WAREA DAIRY COMPANY.

Taranaki Daily News, 7 August 1917, Page 3

WAREA DAIRY COMPANY.

ANNUAL METOTIJSO. The annual meeting of the Warea Dairy Company was held in the Warea [(all yesterday, Mr. .Ja.s. Burgess, chairman of directors, presiding over an attendance of about as suppliers. REPORT AND BALANCE-SHEET. The report showed the following particulars:— Milk received. Warea 4.G-l.'S,t'-"lb. Nerval! '2,1il I,'J-lOlb • butter-fat, 177.7151b, t»7,7251b; average test, 3.83, 3.751: cheese made (factory weight), 459,4«01b, 2-JS.DS3 lb: milk to lib cheese, iO.llb. 10.511): cheese to lib butter-fat. 25811), "i.551b; official average grade. SB.S7, 89.07; whey and starter butter made, total 11,1541b.

Tile amount to credit of profit and loss account was C 4-070 2s lid. there being set aside £3SI 10s Sd to cover depreciation and £203 17s for interest at livu per cent, per annum on fully paid shares. Out of the balance of £3484 15s 3d the directors proposed a further payment of Gd per lb oil .February and March butter-fat, and of l%d per lb over the wholo of the year, which absorbed £3308 2s 4d, and left £ll6 12s lid to be carried forward. The factory at Nevvall Road had been improved, and a pasteuriser and additional plant installed A new residence has also been erected CHAIRMAN'S ADDRESS. " The chairman, in moving the adoption* of the -report and balance-sheet, stated that the price paid to suppliers for but-ter-fat was the highest yet paid bv the company, namely, Is 7 ? ; id. In addition 5 per cent, had been paid as interest on capital, and whey butter had been sold to suppliers at ls»whikt that sent Home realised Is 7d per lb. The dry season caused a reduction of 34,55711) of butterfat. in spite of which £G7O 10s 7d more would have been paid out than in any previous year. Had the quantity been equal to that of last season. C.'J.Klb 3s 8d more would have been paid out than previously, and if no hutter-fat levy had been made the excess would have' been £4315 4s lid. Mr. liurgess jexplained the negotiations between the dairy companies and the (iovernment, finally resulting in the Government purchasing the cheese at Did and deducting 1 >/, per cent, for agents, also -"/jd per lb of hut-ter-fat in order to provide cheap butter at the expense of dairy farmers for consumers, many of whom were in :>n infinitely better position to pay for it than the majority of dairy farmers, who had to provide it. Had it gone to help our kindred at Home, who are bearing the heavy end of the stick, or in anv way to help win the war, continued Mr. Burgess, very few would have objected, but they did object to a purely class tax that sen- 1 neither of these purposes. llowev the tax was not likelv to be again imposed. The scarcity of shipping had caused great (rouble'and loss. Freezing works were so crammed that storage room had to be found anywhere. whether suitable or not. Cheese we.s packed so close that it was impossible to get it out in the same order as it was sent in, and some was kept in store for month.*, while at times factories had to hold it for two months before it could Ih> taken in and graded, with great loss of weight and low grades. I'or this season much storage space was being built by dairy companies, freezing works, and li:;ri)ur boards. The Moturoa freezing Works Co. was building storage for 3fi,Uoo crates at somewhere about Thin would necessitate move shares being taken up, but as they held 31 shares fully paid out of profit's, and new shares were likely to lie paid for in the same way, this need not worry them. Canadian cheese had realised %'d per lb more than New Zealand. He understood there was a probability that New Zealand would receive an additional V-d per lii, and if that were so it would mean an additional •«v out of l'/ 4 d per lb of butter-fat. but there was no certainty of this. At prices prevailing, and likely to prevail, he said, we should produce all we can. and he urged them to go in for cultivation as much as possible. Provision should he made for keeping up the milk supply after Christma ■, when fpod was scarce, by growiii" crops of turnips, green feed, lucerne, paspalum, etc. He urged on nil suppliers the importance of saving veils, pointing out that the Rennet Company -was eon" mencing operations at Patea this season, The Bacon Company had sent circulars asking the company to take up shares in the New Zealand Farmers' Bacon Co. It would be noticed that the company had paid a bonus of j K , r ]], f o] . pj„\ supplied by shareholders. This meant an extra payment of 9s on an average bacon pig, and as this was too much to lose lie asked shareholders to consider the, question of taking up shares, and share in any profits or obtain any bonus for suppliers of pigs. He referred to the expense incurred in connection with deputations to Wellington in connection with the sale of their output to the Imperial Government and other matters. There was a proposal to make a levy on eaeli factory in proportion to their output, and hp favored this, as it would enable the companies, when conferring, to send the best men to represent them, irrespective of whether they %we in -a position to pay their own expenses or not. The m'ilk received at Warea showed a decrease of SMS.S7GIb, lipd at New-all Hoad 345,4411b. The average test was down .01. Tho average gffitie lit Warea was dowrn 1.05, and at Newaii Ko«4 jt was up .01. The payment per lli of butter-fat wa 3 2.73 d per lb higher. llp tjifii reviewed file balancesheet at length. Mr. J. Lawn seconded the motion.

