TAOTIEI COAL MINES.

New Zealand Herald, Volume LV, Issue 16851, 16 May 1918, Page 6

TAOTIEI COAL MINES.

LAST YEAR'S OPERATIONS.

THE IMPROVED POSITION.

The 19th annual meeting of shareholders of the Taupiri Coal Mines, Limited, was held yesterday in* the Chamber of Commerce. The Hon. E. W. Alison, M.L.C., chairman of directors, presided. In moving the adoption of the animal report and balance-sheet, -which were published in the Herald mi May 7, the chairman said that it was with much regret that he found himself in the position of again having to open his remarks by making reference to the death of one of the directors of the company, Mr. Sidney J. Nathan, which took place during the year. On the death of Mr. H. A. Cordon, Mr. Nathan had been elected to the vacancy on the board, and though a member for a short time only, he had prpved himself a useful and capable supporter. Mr. Nathan had always been a strong supporter of the company, besides being one of the earliest and largest shareholders, and the directors much regretted his loss. Mr. Nathan had been one of Auckland's most prominent commercial men, and had been held in high esteem and respect in business circles. The directors had conveyed to Mrs. Nathan and her family a message of sympathy and condolence. Mr. Joseph Raynes, another early shareholder, had been appointed to the vacant seat. Mr. Raynes was well known to the shareholders of the company, and the directors felt sure that their choice would be fioproved generally. Dividend of 7£ Per Cent. "The moving of the adoption of the report and balance-sheet on this occasion," said Mr. Alison, " is a pleasurable duty, inasmuch as the directors feel themselves justified in recommending the payment of a dividend— first in fou- years. On reference to the profit and ioss account, it will be seen that the balance of profit for tht year is £11,671* 15s 9d, after making allowance for depreciation to the extent of £4500, a sniall sum in view of the fact that Ralph's mine has been closed, and that for the last three years no allowance at all could be- made under this head. To the balance of profit must be added the sum carried forward from last year, ■! amounting to £1217 4s 7d, making a total j of £12,889 0s 4d. It will be noticed that' the preferential dividend which should have ! been paid on March 31, 1917, was not paid until May 7, 1917, and so comes into this year's accounts. But this does not affect the position as, had that dividend been paid at its due date, the amount to be brought forward from last year would have been decreased by the amount of the dividend. The total amount paid to the preference shareholders was £2280 16s 10d, leaving a net balance of £10,608 3s 6d. This the directors recommend should be dealt with by paying a dividend to the ordinary shareholders at the rate of 74 per cent, per annum, absorbing a sum of £9075, and by carrying forward to next year's account the sum of £1533 -3s 6d. "The improved position of the company is due to two main factors. First, the closing of Ralph's mine, and the concentration of all work in the Extended mine, resulting in the elimination of double overhead and other expenses. The results for the year have proved the correctness of the statements I made in my address to you last year, when I said that results already have proved that the step was a wise one, and in the best interests of the company. No difficulty is being experienced in getting from the Extended mine the full output obtainable with the number of miners available. The other factor is the increased output—l9o.9s7 tons as against 161,636 tons last year—which is due to the fact that of the possible working days, 12 and a-half only were lost.

