The Frozen Meat Trade.

Te Aroha News, Volume V, Issue 219, 10 September 1887, Page 6

The Frozen Meat Trade.

At the annual meeting of tho Frozen Meat Company, hold in Auckland on August 31, 11 10 Churuian of Directors (Mr Bull), in moving the adoption of the re poit and balance-sheet, reviewed the operations of tho year, and explained the causes which had produced the heavy 10.-s shown on the balance-sheet, lie showed that tli'j direct trading loss properly chavgcaM-' against this year was only 1,200, of which t'6oo arose on the shipment, pei Tongariro made in July, 1886. f I 'ie toieign consignments of butter hart <onlributod £1,500 to the to<*. Alluding to the amount shown as wiitten oIF the \ .due of the Company's properties tho Chairman j=aid : "Jt i- quite unneces-aiy for me to lefer to the groat depreciation in value ot property which has taken place wilhm the past two year-, and the Compan> is, unfortunately, ailected by lea-on ot tho hug. amount of its capital invested in buildings leelaimations etc. To te'ain the former values- would be simply to continue paying property tax on an amount » really exceeding what could pos-ibly be reali-ed, and jour dnectois considoi tlie he-t com so to adopt is to make the neeo-ny reduction-, and I shall subsequently mo\o that power be taken in our article- ot association to enable us to leduce our -haie capital to a projio tionate extent." He then proceeded: " I como now to the consideration ot our butter business, and for variousicasons which 1 shall lefer to, 1 shall hope to be excused ioi iroincj into this subject at Mime length. [ luT\e aheady tefoued to the losses we ka\e sustained in our export business. T)u-ins> the past jeai moie attention has been paid to the local trade and w e ha\ c now piopeily fitted vans deli\erin<> daily all retail dealers, while the advantages we possess by reason of oui cold air facilities will become more apparent as summer approaches. Some exception lias been taken to our extension of bu-imvs in this direction, but it j appeals unreasonable that the Company should be expected to re-ttiet itself to the exr.oit business, which, although undoubtedly moie beneficial to the community, i- by tar the mo.st hazardous. Your "duectois ha\e had under consideration a new and greatly improved method ot earning on this business- by the establishment of creameries at \arioucentre-, the mdk being taken tiom farmers at lixed rates and the cieam bein<* forwaidcd heie to be made into butter. The nd\ antages of this sy-t> m iue manifold. Ist The butter will be made at a uniform temparature with all the latest appliancesand we. shall thus obtain butter of the be-t quality and e\eugiade. 2. Once made we have the cold aii available to pre\ent deto'ioiation while under this system, we shall eventually get lid of the t:ouble-ome questions with buttei-makeis as to the quality ot their butter, a matter which has, I think, been utilised by interested paities to the detriment of the Company Thereareotherconsiderations strongly in favour of thi- s> stein. Every effort we it Ac tow-aids fostering and de\ eloping the butter industry is of direct set \ ice _to the Company b> pio\iding a substitute for tho iio/ui meat busings and a re\onue for on. fiec/ing woiks in which we luivo -o much capital imested. Neither i- thi^ rcvo.iue to the freezing works le\ied a'- the expense ot the pioducci, a? under thi- s\-tem the pi ice proposed to bo paid for the" milk i- equal to B, ! d peilb toi 'barter clolheitd at our Work-, a pi ice exceeding; the a* ci ago heretofore obtained liy the piodueei tin »ood butter. Our gain will come out ot the difference between