COMBINED BUYERS, LIMITED.

Poverty Bay Herald, Volume XLV, Issue 14787, 14 December 1918, Page 7

COMBINED BUYERS, LIMITED.

REPORT OF ANNUAL MEETING.

The Annual Meeting of the Company was held at the Chamber cf Commerce roorr.s., Featherston street, Wellington, on Friday, 29th November, 1918. Tho chairman of directors, Mr. W. S. Bennett, occupied the chair, and there was a fair attendance of shareholders, including Messrs. R. S. Abraham and G. A. Wallis, directors. In moving the adoption of the report and balance-sheet the Chairman contrasted the conditions now prevailing with those that existed on the occasion of the last meeting of shareholders, and paid a tribute to the Allied forces on their triumph over the Central Powers. He specially eulogised the part played by New Zealand throughout the war. Dealing with the affairs of the Company, the Chairman congratulated share<holders on the result of the year's transactions, which showed a net profit of £524 11s 6d after providing for all ordinary and special expenses and all contingencies. It was a further source of gratification that the Company had undoubtedly justified its formation, to the fullest extent. Notwithstanding the strenuous times, the abnormal trade conr ditions of the past year, and the Insistent opposition of the trade, the turnover had shown considerable expansion over that of the previous year. They had been able to maintain more than a sufficiency of stocks of tyres and tubes and had also secured large supplies of accessories, thus enlarging the Company's usefulness to shareholders at rates considerably below the ordinary prices levied by others. As forecasted at the last annual meeting, Mr. Stephens, the Managing Director, visited America during the year, and.notwithstanding that it wag a most Inopportune time by reason of war activities on that side, the visit was fully Justified and the board was satisfied, that good business would result. It was found that manufacturers and others were only too anxious and willing to trade with the company and no difficulty was anticipated m continuing and extending the service to shareholders. The company had accepted the- Dominion agency for the "Paige" car, built by the P,aige Detroit Motor Car Company, and by repute quite equal to the "Buick," arid It was anticipated that these cars would be available to shareholders at a .very reasonable rate compared with present ruling prices. The first shipment will arrive , at any moment. Supplies of lubilcating oil have been arranged, for, and the first two shipments are now on the water.

At 30th. September, 2498 shareholders were allied to the Company. The Chairman took the opportunity of pointing out to shareholders the advantages; of trading with the company to the fullest extent of their requirements. He] appealed to members to further help by interesting others m the company. Running costs of cars ami other ny>tor vehicles would bo appreciably reduced by .members placing the whole of their orders for tyres, tubes, and accessories with the company. Only a very small minority at present failed to do so. . He hoped that this disability, sirfill though it was, would shortly be overcome.' In <jealing with the Balance-sheet he drew attention to the very satisfactory increase of £64,482 10s m the subscribed capital, notwithstanding that the^past year had. not by any .means been at all favorable for the sale of shares m commercial undertakings. Sundry creditors had increased by £983 5s 7d, attributable to the larger commitments by reason, of the increased business now being transacted. The assets exceeded direct liabilities by £96,647. | _ By the purchase of a site at Taraiiaki Street, Wellington, for new premises/ theProperty Account showed a large! increase, but the purchase was a goodj one and provided an area sufficient for 1 all purposes. Unfortunately, owing to ' the shortage of steel, the board had \ not been able to place before shareholders their proposals regarding the building, but the preliminary plans are displayed for inspection. The stock showed a large increase, now standing at £46,---109, but stocks must expand m conformity with the expansion m the share list. Sundry debtors showed an increase of £5094, attributable to the larger share list, and all of which may be considered good. Cash on deposit and at short call stands at £21,500, and which will be absorbed m due course. Investments m New Zealand war loans stand at £5000, of which it is proposed to allocate £3000 tea reserve fund. The Working Account speaks for itself, but the. Chairman emphasised that the! whole of the expense of air.. . Stephens'] visit to America had been provided for,! together with all expense appertaining to the sale of shares. Having regard to the fact that the full benefits of both will only be apparent m the future, sufch anight reasonably have been spread over a period of years, but the board deemed it best to provide for the whole amount at this junoture. The Chairman then paid a tribute to his colleagues on the board, the Managing Director, and the staff of the Company, for the,ir good work during a strenuous year. I After dealing with the figures appeai*ing m the Appropriation Account he moved: — "That the Report and Balance-Sheet now read be approved and adopted, and that of the amount £3882 12s 4d standing to the credit of Profit and Loss Appropriation Account, £3000 be allocated to the establishment of a Reserve Account, £166 18s to writing, down Goodwill and Fittings Account, leaving £716 14s 4d to be carried forward."

