KAUPOKONUI DAIRY CO.

Taranaki Daily News, 6 September 1921, Page 8

KAUPOKONUI DAIRY CO.

TWENTY-FOURTH ANNUAL MEETING. A LONG MEETING. The twenty-fourth annual meeting of the Kaupokonui Dairy Company was held at the factory, Kaupokonui, on Monday, when Mr. T. A. Budge (chairman of directors) presided over an attendance of about 200 shareholders. The chairman expressed appreciation of the action of the directors in appointing him chairman, and though his term had not been a long one so far, he trusted that the work that he had done had been such as to warrant a continuance of their confidence. While not possessed of the ability of their late chairman, he was willing to do bis best in the interests of the company. ANNUAL REPORT. The report on a successful year’s working, and continued: “It is with deep regret the directors have to record the loss by death of their late chairman, Mr. W. D. Powdreli, and wish to place on record their appreciation of his valued services in the interest of this company and the dairying industry generally. Mr. R. Dunn was appointed to the directorate in his place. “The year has been one of the most extraordinary in the history of the dairy industry. About this time last year the prospects for high prices for produce were good, but through congestion of old sea- I son’s produce and lack of shipping space, coupled with strikes and “go-slow” policy, during the first half of the season our produce did not get away as it should have done, and therefore the company was unable to get advantage of the high prices ruling. During December, owing to the high price of butter offered by the Imperial Government, the whole of our output was turned into butter, and such was continued until the end of the season, with satisfactory* results, notwithstanding the extra cost of changing from cheese to butDuring the latter part of the season casein was made and sold to the Casein Company, Wanganui. At the present time about two-thirds of the season’s output has been sold; the remainder for balancesheet purposes has been taken at eightpence per pound f.o.b. After writing off £2364 12s lid depreciation on properties, plant and motor lorries, and allowing £lB5O for payment of interest at 6 per cent, on fully-paid-up shares, there remains a balance of £34,513 2s 7d, from which the directors propose to make a further payment of 3 id per pound butterfat as returns -come to hand, and carry forward the balance of £335 9s Bd. This will bring the payment for the year up to . 24|d, with prospect of further payment if cheese unsold realises more than valuation. The general store business again shows steady extension, the sales this year totalling £103,134 17s 9d, as against £92,111 Is lOd for last year. The result of the year’s operations discloses a debit of £BO5l 17s sd, which is accounted for by the desire of the directors to consolidate the company’s financial position by writing down stocks in hand to replacement values. In view of the steadily declining values of goods and merchandise which constitute our stock in trade the directors decided to write down stocks in hand at June 30, 1921, to a par with replacement values, and to meet the loss thereby created by a transfer from reserve fund of £BO5l 17s sd. Referring to reserve account, it will be noted that whereas at June 30, 1920, it stood at £22,526 4s 9d, the store debit referred to above reduces it to £14,474 7s 4d, but the addition during the year of £5262 16s lid raises it to £19,737 4s 3d. “For the information of shareholders who may not have retained all their balancesheets, it is pointed out that the store has contributed to reserve account £17,552 13s, made up as follows: 1916, £BB2O 16s 8d; 1917, £1628 7s 6d; 1918, £2107 18s sd; 1919, £1772; 1920, £1775 19s lid; 1921, £1447 10s 6d; total, £17,552 13s. “Towards the end of the year Mr. C. Farley resigned the position of general manager, Mr. W. J. McDonald being appointed in his place.” CHAIRMAN’S ADDRESS. In moving the adoption of the report and balance-sheet, the chairman congratulated shareholders on the season’s working. From the pay-out it would be about the best they had ever had. At this time last year prospects were good, as, owing to the shortage of food, and particularly of dairy produce, it looked as though the season. would be a good one. Butter, as commandeered by the Imperial Government at 2s 6d per pound, looked to be a more payable proposition than cheese, and the directors accordingly changed over all branches to the manufacture of butter and casein, the main factory, which was the last to change over, making the change on Christmas Day. As the result the pay-out would be the best they had ever had. Apart from a .few of the smaller cheese factories that had sold their outputs, they compared well with other factories. He believed that only the smaller factories had offers for their outputs last year. Kaupokonui had not received any offer, and so if they had wanted to sell they could not have done so. He did not know whether the directors would have sold the whole of their output, as for a number of years they had adopted a consigning policy, and he believed that, taken year in and year out, that policy was the best. SOME CHEESE HEATED. Kaupokonui had, with other companies, been, condemned regarding the quality of their output. He admitted that some of their cheese had been shipped in not as good condition as the directors could have wished. This was due to the fact that when they decided to change into butter they had a good deal of cheese in store, and, owing to the extra power required for freezing the butter and cream, there was not sufficient power to cool the cheese properly. They paid attention principally to the butter and the cream, and as a result the cheese got somewhat heated. Naturally the general manager had to bear the brunt. The chairman pointed out that it was the policy of the late chairman to hold their cheese in their own cool room in preference to paying storage at Patea or New Plymouth. In endeavoring to carry out their wishes, the manager had worked day and night. The directors might, perhaps, be blamed for not looking at the cheese occasionally, but he pointed out that this was difficult, in view of the fact that i the store was so full. The cheese, however, was not as bad aft reported. So far it had not brought the lowest price on the Home market. The lowest price it had brought was 106 s, whilst -some first-grade cheese of other companies had brought as low as 98s. The delay, however, had been a blessing- in disguise, as it enabled them to miss the lowest market. They were going to lose a good deal through shrinkage, but in future that was not likely to happen. He did not think there would be any occasion to store cheese this season, as at present the various grading stores were empty, whereas at the beginning of last season there was a lot of cheese in the stores, They could also look for shipping to be better tbi§ year, and could ex-

