DAIRY FACTORIES.

Taranaki Daily News, 27 August 1918, Page 7

DAIRY FACTORIES.

.-•■ L •• : MANGATOKI. The eighteenth annual meeting of shareholders of the Mangatoki Co-op. Dairy Company was held in the Mangatoki Public Hall on Friday, Mr Jacob Mari), chairman of directors, presiding. There was an attendance of thirty odd shareholders. The balance-sheet showed butter account receipts £10,109, cheese £88,991, whilst on the expenses side butter boxes and crates accounted for £207&; freezing charges £lOl3, rennet and pepsin £4BB, firewood £477, coal £Ol6, and other sundry items, making' a total under charges account of £7385; wages amounted to £4560, maintenance £260, cartage £640, railage £964,. insurances £824, and depreciation £2OOO. Assets, including land, buildings, plant, stocks in - hand, shares in other companies, amounted to £40,863 4s Bd. Liabilities were made up of share capital, £18,340; Bank of New Zealand, £8285; sundry creditors, £1932; and sundry suppliers (June account), £SO77. . hi moving tho adoption of the report (aJready. published) and balance-sneet the chairman mentioned that the supply of milk had gone down slightly during the past year owing to several farms having gone into grazing, as a consequence of men being away at the front and labor conditions. Throughout the year the average test, 3.84, was the highest they had so far had. To the balance of £9220 shown in the balancesheet had to be added £4500 yet to be received for cheese, and probably £I2OO, storage earned at their new cooi store. Mr. Astbury: Does this £I2OO mean an absolute clear payment for the use of our store? The Chairman: Yes. Continuing, he remarked that it would probably be nearer £ISOO. He then reviewed in detail the items in the balance-sneet, and pointed out that their stock of requisites appeared to be high, for the reason that stocks had to be bought whenever possible, sometimes at double, treble, and quadruple pre-war rates. The company's final pay-out would probably bring the total to Is 9fd for the past season, and he might mention that en comparing three companies (Jolls, Mtham and Mangatoki) and calculating on an average test, it was remarkable that in these three companies, with a total output of nearly 5000 tons, worth half a million of money, their pay-out would be within the small fraction of a farthing of each other. This indicated that the conditions under which they worked were very similar, and last year the difference was simply due to the luck of these factories who manßged to get away earlier shipments for which they got 5d per lb fat better than the Government price. The past year had been a strenuous one. and in regard to their new store, although those factories that had so far held off building were better off, if the war lasted much longer the position would be reversed. It had been said: Why should not the providing or tho necessary storage have been left to Patea and Moturoa? These places sad done all that was possible, but it proved insufficient, and the coarse the Mangatoki directors had decided upon had proved to be the correct one. So far as the future was concerned the shipping prospects were as had as possible. Tf the war continued for another year or two double their present storage accommodation would be required. Mr McGuinness seconded the motion. Before any questions were asked or a discussion took place, he would like to move that the action of the directors in voting £lO 10s to the Plunket Nurse Car fund and £SO to King George's fund for disabled sailors, be endorsed. —Seconded by Mr Astbury and carried unanimously Mr McGuinness further moved that the directors' action in building a new store be endorsed. ,So far, he understood, that store had already earned about a quarter of its capital cost, and when conditions became normal again, it would be put to »ood use and would last for all time. —Seconded and carried unanimously.

Questions were then asked in regard to the amount—£23s 8s 4d —for butter supplied to employees. Was it not higher than usual? The secretary, in reply, said that the increase this year, ns compared with last year, was due almost entirely to the increased value, and employees were charged at exactly the same rate as suppliers. Mr McGuinness referred at some length to Tumors that ex-employecs had been supplied with butter and requisites free of cost, but the secretary gave this an unqualified denial. In reply to questions, the chairman said 'hat of the amount of £IOOB lCs credited aa paid-up capital in the West C'oast Refrigerating Company, all but £l5O of that had been added out of profits declared by the West Coast Company. Tn regard to the £392 worth of shares in the South Taranaki Steam Ship Company, this was paid in cash ten years ago. Mr Perrv desired to know if it would not be wise for the Mangatoki Company to provide extra accommodation at their own factory rather man be a party to further expenditure at Patea. Mr Pease replied that when times were normal the Government graders would not continue to come around to the various cool stores erected liv the dairv companies. They had only asreed to do so now under pressure, and because of the abnormal conditions, and even now thev did not want foo many cool stores about, because,- they have not (he graders to spare for tlieni. In the case of Patea and ITawera. (he position was somewhat different. Cheese would be sent to Patea works until they were nearly full, and then Ilawera would be used, and vice versa, and this arrangement assisted the Government In reply to further questions, the chalrinfln said that it was true that some, of tl,.'v Bacon Company buyers had offered differential prices and conditions for nigs, but as soon as tlie fact came to the knowledge of directors, it ceased at once. So far as the Rennet Company' was concerned, arrangements had this year been made to have all the veils treated at Mangatoki wv "Tr Cooper; rennet made from veils bought by the company woul be retained for tlie company's own use. and the balance would be paid for bv the Rennet Company to the Mangatoki company. It was decided that the Mangatoki company should pay suppliers trie mme price as last year, viz., 5s each for firstcln«s veils. Mr Asthurv drew attention to the amount of depreciation shown in this year's balance-sheet, averaging from 20 per cent, off thfir wooden building's down to SJ per cent. Tn past years they had regularly written ofT from 7J' per cent to 1(1 per cent., and considered this sufficient, especially in view of the

