DAIRY COMPANIES.

Taranaki Daily News, 20 August 1920, Page 3

DAIRY COMPANIES.

VANGOREI. The twenty-flfth annual meeting of the Mangtirei Dairy Company was held at the Eg- I mont Village Hull yesterday, when Mr. Arthur] Morton, chairman of directors, presided oven ait unusually large attendance of shareholders. i Interest was added by the fact that n was | Known that there was an organised attempt j to oust the retiring directors, ono of whom; was Mr. Arthur Morton, who had been con-; tiiiUQUsly chairman of directors ainee the in-] ce.ption of the company. ANNUAL REPORT. The annual report gave the following statistics for the year, with those of the previous year in parenthesis as follows: Milk received,; 11,648,425 lbs. (11,486,569 lbs.); butter-far | contents, 401,926 lbs. (458,770 lbs.) ; average I test of milk, 390 per cent. (3.99); cream i received, 332,630 lbs. (35:5,967) ; butter-fat contents, 322,780 lbs. (132,547); average test of cream, 36.91 per cent. (37.4); butter made. 6*7,031 lbs. (695,145); over-run, 17.50 per cent. (17.51); lbs of milk to each lb. o" butter,! 21.79 lbs. (21.61). During the year £41,889, 6s 3d had been paid to suppliers, being eqtial to 17.19 d per lb. of butter-fat. After providing £540 ISs for depreciation there remains in hand a balance of £5528 os 7d which will allow of a further payment to suppliers, bringing the total payment for the year equal to 19.45 d, The balance-sheet showed that the total turnover had been £54,861 2s Id. Wages and salaries had cost £1924, working expenses £2943, management expenses £1037, export charges £5Ol, depreciation £540. The sum of £41,889 had been paid to shareholders, and there was a balance of £5528 remaining. Mr. Morton spoke at considerable length, A3 reported elsewhere, and In concluding he said that the balance-sheet was a very satisfactory one. They had paid out Is 7%d, which was %d more than they received for It, fob, He thought this very satisfactory indeed. Mr. Morton then moved the adoption of the report and balance-sheet. Mr A. Corney seconded. Mr. Baxter asked why something had not been done in the imatter of installing a dried butter-milk plant. He understood this could be Installed for £I7OO, and would produce dried butter-milk powder valued at £2OOO in one season, and they were only getting £2OO now.

The manager said it would produce 2000 lbs. of dried material.

The chairman raid that they considered the process investigated too costly in the way of installation and royalty Tliey were obtaining Information regarding other plants, and when this was available would consider the advisability of installing a plant for the manufacture of dried buttermilk powder. Mr. Baxter asked how it was that the New Zealand Dairy Company in the Waikato had been able to instal Dutch plants. The chairman said that they wero waiting for information from Mr Goodfellow. Questions were asked by Messrs. I'eters and Stansfteld regarding the erection of the' groyne and also the depreciation on the water plant. . Mr. H \Y. Baxter said that he had always advocated tho establishment of a reserve fund He pointed out that some time ago a premium of 5s had been charge on share capital, and this should have been placed to a reserve account instead of being paid out as extra bonus

The chslnman said that it would pay out very little bonus Mr. Goodrich asked why the expenses of the Mangorei creamery had gone up from 4s lid to 8s per 100 lb. butter-fat, whereas some of the others had decreased. The chairman pointed out that tho supply had decreased. In reply to a question re tho establishment of a dual plant, tho chairman said that the prospects for the next fire years, were in favor of butter. Mr. Burrowes said that during the last ten years they had lost an average of £12.000 per annum by not going iu for cheese. He considered that there was a good future ahead for casein. In reply to questions, tho chairman said that the casein works at Aramoho had been offered for sale to the proposed Co-opomtive Casein Co. but if they wero going to have a en-nneriifke drying plan: for TaranaW it must be placed in a central position In Taranaki. say anout. Inglcwood, where the casein eouid be sent within a few hours of being taken out r.f the hoops. M'r. Goodrich he'd that it. paid better to rear pies and calves with the skim milk.

