MOSGIEL WOOLLEN COMPANY

Otago Witness, Issue 3167, 25 November 1914, Page 3

MOSGIEL WOOLLEN COMPANY

ANNUAL MEETING. The annual meeting of shareholders in the Mosgiel Woollen Factory Company was held on the 17th instant, Mr John Roberts, C.M.G., presiding over a fair attendance of members. The Chairman, in moving the adoption of the report and balance sheet, said : Allow me first of all to make reference to the death of the Hon. T. Fergus, which took place on September 30. Mr Fergus was for the past 13 years a member of the board, and his wide experience in business matters was of great benefit to the company, and we deplore his loss. Mr P. G. Pryde (one of the original shareholders of the company) was called to the board to fill the vacancy, and we have no doubt he will be able to render valuable services to the company. As you all know, I was absent in England at the time the last annual meeting of shareholders was held. When making these periodical visits to the Old Country I always make it my business to look round some of the woollen mills in Scotland, in order to ascertain if there is anything new in the way of machinery, with a view of having the same introduced to our Mosgiel mill. The result of inquiries caused mo to order a set of carding machines fitted with a tape condenser, and three spinning frames of a new pattern. These machines have been running for some time at the mill, and I am glad to he able to report that Mr Wood, our mill manager, informs me that they are giving every satisfaction. The operations of the past year have been quite satisfactory, and show in many respects a remarkable similarity to the previous year. In the balance sheet it will be noticed that new machinery has been added during the past year to the value of £4570 6s lid, while £4500 has been written off, thus leaving only £l7O to be added to the plant account. Book debts represent an almost identical sum as compared with last year. Gssda manufactured, in process, and raw material show an increase in value of £3486, but this does not necessarily show a decrease in the value of sales. The sales during the year have been virtually the same as during the previous year. Last year we had a credit balance with our bankers of £lOls. and this year we have a debit balance of £1056 No bills receivable appear this year (all on hand having been discounted), while last year bills on band and undiscounted amounted to £2578. The increased value of stocks of goods manufactured and in process of manufacture and raw material now on hand as compared with last year almost counterbalance the shortage of cash this year. In the profit and loss account it will be noticed that the balance available for appropriation is £7824 12s lid, as against £8216 5s 6d last year, showing a decrease of £391 12s 7d. This is pretty well accounted for by increased payments for income tax and donations which come under the heading of Charges and Salaries. Donations amounted this year to £215 3s, which is about £2OO more than in an ordinary year, and income tax was £l4l 5s lOd higher. Shareholders will remember that donations for various patriotic funds have had to be given during the past year. The appropriation of the balance of profit, which the directors recommend, is the payment of a 7 per cent, dividend, writing off £3OOO as depreciation of plant, setting aside £IOOO towards cost of new boilers now on order, and carrying forward to the new profit and loss account _ the sum of £1932 12s sd. I may explain in regard to the provision required for new boilers that it has become necessary to replace the three old boilers with new, and we are now arranging for the introduction of two Babcock water-tube boilers at a cost of about £4009. The £IOOO how proposed to be reserved, and a provision of £3OOO which we hope to be able to provide in our next balance sheet as plant depreciation, will cover the entire cost without making any increase of the capital value of our plant. I think I have made sufficient explanation of the year’s returns to enable shareholders to have a clear understanding of the operations of the past year; but should I have overlooked any item I will be only too pleased to give the fullest information any shareholder may desire. In conclusion, I have, as is my usual custom, great pleasure in testifying to the excellent services rendered during the past year by Mr Cameron (our town manager), by Mr Wood (our mill manager), fey Mr"Nicolson (accountant), and by all serving under them. They have one and all worked most harmoniously and in the best interests of the company. Dr Marshall seconded the motion, which was carried. Messrs John Roberts and P. G. Pryde were re-elected to the directorate unopposed, as also Avero Messrs Peter Barr and David Crawford, the company's auditors. On the motion of Mr R. W. Glendining, seconded by Mr 0. Ford, a vote of thanks was accorded the directors and staff. Mr Roberts acknowledged the vote on behalf of the directors and Mr Cameron on be half of the staff.