ABRAHAM & WILLIAMS

Dominion, Volume 8, Issue 2337, 19 December 1914, Page 7

ABRAHAM & WILLIAMS

*» . THIRTEENTH ANNUAL MEETING The thirteenth annual meeting of shareholders of tho above was held at the firm s rooms on Monday, Mr. K. S. Abraham in tho choir. Chairman's Address, Aftor reading tho auditor's report the chairman, in moving that tho report of the directors and balance-sheet be adopted, said:— ' Tho year under review has producea situations which havo given riso to very grave anxiety for your directors and tno managers of the company. Starting with tho strike, engineexod by tho Federation of Labour, which, to a very gravo oxtent interfered with local trade for about two months, we have finished up tho year with "Armageddon," which ono would imagine would havo absolutely paralysed the whole commerce of tho globe during its continuance. Thanks,. however, to the splendid resources of the British Empire, the firm stand taken by tho _ English Government, and in co-operation with their powerful financial institutions, the wise regulations passed to maintain tho credit of the country and her commerce, what do we find? Instead of almost universal bankruptcy, trade conditions are being steadily maintained, and, bearring ■ the occasional sinking of a steamer by a wandering German cruiser, as far as this country is concorned, prospects of good trade and good prices for our staple products of wool, meat, and- dairy produce wore never brighter. , Wool—At tho November sales in Wellington something like 12,000 bales were sola at an average price of about 2d. per lb. over the averago prices realised during the last ton years, which means if theso prices are maintained throughout the season, at least. £2,000,000 additional profit to the producers. Meat.—Tho average price for mutton for tho ten months prior to tho war, according to Messrs. Gilbert Anderson and Oo.s Trade Eeport, was: Canterbury, 4Jd.; North Island, 43-Bd. The increases for August and September have brought tho averages up to 411-16 d. and 4Jd. respectively for the twelve months, October, 1913, to September, 19R ~.,,, Lamb.—Canterbury, 315-16 d.; North Island 513-lfid. Tho increase for August and September has brought tho average up to 61-16 d. and 515-16 d. respectively, for the twelvo months, October, 1913, to September, 1 914 - ™. , Beef-Fores, 313-16 d.; hinds, 4d. Tho increases for August and September have brought "le averago up to. 4d .and 4jd. respectively for tho twelve months, Octobr, 1913. to Soptember, 1914. And in this connection, gentlemen, I should like to mark our sense of the splendid services rendered by our Belgian allies and her gallant soldiers, by England's invincible navy, without which we should indeed be in a parlous state, and last, but not least, the glorious unanimity shown by every Dominion and colony of the British Empire, who one and all are sending money and men to the help of their Mother Country. Gentlemen, yon will pardon mo for saying that we should all rejoice that wo were born members of that little country on which the whole world is dependent for their future police, security, and happiness. Nevertheless, gentlemen, the times givo one anxious thought; depression and scarcity of money must follow in tho tram of such a war as we are engaged in, and, whilst tho managers of this concern may congratulate,themselves and you that they have for tho' last few years maintained a policy of strict caution, with a view to a steady reduction in tho liabilities of the concern, with the result that wo are able to show a- steady front under such un- ' timely circumstances, and to pay our usual dividend, and to further increase our reserve fund, still we must exercise the very greatet caro, and be content to carry on our present clients without taking up tho new and profitable business which Is so constantly being offered us. That is our policy, gentlemen, and I am euro you will all agree with me that it is the only wise one to adopt under the present circumstances. , ,

I havo referred for several years past to the necessity that exists for increasing our capital. Your directors havo now decided to recommend you to adopt the resolutions which have been incorporated with the balance-sheet sent you, viz., to make an issue of 26,000 shares, of which 20.CC0 will be offored as preferential shares, bearing a 6 per cent, cumulative dividend. These will be offered in tho first place to shareholders, and any not absorbed by them will bo offered to the public, ae 60on as we feel the market is ripe for taking Buoh a step. As I have before informed you, we want nothing but extra capital to mako this concern one of the most prosperous in tho; Dominion. We have all the.machinery for carrying on a largely extended business; we havo the confidence of tho people, and we know that a safe and profitable business is only waiting our capital to ,deal i,with it. We - hope that shareholders will .show their confidence in tho concern, by increasing their present holdings either by taking up ordinary or preferential shares. I may explain, of course, that tho preferential shores are strictly limited to six per cent, but they havo flr6t call in the profits; the ordinary shares will share in the larger dividends and profits which we hope to show from the money thus obtained. I have also to call your attention to the proposed reduction of our Board from cloven to eight, and later on I will ask you to pose a very hearty vote of thanks to tho retiring members for the very great assistance which they have at all times given to the concern, both financially and otherwise.

