BELL BLOCK DAIRY COMPANY.

Taranaki Daily News, 19 August 1915, Page 8

BELL BLOCK DAIRY COMPANY.

ANN UAL MEETING. The nineteenth annual meeting of the shareholders of the Bell Block Dairy Company was held in the Bell Block Hall yesterday afternoon, when Mr. J. Connett, chairman of directors, presided over a good attendance, REPORT AND BALANCE-SHEET. The report congratulated shareholders 011 a record output and a record price for butterfat. After writing off £363 13s lid for depreciation, the profit and loss account showed a credit balance of £-1637 14s JOd, which the directors recommended be dealt with as follows: The paymeut of the usual dividend of C per cent, on all capital paid to June 30, 1914, would absorb £153 13s 9d, and a further payment to suppliers of 2Jd per lb o[ butterfat, amounting to "£4435. 4a 3d, leaving a balauce, of £4B lCs 5d to be carried forward or otherwise dealt with. Suppliers would then have received £24,824 13s, equal to an average payment of 14d per lb of butterfat. Acting on the resolutions passed by the shareholders in special meeting, the directors had had clieeso factories erected at Bell Block and Hillsborough, and would be <eadv to commence cheese-making by October 1. It would be necessary to elect two directors in place of Messrs Rundle and Pitt, who retired by rotation, and were eligible for re-election, and also an auditor. Mr. Rice again offered his services.

Quantities and averages compared with last season 10 months in parentheses:—Number of suppliers 75 {721, milk received 9,260,8461b (9.347,9721b), cream received 131,7811b (28,8001b), average test 4.17 (4.14), butter made 505,510 lb (469,2501b), butterfat 425,7011b (398,3101b), over-rnn 18.72 (17.81), average paid to suppliers 14d (12.53d1, cost of manufacture and putting f.ob. 1.25il (1.22 d).

In moving the adoption of the annual report, the chairman referred to the working experiences of the past and prospects for the future. When the war broke out at the beginning of last season the directors realised the difficulties of the position, because they felt that the commandeering of ships by the Government for transport purposes could do no other than make it difficult to got their produce away. The fact that enemy cruisers were at large made the position very grave. Insurance jumped up at once, and prospects for the season were very gloomy. Buyers we|e very pessimistic indeed, and would not risk buying at any price. The question as to obtaining the wherewithal for the monthly cheque.? was serious, because, .is they knew whether the company had sol/1 or consigned, the produce had to be placed aboard a Home liner before payment or an advance could be obtained. No boats, of course, meant no available cash. To meet the crisis they had approached their bankers and arranged for an advance against store warrants, to satisfy oeompany requirements on a limited scale. This, however, proved un-ni-ees.-ary, as the Premier had used liis iv.il'.">nce on their hehalf in obtaining additional boats, ard the shipping comhad done their best to maintain a reasonable service, and had not iucre.'iied the freights. The Navv, too,

had swept the seal clesr of every enemy c-raf;» and so thry h-.d got their produce away c\::pt'icr.i!!y all. J.atr.' i i the owing to subnormal quantity of nwot i-iVilng, due to the high

i pi i ..lir.g .'c iT.-me and accentuated by ihe d.•>•>«?!:J tlitions in parts «-.f New 2»a':t,r.il. fViI- : -/irr didiciilti's : again (•xperiev.y.v;: ' I'i ;j local r-v«-..v..-w«rS;3 were Jt-wl to their utjnwt. biitfc-r ;.ml sometimes chrri" was held up, but r.n IJio whole the latt.'ifared worse, as a cnnsidfiraUe. qvantitx ■ was held in store when prices *•.:"« r.;, : the decline. Fortunately the work" »v, i; . j row ikstred up i>::d free to co>i»;icr.: .• the r.ew season. Fortunately, o,'.''i:;r ' ■ j tli«s buyers n*t «Mtng' f«r>vstj, tli ■ i iiiivc-tors had from their usattl ' policy of selling ih r ir output. Thl.-, had ! prowl fortunate, as high prlcrs had I ruled for dairy produce, and ehf-vo esI peci:i(lie latter paying in some cases ias mi;.-h as Is 7d in suppliers. Tlie.ie I higli prices were to the s-horb.T'j of 'fviippiif- from I'll:'-', sources, red i,i the ' of cheese on account of that lining : adopted as an army ration. The dire::j (ors had adopted a cautious policy in i regard to the pay-out, commencing ™ith • 10(1, then, as prospects improved, 1 Id,and j towards the end of the season Is 3d. The I high price ruling for chccse and th? j shortage of butter in Australia caused ! high prices to rule, for butter in the j dominion this winter. In October last he stated that Mr. Fulton, of the Dairy r)ep::rnnent, visited and inspected all the suppliers' yards, sheds, machines, etc. He was well received in all directions, the suppliers appreciating the visit and expressing their willingness to adopt any suggestions made. Reports received from Nathan and Co.. who had handled their butter, referred to the high standard of excellence maintained throughout the season. This was supplemented by a report received from Mr. Ellison, the National Dairy Association's agent at Home.. The new well that the company had put down had proved a partial failure, for, while the supply proved ample, the quality was inferior, and filtration was necessary. Owing to the high prices ruling at Home, local trade, which had been such a big factor in previous years had not proved of so much consequence. The matter of the greatest moment to the company had been the question of cheese. On the instruction of two-thirds of the shareholders, tenders had been accepted for the necessary buildings at Bell Block and Hillsborough at a cost of £IOSO. The plant necessary would bring the total liability on account of cheese to £2.5000. It would take l|d on the average output to liquidate that amount. The bank guarantee and mine-, tion order had been signed by nearly

