WiLSONS CEMENT CO.

Auckland Star, Volume LXIII, Issue 134, 8 June 1932, Page 4

WiLSONS CEMENT CO.

TO-DAY'S ANNUAL MEETING

ADDRESS TO SHAREHOLDERS,

REDUCED SALES OF CEMENT,

"As anticipated at our last annual meeting there has been a steady fall in the consumption of cement throughout the year; this is evidenced in the balancesheet, for as sales reduce, so must profits. Nor docs there seem at the moment any prospect of an immediate revival in the building trade."

This was the statement made by Sir Geo. Elliot, chairman of directors of Wilsons (New Zealand) Portland Cement Company, in his address to shareholders at the annual meeting held to-day. In moving the adoption of the report and balance-sheet, which have already been published in these columns. Sir Geo. Elliot claimed that the results which disclosed a net profit of £02,950 were reasonably satisfactory. Referring to tie fact that no bonus was being added to the 10 per cent dividend, he said he was confident shareholders would endorse the view that it was wiser in times such as are now being experienced to maintain, as far as possible, the strong financial position the company had attained. Keferring to balance-sheet items. Sir Geo. Elliot said the company's investments, composed mostly of Government bonds, might be considered sound. These investments, although written down, stood 011 the books at a little above the prices quoted on the Stock Exchange at March 31. Healing with the eifect of trade conditions. 011 the company's operations, Sir Geo. Elliot said the curtailment of our national income, caused by lack of demand and consequent lower prices for our exportable goods, had resulted in the tightening of both the public and private purses, and pending an improvement in financial conditions, many large construction works had been stopped and others which were proposed had been indefinitely postponed. SOlllO idea of what the slump in the building trade has meant to the cement industry might be gained when it was realised that the total consumption of cement in iS'cw Zealand for the year ended March 31, 1932. was comparable with the quantity consumed ten years ago. Compared with the year ended March, 1928, there had been a drop of over 40 per cent, and the demand was still falling. No opportunity was being lost in pushing the company's product, and in particular everything possible was done I" promote its use in buildings and permanent roadways. Plant and Staff. The plant at Portland had boon fully maintained in iirst-class running order, and no expenditure on repairs of any consequence was expected during the current year. Capital outlay during the year had been the lowest in the life of the company, the only work undertaken being alterations in the fitting shop to improve working conditions, and a little rock filling done at the inner end of the wharf.

Owing to the heavy drop in trade, the works were shut down .at different periods, aggregating ten weeks in all, and it seemed likely that further stoppages would occur during the present year. Stoppages for any cause made it increasingly difficult to keep the costs of manufacture down to a payable level, but the individual members of the staff were alive to this fact and were heartily cooperating with the management, a>nd with considerable success, in an endeavour to keep costs from rising unduly. The Wairua power station had been running smoothly throughout the year and the power generated during the past summer was considerably greater than that for the same period last year. The company's steamer Hcrekino continued .to give excellent service, although the cargoes carried were much less than formerly. Officers and crew were co-opera-ting in an endeavour to reduce running costs. Portland Township. Portland township was being well maintained, and houses, halls, factory buildings and property were in first-class order. The tree plantations were doing well and were improving the appearance of the surroundings. Farming operations and improvements to the farm had also added considerably to the pleasing aspect of the countryside. Sheep and cattle were all | in good condition. Employees' Welfare. Active interest in the well-being of employees was maintained, it was regrettable that owing to diminished trade, a largo number of operatives had been dispensed with, but the provident fund, es- ' tablishcd some years ago, had proved of the greatest benefit to those who were unfortunate in losing their jobs; many were enabled to draw quite considerable sums on leaving. The employees who remained were not working full time, and their earnings were considerably reduced. In this connection the company was assisting in the matter of house rentals and had arranged a schedule granting reductions up to 50 per cent, according to the time worked and wages earned. The motion for the adoption of the report and balance-sheet was seconded by Mr. Charles Rhodes and carried. The retiring directors, Sir Geo. Elliot and Mr. Charles Rhodes, were re-elected.

Messrs. Morris, Duncan and Gyllies were re-appointed auditors.

On the motion of Mr. J. C. Colgrovc a vote of thanks to the directors and staff was carried.

Sir Geo. Elliot, on behalf of the directors, and Mr. Stan Jteid, for the 6taff, responded.