NEW ZEALAND DRUG COMPANY.

Otago Daily Times, Issue 13857, 21 March 1907, Page 2

NEW ZEALAND DRUG COMPANY.

ANNUAL MEETING, ! The annual mooting of shareholders ot | tii'! New Zealand Drug Company, Limited , (Messrs Kcinpthoriie. l'losscr, and Co.), , was held iii I lie liGiiril room at. the Agri- j cultural Buildings yesterday. .. There., were, present:--llr A. IJathiratc (in flic chair), | Or Ogston. Messrs 0. Siovwright, J. .Mill, , A. James. T. W. Kempthorne, 11. Shrimp- , ton. D. Wilson, -A. . Llaimltoii, J. Logan,. , 11. W. Mitchell, 11. W. Hat-on. T, Brown, . .11. North, ami G. !T. Greenwood. The report for the year ended January , 31 lias already appeared in our columns. In moving tile adoption of the report and balance shoot the Chairman said: Before proceeding to consider the. balance sheet, which, I assume, as usual you will take as read, it is probably desirable thai. 1 should say a word in explanation of my occupation of the chair on this occasion. Some mouths ago Mr Willia.m Brown, who has held the position of chairman since the retirement of Mr IComplhovtiu, had occasion to pav a visit to Ihe Old Country, and hofore leaving he virtually plaeod-liis-resignation in. the hands of the hoard, but the board having experienced the. great value of Jlr Brown'* services to the company in the capacity of chairman and being unwilling to risk losing them, preferred tu grant, him leave of abcence, whilst it. did me the honour io appoint me chairman until his return. We shall now turn to. Hit l balance sheet, which I lliink you will concur with me in thinking has been. greatly simplified and improved in appearance. In accordance, with the resolutions passed at the last annual meeting, the various reserves'which were formerly scattered about the . balance sheet- havebeen brought under one heading. General Reserve Account, v.hiclf shows the respectable balance of £22,000. Looking to the fact that v.-eare 1 a trading company and liable to ups ami downs, and especially lo the. fac-i that nf necessity we arc compelled to carry a. considerable portion of our own lire .insurance risk, it should, in my opinion, be the aim of Ihe (ompany 10 continue to build up I hi® reserve. Shareholders would then have the comfortable feeling that, except in the ease of some exlroino and improbable disaster, their ■regular dividend would be assured. Before moving the adoption of the report- now ill your hands, I may lie allowed to congratulate tile shareholders oil the very satisfactory outcome of the year's \vork. as ovidenced by the Results shown in the profit and loss account, and this, gentlemen, in the face of the keenest_ competition. Dealing with the figures in detail, and firstly taking the liability side, we find the capital (£200.000) remains unaltered. Deposits and open accounts now staiui at £62,566 10s 4d. as against- £47.005 8s 3d last year, the increase lx?.ing accounted for by the exigencies nf an expanding business. Dills payable stand at £7104 ■ 2s"3d. as against £12.769 6s 6d las'- year - a decrease of £5655 4s od. This is accounted for partly by iho method under , which the company now finances its sfiip- , inonts.- Staff fund stands at £3340 14s. 1 as against £3415 4s last jear. The small 1 difference is ' due io sundry payments to eicl; inombnre of the slalV. Fire insurance , reserve, £262 14s Id; this represents pre- , miunis on uncovered ■ risks which have ■ teen credited to the account. This sunt ' will probably next, year be transferred to . iho general reserve. tteserve on customers' accounts. £2992 15s '6d; this ropre- [- senis 5 per cant, on the aggregate book . debts of the company as at date of bala.nco r to cover discounts and contingencies. This i amount will be altered from year to year ] to represent 5 par cent, on the existing . aggregate customers' balances. General 1 reserve stands at £22,000. this being tho 5 sum of the various reserves authorised by . last annual meeting lo be transferred to i this account, and, as before suggested, it . will be safe finance for the company io s add to this amount from time to time. This disposes of the liability side of the balance sheet. Turning now to the assets, s Tho stock now stands ai £158,365 8s Sd, t as against. £159,305 9;i 2d last year—a small decrease, evidencing the care which f in taken in indenting. Land, buildings. plant, and machinery stand a{ £94.559 t 13s Bd. Last vear the amount stood at

