PAPUAN PRODUCTS CO., LTD

Press, Volume LIV, Issue 16214, 17 May 1918, Page 3

PAPUAN PRODUCTS CO., LTD

ANNUAL GENERA li .MEKITNG

The seventh annual general meeting of The Papuan Products Company, Ltd., was held yesterday afternoon. Mr Geo. T. Booth, chairman of directors, presiding.

The chairman apologised for the absence of two directors, Messrs J. Harrison Jones and A. M. "Wright.

Tho annuai report stated that in accordance with usual custom, the Plantation accounts "were made up to the 30th November, and tho Head Office books and accounts to the 31st December, 1917. It proceeded as follows: —

Itubber Tapping.—The year just- closed lias seen the initiation of rubber tapping. During September, 1917. 813-3 trees were tapped, a number in excess of anticipations. An' additional 1757 were operated on in October and November, thus bringing the Mimibj»r up to 983' J.

Average Yield. —Taking the averago of the three mrnths' tapping. Sr-ptinu-her-November, when (be trees were

"wintering," the production per tree should average slightly ovor oho jjoiiikl weight of rlrv rubber. This result has oeen obtained, it must be remembered, from what or? practically the throe worst months of the. year. On an actual 12 months' tapping, your manager is confident that these figures —good as they are.—will bo exceeded. Census of Kub'her Trees— No. of trees Age. (approximately) 4 years 8 months ... ->,000 4 years 0 months ... 2,848 4 years a months ••• 3 years 8 months ... 4,870 D Block. Various ages, 18 months to five years ... 4,201 19.4W As some of the original blocks were closely planted, to provide for possible gaps occurring, a number of trees will sooner or later have to be cut out, resulting in there remaining approximately the following • — No. of trees. In 1918 12.377 In 1919 ... 13,i'CO In 1920 .. ... ••• 13,961

In addition to the foregoing, thero wore in the nursery ut the end of Novomber last, liijSol seedling rubber trees eight months old, ready J'or transplanting in the now rubber area, of which about 12 acres were at that date comploteiy cleared and stumped in reac/iness for planting, and the balance of the area was to have been taken in hand early this year. . Estimated Rubber Output.—The estimated output of rubber for tho current year, ending November 30th, 1918, is about 1*2,00011). About 4001) pounds had been shipped to Sydney at date of latest advices.

Marketing the Rubber. —The reports received of tho first trial shipment show that it is of high grade. A couple of sheet- of prepared rubber were brought back by l)r. .Moorhouse on the occasion of ius last visit, and have been highly commended by all who have seen them. Rubber Tappers.— Your local director, in his last report, speaks very highly of tho natives' progress in rubber taoping. Mr Whitten writes: "Some 11,000 trees were being tapped during my visit, and T particularly looked for signs of bad or careless tapping,. but T found no indications whatever of bad or careless work. The boys in the factory and smoke-honk; Appear to take great interest in their work, and are raprtily becoming expert in the various operations connected with the preparation or the rubber for market." Additional Clearing and Planting ot Coconut,s.—During the year tinder review, eight blocks, aggregating JwO ,icros, htive been felled, of which -cO acres have been cleared, ana 173 acres planted in coconuts. It was anticipates! that the whole 370 acres would be plantod before this date. Tho total number of coconut trees was 31.-57.) at the end of November last, when 437 of theso were in bearing. In 1918 this number will probably be increased to 2183, in 1919 to 10,803, in 1920 to 19,341. In addition to the above there were oOQO germinated coconuts in the nursery. „ ; Interplantcd Coffee.—-Unavoidable difficulties in obtaining delivery of the necessary machinery for the preparation of the coffee hnvo delayed returns from this source. A portion of the necessary machinery has now been installed at the plantation, and a small trial consignment will shortly be made in the Australian market. Four thousand voijng plants are ready for transfer to* the new rubber clearing, but in tho meantime the rapid growtn of the rubber trees in the older areas will restrict the productiveness of the interplanted coffee. Experimental Plants.—A number or economic plants are being experimentally cultivated in an area set apart for this purpose. Native Labour. —The supply of native labour, both local and indentured, during the year has been on the whole ouite satisfactory. Evidence of the popularity of your plantation is pbown by the fact that 37 local boys have signed on for one, two, or three-year periods, showing how well the natives are eared for, and how highly esteemed your manager and his assistants are. The health ol' both natives and ' tnff has been on the whole satisfactory throughout the year. New Overseer.—A new overseer was recently sent from New Zealand, taking with him from Sydney hajf-a-dozo:i horses for uso on the plantation, these being urgently needed for various purposes. Visiting Director.—Dr. Moorhouse again visited the plantation in 1917. mainly at his own expense, and the services rendered by him both to ike staff on the plantation and to the shareholders generally, call for an expression of our warmest thanks. New Area.—An additional area of approximately 3000 acres. adjoining ,th« company's Manjai Plantation, has been applied for, and granted, subject to survey. The directors are non-: considering the best method of dealing j with the area, consistent with, tee < conservation of the interests of the shareholders of this company, and some ] suggestions in this direction will Le | placed before the meeting. _ j Retiring Directors.—Two directors retire by rotation this year, namely, Messrs George Thomas Booth and Dr. B, M. iloorhouse, both of whom, being eligible, pffer themselves for twn.

