WHAKATANE PAPER MILLS

Gisborne Herald, Volume LXVI, Issue 20069, 16 October 1939, Page 12

WHAKATANE PAPER MILLS

PLANT IN PRODUCTION The annual report of 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 js expected. The exchange control and import restrictions should enable the company to enjoy a steady and increasing demand for its products and keep the mill working to capacity. All expenditure for the year has been capitalised and the cost of running the plant was charged to establishment account. Income from invested fundp wa s applied to the reduction of total expenditure. It was not opportune to prepare a profit and loss account for the parent company or its subsidaries for the period. Pending assurance that sterling funds to repay the London debenture group 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 obli-. gations within the Dominion and reserving £BO,OOO .of the issue for redemption of the London group's securities when the exchange difficulty had been solved.