KAIAPOI WOOLLENS.

New Zealand Herald, Volume LIX, Issue 18175, 22 August 1922, Page 5

KAIAPOI WOOLLENS.

DEPRECIATION IN VALUES.

LOSS TO THE COMPANY.

PAYMENT FROM RESERVES.

|bi telegravh—own correspondex*.] CHBISTCHUrtCH.

The annual report of the Kaiapoi Woollen Company states: *' The trading results for the year, apart from tho question of depreciated values caused by the world-wide slump, have been quite satisfactory. Had there been no losses arising out of the depreciated values of imported goods the gross earnings on the actual cost value* of goods on trading account would have been the second largest in the history of the company, and were considerably more than those for the previous year. The volume of trade was woll maintained, and it is with great regret that the directors have to place before the shareholders a balance-sheet which shows very serious loss, attributable to no other cause than the sudden fall in the price of commodities in every market in the world, and in which this company, in common with all others in the same class of business, has beea involved.

" lour directors feel that attention should be drawn to the high rata of taxation. For rates and taxes alone this year this company had to find £38,912. It is quite evident, unless some immediate relief is given in respect to income tax, that the industrial activities of this country will be seriously crippled, and in the matter of competition with other countries (where the tax against profit on industry is so mucli less than it is in this country) our taxation will go far to nullify the protection afforded to industries through the" customs. " While it may take a year or perhaps two years before trade and finance can bej properly adjusted, there is every justification for shareholders to look forward to the future with confidence. It appears that the Government of New Zealand is now determined not only to give stability to primary production, which is most essential, but also to givo that measure of security to secondary industries, which will encourage development and expansion. " The loss, as shown in the balancesheet, being entirely caused by the sudden fall in the world's markets (a circumstance over which importers in this country had no control), your directors feel justified in recommending a dividend of 8 per cent, per annum to ordinary shareholders and 7 per cent, per annum to preference shareholders, less the amount already paid as interim dividend. Seeing that certain reserves were specially set aside to meet such a situation as has arisen, your directors recommend that these reserves should now be used for the purpose for which they were established. After making the allocation as recommended, there still remains in reserve a slightly largeY sum than was represented in the reserves before tho war."