MESSRS DALGETY AND C0.

Otago Witness, Issue 2860, 6 January 1909, Page 10

MESSRS DALGETY AND C0.

MEETING OP SHAREHOLDERS. (FaOM OUE OWH CoaBESPONDENT.) LONDON, November 20. Yesterday, at the offices of the company, bh§ iwenty-iourth annual meeting of Messrs Etalgefcy and do. took pkice, Mr E. T. Doxat presiding. foe Chairman sutnmed tip the chief fagtors affecting the working of their business to SCtn June last a? follow : —The severe financial prieis last a,utiram in the United States, with 3, resulting scarcity of money and high rates of interest in Europe. $ severe clrQusfni in parts oj Australia, Jtfe/vv Zealand als6 suffering troip the same cause, ana a ije&Vy fall in pie value of wool tna most other x&vf jnaterlafe. The rise in the Vajue of money in the autumn did not materially affect the company, except through the contraction of trade which followed, and the fall in the .value qI

goods; but the effect on profits of this fall might be gauged by the fact that from the high rates ruling in September-October series of wool sales in 1907 the decline in November was 10 to 15 per cent., in January a further 5 to 10 per cent, in March a further 10 to 15 per cent., the lowest point being- reached «.t the opening of the May series, when the drop from, the highest figures of the previous autumn was 30 per cent, on nierinoes, 35 per cent, on fine crossbreds, and as much as 50 per cent, on coarse orossbi^ds. When it was considered that they sold annually some 300,000 to 350,000 bales of wool here and at the various Australian centres, the value of which might be roughly taken at about three and a-half millions sterling, it would ba clearly seen that a decline averaging during the whole season from Ist July, 1907, to 30th June, 1908, of, say, 20 to 25 per cent., or probably about £700,000, must nave told seriously upon the commission earned, and in addition to this the fall in wool led to largely decreased earnings in all stock and station business, transactions in face of the drought and falling prices having been much reduced. Since the 30th June, however,' the position (said the chairman) had improved, fair rains having fallen in Australia, while in New Zealand (with the exception of some heavy ,snow storms in the hill districts of the south, causing a certain loss of sheep), the conditions were now favourable. Wool had ' also improved in value both here and at the sales now taking place in Australia, and the tendency seemed in favour of a moderate further advance. Considering the details just related, the chairman thought the report and balance sheet very satisfactory, and the more 6o because very heavy supplies of wool and other produce — the commission on which would have gone to swell last year's profits — were, under instructions from shippers, held' over for realisation during the current half-year. Very ample provision had been made against all probable bad or doubtful debts; already several accounts, against which substantial reserves were made in the present balance sheet, had since been liquidated without any portion of such reserves being required. Many of the figures in the accounts showed a- very considerable increase, and, indeed, the trade of Australasia, showed such an expansion that they had to refuse of late a good deal of highly desirable business because resources were already fully employed, and it had occurred to the chairman more than once tihat in the interests of shareholders it might shortly be desirable to take some steps in the direction of increasing their capita!. — (" Hear, hear.") The items specially calling: for 1 attention were increases of £286<307 on bills payable and of £319,169 on liability on bills receivable^ under discount, resulting from a considerable increase in the volume of business both as regarded imports and exports. Sundry creditors and customers' balances, at £844,051, represented a large increase, but with the recent additions to the company's branches and agencies, the amounts both on the debit and. credit side must show larger figures. They bad on hand considerable sums awaiting investment and deposits and loans for fixed periods which had since in .many instances matured and had been paid off, and the produce held over had also now been largely realised, so that both that item and the corresponding one on the credit side under the head of advances would 'have been materially reduced. Investments in Government stocks, etc., showed a reduction of £108,274-. Those investments were made as a means of temporarily dealing with surplus funds for which at the moment no profitable use could be made, but during the past year they had been able to use to advantage in the general business the proceeds of the portion sold. Freehold and leasehold premises had increased by £50,551, such expense being required in order to conduct properly the ever-increasing business. They had found by experience that it waa unwise to build premises merely to cope with existing requirements, as the result had been that the inevitable extensions had had to be made at a considerable increase on what could have been done in the first instance. For the profit and loss account the only thing oaJling for notice was the fnorease of the expenses by £4988, and it was as well to mention that those expenses wera irrespective of those of the sub-branches whose returns were taken as net. Considering •that the expenses included those of the new branch opened in Auckland, and additions to the staif owing to increased business a£ other branohes, the additional amount waa not more than might be expected, and it included certain expenses consequent on the visit to this side of two of their coloniiai managing directors, and £1000 additional for colonial audits, "they had found it necessary to have every sub-branch carefully audited, and the wide distances to be traversed by the auditor* rendered the matter ifc costly one. In conclusion, the chairman moved the declaration of a dividend of 3o per share, with a bonus of 1 per q&nt. for the year ending 30th June last, both free of income tax, payable on and after the 26th imst. He also moved that a euro of £35,000 be added to reserve, £30,000 be appropriated! to writing down the cost of freehold and leasehold premises, £5000 to the staff benevolent fund, and £70,311 be carried forward. The motion was seconded) by Mr Phipps. Mr Ewer said shareholders would like rather more illuminative figures. When the question of increase of oaoftal came up, the liability would have to be reduced. Another shareholder said he considered^ that tjhe fact that the capital w&e £4-,000,000 ■ ought to be set out in the balance ebeet. tt merely showed the capital at £5 a share, £1,000,000. He ajso raised sopie points a* tp the form of the accounts, and said 'that in weir preparation it ought to ba remembered that the bulk of the shareholders were not chartered Aocouo/tante or financial authorities. The Ohainnan dealt with the points raiaed, ana eaia be thought the accounts made it clear ma& wicite the capital was £4,000,000; onjy £1,000.000 was paid up, and it was umxJerßfcood that with debenture* and debenture stock issued no call ooula be made on the shares excepting for tng purpose of ext-inguiahinsr oebepiures. T^ g.iy^ in the acooiutte all Qic information' which had beep afiioed for would mean publishing a mass <?t details, - and he -thought that would be ft uaeKes proceeding. The mptkxnj was unanimously carried], TnO Ohalirman moved the r^-slectioti of Messrs J- Doming, S. FaJrbajinj, and W« O. yiichrjet, the tfetjflng directors. He remarked that many of th© shareholders piesent fcftew those gentleinSp ger6oneliy, and ■vfoul<ll.fifreie that cjjujd; giQt b&Xb bettsr. meg, for $e_ positw^

