A RECORD YEAR

Dominion, Volume 11, Issue 279, 14 August 1918, Page 7

A RECORD YEAR

FOR WELLINGTON WOOLLEN COMPANY ORDERS FROM ALL OVER THE WORLD The thirty-fifth annual mooting of tho Wellington Woollen Manufacturing Company was Jioltl in tho Chamber of Com- , merco at noon yesterday, the secretary, Mr. A. IS. Dunno, reading the minutes of tlio last aumml meeting. through tlie clangour of shrieking steamer whistles and bells, tho outward semblance of tho public's ]oy at tho notable advances that are being mi 0 Cities on tho Western front, llio annual report and balance-sheet (already published) wcro taken aa read. Tho chairman (Mr. W. 11. P. Barber), in moving the adoption of the report, said: -"The financial yoar of the company has been cne of arduous work and , extra attention, for, whilst tho difficulties duo to disturbed commercial conditions were constant, tho volume of output from our woollen mills and clothing factories, also tho total of sales, constitute records in tho company'n history.- 'Carrying-on' has bcon much hamperod by difficulty in obtaining essential stores and materials required in manufacturing. .However, whilst wo have been ablo to supply but a comparatively small portion of the orcVrs offering for civilian goods, duo to military work, wo liavo been ablo to by running overtime, and by sonio lessening of stock, together with our importations, to turn over a larger amount than ever beforo. In the faco of many drawbacks, w« are pleased to bo ablo to make similar allocations as in tho previous year. .In connection with our sales, I mention, in passing, that wo havo .received pressing requests to supply our products to America, Afrioa, Australia-, China, Canada, and India, but our military contracts and Dominion oi'dcrs havo taxed our manufacturing capacity to its utmost, and such must, of course, tako precedence over export orders. The large business offering from overseas indicates the universal shortage of woollen gefods, <uid may be accepted as evidence that there being depleted warehouses everywhere, an enormous demand will bo set up when the end of the war is reached. I pointed out to you last yeajr that cortain developments of tho manufacturing were intended, and wo should liave lflied to push them rapidly, but they have -been restricted by war conditions ■in England, tho makei'B not being in a position to suinply machinery, To be prepared for ever-increasing trade is, of course, a proper policy, and with that definite object always beforo us, together with immediate need for moro clothing factory accommodation, the necessity for which has been pressing for srmo time, your directors had no hesitation, when the opportunity oiTered, in securing tho large warehouso adjoining tho company's city premises, on tho Willeston Street side, Tho Ohristchurch branch warehouso and clothing factory occupied by us for tho past ten years under leaso does not allow of extension, and we aro even now oramped in our operations there. As the report stateß, an excellent sit® has - been purchased in tlio centre of tho wholesale locality (Liohficld Street), and wo aro now considering designs for a suitablo building. _ At Potone tho additions to the mill, previously announced, are almost ■ completed, and will provide us with very up-to-dalo wool-scouring and dyeing departments. The new scouring plant in ado in New Zealand is now being installed. "The-securing by tho Imperial Government of tho wool clip of the Dominion for the duration of, and ono year after, the war, appears to us to be . a wiso ptecaution. There Is objection made to it by a small minority of wool producers, and odium lias been levelled at woollen manufacturers by them. In so far as wo are concerned, it would bo quito satisfactory to lis if for our produots we could havo obtained, without extra expenditure of money or energy, 55 per cent, net increase on 1914 iprices, as did the wool-growers of tho Dominion.

'There is sufficient cause, I think, to justify a prophecy that there will bo a strong doinand l'or raw material on pcaco being declared, and although within tho last throe yearß necessity has pioduced many substitute?, it is unlikely that wool consumption will bo thoreby noticeably affected.' The Allied Governments—in justico to their peoples—should securo for some timo to como wool for allocation, if but «s a set-off to the calculated destruction of the many woollen mills of Belgium and France in, and adjacent to, tho war zone. Where mills in that territory havo not been destroyed, tho .belts, straps, copper rollors, card-clothing:, and all removable parts, have been filched systematically by the Germans wherover tlioy fell into their hands. B<f that act they lawlessly prevent resumption of work, and impede the industry just as effectively as if tho machinery was broken to pieces. A French manufacturer owning a laree ici'l near tlio frontier, est.im.atcs-it will ta);o at loast nine monfßS to put his piace into working shape. Would it lo jiet to our Belgian and French friends to allow Erit-ish-grown wool to reach alien hands before the damaged mills aro restored and supplied?

