SHANNON DAIRY COMPANY.

Shannon News, 14 August 1928, Page 3

SHANNON DAIRY COMPANY.

ANNUAL MEETING OF SHAREHOLDERS. About fiftv shareholders attended the annual 'meeting' of the Shannon Co-operative, Dairy Co., Ltd., held in the Druids' Hall on Saturday. The Chairman of Directors (Mr R, W. Taylor) presided, and he presented the annual report and balar.ee -sheet. DIRECTORS' REPORT. The 20th annual report was as follows:—The result for the year's working is very satisfactory and shows an increase both in butterfat payment and production, over last year. The amount of butter manufactured ~or the year was 814 tons I cwt 1 qr.lWbs, being the highest output to date and ■aii increase over last year of ol tons ■6 cwt 2 qr s 51bs. The average monthly payment for butter-fat vyas 16,63jc1. Provision has been made in the .balance sheet for a further payment of l|d per lb. on the season's supply, bringing the payment for butter-fat for the year to 18.385 d. The averag* grade was 9-1.26, all butter being of finest grade. The store, business shows a slight increase in sales and a net! profit of £9ll on the year. The amount to credit of profit and loss account as shown on balance sheet .is £2631 6s 6d. Out of this amount your Directors pro pose to pay tho usual 6 per cent dividend and carry the balance forward. Mr G. Stiles, as one who was present at the stocktaking of the drapery, said the stock was-found to-be elean and little had to be discounted. This department had been exceedingly well run, the gross profis being 13 per cent, and the nett profit 3.3. The store ac count was particularly good. The Chairman said this was von pleasing as last year there was a good deal of adverse criticism. , Mr Chrystall then moved the adoption of'the-report, and balance sheet, which was seconded by Mr G. Barber and carried. ELECTION OF OFFICERS

The retiring directors, Messrs J. Chrystall and R. L. Tippler, were reelected, there being no further nominations. Mr Chrystall. in returning thanks, said he took it as a vote of confidence not only in themselves but in the pre sent Chairman and directors. Mr Tippler also returned thanks assuring the suppliers that he would again endeavour to give his best services in the interests of the company. Messrs Henry Kember and Son were re-elected auditors. THE HALF HOLIDAY.

A notice of motion by Mr R. W. Taylor: "That a 3 the store department was started for the convenience of suppliers to the Company, and a 3 Saturday is the usual marketing day for farmers, the store -be kept open for 'business until 5 p.m., on that day," was seconded by. Mr Chrystall, who said that farmers- generally would like the store to be kept open on Saturday afternoons. He said it was hoped that next year there would be a much larger turnover with the prospects of the ne/w bridge being completed in thinear future, Mr Stiles said he was against tinmotion. At the annual meeting before last the shareholders had decided against keeping open on Saturday afternoons. The employees prefeired Sat urday for their half-holiday and if suppliers could s ! hop on another day, they were entitled to study their employees, "We should encourage the cooperative spirit not only with the sup pliers but with our employees. If the shareholders want the store kept open it is alright, but if we can give ou: employees the holiday we should." He ' asked if they were losing trade when the other stores were open. The Chairman said the question was, "Are we suiting the convenience oi those from a distance?" He wanted to see the convenience of suppliers satisfied. He thought that when th( bridge was open they will lose more trade by being closed on Saturdays. Mr James said it was for the shareholders, from an unselfish point oi view, to decided which was the,most suitable day to close. Mr Tippler said that, as a director it was his duty to satisfy the shareholders. Personally, he could not see that it made any difference which day they closed as the business was more wholesale than retail. In other places co-operative stores close on Saturday? The chairman did not agree with MiTippler that the store' was more wholesale than retail. He contended that they were in exactly the same position as a general storekeeper. Mr Gee Barber was of opinion thai it .was not a question of competing with other stores. The success of their store rested largely with the work of the staff and he understood that the staff had sent in a unanimous requisition that Saturday be observed. Mr Hyde pointed out -that it rested with the Shannon Borough Council to declare which half day should be observed by..business places in the borough . Wednesday was the half day declared by them and the Council had the power to enforce it. The Chairman: "We are catering for our own business, not the other man's." The motion on being put to the meeting was lost by a three to one majority. BUTTER V. CHEESE. Mr Geo. Barber moved that it be a leeommendation to "the directors, "That it be seriously considered by them the advisability of changing from butter to cheese." He said that ae*cording to the market reports in other parts of the world and from the reports from the people who handled tdieir produce/ cheese be the best proposition in the near future and even now was more profitable than •butter. Cheese prices had held for some time and for the past twenty years cheese 'had been more profitable than butter. One factor was that tompanies who had got their plant and property clear had been able during

the past season to pay 1/10£ and 1/9 for butterfat. He contended that with butter there was now no outlook in regard to stability in price and there i was a lot of opposition. I Mr Jewell, in seconding the recommendation, stronely favoured the ques- | tion being gone'fnto, pointing out the uncertainty of the butter market in the future. They had found under the butter control that New Zealand buti ter was not absolutely essential in 1 England;, it was boycotted. Further, with the erection in Siberia and Russia of proprietary concerns financed by the largemercantile houses these proprietary factories were going to have a bad effect on our co-operative . concerns, as they' would work in with the houses financially interested; with the result that our butter prices will be affected for years. When butter reached a certain price margarine came in. Cheese, he said, Av.as a staple food in the United Kingdom, Canada and U.S.A. In the past Canada was the largest competitor on the English market, but now most of the Canadian cheese was .sold in Canada and U.S.A., leaving only New Zealand in the market. "Experts advise us to pay more attention to cheese. It is not a ques : tion of sentiment; it is one of £ s. d. The argument is all in favour of cheese." '.-'■ .

