T. L. JOLL DAIRY CO., LTD.

Taranaki Daily News, 28 August 1915, Page 6

T. L. JOLL DAIRY CO., LTD.

ANNUAL MEETING. The. seventh asuiual meeting of shareholders was held in the Kapuni Hall on Wednesday. Ifr. J. B. Murdock, chairman of directors, presided over an attendance of about ninety. The annual report stated that after writing off the Bum of £I2OO 5s lOd for all-round depredation there remains a balance to the credit of the appropriation account amounting to £20,428 14s 4d. Prom tWs the directors recommended that a further payment of 2|d per lb. be made to suppliers pro rata on all butter-fat supplied throughout the year, and also that a dividend at the rate of 8 per cent per annum be paid to shareholders on all fully paid up shares. These payments would absorb the sum of £20,000 Is id, leaving a balance of £4lB 13s, which It was proposed to carry forward to the credit of next year's account.

Statistics for the season were as follows: Milk received, 46,115,9791b; but-ter-fat, 1,093,0681b; average test, 3.07 per cent; cheese manufactured, 4,117,S24lb (ISGS tona &swt); butter manufactured, 113,7301b (50 tons 15cwt 2qr); yield of cheese per lb of fat, 2.061b; milk to lib of cheese, 10.271b; milk to lib of butter, 22.211b; overrun (butter), 15.52 percent; a virago pay-oat for season per lb of butter-fat, 18.75 d; average pay-out for season per lb of butter-fat (including interest) 18.84 d. The balance-sheet showed that cheese to the value of £147,543 17s 5d and butter to the value of £12,074 12s had been manufactured. Manufacturing charges had amounted to £12,310 5s sd;.trade charges, £4lO Cs 6d; export charges, £b1,388 15s lid; and general charges, £1734 9s Id (including repairs and'renewals £1490 5s 2d). Buildings •,vcrc valued at £BOIB 16s, leas depreoiatidn £430 10s, and plant £7254 15s lOd, less depreciation £O4O 15s lOd. In moving the adoption of the regort and balance-sheet tlie chairman said that the directors congratulated the company on the excellent results of last season's operations. Unfortunately the results wcro occasioned by a calamitous war, and never before in the history of the dairying industry had audi prices been realised. They varied from 74s to 100s (for one shipment), which was approaching the price they used to receive years ago for their butter, but he did not for one moment anticipate that such prices would continue for the coming season. At the beginning of last year the directors decided, in consequence of the war, to consign their output. They considered that if they sold the merchants purchasing might become embarrassed, and in that eventuality the company would have had to assume the responsibility again, so they decided they might as well take the whole liability at the commencement and receive what was in it. That policy proved to be the best. No doubt they had seen in the press that some companies who sold their outputs paid out only Is 4d per lb for butter-fatj Jdlls' was paying out Is 6fd. Unfortunately during the year the dry season experienced in South Taranaki especially had materially reduced the output—that was so far as the original suppliers were concerned. Their actual output, however, was larger than the previous season, and this was accounted for by the increase in the number of (heir suppliers. Jfc appeared to him that Tavanaki was going through a period of dry seasons, and that it was imperative that shareholders or dairymen should «o in for growing soft foods, root crops, etc., to help their stock through the summer. In some places this had been tried with very good results. The output of the company was practically 1900 tons—l Bos tons of cheese and 50 tons of butter—and this quantity should be increased this year if they had a fair season. A number of new suppliers were coming to them this season, which would bring the toUl number in excess of last year. At present they had 198 shareholders as against 188 when they took over from the T, L. Joll estate, and this indicated that the company was working on a sound basis. During the year the company had to face difficulties in regard to the shipment of their produce, and the intermittent shipping sometimes occasioned the directors some looking around to sec where they were going to get the money from to make the monthly payments to suppliers. The firm the company was dealing with— Messrs I.ovell and Christmas—had no hesitation in advancing whatever money was required, for a week or month as the case may be, and charged no interest. (Applause). During the past year they were unfortunate in having one of their factories destroyed by fire, and they would notice from their balance-sheet that £230 had been written off as a fire loss. This represented the difference between the amount of insurance money received and the valuation of the premises. The directors decided to re-build in concrete, and, although on expensive building costing £1'922, it would last for all time, and would cost very little in maintenance, and the insurance premiums would le 50 per cent. less. The amount due to Mrs. .101 l was now £3319 lfls 2d, and it was estimated that the deduction, on butter-fat basis in regard to share capital, would reduce this indebtedness by approximately £IOOO a year. The buildings and plant, after deducting depreciation, showed a little less than when the company took over. TJie valuation in the stock account showed cheese £11,160 9s lOd; the prci vious year it was only about £25. When the balance-sheet was made up this cheese was valued at a price which was lower than the lowest price secured for any shipment during the year, and he believed this valuation would be well within the mark. If it realised more than it was valued at, the company would receive the benefit during the present season. The whole of that cheese was now on the water on its way to the English markets. In regard to repairs and renewals, £1490, he might explain that the directors considered that when new machinery was put in to replace old machinery it should be charged to repairs and renewals account rather than to capital account. This practice kept the plant aconnt on a sound basis right through, and kept it in first-class order. In regard to this year's output the directors had decided to place it in the same firm's hands which had accorded them such fair treatm 'tit last year, and on the same terms. They probably would not receive such high prices as last year, but he believed they could count on between 70s and SOs right through. At the present time the rinrkrt was a little lower than it was at the beginning of last season, caused to some extent by the tremendous lot of American cheese put on the London market--far more than ever before, and a lot of it was of poor quality, which no doubt brought down the price of the good quality article. Dairy companies would have to find a large sum for extra shipping freights. The rates had been Increased practically 50 per cent, but he did not agree with the iarge increase on produce, and especially on cheese, Representa-

