RAHOTU DAIRY COMPANY.

Taranaki Daily News, 1 August 1918, Page 3

RAHOTU DAIRY COMPANY.

ANNUAL MKKTINQ. The eleventh annual moetiiijf of the Uahotu Dairy Company was lield in the Public- Hall, Rahotu, yesterday alternoon, Mr. \Y. 0. Green, chairman of directors, presiding over a good attendance of suppliers. RETORT AND BALANCE-STTEET. ' The report showed thai satisfactory results had been obtained, having regard to existing conditions.. The realisation of consignments nut sold on the closing of accounts last year fully justified anticipations, and enabled a further payment of 7-Sd per pound on butter-fat supplied during the year iftlG-17. Jhiring the year 1017-18, an advance has heen made of Is 3d per pound on butter-fat, and there remained a sum of £SSGI 14s <ld. Out of this the directors have applied £270 13s 8d to provide for depreciation of the company's factory and plant, and have set aside £l4O 7s 7d pay interest at 5 per cent, on fully-paid ehares, leaving a balance of £5438 13s Id. The directors proposed a further payment of 3d per pound on butter-fat over the whole season, absorbing £3ICG 2s lOd, and leaving £'2272 lis Id to be carried forward, out of which further payments equal to 2d per pound on but-ter-fat will bo mado from time to time as finance permit?, equalling £2llO 14a Sd, and leaving a balance of £lOl 163 sd. This will make the actual payment Is 8d per pound on butter-fat, in addition to interest on fully-paid shares. The directors have lot a contract to extend the curing room at the factory and provide reasonable packing accommodation. This addition should be completed in time for the opening of the new season. The directors have not lost sight of the question of water power, and negotiations have taken place, as a result of which the company has agreed to acquire the freehold of three acres adjoining the present factory site, which should bo shortly completed, and on. the acquisition of this property it will be possible for the directors to proceed with the matter. The following statistics were given:— Milk received (cheese fi,l»S, 6021b, butter I9fl,ttr2ll>), G.337,<mib: cream received, 11,5211b; butter-fat (cheese 240"47fb, butter 53941b, cream whilst chcese-malc-ing 414811)1, ?33,23!>U>; average test, 303; chce.«e mado (salo weight), 587,10611); butter made from starter, whey, cream, and second grade milk, 2G,7-27!b; butter. making ('butter made), 10.0111b. overrun, 19.0 per cent.; average price received per pound butter, l s 4d; average price advanced per pound butter-fat, ls Sd; official average grade (whey butter), 85.5G-: official average grade (cheese), 83,60.

In moving the adoption of the report, the chairman stated that he estimated the shrinkage due to the lack of storage !\ceommodation had cost theßabotu Company last year £IB6O. It was hoped that this would to a great extent be overcome next year. Regarding the payment of the additional share capital in Are Freezing Company, lie suggested that fchi s should he done either by issuing additional shares or by stopping %d per pound froin suppliers, and he favored the latter method, which would realise about £SOO per annum. The finances of the company would not permit of the final payment being made at present, but this Was due to the company having laid in a heavy stock of requisites. He briefly traversed the balance-sheet, showing that the greatest increase had been made m requisites. Mr. G. It. Tvlee seconded

MANAGEMENT CRITICISED. In reply to questions, the chairman stated that he estimated the shrinkage at from 5 to 6 per cent, above the Government allowance of 2h per cent. In one instance the shrinkage on 200 cases was half a ton.

In reply to Mr. T. Willcox, the chairman stated that the cost of the additions at the factory would be under £SOO.

In reply to Mr. Terrill, the chairman stated that he estimated the yield of cheese per pound of butter-fat at 2.-57. Mr T. Willcox considered the present balance-sheet was one of the most hopeless examples of inefficiency he had ever Seen. It showed that the company suffered from a desperate disease and required a desperate remedy. The chairman either could not or would not reply to certain questions. The chairman: Can you tell me any question that I have not answered! Mr Willocx: You could not say what was the credit balance at present. The chairman: £540. Continuing, Mr. Willcox said the final payment on the previous season was not made until March, whereas other companies had made final payments in December. Suppliers' money should not be utilised to make temporary arrangements for finance. He' considered that the yield of cheese had not been mentioned, because it was very low—only 2.43.

The chairman said that the sale weight was 2.44. whereas the yield was 2.57. Mr. Willcox =aid that the difference between the 2.43 yield and an average yield represented a pay of 2 l-3d per pound, and that was largely why the factory could not finance. Most factories were paying out l s 9d, whereas Rahotu was bavin? out ls Od, and promisin" more, lie also considered that the cost of manufacture, which he estimated at £l7 10s, was excessive, and he compared this vvith the cost of.a factory, with about half the output—viz., £lO 7s. The remedy was to appoint a board of directors who would" go to the root of the trouble.

Air. Oibson defended the directors ajid twitted the previous speaker with exuberance of verbosity, took exception to the remark regarding the hopeless example of inefficiency, and said he had done his beat in the interests of all the suppliers, He urged suppliers to see that the milk supplied was clean, pure, and good. The yield, he continued, compared favorably with the average yield. Their cheese had all graded first grade, after being stored iu the oil works for somo time.

The chairman stated that the butter had been much better last year than ever, nearly the whole being first grade, a credit to the factory staff. There was no third or fourth grade cheese. All went through well, save when they put some through a private store in Nnv Plymouth and 500 crates came out second gTade. Had the cheese been kept in the storage available at Buhotu, it have deteriorated muoh more. Tie chairman also stated that the directors had taken their butter into account «t the price at which it was sold, and there would probably be a, further bal-ance-sheet.

In reply to a question; the chairman jrtated that prior; to the. war the, esti-

mMe nf fo-.t of providing water power was .C 471, but it would probably be .CIOOO now. There would lie a saving'of about £l,")fi per year. The report and balance-sheet were adonled.

ELECTION OK DIRECTORS: For the three vacancies on the directorate there were six candidates— viz.. P. James, Q. R. Tylee, D. R. Wright (retiring directors),' T. Willcox, Maw Hill, a ,,d 0. H. Field. The election resulted:—P. Jame s lOfi, T. Willcox CO, G. R. Tylee. 54 (elected), D. R. Wright 45, Mars Hill 4S, C. H Field 26. Mr. C. T: Mills was Te-elected auditor.

GENERAL. ■Mr. Gibson moved that 1 /, d per pound on butter-fat be deducted next season and placed to a reserve account in payment of the additional shares (£700) required to be taken up in the Moturoa Freezing Company. This was seconded by Mr. Lawn.

'Mr. Willcox moved that the £l6l to be carried forward should 'be utilised for further depreciation, or as a set-off against the Box Company's shares. This was seconded by Mr. lawn and lost-

A vote of thanks was unanimously accorded the manager and staff for the wrk done during the past year.

A hearty vote of thanks was accorded Mr. J). R. Wright (retiring director) for Iris services in the past. At the conclusion, a special meeting was held for the purpose of altering the articles of association. Mr. A. H.Johnstone, solicitor fcr the" company, was present, and explained the alterations. There was considerable discussion, and, after an amendment providing that the directors should all retire annually and be elected for one year, instead of three years as at preterit, hod been defeated, the alterations were passed.

At a subsequent meeting, Mr. W. C. Green was re-eleoted chairman of directors.