MOSGIEL WOOLLEN FACTORY COMPANY

Otago Witness, Issue 3218, 17 November 1915, Page 9

MOSGIEL WOOLLEN FACTORY COMPANY

ANNUAL MEETING. The forty-second annual general meeting of the Mosgiel Woollen Factory Company was held on Tuesday, November 9, and was attended by about 20 shareholders. Mr John Roberts, C.M.G., who presided, said the result of the year’s working was satisfactory. When the general meeting was held on November 17, last year, the war had been raging over three months, and at that time we were quite uncertain as to what the result was to be' on the company’s business. It was a matter for congratulation that they were able to present to the shareholders a satisfactory statement of the year’s trade. The bulk of their wool purchases were made before the very sharp and great rise in prices took place, so that their supplies for the year were bought at good values compared with the higher prices ruling later in the year. They also, in common with other manufacturers, benefitted by the shrinkage in the importations of woollen goods from Britain. The increased demand for goods enabled them to reduce their stocks of . manufactured goods, and the balance at the debit of the “goods manufactured, in progress, and raw material” was now about £ISOO loss than it was a year ago. A much larger proportion than usual of the stock was in raw material and in process, and the quantity of manufactured goods was much below normal. The larger turnover in manufactured goods, no doubt, had contributed considerably to the profit _ made. When they last met it was mentioned that the cost of installing the two Babcock water-tube boilers would bo about £4000,, but it was found that the actual cost, with necessary alterations, had been higher than wag., anticipated, and in addition to the boilers a fuel economiser was put in. Included in the additions for the year were hosiery

machines, which had cost £IOOO. Ho was glad to bo able to report that the introduction of the water-tube boilers and the economiser had boon most satisfactory, as they had effected a considerable saving in the" cost of fuel. During the coming year the directors proposed increasing the wool scouring and wool drying plant: it, was not anticipated that more than about £2500 would be required to cover this cost. In view of tliis somewhat small outlay, the board had not deemed it_ necessary to make any provision for this in those accounts. It would be noticed that the additions to plant during the year amounted to £6042, £IOOO of which was provided for last year, leaving £SOOO which was now written offl as depreciation. In regard to the question of depreciation, shareholders knew that the policy of the board for some time had been in the direction of, as much as possible, writing off all additions so long as the value of these amounted to a fair sum. The land, buildings, and machinery stood to-day at £60,433, and in 1909 they stood at £59,373, showing a small increase of £IO6O. During the past seven years the company had expended considerable sums in replacements and new machinery and housing, and had during that period made adequate provision for depreciation. It would be noticed from the balance sheet that the bills payable were higher by £467. This arose from English drafts for dyes, etc., imported being current at, balancing date. As to the assets, the warehouse property and office furniture stood at the same figures as last year, as the directors consider they are safe values. Book debts were £519 less than last year. The chief item in the profit and loss account was that of the profit from goods account, which showed an increase of £4209 over that of the previous year. On the debit side working expenses showed a not unusual fluctuation, while charges and salaries wore less by £202. Interest and discount showed an increase of £579, mainly caused by the larger turnover of the company's goods, bio had debts had been incurred during the year, and the staff had to bo complimented on having carried out the year’s business with such a satisfactory result. The balance of profit available, after providing for the dividend, was £2£94. This sum gave £4076 to be carried to the credit of the now profit and loss account. It had been deemed wise only to recommend a 7 per cent, dividend, and he thought the board had in' this matter acted prudently in view of the uncertainty of things likely to arise after the war. The effect the war would have on the business in years to come remained to be seen, and speculation was, ho thought, uncalled for at present. It could, however, he thought, be safely concluded that the war would leave England and her dependencies, as well as all other nations engaged in the terrible struggle, in a less favourable financial position. This undoubtedly pointed to heavier taxation, and consequently a lessened, purchasing power on the part of the people. Harder times would undoubtedly come, and as people must provide for their food first, they might reasonably anticipate that economy would be exercised in the matter of clothing until things resumed the normal. Shareholders, no doubt, wore aware that manv kinds of dyes essential for the work had up to the present been made exclusively by German makers, and the war, having stopped these supplies, had necessitated the British Government, with the co-operation of British manufacturers, equipping factories for making these dyes. A company had been formed to overtake Ih:s, and the directors had, in order to secure preference and support the movement, subscribed for £750 worth of shares. The Government had called on the woollen mills of the dominion to provide large quantities of material for army clothing, and the directors had cheerfully undertaken to provide their share. Prices would not be fixed until wool values were established later on in the season, but he had no doubt these would be adjusted on a fair and proper basis. He felt confident that the mills would not seek to exploit the position. In view of the mills making largely for military purposes, and the output for the ordinary trade being thereby much restricted, he thought they could anticipate finding a ready sale for all they had to offer to their customers. He, therefore, looked forward to earning a fair profit during the next 12 months, and hoped to meet shareholders this time next year with a satisfactory profit and loss account. Ho moved the adoption of the report, which would carry with it the payment of a dividend at the rate of 7 per cent. Mr John Mill, in seconding the motion, said that shareholders were indebted to the directors for the way they had carried- on the business of the company. The motion was carried. Mr Watson Shennan was re-clected a director, and Messrs Peter Barr and D. Crawford auditors. Mr Holmes moved a vote of thanks to the directors, management, aind staff, remarking that the company was thoroughly well directed and staffed. The motion was carried, and the Chairman returned thanks on behalf of the directors. Mr E. Cameron (manager), having acknowledged the vote of thanks on behalf of the management and staff, the meeting terminated.