DAIRY COMPANIES.

Taranaki Daily News, 19 August 1920, Page 3

DAIRY COMPANIES.

MANGATOK!. The twentieth annual meeting of th« Mangatoki Dairy Co was held in the Maugatoki Hall yesterday, when Mr Jacob Marx, chairman of directors, presided over an attendance of about 40 shareholders. REPORT AND BALANCE-SHEET. The twontieth annual report congratulated the shareholders on a successful year's working. After writing off £1501) for depreciation there remained a balance of £12,329 Ts Id for further distribution. The directors recommended the payment of 5 per cent, on &U i paid-up share capital, which would absorb £730, leaving a balance of £11,599 7s Id. The total payment for the year is estimated at 2s 0 5 -id per lb. butter-fat. The follovcir.g statistics were supplied: Lbs. of milk received, 25,930,404; lbs. of butterfat received, 988,284 ; average test, 3.81; lbs. of milk used for butter making, 830,082; lbs. of butter-fat used for butter-making, 31,750 ; average teat, 38; over-run, 17.9; creamery butter unade, 16 tons 14 ewt I qr. 19 lbs.; whey butter made, 27 tons, 17 cwt.i# ; qrs 7 lbs; lbs. milk used for cheese, 25,131,116; lbs. butter-fat used for cheese, 950,584; aver- , age teat, 3.81; lbs. milk to lb. factory cheese, 9.G4; lbs. milk to lb. commercial cheese, 9.88; lbs. factory cheese to lib. butter-fat, 2.72; l lbs commercial cheese to lb. butter-fat, 2.05! j commercial cheese made, 1134 tons 3 qrs. 4i ! lbs.; total cost, inducing depreciation, per i lb. butter-fat to f.0.b., sd; total cost, includ-1 Sng (jepreciation, per lb. cheese to f.0.b., 1.88 d; progress payment to December 31, 1919, is : lid; progress payment to June 30, 1920. is 8d The balance-sheet showed that the receipts for the year totalled £123,644. The prin-Cr-Sftn; railage, storage, freezing and BhipCharges, £2130; boxes and crates, *'e., £2724; requisites, £4161; fuel, £2060; repair* and cartage, £2295; rates, insurance, salaries, directors' fees, etc, £1731; depreciation, £1500; £55,777 had been paid to suppliers, leaving a balance of £12,532. Tho auditor submitted a lengthy report, making various recommendations. CHAIRMAN'S ADDRESS. Mr. Marx said that the year had been a record one as regards pay-out, and the company seemed to be well in the forefront as compared with other large companies. The directors had endeavoured to give as much information as possible in the balance-sheet, and had shown the difference as between commercial and factory' cheese, which equalled about 2 per rent, or being capitalised would amount to £2OOO. The directors had written off £ISOO Personally he favored a bis deprer!ut ; on during good times. However, £I4OO had also been expended in repairs, so thatf in addition to paying out well, the factory and plant was kept well up-to-date. T, »*erring to the auditor's comments, the chairman said thalvit was necessary for <i : re".ors co Uccp in close touch with markets, etc., nowadays, and for a turnover of over £120,000 the item of £76 travelling expenses was a very small one. Fuel had certainly cost a liirye amount, but it was due to the suppliers requiring hot water for their cmis, and also for the food taints, necessitating the use of pasteurisers Moreover the company had no other power They had, as a •matter of policy, deliberately paid 5s for veils so that the company would be In a position to get rennet. If the company had had to turn to butter for the warjt of 20 casks of rennet, they might easily havo lost £IO,OOO, instead of the £2OO apparently lost over the veils. This year they would only pay 2s Od for veils By running two accounts at tho bank they had lost £75. He considered it would be advisable to alter the Articles of Association, and also to alter the basis of allotment of share capital, as £IOOO was required where £SOO was years ago. At prosit the basis was 60 lb. butterfat for £1 share, but he considered it should be raised to 401b., and that,instead of making per lb. of butter-fat' deduction, they should make it %d, as conditions had changed since prior tp tho war. He then formally moved the adoption of the report ::nd balance-sheet. Mr. Preece seconded.

