TARANAKI MEAT COMPANY.

Taranaki Daily News, 11 August 1919, Page 6

TARANAKI MEAT COMPANY.

ANNUAL MEETING. 1 The fourth annual meeting of the Taranaki Farmers' Meat Company was held 011 Saturday. at the Good Templar Hall, New Plymouth. The chairman or director* (Mr. .1. T. Quln), presided oveT a large attnedanco of shareholders. The directors' report (which has already been published) and the statement of accounts were taken as read. CHAIRMAN'S ADDRESS. In moving the adoption of tiie report and balance-sheet, Mi*. Quiu coiitrriitulated the shareholders on another successful year for the operations of the company. He proceeded to say that from a financial standpoint the principal Industries of tho Dominion had not suffered seriously during the war. In fact, a considerable depree of prosperity had attended the primary industries, in which the Taranaki farmers' Heat Company had participated. The figures submitted showed, when compared with the balance-sheet issued for the year 1918, a. very considerable improvement In the most Important items. The subscribed capital was £IOOSOOO, as against £92,350 last year, and the directors hoped that a still further substantial increase would be shown in next yeaT's balance sheet. In a growing business, capital was - absolutely necessary to get tho best results, and it was only by installing the most up-to-date facilities that these could be obtained. The cost of buildings and machinery was now more than double pre-war value, and what might be considered sufficient capital for a freezing company before the waT was now very inadequate to meet the demands made upon, it by tho extension of the business. "The amount represented by sundry creditors and Government advances against meat in store/' said the speaker, "was a very large one, and was represented almost entirely by advances made against meat and other stocks awaiting shipment. These would be reduced as the stocks at present held were shipped." Referring to the stock, the chairman stated that they had been taken in at their cost price, and no attempt had been made to anticipate any profit therefrom. Shareholders would be aware of the sudden rise in the value of tallo'w, and although advices had been received that some of the earlier shipments had been sold at very high prices, no account had been taken of that, as the directors considered that a profit was not earned until the proceeds had actually been received. It was safe, therefore, to state that a considerable surplus would be derived from tho aalo of stock afloat and on hand, and that would, of course, .bo carried forward to next year's operations. Continuing, the chairman said the amount written off for depreciation was £4655, which the directors considered sufficient In view of tho fact that the buildings and machinery were practically new, and were being maintained in good order and condition. The directors recommended that a 0 per cent dividend be paid. This dividend was free of income tax, and represented a fair rate of interest to shareholders. It had been stated beforo that the policy of the directors was to see that if the profits were available shareholders got a fair rate of interest on their investments. At the same time large dividends were not to bo expected, as the supplier of stock to the works should get the benefit of any further profits for distribution after a fair rate of dividend had been earned, and all provision made fur the maintenance of the works in a high state of efficiency.

THE YEAR'S OPERATIONS. Reviewing the year's operations, the chairman said It was gratifying to be able to record a further substantial increase in the quantity of stock treated. Shareholders had good cause to remember the severity of last winter and spring, and It was anticipated that at the commencement of the season suppliers of stock, especially fat cattle, would not be plentiful That had proved to be correct only so far as lambs were concerned. It would be noticed there was a decrease on the number treated, and unfortunately, the quality was very much below the standard of the previous year. The effects of th* bad, weather were very evident also in the sheep treated, the effects of the bad weather were very evident also in the sheep treated, the average weight being anything from 41b to 81b 1 lighter than the previous season. Another .matter which the company had to contend with during the season, and which had a serious effect on the price of cattle, was the embargo on the export of hides, which was gazetted on March Gth. last. This took place just as the Dominion was working un a good overseas trade in hides, and while the company was quite willing to assist in maintaining supplies of hides for local requirements, the method adopted of practically putting un embargo on the large surplus of hides not absorbed by the New Zealand trade, was not in the best interests of the company or the producers, and a loss of froA £4OOO to £SOOO hadd fallen on the producers The chairman stated that during the year an industrial agreement had been concluded with the Freezing Works Employees Union, whereby considerable Increases in wages were paid in all departments. The new agreement had two years to run from the end of the present jnonth, and It was trusted thai it would prove satisfactory to both employers and employees. (Hear, hear.) While on this matter the speaker stated that the relations existing among all departments of the company's staff during the year had pmed most amicable, and tho result had been a direct benefit to all concerned. (Applause).

