Dairy Companies.

Taranaki Daily News, Volume LVI, Issue 87, 8 September 1914, Page 8

Dairy Companies.

A.NAUAL MiJiijAua JvAUi J OJtUj.i ul.

The annual meeting of the Kanpokonui Dairy Company was held at the factory, Kaupokonui, yesterday, when Mr W. J J. Powdrell, chairman of directors, presided over an attendance of about 120 suppliers. > In moving the adoption of the report and balance-sheet, which have already been published, the Chairman said that the report should be considered satisfactory in every way. They had had another good year. They had consigned at the commencement of tile season at 5%d, without recourse, but owing to the fact that stocks had accumulated largely in New Zealand on account of the strike, their produce on the London market had realised very little more, practirn'lv the same as the previous year. NfTei Ihcless, they had paid out to suppliers a little better than the previous year. A little over £SOOO worth of butter had 'been made out of the whey, which returned to each supplier y 3 d per ib more for butterfat during the season, showing that the innovation had raid well. The company had suffered a nig loss and dis'ocation of business owing to the fire at Auroa, which hod cost the capital account £2IOO, The glare capital account showed a aatisfacfwy position. The alteration of the share basis from 1201bs of butterfat to SOlbs of butterfat had resulted in the allotment of 7305 shares, whilst the natural increase from ordinsrj .supply and new suppliers had meant a further gain o> '•"SO allotted shares, w'hicli, jiftor allowing for 532 shares purchased bv company from retiring shareholders, showed ■l net gain for the year of 8792 new shares. It was pleasing to see that t?io milk supply was increasing. This year, the factory had handled over a million pounds more milk than the previous year, which had also shown a similar increase over its predecessor. He pointed out that during the year the amount of cheese manufactured from each pound of butterfat was lower than the previous year, viz., 2.55 lbs, as against 2.591b5. Thin was due to the directors having instructed the manager to make a drier cheese, owing to advice having been received from experts that New Zealand must be careful not to spoil its good name for its cheese. He was not satisfied, however, that Kaupokonui had received any .Benefit fro— the drier cheese. The total share capital was now £31,301, o! which £8295 Os 7d was unpaid, leaving a working capital of £23,005 19s od. It seemed wonderful that so much -business could be done on so little capital. Cartage cost £dl!>s lGs Id, as against £1302 last year. This was due to. the fact that they had gone in for motorwagons, which had been working successfully for a few months. They had sent more cheese this year at a decreased cost for cartage, and next year they hoped the, cost would be further decreased. The store account showed a profit of £1268 13s Id. The accrued profits during the term of 3years since the fire (less £SOO carried forward) had been £5034 3s> od'. xaere were now goods in stock valued at £10,977 5a 7d, as against £10,145 last year, but their turnover had increased, and was now about £35,000 per annum. The money on deposit with the factory was the same as last year. Some few years ago, he stated, the directors had ■ endeavored to find a plant that could cope with the pasteurisation of their milk, as they knew that this would improve the quality of their cheese, but they could not find it. They were now about to instal a new machine on trial, and if it was satisfactory and coma be run economically, it would be installed. It would cost from £3OOO to £4OOO to instal pasteurisers in all their factories, so that it was wise to experiment first. Referring to the interest account, he referred to the fact that this showed a credit of £67 3s 3d, the money they had out at interest more than paying interest on overdraft.

Referring to the prospects for the coming season, the Chairman said that it was absolutely certain Unit tlierc would be no sale this year. They would have to consign. There was no doubt whatever hut that they would have a good market at Home, as cheese and meat were at a higher price now than they had been for years. There was nothing, therefore, to fear on that score, providing 1 that the trade routoa could be kept open. Personally, he thought that they would benefit by other i people's misfortunes, as less eheese would be coming into England. It would, of course, cost more to place it on the market. They would have to be cautious regarding advances. They could not teJli whether cheese. * would ,realise !)d or la (id per lb. for butter fat. The Naponal Dairy Association feared that there would be a blockage in transit at Wellington, owing to the Government taking insulated boats for transports. The result, therefore, would probably be the same as last year. In the matter of advances, they would have to go slowly until they saw how they got on at the other end. He had been told that they could get good advances against the store warrants, lint J"! did not think that ithis would last long if the produce were hung up in !se\v Zealand. The bank would advance at the rate of about 6d per lb hutterfat, but he hoped it would not come to that. They must, ho-.vever, he reiterated, look ahead. The Dairy Association was endeavoring to push the shipping companies. hut he was afraid there would be a block, and all would have to sacrifice a little. After the produce had been got Home, and they knew what it would realise, lie toped that they would get back to their usual prices. All depended on whether the trade routes were kept open.

