DONAGHY’S ROPE AND TWINE COMPANY

Evening Star, Issue 19552, 10 May 1927, Page 11

DONAGHY’S ROPE AND TWINE COMPANY

THE YEAR'S OPERATIONS The ordinary general meeting iol Donaghy’s Ropeand Twine Company,, Ltd., was held in the board room of the New Zealand Express Company yesterday afternoon. There were present Messrs J. Lethbridge (chairman of directors, in the chair), A. Bathgate, W. Gow, and Sir John Roberts (directors), and the following shaebolders:,—• Messrs J. G. H. Briggs, W. Crawford. Joseph Sparrow, H. VV. Reid, 0. G* Smith, W. Laidlaw, J. R. Laidlaw, p R. White, H. Baron, H. E. Wilson, and the secretary. The directors hold proxies for. 6,463 shares. The Chairman, in moving the adoption of the report and balance-sheet, said that they were met at a time when the dominion was faced with less.favorable conditions than had ruled for some years past. The values of such important products as dairy produce, meat, oats had fallen materially, thus reducing the buying power of the people and bringing in its train unemployment. The general outlook therefore suggested the wisdom of caution, but what more immediately concerned the company’s business was the future prospect for oat-growing. As they were aware, the company depended mainly on two lines of manufacture—namely, rope and binder twine. The latter was affected by the production of oate, largely grown in Otago and Southland, which was their chief market for twine The increased, use of motor traction had steadily been reducing the demand for horse feed, and instead of ploughing | and growing oats to enable pastures to bo renewed) fanners were now more largely turning their attention to topdressing their grass paddocks with artificial manures, and not so frequently breaking up for crop. The consequence of this was that the machinery used by tho several manufacturers was capable of turning out more binder twine than was required, stocks had accumulated, and competition was increasing. Under these circumstances the directors were I pleased that they w ere able again to j present what they believed would bo con-. sidered a favorable balance-sheet. In ] addition to distributing the usual 10 I per cent, by way of dividend and bonus, they proposed to add £2,500 to the reI servo fund, bringing it up to the origi--1 nal amount of £12,500, at which it ' stood three years ago before they cnI croached on it to enable the distribution of bonus shares. In place of adq- ! ing the same amount as last year to re-, j serve they proposed to set aside £2.000 ! towards tho cost of machines on order, land which are to reduce machinery j that has been many years in use. , Turning to the balance-sheet, tho Chairman said that under the heading of j capital and liabilities the capital ac- ; count .was ■ unchanged. The entry sundry creditors and tax provision showed lan increase, of £2,445 Is, which was I chiefly duo to the increased amount of provision for income tax. The reserve fund showed an increase of £3,250, being the amount allocated last year. In tho fund for the benefit of employees tho increase of £229 16s 4d shown represented interest op capital amount set aside for purposes of the fund. On the assets side, the item land, buildings, and plant, showed an increase of. £514 19s. During the year an opportunity occurred of securing a quarteraero of freehold, with cottage thereon, adjoining the Dunedin works. On portion of that ground they had built a necessary addition to the store for manufactured goods, and until the remainder of the ground was repaired for further extensions the cottage had been repaired and let at a rental that would return fair interest in cost. The section purchased, plus costs of additions to store and alterations and repairs to cottage, amounted to slightly oyer £2.500. Al'tov allowing for deprociat tiou and proceeds of discarded plant sold, the account stood at only tho increased amount of £514 19s already mentioned. Stock account and book debts were approximately the same as they were last year. The. bank account showed a larger credit balance of £6,312 17s 8d than last year. In explanation of the large cash balance it had to bo remembered that at March 31 it reached its maximum owing to the receipts of tho proceeds of the season’s binder twine sales. Since th« balance there had boon considerable reduction, and it would be further reduced liv purchases of raw material, payment of dividend, and for machinery on order. In tho trading account the goods account was approximately the same as last year, so tile extra amount placed to the credit of profit and loss account was due to a saving in charges. The profit and loss account had had the benefit of a refund of £402 Is 8d n> eoived on the company’s shares in the Now Zealand and South Seas Exhibi t.ion. the cost of which had been previously written off. A new item —rent. £2O 9s 7d—also appeared. This was for rent of tho cottage previously mentioned. which would be increased as tho company got the benefit of a full year’s tenancy. During the year everything bad gone tin sinoothlv and pleasantly at the works, and tho directors had with pleasure to acknowledge the good services received from the managers and nffieo and works staffs.

The motion for the adoption of the report and balance-sheet was seconded hv Mr H. E. Wilson.

The retiring directors, Messrs A. Bathgate and W. Clou-, were re-elected, and Messrs Barr, Horens, and Co. and Mr E. R. Smith were reappointed auditors.

Mr H. Baron moved a vote of thanks to the directors and (staff, Vhich rvas seconded and carried. The chairman and general manager suitably replied.