DOMINION RUBBER COMPANY

Otago Witness, Issue 3347, 8 May 1918, Page 14

DOMINION RUBBER COMPANY

ANNUAL MEETING. The tenth annual meeting of shareholders in the Dominion Rubber Company was held in the Express Company's buildings on Tuesday, April 30. Mr W. L. Simpson (chairman oi directors) presided. The annual report submitted accounts for the year ended November 30. and stated: The profit lor the year, after making provision for the estimated amount of accrued income tax, amounts to £5262 7s 7d, to which must be added the amount brought forward from last year, £616 18s Id, making a total of £5879 5s Bd. The interim dividend paid in October last absorbed £2500, and it is proposed to carry forward the balance of £3„v9 5s Bd. The board regrets that it is unable to recommend the payment of a dividend at present. The heavy drop in the selling price of rubber, supposed to be caused by the shortage of shipping between Singapore and London, thus making America our only market without competition, has seriously affected the company, and there is but little margin over the cost oi production. Indeed, our lower grades rubber has been sold under the average cost. The position has become so acute that a number of the companies operating in the Malay States are endeavouring to secure uniformity of action in regard to a proposed limitation of output with a view to the re-establ.shment of prices. Meantime, our managers are effecting such economies as are possible in order to limit cash outgoings. In August £2OOO was invested in war bonds, and since the close of the financial year £3992 has been paid out for income tax to November 30. 1916._ These payments have absorbed most of the funds available m New Zealand. An amount of £3236 12s was in hand in Kelantan in November, the amount being somewhat reduced at the end of December, but it is. not considered prudent to withdraw any of this money at present in case it is required for the purpose of carrying on the estate. Our managers have suggested that if the depression continues it may become necessary to l.an upon New Zealand for financial assistance. On the other hand, changes in the rubber market have been sudden in the past, and if a recovery takes place it may be possible to make a distribution later on. It was intended to open up 100 acres of new ground th s y ar. but after foiling- and clearing some 85 acres it was decide.', in view of the uncerta nty of the rubber market, to stop at that area. The planted area is now 885 acres. The area in bearing is the same as last year —viz., 530 acres, and the yield per acre therefrom 4721 b, an exceedingly satisfactory result.

The Chairman, in moving the adoption of the annual report and balance sheet, stated that the 85 acres just planted was what the manager termed hilly land, on which land, he said, although the growth was slower "it appeals more now to us" than it did, ow'ng to a seemingly great-fir freedom from bark diseases than the flat land. They now came to the conclusion that the whole of the unplanted area was suitable for rubber-growing. The estimated crop for the year was 210.0001 b, but the crops harvested reached 250,8071 b from the same area —530 acres—as was harvested last year for 202.0001 b. This year's increased return was equal to 4721 b per acre, against 400 an acre last year. The Chairman went on to refer to various details, and concluded by stating that it was proposed to take up the question of the company's liability to pay income tax-. Mr Richardson seconded the motion, which was carried without discuss ; on.The retirincr directors (Messrs H. Adam and W. L. fvmpson) were ro-elcctrd. nnd Mr D. Crawford was re-appointed auditor at the same remuneration.