ROPE AND TWINE COMPANY.

New Zealand Herald, Volume XLIV, Issue 13499, 28 May 1907, Page 6

ROPE AND TWINE COMPANY.

QUESTION OF OVER-VALUATION.V [BY telegraph:—press .'• association..! • v Dcnedij?, Monday. The annual meeting of shareholders in. Donaghy's Rope and Twine Company,-:; Limited, was held to-day, and was attended by a large, number of shareholders. The chairman, of directors, Mr. J. L. Passmore, presided. An unusual amount of interest, centred in the meeting, owing to the re- . commendation of the' directors,, composed for the most part of new members, with regard to reducing the , valuation of the company's properties from £77,055 6a sd, . as shown by the Hooks, to £36,342 17s Id. The directors regretted the necessity, in the circumstances; to. deprive .the shareholders of a dividend for the year. f They stated, however, that the earning power of the company was unimpared. _ The Chairman, in moving the adoption of the report and balance-sheet, mentioned that the rope sales were several thousand pounds better than last; year, while stocks were kept down almost to the minimum, and the yearly output increased by 400 tons. In order to meet the deficiency shown by over-valuation, the' profit and loss account (£3351 3s. lid), as well as a. number of reserves (totalling. £9632 lls9d), would be appropriated.; He also suggested that the shareholders should agree to write down the capital of the companv -from • £47,000 (4700 shares at £10) , to £23,600 (4700 shares at £5). A .lively discussion ' took place on the valuation question, and . also on the disposal of shares by some of the old proprietor's i'of the concern. Ultimately the report and balance-sheet were adopted, and a committee set up to investigate 'the' position with regard to the transfer or sale of shares by the old direc-,.-"■; toi-ate, and to report to a future meeting.