BANKS PENINSULA FARMERS' CLUB.

Akaroa Mail and Banks Peninsula Advertiser, Volume VI, Issue 566, 16 December 1881, Page 2

BANKS PENINSULA FARMERS' CLUB.

A meeting of this c!ub was held at Wasckerlo's Hotel on Tuesday. About twenty-five members were present, and the President, Mr Coll McDonald, occupied the chair. He said that the meeting had been adjourned from the Head of the Bay to allow an accountant to inspect the accounts re the Orari shipment of cheese. The accountant, Mr McGregor, was in attendance, and would lay his report hefore them. The N.Z L. & M. A. Company had, however, since sent a communication and also corrected account pales, which ho thought were better than the others, for they brought every one in a creditor. He wjijj advised that a copy of this letter would

be sent to every shipper of cheeso by the Orari, but as they had not yet got them, he. would read it:—

New Zealand Loan and Mercantile Agency Company, Limited. Cliristchurcl). 10th Dec, 1881. The President, Bimk.s Peninsula Farmers' Club, Akaroa. Sir, —My attention has been directed to the Akaroa Mail of 6th inst., which contains a detailed report of a meeting of your association held at the Head of the Bay on Saturday last.

As your association has chosen publicly to refer to company's treatment of the shipment of cheese per Orari in a most unjust and unwarrantable manner, and has made statements which are wholly at variance with truth before ever vouchsafing to us the ordinary business courtesy of seeking an explanation, I take occasion to review the circumstances of the shipment as far as the company is concerned, and am quite satisfied to abide by the verdict of your members and the public. Under other circumstances I might have been tempted to imitate the tone adopted by several of your members, but being convinced that the majority of those present had no sympathy with the totally unfair criticism which was indulged in, and that those who spoke so strongly were either ignorant of the facts or were simply actuated by a disposition to place blame for the failure of the experiment on shoulders other than their own, without any regard of fair play. I content myself by a simple statement of facts.

In April of the present year I was interviewed by your Secretary, Mr- Duxbury, and several other gentlemen, and informed that the association had arranged with the New Zealand Shipping Company for a certain amount of space in the Orari, that space to be converted into a specially constructed chamber for the reception of a large quantity of cheese, such chamber to be kept, if possible, at a uniform temperature throughout the voyage by the aid of certain chemicals.

I was asked to arrange that our company in London should act as consignee and dispose of it to the best advantage on arrival.

The freight (Id per lb on shipping weight) had been previously agreed upon between your representative and the Shipping Company, the various preliminaries had been arranged, and all we had to do on this side was to make out bills of lading, effect insurances and pass Customs entries.

As far, therefore, as the cheese itself was concerned, our company's first duties commenced when the Orari broke bulk in the London Docks and prepared to dis charge the produce.

It must not be overlooked that we had no control whatever over the manufacture, curing, packing, stowage, and conveyance of the cheese. Let the report of our London office (which was communicated to yon some time ago) substantiated by tiie evidence of the brokers, Messrs Samuel Paget and Sons, one of tho most Jespectable houses in the trade, tell its own tale.

"CHEESE PER ORAM."

"The Or-iri arrived in Dwkon Ist inst., and on the following day proceeded to discharge cargo. We were present during tin- 1 landing of 242 cases, and subsequently saw the remainder of the consignment. Aftr-r careful examination of the whole \v« transmitted on 6th inst., a telegram to tlie effect tliat chiefly owing 'to the arrangements for stowage the whole shipment was spoiled. The principal reason of the failure of this shipment to arrive hero in the good order anticipated by shipper*, was undoubtedly the heat to" which it whs exposed in the ahip's hold. Opt Mosey reports that the arrangements lor (■doling the temperature of that part of the vessel in which the cheese was stowed proved on trial to lie defective, certain chemical details having been overlooked by means of which the application of the freezing mixture became inoperative. On his return to Canterbury he will explain the whole matter to you for the benefit of constituents, and in the meantime we have obtained from him a copy of the journal that he kept during the voyage, recording the temperature day by day. In addition to the heat of the ship, a further cause of damage lay in the f.iet that many of the cheeses of which the consignment was composed were immature and unripe for shipment. These gave way at an early period of the voyage, and by infection materially contributed towards the impending decomposition of the remainder.

