MEAT EXPORT CO.

Dominion, 14 August 1919, Page 6

MEAT EXPORT CO.

ANNUAL MEETING

GOOD RETURNS FROM STOCKS

OUTLOOK FOR NEXT SEASON

Tho thirtieth annual meeting of the Wellington Meat Export Company, Ltd., was hold in the Chamber of Commerce .yesterday, Mr. W. G. Poster, managing director, presiding. In moving the adoption of the report arid balance-sheet, particulars of which have been published in 'The Dominion, Mr. Foster congratulated shareholders on the rteulta shown therein. TJio balance r.viiiuV.e far distribution, after taking into account tho interim dividend paid for the half-year to December 3!, and providing for usual appropriation!;, -was ,•£74,412 16s. Id. This amount was, of course, tho outcome during tlm year just ended of <he sales of stocks which during tho two preceding years had, owing to war conditions, been accumulating, and which under the circumstances of the establishment,. during happier years and conditions of business, of the equalisation of dividends reserve there was no need to anticipate. The dividend reserve referred to was first provided in August, 1910, by appropriation from profits of i'GOCO and was subsequently increased to ■£20,000, an appropriation tliat has proved extremely valuable, as enabling continunnco of payment of the usual S per cent, dividend per annum. "As stated by me at last annual luesiin;, the directors' anticipations , that on their estimates of the values good returns would be realised from stocks hold up is fui'.Cy borne out by tihe balance-sheet before you," remarked Mr. Foster. "The distribution of the available balaneo of profit your directors are. sure will be satisfactory to sasiroholdors, and they therefore confidently recommend adoption. Different opinions may havo existed as to the courso adopted of using the dividend reserve, as was done, but your directors feel that not only no excuse for the course is neoesfnry, but that their decision was a wise and propeu , on?. AVar was rowing with no certitude as to its narly termination; none of the Allies doubted its ending in their favour, but a much longer continuance wi.Hi serious enemy submarine activity might have so affected market values of products of the freezing industry as to have very niatnriflCy reduced the balance shown in returns now before you. Premises, plant, etc., have beon well and efficiently maintained, and tho costs thereof charged to working expenses; nmplo provision is made for depreciation end a substantial amount is added fo general reserve fund. That the business of the company during the war period has necessitated class* and anxious attention rops without raying, but to 'have come through ns we have greatly compensates for the work and anxieties. Stocks and Shipping Tonnage. "At the end of tho last financial year, 1918, tho stores in the Dominion were eo full that, with the shipping outlook, it Boomed doubtful if the stock of the season ■just past could bo dealt with. The numbers in store on Juno 30, lf>lß. totaO'cd tho equivalent of ,1,200,000 freight carcasses. Tho quantity at Juno 30 last was 8,000,000 carcasses, equal to 21C.21G tons, and since then havo only had relief to the' extent of 200,000 carcasses. If, therefore, there wera anxiety for tho lust season's stock tho outlook for next season was more serious. From the latest information available, however, I understand that for this month and September there will be tonlwire for 1,739,000 freight carcasses, in addition to dairy produce, and that tho Overseas Freight Committee hope tlint their expected shipping relief to December 1 will reduce stocks to about •i,000,000 freight carcasses. This, however, is believed to bo the best possible. Should lliis eventuate, and as good shipping arrangements continue thereafter, we should again squeeze through, but all of course depends upon early and sufficient shipping.

"Since the directors last met you our Government, at the request of producers and exporters, successfully negotiated an extension of tho Imperial meat purchase contract to June 30, 1920. This extension, whilst deprecated by i=ome of those 'both in New Zealand and tho United Kingdom interested in its-export, has proved of inestimable value to New Zealand exporters, as also under circumstances existing at the tinio of its extension to the Imperial Government. Dependent upon circumstances over which there con bo.no control at this end, ii further extension may be desirable. Tho wool'purchase by the Imperial Government has worked well, and the valuations have well maintained the terms of the purchase. It is satisfactory to learn that such wools as have been released by the Imperial Government for salo by auction show substantial increases over the commandeered prices.

