THE MEAT COMPANY.

Taranaki Daily News, 21 October 1922, Page 7

THE MEAT COMPANY.

THE ANNUAL MEETING. LOSSES DUE TO THE SLUMP. RECONSTRUCTION ADVOCATED. COMMITTEE TO SUBMIT SCHEME. The seventh annual meeting of the Taranaki Farmers’ Meat Company, Ltd.. was held in the Workers’ Social Hall, New Plymouth, yesterday afternoon, and while general regrot was expressed at the large losses made by the company, an optimistic note as to future prospects prevailed. The chair was taken by Mr,- J. T. Quin (chairman of directors), _the other directors being on the platform with him.

The discussion following the motion for the adoption of the report and the balance sheet was mainly centred round a confidential report submitted by the auditor (Mr. E. P. Webster) and as to the best methods of carrying on the wora.B, a committee comprising nine well-known business men and farmers/ with power to add, being appointed to investigate the whole position and to submit a scheme to a special meeting of shareholders. Confidence in the future, and references to the asset to the town and the province provided by the works at Smart Road, were features of the remarks passed by various speakers, while any thought of “crying over spilt milk” was strongly deprecated. The absence of “bickering” was also referred to by Mr. A. Morton (one of the directors), who thanked, the shareholders at the conclusion of the meeting for their courtesy.

In moving the adoption of the report and balance sheet, the chairman said:

“I regret that are unable to place before you a more satisfactory statement of accounts. Towards the end of last year, however, a serious slump in values of practically the whole of the company’s products was experienced*, and as a result the stocks and unrealised consignments as shown on the balance sheet presented to you at the last annual meeting realis»?d a substantial loss, amounting to £48,016, while the estimated loss on trading account during the year ended June 30 last totals £9783. “To this total of £57.799 is to be added the sum of £29,453 for overhead expenses, viz., interest, salaries, fire and accident insurance, rates, depreciation, etc., as detailed in the profit and loss account which you have before you. These sums, with a deduction of £335 for tax over provided for last year and transfer fees, leaving a net loss as shown in the balance sheet of £86,917. In arriving at these figures, your directors have gone very exhaustively into tlv? values of stocks and stores on hand and unrealised consignments afloat and in consignees’ stores, and. although no surpluses of any magnitude are it is considered that the values are without doubt on a safe basis. GLUT OF BEEF. “Unfortunately, after closing the accounts at •> une 30 last year, intmense quantities of Argentine chilled beef were shipped to the United Kingdom, with the result that the market’became glutted and the Home stores congested. As a consequence New Zealand frozen beef was practically unsaleable, and account sales which hc ’e recently come to hand disclose the fact that the .prices realised did not even cover the c.i.f. charges without taking into consideration the actual cost of the meat. As an example of this. I quote a consignment of beef shipped per s.s. Essex in October of last year, returns for which have just reached us.

“In this shipment 2778 quarters of ox beef sold at an average price of 3.04 d ex store. Freezing, freight, insurance and exchange amounted to 3.17 d; London charges amounted to I.3l.—Total, 4.48 d. Loss per lb, irrespective of cd%t of beef at works, 1.44 d per lb. Th.en 5045 quarters of cow beef sold at an average price of 2.52 d ex store. Freezing, freight, insurance and exchange amounted to 3.15 d; London charges amounted to 1.37 d.— Total 4.52 d. Loss per lb, irrespective of cost of beef at works. 2d per lb. The above are only two examples which I give you, and reflect the result of the realisations of practically all beef which was unsold on June 3Q last year. In addition to this, the mutton market collapsed seriously in August of last year, and unfortunately we had considerable stocks afloat and in London, which our agents sold prior to the improvement which took place early this year owing to the enormous storage which would nave been incurred-had the goods been held in store. VALUES OF OTHER PRODUCTS. “Values for the other various products of the company, such as wool, pelts, hides, tallow and preserved meats, more par •nilarly the latter, have been at a low ebb compared with prices ruling during the past few years, and this f ’t "ihas added materially to the loss as disclosed. The values of stores on hand have been very carefully considered, and have been written down on cost prices to present day values as follows: —General and engineering stores, £2797; manure stocks, £2538; total, £5335. “I would point out to you that in the. profit and loss account there is a charge for interest, etc., of £18,765. This is comprised mostly of interest on bank overdraft, and has been a serious drain j©n the company's resources. This was occasioned to a great extent by the fa -t that c.i.f. buyers of frozen meat practically ceased operations in February last, and as a result stocks, being unsold, had to be shipped on consignment at a very low advance. THE BALANCE SHEET. “I will now ask you to turn your attention to the balance sheet presented to you to-day. During the year the paid-up capital of the company has increased by the sum of £6,274, and now stands at £99,564. exclusive of calls paid in advance. £3OOB. Calls in arrears, however, have -nereased by the sum-'of £698. Drafts against consignments unrealised totalled £74.872 17s Rd - . This amount is represented by advances obtained at the time of shipment against consignments of meat, wool, pelts, tallow, etc., unaccounted for on June 30. It will be noted that on the asset side of the balance sheet there is a sum of £64,466 15? 5d for unrealised consignments. The difference, Viz., £lO. 406 2s 3d. represents the amount by which such consignments have been

