The annual general meeting of shareholders in this Company was held on Tuesday afternoon at the Medical Hall, Nankin Road, Mr, A. McLeod presiding. There also present Messrs. N. Macleod, M.D. E. W. Rice (Directors), F, W. Such, H. J. Limby, C. Dowdall, J. Booth and G. W. Nvél (Secretary), representing in all 627 shares.
The notice convening the meeting having been read, The Chairman said:—'The report for the past year and the accounts have been in your hands for some days, and J presume they may, as usual, be taken as read. The accounts show so fully the business transacted during the past year that Iam left very little tu say, 'The net profit for the year was $18,846 against $19,756 in' 1890, We have written off $3,000 for consideration to vendors, or as it is called in the accounts, goodwill and trade: marks, and $3,294.16 "for depreciation of furniture, fixtures, aécated water plant and machinery. After this there remains $12,552.12 to be dealt with us net profit. Of this we have distributed $6,000 as an interim dividend, and we wow propose to distribute $6,000 more or 5 per cent. on the capital, as a final dividend, making 10 per cent. for the year. We trust that under the rather adverse circumstances prevailing during the year, you will consider this profit for the year not unsatisfactory. I have really nothing to add, gentlemen, but before asking you to pass the report and accounts I shall be very happy to answer any questions that may be asked.
Mr. C. Dowdall asked if $6,000 was not a large amount to put down to depreciation account. He merely wanted to be assured that the matter had been thoroughly consi dered, There was always more or less difficulty about deciding onthe consideration to vendors, He would also like to know if there was something carried over beside the dividend.
The Chairman replied that $552.12 had been carried forward. As to the other matter referred to by Mr. Dowdall, he (the Chairman) might say the Directors had always thought it very desirable that the amount for goodwill, which was reali somewhat of an imaginary nature, should be written down. The whole business had boon taken over for a lump sum, a large portion of which was for goodwill, including trade marks, It was not a very reliable asset and the Directora thought it desirable to write it down as much as possible. The amount written down for depreciation was only $,3294.16, and they added every year the amount expended in improving their plant, which was constantly deteriorating, and no doubt something considerable should be taken off for wear and tear, He thought under the circumstances the amount was not too large, us it would place them in a better position and enable them to write off " smaller amount in future should the profits ever decrease.
Mr. F. W. Such asked if the stock was put down at the home cost plus the charges, and if so at what exchanges, either when the bills drawn against arock had been paid or at the current rate to-day.
The Chairman replied that the stock was put down in the accounts at home cost plus freight and charges, and at the exchange of the day on which the bills against it had been paid.
Mr. Dowdall asked the Chairman to explain why depreciation was put down at $6,000 when, as he understood, it was really only $3,000. In the accounts he found "Depreciation account $6,204.16" and the Chairman had mentioned that it was really only $3,000.
The Chairman explained that the item included consideration to vendors $3,000, It was put down for convenience' sake in one item together with depreciation. The amounts were Consideration to vendors $3,000," "Depreciation of shop fixtures
Text read from the printed page and cleaned; old type leaves the occasional error.