Wanganui Dairy Factory.

Manawatu Standard, Volume IX, Issue 56, 7 February 1885, Page 4

Wanganui Dairy Factory.

The annual general meeting of. shareholders of the Wanganu Dairy Factory took place on Feb. 2 at the company's office. The chair man (Mr J. E. Wilson) presided. There were 22 shareholders present, The Chairman having read the report and balance-sheet for the year ending January 7th, 1885, said that the amount of cheese as shown m the report had been supplemented by about 5 tons made since that date, making altogethar a total of over 21 tons manufactured during this season. — A shareholder| asked an explanation of the item shown m the balance-sheet m reference to live stock. The Secretary explained the apparent discrepancy between the two amounts by showing that the difference was still owing to Mr F. R. Jackson.— Another shareholder asked an explanation of the donation of five shares. — Mr Filmer said that the five shares had been voted to the chairman for valuable services rendered m visiting Ashburton and m other ways. — The same shareholder wished to know if the cheese I was accumulating. In reply it was stated that it was, to a small extent. I— A question was also asked concerning the action, if any, that the directors intended to take to compel defaulting shareholders to pay up their calls. — The Chairman replied that the matter was under consideration, and would be decided upon at the next meeting of directors. In reply to a further question, the Chairman stated that the amount as shown for salaries, &c, covered all expenses, and that it was not likely that the wages account would be lessened during the coming year. The third man was not put on with" out great consideration. There was a very great deal to do, and the men appeared to be fully employed. — Another shareholder remarked that if they were short handed it might cause a loss amounting to a great deal more than the cost of paying one man. — The . Chairman said that the men employed m tliefactory must be scrupiously clean, and it would not do for them to go from cleaning the piggery to the work m the factory. — The Chairman was asked if the directors could see | their way clear to carry on, seeing that the overdraft was so large. - In reply, the Chairman said that they had been able to do so m the past, and they would be better able to dp so m the future, as they had got over their early difficulties, and he might add that they expected that the pigs would pay very well. — Mr H. I. Jones called attention to a statement made at the last annual meeting, that the weight fixed as a gallon, viz, 11 pounds would just leave a margin of profit. He wished to know why the weight had been reduced. — -The Chairman stated, m reply, that it had been reduced for two months lust season as a matter of policy, but all the butter this season had been bought at 11 pounds to the gallon, which gave a good margin of profit. He also said it was not probable that milk would be bought according to quality, as it would be very inconveinent to do so. The following is the Report.— ln presenting their annual report and balance sheet, the directors have to congratulate the shareholders on the encouraging prospects of^this company for the future. Shareholders will bear m mind that the company's actual operations at the factory commenced on the 2nd of January, 1884, too late m that season to expect anything like appreciable results, and, consequently, were somewhat handicapped at starting. The average daily number of gallons of milk received into the factory from the 2nd day of January, 1884, to the 21st day of June, 1884 (date of closing), was 130 gallons, and shareholders will see that the factory could have received thrice that amount of milk with the assistance of one additional man. The factory is now receiving upwards of 600 gallons per diem, and up to the date of balancing (January 7th, 1885) over 37,000 lbs. of cheese have been manufactured this season. With regard to the quality manufactured, on all sides it is admitted to be a sound marketable article, and, as a proof of this, the storekeepers m this town have ceased to import any cheese, whatever, which already has kept fhe net amount of 8s 8d from leaving the district for this article, and it is confidently "expected that the whole of this seas-»n ? s stock will be disposed of m and about the district. With these encouraging prospects before them, the directors now wish to place the financial position fairly before the shareholders. Now that the company has been firmly established, it will be interesting to the shareholders to know that a fai? percentage of profiits is being realised. Theundermentioned figures compria the operations for the past year. The small supply °f m 'H { during the first season did not admit of a profit be. [ ing made, consequently the profits of the second season are fully pbsorbed, and the remunerative character ot the company's operations will not be apparent until the close of the next year. The items of receipts and expenditure are taken from the balance sheet, which is already m the hands of tlje sharholders, and iire as follows : — Re/eeipfc, Cheese, sold, £683 8s 8d ; rent :^l 4 Us 6ki; stock of cheese on hand, J?5& 2s ; Jive stock, .£123 17s; materials and fuel, £39 Is ; balance, £5 10s 3d.: total, ,01,721 10s 7d. Expenditure: Stationcyr, 13s 6'd ; advertising, £5 7s 6d ; legal expenses, £11 8s 6d salaries and wages, £1120 13s 9d ;live stock <£123 17s; milk, .£524 6s 13d ; interest, Llls

6s 4d; fuel, L 42 9s lOd ; freight, IJ'ills 9d; sundries, L 45 l(3s ; milk unpaid for, L 454 2s 2d ; material L 39 Is; total, L 1,721, 721 lOss .7(1 The small loss thus shown resulted from the limited character of the company's operations during its first season, together with special expenditure, such as legal expenses and other incidentals connected with the inauguration of the company. The manufacturing capabilitica of the plant being how fully exercised by the large daily supply of milk, and the expenditure being now entirely confined to ordinary working expenses, the shareholders will m iuture reap the full benefit of the profit made. It will be seen on reference to the balance sheet that the total net amount of capital subscribed is LI ,567 1 5s, and, on the other side, that the net amount expended m land, buildings, plant, and live stock (which are all tangable assets) is L 1,825, 825 3s 9d, the excess payments being included m the present overdraft at the bank of Australasia, secured by a cash credit bond signed by the members of the present directory. Your directors would further point out that extra expenditure has been required m procuring additional plant m order to complete the requirements of the factory when working to its utmost limits. The whole of the plant is m perfect working order and condition, and nothing further will now be required. Your directors think, with the above encouraging prospects before the company, that the present is a most suitable time for offering the balance of the shares to the present shareholders and public, giving preference, however, to the present shareholders m their allotment. Should the unalloted shares be disposed of, a dividend to the shareholder would at once take the place of interest of the bank, and the directors therefore strongly urge upon the shareholders the advisability of placing the balance of the shares of the market at as early a date as possible. — J. E. Wilson, chairman. In moving the adoption of the report, the Chairman said that though things had not been quite as good m the past as they might have wished them to be, yet the circumstances had been exceptional. Their capital had been too small, and so they had to go on the bank and ask for money, for which they had to pay nine per cent., which ought to have gone into the pockets of the shareholders. He could show by a little calculation that they were now making a good profit.— Mr Murray seconded the motion, and thought they had every reason to be satisfied. Elkction of Directous anci Auditor. — -The retiring directors were Messrs Morgan. Burnett and King. The two latter were not wiling to stand for re-election. — Nr Sommerville proposed Mr John Morgan for re-election ; seconded by Mr Wood. The mover said it was an unfortunate thing that those on the directory were cattle owners, and consequently received a direct bonefit from the factory. The directors felt this,but conld not see their way out of it, and he could not either. — Mr Burnett was proposed by Mr Aiken, and seconded By Mr Higgie. -'—Mr Sommerville was proposed by Mr Albert Barns, and seconded by Mr Aiken. — These being the only nominations, they were put to the meeting and declared duly elected. — Mr John Notman was appointed auditor at a remuneration of two guineas. The meeting then terminated.