TARANAKI PRODUCERS' FREEZING CO.

Taranaki Daily News, 2 September 1918, Page 3

TARANAKI PRODUCERS' FREEZING CO.

ANNUAL MEETING, The seventeenth annual meeting of the fnrauaki 'Producers' Freezing Works Company was held at the Soldiers' Club. New Plymouth, on Saturday afternoon. Mr. A. Morton, chairman of directors, presided, and there were l present repre- | sentatives of the Bell Block, Cape l\g!mont, Cardiff, Eltlnm, Frankley Road, Kaponga, Kaimata, Lepperton, iUoa Farmers, Mangorei, Maketawa, Ngaere, North Taranaki, Omata, Okato, Okau, Palua, Raliotti, Stratford, Tariki, Tikorangj. Tututawa, Uruti Vallev, Warea, Waitara, Waitoitoi, and White Cliffs Dairy Companies. REPORT. ' The report stated that the year commenced with a balance in si ore of 20,803 boxes of butter and 15,803 crates of cheese. Of butter there were received during the year 117,032 boxes (being a decrease on the previous year of There were shipped overseas j 123,275 boxes, and 10,000 boxes were disposed of within the Dominion, leaving in store on 30th June, 1918, 9804 boxes. Of cheese there were received during the twelve months 132,99G crates (being au increase of 21,899 crates on the previous year). There were shipped overseas 70,058 crates, and 325 crates were disposed of locally, leaving in store on 30th •June, 1918, 71,516 crates. During the earlier part of the season the new cheese store was completed, but, unfortunately, it proved to be of insufficient capacity to meet the continued shortage of shipping space. The directors therefore authorised a further addition to be erected to the original works, and, with the sanction of the shareholders, have arranged with the Taranaki Farmers' Meat Company, Limited, to erect further butter and cheese accommodation at Smart Road. It is anticipated that ample storage will be available during the coming season for the requirements of the company. The profit and loss account shows a credit of £l3Bl 10s sd. The_directors recommend that a dividend of 5 per cent, be paid on shares fully paid up to 30th June, 1917, and that the balance be carried forward.

CHAIRMAN'S ADDRESS, In moving the adoption of the report and balance-sheet, the chairman congratulated shareholders on the exceedingly satisfactory year that had been experienced. When they met tivelve months ago arangements had just been completed for the erection of very large additional storage, as it was anticipated that owing to the congestion of shipping the available storage would not be sufficient. At the time it was not proposed to complete the building, in as full a manner as was afterwards done, when it was considered necessary to expend a large sum of money in order to insulate it and enable the cheese to be kept at the required temperature. The building as completed was very satisfactory, and be did not know if there was a finer cheese store in the Dominion. Owing to it. being necessary to sink 27 feet' to"obtain foundations there had been delay in its erection and also additional cost. The building had been full from floor to ceiling and had stood the test well. Later, it became quite evident that it would be necessary to make further additions if they were to provide sufficient accommodation ioi* shareholding companies, and the capital was doubled. A proposal was put forward for additions at Moturoa, but, before it was confirmed, negotiations were entered into, and were approved by the shareholders, whereby the Producers' Freezing Works Company agreed ot take shares to the extent, of £2.">,000 in the Smart Road works in return for a certain amount of accommodation. That building had been in course of erection for some months, and would lie available for use before the of the season. The directors, recognising that that would probably not be sufficient accommodation, decided to erect further accommodation at Moturoa, and had acordingly made arrangements with Julian & Sons, who built the previous additions, to erect a building capable of storing 10,000 crates, and | this would be ready in abiout two months. The directors recognised that it was desirable only to go as f;ir as their freezing power wpuld permit. They had somewhat departed from their previous policy and had not confined the building to two storeys, but had elected it in three storeys. It took up the whole of their ground to the west of the main building, so tiiat any further additions would have, to be ltuide either at the back or the eastern end. They had found it exceedingly satisfactory to engage Messrs Julian and Sons on a percentage basis, as that firm had command of plenty of material and men and were ibie to expedite the work. These additions and the accommodation at Smart Road, the directors were confident, would be ample to meet the requirements of the season provided they got any reasonable quantity away. At June 30th there were in the works 71,511 i crates of cheese and 9864 boxes of butter. The latter was immaterial, as the bulk of it was used for local consumption, and at present there were 3134 boxes in store. On nearly 3000 the Imperial Government had given advances, and this, would probably be shipped within the next month or so. The cheese had been reduced to G2,451 crates, and they had received advice that a further 9000 crates would be shipping on Tuesday. The directors were of opinion that, provided they got facilities for the shipment of cheese equal to those of last year, and were able to get the works clear of last season's cheese at the some time as last year, or even a little later, and also got away some of the new cheese, there would'be no trouble in finding accommodation for the whole year's produce. The quantity of butter received exhibited a decrease, showing that there had been further extensions'in the number of factories that had changed from butter to cheese. There was an actual decrease of 23.6G0 boxes of butter, while cheese showed an increase of 21,89S crates, the total quantity of cheese received being 132,090 crates. This showed that the northern part of Taranaki district was now largely engaged in the manufacture of cheese, as compared witli a few years ago, when it was practically wholly devoted to butter. Comparisons of the balance-sheet with the previous year showed very considerable increases in the cost of running the concern, in some cases the increases being astonishing. Coal had increased from £827 0s 4d to £1315 14s 2d. This was dne to the fact that they had to hold very considerably increased quantities of butter and cheese and had to pay a hinder price for their coal, which was not of the same fq&lity as previously. Twelve months agv Vaijiad stated that they were endeavoiSsjv obtain electric motors, but thougfl fcuey had ordered these in May, 1917, ?wy had not yet been able to get deliWy. The directors had endeavored to el pdite the agents, and had enlisted ths the

