WHAKATANE PAPER MILLS

Nelson Evening Mail, Volume LXXIII, 6 December 1940, Page 7

WHAKATANE PAPER MILLS

YEAR’S LOSS OF £72,994 £ net loss of £ 72,994, including £33,<97 for depreciation, is shown in the accounts of Whakatane Paper Mills, Limited, for the year ended 30th June.’ to be presented to the annual meeting in Sydney this month. A satisfactory upward trqnd in output is reported, production, which was commenced in July, 1939, having risen from 3000 tons SLn° aicl f ° r the first six mont hs to 2550 tons for three months ended September, 1940. Over the same period from July, 1939, the average monthly value of output had increased from £IO,OOO to £30,000. The report mentions the difficulties associated with the running-in period As prices fixed by the tribunal were based on a much higher annual tonnage than that possible in the first year, the running-in costs had fallen heavily upon the company, but the loss entailed was not greater than might be reasonably expected. Negotiations with the London group for a further extension of debentures totalling £70,036, now overdue, were still incomplete, and would form the subject of a separate report. Also it had not yet been possible to pay overdue interest on the company’s debenture stock, including London, but the position wls expected to right itself in the coming year. For the benefits of shareholders unable to attend the annual meeting in Sydney an informal meeting is to be held at the Whakatane works next week to enable the views of those shareholders attending to be given adequate recognition at the annual meeting.