HELENSVILLE TIMBER COMPANT, LIMITED

New Zealand Herald, Volume XXIII, Issue 7782, 30 October 1886, Page 3

HELENSVILLE TIMBER COMPANT, LIMITED

The ordinary annual meeting of the Helena 4 villa limber Company, Limited, was held yesterday at their office, StUir Buildings, Fort-street, Mr. Arthur Bull, ohairman of the company, presiding. The secretary (Mr. J. A. Walker) read the notice convening the meeting, and the minutes of last annual meeting were read and confirmed. The following report and balance-sheet were taken as read :— Fifth Annual Report. To this Shar*bolobbs, — Your directors hate pleasure in presenting their flflh report and balanoaiheet (or th« »ear ending 80th September, 1888. The mill and machinery have been maintained In efflolent working order. The cost of all repairs, besides the gum of £568 Os 7d for depreciation, hi« been charged to revenue account. The balance of the year «trading, after deducting the above sum of £fiflß Os 7d, ihowi a net profit of £84 19* Sd, which, added to the amount brought forward from last year, makes a total of £2618 lod, which, subject to payment of £78 12s for director!" fee», it is proposed to carry forward. In accordance with the articles of *sseelation, the directors retiring are Messrs. A. Ball and John Held. Mr. Bull offer* himself for re-election. The auditor alio retires, but Is eligible, and offers himself for re-eleO-tlon.—Aktbub 8011, chairman. — Auckland, 10kh October, 1886. B*I.INOK-BHtKT AT 80TB SKPTBKSSR, 1888. Liabilities.—Capital : 4000 shares at £6 etch, £20,000, capital l«sued: 1713 »har«s at £5 each [paid], £8866 ; cat ital issued, 4 sbarss at £1 each, £4 ; Mils payable, £4790 16« Dd; National Bank of New Zealand £2005 13a fid; accounts owln* by company, £1781 C< 8d ; dividends unpaid, £30 16» lOd i balance prod, and loss account, £2618 lis 10d ! total, £20,041 5s 6d. A*sstb. —Freehold property, ,£464 12* 8d ; do bush, £588 ; do manager's hous», £127 6« 2d : mill building, machinery, and railway Hiding, £6680 Ss 7d : leu depreciation 1£568 0* 7d], £6112 6s; aocount* owing to company, £1846 10s fid ; timber at mill and y.>rds and stores, £11,893; cash In hand, £9 lis : total, £20,041 6s 6d. Profit AND Loss Account. Vy wagas and salaries, £4059 0« 6d ; general expenses, discount, ai d commission, £2866 7s lid ; freight [railway charges] £1699 15s 4d ; depreciation, £568 0* 7d ; bad debts. £525 it 8d ; balance, £2618 12- 10, i : tot*l £11.821 Os 4il. , _ To balance from 30th September, 1885, £3057 10s Od; less directors' fees (£9O 6s) and dividend at 6 per oent. [1438 iOs 10.1], £2f>2B 13s 2d ; rent of houses, £66 19s ; gross profits, £9235 8i 3d : total, £11,821 Ob 4d.