tions had been made to Ihu hhippiw!? ; companies, and there may bo a /ebiit,; iof Hfld. If they had to pay mi ~viva.-.; at 60 per cent, in their freight;' it would mean an additional cost to tin' -Ml'* Company of £4OOO, there w.,uU ha jugt that much less to )tAy out <■• .nippliers. The shipping companies ;,« canless in their packing, and in uwnv itj>( there is as nvuoh as four inches of va'.'Aii'i space, which is an absolute wast.'. Th-s rates of marine insurance had iiuri-l from HS4d per cent, to IIKM p<r j-.t, and there was absolutely no oUiiW'' of getting the rate back in the nw'ntiMis. Dairy companies were going to b;> f-.ice.A with a difficulty in regard to and they might have noticed the number of boats which would be leaving tf«w Zealand during the next three or four weeks. These would all arrive in l_.ondi>n about the nine time, and get busk «nmwhere about the same time, and during . October and on till the middle of November there wias a possibility oi tiusre ; being no boats available for tluir pro-, duce. A blockage such as this at th,; ct.l of a season was going to un:t:c it. difficult to finance the company's atVaira. H was not so bad at the end of a si..uo:i. because the surplus they had in hjnd . helped their pay-outs to suppliere. With this position ahead suppliers would ;Uite understand that the directors may h»vo at any time to reduce the pay-outs, because if iliey cannot get the prodfice away they cannot get their advance; pd consequently could not pay out. ... Efforts were being "made to induce the ahipp/nj companies to seeuro other boats net it. present on the New Zealand run. and if that eventuated the position might rbo materially improved. The director" lad decided to ins'.al a pasteurising pLint during the coming season, and if i'. r^ved beneficial others would be it the other factories later on. It wis claimed that pasteurising removed I ..tots from tho milk, and therefore a mere uniform class of cheese could be nr.ie. Pasteurisers had been installed in other factories, and had given great arti-fac-tion. The directors had also decide: 1 <■ purchase a motor lorry at accost of *t,uut £9OO. They were convinced that it would . re«"lt in cheaper and more rapid carriage or their cheese, and in the summer time especially it was distinctly disadvantageous tn have the cheese too long on tho open waggons. In reply to questions the Ch/ii'man said that the cheese In stock had been valued ct 6Jd. There was £7OO insurance on the plant in the n'ew Tempsky road factory and £SOO on. the .building So far as the machinery was concerned it might be damaged by firfo but tho building could not be damaged to); any material extent. This year tho. average test was .04 higher than last. He knew that tho testing was a sore point >ith many suppliers, but he was quitcvsatisfied that the testing was tlioroijjglily and reliably done and that the «upplier was paid for everything In the milk. He believed that one thing which accounted for their, comparatively low average test was that there were no highclass pedigree herds supplying Joll'a, such as theer were supplying surrounding companies. The last two or three year*, had been dry, and the conditions wero not conductive to the best results in milk. Other comDanies had kept to their average because of their high-class herds { Joll's had gone back because they had no specially good hards. Mr. Walsh seconded the. Chairman's motion for the adoption of the report and balance-sheet, which was then pu| and carried. HERD TESTING. Mr. Clark, Auroa, moved that it be an instruction to the directors to form ! a Cow-testing Association to be properly conducted by a Government official. In doing so he mentioned that he had " tested on his own account, and his experiences were such as to thoroughly convince him of the advisability of regular and thorough testing. The result of his own testing was that in a small herd of 30 rows his returns had improved by over £SO. Mr. Buxton seconded the motion, but would not like to see it a charge on the company, because he did not see why a man should pay for the benefits being derived by another man. If the directors gave it their support he thought there would be stlfficient in the company to make herd testing practicable.' He had discovered in his own case that his best cow gave 4951bs of butter-fat, and his worst loOlbs. The chairman said that if the company took the matter up it must be a company charge in the first place it order to, guarantee the salary of the Government official, but those who went in for testing should he charged so much for each cow to r(coup the company, so that those who were not testing would not be called upon to pay for thoss v>ho were. The Chairman strongly reeoitim . 1 t herd-testing, but poiuted out. Mm* if as a result, aay 200 cows were -** -1 out as absolute duff irs, some ■ ' should be adopted to prevent th, bility of these being passed u„ t unsuspecting buyer He ir.i'l ■ i that such an association might imp ■■•■■.♦ the general factory wveiw«.' ' cow, and it might also a**i,t >i. .> pany by securing a better aver..., , ity of milk, and the better th iv--. U less the cost of manufacture- S; ..,'■•,.< generally discussed the pros „;..! <;,n, ~f the suggestion fairly freely, kili whil-t there was a fairly strong fn mm in fa>our, some voiced difficulties i.iiieh would arise in cojsequenco of l.ilwr tronM.'i preventing them taking advantage, i,f \i and the short-lease. Finally uv:>ti;>n that the company adept \im<\ thsiint; and that the cost if same be n a* uei\»! charge on the compaiy, was carried.

