THE WELLINGTON WOOLLEN COMPANY.

Evening Post, Volume LXVIII, Issue 61, 9 September 1904, Page 6

THE WELLINGTON WOOLLEN COMPANY.

ITS ANNUAL MEETING. Tho twenty-first annual general meeting of shareholders of thn Wellington Woollen Manufacturing Comp«ny, Ltd., was hold in the Chamber of Commerce this afternoon. In moving the adoption of the report and batonca-shoet, particulars of which hnTe alrrady been published, tho Chnirmmi of Directors (Hon. C. J. Johnston, M \) said— Tho year's opera tions having, .. iih n notable exception, been quite normal, thore is only tho one point that 1 nro constrained to draw your special attention to, aud that is tho lessened gross profit which the ba,l»nctS-sheet now i before us exhibits. Somo of you may ask what is Che matter, seeing that an 8 per cent, dividend is now recommendod ! But you shonid notico that this yf«r we havo not ndded to our general resorve, and have only written of! £1000 for depreciation. That wo hare not been ablo to add to our general reserve is not of the first importimce ; bnt inasmuch as in these d»yR so rem.irka.ble for constant and successive improvements in labour-saving Machinery it is essential that nny enterprise using costly plant should "make a gross profit so large, thnt it can afford to very quickly wipe out the cost of any inachino, nnd stand ready to substitute for it the latest and most approved. Ft follows that any lessening of tho power to do tins cannot be lightly regarded. It is umnistakeaWo that wo have lost some of this power, and although it is quite true — aud I am glnd to bo ahlo to say it— that our post wrfting dowji enables us this year to do with a much less provision than formerly, and yet remain ■well armed for all eventualities, 1 the vital fact remains. Now, ns to this lessened profit. In the report the directors say : "The lessened profit is dne to the fact th<vt, in faeo of the keenest trade competition, it has not been possible to mo .altror selling prices an to gain a fnir cqni Vftlent for the greatly increased cost of manufacture, duo in the main to th& sharp rise in the valuo of all classes of wool." Aftor a reference to shoddy im porta-tions, and the mansor in which they affected the company's profits— which obserrotions will be found in another column in an article on " Shoddy Clothing" — the Chairman poncluded : — "Do not be alarmed by wbnt I and my colleagues deem it right to sny. We rook for no greater thing happening than a possible fall in Iho Very "satisfactory dividends " bftaerto paid, find - remember thnt wo are chrrymg a goodly sum forwnrd, whilo wo hold in reserve tho premium £1412 19s 8d received on the sale of 2354 of our shares. You will note the absence of the General Manager (Mr. Hceles). This gentleman is; nt prest-nt in England enjoying, I trust, a well-earned holiday after many years of unbroken service. To him, to Mr. Donne, Mr. Ramsden (the mill manager), nnd tho several heads of duparrmentfi, I have once again to express the Board's thanks for their efforts during the year. Tho motion was seconded, by Mr. J. R., Blair, who considered that under tho farciHrmUncos tho report was a vory satisfactory ono. He belioved that the company wns on such a sound basis that it w«n»fl not be found necessary to lower tho dividend. ' ' Tho motion was agreed to. - On tho motion ol Mr. R. Tak, seconded by Dr. Knight, tho retiring directors — the Hon. C. J. Johnston and Mr. W. H. P. Barber — wcro ro-clcctcd without opposition. Messrs. H.- Koinber and D. T. Stuart wero'-re-elecTed auditors, on tho motion of Mr. L. P. Blnndell, seconded by Dr. Knight. Tho remuneration of the auditors was fixed at 50 guineas each. Tho Chairman and Mr. Barbor returned thank 3 for tlieir re-election. Tho former snid tho directors would do their best to meet any trouble likoly to bring about a reduced dividend. Mr. Barber said ho thought tho installation of tho worsted plant to a grcnt extent would make up for tho loss of profits in other bTanchoSi This was all Iho business.