THE SHIPPING PKIBLEM. In referring to the shipping problem, the chairman said it had once more proved the greatest difficulty which the freezing companies of New Zealand had to face during the season. He was happy to state, however, that by the erection of the large additions to the cold storage plant, for ,vhieh purpose the company entered Into nn agreement with the'Taranaki Producers' Freezing Works Company, Ltd, they were able to get through the season without feeling the pinch, except perhaps for one week in the latter end of May," In a reference to the balance-sheet, the chairman said it would be noticed that the company had received as an advance from the Government for the erection of cold storage, the sum of £15,000. With that, welcome addition to the finances, the company wns able to increase the size of the block considerably, but notwithstanding all that expenditure on storage, the stores at the present moment were full right to the doors, containing about 173,000 freight carcases. He regretted that the prospects for the coming season were anything but good. The accumulation of frozen meat at present in store throughout the Dominion could safely be* estimated at between 8,000,000 and 9,000,000 freight carcases, to which should be added something like 300,000 crates of cheese from last season's output not yet shipped. The supply of refrigerated ships cmolng forward was so small that even on the. most conservative estimate there would be, by the end of October, nt least, 6% million freight carcases In. store in New Zealand. When it was considered that the total storage capacity of the freeing works in New Zealand was not much over 9,000,000 telescoped freight carcases, including freezing chambers and passages, the outlook was one which was likely to cause grave concern to producers and companies alike. It was sliced on fairly reliable authority that the cold stores in Britain, which are acapable of; storing about 10 million carcases, were nearly all full of meat, and if that was the casfd then the position so far as the New Zealand produce was concerned was very serious indeed. Arrangements were being made, by the freezing companies to meet the Prime Minister- early this month, when the wholo position would be carefully considered, with a view to placing the position of the j Industry before the Imperial Government.

. . INCREASE OF CAPITAL, < Continuing, Quin said, some time ago the directors asked the shareholders to Ini crease the nominal capital of the company :-n order to provide for important additions to various by-product' departments of the works, as well .as .the killing board, and although *the resolution was carried, he ircgretted th'aC fthe response had not been rfs good as i jthe directors were entitled to expert. The plana, however, have been prepared, and instructions given to go on with tho most important portions of the works. The new additions would he of a very comprehensive nature,, and be so constructed that they would fit Into any further additions which might be necessary from time to. time to meet the growth of the departments. In regard to additional space at the company's works, the chairman said that with the chambers and passages there' was probably room for another 20,000 carcases, but that space would not be available till the end of the season. If they had to erect another block of stores It would cost a further £GOOO and take three months to complete. This they would not do unless absolutely obliged to In the interests of thej producers. Plans had been prepared for the most necessary work. He pointed out that, by erecting further tinning accommodation space might be saved, as if the raw material was tinned instead of frozen the storage space required would be very much reduced. He looked forward, however, to the future with much optimism. The company had got over serious difficulties before. They had survived during the wur, and with care and judgment they would survive again. The labor question had not seriously affected*, the company during the year. The staff had worked amicably, and they deserved the best Ml Hi K ft* tm w

in which thny had supported the directors, fie then moved the adoption of the report and I balance-sheet. I INSPIRING CONFIDENCE. The motion was seconded by Mr. W. A. McCutehan, who remarked that the report and balance-sheet, and the comprehensive statement by the chairman must inspire tho. confidence of the shareholders in lite company. He said the position of the company was very sound, and showed ihe absolute safely of freezing works share*. He expressed satisfaction at Uie inquiry for shares amongst the wage-earning section of tiie community, lie touched on tiie question of the adoption of preference by the imperii;! Government, and warned the New Zealand producers against hoping for much benefit therefrom. He cuunj soiled a wise devotion to tho improvement of I local facilities for dealing with produce and j also a steady endeavour to raise the standard lof stock still higher. In referring to Hie new issue of shares, he said that if tiie share list was closed and shares placed on the market lie believed their value would be increased by lflrt per cent, Of all the industries established in New Zealand to deal with raw material that for dealing villi meat was the safest. The product was a worldwide and ever increasing one. Notwithstanding that in New Zealand, 25 per cent, of the sheep flocks and 12% per cent, of the cattle were killed annually, the numbers were ever increasing. Coal mines and gold mines worked out, and timber fields became denuded, but the meat industry was a continually growing one. THE AMERICAN MEAT TRUST.

