N.Z. FARMERS' CO-OPERATIVE

Press, Volume LXXI, Issue 21436, 30 March 1935, Page 11

N.Z. FARMERS' CO-OPERATIVE

PREFERENCE SHARES IE ADJUSTMENT IN DIVIDEND BASIS The directors of the New Zealand . farmers' Co-operative Association ol . Canterbury, Ltd., have issued the l'olowing circular to shareholders and iccured deposit stockholders of the issociation: — In accordance v/ilh the intimation vhich was made at the last annual neeting of shareholders, the directors lave now formulated proposals under r vhich a proportion of up to one-half )f the ar.*..ial net profits of the assoriation may be applied to the payment >f dividends to shareholders, and the jalance of each year's profit applied to he reduction of the item in the bal-mce-sheet of accumulated losses. It will be remembered that at July .1, 1034, this item of losses stood at £301,298. and it was reduced by the let profit for the year of £27,574 to £273,724. The proposals are rs follows: — 1. That the first and the A and 13 j reference shareholders shall agree hat the cumulative preference diviiends in arrears for four year:;, five aid a half years, and eight years respectively to July 31, 1934, shall be written off. 2. That the first preference shareloklers shall agree to accept in full settlement of each future year's claims i cumulative dividend of 41 per cent., ivhieh may be increased it and when ;onditions permit. 3. That the A a :■.! V> preference shareholders a.'ir'-" 1" accept a cumuative dividend of 2 per cent., to be ii :reased by 2 per cent., non-cumulative, )r more if and when conditions peril it. 4. After the first, A. and 1.5 preference shareholders have received the ibovc dividends in their order of priority any balance available may be distributed to ordinary shareholders at he rate of 2 per cent., and after that my further balance may be distributed imongst the various classes of shareholders as may be determined from ime to lime. 5. The secured deposit stockholders o continue to be paid the present in - .crest rate of 4i per cent, per annum, lalf-yearlv, and to agree to (lie divilends suggested being paid. It will be remembered that when .he interest [rates on secured deposit stock were reduced to 41 per cent, a :ondition was made that no dividends je paid to shareholders while this rate "cmained. It is now considered that it s in the interests of the association's business that this restriction should X' removed and the secured deposit stockholders are asked to do this. A year ago conditions of business ; wore such as to encourage these pro- i joKal.s, but tjinee then prices of wool j nave fallen by nearly 50 per cent, and .he yield of wheat is reduced by nearly jne-third, so that account must be :aken of dull years and it may not be possible to carry out the whole of the uroposed programme immediately; however, the business is now developing so soundly as to justify a cm,'muicement of the payment of dividends to shareholders in their order jf priority, and to continue and extend these payments. it is hoped and expected that this will result in all classes of shareholders being encouraged to do larger business with the association in their own interests. Meetings for the formal sanction of these proposals will be held in due course, so that the payment of dividends may be confirmed by the next annual general meeting. The circular is signed by Mr Arnaud MeKellar, chairman, and Mr C. P. Agar, vice-chairman, and Mr William Machin, general manager, on behalf of the direclors. VICTORIA NYANZA SUGAR ovkupkoiuction and low I'K!('V:S In present mg the report of the Ihirteenlh annual general meeting of the Victoria Nyan/.a Sugar Company, Ltd., held in Melbourne, the chairman (Mr B. Y. Abel) said that the accounts presented covered a period of 14 j months, ended June 30, 1034. The loss for the period was £13.3(50 19s 3d, of which .£11,331 lis was provision for depreciation. In submitting a report on his recent visit to the company's plantations in Kenya, East Africa, Mr Abel said that the. vast, improvement in communication effected by the air mail had enabled the board to keep in touch more adequately with and control the undertaking, which is so remote from Melbourne. The over-production of sugar in Mast. Africa was entirely due to the two Uganda mills, which had increased their plantations and manufacture without the: slightest regard 1o local market requirements, or the possibility of obtaining a payable market elsewhere. The production of the Kenya mills had not exceeded the requirements of Kenya to any material extent. "Our manager advises that lie is now hopeful of making good his estimated production of between 5500 tons and 6000 tons for the season," he said. "Actual production to February 16, was 5169.4 tons, so we have already exceeded last season's produc'icn by 112.4 tons. As regards price, prophecy is dangerous, but the situation is not without hope. It is estimated that production for flic current year will be 250.000 tons less than last year, while there is no reason to suppose that there will be any decrease in consumption. The carry-over should show a corresponding reduction. At. an additional 'cost of only £358 to the plantation development account, the area under cane has been increased by more than 1500 acres."

GENERAL MOTORSHOLDEN'S BHi INCH EASE IN PROFITS Compared with an aggregate Joss of £869,000 in the two and a half years ended December 31, 1932, a profit of £402,330 recorded by General MotorsHolden's, Ltd., for the year ended December 31, 1934, reflects a remarkable recovery of business. This pront is an improvement of £208,170, compared with 1933, and from ' it preference shareholders have received three years' dividends to March 31 next. The year's profit is 12 times the annual preference charge, while the remainder, after deducting one year's charge, equals 38 per cent, on ordinary capital, upon which no dividend has ever been paid. The profits of the last two years, as set out in the following table, have been sufficient to eliminate the accumulated deficit as well as meet accrued preference dividends:— 1932. 1933. 1934. £ £ £ Profit . . _ 134,160 402.330 Loss .. .. 2,720 Pref. dividend

