TIMARU MILLING COMPANY.

Temuka Leader, Issue 1701, 21 February 1888, Page 4

TIMARU MILLING COMPANY.

The fourth annual general meeting of the Timaru Milliog Company was held on Saturday last. There was a good attendance of shareholders, and the Chairman of Directors, Mr John Jackson, presided. Li submitting their annual report and balance-sheet for the year ending Slat December, 1887, the directors expressed regret that, owing to an exceptional year of bad debts, principally incurred in Auckland, and to the falling off in the latter part of the year of the demand for flour, which seriously affected the running time of the mill, and caused wheat purchases, made on the basis of running full time, to result in considerable loss, the outcome of the year’s transactions, after debiting the interim declared to 30th June, shows a debit balance of £1579 13s Bd. The directors recommended that the amount of £2OOO standing in the bosks as a reserve fund be allocated as follows: £IOOO to be written off for depreciation of buildings and machinery, and £IOOO to be placed to the credit of profit and loss account. The mill had been fully employed for about half the year, and for the remainder had been running single shift only. This whs accounted for by the absence of Australian orders, which in the previous year represented between 3000 and 4000 tons. The oatmeal plant as authorised by last meeting had been erected at a cost of £909 17s 3d. The meal produced was of most excellent quality and meets with ready sale. In July last the directors authorised a further issue, to shareholders only, of shares at par, which was responded to to the extent of 90 shares only* A payment of £IOOO was made to Mendelson’s trustees this year, and a further payment of £2OOO arranged for 1888. Stocks was taken on 31st December, and .values certified to by Mr David Stuart. The directors recommended that for the future the annual bidance-sheet bo made up to the last day of February in each year. The mill’s operations would then run concurrently with the grain season. Mr T. W. Hall resigned his seat on the Board io, September last, owing to his removal from Timaru. The retiring directors were Messrs Martin, King, and Morris, who were eligible for re-election. The vacancy caused by the retirement of Mr Hall would also have to be filled. In the balance-sheet the working account shoved that the amount at debit of wheat account was £85,23517s Id, and iho expends of working for 32 month 8 £11,921 3a 7d. The amount to credit 0 sslea’ account was £78,522 8s 4d ; the value of stock on hand £18,002 17s sd, and the balance to debit of profit and loss account £621 14s lid. The profit and loss account showed that bad and doubtful debts were £2176 3s Bd. A dividend of 5 per cent, was paid in June, and no farther dividend was proposed. In moving the adoption of the report the Chairman mnde a long explanation, in the course of which he said that as the business of the Company extended it had to take larger risks, and this accounted for some of the loss. Another reason for loss was that the directors erred in judgment in making the wheat purchases. They were however, not singular in this matter, as people with wiser heads than theirs had made the same error. Another reason the directors gave was the inferior quality of the wheat they had to operate upon. Not being able to produce as good an article as formerly, had naturally curtailed production. He thought the past year’s experience would, perhaps, be a useful lesson for the future. A long debate followed, in which Messrs i. Page, Howell, M. Quinn, J. Shepherd, Mathews, and Pigeon took part. Details of the working expenses of the Company were asked for and given. In reply to one question the Chairman said the Australian demand fell off because they could make flour cheaper there than in Timaru, Just now the mill was running down 20 tons of flour a d»y, and bet'er could not be purchased. The only reason he could adduce for Timaru bakers not using their flour was that they had large contracts to lake out of other flour. Finally the report was adopted. Messra Jas. Sullivan, J. Meikle, and /as. King were reflected directors, and Mr O. O. Matthews was elected to till the vacancy caused by Mr Hall’s

retirement. Messrs Granger and Williams were elected auditors,—Mr Shepherd said the rule that persons managing the company should not be sellers to it, should apply in the ease of this company. He would not relax this rule except in so far as the grower was concerned.— Mr James Bruce, of Timaru, suggested that the stock in the mill should be run down as low as possible, and that at the time of the annual meeting they should only have £2OOO worth .in the mill. He thought it advisable that tenders should be called for coal.—The Chairman said it was because he was agent for the Westport Coal Company that the reflections had been made upon him, and wished to tender his resignation,, but the meeting would not receive it. In reply to another question the Chairman said that a lawodt was pending between Mr Jonas and the Company, but he thought it would be settled. A vote of thanks to the directors and officers terminated the meeting.