EGMONT BOX COMPANY.

Taranaki Daily News, 11 August 1915, Page 3

EGMONT BOX COMPANY.

A.SXUAI, MEETING. {A LIVELY MEETLN'G. (From Our Own Correspondent.) The annual meeting of the Egimont Box Company was held in tic Eit&am Town Hall yesterday, Mr. J. Marx, chairman of directors, presiding, and about forty companies were represented. The chairman, an moving the annual report and balance-sheet, referred to •various items contained in it, and said the company lhad a prosperous year, and a lot of work had been done. While they would not, perhaps, see the results for a little time, yet it would be of great good to the company. Mr. J. Brorwn (Maketawa) asked how ■much had been spent in legal expenses. ■Mr. Marx: About £7OO.

. Mr. fiibson: Surely the meeting should know how much had been received for timiber and boxes. Why were the accounts not kept separate? The Ohaimian: Well, if the meeting •wants it, it can have it, but it has taken nine .years for them to think of it. He said there had been a slight increase in boxes and a decrease in c-heese crates. The company wag paying £30,000 for the Taurewa- bush rights, and had advanced £l7 to the Xatives for timber cut, but had £4OOO to come from the Natives, and had informed the Aotea Maori Land Board that this amount was owing. In answer to a question as to why companies had not paid up their cal's, the chairman stated that lie did not thing there was another company is existence where the money was paid up sti'-proinptly: ; '•!••• •••

' Mr.' Gib Son askiid ;, why the 'Minjian}' , S buildings and properties were shown i's £77fl more than last year, and the tramway rights had also been increa-isd to £5045.

The Chairman: The reason of Hi-: company's buildings being increased by this amount was that now buildings and additions to plant Ijad been made to nearly all tbe companies' properties,. Regarding the tramway increase, a new bridge bad cost £2700, and a tunnel £BOO. and tlie bush was calculated to last five years, 'but the tram would be an asset. To get at the buslh o"n too other half of the property it bad taken a lot of money to make the track to the busb. At the end of five years £15,000 would be written off and £3OOO would be about the value tbe company would get for nts rights. It had been suggested that the local body would take the bridge over when the cempany bad done with it. During the last year, there liad been a very big expenditure on this piece of tramway. Mr, Gibson asked why the inward freights had decreased and outward increased. (Mr. 'Morton: The reasoji why the inward freight lis less is because, formerly, all timber was brought to tbe local factory and manufactured there; .now the cases were made at the Ohuti mi''s, and, while the inward freight was less, the outward freight was, of course, more. Mr. Gibson: AYliy should the fuel bill be increased? The Chairman: Because the company , had .purchased two locomotives, and was burning coal, instead of wood. 'Mr. Pepperell (Bell Block) asked if the company still intended to charge a premium on shares.

The Chairman: We cannot do otherwise. The assets were worth 40s, and why should they let companies come in now, who had stood by and made use of the competition created by the Box Company, and, after nine years, expect to come in at the ordinary rate of shares. Mr. Pepperell: You are keeping out companies who refuse to pay 13'-; 4d premium for shaves, and yet the liox Company only paid a dividend of 6 per cent. The Chairman: The company would be very foolish to give away what it hnd made to suit companies who ought to have joined at the inception of ihe Box Company. The directors were d.iing something to-day that in five years' time

would mean a little fortune to tlie shareholders. If the directors had stood to their ground, in six years' time the whole of the shareholders would have had all their capital repaid, but would have had no timber to make boxes and crates, and the Taurewa property would have eost three or four times more than they had paid for it. Mr. Oibson: Why does the balancesheet show an increase of £S7 in salaries? The Chairman: Because it was necessary to employ an extra office assistant for the increasing business of the concern. Mr. Cray: Can you tell me what the salaries are? The Chairman: Yes, with pleasure. T

