NORTHERN BOOT AND SHOE CO.

Auckland Star, Volume LVII, Issue 208, 2 September 1926, Page 4

NORTHERN BOOT AND SHOE CO.

ANNUAL MEETING. The 43th aonur.l meeting of shareholders in the Northern Boot and Shoe Company was held yesterday afternoon, when Mr. George Winstone, chairman of directors, presided. The report and 'balancesheet (already published) were taken as read. The chairman, in moving the adoption of the report and balance-sheet,- said the directors were disappointed at the result of the year's operations. The position was a natural one, due to the steady decline in footwear values. The shoe industry was never more difficult than at the present time. -A large variety of ladies' footwear was now worn, and they could see in shop windows evidence of changing fashions. The greatest depredation in the value of the company's stocks was in ladies' footwear, and the material for their manufacture. The downward trend of prices had been continuous for four years. They had written down the stock year by year, and by careful management paid a., dividend. The directors thought the time had now arrived when it would be better at once to write down all stock, particularly any unfashionable footwear, to such a figure that any further lose would not be possible. That had been done, and at the present time there was not a pair of boots or shoes or an item of material used in the industry that would not show a profit when sold. He felt sure shareholders would approve of the action of the directors, though it meant for this year going without a dividend. The directors saw the need for that splf-denial, and, being in sympathy with it. did not recommend the payment of the usual honoraria. Under normal conditions the directors were satisfied that sufficient profit was -being made on the sales to give shareholders a dividend that would be a fair return on the capital Invested. The bad debt account was unfortunately large. That, however, was not surprising In the face of the fall In the value of footwear. The drop in prices had hit every business that carried stock. The bad debts of the company were, however, almost normal, but for one large account where an old customer had to call his creditors together. The unprofitable year was not caused by anything approaching carelessness on the part of the staff or management, but was due to circumstances outside their control. The plant had been written down as usual, and was In a high standard of efficiency. Mr. Winstone concluded: "After viewing the position as a whole, I can only say that your directors look forward to the current year's business with confidence." Mr. J. Miller said he would like some information. It had been said that speech was given to hide people's thoughts, and he felt that sometimes accountants existed to hide the multitude of losses. Tnejwere told the stock had been written down drastically. He would like to know If that was the same stock that was written down a year ago. He understood the loss was on imported goods, and that the factory had been working at a profit. Looking at the balance-sheet, a man had to work it out. to find what had been the real loss of the company. He saw no reason why It should not be stated plainly for the benefit of shareholders. As far as he could make it out the loss on the year was about a thousand pounds. Some years ago the liabilities of the company were £116,986 and the assets £43.518. It was doubtful now whethpr the assets would be more than 3<V per share instead of over 40/. In conclusion, Mr. Miller said he considered the directors were right in passing by the dividend this year. Mr. J. M. Tregaskis. manager and secretary, was asked by the chairman to give the Information required by Mr. Miller. He Raid the stock had been written down last year, and again more drastically this year. As to the question of making the losses more clear, and some other points, it was a question whether the company should publish what were re-ally private details. Mr. Winstone said the information would be furnished any shareholder who asked for it. The manauer said the actual loss on the year was £954 18/6. Answering another shareholder, he stated that the reserves were invested in the business in stock. The report and balanep-rfieet were then adopted. Messrs. R. C. Carr and \V. P. Winstone were re-elected directors on the motion of Mr. Miller, nnd Mr. E. L. Jonas was again appointed auditor. A vote of thanks was accorded the dLreetors and staff, and thanks were also tendered the board for foregoing their honoraria. BYDNEY WOOL BALES. .SYDNEY, September 1. At Hi r> Sydnpy wool sales to-day tlio. market was nrm at laic rate.-*. Very full mvi Mtlsfartory rioaranros wore modi. The only lines cllmf• ull 1o s* , )! wore wools Ol' iloubtrul yield. Merino sold to 25i.d. .. AA, aaa B&.) I