KAUPOKONUI DAIRY COMPANY

Taranaki Daily News, 5 September 1916, Page 4

KAUPOKONUI DAIRY COMPANY

■ANNUAL MEETING, Tin: nineteenth umiiuii meeting ol t(if Kaupokonui Dairy Company was held at the, factory, Kaupokonui, on Monday, when Mr. W. L. Powdrell, chairman of directors, presided over an attend tnce of over 100 shareholders. In moving the adoption of the report and balance-sheet, which has already been published, the chairman congratulated suppliers on the very successtu! season that they have had. The pay out 'iad amounted to 20.38 d pet pound butter-fat, a record that he did not think had been exceeded by any factory 'u Taranaki. Indeed, he only knew of out factory in the Dominion that had exceeded this, and that factory being close in one of the camps had supplied that camp with milk for the troop* during part >f the season. They had not in any way strained the position in order to show a good pay out, because they were, carrying forward £lOll. They also had a good average test. They had sold one-third of their cheese to the Government at 7.{d. whereas the other two-thirds had averaged !)Jc f.o.b. Patea. This year the company had erected dams at Kaupokonui and Otakcho, at a cost of £SOO or £OOO, and this amount had not been made a charge on the capital account. It had been argued that factories having many branches would not pay a 3 well as those under one roof. Yet Kaupokonui generally was in the forefront. This year they had beaten Riverdale, which was under one roof, by id, and as far as he could sec they would beat .Tolls by Id. It had been stated that some of the factories had shipments on the water and'would be able to make a further payment of the surplus received over the estimated value, but the same applied to Kaupokonui, which had three shipments yet to sell. These had been estimated at Sd, whereas at present over 9Jd was 011 offer. The share capital now stood at £34,700, an increase of £2054 from last year, but in addition 11.'IB shares had been purchased and resold by the directors, making a total increase of .ilfJO allotted on account of increased milk and new suppliers. The shares were selling well on the >pen market, the increased demand reflecting on the strong financial position of the company, as well as the fact that they paid 6 per cent, interest. The overdraft on the stove account stood at £14,087, showing an increase on last year, but this was due to the fact that all commodities had increased in price, and that they had financed suppliers. The factory account allowed a credit of £12,460, so that the total overdraft only stood at £23119. The company had on deposit £13,090 for which they paid 4J to 5 per cent., and which they lent out at profit. This showed the confidence that the public had in the concern. The company owed on mortgage £4500 011 properties that they had bought and sold, but they had £9358 owing to them on mortgage. The land, Jiuilding, lorries, etc., owned by the company had cost £50,873. Through constant writing off, the depreciation had amounted to £21,252. This, with the total store profits of £BB2O, and the reserve fund of £3752, made up of the profit of !)? per share on shares bought and sold oy the company, and also the accumulated profit jn the £3OO invested in the West Coast Refrigerating Company, made a total of £33,828 in ...e reserve fund In addition there was £I2OO, the cost of the watei Tace, which had been paid tor some years ago when erected. The amount owing on shares was £0057. There was, he said, no fear of the company being over-capitalised, because if they had the money they could lend it to suppliers at n reasonable rate of interest. Referring to the cost of requisites £514-1, he said that the cost of these had increased considerably und the company had had to purchase in large quantities. They had on hand a considerable amount of rennet, which, if purchased at piesent prices, vould mean Jd per lb 011 the output. Regarding the item of small amounts for advances to suppliers, he said that the company advanced small amounts to suppliers as temporary accommodation, without bill of sale, on goo.t security. They had received in interest £Bl7 more from their investments than they had paid to the bank. This interest had come largely from their reserves and proved that the company was the weathicst and in the best position of any in New Zealand. Their investments now totalled £11,452, wheuas when they started out they were not many hundreds In the Egmont Box Company they had shares valued at £4798, and in the West Coast Refrigerating Company £2Ssfl, all of which, save £3OO of the latter, had come from accrued profits. Kaupokonui had now taken a share in the Manaia Loan Company with the sole idea of reducing the rate of interest to their suppliers. Already the rate had been dropped from !) per cent, to 7 per cent., and lie hoped the company would each year acquire further shares until finally they would absorb the Manaia Loan Company, and would then be able to drop the interest to J per cent, above bank rate. The Patea Farmers' Freezing Company was the only concern in which the company had an inteiest that did not yield a return, tut he thought suppliers had received considerably more benefit in the increased competition for their cattle. The motor lorries, lie said, had proved a good investment Another item that contributed to the position of the company was the comparatively low cost of fuel due to the use of water power. Referring to the suggested amalgamation with neighbouring companies, he said that the Kaupokonui Company would be prepared to make sacrifices to effect an amalgamation if one werj to be arranged. This, he thought, would prove of great benefit to the respective companies and to the district as a whole. Considerable saving could be effected in the cost of manufacture if there was only one company, as only one board of directors, one manager, and 011 c secretary would be required. A voice; And one chairman. Tho chairman said that he would willing to retire as chairman if necessary. ' In addition to tin other savings there would be a considerable saving to the wear and tear of the roads. There was no use denying the fact, but there was a tendency to fight among neighbouring companies not that they had anything against the individuals, but because they wished to keep up their supply. What all were, aiming for was to get the farmci the highest priee 'or his produce. That, in fact, was 0 operation. If the two companies Interested could meet and |alk the matter over, he thought that it'might lo -i immense amount of good. He discoursed at length >n .lie proposed amalgamation of bacon companies stating that the company would shortly have close 011 £3OOO invested in the South Taranaki Bacon Company. A project was undsr discussion to form a company to be called the New Zealand Comoaav, by the «inalpamation.

