FARMERS' TRADING.

Auckland Star, Volume LXIV, Issue 150, 28 June 1933, Page 3

FARMERS' TRADING.

COMPANY'S MEETING. "PERIOD CF LEVEL GOING." GRADUAL RISE ANTICIPATED. "I can assure shareholders that the directors regret exceedingly that for the second year in succession force of circumstances has rendered it inadvisable to declare a dividend on ordinary ( shares," said the chairman of directors j of the Farmers' Trading Co., Ltd., Mr. j A. A. Ross, in moving the adoption of ; the report and balance-sheet at the j annual meeting of shareholders this j morning. j "As a result of not pa vim a dividend I i last year, and the smaller sum required , to meet income tax «ntl sundry other adjustments, the carry-forward has only j been reduced by £.->OO2 11/2, in com- | parison with a reduction of £29,0-'3-j 1/11 | at the previous balance."' continued Mr. ! 1 i Ross. ''These results are alter meeting j all payments with regard to income tax I i and dividends on preference shares, and if the trend continues as it has.every prospect of doing, we may look forward, in the near future, to resuming the pavment of dividends on ordinary shares. ! i '"There is a drop of £17.149 12/2 in j the gross profit. This compares with a j drop of £48,334 last year from the figures ! of the previous year. It has been partly I balanced by a drop of £7042 18/10 in j the general expenses, which is really a i solid achievement considering that it is ! on toj) of a reduction of £20.000 last year, it still leaves a gap of £9-100 13/4, and the final result is that the net profits arc less than 1932 by £10,94.8. But here again we have some grounds ■ for optimism, as the comparative figures for- 1932 showed a drop of £2.).529 3/7 compared with 1931. We are therefore justified in believing that the steep downward gradient is past, that we have reached a period of level going, and that a gradual rise to more prosperous timeis not far distant. Trend of Events Abroad. ''In this matter we are, of course, in common with all business concerns, dependent to a very great extent upon the course of events in the Dominion as a whole." proceeded Mr. Ross. '•This again is dependent upon the position of things in the great industrial and business i world overseas, and there the trend of events gives us hope that we are on the eve of better times. The war cloud which loomed rather ominously in Eastern Asia has faded, so that if the Pacific is to be the future storm centre the time is not yet. Then the Great Powers of the Western world are getting tDgetlier, and endeavouring honestly and earnestly to remove the difficulties and misunderstandings which have led to so much trouble in the political and commercial spheres. As a result of their deliberations, the long nightmare of international war debts should presently be a thing of the past, the grievous burden of war preparations should soon be drastically lessened, and last, but not least, there seems to be a general acceptance of opinion that the huge network of trade barriers which lias suppressed such a largo proportion of world trade is one of the greatest obstacles to world recovery, and that it must in some waybe dealt with immediately. When these matters have been adequately attended to. recovery is certain, for the control which man has gained over natural resources through recent discoveries and inventions, resulting in increased production power, is such that it only requires to bo released and the results will be something beyond all previous experience. We are in the grip of a world tornado, and only by putting world matters on a better footing are we going to finally escape. r lhe world has now got to "the stage where due attention to these matters is almost a certainty, and at no distant date this company, in common with the rest of the Dominion, is hound to reap its due share of the benefits. Items in Balance-sheet. "Referring again to the figures in the balance-sheet, it will be seen that the amount under the heading of sundrydebtors is down by £54,192 15/11. 'J his is to some extent the result of a cleaning up of branch accounts, but it is mostly the outcome of a decreased business and a satisfactory settlement of accounts owing to us. The whole matter of sundry debtors is in quite a sound position. The reserves under this heading have been reduced by £SSIO 13/0, but the total amount outstanding having been so considerably cut down, the reserve has proportionately increased, and is nowwell over 20 per cent. Stocks at branches are up bv £15,581 12/8, while plant and fittings at branches are up by £11,383 4/6. These increases are all on account of branches opened since last balance, the largest item being in connection with the Queen Street branch, where business, it is satisfactory to observe, is still moving steadily upwards. "On the liabilities side it will be noted that we have paid out of fixed deposits and current account a balance in excess of new deposits of £52,432 14/9, and that the bank overdraft lias been increased by £49,520 2/0. Thus, with the exception of about £3000, the withdrawal of deposits was balanced by an increase in the bank overdraft. Tins could not continue, but the agreement mado with the fixed depositors, under which there are to be no withdrawals unless agreed to until Xoveniber, 1937, has made the position quite safe, while the reduction in the rate of interest to 5 per cent will mean an appreciable saving to the company. I would like to comment on the very fine and helpful spirit displayed by the fixed depositors at their meeting to discuss the proposals. They fully realised the position, and were practically unanimous that it was in the best interests, not only of the company, but also of the depositors, that the arrangement should be made. "In conclusion, I wish to pay a compliment, and something a good deal more than a formal one, to my codirectors," said Mr. Ross. "They are all j men who are more or less carrying on responsibilities in connection with other business concerns or with public bodies, in addition to the task of making end» meet on their own farms in these difficult times, but I want to assure the shareholders that they have taken their responsibilities in connection with this company very seriously and attended to the onerous duties entailed, faithfully and well, sparing neither time nor trouble on every occasion when required." A number of questions were asked and answered by ill'. Ross and by Mi. Robert Laidlaw. Messrs. A. D. Bell, R. D. Duxfield and L.*H. McAlpinc, the three directors who retired by rotation, were re-elected.