MOA DAIRY COMPANY

Taranaki Daily News, Volume LV, Issue 66, 5 August 1912, Page 6

MOA DAIRY COMPANY

S KVENTE ENTII ANNUAL MEET I NO. The seventeenth annual meeting cf shareholders of tiio Moa Dairy Company, which was'hold in ihe Parish Hail, fnglewo<d, on Saturday afternoon, wjs attended by a large gathering, over \rhieh Mr. W Jones, chaiiman of, directors, presided.

The report and bnliutce-'hect (a summary of which has already appeared in the columns of the Daily News) was taken as read, and in moving its adoption the chairman congratulated the shareholders 011 the successful season just concluded, lint he pointed out that it was impossible to compare it with 'the previous season, as it was only of ten months' duration. Referring to the prospects for the coming season, he remarked that without any doubt the prospects 'were very bright, and unless he was very much mistaken they would be able to pay out Is per Jb. for butterfat. The motion was seconded by Mr. Clarke, .and, in the course of a very brief discussion that ensued, Mr. Henwood referred to the separate creamery accounts which had overdrafts at the bank on which interest had to be paid, whereas sometimes the company had a credit balance to its general account which was not interest-Tearing. He thought some alteration should be made. THE NEW CREAMERIES.

Mr. 0. J!oldt asked if the new creameries had come up to expectation. A great deal had been said when they were erected to the effect that they would be unprofitable. Naturally they might foe. at first. J)ut as idle land came into use they should be self-supporting. The supply at Bristol road and Lincoln road should increase considerably when the idle land available was carrying dairy cattle. What, lie asked, -was the position from an administrative point of view with regard to the creameries? The chairman said that all were paying, with the exception of Lincoln road. The cost per hundred gallons at the various creameries was as follows: Bristol road 4s Bd, Waitui 4s Gd, Dudley road 4s sd, Waiongona 4s 4d, Kaimata 2s sd, Ratapiko 4s 9d. Lincoln road was higher. The supply at this creamery had gone down quickly, and as soon as it was found that it was not paying the creamery was shut down for the winter.

Tn response to a query, the chairman said that when the creamery was not running the creamery manager was not paid, except for a fortnight's holiday, which was compulsory under the regulations. The grain store at the main factory had cost £9O, and he considered that the shareholders had reaped the benefit, inasmuch that by purchasing twelve months' supply of horse feed they had saved shareholders 15 to 25 per cent, on the cost of horse feed. The report and balance-sheet were then adopted. ELECTION OF DIRECTORS.

For the seven positions on the directorate there were eleven riominations. Messrs. Dewhirst, Hops on, Dravitzki, and Fabish were appointed scrutineers. The election and the counting of the votes, occupied a couple of hours, the result being that E. J. Brittain 632, W. Jones 631. R. T. Williams 479, D. T. Egarr 446, J. "Butler 413, J. Stachurski 415 and M. McMahou 402 were elected. Messrs. R. D. Harford 300, J. P. Jensen 294, T. S. Bowler 293, and W. P. Bishop 288 were the unsuccessful candidates. All the retiring directors were re-elected except .'Mr. Barford, who was replaced by Mr. Butler. Messrs. M. Hopson and G. F. Dewhirsfc were re-elected auditors at the same remuneration as previously. CO-OPERATIVE STORE. Mr. Egarr then formally moved the notice of motion standing in (his name: "That the objects clause of the memorandum of association be extended so as to enable the company to commence and carry on a general store in connection with the company." In his remarks he said that all round the country com-, plaints were being made as to the cost of living, and how to reduce it. A labor representative had stated that he was satisfied with the cost of production and manufacture, but suggested Miat the middleman should be eliminated. Here the company .had been in existence for 17 years and tliey were still going to the storekeepers. They could effect a great saving if they had a store of their own. For many years he had thought! so. He instanced the savin# that company even now was effecting by indenting some articles. Salt, which cost ,£"> per ton, he could not procure from the stores cheaper than 7s 9d per cwt.' This was only one article. He felt sure thaft with a store of their own, after pay-, ing cost of administration and management, they could save suppliers 15 per cent. ,

Mr. Clark seconded the motion. "Mr. McMahon moved as an amendment that the objects of the company he extended by the addition to clause 2 of the memorandum of association immediately after subclause C of the following words:—(o2) "To carry on the business of a general store and supply association in all its branches for the purposes of supplying goods and chattels of all kinds in bulk to shareholders, and, in particular, tob uy, sell, and deal in goods, stores, merchandise, consumable articles, chattels and effects of all kind." Mr. Geo. Haslett seconded the amendment. The chairman remarked that the store would be run as a, bulk store. Jvo drapery would 'be stocked. 11l response to a query from Mr. Todd, it was elicited that all transactions would be cash, the money being stopped from the suppliers'' monthly cheques. .Mr. Todd remarked that"this would bo all right as long as the money lasted, but what about the winter months? 'Mr. Curtis said that he had had several years experience of tiie Ivaupokonui general store. If a supplier had goods the money was stopped from tile milk supply. The trouble would be in (be winter. W ere they prepared to trust their .suppliers till the following season (Oh'* of "\o." and "Ves, and ou have the .share money.") Then again (here was the question of bulk. Main- suppliers would not eare to take a box of *uap. when only a bar or tivo was required.