writtendown _ in; conformity with ac* count sales received since the closing of | the books, and cabled advices from the various consignees regarding estimated realisations.

“Sundry creditors, including the Bank of New Zealand, totalled £222,796 19s 6d. This item is made up as follows: Sundry creditors: Interest accrued, £6lB Ils; \fages accrued, £34 Is 3d; trade accounts, £4ll 8s 6d; total, £1064 .0s 9d. Bank of 'New Zealand overdraft, £217,769 19s; interest accrued. £3962 19s 9d; total, £221,732 18s 9d; grand total, £222,796 19s 6d. COMPANY’S ASSETS. “Turning to the—assets side of the balance chtfet,-it will be noted that the •fixed* assets, i.e., land, buildings, plant, machinery, etfe., show an increase of £13,400 16s 7d. This sum is accounted for by the installation of a new Babeock Wilcox boiler, the erection of the necessary emoke- stack, the - completion of the preserving department and extensions to the z .tallow/and manure departments. Since th? company was formed the sum pf u written off buildings/,plant,, etc., by way of depreciation.' 1 /' '

-“Stocks- ’ajnfi. stores totalled £36,205 19s Id, and unrealised consignments £64,466 ’I-s's; sd. I have already dealt with : these?t‘wo'items, and can only reiterate that your directors, after going carefully- Irito’ the matter, consider the values are absolutely safe. It will be noted, however, that* the stocks aro less by £82,329 7s Bd, for the reasons that shipping was more plentiful this year than last, values are considerably lower »;nd the output was smaller. With regard/to unrealised consignments, this item is greater this year by £21,281 Is. and represents a considerably greater quantity of produce than was shown under the same heading last year, but at much lower values. As a matter of fact, three shipments of meat from the pre vious year’s killings are included in the item. LAST SEASON’S OPERATIONS. “Regarding the operations of the company last season, it will be seen from the/ annual report before you that the company slaughtered less stock than the previous season by 5170 sheep and 3960 lambs, a total of 9130 sheep and lambs; and 4248 cattle. In view of the seriously unsettled state of the Irozen meat market, it was deemed advisable by your directors during the past season to limit the company’s cattle buying operations as much as possible, winch accounts for the heavy fall in killings of cattle. ■“With 1 regard to sheep and lambs, however, an endeavor was made to put as many of these through as possible, but there being a considerable shortage in the district in which our buyers operate, and on account of the keen competition existing, it was impossibles to reach the previous year’s figures. To carry the works on at their full mutton and lamb capacity it would, in my opinion, be necessary to station buyers further afield. FREIGHTS AND SHIPPING. “A new freight agreement will be entered into before next season, and the shipping companies have indicated as a basis of agreement their willingness to concede the following reductions in rates:—Mutton, 1 5-Sd plus 24 per cent, to net; lamb, l£d plus 24 per cent, to 14d net; beef, 1 7-8(1 plus 24 per cent, to 1 l-8d net. It will be noted that during the past season the freight rate on i>ecf was reduced from 1 3-8 d plus 24 per cent, to 1 l-8d plus 24 per cent., whilst freezing charges were reduced from l|d to Id. The indications are that rates on general cargo, such as tallow, pelts, wool and preserved meats, are to be substant’allv reduced.