£39.313 7s 10(1. The increase is accounted for by alterations and additions to our northern works rendered necessary by expansion of trade. Book dobts and open accounts stand at £59.855 9s 2d, as against £45.093 19s 3d last year, accounted for by increased jttMiml business. and boars quite a reasonable proportion to ilie iurnover. The greatest' care lias been is I: on in scriilinifiiiß tlir-sr l accounts to eliminate all "bad and doubtful" From'the list. Clash - in bank. £5279 45.6 d, may be taken as a. fair working; margin, il hemp understood that- an interim dividend to the 30th of July. 1905; has already licen paid Jo the shareholders. Bud debts, £1392 14s Bd. The increase over the average is accounted for by the inclusion of a doubtful account whie-h may or inav not work out satisfactorily, l;ut wiiicli it is considered prudent 1o make provision for. Turning now to tha profit, and loss account, eliarehoidors will note,that the pet profit on t.ho year's transactions amounts to £17.650 14s ikl, an increase from last year of £ty>E6 5s 6d. Taking the ' net profit of the year. £17,650 14« 9(1, together with unappropriated balance of urofir and last ye-ar, £7325 14s 2t1—£25,476 S.s lid—and dsducting the interim dividend to 3Ht Julv, IDO6, already paid—viz., £7000—wo have left to bo dealt with £18.476 8s Ud. Tno directors, in their printed roport. rccommond ail

