DAIRYING INDUSTRY.

Taranaki Daily News, 18 August 1921, Page 8

DAIRYING INDUSTRY.

MANGATOKI DAIRY COMPANY. TWENTY-FIRST ANNUAL The twenty-first annual meeting of the Mangatolu Dairy Cmopany was held at the MangatoM Hall yesterday, when Mr. Jacob Marx (chairman of directors) presided over an attendance of about 60 shareholders. The -chairman apologised for the absence of the manager (Mr. E. H. Beevc). who had undergone it serious operation, but was now ■making good progress towards recovery. The report and balance-sheet (published yesterday) was taken as read. The chairman stated that the cool store had been very useful as a war measure, and though it had not earned anything during the past year it would be useful in the future. The chairman then moved the adoption of the annual report and balance-sheet. Mr. A. C. Pease seconded. In reply to Mr. A. H. Guy, tlie chairman stated that the item in the balance-sheet of £ 1540 to the Sash and Door Company should be to the Hawera Dairy Company. This was in consideration of a sawmilling venture in which the company had entered with the. Hawera Dairy Company. The transaction was explained in committee. In reply to Mr. Astbury, the chairman stated that the cool store originally cost. £4OOO, but that since its erection it had earned more than had been paid for its erection, besides proving a great convenience to the company. There were, of course, expenses in running it. He thought the’days for the manufacture of casein were not far off, and the building would be very useful for that purpose. In reply to Mr. McGuinness, the secretary said that there were no signed .applications for shares that had not been allotted. As soon as. the adjustment of the last season's shares was out he asked suppliers to send in. their signed applications early. •Str. Guy pointed out that the share capital had only increased by about £567, whereas the previous year the increase had been £ 1000. He wanted to know why there was a difference. The. secretary explained that this was due to paying back deductions taken from shareholders for many years after they had taken up their full allotment of shares. He further explained that there was an item of £127 in suspense account of items deducted from nonshareholders. In reply to Mr. Astbury the chairman stated that dry shareholders held about £5OOO worth of shares. Mr. Astbury said that this was about onethird uf their paid-up capital. Mr. Guy said that actually there were 82 dry* shareholders, which was rather a large number. Mr. Astbury asked whether shareholders could move in the direction of not paying interest on share capital this year. The chairman said that it could be done, but as it meant altering the whole policy of the company it would be better to do it by notice of motion. INTEREST ON SHARE CAPITAL. Mr. Astbury said that the £5OOO in dry shares were spread all over the county. Personally he was not worried about the amount of interest paid on that amount, as it was only about £250, but he pointed out that the majority of these shareholders now had no interest in the company, and did not “car a damn” for it; yet when an election car round people sent all over the place to obtf their proxies, with the result that though ♦ had no Interest in the xioncarn fiiey r make their influence felt. Ho had a advocated paying a reasonable amov interest, but lie thought the time hr come in the history of the compar they should stop it, with a view to t keeping the control of the compar hands of active shareholders. He the matter so important that he that the company this year do not Mr. T. Perry seconded pro fr siderod that it would bo very ' (J id shttreholders, who had mad any what it was, if they wore erest on their money. Mr. Asti supplier, had always advocat ent of’ interest. He poin' _'d on' p COJI I decided last, year that th cal! ' .up the unpaid capital .rciiolders, and If not paid these < cited. The company only paid i ally-paid-up : shares, and ire tho» ther scheme ' could bo devised t' /iio difficulty, rather than stop tl ,f interest. The chairman w - a vcry important matter, affec' j>v of the company. The Dair ovlded that dairy companies undf could re-purchase shares by pay aje for them—viz., twenty shillii £—but they could only cant”' . O f them on their A year. He. however, pointy ompany had buildings rant £5940, dam, etc., il, shares in other coneornr . total of £.36,002 on a l )11! d 15,663. How. therefore, I say, £5OOO on the purJ hich would take jears to Je « whin they had to lean ”1 e such an extent? He had f in Hie direction <>f having f duce.d fjom 601 b of butterfat I iipplier was just as ready to f a company as a car. was to f.er for fish. He said that ho ■ •rward a notice of motion that ■ ibjeet of altering the deduction f'tat from \d to per lb of -■ if carried this would bring in ■ dicker. He pointed out that even t.ay could purchase the shares for fey would have to wall. Hi years ■ were re- allotted before receiving ■k. The companj’ was not in a posi- ■ '•ulate in shares. Regarding proxies, ■ ever asked anyone for a vote. It J those wifoso- shares were fully paid reuc-ived the interest; in the case of ■ :ot fully paid up the Interest was ■ to the shares. Tho company now ■ r,?r to call on dry shareholders to pay ■ c shares or else forfeit them. Person■tC thought the companj* was fortunate ■ •‘/Pg £4OOO on which they only had to

