MERCANTILE GAIN

Gisborne Herald, Volume LXVIII, Issue 20627, 1 December 1941, Page 7

MERCANTILE GAIN

GOOD TRADING YEAR SHEEPFARMERS’ COMPANY SOUND SUPPORT GIVEN Contrary to expectations, the annual meeting of the Gisborne Sheepfarmers’ Frozen Meat and Mercantile Company, Limited, held today, attracted only a small attendance, barely sufficient to form a quorum. Mr. If. B. Williams, chairman of directors, presided. The shareholders present conveyed their cordolences to the relatives of the late Mr. Tlios. Holden, a former director of the company, and of Mr. H. E. Dodd, who for 24 years served the company as auditor. The chairman moved the votes of condolence. In moving the adoption of the report and balance sheet, Mr. Williams reviewed the business done by the company in its freezing and mercantile branches, making strong representations to shareholders and farmers generally to give the freezing department more generous support, and pointing out the reaction which would occur in the district if killings fell away to an uneconomic level. The position with the mercantile department was much more encouraging, he said. “I must again congratulate shareholders on the results achieved in the mercantile department during the past year,” said Mr. Williams. “Wool appraisals commenced on October 25. At the first iwo appraisals small catalogues were submitted and the last appraisal on March 25 was only cleaning up the balance of the. season’s clips, so there were really three appraisals at which full catalogues were submitted. The district wool clip was smaller than usual, and the indications this coming season point to a larger total. Most of the large clips that come into our store are well got up, but some growers, particularly of the smaller clips, neglect to thoroughly skirt their wools and, as was announced at the commencement of the season, the revised schedule of prices provided a premium for clips that were well skirted.

Total of 30,048 Bales

“It is to be hoped growers have noted this and prepared their clips accordingly, thus assuring themselves of the highest returns. At Gisborne We handled 17,218 bales of wool, comprising 14,580 bales of greasy and 2638 bales of slipe wool; as sole brokers at Tokomaru Bay we put through 8451 bales, comprising 7730 greasy and 721 slipe, and at Tolaga Bay, 4379 bales, a grand total of 30,048 bales of wool. The wisdom of erecting the additional wool store was shown by the manner in which we were able to cope with the extra appraisals required; by the increased quantity we were able to catalogue and the elimination of the use of outside stores.

“We experienced good clearances of wool throughout the season, but what the future holds in this direction we cannot prophesy, we can only hope for the best. “The mercantile departments have experienced a difficult year, and when you consider the increasing import restrictions plus those imposed by war conditions, and the shortage in New Zealand-made goods, the results of this branch of the company’s business must be considered satisfactory. Enlistments in the overseas forces, plus attendance at Territorial camps, has placed a big drain on those members of the staff left to carry on, and I think everyone will agree that, despite these handicaps, the company has given its shareholders and clients very good service. Nett Surplus of £7127 “During the year there was no alteration in company taxation, and out of every £1 earned 12Jd. goes to tlio Government in addition to the land and proprietary company’s taxes; this does not leave much for the shareholders, nevertheless, it is proposed to continue the 6 per cent dividend paid to ordinary mercantile shareholders last year.

Summing up the position over the past year, the chairman added that the mercantile profit of £8661 and a freezing loss of £1534 left a net profit foi the company of £7127, as against a net profit of £20,717 in the previous year. “I advised you last year that we could not expect to maintain our current earnings, as costs of materials and labour were constantly rising, and by-product values were decreasing,” said Mr. Williams. “However, the freezing results turned out much worse than was anticipated and an improvement in this department is in the hands of the farmers themselves. The mercantile department’s profit is considered very satisfactory, and shareholders arc not only getting a dividend of 6 per cent, but also rebates which jointly are the result of your whole-hearted co-operation.” The motion for the adoption of the report and balance sheet was seconded by Mr. W. G. Sherratt and carried without, discussion.

Messrs. H. B. Williams, F. C. Loisel, and P. F. Barker were reelected unopposed to the directors’ board, and Messrs. Graham and Dobson, Gisborne, and Messrs. Watkins, Hull, Wheeler and Johnston, Wellington, were appointed auditors for the following year. A vote of thanks to the staff, proposed by the chairman and seconded by Mr.;. Francis Stafford, Was carried unanimously. t The general manager, Mr. A. F. Salmon, acknowledged the vote of thanks on behalf of the staff, the members of which were wholeheartedly loyal to the company.

The meeting closed with a vote of thanks to the chair. •