KAURI TIMBER COMPANY. A SUCCESSFUL YEAR. PROFIT OF £63,297. DIVIDEND OF SIX PER CENT.

Te Aroha News, Volume VII, Issue 416, 2 November 1889, Page 5

KAURI TIMBER COMPANY. A SUCCESSFUL YEAR. PROFIT OF £63,297. DIVIDEND OF SIX PER CENT.

Tiik balance-sheet of the Kauri Timber Company (Limited) and abatement of profit and loss ior the tiivb year of the Company's operations to 31st August last, which will be submitted to the shareholders at a meeting to be held in Melbourne on October 31, show a net profit ot £63,297 6s 3d. From this the directors proposo to pay a dividend at the rale ot 6 per cent per annum, and to place £10,000 to debenture sinking fund, £2,500 to reserve fund and £1,511 0s 7d to preliminary expenses account, leaving £4,23b 5s 8d to be carried forward to the next year. This result may be considered very satisfactory, taking into consideration the greac labour and expense of organising so large a business, and the se\ere depression which lias existed in the local trade. The result of the recent negotiations with the original vendors to the Company, which gave contributing shareholders the option of taking their quota of the pad-up shares in lieu of the guarantee of a dividend at ten per cent., is that the holders of 68,265 shares only out of the total number of 450,000 have elected to retain their right to the ten per cent, dividend. The dividends on the paid up shares will be paid to the Trustees, appointed under the agreement of the 27th August, 1889, who will from the amount make up the de ficiency of 4 per cent, upon the above mentioned 68,265 contributing shares, and the Trustees will hold the balance in the meantime, in terms of the agreement, but have decided to exercise their power and will release one half of the paid up shares at once, or as soon a3 the redistribution under the agreement can be ascertained, and the new scrip prepared. The following is the directors' report for the year : — Your directors have pleasure in submitting the balance-sheet and statement of profit and loss for the first year of the Company's operations to 31st August, 1889. The result must be considered very satisfactory, taking into consideration the great labour and expense of organising so large a business, and the severe depression which has existed in the local markets in New Zealand. During the year consignments of timber have been made to London, Glasgow and foreign markets. Cable advices report the first of these consignments selling at very satisfactory prices, and your directors are hopeful of a profitable extension of the Company's business in this direction. The negotiations for floating the Company's debenture issue on the London market were successfully concluded at the close of the financial year. The balance at credit of Profit and Loss Account is £63,297 6s 3d, which your directors propose to appropriate as follows, viz. :— To preliminary expenses account, reducing it to £6000, £1,511 0& 7d ; debenture sinking fund, £10,000; leserve fund, £2,500; payment of a di\ idend for Che year at the rate ot 6 per cent, per annum, £45,000 ; carry forward to next year, £4,286 5s Bd. Total, £63,297 6s 3d. The result of the recent negotiations with the vendors is as follows ; — Of the total number of contributing shares of 450,000, the number upon which the guarantee has been released is 381,735, leaving the number upon which a dividend of 10 per cent, per annum is guaranteed for four years 68,265; total, 450,000 The dividends on the paid-up shares will in pursuance of the agreement of 270h August, 1889, be paid to the trustees thereby appointed, who vriil thereout make up the deficiency of four per cent. upon the 68,265 contributing shares, the holders of which have not signed the agreement. The trustees will, ot course, hold the balance on the terms of the agreement, but they have requested your Board to intimate that having considered the extent to which the release of tho guarantee has been effected, and the pioposeJ dividend, they have resolved to exercise their power, and release one-half of the paid up shares so ?oon as the redistribution under the agieement can be ascertained and the new scrip preparod. — John Shaiu*, Chairman.

Ijl ABILITIES. £ s. a. Capital— 450,000 shares of £2 each ... £900,000 0 0 Less uncalled capital, £1 per sharo .. .. 450,C03 0 0 £450,000 0 0 150,000 shaves I paid up to £2 pei' share .. 300,000 0 0 • 750,000 0 0 Advances against dcbentuies is&ue 250,000 0 0 Deposits and accrued interest . 33.729 12 o Sundry creditors .. . .. 47,085 110 Fire and marine insurance and officer's guarai. tee funds .. 3,169 5 10 Acciued lntciesb on debentures and to banks . . . 5,585 8 3 Pi oiit and Loss Account — Net profits lor year .. 63,297 6 3 Contingent Liabilities— Billfa under discount .. £10,257 9 5 £1,152,866 14 2

AbsK L'S. £ fa. d. Freehold and loasuhol I forests and other lands-, mills, buildings, vessels, stocks, etc. .. 1,068,559 18 7 Bil'siecei\able 10,867 b 8 Cash iv hund and al bankers . 3,499 10 3 Sundry debtors 62,398 19 1 Preliminary expenses .. . 7,511 0 7 Contingent Asskts— Bills under discount per contra 10,257 9 5 £1,152,866 14 2

Pkofit and Loss Account. Dr. & s. d. To management and office salaries, wages stores, printing, stationery, rents, rates, taxes, directois' and auditors' fees, and all expenses at head oflice and branches .. .. 77,389 12 7 To flic insurance 2,403 16 1 To depreciation on mills and plant .. 2,178 14 5 To bad and doubtful debts (written oil) 749 10 7 To interest, paid and accrued . . 18,679 14 2 To balance, beinj; net piofit for year .. „ .. 63,297 6 3 £164,698 14 1 Cr. £ a. d. By gross profits on limber and 3tores sold, vessels, commission, gum, royalty, etc. . . 164,688 12 1 By transfer tees . . . . . 10 2 0 164 698 14 1

Fortunes are made by taking opportunities ; character is made by making them. Nothing will trip the light fantastic with more ease than a loose brick on the sidewalk. If young men will not believe in themselves no man or woman can believe in them. There are some men who have so much genius that they can't do anything bub sit around all day am] think aboul it. There is nothing purer than honesty ; nothing sweoter than chanty ; nothing warmer than love ; nothing richer than wisdom ; nothing- brighter than virtue ; nothing more steadlast than faith,