MOTUROA FREEZING WORKS.

Taranaki Daily News, Volume LI, Issue 214, 31 August 1908, Page 4

MOTUROA FREEZING WORKS.

ANNUAL MEETING OF SHAREHOLDERS. The annual meeting ul' shareholders of the Taranaki Producers' Freezing Works Company, Ltd., wns held on Saturday. There was a fair attendance of shareholding companies, represented as follow: .Messrs. ,1. B. Cumnett (Bell Blocks llichard.s (Cardiff), T. 0. llodgson (Kltham), Sprutt (llawera), Booker (Lowgartli), A. .Morton (Mangorci), ■!. Brown (Maketawa), .1. W. Foreman (Tikorangi). Suttler (Wailui), <i. A. AJlam (Oakural, W. Morison (Ngairci, Corbett (Stratford), Alee Brown (Midhirst), and ft. Dingle (directorate). Mr. .Morton was voted to the. chair, and apologised lor the absence of Jh'. Council, chairman of directors, who had licen called to Wellington on business connected with the New Plymouth Harbour Board Empowering Bill. The annual report, as published, and the balance-sheet were taken as read. The Chairman, reviewing the work ef the year, said the principal feature was the decrease in the amount of produce, though without a corresponding diminution of profits, owing to the excellent supervision exercised by their manager.

They would notice the reduction in the expenditure on coal. Another saving I;.;:! been made by the reduction of interest consequent upon the accumulation of proiits. 'The directors had adopted the policy of reducing the overdraft by allowing the profits to accumulate, whilst at the same time nominally crediting the amount to share capital. He went on to explain the motion of which lie had given notice as follows: "That article No. 72 of Table A of the Companies Act, 1882, be excluded and the following article substituted:— Subject to such dividends (if any) as may be from time to time declared on the share capital of the company, and also to such amount (if any) as may from time to time be set asido for a reserve fund, the whole of the net profits of the company shall be divided among and paid to lite coutributodrs of produce to the company (such contributors also being shareholders) in proportion to the quantity of produce actually contributed to or put through the company. Provided, however, that in the case of any shareholders whose share may not oe fully paid rip, the amount of proiits due to such shareholders on. such division, together with the amount of dividend on share capital, shall be credited to the share capital of such shareholders until such is fully paid up." Mr. Morton stated that when the company was formed the idea was that all shareholders should be producers, and so they were then. But now one or two holders of shares -had ceased to be producers. Under the existing articles of association those shareholders had a claim on the profits, if divided on the basis of share capital, as was done m the first instance. The last distribution, however, had been made on the basis of the actual amount of produce put through the works by the shareholders. That system prevented the non-produc-ing shareholders from sharing in the division of the proiits. An arrangement bad now been made with one shareholder so that that concern should cease to be a shareholder in the company, and a similar offer had berm made to another company which was in the same position. The proposed amendment would provide for such cases..

