NEW ZEALAND NEWSPAPERS.

Auckland Star, Volume LXIV, Issue 114, 17 May 1933, Page 4

NEW ZEALAND NEWSPAPERS.

ANNUAL MEETING HELD. A SOUND POSITION. The annual meeting of New Zealand Newspapers, Ltd., was held this morning in the board room of the company, when there was a large attendance of shareholders.

The report showed a net profit for the year ended March 31 of £31,606 16/3, which, with the amount brought into the accounts, left a balance of £35,244 9/4. From this a dividend at the rate of 2% per cent per annum was paid in October, and a further dividend of an. equal amount was recommended, making a distribution for the vear of 5 per cent, absorbing £29,125. This left a sum of £0,119 9/3 to carry forward.

The chairman (Sir Cecil Leys), in moving the adoption of the report and balance-sheet, said that the result of the most difficult trading year in the history of the company showed a shrinkage in earned' profits of approximately £1000 when compared with the preceding period, which, taking everything into account, should be regarded as satisfactory. A marked reduction in the volume of advertising was again a feature, and it was only by further stimulation of the publishing side of the business that the circulation of the various journals had been maintained. While the most strict economy had been necessary, the policy laid down to allow no question of profits to interfere with the high standards set for all the company's publications had been rigidly followed. To this determination to give unimpaired service the maintenance of circulations, while the volume of advertising steadily declined, was almost wholly attributable. The effect was most marked in Christchurch, where the company's two dailies were steadily growing in public esteem. An indirect evidence of this was afforded by tho large number of shares bought by southern residents in recent months. The Canterbury shareholding in New Zealand Newspapers was now about equal to the shares issued by the other Christchurch newspapers combined. The increasing volume of transactions in the shares of New Zealand Newspapers had influenced the board in deciding to have the scrip quoted on the Dominion stock exchanges, and its popularity as a sound investment was shown by the small return on the present market price. The experiences of the past two or three years had at least served to demonstrate that, with careful attention to business, we had little to fear from the future. The maintenance of conservative finance had fully justified itself. In pursuance of this policy £12,000 was paid off the mortgage on the building taken over from the " Sun " Company in Auckland. A further £10,000 was paid off last week, and this mortgage, which represented the only permanent debt of the Company, would be entirely eliminated from the next balancesheet. During the year £5600 of Government bonds had been purchased, and investments entirely outside the large amount of liquid funds in the business were valued to-day on a conservative basis at £124,884.

The strong position of the company liad allowed for the maintenance of large London balances, which were at their peak when the exchange was artificially raised in January. All over the world judicious newspaper advertising had stood the test of restricted and difficult trading. More and more had those connected with the distribution of goods and the sale of services come to recognise the far-sightedness of William Ewart Gladstone who, away back in the 'eighties of last century, said, in the course of a speech at Glasgow, ' : Advertising is to business what steam is to industry—the sole propelling power. Nothing except the Mi»t can make money without advertising." The Grand Old Man was no doubt visualising the whole field of advertising, but, standing out as a giant among pigmies in that field, was newspaper publicity. The ball was .it the feet of all those who recognised the fact and built soundly on this foundation, steadily accumulating a goodwill that would stand by them even in the most sevious trading depression. While we could not see into the future, this was a richly endowed little country, and we could look forward with equanimity. Signs were not wanting that the world's financial difficulties were becoming better understood, and that their solution was definitely nearer. The business of New Zealand Newspapers was ready to profit by any improvement in the times, its facilities were unsurpassed in this Dominion, and it* staff efficient and keen. The report and accounts were adopted, Sir Alfred Bankart, the retiring director re-elected, and Messrs. Gilfillan and Gentles, Auckland, and Messrs. Hoare and Kingscote, Christchurch, reappointed auditors. Votes of thanks to the staffs in Auckland and Christchurch terminated the proceedings.