The chairman agreed, pointing out that be had supplied pigs tc the bacon factory, and that afier allowing for the cost of pollard, there would bring them in £2OO, or over (id per lb. on bis butter-fat. After a little further discussion, in which some personalities were Indulged in the report and balance-sheet were adopted. ELECTION OP DIRECTORS. There were two vacancies in the directorate caused by the retirement by rotation of Messrs. A. Morton and Will-loons. The latter did not seek rtz-election, as lie was leaving the district. Mr. Morion said that ho had been chairman of the company since its Inception 2a years ago, and h;:d always acted honestly in the best interests of the companv. as he every shareholders would give iihu credit for, whether they bad seen eye to eye with him or not. When returned unopposed three years ago for the first lime, he had taken it as a compliment, and thought that nt the conclusion of his twefity-flve years, ho would not stand again, but in view of certain happenings of the past fortnight, he had decided to again offer his services. There wero three nominations, and the election resulted: A Morton 175, R. W. D. Robertson 140 (elected), and T. Hawkings. 13!) Mr. Tunbridge was re-elected auditor. PROPOSED INCREASE OP SHARE CAPITAL. In accordance with notice of motion, Mr. Buijowcs moved in the direction of altering 'he Articles cf Association so as to, increase the capital from £12,000 to £22,000. In speaking to the motion, he said that 'ie had felt, with several others, that they 'iould have a dual plant. He considered that through not having a dual plant they had lost an average of £12,000 per year during the past ten or eleven years. This he considered was too much to lose. A cheese plan; was also able to be used as a rennet casein plant. A lot of people ran rway with the idea that by taking the casein cut of the milk they were taking away the whole food value, whereas he quoted extracts to show that it only reduced it by three per cent. If they manufactured dried casein they would be-able to pay out an additional 5d per lb. butter-fat, after paying working expenses. He did not know what the position would bo regarding cheese. Mr Pearce seconded

Mr. Rowlands held that there would bo no harm in increasing the capital, as tho additional capital would be available when required. They should, however, be careful about altering the basis of allotment. The chairman said that they had 282: i shares of the present shares available for allotment, rod these would be all taken up by the increased supply in two or three years. In reply to a shareholder, the chairman said that the extra capital would be sufficient to inslal casein plants at all the branches Before they went in for cheese the directors could again approach the shareholders. Inerasing share capital did not make shareholders liable to take up further shares. Tho resolution was then put and lost by 4,1 votes to 29.

Mi*. Burrowes then moved in flic direction of Altering the Articles of Association so as to provide that (lie basis of allotment shall be the share for each 50 lbs. of butterfat supplied during the year instead nf as at present the shnre for every 17 lbs. of butter-fat supplier! during the maximum months' supply. The mover stated th:it in view of the previous resolution being lost there was no necessity for this amendment, hut the chairman stated that there was a desire* to place the allotment on an annual basis, nnd the resolution could be' amended to an equivalent amount. Mr A. H. Taylor seconded. Mr. Goodrich moved as an amendment that the basis be OA Ih of butter-fat per annum, which it was estimated would he equivalent to the present 14 lb. basis on the maximum month's sunplr 1 Mr. ft. Oihs«n sornnded the amendment, which was carried. A further amendment by Messrs. .1. Eowen and L. Goppcrth that the basis he IAO lbs . being lost. The resolution, ss amended, was then carried on the voices, but. on a show of hands did not gain the requisite three-fourths majority. OKXEBATi. A vote of w*s accorded the directors, the manager, and staff for their services during the past year.