Minister of Munitions, who had approaehed the British authorities in,' America. The installation of electric.' motors was vital, especially in view of J the probable difficulty in the supply of coal. Matters in connection with the ! coal mines were not too good. At presI ent they depended entirely on coal to run their works, which, at times, held very considerable quantities of dairy produce of very great value, and it was imperative that they should have some other power than coal available. He hoped, with the assistance of the British authorities in America, to obtain the motors, which would do away with the necessity for a lot of coal. It was impossible to state the cost of the electric power, but he was confident there would be a large saving. One boiler would shortly require renewing, and this made it imperative to have electric power as scion as possible. Wages showed an increase from £3630 to £4543. This was a reasonable increase in view of the extra quantity of produce and the reasonable increase in wages. Charges showed an increase from £Bl2 to £1943. This was largely duo to increased cost of shipment, because the company had the opportunity of getting large shipments away provided they paid special charges for detaining the liner at Wellington, and the freight by the coastal steamer. The directors decided to meet the shipping company in this respect, as they considered the securing of the shipping space most essential. As the company was in a good financial position, it was deemed advisable to write off 5 per cent, depreciation on all buildings, including the newlv-erected stores, and 10 per cent, on machinery, including recent additions. All the alterations to the sidings had been charged to the year's working, this being deemed advisable owing to the fact that though the company had to pay for tliem the railway sidings would never belong to them.

It«had been found necessary during the year to store temporarily in premises outside their own works, and they had stored in the iron building belonging to the Petroleum Company. Though not of the best, this accommodation was better than some classes of store that had been used during the year. The company had had electric fans installed, and had thus been enabled to keep the cheese well. This iron building was a well constructed one, and, with the assistance of the electric fans, was found fairly satisfactory, and no complaints had been made with regard to the storage. It was, moreover, only a temporary measure, and as soon as possible the produce was either shipped or removed to the works. Though a reflection had been cast on them regarding the use of a "tin shed," he considered that in the interests of the industry the directors had acted wisely. The produce had not deteriorated, owing to the excellent care taken of it by the manager and his staff. In. order to assist their finance the company had taken advantage of the Government's loan of £7500. In liis opinion the outlook was no worse than it was twelve months ago. Though they saw statements in the press that it would be very bad, these were usually qualified a few days later. Advices from the National Dairy Association agent in London were not in t.u,v way discouraging, and the probability was that shipping facilities would be equally as good—if they eould be called uood —as last season. If that were so, taking into account the large additions at Moturoa and Smart Road. the. present position of companies at their end of Taranaki was entirely satisfactory. After referring to the harbor proposals (reported elsewhere), Mr. .Morton formally moved the adoption of the report and balance-sheet.

Mr. .T. S. Connett, in seconding, said that the producer at this end of the world had a lot to be thankful for that the Imperial Government had purchased their produce and made advances against it. Some companies considered the extra expense of the additional accommodation a very heavy expense,' but he considered it a very small one, the whole additional amount being equivalent -o 3 per cent, shrinkage on cheese, or onethird of a penny, and on butter not more than three farthings, and if they wiped off the lot it would not amount to much, in view of the increased prices during the war period. They should look on the money as being well spent in providing additional accommodation and should be prepared to find the money. THE DISCUSSION. In reply to Mr. Green (Raliotu) the chairman said that shares had been allotted to provide the necessary capital to pay for the shares in the meat works. Dairy companies would be asked to pay £2 per share in September, and £1 per share per month for eight months. Mr. R. H. Peppercll congratulated the [company on its successful year, and also the chairman on his lucid address. He considered, however, that the company was running close to the wind in keeping its coal stock down as low as £35. The chairman stated that a considerable quantity had been ordered for some time and came to hand the day after the books closed. He stated tiiat the Government had also commandeered a shipload for railway purposes, which hud been intended for private owners. The chairman stated that Mr. J. S. Connett and J. Brown had been appointed to represent the Producers' Company in the Smart Road Company, and, in addition, on the directorate of the latter company were Messrs M. Fleming, W. R. Wright, A. B. Gamliu, una himself, all directors, of dairy companies, whose interests, therefore, would be well safeguarded. The motion was then carried.

ELECTION OF DIRECTORS. For the two vacancies on the directorate there were three nominations, and the election resulted: J. S. Connett 77, R. Dingle 40 (re-elected), S. Topless 31. The chairman stated that Mr. J. Burgess intended to resign from the directorate, and the directors would like an indication as to whom they should appoint, pointing out that Mr.* Burgess had represented . the coast. Messrs M. Fleming (Cape Egmont) and J. Wooldridge (Okato) were nominated, and a show of hands was given in favor of tie former. Mr. W. C. Green (Rahotu) declined nomination. Mr. C. S. Rennell was re-appointed auditor, the fee being increased to £ls 15s. GENERAL. _ The chairman expressed his appreciation of the excellent way in which the manager (Mr. Morrison) and staff Imd carried out their duties during the past year. He also paid a tribute to the work of the secretary, Mr. V. Elliott, and they were accorded a very hearty vote of thanks. In response to a query re bonus, the chairman stated that the salaries had been increased 20 per cent. The chairman was voted an honorarium of £SO.