TARANAKI FARMERS' MEAT CO.

Taranaki Daily News, 1 October 1917, Page 6

TARANAKI FARMERS' MEAT CO.

SECOND ANNUAL MEETING.

The second annual meeting of the Taranaki Farmers' Meat Company was held in the Good Templar Hall on Saturday, when Mr. J. Quinn, chairman of directors, presided over an attendance of about 50 shareholders. Mr. J. C. Coopei, managing director and Milne, secretary of the Wellington Farmers' Meat Company were also present. Teh import and balance sheet as already published were taken as read. i CHAIRMAN'S ADDRESS.

In moving the adoption of the report and 'balance sheet the chairman said:— I can of course only regret the fact that the company has made a small loss on the year's work, but when the fierce competition existing last year is taken fnto account, and after considering the balance sheets of old established companies operating in the North Island: I think we can congratulate ourselves that we have come through the year so well. Of course, when I refer to the balance sheets of other companies it must be distinctly-understood that I am referring only to those companies who lire doing a trading business, as the freezing companies that do no buying and only work on charges have naturally made their usual profit. But on the pther hand if the company has not succeeded in making a profit, settlers in the district generally have benefitted to : an enormous extent by the competitive prices paid for stock last year, and we , feel fairly safe in sa,ying that the settlers have received easily the full cost of the works in the increased price paid for stock as against that paid during the previous year. An item also which must Be taken into account has been the > fact that the company has had to pay heavy interest charges on goods other than meat, such as wool, tallow, pelts, etc., which represent a large sum of 1 money, and on which, unliko meat, no storage is paid meet the interest charge. The Board have written off nothing for depreciation of plant and buildings. As a matter of fact the plant ts only now in what one might term good running order some contracts even as yet not being taken over from the contractors. It is hardly necessary I suppose to point out the enormous difficulties there are to contend with in the establishmcn of a new business of such a (haracter as this—starting entirely with new staff and untried plant there are naturally always difficulties to iace and overcome; and it is really surprising to many how this company has succeeded in coming through as well as it has done, there having been no serious hold up at the works through machinery trouble or any other trouble—very unlike several other new works that have been established. A matter which the shareholders have reason to specially congratulate themselves on is the fact that the whole of the goods manufactured by tjie company are of a first class order, the grading of the meat being considered excellent. The tallow turned out on the authority of our testing chemist ia second to none in New Zealand. The same refers to all other goods produced. The company has now established an upto-date preserving plant, indeed it has most unfortunate that this was not in operation during last season at a time when high prices could have been obained for canned goods in the old country and when it was possible to get such £otfds shipped away. The fact that this was not established was a serious handicap to the company, and it was due entirely to the generosity of the directors who handed over the building now equipped as a preserving department as a Btorc for cheese. It is hoped, however, that this preserving plant will be a means of relieving the company of a considerable quantity of low grade stock during the coming season that otherwise would have to go into the cold store. One of the difficulties that the company lias to contend with is the question of outside drafting. Unlike many other portions of New Zealand the great part" of Taranaki is essentially a small man's country, and holdings being small, and the quantity of stock which each individual settler wishes to dispose ot being likewise small in numbers, but figuring very large in the aggregate; and while it is the wish of the directors to. treat i every settler Qn exactly the same footing we find it impossible for our drafting | staff to visit every settler in detail, at least during the busy season. To do this work as thoroughly as the board would like would probably require at least half a dozen men, and this is quite out of the question. Various suggestions have been made to get settlers to assemble their stock at given points, but ive are not sure that this is possible. A thing that is always possible, however, is for settlers to mutually arrange amongst themselves to take up apace at the works, and to have their stock ready for droving or railing to the works the time so appointed with the management. " The burning question of the hour is, of course, the question of cold storage for next year's business, as it is obvious now that we are going to start tho new season which is now right on to us With a, very much congested store. The directors have appealed to tile shareholders generally to subscribe a given r.um of money for the purpose of further enlargements to storage, not only cold storage but also storage for general cargo as well. Various meetings have been held in portions of the province, and addresses had been given by Mr Cooper, in many cases with fair response, but as time is so pressing there is no time to make a general canvass of the whole of the province, and shareholders are urged to fill in their share application forms which have already been supplied to them, and return same with whatever of shares they can see their way to take up, as certainly without additional storage it will be impossible for the farmers in the Taranaki province to get their stock away during the eoming season. A matter which the directors are anxious to take up is the question of disposal of pigs, and we have been tiating with "an American firm for the purchase of pigs during the coming season at a satisfactory price. Unfortunately the question of storage again comes in here, and as shipping to the American coast is now also much more restricted than it was last year, the directors feel that until further considerable additions are made to storage it is simply impossible to take this matter up v urgent though it is, in the interests of the local settlers. As you will note by the balance sheet the quantity of stock put through the works last year amounted to nearly 35,(JOO sheep and lambs and C2G6 head of rattle. This quantity of stock fully justified the establishment of the works, and it must be remembered that Taranaki and the adjacent district will in tip very ant iutm Prod u ?e »

