The accounts set forth ofr position very clearly, but I will add a few remarks on some of the items.
Under liabilities, Tls. 200,000 for 1910 issue of debentures have been re-issued in the name of the bank, and the bank overdraft is higher because of the heavy stocks and it also includes the balance obtained from the bank for the redemption of the debentures.
The reserve account last year stood at $100,000. To this has been added a sum of $10,000, voted at the last annual meeting and a further sum of $2,235.67, being balance of an insurance fund no longer required, making the total of $112,235.67 appearing in the balance sheet.
Your directors consider it very desirable to increase the reserve account to $200,000, and for this purpose I shall later on propose a resolution to set aside $87,764.33 out of the available balance shown in the accounts, a portion of this sum being derived from the sale of the property.
Under assets, the land and buildings of B.C. Lot 52 now stand at $250.816.35 which is considerably less than the assessed value of the land alone. It will not be necessary therefore to write off anything more for the buildings.
Full allowance has been made for depreciation on fixtures, furniture, vans and machinery.
Where depreciation is allowed for on stock, it is not shown in the accounts, but the new valuations are taken in the stock sheets, and marked on the goods.
Sundry debtors stood at $156,- 271.16 on February 28, but has been reduced now to a little over $100,000.
Although the balance at credit of profit and loss stands at an amount which, without any other consideration, might justify the payment of a larger dividend than 8 per cent., I am sure, gentlemen, you will agree with the recommendations your directors have made.
In conclusion, I wish to express the directors' appreciation of the excellent work of the staff during the year, and particularly Mr. Peach, who, in addition to his own technical duties connected with the factory, acted as general manager during the absence on leave of Mr. Trueman. I will ask you presently to endorse your directors' appre-
Text read from the printed page and cleaned; old type leaves the occasional error.