ROTORUA DAIRY CO., LTD.

Putaruru Press, Volume I, Issue 10, 20 December 1923, Page 2

ROTORUA DAIRY CO., LTD.

I ANNUAL MEETING. , I - | ■ Some Sharp Criticism. I Tlie annual meeting: of the ltoto- | fviui Co-op. Dairy Co., Ltd., was hold • [last week. Mr. W. J. Parsons, chair- j man of directors, presided over a good attendance. I The annual report as below was taken as read:— “ Your directors have, pleasure in placing before vou the annual repoi t and balance-sheet for the thirteenth year of the company ending June 30, 1923. It is gratifying' to report that, [contrary to expectations, the payment If or butter-fat this year will be larger Khan the payment made last. year. ■Payments made to suppliers during [he year for butter-fat averaged ■ 5.4 ( 1 'per lb, and a further payment If l.sd per ib is recommended, makl n ,, t with the proportion of cartage laid (.43), the total price of 17.fid |er lb. The number of suppliers inBreased during the year by 35, the Iota! now being- 194. There has also Been a substantial increase in the outBiut of 08 tons, the total output for lire rear being 280 tons 15 cwt. Pursuant to your instructions at the last Bnnual meeting, the memorandum ot Association has been altered and [mended, and new articles of association have boon adopted. The nominal [apital of the company lias been in[reased to £IO,OOO. Tenders have been tailed for extensive alterations and (additions to the factory buildings, (which when completed will be one of (tiro most up-to-date factories in New (Zealand. The directors who retire Ibv ballot this year are: Mr. J- E ■Martin (Ngongotaha) and Mr. H. M. (Martin (Reporoa South), both of I whom are eligible and .offer themIselves for re-election. 1 our auditor, Ikr. L. C. Ryan, retires and does not (seek re-election. Mr. -T. 11. Buddie (offers you bis services. STATISTICS. I “ Number of suppliers, 194: quantity of butter-fat, 535,1001 b; quantity tf butter made, 628,8811 b; over-run. ■ 7.52 per cent; average monthly pi .ee ■viid on account of butter-fat, lo.ld; Kveragc price received for butter, ■ 7 r )d* cost of manufacture per \o, K.3Bd| cost of marketing per IK f The balance-sheet showed the manufacturing account a? follow.-: Liabilities, -tock £1682 16s 8d; purchase, butter-fat and cartage, £BB,olb LB 3d- wages, boxes, etc., £4988 Ss 4d, depreciation, £223 15s 3d; balance to profit and loss account, 13s Assets: Butter, £46,095 6s 7d; but-ter-milk. £l.B 10s; stocks, £763 16s 2d. (The profit and loss appropriation account showed a credit balance ot K>B99 9s 6d. , H The chairman, in referring to the ■c-r*-; work, said that all the direc.esiened when the new articles Id* association were agreed to. He ■<nd Mr. Storey were the only two to 1 hem selves. The> kmw that ed the secretaryship in rotation j for heahh reasons. They had appointed Mr. Tj. A). Nicholls to the position from a large number of applicants, and he lived at Ngongotaha, giving his whole time to the work. The alterations and additions which they had contemplated were now complete, and the speaker had no hesitation in asserting that they had a factory which was up-to-date, and one of the best equipped in the Dominion. He commented on the talk of the man in the street with respect to the. new factory started in Roitoruw. They were going to spend £22,000 accovd:ng to accounts. This had come down to £BOOO. He mentioned that the average -supplier sent in about two ?ons per annum. He estimated that the output next year would be 800 tons. They had secured the money for their additions on most advantageous terms. Tt was stated that the co-operative companies were at a disadvantage compared with proprietary companies with regard to business, especially when it came to cabling, as the directors had to be got together in the former while one man clid it in the latter. He assured his heavers that this was not so and gave proofs, mentioning one case where promptitude had resulted in a saving of over £2OOO. The principles of tlie two factories were different. It was in favour of the proprietary company to give low* weight, test and grade. Such a procedure would not affect the receipts of a-supplier in the co-operative company, because if lie did not get it monthly he would get it at the end of the year. He impressed upon his hearers to be loyal to their company. He was happy to say that there had been no bad debts that year. He concluded by moving* the adoption of the report and balance-sheet, which was seconded by Mr. J. E. Martin, who pointed out that the overdraft had been reduced, and explained that they had to withdraw £509 ISs 5d from the reserve fund owing to a stringency, but that would be returned at the earliest opportunity. He maintained that the company was strong owing to its forethought in establishing a reserve fund. After answering several questions, mainly as to the low over-run compared with last year, the reasons for the necessity of drawing on the reserve fund, and the items of profit appearing on the balance-sheet, the chairman stated that it was even more satisfactory than the previous one, and finally pul the motion to the meeting, which was carried without dissent. There being no nomination for the two positions of director which had become vacant by rotation, the chairman declared Messrs. H. M. and J. E. Martin, the retiring directors, reelected, although both gentlemen stated that they nad intended to retire that year. The year being half way through, and it being the wish of those they represented that they j should retain their seats, they both | agreed to do so. j On the motion of Mr. A. Jackson, J seconded by Mr. J. R. Steele, Mr. J. H. Buddie was appointed auditor at £4O per annum, with, the proviso- that

