TARANAKI FARMERS' MEAT CO., LTD.

Taranaki Daily News, 23 August 1920, Page 8

TARANAKI FARMERS' MEAT CO., LTD.

ANNUAL MEETING. The fifth annual general meeting of the alovo was held at tho Workers' JSall on Saturday. Mr. J. T. Quin presided over a good attendance. CHAIRMAN'S ADDRESS. Mr. Qttinn, in moving the adoption of the fifth annual report and balance sheet, congratulated shareholders upon another successful year's operations. Tho profits for tho year, after providing tho sum of £6500 for depreciation and £5750 as a reserve for income tax, was £891!) 18s lid.

A comparison with last year's figures re- j vealed the fact that the paid up capital of (he company increased during, the year by £7,. SCO, and tlip calls in arrear decreased b'vi £685. * The chairman proceeded: ! The profit made by tho company, in the opinion ot the directors, justified an increase 1 in (he dividend, and it was therefore decided ro recommend payment of an 8 per cent, dividend free at income tax as against 6 per cent last year. In doing stf the directors, apart from the increased earnings of the company had in mind the hope (hat such Increase in dividend would result In growers who have not already taken up .shares would decide to do so as an investment, which I would again remind them is free of income tax, whilst thos who already hold shares would be Induced to increase their holdings. Sundry creditors, inulutUng Government advance against meat in store tills year, shorn £5030 In excess of last year. The amount, namely £378,102, is a very big one, and Is represented very largely by advances made against meat awaiting shipment, and will of course be reduced as shipment becomes available, until it ultimately vanishes. : It will ho noted that this ye..r a much] greater sum had to be placed- to "reserve for income tax." This, of course, is owing to the Increased profit, and is unavoidable. The tux is 7s 6d in the £, after allowing an exemption of £3OO. . Turning now to the assets side of the balance sheel, it will be noted that during (he year sonic. £43,617 has been added to "and buildings, plant, etc. It will, I think, he readily recognised by shareholders that wiih tills company, which has been established only four years, It is absolutely necessary that a' reasonable amount of money should be expended in addition to buildings, plant, and machinerjrfroni year to year until the works are sufficiently equipped to deal with all the stock the shareholders can produce, and also to economically work tile several by-products from such stock. Stock, stores, etc, on hand have increased compared with last year's figures by £42,047. The shortage of shipping, compared with the Increase in the number of animals slaughtered, and the extra cost of'manufacturing materials, is io a very treat extent responsible for the increase. Stocks have been■taken in at sat'o values.

Unrealised consignments have decreased by about £40,!i00, owing mainly to the fact, that we have been alilc to sell outright our .pells and a considerable proportion'of our talliiv at remunerative values, Instead of consigning and consequently taking (lie risk of a flnctu:,ting market, as was <hp case last year. The realisation of • v.nmenls open as shown on last year's hah. sheet has, however, turned out most satisfactory.

The next item on Ihe balance sheet Is sundry debtors, showing a decrease of £11,623, which encouraging. The sum as disclosed "ill the balance sheet, £4833, is comprised mostly of storage on meat due by the Imperial Government for the month of .Tune, and has since been paid. The balance is .made up of small items, which are all good, and mosUof which have since been collected.

With regard to the operations of the company last season, 1t Is indeed gratifying to be able to report to shareholders that killings have increased by approximately 20 per cent over the foresoifig season. The actual figures showing the increase are given In the printed report, and I desire to take this opportunity of oppressing the directors' thanks to growers' for their loyalty during the past season. The quality of the stock treated showed a.i appreciable Improvement .'compared with previous seasons, but there is still considerable room for improvement, and I would Impress SB 10 " farmers the necessity of exercising greater care In finishing stock, especially as nur meat will In the future tie sold on the open market. This company, with its efficient plant and staff, combined with its situation as regards railway and port, is in a position to sreat stock with equal advantage as compared with any other New Zealand freezing company. The directors have been able to Increase the dividend by reason of the fact that our products, over which we had control tallow, pelts, and hides, during the season just ended reached top values, and we availed ourselves of such values. For this reason I desire to point out to shareholders that we were able to pay approximately 15 per cent more for stock than the previous seasotr, representing an Increased payment to growers of £24,302 calculated on the number of animals slaughtered during the season 1918-

