COMPANY AFFAIRS.

Auckland Star, Volume LXIII, Issue 225, 22 September 1932, Page 4

COMPANY AFFAIRS.

RENOWN COLLIERIES. ANNUAL MEETING. NEW SELLING ARRANGEMENTS. There was a large attendance at the annual meeting of shareholders in Renown Collieries, Ltd., hold last evening. The chairman of directors, Mr. H. li. Mackenzie, in moving the adoption of the report and balance-sheet, which were summarised in the "Star" of September 9, expressed satisfaction with the results of the year's operations, despite reduced turnover. Mr. Mackenzie said it was regrettable that during the year a coal war had existed intermittently. Every endeavour had been made to ge:t the companies to agree to fix a selling price, which would give a reasonable return to the shareholders, but unfortunately agreements were broken, and the position plainly now became a question of the survival of the fittest. Having foreseen this the directors for some time had taken steps to make the cost of production as cheap as possible, and Ijeep expenses down to a minimum. Employees at the mine had been reduced by some 80 hands, thereby enabling the company to lower the cost of production by about 2/ a ton. The directors were also looking into the question of installing more machinery further to lessen the cost. Unfortunately, in July, the miners went on strike for five week 6, resulting in a loss to the company of at least £3000. During the strike thousands of tons of Newcastle coal were imported, and several shipments were still on. order. In regard to the selling arrangement entered into with Pukemiro Collieries, Ltd., Mr. Mackenzie said it was agreed to sell the whole of the outputs jointly on the provision that each company shared equally in all business and expenses on a fifty-fifty basis. The agreement provideu for the marketing of coal only. Waikato Carbonisation, Ltd., was now operating satisfactorily, and supplying the Railway Department with 400 tons of briquettes a week. Char and fuel oil produced were also giving satisfaction, and the marketing of other by-products was being investigated. During the year the Renown Company, in addition to the £15,000 in shares held in Waikato Carbonisation, Ltd., had paid £1905 toward payment of a further 10,000 shares it had agreed to take and pay for at the rate of 2/ a ton on slack produced. The report and balance-sheet were adopted. During the discussion on the report and balance-sheet reference wiis made by a shareholder to the amount riaid in royalties by the company. Inquiry was made whether any reduction had been made under recent legislation. - Mr. Mackenzie said the company had had legal opinion, and unfortunately the legislation governing the reduction of interest and rents did not .apply to royalties. The company was still paying on the same basis as formerly. Last year the average cost was about 1/4 a ton, owing to the reduction in output. A resolution was carried requesting the directors to endeavour to obtain a reduction of royalties. Cabled advice was received from a retiring director, Mr. H. M. Marler, who is absent in England, that he did not seek re-election. Mr. Mackenzie also retired by rotation, and again offered himself for election, together with Messrs. C. V. Maloney and L. Wilson. The ballot resulted in the return of Messrs. Mackenzie and Wilson. Messrs. Ernest Hunt, Turner and Hislop were reappointed auditors. BARTHOLOMEW TIMBER CO. . LOSS LAST YEAR. LOW PRICES AND FEWER SALES. A loss on the year's operations was made by the Bartholomew Land and Timber Company, Limited, according to the report to be submitted to the 27th annual meeting to* be held on October 6.

The directors state that the year's transactions, after writing off £1671 14/, the statutory allowance for depreciation, had resulted in a loss of £775 14/11. With tho debit balance of £453 4/1 brought forward from last year there remained at debit of profit and loss account £1228 19/. The report continued: "Although production costs were considerably reduced, the low average selling price and a further decrease in sales, were the direct causes of the loss on the year's operations. The loss, however, is after writing off £1671 14/9 by way of depreciation. Competition for orders still continues to be most keen, and in many instances timber is being sold at less than the cost of production. In spite of the fact that tho Eailway Department has made substantial reductions in its wages and other charges and has reduced freights on some commodities, no such relief has, so far, been accorded to the timber industry. Railage is a heavy burden to the consumer, and it is hoped that the Department will see its way to make some concession in this direction. "At the present time more inquiries are being received than has been the case for many months, and the directors hope that these inquiries indicate a general improvement in the industry. The company's plant, machinery and tramways have been well maintained throughout the year." RUATANGATA LIME CO. SMALL PROFIT SHOWN. (By Telegraph.—Own Correspondent.) WHANGAREI, this day. A favourable increase in sales is shown in the annual report of the Ruatangata Co-operativo Lime Co., Ltd., which will bo presented to shareholders on October 17. The report states that notwithstanding the low prices ruling for pastoral products, the sales of lime had shown a favourable increase over those for the previous year, and a small profit on the year's working is disclosed. Many of the shareholders had successfully replaced' basic slag top-dress-ing by taking advantage of the low ruling rates for superphosphates, and adopted a mixture of three of lime to two of superphosphate, which proved cheaper. Pastures had responded well. The share capital stood at £660, less uncalled £5 12/6. IMPERIAL CHEMICALS. INTERIM DIVIDEND INCREASED. On behalf of Imperial Chemical Industries of Australia and New Zealand, Limited, Sir Lennon Raws has advised that a cablegram has been received from Imperial Chemical Industries, Limited, London, stating that after reviewing the results of the company's, operations for ■the six months ending June 30 the directors had declared an interim dividend of 2% per cent on the ordinary shares, payable on December 1. The dividend for the corresponding period of 1931 was VA per cent and for 1930 3 per cent.