RECORD TURNOVER

Evening Star, Issue 23421, 11 November 1939, Page 15

RECORD TURNOVER

0.1.0. LTD. FIFTY-FIFTH ANNUAL MEETING The fifty-fifth .yearly report aiui balance sheet of the Drapery and General Importing Company of New Zealand Ltd., submitted to shareholders at the animal meeting yesterday afternoon, and reviewing the activities of the company to August 20 last, stated that or- ' dinary shareholders were paid the cns--1 ternary discount of 2J per cent, on ’ their purchases for the first six months of the year in May last and would receive it for the second six months of the year on and after October 11. The net profits for the year, after making full provision for land and income tax. social security tax, bad and doubtful debts, and depreciation of buildings, fixtures, and plant, wore £.‘18.098 Ids Bd, which, with £45,576 15s 5d brought forward front last year, showed a total _ to the credit of profit and loss appropriation account of £83,675 11s lid. The chairman of directors (Mr P. L. Halsted), who presided, moved the adoption of the annual report and balance sheet, his remarks being published last evening. It was recommended on behalf of the directors, and confirmed, the payment of the dividends. On May 1 last an interim dividend was paid on preference shares at the rate of 5 per cent, per annum for the half-year ended February 20, which absorbed £6,250 and left £77,425 lls lid available. and this sum it was recommended should be appropriated as follows: — To payment of dividend at tbe rate of 5 per cent, per annum on preference shares for half-year ending August 20, 1939, £6,250; to payment of dividend at the rate of 6 per cent, per annum on ordinary shares for the year ending August 20, 1939, £14.588’ 19s sd; to addition to reserve (which would then stand at £60,000). £9,966 Is 6d. _ To allocation for contribution to patriotic funds, at the discretion of the directors, £SOO. To balance to be carried forward. £46,120 lls. Total. £77.425 lls lid. "HIGHLY SATISFACTORY.” Mr A. ibbotson, who seconded the adoption of the annual report and balance sheet, said that from the point of view of shareholders the company’s activities had been highly satisfactory, for besides the payment of a dividend of 5 per cent, on preference shares and 6 per cent, on ordinary shares, a sum had been added to the general reserves. The directors, he said, were to be congratulated on setting aside £SOO for the patriotic fund. The companywas progressive, the directors were business men, and the staff was an excellent one. In point of fact, the speaker did not know a firm that was better served in respect of staffing. Mr M. S. Myers, who also spoke to the motion, said that the company had set yet another record in respect of turnover In business whilst success must be sought in the rendering of improved service, and should manifest itself, among other things, in advancement of methods and processes, in bettering the conditions of those employed ing their faculties and promoting their happiness, and in the arrangement of right relations with customers and with the community at large, the earning of profit was nevertheless important, he said. It was indeed an essential condition of success because the continued absence of profit meant failure, though he did not suggest that profits alone connoted success in any undertaking. DEFINITION OF PROFIT. ‘‘To you as shareholders and to the company’s staff it is to an extent disappointing that the outcome of a greater volume of business, involving as it does the taking of greater trade risks, hqs not resulted, in the showing of a larger net profit.” commented Mr Myers. ” This is the result of the higher taxation now chargeable against income. There is much popular misconception as to what the term * profit ’ really means. It seems trite to stress that gross profit—the difference between cost and selling price—is not net profit. The best and simplest way in which I can explain the difference is to do so under the heading: ‘ The Customer’s ,£] and Where it Goes.’ On the basis of the results as shown, the average pound spent by the company’s customers during the past vea> - was apportioned as follows ; “ Suppliers got 12s lOd: salaries and wages took 3s 9d; income tax. land tax, and social security tax. Is 4d; general trading expenses. Is Id: rates. 2d; shareholders’ dividend. 7d; retained in business for development. 3d Total. I 20s.

