KAIAPOI WOOLLEN COMPANY.

New Zealand Herald, Volume XLII, Issue 12955, 26 August 1905, Page 4

KAIAPOI WOOLLEN COMPANY.

■ ) [by telegraph.—press -ASSOCIATION.] (Jhristchurch, Friday. The annual meeting of the Kaiapoi Woollen Manufacturing Company was held to-day. The report stated that the whole of the properties and plant were in excellent condition, and, as usual, a number of new machines had been installed, displacing those of older make. The year has been a difficult one for woolens, but the policy adopted by the directors enabled them to recommend the usual dividend, without adding to reserve. Slops had been taken to reduce output, and so diminish' present heavy stocks. The profit and loss account, after paying the usual, interim dividend and providing £2000 for depreciation, leaves the sum of £4023 IBs 5d available, and the directors recommended the further payment of £3500 as dividend, making 7 per cent, for the year, the balance to be carried forward. After many years' valuable service on the board, Messrs. W. R. Mitchell and J. Conmil resigned their seals owing to ill-health. Messrs. R. F. McDougall and J. A. Froati,ek were appointed to till the vacancies, but they now retire and ore candidates for reelection.

The chairman of directors said the company had been able* to reduce very largely the cost of manufacture, and that, with an increase in the selling price, had enabled them to cope with (lie severe competition of the past year. The result of the directors' new policy had been to increase the stock, but the increase really amounted to only about one month's busy trade. Mr. C. M. Gray, a shareholder, questioned the. justification for the chairman's optimism, in the face of the steady fulling off of 2£ per cent, in the rate of profits during the" last 15 years. lie thought the new policy of piling up stock was not a sound one. The, chairman replied that the- company had kept the stock rather than sell at a loss, and now saw their way to dispose of it profitably.