Cheltenham Co-operative Dairy Company.

Feilding Star, Volume XVI, Issue 82, 1 October 1894, Page 2

Cheltenham Co-operative Dairy Company.

♦ HALF-YEAELY MEETING. The third half-yearly meeting of shareholders in the Cheltenham Co operative Dairy Company was held in the schoolhouse on Saturday evening last, to receive the report and balancesheet, elect directors in place of those retiring, and general. Mr F. Spencer, chairman of directors, occupied the chair and read the notice calling the meeting. The minutes of the previous halfyearly meeting were read and confirmed. The report and balance-sheet were read as follows : — "In presenting the balance-sheet for the half-year ending August 31st, your Directors again congratulate the Shareholders on the successful working of the Company. In March last your Directors urged on suppliers the necessity of keeping the factory working through the winter. This, they are glad to say, they were able to do, and although there is an apparent loss on the six months working, it will be easily recovered during the coming summer, and meanwhile a good hold has been obtained of the market, and the confidence of buyers has been won as to our ability to keep up the supply of a prime article all the year round. During the half-year 831,3261bs of milk have been received, from which has been manufactured 35,2021bs of butter. In accordance with the agreement made* with the Birmingham settlers a , contract was let for a creamery in that district, which is almost finished, and the Directors anticipate having it in working order by the middle of October at latest. During the half-year considerable additions have been made to the plant and buildings, and your Directors congratulate the Shareholders on having what is believed to be the most complete factory of its size in the colony. Owing to the unsatisfactory state of the butter market your Directors have not yet concluded any arrangements as to tbe disposal of your output for the coming season, but from communications received from men well versed in the trade they are sanguine of obtaining a satisfactory price. In accordance with the Articles of Association, two Directors, Messrs R. Burne and W. Mitchell, now retire, but are eligible for re-election. — F. Spenceh, Chairman." Balance-sheet of Company's affairs up to August 3lßt, 1894. — Liabilities : Nominal capital, 2500 shares at £2 each, £5000 ; to capital account, 1275 shares at £2 each, £2550; less unpaid calls, £212 10s, and capital uncalled, £1886 17s 6d, £1549 7s 6d, £1000 12s 6d ; premiums on 215 shares at 5s per share, £53 Ids; sundry creditors, £369 17s lid; interest on paid-up capital, £26 ss; cheques outstanding, £87 4s 9d; overdraft at Colonial Bank, £1677 10s 8d ; Total, £8365 5s lOd. Assets: Land, pi&nt, buildings, &0., £2814 14s ; stock (including butter, salt, paper, &c.), £64 18s 9d ; sundry debtors, £228 4s lid ; cash in hand, £4 17s 2d ; profit and loss, £252 11s; Total, £8865 5s lOd. Profit and Loss Account. — To general expenses (including boxes, stationery, stamps, printing, oil, &c), £160 Is 9d ; interest to bank, £80 14s 6d ; carriage of butter, £46 36b 7d ; wages, £131 11s 9d ; fire wood, £94 9s 7d; paper, £8 13s 2d; cheque-book, £1 ; payments to suppliers, £101? 19s 8d ; Total, £1587 6s 7d, By balance at February 29th, 1894, £7 18s Id ; sale of butter, £1255 12s 6d ; buttermilk. £5 10s ; sale of horse, £16 ; balance, ±252 lls ; Total, £1537 6s 7d.— Reginald C. Templer, Secretary. Certified to as being correct by W. G. Haybittle and G. P. Church, auditors. Mr Speacer, in moving the adoption of the report and balance-sheet, said it would be noticed that an amount of £252 was put down as profit and loss, but it was not a real loss, although they had made a deficiency on the half-year's working, but this was owing to their running through the winter, which was necessary to cultivate a local market. Of the £523 under profit and loss £160 was payments of liabilities contracted during the first half-year. There is really not such a loss as might be assumed, as a portion of the expenditure was for plant. During the half-year they had averaged 1931bs of butter per day, and it took 241bs of milk to make a pound of butter. If they had had more milk their expenses would not have appeared so great, and they would not have lost anything. They had been successful in the local market, realising as much as Hd per 1b for butter. Since tbe report was printed, he was pleased to say that arrangements had been made for the sale of the season's output through H. Reynold, of Auckland, who had guaranteed 9d per Ib, and any surplus over 5 per cent, would go to the company. He did not think that any factory in New Zealand had attained such a result as their company had in such a short time. He moved that the balance-sheet, as read, be adopted. Mr Law asked if the £250 supposed to be deficient in the assets was in the plant. Mr Spencer applied in the affirmative. Mr Fergusson asked if, in the face of the apparent deficiency would they continue to pay the same price for the milk. Mr Spencer : There would be a lot of little things which, they would not have to spend money on this season and the increased supply of milk would cover the cost. Mr G. B. Jones asked how they would wipe off the deficiency. Mr Spencer : The approximate loss was about £150. The £228 was all butter with the exoeption of £6, and £170 game forward the day after the balance-sheet was struck. Mr Morton asked if it was not usual to count what was in the ageat'a hands as an asset. Mr Spencer: At the time the balance-sheet was struck £170 was due. Had it came to hand the day before it would have been in a different accouut and the deficit would not h,ave looked, so much, The profit and lass wag the trade acpount. Mr A. Fergusson said the profit and loss showed a loss of £25,2 but seeing that this deficiency meant a pertain amount of butter in hand and in the hands of agents this company had done remarkably well. He had compared this with last half year's balance-sheet and he found they had been getting 3-Bths of a penny per gallon more thap they should have. He bogged to second the adoption of the report and balance-sheet. Mr W. D, M. Banks asked if there

