INCREASED OUTPUT

Taranaki Daily News, 13 September 1940, Page 2

INCREASED OUTPUT

WAITOTARA LIME WORKS PROFIT EXCEEDS £1000 Increasing its output by 77 per cent., the Waitotara Lime Company, Ltd., made a profit of £1043 last year, it was reported at the annual meeting of shareholders at Hawera yesterday. The year was a very successful one from a business point of view, stated the report presented by the chairman of directors, Mr. T. R. Anderson, who complimented the directorate on the support they had given him during the year on matters relating to the policy of the company, and the works manager, Mr. G. C. Wadsworth, and the secretary, Mr. E. C. Worthington, on the efficient way they attended to the company's affairs. After allowing for a substantial rate of depreciation the profit for the year was £1043. The position of floating assets had improved by the sum of £2595 6s ld. During the year all working accounts for materials were paid promptly, including interest to creditors. A further 437 shares wera issued to farmers, bringing the list of shareholders to 285 members, continued Mr. Anderson, Last year's output was 12,451 tons, compared with 22,044 tons this year, ari indication of the great strides made in production. This increase of 77 per cent. in the output was a direct indication of the growing popularity of the product. At least half a million bags would be required during the coming season, and he urged all lime users to support the company by l-eturning bags promptly and any extra they might have of super or slag bags. Review of First Years. The farmers of to-day stood in the debt of those who had stood loyally to the undertaking, said Mr. K. A. Armstrong, who referred to the satisfactory profit made by the company after five years of difficulties. During the first eight months of the company's existence very serious mistakes were made. Share moneys were urgently required to build the works, and to enable shares to be sold impressive bookings of lime saies were even more urgently required. The present salesman, Mr. L. Hill, was employed, and he sold more shares and more lime than all the other salesmen put together. The board immediateiy bound his services permanently to the company by an agreement providing for a ls a ton gross commission for every ton actually delivered. Out of this commission Mr. Hill was to pay sub-agents, hotel, car, benzine ' and all organising expenses. The continual breakdown of the works resulted in the cancellation of the bulk of his orders, and, incidentally, his only income. However, at that time. and on many similar occasions later, Mr. Hill borrowed and was given sums of money by two splendid directors, and the company was kept going. Early Progress Retarded. Mr. Armstrong referred to many factors which, in the first few years, retarded the company's progress. In August, 1937, the works were burnt down and existing orders had to be cancelled. Again the same two directors assisted. More share money was required, and 1 again the company turned to Mr. Hill. | In May, 1938, State finance was arrang- : ! ed on second mortgage guaranteed by ' ; four directors. Mr. E. C. Worthington was then appointed secretary. In No- ' vember, 1938. the boarcl unanimously 1 passed a resolution authorising the company's seal to be placed on a contract 1 binding Mr. Hill's services exclusively to the company for five years. There were difficulties over analysis, labour, trucks. sacks, and a private road, 1 and early in 1939 further serious finan- ; cial and other troubles were experienc- " ! ed, and the board became divided on :! policy matters. The creditors, including Mr. Hill, assisted nobly, Mr. Anderson ' i rejoined the board, and to-day, 18 • months afterwards, the shareholders ' , were able to see for the first time a very pleasing profit and a future the pi-ospects for which appeared very bright, Mr. Armstrong concluded. Mr. F. Mourie, retiring director, and Mr. H. E. Blyde, were appointed directors. The other retiring director. Mr. P. Stoffel. did not seek re-election. Mr. W. M. Falconer was reappointed auditor. Votes of thanks were accorded the chairman, Mr. Anderson, the directors, secretary, manager ■ nd staff.