NO CARDS ON TABLE.

Auckland Star, Volume LX, Issue 292, 10 December 1929, Page 9

NO CARDS ON TABLE.

SHAREHOLDERS' PROTEST. WARM RETORT BY DIRECTOR. TRADERS FINANCE'S HARD YEAR. You have not put your cards on ■-he table," complained a shareholder at to-day's annual meeting of the Traders * i Dan ce Corporation, and similar assertions reiterated from other sources brought the chairman, Mr. J. B. Macfailane, to his feet with an indignant protest. Speaking with obvious feeling, Mr. Macfarlane said: "I'm not going to sit and listen to this sort of thing any longer. If you shareholders think you can run this business better than the present directors, then move a vote of censure and get a fretsh board. "Well be glad to make room for them. The present board consists of gentlemen with high business reputations, and I'm not going to allow anyone to say such things while I'm in the chair. Ive never been spoken to like this before." This was an episode in the proceedings held at the Chamber of Commerce to-day, when disappointed shareholders of the corporation motor vehicle financing concern) received the fifth annual report of the directors, and it ended with the two directors who sought re-election being appointed on a unanimous vote. The directors' report, already published in the '"Star," showed a net proht for the year of £406ti. This allowed for the usual dividend to be paid to pi efei ential shareholders, but left nothing for ordinary shareholders. About

thirty persona were present. In moving the adoption of the repori the chairman said the directors had hac a hard year. Accounts had been care fully watched, and a new system oi bookkeeping had been inaugurated. Un fortunately they had not been able U prevent fraudulent dealing, which was responsible for curtailing their profits He could assure shareholders that the balance-sheet was a thoroughly conservative one. The company, he thought, was in a sounder position, but competition was very keen, and it was difficult tc avoid taking some measure of risk ii turnover was to be maintained. Special steps were being taken to guard against fraud in the future. Mr. A. E. Warnock, seconding' the motion, said the year had been a strenuous period, and to some extent disappointing. He was confident that the company had a substantial future. He suggested that some or the companies carrying on the same class of business might unite to prevent fraud. Three Years' Losses. Mr. Harty said that it was understood last year that the unfortunate incidents of 1927 had been cleaned up, and that such happenings would not recur He asked if there had been any further writing off in regard to that particular account. Losses during the past three years had been about £30,000. They had understood last year that if shareholders agreed to write 2/6 off their shares everything would go on swimmingly. He congratulated the directors that some people had sufficient confidence to put money with the company on call, but was surprised that the management, with all its experience, had been unable to avoid further bad debts. In regard to tlx l disastrous affair of 1927, the shareholder!? had been victimised, but the directors had persuaded them that it was not advisable to prosecute as this would prejudice thair chance of recovering some of the losb. Mr. Emanuel thought the turnover was too small for the capital, considering the rate of interest charged. Hs was sceptical of the business being able f o pay its way. Eeplying, the chairman said that with the exception of the 1927 affair thera had only been one loss and this was the result of fraud. He claimed that the financial basis was satisfactory. He saw no possibility of their being able to raise their rates of Interest. There svas no idea of calling up fresh capital. Referring to the income tax, he said: — "You put your own Government in. rhey take 4/6 in the pound. They get ihe cream of the earnings. They get vhat you should get." Possibility of a Recovery. In regard to the 1927 affair, continued ;he chairman, there was a possibility of :5000 coming back to the company. But 'or the losses mentioned they could have ;asily paid 5 per cent dividend to ordiniry shareholders. Mr. L. T. Symes criticised the policy if taking money on deposit, which night be required at an inconvenient ; me.

Mr. .Tarritt complained that the direc- ■ tors had not taken shareholders into their confidence. They had fought the shareholders when information was sought. The directors had not put their cards on the table. Another shareholder spoke on similar lines. It was at this stage that the episode already described took place. The annual report and balance-sheet were then adopted unanimously without further discussion, after which Messrs. H. T. Goldie and S. J. Harbutt were reelected directors. Mr. I. B. D. Esam was reappointed auditor anG the customary honorarium was voted to the directors.