WAREA DAIRY COMPANY

Taranaki Daily News, 3 August 1915, Page 6

WAREA DAIRY COMPANY

'• | ' The eighteenth annual'meeting of the •Warea Co-operative Dairy Company was held in the \\ urea. Hall .yesterday, wlicn Mr. J. Burgess, chairman of directors, presided over an attendance of about 40 shareholders. including several ladies. In moving the adoption of tlie annual report, and balance-sheet, wliicli Mere publi-.hod in yesterday moraine's paper, tile chairman Mated that at the opening nf (lie <lairvin«r seasoi; the, greatest war in the history of tlie world had just coninieneed, and what, its effect 011 the prices of produce would foe none could tel.!. .Scarcely any of the buyer; were prepared to make offers that dairy companies could entertain. The uncertainty of being able to get it Home safely, together with a feeling that a commercial crisis might make it. impossible to get payment for it, made it ' a very anxious time for all directors of dairy companies. Most of the companies in the South Island, and a good many in the Xorlh Island, came to the conclusion that it was safer (o sell than consign. The directors of this company decided to divide the risk, selling half at O'/.d (which was about the highest price in the dominion) and consigning the remainder. The steps taken by the British Xavy in dealing with the German cruisers and navy, and the firm steps taken by <!: c British Government to prevent a •'.«» aria) crisis, had saved the position, whilst, (he adoption of choose as a parf of Ihe daily ration for the ' '" !| 1 sent it up to such a price a: not. been dreamt fir. Though fiithat had consigm.Ml hail eome out on top, taken all through the dominion, Warea had eome out as well a:-, the majd'itv of them. Owing to the shortage of - :.ie freezing works at Moturoa had i, ,u blocked, and the cost; oE handling had accordingly been greater, Still, under the circumstances, they were lucky to have escaped as lightly as they did, especially when they considered the high prices'recei ved. Jt was pleasing to state now that not a case of choose was left in the freezing works. Xearly ail the cheese at the factory had been disposed of. and there was now no old cheese in hand, though a month or two ago it was feared that the new season's cheese would have to compete with the old. As far as one could form any opinion, cheese was likely to be at a j'igli price 'this season, for more reasons than one, though, perhaps, such extreme prices as recently will not be realised. He urged upon them all to do their utmost to increase their output and thereby benefit, not only themselves, but also help to provide food for the gallant men who were fighting for them all. During the past season a herdtcstillf; association had been formed along the coast, but. it had been supported in such a half-hearted manner that it was almost certain it could not keep in existence. Okato and Warea were the only two places that supported it to any extent; whilst further down the coast the support was most disappointing. Speaking from personal experience, lie stated emphatically that, nothing paid better than weighing and testing, and if sufficient Warea suppliers would like to continue-probably some arrangement could he made. During la=t winter they had heard so much about pas. teurising in connection with cheesemaking that the directors decided to visit various factories around the mountain, and returned fully convinced of its advantages. They were fortunate enough to secure a plant, which Improved itself to be the best yet upon the market, and the past season's operations had fully proved the advantages of llic process. Rather less fuel than under the old style of heating had 'been burnt, more cheese had been produced, and. though cows were fed to a greater extent ( tlian ever on turnips and other feed calculated to taint the milk, the avciage grade had gone up and the amount of second grade reduced to one in three hundred. Last winter a scheme was started for marketing the dairy produce to better advantage, but when the war broke out this, like many «' other things, had to be abandoned, lie cli-cussed the 'balance-sheet at length. Referring to the pasteuriser, he pointed out that at Warea the make of cheese to the lb of fat increased from 2.33!!> to 2.601b. just r>y!; per cent. At Xewall Road, where there was no pasteuriser, the make rose from iaialb to 2.711!). an increase of 2 1 /. per cent. The rise at Warea was H% per cent, and as the same manager was in charge each year, and the test had fa lion at V.'area and ri-on at. Xewall this increase could only lie put down' to the pasteuriser, as could also the fact, that the grade at Warea had risen 2',s per cent., as aaginsfhalf per cent at Xewall. 'Pasteurising meant a gain to the eompanv, after allowing interest and depreciation, of £20!! 7s. In addition, it was possible In u=e foods that were not allowed before. The oururaft at the bank was the lowest it had been foe some time. The bank interest was lower than previously, and for the future should be even more moderate, owing to an arrangement with the bank, whereby they could amalgamate the two accounts. Referring to items in the balance-sheet, he pointed out that the total value of the plan! and buildin?; had been depreciated 'by despite the fact that the pasteuriser and new "Weighing plant hail been installed. The export charges had 'increased owing to the cheese being a longer lime in store, and abo on account of the three shiHin'.'s cooling charges. .fuel sliowad a slight decrease, ami next year it should be 20 per cent. less. Tlie incim» in wage-, CM 12s S-l, was partly due to the secretary receiving an iuiroase of JJ2II, the manager C2"> and the second assistant £1:1. The total working expenses, as compared with the previous y-'iishowed a decrease of

