TAUPIRI COAL MINES

Wanganui Chronicle, Volume 75, Issue 119, 23 May 1932, Page 10

TAUPIRI COAL MINES

“WASTEFUL COMPETITION.” . “It will be noted that there has been a very serious falling off of the net profit for the year—£24oB as compared with £13,536 last year,” said the Hon. E. W. Alison, chairman of directors. in moving the adoption of the report and balance-sheet of the Taupiri C< .1 Mines, Ltd., at the annual meeting of shereholders this week. Mr. Alison said the preference share dividend had been paid as usual, amounting to £l6OO, leaving a balance of £11,041 Is lOd to be disposed of. The directors recommended payment of a dividend for the year of Is a share on ordinary shares, -bsorbing £6500, leaving a balance to be carried forward to next year’s account of £4541. Various causes contributed to the falling off in profits. There was a reduction in demand fol* house and steam coal, owing to the strained economic conditions, but the chief cause was the wasteful competition on the part of some Waikato companies, which was carried on for a period of some thirteen months, covering the winter trade. The injurious effect of the foolish < - ‘ition was eventually recognised by the various companies, and an agreement was reached in February last which ended the competition. He regretted the arrangement then made had broken down, and the same wasteful competition had begun again. Under all the ad erse conditions the company was fortunate to have made any profit at all. The chnirman referred to the closing down of No. 2 and No. 3 mines. “This,” he sad, 11 necessitated dispensing -with the services of a. -t 100 employees. It is a matter of regret tl so many men should have had to be discharged, but there was no alternative. I am glad to be able to repot that with the advent of winter the demand has increased, and a.s many as possible of 1 men who had been discharged have been re-employed. ’’