AUCKLAND TIMBER COMPANY. Annual Meeting.

Te Aroha News, Volume II, Issue 62, 9 August 1884, Page 3

AUCKLAND TIMBER COMPANY. Annual Meeting.

From the Auckland " Star," August 5. The annual meeting of the above Company was held afc 3 o'clock yesterday afternoon, Captain Daldy presiding. The Secretary read the annual report and balance-sheet. The report showed that since last annual meeting the directors have created a Reserve Fund of £24,000, by transferring £18,400 for premiums received on shares issued, together with £5,600 carried from profit and loss account, thereby reducing the balance to £12,995 17s 5d carried forward to new account last year The balance sheet shows a total profit of £32,614 11s 7d available for appropriation, which, after deducting £12,995 17s 5d brought forward from last year, leaves a net profit of £19,618 14s 2d for the year's operations. The directors recommend the payment of a dividend at the rate of 15 per cent., amounting to £14,400, leaving a balance of £18,214 11s 7d, to be carried forward to new account. They have written off a sum of £8,278 14s 3d for depreciation of lands, mill-plant, and vessels, making a total of £22,030 Is 5d written off for depreciation since the formation of the Company in 1878. The dividend will be payable on and after Thursday, the 7th t instant. The balance-sheet shows : — To uncalled capital, £96,000 \ reserve fund, £24,000 j amounts owing by Company, £58,115 17s 3d. Assets : By properties and plan,t viz., freeholds, leaseholds, buildings, machinery, wharves, booms, &c, £90,000 17s 7d; vessels, £3,144 19s 6d; stock-in-trade, goods, stores, &c, Auckland, £25,983 3s lid ; stocks, book debts and advances to contractors at branches, £69,495 14s Id ; book debts (secured and unsecured), Auckland, £18,616 17s sd; horses and drays, £671; office furniture, £170; insurance premiums, rates, rents, &c. (unexpired), £286 14s 9d ; bills receivable (in hand), £1,293 15s 4d ; cash, £3,067 6s 3d : total, £210,730 8s lOd. Profit and Loss Account :— To salaries, rates, rents, taxe3 and sundries, £8,<>40 ss; discount, interest, and bad debts, t7,641 19s sd ; depreciation, £8,278 14s 3d : total, £24,560 18s Bd. Balance, £32,614 11s 7d. Total, £57,175 10s 3d. —By balance from 30th June, 1883 :— £30,655 17s 5d ; less dividend on 20,000 shares at 12s, £12,060, and less 1 5,600 carried to reserve fund, £12,995 17s sd ; transfer fees, £22 12s 6d; gross profits, £44,157 0s 4d : total, £57,175 10s 3d. The Chairman, in moving the adoption of the report, said: Gentlemen, it gives your directors and myself great satisfaction to again meet you with what they trust you will consider a fairlj atisfactory statement, considering the low prices that have been ruling ; and they are only enabled to do it now by the greater amount of businep s done during the year, which lias demanded an extended outlay, for it must be remembered that timber business is what I may term one-sided ; that is to say, in purchasing there is no credit and largo advances, as log timber is paid for many months before it can be converted, and stocks in proportion to the volume of business must be maintained. In selling, all this is reversed. Credit must be given, and this accounts for the amount of our indebtedness. lam happy to say our stocks at the end of the year were ample, and of excellent quality. Our mills and machinery are in perfect working order, and our capital outlay in the future will be very little. You will see your directors are making every possible provision against fire by the erection of a substantial wall through the centre of the Aucklandmill; also they employ a staff of night watchmen, with water laid on through the mill. Referring to the accounts now presented to you, they show that our properties and machinery are nearly equal (at cost price, at which they are valued, l<ess amounts written off) to the paid-up capital of the Company. At the same time your directors have made ample provision for depreciation, for it must never be forgotten that kauri forest cannot be renewed, and the wear and tear of our extensive machinery is considerable. As the trade of the Company has expanded they have increased the amount for depreciation, which now stands at £22,000 for seven years. I think you may accept this as a proof of their care and desire to work the Company on sound principles. I trust you will approve of the action of the directors in creating a reserve fund equal to £1 per share, by transferring to same the premium account shown in last balancesheet, £18,400, together with a sum of £5,600 from profit and loss account, making it £24,000. Reviewing our assets as per balance-sheet,you will find that, excluding landed properties, mills, &c, there is a total of £120,730, of what I would term saleable or convertible assets, against a total of liabilities of £58,115. I think this is a sound position. Your directors did riot forget the interim dividend, but the scarcity of money at that time prevented them paying one, but they hope next February to be able to do so. 'Although the statement bears such a favourable aspect, owing to reasons before given— viz., giving large credit and advances, and receiving comparatively none, coupled with the unexpected expansion of the business— our liabilities necessarily consist to a considerable extent of borrowed money, and your directors intend at a fitting time to invite you to make an addition to the capital of the Company by the issue of new sharss, as the interest now paid would materially assist in paying dividends on the same. Reviewing the work of the past year, remembering the large interest your directory hold, which makes your interest and theirs identical, I am sure you will credit them with careful and prudent management, and the desire by every means in their power to not only make our Company successful but sound. I now move the adoption of the report and balance-sheet as read. Mr Savage seconded. In reply to Mr Boardman, the Chairman said that the Company was under no obligation to any monetary institution whatever ; the money it borrowed was from their own directors, and they alone could bring financial pressure on the Company, but their own large interest was a safeguard against that. At the present time they loaned to the Company between £20,000 and £30,000. The motion was carried. Mr J. Brown was re-elected director, and Messrs Wade and Nutter auditors (at renumeration of £50). The directors' honorarium was fixed at £300. Votes of thanks were accorded to the ' directors, manager, and officers of the Company. Mr Holdship, in responding, said the officers felt the greatest interest in their work," and he had the greatest confidence in all connected with the Company This concluded the business

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