KAIAPOI WOOLLEN COMPANY.

Globe, Volume XXII, Issue 1994, 15 July 1880, Page 4

KAIAPOI WOOLLEN COMPANY.

The half-yearly meeting of shareholders ■was held at the offices of this company on Tuesday. There was a full attendance, Mr Isaac Wilson, chairman of directors, presiding. The report, which was road, pointed out that the business of the company was steadily increasing. About two months ago it was decided to run the mill at night for a month, and it was now found to be necessary to continue night work permanently. A gasoline machine had boon obtained, and fitted at a cost of £2OO. Enlargements to the building had been completed, costing £6OO. The new Jacquard looms had arrived, and other parts of the machinery had been ro-arranged. The stock of inferior tweed on hand at last meeting had been quitted, mainly to e Sydney house, at job price, resulting in”a partial loss. The stock on hand had been reduced about £4OOO, and there was now in store, and mainly in course of manufacture, about £5900 worth, which was aa low a stock as could be kept compatible vrith the full operation of the various departments. Mr J. H. Evans, through pressure of other business, had resigned as secretary, and Mr H. A. Court was appointed, the directors recommending that a cordial vote of thanks from the shareholders was duo to Mr Evans for the very efficient manner in which ho had discharged his duties. The directors had decided to have the goods and machinery represented at the Industrial Exhibition, but regretted being unable, through pressure of business, to enter more exhibits. The business in blankets had been limited; the demand appeared to be principally for imported goods of a low quality, against which the company could not compote. The half-yearly balance-sheet submitted with this report showed a nett profit of £2649, £IOOO of which was profit upon wool. Five more Jacquard looms had been ordered by telegraph. The Chairman explained that the principal business was to consider motions of which notice had been given by him for the extension of the company. At the present there existed a wide spread feeling in favor of the encouragement of local industries, and he propoaedto give an opportunity to do so in this case, and he need not point out the excellent security which was forthcoming as a guarantee to those who invested in this company. The present company had so far proved a success, and would continue to be a paying concern, but with a larger capital it was felt that even larger results would be obtained. He had come to the conclusion, from information obtained, as well as personal observation, that small factories of this kind were not in a position to produce fabrics so cheaply, or bo bo economically managed, as largo concerns. For instance, the present beads of departments were capable of overlooking and managing a larger mill at the same salary, and the proportion to be saved between tho existing mill and the proposed extension would show a very considerable saving—something like at least £2OOO a year. If bis motions to be brought forward were adopted, and tho capital increased, the interest saved to the company would be a satisfactory item, and equal to a dividend in itself to the shareholders. If the number of shares proposed were subscribed for promptly, ho would advocate the immediate enlargement of the factory and plant to twice its present size, and have a warehouse started in Christchurch, as well as a clothing factory for the manufacture of clothing and hosiery. Labor was plentiful in Christchurch for the latter purpose, and work could be provided, with profit to the ’company, which would give employment to from 150 to 200 extra hands. His proposal, as the shareholders would have seen, was to raise the capital from £12,000 to £IOO,OOO, not necessarily to carry it out to the latter sum but to, Bay, £50,000, which would be called up in easy periodical payments. It had been stated that the recommendations meant giving new shareholders tho benefit of thejlarge profit made on the purchase of the original plant; also that the price at which the wool was taken in stock was too low, and for shipping was worth 2d per lb. more, and that he was offering too large a bonus to the public at tho expense of the present shareholders. He was aware that this was so, but he considered the great caving to be made in the enlargement would fully compensate them for a temporary sacrifice. After some discussion tho following resolutions were passed : “ That the capital of the company be increased to £IOO,OOO, and that the whole capital of the company be represented by 4000 shares of £23 each, which shall be issued by the directors at such time or times as they shall think fit.” “That the shares in the capital of the company be consolidated in such manner that each of the existing shares shall constitute fifty-five shares of £25 each, upon which tho whole sum cf £25 shall bo credited as having bean paid up.” “ That the existing certificates of shares be called in by the directors and cancelled, and that now certificates shall bo issued subject to the provisions of the articles of the association.” “That the directors be authorised to remove the registered office of the company from the borough of Kaiapoi to Christchurch if they think fit, and that at the annual election of directors to be held in January, 1881, the number of directors be increased to five.” Some resolutions altering portions of the articles of association with reference to meetings to be called upon requisition of the shareholders, were then passed, and the meeting terminated with a vote of thanks to the chairman.