Mr. Guy pointed qut that the company still had ,about £.10(1,1 uncalled capital, and until that was called In he dl<l not think the company should Increase the Jmtter-fat basis. He qulti agreed that it was necessary 1o call in the capital quicker than at present. Tim chairman pointed out that ft good deal of this uncalled capital was oninu' by people who had left the district Tho company only had £ \TvCT of unallotted shares. No business was rim With so little capital as the dc'ry business Their company had heen ruunmp tor about twenty years, and only had a py.d up capital of £15.099 Ho considered tiiat companies should endeavour to Improve their financial position, and not lean so much nn the hank When altering the Articles of .Association, it was just as well to have matters right up-to-date at once. ,

In further comment, the chairman said that M per IJ). butter-fat would be paid! on Aucust 2fit.li, making a total pay-out of Is lid Tlipv would have to wait a little while for the balance

In■ reply to Mr. UcOuinness, the chairman said that at the end of each season suppliers were iwMfM ns to (he number of shares they should hold, and an adjustment would be made.

Mr. McGuinne.is said that as one of those who had been dissatisfied during the past four or fire years, he was pleased to stato that during the past year there had been a "real, improvement in the management and in the work of. the office; and though he had intimated last year that this would be th# last year that he could be a supplier, he thought that if thlnfes continued so satisfactory, that his boys would continue to supply in the same way. Mr. Astbury: They might do better.

The report and balance-sheet was then adopted

It was resolved to pay 5 per cent, interest' on share capital.

DIRECTORS' HONORARIUM, The chairman stated that In accordance with the auditor's recommendation. It would be advisable to pass a resolution covering the payment to directors during the past year He pointed out that other items had Increased of late years, and considered that the directors' honorarium should be increased from 15s per day to £1 Is per day. Mr. Astbury asked whether the chairman thought the nine directors or the new manager and secretary were responsible for tho big pay-out and the splendid balance-shcit, which was In direct contrast to that Issued in previous years. Before raising their fees lie wanted some idea of what the directors had done to deserve It. The chairman said that the directors were too modest. A resolution was then carried passing the amount paid out during the previous year. It was also resolved that the directors' honorarium for the ensuing year be Increased to £1 Is per day, and that the chairman bo paid £l5O per annum. ELECTION OF DIRECTORS. Messrs. R. Law, J. A. Kemp, and R. H. Free, the retiring directors, were re-elected unopposed The chairman apologised for the absence of Mr. ,T. A. Kemp, owing to family bereavement. Mr. H. B. Burdekin was re-appolnted auditor at a fee of 25 gns. THE MARKETING QUESTION. Regarding the marketing question, tho chairman stated that lliey had again consigned through the old Bum, J. J. Lonsdale and Co. They had considered the proposed marketing scheme, but had come to the conclusion that the time was not ripe for experimenting., They had had also to consider the question of butter or cheese. At ace time butter had seemed the better proposition, but with tha continued control cheese had so far proved to be the better proposition. However, lately tho pendulum had appeared to swing In the direction of butter, and may be yet, they would have to revert to butter before the end of the season The matter would, however,, have to be well considered by the directors before .they would make any change. HERD TESTING. The chairman referred to the success that had attended the herd testing, and asked whether shareholders wished it to be continued. Mr. Hamilton, the herd tester, was present and would address the meeting if desired.

Mr. Astbury considered that this was a matter that should be gone on with permanently. Had they cone in tor the matter sii or seven years ago they would have heen much better off. Testing had been an eyeopener to him, and those who did not go in for herd testing wero certainly losers. Ho moved that the' factory continue testing. Mr. Hoskin seconded.

The chairman agreed with the value of herd testing, which would go a long, way In the direction of Increasing production, which was of such vital Importance. The resolution was carried. AITRECIATJON OP THE STAFF. The chairman said that the standard of, dairy produce had been kept up during tile' war whilst otHer articles had deteriorated. Mangatokl had turned out a splendid article during the past year, and the thanks of the shareholders wej'e due to the manager and staff. Mr. McGuinneas moved that a "vole of thuilti ba accorded the mantsar and staff. H«

did not know whether It would be advisable to vote them a small bonus. Tho chairman considered that it would be unwise for the shareholders to start this. Tho directors knew the vnlue of each man, and the matter could safely bo left In tfceir hands. The resolution was seconded and carried unanimously. GENERAL. Mr. Guy asked whether it would not be. possible to give details of) tho expenditure at each branch. Ju some parts of New Zealand companies paid out separately to each branch. The chairman pointed out that tins was done now» as far as possible, but there would be difficult# in exactly apportioning carl age, etc. Mr. Astbury saw danger in the proposal. If one branch did not do as well as another there ,would be dissatisfaction in some of the other branches. They had in the past been fairly united, and the advantages the central factory got from having outside branches should be sufficient without digging too deeply into detail. I The chairman said that the directors* had felt that there might be something in the argument re the Kaponga branch about which some people had an idea of an exaggsrated loss. The directors had installed ft cheese plant there, and had made over 1000 crates there. Mr. Guy said that he was not referring to any particular branch. He held that separate accounts should be kept. One branch was helping to back up another now, whereas they might h&ve an expensive man at one branch and separate accounts would check this. \ i On the motion of Messrs. Guy and Smith a hearty vote of thantys was accorded the directors for the work they had done during the past year. A 'vote of thanks was accorded the Press,

