NEW ZEALAND DRUG COM- PANY.

Otago Daily Times, Issue 8756, 19 March 1890, Page 5

NEW ZEALAND DRUG COMPANY.

The eleventh annual general meeting of share- j r lolders in Messsrs Kumpthornc, l'rosser, and ! - Jo 's New Zealand Dni(j Company, Limited, was ! , leld on Friday, 1-lth inst. About 25 gentlemen vero prc'BCut,"niul Me B. Siovwright (chairman : >f directors) occupied tho chair. 1 ANNUAL KEPORT. ' Tfco annual report was as follows:— ] Thu directors have tho plenau.'O to submit, f.T tho , ioproval of the olisreholders, thu balance eheut and | Drills and loss nconn.t to the 31st January ISiIU. Iho Block has been taken with the usual caie, - ilonbiy checked throughout, and tho aceom.ta sub- , iecteil to cloto Inspection. Tho net prolit for tho v->ar amovmla to £810113s Bd, to which lias to ba lidded tho balar.co from lust year (£i:j,lsß 8o lOd, loss divldeud then declared, £2iioo 2a), £l(),-IM ea 11M ; total £18 300 Us Od, but of this the dlr«!ti>ra pidd an interim dividend on 3!sl July last. i'-'OGO Us ; and Interest on now shares, i'Al Gs 8.1; ln-fure striking the balance for tho preieat year there has bet-n pliietd to thH credit of ii lire Insurance Fund, £1000; and addo.itotho.taff .fund, £500 ;- tofcil, £1177 8a Sd. leaving mi available balance of £1-1,122 lla lOd, which it is proposed to apply in payment of n dividend at tho rate of 7 per cunt, per annum to .iltt Jamiarv ISilO, amouiillni; 1.0 J330150 103 9J, and to curry forward the balance £11,5Ui la Id. Since 1.-.st, mcctin- the dirtctors liavo disposed of another £'Ji!OU of 6 per cent, debentures, makinit tho total now sold jCU.OOO. The following directors-Messrs William Itldfr nild V. S. Urimivi-..1...-.etire from offiOT, in t-rms of tho articles ol association, but are olißible for roelection, and oiler then.selv«accordin|;ly. Tin' dividund now recommended, if pnsned by tho meelio" will bo payable at the Union Dank of Australia, Limited, at its branches throughout the colony to colonial shareholders, on and after 22nd dnyof March 1890. and to London shareholders at 82 Blthopsgnto street, on receipt of advics." The CiuinjiAN said: It aifords me pleasure | to agaiu meet you and present tho result of | anothec year's work, which I trust you may re- j gard as satisfactory. You will remember that it was resolved at our last annual meeting to issua 20,000 of our unallotted shares at par to shareholders only, to bB paid up to 20s per share j by instalments—namely, 5s ou application, 5s j on allotment, 5s ou the 31st October 186!), and j 5s on the 31st January IS9o—and that applicants who f(i desired might pay up to 20s ou allotment. The directors gavo effect to your resolution by sending the necessary application forms to shareholders in the colony and in j London, but tho response was small, 1365 I shares only being applied for in the colony, and j 1665 in London —making a total of 3030 applied for. On these shares, at date of balancing, JEIGO in calls were duo; but this sum will reach us in usual course from London, the amount only being duo there at the date our balauce was made up in the colony. By this additional sale of shares the paid-up capital H increased from £54,571 to £87,444 at balancing period. Wo have sold during the year another £0000 worth of 5 per cent, debentures, making the total now sold £15,000. Our bills payable and opou liabilities nmount to £-15,531 6"j 3;1, as against £23,181 Gs 10,1 last year. The flddstion is caused by the purchase of chemical worka at Auckland and additional stock. We owe our bankers £603 15s 7d, as against a credit of £IS>27 0s Od at last balauco. The staff tuud account wo have raised by £500, no contribution to thhi fund having been mado since 1883. The directors feel that a staff such as ours is wcrtby j of some apportionment of the prolit made to ■ build up a permanent fund, and trust this will meet with your approval. The reserve on customers' account we have uoi changed from last year's figures, believing tho provision made sufficient to ensure safety on the outstaudiugs. Insurances: It is with regret tho directors have to iutioiate that there is, snd always has been, a very large uncovered risk ou our stock and buildings from inability to obtain full cover against fire, and that we have to become our own insurers. To partly meet this we have started with £1000 for a fire insurance fund, us it is absolutely necessary we should make some provision in this direction. All large holders of merchandise in tho colony are placed in the same position aa ourselves, the insurance companies doing business in the colony being apparently unable to cover rcquiremenis. On this head it is satisfactory to report that we have now got into a substantial warehouse at. Wc-lliuijfcon, and have also removed into better premises in Auckland, thus reducing our risks so fsr. Stock value is now £.108,731 Is Id, cr £21,897 17s 3d more than at last taking. This has arisen through the purchase at Auckland before referred to and tho requirements of our increasing business. Warehouse premises aud fixtures stand about the same; but as the factory buildings and land in Dunedin really stand much beyond present realisable value in the market we have written off £2000 for special depreciation, as you