THE WOOLLEN INDUSTRY

Otago Witness, Issue 3475, 19 October 1920, Page 50

THE WOOLLEN INDUSTRY

The Board of Trade report on the profits of woollen mills contains' a number of instructive tables, showing the earnings and expansion of the industry. The first gives the net profits with percentages- on gross capital for nine companies in 1919: — Net Per cent, on

I 3,000 .3,000 “ With reference to the above table>” the report states, “ it is advisable to point out that these figures cover reserves made for both special and general purposes, and. relate only to such amounts as are specially transferred to reserve accounts. In the case of almost every company the unappropriated balance of profits has been •‘increased in recent years as compared with 1914. These unappropriated profits are in themselves of / the nature of a general reserve. Since a considerable portion of the reserves has been set aside. for specific purposes and as the unappropriated profits have not been taken into account In the table, the figures do not provide any very significant statement of the position’ of the companies. To the extent that the companies have increased their general reserves instead of appropriating profits for purposes .of paying dividends, their action is probably due to a desire to make provision for a fall in prices and a period of unsuccessful tradhag.” The following table shows th e expansion of the companies’ operations from 1905-06

Company. Profit. gross capital. A £ 52,449 10.3 B ... 108,013 9.9 o ... — — 24,903 12.3 D \ ... 14,621 13.1 E 27,436 30.3 F . 16,221 17.8 G 9,296 14.2 H 9,944 17.3 I 3,302 17.5 Total ... £266,185 11.9 The position of nine of the companies in regard to reserves is given in the following table : : — yCompany. A 1914. £50,000 1919. £160,000 B 47,147 125,367 0 ' ... 27.900 67,150 x> 17,500 27,500 E Nil Nil P 1,500 7,000 ;; G 10,478 17,000 H 1,000 Nil '

to 1918-19;— 1918-19. 1905-06. Employees — - Annual wages bill Horse-power • ••• 1,549 £105,036 1,945 1,878 £233,170 3,452 £9,005 ““ Value of buildings .., £110,297 £210,980 Value of machinery and plant £188,459 £245,956 Scoured wool used (lb) 3,835,064 4,353,956 Output of tweed (yds) 1,300,471 1,875,113 Output of flannel (yds) 1,368,268 , 853,247 Output of blankets (prs) 69,572 88,383 Output of rugs and shawls (No.) Output of yarn (lb) 23,780 259,067 25,171 271,485 Total £397,713 £956,434