d- far as possible the accounts be j balanced once every three months. Mr. L. "Wylie maintained that the company’s affairs were in a parlous j stale wne.n the new directors were j elected. He thought it was time they I were moved out. Ho would move that I the shareholders had no confidence in » the present, chairman and Mr. V. C. Florey, the old directors. Mr.’ G. Metcalf seconded the motion, complaining bitterly of the want of co-operation, especially on the that was taking place. He stressed careless supervision, consequent loss. plaints. He also asserted that the; £I4OO voted for the additions had been greatly increased without consulting the shareholders. (Dissentient voices). Messrs. Parsons and Storey at this stage left the room. Mr. Wylie was voted to the chair temporarily. After a lengthy, vigorous and somewhat acrimonious discussion, during which Mr. Watt, the late secretary, maintained that although he had nc standing at that meeting, he coni contended that he ought to be allowed to state his side of the ciuestion a? to the stale of the books. It was considered that this was only faii r and it was decided that Messrs. Parsons and Florey should be recalled before taking a vote on the motion, and the chairman and Mr. Watt be given a chance to explain. On returning. Mr. Parsons said under the circumstances he should never have left the room. He did not now know what he had to answer, but ho knew that he had given 248 days out of 365 days to the work of the factory. The business, he contended, had bem conducted in an honest, impartial and straightforward manner. He depended on his staff to a certain extent. As a layman, he thought the books were fairly well kept. He had not wanted the position, and did not know that Mi*. Martin would be a 1 candidate. After taking the best of advice, he agreed to nomination. He . soon found that the directors were . divided. The carting contract in opj oration had not been signed. He had i seen that righted. It had never been ! so satisfactory as this year. Even • so there might be some complaints on i some routes. j Mr. Storey also spoke in reply to , ihe charges levelled against him. He stated that he had nothing to do with j the contract for carting the cream, i not having been a director when it • was made. Further, he pointed out i that ;» concession for Mr. Metcalfe ; - nil others in his neighbourhood had (been obtained from the contractor by j the speaker. j The motion of censure was then put by the acting-chairman and lost. • the mover and seconder being- the only supporters. Mr. Parsons then resumed the , chair, and the business of the agenda ’ paner was resumed. Messrs. H. M. and J. E. Martin pointed out that the. hour was getting late, and therefore proposed to postpone moving the motions in their respective names until the next general meeting. The motions in the names of Messrs. Russell an I C. Andrews were not put before the meeting, as the movers were absent. Mr. F. Beckham also resolved to postpone# moving the motion in his name until ■ the next general meeting. Mr. C. Andrews, according to notice, moved as follows: “That it be a recommendation to the directors that the sum of one farthing (Id) per lb butter-fat be paid for direct delivery.”—After a short discussion the motion was passed. An honorarium of £IOO was voted unanimously to the chairman, Mr. W. •J. Parsons.