The Chairman then said : Gentlemen, — The balance-sheet has been in your hands for some days, and there are some points in connection therewith to whioh I will refer. It will be Been that, as compared with last year, our stock of timber at yards and mill shows a large increase. This is, no doubt, mainly owing to the restricted salts consequent on the dulness of trade, while the purohase of timber under contract has gone on as in former years, but the contract under which the bulk of this supply has been received is virtually terminated, and in future we shall be in a position to reduce stocks and purohase in the open market according to our requirements. It will be seen that a marked difference exists between the accounts owing to the company in the present balance-sheet as compared with the last— namely, £1846, as against £6043. This is owing to the fact that the local trade has practicality collapsed, necessitating virtually a new departure, as our trade is now mainly a shipping one, entailing some expense in adapting our yard to the new business. There are two other items to which I wish to refer, viz., bad debts, £525, as against £72 for last year, and depreciation, £568. With regard to the bad debts, a proportion of these are chargeable to last year, as they refer to accounts then outstanding, but reckoned good, but whioh have beoome worthless, owing to subsequent failures. With rogard to depreciation, £568, it is a question whether, in a small concern like this, tbe deduction annually of 10 per oent. should be maintained. We have now written off in this way £2100 from an original total value of about £7200. The machinery, buildings, and plant have been thoroughly maintained and added to out of current expenditure, and there is no doubt that as a going concern the plant is fully worth what was originally expended upon it. The amount to be charged under this head will be a matter for consideration in future years. Taking the balance-sheet as a whole, 1 oan see no cause for dissatisfaction, having regard to the very unfavourable nature of the times. It will be seen that our liabilities are £8548, as against book debts and stook, £13,748, leaving a balance of about £5200, as against a share capital £8869, besides our mill, machinery, freehold property, and bush. I he stock has been carefully valued, and the rates are well within even the present low margin of prices. I move the adoption of the report." ,

Mr. H. Brown seconded the adoption of the report. Mr. Melville asked at what price the timber had been taken in the valuation. The Chaihman said the price* had been very carefully revised at a meeting of the Board, but he did not think it advisable to mention them publicly. Mr. Melville said it was usual to hand a statement round, and give the information to every shareholder. The CmiKMAN said they would be happy to give the information to Mr. Melville or any other shareholder, but did not think it advisable, in the interests of the shareholders, to have it published. Mr. Mklvxllh (asked if the timber were lost to-morrow would they be able to replaoe it at the price they bad taken it at ? The Chairman said a large proportion of the timber was in long lengths which oould not be replaced at all as there were no more to be got at the present time. They expected that chese would be the oause of there obtaining many orders as they could not be got elsewhere. The Secretary stated that the price of logs and of other timber had been plaoed at less than they cost them. The directors had written off value which had been put upon the logs. Mr. J. McLeod said they had taken the whole stook at a very low rate. Mr. Brown said," at the prices they had taken it they could always get a profit upon it. Mr. Mklvillk asked if the consignment of timber which had been made was a satis' factory way of trading. The Chairman said, a large proportion of their business had been for orders, but in these times they were obliged to run some small risks. The Secretary said it bad been determined that they should not make a second consignmeat until the money for the first bad been realised. They had sent a second cargo in this instance by the advice of their agents, but at a reserve price, .so that there could be no loss. The cost of storage for three months, would by the arrangement they had made, be very small. The report was then adopted# Mr. J. Brown proposed, and Mr. McLsod seconded, the re-election of Mr. A. Bull and the eleotion of Mr. H. P. Kayanagh as directors. The resolution was parried, the Chairman remarking, in reply to a suggestion by Mr. Brown as to whether they should consider the question of reducing the number of directors, that they had recently reduced the number from seven to five, and he did not think it would be advisable to make the number smaller. Mr. Kavanagh proposed, and Mr, MoLkod seconded, the re-appointment of Mr. John Milne as auditor, at the same remuneration as before, namely, £25 a year, and £4 4s for travelling expenses. The resolution was carried. Mr. MoLkod said that he thought it would be advisable to have the opinion of the shareholders as to writing off such a large amount yearly. Mr. Melville asked, if they wished to stop their business could they sell their mill at the price they took it at ? The Secretary said his opinion was that they should continue writing off until they could sell their mill under any olroumstanoes at the price stated in the balance«sheet. Mr. Kavanagh said be considered the mill worth more now than it was at the time it was ereoted, but he approved of the plan of writing off. The Chairman said it simply meant putting money into a reserve fund. Re did not think in their business that was necessary, but made no objection, considering the dividends they had paid, and comnaring their company with others he thought shareholders would be of opinion that they might have made a worse upeoulation. Mr. Melville asked what rent they were paying for the office they occupied. The Chairman said £50 a year. Mr. Melville said that was too much. He did not think it was worth more than 10s a week. The Chairman said he was of a similar opinion, and he thought they would have to make other arrangements. The meeting then terminated with a vote of thanks to the chairman.