KEMPEHORNE, PROSSER, & CO.'S NEW ZEALAND DRUG COMPANY (LIMITED).

Otago Daily Times, Issue 12618, 23 March 1903, Page 4 (Supplement)

KEMPEHORNE, PROSSER, & CO.'S NEW ZEALAND DRUG COMPANY (LIMITED).

. ibe twenty-fourth annual meeting of Messnj Kempthorne, Prosser, and Co.'s New Zealand Drag, Company (Limited) was held &; ■ the., Board Room, Agricultural Hall Buildings; yesterday afternoon. The chair •was'.; occupied by Mr T. W. Kempthorne (Minaging-director), and about 25 share-•holders-were present, including Dr Ogston • and Messrs-E. W. Grimwade, J. Mill, and G. Sievwrighit (direotore). \' ; . REPORT AND BALANCE SHEET. • The following.report by tho directors was Submitted with the balaioe sheet:— v ; " The- directors have the pleasure to submit 'for the approval of the shareholders the balance sheet and profit and loss account to the31st. January, 1903.. The stock has been taken •with special-care, Te-checked and inspected. The outstanding accounts have been also most carefully examined, together with the land, buildings,, machinery, and plant, all of which »re-'full value for the figures they represent in '.the.ftooke, and full provision made for all fcnown losses. The net profits lor the year amount to. £ 15,149 15s 9d, to which add the balance' from last year, £18,95018s 10d, tnakin* a-t0ta1..0f'i34,106 Us 7d; less dividend, 31st January,'l9o2, £6793 10s 9d; leaving to-be dealt with, , £27,313. 3s 10d, which it is proposed toapply as follows:—Dividend for year ending-,3lst-January, 1903, at 7 per cent., £18,648 14s. sd, and to carry forward to next '.year, £13.664 9s sd, making a total of £27,313 3s 10d. Two directors—Dr William Brown and Mr : George Sievwright—retire from office in terms.of the articles, but are eligible for re- ' election. The dividend now recommended, if passed-by.-the meeting, will be payable at Iho Union .Bank of Australia (Limited), at its branches throughout the colony, to colonial slwehdlders, on and after the, 26th day of March,' 1903, and to London shareholders at 6 Trinity square, on receipt of advice. : Tho Chairman, in moving the adoption of the' .report' and balance sheet (previously published), eaid: On bohalf of the Board of Directors, I have now the pleasure to subinit for your approval the report and balance sheet for the year ended the 31st Janu-ary,-.1903, .but. before moving its adoption I wall, • with your permission, make a few necessary comments thereon' When last we {met I had the misfortune to have to explain toi yop that wo had suffered heavy losses , (trough irregularities of our managers at fftrietoliufch and Wellington, and I further explained to you that I hoped we had made full provision to cover nil things in reference to these matters before tho striking of the balance sheet. Tho loss was discovered just before our balancing period, and gave us. little time for thorough scrutiny, and during the' present year we have found that fiirther provision was neoesfary. and we gave our inspector instructions to carefully overhiao' all things pertaining to these 'branohee during his quarterly tours of inspection, and during the present stock-taking time to .thoroughly check every line. I am pleased to report that this has now been .done. .with.much labour and great care, and provision ; made for all tilings before our ■ present balance sheet was struck. We have had a -good year's business, I am pleased to say,'.;enabling us to make good all these defects, to pay you the usual dividend, and to. carry forward a substantial eum to present- year ■ without in any way interfering with our Teserve. I think it necessary, however; to point out to shareholders that »'<■ li-avo difficulty in getting as much insurance os-we.would like, as the premiums fixed for .our. cJass.' of business are high. Another tbjrig, undw presont insurance companies' combination- in the. colony, they, will not allow us to go outside for any cover which they cannot take themselves unless we contribute, 5,;, per cent, of the'value of such premurroVin their favour for all risks token outside,of the colony with other companies, puoK outside nrn'miums not to be under the local rates. . Now, I think this is a moFt unireasonable position. To maintain uniform rate? ]9 doubtless advisnWej but..in.respect ■ to -risks that local companies cannot take, .they;should not debar insurers from going elsewhere' at their premium rate without further handicap. This matter wants prompt filtering; and -I hone speedy action may be taken-to'set this ndditinna.l percentage aside. NpWj .with'regard to figures in the balance slieet, • On tlie liabilities' side,- the cmpiW / is-£195,207." being £1105 more thiin at last balance. , -This- ; has' risen through the sale;! of 'spnie shares during the year on which a premium profit of £209 was made, 4rtd'. Which' appears in >the present profit jind-.losj/ account. Dopo?it3 and open ac- . tp.ui(sirepresent £SMI4 5s Bd, which bub.

