MOA DAIRY COMPANY

Taranaki Daily News, Volume LIV, Issue 92, 9 October 1911, Page 7

MOA DAIRY COMPANY

ANNUAL MEETIKU. The annual meeting of the shareholders of the Moa Dairy Company was held in the Parish Hall, Inglewood, on {Saturday afternoon. There was a large attendance of shareholders, including several ladies. At the back of the hall there was a good muster of spectators,. despite a resolution passed soma time ago debarring all but shareholders and the press from attending such meetings.

REPORT. The sixteenth annual report was submitted as follows: The amount of milk received was 20,558,11111), producing 798,685.981b of butter fat, from which was made 927,724 11) butter, equal to 414 tons 3cwt lor, or about 50 tons more than last year. It took an average of 22.151b of mi Ik.to make lib of butter, and from each lib of butter fat was made 1.161b of butter. The average test was 3.88. Suppliers received an advance of lOd per lib. butterfat for the months August to May inclusive, and lid per lb. butter-fat for June and July. A bonus of Id .per lb. on butter-fat supplied from August to April inclusive, was paid out on 20th May. Out of the balance on 31st July, a bonus of l-10th of a penny on the twelve months' supply had been paid, absorbing the sum of £332 15s 7d. Suppliers had thus received what w0.9 equivalent to ll.OGd per lb on butter-fat for the season. Interest at the rate of 5 per cent, on share capital subscribed to 31st July, 1910, amounting to £246 19s was also paid, leaving tlie sum of £22 10s 5d to be carried forward. During the year, Mr. D. Hcrlihy, chairman of directors, resigned. Mr. \V. Jones was elected chairman in his place, and Mr. R. D. Barford was elected to the vacancy on the board. Messrs. C. E. Dobson and G. Mackie also resigned, their places being filled on the directorate by Messrs. D. T. Egurr and R. T. Williams. You will be asked to elect seven directors in place of those now holding office, all of whom retired, but are eligible for reelection, and also two auditors, the services of Messrs. Dewhirst and Hopson being again available. The following figures should prove interesting, last year's figures being in parentheses: Milk received, 1910-11, 20,558,111 H)& (18,120,860lbs); average test, 3.88 (3.92); lbs. fat, 798,685 (710,645); lbs. butter, 927,724 (817,270); over-run, 15.16 (15 V Q0); lbs. milk to lb. butter, 22.15 (22.17); cost manufacturing and putting f.0.b., including depreciation, 1.338 d (1.280). Tlie chairman, in moving the adoption of the- report and balance-sheet, congratulated the company on a successful season. There had been an increase of 50 tons in the output last season. According to .resolution, creameries had been opened at Waitui and Bristol road, and this, he felt, was a step in the right direction, because the two creameries were handling the milk of one thousand cows, with hopes of many more, so there w;as, no danger of their proving a bad speculation. Plant to the value of £93 had been added at the main factory. This was caused by the boiler inspector condemning their boiler. It would have cost £2O to have repaired it, and even then he would,. .Qttly have allowed it t<D be used for another twelve months. The directors accordingly considered it advisable to instal a new and laTger boiler, .and, as a Jesuit, they were aWe to pasteurise cream this year. This was particularly necessary, as they were now taking home separated cream. Tlie Waiongona creamery had been running wtyb. satisfactory results, and on Friday Jast tiro Lincoln road creamery had also bw;n opened. The machinery and plant throughout were in good working order. The.'season's output had been sold at U%i, -and the directors had passed a ,tesolutjon:to pay out lid. - Mr. CUrk seconded the adoption. a. .THE DISGUfsSION.

"Any. questions?" asked the chairman, and.afcjonce there was a fu.silade, speak: ers at times cross-firing at each other «<rasflrthc, room, whilst a running fire of "comment at the back of the hall did 3iot tend to;'improve things. The chadr•jiianj.- however, exercised considerable patience, and kept a fairly good grip "of the meeting. - Mr. J. W 7 . Henwood asked how much interest had.been saved the Waiongona suppliers on account of the temporary frafe-fer of the credit balance from the general 1 'account to the Waiongona creamery account.

' The ' secretary replied between £2O arid £3o.'

■ln reply to Mr. Mackie, the chairman said' that the balance-sheet showed no interest on the general account, because the company had no overdraft, although some of the creameries, had. Such interest was debited to the respective creameries.

