D.I.C.

Dominion, Volume 14, Issue 42, 13 November 1920, Page 11

D.I.C.

THE ANNUAL MEETING A RECORD YEAR (Published by Arrangement.) The annual meeting of shareholders in the Drapery and. General Importing Company of New Zealand was held in the hoard room of the New Zealand Express Company's building in Dunedin on Friday afternoon, November 5. Mr. E. I. Halsted (chairman of directors) presided over a aood attendance, including Messrs. W. Fels. A. Fels, and I. S. do Beer (directors. Annual Report. The directors, in submitting their 3G(h annual report and balance-sheet, stated that, early in the year they concluded negotiations for tho purchase of tho .whole of the shares in Messrs. Georgo and Kerslcv (Ltd.), a company carrying oil a large and successful drapery business in Wellington and Wanganui. Up to the nresent this' business had been continued under, the old name and organisation quite distinct.l'roni the company's own branches- The directors were confident that, the purchase would provo a satisfactory one. In July, tho directors offered- for subscription 125,000 new G per cent., preference shares of J!l each, ranking pari passu with the existing preference. shares. Tho response was most gratifying, the shares being over-subscrib-ed in little more than a fortnight, nnd the lists closed nearly a week before the advertised closing date. Reflecting the prosperity of the Dominion the company's business had largely expanded during the past year, all three branches doiue a record turnover. Tho net profits for the- past year were ,£37,165 18s. lid., which, with 18s. 6d., brought forward from last year, showed a total to tho credit of profit and loss account of ,£61.236 17s. sd. Oil May 1 an interim dividend was paid on preference .shares at the rate of 6,per cent, per annum for tho half-year ended "February 20, which absorbed ,£3750, and left ,£60,486 17s. sd, now available for division. This sum the directors proposed to deal with as follows:—To payment of a dividend at tho rate of 6 per cent, per annum on preference shares for the half-year ended August 20, 1920, .£4200 Bs. 6d.; to payment of a dividend at the rate of 8 per cent, per annum and a bonus of 2 | per cent, on ordinary shares, 17s. I "id.: to addition to reserve fund (which | would then stand at ,£75,000), .£1957 3s. 7d.: to balance to bo carried forward less a bonus of 2J per cent, to holders of ordinary shares on the amount of their purchases, ,£39,563 Bs. 3d.—making a total of .£60.486 17s. sd. The dividend nnd bonus (if approved) would be payable at the company's offices, Dunedin, Christchurch. and Wellington, on and after November fi. 1920. As provided by tho articles of association, Messrs. H. E. Hart and W. Fels retired from tho directorate on tho present occasion, _ and being eligible, offered themselves for re-elec-tion. The auditor, Mr. J. S. M'lnnes, retired. He had gone into partnership with tho firm of Messrs. "Win. Brown and Co.. nnd they offered themselves for clec"tion as auditors in Dunedin. 'Mr. E. B. Sealv." offered himself l'or election as auditor in Ohristchurch and • Wellington. Chairman's Address. The chairman, in moving the adoption of the annual report and balance-sheet, stated that the most important event in the company's history, during the past year had been the purchase of the whole of the shares in Messrs. George and Kers-. lev (Ltd.). This company, popularly known over a large part oi' the Nortli Island as "The Economic," had carried on an extensive and old-established draperv business in Wellington and Wanganui. a.ud when the directors were approached with the suggestion of purchase, thev at once saw the immense possibility of expansion which was presented. They were not long in making up their minds and coming to tonus with the late proprietors, . with the result that' the largest cash transaction in the history of the soft goods trade in' New' Zealand was effected.- Up to the present time Messrs. Georgo and ICersley's business had been conducted exactly _ as in the past, as a auite distinct business from their own. That wa3 merely temporary, and during tho present month the two concerns in Wellington would be amalgamated, and would in future be carried on as one big branch*of the D.I.C. The.premises adioitied one another, and those of Messrs. George and Kerslcy possessed what they had long coveted, a; very large frontage to Wellington's main street, Lambton Quay. The two buildings together covered an immense area, and offered the opportunity for great expansion for rnnay. years to come. As regards Wanganui, Messrs. George and Kersley's buildings m that town, which now took rank as the fifth in the Dominion, were modern and up-to-date in every respect, awl shafcholders might look forward to this, new business as a decided acquisition to the company. To help to finance the purchase the directors in July last offered ior subscription .£125,000 of new G per cent, preference shares ranking in every respect equally with the. then existing issue, lu little over a fortnight the whole of the shares were applied for by shareholders nnd the general public, and ■the directors immediately closed the lists.. Many intending applicants were disappointed, and had they kept the lists ■ open until the date originally proposed he was convinced that the issue would havtl b&en nearly doubly applied for' No better tribute to the high standing awl. soundness of the company could be wished for. (Applause.) The year under review had again been one of _ progress and prosperity' for the Dominion generally, and in that prosperity the company had had its due shard, its turnover and 1 profits showing record figures. Stocks,, were heavy owing to the constantly rising prices, and also owing , to manufacturers being now able to give better and quicker deliveries of most lines than for somo years past. Ihis, together with the purchase of Messrs. George and ICersley's, had resulted in a large increase in their figures on both sides of the balancershcet. Expenses had also grown by over ,£IO,OOO, with tho prospect .of further increases in every direction. The outlook for wool and some of the other primary. products of t.lie Dominion had greatly changed in the last few months, and with finiuicial stringency in world-wide evidence, it behoves one and all to. act with caution. If this were done he felt sure that tlicy might look forward with every confidence to the continued progress of tho Dominion. The company's Dunedin malinger Mr. Crow, had lately returned from an extended trip thorough the United States. England, and France, Ho was able to do much valuable buying and open up important business relations for thii company in many places. His presence in London had enabled many matters to bo discussed personally with their Home buyers, and would result in much good to the company generally. It was intended to resume the policy interrupted bv the war of periodical visits by members of their New* Zealand stair to London and of their London buyers to the DonuMon. ITliey looked forward to seeing 0110 of the latter here in tho coursfi of a few months. in addition to buying Mr. Crow had been enabled dui'inu 'his travels to visit many of tno largest and finest drapery and departmental stores in tho world. lie had returned' full of the latest ideas oil build- | ings and equipment, which would bo turned to the fullest advantage when thev wero able to undertake rebuilding in Dunedin. In the meantime, Mr. Crow had been able to give much valuable advice in connection with tho ic■planninK of the Christchurch warehouse, which the great expansion of in that city had mndo a neoessitj, and whioh was to be put in hand immttlia ■ ly. (Applause.) ' In conclusion the chairman stated tlmt the net profit o tho company for the year had W i™ to .K17.105. Tltey asked the shareholders to pass the *m.e divWe,ids ambonus a% last venr, to raise tho le&euc fund | to ,175.00(1. r-nd to carry forward tho bn - anco of .£39.503, leas bonus on shareholduurolmscs. (Loud applause.) Adoption of Report. 1 Mr. 'Wilson, in seconding tlia motion, said tho report and balance-shoot disclosed a most satisfactory state of affairs in every w.iy, nnd ho whs sure tho measure of p]t)Sperily which had beon qxpcrionced in tho oast would contiuue in the futuro. He knew >the business which had been nut-chased in Wanganui, and ho beylioved It "would prove ajraluable adjunct;

