FARMERS' FERTILIZER

New Zealand Herald, Volume LXXV, Issue 23103, 30 July 1938, Page 9

FARMERS' FERTILIZER

SOUND POSITION SHOWN EXPANDING BUSINESS FRESH CAPITAL PROPOSED Tin.' 22nd annual mooting of shareholders of the Now Zealand Farmers' !*'<-rti 1 ix<• j- Company, Limited, was hold at A noli la nd yesterday. The chairman of directors, .Mr. A. A. Ross, presided over a fairly small attendance of shareholders. Hofore proceeding with the ordinary business of the meeting, Mr. Doss said it was his painful duty to refer to the l<»s which the company, and particularly the hoard, had .suffered hy the death of two of its staunch supporters. "My close association with .Mi. H. j). I)u\field and Mr. G. T. -Bayly over a long period of years, as co-directors," said Mr. lioss, "enables me to speak of their high qualities. They were both helil in high esteem by their many friends. .Mr. Duxfield throughout his lung career always took a deep interest m anything which pertained to the v.eltare el the lariner generally, and Mr. liayly in his young days was jirominent in .-port and was one of New Zealand's most successful pioneers. I heir passing will be lamented by a wide circle of friends.'' The meeting stood in silence for a brief period as a mark of respect and as an expression of condolence to the relatives. Before moving the adoption of the report, and balance-sheet, which have already been published, and reading the auditor's certificate, .Mr. Ross said: —• Record of Company "This is the 22nd annual meeting of the shareholders, and I am proud to state that it has been my privilege and pleasure to preside at every meeting sill'-e tile inception of till.' COlllpailN'. J'or the confidence which you have continued to express by returning me as a director, and to my fellow directors who have shown their confidence in me as chairman, 1 take this opportunity of conveying my thanks. ''The history of the company is one of which we have reason to he proud. Your directors were confronted with many problems during the construction period, which by the way was the period of the Great War. but the progress made from the day we commenced manufacture is practically an unbroken record of successful business.

"1 have never specially referred to the achievements of the company at any previous meeting of shareholders, but L think it is opportune to tell you just what has been accomplished in the last 17 years, which covers the period of manufacture.

"Tin- tfit;i 1 amount involved in writing off depreciation, rights and concessions, flotation expenses, tite purchase and i■(j uipment of the New Plviijiiillll Works and the additions to buildings, ill,nit and machinery at Auckland and New Plymouth aggregates £630.001). IT a careful analysis is made of the balance-sheet it will be seen that tin' total of the company's actual liabilities exceeds only by £58,067 7s 3d the value of the stocks and book debts. As against this the company's fixed assets amount to over £•.(01I.(>r»«). The amount written oft and additions to assets represents nearly two and a-half times the paid up capital of the company, and in addition a reserve has been built up of £66.477. Burdens of Taxation " Then again, as may be imagined," said .Mr. I'o.-s, " the upkeep of acid and fertiliser works is particularly heavy, ami during the period under review, the-cost of maintaining both works in a good state of repair amounted to £153.000. And lastly you may be interested to learn that the Government lias received the _ formidable sum of XT(>">.ooo for income tax. The burden of company taxation is altogether too heavy, and it would appear that the (lovenniient. without any capital in-ve.-iinent, in tiie case of most large concerns, gets more than the shareholder. Let us hope for some modification, or change in the incidence of taxation.

" 1 think you will readily see from the figures which 1 have quoted that the achievement is truly wonderiul with a paid up capital of £'262,000, and it certainly indicates very careful administration of the financial affairs of the company. This brings me to my point, that if the company is to expand and bold its position in the in-iln-frv. it is obvious that more share capital is necessary. Tlie demand for superphosphate and other tertilisers ha-- i 111 Team- d considerably over the last few years and will probably continue to increase, and we will have to provide for meeting our share of this demand. So far, when we have been faced with large capital commitments we have been financed by the bank. This has been quite satisfactory, but present- indications are that without further capital we will have to depend npon_ overdraft to a greater extent than is advisable.

"It will be seen from the balancesheet that the assets of the company total £528.739, whereas the paid tip capital only amounts to £261.995, indicating that we are very much undercapitalised. Your directors have decided that the time has arrived to issue further shares, and an announcement in this connection will be made at an early date. Same Dividend Rate

"Turning to the balance-sheet, tho position is clearly set out in the summa rv of the figures which shows the netf profit at £22.223 14s 6d to which is added the balance brought forward from last year —£23,973 16s Bd, making the total profit to be dealt with £ 16.197 lis 2d. You will admit the wisdom of appropriating £4OOO for reserve. which loaves £42,197 lis 2d available for distribution. Pursuing a cautious policy your directors prefer to .recommend tho usual dividend of six per cent, rather than increase the rate, even ii" the profit justifies a bigger dividend. You will agree that it is prudent to have an ample balance of pro lit in hand to provide for any emergency.

