FARMERS' TRADING CO.

Waikato Times, Volume 97, Issue 15276, 28 June 1923, Page 4

FARMERS' TRADING CO.

THE ANNUAL MEETING.

REVIEW BY CHAIRMANWEATHERED THE WORST. \. " The business done during the second six months showed an increase of £112,136 over the business done during the same period of the previous year, and that rate of increase, 1 am glad to say, has been fairly maintained during the months of April and May," stated Mr James Boddie, chairman of directors, at the annual meeting of the Farmers' Union Trading Company on Wednesday, where there were between 120 and 150 shareholders present. The balance-sheet showed that the company had made a loss of £26,374 on the first half of last year, and in the second part of the year had made a net profit of £21,110, which had reduced the trading loss for the year to £5264. In addition to that the stocks had been written off by £69,169, an amount of £IO,OOO had been allowed for bad debts, reserves, and £1961 stated for land tax, making a total of £144,400 to be carried forward on the debit side of. profit and loss account. The Capital Account. In moving the report and balancesheet Mr Boddie said with the net profit of £21,110 on the second half of the year, and given a continuance of the payable prices received for farmers' produce, with the present low costs on stocks in hand, he felt that the future prosperity of the company was assured. He rejoiced in the announcement by the Prime Minister that the income tax on companies was to be reduced. It was also his opinion that the present arrangement for the lifting of the moratorium vyas the beginning of better times for the farmers, and for this company. Dealing with the capital account Mr ■ Boddie pointed out that there had been little increase of the capital during the year. Some 2055 shares had been added, and £10,770 had been paid up, leaving the total subscribed capital at £590,260, paid-up capital at £489,165 and uncalled capital at £81,379. That, considering what the times had been, was fairly satisfactory. But, in view of the fact that the company had had to raise considerable sums of outside capital, much of it at high interest, ho considered steps should be taken toj call up the £81,379 uncalled capital, plus the £19,715 unpaid calls, to relieve the company, of interest payments by the outside capital. It was a matter the board of directors must consider in the immediate future, and just so soon as the directors considered the time opportune they ■ should go out for £IOO,OOO additional capital. Fully Bft per cent of the shareholders had less than 10 shares each, so that it could cause little, if any, individual hardship to increase the capital, while there were new settlers continually, arriving who desired to take up shares. "We have weathered the worst economic upheaval ever experienced in the history of the race," stated the chairman in conclusion. "It caught us ill-prepared in many ways, and wo might easily have gone down before it, so many things were against us; yet, in spite of everything, we claim that the stability and usefulness of our organisation is unimpaired, and that so soon as prosperity returns to our' individual members so that they shall be able to take up their share of the burden, prosperity will be immediately; reflected in the affairs of the company."

In a fairly lengthy discussion, the chairman stated, in reply to questions, that the flotation and goodwill expense items, had been reduced from £44,000 to £24,000, and would have to be carried until the profits could wipe them off. The amount of sundry debtors represented only nine weeks'business of the company, or aboufc £ls per head of the shareholders, and much of it was represented by, sales on time payments, in which thd debtor carried the load of interest, Mr J. ri. Hannan stated that he felt it a mistake to permit the holder of a £1 share to be a director and suggested that a director should havo 500 shares as he would be protecting his own taoney.

Mr H. W. Hudson suggested that the credit system position "was not as optimistic as the chairman considered it, for the sum on the books had risen since 1921 from 3s 6d in the £ to about 18s 6d in the £.

"Is it true the company contributed £3OOO to the last prohibition campaign?" asked a shareholder. —There; is not a scintilla of truth in that," replied the chairman. "All contributed in that way would be covered by £53."

The adoption of the report and balance-sheet was unanimously carried.

Messrs J. H. Hayward, E. Somerville, and Captain F. Colbeek were reelected directors, and Mr T. E. Whitton was re-elected auditor.

A shareholder moved that the company cease advertising, and, thomotion being seconded pro forma, it was put to the meeting and lost, only the mover supporting it.