PAPUAN PRODUCTS, CO., LTD.

Sun (Christchurch), Volume V, Issue 1329, 17 May 1918, Page 3 (Supplement)

PAPUAN PRODUCTS, CO., LTD.

ANNUAL GENERAL MEETING. The seventh annual general meeting of The Papuan Products Company, Ltd., was held yesterday afternoon, Mr Geo. T. Booth, chairman of directors, presiding. The chairman apologised for the absence of two directors, Messrs J. Harrison Jones and A. M. Wright. The annual report stated that in accordance with usual custom, the Plantation accounts were made up to November 30, and the Head Oflice hooks and accounts to December 31, 1917. It proceeded as follows: Rubber Tapping.—The year just closed has seen the initiation of rubber tapping. During September, 1917, 8135 trees were tapped, a number in excess of anticipations. An additional 1757 were operated on in October and November, thus bringing the number up to 9882. Average Yield.—Taking the average of the three months" /tapping, September-November, when the trees were "wintering." the production per tree should average slightly over one pound weight of dry rubber. This result has been obtained, it must be remembered, from what are practically the three worst months of the year. On an actual 12 months tapping, your manager is confident that these figures—good as they are •—will be exceeded. Census of Rubber Trees:— No. of trees Arc. (approximately) 4 years K months 5,000 4 years (i months r*"!'} 4 years f> months '-■'[,'! 3 years S months 4.87G I) Block. Various ages, IS months to Ave years 4,261 19,119 As some of the original blocks were closely planted, to provide for possible gaps occurring, a number of trees will sooner or later have to be out out, resulting in there remaining approximately the following:— No. of trees. In 1918 12,377 J n 1919 13,700 ii 1920 13,961 In addition to the foregoing, there were in the nursery at the end of November last, 13,804 seedling rub- » bcr trees eight months old, ready for transplanting in the new rubber area, of which about 12 acres were at that date completely cleared and stumped in readiness for planting, and the balance of the area was to have been taken in hand early this year. Estimated Rubber Output.—The estimated output of rubber for the current year, ending November 30, 1918, is about 12,000 pounds. About 4000 pounds had been shipped to Svdnev at date of latest advices. "Marketing the Rubber.—The reports received of the first trial. shipment show that it is of high grade. A couple of sheets of prepared rubber were brought back by Dr Moorhouse on the occasion of his last visit, and have been highly commended bv all who have seen them. Rubber * Tappers.—Your local director, in bis last report, speaks very highly of the natives' progress in "rubber tapping. Mr Whitten writes: "Some 11,000 trees were being tapped during my visit, and I particularly looked for signs oT bad or careless tapping, but I found no indications whatever of bad or careless work. The boys in the factory and smoke-house-appear to take great interest in their work, and are rapidly becoming expert in the various operations connected with the preparation of the rubber for market." Additional Clearing and Planting of Coconuts.— During the year under review, eight blocks, aggregating 370 acres, have been felled, of which 200 acres have been cleared, and 173 acres planted in coconuts. It was anticipated that the whole 370 acres would be planted before this date. The total number of coconut trees was 34,575 at the end of November last, when 437 of these were in bearing. In 1918 this number will probably be increased to 2183, in 1919 to 10.803. in 1920 to 19,341. In addition to the above there were 5000 germinated coconuts in the nursery. Interplanted Coffee.—Unavoidable difficulties in obtaining delivery of the necessary machinery for the preparation of the coffee have delayed returns from this source. A portion of the necessary machinery has now been installed at the plantation, and a small trial consignment will shortly be made in the Australian market. Four thousand young plants are ready for transfer to the new rubber clearing, but in the meantime the rapid growth of the rubber trees in the older areas will restrict the productiveness of the interplanted coffee. Experimental Plants.—A number of economic plants are being experimentally cultivated in an area set apart for this purpose. Native Labour.—The supply of native labour, both local and indentured, during the year has been on the whole quite satisfactory. Evidence of the popularity of your plantation is shown by the fact that 37 local boys have signed on for one, two, or three-year periods, showing bow well the natives are cared for, and how highly esteemed your manager and his assistants are. "The health of both natives and staff has been on the whole satisfactory throughout the year. New Overseer.—A new overseer was recently sent from New Zealand, taking with him from Sydney half-a-dozen horses for use on the plantation, these being urgently needed for various purposes. Visiting Director.—Dr. Moorhouse again visited Hie plantation in 1917,