“During the year under review the shipping position has been fairly satisfactory, although owing to delays elsewhere the vessel allotted to load at this port in April last did not load until Mav, and it was therefore unfortunatelv impossible to make any c.i.f. sales of frozen meat for April shipment, which fact occasioned some loss to the company.” EFFECTS OF THE SLUMP. Continuing. Mr. Quinn said that they all regretted the serious loss which had been incurred at the works. On the last balance sheet they thought they were absolutely safe, but the slump in the Old Country had absolutely wiped out any balance they had. If they could have’emptied the. beef out in the harbor it would have paid them to do so. The charges in London had taken all their revenue: It was one of the most serious slumps in the last century, and had got their small company with its email reserves. The same thing had happened with mutton. Instead of receiving 245. as they had hopwl, they bad obtained only 4a. Their mutton realised 4}d. and they had to pay for the sheep, freezing and all the other charges.

He brought these things to their notice to show that the loss was not their fault. The loss hp.d been universal, except for one or two companies with large reserves, and a company in Auckland which only froze on account. Some of their critics would blame the directory, But he appealed to them not to give them all the blame. They' had tak'm their sharp; they were all shareholders and guarantors to the bank, while some of them would have to foot the bill. Interest in the trading account had been against them. It was a very serious amount, and the interest kept going on. The whole position of beef in New Zealand had been one of disaster, and the company had been struck with the disaster. There was no one who regretted the position more than the directors. He then moved the adoption of the report and balance sheet. A DIFFERENT TALE TO TELL. Tn seconding. Mr. A. Morton said that his task was not n very pleasant one on this occasion. Last year the directors were proud to bp able to place before them a good report, one satisfactory to the directors, and bp believed, satisfactory to the shareholders. Unfortunately, this year there was quite a different tale tn tell. Hp agreed with the chairman that the directors were not altogether to blame for the present state of affairs, though he would not say that they were not tn some extent tn blame. They must recollect that this was a business requiring exnert knowledge. and the directors had been ad-Vjsed-bv men who wore experts, or men whom they deemed- tn be experts. The directors undertook the responsibility of assuming management, nnd left it to the experts to guide them. Hp pointed out that until the end of the commandeer they were working on safe lines, because they had a set price and there was no competition in selling. Since then thorp had been a free market, and there had been keen eompotition in selling, adversely affecting their markets.

The Alunip in the meat market which had taken place during the last twelve

months was unprecedented in the Dominion, and he ventured to say that such a slump would never be experienced in the Dominion again. However, he the ;ht that this experience had taught them one thing, and that was that New Zealand could never look upon itself as a beef producing country, that is from the point of view of marketing their beef on the markets of the world. Their methods here were too antiquated. Moreover, they were confronted with the competition of the chilled beef of the Argentine. This chilled beef could be delivered on the London market within three or four weeks. It was impossible . .for New Zealand to deliver their meat in that time, so that it was impossible for New Zealand to cater for the chilled trade, as chilled beef would only carry three or four weeks. It was, therefore, absolutely impossible for New Zealand to compete against any country 1 that put chilled beef on the London market and hope to get anything like a corresponding price for chilled beef. It was his opinion that New Zealand must only raise sufficient beef for its own requirements and depend on mutton and lamb as the stock to produce for continuing to supply the markets of the world. New Zealand mutton and lamb had a high reputation; indeed, the reputation of New Zealand lamb was the highest on the London market today.

VALUE OF THE PREVIOUS ■STO%K.

