FARMERS' BACON COMPANY

Dominion, Volume 6, Issue 1745, 9 May 1913, Page 8

FARMERS' BACON COMPANY

BETTEB POSITION EEVEALED. . A large number of shareholders of tho Wellington. Farmers' Bacon Company attended a meeting at Pahiatua on Saturday to discuss matters relative to the pig industry, and to deal with the business which was not concludcd at . tho last meeting of shareholders. Mr. A. MTarlane, one of the directors of the company, presided, and, according to the local report, stated that the comniitteo of five shareholders appointed at tho recent meeting had visited Masterton to review the financial position of the company, Mr. T. Moss said tho committee had inspected the of tho company. Their view of tho situation lthen in Masterton was not very satisfactory, but information had since been furnished which placed a different light on the subject. The committee considered that the positioii disclosed was so satisfactory tnat its recommendation to the meeting was not fo take anv action with reierenee to closing down the factory until after tho annual meeting, which would be held m about two months' time. The great question was that of loyalty. Although the company was in its second year 01 working, the average number of pigs sent to the works by each shareholder was only five for the present' season, llr. Moss then moved, and Mr. I'ryde seconded "That further action be deferred until the balance-sheet of the company is issued at the annual meeting. . Speaking to the motion, the chairman stated that -the shareholders, 150 in number, had supplied 761 pigs from October, 1911, to Marchi 31, 1913. Of this number 72 had been condemned. J-* l ® shareholders could understand why there had not been profits when only a limited number of pigs had been supplied. The company had recently received excellent offers for hams for the coming Christmas season. Mr. MFarlane read a recent letter received by him from the manaeing director, Mr. J. U Cooper, which stated that thero waseyery to believe that the balance-sheet to be submitted to the annual meeting would be far better than was anticipated at the meeting held in Pahiatua a fortnight ago for the following reasons:—rho valuations of pork and the estimated, weights of sides and hams would be found to lie well below the present market value, as' indicated by the most recent visa'in the price of bacon. The weights would also lie found to bo very much on the low side. Continuing, Mr. MTarlane said Mr. Cooper had made exhaustive inquiries, and the position disclosed was now yery satisfactory- The proposition before tile meeting was a good one. If the company went into liquidation and a forced sale of the.cured article was held, the shareholders could not espect that a high price would be realised. If the company was wound up, it would mean forming another company or leavo the district to bo operated upon by largo private companies. If the present company was successfully carried through, it would bo a big thing for the Bush district. (Applause.) He thought something would be done at the annual meeting with reference to reducing the prico of the shares, which were now £5 eacli.^ In reply to Mr. C. Connor, Nireaha, the chairman stated there had been no loss in the curing of the bacon this seasoil. There had been a loss of li percent. in the weights of the pigs delivered. Mr. Connor asked whero the loss came in, to which Mr. Alpass retorted: By sending "unfinished" pigs. The chairman: Exactly. The same questioner asked how the loss of .£6OO on 600 pigs had been arrived at. The chairman said that a mistake had been made in that, announcement, as was evidenced by the later inquiries into the financial position. The indebtedness of the company at March 31 last was ,£607, which included' ,£337 initial expenses in starting the company, and other items which would not be recurring. Mr. A. Barrell thought the worst side of the ledger had been shown. What was required to make the cnnipiny a success was more pigs. Although many farmers had taken up shares, they were suspicious and would not supply pigs. He thought the company had made a mistake in taking. only shareholders' pigs. On heing put to tlip meeting, the motion was carried unanimously. On the motion of Mr. A. Eddie, it was decided to rerommend to the directors the advisability of reducing the price of the shares from ,£5 to XI.