GEAR MEAT COMPANY

Taranaki Daily News, 19 December 1931, Page 15

GEAR MEAT COMPANY

RECOVERY.DURING YEAR. ' INTEREST FROM INVESTMENTS. Satisfaction with the results of the. year’s operations was the. keynote of the proceedings at the annual meeting the Gear Meat Preserving and Freez-. ing Company, Limited, at Wellington on Thursday. ■ . In moving the adoption of the report and balance-sheet, the chairman of directors,- Mr. A. Strang,, said the balance-: sheet showed a reasonable though by no means excessive profit on the company’s transactions of the past year. The reverted to its traditional position in that,,-respect after. the unique experience of the meeting last December. . The company’s permanent investment In Government stocks had been increased by £21,080, and now stood at £324,730 face talue, and an addition from profits to the marine, fire and accident reserve fund brought that special reserve to £12,000. Shareholders would realise that owing to the conservative action of the company in the past they had investments which were bringing in considerable income, continued the chairman, and it was mainly due to that source and the sale of exchange that they had been able to show so satisfactory a balance-sheet. Had : they had to rely solely upon their stock purchases the result would not perhaps have been considered quite so satisfactory. Stocks at works and on consignment constituted the only item dependent on realisation, and the directors had every reason to feel assured that the amount appearing, £116,6’89, was a safe estimate, of the sum which would be received as sales proceeded. Shareholders would oe pleased to learn that the board had not found it necessary to make very heavy reductions in salaries or wages of the staff and permanent servants of the company. The directors desired to express their appreciation of the Joyal service rendered by all throughout the past two exceptionally difficult years. Sir Francis Bell, in seconding the motion; congratulated shareholders on the traditionally good balance-sheet. The previous-year’s results had caused very great distress to the directors—more, indeed, than could have been felt by the shareholders. He wished to em-. phasise that of the 10 per cent, dividend a good proportion was derived from the company’s perriianent investments in Government stocks and not from the business. The capital was not solely the £460,000 in shares, but had added to it a great sum in economies made in the past. His first point of gj’eat importance was that the company was not making anything like 10 per cent, out of the farmers—nothing of the kind, said Sir Francis. A second point was that the reserves shown did not 'include that created by the whole of the company’s properties appearing in the balancesheet at £57,00.0. There was a great sum invested in Government stocks and also £loo,ooo' in dish.