" With the pro'it carried forward of £26.4 77 lis 2d this makes a total reserve of £66.477 lis 2d, which shows an increase of £21,335 over the 1934 figure, covering a live-year period. The bank liability has increased £65.490 over last year, but approximately £(10.000 was "expended on new buildings, plant and machinery and stocks are higher by £32.744. These two figures show an increase in assets of £92,744 against an increase in overdraft of £65.490. Not one penny had to bo written off for bad debts, which indicates the soundness of our selling policy. !' Now, there is just one matter I would like to touch upon before concluding my remarks. We are all seriously concerned over the substantial losses to farmers through the scourge of facial eczema. and wo have heard it suggested that top-dreVsing is a contributory cause. 'Many people are prone to explain the cause without the slightest knowledge. Such expressions of opinion are sometimes dangerous and generally very misleading. Opinions on Eczema

"Those who have studied the disease, and are best fitted to oiler ail opinion, are the scientific experts who are closely investigating the cause and remedy. .Mr. K. Bruce Levy, Director ol' the Grassland Research Bureau, a prominent oflieer of the Department ot Agriculture, and an acknowledged authority, stated at ajargelv attended meeting of farmers in Hamilton on July •! that, it would he a lata! mistake for any farmer to reduce his top-dress-in-. He could nnt a-rce that any plan foF induciii"' soil fertility could lead to eczema. Other research workers endorse this opinion. i

"The position is that eczema has been appearing spasmodically in different parts of the Dominion for many years, and this season is the first occasion upon which it has become serious," said Mr. Ross. " although top-dressing has been going on for a long period, especially on dairy pasture and more recently on shoe v p pasture* There is no question that the greater part of our prosperity is. founded on pastures improved by top-dressing, and it is not common sense to jeopardise this prosperity on a bare assumption. Intensive investigations are now being conducted and it is to bo lioped that as a result the cause and the remedy will he discovered.'' Finances Well Managed Seconding the chairman's motion for the adoption of the report and balancesheet, Mr. J. l'\ Colegrove said Iho i balance-sheet was evidence that the affairs of the company wore being conducted on sound lines. Ihe company continued to improve its position each, year and the chairman's address had been a revelation to shareholders. lb reflected credit on the board that the finances of the company had been so well managed and that a balance-sheet had been presented which showed assets at with a capital of £202.000. and that the company's actual liability only amounted to .L'oS.OOO more than fhe stocks and book debts, after taking into account all outstanding creditors, including bank.overdraft. The liability need not cause any concern when there '.wis set against tfc fixed assets standing at over £'loo.ooo. Increase of Capital Mr. Colegrove said lie agreed that it would be wise to raise further share capital so the conipa'ny could expand and mi it would feel less dependent upon its bankers. Mr. S. Irwin Crookcs also spoke in favour of an increase in capital in order to take advantage of increasing business and to avoid leaning too heavily on the hank. The company's shares, be said, should be substantially over <JI in market value. That they were not was simply because so many persons did not like a bank overdraft and tin.' company would be wise to ■ obtain as independent a position as possible. The report and balance-sheet were adopted unanimously. Two retiring directors, Mr. Crookes and Mr. G. L. Marshall, were reelected. Mr. -I. A. Duncan was reelected auditor. Fewer Directors Referring to the vacancies caused by the deaths of Messrs. Duxfield and Bayly, the chairman said it was proposed to reduce the number of directors from seven to five and so not replace the two deceased directors. lie was satisfied that now five would be a sufficient number to form the board. The chairman's motion to reduce the directorate to five and the total honorarium to £OOO was carried. Tribute to Stafi On the motion of Mr. J. B. .Johnston a vote of thanks was carried to the directors and it was decided to place on record the shareholders' appreciation of their work. Mr. Ross returned thanks on behalf of the board, which, he said, would continue to give the company the best of their efforts and attention. A tribute to the work of the manag-ing-director and secretary,.Mr. J. Wilson, and to the staffs at Auckland and New Plymouth was carried on the motion of Mr. Crookes. Mr. Wilson briefly thanked the meetfor its expression of appreciation. —P.B.A.

