WESTPORT COAL COMPANY.

Otago Witness, Issue 2086, 15 February 1894, Page 28

WESTPORT COAL COMPANY.

ANNUAL MEETING. The annual meeting of the Westport Coal Company was held at the company's offices yesterday afternoon. The Hon. H. J. Miller, M.L.O. (chairman of directors), presided, and there were about 30 shareholders present, including the following directors : — The Hons. W. H. Reynolds and R. Oliver, M L.C's., 'Messra P. C. Neill, K. Ramsay, B. B. Cargill,and A. Bartleman. ANNUAL REPORT. The Chairman, in moving the adoption of the annual report (which has been already published) and balance sheet, said : Gentlemen, before I move tbo adoption of the report I propose, as usual, to explain briefly the items in thn balance sheet. Taking the liabilities first, you will see that we have retired £8000 of debentures during the year. " Liabilities on loans and current accounts " (£27,473 8s lid) ia a little increased from last year, but this amount will probably be "reduced again during the present year. Turning to the assets, we

have, under works, leases, and plant, £277,414 6s 4d — an increase of about £11,000 for the year. "Sundry debtors" (£19,280 9s Id) consists principally of amounts owing for coal sold. These have since been paid. In the profit an& loss account you will see that the profit for the year was £22,477 18s 7d. Adding the amount brought forward from last year, £6349 3s lid, and deducting the interim dividend paid in August last, there remains an amount to be dealt with at this meeting of £21,032 9s, which the directors recommend should be disposed of in the following way: — To pay a dividend of 3£ per cent, for the past half-year ; to give a bonus of Is per share, making a distribution of 9 1-6 per cent, for the year ; to appropriate £3000 for the Granity Creek works ; and to carry forward to next year's account £6773 19s 6d. The output of coal for the year was 223,500 tons, being 25,000 tons more than that of the previous yeau, but the profit realised does not show a proportionate increase. This was partly owing to our having to work the mine by a double shift, which is not so economical a method of working as single shift, and partly to the bad year which we had at the Greymouth mines. Still, on the whole, the directors consider the result of the year's work has been fairly satisfactory. It must, however, be remembered that fresh coal mines on the West Coast have been opened up, from which wo may expect competition, and that Newcastle coal has been reduced to uuprecedontedly low prices, so that this year may not &how as good a result as the past year. Our works have become of colonial importance, aud perhaps some figures in connection with them may boof interest to you. We paid the Government during the year for royalty £5600, for railway haulage £25,400, and in wages £70,000. You will doubtless have seen from the newspapers that the Greymouth miucs, in which this company hold a half interest, are in a very bad way. The workings are hemmed in by faults on all sides, and a large sum of mo^py would be required to prove and opeu up the coal beyond them. Our experience- of iLis property has been so unfortunate that the directors do not see their way to spend any more money on it. The supply of coal opened uo will be practically exhausted by the end of the present year, and we must consider our capital invested in this property as virtually lost, with the exception of what we can realise for the plant. The development of the Westport mines has, on the other hand, fully realised our expectations, and will, I think, make up for the loss at Greymouth. Our Gram'ty Creek mine is, I am pleased to say, opeuing up exceedingly well, and the quality of the coal will be fully equal, if not superior, to the Coalbrookdale coal. The c >al at the lower level is now sufficiently explored to justify the directors in deciding to abandon, for the present, the construction of the upper incline. This will effect a great saving, and will enable us to finish the work without further borrowing. The incline will be complected in about three months, and we have then about three-quarters of a mile of locomotive line to moke to connect it with the mine mouth. The plant and machinery are in course of construction, and I hope we shall be .in full working order before our next annual meeting. An absurd rumour has got into the newspapers that we had made an offer for the Black Ball coal mine. Our manager has already pnblicly contradicted this rumour. I wish to confirm the contradiction, and to add that we have no intention whatever of buying any more property. The Hon. Mr Oliver explained last year that the alteration in the articles of association giving power to purchase or to sell property was made solely for the purpose of carrying out our agreement with the Grey Valley Coal Company, by which our Greymouth property became half of the Grey Valley Coal Company. The acquisition of any more coal mines was never dreamt of. The company have quite enough to do in developing their present property. I beg to move the adoption of the report.

Mr E. E. C. Quick : I beg to second the adoption of the report. After what has fallen from the chairman with reference to it it is not necessary to say much, but I think it is cause for congratulation that our property is able in these rather ticklish times to pay the dividend which is proposed, besides doing so much for the general welfare of New Zealand. I think it must be admitted it is doing so when, according to the chairman's figures £31,000 has been paid to the Government — no mean contribution from one company — and £70,000 has been expended on labour. That is a very handsome contribution to the welfare of New Zealand at a time when it was somewhat in need of it. Ido not think that the other figures require comment, except that, considering the times we have passed through, it is satisfactory that there ia one company that can pay as well as this one is doing, and that it is reasonable to expect that in the near future it will pay still better. With these few remarks I beg to second the adoption of the report. The motion was then put and carried unanimously. The Hon. H. J. Miller and W. H. Reynolds were re-elented directors and Messrs W. Hislop aud G. S. Brodrick auditors. A vote of thanks was passed to the directors and officers of the company, and the question of coal for gas-making purposes was brought up. Mr FibH said the corporation were about to test 100 tons of Mohikinui coal, and he thought that they might perhaps test 100 tons of the Westport coal. — (Hear, hear.) They would be very glad to do fo.