PATEA FREEZING COMPANY.

Taranaki Daily News, 6 October 1921, Page 6

PATEA FREEZING COMPANY.

PAST YEAR’S OPERATIONS. PROSPECTS OF CARRYING ON. ANNUAL MEETING ADJOURNED. The twelfth annual meeting of the Pate a Farmers’ Co-op. Freezing Company, Ltd, was held at Patea yesterday, when Mr. C. J. Hawken (chairman of directors) presided over an attendance of about 130 shareholders. On the motion of Messrs. G. V. Pearce and N. B. Fryday it was unanimously resolved that the Press be admitted to the meeting. The report for the year ending July 31, 1921, stated: “It is with deep regret that directors have to record the loss by death of their late chairman and managing director (Mr. W. D. Powdrell), and wish to place on record their appreciation of •his valued services in the interests of the company. Mr. C. J. Hawken was elected chairman in his place. The following is the quantity of stock treated: Sheep and Cattle. Lambs. Season ended July 31, 1920 8232 89,869 Season ended July 31, 3245 58,875 Decrease t ... 4987 30,994 The profit and loss account shows a loss of £58,385 Ils 6d, mainly attributable to loss on cased meats and tallow from the previous season’s working. The directors retiring by rotation and who are eligible for re-election are Messrs. B. C. Lysaght, A. E. Symes and A. T. Wills. Two vacancies are caused by the death of Mr. W. D. Powdrell and the retirement of Mr. E. Parsons. The auditor (Mr. H. B. Burdekin) also retires, and offers himself for re-election.” ADJOURNMENT MOVED. Mr. H. Dickie then moved: “That this meeting of shareholders requests and empowers the directors either to obtain further capital or financial assistance for the carrying on of the company’s operations, or to enter into and complete negotiations for the sale or disposal of the company’s works or other assets, or parts thereof, to the best possible advantage, and with this end in view resolve that this meeting stand adjourned until October 26.” Mr. Bremer, in seconding, said that he was one of the largest shareholders in the concern, and one of those most interested, and he considered that the motion was on the right lines. Mr. Dickie said that he had just arrived in the Dominion after being away for eighteen months, and thought that at the present juncture it would be unwise to enter into any discussion that might hamper the negotiations towards reconstruction or sale. Personally he was very optimistic regarding the future, and as the largest depositor in the concern and one interested in the joint-and-several, he thought it would be in the best interests of dll concerned if the meeting were adjourned, and the directors were given a clear field to proceed with the negotiations. Mr. J. B. Marx asked whether the directors had any recommendation to make on the subject. The chairman: “The directors consider the adjournment the wisest course.” PLEA TO CARRY ON. Mr. G. V. Pearce said that the resoluripn empowered the directors to sell the whole concern without disclosing to shareholders the actual position. Of course it also provided for carrying on if they could arrange to do so. The shareholders did not know the actual position, but the directors were guarantors to the bank, and there was a possibility, though he did not suggest it, of their selling the business as a going concern and utilising the money in paying off the guarantee. He was quite in the dark as to whether the bank had any security that would cover the whole of their liabilities. Personally he did not value the amount of his share capital, but he did value the importance of the concern to the district. They should at least carry on for a year or two and sell when the financial position had improved. The resolution, as it stood, gave the dicarte blanche to sell the whole of ■rhe assets.

The chairman said that the banks held security over the whole of the assets, with the exception of the store room, on which the Government had advanced £7500. He could assure them that the directors were not going to throw the works away, and he was quite willing that the shareholders should be consulted before negotiations were finally completed. If they got a good price they would sell, but otherwise they would not. They understood where they had made losses in the past, and a gain might be made there later. They had good works in a good district, and what they wanted was good management and, of course, finance. CONSULTING SHAREHOLDERS. Mr. Boyer moved as an amendment that the words “such sale to be subject to the confirmation of an adjourned meeting of shareholders, after the full financial position has been explained” should be included in the resolution. The mover and seconder agreed to this being incorporated in the motion. Mr. T. Taylor hoped that the position would look much brighter to all concerned at the end of three weeks, and in any case a delay of three weeks could not materially prejudice them. Mr. Belton considered the advice was very sound, and hoped the meeting would adopt the suggestion. Mr. Marx said that shareholders must stand behind the directors and give them an opportunity of making the best of the position. Undoubtedly the adjournment was the wisest course.

Mr. B. McCarthy agreed. Shareholders were safeguarded, inasmuch as the confirmation of the negotiations must come before any sale or reconstruction could take place.

Mr. J. R. Corrigan said that it was only right to give the directors an opportunity of putting their house in order. They could rest assured that the directors‘ would do their best, not only in the interests of the guarantors, but also of the depositors and the shareholders. It was not advisable to tie their hands in any way. The resolution as amended was then carried unanimously, and the meeting was adjourned until 10.30 a.m. on Tuesday October 26, at the same place.