appropriation as follows:—To write off balance of linseed plant, £217 15s 9(1; to 1 write off Stafford street warehouse, £1000; tl to write off plant at Bumside. £1000; to ' pay half-yearly dividend at- tho rate of 7 1 per cent.., £70u0; to c-aTrv forward to next ft year, £9258 12s 2d; lotu'l. £18,176 Es lid. I The linseed plant- has boon dismantled, the o business of oil pßvsinir, ok'., not proving ? remunerative. Stafford street, warehouse is showing signs of age, and therefore rccpiircs v to he written down, as it should not, of a ■«.HHW,-1*!- -I;epl -in- 1 tip bcoks at above itsraesonable market- value. The plant and machinery at- Burnside has not been written down' for some time, although subject to ( constant, wear and "fear. Tho financial arrangements mentioned by the chairman at last, meeting have worked satisfactorily during the year, and have resulted in a considerable saving to the company. Since file close cf our financial year on tho 31st •lamiary. 1907. busmoß has kept steadily active, and with gcod a.nd well cared for | stocks throughout, the colony, and our various factories in up-to-date working order, ' but relying mainly, perhaps, on the continued prosperity of our colony, 1 see no ! reason why we should not look 'hopefully to ( the future that we shall continue to pay a fair and regular dividend to our shareholders, not. omit ting, at the same I into, to steadily strengthen the reserves of Ihe com- ' pany. 1 feel that I should be omitting a plea-saut pari of my duly if 1 did not call the attention of the sb-lreholdei-s to the loyal maimer in which tho company's staffs throughout the colony have carried out their duties during the year. I now move tho adoption of ike report afid balance sheet submitted, which, if earned, will include authority for the payment of the dividend recommended. ■Mr T. W. Kempfhorne. in seconding the motion, said;—l have pleasure in seconding the motion for the adoption of the report and balance sheet as presented and commented on by f-lie chairman, and for tho disposal of tin- profit, us recommended by the. bostd The directors and staff are'cntitled to our congratulations for the outcome of the year's work. 'From mv intimate knowledge of the. working of the business I am i quite sure that, our good and loyal staff havu stuck well fa their duties during the past year, and are entitled to our thanks. I, of course, well know thai under proper guidance the progress and welfa.ro of the business is centred in the staff, and I express the hope that, (he boaYd may ha always able to pay its members well, and to duly recognise special individual ability whenever or wherever it presents itself, and particularly with the younger members, who may become future managers of the comuuny's atfairs. I was not present at your last annual meeting, but no! iced from the report. oF it that some shareholders wero pressing (or an increased dividend, and they may be of the came opinion to-day. [ vc-'ifure to say. however, as the lej.-gest shareholder in the company, that such a- course at present would l lie unwise, ami an unfortunate one Tor the shareholders generally. If. is' neecssarv for the future welfare of the business to build up a good rc.rrrvc, and to add yearly, if possible, to the free amount carried forward, to meet posilde contingencies, such as we had in the past, and which hut for lite provision!! hitherto made would have keen disastrous. The company has now in hand large additions to our chemical v.'OT.ks at Auckland and 'Duncdin, found necessary to meet, the increasing demand for our manufactured productions, and after these additions arc complete there is much wanted a new wa rehouse for Uuncdiu. the present premises' being quite inadequate to requirements, the staff tains much hampered for want of proper storage room, and cur stock cannot ho shown to advantage ; or lie handled expeditiously. I hoped to ! have recu this building erected before I i retired from the management, but cireuni- • stances a-roso which prevented it. being done. • Wo have a splendid freehold site of half [ an acre, right enpoeite to our present ware- > house on which io bui'd, and this being 1 close to our Stafford .street factery will i enable both premises to be worked economit cally. The present; premirrcs arc now ) written down to small value, and could either bo let- or sold to pay interest on the ! .amount. Wo have in Cln-istchuvch. Wet- . lington. and Auckland line warehouses, built , especially to'meet our requirements in best i business sites, all of which have materially i increased in value since, erected. When . rliis new warehouse is erected in Duncdin, 3 and the works now in hand at our chemical t works are completed, you will be well 1 equipped for the future. V.'ith regard to r the figures in the balance sheet to which v the chairman has referred. I notice that the l liabilities embraced in depc-sits and open

accounts have .increased some 510,000 sincc last year. This increase. I unrieivtond, lias arisen (•hroiiifh wnw. new departure in finance. The othe<- figures on the debit side have changed ihrour?a the .resolutions at your last annual meeting in i-osiioot to merging several reserve accounts into a general reserve. On the arrets side tho stork is about. £1000 lew than last year, which stood at £159,305 9s 2d. Ic-s reserve, and which now stands at £158,265 85 9(1. The debts duo by the company's customers at, the end or the financial year amounted to J359.F55 9s 2d. a,; against amount for tho. year 1906 c<f £15,093 IDs Bd. being an increase of £14,761 9s ltd. Tho increaso'is accounted for by a larger turnover, and the general manager informs me that with ihe reseve provided the accounts are perfectly yood. The net; profits show, tin iit?rea;e over 1956 of £16!)0, which is very sctisfaniory. The business is found and capable of treat extension, and if cenductcd on the cafe lines o? the past there is. T think, a jro.id future for Ihe shareholders. I now recond the. motion for the adoption of the report and balance sheet. Mr Mitchell supnortod. and tho report was unanimiusly adopted.

On the motion of 1.1 r Wilson, seconded by Mr Logan, Mr A, Bathgate and Dr Ojjston, tho retiring directors, wore rc-clccted. Tlio retiring auditors—Mcsns \Y. K. Hoiinos (Auckland), C. P. Powles (Wellingion), G. W. Hulme (Chrisiohurch), and Wm. Brown and Co, (Dmicditi)—wcro reflected on tho motion of Mr Mitchell, secowlod by Mr Thomas Brown. A voto of thanks to tho managing staff was approved on tho motion of Mr Sligo, and the meeting terminated. .