You will notice 111 tiie report that the directors propose to Increase the freezing capacity at the works by approximately 30 per cent., owing to the fact that It was found impossible during last season to deal with all the stock offering, and during the busy months of the year wo were reluctantly compelled to curtail shareholders' deliveries We hope, however, to have the necessary freezing plant installed in (rood linn- for next season's operations, which we hope will enable us to accept promptly all stock, offering from shareholders. Increasing our freezing capacity naturally means increasing our various by-products departments, and this fact has hy no means'been lost sight. of We are at present malting'extensive additions to our tallow, manure and preserving departments, and hope, by the time next season commence, to hare a fully equipped oleo plant. Enquiries are also being instituted concerning a soap-making plant and a phosphate-grind-ing plant; the latter In anticipation of heavy arrivals cf rock phosphate direct to New Plymouth from Nauru Island We are al»o mailing enquiries as to the cost of n machine for extracting seed and "bidi-hidi" from wool. p We are advised that a similar machine is working most satisfactorily atWaingawa at low cost To successfully carry out. all tlieso proposed extensions, it will of course be necessary for the company to have more capital, and I take tills' opportunity of appealing to shareholders to inrrease their present holdings. The company has proved by the balance sheet placed before you to-da.v that it Is a profitable concern, and apart from the fact that it has considerably enhanced the value of stock in the district In which it Is operating, an 8 per cent dividend free of Income tax is a sound investment.

With further reference to the extensions of the company's operations, you will no doubt remember that In my lust annual report, I mentioned that we proposed tn install a omplete fertiliser mixing plant. I am pleased to be able to report to shareholders that this machine is now erected and working most satisfactorily, and we have taken pains bv consulting an analytical chemist who specialises in fertilisers to ensure that our various mixtures are suitable to the Taranaki soils. The nrices wc are charging for these mixtures leave only a small margin of profit to the company, as we do not lose sight of tlio fact that the company Is essentially a. farmers' company, and therefore the policy of your board of dlreclors Is to give shareholders their fertilisers at the lowest possible cost consistent, with efficiency. During the year under review various labor demands have been made, and at a conference of freezing companies' delegates, held lasl February, it was agreed tn concede a bonus of in per cent, for hourly men. and 7% per cent for piece workers over and ahove the rates agreed upon in April, 191. H. This, of course, has resulted in a considerable increase in working costs, and the profit and loss account has sufTercd accordingly. Whilst on Ibis Important subicct of the lahor question I should like to stale, however, that as far as our\worlts are concerned, the relations existing between employer and employees have been most amicable, and no serious disputes have arisen I take this opportunity of expressing the thanks of the directors to those employed at. the company's works for their loyal services during the* year.

The standard of duality of thp various bvprttiucts has been morn than fully mainlined Reports from thp various buyers of our products ha»o been most satisfactory, ami In many oases flattering, and 1 feel sure llirl our manufactures compare favorably with those of any other freezing company in New Zealnnd.

T am pleased to he able to state that the rhipn ng problem has greatly Improved since I that though there will he some little difficulty In fully clearing our freezing stores before next season commences, the congestion nil! not he nearly so acute as It has heen during the past two years Our advices indicate ibat the shipping .ivniiable will be sufficient to so clear our stores that it wilr he urny-ees-sary nest-seasnn to restrict our slaughtering in the same manner as we had, to some exl*nt, i.o dn last season. various factors contributed to the shortage of refrigerated shipping space durins the year .ratf ended. Owing to the Imperial Government ncmnndlng high prices for frozen meat, consumption was considerably reduced, resulting in serious congestion in the cold stores at Home, which in turn delayed 'the discharge of frozen cargoes, and of course the prompt re♦■irn of the vessels to New Zealand to pick up further cflrpoes. ✓- With regard to the fondition of the moat In our freezing si-res. shareholders will no doubt r."™ in the n»wsnapere reports indicating that th» meat wli.leli has b»eo held for a con-

siderablo time iu some of the New Zealand freezing works is in an unsatisfactory state. I Save made careful enquiries as to the condition of the moat in our cold stores, and can assure' shareholders that we have nothing to fear In this direction. And now regarding the future. The outlook is imuch brighter than it has been for some time past, and I think we can confidently look forward to a good season and satisfactory prices for our fat stock, jjy the time ths new season commehces, I trust matters on the Continent will have been peacefully settled, and this will no doubt result in a T)lg demand from that quarter for our products. The United States of America are also going to be big customers, s« that I anticipate an unprecedented demand for our primary products, and 11. is the duty of the growers of Taranaki to seo that the demand Is i'ulfy met. The Dominion is by no means producing all it is capable of, and it rosls with the New Zealand farmer to pursue a vigorous policy of increased production.