"Turning to tho figures of tho balancesheet, the two changes that, stand out on tho assets sicto are the additions to property, £22,185, and tho £35,000 invested in Government 4* inscribed stock,' of which £5000 appeared in last yeaVs balanceshcet. Tho later investment will, the directors feel certain, commcnd I'sclf to tho shareholders. Tho inorease in tho property amount I havo already mentioned. Taking tho plant and buildings at the sum shown, but omitting tlio land and this year's additions, t.lie book value ib £69.917. From the original cost thereof there has been deducted, by way of depreciation, since tho inception of the company, a total of £88,384, equal to 55.8 per cent. Durins tho last' four years Bome of tho machines havo been subjected to severer strain on heavy Afliiy cloths than in normal tin.es, so that what has been written off in that poriod cannot be said to bo excessive. In tho -profit and loss statement, there is a substantial increase under tho head of interest, i discount, otc. That increase is in largo'measure due to the nsual cash discounts on tho extra business done, together with interest for larger accommodation. It- is obvious that anaTt from our capital expenditure, tho highor cost of all commodities used-by us in manufacturing requires moro money at certain periods of tho year, hence the added charge for interest.

"I am Bure that shareholders -will, equally •with mo and my colleagues on tho company's board, deploro tho death of tho late Mr. lixley. whoso conncctlon with the company, a3 shareholder and director, lias been of snch long standing. Tho directors dosire to place on record, at this meeting, their ■warm appreciation of his sorTiees. which were especially valuable and ungrudgingly accorded. In consequence of hia decease, a, vacancy on tho dlree'orato exists, which, under the articles of association, could have been filled bv the board, but with so short an interval hi! l ,ween Jlr. Exley's death and the annual meetin',', tiio fillim,' of the vacancy was u-it proceeded with. In order to ensure tho smooth, and I may say 'successful,' conduct of the oompany's business, the hoard would wish, and. in fa/jt, =u(?!?e«n, that tho matter bo left to tho directors.

"In conclusion. I wish ro espresa the thanks of tho directors to the staff esd the employees generally for their attention to the company's business under strenuous conditions. are grateful to all hands for pushing the work thuugh, and for successfully meeting at all times the overtime calls on them."

In seconding tho motion, Mr. F. Dyer congratulated tlio directors and all con corned on the Tory excellent report whieh had been put before them. Jie was glad to am that, though military orders wero heing received, tho domestic trade was not being altogether neglected. He related an incident which had occurred to himself quite recently in a tailor's shop in Wellington. He was looking over some tweeds and waß Bhown what he thought' was a very fino niece of cloth. Tho tailor informed liim that it was manufactured in this country, not unfortunately, by tho Wellington Woollen Company. Tho tailor said that bofore tho war tlie West of England tweeds were better than thoao manufactured in New Zealand, hit Bir.co the war the quality of the ilome article had gono down steadily, whilst tile New Kttiland, quality had steadily gone up. He was now compelled to stock Sew Zealand tweods, because they were lifing asked for. This stato of things ho Ihojght was highly satisfaotofy, aud went to prove that it was wieo to foster tho domestic trade as much as prisbiblc, he-, after tho war, there would bo a great influt of trade. Mr. Dyer introi!u<«i tlio subject of tho saving of lanolino at the works. He had bccu shown a Rtwl Bamtplo of lanoline which had boon saved experimentally, and had made 'nnuirv to find out whether thero was anything in it. ITo found that it was \vorth Is per lb. A very largo quantity of it- went down the drains every year, aud he thought that, after tho war, a small plant might bo sccurcd to save that by,product. The chairman said they had not been unmindful of tho suggestions received about tlio saving of lanoline, and had experimented in that connection vitli a view to its utilisation or ealo. Tho directors wero alive to the importance of what could bo mado by tho saving of tho byproducts of tho works, The report and balanco-sheet were adopted. On the motion of Mr. It. Tail, sen., Mossrfl. It. 0. Kirk and D. T. fituart wero re-elected directors, and 011 the motion of Mr. F. Dyer Messrs. 11. Kember aud Son and. Mr. E. W. Hunt wero re-elected auditors. Mr. Dyor also moved a vote of thanks to the start, and especially to ihoir very hard-working and painstaking secretary (Mr. A. E. Donno), to whose efforts were 'largely duo the excellent results of tho last twelve months. TIIO motion was carried.