CHRISTCHURCH MEAT COMPANY.

Press, Volume LX, Issue 11508, 14 February 1903, Page 5

CHRISTCHURCH MEAT COMPANY.

i<, . AN2TCTAL MEETDf O. The fifteenth annual meeting of . the Chrietchurch Meat Company, Limited, was held at the Company's offices, Hereford street, Chriatehurch, yesterday afternoon, Jlr F. de G Malefc, chairman of the Board of Director*, presided. The report of the directors wae as follows:— . . The directors have pleasure in submitting the balance-sheet and profit and loae account for the year ending October 31st, 1902. They have to congratulate the shareholders on the improved position of the Company. The results for the year just closed prove thait the Company hae the support of farmers in the Canterbury, M&rlborough, and Nelson districte. The quantity of stock put through the various -works—lslington, Smithfield, and Picton—for the year has been 1,305,132 head, the largest figures ever reached. The financial arrangemente made last year of placing the finance of the company on a permanent basis have proved eminently satisfactory and profitable. The establishment of the London office hae resulted in a large increase of farmers' consignments, which have been handled under the personal supervision of the Company's staff, resulting in satisfactory returns to clients* The London office has also soldthe Company's wool and tallow consignments, and sent large orders for meat on the c.Lf. basis. The stock and consignments have been reduced to a very low margin. Ample provision has been made for the future, and the amount of £7394 Oβ 9d has been written off for renewals and replacements. The directors have transferred the amount of £3939 6s, formerly to the credit of premiums on shares account, together with a further sum of £3000, to a reserve fund account, thus establishing a reserve of £6939 se. After making the foregoing provisions the balance to the credit of the profit and' lose account is £10,329 13s 4d. The directors recommend that a dividend of 7 per cent, for the year should be paid, leaving the amount of £1972 6e 4d to be , carried forward. The director retiring by rotation is Mr George Bowron, who offers himself for re-election. The auditor, Mr W. H. Gundry, also offers himself for re-election. Tjha balance-sheet for the jyear ended October 31et, 1902, was as follows: — LIABILITIES. Dr. £ i. d. £ b. a. To Normal Capital 20,000 Shares at £10 each . . 200,000 0 0 Less 4995 Shares Unallotted alt £10 i eadh . . 49,950 0 0 To Sulbsoribed Capital, 16,005 Shares elt £10 each . 150,050 0 0 Lees Uncalled Capital • ■ .30,628 0 0 Less Calls "Unpaid ... 17 10 0 •— 80,645 10 0 To Capital Paid up 119,404 10 0 To Reserve Fund 6,939 5 0 To Secured Debentures at 6 per cenlt 100,000 0 0 To Secured lAdvanco . against Uncalled Capitol . . . 30,000 0 0 To Sundry Creditors And iShareholdere' Deposits . • 46,816 9 8 To Amounts Drawn against Forward Stales and Open Cone%nmemits . 69,028 S 7 To Balance to Credit Profit and Los* 10,329 13 4 £382,047 1 7 ASSETS. Cr. £ 5..&. By Oaeb. in Hand . . . 327 18 6 By Balance at Credit Bank of New Zealand . . . 9,939 8 0 By Sundry Debtors . . . 30,261 19 8 By Land (796 acres), Buildings, Machinery, Pknt, Cottages, crte., at Minctton. Timaru, end Pidton . . .238,022, 6 10 By Forward 'Sales and Consdgnmerilia since Realised . 74,763 18 7 By Consignment Unrealised and Stock in Works . . 88,781 16 0 £382,047 1 7 J. T. PEACOCK GILBERT ANDERSON, Directors. ANDREW PITCAITHLY, Secretary. In accordance with the provisions of an Act to amend "The Companies Act, 1901," I h*ve audited :the above jtaitementt of assets and liabilities of tlio Cfaaistchurch Heat Company, Limtited. The rftaltemenJt is properly drawn up so oe to exhibit a true and correct view of the Company's affairs. The stock has been taken by fbe officials of the Company, an< the v»luee 'bave been checked by me, basec on compaitieon Witfh ascertained result*, and I hereby certify ithet they are correct. W. H. GUNDRY, F.1.A., N.Z., ' Auditor. January 20th, 1903. PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING OCTOBER aist, 1902. De £ c. d. To (balance at Debit, 81st Oct., 1901 .... 13,618 5 7 To General Expenses (including Rents. Insurance, Bad Debts ■Written Off, etc.) . . 16,534 8 1 To Baites and Taxes . . . 3,600 8 10 To Interest and Exchange . 13,280 15 0 To Renewals and Replacemenlts to Buildings, Machinery and Pliant .... 7,894 0 9 To Balance cut Credit Profit and Loss .... 10,329 13 4 £64,767 6 7 Cr. ' £ s. d. By Freezing Sales and ManafacItures .... 64,762 11 7 By Transfer Fees . . . 