the value of good butter and the pioportun of inferior butter heretofore pioduced, a difteience that has hitherto been lost to the community. It is needles^ for me to enlarge upon the importance of this mattci, or to point out that a steady and reliable lctiuii from diiryino operations will probably solve a question ot (he highest importance to the country, namely, th) profitable sectloment of the land. It is moie th?n possible that in this direction Mood lrsy come out of e\il, and thut r,he low price." winch have led to the discontinuance of our iio/en meat trade may be forcing lib to t<eek employment for our f i ec/ing plant, stimulate and dcselop the daiiying operations for which our moi^t and temperate climate seems fitted. Negotiation- have been cairied on with 7 or 8 centres mo-t fa\ouiably placed foi corimencing op^iations. At .ionic of the-e iictoiie- are abeady available, necessitating comparati\ ely sm.ill outlay, but at others the election ot buildings and plant will be necL-s-ar). At all of thee centies guarantees of a minimum of 1,000 gallon* pei day are foithcoming, lepresentm<x tho milk of 3 to 4,000 cows, tho only di'h'cult) bt-ing the provision of the capital required for the nece--aiy pi tiit and liricluneiy, a diih'eulty your diiect / -. hope to sui mount. Dm ing the past year the buttei bianch h.i-s dealt with about 180 to'.sof buttei ,'md hasexpoitedabout/65ton-. Li tho Acid and Manuie Woik-, the de-jMO^-ion in auiicultural interests has, no (<Gubt, been ie-«pont>ible for a slackness in .sale 5 -. It ha.s been In ou^lit to the diroctoi -' notice that in m my instances advantage hos not boen taki»n of the difteient km<ib of manme pioduced at our workto meet the requirements 1 of \aiying soi's and ciicuni'-banccs. The services ot Z\l* Limb, a piactical agiiculbuiisb ot e.vp>' I'jncjjhav e Uici »fore been eng.igedto a i.-it the .t^iicultuial districts and confer with faiinuisupun questions of soils, crops and mania* 1 -. suiLible thereto. Cood ie-jii!ts iiio aniicipatcd horn JSLr Lamb's eifort.-,aijd I ma} mention that the sales' for July .md Augu'it ot the euirenb year will amount fco about £2,300, as cigainsb i!8-iO for cone-ponding months in '86. The Company continue to receive the be -it lepoits as to the woith of their manures 1 , some ex ji acts fiom whicli may be seen in our djily ad\oitiscments. The sale toi pas': yeai ha\c ncail} approached 1,100 ton.s, but id! -.ale- abo\c this figure will icturn a fai Lugcr peicontngo of })ro(it^, a» an output ot thice tunes the quantity could \m made at a slight increase of expense other than the cost of law mateiid. iSomo considerable permanent impiovcments have boon made and paid for out of current ox-pensos, while it must be borne in mind that imported maniiie-. arc fice of alt Customs dues and our in lu-tiy is theiefoie entiicly unpiotected. icg.nd to tho N^'aitaia Woik-, as bt'ited in thii I'epoit it was with very <4i oat reluctance that the directors decided to close those work, as it must be [vpparent that the main earnings of the Company have conic therefiom. It has (before beon cxj)lained that the piesenb rjiiccot .stock, low a.-, it is, will not permit the entire animal to be tinned. ] t may be taken that in oulor to compete with Ameiican tnvved meat, the preserving department rn-i-l obtain its supply at somewhat under a Id per lb. It is a sini])le matter for calculation as to whether the average of pi ices ruling will allow meat to be tinned at that figure, unless a ccs.siderably higher price is obtained for some p M'tion of the beast, vi'/., tho prime pints. I do not refer to occasional low prices for email quantities

