KAUPOKONUI DAIRY COMPANY.

Taranaki Daily News, 5 September 1917, Page 7

KAUPOKONUI DAIRY COMPANY.

ANNUAL MEETING. The twentieth annual meeting oF the Kaupokonui Dairy Company was held at the Kaupokonui factory on Monday, when Mr. W. 1). Powdrell, chairman of Uircetors, presided over an attendance of about 100 shareholders, including' several ladies. REPORT AND BALANCE SHEET. The report stated: — Before the Imperial authorities agreed | to purchase the cheese output on January IC, 1917, we had consigned to our 'agents, Messrs J. and J. Lonsdale and Co., about one-third of our year's make, and this was commandeered by the Imperial Government at a price to be arranged later. The price has now been settled at 123s Od per cwt. On these shipments '\ve drew 9d per lb, and have vet to receive final payment. On the most of the balance of the season's output we have drawn from time to time 99 per cent, of the value at 9M, and at ■the end of June had still to draw oil some 3200 crates. The company has paid £Ol3l lis 3d, equal to .7 per cent, on the whole supply as a butter levy. The profit and loss account shows a surplus, after allowing £1784 l'fe (3d for depreciation, of £74,038 4s lid. of which £20.598 4s 9d has since been paid to suppliers at the rate of 3d per lb of butterfat over the whole season, leaving £-17,440 0s 2d, out of which it is proposed ■to pay interest on shares, fi per cent., amounting to £l4Bl Is, and a further pavment for butter-fat of 5d over the whole season, £4-1,332 14s 7d, making the total payment for the season, including the butter-fat levy. Is ll.Sfld per lb of' butter-fat, leaving £IO2O 4s 7d to be carried to reserve, after making provision for directors' fees amd any other necessary grants or allocations. Owing"to the shortage of shipping during the past s ea=on and the lack of sufficient suitable storage for the accumulated stocks of cheese, this company, in common with others, suffered a very considerable lo»s in weight prior to grading, and to obviate a recurrence of this trouble your directors have arranged to have the central curing room, which is controlled by freezer, declared a grading store, and are building a new curing room'in the front of the central factory. This will assure the holding of about one-half of tho season's output in controlled storage. The further payment of 3d per lb made on July 20, 1017, brought the payment for the season up to Is Od per lb. A further payment of 3%d per lb 'will be made on September 20, when a further and final payment will also be made if 'settlement has been made by the Imperial authorities by that date. The store business continues to increase this year by £OOOO, showing « profit of £IO2B 7s Od, and during the year it was found necessary to erect tccommodation of the boot and harness 'business. The accumulated profits, £BB2O 10s Bd, have been placed to reserve in accordance with the wish of the Jast annual meeting. STATISTICS. 1910-17 1915-10 Lbs. Lbs. Milk .- 04,764,397 60,229,198 Butter-fat i 2,127,971 2,293,174 Cheese 5,307.970 5,930,019 ■Butter—creamery 33.970 46,929 Butter—whey ... 90,992 89,488 Cheese to fat .. 2.50 2.02 •Milk to cheese ... 10.04 10.00-1 ■Average test ..... 3.58 3.815 The balance sheet <=howed that receipts totalled £247,814, viz., cheese sold and in stock £230,253, butter sold and in (Stock £10,123, interest account £553. The principal items of expenditure were salaries and wages £8340, requisites £67*9, freight, freezing, shipping and (railage £3055, firewood and coal £2205, cartago £1221, repairs and renewals £1824, cream cartage £054, redemption account £1794, ocean freight £7038, butter-fat levy £Olsl, cow-testing £332, pmilk advances had been £132,929; balance £74,038. CHAIRMAN'S ADDRESS. . The chairman stated that he proposed to move the adoption of the report with the amendment that the directors be recommended to pay out Is lO.lfld per lb Butter-fat and to invest the balance of .the bonus (Id) in war certificates, payable in five, years time, such bonds to bo handed to suppliers in proportion to the amount of milk they had supplied during the 1910-17 season. He traversed .the balance sheet at some length. Many items thereon had increased very largely. Share capital was increased by £2910, of which £lBOl represented new shares. Tlio store overdraft also showed an increase, due to the fact that larger stocks had to be carried and that they had to give suppliers credit to the extent of £OO9O or £7OOO to carry them over the winter. The money they held on deposit had also increased, being now £18,5;i5 12s sd, an indication of the confidence the outside public had in the concern. While the <»ompany owed £4500 on mortgage it had £10,999 owing to it on account of mortgages on farms purchased. * Requisites showed an increase of £SOO, due to tho fact that they had three or four years' stock of bandages. Sundry debtors stood at £52,774 17s 6d this year as against £l3,93o'last year, the large increase being mainly due to the fact tliat they had not yet received full payment from the Imperial Government. ■He defended the company's investment in outside concerns, which amounted to £13,299 out of a paid up capital of £30,00. Some dairy factory directors were very pessimistic about the Egmont Box Company, in which Kaupokonui had invested £5284, but he had great confidence that it would prove a profitable investment, for though it did not contain as much white pine as was anticipated, there was plenty of matai and totara, •which was more profitable to work, and they could buy white pine much cheaper. Moreover, they had a block of land for a long term at a low rental, and sis some . of this was equal to Ka.ponga land, it would prove a valuable asset. The company had £3187 Is lOd in the West Coast Refrigerating Company, the bulk , of which was accrued profits. The £BiiG , in the West Coast Refrigerating Steam Ship also paid interest. The invest ii:"tu , £2935 in the Bacon Company !i" ' proved a good one. Their sh:irchol..'w. , who supplied pigs had received an s [ . tiona! 9s per pig, and the company \ i ireceive six per cent, interest, while • : • paying the bank 5} per cent. Tie; : •; taken up an additions'! :<har? hi .. ■Manaia Loan Corupauy and (,r.ipe ; . purchase further interest a* (■ppu:-i> ■_ offered, so as to later he aV.e 1,, the farmers with l:i»ff> at - h> of interest. Tl:i> CJ.V.I i.i'e ; < r.-itea Fanners' l';'e_';'.in;i i\vy-.' ; paid no mU-r: ,; t. net bcr. ■'■■:■ '< ' no profits, but because iLcic t .v,..._ ,