4 16 0 £64,767 6 7 Audited and found correct. W. H. GUNDRY, F.1.A., N.Z.. ; Auditor. January 201 th, 1903. After the" report and balance-sheet had been taken as read, The Chairman (Mr Malet) said:— In rising. to move the adoption of "the report and balance-sheet, I may at once say, my connection with the company has not been of sufficient duration to warrant me, did I even desire to do co, in touching upon what I. may term the technical details connected with the business. I will not attempt to trench upon the province of the Managing Director, who has had co long and intimate a connection with the affaire and details of the company. I joined the Board of Directors only on December 19th,'1901, and at the meeting of directors held on February 28th, 1902, after the annual meeting, I was elected chairman of the Board. During the abort time I have been associated with the company I have earnestly endeavoured to grasp the many and varied ramifications of the very large business carried on by it. I propose later on to draw your attention shortly to some of the items of the balance-sheet, and to compare them with similar ones of the previous year. However, before doing co, I may mention that I have formed the opinion that the company baa an excellent business, and an increasing one, if the figures showing the amount of stock that has been dealt with during the last three years, go to prove anything. The numbers for the year 1900 were ... 983,244 for 1901 were ... 1,091,562 for 1902 were ... 1,305,132 It will atao be interesting to you to know that the quantity of stock that went through the works for the eeason 1901----1902, ending Ootober 31st, 1902, on account of owners, wae 742,871 head. LONDON OFFICE. The directors are quite alive to the neoeeaity of maintaining the London office of the company in the highest state of efficiency. Only recently that staff has been strengthened by sending to London another experienced officer from tie head office, to work under the representative there. The London office ia making arrangements to push-in that city, and especially iv the provinces, the sale of meat and other products entrusted to the company, for sale, by its clients in the colony. The activity of the London representative, to whom our thanks are due, has, as is mentioned in the report, led to a very large increase in o«r e.i.f. sales. As an evidence of the confidence reposed in the company in the conduct of that class of business," orders from London are constantly taken by cable at a price (per lb) unnamed, but to be the lowest c.i.f. price at which thf company hue effected other tales to client! in the colony, and in London, during that_jgrUorfw_mmtfa ;<i<[i- lfc&

a well-conducted office in the Smithfield market, carried on by expert offioers, who hare gained their experience in the work* and offices of the^-company in the colony, is at once too apparent to call for comment from me. It may not be within your knowledge that the London office has been removed from Graceehurch street to Smithfield market, a change which has naturally been found to be a dietinct improvement, as the representativee of the company are on the spot where their work lies, and aTe brought more constantly in touch with those with whom their business is carried on. BALANCE-SHEET. I would draw your attention to the bal-ance-sheet : —Liabilities—The item £6939 ss, under the heading " Reserve," is a new feature in the balance-sheet. It is made up of the sum of £3939 ss, which formerly appeared under the heading of "Premium on Shares," and an amount of £3000 set aside this year by the directors. I shall refer to this item "Reserve" again. Amounts drawn against open consignments are represented this year by £69,028 3s 7d; laet year under this heading the sum waa £219,767 17s Bd. Assets—The item, "Land, building, machinery," is set down at £238,022 5s 10d. The previous year the amount was £235,896 8s 4d. The difference, £2125 17s 6d, is represented mainly by additions at the Picton works, and the erection of cottagee for the employees. The "Consignments unrealised and stock in works," stand at £38,731 16s. Last year thie particular item was represented by the Bum of £179,322 3s lid. It is certainly a matter of congratulation that the directors and officers of the company have been able to bring about such an enormous reduction in the items " Amounte drawn 1, against open consignments" and "Consignments unrealised and stock in works," in the balance-sheet now under review, as compared with the figures representing these items last year—a reduction of £150,739 14s Id in tlie former instance, and of £140,590 7s lid in the latter. The present figures represent, I venture to say, an ideal position, when it is remembered' what the turnover is in this business, but one that the most sanguine of us cannot expect will always be maintained. The figures this year are abnormally small, and every effort should, and no doubt will, in the future be made to keep them a« low as possible. PROFIT AND LOSS ACCOUNT. Debtor.