of stock, but for a supply thab may be reckoned on to keep our preserving department in steady work, say 150 to 250 beasts per week. Our experience i& that such a supply cannot bo obtained at prices that will enablo the entire beast to bo tinned at the margin I have named, and the sale of tho prime joints at an increased price is therefore a necessity, while the heavy losses wo have sustained in endeavouring to get these prime joints out of the country preclude fin ther' shipments until better price* rule in the Home markets. During the past 12 months tho following- stock has been killed at Waitara, in round numbers : - Cattle, 5,500 ; sheep, 8,000 ; pigs, 450 ; calves, 20; giving a total ot 4,416,0001bs of meat, of which only 257,5001bs has becu sold loeall}. The moat preserving w ill in future ho' carried on in Auckland, and although theie will bo some incrcaso in cost of stock, yet there will bo a l'U go paring, consequent on the concentration of operations at the one establishment. Touching tho Sydney Ice Company, I have little to add beyond what is stated in the report, except that we aie since informed that thenegotiations therein referred to ha\c been successful. From tho vailou- leportb of experts and others, there i- little doubt that the failures having- been owing, not to any fault in the principle ot the patent, which has been highly commended and will bo retained, but to infeiunity of the iron pipes, supplied from England. Those were specified as the best steam quality, and we paid an engineer to inspect and pass them. They are now stated to be of infeiior quality, unable to stand tho requhed pressure, and the result has been constant leak-*. 1 presume there should be a lcmedy against the contiaetor, but whether it would pay to endeavour to ieeo\er is doubtful. Under the box system tho piessuic on the pipes is divided and localised, and the danger of leaks i educed to a minimum. There is one other subject I may refer to, and thab id the Auckland reclamation. It is piobably a matter more oi less understood, a.s it was repoited in the daily papeis. An anangement has been come to with the Harbour Boaid, and the Company has unrestilcted power to deal with tho land. Although at pic&ent theie is no demand for building sites, yet the position of thin propeity renders its ultimate value a muttei ot no uneeitainty. Pkoht and 1 oss Account. — Dr. : To balance 30th June, 1880, 110,049 2s 6d ; wages and s-akuie*, £4,679 16s 9d ; chaigos and expenses, t'4,685 0s 4d ; interest and (U»count, £!8,524 B.s 4d ; loss on consignments, L' 5,439 5.-. : hoise.s, l'3O 13s 9d ; im]>iost dhidend account, £12 Bs. 7d ; boat, ClO ; butter depaitmenb prolit and loss,. 1539 2s 2d ; rate? and taxes, £593 16s lid y bad debts wiitten off, £3,09G 8s 2d ; Thames account lo>rf 12 months, L"33 12s Id ; dqn eolation tieehold piopeit>, i;i4,960 ; dopieciation lea-ehold pioperty, C 19.575 ; depreciation 10 per cent, oil machineiy, 1743 12s: Total, £72.966 6s 7d. I r. : By fiee/ing ice account, £3,700 _4s 9d ; fiee/ing ice recounts (ice sales), _ i'soo 4- ; ca=h -.ales, C 274 0> 7d ; commission, Cl9O 16- 2d ; lent, t'l2s ; suspense, £57 10s lid : stock account, trading profit, t'12,330 0-. 9d ; Waitaia, })n>ht 8 months, 11,763 5s 2d ; buttei depaitment, { piolit 12 months, C 65 6s 5d ; Acid Works, { profit 12 months, £224 6-; bad debts reco\eied, £457 17s 3d ; balance, loss, £52,777 16* 7d : Total, £72,966 6s 7d.

