TIMBER INDUSTRY

Wanganui Chronicle, Volume 80, Issue 122, 26 May 1938, Page 9

TIMBER INDUSTRY

NATIONAL PROFITS LOWER SETBACK FROM FIRE LOSSES A net profit of £2623, a reduction of £548, is shown in the accounts of the National Timber Company, Limited, for the year ended March 31. The directors recommend a dividend of 2$ per cent, for the year, against 5 per cent., which was maintained from 1935 until 1937. In their renort the directors state that timber •es over the period were maintained at the average of recent years. The decrease in net profit was due primarily to the heavy loss Incurred through damage by fire to both locomotives. So serious was the damage to one engine that it required practically rebuilding. There was a considerable resultant loss, too, in a temporary hold-up of log supplies, while repairs were being effected, also in extra labour costs involved in the services improvised to meet the emergency. Another factor was the very high cost of labour in proportion to timber sales. The directors emphasised the fact that the selling price of timber was fixed by arrangement with the Government and wage rates were defined by Courts. The margin between those must provide. before there was any return to shareholders, costs of timber royalties, overhead costs, depreciation and taxation. Although timber rights showed at a reduced figure, additional areas since secured made up for the blocks cut out. The main tramline had been further extended, and this vear should see its completion to the limit of present holdings. Plant had been maintained in good condition. PARKER, LAMB ACCOUNTS REALISATION OF ASSETS. A further loss of £2298 is shown in the accounts of the Parker, Lamb Timber Company, Limited, for the year ended March 31. This compare: with losses of £920 in the previous year ended March 31. This compares with losses of £920 in the previous year and £4123 in 1936. The debit balance in the appropriation account is now £43,020.

The directors state that they have finally disposed of the harbour board leases (the mill and office and yard sites), also a portion of the machinery 7 not required. Further efforts are being made to dispose of the balance not in use. The loss on the year was principally due to the liabilities of the leases and the realisation of the assets mentioned. The Onehunga sales of timber showed an improvement on the previous year.