SHARLAND AND CO. LTD.

Dominion, Volume 13, Issue 34, 4 November 1919, Page 10

SHARLAND AND CO. LTD.

ANNUAL MEETING OP SHARE, HOLDERS. Tho twonty-first annual meeting of shareholders in Messrs. Sbarland and Co., Ltd., was hold yesterday, Mr. W. Watson, chairman of directors, occupyi ing the chair. Tho report of tho directors stated that the balance-sheet, and profit and loss account for the year ended August 81, 1911), showed that there had been a continued increase in the business. After making provision for all bad and doubtful debts, full depreciation of premises and plant, payment of interim dividend, and transfer to reserve fund of .£ISOO, there remained a balance of •£12,775 life. Id, to be dealt with, including i»3 7s. Bd. brought forward from last year's account. In accordance with the announcement last year, tho addition to reserve fund was shown in tho balance-sheet instead of in f hat for the succeeding year as previously. The directors recommend appropriation as follows: In payment of dividend, 71 per cent, for the vear, less interim dividend of 3J per cent, paid .May 1, <£2812 10s.; in payment of special dividend of Cd. per share from profits earned by reserve fund, .£1875; to carry forward to next year's account, ,£BOBB 9s. 1(1.; total, .£■12,775 19s. Id. A subscription of £2000 was made to the Victory War Loan, 1919, making tho holding of war loan stock ,£11,500. In addition, a further ,£3300 had been arranged through tho Australian Mutual Provident Society's scheme of employee insurance. The thanks of tho shareholders were duo to tho secretary, managers, and staff for their excellent work during tho year. Opportunities had been given to all members of tho staff returned from the war to bo reinstated in tho service, and suitable war allowances had been made-. In moving the adoption of tho report and balance-sh?ot, Mr. Watfon said:—. "Again I ham tho pleasure of reporting a satisfactory increase of business compared -with the previous year; indeed, year after year our trade Digresses to such an extent that tho additions to tho reserve fund arc not sufficient to effect the reduction of liabilities which wo are obliged to owe. With our present capital and reserve fund totalling .£108,500. wo maintain assets amounting to ,£190,413, which, of course, is partly owing to the higher cost of goods; but the position has caused the consideration of the board to bo given as to whether or not they should recommend an increase of capital by issue of new shares, and this they have now decided to do. The issue they propose will be .£2.5,000 in ordinary shares of ,£1 each, to be allotted at par, to the existing shareholders applying for them, and the calls by instalments will not lw completed under eighteen months. Notices of the necessary proceedings in this connection will shortly be circulated to all the shareholders. Comparison with last year shows .that stocks have' increased by ,£8262. Book debts, on the contrary, have decreased by ,£IO3O, due to a largor proportion of retailers paying cash for goods. Properties and plants and fixtures have been well written down, and i ner cent, depreciation has been'provided in a. contra account to bring our holding of the Gov- | i eminent war loans to the market value i lof August 31. The increase, of .£4178 in charges is principally owing to tho heavy income tax, but salaries and. other expenses are necessarily higher. I Tho income tax, based on the' profits I for the year under review, will absorb nearly the whole of- the .£BOBB recommended to bo carried forward." Mr. A. E. Mabin seconded the motion for tho adoption of 'ho report and bal-ance-sheet, and this was carried unanimously without discussion. The retiring director, Mr. A. E. ', Mabin, was re-elected to the board oE directors. Messrs. James W. Jack (Wellington) and Alex, Orierson (Auckland) were reelected auditors. Mr. J. B. Harcoiirt moved that the directors' honorarium of ,£SOO be increased by .£151) per annum until such ; tirao as any alteration is desired by the shareholders. In. doing 60, Mr. Harcoiirt said that since the honorarium was fixed at ,£SOO the business of the company had increased exceedingly and the duties or tho directors had become heavier. An increase, of .£l5O was really not sufficient recompense for tho directors' greater responsibilities. Mr. D. Jones seconded the motion. When he looked back to the time when the company's shares were "going begging" for 10s. apiece, and then recollected that tho shares were now worth .£1 125., he felt that the credit for tho enhanced value was dua to the directors. The shareholders should bo only too glad to pass fcho resolution. Mr. Maurice O'Connor thought tho suggestion was "a bit sudden." He considered it a. very bad time to increase tho honorarium because they did not know the position regarding taxation. He moved as an amendment that the amount of tho honorarium stand as at present. After brief consideration. Mr. O'Connor withdrew his amendment, and Mr. Horcourt's motion was carried unanimously. Mr. I). Jones moved, and lir. James W. .Tack seconded, that a hearty vote of thanks bo accorded to the managers at Auckland and Wellington, and to the' secretary and stall generally for their good work during the year. "The balance.?," remarked Mr. Jones, "speak for {themselves. You havo done wonde?- ; fully well." . ! The motion was carried amidst applause. In returning thanks, Mr. I). E. Boaglehole, secretary to the company, said Hint the stalV was-not dissati-fied. One good thing about tho staff of Sharland and Co. was tho loyalty of its members, whom they did not find anxious to go elsewhere.