WHAKATANE PAPER

Gisborne Herald, Volume LXVI, Issue 20101, 22 November 1939, Page 8

WHAKATANE PAPER

CARDBOARD OUTPUT MARKET IN DOMINION SOLE SOURCE OF SUPPLY The favourable position in. which the company was likely to find itself because of the outbreak of war and the consequent elimination of competition, following the ban on imports of cardboard was emphasised by Mr. H. A. Horrocks. managingdirector of Whakatanc Paper Mills, Limited, when addressing the annual meeting of shareholders held in the company's mill in Whakatanc on Monday. Mr. Horrocks said the Government had decided that for the duration of the conflict the company would have to take care ol the entire requirements of the boxmakers and box printers in the country. These were estimated at 15,000 tons of cardboard annually. It was an excellent position for the Government, as it would be relieved of the necessity for finding £300,000 a year in sterling. The Government had fully investigated the company’s costs, and the price to be charged for the board would be very largely guided by the Government’s policy. . Question of Price Replying later to shareholders' questions, Mr. Horrocks said that before the outbreak of war they had had to meet competition from imported board. They had not been able to make a profit then, but he hoped the Government would fix a price to cover the debenture interest, depreciation and payment ol dividends. He further hoped the Government would recognise the fact that capital was as much entitled to its reward as was labour. He said that £BO,OOO was owing at present to a London group for the machinery. The Reserve Bank was making £40.000 available next year, and the London group would be asked to wait for the balance. They hoped to make another payment of £20.000 in December. At present 232 men were in the company's employ and the wages bill was £I4OO a week. Rail freight averaged £7OO a week. Production was now valued at £4OOO and the present average output was 188 tons a week. In 18 weeks the company had made 2000 tons of cardboard, valued at approximately £44.000. Mi. Horrocks added. However, it would take time to reach the machinery’s theoretical output of 15,000 tons a year. The Mill Accounts Dealing with a point raised by Mr. T. A. Me Car roll, of Paeroa, Mr. Horrocks said the mill accounts now stood at £525.000, an increase of £74.000 since last year. The Kauri Timber Company had offered £42,000 in cash for rimu on the company's Matahina block and the money had been very handy. It was impossible to forecast when payments would be made to the dividend arrears, but debenture interest would be met. In reply to a questioner, Mr. Horrocks said he admitted the cost ol landing timber from Matakana Island was £3 a cord, or twice the original estimate. However, mills in other parts of the world were paying eyen more. Directors' fees were fixed at 100 gns., half the present fee. The meeting closed with a unanimous vote of thanks and confidence.