THRIVING INDUSTRY

Evening Star, Issue 20135, 27 March 1929, Page 17

THRIVING INDUSTRY

N.Z. 'DRUG COMPANY, LTD. ANNUAL GENERAL MEETING ■WORK OF FOUNDERS APPRECIATED. The fiftieth annual meeting of Messrs Kempthorne, Prosser, and Co.’s New Zealand Drug Co., Ltd., was held .yesterday afternoon in the Somerset Lounge, Mr W. F. Edmond (chairman of directors) presiding over an attendance of about forty shareholders. REPORT AND BALANCE SHEET, The report, giving the results as shown on closing the accounts at the end of the financial year in January 31. stated that the directors recommended tho available profits shown to ho dealt with as follows:—The unappropriated balance • brought forward trom profit and loss account last year was £26,181 5s scl; add the netdprofit lor this year, £72,809 15s 7dj less interim dividend for half-year to July 31, 1928, at 4-i per cent., £23,833 19s 4d; leaving to he dealt with, £75,157 Is Bd, which it was proposed to apply as follows-The payment of a dividend of 3i per cent, and a bonus of 2 per cent., making 10 per cent, for the year, £29,140 13s 6d; to add to general reserve £16,000; contribution to staff provident fund, £3,500; a in] to carry forward to next year, £26,516 8s 2d; total, £75,157 Is Bd. The report went on to state that Messrs F. M. Oldham and W. Taylor were the retiring directors, but were eligible, and offered themselves for reelection. The auditors retired in the usual course, but were available for reappointment, and offered their services accordingly. A dividend of 3j percent. and a bonus of 2 per cent, were now recommended on the shareholdings on the register on March 7, making with the interim dividend already paid a total of 10 per cent, for tho year, and, if passed by the meeting, was pay-, aide to shareholders in the dominion on and after April 5, 1929, at the Union Bank of Australia, Ltd., Dunedin, and at i!s branches throughout the dominion, and to London shareholders at the Union Bank of Australia, Ltd., 71 Cornhill, London, on receipt of advice. Shareholders would note that this was the fiftieth report and balance-sheet of the company, so that 1929 might be termed the jubilee year. To mark the occasion fittingly the directors had resolved to capitalise the sum of £53,000 from the company’s reservo fund by transferring that sum to the credit of capital account and issuing to the members £26,500 fully paid-uj) shares in proportion to their holdings as at March 7, 1929. These shares would rank for dividend from February 1, 1929. Fractions would be disposed of, and tire net amount of proceeds paid to shareholders concerned. If the resolution was passed by the meeting application forms would be forwarded to shareholders for completion. The adoption of the report was moved by the chairman of directors (Mr W. F. Edmond), whose address was published last evening. GLIMPSE INTO THE PAST. 11l seconding the adoption of the report, Sir George Fenwick said that pleasure was a natural accompaniment of-'lhe presentation to shareholders of the figures of a prosperous and progressive company, and especially so Avhen those figures were presented to them in connection with the New Zealand Drug Company. There was another reason for pleasure, and that was that they met in the happy circumstances of celebrating the fiftieth year of the company’s life. (Applause.) it was pleasing to look back on the career of this company and recollect all that it had accomplished in tho fifty years. When the name “ Kempthorne, Prosser, and Co.’s New Zealand Drug Company ” was given to it that name no doubt adequately represented the scope of tho company’s operations, but it had covered a very much greater field of work in more recent years than in its early days. They all knew that a great field of operations had been presented to the company as the results of the development of its sulphuric acid and fertiliser works. Thiswas one of the great companies of which New Zealand was proud, and it was well known beyond the confines of the dominion. (Applause.) Tt had occurred to him that tho name—the New Zealand Drug Company—did not adequately represent the scope of tho great developments of the present. Probably the_ directors would not consider an alteration of the name, and lie did not know that such a thing would be desirable, but it was probable that the shareholders had not an adequate conception of the extent to which the company had developed its great fertiliser business throughout New Zealand, or a .full understanding of the way the dominion had benefited by this company’s enterprise. No doubt the good old name-'Kemp-thorne. Prosser, and Co.’s Now Zealand Drug Company—described to them what the company really meant. He thought it was worth suggesting that the name did not suggest adequately to the public the extent of tho company’s interests and how splendidly it had developed every section of its business. (Applause.) Tho number of citizens of the present day who could go back to the early period when the company was formed was very small indeed. He was one of those who remembered the starting of the company, and it was, therefore, perhaps fitting that the chairman and the general manager had asked him to second the motion for the adoption of the annual report. Ho was doing so with the very greatest of pleasure, and he would like to take them back for a few moments to that period in 1379 when Mr T. W. Kempthorne and Mr Evan Prosser formed the company. Ho had a very vivid recollection of the senior partner of the firm. Mr Kempthorne was a prominent and dominant ligureiu the concern which had developed in this great company. Sir George said he could well recollect Mr Kempthorne’s vigour, his alert manner, tho ease with which‘be lelt his home in the morning at an early hour to go down to his office, where he took a full share in carrying on the work. Pie could also remember what a figure Mr Kempthorne was in the community—respected and admired as one of its foremost men, and a man whom the chairman had rightly honoured by paying a tribute that day. (Applause.) Those were days of stress and trouble for many of our commercial men. He had some personal knowledge of this himself. They were clays of trouble not only for commercial men, but for bankers, also. The bankers were full of trouble, and it was not a pleasant thing to walk into a bank parlour and have an interview with the manager. He did not know whether Mr KcmpHiorne had any of that trouble, but if ho did not lie (Sir George) would be very much surprised. The trouble started in 1379. immediately after the failure of the City of Glasgow Bank. No one could realise the trouble, anxiety, and worry experienced by those

