EGMONT BOX COMPANY.
ANNUAL MEETING,
Tlie eleventh annual meeting «f ihe Eemonl Box Comiwnv wa.-.- held in fbc| Furc>Ur.,' Hall, j:ith: ; .m, yesterday, Mr.! •J. D. Murdoch (chairman ami managing ; dueetcri [.'residing. About forty dairy companies were represented at the meeting. PvEFOET. The eleventh annual repori showed a deerca.-.ed tunic - as compared villi last year, owiu- .1 the falling off in production of bv... :• and chce.>c, and the reduction of building timber sales. Considerably higiier wages had to be paid to retain employees. After writing off .€l4 Os lOd for bad debv, .Cir.ii for exhausted hush, and .tlCO."!! for deprceiation, there remained a surplus of ,e2lii>'i 4s 7d. out of wl'.ieh the directors recommended that 5 per cent be paid 011 paidup shave capital, absorbing £2507 5s 4d, and leaving a "balance -of £l)s IDs 3d.
CHAIRMAN'S ADDKESS,
The chairman stated that the work of Hip company had been u j ry satisfactory. Iconic mkrlit think that the depreciation was too low. hut it must he remembered that in addition the end plant had been thoroughly maintained, without adding; that charge io capital account. The assets and liabilitie» showed that the company was in a very good position. If they took the accounts payable, and deducted from them the of the accounts receivable, there was only n deficit of £, r )lilo. which, was much more than covered by the assets in the shape of machinery, leasehold and freehold, which would make a difference, of much more than £10,0(10. so that it could be seen that the position was a sound ■one. Dairy companies had put £50.0;'0 ■of share capital into the concert., but if the prion of cheese crates and bc»:e* manufactures by the company '"bice its inception bad "been increased by likl oecrt it woirid have paid oif the total capital. It was unfortunate that the .state of war still continued, for as the majority of their bush workers were finglo men, their M.iff. especially at Ohufu, was considerably reduced, resulting in a decreased output, and t!ie company had to purchase timber from other millers, The position would probably become worse this season, but they would- pnrcliasl what they could from oilier millers to keep up requirements. Other millers were oii'ering high wages, but the company's good men had acted loyally. The bunli was turnip,;,' out better than was anticipated as regards white, pine, but it had been necessary to extend the tram. This, however, had not proved very extensive, as it was fairly easy country, but for a few blull's. The weather alio had been against them, especially duri in-r the last few months. Their'stocks were 100,001) feet k':-s linn last year. As far as the coming ,:ason was concerned, they had .-miko'iil white pine, so that dairy factory directors would not be inconvenienced over (heir supply ef hoxe; or crate-, hi this respect Taraiiaki had a considerable advantage. Me expressed ruLOvt ihat m'iiic- sharel.olderp did not eon-ider the l!ox Company was 'oo eo« (1 a proportion, bet he a-kei! what would have been (heir p-.-iibm il thev bed had to go on tiie open market. Tlu'y would have had to pay more for tiicir boxes and crates, and even thee if was doubtful whether they could have f ;ot them. Dairy companies in Wairarapa and linvvko's lio.y. roc ><:nisiue/ it', advantages, had oil'ered to } ■]:< the company, but the direct..-r- had refund to Pake them, because they v.i-f.cd to con-
serve I'ic while pine I'm' tlr'ir Taraicikl shareholders. He explained the steps that had been taken In urgr- on the Hovcrmncnt Hip necessity ol' preventing the oxnorl of while pine, showing thai v.]i< reus New Zealand nso.! :T,,')!l(>.ll|)n per nimmu, Australia liscl double Hint .piantity. not univ for boxe-\ but fn>furniture and budding, lie thoii;;hc the (tnvernmen* mi'.pii conserve Hie ".vhitc pine on n:iti>e hinds f"r tin' It-minion's requirements, ll was [-tufv<! thai there v.ns 7 years' supply of while pine. It iiid not'follow that' it would nil be out in 'that time. They would have jo go further afield if their white pine wanil out. As showing the increased cost, he stated that when (lie I'e.v Company commeneed oncralions white pint' con id be purcha-od for (Is. whereas now if eu.M 11/-. Despite this, boxes and crates had not doubled. Inn in.' been ri-ni last month to U ?>\U\ and 1-- Hid respectively They made one-t!iird butter boxes anil twi'-lhird* cheese crates. Another iirni in Xow Zealand was charging Is .)i<.d anil Is St-oil rospcel ively, but it made fi-C butter boxes.'on which there wa- the greater profit. The directors, lie said, had inspected the Tanrewa proper! c. about which there was cnusideraMe ili ■- eus-ion last meeting. There was :7: ; acre- of excellent milling timber. ini;'\.Iv composing tot.nni. me.'.ai and rinm. It was :i splendid assei. as n milling concern, but was not much ire for supplying white pine, save that tlie money received would enable them to purchase white ])ine elsewhere. In concluding, he stated that as far as could beseen they would he up against difficulty in regard to labor, a; if was hard to pet married men to go info the bush, and single men were not available. He asked dairy companies to show every consideration when submitting their orders. Mr. J. S. Connett seconded. THE DISCUSSION. Mr. Forsylh (Elthaml considered that too little depreciation had been written off. particularly on the Oiitilu bush rights, which would be worked out. in four years. He also cnmncrafotl other items' such as tram, building'! at Taurcwa, etc. The chairman slated that as the bush rights were cut the leases would become a more valuable asset.
