CISBORNE SHEEPFARMERS’ FROZEN

Gisborne Times, Volume XII, Issue 1060, 30 November 1903, Page 2

CISBORNE SHEEPFARMERS’ FROZEN

MtAT COMPANY

ANNUAL GENERAL MEETING

The annual general meeting of the Gisborne Shcepfarmers’ Frozen Meat Company was held on A. DeLautour, Chairman of Directors, presided. There wyre also present: Messrs F. Hall, J. Clark, T. Holden, H. Barker, W. Cooper, E. M. Hutchinson, W. D. Lysnar, V. Barker, W. R. Barker. D. Moriee, O. M. Monckton, and W. K. Chambers.

The report and balance-sheet (previously published) were taken as read.

The Chairman made the following statement :—“ On the 20th March, 11)02 —only 17 months from the close of our financial year—the Gisborne Freezing Company held its last annual meeting and decided to sell its business and the undertaking for a sum equal to the capital subscribed and its liabilities. The present Company was incorporated on the 19th day of March, 1902. It commenced active business on the 28th February, 1902, having entered into possession of Ihe Freezing Works under contract of purchase with Mr Shelton. The profit for the first short season, ending 16th July, 1902, was £1385. The present financial year, closing 31st August last, terminates 17 months as the aggregate of the Company’s operations. The profits for that period make up a sum of £.18,280 7s Bd, or £1798 12s isd in excess of the whole capital [subscribed by the shareholders, who have no further liabilities of any kind ,This result is rather a startling one, and at first sight might suggest that the Company had exploited unduly its suppliers. Permit me to show you that this is not, so. For the first short season of five months, I find that shareholders received a reduction in charges as compared with those obtaining at other works available to them of Is 0 : : t d per head of sheep on both summer and winter rating. For the year closing in August last, the reduction in share-

holders’ favor was not so great, .but was still a substantial sum, being 6d per head summer rating and 2!d per head winter rating. Although the reduction for the year ,was not so great as before, it has to be remembered that the competition of the Company had lowered the rates at the other works, by which all shcepfarmers, whether shareholders or not, reaped the gain. For

the current year, the reductions per head arc 7J-d summer rating and 3Ad winter rating. To make this plainer, I propose to show you what the aggregate returns have been to the shareholders on last year’s output only. The actual cash saved by ■shareholders has been £3OOO. This

sum is the aggregate result of the reductions in their favor of 6d and 2Jd upon sheep, lambs, and beef frozen on their account. But shareholders have also received a considerable increase in prices received through the Company’s operations, which cannot be put at less than Is (id per head of stock frozen. This aggregates a total of £9750 upon (Shareholders’ stock, equal to 130,000 frozen. Summarising these results we have for -the year Saving on charges ... £3OOO Bonus to Shareholders 815 Dividend at 5 per cent. 821 Increase on receipts from sales ' 9750 £14,416

So far then from the Company, having pressed unduly upon its shareholders* we find that in addition to the profit of £13,895 6s lOd made for the year, the shareholders nrc receiving in savings and accretions to values equal to £14,416. Allow me also to 1 remind you that the profit of the year belongs to the shareholders and is paid to them in cash, or held by, them with but slight diminution, if any, in plant and real assets. You will remember that the lease and plant were valued to you last year at £24,943 10s, exclusive of stocks in hand £2751 10s Id. This year lease and plant are valued at £34,087 10s 4d, exclusive of stock £3BOI 12s Bd. This does not, however, represent the true value of the undertaking. •The works are now in an efficient state, and are able to freeze and hold 1500 sheep per day for 30 continuous days, while for a single day 2000 can be dealt with in all'departments. The engine power available could dispose of a still greater number if the accommodation allowed of this. If you remember that the (works were bought as equal to an out-turn of only 800 per day, you will, I think, agree that the proportion of profits invested in the works has been a prudent investment. It

id too early to speak with confidence as to the returns of the present year |At present the stock offering is equal to the stock: coming forward last year to the same date. Still, we near of sheep being backward, while the market for store sheep outside the district, may affect our returns, Without in any way pledging the directors,- and hearing in. mind the heavy engagements of this year presently to be alluded to, I think the shareholders may reily upon a bonus of even a mofcp substantial kind than what we have been able to return this yean In disposing of their sheep, shareholders would do well to consider that a saving upon freezing charges and returns for byeproducts, cnual to 6d per head and 3d bonus, would, without dividend of 5 per cent., be a return to them of £37 10s per 1000 sheep. This return upon our output of. 150,000 sheep would equal £5550 returned, exclusive of a dividend. The management has devoted considerable attention to the/question of whether shareholders in their individual interest should sell or ship upon owner’s account So far as it has been possible to test returns kindly placed at our disposal for analysis, those who through the whole year, shipped on their own account, did better than those who sold in the colony. Dealing with the banks or reliable agents who deal fairly as to the commissions charged, i't is plain there is little or no risk in shipping throughout the year on owner’s account. You will have noticed that a company is being formed in Ohsistchurch with the vicsw of giving the New Zealand farmers a better position for the sale of their produce in England. The intention of this company is excellent, and it is worthy of every encourage- [ inent. Its result, with capable manj agement, should be eminently satisj factory to those wtoo support it for speculative reasons, or for the more commendable purpose of aiding an effort which aims to benefit the New Zealand farmer.—The relation® of the company with its employees have been ail that could be wished. The directors have received most loyal able, and unsparing aid from the manager and the engineer, while the foremen, cleiical staff,- and hands in all branches have done their best to make the vyorks a success. It is truethat a union has been formed affecting the two freezing works, and a claim lias been formulated and awaits hearing, which may prove inconvenient to the company, and if acceded to as claimed will very possibly be non-productive to the men. This movement happily has not arisen 15°™ an y actual grievance suffered by the men, hut from loyalty to the labor unions of the colony—the leeitimate . offspring of the industrial legislation of the la«t few years whieh all must wish well to, but which it must be admitted is yet somewhat upon its trial. I congratulate you, gentlemen, on the suecessful result of vour enterprise. The result shows tlTat co-operative enterprise of the kind is perfectly safe, and may be extended with similar success to a combination of the farmers for self-management of all branches of mercantile business which at present, for the want of opportunity rather than from reason, they have elected to have done for them at the cost of the profit given to others, which should have been in their own