Mr. D. Todd asked if the chairman J could', explain why it had cost 12s 6<l per torn more to manufacture butter last season, than it had in Mr. Carney's second season, when within 14 tons of the present quantity had been manufactured. He also referred to the fack that of late years much labor-saving machinery nn[l I)W ' n a'hled. . The chairman pointed out that the lowest cost of the butter delivered at the breakwater in Mr. Orney's time was 1.37 d per lb. in the season IIMK.-7, against l.Xid per lb. last sc«-on. including depreciation in both cases. .Mr. Todd was making •some remark, when the chairman interjected: "Will you please address the chair?" Mr. Todd: Can you toll us the difference in the wage's bill during the two seasons? The chairman: One-thousandth of a pennv higher, or aJioul 2d per ton. Mr. Mackie: Jt's about £3OO in the balance-sheet. Mr. Todd: What is the difference between this year's wages account and last year's? . The chairman: Thin year was /s 0(1 per ton more. Mr. Mackie asked what was the gross amount. . A voice: You can easily reckon it out. , , The chairman pointed out that nact the season not been so dry the output would have been HO tons more, and this would have brought the cost lower than Mr Mackie: i ask you point Wank what is tin- total difference between the wages this year and last year? That should be an easy question to answer The chairman: We work it out at about £l.-)0 more, including all salaries. Mr Mackie reiterated that the baiaree-shect showed that it had cost £31)0 additional wages to manufacture 60 tons extra, butter, or an average cost of C<> per ton. Mr Todd also referred to the sale of the winter hutter. which he alleged was % .bit off. The directors had sold the ( M-..- output for lid, and had misquoted the miuntitv-(tlw chairmant: lhata true)-and lost how much, it was hard °Tl!e 'chairman: We lost nothing. (Apnhuse ) In April we were offered 10% d „',. „„',. May mil put. and Hie directors in-tructed the secretary to sell if lid W as forthcoming, and the secretary accordingly did so. lie. however, made a mistake'in quoting 1170 boxes instead of (Kill Tt was May 14 when this was discovered, and the buyer was at once notified. At that date the directors de-

tided to soil Juno's butter for M'/gd, but he and the secretary got l*2y 2 d for it. The directors fixed 12»/ 2 d as the : prico of the July output, but Is V/.a\ was realised. Considerable correspond- / enc« had ensued between the company and the merchant to whom they had oversold in May, and the company agreed to give, them the August output at V s d less than market price. However, when the time came, this was prevented, and the butter realised Is ly 2 d although the directors were prepared to accept Is Id. Some discussion here occurred between Mr. Todd and the chairman, the former stating that the company should not have dropped the Auckland market. The chairman pointed out that they saved ,£3OO or £4OO commission by so doing.

Mr. Todd asked if the chairman could inform him when the secretary asked for a rise—Was it before or after the mistake was discovered f

The chairman said that they did not lose any money over the transaction.

Mr. Todd wanted to know if it was not a fact that had they kept the May butter for a fortnight they would have gained 2d per lb. The chairman: Possibly so, but we cannot see ahead, can you?

Mr. Old said that he was not a winter supplier himself, but he wanted to know why, if the winter butter realised such high prices, they did not pay out higher prices during the winter months. The present method did not give much encouragement to the winter supplier. The chairman said that they had to do the best they could for the suppliers as n, whole, and not for one or two. If tflie shareholders thought they should pay out to the fullest extent he was quite prepared to take a resolution to that effect, otherwise he would not make any alteration.

Mr. Todd understood that the company was lending money without interest, and asked for an explanation.

The chairman said that they had lent £SOO to one merchant, who repaid them £IOO per month, and paid (i per cent, for the money. In regard to the transfer - ment of money from the general account to the credit of the Waiongona creamery account, the chairman explained that the money was lying idle in the bank, and he considered it good business to save the Waiongona people interest in this way. He pointed out that the Waiongona people had gone in for heavy expenditure for water power, and, as u result, their firewood bill was 1512, as against other creameries £44.

Mr. Todd wished to know who had approached the chairman on the matter. or did he do it out of his own kindness of heart.

Mr. Staclmrski: May I say a few words?

Mr. Todd: I object to Mr. Stachurski's eloquence on the subject. Mr. E. J. Brittian acknowledged that he had proposed it. Mr. Todd; Quite naturally! The chairman: You would do the came.

Mr. Old remarked that Mr. Todd was in the position once to have done so, but he never did it. The chairman: Because he never thought of'it."

Mr. Todd said the chairman was not sticking to the truth. He had had the opportunity, but never took advantage of it. - -- — - A voice: No brains to think of it!

Mr. Todd (sarcastically): Had I the brains of the speaker I would be in Parliament" to-day. Mr. Todd also wanted to know if anyone was feeding on turnips in September, contrary to the laws of the company.

