EARLY DIFFICULTIES

Otago Daily Times, Issue 26625, 22 November 1947, Page 9

EARLY DIFFICULTIES

BRUCE WOOLLEN COMPANY DIAMOND JUBILEE YEAR The difficulties of establishing the woollen company at Milton were mentioned by the chairman of directors of the Bruce Woollen Company, Mr F. L. Nicholson, at the fiftieth annual meeting of the company at Milton yesterday. The earliest response to the Otago Provincial Council’s offer of a bonus in 1868 for -the establishment of a woollen mill was, he said, in the Tokomariro district. A meeting was called “ to organise a public company for the purpose of bringing a woollen mill into operation.” The meeting had no immediate results, but interest in the proposed venture was maintained. Fourteen years later, in September. 1882, another meeting was arranged to consider the possibility of promoting the woollen industry in the Tokomariro district. A committee was set up to draw up a prospectus, but again the question of a woollen mill at Milton was shelved. The next step arose out of an article written on April 14, 1896, and published in the Bruce Herald, entitled, “Some Stray Thoughts on Milton,” in which the writer urged the formation of a woollen' factory as a means of “ trebling the population.” The article gave rise to correspondence supporting the idea, and a public meeting was called to discuss the practicability of commencing the industry and a provisional committee was set up to investigate the whole matter. Several meetims followed, and further and more concrete information was supplied by Mr James Dalziel. who was at the time occupying a responsible position in the mill of Messrs Ross and Glendining. • Estimates of the capital required were obtained, and it was resolved to form the company with a capital of 25.000 shares of £1 each, of which 15,000 shares would be offered to the public and 10,000 reserved. .Up to June 30, 1896, 8500 shares were subscribed, and the following month the company was registered. The statutory meeting of shareholders was held on December 29, when Messrs W. Moore, J. A. Duthie, J. Allen, J. Gray. M. Henderson, and J. B. Scanlan were appointed the first permanent directors.

No time was lost in ordering the machinery and commencing the building, ‘and on March 23, 1897, the foundation stone was laid. The building was in brick, 192 feet by 102 feet, Mr Owen Kelly’s contract figure being £3620. The building was completed in October, 1897. The machinery arrived and was installed, and manufacture commenced on November 19 of the same year. Manufacture was at first confined to elementary lines, such as blankets, flannel and worsted yarn, but gradually other types of goods were produced. Early in 1901 the company suffered the most critical set-back in its existence. On Monday morning; April 28, 1901, the mill was burnt to the ground, and 100 employees were thrown out of work. The total loss was estimated at £30,000. The insurances amounted to £24,800. The shareholders decided to proceed immediately with the reconstruction of the mill. It was considered that £IO.OOO additional capital was absolutely essential, and in the room an additional 10,500 shares were taken up.