LEYLAND-OBRIEN TIMBER COMPANY.

New Zealand Herald, Volume XXXV, Issue 10910, 15 November 1898, Page 3

LEYLAND-OBRIEN TIMBER COMPANY.

ANNUAL MEETING.

' The annual meeting of shareholders of the 1 Leyland O'Brien Timber Company (Limited) i was held yesterday, at the company's office, i Custom-street West. Colonel Burton (chair- ; man of directors) presided, and there was a good attendance of shareholders.

ANNUAL RETORT. The annual report, which was taken as read, was as under: — " Your directors have pleasure in laying before you their first# report and balancesheet, and congratulate you upon the successful results of the year's operations, 'which yielded the substantial profit of ±>10,108 os Id. A reference to the annexed balance-sheet will show that after paying the damages in connection with the Stella-Wai-temata collision (£2152 2s), the company's formation expenses (£326 2s 6d>, and writing down the book values of the s.s. Stella, scow, and plant (£286 16s 7d), and paying the interim dividend (£1498 10s 4d). a balance of £5893 lis 8d remains. From this sum your directors propose to place £3000 to reserve, to pay a dividend at the rate of 10 per cent., and to carry forward the balance (£1520) to next year. When the company took over the business of Messrs. Leyland and O'Brien, on August 1, 1897, a sum of £10.000 was written off the prospectus valuation of the assets, which brought them down to the amount of the company's subscribed capital. After full and careful investigation, your directors are able to record their complete satisfaction with the statements set out in the prospectus. The output of sawn timber for the past year has been larger than that for any previous year. The mill has been kept working day and night for the greater part of the time, and the demand still continues, and there are sufficient logs afloat and at command to make us independent of freshes for the next two years. The local trade has been so great' that the company has been unable to avail itself of the Australian and Home markets. These are now, and will in future be open to us. We have been able to write oil' from this year's profits the loss sustained by the unfortunate collision of the s.s. Stella with the barquentine Waitemata, and also the whole of the preliminary expenses connected with the formation of the company. We recommend the sum of £125 be placed at the disposal of the directors as honoraria for the year."

THE BALANCE-SHEET Which was made up to the year ended September 30, 1898, was as follows:—Dr. To capital—4o,ooo shares at 20s, £40,000; less unallotted shares, £3000; £52,000; less calls unpaid, £71 9s 6d; £31.928 10s fid; sundry creditors, £2253 5s 2d: total liabilities, £34.181 15s 8d; to profit and loss, £7392 2s; less interim dividend, March 31, 1898, £1498 10s 4d; total, £40,075 7s 4d. Or. By debtors—After deducting bad and doubtless debts, £8644 13s 8d; by timber stocks, £4245; by bushes and logs, £17.053 0s 8d; by mill, machinery, and plant, £4912 3s sd; by steamer and scow, £2200; mortgages, £334 9s 6d; by cash in hand and bank, £2686 0s Id: total assets, £40,075 7s 4d. Profit, and loss account from August 1, 1897, to September 30, 1898: To discount, trade expenses, wages, rent, commission, etc., £9236 0s Id; to repairs and renewals, £1044 6s 4d; to rates, taxes, and insurance, £335 4s; to salaries, £1008 13s 4d; to bad debts, and allowances for bad and doubtful debts, £1617 Is 2d; to oils, belting, horse feed, etc., £476 19s 2d; to balance, £10,108 3s Id: total, £23,826 7s 2d; to written olf Stella, scow, and plant, £237 16s 7d; to Stella-Waitemata collision, £2152 2s ; to preliminary expenses, £326 2s 6d; to balance, £7392 2s: total, £10,108 3s Id; to balance as per balance-sheet, £7392 2s; by timber, ships' earnings, and interest, £23,826 7s 2d; by balance, £10,108 3s Id; by balance, £7392 2s.

chairman's remarks. In moving the adoption of the report and balance-sheet, the Chairman said the business, though termed that of the year, was really for the period of 14 months. The profit made during that period, £10.108 3s Id, was, he considered, very satisfactory. There was, however, one point to which be wished to refer, and that was the amount of £3000, which the directors proposed to place to reserve. It was not, he might explain, the intention of the directors to fund that amount. The £3000 was practically a surplus, and -would lie shown as part of the profits for the next year. The directors. while they considered it advisable that financial businesses should build up a reserve fund, thought the case was different with industrial institutions, and bad decided that rt would be more profitable to carry that money in a manner that would enable it to bo used with advantage, rather than to allow that capital to remain idle. As to the unfortunate Stella-Waitemata collision, the company had paid £2152 2s, which was a some what staggering blow to a young company, as the unfortunate affair happened a few weeks after the initiation of the company. However, they had liquidated that claim, had in addition made a handsome profit, and that spoke volumes for the business of the company. As to the bad and doubtful debts, due allowance had been made for them, and the debts due to the company, £8404 13s Bd, could, with confidence, be considered as good for every penny. In the matter of bushes and logs, which were valued at £17,053 0s Bd, he could say with confidence that ample allowance had been made there. Referring to the amount written off Stella and scow, and the amount, £2200, at which they appeared in the company's books, he thought that, as the Stella was as good and sound as ever, she would be considered well worth the money by shareholders who had seen her when in dock. As to the company's bad debts, the Chairman explained that these included the bad accounts on debts to the amount of £1600 extra, taken over from the old company, so that the bad debts of the company really amounted to about £1000 for the year. As the turnover was £53,000, this represented a loss of under 2 per cent, which should be considered highly satisfactory. Tho success of the company was primarily due to the good management of the managing directors, Messrs. Leyland and O'Brien. (Applause.) The directors had given careful attention to the affairs of the company, but the shareholders were indebted to the managing directors for the careful and capable manner in which they had attended to the interests of the company. Captain Daldy and Major George suggested that in referring to the £3000 spoken of by the chairman, the words reserve fund should bo struck out, and "surplus" substituted. This "the chairman agreed to, and moved the adoption of the report and balance-sheet, subject to the alterations mentioned. Captain Daldy said that with 50 years' experience in the timber trade, he could speak with authority as to the valuations placed on the timber of the company, and he could assure those present that the valuations appearing in the balance-sheet were :'.n every way fair and equitable. Major George, while congratulating the company on the satisfactory balance-sheet presented, and the handsome dividend earned, said he would like to see, say, £1000, out of the £3000 surplus, placed aside to form the neucleus of a reserve fund, to be used in the event of fire, or for any ui'oreseen contingencies that might arise. The motion for the adoption of the report and balance-sheet was then put to the meeting, and carried unanimously.

GENERAL. Mr. 0. B. Waymouth, the retiring auditor, was reappointed to the position. The Cluiirman intimated that the dividend of 10 per cent, would be payable today, and that warrants could be obtained at Mr. G. Elliot's office. Queen-street. On the motion of Major George, a hearty vote of thanks was passed to the chairman and directors, and to Messrs. Leyland and O'Brien, the managing directors. Colonel Burton briefly responded, and the meeting terminated.

A correspondent, over the signature of "A Daily Traveller," draws attention to the dangerous and neglected state of the Great North Road from Waikumete, turning up Cartwright's Hill to Henderson. He alsc( states that the road at the Henderson railway crossing is in a dangerous state, and also for a few chains along by the Palls Creek. At some places carts have to partly unload before they can get over the dangerous places. If these statements are true, it is not creditable to the local authority having charge of the roads complained of. What is it '! I suppose it must be he's thinking of "once tried always used," always used once tried."— Baking Powder.