WESTPORT COAL COMPANY

Evening Star, Issue 20958, 24 November 1931, Page 3

WESTPORT COAL COMPANY

AHHUAL HEETIAS The annual mooting of shareholders of tho Westport Coal Company Itxi. was hold in tho company’s board room yesterday afternoon, about fifty shaieholders being present. in moving tho adoption of the annual report, tho Chairman (Mr GDonniston) ;aid; “ 'L'he figures will no doubt bo regarded as very disappointing, though not worse than tho statements at the annual meetings in recent years have enabled shareholders to anticipate. The curtailment of business from the various causes so often mentioned—namely, tho displacement ot coni by oil fuel and hydro-electric power, with the steady activity ■ unng the past few years in the development of coal mining leases bringing about keener competition — has resulted mi a very much reduced output from oui collieries during the past year. tho general depression, prevailing also affects our business very seriously, ihe railway orders, amongst others, are much smaller than_ usual owing to rtailment or abolition of some ot the services, while lessened business or greater economies in many other directions have been reflected in our sales during tho year. “ In making a survey of tho position I cannot see much prospect of expanding markets in any direction in the near future, and it is probable that wo may have difficulty in maintaining < ur output even at the present low level. Careful consideration is being given to methods of reorganisation in the hopo of reducing mining costs to bring them into line with tho altered conditions. Reduction of mining costs must also, of course, be accompanied by reduced haulage and freight charges to make them of much value. Unfortunately our railway charges at Westport have been much increased in recent years, and although the Government has stressed the necessity for employers passing on to consumers the advantages of the 10 per cent, cut, I regret that bo far as haulage on coal at Westport is concerned no reduction has been made. Indeed, as recently as December last a 10 per cent, increase was made. It is hoped that ere long some abatement of these heavy freight charges may be possible.” After referring to the largely reduced output owing to want of trade and i He time, including a period of thirty-five days duo to a strike, the chairman reviewed the accounts in detail, and, coming to the profit and loss account, pointed out that the profit from tho mines was .very small, and it was only due to the interest on investments being brought into tho accounts for the year that a small dividend from this source became possible. It was also proposed to make up the distribution to the same amount as last year by payment from the insurance fund of a further Is per share, making Is 9d per share for the year. .Continuing, tho chairman said; “I now wish to refer to another matter. Shareholders have frequently referred to the dimensions of the sinking fund, and have indicated the opinion that this should be distributed. _ The directors have given serious consideration to I bis matter, and, in view- of the changed conditions to which I have referred and the fact that for some years, owing to diminishing demand for coal, our output has been consistently reduced, and the fact that we see no prospect of this improving, the directors propose to reduce tho capital of tho company, which now stands at £450,000, to £225,000 by the distribution of 10s per share from tho sinking fund which was created twenty-six years ago for this purpose. The larger capital is not now required and cannot profitably be used, and it is anticipated that the reduced capital will enable the company to cope more satisfactorily with the present depressed marketing conditions and bring tho' capital more into line with tho lower earning power of the company’s operations. It will take some time to carry out tho necessary formalities cud arrange a scheme in tho best interests, of shareholders, but the directors feel that shareholders are entitled to know its intentions at once, even though it takes some time to finalise the matter. A special general meeting of shareholders will be called at a later date, when the necessary resolutions will be submitted.” The chairman mentioned the fact -hat it was now fifty years since the company was established, and ho recounted some interesting details of its history during that period. The motion for tho adoption of the report and balance-sheet was seconded by Mr James Bogg and was carried unanimously. Tho retiring directors, Messrs E <\ Hazlctt and James Begg, wore reelected, and Messrs J. S. Hislop and G. M. MacLcan were reappointed auditors. Votes of thanks to tho director’s and staff were acknowledged by the chairman and the general manager (Mr \V, A. Fla veil).