KAIAPOI WOOLLEN COMPANY.

Star (Christchurch), Issue 6382, 30 October 1888, Page 4

KAIAPOI WOOLLEN COMPANY.

■ ' » OF"SHAKEHOLDEES. The annual meeting of Hie-shareholders of the Kaiapoi Woollen Manufacturing Company, Limited., was held at 1.30 p.m yesterday, in the Oddf ellqws' Hall, Kaiapoi ; present — Mr G. H. Blackwell, Chairman, of Directors, in the chair, the Hon. J. T. Peacock, MeMrs Mitchell, Sansom, Parnham (Directors), and about forty shareholders, representing approximately ' between one-half and two-thirds of the , shares of the Company (including proxies), j lhe Chairman read the advertised notice > of the meeting, and asked the Secretary (Mr A. Court) to read the minutes of last general meeting. These having been confirmed, the Chairman proposed, Mr Mitchell seconded, and it was carried, that the annual report and balance-sheet of the Company be taken as read. The report was as follows : — "Embodied in this eleventh report and balance-sheet your Directors submit the ! result of the past year's operations for j shareholders' consideration. In March last, after stock had been taken and due provision made for bad accounts, your Directors, in view of the excessive competition prevalent, deemed it prudent to await the result of the year's work before paying any dividend, and this course has been generally commended by those having special knowledge of the trade. During the year .£ISOO have been expended in repairs, as the result of which the whole of the plant is in excellent condition; and, notwithstanding the addition of new machinery, a reduction of £300 has been made on the value of the previous year. The stock has been carefully valued, and full provision made for all accounts of a doubtful nature. The risk from fire has been very largely ; reduced by the substitution of a concrete floor throughout the carding-room. The ( profit and loss account shows a balance of J65489 2a, from which your Directors recommend the payment of a dividend at the rate of 5 per cent for the year, leaving a balance of .£489 2s to be carried forward ■ to new account. Messrs W. Sansom and W. R. Mitchell, the retiring Directors, present themselves for re-election, as also do the Auditors, Messrs J. Harold Evans and W. Jameson." The Chairman referred to the absence of Mr E. Allan, in England, where many matters affecting the Company were receiving his attention. In their remarks at last annual meeting the Director's held out no immediate prospect of relief from the general trade depression, and great caution was exercised by them, especially in cho earlier part of the present year's operations. They were obliged, in face of co much shaken credit in trade generally, either to pile up stocks or reduce their output, rather than push sales. Accordingly the mill was put on three-quarter time, which naturally reduced profits for the first part of the year. At the end of three months, however, they saw their way to work the mill full time, and had since been very busy. The bulk of the profits of the year had been made during the last six months. The stocktaking for the. year had been unusually carefully and completely gone into. .An opinion had been expressed that the reserve fund should be drawn on. The Directors, however, were of opinion that it should remain intact. They had had to contend against great trading difficulties, as, besides keen and legitimate competition, there were reckless prices and bankrupt stocks on the market, besides cheap plant, and the many concerns running at a loss, with surplus stocks still to bs disposed of. The whole of the salaries and wages of workmen, and expenses of repairs to machinery to the amount of .£750, which, according to an earlier custom, were charged to plant account, were by this year's system charged to repairs account, and provided against in the statement of profit and loss. The Christohurch plant was increased in value by <£536. With regard to the Kaiapoi plant there was a decrease of J8436, and several important alterations had been made j besides which the heavy machinery was placed on the lower flat, and a concrete flooring laid down, 212 ft by 56ft, to decrease the fire risks, the benefit of which would be apparent in next year's insurance account. After providing for such repairs, increases and alterations, as detailed, the balance was applied to the dividend, and an amount carried forward to new account as shown. With regard to the reserve fund, he might state that Property tax to the amount of over £40 was payable in respect of it in its present form. The new season was iiopefnl. The mill was now working night and day, and the prospects of - the Company were thoroughly sound and good, insomuch that increased accommodation was necessary in Christchnrch, and a plan was under the consideration of the Directors with the object of obtaining this, as the Directors considered that the time waa come to meet the extended requirements of the Company's business. He concluded by formally moving the adoption of the report and balance-sheet. The motion was seconded by Mr Smith. In reply to Mr Butt, the Chairman gave certain items of stock at a value of £9000. In reply to Mr Fraser, the amount of stock in process of manufacture and raw material was given at .£47,000. It was further stated that the reserve fund was invested in stock, carried to the general account. After Borne explanation from the Chairman as to the mode of showing comparison of values of Kaiapoi property for last year and present year, Mr Eraser thought the present mode of showing these values erroneous, and that it would be better to show clearly the value of plant from year to year, and also the value of machinery added during the year. In reply to Mr Isaac Wilson, the Chairman said all new machinery was charged to plant account. Mr Isaac Wilson did not consider 2J per cent sufficient for depreciation. He was of opinion that the stock should be reduced by .£20,000, and interest and insurances saved. The Chairman said the Directors preferred to face present difficulties without touching the reserve fund. The Directors would be pleased to reduce stock, but found it a moral impossibility. In the English system, each mill only manufactured two or threa special lines. Out here they were obliged, in crder to keep pace with the trade, to make all sorts of goods for all sorts of climates, from Bockhampton to InvercargilL Reduction was impossible. The Chairman, in reply to Mr Isaac Wilson, also stated that all stock was valued at cost, and that £2000 of old stock had been got rid of. The Directors constantly kept the stock free of old goods, and thoroughly up to the mark. Mr Sbauks thought the Company did a larger turn over a few years ago with a stock of .£I6OO less than their present one. Different supervision was wanted in Christ- j church. Goods were manufactured without , knowledge of the requirements of the ! trade. Sending stock to Sydney was a mistake, -■ ■ The Chairman deprecated the very questionable taste shown by the last speaker. The Chrißlchurch Manager was thoroughly efficient He conduct d the business strictly according to the Directors' wishes and directions. The Directors considered it ! advisable to find outside markets, and did not regret doing so. The stock list had never been so carefully taken. The Hon J. T. Peacock criticised the remarks of Mr Shanks very severely. Was he the agent of a rival Company ? When Mr Shanks was connected with the manage- ! ment of the concern, goods may have been I manufactured without knowledge of the I requirements of the trade. It was very I different now, however. Who could possibly ■ be so desirou.3 as the Directors to prosper the concern?' He was afraid certain shareholders ran about crying down the , Company in every possible way. In answer to a question, the Chairman said the reserve fund waß invested in the Company. Mr King would suggest that, a portion -<jfeH|fiairsdtte<diake^

