BRUCE WOOLLEN COMPANY

Evening Star, Issue 19710, 10 November 1927, Page 15

BRUCE WOOLLEN COMPANY

THE ANNUAL MEETING BETTER RESULTS ANTICIPATED Mr W. Mooro presided yesterday at the annual meeting of the Bruce Woollen Manufacturing Company, and in moving the adoption of the annual report said that he very much regretted that as a result of the year’s work they were faced with a loss. There were not a few reasons for the result. In the first place, there was a lot of stock that had to be sold at a loss. _ Then reorganisation took place. Their former general manager had resigned, and a new general manager was appointed in his stoad. The company’s selliag channels had now been very much improved —formerly that was a weak point—and the directors believed that to-day_ their mode of selling was much superior to what it was at one time. The balancesheet showed that the overdraft was larger than it was last year, but that was accounted for by the dividend paid last year, the payment of income tax, and the withdrawal of deposits, It was the stock that was looked on as the keynote of all balance-sheets. This year the stock had slightly increased, and the directors were satisfied that the amount stated was the amount of the actual stock in hand —practically all fresh stock. In support of the belief of the directors that the company had .turned the corner, ho mentioned that for the last four months its monthly sales had shown an increase on the corresponding four months of last year. (“Hear, hear.”) Mr A. E. Stewart seconded the motion, He could not say ho had much pleasure in doing so, because after 20 years’ payment of a dividend it was rather a wrench for shareholders to find they were to go without this year. Ho was afraid it would make a difference to many people who had in tho past looked on the dividend as a Source of income. The chairman had put the position in a nutshell, .and what he had said might bo amplified to a small extent. The report stated that tho past year had been a particularly Hying one for all directors, owing to its bciug largely a year of reorganisation, coinciding with a period of general business depression. This was accounted for partly by a now general manager taking over and putting everything on a very conservative basis, with the result that this year they had the most conservative year in the history of the company. Further, it was discovered that their system of costing was at fault. Tho ratio for overhead might be all right with an increasing turnover, but it became faulty with a decreasing turnover. Turning to the bal-ance-sheet, the bank overdraft was £20,600 higher than last year. The main thing, so far as the shareholders were concerned, was that their capital was intact; it was all The plant and premises had boon maintained up to the highest standard, and there was a much higher value in their land, buildings, and machinery than was shown in the figures of the balancesheet. Further, the reserve of £17,000 was intact, and Josses this year had boon provided for out of the carry-over of fast year. With regard to the future, it was hard to tell what would happen. Although they had turned the corner, things would have to bo run cannily, as was the case with most institutions to-day. With two exceptions, all the woollen mills were hard put to it owing to keen competition. Everything depended on the turnover in the future, and as tho chairman had said, the turnover was increasing monthly. The wholesale houses and their representatives, botli the inside salesmen and the outdoor salesmen, were the friends of tho company, which was more than they could say in the past. Every warehouse in the dominion was working with tho company, and shareholders and directors alike were to bo congratulated on that fact. (Applause.) Tho report and balance-sheet were adopted. 'The retiring directors, Messrs W. Mooro and A. E. Stewart, were reelected.

The Chairman, in thanking shareholders ior tills evidence oi continued confidence in him, said that at a meeting of' directors that morning it had been decided to appoint Mr 11.I 1 . Ai'Skimming to fill the vacancy on the directorate. He trusted that the directors, with the aid of Mr M'Skimming’s push and energy, would be able to show bettor results at the next annual meeting. (Applause.) Mr Stewart thanked the meeting for its renewed confidence in him. • Messrs James Drown and John J. Lane were appointed auditors. Mr R. M. Rutherford, on behalf of the directors and the shareholders, moved a hearty vote of thanks to the staff. Last year, ho said, was a trying one for all concerned, and but for the loyal co-operation of the staff it would have been even more trying. Those who lived near the mill were accustomed to see lights in the office at all hours, which bore testimony to the large amount of work on the part of the staff of that department. The mechanical staff had served extremely well throughout the year; it was a staff on which the director? could rely implicitly. Whenever they were asked to work extra hours they did so willingly. (Applause.) Mr A. M'Kechnie seconded the motion, which was carried unanimously. Air E. Moore, general manager, in replying on behalf of the staff, said lie hoped that tins night oil burnt by the office staff had been burnt to somo purpose. Every member of the staff, particularly the permanent staff hi the office, the mill manager, and the heads of departments, had been only too willdug to work when called on for extra duty. So far iu the current year the results were more satisfactory than he had expected—so much so that ho trusted that at the end of the year he would bo able to show that the mill had not lost much ground, if any. Business houses throughout the dominion now welcomed the company’s representatives, which augured well for the success of the unill. The directors, he added, had had a trying year; they had field more meetings than iu former years, 'and to <>ssist the company further they had agreed to accept no lees for their services. It was only right he should mention the fact to shareholders; it was an evidence th.at the directors had tho interests of the mill at heart, and the welfare of tho mill meant tho welfare of tho town. (Applause.) Mr Thomas Scott said tho directors wore giving their tiine to the affairs of the company, and ought to be recompensed. (Applause.) Ho expressed approval of tho. appointment of Mr Al’Skimming to tbe board. On the motion of Air Scott, tho directors _ wore heartily thanked Tor their services.