carrying on big commercial enterprises, and he had no doubt that Mr Ivemp--thorne also felt the burden. Messrs Kempthorne and Prosser, particulaiiy the former, had courage, ability, resource, and steadfastness, and that carried them through. In those days, when it very difficult, to make a profit, Mr Kempthorne made a profit for the company. The speaker said he was sure that but, for the great resourcefulness of Mr Kempthorne, Jus Steady application to work, and the other qualities, which went to make a good commercial man, the. company would not have been in the position it was in to-day. In November 5, 1878, the first prospectus of “ Kempthorne, Prosser, and Co.’s New Zealand Drug Company, Ltd., appeared. The capital was £-00,000, in 100,000 shares of £2 each, of which 25.000 shares fully paid were t( ? he allotted to Kempthorne, Prosser, and Co.. 50,000 shares were offered to the public, and 25,000 reserved , for future issue. Calls of £1 per shjire were provided for, the paid-up capital thus being £75,000. The provisional directors in Dunedin, other than doctors and chemists, were Professor Black, Messrs Henry Houghton, T. S. Graham, R. A. Law, B. Hallenstein, William Brown, Basil Sievwright, Robert Milson, and of doctors and chemists scattered throughout the colony there were no fewer than thirty-three, those in Dunedin, being Dr Borrows, Dr Batchelor, and Dr A. J. Fergusson. The prospectus stated that the company was being formed to..take over the wholesale drug and general business carried on by Kempthorne, Prosser, and Co. at Dunedin, Christchurch, and Auckland, and at Wellington under the style of Felton, Grim wade, and Co., together witli freehold and leasehold premises, plant, 11 machinery, etc., at valuations to lie ascctainod, and an allowance of £7.500 for goodwill, included in the shares allotted to the firm. Messrs T. W. Kempthorne and Evan Prosser were to continue the management of the business. In the prospectus special reference was made to the wide field for manufacturing industries in connection with the business with specific reference to sulphuric acid and artificial manures, so that even at that early period Mr Kempthorne foresaw what was going to happen in tiiis country—the necessity for fertilisers being used to an enormous degree. Mr "William Brown certified that the average net profits of Messrs Kempthorne, Prosser, and Co. from January 28, 1869, to October 31, 1878, were over 15 per cent, on cost value of sales and 23 per cent, on the capital employed. It was interesting to know that Messrs Kempthorne, Prosser, and Co, began bi isiness in January, 1869, and it might lie of further interest to know that jirior to the founding of the firm Mr Kempthorne was in the employment of Messrs IT. and E. Youngman and Co., where he might have been seen on any dnv busy in that firm’s packing room, with coat off, packing and despatching customers’ orders. Sir George said ho wished to endorse heartily the chairman’s sentiments in ' connection with the founders of the company. The chairman had _ said that they never faded to pay dividends, ft has always been a source of wonder to him (Sir George) that; that was the position. No doubt there were many in later years who could recall Mr Kempthorne’s characteristically breezy manner, and recall also the well-known bell-topper, which he and a few others wore in those days, and the well-known In vcrncss cape that enveloped his figure. He _wa's a man that they must remember with the greatest respect and affcctiom They must all feel great satisfaction that the company’s operations had developed ns thev had. The capital, which was £75,000 in 1880. had passed the half-million mark to-day. The disparity in these figures" revealed the enormous amount of work which the company's staff had performed. and they knew that in the staff of the present day they had worthy successors to the earlier staffs. To the present general manager great ■credit was due for the force he had put into the business with the directors. Sir George said he for one would never cease fo regal’d their work with the greatest respect and with the knowledge that the company could not have been managed better. They had reason to be thankful for