Increased Cost of Production. " While the result of the year is gratifying, it is well to bear in mind that the cost of getting the coal, notwithstanding the saving effected by the closing of Ralph's. mine, must go on increasing under existing war conditions. All mining requisites and material are not only .difficult to obtain, but are enormously increased in cost. For instance, brattice cloth, haufage and winding ropes, explosives, and steel rails, all of which are absolutely essential to ths working- of the mine, and cannot be produced in the Dominion, are on the British restricted export list. At the present moment great difficulty in being experienced in obtaining even small supplies of permitted explosives, and urgent representations have been made to the Minister for Mines and Munitions on the subject, with a view to obtaining a shipment from Great Britain at the earliest possible tune. i. Again, shareholders must realise that the company has to bear its share of the increased taxation consequent upon the war. Last year, owing to the smallness of the profit, the amount of taxation was comparatively small, being £1403 for land and income tax. .The tax for this year, however, will necessarily be a considerably larger amount. The assessment has not yet been made, but approximately it will absorb between £6000 and £7000, the actual rate being 7s 6d in the £ of every £ of profit made, less an allowance for depreciation, which is fixed by the commissioner of taxes. Under these circumstances, therefore, it will be understood readily that the directors had some hesitancy in recommending a dividend of 7| per cent., but taking: into account the improved position of "the company, and the fact that shareholders have been so long without a dividend, they think that their proposal is justified. "The development work in the Extended mine has proceeded during the* year in a satisfactory manner, and a considerable area of new ground has been opened up. The coal being won is of excellent quality, and the field for future extension is very large. Some indication of the. difficulties and cost of getting the coal ie afforded by the fact that the workings in the mine now extend to such a distance that the time occupied by the men in travelling to and from the face leaves only about six hours of actual work. The general manager is now considering the whole position, with a view to advising the directors' as to what steps can be taken to meet this difficulty. Development of the Rotowaro Mine. " From the Rotowaro mine, the development of which was begun in September. 1916, by the' construction of the branch _ railway required to connect the mine with the Government line, in output is now being obtained, and up to March 31 last the coal raised from it amounted to 4054 tons. The actual output a shift is now over 100 tons, and the ineiense may be anticipated to be fairly rapid from this on. and should shortly reach 200 tons a shift, which will be considerably exceeded as the development proceeds. The seam of ooa.l is a very fine one, ranging up to 34ft in thickness. The coal is an excellent fuel, very light in ash, and generally similarin quality to* the best Taupiri coal. The mine is worked by naked lights, and the workings, except iii the leading places are very dry, the water met with in the leading places being the natural seepage water to be exported when opening a new coal field. The fire-clay underlying the coal seam is a very valuable deposit,_ and should later on be a source of considerable revenue to the company.' The general arrangement of the 'plant is such that the maximum amount of effici- | ency is combined with low working costs. There are still some parte of the plant incomplete and there are also buildings to erect. Owing to the easy, safe, and advantageous conditions of work in this mine there should be no difficulty in obtaining the necessary labour. From a commercial point of view the outlook is promising. Cottages for Mine Workers. _ " As this is entirely new country,'' continued Mr. Alison, " and as there are no houses in the locality, the directors have found it necessary to erect a number of cottages for the workers. These are being built on a suitable area of freehold land acquired some years ago. Ten cottages are now in course of erection, in addition to houses for officials. It will probably he necessary to erect a further number. The estimated cost of opening and equipping the mine was £20,000, and share-

holders will be pleased to learn that the cost of the work, when completed, will be well within the estimate, s ? and that , the amount that will he required to finish the work is e included in the money now" in the bank.

" During the year regulations were ] fazetted for the control of the coal trade. Inder these regulations coal trade committees were appointed in the four centres, and their duty is to regulate the distribution of the output of coal. For the Auckland district which comprises the whole of the Auckland Province, the committee consists of Messrs. E. A. Craig, J. Demps'ey, and myself, as chairman. The setting up of these committees was a wise action on the part of the Government, and the committees, by their judicious working of the regulations, have been able to ensure a fair and even distribution, and that the best use Is made of the various qualities of coal. The regulations are working smoothly and efficiently. Services of the Staff. " "The year has been a strenuous one for the general manager, and the directors again - record their high appreciation of the good services, rendered by the mine managers, officials and clerical -staff at Huntly. The secretary still holds the entire confidence of the directors, who feel it their duty to acknowledge the valuable services and unremitting attention given by him and the staff at Auckland to the business of the company. I feel sure that there is no business of equal magnitude carried on in New Zealand where the head office business is more systematically dealt with and where the office expenses are less. It is a source of gratification to the directors to meet the shareholders under the improved conditions of the company, ana they desire to express their very deep appreciation of the loyalty and patience which the shareholders have displayed during the past trying years during the whole of which there has not been one word of carping criticism from any shareholder. The directors have given the closest attention to the affairs of the company. They have had many and most serious difficulties to overcome, there are many difficulties still to be met, but the shareholders may rely upon the directors using their utmost efforts to conserve the interests of the shareholders to the fullest extent of their powers." Mr. A.-J. Parker seconded the motion, which was carried without discussion. The Hon. J. A. Tole and Mr. A. J. Parker, who were due to retire from the directorate by rotation, were re-elected without opposition. In returning thanks, Mr. Tole said the future of the company was assured. The mine was a great property, and the deposits of coal were boundless.

Mr. R. E. Isaacs, the retiring auditor, was re-elected to that position. A hearty vote of thanks was tendered to the directors for their capable and attentive effort? on behalf of the company under extremely adverse and difficult conditions. The shareholders recorded their appreciation of the business-like manner in -which the affairs of the company had been conducted. A. vote of thanks was accorded to the general manager, Mr. James Bishop, and the Auckland and Htmtly staffs for their services during the year. Special reference was made to the wise and zealous management exercised by Mr. Bishop. It was stated that he had always shown tact and good judgment.