pect their works to be cleared each month, so that there should be no block in their produce getting to the London market. Moreover, part of the machinery had broken down, owing to the heavy strain, and that was partly the reason why the temperature had not been kept down so well. Their engineer apparently understood his business, and was trying to utilise electric motors as much as possible, fitting one in the butter room and another in the cheese room for the agitators. This would effect savings in many ways, particularly in fuel, and would tend to more efficient working. A new suction gas producer had been installed, as the last had not proved satisfactory. The new one was easy to run, and was giving good results. The season had been a bad one from a producing point of view. It had been a rough spring to start with. The grass was about a month or six weeks late, and many suppliers were caught short of feed and that made the output considerably less. He thought that the prospects looked better this year, as on the principle of “once bit, twice shy” they had made better provision and were well supplied with spring feed, besides which the season was earlier. It had been predicted that there would be a dry season this autumn, so that farmers would be well advised to provide as much autumn feed as they possibly could. GOOD PROSPECTS. Indications were good as regarded prices for the coming season, though they would not be as good as last season. Suppliers should, therefore, take as much advantage as they possibly could of the time of good prices. Stocks of cheese at Home at present were small, so that there should be no difficulty in getting rid of their cheese as soon as it arrived home.

They had arranged to consign their produce this year through the same firm as they had consigned it through for years. So far they had no offers of purchase this year. The chairman then reviewed the balancesheet. On the liability side, he said, the amount owing on mortgage—£lo,B66—included the amount owing to the Government on the cool store, also on the store purchased in Manaia. In reply to Mr. Bennett the chairman stated that there was nothing owing on the cool store buildings, as it was considered the storage had paid for that. The actual cost had not been worked out. Mr. Bennett considered it should have been available for shareholders.