the management today, as well as to the founders of the company. Further, they should congratulate the dominion on the fact that a company of this stamp had so splendidly bellied the primary industries of our laud. To him this was a source of greater satisfaction than was derived from the fact that they got reasonably good dividends, and that this year they were getting something special. No company in New Zealand had been more instrumental in helping the farmer and the primary industries of the dominion. Ho felt quite confident that the company would go on increasing its output of fertilisers, and he belicv ed that, though its past record had been a fine one. those who lived to see it would yet realise that it was bound to have a greater influence and that year by year its prosperity would increase. ' (Applause.) FURTHER TRIBUTES. Mr Allred Janies, legal adviser to the company, stated that Sir George Fenwick was conversant with tho business from its early stages, and could take the audience further back than could ho .(the speaker). As the company’s legal adviser he could endorse all the remarks of Sir George, notably in connection with the financial difficulties that at one time beset the firm. Moreover, it gave him great pleasure to support tho previous speaker in the tributes be bad paid to Mr T. W. Kempthorne, a gentleman who, even when commercial difficulties presented themselves to him, was never at a loss for a smile Personally, he knew of those interviews with the hanker; all through the depression Mr Kempthorne had kept on smiling. In referring to Mr Kcmpthorne’s conscientious methods of doing business, Mr Janies stated that he usedto keep up the practice not only of writing all his own letters, but also of rewriting all the correspondence sent to him. it was a long time after typewriters came into use that he (the speaker) was able to persuade him to dictate to a stenographer. In conclusion, Mr James said that the company had been wisely and prudently managed, and at the present time it was wisely and prudently managed. (Applause.) The report and balance-sheet were adopted. ELECTION OF DIRECTORS. On the motion of Mr James, seconded by Mr H. W. Mitchell, the retiring directors were re-elected. Mr James stated that it was pleasing to know that they had a son-in-law of one of the original directors on the board, and that he had come up for re-election in the jubilee year. Mr Oldham expressed his thanks for the reference to his relationship to the founder of the company, and said he was very grateful to lie there to see it going on as it ivas. He was glad to hear Sir George say that it was going on as it had started. AUDITORS. The retiring auditors. Messrs G. C. Morris (Auckland), G. F. Judd (Wellington), W. E. Best and Wilkinson (Christchurch), T. Ballingall and Co. (Wanganui), and William Brown and Co. (Dunedin) were re-elected at the same remuneration as last year.’

VOTE OF THANKS. Mr Willi Pels moved a vote of thanks to the general manager and the staff. He was quite sure they were doing their duty to their very utmost. Tho vote was carried with acclamation. Mr Taylor paid a tribute to the ladies for tho earnest attention they gave the business, and on behalf of the staff returned thanks for tho vote of appreciation. Tho members of the staff, he said, were a fine lot of chaps, and they worked hard all through the year, thoroughly earning the approbation of the shareholders. *ln reference to the past they might like to know thn,t there were old hands still going strong. In both Dunedin and Auckland there was a worker with fifty years of service to his credit, and there were quite a number with thirty anti forty years’ service. Therefore, to hold its men like that, it must be a good company. As far as ho could judge, the prospects for the company in years to come were good, and there should be many years of prosperity before them. Of course, that depended on one or two things, for in tho first place the company could only march side by side with the prosperity of the country. Moreover, good management, good working methods, and a vision of the future were essential, ft would give him great pleasure to convey the vote of thanks to the staff. (Applause.)