EGMONT BOX CO., LTD.

Taranaki Daily News, 9 August 1916, Page 3

EGMONT BOX CO., LTD.

ANNUAL MEETING. The tenth animal meeting of the C«mont Box Company, Ltd., was held in the Foresters' Hall, KUkam," y.-stord iv, Mr. J. B. Murdoch, chairman of directors, presiding over a larae attendance, which included delegates" - from the following dairy factories:"Leppcrton (H. B. I.enper), Patua (W. Honevficld), Kaimata ((!. Caliper), Ararata (T. Winksl. Maketawa (J. Brown), Tikorangi (C. Foreman), MangatoW (J. Marx), Eltham (H. D. Forsvth). Normanby (J. K. Riddle), .101 l Co. (T. Walsh)', Piliama (R. Lambie), Warea (J. Burgess], Awatuna (.1. Ferguson), Kaponga (W. O'Neill), Lowaartli (E. Cray).' Mercmere (H. Williams), Cardiff '(W. Richards), Whonuakura (W. Hoiicyfickl], Manutnhi (R. Hamilton), Moll's l\\. Powdrell). Ngaere (W. Morrison). Piiliama (S. Faronhar), Waitara-Tars-naki (J. 11. Smith), Mangorei ((]. Marsh), Riverdale (J. Hick'ev), Moa Farmers" (T. Bowler), Stratford Farmers' (W. H. Wercl, Hawera. (H. Spratt], Midhirst {W. Skedgewell), and Kau. pokonui (W. Powdrell)." REPORT AND BALANCE-SHEET. The report disclosed a successful rear's operations, the turnover showing an increase of approximately 10 percent., as compared with the previous year, but, owing to the increase in freights, wages, taxation, and cost of material, it had been impossible to maintain the profits made in previous years. After writing off £4,0 (is Sd for bad debts, £3OO Ids Id for exhausted bush, and £2560 14s for depreciation, a surnln.s of £2403 1J S fid remained to be dealt with. The directors recommended that a dividend of a per cent, per annum be paid on paid-up share capital. This would absorb £2215 17s, leaving a balance of £IS7 14s Gd to be carried forward.

The balance-sheet showed capital and liabilities, including reserve account £3037 lis Sd, premium reserve account £2022 Rs 4d, and balance on year's operations £2403 lis fid, to be £112,330 15 3 sdi property and assets £112,330 15s sd. The profit and loss account sho-ved receipts to have been £4.5,425 10s iOd, and the expenditure £43,021 19s 4d.

lii moving the adoption of the report and balance-sheet, the chairman referred to one item, Bank of N.Z. debentures £30,000, which had not appeared in the capital account previously. T!:e company's overdraft was over £20,000, he said, and £30,000 was their limit. Of the property at Ohutu practically 1200 acres were left, and this tract would last four or five years. As the bush was gradually cut out the tram line had to be extended, and over £3OOO had been expended in this way and he thought the estimate for the tramway, £l7,fl"iS, was not excessive. The item, freehold property £ISOO 13s Id, included property at Eltham and Ohutu. The valuation of the company's leasehold property, :-:i250 5s sd, could, he thought, be trebled, if they wanted to dispose of it. The amount for accounts receivable, £332(1 10s !)d, was a little greater, hut this had been reduced since the balance-sheet was made up, and was now only .CSOO.odd. Referring to the profit and loss account, the chairman said that such Items as annual license, audit fee, nails, oils, etc., were previously placed under charges. Freight charges had been increased, and land and income-tax showed an increase of over £-!00. The.item, commission £l2O Us 4d, was a result of the company doing their own insurance, the secretary having obtained the agencies of various companies.

