NEW ZEALAND DRUG COMPANY.

Evening Star, Issue 8775, 16 March 1892, Page 2

NEW ZEALAND DRUG COMPANY.

The thirteenth annual meeting of Kempthorne, Prosser, and Oo.’r Hew Zealand Drug Company, Limited, was held this afternoon. There were about twenty-five shareholders present, Mr B, Sievwrlght, chairman of directors, presiding. SEFOBT AND BALANCE SHEET. The Chairman said: I have again the pleasure of submitting to you our balance-sheet and report for the year ended 31st January, 1892, The report having been in the hands cf shareholders for some time, I presume you will not consider it necessary to read it over. I will therefore new refer to the figures as presented, taking the liabilities first In the paid-up capital and debentures there is no change, tbn former standing at L 87.601 and the latter at L 1&.100; bills payable, L 6.711 Ss 2d, as against L8,89113i 4d in 1891; and open liabilities are L 29.255 Qs Id, as against L 26,182 6s 1M at former period. We owed our bankers L4,fi47 Is 4d. being L 3,178 Is 4d less than at former hahnee. Dividends, L7I 2s ltd.—This is an amount for which warrants bad not been presented at date of balancing. Staff fund aeeouftfe is increased by 5 per cent. Interest allowed on it for the current year, and this now stands at L 1.899 18s 4i. Reserve on customers’ account stands at L 5,991125, and which, I think, will prove sufficient to. cover any losa likely to accrue os the collection of debts duo by customers- As over the whole range of our business we have still a large amount uncovered, we have thought it prudent to increase the fire insurance fund by LX,fi9o,. making it L 2,000. Our risks are, of course, scattered over the whole colony, and a considerable portion of the stock would not burn. We therefore now think ourselves fairly protected, and with the provisions we are now making; have endeavored to make preparation for loss should It occur. The Christchurch building being a very old one, it will shortly be necessary to take it down, and as land also in Christchurch appears to rather decrease than increase in value, we have written LI, 100 off this aseet to as to bring it down to about market value. On the assets side of thesheet the stock is L108,0322a lid—some L 2.500. in excess of last year. Warehouses, laud, plant, etc., after writing down, amount to L 32.439 8s Bd, as against L38.66912s fid last year, being a redaction of L 1.230 3s KM. Book debts and open accounts that is, amounts owing by our customers on tbs Slefe January, when the books were made up, L 24.803 2a Sd—are smaller than usual, being somo L 3.000 less than last year. Although they stand as open debts on the 31st January, ou the Ist of tbe following month (February) a large proportion would be drawn for on usual credit terms, and these outstandings will of course always appear in this form at our balancing periods. New taking the profit and loss account, salaries, charges, travelling expenses, interest, discount. Insurer ee, rent, and advertising, tota'tf L 24.631 9a lid, as against L 23.705 6s 10d, shows an increase of L 926 3s Id. Bad debts, L 1,232 7s 2d, are smaller than for many years past; still we fcbould like to see these materially decreased, and to this end we use all the precautions wc can. It is, however, impossible to steer clear of bad debts when business is done on credit terms. The depreciation on Christchurch land, and building I have previously referred to, 'With reference to onr linseed oil works, I regret to state that we have not go for found these profitable. We have written off LI,OOO from plant and building for depreciation. We hoped when we went into this that It would have proved a profitable industry, and, if we could get seed locally grown, and for which our soil and olhnate are suitable—guaranteeing the growers a market for the seed at a price which should pay them well—ve have no doubt about it. Tbls being so, we hoped to have got all the. seed required grown In the colony. The farmers, it appears, are very conservative. We have failed to induce them to try to any extent this, form of crop. If, therefore, we desire to be independent, we mast either grow the thing oarselves or import it from abroad. We have plant equal to produce all the linseed oil required in the colony, and of a quality equal to anything that can be made, and have readily sold all wo have hitherto produced. There is, however, another difficulty with the oil cake. This artiole has as yet been little used few winter feeding for cattle in this colony, but I have no doubt that as the dairying industry advances, settlers will discover that It will pay them well to use oil cake as in the Old Country, where it is need by all stockholders. The linseed oil and cake will yet become a large industry in this country, although hitherto our experience is disappointing. I have gone folly into this matter so ; that shareholders might understand the position. Well, gentlemen, after providing for all which we consider necessary, we have a net profit of L8.24218a 6d, which I hope yon will consider a satisfactory outcome of onr year’s work. This sum we recommend should be applied in paying a dividend of 7i per cent, per annum, in carrying L 1,600 to fire reserve fond, and add the balance to the amount we carried forward last year, making tbe total to carry forward L12.66513s Id. I shall be happy to give you any farther information you may desire, and now beg to move the adoption of tbe report snd balance-sheet

‘ The Hob. W. D. Etbwabt, in seconding the motion, said that the operations of the company for the pastyear had been on the whole satisfactory. He confessed that under the circumstances he thonght that a dividend of 7 instead I of 7J per cent, wonld have been safer, but be presumed that the directors were satisfied that the larger dividend eonld be paid. The staff fund aeflount; which stood at L 1,899, and the fire Insurance fund (L 2.000) were satisfactory . funds to have in connection with the company; and be was glad to notice that liberal provision had been made for writing off for depreciation. On the whole, as he had said, the balance-sheet was of a very satisfactory character, and really was not open to comment. In answer to Mr Qniok, Mr Keufthobne 'said that the amount to debit of the linseed oil plant was L 3.000. A short discussion took place as to the failure of the company to procure a locally-grown supply of linseed. .Mr H. W. Mitchell thonght that the farmers were very foolish to neglect the raising of a crop so suitable to the climate.—The Chairman observed that the company had offered daps as prizes, and were prepared to give 6s a bushel for the linseed.— Mr J. Obxen thonght it unlikely that those present should be able to instruct farmers as to what was a suitable crop for them to grow. They might fairly leave that attention until the farmers themselves found that tho growing of linseed wonld yield, say. 7per cent, and then they wonld go in for lb—Mr B. HaiUNSTEirf was not so sure that the farmers did always know what would pay them. He was the first to erect a flour-mill in the Wakatipn district, where the people had • been used to growing oats and potatoes, and, though ha guaranteed 7s and 8s a bushel for two years, he bad the greatest difficulty in keeping the mill going. Farmers were inclined to be conservative. One objection he beard that they had to linseed was that it was a crop which exhausted the ground, but that was not so when it was grown for seed, as tho crop for that purpose needed not to be so heavy as when they were growing for flax.—Ur Kempthobne produced a sample of linseed, grown on the company’s land at Burnside, which was, he said, a« good a sample as any he had seen. The motion was put and carried nnanimoosly.

elections. a , The retiring directors, Mr B. HaUensteinand Dr F. Ogston, were re-elected without opposition, and both returned thanks.

COMPLIMENTARY. A vote of thanks to the directors anl offioera proposed by the Hon. D. Stewabt . and seconded by Mr J. Green. was carried with acclamation, and response was made y Chairman and Mr Kempihobne.