MOSGIEL WOOLLEN FACTOKY COMPANY.

Otago Daily Times, Issue 11277, 22 November 1898, Page 7

MOSGIEL WOOLLEN FACTOKY COMPANY.

The twenty-fifth annual meeting of the .-shareholders .of 'the Mosgiel Woollen Factory Company (Limited) was held in the company's ufiices. High street, on the 15th instant. Mr John Roberts, the chairman of directors, presided,' arid about 30 shareholders, including two ladies, were present. .

The annual report, which was taken as read, was as follows:--

The directors have pleasure in submitting the twenty-fifth annual report and balance sheet. The profit and loss account shows a balance of £6238 14s 3d, from which the 4 per cent, interim dividend paid in May has to he deducted, leaving the sum of £3298 14s 3d now to be dealt with. From this sum the directors Recommend the payment, of a further dividend of 3 percent., making 7 per cent, for the year, amounting to £5145, and. carrying forward tlie balance :pf.£lo93'Us 3d to the new profit and loss 'account. The retiring directors are X>r Hislop and Hoh; "W. Downie Stewart, both of whom a're eligible and offer themselves for reelection. The auditors, Messrs W. Hislop and A. 'Bartleman,' also retire, but are eligible for re-election. -

: The Chairman (Mr J. Roberts) said: I am pleased on this occasion to notice thepresence of somo of the fair sex, and it is with great pleasure I address you as ladies and gentlemen., Wo have until the present never had any of our lady friends at our annual meetings,: but. t hope from this time forward we may see more of them. Before making any remarks on- the special business of. the day, you will perhaps allow me to express my own satisfaction and pleasure at being present today.—(Applause.) You know that for the last three years you have not seen me here, and that-that has beenowing entirely to ill-health. I am pleased to be able to preside on this occasion,'and, I may say, in'the enjoyment of a very fair amount of strength,.although I suppose it is probable I shall never.be as strong as I used to be.' I may also refer to the absence from our meeting'of one who has been a regular, attender. ,1 refer to the Venerable Archdeacon Fenton, who was a really staunch supporter of the company, and who scarcely ever allowed a meeting to pass without being present. However, he has gone; he has joined the great majority, and "we regret his loss. , I will now draw attention to the balance sheet, which has been in your hands .'for some days. You will find, by comparing the items for this year with those of last year, that there is very, little for-me to 'remark upon. There are only two items I can . select', which require .any- explanation. Under the heading of " Loans Payable " you will'find the amount decreased by the sum of £2700.; That is owing to tjie company having during'the-year paid, off a loan, of ;£3OOO, -which they had,on part of the property at Mosgiel/'and off that amount has to come the sum of £300, accepted during the year on; deposit.' 'As I have said, \ the accounts for last year arid this are so near each other that it, would be only wasting your time to pick out, the accounts and to make remarks upon the accounts for this year as compared with those of last year. .I-may, however, just remark, with reference, to bad debts, that you will, I am sure, all be pleased .to notice that they only figure at the small sum of £4 6s 3d. Thai, is,-a very small percentage indeed considering the Very large turn-over the company has, and perhaps it is a justification of the policy the company.has all along pursued. In the conduct of its business, as you know, . the company has all along steadily stuck to dealing with tho wholesale people, and leaving the! retailers to be supplied in the proper eourse-7-through the wholesale^ I think our experience •' in the . past has given us ample justification for having pursued that policy. As you know, there are many mills in different parts of the colony which have been unable to-deal with the " wholesale," : and that has ■ resulted'in the establishment by them of large: •factories for making up their goods into slops. Persbnally-r-and I think I only represent the feeling of the board—l may say, as I'have said before, that we will no! begin to make up our "stuff into slops until we are compelled to do so. Soi long as we can earn for the shareholders a fair dividend—many people consider 8 per cent, an unfair dividend, so perhaps they will be a. little better pleased with this 'year's ;7,.per cent.—l doi not think "we ought to go out, of what we believe to be the .proper and ,fair channel-, for manufacturers, and wo propose in.the future, as in the past, to seek the wholesale people for our customers. During the past .year the company's employees have not been too >well 'employed, . We have managed to' 'keep' the Mosgiel mill going, 'fairly^ well; but th'erAshburton mill.has been distinctly shbrt:Tof work.. The turn-out there, has only been about half what it ought to have been. While regretting, for the sake, of the shareholders, that such a thing should happen, I also deplore that we have not been able to give our employees during the past ■ year tho full employment which they might reasonably expect and hope for. However; we hope for better times, and that during the year we have entered upon we may be able to keep all our hands better and' more fully, empldyed than they have baeh during the past year. I may also mention .that the directors, after full consideration,'have decided that as work is not plentiful,.and as we find.that,the working power, of the, new fast looms at Mosgiel is greater thaii.was'anticipated, we must*discontinue working the: looms at Kaikorai, and concentrate all the weaving power at Mosgiel. Thatineanß dispensing with a'good few hands ;at Kaikorai, but they .are mostly/young people, and I daresay will find other employment quite, as suitable for.them. This change will have the effect of keeping, the .looms at Mosgiel in full'swing, and'the people there will be well ablb: to overtake)the' work that is thrown upon them. ; You will notice the directors' recommend the payment of only a 3 per cent, dividend for the1 past half-year. I do not think I need draw your .'attention to the profit and loss account for a justification of, this",:1, as" it must be apparent to you alLthat'it would be unwise for vis to pay more 'for" the past half-year. ;.With these few remarks, ladies and.gentlemen, I beg to move the adoption of the report, which will carry with it the payment of 3 per cent, dividend for the past half-year. '> ' >: Mr R.: Watson, said his duty was a very simple one. He had much pleasure in seconding; the adoption of the report and balance sheet.. ...■ \ " 1 '" .-'...'.