fact that the company's land had never been appreiated in their book values. Such large sums as were deducted this year meant lessened pay-out per lb of butter-fut. The chairman said that the position ■was fully discussed by the board, and the directors unanimously decided on the depreciations shown this year, considering it wise to keep their assets at sound values. Reference was made by Mr Astbury to the loss of a large supplier at jviatapu, allegedly through the unsatisfactory distribution of whey, and his failure to get consideration and courtesy from the manager. Another speaker mentioned a similar occurrence at another branch. It was contended that the managers, if they desired to properly safeguard the company's interests, must be courteous and tactful. The chairman replied that if these eases were properly laid before him or the directors they would be thoroughly investigated and properly dealt with. ELECTION OF DIRECTORS.

The three retiring directors, Messrs Marx, Pease and Anderson offered themselves for re-electioD. In addition, Mr McGuinness was also nominated. The chairman explained tliat it was an unwritten law that each branch should have a representative on the board, and that therefore Mr Anderson should really be returned unopposed for Mahoe, but this could not be done, and they had to go through t.he formality of an election, so far as he was concerned. That left Mr McGuinness, Mr Pease and himself to contest two vacancies for Mangatoki. Mr PeaJe was chairman of the West Coast Refrigerating Company, and held the future of their produce in his hands. He was also a director of the shipping company. So far as he (Mr Marx) was concerned, he had made up his mind to retire this year, but the directors unanimously requested him not to do so in view 1 of the momentous questions ahead of them. Mr McGuinness had as good a right as anyope to seek election to the board, and there was no one on the board that could not be done without. At the same time he thought it only right to say that he (Mr Marx) had always given the business of the Mangatoki Dairy Company precedence over his own private affairs; he was one of the Cheese Selling Committee for New Zealand, and he was also a director of the Bacon Company, in which this co'xipany had large interests. He did not mention these matters with any thought of gaining an advantage over Mr McGuiriness, but merely that shareholders should properly understand the position, and so acpept the full responsibility for their vote. The election resulted as follows: Mara 455 votes, Anderson 408, Pease 406, McGuinness 134. The first three were duly declared elected. On the motion of the chairman it was resolved to pay interest on shares at the rate of 5 per cent per annum.— Star.

KAKARAMEA. The annual meeting of shareholders of the Kakaramea Co-op. Dairy Company was held on Thursday. r A. Pearce, chairman of directors, presided. The directors' report stted: The amount at credit of appropriation account is sufficient to pay a bonus of 3Jd per lb of butter-fat, and with the payments already made, will make the total for the season Is 8-sd. The destruction of the factory by fire in December last was a severe blow to the company, the loss, over insurances, being about £2358 —equal to 3y 2 d per lb of butter-fat. It was anticipated that the new factory would have been ready for operations at the commencement of the season; but owing to unavoidable circumstances, the erection has been much delayed, and it is very doubtful if the place will be ready before the middle of September next. Statistics attached to the report for the year 1917-18, gave the fololwing information:—Lbs milk, 3,383,815; but-ter-fat, 147,518; cheese, 391,181; average test, 3.75; milk to cheese, 10.05; cheese to butter-fat, 2.65; 174 tons 12 cwt 2 qrs 24 lbs. The chairman, in moving the adoption of the report and balance-sheet, referred to the disastrous fire which destroyed the factory in the middle.of the season, and paid a tribute to the neighboring companies who came to their assistance in taking in their milk. Mr Tarrant seconded the motion, which was carried. In reply to a question, the chairman stated that the directors would consider the matter of a store after the new factory was completed. For ths three vacancies on the boarcl of directors, Messrs A. Pearce, ,T. T. Dwyer, and W. McDonald were elected. An honorarium of £SO was voted the chairman. In thanking the meeting for the vote, the chairman stated that he intended handing the money back to the company.—Star.