ELTHAM DAIRY COMPANY.

Taranaki Daily News, 23 August 1915, Page 8

ELTHAM DAIRY COMPANY.

•, ANNUAL MEETING. The twenty-third annual meeting of the Eltham Dairy Company was held in the Town Hal), Eltham, on Saturday, when Mr. H. D. Forsyth, chairman of directors, presided over a good attendance. ' REPORT AND BALANCE SHEET. The report showed that during the year there were manufactured the following:—For butterma';!:;:■: Milk 2.290,5911b, butterfat 85,30011)," average test 3.72 per cent., cream 50.4331b, butterfat 22,314.10%, average test 39.54 per cent., butter 122.3561b—54 tons 12cwt. Iqr. 241b; for cheesemaking: Milk 38,031,0141b, butterfat 1,429,304.091b, average test 3.75 per cent., cheese 3,388 4471b—--1735 tons IRcwt. Iqr. 31b, cheese to lib butterfat 2.061b, milk to lib cheese !).76!h. During the season the average price paid for butterfat for cheesemaking was 13d, and the average price for butterfat for buttermaking was ll.lOd. The balance on hand make it possible for the directors to make a further payment of 5.81 d, which would bring the total average up to 18.50 d per lb for the season. It would be necessary to elect four directors in place of Messrs Campbell, Murray, and Linn, who retired in rotation, but were eligible for re-election, and Mr. MacVeau, who had resigned, and also to appoint an auditor. Mr. W. J. Tristram had signified his willingness to again act in that capacity. The balance-sheet showed that cheese sales had amounted to £120,935 12s Od, and butter sales to £6.027 Is Id, a total of £130,562 13s Od. Manufacturing, trade, export, and general expenses amounted to £15,455 2s Sd, depreciation £2OOO, advances to , suppliers £82,008, and there was still a balance of £30,682 19s lOd to be dealt with. The auditor, in his report, stated that, I in his opinion, sufficient depreciation had not been allowed. The stock had also been taken at a valuation fixed by the I directors. The books were very well | fcspt. j ]n moving the adoption of the report, I the chairman congratulated shareholders !on the satisfactory statement. During j the year 3,700 new shares had been taken up, for which £2894 5s 5d had been paid. Altogether, their various properties had been written up £323, owin<* to various additions to the plant, etc. "Shares to the value of £950 had been taken up in the Box Company, i Ebeon Compia,', ?wi other eouivui-.ns. Two thousand pounds depreciation had been written off, and £444 placed to the reserve account. They would therefore see that the financial position was sound. He pointed out that they had reduced their liability to the bank by £3OOO per year. He then reviewed the balancesheet in detail, and remarked that hank interest showed a decrease of £037 lis lOd. This was due to the fact that owing to the high prices there was gencrallv a surplus, which lowered the overdraft. Though £9OO less depreciation

I had been written off, he pointed out that this amount had been expended in repairs and renewals. He did not think that the prospects for the coming season wens nearly so bright There was almost a certainty that their produce would be held up at an earlier date than last season. In this connection provision had been made at Moturoa for the cool storage of an additional 10,000 crates, one month's supply. The directors would be wise to place extra shelves in the curing room. It may, perhaps, be a waste of money, but it was a wise precaution to be prepared. It was not reasonable to expect such high prices as lu'ul ruled in the past. If shipments were regular there was nothing to warrant low prices. On the other hand, if irregular" shipments forced large quantities on the London market at once tliey might receive reduced prices."* In any case, the directors would commence by paying out Jight, as was done last year, and if necessajy

