HOWARD SMITH, LTD

Evening Post, Volume CXIX, Issue 98, 27 April 1935, Page 12

HOWARD SMITH, LTD

CONTINUED IMPROVEMENT

"Conditions during the past few years have been extr.en.iciy difficult," said Mr. Austin Howard-Smith, when presiding, at the recent annual meeting of Howard Smith, Ltd., "but i think the worst is now over. . ••Profits in the last two years have shown improvement, and 1 hope when we meet again next year uuder our own roof,-j the accounts will indicate further improvement, enabling the dividend ,to be' increased, though that is in the lap of the gods." ■ • , The better result last year was due to continued improvement in business- generally, particularly in both cargo and passenger traffic. There were no serious industrial troubles during the period uuder review, which also materially assisted. No dividends, however, were received from the company's investments in Caledonian Collieries, Ltd., Invincible Colliery, Ltd., Australian Iron and Steel, Ltd., and Southern Portland Cement, Ltd. The increase of £94,115 in shares in other companies was mainly due to further payments in respect to the holding in Australian Iron and Steel. The in-j crease of £20,324 in freehold was due to 1 payments on account of new premises iv George Street, Sydney, and at Mackay. Sales were effected during the year at satisfactory prices of the cargo steamers Age and Dromana, and also of the old obsolete steamers Eumeralla, Wallsend, and Lass 0' Gowrie. Specifications and plans have now been completed for a modern, economical 6000-ton deadweight ming collier, specially designed for grab discharge. Specifications and plans have also becii completed for a new small cargo vessel to ■ run in the Brisbane-outports trade, and tenders will be invited'hi the near future. . . ■■ ~ ■ Mr. Howard-Smith also presided at the meeting of Caledonian Collieries, one of the Howard Smith company's investments. "When the price war in the coal trade is ended then anct only then will we be able to receive a decent return on the capital invested, of which about • three; quarters is held by Howard Smith, Ltd., said Mr. Howard-Smith. Output from the company's collieries last year showed a substantial increase over that for the previous twelve months, but further reductions in already unsatisfactory prices took place in consequence of continued intense competition, and improved financial returns did not result from the higher output. A substantial, proportion of the overseas trade was again secured for Aberdare coal. ■ ■ ' With the improved volume of trade it was found possible to anake arrangements for the reopening last May of Aberdare Colliery, which had been closed down since September, 1930, on account of trade conditions. Aberdare South, West Wallsend, aud West Wallsend-Extended collieries had remained idle for lack of trade, and the upkeep expenditure at these pits had been kept to the minimum. The Central Electric Generating Station at Cockle Creek had1 continued to prove itself a very efficient unit of the company's plant. The Superintendent of Collieries reported that the coal seams had maintained their uniform good quality and ,thickness, aud the plant and power station had been' kept'in efficient working order. , ilcijlying to questions, the chairman said that "the company was really only working at present for the benefit of those receiving wages.- ."■■.'■ The management was keeping in touch with the latest developments for the extraction of oil from coal, but he did not think it desirable that overtures should be made to the Government with a view to installing plant for dehydrogenation. Such plant would cost from six to, ten millions. ,