being utilised to improve the financial I position of the compnnv, which, on a paid-up capital of £23,000, hail expended £OO,OOO on buildings, and had a stock of about £IOO,OOO. The directors themselves had given a guarantee of £BO,OOO Were the works sold they would receive £lO for each £5. Tho company, he stated, had carried out renewals and repairs to the extent of £1834. These included concreting the tunnel and race, a croncrete dam at Otakeho, the installation of a 40h.p. boiler at the factory. Tho old boiler, which was too small would be removed to Waiokura. Fuel showed an increase of £SOO, due to the fact that tho repairs to the water power necessitated more use of tho fuel, which was also a higher price. Curtate had increased owing to the high cost of benzine and increased wages. Salaries showed an increase of about £BSO, despite tho reduced output owing to the increase in wages. The butter-fat levy, of which all had heard, hud cost the company £Olsl 17s 3d. They had taken every possible step to have it upset, but when they found that it was impossible to do so, they had appointed a committee who proved invaluable in assisting the Board of Trade. Owing to the butter not reaching the Home market, the %d had proved more than sullicient to make up tho difference between the local and export price, and it was probable also that there would be a refund of nearly y,d. Interest received had totalled £553 12s 8d more than had been paid showing the soundness of the company. Last year it was £Bl7, but the decrease was*due to the fact that the company had to l'.san more on the bank, owing to the money not being received from tho Government. The advantage of using motor •waggons was shown by the cost of carting chee=c to Hawera, which worked out at "s Od per ton, including the carting from the branches to the main factory They had depreciated their tbreo motor wagons £4OO with the object of writing them off in eight years. Owing to the high price of benzine, he favored the company obtaining electric wagons when obtaining further ones. These could be charged at night time by their water power without any extra cost. Ho understood some of these wagons were run 18 milts for Od. He traversed the store balance sheet, showing that a profit of £IO2B (three per cent.) had been made on a turnover of £40,324 10s od. This profit, added to reserve fund, gave a total reserve on the store account of £10,448. It was proposed to alter tho articles of association so that the profits made could be given back to purchasers in share capital bearing interest, and thus build op the financial stability of the company. They were considering the question of joining tho federation of co-operative societies so as to bay in the cheapest market. The sum of £1794 had been placed to the redemption account, which new stood at £23,100, whilst the buildings, plant and land were valued at £35,000, the actual cost never having been appreciated and when they considered that some of the land only cost £l-2 per acre they would see the position was very sound. This year whey butter to the value of over £7OOO had been made. The amount of cheese to one 11) of butter-fat was 2.50, as against 2.02 last year. This was due to the shrinkage caused on account of the length of time it had to be stored before being graded. The test had gone up, being 3.88 as compared with 3.815 last year and was higher than any other test. The directors were goiug in for a good deal of expenditure. They wen: putting up a now curing room and providing additional cool storage which would b* recognised as a grading store, where their produce would bo graded, after which the shrinkage, if any, would bo the Government's loss. Last year through indifferent storago they had lost as much as £IOOO in two months through shrinkage. They would be able to store 10,000 crates and might