When the "Orari" broke bulk the stench arising from the hold gave ample evidence of the condition of the shipment. When the cases was landed thin evidence was fully confirmed. Most of the cheeses were blackened, some were hard outside, and full of soft spongy matter within, others were crumbly and broken, and many more were almost entirely in a liquid state. The enses were covered with slime and swarmed with maggots and flies. Wo had great difficulty in finding storage room in London wherein the cheese could be inspected by buyers, wharfingers refusing to take it in on ihe ground that it would seriously prejudice their stocks by contamination. Finally, however, it was brought under the notice of the trade and after several unsuccessful attempts to induce metro politan buyer?, to purchase, it was sold to a provincial house at 18s per cwt. Considering its condition, and especially in view of the large quantity which was absolutely putrid and fit only for manure, this price was all we could reasonably expect.

The sale was made in blocks as the only feasible method of securing fair values, and although thereby a few con--stituents may possibly reap a trillingbenefit at the expense of others whose shipments were slightly less unsound, the margin of difference is on the wliole almost inappreciable. We feel convinced that by this method alone could the interests of shippers as a body have been adequately protected. The adjustment of the proceeds will be a matter of unusuai complication, owing to the obliteration i>y slime of many of the marks on the cases.

We Kent yon a telegram on 12th inst. advising the sale, and now hand you copy of t'i(3 relative contract, We also hand you copy of Messrs Page and Son's formal report on the shipment, which you will of coarse read in the light of th«> foregoing remarks. You will no doubt also understand that special reports on particular parcels could not be furnished while so many murks were undecipherable."

Copy of report by Mossrs Page and Son : —" We have examined 710 cases of cheese ex " Oraii " and find them to have

been very badly damngod by heat. We consider that there is no difference in the market value of the various marks. Valuation, 18s per cwt "

Will any sensible and unprejudiced man affirm that our company could hnve converted the putrid mays into tlie sound ripe article, or could have done otherwise than make an effort to get full market value for the damaged stuff.

After the sale was effected our London friends, at tlie instance of your association, attempted to supply separate account sales for each lot, but owing to the multiplicity of lots and to the obliteration of marks on the cases, and it was a work of extreme difficulty.

You are doubtless aware that our London office, prior to the delivery of the cheese by the ship, had to pay to the New Zealand Shipping Co. the freight agreed upon between yourselves and the Shipping Co., a sum of £359 8s lid, and as the bills of lading only specified the said total sum and did not detail the weight of encii individual lot. onr London office could only strike an average per case and leave us to adjust as between the various owners on this side.

We did so, and furnished you with a detailed list of the actual freight for each, lot computed upon the weights supplied to v.« by your secretary, together with the batch of account sales sent forward from London, thus enabling you to adjust the matter with the utmost ease.

At your meeting, according to the published report, the existence of the schedule of actual freight chargeable against each lot was not disclosed, and as this must have been self-explanatory to any intelligent mind, and would have made it clear that each of the shippers was entitled to receive a balance instead of some of them being returned as owing the company several pounds, lam at a loss to know why it was kept in the background. In case, however, the document I have alluded to has been mis'aid or that uome of the shippers are still a little hazy on the point, I have taken the trouble to prepare a fresh set of account sales, in which are inserted the actual freight payable on each lot instead of the average rate per case. These will show (as the information already supplied should have done) that each shipper is a creditor. The summary of the account sales indicates the following result: — cwt qr lb £ s d 559 0 8, at 18a per cwt ... 503 3 4 Less Charges. Freight on 82,163 lb, at Id per lb 342 6 11 Primage, 5 per cent, on freight 17 2 0 Interest on freight 3 119 Dock, wharfage, and landing charges 54 12 1 Brokerage 10 1 5 Commission 12 11 2 Stamp duty 0 4 G 440 9 10 Nft proceeds in London 62 13 6 Lessinsurarice and shipping , 28 14 6 Telegrams to London 5 15 1 34 9 7 Total net proceeds... 28 311 It will, therefore, be observed that our company's remuneration for its work was £12 11s 2d, a sum I make hold to say that would hardly p;iy for the clerical work which has been done in connection with the transaction. Permit me to direct attention to the fact tliMt whereas 734 cwt of cheese were shipped, only 559 cwt were received and sold, thus demonstrating the extent of the damage sustained by tho consignments.

Personally, I took the greatest interest in the experiment, invariably treated the representatives of your association with the utmost courtesy, acknowledged your communications with promptitude and care, and in return our company has been subjected to charges and misrepresentations winch it is manifest your association cannot justify in the smallest decree.

Ah one of your members has spoken of resorting to the Supreme Court, I may state that nothing would give me greater pleasure than to have the whole circumstances ventilated in a court of law , , so completely satisfied do I feel, that our company's treatment of your interests would be proved to have exhibited the utmost care and judgment, and our charges would bo considered in the highest degree reasonablo and fair.

