WESTPORT COAL COY

Hokitika Guardian, 24 November 1931, Page 5

WESTPORT COAL COY

LOSS OF TRADE.

(By Telegraph—Per Press Association)

DUNEDIN, November 23. The annual meeting of the Westport Coal Company was held to-day, Mr T. L. Denniston presiding over an attendance of about fifty shareholders.

In moving the adoption of the annual report and balance sheet, '' the Chairman said: “The curtailment of business, from various causes, so often mentioned, namely, the displacement of coal by fuel and hydro-electric power, with steady activity during past few years in-the' development coal mining leases bringing about keener competition, has resulted in a very much reduced output from the collieries during -the past year. : The general depression prevailing also affected business very seriously. The railway orders, ' amongst others, are much smaller than usual, owing to the curtailment or to the abolition of some of the services, while lessened business, of greater economies, in' many other, directions have been reflected in the sales during the year, „ In making a survey of the position, I cannot see much prospect, of expanding markets in any directionrin the near future, and it is probable that xve may have difficulty in maintaining our output, even at the present low level. Careful consideration is being given to methods pf reorganisation, in the hope of reducing mining l costs to bring them into line with altered conditions. The reduction of mining costs must auo be accompanied by reduced haulage and freight charges to make them of much value. Unfortunately, the railway charges at Westport have been much increased in recent years, and although the Government has stressed the necessity for employers passing on to consumers the advantages of the ten per cent, cut, I regret that, so far as the haulage at Westport is concerned, no reduction has been made. Indeed, as recently as December last, ten per cent, of an increase was made, it is hoped that, before long, some abatement of these heavy charges - maybe possible.” After referring largely-re-duced output, owing ';'to the want of trade, and .-to idle, timbdincluding . a period of 35 days due to a strike, the iChairman reviewed .the , accounts in detail, .and pointed out that 'the profits from the mines were small, and it .was. only due to the interest on investments for the year that a small dividend from this source .became possible. .It was proposed to make up the distribution to the same amount as last year by a payment from the insurance fund of a further Is per share, making Is 9d per share for ,the year. , , In conclusion, the Chairman announced that the Directors proposed to ; r e' ( t'm J £K .Wliflji from £450,000. to. £225,000, by the disti’lbutton of 10? pev share from the sinking fund created -20 years ago for this purpw®. * ! ' The motion was carried. 'M;