MANGOREI DAIRY COMPANY.

Taranaki Daily News, 6 August 1915, Page 6

MANGOREI DAIRY COMPANY.

i ANNUAL MEETING. '^ I The twentieth animal meeting of the Mangorei Dairy Company was held in Hie Egmont Village Hall yesterday, wien Mr. A. Morton, chairman of directors, presided over an attendance of about ninety shareholders, In moving the adoption of the report, t« chairman drew attention to the fact that Uh-" company had comuleted 'its twemioth year. If some of the old original shareholders who were, present at the meeting could east their mind-: hacx to the <W : t year and compare the supply received at the various skimming stations with that of the past few years i hey could not help being astonished at J the remarkable progress that had been jmade in a comparatively scattered and | new district. Though the district had i continued to progress and advance, until the past year had lieen a record, he considered that there was room for still further advancement. 'During tho past two or three years some of the share, holders had considerably increased their supply by working on more up-to-date lines, and he urged on all of them to endeavor to improve their herds, and by every method possible produce more. The output from tho factory could not increase unless bv individual effort. In these days of high-priced land and high returns for dairy produce it should certainly pay to improco the farms by manure, etc., as any expenditure should return profit in greater proportion to the outlay. When they met for their annual meeting last year, he nohiWl out that the v- v: j.,,,1 j„ st I)| . okeil ou{> and _ li'.fiiifih no one had any knowledge of how long it would last, all. hoped that it would have been over by"~the present annua I meeting, but after twelve months j the struggle still went on, keener and | greater than ever. We had taken our j share, of the Empire's burden in a right I and proper spirit, and were prepared to i continue until tho war was pushed to a proper conclusion. We had felt the effect to some extent, although in New Zealand we had enjoyed greater prosperity than had any 'other part of*, the British Empire, Wo were essentially a producing country, and as the Home country required what wo produced returns naturally were high, and we prospered cxeedingly. In certain wavs w! were undoubtedly considerably affected. At the beginning of the season there were fears that the produce could not, he got away, and that if it could be got away it would rot reach the market, also there was uncertainty regarding the finance, so that, taken altogether, the prospects were not hopeful. However, they had emerged triumphant over all obstacles, stronger than ever. He referred at length to the difficulties in connection with shipment, expressing his appreciation of the manner in which the shipping companies and the Oownniciit had assisted in overcoming the dilficulty. As a result of the outlook at the opening of the season buyers did not offer prices commensurate with dairy factory directors' ideas of value, and nearly all the North Island factories and some of '■ Hie South Island factories forwarded an \ open consignment, taking the chance of the market, thereby reaping the benefit ' of high prices, which enabled nearly every factory to pay out record returns. The dominion, he said, had never ex- ' perienced such a peculiar season as was Ihe case last year. Some parts were affected by drought, even in South Taranaki it was the worst season for grass that had ever been experienced. On the other hand, in Norlh Tnranaki they had never had a better season for pasture. This, of course, made the output of the Jvorlh Taranaki factories increase, but reduced the output of cheese and butter * in the dominion as a whole. Mangorei \ had had a record output, and the share- ' holders therefore benefited. There had been considerable demands on their pockets, as those in a position to do so had assisted the Empire by sending those ; they could spare to the front. Others ' who could not do this had done their best by generously supporting the patri- j otic funds. They would have heavier calls yet to relieve tho stress and misery caused by the war. The Mangorei Company had decided to give J,i per cent. of the output towards the fund while the war lasted. This had realised £1(10, ' which had been apportioned as follows: ' £lOll to the Wounded Soldiers' Fund; CM) to the Belgian Fund, and £3O to , the Servian Fund.

There had been a great deal of talk as to the relative merits of butter and cheese, and various factories in Taranaki and elsewhere had changed or were preparing to change to cheese. They had doubtless acted to the best of their judgment, believing that cheese was better than butter. Certainly at the time the outlook for cheese was very rosy, as there was every prospect that it would maintain its high price throughout the war. Certainly butter was high 100. Within two months a change had occurred, and butter was now bringing on [he English market just twice as much as cheese. From advices received by their Home agents, he would say without hesitation that the prospects for buttw had never been exceeded, and that they were in for a season for butter such as I hey had never experienced before as far as price was concerned. Fortunatciy, he added, Mangorei shareholders had never raised the question of cheese seriously—and wisely so, where the supply was so scattered. At the end of the season he confidently anticipated that the company would show the best retura it had ever had.

Referring to the balance-sheet, lie sail that on the whole the expense"! were slightly lower than the previous year, ilue to the increased output. The amount paid to tin* hank for interest was oiilv £'•>! 4s, the lowest it had ever been. At' Ihe same time they had revived .C-lo ISs Id in interest for the Box Company. There w.is no dividend from the Freezing Works, owing to the strike. The directors had written oil' the usual [imount for depreeialion, and confidently believed that the value of the plant and buildings was in excess of that shown on the balance-sheet. Including factories and residences they had seventeen or eighteen buildings, which were shown in the balance-sheet at £1770, though insured for 50 per cent. more. The company also held 102.-> shares in the Box Company, which held bush in the King Country sullicient to supply the needs of the North Island dairy companies for many years. It might be necessary to provide fresh capital to work this bush, but it world be a trenmedous asset, as .time went on. I'or the first time in its history, he pointed out, the Mangorei Company showed a credit balance at the bank. In conclusion, he congratulated shareholders on the satisfactory results of (he year's working, and confidently hoped for even better results next year. Mr. Geo. Marsh seconded the motion, and the balance-sheet was adopted without discussion. KT.ECTTOX OF PTKTXTORS.

