DAIRY COMPANIES.

Taranaki Daily News, 4 September 1919, Page 2

DAIRY COMPANIES.

WAITARA. TWENTY-FIRST ANNUAL MEETING.

The twenty-flrst annual meeting of the Wal-tara-Taranaki Dairy Co., Ltd., was held at the factory yesterday, when Mr. ,T. H. Smith, chairman of directors, presided oyer an attendance of about SO suppliers. BJ3POHT AND BALANCE-SHEET. The report stated that although the increase of supply at the factory and the output showed only n small margin over the previous year, It must be considered satisfactory. The storage position—at times so acute tho previous year—had now been overcome, and If shipping facilities were at all reasonable, the coming season should not cause any anxiety. Tho local price of butter, as fixed by tho Government was a most unjust and Inequitable class tax. Plainly put, it simply means cheap butter to everyone at the expense of the few butter producers. No other section of tho community was asked to bear such a burden, and representations had heen made to Ministers to remove the disability, but the matter was hung up pending the return of the leaders. Falling Cabinet agreeing to make a refund from the consolidated revenue, the matter would be brought on to the floor of the House by way of petition. The supply of millc for casein was more satisfactory than tho previous, year. Payments had been mode of 9d per, 100 lbs. of whole millc, and tho balanco would allow of a further payment of 3%d, or a total of Is o%d per 100 fbs. The prospects for the coming season should be,even on improvement. Suppliers had received Is 4d for butter-fat during the whole season, and there was a further 3d for distribution. This was gross, with the usual %d deduction. Suppliers'; contributions to patriotic funds amounted to £205 15s 7d. The over-run was 17% per cent. Tho following comparative table was attached with last year's operations in parenthesis) : Butter-fat 415,740 lb. (413,802 lbs.), increase .1944 lbs.; butter. 483,220 lbs. (484,1)29 !bs). Increase 3591 lbs.; advances on milk £29,572 5s Gd (£25,921 0s Cd), Increase £8561 5s Cd; advances on casein £1852 14s 9(1 (£lsll lis), Increase £341 3s 9d; surplus, £5522 19s 6d (£4llß 12s 3d); increase of £1404 7s au. Tho balance-sheet showed receipts to have heen; Sales of butter £38,907, butter-inllk £79 7s lid. casein £2020 15s 2d, stock and material £873 lis 4d; total, £42,550 7s 2d. .Expenditure: General expenses £2582, wages £1034, butter boxes, loss' and Interest £92, chairman's honorarium £3O, directors' fees £22, equalisation fund £3OO. The sum of £29,572 5s Od had been advanced on milk and £1852 14s M on casein, leaving a balance of £5572 9s od. CHAIRMAN'S ADDRESS,

In moving the adoption of tho annual report, the chairman stated that for several years past he had had to mention the disabilities they were suffering frofh owing to the war. The difficulties had not entirely disappeared, but the war was ovor, and their soldier boys were practically all back again. It remained now for them to do their duty by the boys, and especially remember those who had lost their loved ones.

The accommodation provided for extra cool storago for their butter at Moturoa, owing to this shortage of shipping, had proved equal to the demands made upon it, and the war being finished, shipping facilities, while not yet normal by any means, continued to improve They had paid to tlio Moturoa Freezing Works Company £SOO reserved for that purpose from Ihe previous year, and had also paid out of tills year's working a sufficient sum, which, added to rebates on produce put through the works, completed the payment lor the new shares allotted. He touched at length upon the negotiations made by the Egmont Box Company to secure new bush, as already reporteu. This, lie considered, would be a valuable asset. It would necessitate the company doubling its holding in die Jigmout Box Company, which was now U2O shares They were now paying noarly is each for boxes, which was considerably below what outsiders were charging. With regard to casein making, the prospects for the coming season wore fully equal to last year, as the Casein Company had set out proposals, which were on somewhat Haw lines. They.proposed to advance sufficient to pay out, as they went along the same amount as last season, and send the result of the sales, less advances, charges, commission on sales, etc, The matter had not yet been considered by the directors. Last year lie had informed tlirtn that it was proposed to pay 8d per 100 lbs. new milk as they went nlong, and at least a further 3d at the end of the season. Tills had been moro than reniised, as there was a further :i%d to be paid that day, making is u?id in ' all, and, in addition, tliero was a small amount from the previous season. , Referring to the accounts, he said the auditor (Mr. Bally), who was present, would give the fullest Information in regard to the audit. He also read an analysis of the working account. The accounts receivable had since been paid, and there was a credit balance at the bank. The position of tho property account was very satisfactory, standing at £722 7s Id on the books, and the manager's cottage stood at £250. '

