WAIKATO COAL.

Auckland Star, Volume LXIV, Issue 257, 31 October 1933, Page 9

WAIKATO COAL.

RENOWN COLLIERIES. PURCHASE OFFER DISCLOSED. COMPANY TO «FIGHT ON." Some free discussion took place at the annual meeting of shareholders in Renown Collieries yesterday afternoon. After the statement of the chairman, Mr. Brooke Taylor (already published) had been given, Mr. A. T. Kendall asked why,, if with present prices the company had shown a loss of over £3000, it had not recorded a "profit of £15,000 in 1931, when prices were higher. The chairman eaid he could not answer that, but there was the fact that no nllowance had been made for depreciation this year. Mr. Kendall also referred to the overhead expenses of the company, and moved that the directors should reduce expenses. The chairman said that since he had taken over expenses had been reduced to the minimum. The motion was carried. Mr. G. G. Marryatt asked whether the directors could give the ehareholders any information ae to the prospecte of putting the company on a sound footing by approaching the Government to bring about an amalgamation, with the idea of mining coal at a profit, or by some other means that would put an end to, the present condition of selling at a loss. Unless there wae something to hope for in that respect they might as well liquidate. Offer of £45,000. The chairman said the directors would not waste their time on the business if they had no reason to hope for an improvement. He and his colleagues were not prepared to give up the light. The Renown property was too good to be disposed of hastily. There wa6 an arrangement with the royalty owners, under which the accrued royalties would Ibe reduced by 50 per cent, and the minimum output for the future upon which royalty must be paid had been reduced from 80,000 to 60,000 tone a year. They had been offered £45,000 for the assets, which was a preposterous offer. If Renown went out of business, the shares of the older companies would quickly appreciate, and in a short while the purchase prKe mentioned would be more than accounted for. A motion that the directors be asked to accept a reduction of 50 per cent in their fees was heavily defeated, several members stating the directors had the ■confidence of the majority cf the shareholders. It was stated the chairman wae giving practically the whole of his time to the business, and he was being ably supported by the other directors. One director said the other companies were losing money, and could no more afford to lose than Eenown, except that they were wasting the assets built up in better times. Renown was mining coal at a cheaper rate, than others, and where they could make a profit Renown could do so comfortably. A vote of thanks to the chairman and directors was moved by Mr. F. J. O'Meara, who said the directors were making a good fight in the interests of the ehareholders, and had shown that they were willing to see it through. This was carried unanimously. The retiring, directors, Messrs. W. P. Endean, M.P., and W. J. P. Hodgkins, were re-elected.