MEAT EXPORT CO.

Evening Post, Volume XCVIII, Issue 37, 13 August 1919, Page 7

MEAT EXPORT CO.

ANNUAL MEETING

NEXT SEASON'S PROSPECTS

The annual meeting of the Wellington Meat Export Company was held tbia afternoon,/ the Managing Director' (Mr. .W. G. Foster) presiding. . .' "" ■ "

In moving the adoption of the annual, report (the thirteenth), already published, the Chairman aaid:—The balance available for distribution after •, taking into account the interim dividend paid for the half-year to'3lst December, and: providing for usual- ■ appropriations • ft ■■■ £74,412 16s Id. Ttie amount' is,"of " course, thfr^nrtcome' during the year-josfci ended of the sales of stocks which dur■ing the two preceding years have, 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; £6000," and' was subsequently increased to £20,000, lan appropriation that has v proved extremely valuable as enabling continuance of payment of the usual 8. per*'.cent, dividend per annum. \As stated by me at Jast annual meeting, the directors'' anticipations that on their estimates of the values good returns would be realised, from stocks held up is l fully borne out by the balance-sheet .'before you. The distribution of the available balance of profit your directors are sure will be satisfactory to> shareholders,: and they' therefore confidently recommend adoption; Different opinions may have existed as to the course adopted of using the dividend reserve, as was done,' but your di: rectors feel that not only no excuse for the .course is necessary, but that their decision was advise, and proper one. . "War was raging, with no certitude as to its,early termination: none, of the Allies doubted its ending- in their favour, but a much longer continuance with serious- enemy submarine activity might have so qfiected- market values of products of the freezing industry as to have very materially reduced .the balance shown in returns now before you. Premises, plant, etc., have been well.and efficiently maintained,' and.-the costs thereof .charged to- working 'expenses'; ample provision is make for depreciation, and a substantial amount is. added, -to" general reserve fund.. That,the business; of the company during the ' war . period has necessitated close, and anxious, attention goes without saying, but to have, come through as .we have greatly compensates for., the. work., and. anxieties.' (Applause.) „..,..-. ... .. . ( ".■ stores >ull.vv.:■ ;,., '''■': At the. end of the last ■financial year,;'. 1918, the stores .in'the'Dbmihion: were1' so full that, with the shipping outlook,, it seemed ;doubtful-:-if the stock-"of'-the' season just' past could .be dealt with. The numbers in store at 30th June, 1918, totalled the equivalent of 5,200,000 freight carcases. The-quantity at 30th June last •was 8,000,000.. carcases, : equal to 216,216 tons, and since then have only had relief to the extent of ,200,000 carcases. If, therefore, there was anxiety for the last season's stock,_" the outlook forl n«xt' season isimore serious. From the latest information available, however, I understand that for1 this'month and September 'there will ba a tonnage for 1,739,000 freight carcases in addition to dairy produce, and that . the Overseas Freight Committee hopes that its expected-'ship-ping reKef to Ist December will reduce stocks to.about 4,000,000■ freight carcases. This, however, is believed to be the best possible. Should this Ceventuate, and as good shipping arrangements continue thereafter, we should again squeeze through, but all of course, depends upon early and sufficient shipping. THE IMPERIAL CONTRACTS., :' ".Since directors last met you our. Government, at the request of producers and exporter*, successfully negotiated an extension of, the Imperial meat purchase contract to 30th June, 1920. ■ This extent sion, whilst deprecated by some of those, both in New Zealand and the United Kingdom," interested in its'export; has proved of inestimable value to New Zcnland exporters, as also under circijmstances existing at the time of its extension to the Imperial Government. Dependent' upon circumstances, over which there can be no control at this end, a further extension may be desirable/ '■'The v?fool purchase by the Imperial Government has worked well, and the valuations have well satisfied the terms of the purchase.- It is satisfactory to learn that; such wools as have been released by the Imperial Government 'for! sale.' by auction show substantial increases over the commandeered prices.

