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ARI's first loss
in 40 years
of trading
Associated Rural Industries Ltd incurred their first Idifc
in more than 40 years of trading, the chairman, Mr M. E.
Farley told shareholders at the company's annual meeting
in Sydney yesterday.
This loss was almost entirely attributable to the serious drought ex
perienced in the Kimberleys which caused heavy loss Of stock and lower
wool production.
"Our agricultural pro
gramme was also very dis
appointing", Mr Farley
said.
He said the losses had
been so severe that the com
pany would not continue to
grow dice this year exccpt
lor about 100 acres in order
to conserve seed.
" The hc.'ivy loss in rice
is due lo our inability to
obtain access to the right
strain of rice lo be grown
in the area, although the
area itself is very suitable
for ricegrowing.
Mr Farley said cotton
growing was a success in
the East Kimberleys and
some 600 acres would be
planted this year. , j
Directors proposed to dis
pose of the East Kimberleys
property in order to gain
liquidity.
"When this property is
sold, the modern rice mill
installed there will be
moved lo. either our West
Kimberleys property or to
New South Wales.
"With the curtailment of
agricultural crops in the
west, a loss may he cxpcct
ed in the currcnt year, but
it will be considerably less
than that incurred in the
year under review", he said.
Mr Farley said dividends
could not be expected from
the company's investment
in Murrumbidgee Television
Ltd until 1968.
Sales in the first five
months of the current year
almost equalled those of the
entire 12 months of last
year, Mr Farley said.
He said if this trend
should continue an increase
iin profit should result.
EZl
EZ Industries Ltd has re
ceived acceptances from
holders of 54 per cent of
the ordinary shares in the
Emu Bay Railway Co Ltd
for its takeover offer.
EZI directors said this in
a circular which had been
sent to Emu Bay share
holders.
The circular said EZT had
also received acceptances
from holders of 45 per cent
of the "B" preference shares
and 28 per cent of the "A"
preference shares.
It added that a share
broker who held or con
trolled the largest group of
shares of all classes in Emu
Bay had forwarded accept
ances for these holdings.
QUI
The chairman of Queens
land Insurance Company
Ltd. told 6hare holders at
the company's annual meet
ing yesterday that depreci
ation on buildings should
be allowable as lax deduc
tion.
The chairman, Mr S. E.
Wilson, said many busines
ses could not meet the de
mands from (heir earnings
lo make necessary provision
for modernisation and re
placement.
He said the total cost of
this expenditure must even
tually be written off.
The company had made a
provision for building re
placement with the transfer
of $500,000 from profit and
loss appropriations.
He said the appropriation
was considered desirable to
provide for replacement or
remodelling of older build
ings
It had also been necessary
to provide some deprecia
tion for existing building
structures, Mr Wilson said.
He pointed out that the
development of city areas
was exercising the minds of
several authorities because it
involved a great deal of re
newal and redevelopment.
"Jt is perhaps opportune
to consider an important
direction in which the Com
monwealth Government
could give valuable and
necessary assistance to the
development".
This was by acceptance of
a reasonable allowance for
depreciation on buildings
for an income tax deduc
tion, Mr Wilson said.
Metals Ex.
Metals Exploration NL
has been granted an option
to acquire the interests of
other members of the
Aberfoyle Tin Develop-
ment partnership in the
Gibsonvale prospect.
Wapet
West Australian Petrol
eum Pty Ltd reported yes
terday that 22{ barrels of
light gravity oil had been
recovered by swabing from
its F.rregulla No 1 wecl.
The well is 250 miles
north of Perth and 15 miles
south of-Mingenew.
The oil was obtained
from a depth of 10,413ft
over a period of three and
a half hours.
Testing of the interval in
the well between 10,413ft
and 10,435ft is now in pro
gress.
Ampol Exploration Ltd
has a one-seventh interest
in Wapet.
Other partners are Shell
Development (Australia)
Ply Ltd, Tcxaco Overseas
Petroleum Co and Cali
fornia Asiatic Oil Co, each
with a two-seventh interest.
Akuri Holdings Ltd, tim
ber and plywood group, ex
pected overall trading would
he profitable in the year to
August 31, the chairman,
Mr W. Kirkhope, told the
annual meeting in Mel
bourne yesterday.
This would bo in the
absence of any further de
cline in the building indus
try, he said.
The company incurred a
$49,231 loss in the latest
year to August 31, and ord
inary dividend was omitted.
Mr Kirkhope said the
group traded profitably in
September and October,
although budget figures were
not being reached.
Vehicle and General In
surance Co (Australia) Ltd
was perfectly happy with
the provision of 51,151,558
in its latest accounts for
unexpired risks, the chair
man, Mr J. W. Cowan,
said in Melbourne yester
day.
He was replying t o
criticism by the Australian
Shareholders' Association
that the provision was too
low.
In a letter to the Mel
bourne Stock Exchange the
association said most in
surance companies fixed on
40 per cent of premium in
come for the year as the
most satisfactory provision
for unexpired risks.
Akuri
$