“ From these figures it becomes apparent, therefore, that the staff as a whole received six and a-half times as much as the amount distributed to the shareholders, so that the annual interest of the former in the company’s success is six and a-half times greater than that of the shareholders’ interest as measured by the dividend paid. Reverting again to this anourtionment of the customer’s £. it will he seen that of the difference between net cost and selling price the staff and the State respectively are the two most interested parties. ft therefore follows that if gross margins diminish, ns is the tendency under wartime State control of prices, the interests of the staffs of a business and of the Taxation Department of the State are likely to he very largelv concerned in and affected hv any diseonilibrimn thus brought about. I again stress that as the result of analysing in this way what becomes of the customer’s £. vonr return bv way of dividend has represented 7cl; in short, that in rendering a public service in the distribution of goods the return to you reoresents hut a verv small .part Indeed of the cost of goods to the ultimate consumer ” DIRECTOR AND AUDITORS REAPPOINTED. Mr A r-Vls the retiring director, was re-elected. The auditors of the comnanv—Messrs .1 R M‘l ones and Sons ( Dunedin), Mr .1 W K Lawrence < Christchurch t Mr E R. Dymock (Wellington'i Mr T Ballingall (Wanganui), and Messrs Henry R. Frost and Sons fLondon) were re-elected. On the motion of Mi Robert Gilkison. a motion of thanks for their services was accorded the staffs of the four offices of the company.

FRUIT MARKETS FAIRLY BUSY

APPLES STILL IN DEMAND PRICES EASIER FOR QUALITY VEGETABLES Bray Brothers report:—The last week in October saw the end of the season, so far as the spring sowing of wheat is concerned, and a period of warm weather is now needed. The early planted crops are, however, coming away fairly well. Small lots of milling wheat continue to appear on the market, and where the quality is satisfactory they are being secured by millers. There cannot, however, now be much milling quality to come on the market. The fowl wheat market remains, quiet, with stocks sufficient to meet the demand. The wholesale price of best quality ex store, Dunedin, is 5s 9d per bushel, sacks extra, with 6s 3d obtainable for small lots ex the store. Wholesale prices are as follows: Flour; 200’s, £l3 15s 6d; 100’s, £l4 2s 6d; 60’s, £l4 17s Cel; 25’s, £ls 7s 6d. Bran, £5 5s per ton. Pollard, £6 15s per ton. Oatmeal: 2001 b sacks, £23 10s per ton; 25’s, £25 10s per ton. Most of the merchants’ stocks of oats have been sold and few lots aro on offer from the country. The shipping value of A Cartons is 3s 6d f.0.b.5.i., with B’s at 3s 3d. Heavy Cartons are saleable to millers, the quotation in the country, sacks extra, country sidings, being 2s Bd. Ordinary A Cartons are worth, in the country, 2s 7d, and B’s 2s 4d; Chaff meets a limited demand only. Local stocks are on the small side, and few consignments are coming in, farmers being too busy with spring work to cut chaff. Best quality oaten sheaf is quoted at £4 15s per ton, sacks extra, ex truck, and for small lots £5 5s is being realised. High prices continue to rule for potatoes. Old tubers are practically unprocurable, and the market is mainly relying on new potatoes from Puke--kohe, and locally-grown. A considerable increase in supplies of both North Island and locally-grown tubers should ' take place in the next week or two. Pukekohe potatoes aro worth round about 4Jd a lb. Supplies aro also arriving from the Hutt.

