TAUPIRI MINES.

Auckland Star, Volume LXIV, Issue 114, 17 May 1933, Page 4

TAUPIRI MINES.

SUCCESSFUL YEAR. REVIEW BY CHAIRMAN. "WASTEFUL TRADE COMPETITION." The animal meeting of Taupiri Coal Mines, Ltd., was held this afternoon. In moving the Adoption of the annual report the chairman of directors (Hon. E. W. Alison) said: — '"When the present economic conditions I are considered, and the fact that there are five mines in the Waikato district producing coal, the whole of which could easily be obtained from two of the leading mines, and the extreme competition that has had to be contended with, I think the shareholders are to be congratulated on the balance-sheet now before you. The profit and loss account shows a net profit for the year, after providing for depreciation, of £0343 0/2. To this must be added the sum of £4541 1/10 carried forward from last year, making .. total of £10,834 2/. "The interest on preference shares has been reduced fty 20 per cent in accordance with the provisions of the National Expenditure Act and the amount paid ■was I £1280, as against £1000 the previous year, leaving a balance to be dealt with of £9001. Xo interim dividend on the company's ordinary shares was paid, and the directors now recommend payment ot a dividend for the year of 1/ rer share 1 , which represents 5 per cent and absorbs £0500, leaving a balance of £3104 to be carried forward to next year. "Two main factors have contributed to the satisfactory nature of the balancesheet and enabled the directors to recommend this dividend. The first is increase in the gross profit on coal which shows an advance ovev the last year of £1158 and the second comprises substantia! reductions in the overhead expenses of the company. The position, satisfactory as under existing conditions it may be deemed, would have been still better had it not been for the senseless and wasteful competition on the part of some Waikato companies, which has been carried on for about two years and still continues. In any case, shareholders can hardly expect the same large profit as in previous years. The position of the coal industry is well expressed in the following quotation from the Stock Exchange "Gazette"' of January, 1!)33, commenting on coal companies results: — " 'Strikes, price-cutting, the reduced demand for household and steam coal, the increased use of internal combustion engines and the competition from electric power, have all combined to reduce the earnings." "The first item mentioned in this list is strikes, and I should remind you that during the year there was a strike of the miners at all the coal mines in the Waikato except one, lasting for some five weeks and resulting in very considerable loss to both the companies and the miners, as well as to the Government Railway Department. The mines have also been idle on many days on account of stop-work meetings of the men. Satisfactory Development. "Of eight coal companies operating in the North Island three only have made a distribution to shareholders during the last few years and several have not paid any dividend at all since their operations wore begun," said Mr. Alison. "In a report the superintendent says: "The underground workings are in a very satisfactory condition and development is progressing most satisfactorily. The machinery and plant both underground and on the surface is in first-class condition." I can also assure shareholders that the first class quality of the coal from the company's mines is being fully maintained and the company is still in the proud position of producing the best coal in the Waikato district. The company's up-to-date mining plant is working most successfully and economically and has resulted in considerable reduction in mining costs. * "The Waikato Carbonisation Company has been operating continuously during the past year, the regular orders of supplies to the railways enabling the company to carry on. Whilst the carbonettes proved to be an excellent fuel, experiments have been made during the year to produce an ideal briquette for use by the railways. The experiments have finally proved most satisfactory. The success of the experiments made ia of great importance, as the company depends upon the railway orders for its continuance. The good results which have lieen attained have been brought about by the co-operation and constructive helpfulness of the officials of the Railway Department, in conjunction with the company's representatives.

Disposal of Slack. "The by-products are being marketed to the best advantage," continued Mr. Alison. "The carbonising plant is working satisfactorily and with improvements which have been recently completed is now •capable of producing a largely increased output. The management of the undertaking has been most successful, and by its output the large quantities of slack produced from the several interested mines have been utilised to the advantage of the coal companies and of the users of the carbonettes. "The company is fortunate in having the services of a highly-qualified and experienced manager and also in having a staff which, taken individually, carry out their respective duties capably, energetically and unitedly, and exercise their utmost endeavours to further the best interests of the company. "The directors are glad to report that the work of the company's staff, both at the head office and the mine, continues to earn their appreciation. The business of the company at both ends is competently and economically managed, but however, capably and economically the company's business and affairs may be managed, your directors are confronted with the existing wasteful and foolish trade competition, and ajso with the adverse world conditions which are exercising so baneful an influence upon our own and every country. "Under such conditions I hesitate to forecast the probable results of the company's operations for the year 1933-34. The present economic condition of affairs is occupying the best minds in every country in the world. The problems to be solved are extraordinarily complex and difficult." The chairman referred to the resignation through ill health of the company's auditor, Mr. R. E. Isaacs, who had been auditor Tor the company since its inception. He moved that a vote of sympathy with Mr. Isaacs should be recorded.