Increase in Working Costs,

"Increased cost of living lias during the year necessitated substantial additions to our wages sheet, and this, coupled with the greatly enhanced cost of material, imported and otherwise, hiw swelled our working expenses very considerably. Our permanent staff of all grades has'acquitted itself extremely well throughout tho war period, ami your board has decided to recognise its good and loyal services. J.t: will lie accessary and desirable that the company should substantially inoreaso its investment in war loan. This and tho preceding matter of bonuses to staff has been reserved for Hie consideration of the full new 'board. Not uumindiul. of the wish expressed by shareholders present at last annual meeting, your directors during the year appointed two Wellington commercial gentlemen (Me«rs 0. S. Watlcins and A. l< , . lipbcrls) to the vacancies created by the resignations of fr. I , - M'.K«ml.V ami Mr. M. Elgar, and (Ipcided to hold the vacancy duo'to Sir Walter Buchanan's resignation open for nomination of a shareholder for election at the present -meeting. Sir Walter Buchanans association with tho freezin" industry and his formation and foundation ot this company, as also his continuous service- on the board since its incep-tiou-thirty-eight years n.jo-is well knowii to all, and his resignation from participation in the conduct of its business was accepted by his co-directors with sincere regret.

Ihoro being no candidate for the two vacancies other than Mr. A. K. Mabin whoso election is assured, mid tho reelection, unopposed, of Mr. Watkim, the wish of. investing shareholders as to stronger representation of thoir interests has been conceded, and the company nmv I venture to say, be congratukfd uixm tho additions to its board of directors." Mr. iM. Elgar seconded the motion for the ndophon of the report and balancesheet.

Jlr. W. Watson asked Low much or what percentage of tho profit on fallow was included in (he accounts, and how much or what percentage of it would bo included in tho accounts for the veur ending June 30 next. Awkward Questions. Tho chairman replied that such questions wero very awkward, to put to tlio*o who wero conducting a commorcial concern, because anything that was oaitl was Raid in public. Tlio tallow was sold 0.i.f., and only a small portion had been shipped. Only money actually received in proiit was put in tho toili'inco-sheet. Tlio amount of tallow hero was not vcr> big. All sorts of tilings, uneh as pro fits, etc, wero talked about nowadays, and he did not think it wns desirable-'at ;i meeting liko that to disdoso figures.Now blood was on tho board, and when they had gone into matters they might think it desirable to Bay soinethin?. '- Jlr. S. Kirkcaldie said hi; thought: it; was desi -.ilile that shareholders should be given a little- more information than had liDfii '..ivi'ii them. The biilnnccshr?t should set out clearly Ho viiluo of the stocks sold to t.h:' Imperial Govprninciit. The iiyuivs did mit :-'"iw Ihiil. at urc.-eiit, and did not siiy what was rcilisrd and what Imlance" rcmiiiiied. In reply, Air. Filter said they lnid not gr.!. iiJl the figures at hand to p-ive a detailed reply to Mr. Kirkcaldio. Thu vnluo of the meat sold to the Clovernmrat wns ,eitll,-Ji:i, of whivli tho com. ])iiny had received -l.'i per cent.

ilr. Kirkcaldie stated' that the balancesheet showed an increase in the cost nt premises and plant of .Kill.OIW ove" and abnvo the amount of last yew's balaiiecehest. Was that amount likely to be iiic-I'Oi'.sed in the current year?

Mr. Foster replied that Hie increase had b?en incurred owing to building opcratious which had now oracticaJlv wased. 'Fhe company was not extending its buildings, but was finishing off small matters in respect to the housing of plant. By the installation of the hist machine the killing capacity hiul been increased from 2000 head per day to 3500.

Tho report and balance-sheet wenadopted without further discussion.

Messrs. O. S. Watkins and A. K. Mabin wero elected to the Board of Directors.

It was decided that tho remuneration of the directors for tho past year should i)o .£BOO.

Messrs. A. T. Clarke, O. G. Kcniber, and E. W. Hunt were appointed auditors at a remuneration of ,£IOO a year. A vote of thanks to the directors con. eluded the meeting.