INGLEWOOD BACON COMPANY.

Taranaki Daily News, 15 October 1917, Page 6

INGLEWOOD BACON COMPANY.

A / SUCCESSFUL YEAR. The annual meeting of the Inglewood Bacon Company was heM on Saturday, M.r A. Morton (chairman of directors) presiding over a moderate attendance. REPORT AND BALANCE-SHEET. The report congratulated shareholders upon the satisfactory result of the eighteenth year's operations, the supply of pigs again showing a substantial increase, and the average price paid being a record. The company paid to shareholders £18,009 Os lid, and further payments absorbing £3:097 2s 2d have been authorised. A dividend of o per cent, on share capital has also been authorised. The insurance fund shows a credit balance of £lO 13 s 2d. The whole of the share capital of the company has now been allotted. In order to make provision for new shareholders, and for increases of shares to the present shareholders, it is absolutely necessary to increase the nominal capital of the company.

The balance-sheet showed that sales had totalled £33,048 15s 3d (bacon, hams, etc., £31,127; lard, £1029; curing, £427 «s lld : meal, £213 15s; tallow and manure, £261 5s 2d); stock in hand, £1673 3s 4d. The principal items of expenditure showed advances on pigs £18,909 0s lid, further payment £3697 2s 2d, wages and salaries £1855 12s, war bonus £153 6s, material £9BB 15s Id, commission £1203 5s 7d, discounts and exchange £72G»2s Id, fuel £lB4 3s 7d, electric supply £137 3s, railage and freight £447 12a, inspection fees £4O 19s '6d, cost of receiving at outside stations £97 3s sd. There was a balance to profit and loss account of £1372 8s 10d.

CHAIRMAN'S ADDRESS. The chairman expressed regret at such a small attendance of shareholders, which was very disappointing to the directors, who were submitting the most satisfactory balance-sheet that the company had so far produced.* Just prior to their last annual meeting three of the largest bacon concerns in the- North Island had amalgamated. They had tried to induce the Inglewood Company to join, but without success. He told shareholders last year that unless tho Inglewood ' Company was exceedingly careful, they might find the position not at all satisfactory. However, the year's working showed that noi&arm had resulted from the amalgamation; on the contrary, it had done them a lot of good (Applause.) There had been a larger increase of shareholders than had been the case since the establishment of the company, and a larger number of pigs had been received, due in great measure, he believed, to the amalgamation. As a result of the policy of amalgamation there had not been the same keen competition at either end, and the directors had therefore been enabled to do business on safer lines, and so put before shareholders better results. So large was the number of pigs received in the flush of the season that the plant was unable to handle them all, and the directors had consequently been forced to dispatch some of them elsewhere to be killed and frozen, the pork being returned to bo cured at the factory when there was less congestion. In order to provide against such a contingency in the future, as it was confidently expected that the supply would keep up, the directors had thought it wise to set up an auxiliary plant. In the past they had depended partly on water-power and partly on electricity, but were now installing an auxiliary steam plant. They had procured a 25-h.p. toiler and corresponding engine, which' would enable them to be independent of either waterpower or electricity or-.both, and also enable them to handle, a larger number of pigs than in the; past.- The policy of ,the company during the.past season had been to advance a reasonable figure on safe lines, with the.probability of having a sum in hand at the end of the season out of which to pay a bonus. That policy had been justified. They started the year with an advance of fid, which later was reduced to and maintained at 5d until the autumn. Unfortunately, owing to the action of a rival concern —he could not say which one—a buyer came into the district with a range of prices which were not fixed; he could buy as he liked, and the price was forced up. The directors accepted the challenge and put the price up to Cd. The other concern increased its limit and bought at a higher figure, so the directors further raised the price to 7d. Unfortunately for themselves, there were a number of shareholders who, at a time when the company wanted pigs for bacon, took them elsewhere and received an extra Vad, but dropped Id or l%d when the bonus was paid out. This was bad business both for the shareholders and the company, which could well have handled the pigs and could have done with the bacon, for their stocks were very low in the winter, and as a result they had lost a connection, which would not have been the case if the shareholders had brought the pigs. However, he trusted the lesson had been of such a [nature that in future they would have a iittle more confidence than they had l.s'umn in the past in their own concern, i During the past year the directors had I set up a manure-crushing plant, and had crushed all their manure, thus effecting ja considerable saving as compared with jthe method adopted in the past of getj ting it crushed elsewhere. If they could obtain larger quantities of manure the profits would be greater. The receipts . for this by-product had been satisfactory. ! Tallow had also proved very satisfacI tory when they had. been able to ship it. They had a large stock on hand, which, I when they were enabled to get it away, i ought to produce a satisfactory price. I He briefly touched on the need for adjclitional share capital.

