CHEERFUL SEASON

Auckland Star, Volume LXVIII, Issue 234, 2 October 1937, Page 12

CHEERFUL SEASON

PROGRESS.

A GREAT RECORD. WAIKATO COMPANY. FARMERS' AUCTIONEERING. EVERY DEPARTMENT SHARES. Shareholders of the Farmers' Co-op. Auctioneering Company listened to a cheerful story from the chairman of directors, Mr. E. M. Edkins, at to-day's annual meeting in Hamilton. The company has Just concluded tho most successful period in its 30 years of existence and, n« already notified in the "Star," turnover was closo on £2,500,000 and the dividend on ordinary shares is to be increased to 6 per cent. In moving tho adoption of tho report and balance-sheet, Mr. Edkins said: —

Ladios and gentlemen, it Is with pride and plcusuro that I submit to you the company's balance-sheet nnd profit and loss account for the year just closed. Capital and reserves show no variation on last year's figures, viz., subscribed capital £008,207, paid up £479,953, and reserve account £20,000. The only other liability is sundry creditors, £40,140, an increase of £1893 on the previous yoar's figures, and this lias since been paid. Tho assets amount to £594,574, revealing a percentage of liabilities to assets of 6.75. The value of tJho company's properties, less depreciation on tho wholo, stands at £175,809, nil Increaso on last year's figures of £11,442, accounted for by tho purchase

of a riff* sits and the erection of an up-to-date store at T« Aroha, and progress payments on account of extensive additions to our Auckland wool an - grain stqres. Renewals and repairs have, as usual, been charged against current expenses. The value of the whole of the working plant, machinery, office furniture and fittings engaged in the business, less depreciation, stands at £11,820. Sundry debtors (less reserves) and hills receivable aggregate £243,083, an increase of £2210. investments total £52,063, and of this sum New Zealand Government inscribed stock, less reserve for any possible fluctuation in value, totals £30,705. The balance is represented by mortgages and other securities. There was a credit balance with the oompany's bankers of £8307. Stocks of merchandise have been valued at £101, Ml, an Increase of £8127 on last year. The percentage of expense* to gross ftroflts is 04.72. Summarised, the position s as under:— * Paid-up capital ....... 47ft,f>53 Total nubilities 40,J10 Total nssets 8K4.571 Turnover 2,403.330 Or ok* profit 171,777 lOxpensns 111,171) Net profit 00,508 The turnover referred to is in advance of last year's figures by £407,640 (almost half a million). Every department and agency has shown a profit, and the net return is only 2J per cent over the wholo volume of business.

Stock Department Busy. The stock department is able to record • most successful year, and the number of etock handled la considerably in advance of lant year's figures. Throughout the year prices for all live stock have remained Arm. Chilling operations have again played an Important part in the improvement of beef prices, which during the recent winter months reached the record of 44/ per 1001b, this being the highest price quoted over the last eight years. There is still, however, a considerable variation in the quality of the beef, and also in the condition of shipments on arrival, indicating that there is room for further improvement. It is essential that farmers should realise that beef from unfinished flabby cattle does not make the Ideal chillwl product. It is, therefore, imperative that all chiller cattle sent along to the freezing works should be thoroughly finished. All other classes of cattle have been selling at equal to, or better than tho previous year's rates, and through our excellent connection in the East Coast district we have been able to supply our clients with station-bred cattle of outstanding quality, which make ideal chillers. Nearly all of these cattle were distributed through our Morrinsville Jrards, which are fast becoming the eadlng store stock centre in the North Island.

Keen Bidding at Sales. Ik in pleasing to rocord that throughout the year nil tho company's salcyards have boon well patronised, while n larger number of clearing Hales have also boon ruin. A feature of thin year's operations has been the abnormal number of boner cattle handled, heavy culling of herds reuniting In dnlry cattle being in keen demand at prices about HO/ to £2 per' Jiead better than last year. Over the last, few years the demand ■or useful farm horses lias been very keen, but recently there have been signs of an casing tendency. Wo were however, successful in getting an entry of Clydesdale horses from the South Island for our Cambridge spring horse fn 'f» these animals created considerable interest amongst local farmers, with tho result that this year's fair was one of tho best for many years. The demand for all classes of sheep has remained good, fats especially being very steady throughout the year. Larger l numbers of breeding ewes havo been handled, and once again we have had to draw heavily on the East Coast district for supplies, but a larger volume of buatjMM la being transacted with

southern sheep, which meet a very favourable reception in the Waikato. During the past few years the dairy farmer has realised the advantage of running a few breeding ewes in conjunction with his dairy herd, and each year increased business in this direction is handled, whilst it is expected that more farmers will take advantage of this method of increasing their annual returns.

