PATEA FREEZING COMPANY.

Taranaki Daily News, 19 September 1918, Page 6

PATEA FREEZING COMPANY.

ANNUAL GENERAL MEETING. | The annual general meeting was .held on Saturday afternoon. The directors' report was aa follows: The quantity of stock treated shows a decided increase in both sheep and cattle a 9 compared with last year. Particulars of killing are as follows: Season ended July 31, 1918: 12,698 cattle (1917, 9,980; increase 2718); 50,403 sheep and lambs (28,341, increase 28,122); 4 pigs (increase 4). The year's operations have been satisfactory, resulting in a net profit of £3674 18s 3d, after providing the sum of £2292 2s 9d for depreciation. This, together with the balance carried forward last year, makes a total of £20,398 7s for appropriation, which your directors proposed to allocate as follows: To reserve £14,000; balance to carry fordward, £6398 7s; total, £20,396 7s. The success of the company's operations is again due to your directors, who have rendered invaluable assistance in connection with the financial arrangements during the period of the shortage of shipping, which has enabled the farmer in all cases to obtain payment for his stock within a fortnight of killing date. In moving the adoption of the report and balance sheet the chairman (Mr W. D. Powdrcll) said they would notice that their business had considerably increased; they liad slaughtered 2718 more cattle than last year and 28.122 slieep, but he should say that they did not look for sheep the previous year. The reason for that was that they had to dry their wool in a paddock and sell their pelts green to speculators, and this put tilien. at a serious disadvantage with other freezing works that had their own fellmongery. Since Patea had its own fellmongery they set out to get all the sheep they could, and this accounted for the big increase. The reserve account was showing £20,398-ra very good reserve i.c so small a paid up capital, and this would be slip' tly diminished by the payment of a 10 per eent dividend and 1 per cent to the guarantors H these resolutions should subsequently be endorsed. But being by way of extra shares allocated, this would not weaken the company's financial position. Deducting asseti from liabilities, they would find that there was £2854 17s 9d owing on the works, but as against this had to be put stocks of tallow and tinned meats not yet realised, as well as tin-plate and requisites, and these should just about square accounts, so that thpy might safely say that they had now paid for the works and these works were worth £76.000. Divide that by £24,500 —the paid-up capital—and they would realise that they now had three times the vali"> of the money invested. the short period in which ithi9 had been accomplished and all the icireumstsnces it was an achievement unequalled in New Zealand, and it was all 'he more satisfactory because of the jfnei that the money, had hot been made lout of the farmer. The Pat»a Company had paid higher prices pr. lably than |other' companies for its stock, and no man could say that he got less for his etoek at Patea than he could have got elsewhere. The directors resolutely sex their policy against allowing the dealer to make use of the works; they made up their minds to purchase their own stock and secure whatever advantages there were, and that was the reason the works were in the position that they were to-day. Dnring the past year the company had allotted £4500 worth of ae.r shares, but of that amount only a little over £IOOO had been called "up. The company had spent in machinery £843 during the past year, and on buildings £10,543 during the same period, so that they had not done so badly with the £IOOO that shareholders had supplied. They had increased their cool storage capacity by 35,000 carcases; they had created a new tallow shed, new concrete hide room, concreted a large portion of the yards about the works; doubled their canning capacity, besides renewing a portion of the old canning building; put up a new concrete manure building, and other works. During the coming year the directors had authorised the expenditure of another £24,000, and this was largely for increased cool storage. Tie directors had decided upon adding further chambers during the coming year with a capacity of 45,000 carcases. They also proposed erecting the balance of their canning building in concrete; they had to complete the extensions to their manure building and had ordered a new drier. They were putting up a new building for an "oleo" plant, because they could then better grade their tallow, and get the refined product "oleo" away more regularly and at a far better price. They had now got far beyond their boiler power, and consequently they had had to order a new Babcock boiler costing probably £SOOO. The remainder of the yards about the buildings were being concreted, and a few hundreds were spent on new water supply. They were very short of power fo>> ail the electric motors they required, and the company would have liked another £6OOO or £BOOO to provide a proper electrical installation, but that would probably have to wait. The company's boat had proved a good speculation. She had always carried the meat and held it, if necessary, for a few days in Wellington in excellent condition', She had probably saved thousands of pounds as against what it would have cost to rail meat to Wellington and occasionally reharden it after the train journey.' He moved: "That the report and balance-sheet be adopted as printed, except that on the alteration of our articles and the confirmation of same that we pay 10 per cent on paid-up capital in shares out of last year's profits as per the amended articles as passed today: and also that the directors as well as the givers of guarantee bonds be paid in shares an amount equal to 1 per cent according to their share of the liability of the amount of £150,000, which amount was guaranteed to the Bank of New Zealand by the directors, and which amount was exceeded during the past season."

Seconded by Mr T. A. Bridge. SALARY OF MANAGING DIRECTOR. Mr H. Dickie remarked that he understood the directors had decided to increase the managing director's salary to £I2OO a year. He knew Mr Powdrell was a very busy man, and he (Mr Dickie) fully appreciated the services he had rendered to the company, and that the works had been largely built up to their present position by bis efforts. But he thought they were setting a high figure for a small freezing works when they paid a straight-out salary of £I2OO a vear. He considered a certain salary anil bonus would have been the proper course. , ~ , Mr A. S. Willa said that the directors did not consider this salary was a penny too much to pay to Mr Powdrell. He bad absolutely made tliese works, and incidentally made many thousands for the farmers. Tie directors had done viitly ia compromising Mr Powdrell s

now agreed upon, and lie knew of no man in New Zealand that tbey could get to manage their works i;> whom they could all place the same conliuciice as they could in Mr Powdrell. Mr Powdrell said that this was a mister he was quite willing that the meetling should decide. If they elected, to go back to the previous arrangement lie was quite willing to do so. If tn.y thought they could get a cheaper man in .New Zealand to manage their works lie was quite ready to stand aside. Thin was a matter for the shareholders; tlieM were their works, and if they thought they could make any arrangement that suited them better than the present no one could blame them for doing so, and lie (Mr 'Powdrell) would then be only too willing to step aside. They must remember, however, that under the original arrangement of £4OO a year and ■> per cent on profits he would probably receive nearer £2OOO a year in future than £I2OO, and in justice to himself he must either have the new arrangement #f £I2OO a year straight, out or the original bargain, lie had the financial responsibility as well as the management of the works, and he would not undertake the continuance of this solely for the benefit of shareholders and to liis awn disadvantage. j The chairman suggested that, as an j outcome of these remarks some shareholder might desire to move a resolution, but none were forthcoming, and the matter then dropped. The chairman's resolution was tlien put and carried. DIRECTORATE. The retiring directors, Messrs A. E. Syrnes, C. J. Hawken, and B. C. LysagJit ware re-elected unopposed. For the vacancy caused by the death of Mr A. S. Tonks, Mr Charming Tonks was appointed.—Abridged from Star.