DOMINION’S OVERSEAS TRADE

Press, Volume LXXII, Issue 21792, 26 May 1936, Page 13

DOMINION’S OVERSEAS TRADE

favourable showing for first four MONTHS

The measure of the recovery in the overseas trade of New Zealand for the first four months of the current financial year is indicated in statistics to hand yesterday. Compared with the corresponding period of last year, exports (£24,934,000) are £ 5,378,000 higher this year. The balance of trade has, too, been veil maintained, the surplus of exports over imports amounting to £11,754,000, compared with £8,219,000 for the four-monthly period of last year. This year’s exports are also greater by £ 1,441,000 than those for the corresponding four months of 1934. In 1934, however, the balance of trade was more favourable at £ 13,808,000. The monthly figures are also significant. In April of this year New Zealand exported produce to the value of £6,136.000, against only £3,896,000 in April, 1935, and £5,408,000 in April, 1934. The excess of exports over imports last month was £ 1,520,000 more than in April, 1935. The week on the Christchurch Stock Exchange opened strongly yesterday. Advices from Sydney state that the investment market in Australia reacted sharply to the pending tariff revision and made for a strong market in the shares of companies likely to be most affected by the increased duties and import restrictions.

£73,000 DEAL TIMARU BREWERY SOLD SHAREHOLDERS APPROVE SALE buyer, n.z. breweries, ltd. {THE PRESS Special Service.) TIMARU, May 25. Shareholders of the Timaru Brewery Company. Ltd., at an extraordinary meeting held to-day. approved of the agreement provisionally made by the directors on April 29. to sell the business to the New Zealand Breweries, Ltd-, for approximately £73.000. The chairman of directors, Mr E. G. Kerr, presided over a large attendance. It was stated that thG figure mentioned would represent the return to shareholders, alter all the company’s liabilities had been discharged. The first payment of lie 6d on 10s shares was expected to be available on July I. the total value of the shares, as a remit of the sale, being estimated at 15s The chairman explained that for teme lime the company’s most serious difficulty had been that of fulfilling orders for ale and stout. The reason lor that dh.lculty had been that the plant could not cope with the output new required. That had led the directors to consider means of overcoming the hurdle, and it was decided to make eno’’ir' s to secure additional capital l;,r Ue erection of a new brewery c nipped with modem machinery, the additional crr-tal being estimated to b? approximately £IOO,OOO. Shareho’deis would appreciate that the company was faced with two main difficulties. If it decided to carry on, it would have to bui’d a new brewery cooling from £30.000 to £35,000, and then in order to guarantee the sale of its product, to raise large sums to purchase hotels. Last summer the company was unable to supply the demand. The plant was run at absolute capacity and gave trouble in breakdowns. He mentioned these facts to show that the question of the erection of a new brewery was imminent and serious.

RECORD YEAR DOMINION FERTILISER COMPANY, LTD. ANNUAL MEETING [THE PRESS Special Service.] DUNEDIN, May 25. Both in production and in sales the year just past was a record for the company, and likewise the profit earned was the largest in the history of the company, stated the chairman of directors, Mr Robert G. Hudson, at the annual meeting at Ravensbourne this afternoon of the shareholders of '.he Dominion Fertiliser Company, Ltd klr Hudson said that after making full provision for depreciation and income lax and paying all charges the profit for the year amounted to £17,422 6si 9d. or an increase for the year of £ 1496 18s lOd. .. Mr Hudson said that they would note from the report that subsequent to the closing of last year’s accounts the directors made further provision of depreciation to the extent of £1485 8s 7d. This sum was allowed by the Commissioner of Taxes, in addition to the provision of £7430 8s made in last year’s accounts, and resulted in a saving of income tax amounting to £347 0s sd. For the vear under review the sum of £B7IB 11s had been allowed by way of depreciation, and the total sum provided by way of depreciation during the five years in which the company’s plant had been onerat ; ng now amounted to £40,795 16s lid. Dining the same reriod the sum of approximately £19,500 had been anplied in reduction of preliminary expen c es and the establishment accounts. The balance of the establishment account, amounting to £IO.OOO, was new the only unsubstantial item in the balance-sheet. The balance-sheet of the company showed a strong liquid position, said Mr Hudson. The accounts under review showed that investments had increased during the year by the sum of £51,840, and likewise raw and manufactured stocks ha'i increased by £11,491. The liquid resources of the company enabled the directors during the year to make very substantial purchases at prices distinctly favourable to the company. During the year more than 27.590 tons of raw materials were received over the Ravensbourne wharf and substanUal quantises shipped outwards. It might be of interest to mention that the average cost last year of receiving rock phosphate into the works was under lOd a ton. This figure would prove the advantage which the company had in the location of its factory with direct access to deen water berthage. The annual report was adopted, and the payment of a dividend of per cent, on all shares was approved. Messrs Hudson (Dunedin) and R. Sinclair (Waimate) were re-elected directors.