to tho company, nnd that the directors had done wisoly to purchase it. (Applause.) Mr. H. W. Mitchell, in supporting tho motion, said the shareholders had every reason for satisfaction. Ho thought tho company bad a great future before it financially. The motion was carried unanimously. Directors and Auditors, Mr. J. M'George moved the re-elootion of Messrs. H. E. Hart and W. Pels to tho directorate. Mr. Mitchell seconded the motion, which was carried. Mr.. J. B. Nichol moved that Messrs. W. Brown and Co. be appointed auditors for the company in Dunedin, and Mr. E. B. Sealy auditor in Christchurch and Welliueton. He thought it was a matter for congratulation that they had not lost tho services of Mr. J. S. M'lnnos. who had given every satisfaction for many years past, and who had now ioined the firm of Messrs. Brown and Co. That firm was to be congratulated on obtaining him it;? onq of its members. a.nd he thought they should take that opportunity of wishing Mr. M'[linos' Success. (Applause.) Mr. E. A. Rosevcar seconded tho motion. The chairman said, the directors could' onlv confirm what Mr: Nichol had expressed go happily regarding Mr. M'lnnes. Tho motion was carried. Complimentary References. Mr. Mitchell moved a. very hearty rota of congratulation and thanks to the directors, managers, and staff for their able service, both here and at the various branches in the past. The present success of the company was undoubtedly due to the managers and directors, who were ably seconded by tho 6taff. (Applause.) ' Mr. R.. W.' Glendining seconded the motion. He remarked that there was no mention of any bonus for tho employees, but perhaps that had been accounted for in some other way. Tho chairman: Yes, that is provided for. We have not overlooked the staff. The motion was carried. Mr. Halsted, in returning thanks, sdid tho vote was appreciated very highly indeed as a mark of confidence. Perhaps the directors could not do very much. It was the managers and .staff who made the success of the business, and the directors joined with the shareholders in expressing extreme confidence in tho whole of tho staff, as well as thanks for tlio manner in which they had performed their duties during the past year. Mr. Crow (tho manager) .was present, and also Mr. Greenslode, who had been Home during the year, and whose trip had also been of great service to the company. (Applause.) Mr. Crow briefly acknowledged the vote on behalf of the managers and staff, Rnd' the meeting terminated.