FARMERS’ TRADING

Taranaki Daily News, 13 December 1932, Page 3

FARMERS’ TRADING

COMPANY’S OPERATIONS. LOSS OF £3289 FOR YEAR. Palmerston N., Dec.-. 10.■ ■■■ The New Zealand Farmers’ Co-opera-tive Distributing Company, Ltd., one ..of the largest ’, concerns in the Wellington Province, .ended its year’s- operations with a loss of £3289 after showing a net profit of £15,527 for the previous year. These facts were revealed, at the annual -meeting-, of shareholders held- at Feilding yesterday. The.chairman. (Mr. T. Currie), in his annual review, considered the company was fortunate in showing so small a loss, considering the difficulties encountered. “Owing to the continued fall in prices for. all primary products, with , the resultant lower earnings- in the commission -.departments and reduced profit from the . trading departments,” he said, “our revenue has steadily declined until, despite economical: management, it was impossible to balance our budget.: The balance-sheet shows that the total , subscribed capital at September 30 was £157,098 18s,, of which £135,680 19s Bd, including amounts paid in advance, was paid up, leaving a balance uncalled of £23,679 17s 6d, of which £4lll 7s 6d has been paid in advance. Calls, in arrears amounted to £849 8s 4d, oompared with £943 outstanding at last year’s balance. Our reserves stand at £15,339, compared with £15,237, and the reserve for bad and doubtful accounts has . again been preserved intact.”, Ih spite of' the economic depression, he continued, the company had maintained its sound position, its liabilities amounting to £70,953 and. its assets to £222,181, giving a surplus of. £151,228, against a paid-up capital of £133,680. Expenses had been’materially reduced in recent years, but there was a limit beyond which it was difficult to go without loss of efficiency. However, certain adjustments were being made by which It is hoped still further savings would be effected.

The net result disclosed was a loss for the year of £3289, said Mr. ■ Currie. There was, however, a- credit .of £2910, brought forward.from the

and with this : taken into account, and . . after providing £1230 now depreciation of ’ properties, ’ the posit^n ; < wuold be that the company woifld-carw s? S forward a debit 0f.£1608-; in the -prog .. - and loss appropriation account. wnax ... with the continued disastrous fau.- m prices for primary products, the general financial ’ stringency, and able outlook for the forthcoming ■ trading conditions had been _and were > likely to be most difficult. In. view of this it was considered prudent to adqpt - a conservative 'policy in not'onjy making • full provision for all ascertained-’ ; debts but also .ih providing:a. substantial amount for possible future' losses, at the .’ same time leaving the reserves intact. Tn addition ; it was thought 5 wise -to bold ; in suspense a large amount■ of' interest accrued on farmers’’ but, it was , difficult’to estimate' what portion .of this would be eventually recovered.-’