KAIAPOI WOOLLEN MANUFACTORY COMPANY.

Globe, Volume XXIV, Issue 2438, 28 January 1882, Page 3

KAIAPOI WOOLLEN MANUFACTORY COMPANY.

The second annual meeting of shareholders was held on Friday afternoon, in the Oddfellows’ Hall, Kaiapoi. Thirty-two were present. Mr Isaac Wilson, chairman of directors, presided. The following report and balance-sheet were taken as read :

Tour directors have pleasure in presenting their fourth annual report and balance-sheet, and trust they will prove satisfactory to the shareholders.

The 218 shares, balance of the 1600 issued at the enlargement of the company, have all been taken up. About .£25,000 has during the year been expended in freehold land, buildings, and plant; the principal portion of the new plant being now at work. The warehouse and clothing factory, providing ample space for stock and the employment of 300 bands, will be complete in a few days. The total additions to land, buildings, and plant, will cost about .£30,000, and these additions make the company’s mill one of the most complete and modern of its kind in the colonies. Your directors did not consider it advisable to call yon together in July, and have taken steps to abolish the half-yearly meeting, as also to alter the date of the annual meeting from January to October, which they trust will meet with your approval. The profit and loss account for the year, after making a fair allowance f >r depreciation, shows a surplus of £5014 1 Is 10d., including a balance of £292 17s 8d on January Ist ; ont of which an interim dividend at the rate of 4 per cent, for the half-year was paid in July last, absorbing £I2BB Is 2d, thus leaving an available balance of £3726 7s Bd. Of this sura your directors recommend that £2490 12s 5d be applied to the payment of a dividend at the rate of 6 per cent, for the half-year, making the dividend 10 per cent, for the year: the balance, £1235 Iss 3d, to be carried forward to the new account. Messrs Isaac Wilson and G. H. Blackwell are the two retiring directors, both of whom are eligible, and offar themselves for re-electijn. The auditors, Messrs W. Eckersley and J. H. Evans, also retire, but are eligible, and offer themselves for re-election. LIABILITIES. Dr. £ s. d. To nominal capital—4ooo shares, of £25 each, £IOO,OOO, viz , 1185 shares, fully paid up, £29,625; 1240 shares, with £l6 called up. £19,840 ; uncalled capital, £50,535 — £IOO,OOO. Capital account—--1185 shares paid up, £29,625 ; 1240 shares, £l6 called up, £>9,840—£49,465. Less calls due March Ist, and previous calls unpaid, £4122 10s; less calls paid in advance, £226 10s £3896 _ 45,669 0 0 Amount on loan, Christchurch premises ... ... ... ... 5,000 0 0 Outstanding accounts 3,514 16 7 Advances against wool shipments ... ... ... ... 3,-450 0 0 Bills payable, and Bank of Now Zealand ... ... ... 32,239 8 3 Dividends unclaimed ... ... 96 8 10 Balance ... ... ... ... 3,726 7 3 £93,596 1 9 ASSETS. Cr. £ s. d. By Christchurch property account ... ... ... ... 6,161 6 8 Kaiapoi property and plant, £40,842 is 6d ; less depreciation, £ISOO 39,342 1 6 Sundry debts ... ... ... 8,219 22 Wool shipments ... ... ... 3,830 8 4 Loom and petty cash ..._ ... 81 13 2 Stock manufactured and in process, and raw materials ... 35,961 911 £93,596 1 9 STATEMENT OF PROFIT AND LOSS ACCOUNT. Cr. £ 8. d. To depreciation on plant and building ... ... ... ... 1,500 0 0 Materials used in manufacture... 24,090 8 9 Repairs to buildings and plant... 949 2 7 Discount, travelling and general expenses... ... ... ... 3,176 13 8 Wages, insurance and interest... 12,734 7 8 Interim dividend to June 30th, at 4 per cent, for half-year ... 1,288 4 2 Proposed dividend to December Slat, at 6 per cent, for halfyear, £2490 12s 5d ; balance to be carried forward, £1235 15a 3d ... 3,726 7 8 £47,465 4 6

Dr. By balance to January let, 1881, .£1633 19s 8d ; less bonus to chairman, .2200 ; dividend at 10 per cent, per annum, JSU46 25—£1346 2s 292 17 8 Payments on shares forfeited ... 39 10 6 TranEfers „ 26 2 9 Manufactures asoount 47,106 14 10