THE CITY MARKETS ISLAND FRUIT IN DEMAND CAULIFLOWERS CHEAPER There was a good inquiry for Island oranges at the City Markets yesterday following the arrival of a shipment by the Matua earlier in the week. Island tomatoes also met with a good sale. Local fruit remained very slow of sale, especially in the case of apples, of which there was a large supply. Most vegetables were in heavy supply. but the demand was only fair. Lettuces, which were available in fair quantities, met with a good inquiry. Cauliflowers and cabbages were ia better supply. Prices were: — FRUIT ] Apples. Golden Delicious. 7s to 9s; De> licious, local. 3s to 4s (id; Hawke's Bay, " ■ls to (is; Ballar.it, -is fid to 5s fid; Dougherty, its to ">s; Granny Smith, Is to 6s; Jonathan. (is to ss; Munro. 3s to Is; Home Beauty, 7s to {»s; Statesman, (is to 0s fid; Stunner. :*s to ."is; "Winesnn. fis to Us; pears, Peter Barry, -Is to ss; Winter Coles. Gs to ss fid: Winter Xclis. Is to Gs: tomatoes, hothouse. Is (id to "Js per lb; Island. t-Sa to 21s Oil: bananas., ripe, 7s to 20s !)rl; tree tomatoes, new black, Is to 8s; yellow, -1s to (is; oranges, Australian, 15s to 'Jls; Island, 0s to 18s; grapefruit, New Zealand, extra choice, -Is to ss; others, 3s to 4s; lemons, choice, cured. -Is- to Gs; others, 3s to Is; frrapes, hothouse, Coleman, extra choice, up to 7s 3d per lb; others, 2s Gd to 5s Gd; passion fruit, small case, Ss to 12s; larsre cas>\ 17s fid to 225; mushrooms, .'is to 3s 3d per lb FIELD PRODUCE Beet. Sd to Is Od a dozen; celery, cooking, Sd to Is 3d a bundle; dessert, Is Gd to 3s Od; carrots, 2s to 4s a bag:, or 6d to tod a dozen; cauliflowers, 5s to 9s a sack; on benches, 3s to Gs a dozen; cabbages. 2s to !)s a sack; on benches, 3s to 5a a dozen; cucumbers, hothouse, Is to Ss; French beans, strinsless, beans, 4s to Ss a rase; kutnaras, Island,. Ills Gd to lis Gd per cwt; Tauranga, 3s to 4s a bag; leeks, od to fid a bundle; lettuce. 2s to Ss a case; marrows. 3s to Gs a sack; onions, Pukekobc, 10s to Its fid a bacr; potatoes, Southern, (is to (is Gd per cwt; Ohakune, 2s to is (id a bag; pumpkins, choice Triumble, 5s to Os ;i sack; medium and small, 2s to 4s; parsnips, 5s to Os a bae. or is 3d to Is Od a dozen; radish, Gd to ' Od a dozen; rhubarb. 2s (id to -Is Gd a dozen; spinach. Is (id to 2s Gd a dozen; spring onions. Gd to is 3d a bundle; swedes, 2s to 4s .1 bag; turnips, fid to Od a dozen; Brussels sprouts, Sd to ltd a lb. POULTRY Cockerels, heavy breeds, prime, 5s 6d to 7s; not prime, 3s up; light hrceds. prime, 2s Gd to 3s; not prime, Is Gd up; fat roosters, heavy breeds, prime, 3s to 4s; light breeds, '2s to 3s; fat hens, heavy breeds, 3s 3d to 7s Gd; lisrht breeds, 2s to 4s; pullets. heavy breeds, best. Is (id to Gs Gd; smaller, 2s up; licrht breeds, best, 4s to 7s; smaller, 2s to 3s; drakes, young, prime, 3s Gd to Is Gd; smaller, 2s to 3s; old 2s to 3s; ducks, young, 39 to ss; old, 2s to 3s; geese. 3s to ss; turkey hens, 5s 6d to 7s Gd; gobblers, 7s to 10s. BUTTER AXD EGGS Eggs, hen, A grade. Is 10V 3 d a dozeni B, is O/id; C. Is o'/jd; duck, A grade, ts t Olid a dozen; B. Is 0V~d; C, Is 7'/,d. Farmers' butter, Is Id to Is 3d a pound. MINERAL PRODUCTION INDIA'S COAL AND GOLD During there was a general increase m India's production of minerals, with the exception of gold. India's most important mineral is coal. During the year 22,313.205 tons of coal were raised from mines worked under the India Mines Act, an increase of nearly 1,750.000 tons over tho previous year's figures. Petroleum also showed a satisfactory increase, of nearly 1.000.000 gallons from the Digboi held in Assam, while the Punjab output was more than doubled. The production in Assam amounted to 65,718.437 gallons, nnd in the Punjab to 10.026,560 gallons. The large oil fields in Burma had an increase in production of over 8,000,000 gallons, the total output for that country being 273,807,738 gaUons. The Kolar goldfield in Mysore^** *0 practically all the, go!k is a mined, produced £9O cnmpa red decrease of over 100 • s j]ver outwit h to 25,9090z-