COMBINED BUYERS, LTD.

Taranaki Daily News, 24 December 1917, Page 7

COMBINED BUYERS, LTD.

REPORT OP ANNUAL M.EETIKG. The annual meeting of this company was held at the company's premises, in Dixon street, Wellington, on Friday, November 30, 1917. There was a, fair attendance of shareholders, and Mr. K. S. Abraham occuph-d the chair. In moving tin.- adoption of the report and balance-sheet, the chairman congratulated shareholders, firstly, on the ioj mation of the company, which is designed to enable shareholder.} to carry on what lias now become an ordinaryaieeessity in our daily life at a fair and reasonable cost : and, secondly, on the fact that the company can show a substantia! profit for its iirst. year's working, which is a fair indication that the claims oi the management that the overhead cost of running' the ..concern will he small, thanks to the large number of shareholders allied to it. At the same time lie paid a well-earned tribute to the managing-director and stall', who had devoted themselves with unceasing assiduity to the interests of the company. It was, however, the intention of the board to provide their manager with good assistance, and they bad arranged with Mr. Charles Morris, for many years connected with the firm of Messrs J. P.. Clarkson and Co., Ltd., to take up the position of organising secretary.

The chairman referred to the difficulties which a concern of this nature has io face, partly owing to the war, partly owing to the opposition of vested interests, and in some measure owing to interior troubles through the articles of association being badly drawn up, and some want ;of care which liad been shown by some of their canvassers. These troubles bad now been safely got over and need cause no anxiety if the shareholders will pull together, the real trouble being the war, which has seriously interfered with importations and arrangements for all motor requisites.

The chairman then briefly referred to the articles of association, which, under arrangement with himself and other directors, with the object, of getting rid of some objectionable features,. had been submitted to Mr. Skerrett, K,C, as it was on that condition he had joined the board. The necessary alterations have been made, and his second condition also carried out, .-viz., that the t'liairmlan should be appointed from the shareholders' directors. Whilst he had accepted the position.as a temporary measure, he was very pleased to say that Mr. W. S. Bennett, manager for Messrs Dalgety and Co., Ltd., bad now joined the board, and would fake the chair for the current year. Mr. Bennett possesses qualiffcar tions whie'h admirably suit liim for the position, and the company are to be congratulated on obtaining a man of his calibre) to take the reins.

in referring Io the balauee-slieet, the chairman =aid that the company held an exceptionally strong position. The shareholders numbered over' HON), and assets exceeded direct liabilities In- '.£4f1.000.

The company has invested (3:1000 in war bonds, whilst cash at short call was ample to provide for contingent liabilities, Premiums on shaves sold amounted do .CIB.I-2. which bad enabled ihem to wipe oil' the whole of their prcSilmiitary expenses and carry forward the sum of £51)8 IO; 10(1.

Referring to the. supply of motor requisites, the chairman poTnteil out that at present they were practically t-on-! finedfined to tyres, of which they held a heavy stock of good quality It was, however, their intention to send their manager shortly to America, whe.i" they hoped to make arrangements to supply •everything that is necessary, on advantageous terms for shareholders. The ehairnian ecncludcd by expressing hi= belief that the concern oulv wanted en ret'ul management and the loyal cooperation of it" Miiarelioltlcre io enable, it lo amply fullil the work for which it v» r a/ formed. The motion was seconded by Mr. James 11. Stevens, of Palnicrston North. In Ihe course of his remarks Mr. Stevens asked/for information as to tlie value of the Dixon street property, which was put down at £."i'.)oo in the balance-sheet. Vie also wished to know whether the Taranaki street mortgage showed a good margin. He further referred to the stock standing at £15,106, and asked if this was based on the usual landed cost price. Mr. Stevens alluded to the item of £"000 for sundry debtors as being extremely satisfactory, as also the amount due to sundry creditors. H« sahl lie had no doubt the company was fulfilling a very good purpose, and instanced a heavy saving he had made on tubes of good quality. He congratulated the company on the excellent work accomplished by the directors.

The secretary, in reply to Mr. Stevens said that the .'Dixon street property would command'a market value of at least £7OOO, and they had offers of £IOOO over cost price. In regard to the Taranaki street mortgage, that there was good margin, and the values of stock, belli were based on nett landed cost, though since landing they had appreciably increased in value owing to the rises in the market.

The chairman also bore out the secretary's statements, and said that in the discussion with the auditor nnd banker of the company he had amply satisfied himself as to the value of the%ecurities held. He further read a report on the method of costing, and a general inference to the accounts made by his own secretary, after thorough investigation, which was in every way satisfactory. Messrs Liardct arid "Dr. Faiilke referred to difficulties in the way of obtaining copies of tile articles and prospectus.

The chairman admitted that the board, before its reconstruction, had hardly considered shareholders in tins respect, but he pointed out that the articles were now being considered by Mr. Skerrett, with a view to important alterations in | the interest? of shareholders. As soon |an these were completed, shareholders would be asked to consider them. Tr. tie meantime they can get copies of the ; present articles on application to the secretary. '

ilr. Goss, of Marlborough, complained that he was compelled to take five shares whilst others had only taken one. The chairman pointed out that originally the company allowed shareholders to eome in on one share, but the present (board had made tie lowest, limit three shares, in cases where a man only held a very small car.

Mr. .Tolm Smith, of Wellington, conjgratulated the company on having had a [successful year, and took occasion to pay | a well-deserved tribute to the mana"iti" director, Mr. Stephens, for his unfaUin" courtesy and his zeal in sparing no eCforts hi'tlie interests of the concern. Mr. Murray, of Marlborough, que*. t : oned the advisability of writing-off the whole of tlie preliminajrv expensps. The chairman pointed out that preliminary expenses were a very doubtful asset, and he eoiisidered that the sooner they disappeared from the balance-sheet the bet-

The report and balance-sheet were adopted by unanimous vote. Mr. IVunett returned thanks t'ov his election as a, director, and mentioned that it wa s only after cnri'ful. inquiry and consideration that lie agree'd to accept thi) invitation to join the board, lie was very mueh impressed with the future prospects of the company, and felt sure that, given loyal support by shareholders, it would fulfil all the objects for winch it was formed. He agreed with the chairman in regard to the wisdom' of providing at once for preliminary expenses. He assured the 'shareholders that bis best endeavors; would be used in the interests of the company.

Mr James Gow, of Canterbury, stated that be was i,ic of the lirst contribuing shareholders of the company, and the first shareholders' director. In bis opinion the company had amply justified its existence, and be bad already made heavy savings on his tyres. He felt sure that when times were normal and the company extended its operations in other branches of the motor trade, that the benefits would be materially increased. Whilst it was a long way for him to come to attend meetings, he was quite satisfied to do so in the interests of the Southern shareholders, and further, that be was quite sure the concern would be well managed by the present director.-.. Mr. Manthef thought that the prospectus should ble more accessible to shareholders—should be more -freely distributed —but he considered the position of the concern was entirely satisfactory, thanks to the untiring efforts of the management, and lie moved that a hearty vote, of thanks be accorded to the direc tors, managing director, and staff, which was seconded by Mr. Smith and carried with acclamation.

After a vote of thanks to the chair, the meeting terminated.