WOOLLEN COMPANY'S YEAR

Evening Post, Volume XCIV, Issue 38, 14 August 1917, Page 2

WOOLLEN COMPANY'S YEAR

BLESSINGS IN DISGUISE

Addressing shareholders of the Wellington Woollen Manufacturing Company at the annual meeting to-day, the Chairman (Mr. W. li. P. Barber), in moving the adoption of the report and balancesheet, congratulated his hearers on the position of the company, as shown by the figures submitted. The products of tha mills and factories have continued in firm demand ; in fact, so much so, as at present to cause regrets that the plant has not twice its producing capacity, so that customers throughout the Dominion might have had their orders fully and promptly delivered, which the directors regretted had not been possible. Although the company was, no doubt, benefiting to some extent by the restrictions on importing, and the lower prices o£ its manufactures against those ruling in Esigland, he believed that the present scarcity of supplies from abroad would have an enduring effect on the business of the company. The balance-sheet showed the company's indebtedness to be larger by £45,058, but against that on the assets side, stock, book-debts, and invested reserve, were £54,484 in excess. The reason for the increased amount owing was obviously the larger stock, which . was mainly in wool, and goods in process of manufacture; the latter due to pressure of orders, necessitating each manufacturing department' carrying more stock than usual. The enhanced cost of bought materials had risen largely during the year. Imported stock was also higher, a fact which under the existing importing conditions must be considered satisfactory. Full allowance had been made for contingent bad debts, and in comparison to turnover the amount of sundry debtors was well below the average. The stock had been taken with the customary care, and is all of recent manufacture.

EXTENSIONS. There was an urgent addition being made to the mill at Petone by the building of an up-to-date dye-house. This would not give much direct increase in output; but would vastly improve the working conditions for the men employed therein, and facilitate the eco'iomical handling of goods. /The impossibility of obtaining new plant prevented the ordinary development of the mill by introduction of more yarn-producing .machinery, but pre-war orders for that purpose would doubtlese come forward when the presenb restrictions were removed.

In the profit and loss account, on the debit side, the outstanding item was rates and taxes, £12,886 14s. . The woollen mill operatives' wages award expired ket April, and as the result of a conference between the employees and mill-owners, new conditions were agreed on, which apply to the whole Dominion. Material increases were granted to employees generally, both on and above the minimum rates.

It was just 21 years since a paragraph appeared in the then directors' report which read 1: "The manufacture of clothing as a branch of the company's business is now successfully established." The development on that side of the operations had been constant, and was only now limited temporarily by want of factory space. . The directors had been giving much thought to the best way of meeting the difficulty. ; WOOL REQUISITION. Amongst the many, departures from normal in the past year was the commandeering for the Imperial Government of the wool clip of the Dominion. It was carried out with ability, and those most directly affected—the grower* —had little, if any, cause for complaint. They may be congratulated on facilitating the difficult task of those entrusted with bo large and unusual a transaction. ' The woollen companies, on the other hand, a-s buyers, had reason to demur at .the vendors being relieved of' brokers' charges, the purchasers having to pay five-eighths of a penny per Ib, which sum, added to the cost of the wool, meant an extra £20,000 more than the mills would have paid under the ordinary conditions of sale. SCARCITY OF DYES, One of the many difficulties that loomed somewhat large in the industry at tho beginning of the war, was the scarcity of dyes. It was satisfying to feel that the British manufacturer was taking hold of the situation in a better way than was expected, and the shortage, whilst still acute, was not now so alarming. "There is a reasonable prospect that ive shall never again have to depend on outsiders for a commodity which unfortunately -was allowed to pass out of British control," M-r. Barber added; and on behalf of the board he thanked the staff and employees, generally for the loyal manner in which they had responded to heavier demands. Dr. Prendergast Knight seconded the adoption "of the report and balance-sheet, which was ■ agreed to. Mr. A. E. Yexley. and Dr. Knight were re-eleoted directors unopposed. Messrs. Kember and Hunt were reelected auditors of the company.,