COMMERCIAL

Grey River Argus, 2 December 1943, Page 2

COMMERCIAL

WESTPORT COAL COMPANY DUNEDIN, Nov. 30. Addressing shareholders at the annual meeting of the Westport Coal Company, the chairman of directors (Mr James Begg) said they would no doubt regard the figures as disappointing, though probably this would have been anticipated from statements made at annual meetings in recent years. , Mr Begg recalled that the Government, as a war measure, had decided to set up a price tribunal, which rigidly controlled selling prices with a view to maintaining them at pre-war levels. Costs, however, had risen steeply, and although when wage increases were granted, the Government gave coal companies a subsidy to meet this, the subsidy had proved inadequate for the purpose and to cover the heavy increases for replacing the wire ropes, plant and stores necessary to keep the industry going. There was also control of the output to ensure that the product was diverted to the most essential needs, and this sometimes resulted in larger quantities having to be supplied to industries and the prices of these supplies were not so remunerative. These restrictions were mainly responsible for the poor result. The company’s other sources of revenue had not suffered to the same extent, and had helped it to pull through what would otherwise have been a disastrous year. Mr Begg said that the output ’for the year was 265,230 tons, or 20,644 tons less than in the previous year, mainly due to a shortage of labour. Plans were in train for the development of new areas at the Denniston colliery, and when these were opened the mine would soon regain its pre-eminence as a large producer of first-class coal.

ALEXANDER MINES. In a circular letter to be presented to shareholders at an extraordinary general meeting, to be held at Greymouth on December 14 the directors of Alexander Mines Ltd., review at length difficulties encountered during the vear’s operations. The driving of a new lower level could not be undertaken because it was not possible to know where to direct the No. 7 level with any prospect of successfully intercepting the lode, provided it remade. The problem of i labour or mining, referred to in the last annual report, did not improve during the year and there was Tio immediate prospect of any relief. An endeavour was made, the circular letter states, to obtain the use of a small diamond drill from the Mines Department, but the two machines possessed by the Department were both engaged in essential work —one at the State coal mines and the other at Glenorchy. All these factors militated against the company’s operations, and furthermore, the financial resources became exhausted and the shutting down of the mine became imperative. The directors therefore decided to close down and to convene the extraordinary general meeting of shareholders so as to put the position before them. The present time was not opportune for calling on shareholders to provide further capital, and the proper course to adopt would be to conserve the company’s plant and property until the war terminated. Then, if shareholders so decide, further capital could be provided and prospecting resumed. A review of the company’s activities shows that since its registration in March, 1926, gold_ production had been £268,260, und in t*hc period dividends distributed had been £52,000. Expenditure on plant, machinery, buildings, etc., had been £3O 628. Direct taxes paid on gold production had, been £15,788, and total income tax, mining rates, and Government lease rents paid £9680.

NGAHERE STOCK SALE Messrs Dalgety and Co., Ltd. report a good attendance of buyers at the above sale held yesterday. The offering varied a good deal in condition and quality, and, although the sale was a sound one, there was a slight easing in values for both beef and store cattle. Dalgety and Co’s, offering included the following sales;