STRONGER POSITION. WELLINGTON WOOLLEN CO. THE SHAREHOLDERS' MEETING.

Evening Post, Volume LXXVIII, Issue 59, 7 September 1909, Page 7

STRONGER POSITION. WELLINGTON WOOLLEN CO. THE SHAREHOLDERS' MEETING.

The ordinary meeting of members of the Wellington Woollen Company was held at the Chamber of Commerce today. Mr. A. E. Exley, chairman of directors, presided. There was a good attendance oi! shareholders. THE CHAIRMAN'S REMARKS. The chairman, in moving the adoption of the report and balance-sheet (aiready published), referred to a few principal facts relating to the position of the company, and in explanation of the balance-sheet. The period under review, he said, had been one of severe financial depression and general contraction of business enterprise throughout the Dominion. It should, therefore, be satisfactory to shareholders to find that under such circumstances) the volume of then* business did not show a decline. The sales were slightly in excess of last year's, and would undoubtedly have been much greater under normal conditions. The orders in hand for delivery next season were also satisfactory, and [ indicated a larger turnover during tho coming year. Mr. Brice told him that a more cheerful tone was already apparent, and with the moving of excessive retail* stocks into consumption more confidence in the forward I outlook prevailed in the trade. There was also more inclination to lean on local supply and to indent less. Owing to a change ■ the company had made in | its system, by pricing the goods from mill to warehouse on cost of labour and material only, the result for ' the year appeared worse I relatively to last year than actually was Uhe case' by its effect in reducing stocktaking value ; also, part of the large ' balance carried forward from last year should, under the new system, rightly belong ,to this. The l directors were, however, able, and were taking the opportunity, with a surplus in hand, to revert to their policy in more prosperous times of building up a reserve in tho stock until a very liberal margin of security haa been reached. There was no doubt that % sound and substantial improvement had gradually been effected in the position of the company during the last three years, and there was at present every promise of its permanence and development. MARKET DISTURBANCES. 'Phe chairman went on to state that the industry had passed through five difficult years, due principally to market disturbances uncontrollable ; but not of a permanent nature. It was only reasonable to suppose this would not last much longer, and that a steadier and more normal condition in the woollen trad 6 should be approaching. The company was, in any case, decidedly stronger and better equipped to face tho future, and he ventured to tell them that he was personally hopeful of soon reaching a higher dividend paying level, with full safety reserve in the stock for bad times The stability of their financial positioii had been further improved during the year by the additional capital called up, £14,403, lees a reduction in the amount of calls on deposit, £1615, a difference of £12,788. Total liabilities had been reduced by £24,843, and stood at £42,515, with the assets at' £187,569. -The freehold land and valuable water righis in Petone, about eighteen acres, remained in the accounts at the original price (£2400), and with mill machinery, warehouse, etc., appeared at £71,555, after writings down at various times of £48,000 from the cost, more than £30,000 worth of which was still in good and thoroughly efficient working order, having been maintained so out of profit, and now costing the company nothing. The stock (£93,559), £15,C00 less than last year, was in first-class 'saleable condition and well provided for. The book debts (£22,000) were about equal to those of last year after ample provision for potential bad debts had been made. He felt that shareholders might rest assured 'that both directors and the staff would do their best to obtain a fuller measure of success, and a higher divi-dend-paying level for the company. Mr. Bxley then moved the adoption of the report and balance-sheet, carrying with it a dividend of 6 per cent, for the year on the ordinary shares, also a dividend at the rate of 6 per cent, per annum on the preferred shares, payable to-morrow. DISCUSSION. The adoption of the report and bal-ance-sheet was seconded by Mr. D. T. Stuart, who pointed out that the total liabilities of the company (exclusive of £7456, deposits against contingent calls) Avere £49,971, or just under £50,000. These liabilities were more than covered by uncalled capital, £55,516. The result was a most excellent one for the company, which was in an admirable position. Some shareholders might be disappointed in not having so much called upon the preferential shares as they would like. Die assets were £187,569, and were also most satisfactory. The liquid assets altogether equalled more than two and a quarter times tho liabilities. The stock was not, perhaps, entirely liquid, but a considerable part of it was wool. The chairman could say how much. The. chairman s Ten thousand pounds. Mr. A. Warburton drew attention to the value of the company's land and water rights which were worth much more than appeared standing in the balance-sheet. He estimated the land to bo worth at least £10,000 more than appeared in the balance-sheet. He also referred to the company's water rights in which they had been most fairly met by the Petone Borough Council. The water rights were worth at least £10,000. The company's position was fully £20,000 better than was shown in the balance-sheet. So long as no infringement took place in the agreement with the Borough Council the water rights were worth at least £10,000. The supply was one million gallons daily guaranteed, through a 12-inch pipe. The report and balance-sheet were adopted. A ballot was then begun for the election of directors in the place of Messrs. J. R. Blair and A. Warburton, who ofI f ered themselves for re-election ; also for the auditors, the candidates being Messrs. Kember and Son ; H. F. Allen and Son, E. W. Hunt (Barr, Leary and 1 Williams) ; A. S. Biss, and Rowley and ■ Gill. A vote of thanks to the directors and staff, moved by Mr. R. C. Kirk, was carried unanimously.

A vote of thanks to the directors and staff, moved by Mr. R. C. Kirk, was carried unanimously.