Mr. R. S. Abraham, m seconding the motion, remarked that although usual for a shareholder to do so, he, having regard to his knowledge of the Inner workings of the company, felt it would be more satisfactory ' that this duty should, devolve upon him. He fully concurred with the Chairman regarding the disabilities and- troubles with which the Company had been faced, and which had no doubt prevented still further progress. Nevertheless he felt gratified, not only as being: the previous Chairman of the Company, but because when he accepted that position he saw the great possibilities ahead and the necessity that existed for the establishment of sucH a company. Notwithstanding many disabilities, including the influence of "the trade" against the Company, staff troubles, etc., the company had still been able to put before shareholders . a bal-ance-sheet which does it credit and shows great promise for the future— provided the, Chairman's appeal for the loyal support of all shareholders is responded to. There was one point which appealed to him— that was the disability of the country shareholders m having to obtain their supplies from Wellington. Although certain improvements had been made, the Company had not yet been able to make arrangements for representatives m all the large towns of the Dominion, but he assured shareholders that this would came m due course, and would thus supply a Want that is at present felt by members. Mr. Abraham then paid a tribute to the work performed by the Chairman m the interests ' of the shareholders during the year. He himself had relinquished the position, realising that living away from Wellington he could not keep that control which was necessary. He congratulated himself on Having selected the present Chairman to succeed him, and could not understand how the Chairman had goj, .through such an enormous amount of work. fie knew something of hlni m other capacities, but despite those arduous duties he had responded to all' calls m an eminently satisfactory manner.. This, he thought, should be fully realised. It was also a matter, for congratulation that they should have a man of Mr. Bennett's standing and calibre to direct the affairs of ,tUe eprnpany. Mr. R. D. McKenzle, Masterton, inquired as to whether an active canvass for increased capital was being conducted, and also as to whether copies of the prospectus were procurable. The Chairman replied m the affirmative, and remarked that all demands for the prospectus, had promptly been responded to. Mr. McKenzle also drew attention to the absence of any reference to possible dividends. Although fully' realising that shareholders were receiving a' very substantial dividend m the reduced cost pf supplies, he inquired the intention of thej board regarding the payment of a dividend m they future. The Chairman could' not speak as regards the policy of future boards, ,but

that of the present board was not to pay dividends, but to reduce the cost of goods to shareholders whenever it was found that the present added percentage was returning an undue profit. (Hear, hear.) Every effort . would be made to conduct the business on a lower percentage and thus reduce costs to shareholders, thereby giving the dividend to the shareholder that did his business with the Company. (Hear, hear.) Mr. Partridge congratulated the board on being able to bring down such a satisfactory statement He was perfectly satisfied with the position and felt that the board was to be congratulated on their eminently good work. Having regard to the manner m which the difficulties of the past two years had been overcome, he looked for still greater success, but felt that it was unreasonable for shareholders to expect dividends. He was well satisfied with the present policy. Mr. Brice inquired regarding the item "Goodwill and Fittings." He had no objection to the writing down of fittings, but inquired as to the reason for not dealing likewise with goodwill. In reply the Chairman explained that the goodwill repvesentert £iooo actually paid to the vendors of the old business, and that it was the intention of the board to get quit of that as soon as possible. They did not feel justified m asking the shareholders to do anything this year, but gave an assurance that it would have attention at first opporunity. Mr, Johnson drew attention to the amount expended m salaries and travelling expenses, but the Chairman pointed out that such included the whole of tho expenses of Mr. Stephens' visit to America during an absence of six months, together with the total amount expended m canvassing for the sale of shares, m addition to travelling expenses. Against the latter they had, of! course, the premium on the strares, but they were compelled to show the former! m the Working Account, and the latter m the Capital Account. The motion for the adoption of tho Report and Balance-sheet was carried unanimously. The retiring Director, Mr. "\V. s. Bennett, was re-elected, and Mr. H. Ivor was re-elected Auditor at an increased fee. A hearty vote of thanks to the Managing Director and staff was carried by acclamation. The Chairman, m returning thanks for his re-election, assured the shareholders that their interests would be very care- 1 fully watched, and. he trusted that at the next Annual Meeting the board would be m a position to place, a still more satisfactory statement before them, j He again alluded to the proposed new j building and invited suggestions from shareholders on the plans. Shareholders would be called together for their approval of the final plans before the work was proceeded with. After a vote of thanks to Iho Chairman, the .meeting terminated.^