in I his 2d. am! Ihe value of output an increase of CMIS ."is lid. He pointed out thai tin- fr.vzina v.nrk*. owing to flic added work caused by I lie strike, paid no dividend, hut would pay one this year. The I',ox Company paid ii pi r cent,, lull ihis did iu.l colli" to hand pi lor io the close of the iillli 11'. :a 1 year. Tiie I'.iiX CoiiiaaiiV was a-Mng shareholders to ii: I'ea-e i heir -hare eapilal bv taking n,i two -hare, lor evorv (mi chec-e. iii-fi .ul of !> . toil, a . at present. Tiii - was 1,, enable the rompaay to develop a- 1111 s 11 at Tanivwa eiaitainill e -_'S.OIIO acre*. Willi ,'ioo lloa.Oi;,) feet of totara. niatai and v.iiiie not likely in in lit - c the Wan-a I'mnpain's annual charge-, a- (he eoiiipany aia.'av [i iid iislere-t. lb' i»!i.»ii|eri '1

that'tl.c Warea balance .-licet was ~p.c. of file he-i CM-,- pl.Ua'd hcle-rc tilelll. Tile V. ei Ling e \ pell - es had dc. leased, the make, avei-a-c le-l. and average grade kill g'..ac up. and pa-'.-'iii'.'-iiig had proved mo-l suivci-l'til. in' ioui'se, had the disc dors i unsigned (he whole output. 11.- y ernalil have paid out I.H but thev ((r'jsiilercil it was unwise to place all thfir e;'L's in one ba-kel. No one. lie re.terateil. dreamt (hat, cheese would be os high as it was. He did not think tlio high price would end with the war. Ch«aw "wa« Included, in the daily ration

| C;i^iU)iCdi3iiiiehaia : b;t,iv^vO.U. t l'l« l i , , r / I '.* ! it.i , i.iii;e (iiiit'iriieiWYilifee. '.r^kiwAWiiVi^ig&^t [. jeiiwi-. 1 HffllUvOTitt'■ Vk» jnUßfc''to l 'Sustain i the -price.". ! Mr. K. Corbcit aecSndcd tlie adoption of tho report and balance-sheet. Some discussed ensued over the !Box Company. Mr. J. Lawn considered that £30,000 was a large amount of capital to expend without receiving any returns. The chairman pointed out that it was necessary to instal four miles of rail to connect with the Main Trunk. lie strongly defended the I Sox Company, and pointed out that but for its establishment the price of boxes and crates would have considerably advanced. Indeed, he stated that only recently two outside lie-; factories had approached them and a-keil that they should raise tlie price of their 'boxes 2d.

■Mr. Chapman understood that some outside companies were offering boxes cheaper than the Box Company. If tiiis vrrc possible, the company should be able to develop on profits, and should not require fresh capital.

The chairman considered that there might he occasions when 'boxes could be thought cheaper, but this always lizzled out after a mouth or two, and was only when a saw-miller struck a. packet of white pine, which he wished to get rid of.

Several shareholders considered the Bex Company the lbo«t paying proposition dairy companies had gone in for, Mr. H. Corbel t advocated open consignment every season. lie did not see what advantage was to lie gained 'by selling, unless, possibly, they expected to get juore than their produce was worth. Personally, he thought if (liey got market value it was all that tliey could expect. 'While not wishing to tie- I'ne hands of till' directors, in special circumstances, he favored open consignment as a general thing.