pockets to aid in the improvement* their own holdings and increased p duction for the benefit o£ the com The then moved, “ That the report and balance-sheet be adopted, and that a dividend of five per cent for the whole year (inclusive of interim dividend of 2 per cent, already paid by the directors, hereby, confirmed) be paid, and that a bonus be granted to all shareholders who,; nrior to the closing of the share register on October 21st, 1003, were fully qualified in terms of Article No. 0, of lid for every sheep or two lambs, the property of such shareliolac*r, received ior export at the works during the financial year, one cattle (beast received for export to count as 12 sneep ; and lhat the balance dividend of 3 per cent, and bonus he payable at the oilices of the company, tiiiS day. ti,i nt The motion was seconded by iur i-j Holden, and carried unanimously. On the motion of Mr Lysnar, seconded by Mr Cooper, Messrs I'. B. Barker, J. Clark, and B. M. Hutchinson, the retiring directors, wefre re-elected, and Messrs A. brilliant and H. M. Porter were re-elected au-

■ditors. .. , Keferring to the question of tiglitcring, the Chairman said the dircclors had been impressed with the cost to the Company of their lightering. The cost last year for lightering was £lßtis, and in view of labor " combinations in this district they had intimation that the lighterage this year would be raised. The same output which cost it IS 05 last vear would at the new rates -they, would have to pay, and indeed'were now paying, cost £22211, or an increase of £364. The directors consulted with the manager and engineer and having the advantages of their services m Auckland found that they could get a lighterage plant which would cope, at any rate, with the work they now had,'-paying £1:100 for a steamer, and £IOOO apiece for three lighters For a .sum of £4500, they could supply all 'their 'own requirements, and could carry wool for shareholders who saw lit .to entrust it to them, and as opportunity offered they had power under their charter to do lightering to some extent for others. The expenditure for lightering plant had been incurred or was pending, as the directors could not wait for this meeting. As it was they had a struggle to obtain a plant which would be in a position to go to work before the full pressure of the season The purchase of the plant was likely to be eminently satisfactory to them as a Company, as the hands employed could be used in connection with other work for the Company, and in that way they were advantageously placed. On the motion of the Chairman, the following resolution was adopted —“ That the Company, being empowered by its memorandum of association to carry on the business infer alia of carrier by land and by water of all k nds of goods, merchandise, produce or materials, hereby approves of and confirms the action of the directors in providing a steam tug and entering into engagements for the supply of three lighters, and ratifies all contracts made in connection therewith ; and further, as being incidental to and necessary for its business, hereby expressly sanctions the carrying on by the directors of the business of lightering at the port 'of Gisborne, for the Company, the shareholders thereof individually, and the public, for hire, or reward, or otherwise, as the directors in their discretion see fit.”

Mr F. J. Shelton, Wellington, wrote as follows : —“ I observo from your roport to shareholders that you have had a very successful year, and have not found it necessary to provide anything for depreciation of plant or promises. Having already lost so much through my initiation and developing tho works, of which the Gisborne Bheepfarmorß havo had the whole benefit, I would ask consideration of the question at your annual mooting 'as to whether undor tho circumstances it would be a fair thing that tho Sheopfarmers’ Meat Company should vote mo a sum equal to the difference they paid me, £22,745, which, under pressure at the time I had to accept, and Mr Niven’s valuation, £24,081. I hope this may receive the favorable consideration of your company.” After some general discussion, Mr Lysnar moved “ That the matter bo referred back to the directors for consideration, the directors to report to a general meeting of shareholders if in favor of making a recommendation." On a division being taken the motion was lost by a large majority, Mr Clark referred to the amount of work which the formation of tho Company had entailed upon the Chairman (Mr- C. A. DeLeutour), They had been given an account of the profits. “ They are magnificent, something wonderful altogether to my mind,” remarked Mr Clark, '• and a great part of them is due to tho Chairman’s attention to tho Company. Tho amount of labor and attention ho has given to it is very great. I think wo should not ask any gentleman to do all this for us for nothing. At last annual meeting I proposed something, but Mr DoLautour dodined because he wished to see another season’s work over. If Mr DeLautour had taken advantage of his legal position it would havo cost us far more than what I am about to propose, that he should be offered a remuneration of £350 for his services. It is tho least we can give.” Mr Cooper seconded the motion, remarking that if it were not for the Chairman tho company would not be in existence. ■ (Hear, hear.)

Mr Lysnar, in supporting the motion, pointed out that the grant covered the initiation of the company and two years’ work.

The motion was unanimously carried. The Chairman, in acknowledgment, said he had entered the company, not with the intention of making anything out of it, but as a small sheepfarmer among Titans, and having sons whom he hoped to bring up in the industry. A vote of thanks to the Chairman for presiding closed a most successful meet* ing.