BELL BLOCK. The annual meeting of the Bell Block Dairy Company wffs held on Wednesday evening, Mr. .T S. .Connett (chairman of directors) presiding over a large attendance of shareholders. ANNUAL REPORT. The 24th annual report detailed the quantities of milk received as follows: During' cheese making period, Bell Block: 7,098,8251b of milk, producing 306,5741b of butter-fat and tftMWU) tf cbteie, tba pouna* of milk rt«

quired per lb of cheeso were 9.0!>, the yield 2.54, and the average test 4.3 X. The figures in respect to the Hillsborough branch factory were 2,932,701, 124,436, 320,494, 9.15, 2.57 and 4.24 respectively. Butter-making period, JJell Block: 1,113,2571b of milk, producing 55,7371b of butter-fat. Hillsborough: 464,2901b of milk, producing 23,0801b of but-ter-fat. Butter was made during April, May Bnd June, when the tests were 4.9, 5.11, and 5.1.4. After writing off £2BB 15s lid for depreciation tboro was a balance for allocation of £11,309 lis Sd. The directors recommended Ihe usual dividend of six per cent on share capital, and further .jhymcnts vo suppliers of 5%d T>er lb of butteiM'at for cheese (Making, and 3d per lb of butter-fat suplicd fur butter making, which, with the 6 per cent dividend, was equal to an average payment of 23 3-lid per lb. for cheesemaking, and 21 l-10d for butter making.

CHAIRMAN'S ADDRESS. The chairman, in moving the adoption of tho report, said the year just dosed hail been a notable one in the history of the industry as butter companies had at last, after repeated and persistent efforts. succeeded in getting Parliament to recognise the justice of their claim for a refund of the notorious equalisation fund and to vote a. sum of money (about £260,000) iu settlement thereof. This company having made cheese during the war period was not affected, hut they were glad to see that justice had been done to the butter companies. Mr. Connett then went on to refer to the visit of Messrs. Murdoch and Forsyth to America and England with the object of making investigations into the different by-pro-elucts, such as imilk powder, condensed mill;, milk sugar, and casein. Their reports showed that much money was being made by those engaged in milk powder and the condensed milk industry, but the Initial cost In the way *of buildings and machinery was heavy and large supplies of good water and of coal were required. As ,i result, of these reports committees had been set up in different districts for the purpose of selecting central sites for manufacture and for procuring coal supplies with a view to embarking on the venture if it is likely to continue remunerative. For years past, Mr. Connett continued, a feeling had wtisted that a better means of marketing dairy produce could be found, and attempts hat] been made from' time to time to bring this about, hut without success, and whilst Messrs. Murdoch and Forsyth were in Great Britain they were instructed to also investigate this matter with a view to recommending some scheme on their return. With the assistance of Mr. Ellison, London representative, they had done so, and what was now known as the C.W.S. scheme had been fully outlined The C.W.S. was a federation of co-operative societies throughout England and Scotland, which had been formed like the co-operative organisations in New Zealand for the beneflt of their members, and as they had a very large retail connection it was thought there was a reasonable chance of the two working together for their mutual advantage. Interested agents of course had seen no good in the proposals, but the National Dairy Association had approved the scheme, as also had a representative conference at Palnturston North, and steps were now being takea to give effect to the proposals . A large number st companies would no doubt join and it would mean one more operator in the field and thus be the means of putting competitors on their mettle to the benefit of the dairy farmer. Continuing, Mr. Connett said the past season had been a fairly successful one. He referred to the visits of Mr. Stevenson, of the Dairy Division, to the factory during the year and said.the present records showed a considerable improvement on last year's figures They were still running light in moisture content and he hoped that in future the.v would be able to do better in this connection. Proceeding. Mr. Connett referred te tho resignation of the manager, Mr. Koller, who he said was relinquishing factory work and entering Into business on his own account at Hamilton They all joined In wishing Mr. Koller success in his new venture Mr. W. Taylor, of Waitoltoi Dairy Company hart been appointed to fill the vacancy. Mr Taylor came to them with a splendid reputation, and lie expressed the hopo that he would receive the whole-henrtcd support of all the shareholders. Mr. Cor.nett also touched on the question of shipping instancing the Improvement that took place last season compared with the previous venr. In this connection much had been said, lie continued, iii favor of producers owning their own ships, hut it was just a question to his mind whether the position would not largely' right itself when the congestion hrought about by the war was cleared away. The proposal to he successful would have to he thovoughly representative of the whole of the producing interests. Mr. CouniHt then referred to various items appearing in the linlance-shoet. In conclusion he expressed sincere regret that Messrs. 0 I'itt anil A Marsh, who had boon on the directorate for many years, had resigned their positions, and then formally moved the adoption of the report.