mainly at his own expense, and the

services rendered by him both to the I s'aif on the plantation and to the shareholders generally, call for an expression of our wannest thanks. New Area.—An additional area of approximately 3000 acres, adjoining the company's Mamai Plantation, lias been applied for and granted, subject to survey. The directors are now considering the best method of dealing with the area, consistent with the conservation of the interests of the shareholders of this company, and' some suggestions in this direction will be placed before the meeting. Retiring Directors.—Two directors retire by rotation this year, namely, Mr George Thomas Booth and ])r. B. M. Moorhouse, both of whom, being eligible, oiler themselves for re-election. Auditors. —The retiring auditors are Messrs Newburgh, Best and Co., who also oiler themselves for reelection. STATEMENT OF ACCOUNTS. The- statement of accounts submitted was as follows:

PLANTATION DEVELOPMENT ACCOUNT. December 31st, 1917. Dr. Jan. 1. 1917. £ s. d. £ s. d. To balance forward 25,038 7 9 Nov. 30. „ Library t Account, 1) e i> r e'c i a Hon, Papua 0 15 9 „ Oillce Furniture !) epr ec i a tioti, Papua .... G 0 9 „ Meteorological Instruments, Depreciation, Papua .. 0 11 6 „ Stores (Food, etc) Papua 751 12 5 „Tra (1 e, Goods, Papua 110 0 2 ~ Medical Sto re s, Papua 22 4 9 „ Plant and Tools, Papua 408 15 8 „ Live Stock, Depreciation, Papua 48 4 7 „ Wages and Recruiting, Papua .. 1029 15 4 „ Cash on hand, Papua 98 12 7 ~ C u 11 iva t i on, Papua 731 2 4 „ Stationery an d Telegram*, Papua 22 7 5 „ E x c li a n g e s, Papua 37 17 5 „ Freight and Sundries, Papua . . 215 0 0 „ Miscellaneous expenses, Papua .. t t ft „ Salaries, Papua.. 860 2 9 Dec. 31. „ Salaries, Head Olllcc 209 0 0 ~ Oilice Furniture, 1) epr ec i a tion, Head Oillce . . .. 010 0 „ Printing, Stationery, and Advertising, Head Oilice 52 7 3 „ Miscellaneous Expenses, Hea .1 Oilice 2.! 11 10 „ Tra veiling Expenscs, Head Office 20 11 0 ~ Lice ns c Fees, Head Olliee . . .. 37 19 0 „ Directors a n d Auditors, Head Office or, 0 0 „ Stamps and Telegrams, Head Oilice 20 15 4 £31,133 9 10 Cr. 1917. Nov. 31). By -Building and Construction Account, Papua 2,3 9 8 „ Harness and Vehides. Papua .. 38 2 8 „ M i s c e I laneous Stores (written back), Papua .. 33 0 8 „ Furniture, Plantation (writteu back). Papua .. 82 9 0 j Dec. 31. „ Share Transfer and Scrip Fees . . 3 9 9 „ Interest and Discount ... 37 10 8 cou,u 41 C 0 „ Balance Forward 30,719 2 0 £31,133 9 10 BALANCE-SHEET As at 31st December, 1917. CAPITAL AND LIABILITIES. Nominal Capital—--750,000 shares of 2/-each 75,000 0 0 Less 318,240 shares unallotted 34,821 0 0 401,700 40,170 0 0 Less 750 forfeited shares 75 0 0 401,010 40,101 v 0 0 Less Uncalled — 3rd issue, 50,000 at 1/. 2,500 0 0 4th issue, 119,250 ,„„ „ A . at 1/- .. .... 5,902 10 0 3,102 10 0 31,038 10 0 Less Calls in arrears 130 5 C 31,508 4 6 Add Calls paid In Advance .. .. _____" 31,075 19 0 Sundry Creditors .. 1.591 0 5 Reserves Account .. 1.629 10 0 ASSETS , «4,896 15li Plantation Development Account as per particulars „„ _.„ „ , herewith .. .. 80,719 2 (■ Sundry Debtors .. 1j a 3 Plantation Sundries— Plant and Tools .. 477 18 7 Meteorological Instruments .. .. 110 0 Library 12 13 0 Miscellaneous Stores 404 8 4 Live Stock .. .. 115 10 0 Harness and Vehicles 109 11 «• Oilice Furniture .. 48 10 0 'Household Furniture R2 9 0 Cash on hand .. 20 2 4 Buildings and Construction .... 019 0 0 Oilice Furniture, d „ Head Office .. 11 4 2 N.Z. Government War Loan .. .. 1,500 0 0 Bank of New South Wales .. 701 19 9 £34,890 15 11