Mr. Dingle thought that dairy factories need never regret if they did not get back the money put into the Vox 'Company, which had served ils purpose in giving them cheap timber. Tie thought the company would be wise if it got rid of the Taurewa bush, which bad cost nbout £"5,000, as it contained very little white pine. further discussion ensued over de-
precialion, the chairman staling that the company kepi its boxes and crates as low ati possible, ami after paying interest on share capital wiped of)' tho balance of tli" profits in depreciation. Mr, Gibson (Raholu) pointed out that four years ago it was stated that the Ell ham He;: C'ouipaiiy had white pine puliicieiu to last for H 0 years, whereas now they told . the Government there was univ enough fur F.eveu yearr. His fellow director* were not t&tisliixl with the position of (he Box Company. They had got in it, but could not get out. 'j'i.'-v iiud roivived :'Sii> as interest, but had i" take up £i!o fresh share capital. 1 lie thought the company should build up iis asset;; instead of paring interest. Mr. J. A. Winks (Araruta) thought they should exchange the. Taurewa prop-: erty for land containing while pine,; which was what they required. j The chairman pointed out that was nearly impossible to purchase a bloc"; of while pine, but that they could pur-i chase from various sawmillers quantities: of while pine that were met in mixed bnsii, and the profits from the, hard wood: timber in their bush would enable thisj to be done. There was more profit in totara than while pine., and the expenses of milling each were the same. Mr. Winks thought that exhaustive enquiries should be made regarding milling timber in the South Island. Mr. YVooldridgc (Okato;) stated that boxes could be obtained outside the company cheaper. The chairman pointed out that the other company did not pay freight. Mr. W. H.'Were (Stratford) did not think that it tended to efficiency to have both the managing director and the manager stationed at Eltham. He thought that the manager should he at the mills whore the bulk of the man were employed Vi r-. Oloike (fhonui) ind Dim.de (Stratford) agreed. They admitted that ih< inward ihoroughh in Ui'-too) hi l 1) m< M- Dmjlo Ihoudif tint the ( n toi h< uld b< congratulated on tlit \dl of a e p t vai m he Kne\ Hi dil ( I u lhe\ had to fice
In reply to a question, the chairman stated that he considered it was nece <■ n ihil Hi re Oionld h a iii* , na' , in nr director, as there was a lot of work in conn 1 on will intue title- ele and it 1 1 11k n in 11 due 'or-, IniMne s to
see teat, ike position of the company was not jeopardised, for a slip might cause a hie; loss. Mr. Cibson thought the manager
should be where the work was, and that a foreman could look after the work in Ell ham.
After a little further discussion the report and balance sheet were adopted. ELECTION OF DIRECTOES. Messrs .1. S. (,'onnett and W. I). Powcirell, the rt'tirinjr directors, were reelected unopposed. Mr. Parrot t was re-elected auditor. BASTS OF VOTING. Mr. A. Morion moved in aceordiuH's with notice of motion in the direction of altering the article,-, of association to provide that: "Every member holding cue share; and not more than '.'."lil shares -hall have one vote; Sol to 500 shares. 2 votes; .".ill shares to 1000 shares, '.', votes; ' 10(11 shares to bifid shares, ■! voles; Ifidl ■■hares to iDtifl -hares, ." votes: ''Dill shares to '2.7:0 shares, six vote.-,; :::■!!] shares to ;.!0::u shares. T voies; "OIK Oiares to .1111)0 shares, :» votes; 4001 shares to "illO!) shares, il voles; five thousand and one shares or mere shall have ten voles, but no member shall have more than ten votes. If any member is a lunatic, he may vcte by his committee or legal curator."
