The Express.
London, England, 1847-03-04 00:00:00

LONDON AND WESTMINSTER BANK.

The annual meeting of the shareholders in this
bank was held yesterday at the company's banking-house,
Lothbury, and was very nutneroucly attended. David Salo-
mons, EN., the chairman of the bosrJ of directors, pre-
sided. The business opened by reading the report. It
stated that the net profits of the past year amount to
74,1751 15s. 9d., after payment of the income tax. Oat of
these profits the directors paid, lest September.% dividend
of Sit per cent. per annum for the halt year ending June 30,
and they now declare a dividend, at the same rate, for the
half-rear ending Dec. 31. They also declare a bonus of
8.. per share, or two per cent. on the capital, After these
payments, there will remain a surplus of 10,175/. 15s. 9d. to
be added to the reserved fund, which will then amount to
98,4241. 12s. Id.
The directors eonsid red that the time had now arrived
for disttibutieg the ten thousand unappropriated shares.
They accordingly determined to issue them to the present
preprietors at par, in the proportion of one to every four
shares already held. The paid-up capital of the bank wall
then be 1,000,0001., and the subscribed capital 5,000,0001.
With the extended business and capital of the bank, it is
desirable that there should be an increase Is the *umber of
the directors. It will therefore be proposed to the present
meting to appoint two additional members of the board.
The vacancy caused by the lamented death of one of the
directors. P. kf Stewart, Req., it was proposed should be sup-
plied by the election of T. Walker, Iloq.
The CHAIRMAN then said, had the directors felt inclined
to ge into business, nut even of a hazardous character, but
involving somewhat more of rink than that to which they
were in the habit of giving their attention, they might have
been able to present a much Urger sum for division than
74,175!. That sum, on a capital of 600,0001., was equal to
an interest of nine per cent. Under those circum-
stances, it had been thought expedient to deviate
from the course hitherto pursued, of applying the whole sum
beyond 6 per cent. to the reserved feud, thihking it an occa-
sion on which they might well offer a participation in those
earnings to the proprietors. They still adhered to the see
and sound principle of having a large reserved fund, which
was now but a trifle short of 100,0001. (Hear.) This large
nun had solely arisen from the legitimate transactions of the
bank; it contained little or nothing extraneous; with the
exception of 10010 trifling sums in the shape of premiums on
share*, • saving of 100,0001. had been made out of the
legitimate earnings of the bank. This had been done from
• desire to act prudently. Last year, many proprietors
thought that the sum of nearly 20,0001. then carried to the
reserved fund might have been fairly divided ; but the
directors thought it better net to be led away by the momen-
tary eclat of dividing a larger per tentage, wishing to have
• large sum to fall back upon, in the event of any unforeseen
reverse, without at all impairing the capital of the esta-
blishment. Of any such reverer, he did not believe there
was the alighteet meltability ; he was confident that the
same management which, in their earlier days, had steered
them clear of difficulties, would continue to do the same,
and that, in future, they might have the pleasure of dividing
the same sum as a bonus, and at the same time keeping up
the reserved fund. (Hear.) It was the original intention
that the capital of this establishment should be five
millions sterling ; they began with one million, 500,0001.
being paid up ; and they gradually, increased it
by calling the new shares into activity at inter-
vals. In 1836 they had carried their capital e,
600,0001, at which sum it rested till 1841, when 10,000 more
share% were issued, bringing the capital up to 8000001.
Now; they proceeded to put the apex to the pyiameli, being
featured that the bile war sufficiently broad, b 1 issuing
other 10,000 shares; thus carrying their capite:. to the full
amount of five millions, with one million paid up. (Hear.)
They had acted thus cautiously from a deolre not to issue
those shares until they were fully convinced 'Jut theirrevenue
was nut liable to fluctuation under ordir Ary circumstances,
and that there was • certainty of the. increased dividend
being paid upon the larger capital *with eis much ease as
upon the smaller. They believed '.sat the period had now
armed when they could pay 'lx per cent. on the full
amount ; they, therefore, proposed to divide the shares at
par among their subscriber!, allowing them to subscribe this
200,0001 , which would probably be worth in toe market a
profit of nearly 50 per cent. (Hear.) There was now an
ample field foe the employm at of capital. There had been
Isamu changes, alternations of scarcity and abundance, in the
money market during the existence of this establishment ;
but, amidst all these charges they had been able tes hold
their own, and to pay a dividend of six per cent. Another
change was impending, and in all probability there would
be a great demand for banking capital during the next few
years - . still he anticipated no such difficulties as had occurred
I in 1842 and 1813, the trade and monetary transactions of the
country bring now on a sound basis; but there would be an
ample field for the employment of the increased espial now
asked for, to the adnentage both of the shareholders and of
those to whom accommodation wet granted when demanded
upon fair and legitimate grounds. The proposed increase of
the directors was rendered necessary by the great amount of
capital which they had to take care of. The simple care of
the property involved great responsibility; the safe and
proper employment of it still more so; and, with a dilly-
increasing buskins, the directors had thought it right to
recommend that the board should be strengthened by the
evidition of two members. Without wishing to exercise any
objecti noble selection, they recommended the two gentle-
men named in the report, as merchants of eminence, and
well acquainted with the trade of the country. The chair-
man concluded by reading a resolution to the effect that the
new shares should be offered to those proprietors who stood
registered in the books of the bank on the 15th inst., in the
proportion of one new share for every four shares which they
head ; that the shares should he issued at par, via. 201. each,
and that the payment+ should he 71. per share on 15th April,
6/. per Blare on 10th July, and 7!. per share on 15th October.
The chairman added, that the new shares would be issued to
all persons who eked registered in the company's books on
the 15th February.
Mr. Tire asked what was the amount which the directen
proposed tl:c reserved fund should attain ? tic thought
100,0001. rather a large 'sum for a bank of this capital.
(No, no.) He feared that, by carrying so large a sum as
20,0001. to the reserved fund this year, they might bajem
the next year's dividend en the increased capital. Ho
approved of the increase of the directors, and wished to
know whether they could be carried beyond fifteen. He
thought the directors had exercised a sound discretion in
giving the proposed bonus to the shareholder; but he would
not advise them to be so very anxious about increasing the
reserved fund.
The CHAIRYAN said that the directors and himself
looked upon the shares in this bank decidedly as • oil per
cent. stock, and they were extremely anxious to do nothing
that eould affect this amount of dividend. It had been
their wish to let • few years pass over before malting a
permanent addition to the dividend ; and on this ground
they now declared a bonus, to show that the increase was
contingent. He did not say that circumstances would pee.
vent a similar bonus next year; but he was anxious to
avoid creating any expectation that such would be the moo.
As to the proposed amount of the reserved fund, he would
merely say that the directors had no anxiety to starve the
preseat generation for the sake of then posterity—
(laughter)—stall they were bound to guard against the acci-
dents, to which all human institutions were liable. The
number of director might beinereased to 24, hut the board
considered that 15 would be imply eufficient for the man-
agement of the business.
Mr. Wtemaw asked whether the directors thought that,
after the issue of the 10,000 additional shares, they would
be able to pay the same amount of dindeud, and also a
bonus. He wished to know whether there was any pros-
pect of the, and the other joint-stock banks of the metropo
lie being admitted to the advantages of the ci.anng-house
also, whether the number of accounts at the bank had
increased.

