TALLOW SALES.

Evening Post, Volume CXIII, Issue 127, 2 June 1927, Page 11

TALLOW SALES.

(Received 2nd June, 2 p,m/J N. 2. FARMERS' FERTM_»BR Ca LTD. ' (By Telegraph.—Press Association.) "* AUCKLAND, L,t June. i T, heanmJal, meeting of the New 2ealaud Fanners' Fertiliser Co., Lid., was held this afternoon, when Mr. Rosa presided In moving the adoption of the report the chairman said: "Steady progress has been made during the mat year as in previous years, and the Sal results are quite satisfactory. It was very obvious some time ago that there was going to be a steady increase is the demand for fertilisers owing principally to the fact that their use presented th« surest and most rapid means of increasing production and profits from fanning operations. It is also ohvious that this movement is bound to continue. One of the most notable events in the year's working has been the excessive competition which has taken place in the last tew months, during which prices have been brought to such a level tha.t manufacturing costs are barely met, while interest on capital and distributing costs are entirely unprovided for. This position of affairs has arisen through the NewZealand Co-operative Dairy Company entering business as shareholders in a rival company, and setting out to eliminate the merchant from, the business. The farmer who takes a short-sighted view can sea nothing but gain in the present position. He is apt to consider that cheap fertilisers are the sole objective, but there is another side to the question. The costs by manufacture and distribution operations must be met, and if cheapness is obtained by unduly restricting provision for. these services, there must result very detrimental effects which will, I am convinced, be borne mainly by the farmer himself in the long run. There must be adequate provision for all the operations of the industry, otherwise it cannot provide the security and the return necessary to attract the capital for its dev«lopment which will assuredly be required if it is to continue to keep pace with the requirements of the farming industry." Turning to the balance-sheet, Mr. Ross said: "The company has been able to return a satisfactory profit, which allows the usual dividend of 7% per cent. The bank indebtedness would appear t<» be a rather higher figure, but this is really accounted for by reasons of much heavier stocks carried at both the Auckland and New Plymouth works, the value being over £27,000 in excess of last year's stocks. The demand during the last few months had been of such a heavy nature that the company was really fortunate in having ample supplies to meet the abnormal demand. The item sundry creditors, amounting to £44,860 10s 6d, represents goods purchased m the usual trading liabilities, and includes provision for income tax. This year the directors decided it was inadvisable to write down the rights and concessions account, as they considered, in view of the present competition, that it would be. better to carry forward the balance of profits to next year's accounts. Full provision had been inada for bad debts, and the item 'sundry debtors,' which stands at £37,265 2s Ud, may be taken as a really sound asset."