larger quantity of fat stock than has been produced there in the past. Any tnoney spent in addition® to the present works can only be a sound investment, indeed very unlike much of the expenditure that is being done in many parts of New Zealand on this additional storage. Quite apart from tho question of disposal of fat stock, which, of course, is essential to the farmer after all, it would be unwise to overlook the enormous effect which the establishment of these works is having and will have in the development of the port of New -Plymouth. It was the means of bringing the first Home vessel to the port antl since that vessel was safely, berthed alongside the wharf at New' Plymouth three other steamers have been successfully berthed and loaded, proving conclusively the efficiency of the facilities supplied at our port. We understand also that it will not be long before it will be possible for the port to accommodate the larger size of cargo steamers, and we now feel it within our rights to urge upon the Harbor Board the advisability of erecting storage sheds and dumping plant for the receiving of goods at the wharf. The opening of the port for deep sea shipping will, we feel sure, have a marked effect not only upon the town of New Plymouth, but will prove of vast benefit to the whole of the province of Taranaki.

There was, he concluded, a loss of £3OO shown on the balance sheet, but since then Teturns received for tallow showed an extra profit of £6OO, so that in reality they had made a profit of £3OO (applause). In addition they had 460 casks of tallow unshipped. As regards meat the position wa3 very satisfactory because the storage paid by the Government was sufficient to pay" running expenses. They, however, experienced considerate difficulty in getting away their by products, which ran into thousands of pounds. A STIRRING APPEAL.

In seconding the adoption of the report and balance sheet Mr. McCutcheon congratulated shareholders on the success achieved. When they were canvassing for share capital to establish the works there were considerable doubts expressed, doubts as to whether they would <be able to raise the capital necessary, as to whether the harbor would be available for shipping, as to whether there would be sufficient stock for tho works. In the face of all criticism the works had succeeded. Referring to the position of the shipping, he said that Messrs J. C. Cooper and Newton King had canvassed the district and in ad° dresses that were models had in aeoncisc, lucid, thorough and accurate manner placed the position before the settlers, who had also read in the press how acute was the danger ahead. In fact, it was never so bad in the history of the -Empire. Difficulties had, he said, made us the race that we were. If wc got everything right without any difficulty, w'e would probably die, as we would have nothing to live for. Farmers as a rule were an inert bodv, hard to get going, but when they did get going they usually won out all right. The present difficulty, it was satisfactory to know, could be overcome by the provision of additional space, which could be done at a cost of a few pounds to each shareholder. He urged every farmer to stand apart and ask himself what he shoifld do to relieve tho position. It was no use leaving it to others. Taranaki was a wealthy province; acre for acre he thought it was wealthier than any other part of New Zealand, and there should be no difficulty in raising the money. He stressed the point that unless additional space was provided bv the farmers their fat stock would have to remain in the paddocks and they woulu quickly get in a position where their