We not only invite, but wo challenge the strictest investigation of oi.r accounts, and in order that the injustice done may be to some extent remedied, we desire that the same publicity shall be given to this communication as was afforded to the proceedings of your association reported in the Akaiwa Mail.

In order that there may bo no misconception of facts on the part of any of your members, I am taking steps to have a copy of this letter placed in each of their hands.—Yours, etc.,

John Cooke,

Manager.

LIST OF ENCLOSURES, 57 Account Sales.

Statement showing differences in freight (averaged and actual), and proceeds per amended account sales.

Summary of charges on cheose

Mt McGregor said he had prepared a report as requested, on the account sales tirst forwarded. Of course these new nccounts now sent would make a great difference, for the chopping and changing made some- of the shippers, who were foimerly brought in as having- large debits, creditors. Ho would read his report, which was as follows :—

Akaroa, 12th Dec, 1881

Gentlemen, —I have the honor to report in connection with a shipment of 64(5 cases of cheese, shipped by 57 members of your club to London on April last, in the New Zealand Shipping Company's ship Orari, and consigned to the N.Z. Loan and Mercantile Agency Company, Limited. The London account sales, the account current and other documents having been put into my hands by your secretary, Mr Duxbury, 1 find, after a careful examination of all the accounts, tnat they are cor rcctly made up in accordance with trie data supplied, and that the credit balance of £20 los 4d on the whole transaction is coriect. For the purposes of reference and comparison I have divided the account sales into two classes of Dr. and Cr., the former represented by 23 shippers and the latter by 3-1 shippers. A detailed and tabulated

ftnti'Uient of each account is attached hereto. It may, however, simplify the statement to the members of the club if I* remark on each of the headings in the accounts seriatim.

Ist. The charge for interest on freight and primage, £3 11s 9d, is a usual and reasonable one.

2nd. The dock, wharf, ami landing charges in London it is impossible to cheek, hut they are no doubt correct, as they are equally levied on the weights of cheese sold, and amount in the total to £54 12s Id, or £10 7s per cent, on gross amount realised.

3rd. The charges for brokerage and commission are as I understand the usual charges, and amount in the former case to £10 Is sd, and in the latter to £12 11s 2d, or 44 per cent on £503 3s 4d.

4th. Beiore remarking on the important ques ion of freight, the great disparity between the number of lbs of cheese as appears from the Secretary's account to have been shipped, and the amount accounted for as actually sold in London is very great and this no doubt is one of the causes of the loss on the venture. The numbers of lbs as given by numbers to the Secretary as being shipped in Lvttellon was 82,334'b5, whiie only 62,5081bs ara bought to charge in the account sales being a deficiency of 19.8261bs or 24 per cent. In other words, for every lOOlbs of cheese that left Lyttelton only 76 appear to have reached London

The causes that lead to this great loss form no part of the scope of my report, and it will remain for the members of the clul> to consider the question. It will, however, be seen from the tabulated statement that the lot of cheese forming the debtor part of the shipment, and which no doubt occupied a larger space per lb, shows even a higher loss per cent than the cr dit lot, viz.. 24 per cent. The additional space being evidently of no advantage.

Much of the apparent confusion in the individual account sales result from the way in which the freight has beon levied.

I understand an agreement was come to by the officers of the club and the manager of the Shipping Company, that the charge for freight was to bo a fixed one of Id (one penny) per lb. On this understanding the total amount of freight chargeab.e on the shipment would be £343 Is 2d being tlie amount on the quantity said to be shipped, viz., 82,334 at Id. The total amount actually charged far freight is £3GG 17* 6d, showing an overcharge of £23 lG.s -Id.

It in difficult without the measurement of the cases to ascertain the exact principle on which this last charge has bee ' made, and feeling the difficulty I applied to the manager, Mr Cooke, of the Company for the necessary information, ar.d that gentleman replied by telegram, herewith, that he had fully written the President and Secretary on the subject, and no doubt the difference oi ! freight is capable of explanation when it is observed that 455 cases constituting the credit portion of the shipment contained on an average 109£lbs, while th« 11)1 cases constituting the debtor portion of th« shipment contained an average of only GO l-sth lbs. The average cost pur case of landing the former in London heimr 13s 4 5-Bd, ami of Mio latter 15h 3-8(1, though containing only about a half of the former quantity —shortly it ••ost 1*55 pence to land tins credit ot in London, and 2'Bl pence the debtor. The average cost of the whole shipment being 14s 6£d per case or 1 80 pence per lb.

