MOSGIEL WOOLLEN COMPANY.

Otago Witness, Issue 2541, 26 November 1902, Page 53

MOSGIEL WOOLLEN COMPANY.

The twenty-ninth annual meeting of the Mosgiel Woollen Factory Company was held in the company's warehouse, High street, on Monday afternoon. The chairman of directors (Mr John Roberts, C.M.G.) presided, and there were about 25 other shareholders present. "

REPORT. The roport (previously published) and balance sheet were taken as read. The Chairman, in moving the adoption of the report and balance sheet, said : The satisfactory year which the company has experienced makes the task of explaining the year's operations and moving the adoption of the roport a somewhat easy one. There are, however, a few matters which require some explanation, and I will endeavour to place belore ytfu figures which will, I hope, prove of interest to you. On the liabilities side of the balance sheet it will be noticed that owing to the is«ue of a few of the new shares the capital of the company has increased £595. The indebtedness of the company under the heads of Bank of New Zealand, bills payable, and outstanding accounts fhows the very satisfactory reduction of £16,993, and now .staauls at £4469, as against £21,462 la.st year. On tlie assets eide the following may be noticed: — The plant, etc., at Mosgiel lias been increased by the sum of £6798, made up of £2824 expended on new buildings and £3974 cm new plant. These outlays have been incurrpd owing to the introduction of combing machinery and considerable additions to the hoisery plant, and it is confidently anticipated that the investment in these will prove of undoubted valuo by enabling the company to produce articlp<; for which there is coneiderable demand. It will lie noticed that the Asiiburton mill has disappeared from the assets, the directors having deemed it wise to accept an offer of £8000 which was made for it. The woiking of thife properly lately did not prove fco profitable as it was hoped it would, and I trust the .shareholders will approvp the action of the directors in getting quit of it. I trust now that the operations of the company are all c-caifiiiec! to the Mosgiel mill, under one roo* and one management, that it will be found that concentration is a wise thing, and in the best interests of the company. It will be noticed that £5000 of the £8000 for which the directors sold the Ashhuiton mill remainis 'till unpaid, but this is secured by mortgage o\er the mill and plant, and I have me doubt the debt will bo liquidated in accordance with the teims granted tc the pur-oha.'-eiv. The final adjustment of the Ashburtoai null accounts results in a loss of £3371, and I am pleased that the profit of the year will admit of this being provided for, "and le.no -ußicic.nt for the payment of a fair ilmdend Book debts are £2749 less than la^t year and goods manufactured and in process of manufacture and raw material bhow the very largo ioduotion of £12,163, and now stand at £42,721, a figure much lower than for many years past. Turning to the profit and los.< account, it will be found that charges and salaries s-how a decrease of £698, caused by sundry small economies and aisc on account of the lessened charges on account of the sale of the Ashburton mill, which was effected in June last. Interest and discount show a decrease of £816, arising from the smaller amount of interest payable to the bank and the increase of the J-liare-holders' capital. It will be noticed with satisfaction by shareholders that the goods account shows an increased profit of £2361. The directors have carried the premium received from tho issue of new shares (£1422 10s) to the credit of the profit and less acoount bo a* to make it immediately avail-

able, and I trust shareholders will approve? of this course. The balance of the profit and loss account, after writing off the loss on Ashburton and the replacement of wool store afc Mosgiel (£428 5s 6d), is»£44o6 10s 4d, whiofo the directors propose should be disposed o£ as follows: — To payment of a dividend ot 4 per cent, for the half-year, making 7 pec cent, for the year, which will absorb £3338 6s; leaving £1063 4s 4d, to be carried for* ward to the new profit and loss account.. During the past year the company have, in common with the other woollen companie*. of the colony, experienced a buoyancy irt business which has been somewhat marked. The general prosperity of the colony baS been shared by the company, and the hardening of prices for wools during the year has no doubt largely contributed to the satis^ factory result. Trade with -the Australian; continent does not show any signs of increase under the new conditions of the Commonwealth, and during the year now undeff review the volume of this business has been smaller than for many years past, representing only about 5 per cent, of the coin"pany's output. During the past year the woollen mills of the provincial district o£ Canterbury were cited before tlie Arbitral tion Court, and a wages log was instituted. Although the award did not apply to the Mosgiel mill, it was deemed wise to at once give effect to it. The result is an increase of wages to some of the employees* but only to a, small extent, and the total amount of wages paid is only slightly augmented. During the year the company, in conjunction with Messrs Ross and Glendining and others, were called before the Arbitration Court regarding wages paid to hosiery workers, and it is satisfactory that no award was made against this company, thoir scale of wages having been adopted by the court. The company's mill at Mosgiel is now well equipped and in excellent order, and every provision is made for the speedy execution of orders. Large stocks of yarns are kept, so that delay in making up goods to order is .reduced to a minimum. The financial position of the company is stronger than it has been for years, and I must comgratulate shareholders on the very satisfactory position. A fail amount of orders ia on hand, and prospects for the now current year are satisfactory. With these few remarks I beg to meve the adoption of the roport and balance sheet.

Mr John Mitchell, in seconding the motion, said that the chairman had gone into the details so fully that he had left nothing for anyone else to say. He was, however, pleased to know that the report was so favourable, and expressed the hope that the prosperity of the company would' be con* tinued. . The motion was carried unanimously. ELECTION Or OFFICE-BEARERS. Mr John Roberts and the Hon. T. Fergus were unanimously re-elected directors of the company, and both returned thanks. Messrs A. Rartleman and P. Barr wttel re-elected auditors. VOTES OF THANKS. Mr E. B. Cargill moved that the shareholders accord a hearty vote of thanks to the managers and staff and to the whole of the employees of the company for the services they had rendered during the past yenr. The motion was carried unanimously. On the motion of Mr J. Mitchell, a votel of thanks was unanimously accorded to the board of directors. Mr John Roberts, in returning thanks, said the eomnany was now in a concrete! position in every possible way, and he did not know of any suggestion any of them) could make to put the machinery on a more pprfeet footing than it was at the present time The introduction of the combing machines and new hosiery machines he was hooefu! would be amply justified. Mr J. H. Morrison, the manager, replied! to the vote of thanks on behalrof the staff and employees.