He then traversed the balance-sheet, comparing it with thaj of the previous year. In addition to having raised the wages all round, the directors had established the policy of paying 10 per cent, war bonus. (Applause.) He paid a high tribute to the work of the manager and staff, whose work was exceedingly well done and who had been very loyal to j the company, many having been in its j employ since its inception, and he did not \ think any company could show a better record in this respect. Last year sales were £24,000, an increase of £4OOO on the previous year. This year they had jumped np another £9OOO, due not only to the increased output, but owing to the range of prices having been somewhat higher. Last year the directors reduced the insurance rate from Is to <Jd per pig, and had decided that it should bo Od this year, but if the results were not satisfactory it would be raised to Is next year. If, in the coming year, ,the company received fewer pigs, it would mean that the connection they ,i>ad taken years to build u pwould •suffer. lAt present they had-a fine connection as t»i Hi Imwsb „WM coawnad. and &

would be a thousand pities if it had to be cut down. Their products fetched as high a price as any in the New Zealand market, and they should endeavor to maintain the volume of their output. It was certain that the coming year would bo a difficult one in this respect, because \%o many factories had changed, or were in process of changing, from butter to cheese, whilst other factories were about to manufacture casein. This would tend to reduce the supply of pigs, and the directors would have to extend the sphere of operations as regards receiving supplies.

Prices were likely to remain high for some time. Food products showed a considerable shortage everywhere, and this applied to bacon as to other things. The outlook, therefore, was a very satisfactory one, and the company could And a ready market for all pigs brought to them to convert into bacon. He then formally moved the adoption of the report and balance-sheet Mr. J. Davidson seconded. Mr. Fabish deprecated increasing capital at the present time, as he considered the supply o£ pigs would decrease owing to so many factories changing from butter to cheese, and he thought the plant would be capable of dealing with the pigs available. The report and balance-sheet were adopted. ELECTION OF DIRECTORS, -a. There were three vacancies on the directorate, Messrs A. Morton, S. Topless and W. H. Were retiring. The two latter, the chairman remarked, had stated their intention not to seek re-election. He hoped Mr. Were would be prevailed on to stand again, with the understanding that he could resign later if the pressure of his own work became too great. Messrs J. Davidson, A. Morton, W. H. Were, and H. N. Skelton were aominated, but on the chairman pointing out that Inglewood district was already well represented on the directorate, Mr Davidson withdrew and the others were declared elected. On the motion of the chairman and Mr. J. Davidson, a resolution was passed placing on record the shareholders' appreciation of Mr. S. Topless' services as a director and expressing sympathy with him in his illness. Mr. T. C, H Nicholls was re-elected auditor. SHARE CAPITAL. The chairman moved that the share capital be increased to £20,000 by the creation of 8000 new shares of £1 each He pointed out that the whole of the share capital had been taken up, and that 500 new sharss had been applied for. As the company would not receive pigs from non-shareholders they would create a monopoly if they did not increase their share capital. Seven years ago, when they increased their capital from 0000 to 12,000, they asked shareholders to double' their holding, because they wanted the money; but this time they required the capital so as to be able to issue additional shares to present holders and new shares. The present share capital account was in a splendid state, more than the value of the land, buildings, and plant being paid up, and there was still uncalled nearly £SOOO, which would be paid up during the next seven or eight years.

Mr. Davidson seconded. Mr. Rumball suggested that the company should buy up shares. The chairman pointed out that there was no provision for this. Mr. Mcßeth predicted the Inglewood company would expand very much in the next few years. Mr. Were considered that new share capital was absolutely essential for the welfare of the company. There were a number of men in the Toko district anxious to supply pigs, and when shares were available fully 'SOO would be taken up .there. The company was not an

Inglewood concern, but a Taranaki one, *and had got to launch out.

Mr. H. N. Skelton said that a petition was coming forward from Okoke and Pukearuho districts asking the company to open a receiving station, and he considered they would have a larger supply than ever from those districts.

Mr, Harris (Waihj) spoke strongly in favor of the resolution, which was carried. GENERAL. On the motion of Messrs Davidson and Gernhoefer it was resolved to raise the directors' fees from 8s to 12s per meeting. On the motion of Mesßrs Mcßeth and Jones it was resolved to increase the chairman's honorarium from £SO to £75, there being only one ftssentient. The chairman, in his reply, stated that if there was me concern in Taranaki that he was proud of being connected with' it was Inglewood Bacon Company, of which he had been chairman sincn its inception. j Mr. Harris suggested that the company should arrange for a receiving station in the Urenui district. The matter was considered by the directors, who decided to visit the district to-day.