.£47,465 4 C The Chairman iaid—ln moving the adoption of the report and balance-sheet, I will just ask your attention to the profit and loss account. If you will add the interim amount to June 30th—viz., £I2BB 4s 2d—to the proposed dividend to December 31st, £2490 12s ss, and balance to be carried forward, £1235 15s 3d, and deduct therefrom the sum of £292 17s 83, which we had to begin the year with, you will see that the net profit for the year is £4721 14s 2d. This may appear * small balance when compared with the large cost of our plant, but it must be borne in mind that wo have received little real benefit from the new plant yet; but, on the other hand, we have been put to great inconvenience and loss in carrying out the alteration* and enlargements, as of course every department had to be enlarged or rearranged, involving the removal of nearly all the machinery, which has been a drawback upon this year's working. You will see that wo propose making the dividend for the year 10 per cent., which will absorb £3778 16s 7d, thus leaving a balance £1235 15s 3d to carry forward. You will also see that we have written off £ISOO for depreciation. This may seem a small amount, but it is equal to 7* per cent, on the old plant. The balance of the 1500 shares, 218, have all been taken up. I am glad to inform you that our new premises and plant are nearly completed. We have been pat to considerable delay and loss of time through some of the contractors being much behind, but this must have been more than made up by the very low rates at which, most of the work has been lot. We have now got all our carding machinery at work, which, is capable of keeping all looms in full work besides leaving a largo margin for fingering and other yarns. We have in the mill and to arrive, eighty-seven looms, which is the largest number in any one mill this side of the line. When it is borne in mind that theother three woollen mills in Hew Zealand, have only about seventy looms amongst them, and one of these has been standing during the past twelve months, some idea, may bo formed of the large increase that I* about to take place in the production of woollen fabrics. [Hear, hear.] But the production of a large quantity of woollen stuffs has not been our only aim. We are fully convinced of this, that to make a colonial mill successful, the quality, design and finish are of the first importance, and to secure this we have left no stone unturned. In our employes we have been very fortunate in procuring skilful, steady, persevering people, who are anxious to make the concern a complete success, and in our machinery we have secured the most improved In every department. The cost of ooal has been a very heavy item, but we have secured a considerable reduction in its cost. We are also utilising the warm water from the condensers for the dyeing, which, together with the large saving which, we hope to effect with the fuel economiser that has just been started, will make & substantial reduction in the cost of fuel. Our Christchurch warehouse and clothing factory will be finished in a few days, when we intend to largely increase the staff in our clothing factory. Our business now embracer what is nsually carried on by at least four different firms, viz., wool buying, manufacturing, clothing factory, and wholesale woollen warehouse. We think the warehouse will be a step in the right direction, and in order to show the actual working of each department we have kept a separate account for each one, which have all shown a profit. Daring the last fifteen months we have been laying aa carefully as we could the foundation of what is for this colony a very large and we hope successful concern. [Cheers.] Like all similar concerns we have had many difficulties to overcome. Soma of our early productions were not just as we should like to have seen them, bat I am glad to say, as you also know, that we have now overcome all those difficulties, and that our goods are now equal to any that can be produced of the kind in any part of the globe. We have 360 hand* at work and during the next” few month* they will be largely increased. We paid. £15,000 in wages, taking all the departments, and bought up about 1,000,0001b* of wool, [Cheer*.] Mr B. Allen, seconding, said the mover had alluded so fully to the affairs of the company that everyone must have been satisfied and pleased with the statement given. With wool well bought, and the plant in complete order, it might fairly be said they had a good prospect, but at the same time he thought shareholders should not, for a year or two, anticipate any larger dividends than at the rate of 10 per cent., so that a fair smn might each year be allowed for depreciation and carried to the reserve account. He could confirm the statement that the company had now a good staff, and that they were producing an excellent article. The concern was growing, and now so large thafc it was quite necessary for one of the matters named in the special resolutions to be adopted later on, when it would be proposed to pay the managing director. They were aware a manager with an ability to carry on the business was needed, and that they could not always expect to have the free use of the chairman’s services. He hoped they would be able to induce the chairman to accept the position, and with these words he seconded the motion for the adoption of the report. At this stage question* were put in referenda to sundry items in the balance sheet, and satisfactorily answered. Eegarding a question relative to the construction of additions or portions rebuilt at the factory, the chairman said the directors were alive to the fact that precautions had to be taken against fire. Owing to the site of the factory being low, it was necessary to raise the buildings, and it was doubtful if the foundations had been made with sand if they would then carry more substantial brick buildings. Precautions against fire were adopted by always having a watchman, plenty of fire buckets, two fire extincteurs, and a steam fire engine and hose. In reply to another shareholder who wished the overdraft to be for a fixed period, the chairman said it had been arranged for on satisfactory terras, but not for any fixed, period, as the rate might be possibly lower in a short time.

The motion for adopting the report and balance sheet was then put and agreed to nem con.

Mr J. Lowthian Wilson said after having catechised the chairman pretty well, he and hi* fellow directors having shown by their answers a clear knowledge of the business, ho had a complimentary motion to propose. Shareholders on comparing this with last year’s statement would see that the business of the company had more than doubled, and the prospects were eminently satisfactory. The directors had shown close attention to the interests of shareholders, and by careful and judicious management he hoped they would render the undertaking highly successful. He moved—“ That a hearty vote of thanks be accorded to the chairman and directors for their services during the past year.”

Mr W. Best seconded, and tiie motion waa carried by acclamation. On the motion of Mr H. Allen, seconded by Mr S. O. Phillips, a vote of thanks waa unanimously passed to the auditors. Messrs Isaac Wilson and G. H. Blackwell having been duly nominated were declared re-elected directors.

On the motion of Mr Blackwell, seconded by Mr Sansom, Messrs W. Eckersley and J. H. Evans were elected auditors. The Chairman proposed a vote of thanks to the secretary, pointing out that he was the hardest worked official connected with the business, and waa moat painstaking and assiduous in the discharge and attention given to bis duties.

Mr Parnham seconded, alluding in terms of praise to Mr A’Court’s abilities.

The motion was agreed to by acclamation. A motion was made by Mr W. Fraser, and seconded pro forma by Mr R. M. Wright, to the effect that Northern tradespeople be supplied with goods at the factory, which, after discussion, was negatived, on the ground that it was thought inadv-sable to incur the extra expense which it would entail on the company. The Chairman announced the dividendswould be payable in February. At a special meeting held to confirm the resolutions to amend the articles of assooustion, appointing managing director, and remunerate the directors, Mr Blackwell moved* Mr J. L. Wilson seconded, the passing of the amendments and resolutions, which was carried unanimously. A vote of thanks to the chairman concluded, the meeting.