221
Shortly before his death, Mr. Rennie issued a statement showing the business for the first eleven months of operation to have yielded a profit of 16 per cent on the $1,000,000 capital stock. The report was received with incredulity by the American millers, who regarded the details as showing a rather sickly condition of affairs. Of the total of $2,964,535 assets shown in the statement, the mill site, piers, machinery, plant, lighters, etc., were placed at a valuation of $969,138. The stock on hand was given at $1,544,267, and on consignment $55,619. The cash on hand and in the bank was $6,519, and there was due from sundry debtors $386,543.
On the liability side of the sheet, bills payable were given at $1,305,438.67; outstanding sales at $498,382.28, and on open account, $77,960.30.
The scepticism of the coast millers was caused by knowledge that Mr. Rennie had resold a number of Australian wheat cargoes at a heavy advance over the purchase price, his profits on these cargoes alone reaching a high figure. Noting that in the face of these profits on wheat, he had been unable to make a better showing for the year, and that he was obliged to include “stocks on hand” at an enormous valuation, none of the millers at all familiar with conditions in the Orient would believe that there had been any profit.
As matters now stand, the mill is closed down; both mill and warehouse are overrun with weevil; and greater part of the stock that has been ground since the mill began operation is unsold and is deteriorating in value, with almost a certainty that at least a portion of it will become a total loss.
Contrary to general reports in this country, there were no Oriental capitalists connected with the enterprise; all of the money was supplied by Mr. Rennie's British friends. The failure to attract Chinese capital to the enterprise was undoubtedly a heavy blow to Mr. Rennie, for his best customers, whose trade had given him such prestige, refused to buy the new flour; they remained loyal to the old "chops"; Mr. Wilcox sold direct to them and allowed them the commission which he had formerly paid to Mr. Rennie,
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221
Shortly before his death, Mr. Rennie issued a statement showing the business for the first eleven months of operation to have yielded a profit of 16 per cent on the $1,000,000 capital stock. The report was received with incredulity by the American millers, who regarded the details as showing a rather sickly condition of affairs. Of the total of $2,964,535 assets shown in the statement, the mill site, piers, machinery, plant, lighters, etc., were placed at a valuation of $969,138. The stock on hand was given at $1,544,267, and on consignment $55,619. The cash on hand and in the bank was $6,519, and there was due from sundry debtors $386,543.
On the liability side of the sheet, bills payable were given at $1,305,438.67; outstanding sales at $498,382.28, and on open account, $77,960.30.
The scepticism of the coast millers was caused by knowledge that Mr. Rennie had resold a number of Australian wheat cargoes at a heavy advance over the purchase price, his profits on these cargoes alone reaching a high figure. Noting that in the face of these profits on wheat, he had been unable to make a better showing for the year, and that he was obliged to include “stocks on hand” at an enormous valuation, none of the millers at all familiar with conditions in the Orient would believe that there had been any profit.
As matters now stand, the mill is closed down; both mill and warehouse are overrun with weevil; and greater part of the stock that has been ground since the mill began operation is unsold and is deteriorating in value, with almost a certainty that at least a portion of it will become a total loss.
Contrary to general reports in this country, there were no Oriental capitalists connected with the enterprise; all of the money was supplied by Mr. Rennie's British friends. The failure to attract Chinese capital to the enterprise was undoubtedly a heavy blow to Mr. Rennie, for his best customers, whose trade had given him such prestige, refused to buy the new flour; they remained loyal to the old "chops"; Mr. Wilcox sold direct to them and allowed them the commission which he had formerly paid to Mr. Rennie,
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