NORTHERN BOOT AND SHOE COMPANY.

Auckland Star, Volume XX, Issue 290, 6 December 1889, Page 3

NORTHERN BOOT AND SHOE COMPANY.

rr«r followinff business was transaoted 5£- SrKB to p«ss p-tordag at the Mifthlff 0l Shareholders in the Northern 800 and Shoe Manufacturing Company. Mr J Elkto, Chairman of Directors, presided and in moving bhe adoption of the 53 said that their pleasure was lessened in the fact that Mr Carr was not presiding 2 ler.tofore. He was sure they all re*«*„ted the circumstances which had 'Sdrtd the severance of his connection with the Company. Turning to the report, it mast be admitted that ib was satislaotory There was a fashion even m boots and ■shoes, and they were endeavouring to supnlv the requirements oi the public and give the Company the position of being able to famish articles of style, fit and nnish, and good quality. Ab the same time they should bry to gob financially easy, so la to be able to buy advantageously. The directors claimed their company nob to be behind any in the trade, and it was their endeavour to get rid of any extraneous help financially. Looking at the figures, io would be seen thab they could have paid a Iftreer dividend, but the one recommended they thought satisfactory and fair. None of the goods wero pub down in tho valuation at more than the cosb, while rediiOtiohs had been made in things out of date. the past year there had been no trade disputes, bub keen compebition made large profits almost impossible. He miehb state, however, thab their orders had Increased both in the South and On the West Coast. He thought that was one of the many Signs fending to show thab the period of the greatest depression in New Zealand was passing away and prosperity coming in its turn. He had much pleasure l in moving the adoption of the reporb. Mr W. Wilson seconded the motion. Mr GittOS said ho was riot quite satisfied With the dividend recommended. Looking at the balance-sheet jusb read, he found that the credit balance was £200 more than last year. As their business was not of a speculafciv.klnd, he thoughtthat there mighthave been a lafg.r dividend. He did not consider that 7 per cent, was sufficient when they remembered that they had to wait till the end of tho year for their returns. It was well known thab many shares were unallotted, and ho thought that it would be WOfth While to call Mp some of the capital in that way. At tho present market rate persons buying outside would gob equal to 10 per cent., while the original Shareholders only received 7 por cent. Ho would move that in view of the satisfactory nature Of the report the dividend be 8 instead of 7 per cent. Mr Fleming seconded the motion. He thoughtthat bhe price of tho shares had been Kept down in the market by the small dividends.

Mr J. McLachlan said thab ib would bo worbh while to call up capibal to pay off the ,£5,350 on fche building, but he did not think it wise to pay more than 7 per cent, until times improved. If anyone felt certain that they could pay 7 per cent, por annum for • Soma time, the shares would rise in fche . mavket.

. Mr Syers thought that in thosft times they should be satisfied with 7 percent., when they saw other companies unable to pay their way. Sir G. Winstone sympathised with the last speaker. They should clear off liabilities before increasing dividends. He thought it would do harm to the Com--1 pany if the dividend was increased.

i The Chairman said that he was not at all wedded to a 7 per cent; dividend—in fact, he would like to have seen ib 6 per cent. He would he decidedly opposed to paying 8 par cent., as he did nob think the Company could afford it. When they considered thab bhey had four or five thounand upon their books which they estimated safe, bub which mighb prove otherwise, it would be unwise bo trench further upon the reserve capital. If they did so it would decrease rather than increase the value of the shares in fche markeb, -as people liked to be ih safe companies now-'a-days. If the Shareholders wished to Call ■up more capital ifc could be dono by resolutions bub he feared that mosb of them would prefer not to do so. He would like tb see them clear of the debt. Bank® wero ; like crutches to a sick man, useful, but still they did not Want bo rest upon bheir crutches longer than was necessary. The question was then pub to the meeting, when the rdpcrfc was adopted without any 'alteration, leavingtbcdividend ab7 per cent. Directors.—Messis J. L. Wilson and [George Winstone wero _c elected as directors. The Chairman explained that Mr Car. had dropped dub of the Board of Directors, and he thought they could go on with six directors. Mr Gitfcos eea_idor.d that fivg directors would bo sufficient. Tho Chairman .aid most probably the Bevenbh director would not bo appointed.

Auditors.—Applications for the position of auditor were received frbtn Charles A. .Jonas and JOseph Barber. A show of hands Was taken and Mr Jonas was elected by a • laiffte majority. s On the motion of Mr Fleming a vote of thanks was accorded to the directors dud officers Of the Company* _ This was responded fco by Che" Chaif fiiari, and _Jse by Mr Thomas Hodgson, fche Secretary. Tho latter considered bhab the affairs of the Company were certainly improving. It Was in a sure position and their travellers met with great succe__,inore particularly ib bhe South.'