PAPER MILL

Bay of Plenty Beacon, Volume 1, Issue 78, 23 October 1939, Page 5

PAPER MILL

THE ANNUAL REPORT DEBENTURE ISSUE DELAYED The annual report of the Whakatane Paper Mills, Limited,, for the year ended June 30, states that capital expenditure on the works totals £525,374. Since July the mill has been running three full shifts covering 132 working hours a week and providing steady employment for about 170 men. At present the daily tonnage is well below the rated capacity of the plant, but a gradual improvement is expected. The exchange control and import restrictions should enable the company to enjoy a steady ancl increasing demand for its products and keep the mill working to capacity.

All expenditure for the year has been capitalised and the cost of run ning the plant was charged to the establishment account. Income from invested funds was applied to the reduction of total expenditure. It was not opportune to prepare a

profit and loss account for the parent company or its subsidiaries for the period.

Pending assurance that sterling funds to repay the London debenture grouj> would be available as required, the issue of debentures in New Zealand could not be made.

The directors meanwhile were utilising subscriptions from New Zealand shareholders for repayment of the company's obligations within the Dominion and reserving £80,000 of the issue for redemption of the London group's' securities when the exchange difficulty has been solved.

The retiring directors, Messrs W. S. Dickson (Melbourne), G. O. Gibbs (Auckland), {.<nd S. J. Fortescue (Otorohanga), offer themselves for re-election. The following have also been nominated: Messrs D. J.. Wesney (In'vercargill), C. Fisher (Adelaide), and S. E. Johnston (Perth).