The chairman said that he. was. It was not against the laws now that they wore pasteurising. Mr.-Todd isaid that they had notices to stop feeding on turnips, and such notices were still in. existence at the creameries. . - ..

.Several voices testified to this. Mr. Henjwood said that lie was instrumental in the_ money being loaned to Waiongomi....Much was being made about'tittle. A shiirehclder considered that tkc bank would 'charge Waiongona creamery 0 per CBril. 'for 5 ' the' money. The company shoul'd'have- charged 3 per cent, and thus'lraviii'little of the money. Mr. that Mr. Todd had lost idgW of the principle of cooperation. Mr. Henwood 1 pointed out that they had built the creamery at their own expense, andAvheTi paid for it would be handed over 'to '.tile company. Mr. Old'said'that if they had any surplus riioiicy it should be paid to the suppliers, who 'Were 'told when asked to vote for this creamery that it would not cost themone penny. Had the directors kept their' word' in' this respect? Mr. Todd qa.id that three years ago (here he was'interrupted by the running conversation at the back which was checked by thc'chairman), economy was the ticket. The manager and secretary were started .oiv'smull wages. Since then they had risen, the manager's salary until it Was'hFghef than any about here. Likewise, thu: (Secretary's salary had risen, and; so'had tire men's wages, until they were getting .is per week more than the union wages, .besides coal and lirewood, 'milkilaind butter. Surely there was as good men in the union as in their tin pot'-show. "There's economy for you," he ..concluded.

The chairman said that last year and tin's year they had paid out ,21d more for butter-fat than they had received for the butter.

Mr. Todd: Yes. .and put 4 per cent, more water in! It docs not taken an expert lo add water. The chairman: Doesn't it? lie pointed out that according to the award all creamery managers were entitled l to free house, milk, butter, coal nml firewood. Moreover, a resolution was passed some \ time ago.that the manager's salary was i to be increased' if. the output exceeded 400 tons-.

Mr. Todd wanted to know if all hands at the factory received the concessions enumerated above, but the chairman could not inform him. ilr. lioldt considered Mr. Todd's criticism unfair. He thought that the Employees' Union had been forced into existence by the skimping methods of oldtime directors in not giving them a fair deal. As regards the quibbling on increased wages, the factory had risen to wucli a position that it was justified. They were nut now in the conservative position in which they were before, but were expanding and now getting on true lines, lie objected to anything unfair and could not refrain from interjecting. (Applause.) Mr. Todd said that at all events they must admit that they were lis fid a to to the bad this year. Anyone with brains could see that. The chairman said that but for the drought the output would have been larger and the average cost less.

Mr. Hodges: What about the laborsaving appliance's that were installed?

Mr. Todd: Three years ago £BOO was spent in plant so as to minimise the cost of production and why were they still .I'SOO to the bad. Mr. lioldt: Compare wages all round with those of three years ago. Why, there's no comparison! Some more cross-firing occurred. Messrs. Todd, tfoldt, and others taking part. After matters had got back to normal, Mr. Bakewell asked if they did not naturally expect to 'have to pay the

manager more now that, lie had so uiaiij [ new creameries to supervise. \ Mr. Todd: Certainly not. lie has more I men to help him. I The chairman then put tllie resolution, 1 and the report and balance-sheet were K duly adopted. j

' ELECTION. I For the seven seats on the directorate

there were twelve candidates. The appoinlment of scrutineers evoked some 'excitement. Messrs. P. Dravitzke, W. Hcrlihy, K Dewhirst and (I: 11. t'arrington were proposed, when objection was taken by some suppliers on the grounds that some at them were shareholders] and interested in the election. One of the directors was amongst those who' •objected, and a shareholder said that if they were prepared to trust directors to mailings their affairs surely the directors could trust shareholders to supervise the election. After some further argument, the four nominees were elected ami the ballot proceeded. The scrutineers had a lengthy job, and it was some two hours afterwards when they declared the result «s follows:—W. Jones 502, E. J. Brittian . r >3B, R. T. Williams 517, D. T. Egei-rr 483, A. IX Burford 479, ,T. Staclmrski 404, M. McMahon 450, J. Butler 404, C. E. Dabson 395, T. G. Bow]e.r 385, 0. M. Boldt 14S, and R. J. Bakewc-ll 106. Messrs. Jones, Brittian, Williams, Egarr. Barford, Staclmrski, and McMahon, who comprised the retiring directorate, were all re-elected. For the position of auditor there were three nominated, viz., Messrs M. Hopson, G. P. Dewhirst, and W. E. Percival, and the two former wore re-elected.

