BELL BLOCK DAIRY COMPAMY.

Taranaki Daily News, 23 August 1918, Page 7

BELL BLOCK DAIRY COMPAMY.

ANNUAL MEETING. The twenty-second annual meeting, of 'the tell Block Dairy Company was held on Wednesday night, when Mr J. 8. Council, Chairman of Directors, presided over a large attendance of s'larehoMors. Tbo balance sheet showed that receipt.? had been £54,73!) 13s lOd (cheese sales, and ia stock £50,748 IGs Ud, butter sales and in stock £3740 9s Cd, refund butter-fat tax £"21)1 Is J Oil, dividend Bos Co., £4O (is idi. The principal items of tbo expendiin • were salaries: .fJlSffi) 3s, interest and insurance £550 12s lQd, cartage £4OO •!« yd, fuel £SOB Os 4d, freezing and port charges £OIO 3s 9d, cases and boxes -ESI 7 2a sd, ractory requisites £1630 14s -id. repairs, renewals and additions £IOOS i :!s !)d, trade expenses £931). Depreciation written off totalled £039, and £I0(J0 had been placed as an investment fluctuation reserve. £31,585 Is 2d had been paid to suppliers. CHAIRMAN'S ADDRESS.

In moving the adoption of tlie report and balance sheet, the Chairman .stated that the Directors could consider themselves fortunate in placing suck a balance sheet before shareholders in a time of war like ilia present. .Last season had been a very anxious one for the directors and the position for the coming season looked grave. The need for more men and the loss by submarine made the shipment of produce very difficult, and but for the fact that the Imperial Government had purchased their output and agreed to advance on the produce in store, the position to-day would be far less happy. The geographical position of [New Zealand placed it at a disadvantage ill the marketing of its produce. Boats were diverted to nearer sources of supply. This would Lave been more joarived but that the Imperial Government, recognising the fine response that the Dominion had made, endeavored to give us every opportunity that offered foAhe shipment of our produce. Early in last season they were faced with shortage, and that meant serious loss to the producer. The works were full of produce and 20,000 boxes of butter were stored at Egmont Road, and 4000 to 5000 crates of cheese in the petroleum works, while some factories made their own arrangements to store in New Plymouth and elsewhere, and hero loss took place not only through shrinkage but through deterioration in quality. No relief was obtained until some of the produce was shipped and the now additions at Moturoa were completed. All stocks held m outside stores were got iuto works. Seventy thousand crates out of a total make of 130,000 crates of cheese were still at Moturoa. The directors of the Moturoa Freezing Works recognised the gravity of the position and the need for increased storage accommodation, and he outlined the steps taken to provide that accommodation. Bell Block held 49 shares and they had been asked to double the number. In order to provide the present accommodation their shares were doubled again, and a considerable amount of this money would have to be found within four months. In order to do so the directors had placed a certain amount to reserve. The supply of boxes and crates had also been of considerable concern to trus directors. The Egmont Box Company found it difficult to obtain bushmen, on. account of so many going to the war. It was therefore difficult to obtain dry timber, and in many eases givm timber had been supplied to companies, causing factory managers considerable trouble. Owing to the unrestricted export of white pine to Australia, it was difficult to obtain supplies from outside mills. Representations had been made to the Government, and recently partial restriction had been -made, so as to provide for local supplies, and the position should be bettc-r next season. Mr Connett referred to the sale of cheese to tlie Imperial Government on lines already published. The directors considered it prudent policy to withhold the balance of the pay out. The housing of their employees, always a difficult problem, had been more acute during war time, and the directors had found it necessary to erect houses at Bell Slock and Hillsborough. Mr Connett touched on the recent excitement over dried milk, and detailed tile steps leading to the appointment of a committee at 'Hawera to obtain information on the subject. He was satisfied there would be no chance of doing anything this season, though it was thought that those who" made a start would reap 3s (Id per lb butter-fat straight off. As far as he could see the sugar of milk proposition would be the best from a cheese factory point of view, as it was extracted from whey, whereas dried milk was necessarily an adjunct of a butter factory.

Traversing the balance sheet, he pointed out that the output had increased during the year by 09 tons, whica was due to the increased number of suppliers, who had taken up 1100 shares. The make per lb of butter-fat had decreased, but this was explained by the increased test. The directors, in pursuance of their generous policy regarding depreciation, had written 20 per cent oft' the old butter factory, and 50 per cent oIY the motor lorry. The present, while the pay out was good, was an opportune time to provide for depreciation. Cartage showed a decrease, due to the fact that the lorry had earned £240 by carting outside the factory work. Boxes and crates had advanced in price by a penny during the season, but this year would show a big increase, as crates were to be advanced from Is 4}d to Is od, and butter boxes from Is lid to 2s fid, and these prices were considerably under wnax outside linns were charging. Repairs and maintenance appeared a bi<* item, but a considerable portion was due to the installation of new separators at each factory and also a dam at Hillsborough. Factory requisites had increased considerably, due to (he extra output and the phenomenal rise in price . Whey butter showed a considerable increase, but some of this was due to the fact that some balances due on last year's sale were included. He referred to the manufacture of rennet by the manager, which had effected a considerable saving. He then moved the adoption of the report and 'balance sheet. Mr W. James seconded.

THE DISOUSSIN. Mr Xing considered the payment, for the extra accommodation at i,hc freezing works should be deducted from the current year's supply, and not from last year, as the accommodation was being provided for this year and some of last year's suppliers might not get the advantage of it this year. The chairman stated that the district was a stable one, and it was felt more to make the necessary provision as early as possible.

Mr C. Wyfttt thought the factory was overstaffed.

The chairman pointed otii that the di-reetoi-s endeavored to keep the best men ithrongh the winter, so as to have them available in the summer.

Mr 0. Wyatt asked whether it paid to cart for outsiders.

The rbairmaa considered it did. Mr M'vatt also wanted further inform, aiion ahout the purchase of the land, stating that lis had. heard the directors wore offered a section free. 'ihe chairman stated that the two acres had cost £230, including cost o1 transfer, etc. He hud not heard of laim that had lieen offered free. The directors had fcsen trying to procure land for aomo time-

In reply to Mr Ogle, the secretary staled that it cost O.Ofd to manufacture a lb of cheese in the factory, or :I.2Td to f.0.'11.

Mr Kins considered that the directors had lwt'.too liberal in the amount written off For depreciation. It was right to 'he on the wife side, hut ho considered the amount written oft was in the interests of the farmers who intended to live and die in the district and not in the interest of the migrating farmers or sharemiilkeivs. The Company had done very well in paying off its cheese factory in two years .

Mi" Rundle did not consider the placing of lOs premium a share capital a fair proposition.

The chairman pointed out that suppliers had written off the cost of the new factory m two years which new suppliers obtained the benefit of.

Tn reply to Mr King, the chairman stated that there were only two dry shareholders, one of whom was at the front and would probably supply on his return.

Mr King stated that he did not favor payment of interest to dry shareholder* -and suggested that the 0 per cent paid be reduced to 3 -per cent. After further discussion, tlie report and balance sheet was adopted.

OIMERAL. The chairman stated that it Was proposed almost immediately to build a Iwuse in concrete for the manager on one o- the sections recently purchased. Mr King considered that its erection should be held over until times were normal arid the cost of construction had decreased.

,ln icply to Mr. M'Beth, tiie chairman stated that the contribution to the Agricultural Education was £27 last year. Mi Mcßetk thought they liad paid too (.early. He did not know of any country in which agricultural education was made a direct tax. The Government should taie the matter up. The chairman stated that Mr Browne had visited Bell Block on occasions when very few had turned u».