MOSGIEL WOOLLEN COMPANY

Otago Daily Times, Issue 14683, 17 November 1909, Page 3

MOSGIEL WOOLLEN COMPANY

ANNUAL MEETING.

The. annual meeting of tho Mesgiel Woollen Factory Company was held in the company's office yesterday, and was attended by a fairly large number of shareholders. The acting-chairman of directors (Hon. Tlics.' Fergus), in the absence of Mr John Rolvrts, presided.

11l moving the adoption of the report (already, published) and balance sheet, tho Chairman said:

It is with more satisfaction this year that the directors meet the shareholders than they have had for some time past, became the balance sheet discloses a. distinct improvement on past years, and your directors are sanguine enougli to think that the prospects for the coming year ars better. If shaieholders will turn to tho balance sheet they wil l notice on the liability sida that there have been considerable additions in one 01 two items. In the first place, there is a t>um of £5000 which is added to loans payable.

The bank account has also risen by some £2000. These Increases are caused by addition? to plant, which Mr Roberts, in his speech last year, indicated would be provided for. There is also a slight increase in outstanding accounts of £263.

.On the assets side you will see that plant, buildings,- etc., come to £64,183 5-s ]ocl, as .against £59,373 2s lOd, or an increase of £4810 3s.

During the year we have 6pent on new buildings £1692: on machinery, £2718; on new engine, £3898; or, in all, £8310. Hut of this sum £1000 was written off last year from profit and loss for the new engine, so Miat the net expenditure on the plant for the year has been £7310.

When tho chairman last year told you that it was intended to install a more powerful engine, he stated the estimated cost was £2500, but when it arrived in tho Dominion, and tho alterations to the buildings (including foundations of a much heavier and necessarily more costly description than was. anticipated) had been paid for, it was found that the cost, instead of being £2600, camo to £3898, or a sum of, say, £1300 over the estimate. The work, however, is now finished, and there is no doubt that wo have a most satisfactory machine in every way, and installed in such a manner that it is not -likely to give trouble, and will add to the (satisfactory and economical working of the mill for many years to come. In connection with this I might he allowed to say that our mill manager informs us that from this out (here is likely to bo an appreciable savin? in the consumption .of coal. .It is early yet, however, to state the quantity.

;Let me directyour attention just briefly to the profit iind loss account. You will observe that the working expenses and maintciianee at the mill show a considerable increase over last year, amounting to something like £700. As lias been said on many occasions, this account of necessity fluctuates year by year, and is affected largely by replacements, .v.hich vary considerably ; but the year which has gone has been heavier in thie direction than usual, because, in addition to replacements, your directors have charged to maintenance the new water supply for the mill,, alterations and extensions to th«» electric' lights to suit the requirements of the insurance companies, and also the whole of the sashes of the buildings have been thoroughly renovated and repainted., These have absorbed a very considerable portion of the £700 increase. The next item is amount of depreciation which has been written off. After due /consideration your directors decided to write oil the sum of £2500 on buildings and plant, or over 4 per cent, on the amount which the plant stood in the books at last year. Wc think that the shareholders will approve of this.

On the credit side of profit and loss you will notice I hat. the goods account shows an improvement of £1071.

Your directors are pleased to say that no bad debts have been contracted during the year, and our stocks have practically all been sold.

Since last balance sheet was submitted to yon our. plant has been kept very well employed. Tho hew machinery which we have put in has done all that was expected of it, and the demand for the company's goods turned out by the same has bean satisfactory.

Of course, it is too soon yet for shareholders to expect large results from the extensions and additions which have been made, but these will come ; n good time, and although we are likely to be faced with a rise in the price of wool during the incoming season, still we trust to be able to obtain for tho new class of goods we arc now able to turn out a price which wijl leave a. profitable margin, and there is no reason why we should not only look to the past year's record being maintained, but for an improvement for the year on which we have now entered. The 1 policy of the board has been to keep well abreast of the times, and to turn out nothing but very first-class articles, which would command the best prices and continue the good name of the company.

Just before I sit down I would like to say a word about the staff. Mr Cameron (general manager) and the employees in the warehouse have been instant in and out of season in their endeavours to promote the welfare of the company, and the mill manager (Mr Wood) has ainply justified the confidence which tho directors have reposed in him. Everything has gone on smoothly during the year, and all our employees have shown the utmost interest in the business, and given us their very best services. I now have pleasure in moving the adoption of tho report and balance sheet.

Mr J. L. Passmore said lie had great pleasure in seconding the motion, and in congratulating tlio chairman, tl« other directors, and the management on the successful year that they had just completed. He hoped that they would, as the chairman had said, feel the benefit of the additions and improvements that had- been put into the mill. He could say with regard to the engine that ho had been over the, mill recently, and he considered that the engine was one of tha finest ho had ever inspected in the 'Dominion. It should lead to a great saving in the consumption of coa!. With regard to the extra cost of this machinery, he did not think that people with any experience of factory business would object to the £1400 which had been spent in excess of the estimate. He instanced a case in which an engine, estimated lo cost £1500. had actually cost £2760 before it was satisfactorily installed. Such cases were frequently met with in factory business. In going through the mill he had been greatly struck with the.cleanliness and orderliness that prevailed. Even the shafting—and there were guiles of itwas kept duslproof and polished brightly, and if that were an indication of how the mill was conducted he thought its future was assured. ' ' Mr (.'. Ford asked if the value for the plant and appliances at Mosgiel given in the balance sheet was a fair one. The Chairman replied that the directors niost certainly considered it was so. The motion was put and unnnimonslv carried. Mr Wstscm.Shennnn was re-elected n director of the company, and briefly thanked the .Bhartjioldoiis for trc honour they fad done him. Mr P. G. Pryde maved the re-election of the Miditom (Masses P»ter Ban- and David

Crawford) at the same remuneration as formerly.

The motion was unanimously carried.

On the motion ol Mr Lethbridgc the meeting accorded the directors and the management and HtafV a. very hearty vote of (hunks fur iheir successful work during the past year.

The acting- chairman of directors (the Hon. Thomas Fergus) and Ihe general manager (Mr E. Cameron) acknowledged the compliment, and the meeting terminated.