WILSONS CEMENT

Sun (Auckland), Volume IV, Issue 989, 4 June 1930, Page 13

WILSONS CEMENT

HIGHLY PROFITABLE YEAR PROGRESS OF THE COMPANY Interesting facts about the increasing use of concrete for road making in New Zealand and the tendency overseas formed part of the speech of Sir George Elli'ot, chairman of directors of Wilsons (N.Z.) Portland Cement, Ltd., at the 12th annual meeting of shareholders of the company today. Sir George also referred to the model village r of Portland established by the company for the welfare of its employees. In moving the adoption of the report and balance sheet, a resume of which has already been published. Sir George Elliot said: “The results of the year’s working have been most satisfactory, the net profit, after making ample provision for depreciation, bad debts and taxes, is £89,955, being an increase of £4,368 on that of the previous year. An interim dividend of Is a share has been paid and a final dividend of Is a share is now recommended. In view of the increased profits earned for the year under review., taking into consideration the strong position the company has attained, and as a gleam of sunshine in an otherwise financially cloudy sky, a special bonus of 25 per cent, on the capital of the oompany is also recommended. “The balance sheet does not call for any particular comment,” remarked Sir George. “Full *nd proper provision has been made for depreciation of every description; manufactured stocks as well as stores have been conservatively valued, the list of debtors has been carefully scrutinised, and all bad and doubtful debts provided for. WIDER RANGE OF USE “Our sales of cement and hydraulic lime show an improvement on those of the previous year, although they did not reach the level of 1927-1925. Cement; is finding an ever-widening range of usefulness, and it is our aim to stimulate trade by reducing the price when and where possible. “During the year prices have already been reduced at every point in the Dominion, and tomorrow to synchronise with the bonus to be paid to shareholders, a further reduction in the price of cement of 4s 6d a ton will be made throughout the Auckland district. “It may interest you to know that this reduction in price will cost the company almost exactly the same as will the payment of the suggested bonus to shareholders.” the chairman said. “Several miles of concrete roads were laid down in New Zealand during the year, and contracts for a further four miles had just been let in and around Auckland. It was regrettable that for road construction large sums of money were yearly expended on the purchase of asphalt, bitumen, etc., imported from foreign countries, the reason no doubt being that the first cost of roads built of these materials

was cheaper than those made of cement-concrete, but if the lasting qualities, comfort and repair costs received the consideration they should it would be found that concrete roads were by far the most economical in the long run.’* During the last few years cementpenetration road construction had been developing in England, Australia and other parts of the world, and recently a mile of this type of road was constructed near Albany in the Waitemata County. Although somewhat roughly finished, it gave evidence of fulfilling all the claims made for it. It was proof of the council’s satisfaction with the stretch which was laid as a sample, that another contract had just been let for a further portion of road of the same type of construction. The results obtained in other countries warranted the expectation that cementpenetration would prove a satisfactory and comparatively cheap method of construction for country and secondary roads. "The quality of the company’s products has been uniformly maintained, and far exceeds the requirements laid down in the British standard specification,” Sir George said. "The demand for ‘Wilsonite’ rapid hardening cement, although not large, shows a steady increase. It must be gratifying to shareholders to know that all the special reports on ‘Wilsonite’ received from England and the Continent, without exception, class it as a cement of the highest quality, and at least equal to rapid hardening cement manufactured elsewhere.” As mentioned in the report to shareholders at the last annual meeting, the building or extension programme was practically finished, and the jobs then under way, such as No. 2 hunt railway, gypsum storage, transformer building, works sewerage and installation of beth dust collector, were now completed; no extensive new work was at present contemplated. It was essential for the company’s well-being that it should maintain its large reserves of liquid securities, so that it might, should circumstances render it necessary, be in a position to install new machinery or make alterations in methods of manufacture and distribution. It had been their constant aim to build up reserves sufficient to meet any such contingency—an aim which the chairman felt sure shareholders, with the future welfare of the company at heart, must endorse. ELECTRICITY IN THE NORTH The company’s hydro-electric static f at Wairua was in first-class runnin* r 4 order. The increasing demand for electrical power in the North had resulted in the formation of the Hobson Electric-Power Board, and it was expected that power from Arapuni would be available within two years. Whether or not Wairua station would be taken over as a sub-station by the Government was not at present known. The company was now farming its own land. There were 1,573 acres at present in grass, and the balance was being brought into cultivation with as little delay as possible. The stock consisted of 2,300 sheep and 180 head of cattle. "Tree planting, as well as farm development, have immensely improved the appearance of the village and its immediate surroundings,” Sir George Elliot remarked. "The tenth annual report of the Portland Welfare League, which controls the social, sports and other activities in the village, shows that the year just ended has been highly successful from every point of view. Many activities contributing to the health and happiness of employees

and their families are carried on. All games are entered into with enthusiasm, and the Portland clubs are doing particularly well in hockey, tennis and bowling. Religious services and Sunday School have been conducted in the village hall, and shortly an Anglican Church will be built on a site given by the company.” The provident fund was subsidised by the company up to 2\ per cent, of the wages of each contributor. The fund, managed by a board of trustees, on which employees had representation, now amounted to £14,000, and was accumulating steadily. All moneys were invested in trustee securities outside the company. A sick and accident society had also been established at Portland, and the contributions of employees were subsidised on a 50-50 basis. "In conclusion I would like to express the high appreciation of the directors for the manner in which the officials and employees in every department have carried out their various duties during the year.” said Sir George Elliot. The report and balance sheet were unanimously adopted, several shareholders expressing gratification with the healthy condition of the company. A pleasing aspect had been the reduction in the price of cement, which would enable consumers to share the success of the company, a shareholder said. "We had to be fair to consumers as well as to shareholders,” the chairman remarked. Referring to the employees, Sir George said that the men and their families appeared happy and contented. He could remember the time when the company used to have great difficulty in keeping its men. A boatload would be taken to the works, but the men would leave almost immediately on account of the then unpleasant nature of the work. Today employees rarely left. The work had been made clean and the welfare of the men and their dependants made an important part of the company’s policy. The retiring directors, Messrs. A. B Roberton, John Wilson and H. B. Williams, w’ere re-elected and the retiring auditors, Messrs. Morris. Duncan and Gyllies, reappointed.