Auditors.—The retiring auditors are Messrs Newburgh, Bost and Co-. u ftjso offer themselves' for re-elsc^io l '* statement of accounts. fhe statement, of accounts submitted was as follows:— PL-AXTATIOX DEVELOPMENT ACCOUXT-

In aceordanco with the provisions of "Tho Companies Act, 1908," wo certify that wo have* examined tho account* and audited tho books of the Papuan Products Company, Limited, and huve found them correct, and that, in our opinion, the'foregoing Plantation Account and correctly drtiwil eo bs to exhibit a true view ol the Company's tiffairp, as shown by the book*. All oar requirements as auditors have been complied with. * 'l'h? Stock of Goods, Plar.t.and tools at Jhv X J ianUtiniv v.u ß taksn on November 301U, 1917, and w have r.cceptei name as correct. ' XEWBURGH, BEST .and CO., tf.P.A. (N.Z.), I'M.A. (X.Z-), Auditorn. Christchurch, April 17th, 1918.

CHAIRMAN'S ADDRESS. In moving the adoption of the report and statement of accounts, the chairm moving the adoption of tlie report at our lust annual meeting, remarked that the affairs of the company were then approaching an mterestfnc stage, and ventured a forecast that revenue from the sale pf produce might appear in this vepr's reports jpi the flrgt time. As it has .turned out this hope has not been realised, but, os J oU will see bv the report of directors, tappins lias actually commenced, and production of rubber up to a recent date bus readied a total of about 4000 pounds No returns, liowcmjf, lisiil been received at the date to which the annua! accounts now submitted weie made up. . . . "From tiie results obtained so tar, it is confidently anticipated that the .yield of dry rubber for the current year will reach a total of about 12,0001b. I "Through causes beyond our control 'the anticipated returns from coffee have not materialised, but there arc now over 1.3,000 coffee bushes iu bearing, and '1000 young plants ready for Hunting out. It would appear, liow- | f-ver. that tio considerable revenue can be expected from this crop iptei planted with rubber, as the rubber trees soon develop to such ail extent as to oveishadow the coffee, and so to prejudieiall.v affect the production of colfcebcans. . . . "The new rubber area is approaching the at which planting out will become possible. It is intended to thoroughly clean the whole ot this "round before planting out, anck,- tne planting will be pushed forward during I this vear as rapidly as possible.. . "It is interesting to note the ! i of well-informed authorities as to tn probable values of rubber during tn j next few years. The view appears to be commonly held that a shortage of rubber for industrial purposes is almost certain to develop. The demand tor motoj' tyreg in America alone is expected to bfl three times as large in JW-rU as in 1917, and the firm convictiop js exoressed that that year mil see something approaching a rubber , boom. At | the present time tips price is low. put , all the .indications point to better prwss Pfwailing very shortly. ■The expenditure during the year under review shows a considerate increase, which is due partly to the increased area of land under treatment, partly to the installation of the necessary rubber machinery, and the provision of -factory buildings and now dweil-ing-liouses. "In regard to coconuts, you will nolice that considerable areas ot new land are beinj; got ready for planting, and that the nujib?r coming into bearing bethe wid of this year is estimated at 2183. U must be remembered, however, that the crops off trees durjng their first two or three years of bearing are small, and relatively imperfect, consequently no considerable revenue can bo expected from this source immcdiajelj.

