MOSGIEL WOOLLEN COMPANY

Evening Star, Issue 19407, 16 November 1926, Page 2

MOSGIEL WOOLLEN COMPANY

A SATISFACTORY YEAR LOCAL PRODUCTION HANDICAPPED EXCESSIVE IMPORTATIONS. “I am glad that the result of the year’s work is satisfactory, and I am sure that shareholders must be pleased that it is so,” said Sir John Roberts (chairman of directors), in moving at the fifty-third annual meeting to-day the adoption of the Mosgiel Woollen Company’s report and balance-sheet. 1 “ Complaints have been made by some of the woollen companies,” he went on, i “ that they have not been kept so fully employed as they could have desired, and this has made the position somewhat difficult for them; but I am glad to be able to report that the Mosgiel mill has been kept going by a lair measure of support from our customers.” „ , . . The import of woollen goods during the past year had been somewhat excessive, and that, no doubt, accounted for the lessened demand for the local production. Imports had of late, however, considerably eased off, and tins would no doubt greatly assist the mills of the dominion. Wool prices during the past year had been fairly uniform. When wool was subject to violent fluctuations trade was carried on in a very uncertain way, and from a manufacturer’s point of view stable valups were much to be desired. He was pleased, to bo able to report that the entire output of the mill during the past year had been satisfactorily disposed of.. _ , “On July 26,” went on Sir John, “we had a somewhat serious fire in the warehouse, and_ ft largo claim had to bo made on the insuring companies. The origin of the firo has not been ascertained, and it is difficult to suggest what it could have been. All the goods in the basement were seriously damaged by the fire, and the insurance offices took these over at mill cost and sold them by auction. The goods on the first and second floors were damaged by smoke only, and insurance was paid for the estimated depreciation caused by tho same, as is usual in such cases. The directors considered that it was wise to sell all these damaged goods at the reduced values, and a clearance of them has been effected. Tho total amount paid by the companies was £18.670, but this was reduced by £6,000, realised by the goods sold at auction. The money received on account of the fire considerably augmented our available cash, and this in a large measure accounts for the substantial sum we have on" deposit. We must have a good, stock of goods in the warehouse, and a largo proportion of the £40,000 now on deposit will bo required to stock up with. Our business requires that stocks must accumulate pending delivery to the purchasers at stated periods.” Turning to the balance-sheet, capital stood at the old figure; reserve account had increased by £3,000, which it was proposed should bo added: sundry creditors, including discount off book debts and provision for income tax, now lift, heating apparatus, and fire alarm system, showed a reduction of £1,508 compared with the. previmis year’s amount. Last year no provision was made for income tax, and this year £2,000 was suggested as provision for tho outlay on lift, heating, and fire alarm. Turning to the credit side of the balance-sheet, it would be noticed that they had in cash* £41,800, as against £8,233, which they owed tho bank a year ago. Goods manufactured and in process showed a reduction of £36,961, and this was largely accounted for by the sale of goods resulting from the fire and the money paid by the insurance companies. Turning to tho profit and loss account, on the debit side working expenses were higher by £1,433. This, however, required no_explanation, ns we have on many previous occasions remarked that this expenditure was always a fluctuating one. In regard to charges and salaries, including income tax, this year’s account was £2,109 in excess of last year. The provision for income tax more than accounted for this increase. On the credit side it would he noted that interest account showed a small credit, as against debits, which have been shown for many years. Tho goods account showed an increased profit of £9,401, and stood at £44,542. He trusted these explanations would assist shareholders to a clear understanding of the accounts.

“During the year Mr P. G. Pryde passed away,” the chairman went on, “He was a member of the board for over twelve years. He was a most pleasant colleague, and all the members of the board deeply regret his death, Mr Lethbridge was called to fill the vacancy. It is again my great pleasure to express the board’s appreciation of the excellent services rendered by Mr Wood and all the employees at the mill, and to Mr Cameron and the warehouse and office staff. I now move the adoption of the report and balance-sheet, and that a further dividend of 4 per cent, and a bonus of 2 per cent, be paid, making 10 per cent, for the year.”-