T The motion was seconded by Mr A. P. Blake, amd unanimously agreed to. The auditors, Messis G*nard van de Linde, were also reappointed, aa»o\ in thanking shareholders for the re-election-of his firm, Mr Van de Linde said he could* only repeat what he had said on previous occasions as to the admirable wo>jl in which the whole of the accounts were kept and tha satisfactory manner in which they were sent over from the other side. All the returns were gone through by the directors, and good reserves were madte for bad! debts. In regard to anything of a dou/btfui nature, a resume was made at once, and, as the chairman had sbatsd, very often; such amounts turned out to good debts after all. With regard to the point raised as to the capital, he had not thought it necessary to repeat the £4,000,000 in tho balanoe "sheet, as it already appeared in tha statement on the front page of the report. Mr Evrer moved a vote of thanks to Hie chairman and directors. He remarked' that the year they had passed through had beem a rather arduous one, and they must hope for better conditions in the current year. The vote was unanimously accorded. In acknowledging tho vote, the Chairman agreed that the past year had been a trying one ; they could not .have a drop in the price of wool such as they had withou-fc its bringing great anxiety; but that waa all over now, and they oould look forward to an improvement. -As evidence of that < he would read a telegram that had been received from the other side. Tibe Nem Zealand portion of that message ran.: — "Throughout- the Dominion the country has never looked better. Ti»© lambing has been"exoellent. There is an abundant eupgy of food and water for the stookairyirog and frozen meat exports will ba large owing -to the good &3a60». Crop prospects ere favourable." That had just oome in, and he thought it fully confirmed! what he had 6aid about the season and th« prospects.