111 conclusion, ho stated that the position of the factory was very much better, and he hoped next year to considerably reduce the overdraft. Irrespective, of the land, factories and. plant, which wotc free, the assets that they could realise at oneo were £13,000 more than their liabilities.

Mr It. Dunn seconded the adoption of the report.

In Teply to a question by Mr D. J. Hughes, as to wheiher mutton got the preference on the Remuera duritig the ' strike because tiie big squatters had a puil on the shipping company, tbe Chairman stated that the sheep men had contracts with the 'shipping companies as well as the dairy companies Had, and the mutton was in store ready, whereas I the dairy produce was not. i To Mr R, Hugues, the chairman stated that the expenses had increased owing to the payment of £125 towards the strike fund, which had been necessary so that their staff could be handled. To llr iPoole, the Chairman said that the store profits were utilised to reduce the store overdraft.

3tr 1). J. Hughes, in a lengthy, criticism, considered that the item of £SOOO for whey butter was erroneous, as it included starter cream and also seeondgrade milk. He could not understand 1 why the average test at the factory had J not improved, for the Testing Association had been in vogue for three years. It wast dangerous, lie considered, for ttie directors to accept money from suppliers at call. He referred at length to the i disposal of ast year's cheese at 5%d,' ,and said th.it if it had been sold for ] 1-Md more, as Jolt's had been, the company would have been £1309 better off; and if for 6>/ 4 d, like Riverdale's, thev would have been £11,170 better oft.' Turning to the store account, he praised Air Parkinson, the manager, for improving it, but In. dill not consider the ffcaTgnef, £ily9 isr ,£jr{sge euflkiejit., Moreover, the store should ktand on its own bottom nd pay ground rent, however small, to Hie factory. The balancesheet, he thought, could be set out ffloi'ff clearly. At present it would puzale a Philadelphia!! lawyer to understand it. The liability to the Freezing Works at Patea should be shown. He asked whether the motor-lorries had not earned money for outside carting, and, while not Warning the directors at the time for purchasing lorries of a German make, he considered that they should be very particular what they purchased of German make in the coining year. Britain, not Germany, should be encouraged. In reply, the chairman stated that both start-M- and whey butter were shown separately, as creamery and factory butter. Milk of second quality was made up with the starter butter, so that it should not have to bo fed to the pigs —and the farmers got lOd per lb for it. He defended the acceptance of money on deposit at call, stating that the company saved one per cent by using it, and could always pay it out of overdraft if it were suddenly called up and still keep the, overdraft within the limit, lie again emphasised the splendid financial position of the company. Moreover, he pointed out, their milk supply was going up, while other factories in the neighborhood were going down. Referring to the price received for their cheese, he stated that it realised l-10d more than the 5%d at which it was consigned, so that they received a price equal to Joll's. Moreover, it was eaßy be y<j*e ;i.-ior, the eveni. They 7 .were paid out on an average tost of 3.86, and when they considered the average price paid out per lb of butterfat, they must also consider the test that was received. For comparison, he enumerated the tests of the various factories, showing, Kaupokonui 3.80, Joll 3.03, flawera 3.78; Pi. hama 3.84, Lowgarth 3.85, Riverdale 3.79, Mills u.OO, 3.58, a,iul so on. Heferring to the water-race, he said that the directors intended to have the tunnel concreted. Referring to the objection that £ 100 was not enough to charge against tho store for delivery carts, he pointed out that these carts had to bring in cream as welt as deliver supplies, and that the £IOO was a- fair proportion. He considered thait the directors had done well in supporting the Patea Freezing Works, even if it showed a loss this year. That was, he. said, due to the fire, and they had gained five; times as- much .by the extra price received for the 7000 head of cattle killed, as without competition the price would not have loeen. so good. Regarding the motor-wagons, he said that they did not know who their enemies might be to-morrow, and they were not at war with Germany when the wagons were bought, and these were bought as a good business proposition. Referring to the test and the Testing Association, he said that though the avcrago test may not have increased, the average yield per cow was going up. Some discussion then ensued over the store. The price of manure was also the subject of much argument. The report was then adopted. An adjournment was then made for lunch, and on resuming the first busi- I ness was the