—The first item is the debit of £13,618 5e 7d, which was shown in last year's account, and is now wiped out. It is not out of place to mention here, that although this account last year showed a debit balance of £9068 la lOd, which was increased to £13,618 5s 7d by the payment during the first half of the year of an interim dividend, a sum of £5280 5s 8d was still written off buildings, machinery and plant. No attempt woe made to bolster up tlie account by euepending any writing off for that year. The directors preferred to face the true position, trusting to the well-established business of the company to soon recover the ground. They have not been disappointed. The "general expenditure" this year is £16,534 3s Id, as against £20,037 5e sd, showing a reduction in this item for the year of £3503 2e 4d. "Rates and taxes" appear as £3600 8s 10d, as against £1422 19s 7d for the previous year. The Increase is represented by income tax and Government Inspector's fees. " Interest and exchange "—These figures are £13,290155. In-the balance-sheet of the year previous they were £15,366 8s 3d, a saving of £2075 13s 3d for the year. " Renewals and replacements, buildings, machinery and plant "—For thia year a provision of £7394 Os 9d has been made, whilst for the previous year, as I have already stated, the sum was £5280 6s Bd. It ifl worthy of note that though the charges for "General expenses" and "Interest and exchange ". are smaller this year than dast, making together a saving of £5578 15s 7d. the volume of business as' shown by the stock dealt with has been cdneiderably larger, an increase of 213,570 head aa compared with the previous •year. DIVIDEND. The Directors, in recommending a dividend at the.rate of 7 per cent, for the year, are not unmindful of the fact that the shareholders had only received aa interim dividend of four (4) per centum per annum on the paid-up capital for the previous year ending October 31st, 1901. They took rofo consideration all the circumstances eurrounding the working of the company for the last' two years, and were of opinior. that the shareholders would coneider they -were adopting! a prudelit and wise i-ouree in at any rate for this year, only such a dividend ac, looking to the present value of money, might be regarded as a very fair and reasonable return on the investment. It is of "paramount importance for the continued success of the company that the works, and plant should be of the most modern description, and maintained in the highest state of efficiency. Therefore the sum that must of necessity be set aside yearly for renewals and replacements of buildings, machinery and plant must be relatively of no inconsiderable amount. It goes without saying, that if the business of the company is to be carried on with the best results for the interests of the clients, that end can only be attained by the maintenance of the buildings, works and plant at the best possible standard. It may not be known generally that the company as from the let December last has reduced to ltd clients the consolidated rates for freezing, bags and ocean freight until further notice, by an allowance on lamb of 5 per cent. Further, the company, in order to foster and develop'the- business of consignments of meat by clients for sale by the London office, and to place shippers on the footing, has decided to make the following further concession to shareholders:—One per cent, rebate of the gross consolidated rate, including freezing, bags, freight, insurance, exchange, selling commission advance, and return of proceeds (including one month's storage) in the proportion of 250 head of sheep and lambs to every share held. No mercantile business, whatever its nature, can be carried on without an element of risk. What is known as "the ordinary business risk" niust always be faoed by those who are charged with the conduct of the transactions of a business oi any. magnitude. The opinion of the Directors is that we should, aa far as possible, not exceed that limit, and it ie with that object no effort on their part and that of the officers has been spared this year, nor will be spared in the future, to extend the principle embodied in the c.i.f. business. It is my individual opinion that the element of uncertainty attendant upon any well conducted business ie quite sufficient, without undertaking risks which come within the category of speculation, and which at times are apt to degenerate into speculation of a very doubtful character, ventures which not unfreouently result in the maximum amount of loss rather than in even the minimum amount of |»ofit. That the establishment of companies for the developement of the frozen meat industry bae conferred enornve advantages upon the colony as a whole has been frequently impressed upon -us all, andufeo that c. large amount of capital ha* beyond question been found for the purpose by others (the ordinary investors) than those who are clients of tie different companies ac meat proauoers, as well as by the latter. I know I am speaking the mind of my colleagues when I say that they are most anxious and desirous so to conduct the affairs of the Company on proper, and on well defined #nd safe lines, that its shares may be regarded as a desirable and reliable investment/ and that ite clients who, from time to time, entrust the Company with their live stock may feel that their interests are in every way protected. RESERVE FUND. Aa I ihave already said, the establishment of a reserve fund is a fresh, departure in the affair* of the Company, but one which I am confident! will have your entire and unqualified approval Let me repeat here how a ram which is to form in part the foundation of tie reserve bae been transferred to that account. In the* balanceaheefc cTtfw previous y«M- there* appeared

