Dairy Factory.

Manawatu Standard, Volume IX, Issue 52, 3 February 1885, Page 2

D airy Factory.

ANNUAL MEETING OF SHAREHOLDERS. The above meeting was held at 3 p.m. yesterday m Mr Linton's auction room, a largo number of shareholders m the Company being present. The chairman j of directors Mr A. Fergason, and the directors Messrs Monrad, Akers, Engels, Pratt, R. S. Abraham, and J. P. Leary being also present, The chairman opened the proceedings by reading from the Standahd tho advertisement convening the meeting. After which he proceeded to read the following report. REPORT. Your directors, hi presenting the first ennual report, have to congratulate the shareholders upon the successful inauguration of this undertaking. The statements and balance sheet attached will furnish full particulars of the transactions of the Company to the end of the past financial, year, and your directors are satisfied, from the results there shown, that success may be confidently anticipated m the immediate future. It will be apparent that the debit balance m the statement of profit and loss is inseparable from all enterprises of the land at their initiation, owing to items of expenditure which might fairly be charged to subsequent years. The factory has actually been working two months, hut the expensos have been incurred from the time of the registration of the Company. Your directors have much pleasure m stating that the ! machinery m use has given every satisfaction', and the factory may be considered m thorough working order. A | first shipment of butter to the English ! market will be made m February next, and your directors have every confidence that the result will be eminently satisfactory. Shipments will also be made at the most favourable time . to test the j Australian markets ; and with advanj tages for disposal ha the directions indicated, your directors have no fear of ultimate success. Before reading the balance sheet the chairman remarked that it might or i might not be hi accordance with the mmd of all directors, and if any differed m opinion as to what it should be, they would have an opportunity of expressing their objection. > *- ■ " The following statement of receips and expenditure, made up to 81st Dec, 1884, was then read : — ' RECEIPTS.

Thj? chairman further remarked with regard t# $h,e apparent loss of .£B4l as shown m the profit a.ns Joss account, he might say it was impossible for any undertaking to be started without an es< pemlituye of a kind which must be incurred m connection with preliminary arrangements and which' could not be recouped until the business had commenced to make a profit. They had found it necessary to engage a manager some time previous to the Company starting operations, and of course wages had to be paid him for his services. . There were also various other preliminary expenses incurred to make up this item. Mr Flood wished to know if the balance sheet was open for discussion before being adopted. Mr Hirst remarked that the expenses before starting, he imagined, should go to Capital account.