A glance at the statement will show that some shippers were able to pack in one• instance 155381 bs in 14 cases, whi c another mem her Could only get 9641 bs into the same number of cases, presumably of the above average weights. A differonce of 5741b5, and instances of a similar nature might be easily multiplied. And no doubt the ship took precaution to protect itself against this waste of valuable space, and hence the difference of individual charges for freight arise.

The gross result of the shipment in casli is £503 3s 4d, equal to 193 pence per lb, mid the gross charges are £482 Bs, equal to I*Bs pence per lb, or a prolit balance of £20 15s 4d, equal to 0-08 pence per ib.

The credit tabular statement shows a balance of £78 3s Id to the good, but from this has to be deducted a pro rata amount of £34 9s 7d charges for Marine Insurances and cablegrams in Lyttelton account, viz., £27 10s Id, leaving a balance of net profit of £50 13s 4d. The debtor statement shows a loss of £22 18s 2d and to this has to be added £6 19s 6d its proportion of the at>ovo insurance arid cablegrams, making thu total loss £29 17s Bd, bearing an available balance for division without collecting the above losses of £20 15s 4d as before stated, as total credit.

I hay« now respectfully to suggest, subject to the approval of the dud, that the above credit balance be divided amongst the 34 credit shippers pro rata representing 49,862 ibs cheese, the division would amount to 0*999 pence, or nearly the tenth of «a penny per II). Should the 23 debtor shippers, representing 12,6461b5, pay up their deficiency of £29 17s Bd, there would romain an available balance of £o0 I3s for division amongst the credit shippers, or C.24 pence, nearly a farthing per lb There are no doubt legal difficulties in the way of compelling the unfortunate debtor shippers to make a further loss, and it will be for tlie club with the figures before them to say what course thoy intend to pursue. 1 much regret that it has fallen to my lot to make"a statement that financially must be very unsatisfactory to all concerned, specially when all the additional charges are borne in mind, but after looking at the whole circumstances the adage of the spilt milk will readily commend itself to the members of the club —Yours, etc.,

A. I. McGregor. Accountant.

p.S.—Since writing the above report, the President of the club informs me that a further num of £7 8s Id. has been placed io credit of cheese shipment. This addition to the previous balance will ienve the sum of £28 3s lid. —A. I. Mcgkegok.

Mr Duxbury said that in the communication from theN.Z.L.& M.A. Co.itwasstated that at their last meeting a M.-hcdule making it clear that each shipper was to receive v balance was not mentioned and appeared to have Iteen kept hack. He wished distinctly to state that the only do< uments he h d received had Leen placed lief ore them. They consi.-ted ol; account sales which showed some to be creditors and some to be debtors to a considerable amount, and a schedule, which was a copy of these accounts, and of course stated the same thing. He entirely denied ever seeing

any document that showed that all the shippers were credited, till he had seentho amended account sales that day. The President regretted that (he account sales they had now received had not been sent first, as if so, every one would have been satisfied. The great cause of dissatisfaction had been that all the cheese had been sold at the same price asd yet some were represented as having to pay £6 or £7, and others as having to receive up to £14.

Mr McKay thought the President should write flat denial of the statement referred to. No document showing that all were credited hud been sent. Mr Duxbury said ths accounts had been placed in the hands of a public accountant That gentlement was present and he aeked him if it was clear from the accounts which had been sent in the first instance, that each shipper was to receive a balance. 1 Mr McGregor said that on the contrary] the accounts represented some shippera as being debtors, and others as beinjl creditors. JM Mr E. B. Chappell thought the best wsß to make the matter understood would bfl to publish the account sales first sent an« also those they had just received. TJmm public would then judge for themselvfM whether there was any discrepancy cr not. Mr W. Barnett then moved " That the Manager of the N.Z.L. and M.A. Co. be written to, informing him that the accounts presented at the last meeting of the Clnb and given in the Agency's account current of date of Oct. 6th last, show debtor and creditor accounie in several cases, and that the document referred to in his communication showing every shipper a creditor, was not received by the officers of the Club."

Seconded by Mr McKay and carried. The Piesident then read the following letter from the N.Z.L. and M.A. Co.:—

Christchurch, 10th Dec, 1881

Sir, —Continuing my advices of to-day, I have to hand you cheque for £7 8s 7d, which sum accrues to your association under the following circumstances. Two Leeston clients also shipped a quantity of cheese per Orari, and received account sales at Ihe same time as yours. In the hurry of dealing with these documents, which were sent out the day prior to yours, we overlooked the fact that the freight therein was also averaged at per case, and as in both instances this method was to the advantage of the two shippers referred to. we had to make the adjustment, which necessarily calls for the amount so adjusted b«ing handed to you. You will observe that the total net proceeds of the account sales agrees with the sums remitted, — Yours, etc.,

Jno. Cooke, Manager.

