KAIAPOI WOOLLEN COMPANY

Press, Volume LXXVIII, Issue 23747, 19 September 1942, Page 6

KAIAPOI WOOLLEN COMPANY

ANNUAL MEETING OF SHAREHOLDERS CHAIRMAN’S REVIEW OF OPERATIONS thp sixtv-fourth annual meeting of «hS&old*w of to Kaiapol Woollen Manufacturing was held at the registered offices, Manchester street, yesterday. Mr J. H. Rhodes (acting-chair-man) presided. Chairman’s Review The chairman reviewed the operations of the year. Before proceeding with the details he referred to the serious loss the company has sustained by the death of Mr T. W. Lewis, who was director of the company since 1927, and held the office of chairman since Mr McKellar’s death in 1939. When Mr Lewis joined the board in 1927 It looked doubt., ful if the company would be able to carry on. and he, his co-directors, and management had many anxious and arduous years, but in spite of the depression in the early thirties, to fortunes of the company, by sound Judgment and enterprise, were gradually retrieved and Mr Lewis lived to see the bank account in credit, liabillites reduced to a negligible amount, the output of the mill and factory increased many fold, arid the shares of the company selling at their original nominal value. This was, the chairman knew, a matter of great satisfaction to him, and an achievement he and his codirectors and management were justified in feeling proud of. On the motion of the chairman the meeting recorded with sincere regret the loss to the company sustained by the death of Mr Lewis, and extended deep sympathy to Mr Lewis's family. Production

"As stated in the director’s report," continued the chairman, "throughout the year the company’s two mill plants and most o£ the factory have been working at high pressure, meeting the ever-ln-creasing demand of the Armed Forces, the only limit being the labour available and the machine capacity. The intensification required to meet the further demands for supplies to the war services has presented not a few difficulties, and, unfortunately, has meant further curtailment of civil supplies for the domestic markets of the Dominion. While we are unaware of what effort is expected of us for the coming year for the fighting services, we are unable to plan our production as we would wish. The volume of output again constitutes a record, although many of the items manufactured were not particularly well adapted to our plant: however, in such times of emergency, when the best possible effort is required, such matters must be regarded as of secondary consideration, and I am sure;you will be - pleased" to hear that the requirements-of the Armed Forces allotted to the company have been carried out in full. To meet the more recent demands made upon the company it would be a distinct advantage if more female labour were available, particularly at the Kaiapol mills. Finance “We again are able to place before you accounts which disclose a satisfactory surplus, but the amount that it has been found necessary to reserve for taxation is enormous. Whilst admitting the necessity for heavy taxation in war time, as stated last year, we foresee difficulties and embarrassment in the continuance of such a steep rate if applied for any length of time. Gross profit has increased by £3000; the company’s cash position is not as fluid as it was last year, but when it is noted that taxation paid was £62,940 and stocks at July 19, 1942, were £45,453 higher, this is not surprising. On the question of stocks, the total figure involved under this heading is £240,686. against £195,233 the previous year. As stated in the directors’ report, the greater proportion of the stock is represented in raw materials and not manufactured items, manufactured stocks not comprising much more than 25 per cent, of the total. These stocks are well bought and should serve the company in good stead in the near future, and will be required whether the war continues or not. Buildings and Plant

“Further additions, amounting to £15,527, have been made during the year. A considerable portion is on account of machinery, including replacements. Just before stocktaking a further large boiler was purchased and it is proposed to again increase the company’s generating plant. It is expected that during the present year the whole mill will be converted to operate on electricity. Steam propulsion, however, will be retained for stand-by purposes. Without this development it would have been quite impossible to handle the increased throughput at Kalapoi now required. Depreciation "An amount of £18,135 has been provided in this year’s accounts. There is also an unapplied balance of £7700 available and it is anticipated that the total sum of £25,835 will be allowed by way of deduction by the Income Tax Department this year, "In spite of the heavy strain made on portions of our works during the year, the condition of the plant, generally speaking, is satisfactory. At the present time some building extensions are in progress at Kaiapoi to house a new wool scourer and drier. Wool storage accommodation is also being Increased. Some additional storage space is also being provided at Radley. This has been very badly needed for some years. "Last year in his address the chairman made detailed reference to the quantities of supplies required by the fighting services from the woollen mills of the Dominion. Although details cannot be given I think shareholders should be informed that the quantities have been considerably greater this year. Over 150 members of the company’s staff are serving with the Armed Forces. Staff Work "Before closing I am sure my colleagues would desire me to make reference to work performed by the officers of the company in whatever capacity they may be serving. In abnormal times such as these both operatives and officers of the Company are called upon for additional effort. For some it ; has meant longer hours—for others harder work, and for the executive staff considerably added responsibility. To all we express thanks and take pride in the performance. We believe In our cause—lt must prevail—and I hope that by the time we gather in general- meeting to consider the ac-

