WANGANUI WOOLLEN LOSSES. AUSTRALIA AND CANADA DUTIES.

Evening Post, Volume CVI, Issue 54, 12 September 1928, Page 14

WANGANUI WOOLLEN LOSSES.

AUSTRALIA AND CANADA DUTIES.

Australian -importers of goods from the Eastern province of Canada, shipped from Vancouver, will have a bigger Cnstoms duty bill next year. Beginning of Ist January the dutiable value of such goods will include the total amount of freight to the seaboard. The value is at present estimated as including only tho freight payable for that part of the journey equivalent to the distance from the place of iorigin to the American border, assuming that the goods were being sent to New York for shipment. The Customs Act liai provided since Federation for the collection of. duty on tho proposed basis, tat the Department has not enforced its

Directors of Wangunui "VVoolli'ii IMills, Ltd., report for the year ended 30lh Juue a slack year "aggravated by the mildness of the present winter." Isut "the company's business has shown considerable expansion." A valuation of stock by Mr. 11. G. Marrincr, Christehureh, was in excess of values standing in the company's books. Buildings and plant have been well maintaiued, and generally the mills are reported as now iv excellent working order. Tho profit and loss account shows a gross profit of £15,780 8s Id, as compared with £3767' Is id for last year; and a net deficiency of £1584 3s Id, as against '£15,478 16s 7dlast year. Sales increased 3S per cent.' this year despite an unfavourable winter trade. Overhead charges have been considerably reduced, economies have been effected by installation of labour-saving machinery, making for economical production. The directors consider that "the time has arrived when the losses of the past should be dealt with. The heavy cost of initial establishment, flotation expenses, high cost of plant and machinery purchased during the ' boom period, and loss on working and trading accounts during the first'ycars, when the company was, as it were, finding its feet: those now amount to a huge total." The directors i therefore proposed to "cut the loss" and I advise that this be done by. reducing the value of the £1 shares to 10s, thus re- : ducirig the paid-up capital to £55,938. I The balance-sheet shows a paid-up capital of £178,064; forfeited shares reserve, £2110; sundry creditors, £1549; National Bank, £42,074. Assets include freehold land; £4440; buildings," £34,657; plant and machinery, £59,826; sundry debtors, £12,415; stocks and patterns, £49,905; establishment and preliminary . expenses, £18,735. Messrs. G. L. Marshall and E. Lilburn, retiring directors, offer themselves for re-election; Mr. W. J. Poison, chairman, having resigned, his place was filled by Mr. A. G. Bignell, appointed by the directors. Mr. R. Russell was appointed managing director. The special resolution to be submitted provides for reduction of the capital of 200,000 shares of £1 into 200,000 shares of 10s, cancelling paidup capital to the extent of 10s per share upon each of the 184,252 shares issued.