CAPE EGMONT DAIRY CO.

Taranaki Daily News, 30 October 1916, Page 3

CAPE EGMONT DAIRY CO.

ANNUAL MEETING. Tlie nineteenth annual meeting of shareholders of the Cape Egmont Dairy Company was held in the Public Hall, Pungarehu, on Saturday afternoon, when, despite the very ine'ement weather, there was a good attendance. •Mr. M. Fleming, chairman : of directors, presided. REPORT AND BALANCE-SHEET. The report showed that the milk received at the cheese factory was U.S«4,ofolbs.- butter-fat, 367,177109.; cheese made, 988,6011b5. ; lbs. milk to lb. cheese, 9.1); lbs. cheese to lb. but-ter-fat, 2.69; average test, 3.71; milk received at butter factory, 939,9301b5.; butter-fat, 3/,s4'Slbs.; butter made, 4f>,3S6lbs. ; lbs. milk to lb. butter, 20.7; over-run, 20.9; average test, 4.0. Whey butter to the value of £I3OO 7s 2d was made during the cheese-making period. An average payment of 14.01 d was made. A further payment of 3d. per lb. for the year was made ia August, and a payment of Id. per lb. was now being made. When all the. account sales were to hand a final payment would be made.' The introduction of pasteurising plant during the year, and other necessary alterations and additions, run into over £IOOO, and the directors thouglit that the best way to cover this extraordinary expenditure would be by the issue of further shares. In order to meet this resolutions would be submitted to increase the nominal capital from £OOOO to £BOOO, and to alter the articles of association, making the basis for a share lolbs, of butterfair, calculated on the supply for the month of December in each year.

Tiie balance-sheet showed that cheese sales amounted to £25,074 O3 3d; butter sale?, £.3809 19s 7d; cheese on hand, £-1*135 10s Cd; butter on hand, £209 ISs 4d; interest, Box Company, £3O 7s Sd; balance last year, £OI2O 14s 3d; account sales, 1914-1915, £3013 3s 7d; total £42,783 14s 4d. The principal items of expenditure were: Further payments on last year's work and interest, £BO3I 8s lid; advances to suppliers, £2,036 18s sd; export charges, £240 7g Id; boxes and crates, £513 14s; cartage, £B7B 18s Sd: fuel, £4OO 7s lOd; repairs, £3OO 14s 2d; store 3 and requisites, £746 8s 9d; salaries, £1554 8s 2d; trade expenses, £l'!>7 15s Id; interest, £25 10s; insurance, £33 5s 3d; depreciation, £3OB 18s. There was a credit balance of £5228 15s 3d. The stores account showed that goods to the value of £5203 9s 3d had been sold, showing a profit of £3Ol os 9d, ; " CHAIRMAN'S ADDRESS. In moving the adoption of the report and balance-sheet, the chairman congratulated suppliers on having had the most successful year in its history. 1 The supply had been a record, having increased by 51,0101b5. on the previous year's supply, which was also a record. The manufacturing results were also much better than the previous year, lib. of cheese being made from O.Olbs. ol milk, as against fuTSlbs. last year; 2.0!) lbs. of cheese were made from each pound of butter-fat, as against 2.5/lbs. last year. He did not know whether the pasteuriser was responsible or not, but there had been very little secondgrade cheese manufactured during the season, barely 3 per cent. The expenditure had increased—firewood by illO, and salaries by £259. Salaries during the past two years had increased by £302, or 30 per cent. Referring to the need for increasing the share capital, the chairman stated that the total paid-up capital was now only £43*4, whereas the assets (comprising buildings, plant, etc., £4013 19> lfld; stores, firewood, £474 13s 4d; shares in Box Company, etc., £1212 13s Bd; sundry debtors, etc., £1702) totalled £7440. The share capital was, therefore, £3292 behind. The store department had been fairly successful, though the profits were not large. Of the goods supplied, £4050 were sold to suppliers or share-milkers, and £1245 5s 9d to the pubjic for cash. The net profits were.only/ £l4B L3s sd, which lie considered very small on the turnover. Mr. T. Harvey seconded the adoption. THE DISCUSSION. In reply to Mr. H. Lett, the chairman stated that 575 crates of cheese were in hand on May 1, valued at S l / 2 d. Mr. Lytt considered the balance-sheet should have given more details. The whey butter sales should have benn separated, from the creamery butler. In reply to further questions, the chairman stated that the dividend of 3d. paid in August had come out of the £SOOO balance. Surpluses, towever, were expected from several account sales not yet to hand, and aho from the sale of the cheese on hand, which had been valued at S l / 2 d., but would strike a, much highei market. This would enable the company to make a further, pay-out, but he could not sayhow much. Mr. K. Taylor protested against the directors having let the carting contract for three years without calling tenders. This, he understood", was illegal. He considered the company should be strong enough to run its own Sorry. The chairman justified the directors' action in renewing the carting contract. He considered that when the financial position would permit, and motor waggons were procurable, it would pay the company handsomely to procure a motor waggon. At present cartage cost them about £llOO per annum, and this would be intensified when they had to burn coal. The report was adopted. INCREASING' THE SHARE CAPITAL. In accordance with notice, the chairman moved a resolution, providing for the capital being increased from £0009) to £3OOO. Mr, W, R. Wright necondcd. Mr. E. Taylor doubted whether 2000 shares would be sufficient, in view of the financial position of the company, especially if it was intended to go in for a motor lorry and contuiue the store. Mr. Jame s Fleming moved, as an amendment, that the matter he held over until next annual meeting. There was no urgency, and now was the wrong time to plunge. The chairman held that this was not an amendment, and pointed out that 1350 shares were at present ur.alloted, and 3000 additional shares would allow an ample margin, even on a Nsis of share capital, one share for .151'js. of butter-tat. There were, he said, a number of dry shares, and also a number of diarc; held by suppliers that could not be affected. New cnnit.il was required to run the business. Personally, lie was not keen on occupying the chair, and always coming to suppliers cap in hand for money. He would sooner give up the position and let some of the others run the factory.

The resolution was carried. On the motion of .Messrs. Wright and Penwarden, a further resolution was passed, altering the articles oi association so as to provide that the directors may require each shareholder to take up additional shares, so as to hold one share for every lolbs. of but-ter-fat supplied in December, and also providing for the payment of the same by the deduction of Is. fox evcr,v 241bs. of butter-fat supplied. ELECTION OP DIRECTORS. For the two vacancies on the directorate, caused by the retirement by rotation of Messrs. W. R. Wright and C. Penwarden, there were five nominations. The election resulted:—T. Harvey, 139; W. R. Wright, 134 (elected); P. Brophy, 110; C. Penwarden, 93; E. Taylor, 80. Mr. G. W. Rogers (Opunake) was reelected auditor. GENERAL. It wa_s decided to give shareholders, share-milkers, and employees a rebate of 71/ s d per cent, on goods purchased from the store other than net goods. The balance o'f the profits, viz., £92 4s 4d., will be placed to a reserve fund. Some discussion took place regarding the lateness of the date at which the meeting was held. The secretary ex plained that this was due to his lengthy illness. On the motion of Messrs. H. Lett and E. Taylor, it was resolved that each supplier be given a daily slip of milk supplied and butter received. Vote 3 of thanks were accorded the retiring director (Mr. C. Penwarden), the directors, and the staff. A special tribute was paid to the good work done by the manager (Mr, W. T. Guild), and a suggestion was made that he should he voted a bonus, The manager, in thanking the mover, intimated that he was already receiving the war bonus. CHAIRMAN OF DIRECTORS, At a subsequent meeting of directors, Mr. M. Fleming was re-elected chairman.