ALTON. The eleventh annual meeting of the Alton Co-op Dairy Factory Co. was held on Tuesday, Mr. A. J. Gibbs presiding. The report stated that the final pay-oui for the season had been brought up to Is ll%d, and recommended a 5 ppr cent, dividend on shares, malting a total of 2s o%d per lb. for butter-fat. The store profit (including balance brought down) W3S £873, and a rebate 'on purchase of 2% per cent, was recommended. Summary for season 1919-20.—Milk, 10,840,512 lb.; butter-fat, 418,783 lb.; gross weight cheese, 1,099,464 lb.; net weight cheese, 1,071,978 lb. (478 tons 11 cwt. 26 lb.; creamery butter made, 15,785 lb.; whey butter boxed, 25,088 lb. (11 tons 4 cwt.). Milk used for cheese-making: Lbs, of milk, 10,523,956; lbs. of fat, 405,064; cheese made, net, 1,071,978 lb.; lbs. of milk to lib. cheese, 9.819; lbs. of cheese to lib fat, 2 646; average test, 3.861. Used for butter-making: Lbs. of fat, 13,719; lbs. of milk, 322,556; butter made, 15,785 lb.; butter pounded, 9493 lb.; boxed with whey butter, 6292 lb.; over-run, 15 05.

The chairman stated that the output of cheese, exceeded that of the previous season by 89 or 90 tons, representing something like £9OOO. The prospects for the coming season very good. They had as much as Is 29-32 d offered for their cheese. Lengthy reference was made to the store account, It being intimated that the shareholders would be called upon to sign a further guarantee to the bank for £2OOO, the present security not sufficing for tj\e amount Of stock needed. Considerable discussion ensued on the proposed store rebates, and it was eventually decided to refer the matter back to the directors with a recommendation that no rebate would be allowed on lines sold deemed to be on a wholesale basis.

A resolution was passed consenting to the £2OOO bond. Messrs. H. Hodges and D. Plercey were elected to tho vacancies on the directorate, and it wfls decided to record the company's appreciation of the servies of Mr. J. Gibbs the retiring director. The chairman's honorarium was increased to £75. It was decided to continue herd testing if the services of a Government official could be obtained.

LOWGARTH. The twenty-third annfial meeting of tho above company was held at the factory on August 12, Mr E. .T. Fearon, presiding. Tho directors' report stated: During the season you received Is lOd per lb for. butterfat, leaving £4372 13s fid for distribution. After .making a liberal provision for depreciation of buildings and plant, a further 2d absorbing £3046 13s 7<J, has been paid out since the close of the financial year, and there 15«£1326 Oa 2d still to the good. If tho estimates of the value of cheese awaiting shipment prtfvc correct, this would pay another %d, a total 2s o%d for the season, and there would remain £lB3 for contin- j ganries It will be somo timo before a final settlement with the Imperial Supplies Department is possible. Statistics: Lbs milk 9,322,36f1, average'lest 8.021b, fat 365,5931b, cheese factory weight 989.f1061b, creamery butter 6441b, whey butter 25,8481b, Ifcs of milk to lb of cheese 0.391b, cheese to r 'llb butter-fat 2.711b.

The chairman congratulated shareholders on one of the most successful years in Vhe history of the company. The (manager, secretary and staff were thanked for the way they hr.d carried out tho company's business during the past season. It was ajrreed to pay 4s for first grade veils, and 3s for seocyd grade, and lo do away with third grade altogether. Mr Thrush thanked the company for the treatment received by tho Ngaere suppliers since the bridge was washed away. A resolution was passed requesting tlie Stratford and Eltham County Councils to complete theNgaero bridge without delay; also to push on the hydro-electric scheme. The retiring directors, Messrs E. J.* Fearon and W. J. Gardiner, were re-elected, also Messrs J3. A. Gray, P. Willan and L. Babington. Mr Thomas was re-elected auditor.

Tho directors' fees were fixed at £1 per day, and the chairman's honorarium at £IOO. At a meeting of directors held later, Mr E. J. Fearon was re-elected chairman.