also enable us by acquiring land, either on the riverside 01^ on the railway close to Melbourne, to effect a large reduction in our working expenses. Ido not anticipate that under any circumstances we shall have more than one-third of the capital previously employed in land and larger business than wo are now doing', and I hope that our next year's returns will be much larger than in the past." From Sydney our Manager writes : "It is with exceeding satisfaction that I am enabled to report here, what I have already on several occasions had the pleasure to advise, that the season through which we are now passing has been one of the very best on record for pastoral pursuits. Abundant rains have fallen throughout the length and breadth of the Colony, and 1" think I may safely say that no part of it is now without ample suppliesof grass and water. Indeed on many areas there has been a superfluity of both which it has not been possible to utilise. Oil the whole, I look forward very hopefully to a considerable accession of business during the coming year, and with one or two seasons such as wc are now enjoying, and a fair level of values for our products, a return to prosperous times would be assured." W'e have also received a lettter from our Inspector, dated Auckland, loth Decern- •

her, in which, summarising tho Ouioninl position, he says: " I'usturul.--In Aus-

tralia the season remains au extremely favourable one; indeed tho registered rain-fall this year is in many districts higher than for years past.. \Ye it re not aware of any important, area now lacking grass or water. It is said by those com-

petent, to judge that, taken all round, this is tho most favourable season for twenf.v years. Locally sold wools have realised fair, thoutrh not- extreme, prices. Our three branches holding- wool sales ha ve each, so far, shown a moderate increase on las*, season's total for a similar period. Considerable quantities of wool, however, are <*oin<r forward for the English sales, and we will hope that tho recent "finning " of the market may be maintained.

If fair prices are secured for the balance of the clip, [Pslm-alists will have done wtili this season, us the A ustralian increase has been larur- : irid in the trrear majority

of cases surph;-: stoek for sale should form a not unimportant portion of tho year's revenues. In Now Zealand thore has been a favourable season, and to a largo extent above conditions also prevail.— Grain Groiviiif/. — Vroin Australia t.ho reports are uniformly unfavourable. Evidently prices will ride low, and the out-

look is that freights will absorb an tin

usally largo proportion of proceeds of grain shipments, Indeed the surplus will bo so largo that—shipment to Europe being inevitable—tho diilioulty will evidently be tonnage to get tho trrain away.

Still the unusallv average yields ( espo.il

ally in South Australia) will more than make up to growers fur low prices. It is apparent that the South Australian sur-

plus will meau front two to threo millions of money to that Colony, and from Victoria over 2-30,000 tons will probably bo sent over the sea. In Now Zealand the reports are generally favourable as to growing crops, and the area in wheat is considerably larger than last year. In mixed farming, while prices of stoek and produce are no doubt low, tho season is so favourable for feed and root crops, that farmers have, on the whole, fsir prospects.' I think I ought to apologise for having detained you so long, but having promised that I would bring under your notice more explicitly and more fully than heretofore the business and prospects of the Company, I wish—and lam suie all my colleagues agree with mo—to impress upon you our desire to make the most nio-

de-:fc estimate of the future, and to lay

belore yon facts that you may judge what that future is likely to be. From the title

of the Company some outsiders have as» Burned thpfc our operations have been confined to New Zealand exclusively. You have seen from what I have already stated (hat a large amount of its dealings are in Australia, and it is only fair that I should bring these facts before you. I do not know that it is so necessary to put tliem before you as that they should be known outside. Although we have never changed the title of the Company, it commenced at lirst with a view to confine its operations to New Zealand. In 1874 we decided to extend our business to Australia ; a very wise decision. The result of tiie extension to the larger area haa been that our mercantile business has rapidly become the largest part of our operations, and now so far from this being a Company whoso business is confined to New Zealand, while we have held our own there, we have CO per ceut. of our capital employed in Australia, so that this is essentially ail Australasian and not I merely a New Zealand Company, Some of the extracts from the reports I have read to you are from Melbourne and Sydney, showing the position of the Company there. What has happened since 1874 is (hat, instead of 40.000, we have now 140,000 shares, one-third of which is hold in the Australasian Colonies. Of course it is only fair to suppose that this natural tendency to expansion will go on. Our business combines two branches. One is the loan business— loans lent on mortgage as they figure in our Balance Sheet—and the other in the mercantile and agency business, which is practically commissions obtained by the sale of (lie produce of the land. Now the extent of the loan business is determined by the amount of our subscribed capital and debentures, which is used mainly on loans on mortgage of real estate ; but the mercantile business practically, we may say, bos no limit, pxcept our own capacity. It has a steady annual growth. We began twenty-three years ago with debentures at 5 fi and 7 per cent, for our