criticised the present mode of these aiccounts. The Chairman: Nothing except new machinery is added to plant account. The report and balance-sheet were then adopted without dissent. Messrs Mitchell and Sansom were reelected Directors. Messrs J. H. Evans and W. Eokersley were elected Auditors. Mr Brighting would like a third Auditor appointed, who should be a- share- i holder. The Chairman eaid that the meeting was now open for general business. Mr Isaac Wilson thought the .£IO,OOO Reserve Fund should be written off, and the stock reduced. He was of opinion that the present balance-sheet waa insufficient. Public confidence in joint stock companies was greatly shaken in New Zealand ; witness the Bank of New Zealand. They wanted something to give more confidence. A short half-yearly statement should be given, with fuller, details. The present audit was no audit at all. He would move — "'(V) That the payment to Auditors be increased, and that they be requested to first satisfy themselves, and then certify in the next balance-sheet that it is a true statement of the affairs of the Company ; (2) That the Directors engage experts who shall be approved by the Auditors, to check the stock sheets, and give report on same, which shall be printed with balancesheet ; (3) that the profit and loss statement in next year's balance-sheet shall give the expenditure under the following headß : wool, oil, soap, dyes, coal, repairs, general expenses, insurances, wages, interest, trade expenses, salaries, discounts ; and the stock to be given under three heads — namely, wool goods in process of manufacture and manufactured goods; (4) that a return be also added, showing the expenditure under the above heads during the last seven years." Mr Butt seconded the resolutions. The Hon J. T. Peacock objected to the third resolution. -There was no occasion for a public statement of details of business to this extent. He did not object to the principle of a thorough audit. The Chairman said the xesolutions were faulty, as containing no provision to discover the bona fides of Auditors. The tenor of the resolutions showed a doubt of the Directors. If they doubted the Directors they could doubt the Auditors. Mr Butt saw no occasion for doing business in 'a secret way. He was quite ignorant. Besides the publication of details might benefit New Zealand. In reply to Mr Brighting, Mr Sansom pointed out the absurdity of allowing shareholders access to the books. Mr Praser thought experts would give greater confidence. The Chairman eaid the Directors would treat the resolutions as a direct vote of want of confidence. Mr Isaac Wilson did not intend this. There was a want of confidence in all manufacturing Companies in New Zealand. He intended, if possible, to obtain legislation in the direction of more searching audits and balance-sheets in the case of all Companies. He referred to the present value of the Company's Bcrip. The Chairman remarked that any fluctuation in scrip was not the fault of the Directors, but of shareholders running down their own property. The Directors had no bed of roses, they had plenty of anxiety, and at every general meeting such miserable motions as these were brought up. Business men all over New Zealand had unlimited confidence in the management and the manufactures of the concern. Only their own shareholders systematically depreciated it. Mr J. L. Wilson thought that having the experts approved by the Auditors, was a step in the wrong direction. It would be absurd if a man proclaimed his private business on the housetops. No one seemed very anxious to Bell their shares. He despised a man who could leave a meeting, sell his shares, systematically run down the concern, and then buy in again. Yet this 'was done at the meeting before last. Mr Isaac Wilson said he had confidence. He explained certain share sales. The public confidence was what he wished restored. Mr Mitchell said it was a pleasure to hear all over New Zealand confidence and satisfaction expressed in the Company and its goods, but it was miserable to come back and hear this wretched running-down by shareholders. The series of resolutions had changed his opinion of the mover. Mr Peacock said he had been warned that the real originator of the motions now being discussed was a gentleman formerly employed by the Company. He had made use of Mr Isaac Wilson. He recognised the hand in question in the attempt to run down the present servants of the Company. The Directors would not sanction this at all. He would always urge searching audits as a Director, but would not accept the present motions. Let shareholders come to the Directors if they wanted information. Mr Wilson denied being instigated by anyone to move the resolutions. Mr Smith thought, although Mr Wilson did not intend it, that the xesolutions cast great reflection on the Directors. Mr Wilson would withdraw his motions, as the Directors evidently considered them as implying no confidence. ' A vote of thanks was then carried to the Directors on the motion of Mr J.L. Wilson, and the meeting ended.