REDUCTION OV CAPITAL CANTERBURY FARMERS' ; CO-OPERATIVE j Reductions of ordinary and prefer- | enee share capital of the Canterbury j Farmers' Co-operative Association, Ltd., to an amount of £112,500, were dealt with at an extraordinary general meeting of shareholders of the company at Timaru yesterday afternoon. The chairman of directors (Mr F. R. Flatman) presided. During the morning and afternoon separate meetings of four classes of preference shareholders, A, B, C, and D, were held in camera to consider a proposal to wipe out their _ claims to any dividends on their holdings, either accrued or likely to accrue in future and to cancel all arrears on dividends ; en preference shares. ' ■ At the conclusion of the preference shareholders' meetings it was .announced that they had agreed to eliminate claims for dividends in all four classes by an average of 91 per cent. The discussions will be submitted to the Supreme Court for confirmation. The share capital of the company now stands at £337,500. which embraces 50,000 ordinary shares of £3 35s each, 1 "3,000 preference shares of £3 15s each, 10.000 "B" preference of £3 15s each, 5000 "C" preference of £3 15s each, and 10,000 "D" preference of £3 15s each. The resolution submitted to Ihc extraordinary general meeting proposed the reduction of the capital to a total of £225,000, divided as follows: 50,000 \ ordinary shares at £2 10s each, 15,000 preference at £2 10s each, 30,000 "B" pieference at £2 10s each, and 10,000 "D" preference at £2 10s each. The resolution further proposed that the reduction be affected by can- j celling paid-up share capital which is j lost or is unrepresented by available assets 1o the extent of £1 5s in respect of each of the ordinary and preference shares which has been issued and by reducing the nominal amount of such ordinary and preference shares and of all unissued ordinary and preference shares of the company, namely, 5655 unissued ordinary shares, and 2429 unissued "D" preference shares accordingly to £2 10s each, leaving a liability fin addition to the liability for all calls now outstanding and due upon the ordinary shares) upon all the issued ordinary shares (except upon 225 fully paid up) of £1 5s a share, as at present, and that such reduction be without prejudice to the company's right to sue for and recover all arrears of calls now outstanding and due in respect of the issued ord- j ir.rry shares or any of them. ; FRUIT MARKET CHKISTCHURCH j The following is the market report j for the week ending March 29: Vegetablas—Plentiful supplies of! vegetables are available and ruling I prices are as follows: Cauliflowers,! supplies very scarce, realising best : quality os to 9s Gd a dozen, others as : to 7s. Cabbages, best quality 5s to | 9s Id a dozen, others 2s to ss. Celery, I best quality realising up to 4s 4d a dozen, others Is to 2s Gd. Cucumbers, Gd to Is a box. Green peas, Is 9d, to j 2s 5d a peck, according to quality. Beans, plentiful supplies available, realising Id per lb. Carrots, Is Gd to 2s a sugar-bag. Garlic, 2d per lb. Swedes, local Is 9d to 2s a sugar-bag. Parsnips, 2s to 2s Gd a sugar-bag. Spinach, Is 9d to 2s Gd a dozen, according to quality. White turnips. Is to Is 8d a dozen. Root varieties, 9d to Is a dozen. Potatoes, 2s Gd to 3s a sugar-bag. Pumpkins id to Id per lb. Onions, 6s to 7s a sugar-bag. Sales slow. Fruit—Apples: Good supplies available and values are as follows—Cox's Orange, best quality up to 5s a case, others Gs to 7s; Jonathans. 3s to 5s a ease, according to quality; Delicious, 4s to 5s a case, according to quality; cooking apples. 3s Gd to os a case, according to quality. Good quality lines arc now becoming scarce and values have advanced considerably during the week, extra choice realising from 3s ' Pd to 5s 3d a case, others Is 3d to 3s, according io quality. Peaches: Supplies scarce, best quality realisms up to 4s Gd a case, others 3s to 4s. Strawberries: Supplies scarce, realising from 9d to Is Gd a punnet according to quality. Grapes: Extra choice Is to Is 3d per lb, others Cd io lid. Pears: 2s Gd to 3s Gd a half case, according to quality. Raspberries: Small quantities available, realising up to 114 d a punnet.

Imported fruit: Supplies of Jamaican oranges are available and are realising from 25s to 32s 6d a case, according to quality and counts. Shipments arriving from overseas— A shipment of Californian lemons, valencais. and grapefruit is expected ! early next week. 1 i DUNEDIN ) | "•RESSi TULEGKAM.) DUNEDIN, March 29. Jonathan apples are in heavy supply from both Nelson and Central Otago, and generally low values have been ruling. There is a better demand for Con's Orange, but cookers are in heavy supply. The demand for pears, both dessert and cooking, has been better lately. Peaches are practically finished for the season, and odd lines coming forward are commanding an excellent enquiry. The tomato market has been very erratic, with prices fluctuating according to the supplies coming forward each day. Consignments arc likely to ease oIT from now on. Jam melons and oranges came to hand during the week, and a further shipment is expected towards (he middle of next week, ex-mail steamer at Wellington. A shipment of Samoan bananas is due next week, transhipped from Auckland. There is a fair enquiry for quinces, which are in good supply from North Otago and local hothouses. AUSTRALIAN CITRUS | FRUITS I NEGOTIATIONS WITH N.Z. TO BE REOI'ENEI) < Received March 29, .10.30 p.m.) CANBERRA, March 29. In the House of Representatives today Mr W. J. Hutchinson (Victoria) asked the Minister for Commerce (Dr. Earle Page) whether he was aware that New Zealand was negotiating a trade treaty with Jamaica, and was also considering importing citrus fruits from British Honduras. Dr. Earle Page replied that personal negotiations would be recommenced with New Zealand immediately the House rose. AUSTRALIAN PRODUCE MELBOURNE, March 29. Wheat—3s 7?d, 3s sd. Flour—£9 2s 6d. Bran—£4 ss. Pollard—£4 15s. Oats—2s 4d. Barley (English)—2s 9d to 3s. Maize—3s lOd to 3s lid. Potatoes—£7 to £7 10s.