PATEA FARMERS’ FREEZING COY.

Taranaki Daily News, 6 October 1922, Page 7

PATEA FARMERS’ FREEZING COY.

THIRTEENTH ANNUAL MEETING. A DIFFICULT YEAR, At Patea on Tuesday the annual general meeting of the Patea. Farmers’ Co-op. was held, when there were present about 45 shareholders, and Mr. C. D. Dickie, chairman of directors, was in the chair. The report stated that the directors regretted a further loss, largely due to a further fall in values on stocks on hand and reclamations on unrealised consignments from previous season. Tlie following Is the quantity of stock put through the works, all of which has been treated on behalf of clients:—Season ending July 31, 1922: 4133 cattle, 58,058 sheep and lambs. Season ended July 31, 1921: 3245 cattle, 58,875 sheep aud lambs. Increase: 888 cattle. Decrease: 817 sheep and lambs. In moving the adoption of the report and balance sheet, the chairman said the company had had a difficult time, partly on account of the high rate of interest ruling. When the present arrangements were carried through he considered they would get through without loss. Stocks were much smaller than last year, and working expenses had been £ll,lOO less than twelve months ago. The bank overdraft had been reduced from £148,000 to £132,000, and interest had toi be met. Referring to the creditors, the chairman said that all but three had sent in a requisition’ for shares, and It was hoped the others would come in. They had the best equipped works In the Dominion, and their position was much improved, but the situation demanded most careful management. But the works were a distinct asset to the town and district, and could deal in stock more cheaply than any other company. If they could get more stock they would be able to get bigger profits, and also to 1 reduce expenses. Bank interest had totalled £10,444, but the prospect of a decrease in the bank rate promised an easing in the position and an assistance to put them on an economic footing. The reputation of Patea was of the best, for a London merchant had advised him that Patea. lamb topped the market in the Old Country. It was for the shareholders and settlers to decide the question of the future of the company. They were not the only works that had suffered losses, and, as a fact, all the works in the Dominion had done badly. How-

ever, they must remember that if money had been lost on beef it had gone into the pockets of suppliers. The conditions ruling last year had been the worst in the history of the company, but the future was bright if they could get over the difficulty of the liability due to the large creditors.

Mr. W. H. Southcombe seconded the motion. In reply to a question as to policy for the coining year, the chairman said that the only way to proceed was for ths company to go on on the same lines as last year. Mr. McKenna said he had put down the loss in 1920 as much larger than shown, and this had proved to be so. The chairman said this was so. and he had seen it before he left England and had cabled that if beef were purchased they would lose heavily. Still the company continued to deal in beef.

In regard to Values of stock in 1920, the secretary reported that in most cases actual values were much in. excess of estimates.

THE OUTLOOK GOOD. Mr. T. Taylor said that there was a splendid outlook, and the loss this year, if any, would be very small. Interest accrued had since been paid. If the bank gave the company the £20,000 free of interest they •yould be on a good wicket. He understood that interest on preference shares would not be cumulative. There would he no difficult}’ in realising a. profit on the operations of the company. The bank balance would be practically the only liability. The outlook, as he had said, was good, asserts sound, and sundry debtors and stocks good, while buildings were the only features of which they had any (Tuestton, and these were of quite sound value, and worth more than book figures when taken a& a going concern. The chairman said the position was much improved on the last year’s figures, for they had been able to more than pay all expenses out of earnings. Mr. Taylor said that the position was actually better than ever before, and would improve if only farmers would trust the company and put their stock through the works. Then they would go on to still greater success. Mr. Pearce, speaking for the trust, said that a profit had been realised, and half of this had been paid to trustees while they were awaiting final returns. They had been able to help the company and the industry by enabling farmers to get rid of boners, which otherwise would be very difficult ip dispose of. In regard to the company’s affairs, the business, he felt convinced, could be worked to make a profit. The company would be In a better position than any in New Zealand to deal witli beef and mutton. The trust had been constituted for a year and was pledged to subscribers to hand back funds received. It was taking longer than he expected tc clear up their operations, for some of the produce had just been shipped and would not be clear for some months. He considered now that it would be better for the company tG take over the whole of their work, so as to avoid dual control.

The chairman, eulogising the work of the trust, said that they owed the members of the trust a deep debt of gratitude for their good work during a critical time. They were all new to the freezing business, but by the time they got into their stride they would do better than ever. Their sincere thanks were due to Mr. Pearce (the chairman), to Mr. Taylor (organiser of the scheme) and to Mr. Murphy for his help in giving the use of his car. a public-spirited action. He said the trustees had purchased not freezing beef but boned beef to assist the company with freights, freezing charges, etc. The works were better fitted to deal with some classes of stock than any in New Zealand. He was optimistic about the beef business and expected good results in the future. As soon as the last account sales were received the trust could finish their work. Then the company could carry on alone. FARMERS SHOULD STAND TOGETHER. Mr. Taylor said the Farmers’ Co-op were out to help the company and were prepared to stand by them as in the past. In regard to the future of the trust, Mr. Pearce said they would not call a meeting until they knew exactly what the position was. They had £15,000 of unrealised stock and expected to make a profit of £2OOO. As soon as they had realised on this stock they would pay back to subscribers. They had already paid £4OOO back to the Farmers' Co-op. He personally could see no reason for the continued existence of the trust, whereas in the past there had been a place for them. The chairman said it would be necessary tn create a fund to pay promptly for purchases. He was prepared personally to put back money to keep the works going. Mr. Pearce said he hoped farmers would stand together and keep their concerns flourishing. Mr. Taylor said the Farmers’ Co-op. had suggested the scheme last year but It had been turned down. It was to take £lO,OOO to £15,000 on deposit, allowing seven per cent, on the amount and advance £5OOO and let their buyers secure stock for Patea. Mr. Symes said they lost money last year through not standing in with the Fanners’ Co-op. He would be content to let his share contribution be placed with the Farmers’ Coop. Mr. B. Lysaght and one or two others agreed.—Star.