revenue would not meet their outlay, and they would have to meet their running charges and working expenses out of capital. There was, he considered, no occasion for despondency; in fact it was a time for optimism. England had on three or four occasion been in a worse position than she is to-day. It was striking that while the world was topsyturvy the people hero were amply provided for and well fed. Production must be kept up if the country was to be prosperous, and if the revenue did not come in how would Sir Joseph Ward, as Minister of Finance, be enabled to raise the necessary revenue? It would mean encroaching on capital. "Our part of the job," emphasised Mr. McCutchcon, "is to provide additional space. The response has not been what it should." Mr. McCutcheon then proceeded to show what had been »done in other districts to cope with the situation. At Wairoa, where £40,000 share capital was required for cold storage, £20,000 was raised in one afternoon. At Gisborne and elsewhere splendid response was made. At Whakatane a friend of his—not a wealthy man—who owned <540 acres, had put £ISOO into the freezing works. A man might well have a freehold farm, unencumbered and well stocked, but his work did not end there. Taranaki farmers owned fine works, on a splendid site; in fact; he did not think there was a better site in New Zealand, with its fine drainage and its proximity to the railway and harbor; and all that was required to solve the difficulty was the investment of a few pounds by the farmers who were receiving the advantages of the works.- He urged them'to face the difficulty like men and nut their hands in their pockets, (^ppiause.) Mr. 1 King suggested that Mr J. C. Cooper linight address the meeting. Mr. Cooper stated that the position had been so well put that anything he might add would spoil it. THE PROPOSED ADDITIONS.

In reply to Mr. J. S. Connett the chairman stated that the directors had intended to erect additional storage for 20,000 freight carcases. Up to the present 1752 new shares had been applied for It was estimated that the provision of the extra storage would cost £5500. but there was also additional storage to be provided for tallow, pelts, etc., as the bulk of last year's stock was still in store. Capital to the extent of £15,000 would have to be subscribed to enable them to take advantage of the Government's offer of a loan of £7500 for two years at 5 per cent. Mr. Cooper explained that the calls on the shares were arranged so as to be spread over two years, and only about £1 4s out of the £5 per share would be available for immediate requirements, as the erection of the buildings would only take four or five months and would require to be paid for.

In reply jo Mr., Marfell, Mr. Cooper stated that '3300 new shares would foe required to meet the difficulty. At present there were 45,000 freight carcases in stock. They expected another vessel in November, and would probably start the season with room for 35,000 freight carcases. The provision of storage for an additional 24,000 carcases would, he estimated, see them through. Mr. King stated that it might be advisable to make it clear to farmers that the directors had decided to go on with the smaller scheme, in the hope that the farmers would come further to their assistance and enable them to go on with the larger scheme, which the smaller scheme would not in any way prevent from being carried out.

Mr. Grant asked what the company (Would pay out next year. The chairman stated that any farmer could take for his meat what the Government paid for it, and, if he wished, could also dispose of the pelts and tal-

ldw if lie thought he would do better,

Mr. Grant stated that he wished to know what price would he given on the hooks.

The chairman said he could not aay at ( present. As regards sheep, for instance, it all depended what price they received for their tallow and pelts.

To a shareholder the chairman stated that they had 110 difficulty with regard to finance in connection with their wool, hides, and meat which the Government had taken over. The Government had not commandeered pelts and tallow. If they did, it would considerably ease the position regarding finance. The 3-32<l the Government paid for storage was sufficient to pay insurance and working expenses. Mr. W. Honeyfield stated that at present a man with one share could put j through as much stuff as he liked. He thought this should be altered. The chairman faverod the matter being placed on a pro rata basis. It would, how-, ever, be necessary to alter the articles of association if this were to be done. The company, he pointed out, had been established on democratic lines, one share having one vote, the maximum number of votes being placed at five. This was with the object of giving everyone & say in the election of directors.

A voice: It's the money we want, not the diretcors.

