KAURI TIMBER COMPANY (LIMITED).

Auckland Star, Volume XXIII, Issue 293, 15 December 1892, Page 3

KAURI TIMBER COMPANY (LIMITED).

Tee fourth annual meeting of the Kauri Timber Company-(Limited) was'hold at Melbourne on December 2nd. Mr Robert Harper, M.HA., Chairman" of directors, presided, and there was a good attendance Of shareholders. - ■■■■■'~, The ' Chairman1,1 in moving the adoption ®£ the directors' report, said: Since the Sist annual meeting the directors have given the Company's' affairs their most 'ftftrefnl and anxious consideration. The policy v which they informed the meetSag last year they intended to pursue las been followed to the utmost extent possible in the circumstances, and with' results which, I think, it will be admitted are on" the whole gratifying. The year-1891-2 has. been- perhaps the worst, so far'as 'the' timber trade is concerned, which has been experienced, and it is with some degree'of Satisfaction that the ■ directors submifto you-the results of the company's operations covering the last 12 months, which, notwithstanding the adverse conditions, show but little loss, and, at the same time, prove that the company's financial position has been much strengthened by the reduction of its indebtedness. Loaded as the company has been from the firßt, with enormous stocks of timber, both sawn and ■in the log—stocks which amounted in value last year.to about £273,000, and which still amount to £239.000—the fact that during a .year of terribly restricted business, of low prices*-, and; intense competition the company has been able' to. decrease its stocks and its liabilities to the extent which it -has, even although some loss be shown by the balance-sheet, is a fair indication, I take it,., of what. the company-would be able to accomplish should the demand for timber improve even to a small extent, and thereby enable it to..relieve itself of the heavy incubus of excessive stocks. In tbia connection—viz., the reduction of the in.debtedness of the company by, no Icbs a sum than about £28,000 —I would say 'that this reduction has been accomplished almost entirely during tho laßt six ■ months ot the financial year. Had trade been better and the demand for timber greater, the accumulated stocks, aa well as the indebtedness, would have been still further reduced. As indicated ab previous meetings, one grave disability under which the company has laboured is the existence of large contracts for the delivery of logs for some years ahead in quantities excessive , even for the then comparatively large requirements. . These logs under contract continue to come forward, while the demand for sawn timber being so . much restricted, it is impossible to make use of them. This has greatly increased, the company's outlay, and prevented the reductions In stocks and indebtedness . which are so much, to be desired. During the year, which we hare entered, the Board,hope for a better demand for their timber, and are doing all they can.to secure it. Deliveries of logs will, no doubt, continue, but it is hoped to a diminishing extent, and. every effort is being made to open up.markets for the disposal, of the company's produce. Prices have latterly been low, owing to excessive competition, bub the directors are hopeful that, on recovery .from the present depression an active demand will enable all. who are engaged in the timber trade to obtain better prices. The directors have during the year devoted their attention to the reduction of the expenses of working. They have made very large savings, and even now contemplate still further reductions in expenditure. In a concorn bo large as that of the Kauri Timber Company ■it is difficult to mako changes rapidly, aa \ caution has to be exercised to prevent any [ dislocation of business, bub everything is. ( being done on the one hand to economise ' expenditure, and on.the-other-to realise ' upon the large stocks of timber the com- ' pany hold. The expenses of management, salaries, etc., have been reduced from ■ f 88,772 last year to £63,242. (Hear, hear.) Ab regards the mining interests of the i Company some work haa been done towards . thedevelopment of the Company's property, ) though not so much as the directors had ) hoped for. The Owera mine, in which the ] Company hold. 20,000 chares, has ■ during the year begun operations,, and ', although the quality of the gold is low, .- being largely mixed with silver, yet the yield f has been fair, and the Auckland local > Board anticipate favourable results from it. i I was in hopes to have had a telegram I before'the meeting, giving the results of the clearing up of the mine to the 30th ult., but so far it has not come to hand. The , last return of bullion from the mine was r 1,291pz for 620 tons, realising £2,094, which , chows a- good margin of profit, although not so large as was anticipated. Mr Broad, 1 the new-manager in Auckland, has been ' ably seconding the efforts of the directors to place the company's business on a sound f basis, and we look for steady improvement in New Zealand as well as in Australia. ■ The directors have had to make con- / eiderable additions to the machinery {in the Sydney mill, and have as ' well erected therein an installation of [ "Grinneirs" sprinklers, the latter in order (to protect the Company's property against the risk of fire, and with a view to eflecfc a r saving in the large premiums which have to be paid lor a frequently inadequate cover. When the improvements in . the Sydney mill are completed, a much larger quantity of work will be done without additional expense. The engagement of Mr McMeikan ■as manager at Melbourne has not been con- . tinued, inasmuch as the directors, in the . present circumstances, and in view of the great decline in the timber. business, thought it advisable to economise as far as possible by making a saving in the expenses of the head r office. After this report has been ' disposed of a motion will be submitted for a reduction in the number of the directors from eight to eeven, and it is the intention of the board voluntarily to reduce the fee fixed by the articles pro raia. Iv this connection I would point out that when the company was formed, in addition to the number of directors fixed by the articles, provision was nlad3 for a managing direc--1 tor, whose salary has been saved for the f last two years, Mr James Balfour having r retired from tho board some time ago, the directors did not fill the vacancy in view of their intention to seek a reduction.of their I number. Sir Frederick Sargood has been ; -nominated for his seat, and his name will be proposed to you for re-election. "I beg .to move that the report and balance-sheet .be adopted. ~.. , ~ ... i Mr H. R. Reid seconded the motion, and considered that the report was as'satisfactory as was possible under the circumstances. Tho company's liabilities had been considerably reduced. A statement . which had been prepared for biin showed how great tho contraction of the timber ' trade had been in this market during, the last 12 months./ The importa of kauri into Victoria during the 11 months of tbig-year , had been less tban.s.on<\oooft., in 1891 the quantity was 14,000,000 ft, in , 1890 13,000,00016., and .in ISB9 16,8G0,000ft. The shareholders, must have felt relief at not being called upon to pay a call at the . present time. _ .. In reply to questions, . . The Chairman said it was not intended that the guarantors should make good the sum of £14,000 lost, in" the business of the last two years, as well as paying the 10 per cent, dividend guaranteed for the first four years. It was true that'several small mills were selling kauri at very cheap rates., but the Company was prepared to meeb any amount of competition. The motion for the adoption of the report was carried unanimously. On the motion of Mr John Sharp, Sir Frederick Sargood was reflected as a ' director ; «nd the total number of directors

was "reduced from eight to seven, bhe direefcors' fees being reduced in proportion. Messrs William' Holt and F. H. Wilson were -re-elected auditors,, and the meeting closed with a vote of thanks to the directors for the manner in which they had managed the Company's aS'airs under exceptionally difficult circumstances.