SHANNON CO-OPERATIVE DAIRY CO. LTD.

Manawatu Herald, Volume XLVI, Issue 2774, 21 August 1924, Page 3

SHANNON CO-OPERATIVE DAIRY CO. LTD.

ANNUAL MEETING OF SHAREHOLDERS. The annual meeting of shareholders of the above company was held at Shannon on Saturday afternoon, there being about thirty shareholders present. Mr R. W. Taylor, chairman of Directors, presided. DIRECTORS’ REPORT. The chairman in submitting the report congratulated the shareholders on the result of the year’s work. The quantity of butter manufactured was 703 tons 10 cwts. 2qrs. 161b5., an increase on the previous year of 9 tons 2 cwts. 3 qrs. 7)bs. and constitutes a record in manufacture. The average monthly payment for suppliers’ butterfat was 1/6.79 and provision has been made in the balance-sheet for a further payment of lid on the season, giving a total average payment for the year of 1/8.16. The '■average grade was 93.39. Another* successful year is shown in our store business. The sales were £28,270 5/1, an increase on the previous year of £5,183 15/9, the gross profit being £2,413 16/4, after deducting wages £I,OOO, freight. £B5l 7/2, insurance j£6s, interest £2O, a nett profit of £477 9/2 is shown. The amount to ci'edit of the profit and loss account as shown on the balance sheet is £3,058 11/7. Out of this amount the directors propose paying the usual 6 per cent, dividend and carry the balance forward. An address was delivered by Mr Smith, of the Agricultural Department, on the necessity for insisting on the highest quality of cream to lie delivered at factories and the appointment of a. dairy instructor in the district.

On the motion of Mr Walter Carter, seconded hv Mr Brown, it was agreed that ir be a recommendation from the shareholders to the directors to go into ihe matter of adopting a system of cream grading and a further recommendation from the shareholders that the employment of ■) dairy instructor be favourably considered by tile directors.

The chairman quoted figures showing the excessive charges in connection with the marketing of butter abroad, thus enabling the suppliers to get some idea of the cost He pointed out that on the figures ho* had quoted it meant that when suppliers saw in the papers that butter was realising 170/- per ewt. on the London market, it would be more like 155/- they would receive. This was one reason why the company was wise in joining the Control Board and it was only co-op-eration that would assist them in avoidmg these excessive charges. In reply io a member lie said the manufacturing charge and other charges totalled 2.4 d per lb. In moving the adoption of the report and balance sheet, Mr J. Chrystall said the company was to be congratulated. On the figures shown the cost, of manufacture was shown to lie slightly under Id per lb., which was highly satisfactory. A question to be taken up by the company was the present bank exchange rate. To the small farmer it was equivalent to a tax on export of 12 per cent, on his returns. He eulogised the management for its splendid work during the past season. ,

Mr H.. A. Thompson seconded the motion.

DOMINION RECORD PAY-OUT, Mr Stiles said the pay-out constituted a record for the Dominion and was all due to the perfect combination existing between the suppliers, workers and factory manager, In the over-run they had got to the limit, thereby giving the best advantage to suppliers. He advocated, a manufacturing account being set up together with a oroiit and loss account on the store trading account, but these were matters that could be brought up at a directors’ meeting. He would recommend that these accounts should be ~ drawn up to enable shareholders to see what the cost was. The report and balance-sheet were adopted'. NOTICE OP MOTION LOST. A notice of motion bv Mr J. Chrystall, “That one fully paid up share be issued to shareholders on the basis of one share for every three shares held on June 3(Jth, 1923/’ was withdrawn by the mover as he had found there jvas not the required number of shares available. By permission he substituted the following: “That' all £1 shares allotted by the company previous to June 30th, 1923, and also to include all shares upon which a premium of 10/- per share has been paid together with 1(3/- per share iu fee allotment and calls be written up to their face value.” Mr Chrystall stated his chief reason in bringing forward the motion was in the direction of justice as he considered those shareholders who had pad the 10/- premium should be compensated. Messrs James and Stiles strongly opposed the motion as they considered it was not in the interests of the company. Mr Carter: I understand there is a reserve of £4,000 and 1 think the 10/- premium should be refunded and also what was paid the old shareholders. Mr Thompson, in supporting the motion, said it would be doing something to refund the money. The chairman said no doubt the original shareholders took big risks and deserved reward. This year the company had improved its position to the extent of £7OO. but the original shareholders had put aside far more in proportion to their- out-

put (u establish ihe business and should be rewarded. Mr Chrystall di*ew attention to the fact that the directors took a greater risk in taking shares when the company’s overdraft was £3,000 and a risk was also taken in writing up the shares 10/-. He contended all should be rewarded equally. The motion was lost, Mr Stiles then gave notice of motion that the refund of 10/- be made. APPOINTMENT OF DIRECTORS. Messrs R, W. Taylor and John Chrystall, the two retiriner directors, were then re-elected unopposed. Messrs Henry Kember and Son were re-elected unopposed as auditors for the forthcoming* vear. Votes of thanks were accorded the manager, secretary, staff aril to the directors and the chairman.