Returning to the working of the company, Mr. .Morton .said the manager (.Mr. D. K. Morison) had again improved the machinery so as to give even better reMilts at less expense. One of the boilers which hud been through the tire, however, was found by the Inspect-ir of Machinery to he sult'ering from the effects of the lire, and lie declined 10 give liis usual certificate. It was for the directors to decide whether to repair the boiler at fairly considerable cost rate replace it. The establishment of the graders' oflice at the works was very convenient to the management. In answer to Mr. Brown, the chairman said that from Ist September the price for freezing butler would be reduced to 5d per box. Last year there had been a reduction from 7rt to (id. Mr. Knowles (Tariki): What about ellipse! Mr. Morton said the cheese companies were exceptionally treated. Cheese was handled at 4s per ton, ami butter at 5d a box worked out at His M p.'r ton. As a matter of fact, cheese was handled at a loss. Continuing, he said the overdraft that day was under .£5,000 ( £4013), and that it was hoped that when the overdraft was extinguished in a very few years' time the charges would be reduced to very little more than the actual cost of freezing. .Mr. Richards (GirdilV) thought the charges for cheese should also be reduced, lie mentioned that the cheese charges were based on measurement, which worked out at 4s !)d per ton in weight, lie complained, too, that a week's storage was charged when cheese was in the works only a few days. Mr. Brown said butter was charged for a month when only iii for a couple of days. Mr. Knowles. (Tariki) said that if the cheese and butter companies were treated fairly before, and now a reduction in butter charges was made, there wis Mum-thing rotten unless cheese was similarly'treated. Mr. d. Brown said that cheese had always" been handled at a loss. The Palea works had found that, too, and Ihe directors there wanted cheese rates !>li!l further raised. Mr. Richards, in answer to Mr. Ding.o, stated he would be willing that his company should pay the actual cost of handling the cheese, and would agree to set up a committee to investigate. The chairman mentioned that for three years the cheese companies had been paid back 2s per ton profits, and they had only paid 2s 3d for their freezing. The butter companies, on the other hand, had paid £1 3s 4d per tan for three years, and £1 per ton for the next, and all they got back was !)s fid. So that the butter companies had been paying the whole cost of running, depreciation, and interest charges. In answer to Mr. Foreman, Mr. D. K. Morison, manager of the works, said that cheese cost twice as much to handle as butter, for it had to be raised to the second floor. Mr. Richards was not satisfied. "Why, he asked, wasn't the cheese stored on the lower floor? He maintained that butter cost more for actual freezing than cheese. Mr. Adlam, as representative of a butter company, put a new phase upon the matter by his enquiry: "What do the directors mean byjnaking the butt 'i companies stand 'the losses made in handling cheese?" He thought the butter people should protest. Mr. Brown (Midhirst) said this had Ijeeu an interesting ;d'is'cussion, and a revelation to butter men, for they had had no notion that the butter companies had been •• carrying the cheese people on their backs.'" If he were a cheese man, he guessed h<"would sit tight." He favoured the appointment of the committee suggested by Mr. Dingle, and that the companies should pay the actual cost. Mr. Richards said it was a peculiar thing that before the inclusion of the '•' Sl ' companies there had been a los-\ a'..! that with the assistance of the i¥> -e l.iisin,.*, ii | u ,l become possible make two successive reductions in I/-; charges for freezing butter. -Mr. Brown said that had been explained by the chairman. When the works were burned down the company had to find £17,000 for the rebuilding, ami belore the banks would advance the money the company had to enter iruo an agreement not to reduce its charm's from 7d a box for three years. Now the "monkey" was down' to £5.00'), and the position was altered entirely. Mr. Dingle said it would be weil to settle this mailer. If the cheese companies were excessively charged, then the rates should be reduced. If, as stated, the other shareholders were los-

mg over tlic cheese handling, then themailer should In. put right. Upon his motion a. cuiiiiiiillw was s.-t up to go ml" tlic .picslion willi llii; dircelors. 5 Mr. I'.rmvji (Jlidliirsl | said li,. ha.l I"-''" asked liy his directors lu bring "I' :im.i||ii.|. iii:tltc-r. In autumn of last yi'iir liis company ami others stored a considerable aiiiuimt ill' butter in tin. works, and it had com... as a shock lu him to lind that there was no iasurnn.-.-on tin.. butter in store. Had Ihe works l«-cn destroyed by fire tin. loss of that produce would have crippled lh,. Jli.|. I'irsl .•.iii.piuiy. Could inn this compnnv

'l'll'- .'"airman said lie had broiiHi! li"' "lallrr before ||„. .lircdors himself <"> ■'"■l'Hir <•( Hi" .Man-m-ri Dairy (',„„- pauy, and had 1 h mcl with tin- ililli'•nlly | lnil llir insurance companies 'lectin, d any further risk on lh,. buildings as far as this company was concerned. 'l'hi' iniliviiliiiil companies could arrange for tin. cover of (Heir <,wu produce. Mr. T. 0. Hodgson said the. Elthain Company hud made such arrangements, lmt willi some diliiculty. -Mr. Morton's motion, umeiuiin.r (j,o arti.-1.-s, was adopted. Messrs. .1. W. Foreman, 'f, o, j| o ,|„. son (retiring direeiors), and KichaHs were nominated fur the direeiorale, and Messrs. Vorcniau and Hodgson were reelected. .Mr. ('. R. Ticnncll was re-elected auditor al a fee of leu guineas. An honorarium of tM w-as voted to •Hie chairman for his, services during ( the past year,