PAYING DIVIDENDS

Sun (Auckland), Volume IV, Issue 1007, 25 June 1930, Page 12

PAYING DIVIDENDS

FARMERS’ TRADING COMPANY ANNUAL MEETING : “There was not an abnormal change during the past year, although quite a decided one, and the dividends ate ; being paid out in spite of the keen i competition and a hard year in which many of the older firms in the city found it difficult to get business. Every month the Farmers’ showed figures which were ahead of the corresponding periods of the previous year,” said Mr. J. Boddie, chairman of the board of directors, in a short address at the annual meeting of the Farmers’ Tradins Company, Ltd., held thffe morning. : There was a large attendance. | Continuing, Mr. Boddie said that for I the first time, the shareholders had j realised that the success of the busij ness rested a great deal with them, j and the results of the sales made to them was most gratifying. The 7 per cent, dividend paid out on “A” and “B” preference shares amounted to about £28,000, while the dividends of 10 per cent, on ordinary shares were ready to be posted to shareholders, and were merely awaiting the approval of the meeting. Apart from the numerous small shareholders, there were those with a great deal of capital invested and some indication of this could be gathered Horn the fact that one man was actually receiving a dividend amounting to £460. The report and balance sheet, which i lias appeared in The Sun, was approved j and it was decided to pay out 10 per i cent, on ordinary shares. DIRECTORS’ REMUNERATION ; “I think it is only reasonable to : raise the honorarium of the directors ■ r *)L this stage,” said a shareholder, j “They have put the company on its i feet and I move that the present honorarium be increased by £SO a year/’ The motion was seconded but it quickly met with disapproval. “I stand here with £SOO invested in the company and that amount has been reduced to £2OO. In the face of that I could not hear of any increase until ■ m y money has been brought up to the j original value,” said Mr. Nash in moving an amendment that the directors’ remuneration should remain the same. “When the directors can bring the standard up again then they are due for a rise, but the shareholders should be considered first,” remarked the seconder of the amendment. “I have nothing to say against the directors. They have worked hard, but as gentlemen, they should refuse any increase.” Mr. Boddie said that the directors regretted having to do certain things, but it was necessary and there was no way out of it. There had been the writing down in capital but the directors could not be blamed for that; it was the right and only thing to do. Your directors are the best judges and only for their actions, the door would have been opened to the risk and ! clanger of the company going back into the deep again,” commented Mr. Boddie.

“There is no company in this City which is paying its directors as small a sum as We are. It is ridiculous to ask men to come from all parts to attend to the business of the company for £IOO a year,” said Mr. Robert Laidlaw. general manager to the company. The business of the company most satisfactory and there has been £170,000 extra turnover this year.” The amendment was carried by a show of hands.

In replying to a vote of thanks and appreciation to the company’s staff, Air. Laidlaw said that in endeavouring not to make it a one-man concern, he had 15 executive officers well-schooled and he met them once a -week. They were competent men and could carry on the business if he were away. There were 55,000 customers on the mailing list, and of these 12,000 were shareholders, who were by far the better customers.

The retiring directors, Mr. A. B. Bell, Mr. R. D. Duxfield and Mr. L. 11. McAlpine were re-elected.