of Uimock sim Co., with a capital of £90,000, South Taranaki £20,000, and Waikato £12,000. Inglcwood had been approached, but for the time being were standing out. It was proposed that the payment of interest on share capital should be limited to a minimum of (J per cent., and a maximum of 8 per cent.< but no interest over 0 pet cent, could bo paid unless the suppliers of pigs received lialf the surplus. Dimock wa|s to nominate four to the directorate, whilst South Taranaki elected three, and Waikato three. There was power in the Articles of Association to increase the directorate to fifteen, eleven of whom would represent the farmers. Competition was not wanted in a co-operative concern as it only added to the cost of manufacture. The 1 proposed amalgamation would considerably decrease expenses of manufacture, as only one re eeiver would be required in place of three, and one traveller. There would be considerable saving in cartage of pigs and railage of pigs. He considered, the scheme was the greatest project ever put before farmers. Reverting to the balance-sheet, ho showed that the Kaupokonui Company had improved it a financial position during the year by over £B2BB, and at present they lmd no overdraft. He outlined at some length the negotiations that had taken place with the Government over the purchase of the cheese< pointing out that the price agreed upon by cheese company representatives f.t Hawera, viz., 9Jd was ridiculed by the Government and by the South Island reprcsenentatives, who were prepared to accept BJd. That there was justification for the price asked was' shown by the fact that at present over 9jd could be obtained for ICaupokonui's output. After further conferences it was decided to accept 83d. The committee had been reduced to five, he being ihairman, and as the Home Government had delayed for three or four weeks in replying, and cheese had meanwhile risen, he wired Mr. Massey that owing to tint delay the offer was only open subject to being again confirmed by the fac tories. The Government then offered 8d for January, February, March, and April cheese, the four best months. If they had offered 104 d he would have said no. Last year cheese was 70s at this time, and the factory netted o|d f.o.b. Patea for < the season. This year cheese was at 102s to 104s. He estimated that by declining to accept the factories offer the Imperial Government had refused an offer of over £1,000,(*00. They could see if his words did not come true. Although at present the company could obtain over 9jd, it had decided to consign through the same agents as last year, to whom they must give every c>ed.i for the way in which the produce waa handled. 9Jd would enable them to pity out over Jd per lb butter-fat, so thai/ it would be seen that' never before had the prospects been so good. The suq.ly of milk also bad increased 11 per cent., and this year already he could see an additional 1000 acres of land that would be milked on. Last year they had made £5400 net fot their whey butter. The labor promised to be a difficult problem and the directors had decided to put up a number of workmen's dwellings for the accommodation of their men, also to make extensions to the store, so that boot and saddlery departments could be added. In conclusion, he said,that the cows should have come in in good condition, as they had had a good winter. Good prices were assured, and it now rested, with themselves, to make the season succesful. If they provided summer and autumn feed for their cows there should be no question but that the season would be the most successful in the history of Kaupokonui. (Applause). Mr. I!. Dunn, in seconding, recommended the directors to consider the employees as far as possible. The farmers were having good times and there was no reason whj the "ten should not also.

Mr. B'mton (Aui 1) asked what shipping space was ai .lable. High prices were 110 use if '.hey could not get tha produce away. The chairman said that it was unfortunate that the first boat of the season, the Tongarlro, should have been wrecked. He was assured by the Board of Trade and the shipping people that conditions would be better this year. There was a limit that he was prepared to pay the Government for regularity of shipment, but he was prepared to take tho risk of the delay in one or two boats than lose a million pounds. He did not think that there would be mufll delay. He understood that the Board of Trade had taken Canadian c-heese to feed the troops, If so, New Zealand chceat would -be required for the populace. The report was adopted. ELECTION OF DIRECTORS. For the three vacancies on the directorate there were five nominations, v2,, F. Morris, W. T. Wells, J. N. Gainful (retiring directors), K. Burke, .1, lmlay. Messrs. W, J, McDonald and S. McKcnzie were Appointed scrutineers. Each of the candidates briefly addressed the meeting. The election resulted Messrs. F. Moore 402, W. T. Wells 343, E. Burke 299 (elected); .T N. Gamiin. 240, ,1. Imlay 129. Each Briefly returned thanks. Mi. H. A. Lcnnon was re-elected audi* tor, at the same fee as last year. A vote of thank? was accorded to Mi. ,1. N. Gamlin, who had been a dirertor of tha company for many years, the directors and chairman stating that ne wos a very progressive man, always ready to assist the company with his monev and advice. GENERAL. Mr. Campbell suggested that ths directors should send a grass seed expert to the Peninsula or to Poverty Bay before tho harvest to secure cocksfoot. The directors will consider the matter. Desultory discussion took place at some length ovev store mattefs. The chairman stated that the Articles or Association were being amended so as to permit of tho store profits being allocated among shareholders ia the form of shares. This, he thought, should be done as soon ag the accumulated profits and insurance balanced the stock. It was resolved to pay the directors £1 per meeting instead of 16s. Th 3 chairman's honorarium was foed as £l5O for the ensuing year, and he was also voted a bonus of £25. Mr. Dunn, in moving the latter resolution, spoke in high terms of the work done by the chairman, who was quoted throughout New Zealand as an authority. Tho chairman and directors returned thanks for tho expression of appreciation of their efforts. Votes of thanks were accorded the management and the ladies who had dispensed the luncheon, which was appreciated by suppliers. CHAIRMAN OF DIRECTORS. At a subsequent meeting of director, Mr. W. 1). Powdrell was re-elected chairman.