KAIAPOI WOOLLEN MANUFACTURING COMPANY.

Globe, Volume XXIII, Issue 2154, 20 January 1881, Page 3

KAIAPOI WOOLLEN MANUFACTURING COMPANY.

The annual general meeting of the shareholders of this oompany was held in the Odfellowo' Hall, Kaiapoi, on Wednesday afternoon. There was a fair attendance, the majority of the shares being represented. Mr Isaac Wilson, chairman of directors, occupied the chair. The Chairman, on opening the proceedings, read the report, the chief clauses in which were as follows : As will be seen from the balance-sheet, after paying the expenses of enlargement of the company, amounting to £516 6s 3d, the profit and loss account shows a balance of -£1638 19s Bd, which your directors propose to allocate as follows, viz.:—Payment of a dividend of 5 per cent, for the half-year, amounting to about £llOO, and the balance, about £SOO, to be carried forward to the credit of profit and loss account-

As instructed by you, the capital has been increased to .£IOO,OOO, in 4000 shares of .£25 each. 1600 shares were offered to the public, of which number 1382, representing .£34,500, were allotted three months ago. In consequence of Beveral enquiries for shares having been lately made, your directors would recommend that the remaining 218 shares be not offered to the public until March Ist. Steps have been taken to pay off the mortgage, enlarge the buildings and plant, and to secure premises for a warehouse and clothing factory in Christchurch. He then read the balance-sheet, which was as follows: — Liabilities. £ £ £ s. d. To Nominal Capital: 4000 shares of £25 each 100,000 Viz. : 872 shares, f nlly paid up, £25 each ... 21,800 1335 shares, with £6 per share called up 8,010 Uncalled capital ... 70,190 £IOO,OOO Called Capital—Original shares ... 20,625 1382 shares at £6 ... 8,292 Less call unpaid, due March Ist ... 3,445 .Less calls pail in advance ... ... 1,223 Amounts on loan ... 8,300 O 0 Interest on loan ... 402 9 10 Outstanding accounts ... ... 786 2 9 Advances against wool shipments... 1,850 0 0 Bills payable ... 538 8 1 Bank of New Zealand 9,507 18 8 Profit and loss balance 1,638 19 8 £49,718 19 0 Assets. £ s. d, £ s. d. By freehold land ... 363 5 0 Bnilding account... 5,021 19 11 Less depreciation 60 0 0 Plant account ... 13.854 15 5 Less depreciation 250 0 0 i. 13,63 t 15 5 Sundry debtors ... 3.G37 12 6 Wool shipments ex Waitangi 1,049 12 5 Wool shipments ex Durham 1,196 17 1 Stock manufactured and in process, and materials ... 24,826 7 8 Loom and petty cash 45 9 0 £49,718 19 0 £ s. d. To depreciation on plant and buildings 310 0 0 Wool and materials used in manufactures 7,573 3 3 Wages and general expenses ... 4,553 16 5 Bepairs, discount, .interest, and insurance 1,375 12 10 Expenses of enlargement of company 516 6 3 Balance 1,638 19 8 £15,967 18 5 By manufactures account 15,967 13 5 Transfer fee .. 0 5 0 £15,967 18 5 He congratulated the company on now having obtained sufficient capital to work with some amount of satisfaction and profit for its shareholders. The woollen industry was one of the utmost importance to the colony, and not only would the company be prepared to use up a large quantity of the wool produoed, but must do good in the employment of colonial capital and engagement of oolonial labor. In reference to the balance-sheet, he need not refer further to the items. But, with respect to the enlargement of the company's operations, he might say that the outlay proposed to ba made at the faotory itself would entail an expenditure of £14,600 in lengthening the mill, erecting warehouse and dye house and importing machines, as well as the purchase of a local-made engine and pumps, by whioh it was intended to make the factory as complete as any in the old country. A freehold had been acquired at the junction of Cashel street and Bedford row in Christchurch, upon which it was proposed to ereot a clothing factory for the employment of 250 hands. This was estimated to cost £SOOO. The total amount of expenditure estimated for these extensions was £38,600. When this was carried out, the factory would be double its present size, and a means would be provided for getting a larger sale for the manufactures. The 872 fully paid-up shares would produce £21,800 ; 1335 shares, on which £6 per share wag paid up, £BOIO ; and 1335 upon which £l9 per share was still due, £25,365 ; making a total of £55,175, from which, deducting the cost of the plant (38,600), would leave the company £16,575 to work with. It was possible to carry on the factory in its present state without calling up more capital ; but the directors had been pressed by shareholders to go in for extension, and it was to the interest of the company that the mach'nsry and plan should be mado as reproductive as possible. It was really important that thoy should have a factory for the making up of the tweeds. In Australia he found that out of twenty-one mills visited by him fully fr.ur-fifths of the manufacture was made into clothing after being sold to wholesale houses. All found its way to New Zealand, and, in spite of au import duty of 161 per cent,, iound an apparently ready sale. The intention of the Kaiapoi Company was to make tweed out of wool only, and leave no store unturned to