"We have previously estimated that revenue from copra should make its appearance in the annual figures for 1921. The indications are that this anticipation will be more than justified, to the extent that revenue should begin one, and possibly two years earlier than anticipated." . "The demand for vegetable oils js at present exceptionally heavy, largely through the comparative scarcity of animal fats, and the value of eoprabearing plantations is correspondingly increasing. There seems little'reason i to doubt "that' the demand tinue at least for a considerable time, and quite probably may show a definite development from year to year. Ib is reasonable, therefore, to anticipate that we may oxnect a handsome revenue | from this source beforo our plantations are many vears older. It has been found possifjla, too, to increase the yield of trees by proper methods of. cultivation, and to rear cattle and pigs on eocoanut plantations at considerable profit, the stock being fed to some extent upon pulp refuse, and, in turn, restoring fertility to the soil by natural fertilisation. In the early years of growth, profitable catch-crops aro also being grown, and this is a matter concerning which the plantation manager is making experiments. finances. 'The accounts disclogo a total expenditure on plantation account for the year of about £5000, in addition to 'which £'1500 af tho reserves account I has been invested in Now Zealand Goy- ! ornment War Loans, reducing our available cash resources by about £6600, and | leaving £8462 of uncalled capital with I £701 cash in band at data of balance. The uncalled capital has been further I reduced by two calls made during the current year, the amount remaining , available from that source being now | £4330 or thereabouts. | "Dr. Moorhouse "was good enough, to pay another visit to the plantation in 1917, and his report has already been 1 placed in shareholders' hands in Bulletin No. 8. It' is hoped that equally favourable arrangements jnay be mado for a director's visit during 1918. NEW AREA. "1 reported last year that both Dr. Moorhouse and tho plantation mant ager had strongly recommended the aci quisition of additional areas of adjoining land for the extensioji of tho Company's operations. This matter has beeu pursued during the year under review, and application made to ths Papuan authorities for a lease of approximately 3000 acres of land, subject to modification on the necessary survey ! being made. Your directors have had ! under consideration the best method of j dealing with this new area, and have | come to the opinion that, instead of ' burdening this Company with the coat of development of the new area, it would be better to float an entirely new company for that purpose, this company to retain in its own hands the management ot' the new plantation, and in consideration for services rendered, and to bo rendered, in this connexion, to seaure an interest in the new company. "Details of tho proposed arrangement have not yet bean finally settloJ, and it is quite possible that the entire project may have to be left over for the prc-sent, in consequence of the new regulations applying to the flotation of companies. "Shareholders will bo ;nioroit o d to know that one of the directors, Mr A. M. Wright, who offered himself for militarv service in the preceding year, is now engaged on important work in England, and has been promoted to the rank of lieutenant, a distinction which shareholders will doubtless regard as well merited.

"It gives me groat pleasure to say that the manager cf the plantation has carried out his duties to the entire satisfaction of the directors, and that he is as enthusiastic as ever in tho promotion of the Company's interests. I feel sure that he will value u vote of thanks from this meeting as indicating tho appreciation of the shareholders. "The local director, the Hon. U. F. AVhitten. has also rendered excellent service, and deserves similar recognition.'' Mr C. Boxshall seconded the adoption of the report ami balance-sheet.

In reply to a question, the chairman said the lease of the new area would be i'or a term of 99 years. The initial expense would be the survey, which would cost about JL'KfJ; the rent was a very loir one.

Dr. B. -M. Alnoriiou.se said the now land proposed to be taken up was largely a reservation. It comprised the face of a large block of countrv running towards the coast. It would be very disadvantageous to them to

have a strange company starting there and interfering with tlieir local labour supplies, using their roads, etc. and being otherwise a nuisance to them. Tho regulations provided _ for the cultivation of new land within two years, but in their case this land joined theirs, forming one continuous block, which for cultivation purposes would be counted as- one.* He was very keen on forming another company and developing this land. Ho considered that any company formed would be; a very inuch better financial • proposition than "tl&fr' owrrcbmjiany, "as it vPouW benefit by their' company's The new company, if formed, should be a inuch better proposition than their own. and he personally intended to take up a number of shares in the new company if formed. j In reply to a question lie said the country was magnificent; ho hud notseen better in the world.

Dr. Moorjious© alfio save details concerning the work on the company's property. In reply to a question the chairman said the immediate Advantage in securing tho proposed now area was to prevent competition. The majority of tho directors were of the opinion that it would bo to the advantage of tho present company for a new company to take over the additional area. If they took over the new area themselves it would mean probably having to secure further capital and allowing their dividends tp be swallowed up. It was not intended that tho new company should be divorced from or compete with the old eomnnny, but that they should work together to their mntunl advantage.