At all our loading saleyards the company has largo and up-to-date pig yards in which regular fat pig Bales are held, and farmers who patronise this method of disposing of their pigs usually reap the benefit, of higher prices. There have, however, been rumours of a movement on foot for all fat pigs to be disposed of on the hooks. There is no doubt that the farmer would be well advised to watch this very closely as it may result in the creating of a monopoly, the effect of which is usually detrimental to the farmer. Undoubtedly the yards are the better medium for the disposal of live stock, as the only method of gauging the correct value is by open competition, which is always forthcoming at yard sales, and if the farmer loses this prerogative he may be forced to take whatever price is offering. Satisfactory Wool Season. The 193(5-37 wool season was a most satisfactory one to growers, and at the first sale of the series, held on November US, I!»3<>, a general feeling of optimism prevailed. Good prices were expected, which was reflected in the offerings, the limit fixed by the wool committee, despite the wet weather experienced during October, being filled, which is quite unusual for a first sale. Owing to political trouble between Australia and Japan, the latter's operations were expected to bo on a large scale, but to the surprise of most, the Japanese actually dominated the sale, their purchases covering types " and qualities which in previous years had not interested them.

We catalogued 5315 bales, and a total clearance was made under the hammer, the first tinii) such a clcarance had been made for many years. The average price realised was £21 4/3 per bale, 14.24 d per lb.

For the second sale, held on January 25, 1937, all stores were congested, the limit being reached, to the disappointment of many growers, weeks before tho date of the sale. There were 6156 bales catalogued, and of this number only 4(1 bales were passed or withdrawn. Although the Jupanese competition so marked at the first sale was not in evidence, competition was keen and animated from all other sections of the trade, and values improved to the extent of Id per pound, the average price per bale £23 1/; per pound, 15.24 d. The third and last Auckland sale of the series, held on March 5, 1937, some weeks earlier than the usual date of this fixture, was unlimited. We offered 5978 bales, every one of which was sold under the hammer, the average price per bale being £21 17/2; per pound, 15.04 d.. slightly under the values ruling at the January sale. We finished up the season without a single bale being carried over.

< The season's dip opened up well, especially the offerings at the first sale, and even at the last sale, when later shorn wools, heavier in condition, predominated, sonic very attractive clips were displayed.

The classing and >binning of wool is increasing each year in popularity. The growth of these figures in our catalogue is a source of pride and one of the greatest compliments growers can pay us. New Season's Plans. Considerable difficulty was experienced last year in finding accommodation for the large quantity of wool received, outside storage having to be obtained at considerable expense, and the congested floor space- compelled the company to face additions to the stores situated in St. George's Bay Road. Immediately after the close of the season work was put in hand and three extra floors have been added to the No. 2 wool store, thus giving us a show floor equal to any in the Dominion, and ample space for storage. Inspection by clients of these commodious stores will be welcomed at any time.

As usual, the first and second sales of the coming series will be limited, and as no preference can be given I would urge farmers to consign their clips to our Auckland store as early as possible to avoid disappointment.

Gratifying results have been achieved by this department of the company's business. Trade during the year just completed ha« been buoyant, and eales showed a substantial increase when compared with the previous period, which is evidence that the service rendered by the company to clients is appreciated.

Although the volume of business has increased considerably, trading conditions have been extremely difficult, higher wages and the lose in human effort through the reduction of working hours being reflected in reduced production and increased cost of handling and distributing goods, resulting in higher prices for nearly all commodities. The armament plan recently adopted by Great Britain ha« been the cause of higher prices for all metal products. This especially applies to iron, wire, tools, etc., which are alwaya iri demand by farmers. It is pleasing to note that preference has been shown by clients lor goods manufactured in the Dominion and within the' Empire, and we shall continue to foster this preference.

Shipping Expansion. As advised last year, the expansion of this section of the business, in conjunction with that of the merchandise section, compelled us to seek more commodious offices in Auckland, and during the year the company's Auckland staff ha* been transferred to the new premises situated in Customs Street, adjacent to Queen Street.

The shipping department has had an exceptionally busy year, and it is pleading to record that the inward tonnage from the United Kingdom, Canada and tho United States of America shows a considerable increase over last year. Ship* have been arriving with full cargoes, in marked contrast to the past few years, when they have arrived in the Dominion in ballast.

All clauses of exports show an increase in volume with the exception of frozen quarter beef, but this has been offset by the increase in chilled beef. To show the development in the chilled beef trade, an extract from this year's report of the New Zealand Meat Producers' Board will be of interest:— EXPORTS FROM N.Z. Season. Quarters. '•••• 10,578 IS2H2 64,514 1038-36 144,168 i F » or season 1036-37, to June 30 last, 142,745 quarters were shipped, as compared with 112,109 quarters for the same period last year, an increase of 27 per cent, and it is estimated that by the end of the season shipments will aggregate no less than 200,000 .quarter#,