In reply the chairman did not think so. The item would not appear as a loss m that case, and nothing should be charged to a building excepting really part of the building. The secretary, by permission, here stated that as capital was an item paid into a concern and not out, Mr Hirst's remark would therefore not apply. Mr Engels did not agree with tne chairman. If the item referred to had been put as Mr Hurst suggested the statement would look much better than it did m its present form. Mr Flood then commenced a tirade ot abuse upon the Company, taking up a considerable portion of the little time the meeting, had at its disposal, and attacking the directors' management and all concerned. In fact he denounced the whole affatr from beginning to end, applying such terms as " outrageously extravagant," " unfair expenditure of the Company's money," " not one single redeeming feature m the balance sheet," " misplaced zeal and energy of the chair- ■ man," " manufacture of butter a fad of a very small section of the directorate," " gushing and lying report," " sod misrepresentation of facts," " a gigantic fraud," &c, &c. , The speaker was repeatedly hissed and cried down during I the delivery of his fancied eloquent critiI cism, and having taken his seat was followed by the chairman rising to repiy- . Mr Ferguson said the last speaker hod spoken well but was beside the mark m everything he had said. It was the first time he (the chairman) had heard that directors were averse to attend the meetings. Referring to his own position as chairman, it had never been a wish of his to hold such a post and he had remarked to people a long time before he filled it that whoever was elected would have a lively time of it and get smartly badgered for their pains. Mr Flood hod stated that he (Mr Ferguson) had instructed the secretary to sue him individually. This was not a fact. When the instructions were given to take proceedings to recover unpaid calls, the Secretary was directed to sue certain Karere shareholders and not to leave Mr Flood out. In reference to the butter' manufacture not paying, he thought it strange that so many thinking men should have decided to adopt the scheme. He might mention that Lord Veraon, m England, had started a factory on this basis and although for the first few years he lost considerably, yet now the profit derived was m thousands per annum. Concerning the outlay m engaging the manager previous to the starting of the Company this was necessary, as it was agreed that they should secure the services of a man thoroughly fitted for his work and. well acquainted m all branches and' that he might assist m advising as to the construction ot the factory building. As to the advertising on the "West Coast the remarks of Mr Flood were uncalled for and untre. No advertising whatever had been authorised by the directors. In the matter of manufacturing butter only the directors had done wnat they considered best for the Company's interests and the shareholders, and if.it was considered desirable to proceed differently m future the meeting could pass resolutions to this effect later on when this subject would be freely discussed. Mr Hirst remarked the large amount of arrears of calls unpaid. The chairman granted that m this respect the directorate had been rather remiss. Four of them had out of their own pockets advanced some £400 for payment of arrears of shareholders. Mr Sly wished to know what amount m calls, milk-sellers were m arrears. Ho was informed by the Chairman that thoße,aniountß were various, some £17, £15, £5, &c, also that these defaulters were being paid for milk by the Company. Mr C. Collis remarked that it was not definitely stated m the prospectus that only half of the capital would be called up but " anticipated"; this was the word used. Mr Monrad stated that m the prospectus it had been stated that so much would be Galled up previous to the Com-, paoy starting operations aud they need not apologize to anyone as the rules of the Company, had been strictly adhered to. ' In reply to Mr Sly tho chairman informed him that the number of milk sellers with unpaid calls was 11 and [ those paid up 7. 1 Mr Sly was glad to see that the seorp- | tary hnd got the books m working order but thought that the payment to Mr Keeling of £4 4s for auditing was a large sum. ■ In reply to Mr Stewart the chairman stated that the Company was certainly solvent. Mr Wingate here referred to the fact of shareholders being debarred from voting through being m arrears of payment of calls. Qe had been to the office several times to pay but had found it closed. : : ' . It was ultimately decided that any shareholders might pay his arrears' at the meeting previous to resolutions passed and they might then have the privilege of voting. The Chairman then put the adoption of the report and balance sheet to the meeting proposed by himself and seconded by Mr Flood pro forma and carried unanimously. The next business was the election of two directors m the place of Messrs J. P. Iyeary and Engels. The Chairman inreply to a shareholder stated that any one holding JO shares . was entitled to hold office as a director; and also read disqualifications from the Act. It was his own opinion that milk-sellers might bo elected directors. I Several gentlemen were proposed and declined { an-1 eventually Messrs WitiT gate, S. Coll is, and C. Walker jun,. were dully proposed and seoonded, and a ballott was about to be taken for the two required, when Mr Wingate withdrew leaving Messrs Walker and H. Collis elected. The Chairman m answer to a question stated that those directors being then elected would hold office for 3 years, and that there would be a fresh election in i 12 months of two directors when a ballot would decide which two of Messrs Monrad, Akers, and Ferguson would resign through eJHuxion of time. Mr Sly. suggested that the names of shareholders entitled to vote be read. The Chairman m reply to Mr Hirst stated that no director could vote unless he had paid up his calls m full. The Ohairqaan having read the names of shareholders entitled to vote, the business of electing an auditor was proceeded with. Mr Flood proposed Mr Walton, seconded by Mr Engels, remuneration to be fixed at i*2 2s. ' Mr Sly proposed Mr Keeling, seconded by Mr Hirst, same remuneration. ~A show of hands having been taken, Mr Keeling was declared elected by .a majority of one vote. Mr Buick, who hod from the opening of the njeeting not ceased to interrupt and oauso delay of- b,nsijie,s}8 r here n}«j4e. himself so obnoxious that the. ohairrnan intimated that if the remainder of the business was to be conducted m a proper and business like manner he would remain, if not he would retire from the chair. Mr Wingate wished for particulars as to the solvency of the Company, and the chairman made a detailed statement conclusively proving the thorough soundness of the concern. . , > < There was .£250 m money after all liabilities were, paid besides land,buildings, plant, pigs, horses and traps, &c., to the good. Mr Sly wished to know if the directorate contemplated converting tho manu-

