COMPANY AFFAIRS.

Auckland Star, Volume LIX, Issue 258, 31 October 1928, Page 4

COMPANY AFFAIRS.

D.I.C. DIVIDEND TEN PER CENT. (By Telegraph:—Ofvn Correspondent.) DUNEDIN, Tuesday. The annual meeting of shareholders of the Drapery and General Importing Company of New Zealand was held to-day. The" report stated that the net prohts for the past year, after making full provision for land and income tax, were £42.727 10/11, which, with £35,981 9/5 brought forward from last year, shows a total to the credit of profit and loss account of £78,709 6,4. Ou May 1 an interim dividend was paid on preference shares at the rate of lj per cent per annum for the half-year ended February 20, -which absorbed £7500, and leaves £71,209 6/4 now available for division. This sum the directors proposed to deal with as follows:— Payment of dividend at the rate of 6 per cent per annum on preference shares for half-year ended August 20, 1928, £7500; payment of dividend at the rate of 10 per cent per annum on ordinary shares, £17,851 15/8; addition to reserve fund (which will then stand at £70,000), £4937 5/; balance to be carried forward, £40,920 5/8; total, 71,209 6/4.

BRUCE WOOLLEN COMPANY

NEW TRADING POLICY.

The directors of the Bruce Woollen Manufacturing Company, Ltd., state, in their annual report, that the profit and loss statement shows a net profit on the year's trading of £7279 8/5, which, they consider, must be regarded as extremely satisfactory. Unfortunately, as a result of trading extending over a number of years, a customer "had become so heavily indebted to the company that, on his business being wound up, the account showed a debit 0f'£3993. This loss has, been provided tor out of the profits as shown in the profit and loss account. Provision has also been made for depreciation to the extent of £2000 on plant, and the directors recommend that out of the balance of the profit (£1324), the dividend and interest on preference capital, amounting to £1064, be paid, and that £259 be carried forward.

During the year the sales policy of the company has been completely changed. Whereas previously the company traded only with wholesale houses, it is now selling direct to the retailer. Despite this fact, the total of the sales has been increased. The appeal td sharehbltlerS for fresh capital has resulted in the application for £44.985 shares, of which 28,443 were allotted prior to, and 16,552 since, the end of the financial year. As a result of this response the directors have been enabled to order an up-to-date worsted plant which should be in operation in six months* time, and will increase the company's earning power as well as the demand foe its goods: >

The balance-sheet shows paid capitaf £127,211, and a bank overdraft secured by debentures of £88,933. Chief assets are plant account £87,836; premises, £34,884; stock, £97,404; book debts, £15,891.

CANTERBURY CO-OPERATIVE.

CAPITAL TO BE REDUCED.

• (ByTelegraph—Press Association.) TIMARU, Tuesday. The -3oth annual meeting 6f the Canterbury Farmers'. Co-operative Association was held to-day. .Mr. K. McKenzie, chairman of directors,said" th«-trading profit for the year was- £i9,16>1v As indicating the improvefinkridfif he 1 s&id' the liability to the tonE'and: jeplwitdttr in 1923-24 was £608,544,""compared £&7,826 Hn 1J)27-?8,„ n . decrease in four years, of £•270,718. '- The pas* year's working •hawed a decrease of £3000 ,in expenses, chiefly (salaries and- overdraft interest, and an increase-in earnings of £6800. In the part four' y ears deposits had been reduced by,' almost half.

Ttye,., Report and balance-sheet were adopted. ... . ~

The .meeting agreed., to alter the articles of-association to provide for a reduction ia the. number of directors from, twelve to nine, five to represent the depositors and four the shareholders,' the directors to be paid an aggregate of £1200 a .year.

in order to stabilise the financial position, and restore the association to a dividend-paying basis the direct ore recommended writing down all ordinary and preference shares by 25/ each. The ordinary and C and D preference shareholders agreed to "the proposal, but the A and B preference shareholders rejected it.

The matter as far as the two latter groups are concerned will come up for reconsideration.

NEW FIBRE WORKS.

TO START AT SHANNON.

A ney, coijlpany is being formed in Shannon to manufacture sacks, rope, and other jfibra .materials,; Shannon has.. been chosen as the centre i of operations owing to its position, in the flax milling industry. The largest mill operating in New Zealand is 'situated hear the 1 site of the proposed works, and the supply of raw material will always be available. Another factor is the •• proximity of the Mangahao hydroelectric works.

NATIONAL INSURANCE COMPANY.

DIVIDEND 12% PER CENT.

(r&j ? Telegraph.—Press Association;)

x DUNEDfN,' Tuesday.

The annual report of the National Insurance Company'shows that the net income for the year ended September 30 was £280,688. After making full provision for losses outstanding and adding £10,000 to the reinsurance reserve, there is" an underwriting surplus of £17,678. Interest- and rents, lees income tax, amount t0,£31,850,, making with the balance of £32,603 brought forward a total- of .£82,131. . ' ' ■' An interim dividend paid in May, 1928, absorbed £ 16,667,/ ■ < leaving available a balance of £65,464. The directors have added £5000 to the rfflferve fund, £1780 to the taxation and contingency account and £1421 to the investment fluctuation account. They now recommend the payment of, a further .dividend of 3d a ibare, making- the total distribution for the year 9d' a share, which will absorb £20,833, i rec * ors P r °P° Be to capitalise x 50,000 from the reserve fund as indicated ?t»sf&e'*lßharehol&ers!' at the last annual meeting of the company.

ELECTROLYTIC ZINC,

' * DIVIDEND" 12 "PER CENT

metal ruled I the period covered by the annual ifeport of the Electrolytic Zinc Company of', Australasia, for the year ended June 30, a reduction in net profits, by' £27,052, to £ 363,025 is, shown." of- sine totalled 48,117 tons, more> tha ! a • ifi -,thl»-"previotil ereasps are" jn tions*-&gr~-the company*,r. •. The account; wa * making, with the 1 . year's v iThe , directors , have added-£12,100 to the" debenture sinking and provided £50,000 toward development and new plant for West Coast mine*. The dividend* '«t the usual r#t« absorb £312,000, !earUC fin#* ip. be auTied forward, te t I if <" J