War Being Waged In Fertilisers

Sun (Auckland), Volume 1, Issue 60, 2 June 1927, Page 9

War Being Waged In Fertilisers

LOWER PRICES A LARGER OUTPUT A LTHOUGH stated to be rather less than last year as a result of the low competitive prices ruling during the last two months of the financial year a net profit of £25,186 19s 6d for the year ended March 31 was reported at yesterday afternoon’s meeting of the New Zealand Farmers’ Fertiliser 'Company. This was considered a gratifying result. The annual report also stated that the balance brought forward last year, £7,698 18s 3d, made available the sum of £32,885 17s 9d. The directors, having satisfied themselves that the company’s position was thoroughly sound, recommended the payment of the usual dividend of 7 h per cent, leaving a balance of £13,236 5s 3d to he carried forward to next year. 4 A RIVAL COMPANY

In moving the adoption of the report, the chairman, Mr. A. A. Ross, Raid that excessive competition had to be met during the year as a result of the New Zealand Co-operative Dairy Company entering into the business as shareholders in a rival company, and setting out to eliminate the merchant from the business. So far as the New Zealand Farmers’ Fertiliser Company was concerned, said Mr. Ross, they realised that the merchant could conduct the distribution far more economically and efficiently than they could themselves. Replying to a question, the chairman said that he did not think that the low prices at present prevailing were resulting in the works being run a loss.

Regarding the supplying of manure to shareholders at wholesale prices, the chairman said that it would be impossible to do so, particularly in view of the present circumstances. l Mr. S. Irwin Crookes said that if the present “war” continued, shareholders would probably have to forego their dividends next year. Rebates were out of the question. Miss B. Hay said she was pleased to learn that no rebates were to be given. Miss Hay added that unfortunately she had once been associated with a company that had given rebates, and it had paid its last dividend out of an overdraft. In regard to the position of the dairy companies, Mr. J. Wilson, general manager, said that it would be a difficult matter to fix a flat rate to dairy companies and merchants alike. In the past some dairy companies abused their privileges bv retailing at prices lower than those fixed. ELIMINATING MERCHANTS

Mr. Furness protested against a continuation of the policy of dealing through the merchants. He asked if a guarantee would be given that the dairy companies would be kept on the Price-list after the “war” was over. The company, he said had been formed to tight such companies as tvempthorne and Prosser, but he considered it was now allying itself with the concern he had named. Mr. Wilson said that in fairness to Messrs. Kempthorne Prosser and C ompany he had to state that, from ms long association with that company, he had always found them to >© scrupulously fair. On one occahe had known them to keep the wH Ce °* superphosphate down to £ S nen over £H was being obtained. , A he report and balance sheet was \?°Pted, and the retiring directors, A A - Ros «- S. Irwin Crookes, q «• Harding were re-elected*