possibly be able to make between £350 and £4OO per month out of storage, instead of losing that amount. When the war was over the extra building might be utilised for tho manufacture of sugar of milk, about which the directors were making enquiries. Other improvements under way were the erection of a concrete coal house and manure shed. Ho gave at length the transactions leading to the purchase of the cheese by the Imperial Government at 9Jd, stating that in the early stages he and Mr. Forsyth (Eltham) had a hard fight to prevent the output being offered at Bd, as the South Island producers 'wished, finally compromising on 8-% d. He stated tjiat before the Government purchased the output some eleven or twelve shipments had been forwarded and on this it was fiually arranged that the company should receive 323s Od per cwt., which represented £14,000 or £15,000 to the to the company. Mr. Long seconded. ! After further discussion on the War loan, the resolution was carried. ELECTION OF DIRECTORS. Messrs W. D. Powdrell, T. MePhillips. and W. 11. Le Fleming, the retiring directors, wero re-elected unopposed. Mr. T. McPhiUips intimated his wish to retire as other public and patriotic matters occupied Ids time. In deference to the unanimous wish of the meeting he accepted nomination. The directors returned thanks. Mr. H. A. I.ennon was re-elected auditor, the fee being increased from 25gns to £4O, and a bonus of lOgns was voted for last year's work. It was resolved to vote tho directors £1 per day as last year and the chairman an honorarium of £l5O for the ensuing year, and also a bonus of £IOO for his services during the past season. The auditor, in his report, congratulated shareholders on tho sound position of the company, which was a testimony to the prudent and. .sagacious ipolicy pursued by the directors. He also eulogised the sound policy adopted by the directors in augmenting their reserves. VELLS. The chairman urged all to save veils. Their company was paying 2s 0d for veils, whilst others were giving as, but .he pointed out that the extra price only came out of their own pockets in the extra cost of the rennet, which would be supplied pro rata to the veils saved. He did not suggest that their good calves should be killed, but every veil possible -hjontd be saved. He urged them to supply (i.eir own company even if the price ■riven was lower, because every veil supplied elsewhere reduced their supply of rennet. If the company was faced with a -liwti'.gc of rennet they would have f.i. ~;i-i.'er luamifa.-turiiiK into butter '... ■ ''lilk of those who did not supply .'.:'■-('■!' we ii'/iiii'cd out that tho ■■' ■ ■- •■ .•.' ■>■■'! ■ .ii '. our, £234 for -■ -~ fit •:-■. i;i. 'rail meant that ■ ':;', 'ei--, 'in I snimlied on an ' • in -K.iiL veils. . 'e ! \':nt there would l.iis jvar jiow that

the Yelb were being manufactured into rennet locally. GENERAL. ' , In roply to Mr. Dunn, tho chairman stated that the Government asked for 50.009 tons of New Zealand cheese. This, it was expected, would be the whole output. Mr. C. Burke considered the store profits on tlio turnover wero too small, lie considered that some improvement in the system was required. Tile chairman stated that the stock on hand had been valued very low. Some of the stock had since risen very considerably in value. It had been tlio practice to sell in accordance with tlio price at which goods were purchased, not taking advantage of the rise in price. He considered no fault could be found with the buying. A copy of the proposed new articles of association was read. Tliey provide, among other things, that the profits may be allotted to shareholders as shares bearing interest. A hearty vote of thanks was accorded the staff for their work during the past year. The ladies who dispensed luncheon and afternoon tea wero accorded * "very hearty vote of thanks.