D.I.C.

Wanganui Chronicle, Volume LXXVI, Issue 18329, 12 November 1921, Page 8

D.I.C.

ANNUAL MEETING. A DIFFICULT YEAR. The thirty-seventh annual meeting of shareholders in the Drapery and General Importing Company was held in the New Zealand Express Company’s board room, Mr E. I. Halsted (chairman of directors), j presiding over a good attendance. CHAIRMAN'S ADDRESS. In moving the adoption of the mnual balance-sheet, a summary of which has already been published, .he chairman stated that for many years past the directors had been able to meet the shareholders of the company at each annual meeting with satisfactory balance-sheets enabling them to recommend the payment of reasonable dividends, to add steadily to the reserve fund, and to make other necessary provisions. This year there was, unfortunately, a break in this pleasant record. It. had been the fashion in the press and amongst the general public to brand the drapery trade with having asked unduly high prices and made unduly large profits of late years. Certainly the trade generally, owing to the large turn-over, but not to any abnormally high profits, had done very well, but it was a poor look-out for any firm which had not utilised these profits to make the fullest possible provisions for the inevitable set-back. These provisions, and more too, were wanted in the present rainy days. He could say emphatically that never during the period of rising prices did the drapers of New Zealand follow the English markets or raise their prices until compelled to do so by the receipt of goods bought at a higher range of prices: and right through, many lines of every day household requirements were consistently sold at lower prices than they could be replaced in the British markets. What a different tale when prices began to fall at Home. Scarcely had the news of the fall reached here—certainly long before any goods at the lower prices could be landed — prices began to give way, and before long all the company's branches were selling goods based practically on the lowest values then procurable in England. The result was that, during the second half of the company’s financial year, it was selling almost without any gross profit with which to pay for its tremendously heavy expenses. Then at stocktaking the whole of the company’s stocks were most carefully reviewed and written down to correspond with the latest English quotations. Selling prices had been correspondingly reduced and the public was receiving the benefit in all departments of these latest values. Postage, telegrams, freight, advertising, lighting, municipal rates, and many other items were all much heavier, and were beyoud control. The incidence of the heaviest item 1 of all, income tax, he would not ati tempt to discuss to-day, but while the Government remained a partner | in any business to the extent of say, 10/ in the £l, it was practically impossible to expand or to extend operations. In November last the Wellington branch of George and Kersley was amalgamated with the company’s Wellington branch. The premises adjoined one another and they had i been connected by openings, and formed now a fairly homogeneous ! whole. The late George and Kersley frontage to Lambton Quay had long been coveted by their Wellington manager, and he was glad to say the possession of it had proved a most valuable asset and had greatly helped to maintain and push business ahead. The Wanganui branch of George and Kersley was taken over in February, when Mr Hassall, lately assistant manager in Dunedin, was appointed to take charge of this, the fourth branch of the D.I.C. The Wanganui premises were thoroughly up-to-date and commodious, and the new branch, in spite of the present difficult times, was quite fulfilling expectations. The directors had every confidence that it would prove a valuable addition to the company’s business. The company’s Christchurch warehouse had been known as one of the most commodious and up-to-date drapery establishments in New Zealand. Extensive alterations and remodelling of departments had been in progress for several months past, including many new features for the convenience and comfort of customers. When all was complete he was confident that though there were larger warehouses in Australia there would be none more attractive to the public. In conclusion, the chairman referred to the exceedingly anxious year which had been experienced by the company’s managers and staffs. They have passed through a trying period, and he could only say that the company was fortunate in possessing such well-tried men as its managers—men in whom the directors reposed the utmost confidence. They are well backed up by loyal staffs in the warehouses and offices. He had much pleasure in moving the adoption of the report and bal-ance-sheet, and the payment of the dividend on preference shares.