THE KAURI TIMBER COMPANY.

Otago Witness, 14 December 1893, Page 24

THE KAURI TIMBER COMPANY.

The directors of the Kauri Timber Company in their annual report state that the depressed condition of the timber market, alluded to in the last annual report, has been intensified during the past year, as building operations in all the colonies have been almost suspended. The board have, however, steadily pursued the policy, adverted to in previous years, of realising the stocks of sawn timber and logs which have from the first so heavily weighted the company. In this they have been fairly successful, inasmuch as the company's indebtedness to sundry creditors, to banks, and for deposits, has during the year been reduced by £30,197 12s Bd, while the debenture sinking fund account and fire and marine insurance funds have been strengthened by the addition of £5319 10s 7d during the same period. It will be the object of the directors during the ensuing year to still further reduce the company's stocks and its indebtedness, as there are still large accumulations of logs and sawn timber to be disposed of. The realisation of heavy timber stocks in weak and depressed markets has caused a loss upon the year's transactions of £16,402 16s 4d. The directors have always felt that what has been practically a forced realisation was bound to result in loss, but in the end the company should recoup itself when these old and deteriorated stocks have been exhausted. In connection with the balance at debit of profit and loss account, £16,402 16s 4d, the board would point out that £2i)95 of this amount is composed of claims and charges accruing during previous years, but which have only been written oft in the present accounts as final adjustments have been made. The net los 3 shown on the transactions of the year is therefore about £13,500. In present circumstances the directors have not deemed it necessary to write anything off debenture expenses and preliminary expenses accounts.