BRUCE WOOLLEN COMPANY

Evening Star, Issue 23129, 1 December 1938, Page 11

BRUCE WOOLLEN COMPANY

THE ANNUAL MEETING ENTRY INTO RETAIL BUSINESS , HOPEFUL OF COMING YEAR

The annual meeting of shareholders of the Bruce Woollen Manufacturing Company, Ltd., was held at Milton yesterday afternoon, the chairman of directors, Mr P, McSkimming, presiding. Moving the adoption of the annual report and balance sheet the chairman said he very much regretted that the trading account showed such a small margin of profit. After writing off depreciation to the extent of £SSOO the net profit remaining was only £ll9 Is fid. Trading had been very difficult during the year, and, as a consequence, they had very heavy stocks of goods on hand with a correspondingly high overdraft at the bank. While it was quite true that they were not alone in this respect, they must confess that they did not appreciate the present position. He was very keen to see all their hands kept fully employed, as working short time in a woollen mill was hard on both the employees ana the company. , ' Some eight months ago the directors decided to enter the retail business and ascertain if it was possible to increase sales by selling direct to the public. The decision to adopt this course was not hurriedly arrived at. After very carefully considering the position they had decided to send a special representative throughout New Zealand to learn what business he, in conjunction with their various agents, could obtain from retail houses. The result of ms six weeks’ canvass was so meagre, that the directors unanimously agreed to open a shop in each of the four centres; viz., Wellington, Christchurch, Dunedin, and Invercargill, In addition to the shops they opened a mail order department Owing partially to the delay caused by sending the representative throughout New Zealand, they were rather late in the season in opening their shops and mail order department, but, notwithstanding this fact, they did a great deal more business than they would otherwise have obtained. The location of the shops in Wellington and Dunedin left much to be desired, but they could quite understand that they had to take what was offering at the time. Some five weeks ago they had secured a better site in Wellington, since which the trade had doubled. They were doing their utmost to secure a better site in Dunedin, as they were quite sure it would result in increased sales. In conclusion, he would just like to say that he felt hopeful about the coming year, and would strongly aavise shareholders to hold on to their shares and not throw them away tor a pittance. It was quite true that ,Hope deferred maketh the heart sick, ana many of them had been more than patient, but he would ask them to bear with the position for one more year when he trusted a much bri S h ter balance sheet than the present one would be before them. . Mr A. E. Stewart, seconding the motion, said he did so with no very great pleasure. He was very sorry the ordinary shareholders, wha had been passed oyer again in the matter of a dividend. They had been able pay the preference shareholders out. 01 the dividend equalisation account but there had been nothing for the ordinary shareholders. Neyertheless, he regarded the chairman’s advice about not throwing away their shares for a son,, as a counsel of wisdom. Sharelmlders should remember that the.company had written off assets totalling ove £IOO.OOO since its inception, and tnat its property to-day represented ijiu value of 20s in the £. If their sales during the year had been larger they would have been able to pay a, dividend, but he agreed with the chairman that things should be very much better during the ensuing year. The motion was carried. • A shareholder asked whether it was necessary to have a large directorate in view of the company s position. Directorates cost money, and he remembered when the mills were founded that it was the opinion of the founders that the board of directors should be kept as small as possible. The chairman said that under the articles of the company the board could comprise no fewer than three and not more than nine directors. For the benefit of the questioner, however, he would say that during the past year the directors had drawn nothing in fees at all. They had not been overpaid for that period, whatever was thought of their fees in the past. ~ . While on the subject, Mr McSkimming said he knew it was being said that he was making money out of the company. He wished to deny that foolish charge and would challenge anyone to prove it. His heart was m the business and he was anxious to see it prosper for its own sake. What he was worried about was that he was Involved in something which was not 3 Messrs' P. McSkimming and P. L. Nicholson were elected to the board of directors. Mr McSkimming offered himself for re-election, and Mr Nicholson replaced Mr E. Moore, who did not seek re-election. Mr J. J. Lane was re-elected auditor. A vote of thanks and confidence in the directors and the management was carried unanimously.