DIVIDEND 6 PER CENT.

Evening Post, Volume CXX, Issue 86, 8 October 1935, Page 12

DIVIDEND 6 PER CENT.

THE EXCHANGE PROBLEM

The first annual meeting of the Jones Metal Company was held yesterday. Mr. J. R. Kirk, M.8.E., chairman of directors, presided.

In moving the adoption of the report and balance-sheet, Mr. Kirk recalled the fact that the company had last year taken, over as a going concern a business established originally about thirty-five years ago. "At the commencement of our operations," he said "it was necessary for the directors to exercise a confidence, which results have justified, by spending to the utmost of the company's resources' in building up stocks to meet every reasonable demand, and today shareholders . can be congratulated upon having a warehouse indeed worthy of the name. Business was rightly restricted to operating only in non-fer-rous metals, all of which had, of course, to be imported from overseas. This involved heavy charges by way of exchange, but relying upon the declaration of the authorities that exchange would be stabilised, your directors ventured to buy extensively, and it may be said that (apart from goods in transit) a stock of an average value of several thousands of pounds is held from day to day within the walls of the company's premises. It is apparent that if exchange were suddenly to be extinguished to its full extent of 25 per cent., this stock would have to be written down by approximately one-fourth, with a lesser writing down, but still considerable loss, if the drop were gradual.

"I therefore want to stress the hope that if any change whatever regarding exchange is ever contemplated, the business community will have due notice of it, for otherwise the immediate potential losses by firms such as and larger than our own would be poignjintly regrettable and attributable directly to reliance upon' the words of the authorities controlling the matter. . . .

"The exchange question—the present popular plaything.of political parties— is just now a disturbing one to importing firms, and if these are to lose as a result of dealing with New Zealand's best customer in goods not producible in this country, then that loss, it would appear reasonable, should be made good to importers by those directly responsible for it. The difficulties of assessing compensation would be very great, so loss should be averted by adequate, notice of change." Business was showing a remarkable improvement, continued Mr. Kirk, justifying extensions on the company's part and the belief that the future of the company was assured. Moreover, confidence was returnnig throughout the country, and if only there were shown more generally a confidence which the times justified, many of New Zealand's troubles would disappear. The company had been well served. [by its manager (Mr. E. A. Allan) and the whole staff, of whose loyai and valued efforts the chairman spoke in highly complimentary terms. , Mr. Kirk pointed out that all assets [were material, all others having been i written. off (including the whole of I "preliminary expenses account"), while a sum of £400 had been placed to general reserve. As the markets in which the company operated were either stable or rising, the directors felt asIsurance in recommending a dividend to all shareholders, whether preferential or ordinary, of 6 per cent., and in carrying forward the balance left. I Colonel T. A. Hunter, C.8.E., in seconding the motion, spoke appreciatively of the administration and management of the business, and the report and balance-sheet were adopted. On the motion of Mr. G. Gore the retiring directors, Messrs. J. R. Kirk, W. Appleton, Walter McLay, and J. H. Owen, were re-elected, Mr. F. H. Bass F; RA; N- Z -' bein§ auditor. Mr. G. O. Siittpn is secretary.