COMBINED BUYERS, LTD.

Taranaki Daily News, 14 December 1918, Page 2

COMBINED BUYERS, LTD.

J REPORT OF ANNUAL MEETING. I The Annual Meeting of the Company was held at the Chamber of Commerce rooms, Feathei-ston Street, Wellington, on I'riday, November 2'Jth, IKIS. Tiie cliairmim of directors, Air. W. S. Bennett, occupied the chair, and there was a fair attendance of. shareholders, including -Messrs. It. Id. Abraham and G, A. Wallis, directors. In moving the adoption of the report and balance-sheet the Chuirmau contrasted the conditions now prevailing with those that existed on the occasion of the last meeting of shareholders, and paid a tribute to the Allied forces on their triumph over tho Central Powers. He specially eulogised tho part played by New 2«alanu throughout tlie war. Dealing- with the alfairs of the company, the chairman congratulated shareholders on the result of tiiu year's transactions which showed a not profit 01 £524 lis (id after providing for all ordinary and special expenses and all contingencies. It was a further source of gratittcutlou that tho company had undoubtedly justified Us formation to the fullest extent. Notwithstanding tile strenuous timer, the abnormal trade conditions of. the past year, and the insistent opposition of the trade, the turnover had shown considerable expansion ovet that of the previous year. They had been able to Maintain more than a sufficiency of stocks of tyres and tubes, and had also secured large supplies of accessories, thus enlarging the company's usefulness to .shareholders .at rates considerably below the ordinary prices levied by others. As forecasted at the last animal meeting, Mr. Stephens;, tile managing director,, visited Amer-' iea during the .year,,, and flotwitlistapdlng that it was a most inopportune time, by reason of | war activities on that side, the visit was fully justified and the board was satisfied that good j business would result. It was found that [manufacturers and others were only too anxious and willing to trade with the company, and no difficulty was anticipated in continuing and extending the service to shareholders. The company had accepted the Dominion agency for the Paige car, built by the Paige Detroit Motor Car Company, and by Tepute unilte equal to the Buick, and it was anticipated that these cars would he available to shareholders at a very reasonable rato compared, with present ruling prices. The first shipment will arrive at any moment. Supplies of lubricating oil have been arranged for, and the first two shipments >re now on the water. At 3t)th September 2498 shareholders were allied to the company. The chairman took the opportunity of pointing out to shareholders the Advantages of trading with the company to the fullest extent of their roQuirements. He applied to members to further help by Interesting others in the company. Running costs of cars and other motor vehicles would be. appreciably reduced by members placing the whole of their orders for tyres, tubes and accessories with the company. Only a very small minority at present failed to do so. He hoped.that this disability, small though it was, would shortly te overcome. In dealing with the balance-sheet ho drew attention to the very satisfactory increase of 1164,482 10s In the subscribed capital, notwithstanding that the past year had not by any means been at all favorable for the sale of shares in commercial undertakings. Sundry creditors had Increased by £983 5s 7d, attributable to the larger commitments by reason of the increased business now being • transacted. The assets exceeded direct liabilities by £98,C 47. By the purchase of a site at Taranaki Street, Wellington, for new premises, the Property Account showed a large increase, but the purchase was a good one, and provided an area 9 ifficient for all purposes. Unttotuiiatidy, owing to tho shortage of s'eo:, the uoird had rot been able to place before shareholders their proposals regarding the building, but the preliminary plans ate displayed for inspection. The stock showed a large increase, now standing at £46,109, but stocks must expand, in conformity with the expansion In the share list, iliindry debtors showed an increase of £5094, attributable to tho larger share list, and all of which may be considered good. Cash on deposit and at short call stands at £21,500 and which trill be absorbed In duo course. Investments in New Zealand war loans stand at £SOOO, of which it Is proposed to allocate £3OOO to a leseive fund.