MILK TESTENG. The chairman said that at last meeting the directors had been instructed to consider the question of independent milk testing. The directors had gone into the matter and could not see that there was any chance of reliability unless they made certain the samples were not tampered with. Unless this was done suspicion might be merely taken off thefactory manager and thrown on to the creamery manager. They had therefore decided to recommend a scheme whereby ten boxes each to hold two bottles should be erected at each creamery. The supplier would be given the key to his locker, and the whole lot would be enclosed in a Irt'i-ge case, of which the manager would have the key. When testing time came the supplier could take one bottle and the manager the other.

He also read a letter from Mr. Cuddie, in which he stated that he did not know anyone who would be available to visit monthly as suggested, but if it would help the company he would allow one of the instructors to run samples through several times during the season free of charge.

Mr. McMahon asked 1 if it would be possible to get the dairy instructor to test once a month.

Mr. Bakewell objected on the score of expense. One large box would be better than ten small ones. They might perkips get a local chemist to test when they wanted. The chairman: If the Government will do it for nothing that's what we want.

Mr. Brittian moved that a number of lockers be erected at each creamery in accordance with the directors' recommendation. Mr. McMahon seconded.

Mo 1 . Bridgeman (heatedly): I suppose all our employees are a lot of d rogues. If I was a creamery manager 1 would tell you to do all your dirty work. We would not like to be treated that way ourselves. Managers should be treated as honest men. It looked like locking things up from a. thief.

Mr. McMahon said that he had been told by a man with considerable experience in dairy factories that such a sy?tcni was necessary. In reply to Mr. Henwood, the chairman said the cost would be £3 to each creamery.

Mr. Old asked if they had room at Kaimata to accommodate lockers for 70 or 80 suppliers. Mr. Brittian pointed out that they would not ail need to take check samples at, on.Lt 1 .

Mr. Old thought they might. If one did all would. The motion was carried.

Mr. Williams moved that a letter of thanks be forwarded to Mr. Cuddie and that he be asked whether-he could arrange to send an instructor to test once a month. Personally, he considered it a most important matter. He noticed that Mangorei Co. were moving in the appointment of an independent tester, but he considered if they could get an instructor as suggested once a month, it beat all.—This was seconded.

Mr. Todd said why not go in with Mangtorei and have tests taken throughout the season. It might cost £l5O but would perhaps' be money well spent. He moved an amendment that a vote of thanks be accorded Mr. Cuddie, and that his otl'er be meanwhile, accepted until such time as they can arrange for an independent tester with Mangorei or any other company. The show of hands was accompanied by cries of "Down those that don't want expense!" The amendment was lost on the easting vote of tho chairman, ami the motion carried.

INTEREST OX SHAKES. The chairman said that the directors were unanimous that it was not advisable to continue paving interest on share capital. They had been paying 5 per cent., which meant that they paid the Government £3.'l last your. If the suppliers did not get interest, they would get a larger bonus, and the directors proposed to buy 'hack all dry shares, i.e., those owned by non- suppliers, at 15s per share.

Mr. Madde moved that it be an instruction to the directors not to pay any interest on share capital, but to pay 17s Cd per share for all shares bought back. 'Seconded bv Mr. Old.

Mr. TSakewell moved an amendment that tlie price given f° r sna, ' es he los. Ho considered'l7 s Gil tonhigh.

Mr. Stachurski, in seconding, pointed out that shareholders who would receive las had had considerable wear and tear ouit of the machinery.

Mr. Mackie: Yes, and had also paid for the depreciation of the plant. Mr. TSridgeman urged the suppliers to be careful. He asked if the company was prepared to buy back shares from creameries in which they had doubled the, shares. He had had to take 40 shares instead of 2(1. and had no hope of ever supplying" sufficient milk up to 40 shares. Would the company buy hack his extra shares?

The amendment was carried after some further discussion. BATE OF ANN'UAL MTTCTTXG. The chairman said that the directors were of opinion that it was advisable to have the annual meeting two month a earlier. To do that it would be necessary to clo-e the financial year on May 31st. He pointed out that at present when the new directors were elected they had to take the responsibility of work done by the retiring directors. It would mean a ten months' season for the first year. Sonic discussion ensued re closing one month earlier, but it was pointed out : that this would necessitate holding the i annual meeting when the buyers were [ about. On the motion of Messrs. Old and Sehrei'bcr, it was decided to make , the change. , 1 GENERAL. In order to avoid any confusion in tie,.