AN IMPROVING OUTLOOK.

Wairarapa Age, 8 October 1936, Page 4

AN IMPROVING OUTLOOK.

POSITION OF THE W.F.CJL LTD. MB. a M. BOWDEN'S SUEVEY. ADDEESS AT THE ANNUAL MEETING. Moving the adoption of the annua) report and accounts at the annual meeting of the W.F.C.A. Ltd. yesterday, the chairman of directors (Mr. C. M. Bowden) congratulated shareholders on the improving position of the company. 11 The proposals for rearrangement of capita], announced last year/* he continued, * ‘having now been given effect, there are considerable changes in the balance sheet figures this year, as compared with last. The debit balance of Appropriation Account has now been reduced to manageable figures and we can look forward to the time when th© account will' actually be in credit. The generosity of preference shareholders has enabled us also to eliminate an item which was reaching large figures, namely, ‘dividends in arrear.* As they have further generously agreed to Reduce their cumulative rights in future to 3 per cent., and as this right dees not commence to accrue until August 1, 15138, by which date the company’s position will have shown further substantial improvement, I hope that dividends in arrear will never again appear ,in <mr balance sheet. (Hear, hear),]

“Under the arrangement entered into, the preference shareholders are to appoint two directors, and the first election will -be taken later on this afternoon," Mr. Bowden continued. “Though appointed by the preference shareholders, these directors will not represent them only, but with other members of the board will bend their energies to the general advancement of the company's affairs. You will note that the board has again pursued a cautious policy. As mentioned in the directors' report before you, certain sums have been carried to reserves, which you will agree to have been wise. Adequate provision has been made for possible losses in book debts, particularly bearing in mind the legislation which has recently been passed. Stock-in-trade, plant etc., have all been conservatively valued, and all contingencies provided for to the best of our knowledge. We wished our new General Manager to be satisfied with the basis on which he was taking over the management of the company, and you also, as shareholders, may place reliance in the balance sheet before you. The figures will prove to you too that the company still has substantial earning power, and we hope will go on to further success. Ido not think it necessary to weary you by comparing every item in the balance sheet with those of previous years, but I would direct your attention to the improved liquid position. As mentioned in the report, the bank indebtedness was reduced since last year, by over £11,700 —and over the past 5 years by upwards of £47,500 — and this is after repaying, during the year, mortgages of over £4,000 on certain properties. Improvements in the company's financial position, of course, will bring relief in the interest charge, which is a heavy item in the company’s expenses. You will notice that the Profit and Loss Account is set out somewhat differently this year, and in this form will in future give you more information as to earnings, and expenses of operation. The change renders comparison with last year's figure less easy on this occasion, but this disability will disappear in future years. INCREASING SALES. “Despite the loss of seasonal trade in certain departments through the abnormal weather conditions prevailing during the year, sales show an increase at nearly all branches, and in the majority of departments or sections. During the current y.ear, special efforts will be directed to building up turnover in the weaker departments, and a standardisation of service and expenditure which should make for improved results. The current year will not be without its difficulties. Increase in the rate of land tax will cost ns £1,391 extra, as we have to pay six times as much as formerly. The new wage schedules will add at least £6,000 to our wages sheets. At most points we shall be called on for increased rates. However, it is claimed that the increased spending power given to the people generally, will bring about such an extension of business as will enable us to recoup our increased expenses of operation. We hope this prediction will prove well founded. The company is interested also in the outcome of the petitions presented to the Government and now being heard by the Parliamentary Committee praying for the licensing of chain stores. The system of licensing asked for would impose an intolerable burden on departmental stores such as our eight branches com-, prise, as the fees proposed are to increase at a progressive rate for each branch or department. Steps will be taken to protect our position and to make such representations as seem necessary to conserve the company's interests. I think we need not fear anything unreasonable being done by the Special Committee which is hearing the petition. SHOP IMPROVEMENTS.

I might say a few words regarding the company's premises, as certain expenditure appears in this year's accounts. The board is seized of the importance of making the company’s shops attractive, and during the past few years has spent money at each of the branches, which was charged to revenue each year. In this way, improvements have been effected at Masterton, Dannevirke, Pahiatua and Eketahuna, with minor alterations at Grevtown and Martinborough. During Inst ?. a nr S iv Btantlal alteration » were made at Wellington and Carterton and as these were in the nature of capital improvements, it was decided to spread t i C j S j ° f the WOrk over years. Included in the sum was the cost of a new hft, replacing one which had done duty for 2o years. It might, be mentioned m passing, that the tenants of the upper floors in our Wellington warehouse, also have installed a. lift, at their own cost, so that the building is now much better served than before Alterations in lay-out at several points are now in contemplation for prosecution during the coming summer. You may be sure that the board will try to have our premises in all the towns where we operate, up to date and attractive. During the present year the board proposes to revise the company’s Articles of Association, which, having been drafted in 1892, are out of date and not in line with legislation of later years. A complete set of revised articles will be submitted for your approval in du© course.

NEW GENERAL MANAGER. I have left till last an important duty that is to introduce to you our new General Manager, Mr. J. H. Cunningham, who took office in July, on my retirement from the position of Managing Director, after 8 years in that capacity. As you probably know, applications for the position were called in February last and we were honoured by receiving replies from all over New Zealand. Amongst the applicants were men of wide experience and proved ability in various fields. After much careful thought and anxious deliberation, your board unanimously chose Mr. Cunningham for the position, and it was a satisfaction to us to see him eventually installed in the managerial chair. Mr. Cunningham for 32 years had been in the service of the N.Z. Farmers’ Co-op. Association of Canterbury Ltd., with headquarters in Christchurch, having graduated through various branches and capacities to the position of Chief Accountant of that very large company. At times he filled other executive positions in their service. and gained accurate knowledge of the financial and trading policy of a company of similar nature to this association. That knowledge he brings

over to the service of your interests. On your behalf, I extend to him a welcome to the Wairarapa and all good wishes for many happy years of service with our company, to be crowned with success acceptable to both you and himself.” (Applause.)