BRUCE WOOLLEN MANUFACTURING COMPANY.

Otago Witness, 5 December 1900, Page 10

BRUCE WOOLLEN MANUFACTURING COMPANY.

The third annual meeting of the Bruce Woollen Manufacturing Company, held at St. George's hall on Wednesday afternoon, was attended by a large number of shareholders. Mr W. Moore (chairman of directors) presided, and at the outset apologised for the unavoidable absence of two of the directors, Messrs J. A. Duthie and Jas. Allen, M.H.R. The report of the directors, which, on the suggestion of the chairman, was taken as read, stated : — Your directors, in submitting their report to shareholders for period ending October 19, 1900, are pleased to state that, as will be seen by the balance sheet, all the shares of the company — viz., 25,000 — are now taken up. Owing to the unsettled state of the wool market, your duectora have thought it advisable to take all wool in stock at values considerably lowei than those ruling last season. Your directors recommend that the balance as shown in the balance sheet — viz., £116 12s 2d — be carried forward. The balance sheet gave the following figures: — Liabilities : Capital paid-up, £21,017 2s ; cash on deposit, etc. . £5149 3s 4-d ; outstanding accounts, including discount on book debts owing to date, £1060 5s 8d ; bills payable, £1192; Bank of New Zealand, £10,158 5s lOd ; profit and loss account, £116 12s 2d;— total, £38,693 9s. Assets: Plant account, £15,087 9s 3d ; premises, ground, and office furniture, £6387 9s 8d ; unexpired value of insurance premiums, £117 5s 9d ; preliminary expenses, £815 lls 4-d ; cash on hand, £2 6s 4d; book debts, £1350 18s 7d; stock manufactured, in process, and raw material, £14,932 8s Id;— total, £38,693 9s. The Chairman, in moving the adoption of the annual report and balance sheet, said he was sure he had their sympathy when he told them he felt as much as any of them did in regard to the fact that during the past 12 months the company had not made more profit. But at the same time he must also inform them that he did not feel at all disappointed or disheartened, for this reason: The past 12 months had been an exceptionally peculiar season for woollen mills. As they were aware, it was necessary, in connection with institutions of this kind, to lay in stocks of wool, in fact, the whole of the stock for the .year, about November and December. Well, in the beginning of the last season wool had reached an almost fabulous price. That would not have been so detrimental to the institution but for the fact that the rise in the cost of the wool did not continue, as in February last it dropped greatly. Therefore, though the company had paid an advanced price for avool, it had not been able to get prices, for the manufactured articles anything like in proportion to the cost of the raw material. He thought if anything was required in confirmation of this explanation he noed only refer the Bruce Woollen Company's shareholders to the remarks by the chairman at the twenty-seventh annual meeting- of the Mosgiel Woollen Company. That gentleman then stated that the past season was, without exception, the most difficult one the Mosgiel Company had passed through, owing to 'the exorbitant price ruling for wool at the beginning of the season and inability to procure equally advanced prices foi the manufactured articles. There was one thing he (Mr Moore) was pleased to make reference to, the fact that the balance of the shares had all been taken up, so that there were 25,000 shares now allotted. Of course there was still a considerable amount of uncalled capita). Their greatest difficulty was really that the capital of the company was too small. When they glanced at the balance shoot they would see that £21 000 had been paid up, and that they had £38,000 worth of assets. They knew that it was absolutely necessary to djut a great amount of interest j.

and when he said that during the past 12 months the company had paid £1100 for interest, they would see that this somewhat handicapped the company. Had the company's capital been sufficient to enable them to carry that £1100 to the profit account, he thought shareholders would be better pleased. However, such was not the case, and they had to do the best they could. Although everything might' not look just as rosy as they could wish, he and his co-directors agreed in having every confidence in the Bruce Co. Though in the past shareholders had not received interest directly for their paid-up capital, he maintained that the majority of the shareholders had indirectly received interest. He would give an illustration in support of that affirmation. During the past 12 months the company had paid wages amounting to nearly £5000. For the two years and a-half during which the com1 pany had been carrying on operations the wages paid came to close upon £12,500. Last year alone the company purchased wool in the district, which wool was subject to neither railage, commission, nor discount, the purchase money amounting to £4651. When he mentioned these figures they would easily see that the operations of the company were unquestionably of benefit directly to many -per&ons in the district ; the money mentioned must circulate some Avay or another amongst the people .here. The woollen" mill was there, and was going to v remain there; and he trusted shareholders would have a little confidence in the directors and bear with them until they succeeded in making the industry " boom," which period, he himself trusted, would be in the near future. He had formerly omitted to mention that during the year the company had sent Home for two experts, and this also was a. drain upon the expenditure ; but a similar item of expenditure was not likely to occur again. He did not know that it was necessary for him to make any further remarks, further than to again move that the annual report and balance sheet be adopted, and to ask that some shareholder should second the motion. The report was adopted. On the motion of Mr J. Parlane, seconded by Mr J. W. Petrie, Messrs J. A. Duthie and A. E. Stewart, tho retiring directors, wore re-elected, and Messrs H. M. Marryatt and James Brown were re-elected auditors. Mr Stewart, in returning thanks for electing him director, said that it was a labour of love, the work was not arduous, although at times exciting in trying to make £1000 da the work of £1500. He considered the company required £10,000 more capital to put it on a. dividend-paying basis?. There was one thing overlooked by the chairman, which he would like to refer to. When the company was formed, the principal item of manufacture was to be fingering yarns. The company, in its first year, not having a manufactured stock of these goods, they lost aya v great deal of business. For this year the directors had manufactured a 'stock they thought necessary to supply all demands. Owing to exceptional circumstances, this demand had not come, and a large portion of these goods remains on hand. Taking into account ..he fact that they were paying interest on the stock, the extra profit, had the sales been what the • directors anticipated, would have been £1000 more.

Mr D. M'Donald proposed a vote of thanks to the directors, which was seconded by Mr William Taylor, and carried unanimously.

The Chairman moved a vote of thanks to the manager and staff, and in doing so stated he had omitted to mention that the stock of wool in hand was not taken at actual cost price, but it its present market value*-

The vote was passed by acclamation

Mr C. Grey, on behalf of himself and staff, acknowledged the compliment of the chairman, and the proceedings terminated.