SHARLAND AND CO.

New Zealand Mail, Issue 1732, 10 May 1905, Page 74 (Supplement)

SHARLAND AND CO.

ANNUAL MEETING.

Tho sixth annual meeting of the shareholders of Sharland and Co. Ltd., was held on the 2nd instant, Mr W. Watson (chairman of directors) presiding.

In their annual report, the directors expressed their pleasure that they were able again to meet the .shareholders with a statement showing continued progress and prosperity. The report continued :—After making the usual full provision for bad debts and depreciation of. plant and fixtures, the net profits for the year amounted to £5668 7s 2d, to which has to be added £204 10s 3d carried forward from last year, making in all £5872 17s sd. as shown in the balance-sheet. The directors, in accordance with the powers conferred on them, have now' taken from this sum £2OOO for addition to the reserve fund, making that fund up to £7250. They recommend a dividend of 7\ per cent, per annum on all shares, which will absorb £3650 14s, leaving £222 3s 5d to

be carried forward to next year’s account. A substantial increase in sales of goods manufactured by the company in the colony is a pleasing feature in the transactions of the year, as it shows the public appreciation of the strenuous efforts made to give satisfaction in this respect.

The chairman, in moving the adoption of the report and balance-sheet, estiH:—“With your permission, I shall take the balance-sheet and report as read. They will have shown you that the company is making steady progress, and I may say that our trade or turnover of business has increased in rather a larger ratio than the net profits. This, considering that no extra expense foi warehouses or general management was necessary, may appear at first sight to be somewhat strange, but shareholdei s who are personally engaged m wholesale business will readily understand that increased prosperity has carried with it in recent years increased ratio of oxponses, whilst reduced rutlior than increased gross profits on the tuinovel have been the rule. It is common knowledge that salaries and wages increase with the general prosperity ol a country, and these items aiie mainly responsible for the increase shown under the first heading on the left-hand side of our profit and loss account, although extra emnloyees have had also to do with it. Then insurances both against fire and accidents to employees, are expensive, and it lias been our policy to run no risks which can be avoided in these respects. The itinerant indent traveller seriously menaces the legitimate wholesale trade, and we trust the time is not far distant when the Government will see its way to enact some provisions compelling that class or trader to contribute to the revenue of tho colony somewhat in proportion to the contribution payable by resident traders. As you will see from the balance-sheet. we have no less than £16,418 invested in necessary properties and plant; besides that we pay a considerable sum in rents, and employ 88 persons- Our competitors from other countries are mostly large capitalists, and our only safeguards against their inexpensively conducted trado here is in the excellence of our manufactures and importations, and by building up a strong financial position; hence a reason, were there no other, for the additions to the reserve fund which the directors make from time to time- Upon the whole, I think wo may congratulate ourselves on th( } result of our business for tho year. The stocks and hook debts are taken at bed-rock values, and tho properties, plant, and fixtures could not be purchased to-day for the sum at which they stand in the accounts. Mr Owen, the general manager, is again at his post in excellent health after his trip round the world, and well posted up in the methods of the trade as observed in Europe and America. Mr Rcnsliaw, the manager at Auckland, is most devoted to his duties and continues to effect a steady increase in his turnover. The Auckland branch has not yet, however, attained to the same success as a profitearning concern on the capital employed that the Wellington branch has, but it is hoped that it will do so ere long. All the other employees of the company continue to execute zealously and satisfactorily the various duties entrusted to them. I now move the adoption of the report and balancesheet, carrying with it the payment of 7& per cent, dividend.” Mr Martin Kennedy, who seconded the motion, said that whilst the dividend this year was slightly different from that of previous years, he thought shareholders would agree that it was sound policy to build up a good reserve rather than to distribute too closely up to the amount available. Replying to Mr D. T. Stuart, the chairman said, in regard to insurance, there was difficulty •in covering tho stock, the premiums having been increased from fifteen shillings to twenty shillings. They did not yet know whether this applied to Auckland also. The report and balanoe-sheet Avere adopted. The retiring director, Mr Elgar, Avas re-elected, on a motion proposed by Mr J. H. B. Coates, and seconded by Mr Maudsley. Messrs H. Kember and A. S. Biss (Wellington) and H. Gonlstone (Auckland! Avero re-elected auditors.

The remuneration of the Wellington auditors was increased from 25 guineas to 35 guineas each. The directors’ fees AA'ero fixed at £3OO, the same amount as last year. A vote of thanks Avas passed to the general manager (Mr J. H. Owen) and the staff.