The working account speaks for itself, but tuo chairman emphasised that the whole of the expense of Mr. Stephens' visit to America 1i.v.l been provided for, together with all expense appertaining to Iho sale of shares. Having regard to the fact 'that the full benefits of both will only be apparent in' the future, such might reasonably have been spread-over a period of years, but the board deemed it best to provide for the whole amount at this juncture. The chairman then paid a tribute to his colleagues on the board, the managing director, and the staff of the company,'for their good work during a strenuous year. After dealing with the figures appearing in he appropriation account lie moved: "That the report and balance-sheet now read be approved and adopted and that of the amount £3882 12s 4d standing to tho credit of profit and loss appropriation account, S3OOO be allocated to the establishment of a reserve account, £166 183 to writing down goodwill and fittings account, leaving £716 14s 4d to be carried forward." Mr. R. S. Abraham, in seconding tho motion, remarked that although usual for a shareholder to do so, he, having regard to his knowledge of the inner workings of the company, felt it would be more satisfactory that this duty should devolve upon him. Hit fully concurred with tho (lialrman regarding the disabilities and troubles with which the company had been faced, and which had no doubt prevented still further progress. Nevertheless he felt gratified, not only as being the previous chairman of tho company, tut because when he accepted that position ho saw tho great possibilities ahead and the necessity that existed for the establishment of such ». company. Notwithstanding many disabilities Including the Influence of "the trade" against the company, staff troubles, etc., the company had still been able to put before shareholders a balance-sheet which docs It credit and shows uroat, promise for the future—provided the ihalrmans appeal for the loyal support of all ihareholders is responded to. There was one point which appealed to hira .-that was the disability of the country shareholders In having to obtain their supplies from Wellington. Although certain improvements had been made, the company had not yet been f.ble to make-arrangements for representatives' -In all the largo towns of the Dominion, but he assured shareholders that this would come in due course, and would thus supply a want that Is r.l present felt by members. Mr. Ahraham then paid a tribute to tho work performed by the chairman In tho interests of the shareholders during the year. He himself had relinnuished the position, realising that King away from Wellington he could not keep bat control which was necessary. Ho congratulated himself on having selected the present (lialrman to succeed him, and could not understand how the chairman had got,through such a.ii enormous amount of work. He knew soniei nns of him in other capacities, but despite those arduous duties he had responded to all rails In an eminently satisfactory manner. This ho thought, should bo fully realised. It was ■ ~", ra&tter for constatutatton that they .should have a man of Mr. Bennett's standing and calibre to direct the affairs of the company Mr. It. D. Mackenzie, Master-ton, inquired as | to whether an active canvass for increased capital was being conducted, and also as to whether oop.es of the prespectus were procurable The chairman replied in the affirmative, and relaarrad'that all demands for the prospectus had promptly been responded to Mr. Mackenzie alao drew attention to the J-bsc-nce of any reference to possible dividends. Although fully realising that shareholders were leeching a very substantial dividend in the reduced cost of supplies, he inquired the Intension of the board regarding, the payment of a I iJividtnd in the future. j The chairman could not speak as regards the .I'oltcj of future boards, but that of the present |..oard was not to pay dividends, but to reduce Hie cost of goods to shareholders whenever it Mas found that the present added percentage was returning an undue profit. (Hear, hear ! livery effort would be made to conduct tho business on a lower percentage and thus reduce costs to shareholders, thereby giving the dividend to the shareholder that did his business with Iho company. (Hear, hoar.) Mr. Partridge congratulated the board on being able to bring down such a satisfactory statement. He was perfectly satisfied with the position, and felt that the board was to bo congratulated on their eminently good work Havng regard to the manner in which the d'lfflculHes of the past two years had been overcome, he looked for mil greater success, but felt that It was unreasonable for shareholders to expect dividends. He was well satisfied with the present policy.

Mr. Brice Inquired regarding tho term "Goodwill and Fittings." He had no objection to the writing down of fittings, but Inquired as to the reason for not dealing likewise with goodwill. In reply the chairman' explained that the goodwill represented £IOOO actually paid to the vendors of the old business, and that It was tlie Intention of tHe board to get quit of that, is Boon as possible. They did not feel justified in asking tho shareholders to do anything this year, but gave nn assurance that it would have attention at first opportunity. Mr. -Johnson drew attention to tho amount expended in salaries and travelling expenses, wit tne chairman. pointed out that such included the whole of the expenses of Mr. Stephens' visit to America during an absen* of six months, together with the total amount extended In canvassing for the' sale of shares, n addition to travelling expenses. Against the i-'-tter they had, of course, the premium on the : hares, but they were compelled to show the former In the working account, and the latter n the capital acoount, The motion for the adoption of the report ;>nd linlanco-shoet was carried unanimously. • Tlii. retiring director, Mr. W. S. Bennett was ve-elccled, and Mr. H. Ivory was re-elocted iiiiiltor at an increased fee. A hearty vote of thanks to the managing r I CK< " ? n , a Btatt wns carrled »>" acclamation Ibe chairman, in returning thanks for his ;-a c.cetlon, asaurcJ &e &h.Mehold«J Uwt their