ABRAHAM & WILLIAMS

Dominion, Volume 9, Issue 2615, 10 November 1915, Page 8

ABRAHAM & WILLIAMS

A PROFITABLE YEAR

GENERAL PROSPERITY OF FARMERS The annual meeting of shareholders of Abraham and Williams, Ltd., was lieltl at tho companies rooms in Eangitikei Street, Palmerston North, on Monday, November 8. There was / a fair attendance of shareholders. The chairman, in moving tho adoption of the report and balance-sheet, said;— "When I last had the pleasure of addressing you, we had been engaged for three months in tho great struggle still going on, but even at that early etage of the" proceedings the English-speaking races throughout the world had recovered their sereiiity and were confident o£ the ultimate success of the allied arms. In no place has that confidence been more manifest than in the Dominion of New Zealand, and in fact, it is a question whether this country has not viewed the very grave situation which still' exists too lightly, ancl whether the maxim. "Business ns usual," lias not been construed too literally considering the importance of the issues at stake, whilst our Government seems, till quite recently, scarcely to have recognised the paramount necessity of enlisting and equipping every man they could. New Zealand's Prosperity. "The prosperity existing here, is, however, phenomenal. During the last 12 months ending iwplember 30, the values tf produce exported arp as follow:— ■ •£ Frozen meat 7,238,560 AVool 10,'125,172 Butter .:. 2,385,308 Cheese 2,523,169 "as against, for the preceding twelve months;— .£ ■ Frozen meat 1,930,702 Wool 8,107,279

• Butter 2,229,348 Cheese 2,316,79-1 "an increase of no less than «£•£,928,086; whilst'' most other produce has been in the same proportion. Against this we have to face extra taxation to meet interest on war expenditure, estimated to produce £2,033,000 to which must be addedthe amount donated to the various funds by private liberality. So that notwithstanding the war, this country is infinitely better off financially, especially after taking into consideration .the heavy reduction in the value of our imports. It is evident, therefore, that when we talk of straining every nerve, that so far wo' can barely claim to bo doing all we can.

Half-pay for Men Who Enlist. "Our company lias shaved in tho sen. eral prosperity o£ the farmers, and we must expect to (lo our share by way of extra taxation. In addition to this, we are providing for theso of our staff who have joined the forces by putting - half their salaries- to an Officers' War Fund, which, I hope will prove sufficient to relieve those • who have the misfortune to bo badlj* wounded. So far fifteen of our staff have enlisted, and all but one have either gone to the front or arc in camp training. Of these I am happy to say that only four have been wounded or invalided: Messrs. A. H. Strang, C. Bryan, 0. G. W. Priest (back in the firi'ssr line), and N. H. Judd, and I trust the others will be equally fortunate. Tho amount of half salaries put on ono side is now .£l2lO per annum, but there are cithers to go yet, and I am sure I have you with mo when I say that we propose to carry on 1 the same policy and to see that none of these have to suffer for their unselfish and.plucky action in fighting our battles for us. ■

The Balance-sheet. . "Turning now to our balance-sheet, 1 think you will admit that a' comparison of this balance-sheet with that issued by the company in 1808 affordsa wonderful example of tho prosperity and improved position of the farmera of tho North Island.At the same time I consider that the comparison affords an assurance .to the shareholders that the business is being run oil safo and proper lines, i Capital account has increased' by <£5317; Reserve account now stands at ,£25,000, an. it crease of .£BOOO since last year. Bank of New Zealand has decreased in diroct advances .£28,797, and in bills discounted .212,651, whilst sundry creditors have increased by £1918. Since 1908, however, heavy reductions in our direct liabilities have been effected, the figures showing no less than Profit and loss account shows an improvement of i£3G9t). Property account shows a reduction of £1813. Sundry debtors have decreased £11209. Bills for collection have increased .£•1625. .Generally, assets show a reduction of ,£9953. The net decrease on debts due by clients on bills and open accounts is '.£17,238. As showing tho heavy increase in the business done, I may say that our turnover since, 1908 has increased by no Uss than over half a million pounds. In profit and loss, the books, show gross returns of <£46,89-1, against a total cost of .533,517, but extra' full allowances' have been made for bad debts, depreciation, subscriptions to\ war funds, etc. Seeing that we have now provided a fairly strong Reserve Fund of <£25,000, some shareholders mighlv consider that we could have safely increased the. amount of c-ur dividend, but whilst your directors considered the. matter very fully, they decided that seeing , the incroased war taxation which we have to. face, estimated to be at least'<£2ooo, and the large amount absorbed by our Officera' war fund amount ing to ,£l2lO per annum, which, of course, will be increased if others have to' go as is more than probable, it would be safer and better policy to go slow until wo are out of the wood.

Prices for Produce, Prices for produce generally show every indication of regaining v at abnormal rates, and there is every probability that they will be maintained whilst the war is continued. I confess, however, that I view with some apprehension tie high prices expected, aid in many cases obtained, for farm properties. The present prices of produce are anything but a safe basis to work on, and in all human probability wo must expect a heavy fall in values after the war ceases, whilst for some considerable time the inorease in taxation- involved must be expected to be continued, until our soldiers are provided for or absorbed by the land and various industries in which they may engage. . No doubt when the purchasing .power of th« world recovers, you will find our markets widely extended; America, : France, and other Continental countries will be clamouring for our' meat, whilst Japan and China will bo large purchasers of woo!, but infallibly it must take nome years to see the world's' trade established on sure steady lines again, and it behoves us to set o.ur houses in .order against the dull times which aro sure to come.

The report Slid balance-sheet were adopted. A dividend of G per cent, for tho six mouths ending September 30 last was approvod, making 6 per cent, for the year. : Messrs. Q. C. Cooper and H. G. Williams were re-elected as directors. The auditors, Messrs. Butherfurd and Connell and Mr. P. L. Sim, were re-elected. Vote of Thanks.

Mr. J. M. Johnston moved a cordial vote of thanks to the directors and staff for their services during the year. He corgrafculafced the hoard on the very marked improvement as exhibited by. the balance-sheet, and on their liberal treat, meat of officers who had enlisted.' He expressed the hope that the directors would take into consideration the increased cost of living, and would make aJlx>\yanccs therefore in. ihc salaries paid to their officers. The motion was seconded by Mr. J. H. Stevens, and oarried unanimously. The chairman, in • returning thanks for the motion, pointed out that the present board had, by careful management, brought the concern into a sound and good position. to the staff, he could not say too much for the way in which they had grasped the situation and accepted with alacrity the extra work thrust on their shoulders as part of their contribution to the great struggle now going oil. Mr. Beckett also expressed his satisfaction with the balance-sheet, as affording evidence that the business was now oil a thoroughly sound footing.