will aeo. Auckland Acid Works aud plant is a now item ; a':d our Kaiborai factory and buildings have been increased by coma £4000 through the erection of oil mills and other additions there. Bar.!; debts aud op.»n amounts due by our customers amount to £26,568 Is Bd. This is some £2658 7-1 6d more than at former period; but this total gives us no anxiety, us the nmouut is collectable ia usual business course. Profit and loss account: Amount of gross charges are more than last year, but this in caused by a larger business requiring a comparatively larger expenditure. Bad debts are larger than we could desire ; but notwithstaudiug the greatest care, it was impossible to avoid them under the credit system. Saccharine: Loss was quite unavoidable. At the last annual meeting this article aud the position wo were in iv regard to it was fully discussed, the Government having imposed a duty on it of 80s per lb, whilst wo had a contract in hand which bouud us to take certain quantities in a given time, ano all other markets were closed to us. Tho directors gave effect to your resolution passed at that meeting, to petition tho House of Representatives, and tho printed correspondence iv reference to the matter is now on the table. We got no beneficial redress. The Parliamentary Petitions Committee merely recommended that we should be empowered to take ont of bond at 80s per lb duty tho saccharine we -had there, and apply for a refund of the difference between this rate and the old duty. Hail this concession been granted to us when we first askeri the Government for it, in August 1888, we should have been saved from loss; but the deUy in imprisoning the article for 12 months utterly destroyed the business, aud wo are thus saddled with the heavy loss, aud have written off £920 in the present sheet. Lo.-s yet uumatured will probably run i^to another £200 or £300, aud will have to bo dealt with in the current year. It is with deep regret that I have to announce since wo last met the death of Mr William Lanflaud?, one of our directors, who was some eight years on the board, and whose intimate knowledge and long experience of the affairs of the company rendered hia services very valuable. To fill the vacancy thus occasioned we have been fortunate in securing tho valuable services of Mr Bendix Hallensteiu an Elr Langland's successor. I believe that I have now touched ou all matters of interest to shareholders, but shall bs pleased to give moro information if desired. I bog now to move the adoption of tho report and balance sheet. Mr Edwabd Cuekt (Christchurch) said he would like to know a littlo more about the insurance. For instance, what amount were they insured for on their several properties and stocks Y The Chairman said tho amount they were unable to get covered was so large that' it was almost alarming to mention it, but tho manager did not thihk the stock was mora dangerous thau any other stock, such as a grocer's or a wins raerchnnt'a. They had about £120,000 worth of stock, plant, &c, but only about £00,000 or £70,000 oT it could be insured. The stock whs not all, of cotirsp, in Dunedin, but was distributed among the four branches. JVJr Cuhkv asked what amount the directors proposed to make th« insurance fund. The Ohaiuman said they had started with £1000, DDd he had no doubt they would be glad if next year they could recommend another thousand. Some substantial profit had beeu made during the year, and it was therefore suggested to set aside some of it for the purpose named. Mr Mitchell asked if the Home offices, such as (he Suo, would not take up the insurance. The Chairman replied that the directors had made every effort both at Home aud abroad to get it covered, but without success. Mr John Mill seconded the motion for the adoption of tho report and balance sheet. The motion was carried unanimously. . ELECTION.OF DIHECTOES AND AUDITOES. Mr William Elder and Mr F. S. Grimwade were re-elected directors. The auditors were re-appointed as under: — Dunedin, Messrs W. Brown and Co.; Christchurch, A. Carrick; Wellington!. Charles P. Powles ; Auckland, K. K. Garlick. ' Mr Elder, on behalf of Mr Grimwade, who was at present in Melbourne, and himself, thanked tho shareholders for re-electing them to the board. For himself, he could only say that he had been a director since the formation of the company, and tho interest he had had iv its affairs in tho past he would -still have in tho future, and would continue to do his best for the company. He thought they had done right in re-electing Mr Grimwade, who was of material assistance to the company. COMPLIMENTARY. Mr S. Brent moved a vote of thanks to the directors and the staff. fllr R. Wilson seconded tho motion, which was carried unanimously. The Ciiaiiijian returned thanks on behalf of tho directors, and Mr Kemptiioene, on beh4f of the staff. He said he was glad to see present Mr Heutorj, from Auckland, and Mr Colledge, from Christ-church-—two of tho oldest managers iv the company's employ, lie thought tha company was very fortunate in the branch managers they lioswpsc'l, all of them doing thoir wor'c actinirably iv enmu-cf ion with the head office. Mr Hentok also returned th.".nkd on behalf of j the staff, after which the meeting concluded. /