KAIAPOI WOOLLEN COMPANY.

Otago Witness, Issue 2894, 1 September 1909, Page 18

KAIAPOI WOOLLEN COMPANY.

CHRISTCHURCH., August 26. The annual meeting of the Kaiapoi Woollen Company was held to-day. The directoi-s' report recommended a dividend of 7 per cent, on ordinary shares, aad 6£ per cent, on preference- shares. After making provision for depreciation (£4000), repairs (£2241).. and reserve (£2500), and after providing for the dividend, etc., the profit and loss , account showed a balance of £841 7s Id. which the directors recommended should be carried forward to ' a new account. The report was adopted. The chairman (Mr G. H. Blackwell) said the outstanding event of the year was the fact that the company had taken possession of the new premises. They nowhad a warehouse and factory which were second to none in the Southern Hemisphere. He regretted that the application for the shares were not at all up to the expectations of the direct-ore. He had 12 months ago indicated some of the idea* entertained by the directois, but the shares had not been taken up as readily as was wished, ami the progressive and fcelf-contained policy of the directors would have to be further postponed. The necessity for increased capital was brought about by the fact that some of the directors were considering whether the time had come for them with safety to push out a little and trade in rome of those lines which had apparent! v been very profitable to other houses. * He referred to the warehousemen* trade. Unfortunately tlie company's old pi-operty had notbeen sold owing to the stringency of the money market. He thought the' balance sheet would satUfy Ihe shareholders that there was a good opportunity for safe investment. Depreciation (£4000) had this y*ar been marked off the plaut. whereas the previous year the, amount had been £3400. Tlie total increase in properties and plant was fairly large, being £32,526 — an increase of £i 9.398 on the previous year. The stock, valued at £134,999 16s lid, was considerably Jarg-er than previously, which fact was no doubt brought about by trade depression and the exceptionally wJW v. either experienced this

winter. It was, however, of good value, and with the present price of wool they could not replace the stock for the same money. The board hoped that shortly the stock would be reduced, and the old property sold, which would do away with the only weak points in the balance sheet. The amount they wrote off »nnually for bad debts uas pjrovided for, and there was a small balance to credit at the present time. Dealing with future prospects, he thought they were fairly good.