DOMINION RUBBER COMPANY.

Press, Volume LVIII, Issue 17472, 5 June 1922, Page 8

DOMINION RUBBER COMPANY.

CONFIDENCE EXPRESSED IN DIRECTORS. An extraordinary general meeting of shareholders in the Dominion Rubber Company, Ltd., was held at- Dunedin on Friday. Mr T. Glendining (chairman of directors) presided, and there were about 30 shareholders present. The meeting was held in pursuance o a requisition from shareholders. The chairman said the meeting had been called at the request ot shareholders with a view to rescinding the resolution passed at the annual mee in<r Before proceeding to that "Justness, ho would like to say that the board was unanimously in ia\oui or tho continuance of tapping so J°°S the price of rubber did not fall be'® a figure that would pay collecting and shipping charges. T% company would thus keen together its labour force, which was of a very high class, to be ready for the moment that the price of rubber became profitable. . According to recent advice, thero was a rising tendencv in the East. The su - plus stocks "of rubber in London and America were being cleared, and, wit the prosoect of trade conditions improving before long, it would be a dangerous" step to discharge the labour force, the majority of which was skilled. Tappers required to be trained and closelv watched while learning to use the knife, otherwise considerable, and, in some cases, permanent, damaige would be done to the trees. It the companv let its Tamils go, it would take 'a long time, perhaps two years, to replace and train a new force equal in efficiency to th© present one. There would lie nothing gained by closing down. The comp my would have to provide funds to retain the necessary labour to keep the buildings and the plantation in order, and provide for rent and overhead charges. In fact, the reverse would bo the case. As for the cost, if the company obtained 340.0001b of rubber—and that amount might be exceeded this year—an average nrice of 8d per pound would return £11,333, or an amount of £1291 short of last year's expenditure. Depreciation need not be taken into account, as it was not an outgoing. As part of last year's expenditure contained non-recurring outlay, aa well as the fact that all expenditure had been reduced to the minimum, the directors believed that the loss this yeai; would not bo considerable, and there was always the■ prospect of an increase in values.

Mr Wm. Anderson moved to rescind the following motion, wihich was passed at the last annual meeting of shareholders —viz.: "That the directors cable the manager to come to New Zealand by the first available steamer to consider the best means of stopping the serious loss that is now daily accumulating, and that four shareholders be associated with the directors when discussing the position with the manager." He contended that it would simply be incurring extra expense to get the manager to come to New Zealand, and no good purpose "would be served by it. He was on the estate ten or eleven years ago, and he was convinced the Bells, who were managing, would do the best they could for the company. Rubber, he understood, had lately taken an upward move in the East. The Chairman: It has an upward tendency. . Mr Anderson added that, in his opinion, the directors were qualified to carry on the company's affairs in the interests of shareholders. Mr J. B. Sim seconded the motion. Mr A. H. Chapman thought that, like other companies, this company should stop tapping, dismiss all hands except the manager and a dozen coolies to keep the estate in order, and begin to tap again when the market recoverered.* The. cost of this force would be abo.ut £I2OO yearly. Mr F. W. Mitchell said unless the company took drastic steps to reduce expenditure, it was only a matter of time before it would have to wind up. There was no use producing rubber at Is'3d and selling at 7d. He favoured Mr Chapman's proposal, so that when rubber advanced a lew pence per lb there would be some chance oi : making ends meet.

Mr T. Watson said the directors were gambling on the price of rubber, if me price went up, tilings wouid be all right; if not, the company would have to wind up. Mr J. (J. Stephens said he would follow the advioe of tlie directors and the manager. The chairman mentioned that the cost of collecting and slapping rubber was. 5.8 d per lb, aild the price obtained for the last product was Bd. If the company tapped 340,0001b this year, and the price made a slight move upward, it would be all right. The directors were large shareholders, and would do their best for the company. Mr J. A. Park earn the company's property was one of the best any company could hold. He hoped Mr Chapman's scheme would be adopted, and that Mr Bell would be brought over to explain the position. The chairman said the directors reI ceived from Mr Bell by I every mail, and he did not know that Mr Bell. could tell them any more if he wero brought over. The directors' instructions to him were to keep the expenses down to the minimum. The motion was carried.

Mr Chapman moved: "That tapping be discontinued until rubber gets up to a payable price, and that the estate be looked after and kept in order by a skeleton force in the meantime, such skeleton force to be compatible with efficiency.'" The motion was seconded.

The vote by hands was very even, and on a poll being taken Mr Chapman's motion was declared lost. Mr Anderson proposed, and Mr Cuddie seconded, a vote of confidence in, and thanks to, the directors and management. This was carried unanimously. LOCAL BODIES' LOANS. Consent to the raising of the following loans is gazetted:— £ Motueka Harbour Board (for constructing harbour works) .. .. 6000 Ngaruawaiua Borough Council (for in-' stallation of water supply) .. 5000 Paeroa Borough Council (tor sewage) .. 6000 Teuranga County Council (for grading, widening, forming, and metalling roads and providing culverts in Greerton Special Hating Area) .. 5100 Tauranga County Council (for widening cuttings, improving grades, and

metalling Tauranga-Waihi road) .. 900 Hutt County Council (for providing this Council's ebare of certain bridges) 2000 Dannevirke County Council (for workers' dwellings) .. .. .. 1800 Hamilton Borough Council (for providing the Council's share of Whatawhata bridge) .. .. .. 1600 Waimairi County Council (for repaying loan) 826 Akaroa Borough Council (for purchasing motor fire-engine and erecting petroleum store) .. .. 900