Dr Hocken would like to kno^v how it was the dividend had fallen from 8 per: cent. He was sure it was a disappointment to many that the premier woollen works of the colony sltould "not continue to pay 8 ' per '.cent. He was. '-' 0f.," ; opinion that while it was, well that a firstclass article should be produced, and ■ the character of the mills maintained,, still if there was a demand for an inferior article it might be prudent to produce a lower class of goods. ; Tha Chairman replied that he was afraid the company had already had to eater to the lower trade referred to by Dr Hoeken. The company had for many years endeavoured to maintain a uniform standard of excellence, and now, while continuing the manufacture of such.goods, they were compelled to make an. inferior quality as well. . . : . Mr;H. F. Hardy said the company's goods were still all-wool and no shoddy. , The Chairman remarked that that, .. of course, would be understood. The goods were all:wool, but less expensive dyes were usediand a cheaper way of making up,some goods was adopted, but shoddy was not in any way used. ' ' The adoption; of the' report was carried unanimously* ■ ' ' ' : • ■ ■ -■■.•'■ • ELECTIONS. ' The retiring directons, Dr Hislop and the Hon. \V. Downie Stewart, were nominated and -unanimously re-elected. : j Oil the motion of Mr P. G. Pryde, seconded by Mr A. Melville; Messrs W. Hislop and A. Bartleman were unanimously reappointed the, auditors for the company. j . ,: • .COMPHMENTABY. . :Mr John Mitchell said as one who had been a shareholder in the company from its ineop.^ tion,-lie had-very much pleasure in congratulating their chairman upon his return to the j colony, and his restoration to health.: He thought the shareholders should join in expressing ,-that.' sentiment.—(Applause,)" Tliis' was ; the first, time he had had the pleasure of seeing their chairman since his.return, and ' though,': ho was; not one who went out of his way: to meet people, or who rushed to people . to tell- them how delighted he was to see them, j he felt he was expressing ,the genuine desire of those present when he wished Mr Roberts long life and good health.—(Applause.) As to the dividend, he would simply remark that seven per cent, now was equal to 10 per cent, in the olden days, and that in his opinion tlie j company had not done amiss, He congratulated the directors on the way tho business of the company had been conducted, and proposed a vote of thanks to them. ■Mr A. Melville seconded the motion and. expressed a desire that the expression of sympathy from the shareholders to the chairman' should appear on the minutes of the company. Mr "A. J. Burns said he had had the honour in the absence of the chairman of trying,to do his best to fill his place. He was now exceedingly glad: to be relieved of that great ■ responsibility,' and .expressed the hope that tha chairman had not only a renewal but would enjoy a continuance of good health. The motion was put to the meeting by the Hon. W. Downie Stewart and was carried .unanimously.; .' ~.,,,., The Chairman said he thanked them very heartily for tha kind expression which had been given utterance to by.the speakers, and endorsed by the meeting. He had been a director from the inception of the company, and so had been a long time in-harness. He: know