He pointed out that they did not say "we shall then have paid as much per lb. butterfat, when this, that, and the other money comes hi, but that we have paid Is 4d, less %d deduction, and here's another 3d to-day." He pointed out that they had quite a lot of money to eoroo in yet, which they would pay out when it camo in, viz, tho equalisation moneys, etc., which, of course, would further Increase the pay out for the season. Boferrlng to the over-run of uy, per cent ho pointed out that this did not" take into account tho extra %ll>. of. butter that by trade usage had been included in every box of butter, and made a difference of nearly one per cent. It was therei'oru misleading to compare with other factories, without knowing whether this had been Included. Of course managers required it put in, as they were now engaged not on the prizes won, but on the amount of commercial butter that they could make out of a given amount of butter-fat. Comparison of the average test was also misleading. Mr. SlcCaul seconded.

THE DISCUSSION. Mr. G. V. Tate considered that more details should be given of the balance-sheet, so that suppliers could have an opportunity of going over them before tho meeting. The chairman stated that he had explained tho returns, and further questions could be asked of tho auditor. A few years ago these had been itemised on a separate slip, but no one seemed to bother about them, and the practice had been dropped. It could however, be revived.

In the reply to Mr. Do Launny, the chairman stated that the Vid per lb. butter-fat had never been paid Into a reserve fund, but had been written off the factory account, in place of depreciation. It had worked out well, and had placed them in a good position. The Articles of Association, he considered, required rcvlstog and bringing up to date. It was another matter how long the deduction of a Yid shoud continue. It was expected that this would wipe off the indebtedness to the bank in a very few years, but there was always some extraordinary expenditure In the way of additions, etc., to copo with. ' Mr. McCuul asked whether the directors h<«4 considered going in for sugar of milk, etc Tiie chairman stated that for some time past tho directors of North Taranaki butter factories had been considering the ' establishment of a plant for tho drying of. casein on a co-operative basis. They, however, could do nothing definite in view of the enquiries now being made by the delegates In America in connection with dried milk, etc., and a good deal depended on their report. Mr. McCaul stated that sugar of milk, which was made from whey would be more suitable for their factory than dried milk, which would necessitate bringing milk to the factory twice per day. lie understood Kaponga was erecting a factory for the manufacture of sugar of milk, and information might be got thoro. The report and balance-sheet was thon adopted.

Mr. H. Grayling moved that in future fuller details bo Riven, in the balance-sheet, and also that.the average tost bo given. It was nice to do a little "sklting" about the test, which they could not do If they did not know It. The chairman pointed out the difficulty of this owing to the amount of cream received. This being low would pull down the average test. Mr. T. Luxton seconded the resolution, which was carried.

ELECTION OF DIRECTORS. For the two Vacancies on the directorate caused by the retirement of Messrs. A. Rowe and A. Pulton, there were five nominations, and the election resulted: H. Grayling 74, H Purdie 64 (elected), A. Ttowe 57, L. De Launay SG, A. Fulton 44.

Mr. H. Bally was reappointed auditor. A very hearty vote of thanks'was accorded the- retiring directors, Mr. C. V. Tate speaking in high praise of their work. It was apparent that there wore a number of new suppliers in the district who thought that possibly somo new blood might do good. *"

The chairman spoke in a similar strain and the resolution was carried with acclamation.

GENERAL. A very hearty vote of thanks was accorded tho staff. They had in the factory two returned soldiers, one of whom was with them before he left for the war, and he thought that farmers should adopt a similar practice Tho creamery manager, who had lost his leg during the year, was. he was pleased to state, doing very good work.

Mr. H. Do Launay, in seconding, considered tho vote should be accompanied by some practical evidence.

Mr. G. V. Tate paid a very high tribute to the work of the manager, who had been with s&a sftat » tor. ksS to p«Jt4 ttat tt **

a. recommendation to the directors to vote him u bonus. The chairman favored tie proposal, but iuggested that the shareholders should vote the amount. On' the motion of Mr. Do Launay, it was resolved to rote a bonus of £9O to the staff to be divided pro rata on the bails of wages; and that .a special grant of £3O be made to the creamery manager (Mr. Vincent), who had lost his leg, not as the result of an accident In the factory, but of an old trouble This was seconded by Mr. Hall and carried. It was resolved that tho chairman's honorarium he increased to £OO, and the directors be paid 15s per meeting. Mr. L De Launoy referred to the Articles of Association which, lie said, were obsolete, being drawn up twenty-one years ago with very fow alterations. Ho pointed out one anomaly by which a shareholder who supplied 4500 lbs. of butter-fet secured four votes, whereas lie, who had supplied over double that amount during the year, was only en- - titled to ono vote because he was a new supplier. Ho moved In the direction of having the Articles of Association and by-laws revised. This was seconded by Mr. It. Giddy and carried.