PORTLAND CEMENT COMPANY

New Zealand Times, Volume XXXVII, Issue 8343, 1 February 1913, Page 15

PORTLAND CEMENT COMPANY

ax unpropitious year. XU DIVIDEND RECOMMENDED. Press Association. DUNEDIN, January 31. Tho sixteenth annual meeting of the New Zealand Portland Cement Company was held to-day. P. Barr (.chairman of directors) presided. In moving the adoption of the annual report and balance-sheet the chairman said he regretted somewhat that tho confident expectations of last year had not been realised, and he recognis-ed-that shareholders were entitled to ! a full explanation of the company's j affairs. Tho profit and loss account showed that the handsome profit of £10,861 of the previous thirteen months had been reduced almost to vanishing point, and the year just closed prudueI ed only £l2l 2s Gd. An examination of tho figures would show that the position resulted from a reduction on the j gross profit on manufacturing on the ouo hand of £7503, and an increase on expenses on tho other hand of £330',). Tho result wits not caused by a reduction in the output, but duo entirely to the increased cost of production. Cement and lime sales showed an increase of £2519 compared with tho previous period, and the output showed a substantial increase for the twelve mouths ended X T ovomber 30th as compared with the samo period in 1911. A close analysis of manufacturing accounts showed an increased cost in production of £IO,OOO, an increase of 15 per cent. In view of many changes in tho management ho had personally visited Limestone Island. He was satisfied that the new control (Mr Washington) was tho right thing, and he left the island convinced that tho works were in the hands of a man who understood the ccmenUmaking business. A new contract for white lime had been arranged. A new quarry had been started, and at the time of his visit he thought the watersiders would modify their requirements regarding paper-lined bags and accept Calcutta bags as satisfactory to themselves and economical for the company. Ho anticipated a reduction in the cost of production during the present year as tho outcome of several alterations, particularly in tho direction of cutting out Sunday work and overtime. Regarding tho business, apart' from the management of the Works, Mr Vickcrman had good experience, and ho believed his appointment would bo justified by results. There was no capital expenditure of a serious nature ahead, tho completion of the opening track to the new quarry and the payment of the balance of £6OO to the Brush Electrical Company being the principal items. While in Auckland ho went carefully into the prospects, and anticipated a reduction in the indebtedness to tho bank. He regretted the directors were not in a position to pay a dividend. Since 1903, when a heavy debit balance was carried forward dividends had been paid ranging from 6 to 12 per cent., and averaging for nine years 5) per cent. He hoped the future would not have fluctuations, and he believed the arrangements for the conduct of the business never had been on a hotter footing. J. M. Begg seconded tho motion. Ho said for the first time in its history the company had produced more cement than it could dispose of in the Dominion. With increased new uses it was hoped to dispose of all they could produce. • In answer to questions the chairman

said he did not anticipate difficulty with the Australian tariff, the tendency of which was rather downward. rile report was adopted, and tho retiring directors jv-clcncd, except Col-om-1' iloleatc, who is leaving for England. J. if. Upton (Auckland), taking his place. Messrs W. IE Holmes (Auckland! and James Brown (Dimedin) were appoiiiicd auditors.