TARANAKI BACON COMPANY.

Taranaki Daily News, Volume XLVII, Issue 8057, 5 March 1906, Page 3

TARANAKI BACON COMPANY.

There was au attendance of about forty at the adjourned general meeting of shareholders of the Taranaki Bacon Company on Saturday afternoon. In the absence of the Chairman of Directors, Mr B. l'rice, Mr Munro, another director, was voted to the chair. He briefly detailed the Company's position, stating the arrangements made at the bank for the extension of time in which to pay for the factory property. Since the balance-sheet was issued, he said, about LI3U had been paid oft' the LOSS arrears of calls, and he expected all would be paid shortly. Mr Drake had agreed to the propositi to extend the time for completing the purchase of the property.

At the request of the chairman, Mr H. Okey, who was appointed a director a week previously, gave the meeting the benefit of his investigations of the alters. He reported : " ihediie.'tors waited upon the manager of the Bank of Sew (South Wales, ami found that, according to the agreement made by the provisional directors with the bank when arranging for the purchase of the property, the balance of the purchase money, £1250, became due on the following day, and that, although the agreement allowed for 30 d:ys' grace, 110 arrangement had been made with the manager with regard to that. The inaii.,g or willingly met with the request of tjic directors that, on a further payment of £250 being made upon the property bc.'ore the 30th March, the balance remain in abeyence for the present, or until the balanee of call capital is available. lam satisfied that there can be only one end'ng to the company if they endeavour to carry on as in the past. The number of pigs forthcoming is very limited, and therefore the cost of cur-

ing same is over double the cost of that it the Inglewood factory. Our company will cure pigs for their suppliers it one penny per pound, when every pig they are putting through is costing them over twopence a pound to deal with. This will account for over £SOO >f the loss shown in the balance-sheet on the last year's transactions, and I ,im satisfied if the company keeps the works open until the end of the present year with the number of pigs now coming forward, you must be prepared for a greater Joss than you have had. [ would suggest that the directors should give a month's notice to the suppliers that they intend to temporarily close the factory, so that they would have the chance to bring ft rward any pigs they may have available, and that the balanco of calls due and oilier moneys should bo used for the purpose )f paying off the amo.uit due to the bank on the property account, thus endeavouring to save, if possible, the properly to the shareholders. lam satislied that if this course is pursued, there "rill he almost sufficient capital left to complete the purchase of tho properly." These remarks were concluded amidsl applause.

Continuing, Mr Okey said that, whereas it cost Inglewood l:Js to cure i pig, it cost this company over 2(is (several shareholders; " Phew This was ilue, in fact, to shortage of pig supplies, and without 3000 or 4000 pigs t year, it was impossible to run tbe factory oil a paying basis. There need be 110 fear that suppliers would not be paid for pigs. The company's finances were slightly astray, .principally, lie thought, because the directors had not •onsultcd their bank manager, and talked over matters with him. The

directors, too, seemed to have lost the confidence of shareholders. (Murmurs of " That's it,' and applause). He believed that they should at once secure the property, and then they could get accommodation. Something could be done by bringing in some other business, so as to keep the stall - constantly employed, but be was not at liberty to state anything regarding the steps so far made in that direction, Mr Whitaker, a director, said that Mr Okey's report was really a motion of censure oil the directors. They had done their best, but had been hampered by want of capital. They knew, also, that they lacked the shareholders' confidence. With plenty of pigs, and confidence restored, there were bright prospects in front of the company, and tbe factory ought not to be closed if such a cause could be avoided. Mr hitukcr concluded. " If anvonc has anything to say against the directors, let him say it at this meeting." Mr Okey mentioned that tlie Inglewood company's shareholders bad provided a trading account by signing a "joint and several" to the bank, Here, there was no trading account. Tj a shareholder, Mr Warren statod eighty pigs were needed to keep staff and plant fully employed; -15 would pay; but only SO per week bad been received last season. Mr Connett considered that it w as a poor co-operative spirit that prompted canvassing in another co-operative company's territory. Why not open up trade with the coast, as far as Opuuake, and right up to Urcnuii 1 He concluded by allirming that the shareholders had lost confidence in (be directorate (bear, bear), but Mr Okey's appointment as chairman would go far towards restoring it. They would be guided by him. (Chorus of assent.) The Chairman regretted that these remarks were made in Mr Price's absence, though he (Mr Munro) bad heard something of the kind from several sources.

A discussion ensued on tlio alleged broken promise of _ the provisional directors to erect killing-stations at Oka to and ltahotu, the Chairman pointing out the reason why such a course had been dropped. It was done on the grounds of expense, for all pigs slaughtered at these stations must have been inspected by the Government ollicials, and this, with the cost of the refrigeration and so forth, would have made the scheme impracticable. The company had agreed to pay half cost of carting

pigs in from those districts, but no proper canvass had been made, although Mr Wilcox, one of the old directors, had promised to see to it. Mr Oxcnhani considered that the coast people would only pay up share calls when these killing stations were erected. The chairman of directors had given a direct promise that these would be built. Mr Whitaker said lie knew that Mr Price made the promise in good faith. Il Was nst till afterwards that the scheme would not work out in jiractice.

Captain Hood considered they were losing time. He moved to the effect that, should the supply of pigs not prove adequate, the directors be authorised to close down in a month. Next year there might be nlill poorer, supplies. Mr Council seconded, enunciating his opinion that shareholder* needed lirjre than ordinary loyally to support their own factory when another concern offered a farthing a pound more, " with heads in." Mr Okey and Captain Mace supau idea to have a canvasser for supplies. Another shareholder stuck out for the appointment of a new chairman. Mr Tribe opposed the motion. In the first place, the directors already had power to close the factory when they chose, and this was really a want-of-conlidence motion ; secondly, such a resolution was not the sort of thing to make public, in the interests of the concern. The motion was lost.

Hi' Tribe moved. and Mr Jfoucyfiolcl seconded " That tins meeting lias every confidence ill the directors, and that I hey use their discretion us to when it may be necessary In temporarily close the works. The mot lull nil-' carried mlli.nil dissent. Mr Giddy moved, and Mr Cornwall seconded a-recommendation that the directors appoint a new chairman.— Withdrawn. Mr K. IT. Tribe was appointed auditor, at a fee of seven guineas. At a meeting il dircrln:s lielil iuiniedialely allcr tiie general meeting, the directors, acting accoi'din, to tiie expressed desire of the shareholders at the general meeting, appointed Mr (jkey iliatrmaa of directurj.