The Sun.
London, England, 1856-12-20 00:00:00

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[PRICE 4D. STAMPED 535.

LONDON CHARTERED BANK OF AUSTRALIA.

An extraordinary general meeting of proprietors in
the above company was held yesterday at the London
Tavern, the object being the declaration of a dividend.
From an abstract of the profit and loss account read at
the meeting, it appeared that a dividend of 2 per cent.
was paid in Doc., 1855, amounting to 11,000/. It was
now proposed to pay a further dividend at the rate •f 5
per cent. per annum up to June, 1556, and there would
re vain on the profit side of the account a sum of 2,5071.
10s. Bd.
The CHAIRMAN, with one or two observations, tender-
ing information if required, proposed that a dividend at
the rate of 5 per cent. per annum, up to the 3Oth .Tune,
1850, be dux and payable on the 15th Jan. next.
A SHAREHOLDER asked whether it could not be paid
sooner ? _

rho CHAIRMAN said it had usually been paid on the
15th of Jan. and the 15th of July, and the great number
of shareholders (900) rendered it difficult to get through
the list sooner.
Mr. MOCATTA complained of the smallness of the divi-
dend. The Bank of Australasia, he said, paid 20 per
cent., and surely between that and 5 per cent, was too
great a difference. Last year all their dividends were
frittered away in expenses, and this year he feared the
latter would also be enormous. In his opinion the
divi-
dend ought to be at least 7or 8 per cent. Money was
very scarce, and had been able to command high rates
both at home and in the colonies. Under these circuros
stances a much higher dividend might have been realised
but for the enormous expenditure, which absolutely ate
them up. Ho wished to have answers to two questions
—First, what was the amount of the securities held by
the bank ; and, secondly, what actually was the gross
amount of their expenditure ?
The CHAIRMAN said that in the balance sheet which
had been furnished a considerable amount was struck
off for bad debts. The gross profit for the half-year was
27,6751., but 19,3001. was deducted for bad debts and pro-
portion of preliminary expenses. The amount of secu-
rities held, and which paid no interest, was 530,0001.,
no inconsiderable amount when they reflected how young
was their institution. As to the expenses, he admitted
they were heavy, but it must be recollected that the
principal perti 'n of their business was carried on at a dis•
tance of 14,000 miles, and in a place where the whole
scale of expenditure was much higher than in this coun-
try. With respect to bad debts, he thought 3,0001.
would cover their loss on that score. They must recol-
lect that during the three years they had been in busi-
ness the bankruptcies in Melbourne had amounted to
two millions, and, of course, a good deal of that loss fell
on young concerns. With respect to the Bank of Aus-
tralia, it should be remembered that for the first six years
it paid no dividend at all, and it was generally believed
that, at the commencement of the gold discoveries, it
made an enormous profit by buying gold at
21. 10s. the ounce and selling it at 41. 12s. The
directors had, perhaps, a large nest-egg of this gold
still left, and dealt it out gradually to the shareholders
in the shape of 20 per cent, dividend. (A laugh.) They
(the Bank of Australia) had paid 4 per cent. from the
commencement, and he had every hope that the divi-
dends would steadily improve. As regarded the expen-
diture he could not hold out any hope of reduction at
the present moment.
A SHAREHOLDER asked what proportion of this divi-
dend would go to the holders of new shares ?_ _ _ _

The CHAIRMAN—There would be six months dividend
on 550,0001. and three months on 50,0001.
After some conversational discussion, in the course of
which suggestions for the formation of a reserve fund
were thrown out,
The resolution, declarieg a dividend at the rate of 5
per cent, per annum, was put and agreed to.
The CHAIRMAN took occasion to pass a warm eulogium
on Mr. Brown, one of their directors, who had gone out
t,) Australia personally to inspect the affairs of the bank.
Mr. Brown's services had been most valuable to the
company, and he had returned to this country with the
most sanguine hopes as to their future prosperity.
The proceedings terminated with a unanimous vote
of thanks to the chairman and directors.