COMBINED BUYERS, LTD.

Ashburton Guardian, Volume XXXIX, Issue 9476, 13 December 1918, Page 3

COMBINED BUYERS, LTD.

REPORT OF ANNUAL MEETING. *TJio Annual Meeting, ol' the Company. wan Jieici ab thy LhumOer or Commeruorooms, i'e'atiiiorciUoiL street, Wo.tujigton 3 oji jp'riduy,- .November 29, 1918. The tuinnniui oi: ru.uectors, :\ir \V. b. iienn.'tt, occu|)icd the chair, and there was a. lair attcndaneo of sJiarenoklers, incjuding ■Messrs it. S. Abraham and G. A. WaiJis, directors. in moving the adoption of the report and balance-sheet, the chairman contrasted the conditions now prevailing with those that; existed.on the occasion of the iast 'meeting oi: shareholders, and paid a tribute to the Allied lurces on their triumph over the Central jKowers. iie specially eulogised the pare played by JSiew Zealand throughout tlae war. .Dealing with the affairs of the Company, . the chairman congratulated shareholders on the result of the year's transactions, which showed a net profit of £524 11h 6d after providing for all ordinary and special expense's and all contingencies. It was a further source of gratification that the Company had undoubtedly justified its formation to. the fullest extent. Notwithstanding the ■ strenuous' times, the abnormal trade conditions of the. past year", and the insistent opposition of the trade, the turnover had shown considerable exDansion over that of the previous year. They had been able to maintain more than a sufficiency of stocks of tyres and tubes and had also secured large supplies of• accessories,'thus enlarging the Company's usefulness to shareholders at rates considerably below the ordinary prices levied by others. As, forecasted at the last annual meeting, Mr Stephens, the managing director, visited America during the Year, and, notwithstanding that it \va« a most inopportune time by reason of wnr activities on that side, the visit was fully justified, and the board was satisfied that good business would result. It was found that manufacturer? and others were only too anxious and willing to trade with the company, and no difficulty was anticipated in continues and extending the service to, shareholders. The company had accented the Dominion agency for the "Paige" car, built by the Paige Detroit Motor Car Company, and, by repute quite equal to the " Buick," and it was anticipated that these cars would be available to shareholders at a very reasonable rate compared with present ruling prices. 'Jive first shipment will arrive at any moment. Supplies of lubricating oil have been arranged for, and the hrst two sliipments are now un the water. .At, September 3u, 24-98''siiiu-ttholders \ver<* aiiied to the . Company. The chairman took the ' opportunity ■of pointing out to shareholders the advantages of trading with the company to the fullest ex.ieMi.of their requirements. Ho appealed to members to further help by interesting others in the company, iiunning costs ox cars and ocher motor vehicles would be appreciably reduced, by members placing tlwi whole of their orders for tyres, tubes, and accessories with the company. Only n. very small minority at. oresent failed to do so. lie hoped that this disability, small though it was., would shortly be- overcome. In dealing with the balance-sheet he drew attention to the very ' satisfactory increase of £64,482 in the subscribed capital, notwithstanding that the past year iiad not by any means been at all' favourable for the, sale of shares in commerciall'.undertakings; Sundry creditors had increased by £983 5s 7d, attributable'to the larger eummiunont.s by reason of the increased business now being transacted. 'Ihe assets exceedeu direct- liabilities by £00,047. I3y the purchase of a site in Taranaki Street, Wellington, for new premises, the .Property Account showed a large increase, but the. purchase 1 was a good one and providod--«n area .suificient for all purposes. Unfortunately, owing to the shortage of steel, the board had not been able to place before shareholders their proposals regarding the -building, but the proiiininary plans are displayed for inspection. The stock showed a large increase, now standing at £16,109, but stocks must expand in conformity with the expansion in the share list. Sundry Debtors showed an increase of £009-1," attributable to the larger share list, all of which may be considered good. Cash on deposit and at short call stands at £21,500 and which will.be absorbed in due course, investments in Now Zealand wai loans stand at £5000, of which it it proposed to allocate £.3000 to a re- ■ servo fund. The Working Account speaks for itself, but the chairman emphasiset that the whole of the expense of Mj

Stephens' visit to America had been provided for, together with nil ex-

pense appertaining to i-he saie ui\ shares. Having regard to the fact that the full beneiit.s of bo Mi -will only be apparent in the future, such, might, reasonably have been .spread over ' a period oi; * years, but the board deemed it best to provide i:or the whole amount at this juncture. The chairman thoti paid a .tribute to his colleagues- on the board, the Managing Director, and the staff of the company, for their good work during a strenuous year. After dealing with the figures appearing in tiie Appropriation Account he moved:—

