THE KAURI TIMBER COMPANY. (FROM THE MELBOURNE "TELEGRAPH.")

Te Aroha News, Volume VII, Issue 422, 23 November 1889, Page 3

THE KAURI TIMBER COMPANY. (FROM THE MELBOURNE "TELEGRAPH.")

The third ordinary general meeting , of shareholders in the Kauri Timber Company, Limited, was held in the City Bank-hall, at the corner ot Collins and Elizabeth streets, Melbourne, recently. The chair was occu pied by the chairman of directors, Mr John Sharp, and there was a good attendant of shareholders. The Chairman moved the adoption of the report and balance - sheet, which have already been published. In doing so he felt that he could congratulate the shareholders on the succeae that had attended the Company, for considering tho great quantity of work which was necessary in organising such a company, they had done very well. He desired, however, to make some remarks with reference to the figures which wore before them in the balancesheet. It was well known to all the sharehofders that the vendor's profit was taken out in 150,000 fully paid-up shares, amounting to £300,000, the greater portion of which, as they were aware, had been distributed amongst shareholders willing to release the vendor's guarantee. The £300,000 was included in the amount set out as properties and stock, viz., £1,068,589 18s 7d. He made this explanation so that there could be no misunderstanding in the minds of anyone on the subject. The stocks at all the branches hud been curefully taken and wore valued ab £236,762 18a lid. To > this had been added the stock ot mill stores amounting to £11,932 Is lOd. The stores branch of the business was of growing importance, and the directors had under consideration a scheme for its extension which he hoped and believed would result in increased profits. The preliminary expenses connected with the floating of the Company amounted to £7,511 0s 7d, and he thought they w«uld all agree with him that tb was a very moderate bum. Of this amount the directors proposed to wipe off £1,511 0s 7d, and the balance during the next, five years, It was felt that it was better to extend the payment of tho money over that period so as to enable the shareholders to have a fair dividend. During the year the directors had obtained advances to the extent of £250,000 on the Company's debenture issue of £300,000. Since the closing of the books live per cent, debentures at ten years' currency had been floated on the London market, and. the advances from the banks repaid out of tha proceeds. The price obtained, taking into account all expenses, wae not so favourable as was anticipated, bub the directors thought it wiser to accept it rather than call up so large a sum from the shareholders. As they would notice, the directors proposed to appropriate from the profits a sum. of .£lO,OOO annually to form. a sinking fund ,for the redemption of the debenture issue. Turning -to the profit and loss account, it would bo acknowledged that when all the difficulties were, considered, the result' was very satisfactory. The expenses during tho amalgamation had beon heavy, but the business at all the branches was now so well controlled that a considerable reduction in the working expenses of the current year would be effected. The business done during the year had been much less than was anticipated, there having been a great falling off in the local consumption, and the profits had consequently been decreased. The total sales amounted to 35,000,000 superfeet, and there was every prospect ot an increased consumption, as the Home markets were opening up in favour of kauri. The directors were also looking about for ooher markets, and he might mention that shipments had been made to London, Glasgow, and Shanghai, where there was every prospect of a profitable business being done. The Company had four or five vessels under charter, and intended sending shipments to Liverpool, Newcustlo-on-Tyne, and other large home Markets. The prices which were obtained were very good, and the prospects ot an increasing trade being done were also good. The next subject, he wished to touch upon was," the redistribution of paid-up shares. •• They would notico in the report- -that the result of the special resolutions which were unanimously carried. on the.<:23rd, July wa's -ph&b 381,735 contributing, shares had released the vendor's guarantee/ leaving only 68,265 contributing shares, upon which a dividend of 10 per cent, per annu-m was guaranteed for four years. By the terms of the agreement the dividend on-the whole of the paidup shares would be paid to the trustees thereby appointed. That money at6percenb. per annum would amount to £18,000, and the trustees out of that sum would make up the dividend to 10 per cent, on tho 68,265 contributing shares, the holders of which had not realised the'guarantee, therebyabsorbing a sum of £2,730 12s, and leaving in their hands the amount of £15,569 Ba, He had been requested to intimate that the trustees would hold and invest this balance on behalf of the holders of paid-up shares to meet any claim that might arise under the guarantee. They would, however, release one-half of the paid-up shares as soon as the redistribution under the agreement could be ascertained, and the new scrip prepared. The trustees also hoped at the next annual meeting to be in a position to announce that they would relieve the whole of the balance of the' paid-up shares, and the whole or the greater portion of the dividends. ' A shareholder : If you release all the "shares what guarantee have you then ?

The Chairman, in conclusion, referred in complimentary terms to the work done by the Auckland Board. The managing director (Mr George Holdehip) had been unremitting in his attention, and was getting the business into such a state of organisation that anyone could work it. By the balance-sheet it would bo seen that tho time for balancing the books was August, during which month the weather was very wet in New Zealand, and great difficulty was experienced in getting to the mills. The directors were, therefore, considering the advisability of altering the date to December, in order to facilitate the business. He mentioned this fact so that should an extraordinary meeting'bo called, they would not be astonished. He had great pleasure in moving the adoption of the report and balance-sheet. Dr. James seconded the motion, which was agreed to. -."•.< A shareholder : Is the item in the balancesheet, "Sundry debtors, £62,398 19a Id," unpaid calls? ~ " Mr Robert Harper ( vice-chairman) : No, all the shares are paid up to £1. It is the ordinary open account of money out at the various brunches. A portion of it is money advanced to contractors for cutting timber. Mr Patterson said that he had 1,000 shares in the Company, and wanted to know what security there would be if the sharea were released. Mr Harper explained that the trustees had £15,000 in hand and a large number of shares. It would only take about £8,000 to pay the difference between 6 per cent, dividend and the guaranteed 10 per cent, on the 68,265 shares for the next three years. After several other matters had been explained, Mr Harper aaid as vice-chairman , he desired to say a few words about. the pros* pects of the Company. He thought that it was a first-class trading concern, in which people could put their money with safety. (Applause.) The Chairman had omitted to mention that steps had been taken to have the stock quoted on the Exchange. The reason that this was not done before was because of the changes which Were being made in the Company, and if the stock had been on the market it was thought that shareholders- might have gob frightened' if the prices had been run down, as frequently happened when there was no reason for it. Now, however, the" shares were quoted, and anyone desiring to realise on them could get a good price. He looked forward, in fact, to the time when the shares would be quoted at a considerable premium. (Hear, hear.) The Company was not a speculative venture, but a steady investment. A shareholder : What about the gold on the property ? The Chairman : We have let fifteen acres, but we don't want to say anything about the mining until the property is developed. In the .meantime we shall be concent with getting the dividend out of timber. (Applause.) Messrs 1 . W. H., Tuckett and Andrew Burns, >the retiring auditors, were reelected, and the meeting closed with a vote of thanks to the Chairman.