ELECTIOX OF DIBECTOKS. The chairman stated that his directorate were the strongest body that he bad ever seen, and were not weak-kneed, aa had been suggested. He therefore hoped that tliey would he put back again. He pointed out that the directors would require to sign a joint and several guarantee for £ 10,0(10. The following nominations for the three vacancies were received: Messrs Wm. Hair, T. MePhillips, W. If. Le Fleming (retiring directors), W. T. Wells, and 0. Burke. Messrs McDonald and Beatson were appointed scrutineers.

Eafh candidate briefly addressed the meeting, Mr T. A. Bridge speaking on behalf of Mr Le Fleming, who was absent through ill-health. The 'ballot' resulted: Messrs T. MePhillips 405, W. If. Le Fleming 4te. W. T. Wells 283 (elected), W. Hair 288, and 0. Burke 156. Messrs W. O'Callaghan and 'H. A. Lennon were nominated for the position of auditor, and the former was re-elected. PAYMENT OF INTEREST.

D. .T. Huglies then moved various [notices of motion standing in his name. The first was that the directors have power to charge up to 7 per cent, interest on all moneys owing- to the company. His idea was that this should refer particularly to store accounts. First, he -wanted to know if this could be done legally.

The chairman slated that this was [being done by the directors at present. No one had ever refused to pay the interest after being given the usual notification allowed by the law of the land. On this explanation, the notice of motion was withdrawn, i PROXIES. Mr D. J. Hughes then moved that the

following should be incorporated in the ' articles-of association :~"That all can- " aidates for the position of director for £ oni p&ny be disfranchised from vot,by Y a ; v of P rox . v > '•<=•> 'Otijig* , ! out that last year one of tlw» n been returned ty less voUs ■ h ® he ! d 89 proxies. ' fr t , ~e , n ? an flaid tl| at this was at the OnmA« a " h f read th ® action frwn PersonSfvT 8 rcferrin 8 to proxiw. LZT 1? waa °PP° sed to the resolution. as those unable to attend the MrT T,° Uld ~b e disfr "»cliised. it ■»<"!»-= -a H i,l urth " r notie e of motion by Mr i ultra' that tbiß afa. drawn th e motion waa with-

THE STORE,

3fr Hughes then moved: "That it a recommendation to the directors of the company to dispose of the store business to the best advantage." He thought the store would eventually cripple the produce side of the company and he suggested that it should bTd£ posed of to the Farmers' Co-operative Association, which would soon be branching out all over Taranakf , .fli'i C) 1» irrpan SMonded pro forma, and . fcaid that he might have supported n had the moved added: ' and dispose at the factory to one of the iieighborina companies." Personally, he considered'it r £ verv ridiculous motion, and one that belittled tho whole company. It nonsense to say th&fc thej would ham done better if they liau list" qgne is for the store. The directors had frtiaVT' anteed the store at t .e bank to tho ax« tent of £IO,OOO. The store turned » a profit of £I2OO or £ISOO per annum, and if they did not want it, then sell it to the eight men who had guaranteed tho overdraft, for they would only bo too pleased to take it. The store was * good for tlio farmers. It gave them cheaper goods and cheaper freight for providing back loading. Mr Blattler did not think they s'houKt dispose of the store, but under better management it might show 'bigger profits.