W.wrvuv Bvi.vyci. Shi.kt.— To Auckland lieaiiOihce, €21,916 5& 8d ; debts owing by Company, €694 3d ; bnlancu — j)ioiit and lo^, €1,763 3* 2d: Total, £24,373 9s Id. By building and plant, €16,990 2d ; cottage, €205 10s lOd ; ca&h in liand, €16 18s 4d ; .stock on hand, €6,512 10-, 8d ; dcbu owino to Company, €6^B 9b Id: Toh'l, €24,373 9s id.

lYvoriT \nd Los^, Account. — Eightmonths endin< r 30th Juno, 1887. Dr. : Insurance, i' 3 : farm, t'3B2 15s 2d ; rents, £368 Is 9cl ; rates and taxes £35 4s 9d ; charges and expenses, £1,280 11s 8d ; freights, £401 15s 8d ; interest and discount, £38 9s ; wages and salaries, £3,393 19s 4d ; blown, tin account, £327 2s Id ; account adjustment, £33 Is Id ; balance profit, £1, 763 3s 2d ; total : £8,027 3.-> Bd. Cr. : by stock account—trading profit, £3,027 3d 8d : Total, £8,027 3s Sd.

Bi;tti:k Department Bala.n'ok Siiket.— To debts owinj; by Company, £2,297 8s 5d ; into e.->t suspense account, £42 19.s 9d ; balance profit andlo^,i;i3o 12s lOd : Total, 12,471 Is. By debts owing to Company, L"603 19b 9tl ; stock on hand, £1,192 3s ; plant and machinery, £573 Is 6d ; oflice furniture, C 4 8& 6d ; ca-h in hand, X97Bs 3d : Total, £2,471 1-.

Pkofit and Lo^ Account. Tvielve Months i.:,uims 30th Junk, 1887.— Dr. : To charges and expense", £835 5.s 8d ; cai tage, C 324 5s 7d ; interest and discount, £430 7o 3d ; insurance, £45 Is 10(1 ; freezing charges, £497 7s Od ; office expenses, £133 17.s 7d ; wages and salaries, £9B6 12s 8d; balance profit, £130 12s lOd : Total, £3,383 lO.s sd. Cr : By Glanvillc and rilyett, di\idcnd account, £539 2s 3d X.Z.F.M. and S. Co. account, £539 2s2d l^ad debts lecovered, £1 lls 7d ; btock account— trading pioiits, £2,303 14s 5d : Total, £3,383 10^ sd.

Acid Wuiiks Balanoi;-siii:kt.-— Liabilities : To N.Z.F.M.S. Company, Limited, capital, £7,137 ss> 3d ; Henry Symons, 11,802 10h sil ; bills payable, £709 14«t lid ; debts owing by Company, 1*4,038 2^ 6d ; intere-t .suspense account', £11 19s Id ; balance, profit and loss, £299 Is 4d : Total, C 13,998 13s 6d. Assets : By land and .shed, £600 ; buildings, 1*3,768 2d ; plant and machinery, a, 326 17s 4d ; .stock on hand, 17,326 Is 3d ; debt's owing to Company, £977 14b 9d : Total, C 13 ,998 13s 6cl.

Profit a\~i> Loss Account.— -Twelve months ending 30bh June, ]887. Dr. :To inteieofc and discount., -£753 l.s 9d ; u r agvs and r-alaries, £1,717 "16s ; trade expenses, 11,178 12» JOd ; iVeighb and l/iilway charges, £684 ICh lid ; printing and advertising, £103 16rf Id ; insurance, £118 14s Yd ; balanco profit, £299 Is 4d : Total, t'4,855 13s 6d. Cr. : By balance 30th June, 1886, £145 17s Id ; ca*h fcales, 4rf 6d ; stock account- trading profit, -£4,709 11s lid : Total, £4,855 13s 6d.

Thames Aciencv Balance-sheet.— To Auckland Head Oilier, £4,845 13s sd ; debt* o\vin«; by Company, C 407 18s lOd; total " £5,313 13s 3d. C'r. : By land and buildings., £3,060 10s ; -.Lock on hand, £276 17s lOd ; cash in hand, £234 10* 4d ; debts owing to Company, £1,700 2=. ; balance, profit and loss, £33 12s Id : Total, £5,313 12s 3d.

Promt and Loss Account. — Twelve months ending 30th June, 1887. Dr. : To Auckland Head Oifico P. and L. account, £2,095 13s srt ; freights, £173 9d 3d ; interest and discounts, £7 13s Id ; ion l "., £203 5s 6d ; charges and expenses, i'3lo 5s 9d ; wages and salaries, C 413 os6d ; horses, &c. , written off, £96 ; Te Aroha Yards, writton oft, £140 19* Id : T0ta1,£3,440 6s 7(1. Cr. : By balance 30th une, 1886, £2,095 13s ,5d ; advertising, 6s 3J; commissions, £613 5s ; fpes, £87 7s 6d stock account — trading profits, £610 2s 4d balance, loss, £33 12s Id , Total, £3,440 6s 7d.