all the suppliers, and nil would siijn before cheese making was started. New amuiiiemeiit.s bad been made for parting. to tho balance-sheet, lie stated that the factory maintained its prosperous position, The number of suppliers had increased by three. The output, 100, showed a very satisfactory increase. despite the fact that there had been a drv season even for Taranaki, which was one of the most fortunate (lis-

tricts in New Zealand in this respect. The test showed a gradual improvement, showing that even the few cows that were being tested were iiaving lUioir effect. If they would only adopt the suggestion to be put forth by Mr. Fulton re cow testing, lie- felt assured they would prove its value. He also emphasised the fact that, despite the increased test, the over-run had also increased 1 per cent., which was exceedingly satisfactory, as it meant an additional £2BO to the suppliers, the pay-out had been the highest in the history of the company. He traversed the balance-sheet, pointing out that more liberal depreciation had been allowed than previously; and, with the extra share capital, reduced the bank liability from £2OOO to £1323. Their shares in the Moturoa Freezing Works were fully paid up. No interest had been paid in these shares last year, but there would be this year, as the freezing charges had been slightly increased. The company also held 620 shares in the Egm.ont Box Company. These now stood at par, as the premium had been written off. As the Box Company required fresh capital to open up a new tract of bush of 30,000 acres, the Bell Block Company would, have to increase its holding to probably 1000s share Though at present they were not getting so much benefit from the Box Company as cheese crates could be purchased elsewhere as cheaply it would be a great asset in the future.

Reverting to the prospects for the coming season, lie said that they would have to face and increase in freights of (id per box in butter and Jd per lb cheese. There was some prospect that it might only be }d, but of this there was no assurance. They v.ere told that the ."hipping facilities likely to be even mots vs'itkh-stery than was the case last rsfcson,- and th» Premier had advised thi of freezing works. IV'S ■'.•i.'ce hid bean general throughout the <!prslnioi». At Moturoa additions had W..i made to yrc-. : de for 10,000 or 12.900 .-ruts*. Fee his own part, he iicoea u• ~ I th': set up to act

conjunction with the National Dairy /sso,--h£in would ho able to arrange a. ,'hipping service at least equal to last yc.Jr. It ws.s, he considered, only reasons' W« to suppose that the first year of the war would prove the worst in this respect, More satisfactory arrangements re boats should be possible now than on the spur of the moment. Ho thought that price? for both butter and cheese vouid rule high. lie did not know when they would change from butter to cheese. This would rest with the directors, who voud decide when the market warranted a change. If cheese was again adopted as an army ration it would advance above the present, level. The factory had graded high, grading,sixth at Moturoa, with an average of 93.75, the highest grade being 94. Mr. Ceo. Putt seconded.

Mr. K. firiffit.lis congratulated the chairman on the vorv tino manner ; n which bo had placed the position before tlu; suppliers. Thero were certain assets that could be, and were, shown on' the balance-sheet, but in the chairman they had an asset that he did not think they were able to fnllv appreciate, ife was, indeed,'a valuable asset. The position was indeed very satisfactory, and he very favorably commented on the fact that the test, which was probably as high as? any other factory, had increased, as had also the over-run. Jt was, he added, very easy to increase the over-run at the expense of the test, but this was not the ease in their factory. He urged upon them tlietijiecd of intensive farming. If each year they turned under some green feed to feed the ground itself their turnover would greatly increase. The report and balance-sheet were adopted without discussion. ELECTION OF DIRECTORS. Messrs S. Rundle and G. Pitt were unanimously re-elected to the directorate unopposed. Both returned thanks, the former stating that lie had been on the directorate for nineteen consecutive years. Mr. J. Rice was re-appointed auditor at the same remuneration as previously. GENERAL. On the motion of Messrs Stanley and J. R. Hill, a hearty vote of thanks was accorded the directors fqr their services during the past year. They were also voted the usual honorarium. A hearty vote of thanks was accorded the secretary (Mr. Pepperell), the manager (Mr. Koller), and the staff. CHAIRMAN. At a subsequent meeting of directors Mr. J. Connett was re-elected chairman.