HAWERA DAIRY COMPANY.

Taranaki Daily News, 5 August 1921, Page 5

HAWERA DAIRY COMPANY.

TWENTY-SIXTH ANNUAL MEETING. The twenty-sixth annual meeting of the Hawera Dairy Company was held at Hawera yesterday, when Mr. J. B. Corrigan (chairman of directors) presided over an attendance of about 200 shareholders. In opening the meeting, the chairman intimated that a payment of 2d per pound butterfat would be paid out at that meeting, ue also stated that the company had received several offers for their output, and that these would be discussed later. REPORT AND BALANCE-SHEET. The report congratulated shareholders on the satisfactory position of the company, and continues: The year hrs been one of the most extraordinary in the history of the dairy Industry. Last year at this time suppliers were elated over the prospect of b*g prices for produce, and large pay-outs were anticipated. However, through congestion ot old season’s produce lack of shipping space, coupled with strikes and “go-slow” policy, we were unable to get our produce out of New Zealand during the first half of the season, consequently we were denied full advantage of the high prices ruling. About New Year, owing to the congestion, most factories able to do so went in for butter. Your directors considered the question and mad? all the butter our plant could cope with. To have gone into butter entirely would have entailed an expenditure of about £7OOO In buildings and plant, and before the buUdinfs could have been completed the best part of the season would have been over. At the present time half of our sec son’s ■irfhke of cheese has been sold, the balance, with the exception of 3588 crates'still in store In New Zealand, is afloat going Home to the worid’d markets. The 3588 crates in store will be shipped by the end of July. The cheese market is shewing great improvement lately, and if it continues till the whole of our cheese is sold, we will have a Very successful year. Under the circumstances outlined you will understand that the amount shown as “estimated balance for distribution” is purely an estimate based on cheese afloat at 8d per lb., f.0.b., and the balance in store in New Zealand aj. 95s per cwt. On these figures being it will enable us to pay out 2s 1 l-16d per ib butterfat over the whole season, after Uniting down the assets by £lOlO, and providing for interest on fullypaid shares at 6 per cent, per annum, absorbing £BOB 14s 2d. At the present time we have paid out Is 6d per lb butterfat for the season, and a further payment of 2d per lb will be made on July 20 If possible, a further Id per lb will be paid out on the day of the annual meeting, and the balance will be paid out as soon as account sales come to hand for the cheese. The attention of suppliers is drawn to the increased of manufacture and marketing, as revealed in the statistics. Charges from the time of delivery of the milk to the factory until tlie rendering of account sales for sale of cheese are equal to 9.6 d per lb butterfat. Mr. C. H. Bowman has been appointed general manager of the company for the ensuing year. The statistics submitted with the previous year's figures and the pre-war figures are as follows: Pounds of milk received: 1921, 40,351,147; 1920, 42.426,831; 1914. 32,730,786. Pounds of butterfat: 1921, 1,604,377 ; 1020, 1,676,171; 1914, 1,231,520. Average test: 1921, 3.97 ; 1920, 8 95; 1914, 3.76. Cost of manufacture per lb (cheese): 1921, .Slid; 1920, .82d; 1914, ,54d. Management and charges to f.o.b. per lb: 1921, 1.69 d; 1920. 1.38<J; 1914, 66d. Total cost per lb all charges, including repairs and depreciation: 1921, 3.64 d. Used for Cheese Making. Pounds of milk: 1921, 35,758,288; 1920, 42,299,492; 1914, 29,801,404. Pounds of butterfat: 1921, 1,412,726; 1920, 1,670,207; 1914, 1,113,562. Pounds of cheese made: 1921, 3,703,637 (1653 tons Scwt. Oq. 211bs) ; 1920, 4,406,424 (1967 tons Scwt. Oq. 81bs.) ; 1914, 3,005,625 (1341 tons 15cwt. 3q. 2libs.). Pounds of milk to make lib of cheese: 1921, 9.654; 1920, 9.605: 1914, 9.91. Pounds of cheese to lib butterfat: 1921, 2.621; 1920, 2.638; 1914, 2.699. Average test: 1921, 3.95 ; 1920, $.94; 1914, 3.73. Used for Butter Making. Pounds of milk : 1921, 4,592,859; 1920, 127,339; 1914, 1,935,382. Pounds of butterfat: 1921, 191,650; 1920, 5964; 1914, 118,018. Pounds of butter insde: 1921, 225,874 (100 tons 16cwt. 2q. 261b5.) ; 1920, 6793 (3 tons Ocwt. 2q. ITlbs) ; 1914, 136,151 (60 tons 15cWt. 2q. 15lbs). Pounds of milk to make/11b butter: 1921, 20.33; 1920, 15.74. Over-run: 1921, 17.85; 1920, 13.9. Average test: 1921, 4.17; 1929, 4.68. The balance-sheet showed t/tet the turnover for the yeat had been £225,269 Ils lOd (cheese, £155,748 18s; creamery butter, £29,457 14s 7d; whey butter, £10,066 19s 3d). The total manufacturing charges were £15,013 14s 2d (wages and allowances, £7686 18s 3d: coal, firewood and power, £245$ 14s 9d: rtqulsites, £4776) ‘ repairs and renewals, £2184; railage, £937 10s; freight, freezing, shipping and storage. £25,181; cheese crates, butter boxes, £4250; depreciation, £1010; carting, etc. £453; insurance, etc., £1266 IGs 6d; interest, £2290; charges on consignments, £9743. The sum of £120,350 had been paid out to suppliers, and there was £41,566 to be disposed of.