In accordance with the provisions of "The Companies Act, 1908," we certify that we have examined the accounts and audited the books of the Papuan Products Company, Limited, and have found them correct, and that, In our opinion, the foregoing Plantation Account and Balance-sheet are correctly drawn so as to exhibit a true view of the Company's affairs, as shown by the books. All our requirements as auditors have been complied with. The Stock of Goods, Plant, and Tools at the Plantation was taken on November ?,0, 1917, and we have accepted same as correct. (Signed) NHWBUKGH, BUST & CO., F.P.A. (N.Z.), 1'.1.A. (N-.Z.), Auditors. Chrtotchurcb, April 17, 1918. CHAIRMAN'S ADDRESS.

In moving the adoption of the report and statement of accounts, the chairman said: —

"When moving the adoption of the report at our last annual meeting, 1 remarked that the affairs of the company were then approaching an interesting stage, and .ventured a forecast that revenue from the sale of produce might appear in this year's reports for the first time. As it has turned out, this hope has not been realised, but, as you will see by the report of directors, tapping has actually commenced, and production of rubber up to a recent date has reached a total of about 4000 pounds. No returns, however, had been received at the date to which the annual accounts now submitted were made up. "From the results obtained so far, it is confidently anticipated that the yield of dry rubber for the current year will reach a total of about 12,000 pounds. "Through causes beyond our control, the anticipated returns from coffee have not materialised, but there are now over 13,000 coffee bushes in bearing and 4000 young plants ready for planting out. It would appear, however, that no considerable revenue can be expected from this crop interplanted with rubber, as the rubber trees soon develop to such an extent as to overshadow the coffee, and so to prejudicially affect the production of coffee-beans.

, "The new rubber area is approaching the stage at which planting out will become possible. It is intended to thoroughly clean the whole of this ground before planting out, and the planting will be pushed forward during this year as rapidly as possible. "It is interesting to note the opinion of well-informed authorities as to the probable values of rubber during the next few years. The view appears to be commonly held that a shortage of rubber for industrial purposes is almost certain to develop. The demand for motor tyres in America alone is expected to be three times as large in T.1'20 as

in 1917, and the firm conviction is expressed that that year will see something approaching a rubber boom. At the present time the price is low, but all the indications point to better prices prevailing very shortly.

"The expenditure dining the year under review shows a considerable increase, which is due partly to the increased area of land under treatment, partly to the installation of the necessary rubber machinery, and the provision of factory buildings and new dwelling-houses. "In regard to coconuts, you will notice that considerable areas of new land are being got ready for planting, and that the number coming into bearing before the end of this year is estimated at 2183. It must be remembered, however, that the crops off trees during their first two or three years of bearing are small, and relatively imperfect, consequently no considerable revenue can be expected from this source immediately.