Mr. Morion pointed out that, when the basis of voting was decided upon it was never ceutemplaled that shares would be held in stub large numbers. In 1!)U;> Ilia basis of allotment was one share for every ton of butter or two tons o: cheese. This had been increased since to 4 share* on 1 ten of butter or 2 urns of cheese, aad the basis of voting hid not been altered. On the original basis practically all companies had the maximum voting power of o votes for over •I'll shares. Tt was manifestly unfair Hint the companies with very large outnuts should have only the same voting power as the small ones. He showed (hat the smaller companies would isfili have the preponderance of voting giving figures that showed that 43 companies with 4 votes and under would total 1<):> votes, as against 12 companies with five votes and over, a total of 85 votes.
Mr. ('rey seconded the motion. Mr. tiib-on moved a.s an amendment lhal the voting basis remain as proposed (to ].-> ill shares, five votes), but that that he the maximum. lie considered (hat (lie voting basis .should be broadened, but that it was undemocratic to broaden it too much. Tt was unwise to put so iniu.li of the voting power in the bends of the larger companies. The amendment would mean that his comic uy would lose one or two votes.'. Re al.-o pointed out Hint the small coin, panics had their all in the industry. Mr. J. (.'. O'liorke (Oaontii) seconded. Mr. ,T. 13. Marx (Mangatoki) thought larger companies which supplied so much canita! should have more representation Mr. Powdrcll stated that it was the interest that the companies held in the l!ox Company i'hat caused them to become directors. He pointed out that under the present basis if the smalle.* companies liked to combine they could oust (he representatives of the larger companies from the directorate, which would not be conducive to harmony. If two or three of the big companies became dissatisfied, they could combine, and secure (heir own bush, which would be very much to the detriment of the companv. Mr. Dingle (Stratford) thought that (he larger companies should have more vol ing power. The. chairman considered that there was too much disparity which wanted adjusting. The amendment was lost, only the mover and seconder voting in its favor. Mr. (tibson moved a further amendment that the maximum voting power be 7 for 2">01 shares. Mr. C'Rorke seconded this, and it was lost.
Mr. Wooldridge (Okato) moved a further amendment, that the voting power be as follows; 1 to 250, 1 vote; 251 to 500, 2; 501. to 1000, S; 1001 to 2000, 4; 2001 to 3000, 5; 3001 to 4000, (5; 4001 and over 7, which is to be the maximum. This was seconded by Mr. Gibson, and lost, 12 voting in its favor. The resolution was carried.
SINGLE CHEESE CRATE. In reply to Mr. Marx, the chairman rtated that they had gone into the question of the single crate cheese, but so far had received no communication from the Home shipping authorities as to whether there would be any increase in freight. When this was known the directors could then ascertain at what price they could supply the boxes 90 as to meet any increased freight to the .companies using the single crates, Mr. Brash, of the National Dairy Co., stated that the Overseas Shipping Com'jnittee had examined the crg.tej, and; -it
was understood the increased freight would be C per cent. Mr. iPowdrell thought that the matter might be brought before? the notice of llic Imperial authorities, whom lie thought had to repack the cheese into single crates. The chairman pointed out that the Imperial Government pflirt the freight at present, but dairy factories did not like, the idea of the shipping companies taking the stand regarding the increased cost. ITn stated that the company had a stock of timber ready as soon as (he matter was arranged.
GENERAL. Mr. Gibson moved that it be a recommendation to the directors that the manager should reside where the work was, instead of at Kltham. The chairman stated that if tte shareholders had not sufficient confidence in their directors to conserve the company's interests, they should not have elected them. The motion lapsed. The date of. the annual meeting was filtered to the last Tuesday in August. The sum of £2S was voted to the directors who had to tiavel to the meetings. A vote of thanks was-"accorded--;the chairman.
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Taranaki Daily News, 15 August 1917, Page 8
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2,368EGMONT BOX COMPANY. Taranaki Daily News, 15 August 1917, Page 8
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