Referring to the share capital, tho chairman considered it was not fair to the company that there should be £2600 of unpaid calls, and he strongly urged all shareholders to arrange to pay up as soon as possible. The capital of £8(1,000 was not sufficient, as would be recognised when lie said that out of this sum had to be provided land, buildings, machinery and all other equipment. He recognised that money was worlh at least six per cent, to the shareholders, and it was partly to Induce them to invest more largely in the company that the dividend this year was to be 8 per cent. The directors hod to give their own guarantee to the bank for £40,000, and that was not a fair thing to espcct of them, especially as It imlght affect their other financial arrangements. The shareholders should And all the requisite capital and jelieve the directors of all financial liability on behalf of the company. Ho therefore urged them to provide sufficient capital or successfully car lying on the business.

In conclusion, the chairman made appreciative reference to the services of Mr W A McCutchah, whose retirement from the directorate would be a great loss', as he had proved one of the most loyal, staunch and able directors thai any. .company could have Mr. W. Gray (Okato) seconded the motion.

REPLIES TO QUESTIONS. Mr. Sandford advocated arranging the calls on shares 011 a basis that would suit small investors, but the chairman pointed out such a course would involve too much clerical work The calls were already spread over a period' The question of reducing shares to £1 was for the directors to decide. Mr: Hughes, after being furnished with details as tp the remuneration of the directors said he did not consider they were naiii enough. • 1 Mr. A. Morton emphasised the need of and Importance of extending the works, and he referred to the great benefit to fareners that the manuracturfe of manures would prove and stressed the need for putting tho works in -i position to handle the Nauru phiwnbite whl-h was essentia! for the land of the district The larmers were prepared tt> pay a high price Tor this valuable fertiliser, but had been unablo to procure it. Tho additional capital reciuired was for the benefit of the, industry, and the fact that It was proposed to increase the dividend to S per cent sflowsd that tho shares J" 11 * " n 'l Profitable investment that justified the company in appealing to the whole of the public of Tatanaki for support.

In reply to a question as to recovering the unpaid calls, tho chairman said tho directors did not want to go to extremes. llr. Gray suggested appointing a collector to laiher in the overdue money and to place new shares.

In reply to questions concerning the sale of manures at the works, the chairn:..n stated tint these manures could be delivered either to tile farmers direct at the works or could he placed on trucks at the railway siding but no credit, was given for the-goods. As to the smallest Quantity that would be sold anv shareholder could call at the works and carrv away enough to nut In his pocket, provided he paid for It.

11l reply to Mr. 0. Colson, the chairman said that supplying meat retail would he too ... pensive. It was, however, a matter for the directors lo consider

A question was asked as to the position of | the en:npany hj; relation to the Government i advance of £15,000 towards cool storage adJ dit|ons, and the chairman stated that if the company were Imperatively called upon to repay the amount it would have to do ao. The matter of tho compalfe' employing its own buyers was raised by a shareholder, who contended it was not advisable to hare one man buying for tho company and for auctioneers as veil. The chairman explained the nature of the arrangements in the past, and added that the directors would decide what was best to he done The report and balance sheet were then adopted. DIVIDEND. On the motion of tho chairman, a dividend out' P6r Ctnf ' WaS ilwtl,orlaed t0 be I> ai(l ELECTION OP OFFICERS. Messrs. Marfell, Wright, Morton and Quln were re-elected directors, and Mr. E P Robertson, of Tahore, wa*. elected to fill' the vacancy caused by the. retirentent of Mr. McCutchan. Mr. E. P. Webster was re-appointed auditor,, the fee being Increased from T5 guineas to 100 guineas. THE STAFF.

The chairman moved a hearty vole of thanks to the stalfjjfor their loyal services.. He said the staff was very competent, and a\ efficient as any In the Dominion. The question of adjusting the salaries was one the directors would deal with. He also staled that the wqges paid amounted to £44,274, and £326 - 100 had been paid for stock. This showed how thf! works had grown, and how large was the amount of money circulated in the. town and district. In reply to a shareholder, who suggested that a bonus of Ave per cent, should he given to the staff, the chairman said that under no circumstances would he vote for a flat rate tonus, as whatever rewards were given should tie on tho basis of merit, The motion was carried. In returning thanks, the secretary (Mr. H. B, Gray) said the work hist season had been onerous, but the staff was most efficient, and all the members took a great Interest in their work and in the company Some discussion took niace as to the amount to be paid to tho chairman and the directors nrenrually it was decided that the chairman's honors riuni he £250, am) that each of the directors be paid £1 10s in respect of etery meeting attended, exclusive of expenses A vote of thanks was passed to the directors for their services.