The Taihape Daily Times AND WAIMARINO ADVOCATE TUESDAY, JULY 25, 1916. TAIHAPE FREEZING WORKS.

Taihape Daily Times, Issue 160, 25 July 1916, Page 4

The Taihape Daily Times AND WAIMARINO ADVOCATE

TUESDAY, JULY 25, 1916. TAIHAPE FREEZING WORKS.

(With which is incorporated Th® T{il hape Post and Waimarino News.) MONDAY, JULY 24, 1916!

The Otaihsre Farmers’ Meat and Produce Company has now completed its first year’s operations, or rather, to be more correct, its first financial year, which ended on the 30th ultimo. The period of operations dates from when the works were in readiness to receive stock, and therefore only covered a period of six months. A copy of the Company’s balance-sheet, before us, i s a pleasant surprise, for while we had absolutely no doubts about the possibility of freezing works becoming a boon to this great district, and, besides, a great profit-earning concern to its shareholders, the shortage of shipping experienced from the very time the first carcase was frozen up (o the present, which entailed the works closing down on several occasions, with the consequent disorganisations and disconnections of its integral workings; the highest cost of handling through storage-room beingtaxed to its fullest extent for longperiods from time to time; the fitfulness, the intermittency of operations; the resultant need for rush of labour as shipping became available, and the sequential need for stopping buyers from gathering in the stock for freezing that could have been handled had conditions been normal, all went to make it almost certain that the first season’s operations would show no profit. It is gratifying to learn, however, that the Company has achieved most excellent results. Despite all the disturbing war conditions, its balancesheet discloses a profit of no less than 12 per cent, on paid capital. It is not often we find occasion to congratulate a trading concern on its inability to do anything, but we do most heartily congratulate the Freezing Company on its inability to avoid paying war tax. As the report states, shareholders have it disclosed to them that, in spite of many difficulties, which are usually met with by newly-established works of this nature, a substantial profit has been made, showing conclusively that this district i s well able to support freezing works, and to furnish stock-to warrant, to an extreme, the outlay of capital put into them. The statement of assets and liabilities is clear, and only discloses what every director, and probably every shareholder, has been quite conversant with as the nursing period of the concern proceeded, Shipping shortage will probably

rjore than account for the big items, stocks, and consignments unrealised. ! The Directors particultarly impress 1 upon shareholders that all charges have been amply provided for, and that stocks on hand and in transit have been subjected to a most conservative valuation. They have also drawn attention to the fact that nothing has been written off for depreciation of plant. As a matter of fact they could truthfully have stated that the plant has appreciated, for it could not be purchased now for the money that was paid for it, besides, there is considerable plant that has not yet been installed. Under the circumstances, it seems that the Directors have followed quite the correct course. The sum written off preliminary expenses amounts to just upon 20 per cent, of the total, which is fairly liberal, as it means that the total is to be wiped out in five years. There will be no difficulty in valuations of property and plant, as the ink on initial bills of cost is scarcely yet dry. There i s just one item that in all probability the balance-sheet will help to remove, and that is, calls in arrears. The profit and loss account contains all that is desirable public company of this kind should give; shareholders can obtain all the details they require when it is discussed. If this account has any fault it i s its succinctness. However, the handsome profit of £2 083 12s 4d on a turnover of £6623 7s 7d, is enough to convert the most pessimistic to the belief in profitable freezing works in Taihape, although it must be borne in mind that this can only include freezing charges, and such other things as profits from what may, perhaps, be termed by pro-, ducts. It amounts to a profit in spite of all the dire and disheartening shipping shortage of 12 per cent on the capita, subscribed, and tins could easily have been increased by over one-half if storage room bad been available. The Directors and officers of the company have earned the congratulations, not only of thorn fellow shareholders, hut of every mai. in the district. During the few months the works have been in operatin i 33,186 sheep, 18,292 lambs, Inso cade and 56 calves have been slaughtered an equivalent of 71,502 shs>p; with normal shipping this could hv-e been doubled,, It is understood that cue- Directors .will, at an extraordinary meeting of shareholders, take the sane am! logical step of inviting.,.shareholders to increase capital sufficiently o enable the doubP.ig._uffithe sffinge cap 'city at the wo-.es, and from che sv cess already •u-.riieved there is reason to antic, pate that a ready response will result. ,The sharehold er..: have qemonstrut-.'a that under Dost disadvantageous circumstance-, fti t zing works can he operated on a hiL-Dy profitable basis, and so long as They tarn 12'per cent, on the, cupßai invested,’ and reap all the benefits accruing from having such works almost at their farm gates, they are not likely to hesitate in bringing their concern up to its very highest earning capacity, by, at least, doubling present storage conveniences. The Masterton Company found it to their interests to double the capacity of their whole works, and'it is a pleasant experience to know that the Taihape Company finds its already profitable venture needs making still more profitable.