eharee, £3939 5e." True, it was an asset, but it had not the significance to the critic of tie balance-sheet which it conveys as it appears now under its new designation of "Reserve fund," of which it forms part. The directors, recognising' £hat the business of the Company bad prospered during the past year, were, indeed, well pleased to be in a position to set aside a further £3000 for that purpose, which, together with the other amount (£3939 ss) aggregates the not insignificant cum of £6939 ss. I feel little Jβ needed from rue in support of the wise and prudential step which has been taken by the directors. It is a vital principle in all well-conducted businesses to make provision against emergencies and the unforeseen by way of a reserve fund. As a writer further puts it, it is the principle of providence and security. It is the neglect of this principle which spells ruin. The improvident find comfort in the delusion that it is waste to provide what you do not require to use, and that you can always provide it when wantedI cannot myself conceive of a step in the conduct of the affaire of the Company which, if persevered , in, in years to come, could have been taken by the directors, that should prove a more "lasting benefit to the Company than the establishment of such a fund. True, the position of the Company in years gone by has enabled the directors from time to time, to st>t aside sums for the purpose of writing down buildings, plants, and machinery, but in t3ie hour of need (and these occasions, however inopportune, do arise) a fund of this nature would be available for that object, j as well as for the equalisation of dividends, 'and other purposes. I have already alluded to the risk that attends the carrying on of every business, and after a lean year the existence of such a fund, accumulated in times of prosperity, goes a long way in helping to tide over any financial pressureI take this opportunity to convey my best thanks to my brother directors, the Managing Director, the Secretary and staff of the company, for the kindiy support and assistance they have always extended to me in the discharge of my duties of Chairman of Directors during the past year. I have had the opportunity of observing and realising the responsibility which is cast upon tlie Managing Director, in the discharge of the duties of his office. His unremitting attention to all matters affecting the welfare of the company, as well as to the details of the many departments of this large and varied business, can be more readily understood and appreciated by those who have some knowledge of the work that devolves upon him. The result disclosed in the baiance-elieet bears testimony to the ability, care and attention which he has brought to bear upon the administration of his office. It is only now left for me to move the adoption of the report and balance-sheet, and at the same time to offer you my congratulations, and those of my fellow directors, on the success that has attended the operations of the company during the financial year just ended. Mr , Joseph Gould, in seconding tlie adoption of the report and balance-sheet, said:—l am reminded of the old proverb that "Good wine n'eede no bush." With his intimate knowledge of the inner working of the Company's affairs, your Chairman 'has put before you miost ably so clear an account of the operations of tiK past year, that it is not for me to say very much. I must, however, congratulate the Chairman upon being in a position to place such a report before you, and Mr Gilbert Anderson, your managing director, on the eminently satisfactory-re-sult of his labours during the past year. It is not necessary for me to dwell on the figures in the balance-sheet. Mr Malet has already analysed them. It must, however, be most gratifying to you as an evidence of the- inherent soundness of your business to see fhat the debit balance of £13,618 5a 7d, which appeared in your balance-sheet of last year, has given place to a credit balance of £10,329 13s 4d; that a sum of £7394 lias been written off for renewals and replacements; and that £3000 has been provided towards reserved funds out of this year's profit. To put it another way: the operations of the current year have been attended by a profit of £31,341 19s 8d over and above the working expenses and interest. This is a very handsome sum, and must be most satisfactory to shareholders. It should also be most satisfactory to sbeepownens, showing as it> does, that