AUCKLAND FIBRE COMPANY. ANNUAL MEETING.

Auckland Star, Volume XXVI, Issue 119, 28 May 1885, Page 2

AUCKLAND FIBRE COMPANY. ANNUAL MEETING.

The annual meeting of the above Company was hold at noon to-day in the office, Stanley-street, M> J. M. Clark (Chairman of Directors) being in the chair. Mr Win. Johnston (Manager) read the following .report and balance-sheet: —

'«In submitting their report for the past year, your directors regret that circumstances over which they had no control render the results of the past year's trading less satisfactory than they had hoped for, The very largo diminution in tho acreage under wheat in the South, together with an unexpected importation of binder twine, caused our sales of that article to be less by one-half than the quantity we had arranged to produce and for which we had imported the necessary raw material. The Hupply be»i>K thus largely in excess of the requirements of the trade, pricey fell fully £5 per ton below those of the previous year. Owiug to outside competition, we found it necessary to reduce the price of our manilla rope, although the hemp from which it In made cost, on the average, the prices previously ruling. By the accounts now submitted you will perceive the Btocks are very heavy, but these have been taken at cost, and the whole of the large amount of interest paid during the year, say £1,921, has boon charged to the production sold till date. Tho nett profit thus amounts to £077 11s 2d, and this we recommend to ba carried forward; making the balance at credit of profit and loss account £1,497 13s Id. One of your directors, Mr James Buttle, has resigned his seat at the Board. In conformity with the articles of association, two directors now retiro, namely, Mr J. M. Clark and Mr C. B. Stono, but both are oligible, and offer themselves, for re-olec-tion. Your auditor, Mr John Milne, now also rotires, but socks ro-elcction."

BALANCE-BnEET OK THK AUCKLAND FIBP.R MANUI'ACTUHINa COMPANY (hIMITKD) TO 80TH April. 1883.—Dr. — Assets :To cost of lund, bulldlnKß. and machinery, £29.11317 a Cd; mindry debtors. £5.014 148 !)d ; btllß rooolvable, £273 18s ] stock on band and in process of manufacture, £21,0fi5 17a 3d ; stock of atores, oil. coal, tallow. Sec., £303 la lOd ; cash on hand, £27 lla Od. Total, £5(5,008 0s lOd.-Cr. - Liabilities : Hy capital. 25.000 sharoß at £1 tach, £25,000—Sharea BubucriDcd and fully nald up, 18,795, £18,7<J5; sundry creditors, £3.173 3a 2d ; Bank of New Zoalnnd, £27,385 12b 8d : bill* payable, £5,446 12a 9d; balance Profit ana Loss Account, £1,197 12b 3d. Total, £50,098 0s lOd. Profit and Lobh A ccount.—Dr.: To general expenses, ropalrs, etc., £790 2a 4d; Insurance, IUO'J ; lnteroet and discounts. £2,291 13s 7d; balance £i,497 12a 3d. Total, £1.885 Ba2d.—Cr.: I!y balance from last year (£1.81)3 18s 6d), logs dividend paid and honorarium (£1.075 7s sd), £818 lls Id ; KTOBa proflui on sales, £4,005 7s Id ; transfor foos, £1 IDs. Total, £4,885 8a 2d. By balanco brought down, 41,497 12fl 3d. John Milnk, Auditor. Auckland, May 27,1885. Tlio Chairman, In moving tho adoptioD of the report and balance-sheet, said that tho directors appeared before the sharoholders with far loss satisfactory romlts before them than on a similar occasion last year, Thon they had to report as tho result of tho yoar'n tradingoporationsaprofitat tho rato of 8 per cent, upon tho paid-up capital of the Company, and they had before them the proftpoct of a considerably increased profit for the ensuing year. This p-iospect, however, had not been realised, and the diroctorn were now callod upon to report that the rosuit of tho past year's trading had beon a profit of rather less than 4 per cont, upon the paid-up capital, while the prospects were hardly so good as tlioy wore at the beginning of the year. He might take tho opportunity of supplementing tho report with one or two explanatory remarks. It would bo obßorved that nothiug had boon put down in Profit and liOsh Account for depreciation of machinery. That, howeyer, was not an omWion. Tho land and buildings had been put down at their fair cost, and as the funded proporty had considerably advanced in vuluo ninoo it was bought, this increase would inoro than cover the amount of depreciation up to tho present time. The directors, however, proposed to at once stint a depreciation account. As to the position of tho Company, tho I fact that it was worse off now than had boon anticipated was chiefly attributable to one caueo, viz., tho shortcomings in tho sales ot reaper and binder twino. Thin was principally due to tho great dimunitiqn in tho aroa of land under crop, and partly, also, to what he might cull tho unfulfilled promises of the Into Government re the re imposition of tho duty on imported twine. Thorofovo, not only had there been a cle.Toafoi.l consumption, but greater competition than they had beon led to expoct. uu^. ■u«»t(|«. t<\)<v VmAruVjr iinne, £>ut tfiey did not manago to sell half that quantity. A*t however, they had prepared for tho sale of tho larger quantity, they had to boar the exponso of interest and insurance upon tho surplus. As regarded tho prospocts of succeeding years, he was hopeful. The duty upon twine had been ro-imposod by the present Government since January lost, and the directors felt that after allowing for the diminishod aroa of land under crop, this ICJ per cent, import duty would onablo thorn to defy competition from nbroud. Therefore they caloulatod upon a sab of a.t loast 59 tons more than last year. Further, oh thoy now know protty noarly what their Rules would bo, they folt satisfied that thoy could work tho concern with a capital of £10,000 or £12,000 loss than now appeared upon tho balance-sheet and raw material and stock. With less interest to bear, and relying upon their profit on reaper and binder twine, tho directors believed they would secure a fair, if not ahandsomodividenduponthe invested capital. In saying that ho did not take ioto account thoir increasing sales of rope, This odvantago would bo sensibly felt by tho Hhareholders this year, as thoy hod a heavy indebtedness to clear off, but in the following years ie would become more and inoro apparent. '•' Mr,l. M. MoLAitmaiN in seconding the motion, thought that it would be a better principle to make tho honorarium in all caseß upon tho results achieved. MrR C Bakstow pointed out that tho vote passe^ last year was simply for services , rendered. He allegod, howovor, that honorariums should bo governed by the results. After Messrs Groon and Clark had also replied the motion was put and unanimously curried. Tho retiring diroctors (Messrs J. M. Clark and C. B. Stone) wore re-elected, and Mr John Milne was re-elected auditor. Tho meeting closed with votes of thanks to tha directors and managers.