Mr James said that while not easting reflections on the-previous speakers, he considered it was a lot of "tommy rot" that Britain, could do without New Zealand butter. This information was quite contrary to what the agents told them. One agent told, them he required 3000 tons more this vear. . Mr Stiles said, they should know, what the by-products were worth to them. They had also gat to cart milk. : It would not tempt him to change ovfor butter. It was quite right that er-at'ls 84 for cheese against Is 6Jd the directors should consider it, however. '

Mr Chrystall said the one thing that would not turn him was the by-pro-ducts. The butter man could keep stamina in his herd, but the cheese man could not.

Mr W. S.' Carter said he- had had experience of both. The serious part with supplying a cheese factory was haulage and he did not think ,Id per lb covered this, while by-products were certainly lid per lb in favour of butter.

Mr R, ; Law 3aid it was most important t.hat they should consider that for the past twenty years they had been manufacturing butter and they were now in the position that .they were envied all over New Zealand. "Our pay-out is always equal to anyother butter factory and with our grade we have no fear. We have done well and our goodwill is certainly worth looking after," he said. Mr Jewell: There is no complaint whatever against the Shannon Dairy Co., but we have arrived at a point when we have got to this question. He maintained that indications everywhere are undoubtedly in favour of cheese. 'Mr Law: If we switch from one to another we will soon lose our goodwill and it would be a bad business. Mr G. Barber, said that, if it was better to make the change, they should have it. "If we, are going to get something more, the directors should go into the matter to see whether it is right or wrong." The recommendation, with an addition, "That in the event of the directors considering the time is opportungv to, make a change the matter be returned back to the shareholders before action is taken," was carried. BONELESS VEAL. Mr Stiles, referring to boneless veal, stated that splendid results were be ing obtained. Farmers would get every penny out of the scheme. They were guaranteed 8s per head and what there was-in the by-products. He impressed upon those present that they should put their whole energy into the scheme and send only those calves that complied with the regulations In regard to payment, calves supplied up to the 251 }i of the month would be paid for on the next month's milk cheque. A resolution was carried that the contractor for collecting calves, cart no other calves or buy calves on the Association's collecting day. RURAL CREDITS BOARD. Mr A. S. Faire, District Public Trustee, at Palmerston. North then addressed those present on the objectj and advantages of a rural credit association under the Act. He stated that the" object of forming an association was to enable farmers by combining, to obtain loans for those of the members who required finance. Provision was made for 20 farmers or more. The association borrowed from the central body at 6 per cent and lent the money out at 6* per cent, the half per cent providing the finance for working expenses. The amount limited to borrow is £IOOO and one could only borrow for purposes specified in the Act. The loan was payable on demand and must be paid in five years, not necessarily the whole loan, -but a portion. To form an association 20 farmers were obliged to take 25 fl shares. Each member must take up 5 per cent of that stock on joining. For every £lO which a man wished to borrow, he must take up one share. Twenty-five shares would entitle a man to £250, 50 to £SOO, and so on up to £IOOO. The association was simply a limited liability company, the maximum amount a member could lose being £25. The Board had power to advance for ten years free of interest a sum up to £25 to assist the initial cost of establishing an of New Zealand, particularly in the Waikato, advantage had been taken of the existing organisation of the dairy companies. In conclusion he said he would like the shareholders to consider whether an association could be formed. It was not limited to shareholders of the company, but took in others. He asked them not to confuse this. Board with the Rural Advances Board, which loaned money up .to

£SOOO at 6 per cent. This Intermediate Board advanced up. to £IOOO on stock for 'a term of five years. Mr Faire/was accorded a hearty vote of thanks. VOTES OF THANKS. Mr Chrystall, - in moving a vote of thanks to the. managers and their staffs of the 'factory and store, said that tho average grade of 94.26 and all butter boing of finest grade alone spoke volumes. In connection with the store department they had a credit balance of £912, which was most satisfactory. Some were under- erroneous impression that the stock (£5600) had been paid for out of butterfat, but this had been built up out of the profits. The motion was carried by acclamation, Messrs Aim and Cronquest returning thanks. Mr G. Barber moved a hearty vote of thanks to the directors for the way they had carried out their duties this year A vote *of thanks wag also accorded the suppliors. The meeting then closed with a vote of thanks to the chair.