the Company is able, to maintain its position at so small a profit as about,6d per head* on the sheep dfc handles, and as the greater part of that profit is made out of the residuals, growers can see that they get practically the whole value of the meat and wool. Your Chairman has referred to the risks attending the conduct of the 'business. Well, gentlemen, we are a>ll more or less conversant with business risks, but when we see a business recover iteelf so triumphantly in one year as yours has done, I am sure we must all feel every confidence in the continued success of the Company. With regard to the future:. It appears to me that we must consider we are well equipped at all points. We are assured by the directors that the Company's works at Islington, .Smithfield (Timaru), and Picton, are all thoroughly up-to-date and efficient. While I can hardly pose as an expert, I may say that 'I was greatly impressed with the condition oi everything at Islington when your managing director recently showed me round the works. Your London office is in good shape, and is being run .by a staff partly drawn from thie colony and partly from London, so that both ends of the business are thoroughly represented—a fact which should assure the Company's farmer-clients that the utmost, will be m«de of all produce committed to the Company's charce for realisation. In his address, Mr Malet has referred to the question of depreciation, and on this head I should like to say that I hope in future years, when there is no debit of profit and loss to be provided for, ■ the Board will see its way to provide larger sums for depreciation, ac we have not only to meet the loss by wear and tear, but also the fact that new inventions often compel us to throw out good sound machinery, not because it is worn out, but because it has become obsolete. I therefore hope that in your balance-sheets tihis item will always be very fully provided for. Mr Gilbert Anderson, the Managing Director, said: —At the annual meeting of this company it is expected that some facts in relation to the working of the company's busmen, as also the general conditions and prospects of the frozen meat trade, should be placed before the very large number of shareholders in the company, comprising, as they do, so many fanners throughout the Canterbury, Marlborough and Nelson district*. This devolves upon- us from the position which we hold in the trade. Thb total quantity of mutton and lamb exported from New Zealand during the year 1902 was 2,083.578 carcases of mutton, 1,717,302 carcases lamb, total 3,800,880 carcases mutton and lamb, of which the Christchurch Meat Company contributed 588,742 carcases mutton, 659,660 carcases lamb, total 1,248,402 carcases mutton and lamb,' or over 32 per cent, of the total quantity of mutton and lamb exported from the colony. It has already been stated that the total number of head put through the works for the twelve months ending October 31st, 1902, was 1,306,132 head, and, showing the valuable busineee of the company, 742,871 head went through on owners' account, a large proportion of these being consigned through the company for realisation in London. The balance consisted of stock killed for c.i.f. ealee, preserving, and cattle and pigs, mainly for South Africa. The figures of the profit and loss account, to which the Chairman has drawn your attention, are mode up from the many departments into which the company's business ie divided, and I am pleased to be able to state th*t every one of the departments has been worked economically and profitably. The accounte show the moat healthy condition, and that pur profile are made up largely of savings. And this not only applies to the general accounte, as shown in the statement before you, but also to each of the departmental accounts, and according to the eire of the three, works, you will appreciate that the details of the company's business ere watched, in every respect. 1' aa.pleased to say that tfe » from tr/n t*Tlnei efff*ffl| fffi tht WVH°lfli.

department* that we look whh hope to tiw future. , IMPROVEMENTS. The Chairman has already referred to the necessity .for keeping the works in the highest state'of efficiency, and while it is unlikely ths2t any large expenditure will be" required, owing to the cite and completeness of the works, we are effecting improvements for the coming year which vei& result in still further savings. Among these is the installation of electric motor power at Smjthfield, and ulso some additions to these works, to meet the demands of the growers in the district. In this connection it will not be out of place for me to cay that we have a most efficient etaff of enginecTß and foremen, who take-a pride in assisting the directors to carry out the details of the work with a view to efficiency and economy. \ BRANDS. I am pleased to say that the company's products continue in favour, and that the brands of the company occupy the first position. The "Eclipse" and "C.M.C" brands of meat are recognised' to be the i first on the London market, and the information already given you in regard to the orders received how that they are known and reliable. The company's brande of tallow have been in strong demand, and osvouareno doubt aware the "H" brand carries the distinction of "Finest." The demand for edible fate has led the directors to take up the question of oleo manufacture, and we are now building and installing at Islington an up-to-date plant, which will place us in the position of conserving to the shareholders the extra profit on this business, and enable us to place out clients on the very best footing. In addition to the forward business in meat and tallow, we have been able to develop the forward sales of our wools. The company's brands are recognised to be true to type, and when this was placed before the manufacturers at Home, forward business resulted, and we expect that this business will grow. The varioiis other departments have been run at a profit. You will gather from the above that the pplicy of the Company is to produce the very best brande, such as will command a market, to get into the closest touch'with buyers, and to do the work at this end in the most up-to-date and economical manner. MARKETS. We Siave. taken a very active part in the development of outside markets, and we were pleased to be able to make many large shipments of meat to South Africa. Not only" was this a new market found for our productions, but it kept a large quantity of. second-class meat off the London market, and enabled us to obtain for our clients satisfactory prices for shipments of better quality to "that port. I hope that every effort will be made to retain this market, as there is unquestionably a large quantity of meat which should not be sent to London, but for which a ready sale will be found in South Africa. It has been very disappointing that we could not get übe support of the small farmers to supply tie quantity of pigs, both porkers and baconera, for which we held large ordens, and it is much to be regretted that, fanners do not add the pig industry to their farms, so that we may produce to the utmost capacity what tlie land will grow. There are special facilities tin connection with the dairy Industry to /aise the very best quality of pigs, but the matter has not yet Been taken up in earnest. We hold large orders for South Africa which we hope to fill from New Zealand, all of which mean good returns to the farmers and certain profits to the Company. It is satisfactory to note that tlhe increased quantity of stock put tthrough the works, as also the large increase of consignments through the London office, shows that we not only have tho confidence of farmers, but also that they readily recognise that we occupy the first place in adopting improvements for the benefit of the trade as a whole; and I con assure you that the I policy Ygar directors are pursuing is the I right one for the development and advancement of the trade on safe lines. It will be noticed that we do not advocate any rash or violent changes, bub quietly and attentively watch every phase of the market*. I can only repeat Trhot has been frequently said, that if fanners are going- to consign to the London market they must place their consignments in the hands of .responsible agents, whose interest it is to look after their goods, we look about us and see the methods of up-to-date countries we will find that they follow their goods to the market. Amongst other questions which our representative in London has taken up ie the high rate charged for storage of meat in London and the unequitable way in which the storage is applied in connection with the unloading of vessels. We purpose to follow this matter up until we have it remedied. You are aware that we are taking an active interest in opening up the provincial trade in a practical manner. EXiPORTS. The total shipments of frozen meat from New , Zealand for the years 1901 and 1902 were: —

The" shipments to South Africa during 1902 were, mutton 159,178 carcases, lamb 7000 carcases. The totale dhow am increase on last year's shipments of 412,039 carcases. The iafbk> of shipments, shows tie erratic manner in wliich the shipment* are made, and how difficult it is for either the freezing companies, or the shipping companies, or those who have to meet the daily supply in London, to cater for a business carried on in this erratic manner. Some day, no doubt, the farmers will bo satisfied "jo leave the entire shipping in the nands of the freezing companies, 50 that regular supplies can be sent forward "as the ■ market requires them. The total arrivals of frozen meat in London from New Zealand during 1901 and 1902 were: —

ton 41,628 caroasee, lamb 398,311 car* : oun, total 433,939 carcases. ' The arrivals of i roxen meat *in London l from Australia during 1901 «nd 1902 * •w*re: — !