make supplementary payments later on. It was owing to this precaution that they had a big surplus at the fall, and so were able to meet the monthly payments then without any trouble. No one had felt the lighter payment 3 during the season, because they were, at least, equal to those paid the previous season. He then referred to the likelihood of a scarcity of labor. Regarding the change from butter to cheese, about which there was so much discussion at the time, ho felt they had done the right thing. It had been a good season "for cheese, and suppliers had benefitted to such an extent iliat they could have paid for the cost of installing the cheese plants, and still be £BOOO or £9OOO to the good. He did not think that any man would be gaw. enough to say that they had not done right in going in for cheese at ilia time they did. The company had purchased a motor wagon, and he estimated that by doing so £4OO had been saved, ow'ng to the high cost of horse feed. Next year they would be able, to sen the benefit of the change. One wagon was not enough to cope with their output, but the directors thought it was advisable to go slow. Referring to the .luestion of disposal, he said that, with the uncertainty at the beginning of the season, the directors would have had to take a portion of the risk, so they felt It was better to take the whole risk, md get

all that was in it. Accordingly, they had forwarded on open consignment, and were able to pay 4d more than those v/ho had the misfortune to make what were considered at the time good sales. He would have been sorry to have had to stand up. that day and defend hhi action had they sold. Mr. Morris, in seconding the resolution, congratulated directors on the splendid results of the year. In reply to questions, the chairman said that the cost per lb of manufacturing cheese was not shown, owing to the difficulty of separating the butter and cheese since they had the new plant; the South Taranaki Bacon Company had paid 5 per cent, interest, and the Box Company 0 per cent.; the freezing works had paid no interest last year, but would do so this year. ' Mr. Cleaver considered that, as they had had a good year, they should allow more depreciation. The chairman pointed out that they were reducing their overdraft £3OOO per annum as promised. This was a big undertaking. The trouble was that they had not arranged for a large enough overdraft when they installed cheese

plants, and so the directors had to sign a joint and several for £SOOO. Two years ago they withdrew this, and left the onus on the shareholders. They had difficulty in paying out a bonus without a joint and several. They were now faced with the question of pasteurisers. He thought that £I2OO was a reasonable limit to have at the bank. It was better to work on overdraft than to have money lying idle at the bank. The chairman said that, in addition to the 2d already paid, there was still £IB,OOO to pay. * A supplier considered that it could not be called a bonus if the directors had to give a joint and several guarantee. The chairman said that they should have arranged for an overdraft of £27,000, instead of £24,000. The assets were worth three times their present limit of .€15,000. When installing cheese plants they had felt it was in the best interests of the company to erect good buildings and instal the best plant available, and they had thus exceeded (he estimates. They were not yet finished, as they must go on spending if they wished to be up-to-date, and pasteurisers must be installed. They had installed one at one branch, and the grade had improved in a way that spoke highly, having increased from 00.33 to 01.88, and being first on the list at Mofuroa. The grade had also improved at other branches, reflecting great credit on the manager and staff. There was room for consider able improvement yet, if they wished to capture the markets. It was, therefore, up to every supplier to do his utmost to improve the raw material, so as to give the manager every change. Pasteurising did not make much difference in the j price during a high season, hut when j prices were slack he was satisfied that it would. Mr. Robertson considered that pasteurisation would do as much for cheese ! as it had done for butter. If generally ! adopted, he was satisfied there would be I no difference between New Zealand and Canadian prices. I Some discussion ensued as to the effect of pasteurising on a quantity produced, a supplier remarking that they wanted ! quantity as well as quality. Air James pointjd out that Eltham, with a pasteuriser and a 3.75 test, made 2.001b of cheese to a lb of butterfat, and took 0.741b of milk to make a pound of cheese, whereas at Eotokare, without pasteurisation, tlie figures were 3.7 test, 2.741b of cheese, and 0.501b of milk to a pound of cheese. The figures for quantity favored non-pasteur-ising, though the test was higher. The chairman said that it was only fair to compare the conditions at tlic branch. Prior to installing the pasteuriser, with a 3.77 test, only 2.501b ol cheese were manufactured to a pound of | butterfat, and it took 10.021b of milk to I make a pound of cheese, so that conditions favored pasteurisation, j The report was, adopted.

