GROWTH DURING THE YEARS

Southland Times, Issue 23548, 30 June 1938, Page 13

GROWTH DURING THE YEARS

H. AND J. SMITH LTD,

ADDRESS BY CHAIRMAN OF DIRECTORS The establishment of the firm of H. and J. Smith Ltd., in 1900 and its steady growth through the years was described by the. chairman of directors, Mr J. W. Smith at the firm’s annual staff dinner. He also praised the work done by the staff and congratulated the company on securing his freehold properties. “I wish to tell you about the beginning of our business." said Mr Smith. “In 1900, my late sister and I planned the foundation of the business. Plans were carefully laid, introducing many new ideas to the commercial world of that time.” Mr Smith then outlined the policy of the firm, a policy which had always been kept to and which results had amply justified. One of the main points of the policy was this: “That we would be equally fair to our customers and our and also to all those from whom we bought.” Another point of the firm’s policy was that it must give many additional advantages to the public in extra quality merchandise, lower prices, and better service. The two other points of the firm’s policy were: That goods sold must be to the satisfaction of the pur-

chaser or the money would be refunded as pleasantly as it was taken; and that there be one price to all on the same day of purchase, marked in plain figures, the price always being the lowest. “We had a disastrous flood in Gore in 1913,” Mr Smith continued. “The loss in money was great, but the advantage gained in experience and knowledge was of immense value. This is what happened: I arrived in the morning about 6 o’clock and the whole staff was on duty without having been asked. Hundreds of volunteers also arrived to offer their services free. Insurance companies, against whom we had no claim, supplied all the glass, builders and contractors, repaired glass cases and so on. When I offered payment no one would accept it; the pleasure of being able to assist was all they sought. What an experience! Confidence and goodwill are much more valuable than money. The greatest asset in any business is goodwill.

“In 1931 the depression shook the world, but you will remember how successfully we clhnbed back to prosperity,” Mr Smith said. “TJie firm’s overhead charges, wages and other expenses were chopped to the lowest but with poor results. Here lay our secret: As all the property belonged to me, I simply reduced the use of my money to less than 2 per cent, The results were amazing. In less than a month we were back to profits once more, and you all know with what splendid results. The lesson learned is that adversity is the whetstone that puts the polish upon the jewel. “Now I wish to congratulate the com-’ pany on securing my freehold proper-

ties,” he concluded. “It places it in the proud position of being one _of the strongest private companies in this Dominion. The company’s organizations throughout the world have been greatly extended and highly developed in the last few years, enabling them to offer much better service to the publip. A look at our mailing orders will yjj-prise you at the volume of business now coming fross Otago Central and South Canterbury. There is truth in the old saying ‘He who serves best profits most,’ ”