BREWING INDUSTRY

Evening Post, Volume CVI, Issue 11, 14 July 1928, Page 6

BREWING INDUSTRY

SALES FALLEN OFF COJIIXG LEGISLATION Mr. A. S. Bankarl presided at llic fifth annual general meeting of Kcw Zealand Biewciies, Ltd., yesterday. Thero was a good attendance of shareholders. In moving the adoption of the report and balance-sheet, Mr. Bankart said the economic, conditions which prevailed in the latter end of 1926 and early in 1927 were not allayed duiing the period, the figures for which were under review. The markets, for the Dominion's primary products continued disluibed, with reverse reactions on the prosperity of the Dominion. Unfortunately, iho numbers of able-bodied men who were unable to obtain employment remained at a high figure, and the company, in common with other industrial concerns, had suffered by the. resulting condition of affairs. Sales had fallen in a larger degree than during the previous year, but it was satisfactory to be able to lecord that the company. retained the same, ratio of sales to the Dominion's consumption as in former yeaTS. After paying interest on the debenture issue, and malting full allowance for depreciation on buildings, plant, machinery, and providing for , all' charges for the administration of the company, thero was a gross profit of £397,547 19s 2d, of which no less a sum than £47G,21G 5s lid haa been paid to the New Zealand Government us beer duty, leaving a net profit to the company of £121,331 13s 3d. The increase in the net profit was due to the returns for interest on our investments, which had steadily increased as the result of the tiansfers mado annu.'illy_ to the reserve fund, and also to an improved return on some superfluous properties which have been adapted and become revenuo earning. To the amount of the net profit mentioned, there was to be added the amount, carried forward from the previous year, £18,839 5s sd, making a sum of £140,170 18s 8d available for appropri-, ation. From this amount, an interim dividend of 5 per cent., which required £25,000, was paid in Soptcmbor last, so that there remained a balance of £115,170 18s 8d to be dealt -with. It would be within the memory of shareholders that the first roport and statement of accounts 33 at 31sfc March, 1924, -was for a period of Bine worths only,* and on that occasion, after writing off the wholo of the preliminary expenses attendant upon the formation of the company, the, sum of £25,000 was placed to the reserve fund, while on subsequent occasions the directors were able to pla.ee the sum of £50,000 to this fund, thus bringing tho total amount to its credit now to £175,000. In view, of tho return from'"the investments of. this'fund and to mark, the fifth year of the successful trading by Iho company, the directors recommended that tho sum,of £75,000 bo allocated this year to reserve, which would bring the Reserve Fund up to £250,000,' and thereby to that extent providing for the goodwill item of £50Q,0001 which was still retained as an asscfc, in the balance-sheet. ••' '< < * The directors proposed a further dividend of 5 per cent, on the share capital of the company, making 10 per cent, for the year, absorbing £25,000, and to carry forward the balance of £15,170 18s 8d to tho new account. The balance-sheet figures disclosed a movement in land and buildings, for which the alterations in the Wellington premises, increased storage, ' lion for barky and malt at DunedinJ the erection of a suitable.depot on freehold laud at Wellington, and tho, acquisition of malt house's at Pietim wore accountable. Plant and machinery stood at a lower figure than formerly, in pursuance of tho policy of providing adequate pro-vision for depreciation. Stocks i on hand and advances against barley and hops were below last year's figures,' and varied from year to. year in ac* cordancc with seasons and the deliveries to stores. Office, furniture' liad been written down to tho nominal figure of £200. Book debts weta lower, reflecting decreased trade of tho past jear. Investments increased to £425,645 16s 7d. An opportunity arose during tho year of further consolidating-tho posi; tion in Canterbury by acquisition of certain secuiitics, which the' board availed itself of. Theso additional securities were not gilt-edged, but steps had been taken whereby tho advances represented by1 these' securities weie being steadily reduced. Cash in hand and with bankers was larger than last year. On the other side of tho account, the figures showed but littlo variation, except a,s rogards Reserve Fund, which, if directors' Tocommendations were approved, would stand at £250,000. FUTURE LEGISLATION. "You will remember," the chairman continued, "that last year I mentioned tho intention of the Prime Minister to introduce a Licensing Bill to Parliament. This materialised last Novemher, with the result that there was a disagreement between the two Houses, resulting in the Sill being dropped. The position, however, is not improved; sufficient evidence is forthcoming to show that thero is apparently a sufficient number of members of the House of Representatives pledged to the Prohibition organisation to deny the licensed trade facilities for tho improvement cf their hotel properties, by refusing an increased tenure. Tho Primo Minister has intimated to that organisation his intention of re-introducing a Licensing Bill in this last session of the present Parliament. What that Bill will contain is an unknown quantity, but there is a considerable danger of the will of the large majority of the electors of this Dominion being subordinated to

the demands of an organised ininority, who are in possession of pledges from a sufficient number of members of the House, which may enable them to forca their views on an unwilling and reluctant House. Sir. Edmonds, the general secretary of the l^ew Zealand AHiaiice, is-reported in the 'Sydney Morning Herald' of 26th June, 1928, as saying: 'We have captured Parliament, and we have a "DryI,' Parliament, but a "Wet" Prime Minister.' ' Tho position is unsatisfactory, and' gives no security of tenure to those engaged in tho licensed trado of this Dominion, and calls foT tho most careful and prudent conservation of the funds of this company. ', . "In addition to a Licensing Bill, coincident with the General Election, the licensed trade will be called upon to defend itself from the attacks of the Prohibition Party at the' Dominion option poll, which will probably be taken in November. Electors will be called upon to decide whether 'Continuance of Licenses' shall remain or. not, While the experience of other countries whien have tried tho experiment of Prohibition are against its introduction in this country, yet shareholders should not be satisfied only to look on at the organised attack which will be made by the opponents to License, but use their individual efforts to averts decision which would, not only militate against this company's large financial interests, but would, I am convinced, prove disastrous to the well-being ■of the people of this Dominion. '-- .■ "I have now the pleasure to formally move that the report and balance-sheet bo adopted." Mr. Thomas Maddenj managing director, seconded, and the motion was carried. Messrs. R. W. M.-Greenslade^ Alfred Louisson, and Ilugh T. Spcighs'were reelected directors unopposed. ' Messrs. Watkius, Hull, Hunt, and Wheeler wore reappointed auditors. A notice of motion to increase the number of directors by two to specifically represent shareholders' interests' was receive^, but lapsed for want of' a mover. A vote of thanks to the directors and staff was carried with acclamation w conclusion;of thd business.