MOSGIEL WOOLLEN COMPANY

Otago Daily Times, Issue 25385, 17 November 1943, Page 4

MOSGIEL WOOLLEN COMPANY

STEADY PROGRESS MAINTAINED SEVENTIETH ANNUAL MEETING The seventieth annual meeting of shareholders of the Mosgiel Woollen Factory Company, Ltd., was held yesterday, the chairman of directors, Mr J. S. Hislop. presiding. The annual report stated that the directors recommended the payment of a final dividend of 3 per cent, from trading and 3 per cent, from revenue from investments, making a total distribution of 10 per cent, for the year. Chairman’s Address Tlic chairman, moving the adoption pf the annual report and baiar.ce sheet said that the work at. the mill and warehouse had agan been carried on witnout serious interruption and a gross piofit oi £91,098 had been made, against. £99,52i in 1942 and £93,511 in 1941. Net profits during the same periods were £13,849, £13,311, sno £19,947 respectively. The lower net profit for the last two years was entirely due to the increased taxation. “ great reduction in taxation can be expected in the near luture, he added, •• but I trust that when war cond.tions cease and finances are adjusted we may once more be allowed to retain a reasonable proportion of our company s profits for ourselves.” During the greater part of the past year, the company s trade customers had again had to accept very restricted supplies, but now that work on Government contracts had eased considerably the company was able to fill more civilian orders. . , , The installation of water-softening Plant at the mill had been completed, and the benefits v/ere showing themselves in/ improved material, Mr Hislop continued. For some years the directors and management had watched with interest the work carried on by the New Zealand Woollen Mills Research Association regarding the shrinkage control of woollens, and a modern plant, which it was felt would improve the non-shrinking Qualities of their woollen goods, had been ordered at a cost of about £I2OO. The directors had also decided on the installation of a Gnnnell sprinkler plant at the mill at a cos. of about £BOOO. The company would obtain a rebate of 42J per cent, on its insurance premiums, which would more than pay the interest on the expenditure. Unfortunately, Government taxation made it impossible to pay for the cost of the works out of profits. During, the year a considerable amount had again been invested in New Zealand Government loans, which were now shown in the books at £81.591. Heavy Taxation

The chairman said that £2OOO had been placed to the general reserve, which now stood at £61,588 2s 6d. The dividend equalisation fund remained unaltered at £IO,OOO. Provision for taxation, which was for two years, stood at the record figure of £123,203 18s. This allocation, together with that for wool purchases, required a substantial amount of the company’s funds to be kept in a liquid state. After payment of the usual dividend there remained from the year's working only £4311 with which to consolidate the company’s position for the inevitably expensive change to normal trading when peace was restored. In conclusion, Mr Hislop said he wished to convey to the general manager and his staff the appreciation of the shareholders for their valuable work. . ’ „ , Seconding the motion, Mr A. H. Fisher congratulated the company on celebrating its seventieth anniversary. Steady progress had been made from its inception. For the first 35 years it had paid a steady dividend averaging 7J per cent., and for the past 35 years the dividend had averaged 10 per cent., a record which was equalled by few companies, and reflected great credit on the management and staff. Taxation was a very heavy burden indeed. he added, but they should not forget that the majority of it was for war purposes, and for that reason .they paid cheerfully. The motion was carried unanimously. Retiring Directors Rc-elected

The retiring directors, Messrs J. S. Hislop and J. S. Sinclair, were re-elected unopposed, and Messrs Barr, Burgess and Stewart were reanpointed auditors. Paying a tribute to the chairman. Mr Sinclaii said that Mr Hislop had been, a member of the board of directors for half of the company’s life, a period of 35 years. On the motion of Mr P. O. Smellie, a hearty vote of thanks was passed to the chairman, the directors, and the staff. The general manager, Mr w. L. wood, in returning thanks, referred to the problem of replacing female labour at the mill.