Continuing, the chairman said that the item £6573, sundry creditors, was for store salaries, costs owing to merchants, etc. The redemption account of £35,232 was the amount written off properties, buildings and plants since the inception of the company, and the properties were not written off the books year by year. Coining to the assets, he said that the items to central factory, Auroa, Kapuni and Oeo factories were for additions or replacements during the year up to the time of the balance-sheet. Regarding motor lorries, they had sold two of the old pnes—the Benz and Bessemer—and had purchased a Dennis and a Leyland. For factory work they had those two, together with a White and the electric motor. They had also sold the Ford ton truck and purchased a 2A-ton Leyland for store work. The two Fords had been sold and replaced by a Dodge. They had practically made a clean sweep, with the result that they were now saving 50 per cent, of benzine. The old lorries, with the depreciation written off, owed the factory nothing. Depreciation was taken off the machinery and plant, but was placed to the credit of the redemption account. They had taken the cheese in stock at 8d per pound f.o.b. Owing to there being more butter kept in store than was required in New Zealand, some of the factories had to send butter Home. They bad sent Home butter valued at about £IB,COO. This had also been estimated at 2s. Requisites were very high, owing to having been ordered for cheese and then changing over to butter, so that they were not used. THE STORE. Regarding the store, he said this had been a bone of contention with many. Though this showed a loss, stock-taking had been done on a difficult basis, not being taken on invoice prices, but on prices based on the present replacement values. This probably accounted for a good deal of the loss shown. The directors considered it better to work on those lines. A number of lines had since been sold at ,a fair profit on the stock-taking values. It was, he considered, better to get the concern down on a right basis, and he pointed out that the bulk of trading concerns had made a loss during the past year. Mr. Parkinson, store manager, had tendered his resignation. Some heated discussion here took place over an incident at a directors’ meeting, shareholders wishing to know the voting on a particular question.

The chairman stated that he did not consider he should give the voting. Mr. Bennett asked whether it was by a majority of the directorate or by two votes to two.

The chairman explained that two voted for the resolution and two against, and the other three did not vote. He declared the resolution carried, and no question was asked.

Mr. Bennett thought that it was a scandalous state of affairs that shareholders should elect directors who were rail-sitters.

Mr. Clarke considered it was a shocking state of affairs that there should be some one on the directorate who would give things outside that were supposed to be confidential.

Continuing, the chairman said' that the prospects for the season were good. They practically had all their buildings ip concrete. He urged shareholders, if there had been any differences in the past, to bury the hatchet. They had a big concern, and all that was required was for the suppliers to be loyal and to pull together. He touched on the fact that during the year Mr. C. Farley, the manager, had resigned, and had been succeeded by Mr. McDonald, a former manager of the company. He then moved the adoption of the report. Mr. H. Sandford seconded. The auditor (Mr. H. A. Lennon) here read a lengthy report on the working of the company, amplifying it later in an address, and replying to various questions. ELECTION OF DIRECTORS. For the vacancy on the directorate caused by the resign aton of Mr. Muggeridge there were two nominations to fill the balance of the term—viz., Messrs. F. Muggeridge and 11. Sandford—and for the three vacancies caused by the retirement of Messrs. Wells and F. Mouri by ballot, and E. Long, who resigned, there were six nominations—viz., Messrs. F. Mouri, E. Long, T. McPhillips, S. J. Bennett, A. H. Christie and J. Bashford.

Considerable time was then taken up by each of the candidates addressing the meeting. Considerable criticism was levelled at past management, the store and the cheese storage being freely criticised, whilst there was also a lot of cross talk and personalities indulged in by some of the speakers. Ail the candidates were unanimous in urging shareholders to vote for the best men, and to be loyal to the company, pointing out that they now had to consider and note the past. As it was now after three o’clock, and suppliers were anxious to get home, Mr. Burke moved that the election be taken

and the meeting then adjourn .till 7 jfm. There was, he said, a good deal to discuss, and it would be just as well to thresh it out. Meanwhile suppliers should be loyal, and their milk to the factory during the coining year. The resolution was carried, and the meeting adjourned. THE EVENING PROCEEDINGS. There was an attendance of 150 when the meeting resumed. • The results of the election were as follows:—For one year: F. Muggeridge, 622 (elected); 11. Sandford 118. For full term: T. McPhillips 487, E. Long 433, A. H. Christie 425 (elected), F. Mouri 333, S. J. Bennett 261, J. D. Bashford 40. Mr. H. A. Lennon was re-elected auditor at a fee of £lOO. There was a lengthy discussion on the report and balance-sheet, which were finally adopted. The meeting terminated shortly before midnight.