FARMERS, TRADING CO.

New Zealand Herald, Volume LXVII, Issue 20600, 26 June 1930, Page 9

FARMERS, TRADING CO.

ANNUAL MEETING HELD. DIVIDEND' OF 10 PER CENT. DIRECTORS* REMUNERATION. A dividend of 10 per cent, on ordinary shares was sanctioned by shareholders at the annual meeting of the Farmers' Trading Company, Limited, yesterday. Nearly 100 shareholders were present. Mr. James Boddie, chairman of directors, in moving the adoption of the annual balance-sheet, said he had to congratulate the shareholders: upon, the success of, the company in the last two or three years. The past year admittedly had not been phenomenal, but it indicated a decided improvement. In spite of a period of keen competition, in which oldestablished firms had found it increasingly difficult to get business, tha directors were able to recommend a satisfactory dividend of 10 per cent, on ordinary shares. Practically each month in the past year had shown an improvement over the same month of the year before. The shareholders, for probably the first time, had realised that the success of the company rested with themselves. New lines of business and new methods had been adopted, and the results, as shown in the balance-sheet, had been exceedingly gratifying. Regarding the directors' recommendation that a dividend of 10 per cent, on ordinary shares should be paid, it was worthy of note that a large majority of the shares were held in small parcels, although there were some large holders, one of whom would receive £460 if the dividend were approved. Fast Troubles Bee ailed. The objects which the original promoters had had in founding the company were being realised more and more by the general body of farmers and by the shareholders, said Mr. Boddie. They had come to see the benefit of dealing with their own store. This was a spirit that should be further cultivated.

The motion to adopt the balance-sheet was carried, and the dividend proposed was approved. The re-election of the three retiring directors, Messrs. A. D. Bell, R. D. Duxfield and L. H. McAlpine, who had been the only nominees, was approved by the meeting.

Some discussion took place upon a proposal by a shareholder that the directors' honoraria should be increased from £IOO to £l5O cash.

Another shareholder, who said his holding of £SOO had been written down to £2OO some years ago, opposed any increase in the directors' remuneration until the ordinary shares had been restored to their former value. A woman shareholder said she would be perfectly willing to double the remuneration when the restoration had taken place. . • . -

Mr. Baddie remarked that the difficult times through which the company had passed had made writing-down inevitable. No one regretted it more than the directors. Many other concerns had had to do the 3ame, and it was unfair to blame the directors in any way. It was worthy of mention that a considerable amount of the money lost had gone to- shareholders in the company. When the slump came there had been £240,000 on the books, and tha only coarse had been to write down capital and issue debentures, which were now being paid off. When all had been liquidated and necessary reserves built up it-would be tune to talk of restoration, but not before. To take such action now would bo running a risk of getting into deep waters again. Loyalty of Directors. Mr. Boddie added that the directors present informed him that they did not desire extra remunerationMr. E. A. Laidlaw, general manager, speaking as an ordinary shareholder, said there seemed to be an impression that the directors were responsible for what had happened (cries of " No.'*)-. The amount written down on his own shares amounted to a very large sum. It seemed ridiculous that a company with a very large turnover and one that was doing well should not pay a fair honorarium to its directors. They* should not be expected to make frequent visits to the city for £IOO a year when other concerns were paying as much as £SOO.

A voice: Why are they doing it!. Mr. Laidlaw: Because they started the company and because they are genuinely interested in co-operation. When shareholders get up year after year and propose an increase it is only a proper tribute to the directors' services. An amendment leaving the honoraria unchanged was adopted with some distention fca. Messrs. Hutchison, Elliffe and Cameron were re-elected auditors,' In reply to a question regarding the item bad debts, Mr. Laidlaw said credit was still given at some of the company's branches and some bad debts were inevitable. At the end of the year £64,184 was outstanding at branches, compared with £65,117 a year earlier. However, there was an increase of £107,000 in turnover. Staff Organisation. On the motion of Mr. S. Irwin Crookes it was decided to place on record the shareholders' appreciation of the excellent and enthusiastic service of the staff and particularly of the able supervision of Sir. Laidlaw. Replying on behalf of the staff, Mr. Laidlaw said he had always tried not to .make the business a " one-man show." He had developed 15 very competent and capable executive officers in charge of different departments, who met hun in conference once every week. This delegation of authority placed the control of the business in a secure position, and there would be no serious dislocation in the event of the general managership becoming vacant. He might mention as an example of the system, that the secretary and assistant general manager, Mr. D. Robertson, controlled the affairs of the company's 46 branches. The company was fortunate in having a body of loyal and enthusiastic shareholders. Of 55,000 customers on the mailing list 12,000 were shareholders, and the books showed that the shareholder's business was four times that of the non-share-holder. Ho had no differences with the directors or the shareholders, except on the question of remuneration, which he hoped would be reconsidered a year hence. The current year would be a difficult one, but ho felt assured that it would be possible to show a good balance-sheet.