make first- claoe articles only, and now they had determined also to sell to retailers. The oompany would go in for supplying the demand for clothing which was hitherto imported from Victoria, and at its Christchurch establishment, be prepared to carry on a firetolass tailor's trade as well as the trade of a ready-made clothing faotory. He pointed out that the company was prepared to receive payments in advance on shares, and would allow shareholders so paying up dividends as from time to time declared. Their manufactures, he noticed, had doubled upon the produoe of 1879, and were expected to Bhow an equal increase in the ensuing twelve months. He concluded by moving the adoption of the report and balance sheet. Mr J. Lowthian Wilson seconded, referring to the healthy state of the company, its apparent financial soundness, and the satisfaction which shareholders mußt feel in being shortly placed in possession of the best woollen concern in the colony at an apparently cheap price oompated with other similar concerns.

Hon. J, T. Peacock desired to know how the loan's overdraft estimate expenditure was proposed to be met.

The Chairman explained that at present the stock amounted in value to over £14,000, most of which, or at least £IO,OOO worth, would be shortly sold, and before six or eight months elapsed tho calls from shareholders at the rate of £3500 per quarter, aDd £IOOO on paid-up shares, which latter had came in since the balance-sheet was issued, would place the oompany in a position to meet all its engagements. So far as the overdraft was concerned, he had made very favorable terms with the Bank of New Zealand, who would be prepared to advance against their securities. Not overlooking the £l9 per share duo by the new shareholders, £25,365 could be called up in two years. Hon. J. T. Peacook thought thero was a disposition to launch out too quickly. It had to be remembered that other companies might possibly take up name of their ground. He thought if they were anticipated in this way, the shareholders would not always have such rosey times when 10 per cent, could be paid. The Chairman pointed out that in justice to the new shareholders, and in compliance with the prospectus, the company was bound to go in for the enlargements and improvements promised, Out of which the company was to reap its profits. Referring to the extension at the mill, he pointed out that they had all the heads of departments, and in the new part would only require to take on labor at from 8s to 30s per week. If tho factory was put in the position it was intended the company could defy competition either from inside or outside. The old company's idea of working a faotory with only ten looms was a most preposterous one. It would never have paid. At least sixty looms were wanted. Mr Peacock observed that he thought the former company cut its coat according to its cloth. The Chairman said his wish was to see as much capital and labor as possible engaged. His idea to extend this factory originated with the Christchurch soup kitchen. He considered it to be the duty of every colonist to launoh out at a time like this and give employment in every direotion instead of storing up his capital, thereby assisting his country in its difficulty. Mr G. H. Blackwell pointed out that the demand for this company's productions was so great that they must keep pace with it, and in good faith with the new shareholders they must invest their capital in extending the faotory.

Mr Allan pointed out that if, after the the mortgage and Bank overdraft was paid, the estimated improvements cost more thai anticipated, it was still left to the directors to obtain new loans, though this he did not expect would bo required. If the £l9 per share unpaid was not called up, the new shareholders might justly complain that, while they were held responsible for this payment, they were not allowed to participate in the dividends which the old shareholders would receive.

