WILTON COLLIERIES

New Zealand Herald, Volume LXXI, Issue 21905, 14 September 1934, Page 7

WILTON COLLIERIES

SHARE CAPITAL LOST NEW COMPANY FORMING ASSETS SOLD TO SYNDICATE The reconstruction of Wilton Collieries, Limited, as a new public company is now in progress. Shareholders in the old company have lost the whole of their capital, shown in last year's balance-sheet at £93,326. The assets of the company passed recently into the hands of the deben-ture-holders. They have since been purchased by a syndicate, including previous large shareholders. It is stated that the business will be continued under the same namo.

Wilton Collieries, Limited, commenced operations in the Waikato coal trade in 1929, a loss of £1832 being shown for the year ended June 30, 1930. In the following two years, further losses of £ll9O and £6589 respectively were incurred. A profit of £3168 was shown for the year ended June 30, 1933, the debit balance in the profit and loss appropriation account being reduced to £6443. The last accounts show paid capital at £93,326, and debentures, £17,450. Liability to bank was £13,663, and deposits and sundry creditors, £20,198. In the assets, mining property was valued at £21,207, and other fixed and floating assets at £107,302. Preliminary expenses, £9686, and accumulated losses, £6443, were also shown.

WAIKATO COAL TRADE UNFAVOURABLE CONDITIONS PAST YEAR'S RESULTS Unfavourable conditions still obtain in the Waikato coal trade, judging by the past year's results of the five companies engaged. Three companies showed substantial losses, one a small profit without providing for depreciation, and the fifth passed into the hands of the debenture-holders. The net loss of Taupiri Coal Mines. Limited, which balances on March 31, was £12,248. Glen Afton Collieries, j Limited, recently announced a net loss of £10,859, and Pukemiro Collieries, Limited, shows a loss of £5025 for the year ended August 31. A profit of £662, with the reservation mentioned, was shown by Renown Collieries, Limited, for the year ended July 31. This company has now proposed the writine-off of £48,000 ordinary share capital and extinguishing preference share dividend arrears. The share capital of Wilton Collieries, Limited, has been lost and a modified reconstruction is in progress. Improvement is reflected in the trading accounts of some of the companies, increased sales having been made. The combined yearly output of the Waikato trade is placed at about 600,000 tons and it is stated that durine the first six months of 1934 the output increased by 100,000 tons, compared with the same period of 1933. This is due partly to the increased use of Waikato coal by the Railway Department. The adverse showing by the companies is attributed to the low prices rulina and it is claimed that even the reoent increase will not place the companies on a | reasonable profit-earning basis. The establishment of a single mar- ! keting organisation has been sug- | gested and it is understood that the j way is still open for this. It is believed | that the basis of allocations has preI vented progress up to the present.

SINGLE SALES COMPANY "BELATED RECOGNITION" REPLY TO MR. GOODFELLOW The contention that the only solution to price-cutting in the coal industry was the establishment of one sales company, made by Mr. W. Goodfellow, in reviewing the accounts of Glen Afton Collieries, Limited, was referred to yesterday by a representative of Wilton Collieries, Limited. The following statement was issued:—"Mr. Goodfellow's remarks seem to be a belated admission of facts which have been recognised by lessor interests for over two years. Tho three principal coal companies, Gleo Afton, Taupiri and Pukemiro, aro responsible for the present position. In 1932, Wilton Collieries formulated a scheme for a marketing company to control the sale of the whole output of the Waikato collieries. The actions of the principal companies frustrated tho attempts thus made to control the industry. "The position became more acute in 1933, and culminated in fierce competition between the companies for the railway contract, for which tenders were called in September. Renown and Wilton Collieries' tender for railways requirements for three years was 14s 3d a ton, but it is understood tho principal companies were associated in a tender for requirements for one year at' 12s 3d a ton. This low price could be considered only as designed to force the weaker companies out of business However, the Railway Board took a long view of the matter, and on its own account refused to accept any of the tenders, but offered to the companies in varying proportions tho business of tho railways for three years at 14s 3d a ton. In other words, tho Railway Board considered that, as tho coalmine owners themselves could no< agree upon a reasonable division, it would take the responsibility. "The action of the board in forcing the position with the companies gave the most reasonable opportunity to tho companies to settle their differences, but again the action of qne at least of the principal collieries nullified tho attempts made. It is paradoxical thar Mr. Goodfellow should suggest h remedy at this stage, when untold damage has been done*to the trade by the attitude of the substantial interests, of which his company is one."