■ /per cent. If they hud to obtain that f .“/l from the bank they would have to cent. Ho did not think it business- ■ ( o ask anyone to finance any concern ■ nothing. If all were receiving the same ■ ••nt it would be different, but some men f 2 during the past twenty yaers put £3OO or ■ inn into the concern, and was it right that ■ uers should move in to-morrow and get the ■ -•neflt of that for nothing? ■ Mr. Astburj- pointed out that some other ■ onipanics did not pay interest on share A capital. f A PRINCIPLE INVOLVED. I The chairman said that he did not favor [ ■ abandoning the principle adopted for so many years of paying a ttioderate rate of interest. In reply to Mr. Perry, the chairman said that qjiite a number of shareholders who had cease’d to supply had paid up their shares The company was glad to have the money. Air. A. H. Guy said that, it was not so much a question of paying interest, but that the people who supplied the factory should control it. He considered that If registered | under the Dairy Act the company could handle . the whole of the dry shares in any one vear and could each year allot a eu tain’percentage’ I had that da y a number of shares to i The chairman asked where they were going to I obtain the money from. | Mr. A. C. Pease pointed out that a number 0 , of companies paid up to 5 per cent, on share capital. I A supplier pointed out that dry shareholders ■, had in some cases purchased shares as low I af: t 10s » and thus actually received 10 per In the course of further discussion the chairi man said that a number of the dry share- : holders were still in the joint-and-several. ! Mr. Guy considered that the chairman should j arrange the affairs so that the people who er j used the factory carried the liability. j Mr. Pease: “An easy thing to do.” ( In reply to Mr. Perry, the secretary said tg that tho number of dry shareholders had decreased. -Mr. Perry considered they would continue to decrease. Mr. Marr thought steps should be taken to do away with proxies. . The chairman suggested that Mr. Astbury

should withdraw his resolution and give notice of motion. Mr. Astbury declined to do this. He stated that the non-payment of interest could not detrimentally affect suppliers, as the money now paid in interest could be distributed In butterfat. They need not stop paying interest for all time, but could stop paying for a couple of years. He was not anxious for tho directors to buy up shares, but he did want to stop dry shareholders Influencing a meeting. This, he said, was the first time there had been an election of directors for six years, and proxies had been sent for all over the place. The chairman pointed out that if desired by either side a ballot could be taken on the basis of voting-power. The amendment was then put and lost on a show of hands. SHIPPING PROBLEM, Mr. Astbury asked for an explanation regarding 70, 700 or 7000 crates of cheese that Were reported to have been held up. The chairman said that the season had been the worst in regard to shipping they had experienced. This was caused mainly by the shipping companies, and frequently their produce had to lie on the wharf. Mr. Pease (chairman of the South Taranaki Producers' Company) said that he hail never heard of any instance where their produce had been held up. All their produce had got away in proportion to that of other factories. The chairman said that there had been a case where brands had been mixed, but Mangatold was only affected to a very small extent. Mr. Astbury referred to the small amount of depreciation that companies now take off property and plant, owing to the effeet of the new taxation. It was a scandalous thing that factories were prevented from putting themselves in a sound position, and he expressed surprise that protests had not been made at annual meetings of dairy factories. The chairman said that the matter had been brought up at the annual conference at Palmerston North. Mr. Astbury considered that the amount, of aliowancer to staff (£ 1087) was a large one. The chairman said that this included allowances in th ■»« of rent, firewood, butter and milk, a *ly part o£ their salaries. Mr. Perr . '. the company treated their staff /. Ho also considered too many ! oen kept on during the winter. I he directors to study economy. Tbo chf that though they had handled 3 e butterfat their salaries were fc 12 Mr. Pe out that during half the season tl nufactured butter, which required Tlie c nted out that the change In the jo season from cheese to butter r ,* lot of preparation, which entailer .3. They had a good staff, and tl: had endeavored always to be fair .ployees. It was very creditable t uring the 21 years they had not I’ jblc with their labor. They laiew c.,ies that had been entailed by labo islde in the coal mines and shir ,ad no inside troubles themsel' erred a little on the liberal sir’ do so. and balance-sheet were then

ACTION OB DIRECTORS. vere four candidates for the three on the directorate—viz., the three directors and Mr. A. 11. Guy. Mr. (I. was appointed acting chairman. The resulted as follows: Jacob Marx 812, Pease 740, T. R.-Anderson 707, elected; Guy 416. . H. B. Rurdekin was re-elected auditor. . .‘ior to the election Mr. Astbury again died on tlie question of proxies, and said at the directors should ascertain what the ■w was in regard to proxies, with a view :o doing away with them. It was resolved to vote the chairman and directors the same honorarium as last year, and that the amount be paid quarterly. The chairman was also voted an additional £25 in connection with the timber deal. INCREASING THE SHARE CAPITAL. In accordance with a recommendation from a special meeting, the chairman moved, iu accordance with notice of motion, that article 10 of the articles of association of the company be amended so as to provide that Ld per pound butterfat bo deducted for share capital instead uf *4d as at present. He said it was necessary to have more capital. At present It took about 16 years to pay up the shares. He stressed tho point that they had b'dldings and plant on the books valued at over £.30,000 on a capital of £15,000. Actually the buikliugs, etc., could be valued at about £50,000. In the past they had written down their buildings, etc., in.ftead of providing additional capital. Now, however, they could not do this, as the Government taxed reserves, and in this way suppliers would be taxed twice. He pointed out that at present it took 16 years to pay up shares at lid, and even at L-d ih would' take « years. He pointed out that they would receive interest on the money. He considered it could nut be long before they would have to alter the basis of allotment. Mr. T. K. Anderson seconded. Mr. T. Perry wanted to know why for the first year iu the 21 years of the company's history the directors wished to Increase the deduction. The chairman pointed out that the company had not sufficient capital, and the proposal .was necessary owing to tho stringency of finance. The resolution was carried. A vote of thanks was accorded the chairmao, directors, manager and staff.