MOA DAIRY COMPANY.

Taranaki Daily News, 9 August 1920, Page 2

MOA DAIRY COMPANY.

PAST YEAR REVIEWED. i THE ANNUAL MEETING. | At the twenty-fifth annual meeting of the Moa Farmers' Co-op. Dairy Company held at Inglewood on Saturday, there was an attendance of approaching 200 shareholders. The chairman ot directors (Mr. T. S. Bowler) presided. THE COMPANY'S POSITION. In moving the adoption of the report (already published in the Daily News), the chairman reviewed the workings of the various departments. The item for sundries he mentioned, Included the sum of £66 Cs towards the cost of sending delegates Home and, to America; the interests of shareholders were still being watched by the committee, so that | the money devoted to this purpose was being well spent. Compared with last year working expenses were lower by £43, which was a credit to somebody; there was a reduction in the wages paid of £92, which was due to working with a man less in the butter room for some time. The increase of £303 in working expenses (lorry) was due to the fact that this year they had had a second lorry.. Depreciation shown had increased by reason of the fact that there were extra buildings to allow for. The speaker was of opihlon that the company was in a sound position, and this was evidenced by the fact that the Bank had returned shareholders' promissory notes, which was a very healthy sign. . The motion for the adoption of the report was seconded by J. Stachurski. Mr. A. W. Yeates, referring to a statement of the chairman, asked if it was not a lact 'that the promissory notes were returned by 'the Bank in accordance with a promise previously given, and not exactly because of the position of the company. The chairman contended that the notes woiild not have been returned if the standing of the company was not good. Mr. J. H. Angersteln asked why shareholders had not been called together as in other companies and given a chance of discussing the relative - merits of the marketing proposals, C.W.S., etc. The chairman replied that he did not Ihink special meetings had been called by other companies, the discussion on the subject men-. , tioned being usually taken at the annual meeting. Beplying to questions, the chairman said he believed that casein would eventually realise 3d. The company had advanced a certain sum to suppliers against the amount due from the caseiu company. For the pre-sent-there was an overdraft of £9OO in this connection, which, however, could be met by a payment of ',4 d per lb. out of the casein money accruing. Mr. R. Bakewell inquired if those who supplied butter-fat only were liable for this as well as the casein supplier. The chairman: It is all one company. Mr. Bakewell challenged the Company's action in allotting him 45 extra shares, without any application l)e|ng received, and produced a letter from a New Plymouth firm of solicitors expressing the opiition that the company's action was illegal. Tills led to a long discussion on the general method of alioting of shares and various other subjects crept into the debate, which was brought to a conclusion by the chairman putting the motion for the adoption of the report and balance-sheet. This was carried. ! THE STORE BUSINESS. lii accordance with notice of motion, the chairman onoved that the memorandum of association of the company be altered to provide for the carrying on by the company of the business of a retail store. This was seconded by Mr. Stachurslri. Mr. Angerstein proposed an amendment that the retail portion of the present business be closed down, and that it- be conducted in future solely on the basis of a bulk concern.' He' also contended that outsiders should'not bo able .to go in and make purchases and reap the same benefit as shareholders. Sir. Henwood seconded the amendment. Tlie chairman said the amount paid into the bank, as credit in the store account, was £IOSO, and there was another £250,- the disposal of which was to be decided by the shareholders. 1 Mr. L. Sutton said all the average farmer

wanted was a bulk store to enable him to get the larger lines at bedrock price. UnsSilrig dlsctissioh touched on thai value of the retail store .is a competitive factor In keeping prices in the district generally at a moderate level. Opinions differed as to whether the store was of any use in, the direction mentioned. i The amendment was lost by 45 votes to 25. An amendment was moved by Mr. Bond, and seconded by Mr. Goodwin, that the question of running the business as a retail or bulk store be left in the liunds of the directorate. This was also outvoted by a considerable majority. The original motion wa3 then put, and the voting was 30—18 in favor. Aa a threefourths majority was necessary, it could not be declared carried. It was decided that the £202 profit be placed in the bank to the credit of the store account. THE CREAMERIES. Iteference to the cost of running the creameries was made by Mr. Angerstein, who said these cost the company from 2%d per lb. down to 2'/id for the convenience in some cases of only two or three suppliers. It was a position itliat needed nuttine right. This eventually became a chief topic of the meeting, and candidates for the directorate were asked to give their views on the subject. The trend of opinion among the nominees was in favor of closing the creameries or treating each as a separate concern in the adjustment of accounts. An explanation of the position was also given by the (manager, Mr. Boas. He said that, as shareholders knew, the company was up against private competition from outside. There must be some reason why these competitors were attempting to "dig lu," in the local territory, and attributed it to the fact that the company could not pay as much as private competitors owing to the cost of running the creameries. This had to be met or the whole co-operative system would be upset. He believed the choice lay In making butter from homo separation or in going In for cheese manufacture. Some of the creameries would hajve to be closed down, for the company would have been able to pay more for butter-fat If they had not been saddlod with the cost, as Illustrated by the figures which lie had got out. Subsequently, Mr. Sutton moved that all creameries supplying the main factory be closed down; or else if it is desired to keep them running, the milk suppliers pay the cost of maintenance. The resolution was seconded! by Mr. Ritchie. An amendment was moved by Mr. Bakewell and seconded by Mr. Brereton, that it be left to the discretion of the directors to close down creameries, which are not paying. The amendment was lost, the voting being 26—2 T. Mr. Bakewell withdrew another amendment that the question be deferred for a fortnight In view of the small attendance, which had dwindled owing to a late meeting. The resolution was then carried by 36—18. DIRECTORATE. There were thirteen nominations for seven vacancies on directorate, and the ballot resulted: Messrs. Gamlin, Sutton, Baldwin, Angerstein, StachUrskl, Bowler, and Yeates. GENERAL. Mr. T. C. H. Nleholls was re-appointed auditor. At a subsequent meeting of directors, Mr. Sutton was elected chairman.