WELLINGTON PARK STUD CO LIMITED.

Auckland Star, Volume XXXVI, Issue 45, 22 February 1905, Page 6

WELLINGTON PARK STUD CO LIMITED.

AKNUAIi REPORT. KETJREMENT OF THE MANAGING DIRECTOE. Tie following is a copy of tie directors' report to be submitted to shareholders at the second annnn' meeting of the Wellington Psirk Stud Company on Monday next:— Your directors regret that in presenting their second repoit and. balance sheet they have to disclose a loss amounting to £4254 9/3, and if to this is added the credit balance of £1086 18/1 brought forward from the previous period, it would appear that a total loss of £5351 7/4 has been, made dnriiig the last twelve months.

it is neeesssu-y, however, to explain that a large proportion of this deficiency is the restdt of ovei-valuation at tire outset, and is not a legitimate working loss of the period.

At the time of formation of the company, the purchase price of the foals taken over was fixed at £4000. The working expenses to the end of .that year amounted to £189!) 18/9, so that the yearlings practically cost the company £5809 13/9 up to the time of sale.

The net realisation was £3812 3/5, whilst grazing and other fees amounted to £334 13/5. making a total reveuue of £4200 16/10, w-hich leaves a deficiency of £lt;y:'> l/ 11, and if to this i 3 added the loss from dearths that yeaj-, amonirtiiig to £325, there was a total loss at J-dnuirry 31 1904, of £201 a l/ii. " '

At that date, 'howercr, the managing director advised and ass-nrc-d your directors that the fails then at foot were fully worLu £3105, mid by talcing them into the balance-sheet at that value the mistake ot over-valuation was perpetuated, and the b-ahinoe-slieet of January 31, 1904, made to show a prout of £108*; 18/1, on which we have since been called upon to pay income tax amounting to £51 14/. Taking the valuation of £3105 as cost of the foais, and adding ,-is before the expenses of the year, amounting to £4190 0/11, the cost of the yearlings at time of sale at close of 1904 was £7304 0/11 They lenlised net £3022 1/9, to this add fees earned, £421 15/10, making a total revenue of £4013 IS/7, and showing a deficiency of £3260 2/4, so that if the foale had been taken in as actually of no value at January 31, 1004, there would still have been a working loss of £155 2/4. £ s. d. £ s.d. To the deficiejiey above of ...... 3,260 2• 4 Add: loss from deaths no* covered by insurance 1,340- -0-0 Amoumt written off for depreciation on re-val-uation of loeies 1,751 5 0 3,091 5 0 £6,301 7 4 Deduct ■credit bnlauce brought forward from January 31, 19Oi 1.056 IS 1 T-his year's variation of foals.. 1,000 0 0 2,086 18 1 Loss as per balance shwt £4,204 9 3 The total loss from deaths during the year amounted to £3340. against which we have to recover £2000 for insurance That the business has so far been carried on at a loss 'is attributable to three things. First, 'that the stock was originally taken over at excessive valuation• secondly, the yearlings produced have not been up to the standard «f the past; and thirdly, the expenses of the concern itre far too great—rent, £7SB 4/4; insuraj.ee. £4Si 4/i; management and wages, £1180 11/, being the principal To the- reduction of tliese working expenses the attention of the board is now bvrng specially directed.

The director retiring by rotation is Mr Leonard DnrJot, who. being eJJgihJe offeie himself for re-election. ' A The auditor, Mr R. }•;. Isaacs, rotird? la accordance with the rules, and is eligible for rc-appointmen.t. . ■

The directors regret to etate that circumstances have aiisen which necessitated the retirement of the managing director EDWIN MITCHELSON, Chairman

"Earth hath not anything to show more fair!" That famous quotation from Wordsworth's lovely sonnet on Westminster Bridge must have sprung to many a lip looking round the Domain Cricket Ground on Saturday last. The summer skies, the exquisite shadings of greens in the turf and trees, the°vast crowd of well-dressed humanity, and the brilliant uniforms of the bandsmen combined to form a picture which none who saw will easily forget. There is not in any part of the world a more naturally beautiful recreation groond in which such a spectacle as the marching competition can be witnessed by tens of thousands in complete comfort. A very large and entire panoramic picture of the ground was secured for the "Graphic," and will be published to-morrow. That it will be framed in thousands ot" Jiomes is certain, for the picture is one 'of exceeding- beauty, and equals or indeed excels anything yet issued by the "GTaphic." The other features in the issue ! are all as usual of great interest and I merit, including four lovely plates print,ed in the much-admired double-tinted art inks introduced to the colony by the "SSew Zealand Graphic." Brett's Auckland Almanac and Diary now. published. Price 1/, postage paid ;.I&9t few days of sale. Now is the time i>o secure bargains in bedsteads and bedding. Tonson Garlick Ca«— Ad.