OUTLOOK BRIGHTER

Waikato Times, Volume 118, Issue 19699, 5 October 1935, Page 11

OUTLOOK BRIGHTER

TRADE CONDITIONS IMPROVING FARMERS’ CO-OPERATIVE AUCTIONEERING CO. ANNUAL MEETING OF SHAREHOLDERS. A very successful year was reviewed at the 28th. annual meeting Of shareholders in the Farmers’ Co-operative Auctioneering Company, Limited, which was held in the Winter Show Hall to-day, the chairman of directors, Mr E. M. Edkins, presiding. Notwithstanding the rigours of the past season the company has maintained a strong position, and prudent management of its affairs has been reflected in the continued progress made in all departments. Reference to the brighter outlook was made by the chairman, who said there were indications of a betterment of conditions for farmers generally. The company has, of course always paid a preference dividend, and is doing so again this year. The ordinary dividend which was resumed last year after an interruption caused by the depression, will again be paid, at the rate of 4 per cent. The net profit of £33,385 represents a slight Increase on last year.

STEADY PROGRESS. THE YEAR REVIEWED. NET PROFIT SLIGHTLY HIGHER STRONG POSITION OF ASSETS. In paying a tribute to the late chairman, Mr Walter Seavill, at the annual meeting of the Farmers’ Auctioneering Co-operative Auctioneering Company, Limited, to-day, the chairman of directors, Mr E. M. Edkins, said the company has sustained a serious loss in Mr Seavill’s death. For many years, he said, Mr Seavill had been closely connected with farming in the Waikato, and was a director of the company from 1920, succeeding to the chairmanship on the retirement of Mr H. S. Hawkins in .1929. He was a man of high ideals and principles, gave unsparingly of his time to public affairs, and would be missed by all with whom lie cajne In contact. As chairman of the company he would like to record the valuable services that the late Mr Seavill ha i rendered to the company, and at the same time express sympathy with his relatives.

hut I firmly believe we are slowly emerging from the last few years of depression. However, it behoves us all still to exercise every economy, and strive to get the maximum results from our farming operations.

Balance Sheet. “'Capital and reserves show no variation on last year’s figures, viz., subscribed capital, £658,267; paid-up £479,953; reserve account, £20,000. fixed deposits, £IOOO. In a few months this item, like mortgages, will have vanished from our balance sheet. The sum of £5582 represents the total at credit of current accounts. Sundry creditors, £27,975, show an increase of £1033 on the previous year’s figures- This liability has since been paid- The liabilities, excluding capital and reserves, total £34,748, whilst the assets amount to £562,465, revealing a percentage of liabilities to assets of 6.17. ‘The value of the company’s properties stands at £163,102, an increase on last year’s figures of £l'Gs7, accounted for by new premises at Matainata, less depreciation on the whole of the properties. Renewals and repairs have, as usual, been charged against current expenses. The value of the whole of the working plant, machinery, office furniture and fillings engaged in the business stands at £6130.

“Sundry debtors, less reserves, and hills receivable aggregate £199,109, an increase of £11,272. Investments total £42,275. Of this sum New Zealand Government inscribed stock (less reserve for any possible fluctualion in value) totals £28,495. The balance is represented by mortgages and other securities held by the company. A credit balance existed with the company’s bankers, on deposit and at call, of £00,076. Stocks of merchandise have been valued at £91,712, an increase of £3487 on last year’s flgui.... “The percentage of expenses to gross profits is 72.72. Summarised, the position is as under: — £ Paid up capital 479,953 Total liabilities 34,748 Total assets 562;405 Turnover 1,411,400 Gross profit 122,390 Expenses 89,010 Net profit 33,385

As a mark of respect those present •tood in silence.

Chairman’s Address. Moving the adoption of the report *nd balance sheet, the chairman expressed the opinion that the outlook for the coming year was brighter thr.r, It had been for a considerable time. Trade conditions seemed to be improving, and confidence was slowly but surely being restored. The present prices ruling for dairy produce must he gratifying to all, and a good inquiry for lamb and mutton, and a keener demand for wool at improved prices, should bring about a betterment of conditions for farmers generally. “In making these remarks,” the chairman continued, “I do not wish to convey that our difficulties are past,

The Stock Market. “Inequable weather conditions throughout the year have had their iniluence on the stock market. The dry summer in the Waikato had its effect on the siieep market, whilst the excessively wet conditions prevailing during the winter months, and the backwardness of spring growth, have kept values of dairy cattle, especially heifers, lower than last year. “Graziers, however, have been able to take advantage of the opening up of the chilled beef trade, and increasing quantities are being marketed In London- The freezing works in the Auckland Province have installed up-to-date chilling plants, each capable of a large output. Good quality cattle are necessary for this trade, and during the year heavy supplies were drawn frpm Gisborne and the East Coast districts, resulting in a marked improvement in values for stationbred stock. • The company handled the greater number of these cattle, and clients were always in a position to obtain the best quality offering. The demand for store cattle was a reflection of the beef market which was held steady throughout the year by the chilling operations.

"There has been a good demand for dairy cattle, but prices generally were barely up to those ruling last year. The company held a large number of

■clearing sales, at which fair average prices were realised. business was done in the pedigree branch, and most of the sales we held were highly successful. “The fat sheep market was disappointing, and values showed little or no improvement. Good business in breeding ewes was done, however, and during the autumn large numbers of East Coast sheep were handled.

Keen Inquiry for Horses,

“The inquiry for horses lias been keen, especially for medium and heavy draught farm sorts, and all fairs have been well patronised, with good prices paid.