The total amount of timber cut was 4,760,409 ft, and the company had purchased 024,610 ft; 102,305 butter boxes and 200,325 cheese crates had been manufactured, these showing a substantial increase. The company had received £14,203 10s fid for building timber, the year for this being the host they had yet had; the discount on the salc s of this amounted to £1155 0s Id. Last year, the prices of crates and boxes were increased, and this addition realised £I3OO, but this was an inadequate amount, in view of the extra cost of production. I:i concluding, the chairman said the position of the company was very satisfactory, and he considered that there would he no difficulty in continuing to supply the requirements of the industry. Mr. R. Dingle seconded the motion, and congratulated the chairman on the plain manner in which he had put the position of the company before the meeting. Mr. ./. Marx' said that the only thing he had to complain about was that the prices of boxes and crates had not been siilliciently increased last year, in view of the extra cost of railage, taxation, ,ctc. War conditions had altered everything, and the directors must conform to them, and raise their prices. The chairman stated that when the prices were raised the directors did not foresee to what extent the extra cost of production would go. Mr. J. B. Connett differed with Mr. Marx. Looking at the balance-sheet lie considered 'that "depreciation" had been stal'ved, to provide for the 5 per cent, dividend. With a turnover of oi-er £14,(10(1 for timber, he thought there should have been a larger profit. What was the competition the Box Company had to contend with? They were, apparently selling at low prices and starving the company, and this matter required adjustment. The chairman said that nearly all the building timber had been sold to shareholders. The prices had now been revised, and should return a fairly good n numeration. The company, they should remember, was up against competition in the building trade that, it did not have in its other brunch of the indusirv.

Mi-. Gibson (Eahotu) thought that the Oliutu H'amway valuation, £l'i,'JsS, was too high to accept as an asset. As the timber there would only last four or five years, it appeared to the speaker that the company was going to llilve a very big uillstonc round its neck. The item "Coal, nails, oils, etc.," :U(i24 lis fed in the list of assets appeared to him to be an extraordinarily large one for the company when compared with ;E7f> last year. The freightage, lie considered, was too variable, and he was not quite satisfied with that item, nor with wages and salaries which, he considered, showed too much increase. The chairman sail that the directors Jiad not written oft so much for "exhausted bush, - ' owing to the fact that last year they had purchased a good quantity of timber. Over £3OOO had been spent altogether on tramways during the year. The directors had been studying economy throughout the year, init they had to meet certain circumstances. 'Some of the timiier they had purchased had been sent to Eltham to be made into crates, and this had materially increased the railage. In reply to Mr. AVilliams (Meremere), the chairman stated that the company feqijired a good area of the

'•cut-out" land, but several blocks were leased after being grassed. They could not use ''cut-out" land over which the company only had a milling right. In reply to other speakers, the chairman said more timber had been purchased this year, mainly for boxes and crates. Arrangements" had been nnule to purchase enough for two years, so that the company could face any difficulty or shortage that may appear. The company had purchased timber .every season. " Ho was satisfied that they had a very valuable asset in the Ohutu property.

Mr. Marx urged that the depreciation on the Ohutu tramway should be increased every year, in view of the fact that the bush would be cut out in a lew years. To Mr. fiibson, the chairman stated that ho did not think the directors had ever considered having a resident manager at Ohutu, and another at Eltham, to avoid the heavy travelling incurred by tile one manager The present arrangement was, lie felt sure, the most satisfactory. The report and balanee-shct were then idopted. ELECTION OF DIRECTOR? j Messrs. Burgess and Spratt, who retired from the directorate, by rotation, j were unanimously re-elected. For the vacancy caused by Mr. R. Dingle's resignation, Messrs. J. B. Connett (Bell Block) and Forsyth (Eltham), were nominated. Messrs A. Morton and J. Sim were appointed scrutineers, and the ballot resulted in. Mi. Connett being elected by 'IG votes to 50. AUDITOR^ On the motion of Messrs. Marx and Forsyth, Mr. E. Parrott was re-appoint-ed, auditor at the usual remuneration. GENERAL. On the motion of the chairman, seconded by Mr. Powdrell, the meeting unanimously voted the sum of £3l 10s to the directors, to be divided pro rata, Jor expenses incurred in visiting the company's property on ■ various occasions. On the motion of Messrs W. H. Were and T. Walsh, a hearty vole of thanks was accorded Mr. It. Dingle, by acclamation, foi tin valued services he had rendered as a director, and in other ways.