COMBINED BUYERS' LTD.

Rangitikei Advocate and Manawatu Argus, Volume XLI, Issue 11418, 22 December 1917, Page 2

COMBINED BUYERS' LTD.

REPORT OF ANNUAL MEETING The annual meeting oi' tin's Company was held at the company’s preinisea, in Dixon street, Wellington, on Friday, November 30th, 19IT. There was a fair attendance of shareholders, and Mr R. S. Abraham occupied the chair. In moving the adoption of the report and balance sheet, the chairman congratulated shareholders, firstly, on the formation of tho company, which is designed to on able shareholders to carry on what has now become an ordinary necessity in our daily life ot a fair and reasonable cost; and secondly, on tho fact that the c:p-;> c :il show a substantial pro;;. :or its first year’s working, which is < Uir indieition that tho overhead co-d of running the concern will hr sn; 'll, thinks to the large number of si i r ell old ers allied to it. Ai tin; s.time he paid a well-

earned tri he to to 11m managing director and ;tic. who hud devoted themsovles wnb n’••ceasing assiduity to the interests of the Company. It was, however, the intention of the board to provide their manager with good assistance, and they bad arranged with Mr Charles Morris, for many years connected with the firm of Messrs J. B. Clarkson and Co. r Ltd,, to take up the position of organising secretary. The chairman referred to the difficulties which a concern of this nature has to fac, partly owing to the war, partly owing to the opposition of vested interests, and in some measure owing to interior troubles through tho articles of association being badly drawn up, and some want of care which hud been shown by some of their canvassers. These troubles had now been safely got i over and need cause no anxiety if the shareholders will pull together, the real trouble being the war, which has seriously interfered with importations and arrangements for all motor requisites. Tho chairman thou briefly referred to the articles of association, which, under arrangement with himself and other directors, with the object of getting rid of some objection ible features, had been submitted to Mr Skorrett, K. 0., as it was on that condition he had joined the board. Tho necessary alterations have been made, and his second condition also carried out, viz., that the chairman should bo appointed from the shareholders’ directors. Whilst he had accepted tho position as a temporary measure, lie was very pleased to say that Mr W. S. Bennett, manager for Messrs Dalgety and Co., XAd., had now joined the board, and would take the chair for the current year. Mr Bennett possesses qualifications which admirably suit him for the position, and the company are to be congratulated on obtaining a man of his calibre to take the reins. In referring to the balance sheet, tho chairman said that the company held an excoptionaly strong position. The shareholders numbered over 1400, and assets exceeded direct < liabilities by £40,000. The company had invested £3OOO in War Bonds, whilst cash at short call was ample to provide for con* tiugeut liabilities. Premiums on sb ;res sold amounted to £1933, which had enabled them to wipe off the whole of their preliminary expenses and carry forward the sum of £4)98 10a lOd.

Referring to the supply of, motor requisites the chairman pointed out that at present they were practically confined to tyres, of which they held a heavy stock of good quality It was, however, their intention to send their manager shortly to America, where they hoped to make arrangements to supply everything that is necessary, on advantageous terms for shareholders. The chairman conculded by expressing his belief tliat the concern only wanted careful management and the loyal co-operation of its shareholders to enable it to amply fulfil the work for which it was formed. The motion w r as seconded by' Mr James H. Stevens, of Palmerston North. In the course of his remarks Mr Stevens asked for information as to the value of the Dixon street property, which was put down at £5900 in „the bul -nee sheet. He also wished to know whether the naki street mortgage showed a good margin. He further referred to the stock standing at £15,196, and asked if this was based on the usual landed cost price. Mr Stevens alluded to the item of £3OOO for sundry debtors as being extremely satisfactory, as also the amount due to sundry creditors. He Said he no doubt the company was fulfilling a very good purpose, and instanced a heavy saving lie had made on tubes of good quality. He congratulated the company on the excellent work accomplished by the directors. The secretary, in reply to Mr Stevens, said that the Dixon street property would command a market value of a. least £7OOO, and they had offers of a £IOOO over cost price. In regard to the Taranaki street mortgage, that there was good margin, and the values of stock held were based on nett landed cost, though since landing they had appreciably increased in value owing to the rise in the market.

The chairman also bore out the secret a-y’s statements, and said that in the discussion with the auditor and banker of the company he had amply satisfied himself as to the value .of the securities held. He further read a report on the method of costing, and a general reference to the accounts made by his own secretary, after thorough investigation, which was in every way satisfactory. >v Messrs Liardet and Dr. Faulke referred to difficulties in the way of obtaining copies of the articles and prospectus. The chairman admitted that the board, before its reconstruction, h-d hardly considered shareholders in this respect, but he pointed out that, the articles were now being considered by Mr Skerrett, with a view to important alterations in the interests of shareholders. as soon as these were completed, shareholders would be asked to consider them. In the meantime they can get copies of the present articles on application to the secretary. Mr Goss, of Marlborough, complained that he was compelled to t:<ke five shares whilst others h-d only t-iken one. The chairman pointed out that originally the company allowed shareholders to coma in on one share, but the present board had made the lowest limit three shares, iu cases where a m-»n only held ». very small car.

John Smith, of Wellington, con- ! gratulated the company on having had a successful year, and took occasion to pay a well-deserved tribute to the managing direcor, Mr Stephens, for Id's unfailing courtesy and his zeal in sparing no efforts in the interests of the concern. Mr Murray, of Marlborough, questioned the advisability of writ-ing-off the whole of the preliminary expenses. The chairman pointed out that preliminary expenses were a very doubtful asset, and he considered that the sooner they disappeared from the balance-sheet the better. The report and balance-sheet were adopted by unanimous vote. Mr Beunet returned thanks for his election as a director, ‘and mentioned that it was only after careful inquiry and consideration that he agreed to accept the invitation to join the hoard. He was very much impressed with the future prospects of the company, and felt sure that given loyal support by shareholders, it would fulfil all the objects for which it was formed. He agreed with the chairman in regard to the wisdom ot providing at once for the preliminary expenses. Ho assured tho shareholders that his best endeavours would bo used in the interests of the company. Mr James Cow, of Canterbury, stated that he was one of the first con tribnting shareholders of tho company, and the first shareholders’ director. In his opinion the company had amply .-justified its existence, and lie had already made heavy savings on his tyres. He felt sure that when ; times were normal and the coinpaii3 r extended its operations in other branches of the motor trade, that tho benefits would bo materially increased. Whilst it w«s a long way for him to come to attend meetings, he was quite satisfied to do aq in the interest of the Southern shareholders,; and further, that he was quite sure the concern would be well managed by the present directors. Mr Maiithcl thought that the prospectus should be more accessible to shareholders —should bo more freely distributed —but he considered the position of tho concern was entirely satisfactory, thanks to the untiring efforts of the management, and he moved that a heirty vote' of thanks be accorded to the directors, managing directors, and staff, which w«s seconded by Mr Smith and carried with acclamation. After a vote of thanks to the chair, tho mooting terminated.