Brewery to Carry On The chairman said he understood that it was the intenion of the purchasers to carry on the brewery in its entirety and to retain the present staff The purchasers would, he understood. enlarge the present plant with plant they already had from their various breweries. The directors of the *nmaru Brewery had every confidence in commending to shareholders their acceptance of the New Zealand Breweries’ offer. They had most carefully considered eyery angle of the company’s future, and were satisfied that the deal was in the nest interests of shareholders. The directors were satisfied. further, that the offer was extremely fair. He wanted it to be clearly understood and remembered that in the course of negotiations with the purchasers, the directors had been guided by one consideration —the ultimate interests of shareholders. A motion asking shareholders to approve of the agreement entered into by the directors for the sale of the undertaking, assets, business, and goodwill of the company, was submitted by the chairman and seconded by Mr H. W Hall. In supporting the motion, Mr John Hole considered that the proposal placed before them by the directors was sound. The bottling plant was one of the finest and most up-to-date in New Zealand, the only trouble being that the company could not satisfy the demands of clients for its products. Purchasers’ Third Offer Mr Walter Baxter referred to the high regard in which the products of the Timaru Brewery were held throughout the Dominion. It must be realised, however, that competition was keen and that it was going to be j eerier. That was the third offer that Lew Zealand Breweries had made, ; d jn his opinion the shareholders t ouid b • foolish if they did not accept ; The company had built up its busi- ** fs io peak, and once it had reached that prak it was time to take heed. Mr B. R, Macdonald said that, while fur sentimental reasons, the sale of the brewery could not be favoured, there was no doubt that the proposal placed before ih rn by the directors was ' und. He considered that the fine • o“k of the general manager iMr A. P. Greenfield) should be recognised. Mr Mcrvyn Raymond said that the shareholders had been informed that ihe first payment on shares would be 11s 6d. and that the total amount would probably be 15s. When would a further payment be made? Return of 15a a Share The chairman explained that the second payment would be made as soon as a reasonable amount came to hand from the collection cf advances and trading accounts. The directors had •very reason to believe that the company's book debts were perfectly safe ted that there would be no difficulty securing a return of approximately KSc a share. Ihe motion confirming the sale was tended unanimously. "I am gratified you have so convincingly endorsed our decision.” said pe chairman, who expressed his perfonal feeling that the sale was timely. pe had Wei somewhat disturbed at •hat effect the combination of big in■RMto might have had on the company, lit be desired to make it clear that tee New Zealand Breweries had always

been most friendly. They had never done what they might easily have done —endeavoured to intimidate by threatening to cut the price of beer, an action which the company could not have stood up against. They had. he felt been both generous and courteous. The chairman expressed his personal gratitude for the co-operation and kind-, ness he had always received from Mr Greenfield, whose enthusiasm had been both a great help and an inspiration A recommendation by the meeting to the directors was that the services of the general manager and staff be favourably considered, this being approved. “I would not like the meeting to conclude without conveying my own thanks and the thanks of the whole staff, the directors, and shareholders for making our positions as pleasant as they have been for seme years,” said Mr Greenfield. There was no doubt that under its new employers the staff would be retained in its entirety, l while the brewery would not lose its identity.