i lan purposes. We paid o(F the 7 per cents, and came down to 6, and then we paid off the G and came down to 6 and 4A, and now those who require 5 per cent must go elsewhere : and I am glad to say that we have been paying off these 5 per cent, debentures as they became duo without having recourse to our bankers. It may also be interesting to you to know the position of our Wool commission business and its growth. We have long ranked as the largest consignees from New Zealand, and we rank second in the list of Australasian and Cape importers. The increase of consignments to us from the colonies is coincident with n very considerable increment in our sales in colonies, because there has been developed by the company in the course of the last few years considerable business there. The average value of a bale of colonial wool in this market is about 10s greater than it was in 18SG. In ISB2 our consignments to this country were 72,088 bales. In 18S6 they reached 84,993 bales and in ISS7 they were 00,291 bales. Wo likewise sold in Australia and New Zealand during ISSG 06,441 bales, and in ISS7 72,10S hales. Adding together our consignments to this country and our Eales in the colonies, this Company as agents handles a larger amount of wool than any other mercantile institution in the world. The frozen meat trade between New Zealand and this country, in the consignments of which this company largely participates, likewise continues to show considerable expansion. The imports of mutton and lamb from that colony were : in 1882, 5839 carcases; 1883, 120,893; 1884. 412,349; 1886, 492.209; ISS6, C 55.888, and in 1887, 760,417. New Zealand, though it has been increasing its exports, has been diminishing its imports. In Ihe year ending 30th September, 1880, the value of the imports was £G,982,000, and in the year ending September, ISiS7, they were £0,225,000, fo that the imports wr-re diminished by I £757,009, evidently from a restrictive poliey and increased care and economy as to the amount of indebtedness ; but the exports increased in the sumo period from £0,572,000 to £7,041,000, an increase of £472,000. Reverting to our rnercautilo business, I can only say it is the most profitable department of our business. The expense of condnoting it docs not increase proportionately to its volume. It will be obvious to you as men of business that the expenses of management are not increased in proportion to the increase of business. All hough wo can, and ought to, put a. limit to our loans on mortgage, we cannot so reasonably put a limit on our mercantile business. Already the volume of that, business hero and in the colonies reaches an annual total of nearly three millions sterling. Wo can conduct that business at. pre-rnt neither so efficiently nor so economically as we ought, heeau-e it ah-mbs more and more capital ever}' year. The balance-sheet fur ISBS shows that Hie advances on wool :.nd produce on hand and to arrive were £87-1,257, hut in ISv they amounted to £1,026,720, mi expansion of more than ±'150,000 in that year, and of nearly £;>()0,000 on the amount similarly employed four years ago. Thus yon will oh-erve that the million employed it. 1887 is more than our own capital and reserve fund, and you outrht not to conduct a mercan-

1 i I*3 im.Miirss on debenture money. It oti«l>t to bo conducted on the capital of the Company, ami whilst we are against an increase of our capital for the purpose of makinjr loans, we ought to have a capital without liability, bearing a moderate rate of interest, which should provide the means of conducting this largo ijiiiruantiln business. It ought to be a capitil especially provided for that purpose, because if we borrow in the Colonies we have to pay colonial rates of interest. The data which I have now presented to you give evidence of an expansion in our mercantile business, and in order to keep pace with its further profitable development it may shortly be found desirable to make an addition to the working capital of the Company. The precise form which such increase may taUe has not. yet been fully considered, but it may be found expedient to make a further is-

sue of shares, calling up, as has been dona by other Companies, a certain amount per share which will carry dividend, and al-

lowing a fixed rate of interest on the ballauce of capital paid in advance. As previous issues of this Company have £2 10a per share called up on which dividend is paid, the same principle would be applied to the proposed further issue, leaving £22 10s per share, representing the capital to be paid in advance, upon which a fixed rate of interest would be allowed, thus making these shares practically fully paid up, without further liability to the holders. The advantages of such an addition to our resources would be : —

greater facilities for the conduct of our mercantile business; increased security to our shareholders; greater confidence to our debenture holders; diminished liability to the fluctuation in the market value of the Company's shares, and a more just appreciation of their real va'ne. Having said so much 1 will not detain you further, but beg to move the resolution which I have read in your hearing.

The report was adopted