DISCONTENT EXPRESSED

Sun (Auckland), Volume III, Issue 842, 10 December 1929, Page 10

DISCONTENT EXPRESSED

Traders Finance Company s Losses STORMY ANNUAL MEETING STROXG dissatisfaction with the position and prospects of The Traders’ Finance Corporation was expressed by shareholders today at the annual meeting in the Chamber ot Commerce rooms. . , Criticism and discussion from all quaiteis < was quelled after nearly an hour by the chairman ot direttors, who took vigorous exception to the remarks passed and invited the shareholders to pass a vote ot censure. 1 his not done.

When the meeting opened about to . shareholders were present. Mr. J. B. ; Macfarlaue, chairman of directors, presiding. In presenting the annual report and balance sheet, published in The Sun. he observed that the year had been a hard and difficult one. Unfortunately the company had been unable to prevent fraudulent dealing, which had been responsible for curtailing profits, although the accounts had been watched very carefully. He could assure shareholders that the balance sheet was a most conservative one and that the business was on a sound footing, but competition had been exceedingly keen and it was difficult to avoid a measure of risk. He could not promise anything tot the coming year, but he felt sure that the position would become a satistactory one to all concerned. Extra precautions were being taken to avoid double financing and the company would not be troubled with that m the future. . .. „ 111 seconding the chairman s motion that the report and balance sheet should be adopted, Mr. A. E. Warnock said that in some respects the year had been hard and disappointing, but a thorough overhaul had been made ana prospects were better. Mr. J. K. W. Harty, a shareholder referred to the writing off of £l-,000 in 1927 and £9,000 in 1928. He understood that about £6,000 -would be written off this year. Mr. Warnock: That is purely an assumption. ... . iq ., 7 Mr. Harty continued that in 19-. when the company suffered its severe loss shareholders were advised by the directors that it would be better not to prosecute and everything would be all right. They took the advice, but the loss continued. He knew it was easy to criticise, but he was very disappointed and the losses were veiS serious. The shareholders had under - stood that if they consented to the writing off-of 2£ per cent, on shaies all would be 0.K., hut the position was still very bad. The increase m the overdraft amounted to b ° u , c , There were a lot of bad debts, Wit the experience of the past the directo - should have avoided the rocks on to which they had drifted during the yeai ' BAD DEBT REFUND

■‘l cannot understand the increase of £6OO in expenses under the heading of furniture,” fie continued. Ot course I am speaking without firsthand knowledge, but evidently nothing has been written off and you seemed to have refurnished completely.” It was a pity he said that the directors did not take steps to get some refund on some of the bad debts that had been written off. The income-tax of £583 seemed out of all proportion. Concluding, he said that he could not congratulate the directors on the balance-sheet. M r. Emanuel claimed that it was

utterly impossible to make the business a success on the present turnover. Was the board going to call up unpaid capital and. if so, what was its hope of paying a dividend on tile fresh capital? Replying to the two speakers, the chairman said there was no intention in the minds of the directors of calling up the remaining capital. He agreed that the income-tax was a heavy burden, but that was the fault of the Government. As far as the business was going now greater care could not be exercised. Competition to lend money was very keen and he saw no opportunity of increasing the interest rate, though lie agreed that it should be increased, as the bank rate was high. He did not agree that the business could not prosper on the existing turnover. Referring to bad debts, he said that these were by no means done with, but the balancesheet had been presented in the most conservative way. DIRECTORS’ POSITION “I am sure that no director would be sorry to lose his seat on the board,” continued the chairman, in outlining the difficulties of the year. “We are actuated purely with the desire to see the business on a proper and satisfactory footing. The honorarium we receive is ridiculously small compared with the work that lias been put into the business.” Another shareholder asked why it was that the Guarantee Corporation did not have the losses that the shareholders in the Traders’ Corporation were facing. He was manager of a City firm, and if he showed a loss for three seasons he knew where he would be. lu reply to a question the chairman said that the shares today were worth 7s 6d on their face value. He knew nothing of the affairs of the Guarantee Corporation. Answering criticism by Mr. F. A. Garrett, the chairman said heatedly: “I am not going to sit here and listen to any more of this abuse. If you think” (this to the meeting as a"vvhole) “that you can run this business better than we are doing, push us out. I have never been spoken to like this before. The members of the board are honourable gentlemen and there is nothing underhand about the methods we have employed.” Mr. Garrett took exception to his remarks being construed In the way taken by the chairman. There was nothing personal in the remarks he had made. The chairman undertook on the request of Mr. Garrett to supply a report at the end of six mouths. He then put the motion dealing with the adoption of the report to the meeting. This was carried and on the motion of Mr. Harty, the retiring directors, Messrs. H. T. Goldie and S. J. Harbutt, were re-elected. The meeting then closed.