facLure of the Company to that of cheese ouly, to which the Chairman replied m the negative. Considerable discussion took place on this question Ultimately the following proposition was made by Mr Hirst, seconded by Mr Monrad— That the making of butter m the Factory be continued until the returns of butter to be shipped by tho Aorangi came to hand. Thfj following amendment proposed by Mr Wingate, seconded by Mr Chisra — I'hat it is not advisable for the Company to continue longer m its present form, but that the directors bring up a report at tho end of seven days of tho total cost of milk purchased from the Bth to the 31st of January, 188^ und the quantity of butter produced iv same period. The amendment was lost. Proposed by Mr Monrad, seconded by MrWalker that thigCompany m future pay only 3d per. gallon per milk, showiug me w than 10 for c ° nt - of ceam. Mr Flood proposed as an amendment that tno meeting adjournd to that day week at same time, 3 o'clock. Amendment carried. Votes of thanks were passed to the chairman, and to Mr Linton for the use of tho room.

Calls irom Shareholders... £1142 15 0 Sheep sold 28 5 4 Plant account — Cans sold ... 25 18 0 Stock account — Milk and butter sold 12 2 2 Suspense accont ... ... 1.5 0 Overdraft from Bank ... 69 18 11 ,61279 19 5 EXPENDITURE. Property, land, and buildings £503 10 1 Plant ... 811 911 Preliminary expenses ... 32 16 2 Sheep purchased ... ... 21 16 0 Stock— Milk purchased ... 105 7 8 Pigs — Sundry purchases... 29 6 0 Management — Salary ... £2110 0 Wages ... 11l 8 1 Advertising 36 6 6 Printing, stationery, &c. 32 14 7 201 19 2 Interest — Discount on Bills 2 7 11 Legal expenses ... ... 8 4 10 MiscellaneousFreight and carriage ... 4 7 8 Eent ... 12 10 0 Insurance ... 20 4 0 Bailway cross- ; ing ... 612 1 Coals ... 9 6 0 Begistration - 010 0 Property Tax... 0 6 1 ; Other charges 9 6 10 — 63 1 8. £1279 19 5 PROFIT AND LOSS ACCOUNT. Dr. Preliminary expenses — proportion for past year £ 10 18 8 Interest on bills ... ... 2 711 General expenses ... ... 349 0 1 £862 6 8 Cr. Sheep account £ 6 9 4 Stock account ... ... 14 8 8 Balance .;. 841 8 8 £362 6 8 CAPITA!, AW WAUHrWBS, Capital — Total amount received from shareholders .... ...£1142 15 0 The number of shares is 738 The ain't, paid f share is £2 Amount of arrears of calls as V list is 333 5 0 £1476 0 0 Debts and Liabilities of the Company — Debts for which acceptances jjaye been given ... 684 4 5 Debts for supplies p.f stock and other articles ... J. 84 4 3 Plant , ... 34 6 8. Salary ... ... ... '7 610 Wage* '„, », - . 45 17 11 Adyertfsfng „, .„ .., .1 4 0 Blateksinith'swork.,, .„ 0 J9 0 Stationary & postage r , % (5 7 Suspense AcPPWt .., ,„ 1 5.0 Bank overdraft .., „, 69 13 1\ 981 8 5 £2457 8 5 PROPERTY AND ASSETS. Property held by the Com« pany — . V 1 'Freehold land & buildings... £503 10 1 , Stock-in-trade ... ... 236 7 0 Plant... ... ... ... 964 210 Pigs ... ... 87 17 0 . 1731 16 11 Debtß owing to, the Company— ■ . Considered good, for which . the Company hold no security V»r 29 0 4 Arrears of calls ... ... 8.3.8. 5, 0 862 5 4 Preliminary Expenses — Proportion to be charged to subsequent years ... 21 17 6 Balance — Profit and Loss Account ... 341 8 8 £2457 8 5