DAIRY COMPANIES.

Taranaki Daily News, 29 July 1919, Page 7

DAIRY COMPANIES.

ANNUAL MEETINGS. OKATO-PUNIHO\ The fourteenth annual meeting of ine ukatoPunlho Dairy Company was held In the Okuto Public Hall on Monday, when Mr. J, Vt'ooldrldge (chairman of directors) presldod over a good attendance of members. KEPORT AND BALANCE-SHEET. The annual report stated, lnier alia: We regret to have to report a further decrease In output, and, as several farms have changed hands recently to sheep-farmers or graziers, the output will be still further reduced next season unless suppliers make every effort to Increaso production. Wo regjet the loss of our late manager (Mr. J. McLeod) during the inttilenza epidemic, and Mrs. McLeod and family have our sincerest sympathy. The epidemic hit. this company very hard, and It was only under the greatest difficulties and expenso that the factories were ltept open. During the year the fallowing quantities of milk were received at the factories: Kalhihl: 4,026,891 lbs milk; H 9,685 lbs butterfat; 8.71 average test. Punlho: 3,695,738 lbs milk; 146,705 lbs butterfat; 3,96 average test. Leithi 2,353,466 lbs milk; 89,762 lbs butterfat; 3.81 average test. The cheese made totals 407,478 at Kalhlnl, 882,817 at Punlho, and 235,850 at Lelth. The yields were; Kalhihl, 2.72; Punlho, 2.81; Lelth, 2.62. Averago, 2.65. The average grades for the season were: Puniho, 91.16; Okato, 90.84; Lelth, 90.75; average, 90.92. After writing off £262 19s for depreciation, and sotting aside £SOO from 'profit and loss account to reserve account, there is a credit balance of £10,809 18s lod. Your directors recommend that this bo allocated by the payment of a dividend of 5 per cent, on all capital paid to 31st May, 1918, amounting to £221 13s sd, and a further payment to suppliers of o%d per lb of butterfat supplied for year ending 31st May, 1919. Making the total pay-out Is lO'/id and 5 per cent, dividend, equal to an average payment of la lOftd per lb of butterfat supplied, and leaving a balance of £164 17s 9d to be carried forward or otherwise dealt with. Owing to Increasing cost of fuel, attention la being directed to the development of hydro-electric power. TABLE OF QUANTITIES AND AVERAGES. Following are the quantities and avenues, compared with tho previous season tin parentheses) : Number of suppliers: 48 (00). Milk received: 10,076,08511 m (10,064,0401b5). Butterfat: 380,1541bs (415,7051b5). Cheese made: 1,026,1301bs (1,062,4081b5). Lbs milk per lb cheese: 9.831bs (lOlbs). Lbs cheese per lb butterfat: 2.65 (2.55). Average test: 3.83 (3.89). Average price per lb butterfat: 22% d (21 l-10d). Average grade tcheese): 90.92 (90.7). THE BALANCE-SHEET. Tho balance-sheet showed that'choose sales had tutallod Eli.aos tig Bd, and butter sales, £ll4B 19s Od, The principal items of expenditure were: Factory requisites and goods, £3O3J lis 4d; salaries and wages, £2128 la Id; cartage, £932 4s Id; fuel, £793 18s Ud; repairs and renewals, £374 3s; insurances, £390 13s lOd; freezing and port charges, £536 10s 8d; trade expenses, £173 10s 6d; interest, £lsl 9s 9d. Tho sum of £25.787 IPs lid had been paid to suppliers, £262 IDs depreciation written off, and £SOO placed to the reserve account; balance, £10,809 18s lOd. CHAIRMAN'S ADDRESS. In moving the adoption of tho report and balance-sheet, tho chairman congratulated shareholders on the pay-out, which was the highest in the history of the company, it was not quite so much as that of some of the neighboring factories, but he thought It was just as good as other factories similarly situated with branches. The chief cause of the lower pay-out as compared with other factories was the reduction lu the quantity of milk received. A number of large suppliers, representing liOO.oooibs of milk and 36,0001bs of cheese, had left tho company, and the outlook in this respect was not too bright, as a number of other farms had changed hands and would be grazed, it therefore behoved present suppliers to do all they could to increuse the production uf their farms, because this wus tho only way they could increaso their pay-out, as the overhead churges In handling the greater quantity of milk would proportionately reduce tho cost of management. Expenses had Increased pretty well all round. Cartage showed an Increaso of £225. The company, with W.irea, had gone !u for a molor lorry, off which they had depreciated £:jiio, and there was a probability or a rebate ot 10 per cent, on the cartage. They could not lefunU this to the Individual suppliers, whose carting had been done, but would be p ; iid to the company, so that nil would gel the henelll Touching on the high price of requisites, he considered that ibe high-water mark had been reached, 'i'liu Investment tluctu.ilinn account had Increased, and now stood at £l27o—an increase of nearly £Boo—and the result of this sound finance enabled them to pay out the bonus In full that day. That fund had been raised because it was deemed wise to Hot a fund nsido in case of depreciation In the Moturoa Freezing Company or Egmont Box Company shares. At March .11 they had 4!ifi« crates of cheese In store, but this had been reduced to 3922, with prospect of further shipments shortly. He mentioned the difficulties encountered during the opldcmic, and thanked all who had loyally supported the company, particularly mentioning Mrs. Ashley. He thanked the staff, especially the secretary (Mr. I'epperell). Ho considered tho company should support Mr. Connett In his proposal for a standard fut content In cheese, and staled that at a later stage ot the meeting he proposed to givo them an opportunity of .discussing the matter.