The retail demand for seeds is steady, and a fair quantity is being railed to the country to meet orders. Business in the wholesale market is limited to sales of small parcels, but further inquiries have been received from the Government for deliveries to the North Island FRUIT AND VEGETABLES. The last shipment of Australian oranges has now passed into retailers’ hands. The small shipment of bananas did not fill requirements, and another shipment is expected about the end of the month. The last consignments of Californian grapes arrived in good order and condition and were readily disposed of to retailers. Small consignments oi pineapples continue to arrive from Australia, and quality fruit is bringing high prices. Some of the brands have been of inferior grade. Canterbury-grown hothouse tomatoes are being received daily, and the market is inclined to be unsteady. Gooseberries are now appearing on the market. They should increase in size as the season advances. Small lots of apples, es cool store, are reaching the market. The stores are getting short of supplies, and there will probably be a distinct shortage before the end of the year. Cauliflowers are bringing good prices Cabbages are plentiful. Small lots of green peas are arriving from the Nelson and Waimate districts. New potatoes are coming forward from the Peninsula and Sawyers Bay. The recent rains have helped'the crops, tuul supplies should increase from now onwards. Lettuces are in over-supply. The demand in Christchurch toi asparagus has firmed local prices Rhubarb is in heavy supply. Reports from Central Otago state that the nights have been cold, and that cold winds have been experienced in the daytime. As a consequence, it appears that the fruit season will be from two to three weeks later than last year. Up to tho present, however, little damage has been done by frosts. The critical period for orchardists in Central Otago will occur from now on over the next few weeks. The shortage of sugar is causing fruit-growers some concern, as. if it continues, it will restrict the demand for fruit for jam-making. Representations have been made to the Government by growers’ organisations on this prospective difficulty Wholesale prices are as follows; Pineapples. 25s to fids a case Grapes, 30s to 40s a case. Apples.—Stunners. 12s (id to 15s a case; Delicious. 17s to 18s Cd. Pears: Winter Coles, 12s to 15s a , J-case ; 9s to 10s a l-casc. i Rhubarb (loose). 1 Jd to l:Jd Leeks. Id a bunch. Potatoes: Kim; Kd wards. -'llls a cwt ; Anan Cl: id's, 20s a cwi. j

Carrots, 2s Id to 3s a dozen. Lettuce: Large, to Is 6d a dozen; small, Is per case. Spinach, Is to Is 6d. Celery, 3s to Os Cd a dozen. Spring Cabbages, 2s 6d to 3s. Cauliflowers, 9s 6d to 15s a bag. Parsnips, lOs to 11s. Carrots, 10s to 12s Gd a bag. Onions, 30s a bag. Eggs, market rates. Tomatoes: Christchurch, Is lOd to 2s 2d. Asparagus, 10s to 13s. Potatoes: Auckland, dJd; locals, BJd. BANK OF ENGLAND RETURN LONDON, November 9. The following is the Bank of England return:— —lssue Department.— L Note issue in circulation ... 528,400,000 Bank department 51,800,000 Government securities ... 565,600,000 Other securities 2.900,000 Silver coin ... ’ 500.000 —Banking Department.— ■test ... , 3,200,000 I Public deposits 21,300,000 Bankers’ deposits 101,900,000 Other amounts 41,500,000 Government securities ... 102,300,000 Discounts and advances ... 5,500,000 Other securities ... 21,900,000 Notes and coins 52,700,000 Ratio of reserve to liabilities is 32.05 per cent. Tlie Bank of England discount rate is 2 per cent. AUSTRALIAN STOCK EXCHANGES Press Association —By Telegraph—Copyright ■SYDNEY. November 10. : The share market to-day was very firm, with a heavy turnover.

.—Morning Sales.— £ 8. d. Commercial Bank of Australia ... 0 14 6 Bank of New South Wales 27 o 0 Associated News ... 0 16 10> Anthony Hordern ... 0 14 11 Australian Consolidated Industries 1 16 6 (cont.) ... 0 14 1 Broken Hill Proprietary ... 3 13 3 —Afternoon Sales.— Bank of Now South Wa les 27 2 0 Commercial Bank of Australia ... ... 0 14 6 Associated News ... 0 16 10 Sydney Ferries ... • 0 4 3 Tooheys ... 1 8 0 Consolidated Industries ... 1 16 6 (cont.) ... 0 14 0 Drug Houses ... 1 0 4 Electrolytic Zinc ... 2 16 6 (pref.) 2 18 0 Coles ... 3 11 3 Mort’s Dock ... 0 17 1 Wool worths ... 1 2 6 Mount Lyell ... 1 9 0 Mount Morgan ... 0 9 4 Kanieri ... 1 11 0 MELBOUBNE, November 10. Bank of Australasia ... ... 7 15 0 Carlton Brewery ... 3 2 9 Broken Hill Proprietary ... 3 13 6 Coles ... 3 11 0 Dunlop Perdriau ... 0 19 7 (pref.) I 15 0