counts of the sixty-fifth year the struggle the United Nations are now making "will have been brought to a successful concluSi "Our general manager has again filled the position of president of the Woollen Mill Owners’ Association, which keeps him in close touch with the many activities of the association’s rseponsibilities. both as to war and civil irequlrcments. His work and efforts have been, I know, very fully appreciated by the association, and also by the Minister of Supply and the various sections . his control. When Mr Lewis tendered his resignation shortly before his death your directors offered Mr Carey a seat on the board to fill the vacancy, and I fed sure you were all pleased to hear he had accepted same. To my colleagues on the board I extend my personal thanks for their full cooperation and assistance.” Adoption of Report The chairman moved the adoption of the report and balance-sheet, and subject to the approval of the meeting, that the balance be dealt with in the following manner:— „ , £ s. d. By payment of a dividend on preference shares at 5 p.c. and bonus of 1 p.c. .. 3,911 811 By payment of a dividend on ordinary shares at 5 p.c. and a bonus of 1 p.c. .. 14,038 11 1 Balance to be carried forward 7,845 16 2 £26,295 16 2 Mr W. H. Clark seconded the motion. Mr Denys Hoare also spoke to the. mo-, tion, referring especially to the increased taxation, which had grown in three years from £B4OO to £62,000, during which period £38,000 had also been written off for depreciation. Mr Hoare also referred to the large proportion of net profit absorbed by income tax and social and national security charges, and stated that it was gratifying for the directors In these circumstances to be able to recommend a dividend of 5 per cent, and a bonus of 1 per cent, on both classes of shares. He drew attention to the very large increase in the demands from the Services, resulting in the company having increased its war effort in all branches very considerably. As long as this continued and as long as it was found necessary to increase war taxation the amount left for distribution to shareholders might have to be limited. In the meantime the figures themselves disclosed a very satisfactory position. The motion for adoption was carried. General Mr Falck spoke with reference to the number of employees who had left the company to go overseas, and said that 150 was a large number, even for a company the size of the Kaiapoi Wollen Manufacturing Company.

Election of Directors The directors retiring by.rotatloh were: Messrs W.. H. Clark and W. R. Carey, There being no other nomination they were duly declared re-elected. Appointment of Auditors Mr A. D. Hamilton proposed that Messrs W. S. Newburgh and be reappointed as auditors for the ensuing year at the same remuneration.—Carried. Mr Hamilton moved a vote of thanks to the directors and staff, and stated that the amount of work that had been done during the last year was enormous. Mr E. R, Webb, who seconded this motion, said he had been present at the first meeting of the company held 64 years ago at Kaiapoi. The chairman, on behalf of the directors. thanked the speakers very much for their kind remarks, and the general manager, on behalf of the staff, also thanked the meeting for the sentiments expressed. [Extended Report Published by Arrangement.]

GRAIN AND PRODUCE CHRISTCHURCH MARKETS The only development of note in the local grain and produce trade is that a few more potatoes are making their appearance. The rigid curtailment for public use and the reduction of the military ration apparently caused more stocks to gather than expected. These were heid for the monthly Increments, and the substantial September rates have apparently released -most- of them.* There is still a final increment for October, and potatoes are being held to some extent for this increment. The Army ration has been increased by another 3pz a man as . a result of the improved supplies now in sight. Wheat sowing has been heavy. It was interrupted only to a small extent- by the weather break of last week, but the general belief is that not much will be sown from now on. Garton oats have also been sown heavily. All classes of small seeds arc completely neglected, there being no inquiry except in small retail lots. The following quotations are on trucks unless -otherwise stated:— Wheat (final payment September)— Tuscan, 6s 2d; Hunters, 6s 4d; Pearl, 6s 6d; Marquis, 6s 8d (all f.0.b.). Oats.—A Cartons, 3s 6d, B’s 3s 3d; Algerians, 2s 6d to 2s 9d; Duns, 3s to 3s 6d a bushel.

Italian Ryegrass.—4s 9d to 5s a bushel: perennial, 4s to 4s 6d, Whitt- Clover.—To 2s 9d per lb for fanners’ dressed.

Cocksfoot.—lOd to Is Id per lb for good lines. Cowgrass.—Up to Is Id. Chaff.—£4 to £4 5s according to station, a ton. Peas.—6s 3d to 6s 6d a bushel. Potatoes (September).—Buttons and King Edwards, £lO 15s a ton; whites and Dakotas, £lO 5s f.0.b., sacks in. COMPANY NEWS Beath and Company.—The directors of Death and Company, Ltd., recommend a final dividend of 3 per cent, on ordinary shares, making 6 per cent, for the year ended August 19. Preference dividend for the year is 5 per cent. MINING Placer. Development,. Ltd.—For three months to August 1, 1942, Pato Consolidated Gold Dredging, Ltd., dredged 4,353,000 cubic yards for a recovery of 16,119 ounces of fine gold, and recovered with its hydraulic units 4527 ounces fine gold, the value of the ■ total production being 722,610 dollars. During the same period Asnazu Gold Dredging, Ltd., handled 1,280,400 cubic yards for a recovery of 6537 ounces fine gold equivalent to 228,795 dollars. Alexander Mines.—The sixteenth ordinary annual general meeting of shareholders was held on September 14. Mr D. A. McVicar, chairman of directors, presided. The directors’ report, balancesheet, and statements of accounts for the year ended May 31, 1942, were received and adopted. The retiring directors, Messrs James Haisty and George Lambert. were re-elected unopposed. Mr M. J’. Fogarty was re-elected auditor. Argo Company.—The adjourned extraordinary general meeting of shareholders, which was originally convened for July 17, was held at the company’s registered office, Reefton, this week. Sixty shareholders holding 135,884 shares, were represented personally and by proxy. Mr D. A. McVicar, chairman of directors, presided. The resolution authorising the voluntary winding-up of the company was carried. Mr T. H. Lee, jun., was appointed liquidator and the remuneration was determined. An advisory committee of two of the directors, Messrs D. A. McVicar and J. B. Discaciati, was appointed to assist the liquidator in the liquidation. The sale of the whole of the plant, machinery and equipment of the dredge, to the Maori Gold, Ltd., was confirmed. It was decided that the remaining assets of the company be sold and such realisations together with the cash assets of the company, be applied In payment of the liabilities and the expenses of liquidation, the balance to be distributed among the shareholder*.