LOYALTY OF,SHAREHOLDERS.

Mr. Crozier asked if it were not a fact that one of the directors had sold his stock to the works and then re-sold them elsewhere. The chairman said that he had not personally. He could only answer for himself, and' not for others.

Mr. A. W. Budge said that possibly the remarks might apply to himself, because his .partner had sold a line of sheep to the Wanganui works, much against his wish and will. In fact he had since regretted that he had not said that he would personally pay the differ-? ence. The line was 2000 fat wethers, and the price received was far in excess of their value, so that he considered it was lucky the company had not bought them. He had also sold a line of 50 or GO wethers that the company could not take, as the works were full. Mr. Marfell considered the directors and shareholders as a. body had been loyal. The chairman said that was so. They had taken a less price than could have been obtained elsewhere. The company had endeavored to give such a price as would enable them to come out square and not create a serious loss.

Mr. Cooper said he had drawn out a schedule and ha,d pointed out to the directors how much they could afford to pay.'' If the company had paid the same prices as his company had paid in the Wairarapa they could soon have been bankrupt. The settlers of Taranaki were to be complimented on the loyal, way in which they had stuck to the company and accepted lower prices than could have been obtained elsewhert. Mr W. R. Wright said that showed how the American Meat Trust forced prices up and later bought in the works at 5s in .the £.

Mr. Grant (Puniho) thought everyone should ;bo satisfied. He was very well satisfied, for his cheque was so big that it fairly staggered him. He thought a man had no backbone if he allowed an outsider to take his cattle at y 4 d or id per lb extra. He recollected the days in the Wairarapa prior to the establishment of the company when one had to go on his knees with hat in hand to get rid of his cattle. With the establishment of the company they got better prices and saved 70 miles of driving. If the farmers companies were settled by outsiders the latter would bo able to buy at their own prices. Personally ha could not sell to an outsider even if ho were given an extra £5 or £lO per head. (Applause.) The report and balance-sheet were then adopted. ELECTION OF DIRECTORS. The retiring directors, Messrs E. Marfell, A. Morton, J. Quin, and W. R. Wright were re-elected unopposed. Mr. E. P. Webster was re-elected auditor at the same remuneration as last year,

GENERAL. In reply to Mr. Stanley, the chairman stated that the works would be opened about the beginning of December. In reply to Mr. Weston, Mr. J. C. Cooper said there was an impression that the Freezing Company would not take lambs, but he saw no reason why lambs should not be taken. The position was that the Imperial Government preferred wether mutton and beef, and their instructions were to ship these first, but if these were not in store they could ship lambs. On the motion of Messrs J. S. Connett and W. J. Gray it was resolved to vote the chairman 50 guineas for the work that he had done in the interests of the company during the past year. Several speakers stated that the position had taken up a considerable amount of his time, especially during the erection of the works, when he vißited the site every week. The chairman, in returning thanks, said that the position had not 'been a bed of roses, nor would the chairman for the coming year find it a bed of roses, for while the shipping, as far as the port was concerned, was assured, to get the produce away was a i different matter.

A proposal was mooted ta vote the directors (who only receive expenses) an honorarium, but several of the directors stated that as farmers they were pleased to work in the interests of farmers. They pointed out that they recognised the chairman had devoted considerable time to the company. On the motion of Messrs Bayley and W. C. Weston a hearty vote of thanks was accorded the chairman and directors for their services during the nast twelve months. MOST DANGEROUS OF MINOS ATT,MENTS. Of the minor ailments a cold is by far the most dangerous, not in itself, but the serious diseases it so often leads to. Pneumonia and consumption always start With a cold. When you have a cold you are much more likely to contract the infectious diseases such as diphtheria, scarlet fever and whooping cough. Colds are easily cured; in fact, Chamberlain's Cough Remedy is famous for its cures of this most common ailment, and pleasant and safe to take. Why take such desperate chances when so reliable and trustworthy a medicine may be obtained for eightpence.

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