These figures sfrow a decrease in mutton of 614,887 canseee, and an increase -n iamb of 277,792 carcases. The arrivals of froxen meat from the River Plate in London during 1901 and 1902 were:— I .

These figure* chow an increase i* tautton of 84,630 carcaeee, and in lamb of 108,761 carcßMV. . • . The year's imports show that f01? 1902 these feu been «n increase ac follows j — I/unit. New Zetland «... 392,311 . AM«tawlri» ." . . 277,792. .j •: Biverßtot. . . .. W^,^ Mutton. ' -New Zeil»nd ... «,e2B atom*.. . . -• M.680 igflgsß toM . r 905,138 Decrease Mutton, Amatrwli* ■ . 014,887 Net Increase . , - 290,235 'BRTOBS. : The following axe the Smitnfield market quotations for prime Canterbury 4uring 1901 and 1902:— . ,: . v|

* It will be seen how closely the market requires to be watched if eatSefactoTy returns are to be obtained. ' ' FUTURIE. . This season has opened well:for both mutton and lamb, and with judicious handling no doubt satisfactory, prices will be maintained. This 'matter, however, is in the hands of the jrrowers when making their consignment.'' The, future'also points to farther development. Instead-of having reached our limit, we anticipate that the exports will steadily increase. The year's exports were 3,800,880 carcases of mutton and lamb, and yet we 'hare an increase in the total number of sheep in the colony. The total on the laet returns is 20,342,727 head, and as there haa been a good wnAK ing, we expect a;furth*f MK*ea)ie;fAnSex4 amination of the' flocks-shows *tha"t"we h£ve reasonable ground* for expect|ing'tliie, for ; of the number were ewes, and every year shows a tendency to increase the ewe flocks, co that'we can safely c<)uiit on doubling onfoutput before ye l oVertak«'tbe possible itereaee. k • And* litill; ftirfljer is . this borne'otft by the productiveness of the land brought'under cultivation. A;prowerty, that for yean was only considered fit to leave in tussock and run a.few dry eueep, is now turning off 5000,0r 6000•'prime' fat lambs per annum for the freezing works, and ac more land is brought under close settlement, co our work will increase. There is one matter I would like to* refer to. We have heard a lot of the necessity for improvements in the trade, and of the quality of the meat produced. - I hate; already pointed but that the works put.through over 32 per cent, of the total mutton and lamb exported from New Zealand, and that our ■brands are well established in the London market. Further, that we have the , confidence'of "sic farmers. We wish to develop this business: further, : but we do not wish it brought under one 1 common brand. We, ate careful of our 1 brands, and we wish to keep them to the high standard attained. Where we have ' placed our works, we have the 1 of-obtaining supplies of suitable, quality. And in this connection I may say' that in the North Island they have for breeding 1 their flocks: —57,312 Lincoln rams, 26,814 Romney rams; total, 84,126, out of a total of 114,055, or 74 per cent. In the South 1 Island we have:—Bs26 Lincoln ' rams, ' 12,036 Romney rams; totul, 20,562, out of ! iv total,of, 103,912, or not 20 per .cent., the ' balance being finer wool and better-framed sheep. This-fact alone shows that we ore ' dealing with a totally different class of ' meat, which should not be classed with that of the North Island. Further out - of a total of 1,310,895 merino ewes in the colony, 1,228,729 are in the- South Island. The freezing companies of this colony hare been of great service to the country,

and the benefits which they can confer Hvf not yet reached the limit. Wβ ixttf* the v€f satisfaction of being connected with JOM *:4;|j of the largest institutions worked an. BWWMI , .1 co-operative lines for the benefit N>f «&*»- :'*/:■■'!'?s holders, producers and worker*. colony. ' '' ■ ' ■ -.«'-, :i-.-, .-••" '- ! ' :; = Mr" M. C. Orbell eaid j—l look vpm ■■■'■ ■']% this as one of the best reports that we b*ve - had since the Company h&e been eatatK'''•.. \ ; i; liebed, and I have no doubt that come of I .'-'■.;....* you will agree with me, when. I eaqwrea* .. V', the opinion that I the Xβ* ' -r'f? duction of the unrealised conugnmenta ai '.■ . shown b}' the figures which you have already mentioned, namely, £179,322 . ,' £38,731—the position of .the Uompeny ' > with sat Lsfaction. I think this ie A v«y. important feature, and " every endeavour ;. should be made to keep the figure* a* low ./„ as possible. Another feature which "IV view with pleasure is the introduction of. '; the reserve fund. The Chairman has el- \ ready emphasised in hie own way the Iβ- ■ portance of that item, and I thoroughly ■; endorse every word that he hag eaid. X ■ think it will 'be a surgriee to find that thhi -■■;}, Company is freezing one-third of the whole ; S of the output of cheep and lambs of U»« i colony. It_oom€B to me as a great surprise," and 1 wjsh to remark that, aa a r ; country fanner, I hear what ia reported ', : in regard to this Company, and also the reighoouring Company. There is a strong feeling that the Christchurch Meat Company does not care to undertake freezing on owners' account, but I am glafl to be able to fitand here and cay that this to aofe so. I am quite certain that this Company gives their very best attention to all stock , received at the freezing works. No doubt there are farmers who send in their few ; /,'■ sheep occasionally to be killed at any hour or day that they anticipate, but when yoa come to consider that the two works be» r" tween them put.through some 10,000 head "" ■ per day, the farmer cannot expect to have ' hie cheep killed at a moment's notice. 