would not be other incidental expenses. Mr Spencer : That would be more than overbalanced by the extra supply. The cost was 2Jd per pound, while with a large supply they would probably box the butter for l£d per pound. MrG. R. Jones agreed that there were difficulties in starting new factorites. This company had come off very well indeed. In reply to Mr Simpson, Mr Spencer said they had a supply of wood in hand to the value of £21 17s and £13 18a was outstanding from last half year. The firewood consumed at the factory aud creamery for the half year cost £60. On the motion being put to the meeting the adoption of the report and balance sheet was carried. The chairman thought it necessary to increase tbe number of directors as it was advisable to have one near the Colytoa creamery. The articles allowed them to increase the number. Mr W. D. M. Banks moved that the number of directors be increased to nine. Mr G. R. Jones seconded. Mr W. Jones moved, as an amendment, and Mr Fergusson seconded. That the number of directors be eight The amendment was carried bi^j* large majority. "^F Mr Cunningham proposed, and Mr Banks seconded, That Messrs Burno and Mitchell be re-elected directors. Mr G. R. Jones proposed, and Mr W. Jones seconded, That Mr W. G. Pearce be a director. Mr G. R. Jones was proposed but declined to stand. As these were the only nominations, the chairman declared Messrs Burne, Mitchell and Pearce duly elected. Mr W. G. Haybittle bavin* sent in his resignation as an auditor, nominations to fill the vacancy for the remaining half year was received, Messrs Fer« gusson, Tappin, Goodbehere and Sherwill being nominated. On a ballot being taken Mr Fergusson was elected. Messrs Coventry and Cunningham acted as scrutineers. Mr Law, on behalf of Mr Mills, hoped the shareholders would allow the chairman some remuneration for past services and moved a resolution to that effect, Mr Church seconding. MrShortall moved that he get ten guineas for his services during the past six months. MrTempler explained that the ten guineas granted last half year was really to reimburse Mr Spencer for money spent and was shown as a bonus in error. He was sure that gentleman was entitled to receive some pay for the time and work he gave to the company. Mr G. R. Jones supported the motion. Mr Fergusson thought they should leave the past alone but should allow Mr Spencer £50 for the next twelvemonths. Mr Templer said the company would be able to pay the 6 per cent for the coming year and also for the past year. He would suggest that Mr Spencer be money for past services. Mr Fergusson supported this suggestion. Mr G. R. Jones thought it would be more to the point to pay ten guineas, and as the Chairman declined to put Mr Shortall's motion, seconded by Mr G. R. Joues, That Mr Spencer be given a bonus of ten guineas, he put it himself declaring it carried. Mr G. R. Jones thought the present system of testing was unsatisfactory and should be looked into. He thought a sample of milk should be taken daily and tested each week. It was an important point as suppliers were paid on the result. Mr Spencer said the test was checked by the churn, and it was from this suppliers were paid. Mr Templer explained that the reason the test and churn did not correspond at first was because the figures were made up on a wrong basis. The manager of the factory, Mr Niccols, on being asked to explain, said that in a twelve month he was sure they would not be far out "in remuneration. People did not take proper care of their milk, which they should stir well at night. The fault was with the people and not the factory. ■• \ The Chairman would advocate Mr Jones* idea, if it could be done. The Government Bill, now being put through the House, would compel suppliers to use milk coolers, which he would advise them to get. Mr Jones proposed, and Mr Short-all seconded. That it be a recommendation to the Directors to consider the advisability of improving the system of testing. Mr Cuningham proposed, as an amend- » tnent, and Mr Banks seconded, That suppliers are satisfied with the present testing. The amendment was carried. Mr Cuningham proposed, and Mr G. R, Jones seconded, That a vote of thanks be accorded to the Directors and their staff.— Carried. Mr Buchanan replied to the complimentary vote and the meeting adjourned.