Air 11. c. Sampson seconded. There was a short general discussion after which the report was adopted, ELECTION OP DIRECTORS. There were five vacancies 011 the directorate three caused by the retirement of Messrs. 1 Connett, H. C. Sampson, and 11. Salway in rotation, and Messrs. A. Marsh and C, ritt who have resigned, having given up dairying It was decided -o take separate ballots, so that in accordance with custom the Hillsborough district would bo assured of representation Hillsborough vacancies were dealt with first, Mr. H. C. Sampson being reeiecte:! unopposed and Mr. Noble Hill was elected unopposed to succeed Mr. A. Marsh. For the Bell Block district Messrs. Connett ,1n « saMvay were re-elected, and Mr. L. Jtimdle was elected to succeed Mr. Pitt. Mr. A. J. Tunbridge was re-elected atidlior at a fee of £lO 10s. A NEW FACTORY, After a short discussion it was resolved "That in the opinion of this meeting It is advisable to proceed at once with the erection of a new dual factory and plant, and ihat the directors be authorised to deal as expeditiously as possible with all preliminary arrangements. GENERAL. Mr. \V. Taylor, who was recently Appointed manager, briefly addressed the shareholders, and also answered a number of questions. He expressed the hope that he would receive tho J loyal of all suppliers, assuring them 1 that so far ns he was concerned it would i always be his earnest endeavor to do his best in the interests of tho company. • A very hearty voto of thanks was accorded to the retiring directors, Mftssrs. Marsh and Pitt, appreciative reference being ma do to the valuable services they had rendered to Ihe company. The chairman was voted the usual honor-* arium of £3O and the directors £7 10s each. At a subsequent meeting of directors Mr. J. S. Connett was re-elected chairman, At tho close of the meeting refreshments were handed round. MANUTAHI. The annual meeting of the shareholder of the Manutahl Dairy Company was .held at the factory on Wednesday. Mr. C. S. Tonks, chairman of directors, presided over a small attendance. Summary for season, 1919-20: Lbs. milk, 7,350,773; lbs. butter-fat, 274,942.7'; lbs, cheese, 724,02"»; lbs. milk to lib, cheese, 9 898; lbs. cheese to lib. butter-fat, 2.64; cheese test, 740 ; weight of cheese, 323 toi\s 4 mvt. 2qr. lib,; whey butter, 7 tons 1 ewt. J yr.; creamery, 1 ton 19 ewt. 2 qr. The chairman said that they had had another successful season. The output of 323 tons* was small compared with that of some of the neighbouring factories, hut only 13 farmers were supplying their own factory, and the average production for each supplier was 25 tons or 2fi2T» lb., which would compare very farorably with the average of any other factory in Taranaki. A payment of 21d had been made, and they hoped to make I a further payment of 3d or 4d. He did not. I think the payments of suppliers would enme I up to last year's, owing to the higher cost of manufacture, Reference wwa made to tho work of the dried milk deletes, also to the c\Y,S scheme, juiiieh the directors were opposed to.

Messrs. S. C. Tonka, G. Geary, and Muggerirtge were elected directors. It wan decided to pay 0 per cent, on all paid up share capital. A discussion took place as to enlarging the store, but no action was taken.—Abridged from Star.