ELECTION" OF DIRECTORS. There were seven nominations for the four vacancies on the directorate. Some discussion took place as to whether two separate elections should be held, but it was finally agreed that the lowest successful candidate should fill the balance of Mr. MeVcan's term. Messrs .T. T. Lindsay, E. Borridge, and J. L. Ropers were appointed scrutineers. The ballot resulted as follows:—K. J. Linn S2G, .1. Campbell 715, J. tire Murray 710, W. E. Carter 581 (elected), W. Pennington 434, S. Xorria 3!)3, and J. S. Riddle 222. Prior to the ballot suppliers raised objection to Mr. Riddcll standing, on the grounds that he was chairman of the Xormanby Dairy Factory, but it was held that he was eligible to stand. A hearty vole of thanks was accorded Mr. McYean. who was retiring from the directorate. The chairman referred in eulogistic terms to the good work done bv Mr. McVean. Mr. McYean returned thank?. Mr. W. J. Tristram was re-appointed audilor at the same remuneration.

THE DIRECTORATE. Mr. J, Walshe moved, in accordance with notice of motion, tliat the Articles of Association bo altered to provide for ten directors instead of nine, each branch to nominate and elect one director, and also to provide for the retirement of five directors annually. In support, he said that every branch should have its own director. Two years was long enough for any man to be elected for, if he was no good; if he was any good, he would undoubtedly bo re-elected. Mr. W. Cleaver seconded. The chairman considered that it was in the best interests of the company that the nine best men should be elected, irrespective, of, what branch thy belonged to. The main business of the directorate was to see to the handling and disposal of the output, and not to attend to any differences between the suppliers. That was a matter for the general manager. After further discussion, the resolution was lost by a big majority. On the motion of Messrs A. Campbell and Laurent, it was resolved that nominations for vacancies on the directorate must be received seven days prior to the annual meeting.

PURCHASE OF SHARES. Mr. J. F. Knight also moved, in accordance with notice, that the company buy back from shareholders leaving the district their shares at l!)s each. This lapsed for want of a seconder. TESTING. A supplier complained that his test during the dry spell had gone down three points, whereas- he considered it should have gone up. The chairman pointed out that when the milk went back owing to dry weather, the test usually went back. At the fall of an ordinary season the test rose as the milk supply diminished. There had not been sufficient enthusiasm evinced to make it worth while having a testing association. PURCHASE OF CREAM. The question of purchase of cream was discussed. > Several suppliers held that it was unfair to the cheese suppliers to pay for cream on the present basis. Maugamingi suppliers who were shareholders in the company previously, but whose supply was too small to warrant the erection of a branch factory, were allowed to supply cream on condition that they, with the cheese suppliers, doubled their share capital. They received Id per lb butterfat les9 than cheese suppliers, the skim milk being reckoned as a set-off. Cream was also received from other suppliers, who were allowed |d pev lb butterfat less than cheese suppliers, delivered at the station, The chairman 'stated that up to the present year there was not much difference between butter and cheese, and, as they wanted as much cream as possible to make the butter factory a payable concern, the directors decided to purchase cream, and had made the business proposition outlined. He admitted the cream suppliers had had the best of it, but it had been an abnormal season. Mr. James said that he was not satisfied with the position. One cream supplier had made a profit, he estimated, of £270 at the expense of the cheese men. Ho would like to see the butter factory kept going, but not at their expense. He thought the cream suppliers should receive what their butter brought, less cost of manufacture.

Mr. Murray said no one had any idea that cheese would reach 100s. They could be assured that the directors would rectify the matter, and not allow it to go on if there was any honorable way out of it, ' ' GENERAL. . A vote of sympathy was passed with the relatives of Mr. McDonald, a former manager at Hunter Road, who was killed at the Dardanelles. The chairman urged those present to do their best to ensure the return of tlio farmers' candidate, and thus assist the Patriotic Fund. It would be a standing disgrace to the farmers of the Eltham Company if they did not win the election. A supplier suggested that a small amount, recovered after being counted a bad debt, should be given to the Patriotic Fund. It was pointed out that this had been taken into the balance-sheet, and, moreover, that the company was still liable for its promised contribution of A per cent., equivalent to about £7OO, to the fund. A vote of thanks to the chairman terminated the meeting. CHAIRMAN OF DIRECTORS. At a subsequent meeting of directors, Mr. 11. D. Forsyth was re-elected chairman.