; "Increased cost of living has during the i year necessitated substantial additions to I our wages sheet, and this, coupled with the greatly enhanced cost of material, imported and otherwise, has'swelled our working costs very considerably. Our permanent-staff of all grades has acquitted itself extremely well throughout the war period, and your board has decided to recognise its good: and^.loyal'services. It will be necessary and desirable that the company should substantially ■ increase its investment in War Loan. This and the preceding matter of bonuses to -staff has been reserved for the consideration of the full new board.

! VACANCIES ON DIRECTORATE. "Not nnmindftl of the wish expressed by shareholders present at the last annual meeting, your directors during the year appointed two Wellington commercial gentlemen (Messrs^, 0. S. .Watkins, and A. P. Roberts) to the vacancies created by the resignations of Mr. P.. M'Hardy and Mr. M. Elgar, and, decided to.hold the vacancy due to.Sir W. C. Buchanan's resignation open for nomination of a shareholder for election at the present meeting. Sir Walter Buchanan's association with the freezing industry, and his formation and foundation of this company, as also his continuous service on the, board since its inception—thirty-eight years ago-^-is well known to you all, and his resignation from participation in the conduct of its business was accepted by his co-directors with sincere' regret. ; There being- no candidate for the two vacancies other than Mr. A. E, Mabin, whose'election is assured, and the re-election, unopposed, of Mr. Watkins, the wish of investing shareholders as to stronger representation of their Interests has been conr ceded, and the company, may I venture to say, be congratulated upon the addition to its Board of Directors." (Applause.) \The motion was ' seconded by Mr. Elgar. . ' . ' '.■"■■ Sir. W. Watson asked what percentage of the profit in tallow was included in the balance-sheet and what amount would be included in the profits disclosed' at 30th June next. .: ..,,;1 Tho Chairman said the tallow in question had been sold c.i.f., and only a small portion had been shipped. It was not [..prudent to say toy more.. ■.. ... •;.. ,;. Mr. 8, Kkteldie thought that share: holders should be -gftre- acre information than had been . given. He Hjade particular reference to buiidJtigs and stock, and thought that full particulars should be given of' the value and stocks sold to the Imperial Government,' and what the value is of the balanc'e/reO gaining. .. . .•"..' • ■"";■ Tii6...CJiairmaA £aid,-th,e amogut^apid^ift,

the Government was valued) at £461,260, of which tie company had received 75 per cent. • He added that the- Imildiruj; operations of the wmpaiiy hadi practically ceased. '.'.'•' : Dr. Prendergasfc Knight, chdnfl&an of a committee of shareholders, said the company had new a Board of Directors who were- mostly ia the prime of life, and it was for the shareholders to support them in- .their "efforts to make a succbbs of the company. : In answer U> further questions, the Chairman said the company, in regard to buildings, was finishing off small Blatters in respect to'-plaht; that w.."a11. .Butthe installation of .the, last machine meant the increasing of the killing capacity of the works from 2000 to 3500 a day.' ■'■ .- . "..": .'":'. '.' ■

, The report and balance-sheet wer« 'adopted. , '/ -' '-, . ■'.'' --„ ' Mesew. O. -S.- WaikSns and A. F.'Bo'v ■ berte were.elected; directors, and the re;muheration' of the directors',\yais'fixed.,at, £800/ , Messrs. A. T. Clarke, O. T. Kember, and E. W. Hunt were elected auditors, and the salary of each wasi raised irom £75 to £100. •'.'.

Some discussion took place on a .proposal by Dr. Prendergast Knight to alter the articles of association so as to make it easier for- shareholders to call a special meeting of the company. His proposal was that any four members holding in the aggregate 2000 shares should be able to call a meeting, and it was .pointed out by Mr. M. Myers, legal adviser "to the,board, that the Act provides that shareholders, holding onefourth of the issued capital have the power to call a special meeting. : The Chairman said the matter would be considered, and the discussion,.con.eluded. . ~" '.-;• „ . .:. , ■:..■ >.