that people were, apt to get into grooves, and perhaps it might be well that some younger blood should bo introduced, but he thought they had done fairly well, and though he should be glad to see the company in a position to earn better dividends, he would ask the shareholders to consider whether it would be altogether in their own interests to expect a larger .dividend than 8 per cent. He believed' what had been done in this inatr ter had been for the best, and might mention that from the inception of tho company they had written off and paid in dividends a sum amounting to £175,000, equal to a dividend of a-little more than 8 per cent, over the whole 25 years the company had been in existence, though at one time they had passed a year without any dividend, and twice had paid a dividend of 5 per cent, per annum. The record of, the company was, he thought, on the whole fair and satisfactory. . He was also pleased to know that some of the employees had been in the service of tho com iiany from its inception, and that many of them had been in the service for 20 years, or for long periods of time, and it was very gratifying for him lo know that satisfaction reigned amongst them. Mr Morrison had 'suggested to him that his remark about theKaikorai mills might be misunderstood. It must not be supposed that those mills had been closed; the yarn-making was keptiup I here, but the weaving had all been transferred to Mosgiel. He thanked, the share.holders foi their expression of . confidence in the directors, and moved a vote of thanks to the employees of the company. The name of Mr J. Morrison (the general manager of the company) was associated with' the motion, which was then carried unaniMr Morrison, in replying on behalf of the employees, snid that, as the chairman had remarked, many of the employees .had beori long associated with the company, and somo of them from the date of its inception. The employment of the company was looked upon in Mosgicl with very great favour, and the. employees were jealous of the good name of the company. It was true that lower priced goods had been made, but still good quality was maintained, and nothing but good articles was turned out of the mills, either at Ashburton or Mosgiel. The name of the company was still and would continue to bo a guarantee of tho quality of the goods, and the, workers, on whose behalf he desired to' return thanks,- fully appreciated the position. This conoluded the business. PKOVIDENT AKD INDUSTRIAL " INSURANCE COMPANY OF NflW ZEALAND. • —: -». The annual meeting of this company was held in the registered office, Dunedin, on the 31st ult.,- Mr K B. Cargill (Chairman of directors) presiding. . The annual report contained the following clauses: —, . - ,; The premiums received during the year amount to £8398 16s 3d, being an increase of 29i per cent, on the-premium income for the previous. 12 months. The actual increase, is three times the increase for tho previous year, and has been obtained at one-third less.than that year's- percentage of cost. This increase has cost the company loss than that of any other Australian .company's increase or indue-.' trial premiums, and at less than the average English, industrial business. The net premium, income is now 66J per cent. niorß than it was three years ago^ The claims aggregate £2530 0s 7d, and include weekly allowances and medical charges under sickness policies. All claims were paid immediately on production of satisfactory proof of deßth and^. without any legal formalities. The Chairman, in moving tho adoption of tho report and balance sheet, said that ho had to congratulate the shareholders on the exceptionally large increase of 29j per cent, in the premium income during tho year, being equal to three times the increaso of the previous 12 months. He explained that the net premium income was now 66 per cent, more than it was throe years ago, and showed, by' comparing the published balance sheets, of other'companies, that the cost of this substantial increase was less than the percentage of cost of any Australasian company's .industrial increase, and less than the average costof industrial business in England. lie also stated the cost of collecting premiums and management expenses already .bore favourable comparison with older and larger'companies. The .new policies issued during the year numbered 9173, and represented an assuranco of £246,147. The olaims paid during the year amounted to about 30£ per cent, of the premium income, and tho several amounts were, as usual, in every instance paid immediately, on production of satisfactory, proof and without any legal formalities. The company paid on an'average from three to'four, claims each week, and the' numerous testimonials received prove tho fact that the company's promptitude and liberality were duly, appreciated. During tho last three years they have spent £7862 on the introduction of new 'business alone, but as the result'had-been a greater comparative increase' in the'net premium income . than. their competitors in the same field, arid at a less percentage of cost, they had reason to be satisfied with the; results obtained. The following was an extract. from,their consulting actuary's opinion, on the subject of the'new business:—" The cost of obtaining business here '(Great Britain) is about three yeare' premiums, • but it will probably cost your company somewhat' moro on account of the smaller 'centres over which your business is spread, and the diffi-' cult you will experience in obtaining suitable agents. It will therefore be three years at least before any profit on a case should be expected. You have done better than this, and better than could be looked for here (Great Britain) under the circumstances;" With a premium income of over £8000 they could now '.afford to proceed quietly without .the special expenditure of the last three years, when they were building up a business rapidly, and establishing agencies in centres throughout the colonies, which would give their policyholders the advantage of being able to be transferred to other towns or colonies without loss of benefit, and where premiums could be collected as usual. The report and balance sheet were'adopted unanimously. Dr Roberts was re-elected a director, and Messrs Baker Bros, as auditors. A jvote of thanks to the directors and staff closetl the proceedings.