AUCKLAND FIBLE MANUFACTURING COMPANY (LIMITED).

New Zealand Herald, Volume XXIII, Issue 7650, 29 May 1886, Page 6

AUCKLAND FIBLE MANUFACTURING COMPANY (LIMITED).

■ * , Thr annual meeting of the shareholders in the Auckland Fibre Manufacturing Company (Limited) was held yesterday at noon in the offices of the company, Stanley-street, to receive the directors' report and balancesheet and to transact other business. The meeting was originally called for Thursday, but was adjourned on account of there not being a sufficient attendance. There were present yesterday : Messrs. J. M. Clark (chairman), T. Morrin, K. C. Barstow, Captain H. F. Anderson, R. Goulstone, J. M. Me.Laughlan, C. T. Wren, A. Bell, and Wm. Johnstone. The manager (Mr. Johnstone) read the annual report, which appeared in the Herald of yesterday. The following statement of accounts was also read :— Balance sheet Ykar Ending 30th April, ISSfi. AssETH.-Cost of Unci £2:3-2 Us 4d, b»l,dinj3 ±.:>2.V.> lCs4d, machinery £11) 196 10s (id — total £29681 lSe id ; sundry debtors £72.) 1 18i fid, hill* recetrable £lti-l as 3d. stock in hund ami in process including Itoiei £17 944 10e 6ii, cash on fund £26 13s 8.1, balance profit and loss account £492 (is 3d : total £56,561 9< 3d. liabilities.—Capital 25,000 shares at£l~£>s,ooo : shires subscribed and fully paid up £15,7U5, sundry creditoia £85,608 13» 6d, bills payable £1167 15s 10d ; total £55,501 9s 3d, PaoriT AND LOSS ACCOUNT. Dr.—To genera! expenses, repairs, otc. £849 7s, Insurance £34-2 7a 2d, interest and discount £2716 3s Oil: total £8906 17d lid. Or.—Balance from Ust year £1497 12» 3d, gross profits on sales £1917 Os sd, balance £492 5s 3d , total £3900 17s lid. The Chairman, in moving the adoption of the report and accounts, said he should not apologise to the shareholders for the position in which the company at present stood, because that had been caused by circumstances quite beyond the control of the directors. These might be ranged in three classes: depreciation in the value of the material with which they. worked ; the interest account of the company was large, and there was a falling off in the demand for their manufactured goods ; and there was increased cost of producing, on account of the smaller sales. With regard to the future, the directors of the company could not take an over-sanguine view, but they believed that by practising rigid economy they would be able to pay working expenses and interest, and perhaps to diminish their indebtedness. They could scarcely look for any further diminution in the value of raw materials during the year. They had already been able to reduce their liability considerably, and they would save the intereet in the amount of the reduotiou. This would produce a marked effect upon the year after uext's results. As regarded lessening the cost of production, the directors had decided to run shorter time, aud instead of working six days a-week with fewer frames going they would work four days and keep a larger number going. By that means they would lessen the cost of production ; as whon a man did four days' work he would only receive four days , wages. They would, then, not exceed their present requirements, but yet be in a position to meet any increasing demand. They had no Manila ribre on order, and their present stock would be allowed to run down. Instead of making any purchase of large

shipments, they would only buy email parcels, and follow for the time a sort of hand-to-mouth plan. He then formally moved the adoption of the report. Mr. J. McLaughlan seconded the reso« lution, and asked whether it would not be as well for the men to work six days, and hare a reduction in their rate of wages. The Manager said it would not, except in the case of the few men whom they were obliged to keep at work all the week, and these would accept a roduction. The saving the directors proposed could only be effected by making the number of days four, instead of six. Mr. Barstow said tho cost of coal which would be saved in that way, formed a very considerable item. Mr. A. Bkll asked whether it would not answer to start a paper mill in connection with their works, and use up for that purpose a goort deal of their waste material. They would have a market in the city, and he believed the matter could be successfully carried out. He proceeded to urge the importance of the Government carrying a policy for better encouragement to local industries, and thought that until they got that, such companies as these could not succeed. Mr. BARSTOW remarked that there waa a paper company in Dunedin, and they applied to the Auckland Tobacco Company for their stems and stalks, which made one of the very best materials for paper manufacture, but the Customs would not allow them, in spite of all they could do in assuring them that they would be used for nothing but paper-making, to send it out of their place, and they had to continue to burn it. The Chathman remarked on the obstacles in the way of cheir establishing paper works. They would want a new manager, and sucli machinery which requires a considerable addition of capital, and as they did not want it for meeting liabilities, they might find it dillicult to get, For a low class of paper there was no material like the Esparto grass, which makers in England bought so cheaply. He thought that such an experiment would only laud them out of the into the fire, with perhaps a little more heat underneath. The report and balance-sheet wore then adopted. On the motion of Mr. Gotjlstonb, seconded by Mr. Brown, Mr. Baratow and Captain Anderson were re-elected directors. The Chairman, in reply to Mr. McLaughlan, said the directors did not receive any remuneration for their services. Mr, Milne was reappointed auditor, on the motion of Mr, Wren, seconded by Mr. Mc« Lauyhlaa. The meeting terminated with a vote of thanks to the chairman.