is £10,470 8s 5d more than at last balance, this increase being chiefly represented on goods held for .remittance'tinder defined . terms. Klls payable: are - £9875 13s sd, ! or £2602 Is 6d less than, at-.last .'meeting' period. The staff. fund, is slightly less through payments to sick members during the year. Fire insurance fund, land nirl building depreciation, and. reserve on customers' accounts are unchanged. On 'i.e assets side, stock value Is about the - sim.-o as last year, the only difference being some £422. Warehouse premises, land, plant, etc.. show £80,093 0s Id, being' an increase of £9681 6s Id, by additions throughout the year to our Auckland and Bumside works and factory, With respect to these lands, buildings, and plant,'we have written down from time to time atieh sums as wo thougiit necessary for market , values. We have further necessary buildinga to do in the extension of our works, and also in the building of a new warehouse for Dunedin, absolutely necessary . for . our requirements, and which we hope shortly to put in hand. When these firings are finished'we'shall have well prepared for feJuro requirements, although I hope not sufficiently, as this concern is merely in .its infancy, ftnd with an efficient staff and good, handling is ctrtsin to vastly increase. Bills- receivable, not discounted, amount to £6719 6s 9d of good paper. Book debts—that is, the amount owing to us by our customers as at • 31st January last—represent £39,797 3s 6d. which figures wo consider good; and in this sum we have within a few thousand pounds sufficient to cover our entire liability outside the shareholders' capital, the cash at our bankers' being £9997. With reference to capital, we have at present sufficient for our wants, but before I retire- from the management of the company I should like to joe provision made* for future increase, and I may say that the board liavo had this thing under consideration, and will probably submit a scheme in reference to. it at our next balancing period. With respect to the profit and loss account, the general expenses are some £200 less than last year, and the other amounts call for no special comment beyond i-aying that the credit figures are more attractive. At our meeting to-day we are privileged to have present our London director, Mr E. W. Grimwade, who comes to Now Zealand for the first time. Mr A. Norton Grimwade, - eldest son of My F. S. Grimwade, our Melbourne director, is also, on a visit /to Dunedin, and ho would have been personally present but for ill-health. These' gentlemen have- just returned here after going through the colony and visiting our various hbuees, which will give them a better insight into our modes of work. I have now the pleasure of moving the adoption of the report and balance sheet. ■ , ■ Mr James Cuming (Melbourne) seconded the motion. '• ' The motion was carried unanimously. Dr William Brown and Mr George Sicvwright, the retiring directors, were reelootetl on the motion of Mr Campbell, . seconded by Mr Mitchell. I On the motion of Mr A. ' seconded by Mr G. Reid, tho rotirinc auditors were re.spnoinfed—namely,. W. K. Holmes (Auckland), Charles P. Powlcs (Weilington), A, Carriole (Ohristohurcb), and William Brown mid Co. (Dunedin). On the motion of Mr MitchelK seconded by Mr Reid, a hearty vote of thanks was accorded the directors and'the staff for their 'services last year. Tlw Chairman, on behalf of the directors and the staff, briefly acknowledged the vote, and the meeting concluded..