BRITISH OVERSEAS STORES.

New Zealand Herald, Volume LXVIII, Issue 20983, 21 September 1931, Page 5

BRITISH OVERSEAS STORES.

EXTENSION TO NEW ZEALAND. COMPANY'S WIDE INTERESTS. Brief announcements were published recently of the acquisition by British Overseas Stores, Limited, of London, of a controlling interest in Ivirkcaldie and Stains, Limited, of Wellington. A statement oil the subject was made at the 10th annual meeting of British Overseas Stores by the chairman, Sir Henry F. Wilson. The company has interests in Capetown, Johannesburg, Beira, Loureneo Marques, Bulawayo and Jamaica. Sir Henry Wilson said the company had acquired a controlling interest in Kirkcaldio and Stains, Limited, an old-estab-lished and high-class business in Wellington, New Zealand, similar to that of Fletcher and Cartwrights, Limited, Capetown (a subsidiary of British Overseas Stores), having premises on freehold sites and on areas held on lease in perpetuity from tho Wellington City Council, in 'perhaps the most important and best shopping position in that city, and upon which £30,000 had been expended about two years ago in modernising the shop fronts. "This controlling interest has been acquired on what we believe to be highly satisfactory terms," he continued, "and we anticipate good results from the purchase, even under present conditions. Major C. B. Toms (formerly of Dcrry and Toms, Limited), who has been connected with Fletcher and Cartwrights, Limited, since we havo been interested in that business, is now in New Zealand for the purpose of improving the business with •the, help of a man of long experience from this side, now on his way to take up tho position of general manager. We have every hope that we may obtain as great satisfaction from this new investment as we have done from our interest in the Capetown business. ... In making this substantial addition to 6ur company's assets, we have followed the line of policy which I laid down on a. former occasion, namely, that any new business we might acquire should be a well-established and going concern." Reviewing the company's accounts, the. chairman said all its subsidiaries had been able to pay dividends to it and to put by reserves out of profits. Including the balance from the previous year, there was £46,881 to tho credit of profit and loss account; preference dividend at 7A per cent, absorbed £15.469; income tax reserve, £5000: and ordinary dividend of 6 per cent., £20,790; leaving a balance of £5622 to bo carried forward. CANTERBURY FARMERS. i LOSS OF £97,081 FOR YEAR. NEED FOR LOWER COSTS URGED. A net loss of £97,081 is shown ii tho 38th annual report of the Canterbury Farmers' Co-operative Association, Ltd., Timaru, for the year ended July 31. This compares with a net profit of £2973 last year. The directors stated that the association was now in the second year of' the world depression—a depression unprecedented in its intensity, which was taking extremely heavy toll of assets in the Dominion. In addition the marked diminution in proceeds realised from primary products had of necessity acted detrimentally on merchandise to tho extent of a 20 per cent, reduction in turnover, due to tho loss of buying power on the part of farmers and the public generally. It was found necessary during the year to provide against deflation of assets in farmers' accounts, to make reserve against merchandise stocks and to reserve interest on various accounts. Against the loss tho company had reserves , amounting to £29,972, which meant that capital had depreciated to the extent of £67,109. This amount had been placed to tho debit of tho appropriation account, so showing the true position of the association as obtaining at this time. The results gave a clear indication of what tho depression meant and its effect upon the country and businesses generally. Especially did this apply to the case of primary producers, who were suffering greatly. The position called for the urgent attention of the Government for remedial measures in-costs of production, etc., to enable the whole farming business to bo adjusted and to work successfully oil present values of products which appeared to be stabilising at below the parity of 1914 values. Full depreciation of buildings, fixture? and plant had been made amounting to £5410, while general working expenses showed a reduction of £6981 for the year. The association had, in spite of the difficult time through which the country was passing, been able substantially to reduce its financial responsibility as instanced by tho following comparison, last year's figures in parentheses: —Bank overdraft, £127,702 (£147,490); overdraft London, £6124 (£971): current credit accounts, £21,593 (£40,309); debentures, £250,408 (£250,423); totals, £405,827 (£439,193), a reduction of £33,366. Last year the company placed £7OOO of the amount avilable for appropriation into reserve for bad and doubtful debts as a further assurance against existing low prices of primary products and carried the balance, £2041, forward. In the 1929 year a net profit of £17,918 was earned and a preference dividend of 12 per cent. (6 per cent, covering the previous year) was paid, since when there has been no distribution. In May, 1929, the capital was reduced by £106,702 and accumulated deficit, £95,910, was written off. The authorised capital is £337,500 and the issued, £320,103. OUTLOOK FOR WHEAT. DECREASE IN ACREAGE. REVIEW OF WORLD POSITION. OTTAWA, Sort. IS. The decrease in the 1931 wheat acreage in Argentina and Australia, and a prospective drop in the winter acreage in the United States, provide a basis for a general improvement in the wheat situation, according to a review by the Dominion Bureau of Statistics. Tho reduction in the three countries is estimated at 12,500,000 acres, and it is possible that the equivalent entire acreage expansion which took place from 1926 to 1930 in the four leading exporting countries will bo eliminated during the next 12 months. Tho review proceeds: —"It is evident, in spito of national and substantial bonuses on wheat production, that the European market, quantitatively described, remains much the same as ever. Under normal conditions Europe may be expected to take the supplies of imported wheat which havo become recognised by long experience." WHEAT FOR OVERSEAS. SHIPMENT FROM CANADA. (deceived September 20, 5.5 p.m.) OTTAWA. Sept. 19. A message from Churchill, Manitoba, states that to the accompaniment of shrill blasts'from the siren of the steamer Farmvorth and cheers from the assemblage on tho waterfront, tho vessel sailed yesterday carrying the initial shipment of prairie wheat for overseas, via the Hudson Bay route.