BACON CO. The chairman rend n ciienhir Mt.»r from the Taranaki Bacon Co. suppcsting that the .Toll Company take up more shares as the Bacon Co. wished to enlarge- its scope of opcrutiond in tin l d:rccion of killing; cattle as well as in order to utilise its plant mid employees to the br.it advantage The li.lul ontra shares which the Joll Co. vai askid. to tako up was (KiO, -m Several suppliers objected '.i do so. The question was referred (o Ihe directors, to take what action they, conquered most advisable. ELECTION OF !>TRF.CTOriS. The three retiring directors, Mcssr* F.Lyo, J. W. Patersou, and T. Walsh, offered themselves for re-election, In addition Messrs T. Shearer and T. O'Dowd were also nomiiinted. A poll resulted as follows: -T. Shearer. 30.1 votes; F, LyC ?3fl; T. Walsh, 20S; .1. W. Patcrson, 177; and T. O'TWd IIH. The fir9t three were declared duly i-leilod, GRADING MILK. ' The chairman said that Die <|noa!mn of grading milk was held over from hu.t meeting, and it was now for the meeting to say whether they would eontimw as at present or not. Personally he did not think - there was anything to be irained by grading It in first, second or third class. If milk rtoelvnd nt ilia stages was not fit for cheese-making, it should be returned, but if it was accepted, .-thera should be only one price for it. £liimholders did not desire to discuas tl.« matter, and consequently no alteration was made.—Still, •