The motion ai overwhelmingly lost. GENERAL. The chairman and the directors were voted the same honorarium as last year. Votes of than'u were accorded the directors for their services, and a special vote was accorded Mr Hair for Jii» services during his 13 years on the directorate. ' !

Votes of thanks to the manager (Mr McDonald) and staff terminated, the meeting, stress being placed on tbe loyalty displayed by the staff during th* etnice.

RIVEUDAUS. The annual meeting of the JiiverdaJe Lo-operative Dairy Company wj & held &t tile factory, Jialia, yesterday; it. Ji. Batten, chairman oi tttiaetow presiding oyj>r an attendance, oi about 50 suppliers.

■ln moving the adoption of the report the,, cJiairxnan remarked that tue cottfr (^ a y 'hf'd paid out a 'better price this year than ever bwore. He tnanked tb» manager ana secretary for the good work aone. The cwnpany had taken up raOO m shares in the Bacon Command -™ wanersiders' strike luui caused tlla (tompany a lob ot trouble, and on this account tilie amount available distribution to slwPaholde.it} would »e lessyy *l3O. Tho sum oi £4O JivuJ been paid to the strike committee in Wellington. Ihe company had decided to fw m the whey and manufacture wiley butter. During the year considerate attention had been givcrn to the pasteurisation of the miiijt, aaul the manager mid designed ft piant capable of aea'ling with tea vats. The reports received from Kointt m regard to their cheese had been verv satisfactory, and it realised 6s mors Khan ifchc average .market price, -lae pnopecta for tho coming, season were somewhat mixed', owing to the wax, and everything depended upon .the sea-wavs being kept open. Releitring to .the cooperative store run in c*Jiiu<otion with tho factory,. to stated, that this waa a great benefit to tho shareholders. iue adopuon of the report was seeonueu l-j Mr. J. \y. Snowaen, and carried.

iiUIiUTION OF I)Ii4KO'X'OiKS. For the three vacancies on uiie direean/i h ? i -J&tei, ij, Jjivingiatbon K. Joltiiw, tliere were live candi* tea, yjz., ilie tJirc© above mentfoß^r uLtTf- • M< 'p ailu ™ and JZt MLvsrs 1. b. ..ailcccits, ..koyd njvii "'I;!;' ''''J" nppoillM scmltincew. JTjZI * (clecfccd) ' * Jfort 110

OENJSttAL. it was stated that the conrnanv On the motion of Mr. J. d . MoOaJlnm Tu* f*r be aatmn to the directors to reviaa +h« taSK,"** 1 * * tt a a^ ... ° » Wicm up to date and to I&mb taWe A of ttw inDW * th# «nd tie W w" e Z'J ** WaM^t of~ n C TOtod an '»»«- 1 wenfcy-two of 'those nrespnt r ettlS. i>i ' oletiSOr JiK>wn ' s class °a "ga-

, OPUA. aW com^yWmTESW ** -Opua road, on Saturday, August prosided. (chairman of directors) 'After writing off 5 » 0 i- f„„ , nation, it was decided to pay's sSrv zr l : ip ci,,, l ita! aa date a further payment of 2d per \h on October, and but- ~ .o ». P ™», P. Walsh and A. €. I'eavei At a " F™t e '} UCnt T tingr of ErectorsG eavei was elected chairman and Mr. M J- Srennan, A.P A v/ ; auditor. ' rc " el Mtcd The report stated that during the year uwm , " e ,' 1914, 2 -4iiO,49!>lbM of milk •171 r l ' n w - ltll an avera S< ! teat of •J./3. I'rom this 24(i,7431bs of cncesa were manufactured giving the result of . .Slbs oi milk to Mb of cheese, and 2.72 lbs of cheese to lib of butter-fat. Tha average payment for butler-fat during the season was 11.03 d, which, together V-™ !'!" p 3 shown on balance-sheet of UVI lbs 4d. represents a value for but-ter-las for the whole season of 13d.