get £-'!.>o and travelling expenses, the manager £SOO, engineer £3OO, secretary £273. and two assistants, say, £2OO for tho two. Mr. Cibson: Does the chairman give his whole time to the business? The Chairman: "I give over 00 hours a week, including Sundays." Ho had given the best he could for the company, and if another gentleman took the job on to-morrow lie would want doublethat is. "if ihe is as good as me." (Laughter.; Mr. Gibson: Why is it necessary to have such a number of directors, .seeing the amount spent in travelling expenses? Why could not .the chairman run the concern ? Tho Chairman: I wou'd never satisfy gentlemen like yourself, without'the directors with me. (Loud laughter.) Mr. IPowdrell said that he got 15s a day travelling expenses, and ha<l to pay his oct motor hire, and he was quite satisfied to retire if the shareholders thought he was getting too much. Mr. son moved an amendment that no dividend be paid, and that the amount be added to the capital of the coinpa ny. Mr. Cray seconded, pro, forma, and said that he would not vote for it. The amendment was lost, and the report and balance-sheet were then adopted. ELECTION OF DIRECTORS. THE CHAIRMAN DEFEATED. Messrs. Marx, Morton, Murdoch and J. Brown were nominated for the three seats vacant on the directorate, the first election resulting as follows: Murdoch 94, Morton 94, Marx 73 and Brown 73. It was decided to have another vote taken, between Messrs Marx and Browii, with the result that Mr. Brown was elected by 82 votes to Mr. Marx's 54. Messrs. Murdoch, Morton and Brown were then declared duly elected. Mr. Marx: I thank those gentlemen who have voted for me. The company will never receive better work i than what I have done for yon the last 1 twelve years. Mr. Powdrell: I wish to say that I re- ' sign from the directorate this day, bectuisc I feel that no one has done bet-

ter work for the company than Mr. Marx, and I resign in order that there shall be an election, so as to give Mr. Marx the opportunity to continue as chairman of directors. I feel quite sure my company will uphold mo in the action I am taking. Mr. Marx: I thank you, Mr. Towdrell, (but I cannot accept your suggestion. I regret the way the voting has gone. I was quite prepared to take a rest, but I would have rather been allowed to retire in a different manner. Mr. Murdoch thanked the meeting for his re-election, but regretted losing the services of Mr. Marx. Mr. Morton, in returning thanks, slid that no one had done such good service for the dairy factories as Mi*. Marx had.

Mr. J. Erown also thanked the meeting for his election. He had a good deal of experience in saw-milling, and other matters, and he believed the reason of the chairman's defeat was the dissatisfaction of the shareholders ill the company. But, rather than have any trouble with the company, he would resign now sooner than cause any illfeeling with the directors or the shareholders. Mr. Parrot was re-eleeted auditor.

In accordance with notice of motion, Mr. Marx moved: "That amended article loa of the articles of association of the company he deleted , and the follow-j ing substituted: ' Provided that the basis of allotment of shaves in this company shall he as follows—Four shares for every ton of 'butter and two shares for every ton of cheese produced during t'he previous financial year of the individual shareholders. - ' Mr. Ifarx said that they were leaning too much on the 'bank. Mr. Morton seconded, and hoped that the shareholders would consider it carefully. He said they could not go to the.hank for more 1 irtoney; and £l3',otW \VJis "wanted'"within 'the tat' ' fotf farthtSr dpefntion's 1 at' ; Taul'e\va'. ' "HWy' had timber there to simply tile company for a large number of years, 'but they must have money to develop it. To turn tlliis proposal down was to repudiate the agreement made anil sanctioned by the shareholders at previous annual meetings. The position was a serious one for the company. If they did not get the money, was it not better to distribute the money among the dairy companies sooner than go to the bank? As regards the financial affairs of the company, he defied any one to say that the company was not in a good position, and the sSiares were worth more than iheir face value. The motion was carried without dissent. Mr. Marx said that the directors' fees were 10s per day. This was not enough for the work done, and he moved that a grant of £l4O he made to the directors, to he paid pro rata. This was seconded and carried. Mr. Gibson moved a vote of thanks to Mr. Marx for his past services, which was seconded by Mr. "Were, and carried unanimously hy acclamation. Mr. Marx returned thanks, and the meeting tefr.iinated.