Mr. McCutchan then dealt somewhat pointedly with the operations of tho American yent Packing House, £ind stated that though restrictions were placed upon their operations in America, jthey did not lose their hold on the American business, and further they turned their attention to countries when there were no restrictions against them. They jsvero a menace in New Zealand, and the people had no restraint against them. He urged that every means should he taken to prevent them acquiring an influence in the freezing companies of the Dominion. The producers' first line of defence was in their own hands, and lay in tho direction of support for their own concerns. When men combined In such an enterprise as that of tlio company, which was for the benefit of the whole district and province, they deserved the support of all who had the interests of the district at heart. He said tho men who would not support such undertakings were i no better than the men who sold the secrets ! of their country to an enemy—both were traitors. (Applauso.) Ho referred to the seriousness of the shipping and labor problems and urged that tho conference with tho Prime Minister should he held at the earliest possible date—that it should be comprised of tho best men In tho country connected with the Industry, and a strong effort should bo made through tho Government to impress on the Imperial Government*' tho seriousness of the position In regard to shipping so far as New Zealand was concerned. Britain had lost a lot of tonnage through the war, and he believed that America now controlled about 43 per cent, of -'the world's total tonnage. If nothing else could be done he advocated that some of , the American ships should bo chartered to . take away meat from New Zealand. Mr. McCutchan also urged that assistance' ! should bo given by the Government in tho i matter of the Importation of pedigree stock ! from other countries for stud-masters This j had been done in tho Argentine, and in South i Africa it had worked quite a Tovolution. He urged that pressure should be brought to bear on the Government in this direction, which would be really helping themselves as well as stock breeders He concluded with an expression of strong faith in the future. Ho iwas not at all dismayed by the signs of turmoil throughout the world, r»nd predicted that during the next five years there would be greater progress than had taken place during tho past 15 years He referred to loe:il developments, and particularly in regard to the harbor, and said the time was within measurable distance when the largest liners trading here would come to New Plymouth to take away the produce of the province. (Applause,)

THE DISCUSSION. j Mr. Newton King referred to what the chair-' man had said In regard to the extension of the killing board, and asked if it was Intended to carry that work out at once. The chairman replied that a certain portion of the space for killing boards was at present occupied by dressing rooms. They had plans for their removal in order to provide space for 25 mutton butchers, who would be sufficient for the requirements of the district for some time to come. The cost would be fTom £2OO to £3OO, which the directors did • -not consider very serious. What ho meant was that they were not going in at present for any elaborate scheme. So long as they had accommodation for about ISO cattle and from 1200 to 1400 sheep per day, he thought they could get on very satisfactorily. Mr. J. Grant congratulated the directors on the very • satisfactory report of the year's operations He referred to the dealings with the Imperial Government, and urged those resnonsible for the transactions to trust the British people He said the British always had a sovereign to offer for goods, and not foreign paper money. England had fostered and nurtured New Zealand from its infancy, and he urged loyalty to the Mothsr Country in the matter of trading relations He referred to all the "talk" about the high cost of living, and said he believed it was more talk than anything else, and was "put up" for a purpose. He then appealed th* "cow bangers" -of Taranakl to support the i company by taking up some of the new i shares on offer ne said every man who ' put stock into the works was well paid 4ven though he did not get a sixpence in divij dends. In conclusion, lie- congratulated the manager and staff on the manner in which they had carried on the work for the company, and said they were the finest staff lie had ever seen In reply to Mr. W. C. Weston, the chairman stated that tho tallow in stock and afloat at present amounted to about 800 or 900 tons altogether.

