NEW ZEALAND DRUG COMPANY.

Evening Star, Issue 7471, 15 March 1888, Page 3

NEW ZEALAND DRUG COMPANY.

Tho annual general meeting of shareholders in Kempthorue, Prosser, and Co.’s Now Zealand Drug Company (Limited) was held this after coon in the company’s offices, Stafford street. About twenty shareholders were present, tho chair being taken by Mr B. Sievwright, chairman of directors.

The annual report (already published) and balance-sheet were taken as read. Tho Chairman said: Gentlemen, I may say that in laying before you the report and balancesheet for the past year tho directors feel that, all things considered, the returns are satisfactory. Ido not propose to refer again to the so-called depression (which has become a permanent institution a tangible tiling in this colony), but, notwithstanding present drawbacks, I believe that by pemstent application and continuous care the company will soon enter better times. If you will bo good enough to refer the balancesheet under “ liabilities ” you will find that capital still stands at 1.83,571. la last year's remirks 1 explained that the board resolved to issue 1.25,000 worth of 5 per cent, debentures, and that shortly after closing our hooks for the year wo receive I advice from London of the salo of some L 5,000 worth; and since that time we have sold another lot of L2 410, making in all L 7,410 disposed of to date; and, as intimated in tho reference to tliem in the report, we shall continue to make further sales as opportunity offers. 'While on this subject, I should wisli to draw your attention to these seemities as an investment for surplus moneys. You will have a first class security if you invest in these. Bills payable aid open liabilities reach L 1,451 more than last year. The banking account shows an overdraft of L 351, as against 1,3,457 at last balance. The staff fund shows an increase of L 43 interest accumulation. Tho reserve for customers’ indebtedness shows that we havo provided, as at last period, 5 per cent, on the total. So much for the liabilities. On the assets side you will see that tho stock value is 1.1)2,011 7s 7d, being L 4,352 more than last year; and beta also we have made further provision for depreciation by the sum of LBOO. We havo also provided for falling values and depreciation on warehouse premises, fixtures, and plant, a sum of L 1,454, equal to 5 per cent., this raising the depreciation account to L4,lßfi, No doubt you will approve of this course, as should all wise mc.i in these times who arc able to aud dare face the position. I congratulate you that we are both able to and dare. The profit and loss account shows the expenditure to bo less than last year, and the bad debts smaller ; but, on the other hand, the gross profits are somewhat less, although the total of sales has actually increased. The explanation is, no douht, tho increased competition. I now beg to move the adoption of the report aud balance-sheet, and shall ho happy to give any further information shareholders may wish for. Mr Hauuy seconded the motion.

The Chairman said that if any further information was desired he would be glad to give it.

Mr W. D. Stewart said that he saw the book debts amounted to a large sum.

The Chairman remarked that of course a good many of these book debts were represented by bills. Mr Goldsmith asked whether it would not bo advisable to advertise these debentures in London. Ho knew that some of his friends in London were getting only 3 or 3) per cent, for their money.

The Chairman said that Mr Goldsmith’s suggestion was a very good one, but they could not expect to dispose of many debentures to friends.

Mr R. Wilson thought that the low price of money at Homo would induce people to take up those debentures. Mr Wilson added that he thought, considering the good balance-sheet, that the shareholders could have had a little arger dividend. The Chairman said that it would have been quite easy to have paid a 10 per cent, dividend, but the directors preferro i not to trench on the balance brought forward from last year. Mr HaIi.K'STEIN quite supported the directors in not paying a higher dividend. The balance-sheet was very satisfactory, especially considering the time" l , and the more so as he knew that in order to cat out and compete with Home houses the company sold at much lower prices than formerly.

Mr W, D. Stewart asked what was tho amount of the reseivo fund.

The Chairman replied that the company’s reserve fund was tho amount carried forward. This year it was L 10,250. Mr W. D. Stewart was very much satisfied with tho report, and thought it would be unwise for a company to pay a large dividend unless it was in an undoubted position. It would have been better for many companies to have been content to pay moderate dividends. Not that this company was not in a« undoubted position. Tho Chairman pointed out that the company had during the last year paid tho Government Lfifil in tiie shape of property tax and license foes.

The motion for the adoption of the report and balance-sheet was put and carried unanimously. The retiring directors—Messrs B. Sievwrigbt and J, Scoular—were re-elected without opposition, and briefly returned thanks lor the honor conferred in reinstating them in that responsible position. The following gentlemen were unanimously re-elected as auditors;—R. K. Garlick. Auckland ; A. Garrick, Christchurch ; C. P, Powles, Wellington ; AY. Brown, Dunedin. Mr Goldsmith proposed a vote of thanks to the directors and staff for tho manner in which they had carried out their duties during the past year.

Mr R. AVi lson seconded the motion, and in doing so said that thoj officers of the company deserve great credit for the way in which they had conducted tho operations of tho company. This company was ono in which ho had taken tho deepest interest, and he was glad to see that it progressed so satisfactorily. Ho had said that he thought they might have had a larger dividend, but in making that remark he was only feeling the pulse of the shareholders. His opinion was that it was much better to carry forward a substantial sum so as to build up the reserve fund. The motion was carried ncm. cod, Mr Sievwright returned thanks on behalf of the directors, and Mr Kempthorne briefly acknowledged the compliment as representing the staff