The Citamiaow, in answer to the first question, repeated
what he had already stated as to the probability of the
dividend being kept up, that they regarded the bank as a
six per cent. stock : and if monetary affairs went on well
during the year, of which the shareholders themselves could
judge, they might reasonably expect some bonus next year.
The state of the hank's business was good ; they had every
reason to be mailed with the accounts brought to them, and
he hoped theft who had accounts with the bank were
equally annelid with the prudence of the directors. (Hear.)
During the year, no steps had been taken with regard to the
clearing-hoar Sthe directors had thought it better to go on
quietly and mutably with all their neighbours.
Mr. Manneure wen 11113110 US that the reserved fond should
sot be touched ; he would be better satisfied with a dividend
of five per cent. then with one if six per cent., if the re-
served fund had to be drawn upon. (Hear.) He suggested
the propriety of a decks' fund being established (or the
clerks in the bank, r was done in some other eetabliah-
menu, in order that they might be taken care of in sickness
and older.
The CNAISMAN said the question of the amount of reserve
might safely be left in the hands of the board. (Hear,
hear.) As to the clerks, the directors had, last year, in con-
sideration of their large profits, added ten per cent. as a
bonus to the clerks' salaries, ; and the same had been done
this year. (Hear, hear.) With the abundant opportunities
which young men now had of making the beat of their
aaviage, that matter might safely be kft to themselves.
Mr. Baowir *eked if those sharekokiers whose number of
shares was not divisible by four would receive • propor-
tionate number of new shares; which the chairman turreted
in the sfilrmative, stating that in such was the shareholders
would remise an equivalent in money for the half or quarter
shares. The report was then unanimously adopted, as were
resolution's confinnino the election of Mr. JoshrsaWalker as a
director, No-electing Mr. Thos. Farneomb, Mr. 1). Salmons,
and Mr. H. Bosanquet, and appointing, as additional
directors, Mr. Henry Buckle and Mr. John 8. Cattley.
Mr. Kewanema said he had, loot year, proposed an in-
crease in the remuneration to the directors; and it had only
been opposed by their late chairman. He wished sow to
renew hr proposition. In anothersimilareigniiiimar. the
directors had 5,0001.—A Shareholder Whine T—M. Km-
. .

shaid: In the 'London Joint Stock Bank,—lnerdieklar:
It's a great shams. (Laughter.)—Mr. Karim mkt est
in another establishment which only divided about 16,0001.
the directors had 2,000!. He would propose that the thanks '
of the shareholders be presented to the directors, and that, in
future, a sum of 3001. a year be allowed to each of the fifteen
directors. (Hear, and cries of " Too much.")
Sir C. Boannu. seconded the motion, and said that the
shareholders could not do better than show their gratitude
to the directors, which would be an incentive to future good
management.
Mr. M•UDIILIT said that many of the directors,' pro-
bably, never attended at all, and it would net be right for
them to receive their 3001. He would suggest that 3,000/.
should be allowed, to be divided by the directors amongst
themselves.
The CRAIIIXAM said he would frankly state that the sum
of 2,3001. was quite inadequate for the direction of the bank,
which involved mush greater responsibility than either an
insurance or a railway tromp/my. What was due to persons
who had not only to take care of but to money four mil-
lions of property ? (Hear, hear.) He felt himself in the
sitution of a make wiser, who wM ntittid 10 e WPC