CHAIRMAN’S ADDRESS. The chalru.an, in moving the adoption of the report and balance-sheet, said: “We have read a lot lately about bringing down the cost of living, will ch has gone up so rapidly of late year.-. Some suggest cutting down wages; others suggest cutting down merchants' profits, etc.; but to my mind this is not the solution. If you cut down wages ydu are immediately taxing one section of the cqmmuDity to benefit another. This at once breeds discontent in the worker. I maintain that it does not matter what wages we pay, providing our employees earn it by giving us ah equlvalent back In labor. This has not Letsn our experience in the past; consequently we are faced with the position as It is to-day. So long as we go on the way we are going the cost of living will keep up. On the other hand, if everyone does a little more for the wages they are getting production will be Increased, and tlie cost of living will automaticlily be brought down. I can imagine hearing some of the workers say when they read tlds: ‘O|i, he Is wrong; he is going to sweat us to put It in the capitalist’s pocket.' I will endeavor to show how erroneous this is. The capitalist, so called, has his business, whatever it may be, and If his workers do a little more for what he is paying them, he will be able to run his business so much cheaper, and - down comes the cost of living. The same thing applies to our farms and factories. Fifteen years ago agitators were not known in cheese factories. When they were first invented we thpught they would effect a saving of labor. Not so: instead of the man following round stirring the vats with a rake, you generally find him rolling up a cigarette while the agitator is doing his work. Instead of two men doing three vats, the same old conditions pertain—one man to a vat. So it is at everything else. In these circumstances can you wonder at the cost of living keeping up. Now this same argument applies to the capital invested in a business. I maintain that capital is only worth the current rate of interest, plus, say, two per cent., whatever the nature of the business it is engaged in. The persons responsible for that capital’s earnings are entitled to a division of the profits after capital has been paid his share. If we could get some workable system on these lines I am fully convinced we would soon eradicate strikes and go-slow policy, and bring the cost of living down.

