The Sun.
London, England, 1867-01-28 00:00:00

INTERNATIONAL EINANCIAL.

The half-yearly meeting of this association was
held at the London Tavern on Friday—Mr. Heath
in the chair.

The report stated that the profit had been ab-
sorbed by losses, and the reserve fund had been re-
duced to £4,546. The directors regretted that it was
impossible for them to recommend a dividend, stat-
ing that all the securities had been valued at the
lowest market prices, and that the paid-up capital
of £750,000 might be regarded as being intact.
The CHAIRMAN, in moving the adoption of the
report, sail it was not a very pleasant thing to ad-
dress a large body of shareholders at a time when the
board were unable to declare a dividend. The past
year had been one of unexampled difficulty to finan-
cial and commercial companies. Although they had
no dividend to propose, he was glad to tell them
that the capital of the company was intact, and that
there was something over. If they had had to make
up their accounts to the end of January instead of
to the end of December last, they would have been
able to show several thousand pounds more to their
credit than appeared in the audited accounts. In
reply to several letters that had been received mak-
ing inquiries as to the probability of a call, he could
say that the directors had no intention or desire to
mAke a call, nor was there any necessity for making
one. The account showed a charge of £14,600 for
expenses, which he believed were smaller than those
of any other financial company having a similar
amount of paid-up capital. One of the principal finan-
cial associations, with a capital of £BOO,OOO, showed
an average annual expenditure of £17,600; another,
with a capital of £750,000, an expenditure of
£26,000 ; while their company, with the same
amount of paid-up capital, had only expended
£11,600, or less than 2 per cent. per annum on that
capital. Some had expressed surprise that the direc-
tors should have taken remuneration during the past
year. He could assure them that the best exertions
of the board had been used to carry the company
through the time of trial ; they had attended day
by day when anything important or urgent had to
be done. He, for one, declined to forego the re-
muneration to which he was fairly entitled, and he
hoped that his example would be followed by his
brother directors. The securities had been inves-
tigated and valued by eminent and competent
persons, and the auditors, who had examined
everything most carefully, had reported that the
assets immediately available were far more than
wore required to meet the liabilities, and stated
they had no doubt that the estimated value
of th while of the securities would be ulti •111,1. t ely
realized. The gross profits of the year had amounted
to £65,000. One unfortunate loss they had had was
connected with the Northampton and Banbury Rail-
way, to which they had made an advance, backed,
by ample securities, but as it turned
as they though'',
out that the amount advanced was not sufficient to
finish the line, the securities they held became de-
preciated, but would probably turn up all right
some day when the line was finished, which it cer-
tainly would be, and then they could avail them-
selves of those securities. They held about £90,000
stock in the Egyptian Railway Loan, which was
guaranteed by the Egyptian Government, and would
be paid off at par in the course of six or seven years.
If they were not forced to realise these securities,
which, though depreciated, yielded something like
113- per cent., they would realise a very large profit.

They were also interested in the Metropolitan Sew-
age scheme, which he believed would, when carried
out, yield a good profit. Their works at present,
from the outfall of the metropolitan sewers at Bark-
ing Creek, had been carried 31 miles; the farm they
had was about one mile and a half from Barking-
creek, and pipes had been laid to carry the sewage
to it. The amount involved in the operations of
this company could not possibly exceed £llO,OOO.
A discussion ensued, in the course of which it was
stated that the remuneration of the directors was
£5,000 a year and a percentage on the profits, which
latter the Board refused to take on a former occa-
sion. The company had an investment in the Turin
Railway, backed by a Government guarantee, which
would come into effect in the course of the year.
The company had nothing like permanent invest-
ments ; their object was to invest and re-invest at
a profit. If things went on for the next five months
as they were now going on, they would have a better
account to present at the next meeting.
The report was unanimously adopted ; the retiring
directors were re-elected, and also Mr. Harding and
Mr. Galsworthy, the retiring auditors. The pro-
ceedings concluded with a vote of thanks to the
chairman.