A BIG COMPANY'S AFFAIRS.

Dominion, Volume 4, Issue 1013, 31 December 1910, Page 8

A BIG COMPANY'S AFFAIRS.

■ DALGETY AND-COMPANY, LTD. The. twenty-sixth annual meeting of Dnlgety and Company, Ltd., was held in. Loudon on . November 17.' Tho balance-shcet and t report showed that after providing J'or bad and doubtful debts, interest on debenture stock and debentures up to-Jtino itO, dividend on preference shares, and payment of income, tax, there remains to the credit of profit and loss account, including-tlio bulanco brought: forward tram last jeur, £1'67,579 3s. -id. Proceeding, it says:— "In May last an interim dividend was paid at the .rate of 6 per cent per annum, for the half-year endiug December 31,' amounting to £30,000, leaving a balance available of £237,579 3s. 4d., which the directors recommend should be appropriated as follows£3o,ooo in payment of a. dividend at tlio rate of 6 per cent per annum, free of income tax, for the half-year, malting with .above payment 6 per cent for the year; £20,0U0 in payment of a bonus of 2 per cent for the year ended June 30 last, free of income. tax; £60,000 to the reserve fund, thereby raising it. to £380i000; £40,000 to","writing 5 down ;,cost' of."...premises; £10,000 -to the. staff benevolent fund ; and £77,579 3s. 4d." carried forward; total, £237,579 3s.'4d. .. "From time ■to time .surplus funds have been applied to the extinction of oertain amounts' of-the 4J -per cent. de-; benture stock,; in all £100,641, and the total of .that-issue now stands at £519,549. ' ''A . good .'season in Australia .. ana New Zealand;gave, a wool clip, which • realised excellent prices' on the whole, while; the'dairying industry has .'also contributed materially .to the gen-, era! prosperity.. The low prices which ruled.at tho date of our last ; report for .frozen lamb, and .mutton : were succeeded by highor quotations', and the figures stand .at. a. remunerative level to-day. Beef,, howover/is still .dull and difficult iof: sale, with no immediate prospect; of improvement.". .V . .; In-presenting tho report and balance- . shMty-tho chairman;; (Mr/.'Edmund T. Doxat) 'said: "The,report and; statement of accounts submitted to you. today must. I. think, bo considered as very satisfactory,' showing as they. do that' never sinco the formation of the company has it stood ill such a, strong position; and so far. as present prospects for, tho current year are concerned, the latest reports, are. favourable."

. After reference. to other matters/ the chairman continued - as . follows: —"In considering the results. of the year's working it should, however,, be stated that wlulo these are largely due to a general and, satisfactory increase in tho' volume, of business transacted, , yet these earnings .have been materially ' supple-, mento3.- by ' tho' fact . that, owing to recent good seasons,:reserves such as wo .wcrp compelled to make during the'previous bad series of. years havo in this instance , been . comparatively light, and, in. several instances,-'accounts on jvliich substantial reserves'" bad/ been , made liavo been realised, at- a. profit on tho •values to which they had been written down in our books. This, I think, >not only 'shows tho wisdom of the 'conservative policy which wo have always pur'sued in the past, but should impress on' ; the. minds 'of . shareholders =.'that as droughts and cycles of 'low prices liave t occurred :in the ' past, so iprpsperouslifffife it'is highly dcsirabloTthat amplo provision should be made against the certain • recurrence,/ in a. more:.-or less acute form, of such conditions in tho future." .. ...''' - •'

: '.Tho ■ sound' policy, of the company is further emphasised by the following . passage: from; the/chairman's, remarks: "Paradoxical as it may appear, I do not 'hesitate.to say that.it is duringperiods of continued prosperity,, for a number of years, especially wHeii • accompanied by high prices for land and for most descriptions of produce, aiid when exaggerated ideas as. tb>tho continuance of: this state of things obtain, that the elements of future losses arc-far more : readily; initiated than during times • of comparative'depression. Whilst anxious that our shareholders should to. some extent'participate in tho present favourable position; yet -your directors'' paramount ■■■duty is to so strengthen our reserves ■ that wo may be. able to face the prospect of. any series of bad. years with equanimity,- or lower pric.es without anxiety." Tho "report and the -balance-sheet were adopted. . • . . Tlie retiring directors (Messrs. A. P. Blake, J. Dowling, and M.G. C. Glyn) were elected again..; ' '