Mr. Chupmau said tliat though they . would hav« to pass the bailee-sheet as correct he thought that they sljould also pass a vote of censure on tlie diretlurs, and more especiojlv on the manager. He considered that it ha/1 eont liini £IOO for the right to i-peak that .day. He noted that the- /(uantity of cheese made was given as factory weight, and he asjyed whether this was dofl.e to mislead sup~""s who were not interested in the l )lR - - tqade bt}t ju the quantity sold, quautitj <j£ jfiijk ;.p niuke a pound It took 10.1 id. I pijujid of cheese, whereas •« of cheese out of !t. ( ;Slba o, -„ t J tically the same test. This niei.. to Warea supplier- of £1503 17s, on,, per lb butter butterfat, assuming the quality was the same. Warea had every right to expect the same returns. The grades too were abnormally tow, Pungareliu being 01.12 and Okato !10.(>3, evidently showing thai Warea's cheese could not have been too dry. Warea was also about fifth or .sixth last on the grading list. He also criticised the depreciation.

Mr. Burgess said that he deprecated comparisons with neighboring companies, but quoted figures to blio - # that Okato's pay-out was only ,73d more than Warea. Warea should have tome closer than that, but he pointed out'that'Okato had a larger supply.

Mr. J. Lawn aiso referred to the. difference in the tests at Newa.ll road and Warea. He also cajoaidered the_ahare-

builders should have Leon consulted beiore -the directors joined the Rennet Company, and that the Egmont Box Comjaany was not too good an undertaking in -view of the shortage of timber. Mr. Buitgcss pointed ou± that they had saved mou; money during the past twelve months in the -purchase of their boxes and crates than they had invested in the company, and moreover, he felt that the Box Oompany -woMld eventually pay every slrilling that had put into it. Regarding the Renur.t Company, he pointed out that owiugto ijie threatened shortage of rennet, it was e&Midered advisable to join the Rennet Compy,;iy. He expressed disappoint mint at the yrfJ.s received.

To. Mr Corbett: There wenTf-55 erattt> of second-grade at Waici and 440 at Newall road. This was ferhaps due ti. the fact that the cheese was so much older and had been in indifferent storage before being graded.

Mr. Corbett considered they should buy cut all non-supplying shares by offering to purchase shares at 12s (id within a certain time, and after that 10s. The articles of association provided that interest as low as '/ 2 per cent, could be paid out, and if this were done it might induce non-supphers to. sell.

The chairman stated that those who had assisted the company in the early days needed consideration.

Considerable discussion took place on the whey question The chairman promised to give the matter due consideration, but Sonsidered the only solution was to pay a man to watch each supplier weigh the whey at a cost of probably £l5O. After further discussion, in which a change in the hours for receiving milk ■•vae advocated, the report was adopted. ELECTION OF DIRECTORS,

Tliere wore four nominations for the three vacancies on the directorate, and the election resulted as follows:—Messrs C. Wells 183, A. Clothier 17C, C. Mllir l.w (elected), W. B. Smith 138. Mr. 0. T. Mills was re-elected auditor. It was resolved to vote the directors 5s for each meeting (special and ordinary) and the chairman £2O per annum. This resolution to be in force until countermanded. THE CARTAGE QUESTION. At t]ie annual meeting of the Okato Dairy Company it was decided that Okato wait on Warea in connectipn with the question of the companies purchasing their own motor lorries. Messrs J. Wooldridge (chairman), and R. C. Henry (director), of the Okato Company, accordingly waited on the company. Mr. Wooldridge outlined the proposals. Mr. Burgess favored the scheme, hut considered it should be enlarged to em-, bj'aco three or four companies. If each of these purchased a lorry there would bo less likelihood of a company being stuckup if a lorry broke dqwn. J3e suggested tliat the directors should be empowered to discuss the matter. After further discussion Mr. : J?. Julian moved that the directors be appointed to confer with other directors in regard to combined aci tion , with power to act. Mr. IJ. Corbett, seconded.

Mr. H. N. Chapman moved as an amendment that the directors, after conferring with the directors of other companies and obtaining the necessary infiirniatiop, call a special meeting to considpr the question. iff. J. Lawn seconded. wnwjfjßiqiit jyas |ost by one vote and GENERAL. ~ A vote of thMks ffmi WB. Smith for his work on tU? fi»™ctorate during the past term. On the motion of Messrs 'Parker and Corbctt a vote of thanks W accorded the chairman, directors, manager, secretary and staff. The mover stated tfcat he was well satisfied with the work done ty' all. If their returns had nof eflpaljed tfioac of some companies they slipup pe very well satisfied. CHAIRMAN OF DIRECTORS.

At a subsequent meeting of directors, Mr. Jas. "Burgess was re-elected chairman pi directors^