“The improved facilities provided at the principal saleyards for the handling of fat pigs have resulted in larger offerings. Prices in the yards have been uniformly good, hut there is a movement afoot to influence farmers to sell "over the hooks." It would be well for those approached to consider carefully whether they are acting wisely in ignoring the facilities provided for obtaining the benefit of active competition. “A considerable amount of business lias been done in the way of private sales, but, as usual, the greater part of our stock operations has been dealt with in the saleyards, and there is no doubt th-at. this is the most satisfactory way of disposing of all classes of live stock.

“ A noteworthy feature is the large influx of sheep and cattle from tiie East Coast to die Morrinsville saleyards. This district is deAC]oping into a most important centre, aided by a weekly fixture. If our shareholders will give us their wholehearted support, it will not be long before Morrinsville will have the leading store stock sale in the Auckland Province. Jt is pleasing to report that during the year we handled more cattle, horses and pigs than duiing the preceding period, but the sheep figures show a slight decline.

Merchandise“■General trading conditions have varied but little throughout the year. A pleasing feature, however, is that the spending power of the community has not been so restricted. “In the main prices have remained steady. It cannot he denied, however, that retailers have had many difficulties to contend with, foremost among which is that ol maintaining a reasonable ratio, of profit to turnover. This has led a certain class of trader to stock poor quality goods, and, with a view to gaining a greater volume of business, to commence a price-cutting campaign. Poor quality goods and low prices have never yet secured permanent prosperity, and I submit must have a tendency to lower further quality standards', they certainly do not permit the payment of higher wages, and services of necessity must suffer. Ido not think It can he said with any degree of truth that such conditions are for the betterment of. the community as a whole.

Shipping. “The shipping agencies controlled by the company, viz., (Gunard-Wliite Star, Anchor, Anehor-Donaldson, _ and Commonwealth and Dominion Lines, Osaka Shosen Kaisha (Japan and China), Gisborne Sheepfarmers’ Service (East Coast ports), and Western Shipping Company, Ltd. (West Coast ports), have had a less trying season, although it is still necessary for overseas Lines to send ships out to the Dominion In ballast to lift New Zealand products. Inward 'cargoes from the United Kingdom, Canada, and the United States of America have increased during the year by 18 per cent, and it is pleasing to be able to record an expansion in meat shipments. Mutton Increased by 22.1 per cent, lamb 4.5 per cent, pork 36 per cent. Frozen quarters of beef decreased by 18.6 per cent, but on the other hand the chilled beef trade, which Is now past the experimental stage, is growing In magnitude; for the ten months ending July 31, 53,000 quarters of chilled beef were shipped, as compared with 18,000 for the same period of the previous year.

“The exceptionally dry season last summer manifested itself In a decrease in butter mid cheese shipments, the former by >6l per cent, and the latter by Hi per cent- " “With regard to wool, shipments showed a considerable contraction. This was to he expeoted In view of the tremendous drop in prices and the number of growers electing to hold their wool rather than meet the market.

Eastern Trade.

“Last year wool shipments to the East were fully 13,000 bales fewer than the previous year, but according to the latest reports from Japan there is every likelihood of this country being more active in Its purchases during the coming season, and larger shipments can be looked forward to.

“The general outlook in regard to Eastern trade Is much brighter, as within the past fortnight our principals, the Osaka Shosen Kaisha, have announced a direct service between New Zealand and Japan. This will not only give exporters the opportunity of shipping wool and all classes of general and refrigerated cargo

direct, hut will also give a regular and direct delivery to importers and eliminate transhipment from Australia; and it is hoped will provide an excellent opportunity for the Dominion to establish fresh markets for her produce in the East.

"Passenger traffic during the year showed a considerable Increase, attributable no doubt to the King's Jubilee celebrations, which caused more people to travel than for some years past.

Insurance. “The agency of the New Zealand Insurance Company, Limited, has once more proved a very useful branch of our activities, and It will be pleasing to know that our earnings have increased, as compared with last year. This has been brought about in the face of strong competition and a reduction in certain premium rates, and demonstrates that shareholders and customers have responded to previous suggestions to avail themselves of this service. “The desirability of being fully protected against all insurable risks is again emphasised, and inquiries are invited for fire, accident or marine cover, whenever such is required. "A reminder is given that we are also agents for The Producers and Citizens’ Go-operative Assurance Company, Ltd., a life Insurance company, and the necessity for making provision for their dependents, or for probate duty, Is commended to the consideration of our clients. “Before concluding, I would like to awaken (if necessary) pride of ownership in the F.A.C., a oompany which has not only rendered a valuable service to the farming community during the whole of its oareer, but has stood up to the difficult times of the last few years, and is in a sound and strong financial position, with its capital Intact. The staff, from the general manager downwards, are keen and efficient, and are always striving to give service and thus merit a larger share of your support, and in this connection I appeal to all to further their efforts by placing the whole, or at least the greater portion of your business with the company." The chairman formally moved the adoption of the report and balanoe sheet. Synopsis of Percentages-

The following synopsis of percentages affords an Interesting ooniparlson: — Total liabilities —excluding capital and reserves, £34,748 14s 4d. Total assets, £562,485 10s 3d. Percentage of liabilities to assets, 6.17 per cent. Comparison with previous years as under:—(1920), 36.45 per cent; (1921), 31.83; (1922), 27.58; ( ; 1923), 28.98; (1924), 26.50; (1925), 23.84; • 1926), 22.38; (1927), 1'G.'98; I (1928), 15.51; (1929), 20.37; (1930), 20.09; (1931), 16.23; (1932), 9.54; i (1933), 7.79; (1934), 6.95; (1935), '6.17. £ s. d. Total expenses ,... 89,010 11 4 -Gross profits 122,396 0 2 Net profits , 35,385 8 10 1933 1034 1935 P/C p/c P/c Percentage or expenses to gross profits 82.13 70.98 72.72 Percentage of net profits to gross profits 17.87 29.02 27.27