CANTERBURY SALE YARDS COMPANY.

Globe, Volume IV, Issue 340, 15 July 1875, Page 3

CANTERBURY SALE YARDS COMPANY.

The half-yearly general meeting of shareholders was held at Mr C, Clark’s rooms last evening. There was a large attendance, and the chair was occupied by Sir J, O, Wilson, The following report and balance-sheet were read: —

‘ ‘ Your directors have great pleasure in reporting that sales have been held regularly on Wednesday in every week during the seven months intervening between the 18th November, 1874, and the 30th June, 1875, During that period 107,369 sheep and 6547 head of cattle were yarded, giving an average of 3855 sheep and 204 head of cattle yarded per week. The returns during the above period, including yard fees, rent of refreshment room, and of the stables, amount to £5Ol 17s 3d. This sum does not include the rent of offices for eight weeks, amounting to £B. The expenses amounted during the period under review to £285 8s lOd. This sum includes insurance of buildings for the whole year ; interest for the whole year on the one thousand pounds (£1000), balance still due to Mr Tickner for the price of the freehold, and interest on the bank overdraft. The profits of the seven months therefore, amount to £266 13s 6d. The directors regret to report that the company sustained great loss during the months of March, April and May, in consequence of a flock of scabby sheep having passed through the yards on the 24th Feb. last, Measures were at once taken to disinfect the whole of the sheep yards, but was some time before public confidence was restored. Your directors are convinced that the business of the Canterbury Sale Yards is steadily increasing, and that the profits in future will warrant the expectation of good dividends. The shareholders are aware that in the constitution of the company the directors are authorised to raise £6OOO by the issue of twelve. hundred shares of £5 each, but your directors are of opinion that in the meantime it is advisable to issue only one thousand shares. Out of these thousand shares eight hundred and sixty-seven shares have been taken up, leaving one hundred and thirty-three shares unsold. If these unsold shares were taken up, the proceeds might be devoted to paving the yards and other necessary work. —J. Cracboft Wilson, Chairman.” The statement of accounts showed on cash account a debit balance of £378 14s 6d, being overdraft at the Bank of Australasia, The profit and loss account showed—Receipts by yard fees, £394 18s 9d ; by rent account, £lO6 18s; a total of £5Ol 17s 3d. The expenses on the same account amounted to £235 3s lOd, leaving a balance to credit of £266 13s sd. The general balance-sheet was as follows :—Dr.—To capital account, £3928; amount due Geo. Tickner on account land, £1000; debts due to tradesmen as per schedule annexed, £166 12s 3d; amount of of overdraft, Bank of Australasia, £378 14s 6d; amount standing to suspense account paid into bank but unaccounted for, £3 10s ; balance to credit of profit and loss account, £266 13s sd—total, £5743 10s 2d. Or— Immovable property—by freehold land, £2000; buildings, £3556 2s; amount due for yard fees as per schedule annexed, £169 0s 2d; amount due for rent of stables and bar, £lB Bs—total, £5743 10s 2d Mr Makeig read the following letter with reference to the balance sheet and accounts : •

“Hereford street, 14th July, 1875. “Jo the Directors of the Canterbury Sale Yards Company [Limited],

“ Gentlemen—l have to report that the books as balanced and laid before you, with the profit and loss account and balancesheet at the meeting held on Saturday, the 3rd inst, have been submitted to the auditor, who has gone through the whole and found the figures and vouchers correct, but he objected to the balance-sheet, saying it was not in accordance with the Act, as the position of my capital account happened to be at the bottom instead of the top of the debit side of the account. I furnished him with another, made out strictly in accordance with the form set forth in Table B of “ The Joint Stock Companies Act, 1860,” but this he would not sign without taking out £407 from the assets, and deducting a similar sum from capital account to make it balance, showing anything but the real position of the company’s affairs, as you see by the printed balance-sheet, signed by Mr Alport, the assets are only £lB7 8s 2d to meet liabilities to the extent of £548 16s 9d, whereas the true state of the case is, the assets are £594 8s 2d, more than enough to meet these liabilities, and this he calls making the balance-sheet agree with the Act. “ As Mr Alport positively refused to sign the correct account, there was no alternative but to print the one he had had altered and signed, which he did upon his own responsi- * bility. But for the sake of my own reputation as a public accountant, I cannot let this mis-statement of the affairs of the company go before the shareholders without also laying before you, which I do herewith, the correct balance-sheet, submitted to the meeting of the 3rd inst, and signed by the chairman, and the other I altered to agree with Table B, but which are financially the same, so that you may be enabled to put the true position of the company before the shareholders.

“ I have the honor to be, gentlemen, “ Your obedient servant, “ Geo. A. Makeig, “ Accountant.”

In answer to a question from Mr Hiorns, The chairman said he thought the loss on the scabby sheep going through the yards could not have been less than £IOO, taking into account the sales which bad been frustrated.

1 Mr Mcßeth thought that it might be said that double the amount had been lost by reason of the sheep alluded to passing through the yards. Mr John Gebbie moved that the report and balance-sheet as read be adopted. Mr Hiorns seconded the motion, which was agreed to. Mr R. Wilkin said he thought the report and balance-sheet showed how satisfactory the work of the past half-year had been. However, the directors had not been able, through want of capital, to do all that they might wish to do, and also it had prevented a dividend being paid by the company. There were, he might say, a number of per - sons who took a great interest in the yards, and were fond of pointing out defects, but they took very good care not to risk their money in the venture. [Hear, hear.J They must recollect that it would be necessary also to pave the yards or to pitch them so as to prevent the nuisance now complained of. He might also say that the directors had at first issued 1000 shares, of which 867 had been taken up, leaving 123 to be disposed of, which he thought should be first offered to the general public. He would moye—“ That the directors be instructed to receive applications for the remaining shares up to 1000 from shareholders only up to the 15th August. After which any shares remaining unsold may be disposed of to the general public, with any premium which the directors may see fit to impose.” Mr J, T, Ford seconded the motion.

Mr Hiorns said that he thought the best way to carry out the paving of the yards, which would, he believed, cost about £IOOO, would be to put a certain sum aside per year for it, which would spread it over a term, instead of drawing on the funds of the company all at once. Mr Wilkin said that this was precisely the course the directors intended to take.

The motion was then put and agreed to. Mr Rossiter asked whether the amount of profit would be carried to the general account? If this were so, the general public would come in and reap the benefit of the enterprise of the early shareholders, who, he thought, were entitled to this money on account of their inaugurating the work. Mr Wilkin explained that the directors, not being able to declare a dividend, had decided to treat the shareholders’ account as an interest account, and pay when a dividend was declared pro rata, after the way of interest, The interest on unpaid shares should also be deducted from dividends when paid. After some further conversation, Mr Henderson moved a vote of thanks to the chairman, which was carried. A number of shares were taken up in the room, and the meeting then adjourned.