For the election of two directors in place of Messrs Geo. Marsh and J. Tt. Rowlands, there were four nominations. A'-asrs Moore and Garcia were appointed

scrutineers. The election resulted: ilesbi's Geo. Marsh 122, J. |{. Rowlands 112, A. Bailey 7-1, and A. B. Laird 72. The first two were declared elected, Ml'. J. C. Davies was re-elected auditor at tho same remuneration as hist year, viz., £l2 12s. INTEREST AND SHARE CAPITAL. A special meeting was held to consider notice of motion given by Mr. W. Chatterton; "That article 11 of the company's articles of association be struck out, and the following new article substituted therefor.— 11. The net profits, after providing for payment of all expenses ai.'. bucli depreciation as the directors may fix upon, shall he divided amongst all suppliers of butterfat to the company (such suppliers being also shareholders) in proportion to the amount of butterfat actually supplied by them to tho company." 'And also a further notice of motion: ''That the article made on the 22nd day of October, providing that the company shall pay £1 for each share that may be purchased from any shareholder, he struck out." •

In the absence of Mr. Chatterton, Mr R. James proposed the first resolution, which was seconded by Mr. A. Bailey. The chairman stated that the effect of the proposal would be to abolish the payment of interest on shares and distribute the amount, at present £319 15s 7d, as a bonus among butterfat suppliers! When the articles of association were drafted, they provided for the payment of five per cent, interest on share capital before the bonus was paid. In reply to Mr. Gopperth, the chairman sf.'.d that the value of the shares would depreciate if interest was not paid. Mr. M. J. Marsh considered that this was only aimed at dry shareholders. It would inflict a great injustice on "the old shareholders, who had built up the company and had already been penalised by tho heavy depreciation that was written off the plant in the early history of the company. In reply to a question, the chairman said that the interest on the dry capital was '£33 14a, The chairman said that the second resolution was brought forward by himself, so that in the event of the company deciding not to pay interest on share capital, a resolution could be passed that the company could purchase the shares at a price to be agreed upon between the company and shareholders. At the present time the article provided that the company should pay £1 per share, which was more than the market prieo. Mr. King thought that it would be advisable to deal with the second resolution first, A uniform price should be fixed.

Mr. Chard thought it unfair to do away with payment of interest. If so, new shareholders would come in on the same basis as the old.' He thought that it would be better for the company to buy up the dry shares and reissue as required.

Mr. Rowlands thought payment of interest should be abolished. Other com-panies-were doing away with it. When the company was started it was understood that every shareholder would be a supplier and vice versa. If dry shareholders were paid interest, the time might arrive when they would hold more shares than suppliers, and it would become an investing concern, not a cooperative, concern. The butterfat producer needed encouragement. Messrs Hall and Vowlers thought that the directors should buy up the shares if interest was not paid, as they would then be valueless to the shareholder. Mr. Bailey thought that the meeting should fix a price for the purchase of shares. It was butterfat that kept the factory going. Mr. I?". 11. White pointed out that some of the dry shareholders paid a premium of 5s on their shares, and in a prosperous year should be worth more, If they had the use of capital they should be prepared to pay interest. Mr. Gopperth favored buying from the genuine farmer who disposed of his farm, and not from the speculator. Mr. Rowlands pointed out that the pioneer must not lose sight of the fact that the factory or creamery had increased tfie value of his land to the extent of £;i or £0 per acre. In the course of discussion, it was stated that the company might be asked to purchase too many shares if it decided to buy them, and thus become financially embarrassed.

The chairman said that the company had power to buy-up one-liftli of it's' share capital issue at an amount to be agreed upon with the, shareholder. The object of his resolution was to give the directors a free hand under the Act. If the payment of interest was abolished, then they should decide what price they would purchase the shams at. The company could easily purchase the shares without affecting its finance in any way. After discussion, it was decided to deal with the purchase of shares first. It was ruled that dry shareholders had no vote, which some members considered unfair. This resolution was passed unanimously. The first notice of motion to the effect that interest be not paid was then carried by 40 votes to !). A resolution that the company may purchase shares at a uniform price of 15s was carried by 30 to 24, an amendment that the amount be 12s tid being lost. COST OF LIVINfJ. Mr. Hall asked if the directors had considered the question of paying the staff extra on account of the increase in the cost of living during the past twelve months. Shareholders all knew that the cost of living had risen, but they li'i'l also had the benefit of increased prices, and should consider (lie employees, The chairman stated that the directors had considered the matter when fixing salaries for the ensuing year, lie pointed out that the balance-sheet had already been adopted, and if they pail a bonus now on last year's work it would have, to come out of next year's balance-sheet.