DOMINION RUBBER COMPANY

Otago Daily Times, Issue 16667, 12 April 1916, Page 3

DOMINION RUBBER COMPANY

j ANNUAL MEETING. SUCCESSFUL YEAR/S OPERATIONS. Tho eighth annual meeting of tho Dominion Rubber Company was held in the board room of tho New Zealand Express Company's building last evening, Mr \V. L. Simpson (chairman of directors) presiding over a good attendance of shareholders. In tho course of their annual report, tho directors stated that the profit for tho year amounted to £6165 fls lOd; to which must be added tho amount from last year, less the (£1250) paid in April, 1915, £1867 lis Bd; —total, £8033 Is fid. The 'interim dividend of 2$ per cent., paid in October, 1915, absorbed £1250. The directors now recommended the payment of a further amount equal to 7| per cent., or 10 per cent, for the year, £3750; the transfer to a reserve fund of. £2000; and that there be carried forward 'the sum of £1033 Is 6d. It was also proposed to transfer tho amounts standing at the credit of sharo premium account, £305, and of forfeited sharo account, £8 15s, to tho reserve account. It was deemed advisable to commence tho _ establishment of a reserve account in view of the intention to extend the planted area and of the probable necessity of providing further buildings and plant, involving an outlay in excess of tho capital unexpended. Tho recent rise in the market price of rubber came rather late to affect the accounts to any extent, but since they were closed the increased price had been fairly well maintained l , so that the company was now benefiting. The rubber on hand at November 30 had been sold at an advance of £2033 4s 6d on tho valuation. The total rubber harvested during the year under review amounted to 122.9031b, exceeding the estimate by 29031b, and tho manager estimated that fully 200,0001b might be looked for within the current 12 months. Tho question of plant disease was no longer a difficulty on the estate, and the little that was in evidence was easily kept in check. Additional labour had recently been secured, and. with an increased output and fair prices, the prospects for tho current year were distinctly promising. According to a recent computation the actual area planted was 700 acres, all of which was reported to be in iirst-clnss order. Tapping was at present- date proceeding on suitable trees planted over 470 acres. Tho adoption of tho report and balance sheet was moved by tho Chairman in a speech covering t!he operations of tho past year, and touching upon financial matters. Mr Simpson stated that, considering the very strenuous year that the management at Kelantan had passed through in the. conduct of tho work on the company's plantation caused by the war, and the espionage system exercised in the carrying on of it by Britain's arch enemy, unsettling, as it did, the labour population of ijiixed races on which tho management had to depend, to the point of open mutiny against tho small white population—and it was 110 exaggeration to say that such open mutiny .was only prevented by the Allied warships patrolling the coasts—the shareholders were to be congratulated that tho directors had been able to place before them such a satisfactory balance sheet. Tiheir ability to do so was due to tho firm and diplomatic way in which the management at Kelantan had 'landled their labour force during the cms referred to. During thj last three years the expenditure charged to development account had steadily decreased, and as a consequenco the profit and loss account had had to bear an increasing proportion of the general charges. In tJhe not far distant future, when all tho land within tho company's leasehold which it was considered it

would pay to break in and plant had been broken up and planted, the necessity for a development account -would naturally cease. The area of payable available, land for planting was estimated at from 200 to 260 or 300 acres at the outside. Of this area the directors had just issued instructions to the management at Kelantan to at once prepare 100 acres, so that they might be planted i;: October next. To break up and plant this area and bring it to the tapping stage would cost £25 an acre —£2500 in all. As to other expenditure which might bo required within 'tho next two or three years on the plantation, the management had advised the directors that tho following additional expenditure would have to be kept in view, as expenditure which would become necessary—viz.: (1) A new factory for the treatment of our steadily-increasing output, £1000; (2) a new hospital, £200; (3) an additional new bungalow for tihe greater accommodation of the management, £350; (4) the enlargement of the present pips line for the water supply, £330; (5) for the com-, pletion of and bringing to tapping No. 7 area an expenditure was estimated to bo required of £732;. —total, £2612. Estimated cost of area of 100 acres now being broken in for planting to bring it to tapping stage, was £2500, making a grand total of £5112. To meet this expenditure there was unexpended capital amounting to £2045, and to this might f_airly be added tho cost of producing- the rubber on hand at November 20 last, which was charged to profit and loss, amounting to £1366; making a total which might- be 'treated as unexpended capital of £3411, and available for the probable expenditure in view. For the balance they would have to rely on tho reserve fund, which had been recommended to be established, and started with the sum of £2313 15s at credit. As had already been stated in the directors' report, the area planted was at November 30, 1915, 700 acres, and, according to tho manager, 64,546 of the trees on that area were under the knife at that date, and had yielded 122,9081b of rubber during tho year. The gross sale price tho manager stated was 2s sgd, and tho all-in cost, including Dunedin expenses, also depreciation, but not including New Zealand Government incomo tax, worked out at Is l|d, but, adding tho income tax, £1147 7s 7d, it worked out at Is and the net profit was brought out at £8033 7s 6d, which had enabled ip per cent, on the capital of £50,000 to be paid, £2000 to bo carried to a reserve account, and £1033 Is 6d to be carried forward. For the current year the manager estimated an output of 200,0001b of rubber, and the all-in cost at Is. If those estimates were realised, and tho price of rubber was maintained anywhere in tho neighbourhood of 3s for all grades, the prospects of the company for the current year were at any rate encouraging, notwithstanding the fact that the company's outlay to date had been £66 lis per acre. Of course, tho manager's estimates foi tho current year were based on labour being plentiful and. amenable to discipline, and the country otherwise not in a disturbed stato by the war. —(Applause.) In order to acquaint shareholders with the position of affairs at tho company's property at Kelantan. Mr W. B. Bell (manager) gave some details that were listened to with great interest. Mr M. S. Holmes seconded the motion for the adoption of the report, and in doing so said ho thought the shareholders could congratulate the management 011 the success ot the past year's work.—("Hear, hoar."). The company seemed to have turned tho comer, and would for the future bo a profit-earning concern, and if all went well that profit 6hould materially increase year by.year. Mr Bell had given an admirable explanation of what was being done on the property, and they wero all greatly indebted to him for what he had said. Ho hoped the Messrs Bell would long bo able to look after the company's interests at Kelantan. —(Applause.) While ' on a visit to London some timo ago he had met a number of men interested in rubber at tho Rubber Exhibition, and had learned from these thai their plantation was refarded as one of tho show placcs of its istrict. The motion was carried without discussion. On tho motion of Mr J. C. Stephens, a very hearty vote of congratulation was accorded to Messrs Bell for the highly satisfactory manner in which they had carried out their duties during a most difficult year, this being .carried by acclamation. It was rcsolved._ 014 tho motion of Mr R. Hay, that retiring directors—Meesrs W. L. Sirawjn and T. Glendining—be reelected, and that tho directors' fees bo increased to 25 guineas each per annum. Mr D. Crawford was reappointed auditor at an increased remuneration of 20 guineas p?r annum. _ , Mr Holmes moved, and it -was carried, that tho directors be recommended to take into consideration tho granting of a special bonus to the Messrs Bell, in view of tho very arduous year through which they had sf.eocssfuliy brought the estate. Votes of t.hahiks to the chairman, the directors, and tho officers of tho company closcd the meeting.