After a few remarks from members, the President said they should not criticise too closely but tnko their disappointment with a good grace. They had gained experience and after all if they had lost in one way by the shipment they had gained in another, for it had relieved the market and „ prices were consequently higher. Tho'y could now get 5d per lb for their chpeso in Dunedin, and if it had not been lor getting rid of such a quantity he that the new cheese would hare been almost unsaleable, at the same time he sympathised heartily with the loser by the shipment. Mr Barnett regretted the loss had not fallen more evenly. Those who had sent a small quantity of cheese had lost little, but the more enterprising shippers of large quantities had suffered severely. After a few remarks from other speakers, Mr Barnett, sen., said that he was not surprised at the result of the shipment when he heard it. He was on board the Orari shortly before she sailed, and found wool was going to be packed all round the chamber in which the cheese was. Knowing the effect of wool on cheese in a vessel's hold, he had tried to get his cheese ashore again, as ho felt certain that the wool would so raise the temperature as to spoil it. He was too late, however, and had to let it go, mnch to his regret. Mr Ghappell pointed out that some shippers had not paid the Club certain expenses incurred in the shipment. He and others had paid right up. He hoped that when the money was distributed the sums due would be kept back from the persons owing them.

After further conversation Mr Burnett said that the old accounts stated that / whereas one man had £6 to pay another /•) had £14 to receive. He did not think they , J should have got those who were brought in as debtors to pay the money, and he acknowledged he thought at the time that it was exceedingly hard, as by the old** , - v statement some of the larger shippers were brought in debtors, whereae those who had >, sent a very small quantity had something to receive. He thought they should therefore accept the new acconnts as furnished, get the accounts properly adjusted, and hand over to each shippei his just chare. Mr McGregor said he did not intend to charge anything for his trouble in looking over the accounts. It had been a loosing aitair for all concerned and he was willing to give his help, (Applause.)

Mr Chappell said that he thought it should be understood that freightage and subscriptions shoiiid be paid before any shipper received his share of the money. He proposed —•' That before any member of the club receives any moneys from the sale of cheese per ship he be handed his accounts for freight Lyttelton and subscriptions due, and the above be settled before any money is paid." Seconded by Mr Johnson and Mr W. Barnett moved a vote of to Mr McGregor for his great kindness in' preparing a report on the accounts without remuneration.

This was seconded by Mr P. Hartetone and carried with applause.

Mr McGregor suitably acknowledged the compliment. The following letter from Mr S. Watkins was read :—

Akaroa, Bth Dec, 1881. i Gentlemen, —On behalf of the I beg to acknowledge with thanks receipt of cheque for £3 10s. Your you will see I have acted upon withonit delay. Do you think the gainers of/ttfo various prizes would sooner hare (if curable) silver medals, or the cash. I • think the medals would be more vAlned than money. I wish to have your opinion" on this matter before our meeting on ■ Monday rest.—Yours etc., Stepiien W atkins, Secretary. It was unanimously agreed that as the prizes were so small anil the time so short, it would be much better -not. to hive medals but to give the <j-<sh. After discussion tv.»>.i.i kit he appoint-

tnent of a judge for cheese at the coming exhibition, as requested by Mr Watkins, during whioh it was stated that Mr Bowron could not possibly be present, it Was moved by Mr Checkley and seconded by Mr Chappell "That the Hon Secretary write to Mr Candy in the first place, and in the event of his declining, to Mr J. P. Jameson, asking them to become judgee of the cheese, and that in the event of neither of those gentlemen agreeing to net, that tho Hon. Secretary endeavor to get some gentleman to act from among the visitoison Kogatta Day." This was carried, the opinion, however, being freely expressed that it was clearly the duty of the Industrial Association to appoint a judge. Mr Or. Checkley thought that they should have regular monthly meetings. By combining, and discussing matters of interest they might be tnutally benefited. Mr Chappell would go further and suggest they might meet once a fortnight, having alternate meetings at Akaroa and the Head ot the Bay, At these meetings papers should be read, and disscusaed on matters of interest to farmers. The matter was left over till nest meeting Mr McGregor was appointed auditor of the Clubs accounts. The meeting then adjourned till Saturday, Jan. Uth, 1882, at the Head of the Bay.