Mr. W. .T. Freeth drew attention to what lie regarded as tho deterioration of stock between the time of purchase and killing, and asked If anything could be dono to remedy the trouble.

The chairman replied that the matter was not without its difficulties. Cattle were supposed to stand 48' hours after arrival before being slaughtered, and that was why the company had large holding paddocks at tlio works. It sometimes happened that there was a glut of stock and-they could only deal with perhaps 100 por day. The purpose of the company was to do the best it could in the Interests or the shareholders. Mr. Lucena made a complaint at the price received by him for some sheep sent to tlie works, which had realised £1 Os Od, compared with £1 14s received for some from tlie same time sold at his clearing sale a short time after.

The chairman and the manager botli replied to the questioner, to the effect that »t tho commencement of tlie season a schedule had been fixed sufficient to cover expenses, but that during the season there had been an increase In wages paid which had necessitated a revision of the schedule. Mr. Milne stated that during the season It had been found that tho schedule fixed would not work out Other companies had reduced their rates cvm more than the Tarannltl Company, who, he believed had paid the highest price of any company In the Dominion. The motion was then put and carrier] unanimously.

DIVIDEND. The chairman then moved that a dividend at tlie rate of 6 per cent, per annum 011 tlie paid up capital be declared out of the net profits "of the company for tho twelve months ended .Tune 30, 1919. In seconding the motion, Mr. A. W. Budge remarked that it was tho second year that a dividend of C per cent, had been declared, and It should be an incentive to others to talre up shares in tho company.

ELECTION OF DIRECTORS. The chairman then announced that in addition to tlie four retiring directors, Messrs Best, King, Perry, and Young, a nomination had been received frtnn Mr. ,T. W. H. Martin, of Pukearuhe, to fill the. vacancy caused liy the resignation of Mr A. B. Gatulln. In vcferring to the resignation of Mr. Gamlln, lie said he had been a valued member of tlie directorate since the formation of tho company, and he had resigned from patriotic motives in order to allow the shareholders In the Waitara and northern part of the district to be represented on the board. He was entitled to the best thanks of tho shareholders for his services. Mr. F. Bayly then moved, and Mr. Grant seconded, and it was carried, that tho retiring directors and Mr. J. W. H. Martin lie elected directors of the company. On the motion of Mr. W. J. Gray, seconded by Mr. W. C. Weston, it was decided to vote an honorarium of £l5O to the chairman .for his services during the past year, and a similar amount lo ho divided equally amongst the other directors for their services. The chairman returned thanks for himself and his fellow directors. Mr. Gamlin expressed thanks for what tlio chairman -had said regarding himself. In regard to his retirement, 110 recognised (hat the shareholders of Waitara and that district should havo representation on tlio directorate, and he congratulated them on getting a man of tlie type of Mr. Martin to represent thera. Ho had been one of tho provisional directors, arid he ; probably Iniaw more about the business -than the speaker, I and b» wat pltsiei t« m htm efotid.

Mr. E. I'. Webster, F P.A, N.Z, was; re-eluctod auditor, at a remuneration of 701 guineas. * 1 VOTES OF THANKS. The chairman then moved a cordial vote of thanks to the management and staff for the very loyal services rendered . them, some of thein since tho inception of the company. Mr. Quinn stated that in consequence of the increased cost of living it would be necessary 111 the near future to effect some adjustment in tiie salaries of some of their officers. This would he done with a view lo tho best interests of the company, and in order to proserve the present amicable, relations between the company and their employees. Mr. \V. [ C Weston seconded the motion amidst applause, referring to the splendid work done in preparing all the data for the annual meeting, and in,getting out Iho dividend warrant* by ihe 9th August, the financial year closing on June Mill. Mr. Milne, replying on behalf of the staff, said all the officers had given every assistance possible. The employees had made no difficulties, and when differences had arisen the officers of their union had come straight to him and placed their troubles before him, and he had usually found that if these were looked into immediately they wero raised they were very easily adjusted. A vote of thanks to the chairman concluded the meeting.