The motion for the adoption of tlio report and balance-sheet was carried. Dr. Moorhouso and Mr Booth were re-elected directors, Mr C. H. Gilby sec rotary, and Messrs Newburtrh, Best and Co., auditors. On tlio motion of Dr. Moorliouse, a hearty voto of thanks was passed to the manager and stair, and. the local director. - A special vote of thanks wa.s passed to Dr. Moorliouse for his services to the-company. A voto of thanks . was parsed to tho ehairmaii; ; •' ?"

DecemLcr 21st 1017. Dr. 1911. £ s. d. £ »■ d - Jar:, i. To balance lor-Tird Cj.GSS " u -oy. 80 »i Library Account, D c p rec i a tion, V*PV>* .. o IJ 0 Office Purciturc. Doproc ia Papua 6 c 3 Meteorological instruments, Depreciation, Papua .. 0 11 6 ~ J3 "

>, Stores [i'cod. etc.), Papua 751 12 5 •> Trade Good*. Papua .. .. ho 0 2 Medical Stores, Papua .. 22 4 9 Plant and Tools. Papua .. .. 46S IS S „ Liv© Stock, Depreciation, Papua 45 4 7 ., Wages and Kecruiting, Papua 16-:9 15 4 ' , , r„tS3 12 11 ,, Cash on iiacd, Papua .. 53U 7 tJ C u 11 i t a i i o n, Papua .. 731 2 4 Stationery and Telegram's, Papua 22 7 5 „ Exchangee, Papua .. .. 37 17 5 „ Freight and Sundries, Papua 213 0 6 ,, Miscella neous Kxpeusee, Pupr.a i i o Suiariw, Pai-uit Stti 2 1,142 9 1 Deo. 31 ,, Salaries. Head Office .. .. \ ,j o 0 ,, Office Furniture. D e p r e c i a tion. Head Office .. 0 10 0 ,. Printing, Stationcry, and Advoriisir.2. Head Office .52 7 ■! ,, i a c c 31 unoous F.xponse-3. Henri Office .. .. 23 M in .. Travelling ExII e a <1 '"Be* .. 20 11 6 Licens* Foe«. Linad (Jliice .,7 lrt 0 .. l-iKcto;s a n d Auditors, Head. Offioo .. % i) 0 ., J"isnips ar.d Tclo?isn:s, Unad Uflice .. .. 20 35 4 : 431 11 11 f , £ n 10 1917. •Nov. 20 1*7 < Buildin; and Construction Account, Papua •• 219 n n ., Harness and Vehicles, Papua .. 3ti 2 6 i.• M i a c e 11 aneous Stores (written oac!:); Papua .. 33 o ? ,, Furniture, Planintion . (written back}, Papua .. ?2 9 0 Dec. m . ? T5 1 J ° Snare Transfer and Herip F «ee .. 3 0 6 ,, Interest and Discount ,",7 16 6 .• V. ;d;<nce Forward SO,710 2 0 £31,1.IS 'J 10 BALANCE-SHEET As at Rig) December, 1917. CAPITAL AXD LIABILITIES, -lominal Capital— 7t>0,0C0 shares of !2s each 75,000 0 0 Les3 318,240 ahgree unallott- __ cd 34,821 0 0 401,700 . 40,176 0 0 750 forfeited shares 75 0 0 . <01.010 40 101 o 0 1.OS3 Uncalled— 3rd issue, 50,000 jit ■ l# •• 2,500 0 0 4th issue, 119,250 at Is .. 5,962 10 0 8,462 10 0 31,638 10 0 Less Calia in arrears ISO 6 6 31,508 4 6 Add Calls paid in advance 1G7 15 0 31,675 3 6 Sundry Creditors 1,591 0 5 Reserves Account 1,629 16 0 *01,898 15 11 ASSETS. Plantation Development Account lis per particulars herewith 30,719 2 0 ■Sundry Deb torn 15 0 5 Plantation tiurdvics— Piunt r.r-d Tools 477 13 7 Jletsorological Instruments 1 16 0 . Library . 12 13 0 Miscellaneous Stores' 464 6 4 Iiivo Slock ' 115 10 0 Harness ar.d Vehicles 109 11 4 Oiiice Furniture i8 16 f) Household Furniture <2 9 0 Caeh on bund 26 2 .4 1,339 4 7 Buildirga and Construction 610 0 0 Office Furniture, Read Ofnoa 114 2 X.Z. Government War Loan 1,500 0 0 Bank of Xeiv South Wales "01 19 0 £34,896 15 11