BRUCE WOOLLEN COMPANY.

Otago Daily Times, Issue 20252, 10 November 1927, Page 16

BRUCE WOOLLEN COMPANY.

ANNUAL MEETING. BRIGHTER TIMES AHEAD. The thirtieth ordinary general meeting of the Bruce Woollen Manufacturing Company was held in the office of the company at Milton yesterday. The chairman of directors (Mr William Moore) presided, and there were also present the other directors—Messrs J. A. Duthie, A. E. Stewart, K. M. Rutherford, and A. Mltcchnic—and about a dozen other shareholders. The Chairman, in moving the adoption of the report and balance sheet, said he very much regretted that, as a result of the year’s work, they were faced with a loss. There were not a few reasons for the result, though it would be difficult to explain them at that time. In the first place, there was a lot of stock that had to be sold at a loss. Then reorganisation took place. Their former general manager had resigned, and a new general manager was appointed in his stead. The company’s selling channels had now been very much improved —formerly that was a weak point—and the directors believed that today their mode of selling was much superior to what it was at one time. The balance sheet showed that the overdraft was larger than it was last year, but that was accounted for by the dividend paid last year, the payment of income tax, and the withdrawal of. deposits. It was the stock that was looked on as the keynote of all balance sheets. This year the stock had slightly increased, and the directors were satisfied that the amount stated was the amount of the actual stock in hand—practically all fresh stock. In support of the belief of the directors that the company had turned the corner, he mentioned that for the last four months its monthly sales had shown an increase on the corresponding four ( months of last year.— (“Hear, hear.”) , , ,• Mr A. E. Stewart seconded the motion. Ho could not say he had much pleasure in doing so, because after 20 years payment of a dividend it was rather a wrench tor shareholders to find they were to go without this year. He was afraid "woula make a difference to many people who had in the past looked on the dividend as a source of income. The chairman had put the position in a nutshell, and what he had said might be amplified to a small extent. The report stated that the past year had been a particularly trying one lor all directors, owing to its being largely a year of reorganisation, coinciding with a period of general business depression. This was accounted for partly by a new general manager taking over ana putting everything on a very conservative basis, with the result that this year they had the most con servative year in the history of the com*pany. Further, it was discovered that their system of costing was at fault. The ratio for overhead might bo all right with an increasing turn-over, but it became faulty with a decreasing turn-over. Turning to the balance sheet, the bank overdraft was £20,500 higher than last year. There was u good critique of the company’s year m the Otago Daily Times of October 1 last, which he wished to commend to his fel-low-shareholders. The writer of that article could not make out where a sura of £IO,OOO had gone. As a matter of fact, it was accounted for in this way: The stock had increased by £2OOO, deposits repaid represented £7IOO, income tax was £2OOO, the loss £ISOO, and the dividend paid last year £7OOO. Deposits were a good thing, provided one was not near the overdraft limit, but if one was near that limit deposits were a source of weakness. No deposits had been withdrawn through nervousness on the part of shareholders. They had been repaid because they formed part and parcel of deceased shareholders’ estates that had to be wound up, and each depositor had been repaid on the money being asked for. The sums he had mentioned also accounted for the increase of the bank overdraft. In the profit and loss account interest and discount were higher by £I7OO. This meant that the interest on bank overdraft had been increased and that, as more customers had paid cash, the discount allowed was higher. As a result, however, of reforms put m hand by the new general manager, the expenses had been reduced by £ISOO, so that one item nearly balanced the other. The main thing, so far as the shareholders were concerned, was that their capital was intact: it was all there. The plant and premises had been maintained up to the highest standard, and there was a much higher value in their land, buildings, and machinery than was shown in the figures of the balance sheet. Further, the reserve of £17,000 was intact, and losses this year had been provided for out of the carry-over of last year. With regard to the future, it was hard to tell what would happen. Although they had turned'the corner, things would have to be run cannily, as was the case with most institutions to-day. With two exceptions, all the woollen mills were hard put to it owing to keen competition. Everything depended on the turnover in the future, and, as the chairman had said, the turnover was increasing monthly. The wholesale houses and their representatives, both the inside salesmen and the outdoor salesmen, were the friends of the company, which was more than they could say in the past. Every warehouse in the Dominion was working with the company, and shareholders and directors alike were to be congratulated on that fact.—(Applause.) *v Mr G. Moir expressed his regret that year after year the hank overdraft was increasing. It mant a considerable sum out of profits for interest. The Chairman said that a considerable part of the money had been spebt on additions to tiro premises over a few years. The report and balance sheet were adopted. The retiring directors, Messrs W. Moore and A. E. Stewart, were re-elected. Th Chairman, in thanking shareholders for this evidence of continued confidence in him, said that at a meeting of directors that morning it had been decided to appoint Mr P. M'Skimming to fill the vacancy on the directorate. He trusted that the directors, with the aid of Mr M'Skimraing’s push and energy, would be' able to show better results at the next annual meeting.— (Applause.) Mr Stewart thanked the meeting for its renewed confidence in him. Messrs James Brown and John J. Lane were reappointed auditors. Mr R. M. Rutherford, on behalf of the directors and the shareholders, moved a hearty vote of thanks to the staff. Last year, he said, was a trying one for all concerned, and but for the loyal co-opera-tion of the staff it would have been even more trying. Those who lived near the mill were accustomed to see lights in the office at all hours, which bore testimony to tin large amount of work on the part of the staff of that department. The mechanical staff had served extremely well throughout the year; it was a staff on which the directors could rely implicitly. Whenever they were asked to work extra hours they did so willingly.— (Applause.) Mr A. M'Kechnie seconded the motion, which was carried unanimously. Mr E. Moore, general manager, in replying on behalf of the staff, said he hoped that the night oil burnt by the office staff had been burnt to some purpose. Every member of the staff, particularly the permanent staff in the office, the mill manager, and the heads of departments. had been only too willing to work when called on for extra duty. So fur in the current year the results were more satisfactory than he had expected—so, much so that he trusted that at the end of the year he would bo able to show that the mill had not lost much ground, if any. Business houses throughout the Dominion now welcomed the company’s representatives, which augured well for the success of the mill. The directors, he added, had had a trying year; they had held more meetings than in former years, and to assist the company further they had agreed to accept no foes for their services. It was only right he should mention the fact to shareholders: it was an evidence that the directors had the interests of the mill at heart, and the welfare of the mill meant the welfare of the town. — (Applause.) Mr Thomas Scott said the directors were giving their time to the affairs of the company and ought to he recompensed. (Applause.) He expressed approval of the appointment of Air M’Skimming to the board. On the motion of Mr. Scott, the directors were heartily thanked for their services. |