WELLINGTON WOOLLEN COMPANY

New Zealand Mail, 17 September 1902, Page 23

WELLINGTON WOOLLEN COMPANY

ANNUAL MEETING.

Tho nineteenth annual meeting of Wellington Woollen Company was held at the Chamber of Commerce on Friday afternoon. There was a small attendance of shareholders. The Hon C. J. Johnston (chairman of directors) presided. The report of the directors . stated that there had been a substantial- profit on the business for tho year ended July 31st. Tho profit amounted to £10,723 13s on the year’s working, which, with tho amount brought forward—viz., £1553 14s Bd—gave £12,2/7 7s 8d for allocation. An interim dividend for the six months to January 31st last, absorbing £2247 9s Id, had been paid; a sum of £2500 liad been written off for depreciation of plant and buildings, and £2OOO and £IOOO transferred to the reserve fund and employers’ liability reserve respectively. The directors had pleasure in recommending the payment of a further dividend at 4* per cent., making 8 per cent, for the year, and leaving £IO4O 6s lid to be carried forward. The statement of assets and liabilities showed that the freehold land, buildings and plant fit Berime are valued at £29,961; buildings and fittings in Wellington at £7645; and stock on hand and raw 'material. £56,935.

In moving the adoption of the report and balance-sheet, Tiie chairman said:—As stated in the report, we are well pleased to be able onco again to meet you with a satisfactory statement showing substantial profit. You will remember that our last balance-sheet covered a period of ten months only; bearing this fact in mind, it will be noticed that while the present balance (profit and loss account) exhibits a fair increase on the item •' Manufactures Accounts ” —say, £l7l8 —the debit for general expenses is some £167 less. This difference, to our advantage, is due to the absence of unusual items such as exhibitions and the Royal visit. In tho statement of liabilities it will bo found that the several items remain much as before, there being only a difference of £627 6s 7d in the total amounts payable. On the assets side tho total amount is £4781 more than was shown last year. This difference is due entirely to the fact that we are holding more raw material, for although our sales were fully as high as in any previous year, our book debts have been reduced by £1329 and tho “ property ” item is less by £506. The stock has been taken with customary care, proper provision being made for any depreciation. It is satisfactory that we have been a]**? to continue the policy of considerably writing down the value of buildings and machinery, to add £2OOO to the reserve fund, and £IOOO to the employers’ liability reserve. During the year we have had some cause for anxiety in regard to two important matters. Tho one, tho determination of the Petono Borough Council to take, under the provisions of the Public Works Act, water from the Korokoro stream, the other, the application by the employees of ~be Kaiapoi Woollen Company to the Arbitration Court, for increased wages, and in some cases a lessening of the hours of work. As you are no doubt aware, the Petone site was selected for our operations, because of the. stream of water there, and so far as was possible the sole right to the use of the water was secured by our acquiring the land on either side of the stream. But by law, a municipality is entitled to take for the . public use such water as it may require, paying therefor full compensation to the injured party. To arrive at the measure of loss, present and prospective, that the company would suffer from any diminution in the supply would be a most difficult matter, and even a most careful and competent Court might easily underestimate it, so, after grave consideration and several meetings with the Borough Council, an understanding lias been come to by which the town of Petone should obtain a fair supply, and we, by the building of dams and the laying of pipes at the borough expense, will not materially suffer. The agreement is to be embodied in an award of the Compensation Court. Although not directly a party in the Kaiapoi dfswe were naturally much concerned, but I am pleased to say that the award of the Court recently made differs but little from our own scale of and therefore hardly affects us. lhe time has arrived when we must arrange for new engines and boilers, and Io 13 considered that it will be wise for us at the same time to more fully equip the mill for tho great variety of material we require to manufacture, and to install the long-talked-of worsted plant. The book value of the present engine and boilers, thanks to our ability m past years to so largely write down our machinery, is but a bagatelle,which this year we can quite wipe out. The estimated cost of the new machinery, inclusive of the worsted plant and a uew chimney- s tack, is about £12,000' l?. 1 , 8 amount we believe our shareholders wui, w preference to leaning on our bankers, prefer themselves to find, and Knowing the time- to be oppoa*tune, we Propose to issue Che 2354 unallotted snares to the shareholders' in proportion to their present holdings, at a °*, 10s P?r share, calling them P to£3, the paid-up value of the second issue which are quoted to-day at

a premium of 23s 6d. It is intended to call £2 with application, and £1 10s on allotment, hut shareholders will have tho option of paying tho full amout of £3 10s with the application, and in that case dividends will he computed accordingly. In support of the decision to proceed with the erection of a worsted plant I will read you an extract from the report of the sub-committee to whom this matter was referred. Their report conoludes thus:—“After having carefully read and discussed the general manager’s and mill manager’s reports on this subject, together with the various documents appended thereto, the committee is of the opinion that such a plant would be a very desirable adjunct to our present business.” I may add that we find it necessary to use worsted yarn in some of the goods now manufactured, and this we import, from England. My colleagues and I desire to express our appreciation of tho services rendered to the company by Mr Heeles. Mr Ramsden (the mill manager). Mr Donne (the secretary), the several beads of departments, and to the employees generally, with all of whom. lam happy to say, we are on pleasant terms. I beg to move the adoption of the balance-sheet- and report to 31st July last.

Mr R. C. Kirk, in seconding tlie motion, expressed the pleasure he felt at the career of even prosperity the company enjoyed. He congratulated the directors upon their decision to launch out in regard to a worsted plant and sincerely hoped the venture might prove a profitable one. The motion was carried.

The retiring directors, Messrs A. E. Exley and W. A. Fitzlierbert, were the only persons nominated for the vacant positions, and they were declared duly elected. In returning thanks Mr Fitzlierbert referred to the fact that he had been a director of the company continuously for the last nineteen years. If he had been opposed and not re-elected he would have felt as if he had been turned out of his own home. Still, if a hotter man came forward, it would be the duty of the shareholders to elect hnn in the speaker’s place. He had seen a great many ups and downs during liis time as a director, but he thought they had now come to the time when there would he no more downs.

The auditors, Messrs Henry Kember and D. T. Stuart, were re-elected without opposition, at the same fee as before, namelv. fifty guineas each. Mr Stuart returned thanks and congratulated the shareholders on the state of the company’s accounts. A proposal to increase the allowance ot tho directors from £450 to £7OO was lost.

On tho motion of Dr Knight, votes nf thanks were accorded to the manager (Mr M. G. Heeles), the heads of departments, Mr A. E. Donne (secretarv) and the staff. Mr Heeles responded. The chairman was also accorded a vote of thanks.