For the ensuing year it is wonderful that we should have such a bright .prospect before us in the face of such a great upheaval, whioh must more or. leas affect the commerce of the whole world. But what wo do find, our staple products: wool, meat, and butter, aro bringing higher prices than ever, and we may take it as an uncontrovertible fact that once the war is over and trade has settled down again to its ordinary channels, we may look for widely extended markets for our produce. Prance is already taking our meat for their Army, and it is auita patent that the many millions on the Continent will henceforth look.to the new worlds for their principal supplies, at all events in meat. It is . true that money must become very tight possibly for years after the war is over, and possibly our public works will have to go slow for the time being, but on the other hand the surplus from our exportation which, for the year ending September 30 laet, have exceeded SM.COO.MO, together with the exercise of economy, which is going on over the whole Dominion, will, I am sure, obviate any great inconvenience being felt in this country. Nevertheless, as I told you in the earlier port of my address, our policy will be one of extreme caution, and if for that reason we aro unable to show quite as good profits at the end of the year, shareholders will. I nm sure, agree that we have been wise in going slow and steady till wo can see our way out of the shadow which darkens the future at- present. Ttefore I conclude, I should like to congratulate you and the whole of the farming community of this "Agricultural Board." Members of the Dominion on the establishment of tho Boord.ore men'of wide and nroved experience and I feel sure their deliberntions will result in.untold benefit to the farmers of the Dominion. I now bog to move that the Teport of the directors arid the accounts and balance-sheet nnneied thereto 1)8 and the same aro hereby adopted. Dividend. It was resolved to pay a dividend at the rate of £6 per centum per annum on the paid-up capital of the company for the half-year ended September 30, 1914, and making; with the interim dividend paid in Nrarcb last, 6 per cent, for tho year, such dividend to bo payablo on December 15, 1915. Miscellaneous, Messrs. John Davics and 0. H. Porrltt were re-lected directors. Messrs. Rutherfurd and Connell and Mr. P. L. Sim were reappointed auditors to the company. The sum of £25 was voted to the Belgian Relief Fund, on tho motion of the chairman. A hearty vote of thanks was voted to the rctirlne directors, Messrs. J. T). Ormond. J. H. P. Strang, and W. A. KeiUer, for their services on the board for a number of years. On tho motion of Jlr. Beckett a cordial vote of thanks was passed to tho managing directors and staff who, in the face of the strike and the \Var. had produced such satisfactory results. Mr. Beckett referred I to the Eood services of Mr. Holmes, whose splendid power of detail rendered the work of the board comparatively ca6y.

The chairmnn, in acknowledging the motion on behalf of the staff, supported llr. Beckett in his remarks, and pointed out that want of capital xteg a considerable handicap to the staff, who wore thus debarred from reaping the best results of their cnorgy. Extraordinary Meeting. Tho meeting then resolved itself into anextraordinary general meeting, when resolutions wove passed, of which the following is a resumo:—The capital of the company is to be increased to JE250.C00 by the creation of 26.CC0 new sharcs-of £5 each; 20.000 of such new shares shall bo preference shares of £5 each and 6000 of tho now shares shall be ordinary shares of £5 each; preference shares to have a (lied cumulative preferential dividend «t tho rati) of 6 per cent, per annum; preference shares shall not oualify any person to bo a- director of tho company, and a holder of preference shares shall have no voto in respect of such preference shares, which shall be offered upo nine conditions that £2 10b.. per nharo shall he paid on application and tho balance of £2 10s. por slvire

within 12 months from the date of allotment. The preference shares are to bo offered to existing shareholders of t\e company, in proportion as nearly as may be to the ordinary shares held by them respectively. Directors' Report, ' Tho directors' report was as follows:— Operations I'or tie year jiut closed, wore

seriously affected at the commencement or the year by tho strike of wharf labourers, and havo also suffered matarialy since the declaration of war between England and Germany, It" is a matter for congratulation that, notwithstanding tho absolute paralysis of business which ensued on each occasion for tho time being, wo arc able to show a good return for tho year's work. As was expected, our land business has suffered principally, while general commission account hoe not only held its own, but shows a very considerable increase. The net return for the year, after making full allowance for all expense's of management, bad debts, etc., amounts to £9647 4s. lid., to which must bo added tho sum of £902 ss. 4d. brought forward from last year, making a total of £10,549 10s. 3d. The interim dividend paid for tho half-year ended March 31 last absorbed £2718 Os. 6d„ leaving £7831 9s. lOd. to bo dealt with. Your directors recommend that a dividend at the rate of 6 per cent, per annum on tho paid-up capital, absorbing £2731 12s. 4d„ bo declared for tho half-year iu»t onded; that tho sum of £3000 bo placed to tho reserve account, which will then stand at £20,000, and the balance carried forward. Tho necessity which exists' for increasing tho oapltel of tho company, and thereby enabling tiom to deal satisfactorily with tho large and remunerative business that is offering, has been pointed out from time to time by your directors. It has now been decided to 6ubmit for your approval resolutions to increase the capital of tho company by the creation of 26,000 new shares of £5 each, of which 20.000 will bo offered as preference shares. For tho ensuing year, notwithstanding the fact that the war must continue to be a disturbing factor, your directors feel satisfied that so long as tho ocean trade routes are kept clear, prices for our meat and dairy produce must remain good, and thore will bo a fair demand for wool. In accordance with the arWcles of association, tho following directors retire, ,vlz., Messrs. J. Davies, en* O. H. Porrltt, and, being eligible, offer themselves for re-election. Tho auditors, Messrs. Rutherfurd end Connell, and Mr. P. Tj." Sim, also offer thornsalves for re-election.