The chairman >aid that he had at one time thought it wisest always to consign, but there were difficulties in the way. If half the factories consigned, and half sold, all did well, because the merchants, having given a failprice, would do their host to keep prices up. When ail consigned, it was of no advantage to the agents to work hard to obtain an extra Is for the sake of the commission.

Mr. Lawn said that factories that changed from consignment to sale, or vice versa, did so at the wrong time.

The chairman said that there was a scheme under discussion for the uniform marketing of their produce, and. while it was a case of each .for himself, there would he very little improvement. In reply to a question, tho chairman said that a pasteuriser had been ordered, and would he installed at Xewall Road this month. Mr. Lawn drew attention to the Item of ,E2,\ payment to the West Coast Railway League, tie. considered that it was not fair to the share milkers that*votes outside any factory matters should be, passed. The chairman stated that it was passed at a directors' meeting prior to last annual meeting. The report and balance-sheet ivere adopted. INTEREST OX SHARE?.

Referring to the payment of interest on shares, Mr. 11. Corbett .stated that ho objected to the proposal to pay an additional 1 per cent, interest. He favored reducing the interest to 2C. per cent. Ho pointed out that there ivere COO dry shares, audi of these some 300 belonged to men who had loft, the factory to .supply neigh,boring factories. Only for tho fact that some of the shareholders had legitimately ceased supplying, he would not favor payment o f any interest on dry shares, and he accordingly moved that it be a recommendation to the directors to pay only 2 1 /. per cent. The chairman recognised that it was impossible to differentiate. He pointed out that there wore several who, through no fault of their own, were now noil-suppliers. Those men had supplied tlie factory in days when they allowed depreciation to such an extent that the shareholders would shudder if the same j depreciation was wiped off now. Those who had borne the burden and kept their shares certainly deserved to be paid interest. Payment of an extra t per cent on these shares would mean an extra £O. The company would soon have to compel outsiders to soil their shares, as the company would require the share, to reissue. Mr. Lawn seconded. Payment of a lower rale of interest would force them to sell. Mr. Cassie thought that those who had pah! for their .-bares were entitled to interest, Ho considered that if it became generally known that farmer? were unwilling to pay interest to those who had ceased to supply they would have very little hope of getting non-suppiiefs to assist in establishing concerns such as the freezing worlcs. An amendment by Mr. Muir, [hat, o p;r cent, interest he paid, was carried.

XI'MIBER OF DIRECTORS. A special .meeting was held, prior to tlie election of. to deal with a motion, of which notice had been given by Ah-. Lawn, to alter tho articles of association, so that the numlber of directors should be seven, instead of five, four to form a quorum, four and three to retire from olfiec each year alternately. Air. C. Muir seconded. The chairman said that the milliner of directors was formerly seven, hilt had bi en reduced at a special meeting prior io the printing of articles of association to live. Air. Cassie stated that tho directors were now paid 'is per meeting, and ii the number was increased it would mean an additional expense of £li per annum. The 'hairman favored a small directorate. as then each man tool: more ini e■•'■ -1 in l!'c work. '! he motion was lost. Et.K(TiH\- up DIRECTORS. Me-si-s. A. Clothier W, I!. Smith and C. Wells were ele led' to the d i I'l-C lora I e ui ; i,o111,-e, 1. :\||,--)■;. W. ( iaile, A. Cas. si-. 11. Ciiihclt. Mini- and 11. .hi! in ii .1.ciihi d nomination. Air. T. Mills was re clecti'd audih,r. at the same remuneration as proIt. was- resolved to pay file chairman ain i directors the same houoi ariiuu as during the previoii-, year-. An amendment by Mi', 1.-awii. that the directors be paid 10s, instead of ."is., per meeting, was 1o; 1. GEXERAL, 'the directors' and secretary were accorded a hearty vote of thanks. Appreciative reference was also made of the good work done by the manager and staff, who were also accorded a hearty vote of thanks. At a subsequent meeting, Mr. J. Burgess was re-ffl©eted chairman of directotf