DALGETY AND CO.

Press, Volume LXIX, Issue 21050, 29 December 1933, Page 11

DALGETY AND CO.

annual meeting HELD CHANGE FOR THE BETTER [POSITION IN NEW ZEALAND REVIEWED (ntOli Oua OWS COItHESrONDENT.) LONDON, November 24. The Hon. Edmund W. Parker presided at the annual meeting of Messrs Dalgety and Co. yesterday. Although he was unable to recommend a larger distribution by way of dividend than that of last year, ho said, there had been some improvement in the company's earnings. The chairman first g'ave some details regarding the finances of the Commonwealth Government, and commended its wisdom in sending Mr Stanley Bruce to London to negotiate the conversion of loans. Since June, 1932, a total of £71,565,187 Commonwealth and State loans, carrying rates of interest varying from 4 per cent, to per cent., had been converted into 3J per cent, and 4 per tent, stocks. The average rate of conversion was about 4 per cent., giving an approximate saving of interest and exchange to Australia of, say, £1,550,000. There still remained available for conversion only £35,806,190 to be dealt with. This >vas indeed an achievement of which rthe Commonwealth might well be proud. "I said last year," continued the chairman, "that an improvement in the prices of primary products, a further reduction of working costs, and a return to normal conditions would help to overcome some of the difficulties I have just mentioned and I think I jnay say that all three of these conditions are looming on the horizon. 3n the case of the reduction of working costs it is more than that; we have accomplished much, and our expenses jn the last three years show a very considerable decrease." New Zealand Trade. On the subject of operations in New Zealand, the chairman said; "I am very sorry to say that results are still most disappointing. Prices have again been on too low a level to benefit producers—in fact, in some cases they are below the cost of production, and naturally this state of affairs is reflected in our earnings. I :>m glad to say there has recently been some improvement, and most of the primary products of the Dominion show an advance in values _ which should help materially to bring the farmers a little nearer the goal they are seeking. "The internal affairs of the Dominion, however, do show some improvemerit. Trade figures are better. In Januarv last it was decided to adjust fie rate of exchange to bring it to •the came level as that of Australia — namely, £125 per cent. .This again is an arbitrary rate not justified by the trade figures for the year. At December 31 last exports from the Dominion totalled £36,965.000, and imports £23,035,000, giving a favourable balance of £13,930,000. This adjustment in the exchange rate was ot course of some benefit to the producer but it also meant that it was going to cost the Government more to meet its interest bill in London. True, a great saving in interest had been made by the successful conversion of some £115,000,000 of internal debt, ■which means a gross saving_ in interest of about £1,000,000, and this should be a relief to the Government when 5t is endeavouring to balance its duciget. Land values still remain on too high a level, and a general writ-ing-down has still to be faced. Grave Problems Ahead. "One of the factors in the economic life of the New Zealand farmer to clay which fills me with apprehension is that while he is already burdened -with debt and, in most cases, un able to meet the interest on the money advanced to him, he is, in addition,^decide what steps will have taken to accomplish this r "Now Zealand, . we shall problems ahead, but I P L, ~hir> to overcome them, ub m uic li-i't I have every confidence m ou executive oncers in the Dominion, and S know they will do t, n ity their power to benefit the » as a whole, while, at thes same* they will have our company - intent deeply at heart. The Reserves. "The dividend has again not een earned, but we have taken year fi:°m the carry-*° the hope somehow that I may " , t havc to you that we shall at least no a to take as much next j ear. vcd good season we sh^l^„ nt YOU to look forward "to a d by •way of dividend; w ® m t US o^ ai reserves longer, I think, for that Our resetv have been sadly depleted, and ' we™ endeavour to build tnem P pan y During the last 10 years this company has distributed m . d . lv '^ L "^ e than bonuses to the shareholders vour £2,000,000 ana, at the same to directors have in no way te £ e et provide reserves sufficient h U nt every contingency, but . havi L en _ up internal reserves which hav ld _ abled us to face the period of wide depression uirough whic h ■ passing—l will no tsay w»n» equamm ity—but, at any rate, with a lessenc feeling of apprehension "The outstanding feature of ine l<):;2-33 wool-selling season was tn•rcmnrkaoiv general and sustained cte■••land bv reason of which it was pos- : -bio to dispose of a record v.-lume of ■production, in spite of the continuance i i world-wide depressed conditions. Yi..-ious schemes were : j.ggestcd as a ■■vri'cdy for the low prices prevailing, ■put' now that the tide has turned in : his respect we can loon back witn ■ atisfaction I" the fact that the clip -■•i< •ibsorbcd" without artificial intcrf< and that the markt. under the general rule of supply and demand, is now recovering, and wool prices are once again on a payable level." Profit and Loss. Summing up the result of operations •for the vear it was seen that, after providing for bad ana doubtful oebts, current expenses, depr' natioip debe - ture interest, and taxation ana foi a 1 contingencies it was possible to fore see the net profit for the year amounted to £85,438. After adding to this sum the balance brought forward last year—£ls6,464—and charging the 12 months' dividend on the preference shares—£2s,ooo—and tlie interim dividend paid last May £37 500 —there remained at the credit of general profit and loss account a balance of xi 7.0,402, which the directors recommended should be appropriated as follows: —£37,500 in payment a final dividend on the ordinary jjhares for the year ended June 30 last Of 2s 6'd a share, free of British income tax, making with the interim

dividend as above, 5 per cent, per annum, payable on 27th instant, and £IO,OOO to the staff provident fund, making £47,500 in all; and leaving £131,902 to be carried forward. The report and accounts were unanimously adopted and the retiring directors and auditors were re-elecied.