NEW ZEALAND PAPER MILLS COMPANY.

Press, Volume L, Issue 14977, 26 May 1914, Page 8

NEW ZEALAND PAPER MILLS COMPANY.

A YEAR OF MISFORTUNE.

(SPECIAL TO "THTC PRESS.") DUNEDLN, May 25

The New Zealand i'aper Aliiis Uompany, whose annual meeting was heid to-day, have not had the best of iuck of late. They aro again unable to recommend tho payment of a dividend, and the chairman (Mr F. W. Mitchell;, in stating some of the reasons for this, saiu:—".Misfortune has for some timo dogged the company, and hardly have we made good the result of one disaster when it has been succeeded by another. Our troubles began with the change in the requirements,of Uio trade through the introduction of kraft (or woodpulp) papers. These being made in countries where the raw material is, co to speak, at the mill door, form a very strong competitor to the article formerly turned out at our works, as the component features of the latter, while as cheaply obtained as the pulp, did not give, weight for weight, the same results.* The directors accordingly taced the position, refitted one of the mills entirely, aud entered into contracts tor the supply from oversea of the ru.# material necessary, to- produce a similar quality of paper. This could not, of course, be done without a good deal of expense, and explains to a large extent,., the existing indebtedness to our bankers. While the works were in a state of transition a fire broke out at Woodhaugh," causing a stoppage in its earning power for nearly twelve months. Though not an unmixed evil, as it enabled us to rebuild on a more substantial scale and bring the plant up to date, the loss and expenso thus had a further effect on our banking account, while to complete the sequence of misfortune, a flood occurred at Ma-taura.-inflicting more loss and expense ■upon the company.

"I cannot close my remarks without referring to the unfortunate position which has arisen through the reciprocity arrangement existing between New Zealand and Canada. By it manufacturers of paper are entitled to ship their goods in subsidised vessels at v.cry low freights, and escaping the preferential Customs tariff, tfiey are proving our most serious competitors. No effort is being spared by the directors to cope with this, but undoubtedly tho difficulty is of some magnitude. The bag trade, however, will, wo expect, bo a big factor in dealing with it."