Concluding, ho said that providing they obtained the milk, the prospects for the coming season were very good, ns their stocks were well up. It would, however, be necessary to study economy, and they must not "roar" at the directors If they shut up the branches before some of the suppliers 'wore ready. Regarding dried milk, the directors had thought it Inadvisable to co-operate with .other factories In order to get the fullest Information re dried milk. It would have cost £SO, and from their situation (off the railway line), and the difficulty of obtaining fuel, they would n<(t have been able to benefit at the present time, though they might have been able to benefit at a future date.

At last meeting, he stated, It had been agreed not to purchase shares until six months after tho war, and he considered that some adjustment would have to he made so that the selling vnlue of the shares would be fixea at £l. Mr. Corhett secended He consln- red that they would have to consider cutting dow.i we expenses at (lie branch factories, ot both <f which they were Inning considerable supplies this year, or else they should pay on results. The chairman stated it was a difficult position. He had opposed the erection of file Lellli Road branch, and considered that they must either erect n curing room nt each branch—which would ho mado a self-contained factorv, With a manager directly responsible to the director*— and pay tho> suppliers on results, or elso.glvo the suppliers an opportunity of taking the branch over at valuation. This, of course would necessitate liquidation. The branch factories without water power could not pay out to high as (hose with It

Mr. Orej- considered that If they closed down the branches they would cripple the whole spirit of co-operation, and merely bo looking after themselves. Ho hoped suppliers would put down their foot on any attempt at this, which he con--sldered absolutely misleading and disgraceful The low supply at Lelth Ilnad was duo to lh« changing of farms, and this was going- t u „} feet Ihc main factory as well. It was a , m „„ time Jo consider the mailer when y W mg sol'-' Mlorii had bought farms on account of the nroxunlly of the factory.

Jhe chairman said it was not n question rf unfairness, hut of what was best for the com pnny. He. recognised that tho spirit' of on operation was for the strong to help tho weiilt' but some people were apt to take advantage It having a factory at their door In order to 4-t big prices for ibelr proportlcn. If tlioy vaufed heir pay-out to compare with other factories' they must remember, that factor!., under one roof were m the best uosltlon. \i Oka" hadbeen under one roof'lli!y- could have paid "lit another £2OOO, whtelf''would have mean eft more to each supplier. ; : " ■ The motion was then carried. ELECTION OF DIRECTORS, ii,! fr J' ■'' < n nrey *««'''"-eleetod unopposed Per the extraordinary vacancy caused by the resignation of Mr. 1!. c. -Henry there were thrte nominations, „„d the election resulted-B Gnodln 57 (elected), (!. Benton 3 w a Brldgoman 28. ■■.; & \ Mr. K y Webster was re-eleoted auditor A unanimous vole of thanks was accorded Mr. m cmj '' tllc retiring director £25, and the directors 10s per meeting

INTEREST ON SHARE CAPrjAL. Mr. \V. .1 Cray moved thot, l), e romnanv do not pay Interest on shnr. ~„, oVsThZ * here are farms not belt* milked upon He he d we're ,** 1 " 1 " ~W tSilr ItaSJ compw ,Weh ' e mmaß tvom ,ne

Mr. J. Grant seconded. nr.,!LiH;„, Aml ,''> e \ V 8 was, »Wlsed to hew the Imposition, ivliieh ~.„„ „ s bad „ 0 rpputlliitHiK their Just debts mi iomnnov •bovldi rtthw buy the Aim or pay ffit The .hnreholden. had put their mono- into ft. Wl value. He moved us nn amendment that he company continue to pay 5 ££ Zut until (t bought out thoshares •.">*" tBU! - umu **■ Glwt mU th« Jl*. A*tem w«» ois. <*