WELLINGTON PARK STUD CO.

New Zealand Graphic, Volume XXXIV, Issue 9, 4 March 1905, Page 24

WELLINGTON PARK STUD CO.

ANNUAL MEETING

The second annual meeting of shareholders in the At ellingtou I’ark Slud Co. was held on Monday last at the office of the secretary (Mr AV. B. A. Morrison). The Hon. E. Mitchelson (chairman of directors) presided, and 12 shareholders were present.

The report and balance, sheet, as previously published, were taken as read, and in moving their adoption the chairman said that he very much regretted that the operations of the company since its initiation had resulted in so much loss. In the directors’ report this was attributed to three things—excessive valuation, quality of the stock sold, and high cost of management and expenses. He must personally take some responsibility regarding the statement as to excessive valuation. He had held strong opinions on that subject ever since the company was-floated. In saying this he chiefly meant the young foals, which were taken over at a valuation of £4OOO. The question of the value of foals was largely one of sentiment. as well r.s being a pure matter of opinion. He had been assured by Messrs Gorrie and Nolan, who assisted in making the valuation when the stock was taken over, that the values they gave they sincerely believed to be the proper values of the animals. They stated that this opinion was subse?uently confirmed by the prices realised or the mares and foals sold on account of Messrs Nathan. If any statement in the report reflected on them he must take the bulk of the responsibility on his own shoulders. The directors were not unanimous on the point, and only two were in town when it was prepared (himself and Mr Gorrie), It being impassible to get the whole of the directors together to decide the wording of the report. AVhen considering the values of the stock taken over, they must not forget that since then a very serious depreciation had occurred in blood stock values all over the colonies. Whether this was caused by inferiority of stock Or more caution being exercised in purchase, he could not say, but a verv large slump had taken plane. The foal question was the one he took moet exception to, but ha was assured that the valuation waa JkS based on ua

average prices realised at the three previous sales. If that were so, their valuations were somewhere near the mark, but unfortunately for the company the foals were taken over at £4OOO. They realised £3812, to which had to be added the cost of bringing them into the ring. The result for one and a-half vears showed a net loss of £5351. It must be remembered that the yearlings Hold in the three previous sales were sired by stallions that were thought to be of considerably more value than those the Company owned, and to that a portion of the loss might be attributed. In the sales of the three previous years were stock sired by St. Leger, while only one had been sold by the Company. Phoebus Apollo and Menscbikoff, the next stallions to Hotchkiss, were both untried, and this fact must be considered in thinking of the lesser price realised. As to the question of management it appeared to be significant that the total expense of management of Wellington Park were only £2003 for three years, prior to the Company taking it over. Taking into consideration that the property was exactly the same under the recent management, that no alteration had been made except in the manager’s salary. it appeared a peculiar fact that while the management only cost £2OOB in three years, the first half-year of the Company cost £lBO9, and the full year £41911. There was something in connection with the statement presented to the shareholders to induce them to take shares that required explanation. There were only three sources of income in a company like the present—the sale of yearlings, stallion fees, and grazing fees. If the income from these three sources was insufficient to cover the cost of management a loss must result, and this was the experience of the company. The average of stallion fees for three years was shown in the prospectus to be £550, while the receipts for the Company- from this source had only been £420. Of course stallions in earlier years were more in demand than now. So many matters had eome to light during the last month that the directors

felt somewhat suspicious regarding the figures placed before them when the Company was formed. The large amount of loss sustained was receiving the very careful consideration of the directors. At first it was thought that in the interests of shareholders it would be better to wind up the Company, but whea the season was considered, together with the faet that if a forced sale was brought ou the shareholders would lose the greater portion of tlheir capital, the Board had come to the decision te carry’ on the stud until the end of the year, when the prices realised would return a considerable amount to the shareholders. The directors had, therefore, determined to carry on the stud at all events until December. They’ would then have the opportunity of noting whether the large expenses might not be reduced. The Chairman then went on to refer to the circumstances which bad led to the retirement of the late managing director, Mr T. Morrin. Certain matters involved were now being considered by, the company’s solicitors, and he would not. say more on the subject at the piesent time. When the late managing director was retired from the management it was thought necessary in ths interests of the company that his placS should be filled, and with that object they had elected Mr John Colbeck. He (the speaker) thought that the new director would be of great use to the) board in endeavouring to save what could be saved to the. shareholders. He expressed his regret, and that of the directors, that matters had come to the present point. As far as he was personally concerned he had been in the position of acting-manager, and it ha<t caused him a great deal of worry and anxiety. Mr Mitchelson concluded by moving the doption of the report and balance-sheet.

The Hon. 8. T. George seconded, and without discussion the motion was agreed to. Mr T. Darlot, retiring director, was re-eleeted on the motion of the chairman, and Mr R. E. Isaacs was re-appiont-ed auditor. The meeting then terminated. .-s