Mr. Kgarr pointed out, .that the intention of t])<> company would be only to Mipply Hs shareholders. not anvone who came along with the cash. The important part was that it would be a profitable venture tor the companv. Mr. < urtis Raid he had been able to buy goods cheaper in Inglewood than at the Kaupokonui co-operative store. It ™sy, he remarked, to show a big profit if a hip; percentage was added to the cost of the goods.

Mr. .T. P. Kennedy thought they should have more details before them as to what the various goods could be purchased for. Moreover, it would not hi! fair to throw over the storekeepers who carried 'thorn over the 'bad times to deal at the factory, which would earn- them through the good times <ind throw them over in th.- bad. Tf the factory was not prepared to give them credit in the winter, tlic scheme could be knocked oil the head. Mr. lodd thought that it "Would be no use purchasing from wholesale mer-

chants, as .they would then tie una'ble to sell cheaper than the local stores, i'hey should either indent or purchase iirough 'the National Dairy Association. In regard to finance the chairman ex-

gained that they proposed to start on a < nail scale, with nlhout £4OO or £SOO • oi'th of stock. ' This 'time next year, >f the scheme proved a success, they •••mild ask 'the shareholders to give thein iie necessary finance. The directors did know something about the scheme. Considerable money could .be saved. It was proposed only to open the, store twice a week and place the secretary or manager in charge. Mr. Curtis: Before long the Labor laws will prevent a man doing two things at once.

Mr. Egarr: By that time the scheme would have proved so successful that they would have no hesitation in appointing a man to manage it. Mr. Williams saiil that the idea of the directors was to save shareholders us much as possible in.all dairy necessities. The storekeepers had a combination among themselves. This scheme would save the shareholders 15 per cent., and when the winter time came that 15 per cent, saved would supply all their necessities.

Mr. Me Mali on instanced the saving on basic slag, and thought other things could be ordered similarly. 'Mr. Jensen favored the scheme. All difficulties could be surmounted. They must work on a .strictly cash basis.

Mr Bridgeman said that if he was a storekeeper and a supplier came to him in the winter, lie would tell him to go and get his goods where lie got them ifl the summer.

Mr. Curtis wished to know if the suppliers at the creameries would be placed in the same position as those at the main factory; would the cream carts carry out goods to them!' The chairman: Not if it was heavy stuff.

Mr. Todd was emphatic in liis remarks that they should confine their operations to bulk, and with this addition the amendment was carried. CASEIN.

The question of casein 'Was touched on but evoked 110 discussion; in fact, it was not treated very seriously. With regard to casein, remarked the chairman, only to he greeted 'by the interjection, "We don't want it; turn in into cheese," he and Mr. Williams had visited the casein factory at Wang&nui. They had been shown some good calves reared on skim milk from which the casein had 'been extracted. (A voice: ''They're dead now.")' Five or six factories had sent representatives to Wanganui. They were satisfied with -what they had seen, .but had decided to put the matter off until they heard what the Government expert had to say on the subject. ' OUT OF ORDER. "Mr. D. Todd then asked a question relating to the balance-sheet. He wished to know the comparative cost of production. The chairman, however, ruled that the balance-sheet had been adoptqd and the discussion could not be re-opened. The meeting was over half-an-hour late in starting, ho announced, and Mr. Todd should have 'been present. If he allowed the discussion to re-open, it would never finish.

LOCKER SYSTEM. ' " OR INDEPENDENT TESTING. Mr. Boldt remarked that the locker system had not ibeen the success anticipated. (A voice; "It is.") It was not a, right thing to undermine the manager in this way. He could not understand how a conscientious manager could work under it. Testing was a very fine point, l't would be all right if an expert always did the testing, but he objected to every Tom, Dick, and Harry being allowed to test, -whether capable or not. A much better idea would be the appointment of an independent tester. As long as the locker system was in vogue they would have strife, and they had had strife enough. He moved tihat as an alternative an independent better should be appointed.

The motion was seconded by Mr Horner.

Mr. McMahon considered that the appointment of an independent: tester would show as great a.want of confidence in the manager as the locker system had been alleged to do. Mr. Curtis said he would be in faivoi of an independent tester if the tester would test individual cows. Farmers, h<j was convinced, did not know the benefit' to be derived from cow-testing. At Kaupokonui, where they paid Is 3d per lb. for butter-fat, he had proved tlhe value of individual testing, and gave a specific instance.

'Mr. Egarr thought the locker system had proved a thorough success at the two creameries where it had been adopted. It was within a supplier's province to see that he <wa9 not being beaten.

After a little further discussion, in which one supplier considered that it would 1 be a mistake to throw away £l5O of the suppliers' money in the appointment of an independent tester, the motion was easily defeated, only about nine voting in its favor. CHAIRMAN OF DIRECTORS. At a meeting held subsequently Mr. W. Jones was re-elected chairman of directors.