WELLINGTON WOOLLEN

Evening Post, Volume LXXII, Issue 65, 14 September 1906, Page 6

WELLINGTON WOOLLEN

ANNUAL MEETING. The annual meeting of tho Wellington Woollen Manufacturing Company was held in the Chamber of 1 Commerce this afternoon. Tho Hon. C. J. Johnston, chairman, of dircclois, presided. In moving the adoption of the report and balance-sheet, a precis of -which has already appeared fn our columns, he said that he had on previous occasions very fully ■explained those trade reasons which for tho past few years had lessened tho profits accruing; in the manufacturo . of ' wool, it was not neoessaiy that ho should in this respect now do more than state that the adverse conditions, rather accentuated in some ways,' notably by an award of the court which had increased our clothing factory wages by £15 per week, had continued thioughout the year, and that the imports of woollens and apparel, large as they "weie, had increased. In regard to the balance-sheet and profit and loss statement now under review, he desired to say a few words in explanation. On the debit side of profit and loss account, undsT tho first heading "interest, discount, etc.," the total outlay was much heavier than usual. This was mainly due to- an increase in the interest charge; consequent on the considerable accommodation required to provide .for the larger and mo,ro costly stock both^in raw material and manufactured goods, necessary to enable them to adequately cater for a growing and moro varied business. This matter was at present engaging £hn attention^ of the board. As another of those disadvantages they had to contend with in competition with English, and foreign manufacturers, Ihey had m tha colony to purchase their yearly requirements within a, very short time, whilst elsew^ier* almost all descriptions of wool were obtainable throughout tho twelve monthi. The difference in interest was • considerable, and tho convenience in only buying 1 tho exact kind of wool tho fashion oi the time required was very great. Other it-ems of expenditure, such as salaries, warehouse expenses, and general expenses wara in excess of former disbursements, for the reason ihat they wrre pursuing a more energetic policy in tho effort to capture a larger share of tho trade. That there was not a corresponding increase in the gross profit on credit side of the account was, in addition to reasons previously advanced, -duo in a lar(*o measure to the difficulty we experience- in getting, or in training, skilled labour. They could readily appreciate the resultant loss from an enforced uso of highly paid but inexpert workers. They were, to some extent getting ahead of this trouble, and the directors looked to the future to give that reward their greater activity and expenditure entitled them to expect. Tho sales were larger than last year, and consequently there should be an average increase in this item, but unfortunately a sharp loss had to be accepted in .connection with one of tho branch stores. They occupied an ' old building, and moth' and silver fish had so' infested the place that they had no option but to quickly dispose of tho stock, which was -much damaged. Such a check in profit^earning, should not havo occurred, and tho directors greatly regretted it. To one other item affecting this year's result he must allude. The provision for bad debts and discount -was £1795 16s 7d, this was a larger sum than was usually allocated, and he ,was very sanguine that by eome^ £300 at least the provision for bad debts was excessive; but there being a doubt the board deemed it wise to put the trouble behind them. The contribution to depreciation was less by at least £1000, as they had already written off from tho cost of machinery, actually in efficient working, no less a sum "than £28,673, and from buildings, . fittings, etc., £13,089, being a total of £41,762. Some might think that less even than £1000 would have been sufficient, but the board had strong views on this point, and whenever circumstances permitted, hoped to continue the past policy of aa rapidly as possible writing down the book valne of a plant which was liable to become less profitable by reason of now laboursaving inventions. , Shortly, he summarised the position thus : — Not having roceived tho full benefit of recent large expenditure in new machinery buildings and other improvements, tho charges against the manufacturing gross profits have told heavily against the year's nett result. Yet they were able to meet an unexpected- loss in branch stock, to set aside an amiMially lurgo sum for possible bad debts, to allocate £1000 for depreciation, to pay 5 per cent, per annum to shareholders, and to carry forward over £2000. Some six months ago they secured tho services of Mr. Brice, a gentleman well and favourably known in the clothing trade. As Mr. Brice came highly recommended for capacity and integrity, they would be pleased to hear that in a rc,port to tho board he said : " Prospects for the coming year are in a satisfactory condition with reference to our trade in general. There is every hope that each department will show a good result." Mr. Johnston then reforrod to the changes that had taken 1 place in tho board of directors during the year, and concluded by expressing appreciation of the services of tho company'a officers. Ho moved the adoption of report and balance-sheet. Mr. M. Chapman seconded the motion, and it was adopted unanimously Messrs. A. Warburton and J. R. Blair, the directors retiring by rotation J were re-elected, Messrs. Kember and, Son, and Mr. D. T. Stuart were re-appointed auditora at a salary of Aoventy-iiva guineas each. Thi» oonoliideii.the, bueujfißi.