“This brings me along to another question that the producers and workers of this country are vitally interested in—that is, the shipping question, and the sooner the producers and workers tackle this question in earnest the better for this Dominion. That it is a national question no one can deny; yet for some reason or other no one seems game enough to taekle it. I notice the Acting Prime Minister got the weak-kneed Farmers’ Conference the other day to postpone the question until Mr. Massey returns. Supposing the ship Mr. Massey is returning by gets wrecked and goes to the bottom of the sea ; well, that ends the shipping question, and gives this huge trust that is drawing the very life blood out of the producers of this Dominion another life, and lets It go on exploiting us the same bm In the paat, Produeers and workers, wake

up and combine >o stop this exploitation. The way I would suggest tackling the shipping question is this. At the present time there is a surplus of shipping all over the world. 1 estimate it would require £5,000,000 wurC of shipping to handle the produce of this country. The same snipping could handle the Imports. This shipping could he leased on a compulsory purchasing clause—say, the purchase to be made Ln six or ten years time. Then I would advocate that we evolve a system of running them on co-operative lines. After we provide interest and sinking fund the balance of profit be divided between the seamen and producers. This would give our seafaring brothers an Interest in our business, and give them a chance to put something by to keep them when they get too old to carry on their seafaring life. There would be no inducement then for strikes or go-slow policy, and the feeling of industrial unrest waich i- taking charge of this Dominion would Ire stilled. "There is also another question; that wants to be tackled 1 , and that is insurance. I think the time is ripe for a federation of all th© co-operative factories In South Taranaki, if only for this one question. When you think it has cost this factory anything from £3OOO to £4OOO this year for Insurance, marine and fire, you will quite recognise what it means to the producers of South Taranaki, let alone the whole of the Dominion. It is time the producers wcke up and interested themselves In these questions, and tried to get released from the tentacles of tlie great octupuses that threaten our existence commercially. “1 consider it my duty to bring be-fore shareholders the vital necessity to increase production to their very uttermost exertions, and go about It in the right way by growing pienty of fodder for their cows and have a patch of lucerne for the dry weather to keep up the flow of milk. Plenty of feed to give your cows during the period they are dried off is a vital to build up the cow ready for another season’s production. Keep testing your herd, so as not to be keeping the robber cow.—that is, cows that do not produce enough for their keep. Be sure and avoid over-stocking—better have a bit of feed go to waste than have more cows than can provide for. Last, but not least : Keep up the productivity of your farm to a -high standard by using manures. No matter how good land is you can always' improve its fertility by using manures. Now we are all apt to adopt the penny-wise-pound-foolish method of not putting something back into our land by way of manures, and I can assure you this Is one of the main things to help on increased production. “The outlook for the present season looks bright and much better than it looked likely •to lie two months ago. The cloud that seemed i to be coining over us then has gone past, and has left in its place gleams of sunshine wL'leh promise to give us good prices for our dairy produce next year. This gets us to the ques-