"We have previously estimated that revenue from copra should make its appearance in the annual figures for 1921. The indications are that this anticipation will be more than justified to the extent that revenue 1 should begin one and possibly two years earlier than anticipated. "The demand for vegetable oils is at present exceptionally heavy, largely through the comparative scarcity of animal fats, and the value of copra-bearing plantations is correspondingly increasing. There seems little reason to doubt that the demand will continue at least for a considerable time, and quite probably may show a definite development from year to year. It is reasonable, therefore, to anticipate that we may expect a handsome revenue from this source before our plantations are many years older. It has been found possible, too, to increase the yield of trees by proper methods of cultivation, and to rear cattle and pigs on coconut plantations at considerable profit, the stock being fed to some extent upon pulp refuse, and, in turn, restoring fertility to the soil by natural fertilisation. In the early years of growth, profitable catchcrops are also being grown, and this is a matter concerning which the plantation manager is making experiments. FINANCES. "The accounts disclose a total expenditure on plantation account for the year of about £SOOO, in addition to which £ISOO of the reserves account has been invested in New Zealand Government War Loans, reducing our available cash resources by about £OSOO, and leaving £8462 of uncalled capital, with £7Ol cash in hand at date of balance. The uncalled capital has been further reduced by two calls made during the current year, the amount remaining available from that source being now £4230 or thereabouts. "Dr Moorhouse was good enough to pay another visit to the plantation in 1917, and his report has already been placed in shareholders' hands in Bulletin No. 8. It is hoped that equally favourable arrangements may be made for* a director's visit during 1918. NEW AREA.

"I reported last year that both Di Moorhouse and the plantation manager had strongly recommended the acquisition of additional areas of adjoining land for the extension of the company's operations. This matter has been pursued during the year under review, and application made to the Papuan authorities for a lease of approximately 3000 acres of land, subject to modification on the necessary survey being made. Your directors have had under consideration the best method of dealing with this new area, and have come to the opinion that, instead of burdening this company with the cost of development of the new area, it would be better to float an entirely new company for that purpose, this company to retain in its own hands the management of the new plantation, and in consideration for services rendered and to be rendered in this connection to secure.an interest in the new company. "Details of the proposed arrangement have not yet been finally settled, and it is quite possible that the entire project may have to be left over for the present, in consequence of the new regulations applying to the flotation of companies. "Shareholders will be interested to know that one of the directors, Mr A. M. Wright, who ottered himself for military service in the preceding year, is now engaged on important work in England, and has been promoted to the rank of lieutenant, a distinction which shareholders will doubtless regard as well merited.

"It gives me great pleasure to say that the manager of the plantation has carried out his duties to the enlire satisfaction of the directors, and that he is as enthusiastic as ever in the promotion of the Company's interests. I feel sure that he will value a vote of thanks from this meeting as indicating the appreciation of the shareholders.

"The local director, the Hon. R. F. Whitten, has also rendered excellent service, and deserves similar recognition."

Mr C. Boxshall seconded the adoption of the report and balance-sheet. In reply to a question, the chairman said the lease of the new area would be for a term of 99 years. The initial expense would be the survey, which would cost about £100; the rent was a very low one.

Dr. B, M. Moorhousc said the new land proposed to be taken up was largely a reservation. It comprised the face of a large block of country running towards the coast. It would be very disadvantageous to them to have a strange company starting there and interfering with their local labour supplies, using their roads, etc., and being otherwise a nuisance to them. The regulations provided for the cultivation of a certain proportion of the new land within two years, but in their case this land joined theirs, forming one continuous block, which for cultivation purposes would be counted as one. He was very keen on forming another company and developing this land. lie considered that any company formed would he a very much better financial proposition, both for their own company and for the proposed new company, which would benefit by their company's mistakes. The new company, if formed, should be a much better proposition than their own, and he personally intended to take up a number of shares in the new company if formed.

In reply to a question he said the country was magnificent; he had not seen better in the world.

Dr. Moorhouse also gave details concerning the work on the company's property. In reply to a question the chair-

man said the immediate advantage in securing the proposed new area was to prevent competition. The majority of the directors were of the opinion that it would he to the advantage of the present company for a new company to take over the additional area. If they took over the new area themselves it would mean probably having to secure further capital and allowing their dividends to he swallowed iip. It was not intended that the new company should be divorced from or compete with the old company, but that they should work together to their mutual advantage. \ ' The motion for the adoption of Unreport ami balance-sheet was carried. Dr. Moorhouse and Mr Booth were re-elected directors, Mr C. H. Giihy secretary, and Messrs Newburgh, Best and Co., auditors. On the motion of Dr. Moorhouse, a hearty vote of thanks was passed ti> the manager and staff, and the local director.

A special vole of thanks was passed to Dr. Moorhouse for his services to the company. A vote of thanks was passed to the chairman.