Mr IT. Walker thanked Mr Peacock for obtaining a certain amount of information for shareholders, and if anything placing the prospects of the company before them in a better light. Mr B. M. Wright was in favor of going on with the improvements and calling up the capital. The motion for adoption of the report and balance sheet was put and carried unanimously. Hon. J. T. Feacook moved, Mr W. Best seconded, a vote of thanks to the directors, complimenting the members of the Board on their discretion and foresight, which was carried unanimously. Mr W. Sansom moved—" That a sum of £2OO be set aside from the profit account, as an honorarium to Mr Isaac Wilson, Chairman of Directors, as an acknowledgment of his services in connection with the company." He pointed out that Mr Wilson had acted for some time as the managing director of the company in a manner which had tended to its suocess. Not only had he conducted the business of the Company, giving up a large amount of his time to the working of the factory, but in visits to England and Australia, he had taken the trouble to visit many of the mills with a view to obtain a knowledge of their working, and procure by degrees such machinery as would rendor the mill here one of the best of its kind. As Mr Wilson's interest in the company was so well known, and generally he believed appreciated by members, he expected the motion to be carried without opposition. Mr J, Lowthian Wilson, in seconding, said the amount to be voted was in no way to be taken as plaoing a value on the chairman's services on behalf of the company, but simply as an acknowledgment of the fact taut shareholders were desirous of showing their appreciation of the manner in which he had worked in their interests. He could have wished that the amount to be voted had been larger, so as to meet better the expenses which their chairman had incurred in visiting other factories. He trusted the motion would be unanimously and heartily agreed to. Mr Mulcook said he knew the majority of the shareholders were in favor of passing this vote.

Mr Blackwell (a director) said he felt pleased to find that it had occurred to some of the shareholders to propose an acknowledgment for their chairman's services. It had been, he believed, mooted by one or two since they came into the hall. He took it that this was merely an acknowledgment, as Mr Wilson's efforts in the interests of the factory wore worth a very much larger sum. Indeed, it was owing to his efforts it had been raised from a non-paying to a paying concern, from an unproductive industry to one which promised very favorable results. [Cheers.] The motion was put and carried by acclamation.

The Chairman, in thanking the shareholders, said he took the present as a very handsome acknowledgment of the work he had done. He was, in fact, glad they had made the acknowledgment in a substantial manner, because for some time ho had felt anxious to start a means for affording relief to some of the hands in the factory in times of sickness or necessity, and towards that object he would devote the £2OO now voted. [Cheers.] He would hand it over, aft.r taking up paid-up shares in the company, and the dividends would be devoted towards the object in question. [Cheers.] On the motion of Mr B. Moore, seconded by Mr Muloock, Mr Bdwln Parnham was reelected a director.

On the motion of Mr Blackwell, seconded by Mr Wilson, Mr Bobert Allan was elected a director as representing the Christchurch shareholders.

Mr Wright moved, Mr Parnham seconded, the election of Mr Wm, Sansom, as a director representing the Bangiora shareholders. Carried.

The newly eleoted directors returned thanks.

Votes of thanks were recorded to Messrs W. Wilson and W. Eckersley, who had acted as auditors.

Mr Allan moved, "That in future the sale of goods at the mill to shareholders at wholesalo prices be discontinued, and in future no such sales be made except to persons engaged in trade." Mr J. W. Ellen seconded the motion, which, after some discussion, was carried with one dissentient.

On the motion of Mr Eckersley, seconded by Mr W. Fraser, a vote of thanks was recorde:!Jo Mr H. A'Court, secretary ; and a like vote of thanks was also passed to Mr James Wood, the manager. In reply to a question rogcrding shareholders' voting,'it was stated that the artioles of association would be amended, so that for every five shares one vote could be recorded. At a meeting of directors held subsequently, Mr Isaac Wilson was re-elooted chairman of the Board.