tion of whether we should gn in for an up-to-date dual riant to enable us at any time tp , turn wholly into the manufacture of butter, j It is not an opportune time for large capital expenditure, and the cost would be about ; £7900. 1 would like an expression from the i shareholders as to whether we should entail ; this expenditure.” . He then moved the adoption of the report. The meeting then w nt into committee, and I on resuming about three hours Inter there was nothing to report. The discussion of the report and balancesheet then took place, after Mr. Pearee hau seconded the adoption. THE DISCUSSION. In reply to Mr. Standish, the chairman said ' that in allowing for depreciation the directors had had to keep wit! in the limits allowed by the Act. Had they gone above this the amount j would have been liable to taxation. In reply to Mr. Laurent the chairman aid that the value of the cheese on board ship and In store had been estimated on a very ■ conservative baai“ an ! If tlie present prices I ruling continued they would probably be able to pay cat an additional 4d. In reply to Mr. Malone, the chairman said that no interest was paid on any but fully-paid-up shares. This was to prevent people who only supplied for one year from holding on to shares with the idea of getting u per cent, on money invested, instead of endeavoring to sell them to someonj else. It would i be hal'd to differentiate. This had been the -ule since the inception of the company. A shareholder consldereo’ that Interest should be paid on the amount of money paid on the shares. The chairman pointed out that it the money were paid in inter»*st it would mean Jess pay-out, as the interest came out of - butterfat. Mr. Laurent pointed out that at present a jnan with 50 fully-paid-up shares and 50 not fully paid up received interest at 6 per cent, on the fully-paid-up shares, whereas a man with 100 shares on which £SO was paid up received uo interest. | The chairman said that it was the policy of ! the company to buy dry shares and re-aliot ! ' them. He did not knew Whether there were a 1 : great many out. Just now they had to conj serve their finances, and in the present stat a I of the money market it would be unwise to I purchase too many. I In reply to Mr. Johnson, the chairman said I the butte; was sold to the Imperial Government ‘ at 2845. Their butt- r output kept growing last • year. It was thought, they would hare, been ■ able to make butter at several places, but . owing tu the lack of refrigerating power they ( wore only able to make butter at Glover Road. ; If shareholders decided that butter was to ; bo made this year at all the branches It would ' be necessary to find eorside»-ab!e funds, and J this was net a favorable time to ask thu I | banks for the money. However, from informn- j Ition he had received, it looked as though cheese would be the better proposition this year, and if he was still chairman he in- | tended to cal! the directors together immediately after the meeting and ask them to author- ' ioe tlie general manager to at once revert to cheese-making. In reply to Mr. W. J. Laurent, the chairman said that there had been agitation to get the railway station removed, but in view ol the amount of other urgent works and the pace at I . which public works progress, as instanced by the Te P.r.ti—Opunake railway, it would be ten or fifteen yeais before the railway station was removed. Even if the station were removed they could not afford to remove their curing room. He had taken all this into consideration in building the office at tlie station It was, he considered. In the interests of the company tp have the office where it was. He was to take the responsibility himself. ■ The chairman explained the position in re- ■ gurd to the timber deal, which showed that ■ the Hawera Dairy Company was in a good ! position over tlie matter. : In reply to Mr. Batten, the chalnnah said that they had pooled the butter and cheese ' supplies, and had paid out equally to both t butter and cheese suppliers. It was not found possible to make casein. The rebate received for freezing charges was credit direct, and went to reduce that amount. The report and balance-sheet were then ELECTION OF DIRECTORS. There were seven nominations for the seats on the directorate rendered vacant by the retirement of Messrs. J. R. Corrigan, W. Reid, L. A. Jennings, and V. W. Norwell. The last named did not seek re-election. Messrs. Goldsmith and Buekeridge were appointed scrutineers, and the election resulted as folI lows:—J. R. Corrigan 559, VV. Reid 534, A. B. Robertson 523, J, B. Laureuson 492 (elected), A. R. B. Pierm 607, L. A. Jennings 294, IV. H. Reynolds' 290. Mr. J. R. Corrigan thtnked shareholders fac the expression of confidence shown by placing tim at the head of the poll, and the other uireetors also returned thanks. Mr. V. B. Stratton was re-elected auditor at a remuneration of 30 guineas. The chairman’s honorarium was fixed at 150 guineas, and the chairman of the works committee was voted 50 guineas. The directors were voted the same as last year, viz., £1 Is pet meeting. GENERAL. In reply to a question in regard to veils, the chairman said that at the meeting of the Rennet Company at Palmerston North, It was decided to pay Is 6d for first-class veils, Is for second-class, and 6d for third-class, and they recommended factories to pay that amount. A supplier: You don’t want them. The chairman said that tlie Rennet Company had served Its purpose during the war. when it saved them from exploitation. It would pay to save veils nt Is 6d or even Is. Last year the company had lost money on the veils, and was now prepared to give suppliers the same amount as received from tne Rennet Company. The Rennet Company he Mid, wM rihMT •fta MiMMi, ahfi they atpuld

support it. If they did not get the money for the veils they got it in cheaper rennet They had, he said, received several thornand veils last year. On the motion of Messrs. Bolton and Bollard, It was resolved to recommend the <R* rectors to receive veils this year.

The chairman said that the company tad had applications in for telephones nt the factories over three years, and he had been, told lately that the work would be done as soon as the department had the material. At a subsequent meeting of directors, Mr. J. B. Corrigan iru re-alaeted chairman of