DOMINION RUBBER COMPANY

Otago Witness, Issue 3396, 16 April 1919, Page 19

DOMINION RUBBER COMPANY

.«. ANNUAL MEETING. The annual meeting of the Dominion Rubber Company was-held in the New Zealand Express Company's board room on, Monday afternoon. There was a good at* tendance of shareholders, the chairman of directors (Mr W. L. Simpson) presiding. The Chairman, in mving the adoption of the report and balance sheet, said that, ;n view of the reports appearing in the press from time, to time regarding the sale price of rubber, shareholders would no doubt bo prepared for the somewhat disappointing results disclosed in tho accounts now in their hand, and occasioned entirely by the low price of rubber ruling throughout the entire year. It would be readily understood that on a plantation such as theira it was quite impossible to effect economies comparable with a severe drop in the selling price of their product. A oertain expenditure was necessary in bringing forward the immature portion of the planted area and in securing a given weight of rubber from the older part, and there was a point below which it was impossible to reduco such outlay without going backward or impairing the condition of the estate. In other words, expenditure was a certainty, while income was a probability, and it was in regard to this latter side of the account that the company had felt tho pinch during the year ended 30th November, 1918. In the previous year the rubber account showed a credit of £27,873 lis 4d, while last year the same account yielded only £15.605 ss, or a decrease of £12,268 6s 4d. This decrease, occasioned by the low selling price of rubber, was entirely responsible for the absence of profits, and was, of course, a matter outside the control of the management. In conclusion, he regretted that notwithstanding the cessation of hostilities in Europe the hoped for improvement in the rubber market had not as yet become apparent. Shipping, the lack of whwh was responsible, at least to somo extent, for the low prices offering at Singapore, appeared likely, however, to be available in quantity in the near future. He regretted that the directors were not in a position to recommend a dividend. It would be unwise at the. present juncture to diminish the amount carried forward or to encroach upon the cash balance, which, all _ things considered, it was desirabie to maintain at a safe figure meantime. •> Mr F. W. Mitchell, in seconding the motion, said that shareholders would note that there was an air of pessimism pervading the annual report and the remarks of _ the chairman; but a small rise in the price of rubber would make all the difference. There was the question of a director or shareholder of the company visiting tho estate, and he was of opinion that a visit should be made. Mr C. S. Jenkins said he noted that there had recently been an incrase in the price of rubber on the London market.

Mr W. F. Edmond said the difficulty as far as the plantation was concerned was lack of shipping facilities Mr M. Stuart Holmes said that America * had been their sole customer, and the low prices ruling- were owing, to the war. He was talking to a gentleman recently who had large rubber interests, and whose income at the present time was non-existent. He was convinced that the Dominion Rubber Company was quite sound, and patience was what was required on the part of the shareholders. Mr Mitchell > 6aid he understood that there was practically no rubber in Germany at present, all sorts of substitutes being, in evidence.

The Chairman said an attempt had been made to control the output, but nothing had come of it. The motion was carried.

The retiring directors, Messrs T. Glendining and A. Anderson, were re-elected, as also was the retiring auditor, Mr D. Craw. ford.

The Chairman asked for an egression of opinion as to the advisablity of sending a representative of the company to visit the plantation. Mr Edmond thought such a course was highly desirable. He suggested that a director and a shareholder should be sent. The Chairman said he took it that the view expressed by Mr Edmond was the feeling of the meeting, and the directors would endeavour to give effect to it. Votes of thanks to the manager (Mr Bell). the staff, and the directors were carried. The newly-elected directors (Messrs Glendining and Anderson) returned thanks.