'That the Report and Balance- I sheet now read, be approved and J adopted and that of the amount £3882 12s 4d standing to the credit of Profit and Loss; Appropriation Account, £31)00 bo- alia- • cated to . the establishment of a Reserve Account, £166 ISs^to writing down Goodwill and Fittings "Account-, leaving £710 1.4s 4d to bo-carried-forward." Mr R. S. . Abraham, in sc-s-urnling ' the motion, remarked that although usual for a .shareholder to do so, he, having regard to his: knowledge of, the inner workings of- the' company, felt it would be more satisfactory that j this duty should devolve upon him. j He fully concurred with the chairman j regarding the disabilities and trou- I bles with which the company had been | faced, and which had no doubt pro- j vented still further progress. Nevertheless he felt gratified, not only as ! bein.f the previous chairman of the j company,-'but because when he accepted'that position lie saw the great possibilities ahead ami • the necessity that existed for the ■■establishment ol such a company. Notwithstanding many disabilities, including the influence of "the trade" against the company, staff troubles, etc., the; company had still-been able to put: before 'shareholders a balance-sheet; which does it credit and shows great j promise for the future—provided' the : chairman's appeal for the loyal sup-1

port, of all .shareholders is responded' ■ to. ■ ■. '..-"; j There was one point which appealed ito him—that was the disability of. the I country shareholder's-in- having to ol>J tain their supplies from Wellington. Although certain improvements had been made, the Company had not yet. been ablet to make arrangements for representatives in all the large towns of the Dominion, but he assured shareholders that this would come in due course, and would thus supply a want that is at present fo.lt by members. - ! Mr Abraham then paid a tribute to the woric performed by the chairman ,in the interests of the shareholders, during the year. He.himself had relinquished tiie position, realising • that living away from 'Wellington ho could not keep that control which was necessary. He congratulated himself on having selected 'the present chajrman to succeed him, and could not' understand how the chairman had got i through such an enormous amount ofi work. He knew something of him in 1 other capacities, but despite those ! arduous duties he had responded to all ; calls in an eminently satisfactory mani ner. This, he thought, should be fully i realised, it wasjilso a matter for con- ■ gratu\ation that" they should have a 1 man of Mr Bennett's standing and I calibre to direct the affairs of the ; company. I Mr 11. . I). Melvenzie, Mast.erton, • inquired as to whether an active cau-!vass!-'fpr increased capital was being i conducted, and also as to whether copies of the prospectus were proeuriable. The chairman replied in the affirmative, and remarked that all de- : mauds for the prospectus had promptly : been responded to. ; : j Mr Meivenzie also drew attention to i the absence, of any reference to possible I dividends. . Although fully realising I that shareholders wen; receiving a ver3 T j substantial dividend in the' reduced cost of supplies, ho inquired the intention of the board regarding the payiment of a dividend in the future. I The chairman could not speak as 'regards the policy of future boards, j but that of the present board was, not ito pay dividends, but to reduce the j cost of goods to shareholders whenever ;it was found that the present added was returning an undue i profit. (Hear, hear.)" Every effort ■ would be made to conduct the business • on a. lower percentage, and thus reduce j costs to shareholders, thereby giving j the dividend to the shareholder, that j aid his business with the company. I (Hear, hear.) . I ivir Partridge congratulated the ! board on being able to bring down .such a satisfactory statement. He was I perfectly satisfied with the position, jand felt that the board was to be conjgratulated on their eminently good j work. Having regard to the manner jin which the difficulties of the past two years had been overcome, he looked for still greater success, but felt I that it was unreasonable for sharei holders to expect dividends. lie was ! well satisfied with the present policy. Mr Bruce inquired' regarding the item ' " Goodwill and Fittings." He had no objection to the writing down of fittings, but inquired ', as' to the 'reason for not dealing likewise with goodwill. In reply the chairman explained that the goodwill represented '£1000 actually paid to the vendors of the old business, and that it was the 1 intention of the board to get quit of ! that as soon as possible. They did not I feel justified in asking the shareholders 'to do anything this year, but gave an I assurance, that it would have attention i at first opportunity. I Mr Johnson drew attention to the ! amount' expended in salaries and tra- , veiling expenses, but the chairman .!,pointed out ,^hafc : . such,.. included the' 'whole of the expenses of Mr Stephens's I visit to America during an absence of i six months, together, with .the total i amount expended; in canvassing for the 'sale.of shares, in addition to travelling expense's. Against the latter they had, of course, the premium on the shares, but they were compelled to show the i former in the Working.. Account, and i the. latter in the Capital Ac-count. & I The motion for the adoption of the I report and balance-sheet was carried • unanimously. : j The retiring director,- Mr "W. S. '• Bennett, was re-elected, and Mr H. j Ivory was re-elected auditor, at an ! increased foe. I A hearty vote of thanks to the j Managing Director and staff was cari ried by acclamation. ■ _ . , !j , The chairman, in-' returning thanks ■for his re-election, assured the share- . holders that their interests would- be I very carefully watched,- and' he trusted : that at. the. next annual meeting the "■■ hoard 'would.be in a position to place a I i si.ill more satisfactory statement. before ' I them. He again, alluded to the pro- ■ j nosed new building, and invited sugges- ' j tions from shareholders oil the plans. ' j Shareholders--would be called together ' i for their approval of the final plans {before the work was proceeded with. " I After a. vote of thanks to the ehairl iinui the meeting terminated. 12 x