1 am perfectly satisfied that this Company studies the "interest* of owners, and I may ,' say that I have known the Ooffipaay.te V} turn out their own sheep to enable ownwi :',.-.v. to have their etock killed. Yet we hear = it dinned into our ears every day o! the week that this is not a faraere* Company. We find that this Company ii practically freezing as many sheep on farm-,' y' era' account as the other Company} therefore, I say that the Christchurch Me** ■>..■■"< Company is a farmers' Company, end JV even goes further. It haa studied the. :: farmer in every possible way. It btm .• . erected works to give every -possible vs.. facility, and it has even lowered the rates . i for freezing, and given a reduction in the. ~ 5 consolidated rate of 1 per cent, on »li •' ' charges. I think that it is necessary that :; ■■ these tilings should "be put before the fanners. I consider, and I think that you [ :, '■}':. will agree with me, that the Clirietchuroh :>£ Meat Company has raised tl>e price of mutr -.; ton and lamb 25 per cent, during the hurt) >;■ 10 or 12 years, and not only'has it in- :\':>'/*■} creased the price of mutton and lamb, ; : it has been ' the means of considerably/':.raising the value of land. I make fiiei* v j remarks because I am living in the ooun- .■ >"p Uy, and co I can epeak with authority .at*'}■;{£ what ie going on, and I hope that publicity will be given to them. There is another : ;/">Si subject about which. I should - like yto;;■'; ].. I speak. I understand that ■, there.:..is■;;ai' ; '■." movement being made;by the to put a special brafitt on all New Zealand ':°#jM meat, and I tihink that from point of'view that this .woeld be : a objectionable step to take, for ttie «a«j»:J , If we lose the Canterbury, brand it be a very serious thing, ac you wiU i.ccc that it will depreciate fh»':y»\v»- : I Canterbury meat. In the ; Noroi-. they breed from , Romaeye end Lincolne, but* in Canterbury we nee the .bred merinos, and Downs; 1 - '. - ; /l ! KS*§j Mr John Mill said:—l murt;eay am pleased to be here 1 tfeptort and balance-eheet.;. read--by :: pife t worthy Cljainnan. Itr :appetfrß, ; to jne j wliat is wanted now is. for "the : community to do their •r.ees, because 'I oaif say tUnt ' of this Company J have been the means,, as ; ;M?,;.OrbeJ|; ;i I "eaid, of enhancing the "property tbougjit that fitruck me ) .^,'^i«)i i .:t^.« f ;!pMi! : Company and kindred - Compoaiee Wsnil; '*» shut- down 'their.' ■wrla\' f for, ::; nvontlie, it. would be a ' fer'rible for the country, and our "depreciate to at least,;.one-half,"ite, '.value. Now I musi:say.y^at- : dnty i>( the farming oommunity : M .-,-wjodcWJ« shoulder to shoulder this Company, who Bave done : this-'oolony. I!irae'in f we had no -idea of etarted to boil eheep.-down';for ; , ; .their i SjftfeSO Wβ bought' , 'them -"at ■■2t - think Mr imderson '. will tell; you ?iiowa &J3sm day that they are worth, at 1 heads. When a. farmer'; grasps;.-.the it is liia duty to come 'the Company in all ping and to' It , 'ie: : which I When' you ; .look ■at •. the \iixaito& i which are shipped to: lK>ndc^ lf . River -Plate.-you will-' Mβ thWj great competitor hire to contend ---with ffcmfi from that country, bea«se: ttji«; : g& :i<i so much man six to six at 5e per day-jwhile- : church Meat cording to scale and,the It ie : very ■■'eatisfactory" of ■. the Company. f t^ ; joe«f4|« pany- is" "in- a return for the money inTested^.■^^; : .if we, as the directors will do hovee tie'to4o..onr- 1 property ie .be^g.'eiAaoced^^--&<,t»l^^ s S''S«Sy On the motion. the; Cfeorge' Bowron>'-- the- dirw^: T rotation, was-"re-elected. '■..■'...■'■■ :^'.'%V:' i -'- , Mi WV H^-Qnndw-auditor- for the On the" motion: of Mr *JQnn hearty-vote- of 'thank* Chairman, and . Staff, throughout ; the Ooinjany>,f«er-^%|| vice Mr Mill said he wM ; ea^^,;tha>}p£| the c%ie" their "very all ' . :: : •Mr 'Orbell-eeconded .U»;i»b^; : .? f ,w«a carried "^■i^'^r^^^^i

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January February Much April Mi? June Jtdy . August September Oetdber Novemfber December 1901. iqOJt.'\ ,' ; Mdtrton. lamb. Mutton. IiJtanb.' . 5d —"• "ijrt 5 tvie4 . 4Jd Cd 3Jd r-Sc"' . 4Jd SM S|d iS-lCd . 4id M 8<|dv -Vvi . 4£d Sid 4Jd 4 15-ied . 4(d 6'2d 3 15-ied 4Jd . 4id 5Jd 3 ia-16d 4Jd : Sid. 6j|d 3Jd AH . 4d 6|d Bid 416-1M . <id 4Jd 6 ll-16d . 8£d 4Jd Ed , ■•'' 5W,.; . 8id 6d •• Sid ei8-10d