WELLINGTON WOOLLEN COMPANY.

Otago Witness, Issue 2896, 15 September 1909, Page 9

WELLINGTON WOOLLEN COM PA NY.

HOPEFUL OUTLOOK. WELLINGTON, September 7. The ordinary meeting oi memberb of the Wellington Woollen Company was held at the Chamber of Commerce 1 to-day. Mr A. E. Exley (chairman of directors) presided. There was a good attendance of shareholders. The chairman, in moving the adoption of the report and balance sheet, referred to a few principal facts relating to the position of the company and in explanation of the balance sheet. The period under review, he said, had been one of severe financial depression and general contraction of business enterprise throughout the Dominion. It should therefore be satisfactory to shareholders to find that under such circumstances the volume of their business did not show a decline. The sales were slightly in excess of last year's", and . would undoubtedly have been much greater under normal conditions. The orders in hand for delivery next season were also satisfactory, and indicated a larger turnover during the comfng year. Mr Brice told him that a more cheerful tone was already apparent, and with the moving of excessive retail stocks into consumption more confidence in the forward . outlook prevailed in the trade. There was also more inclination to lean on local supply, and to indent less, owing to a change the company had made in its system by pricing the goods from mail to warehouse on the cost of labour and material only. The results for the year appeared worse relatively to last year than actually was the case. By its effect in reducing stocktaking value also part ' of the large balance carried forward from last^ year should under the new system rightly belong to this. The directors were, however, able, and were taking the opportunity, with a surplus in hand, to revert to their policy in more prosperous times of building up a reserve in the stock pntil a very liberal margin of security had been reached. There was no doubt that a sound and substantial improvement had gradually been effected in the position of the company during the last three years, and there was at present every promise of its permanence and development. The industry had passed through five difficult years, due principally to market disturbances, uncontrollable, but not of a permanent nature. It was only reasonable to suppose that this would not last much longer, and that a steadier and more normal condition in the woollen trade should be approaching. The company was, in any case, decidedly stronger and better equipped to face the future, and he ventured to tell them that he was personally hopeful of soon reaching a higher dividend-paying level, with a full safety reserve in the stock for bad times. The stability of their financial position had been further improved during th 3 year by the additional capital called up of £14,403, less a reduction in the amount of calls on deposit, £1615 — a difference of £12,788. The total liabilities had been reduced by £24,843, and stood at £42.515. with the assets at £187,569. The stock (£93,559); £15,000 I©sb than last year, was in first-class saleable condition and well provided for. The book debts (£22,000) were about equal to thoee of last year, after ample provision for potential bad debts had been made. Mr Exley then moved the adoption of the retvort and balance sheet, carrying with it a dividend of 6 per cent, for the year on the ordinary shares, also a dividend at the rate of 6 per cent, per annum on the preferred shares, payable to-morrow. The adoption, of the renort and balance sheet was seconded by Mr D. T. Stuart, who pointed out that the total liabilities of the company (exclusive of £7455, deposits against contingent calls) were £49.971, or just under £50,000. These liabilities were more than covered by* uncalled capital — £55,516. The report and balance sheet were adopted. Messrs J. R. Blair and R. C. Kirk were elected directors, and Messrs Kember and Bon and E. W Hunt auditors.