Reverting to the balance-sheet, Mr. Morton said that last year they had shown, a profit of £9OOO, of which they had placed £3OOO to reserve for income tax, while they had paid a 6 per cent, dividend and carried forward a small balance. They had valued the. stock in store at-what they deemed was a low valuation, compared with what they believed it won.J have realised, and but for the disastrous slum]) their anticipations w&Uld have been realised, and the stock would have brought more than the value set down in the balance-sheet. Although the directors could not be blamed for the whole of the loss, he believed that- they were to some extent to blame r in carrying on the freezing of beef when some of them, at any rate, realised that it did not pay. It would have been better not to have put a single hoof of beef through the works, but to have increased their handling of mutton and lamb.

It was, perhaps, true that in addition to the losses shown in tin’s way there had been slight losses in respect to the management, possibly through extravagance having taken place, and they now realised that as all the directors were new to the business, it would have been better had they paid one of their number a salary and enabled him to obtain a knowledge of the business, so that he could have always kept his finger on the pulse of the concern, and have reported to the directors from time to time the position of t/e company. However,they had not done so, and were to-day faced with the position that probably the whole of the share capital would be wiped out by the loss. This loss, he pointed out, had not all been made this year, part of it being due to stock last year not realising much more than London store charges. NO USE CRYING. All the directors, he said, regretted extremely the position that the company was in that day, but it was no use crying over spilt milk. The loss had been made, and what they now had to do was to consider some method whereby the company could carry on. The position was too serious to contemplate closing down. This would be a disastrous blow to the district as a whole, and particularly to the port and town of New Plymouth. Indeed, so serious would it be to the latter that if the works were shut down for a couple of years he believed the people of New Plymouth would find the capital necessary to re-start them. They must not think, however, of closing'down, but of reconstructing, though the position to-day was so serious that there was no chance of carrying on unless the present shareholders or new shareholders put capital into the concern. He recognised that during the past year or two the production of beef, mutton and' lamb in Taranaki bad decreased, owing to the higher prices ruling for dairy produce causing many producers to’go in for dairying, but he said that the price of dairy product was not always going to keep up to the, present level. It was going to fall back, not perhaps to pre-war level, but lower than at present, and it was not wise to put all their eggs in one basket. Unfortunately, the second basket they had provided in this instance had become somewhat dilapidated and broken and their eggs had been destroyed. THE SLUMP IN BEEF. As illustrating the slump in beef, the details of some®beef sent Home on owners’ account were read, having just ' come to hand. In one case 63 quar- ’ ters of beef were sent Home, realising 3 l-8d per pound, or £97 18s 4d. Killing. freezing, freight, insurance, etc., totalled £97 8s 4d, and London charges, storage, etc., £4l 0s lid, leaving a total loss of £4O 10s, or £2 17s per head on the cattle. Another man sent Home four cows (I’d quarters), which realised 2%d to 2 5-Bd, or £2l 5s Bd. Killing, freezing, freight, insurance, etc., amounted to £2B 2s 9d, and London charges, etc., to £lO 17s 2d, showing a loss of £l7 14s 3d, or £4 8s fid per head. Another farmer sent Home four cows, which realised £22 0s 7d. The total charges were £39 14s sd, showing a loss of £l7 13s lOd, or £4 8s 6s per head. Mr. L. Jackson said that as a layman it might be presumption on his part to criticise a business board such as they had. Some of the directors .were well-known business men, and others were successful farmers, but it had struck him after the auditor had read his report and he had heard his statements that the balances were grossly incorrect and that things were not quite right. He had dabbled a little in business and realised what such a heavy loss would mean to an association sucn as theirs. He realised that they had not got. all the stock from shareholders they should have got, and he thought they should send their buyers further afield. He had seen sheep and lambs going past his door which had not gone to their works. The buyers should get out among the small holdings, which in the end made up a big total. Again, the buyers should 'be instructed to give information as to tlq? markets, and they should offer straight-out the price tTiey intended to give instead of bidding up by 3d bids, as he had seen them do. They should give the suppliers information as to whether the markets were likely to rise or fall. He mentioned one man who had sold h.L sheep on ini formation as to the markets, while a smaller man had sold his sheep 3s or i4s lower. He: did not think-that gave their supplier! confident

THE BANK REPORTS. In response to a question, Mr. Quin said that it was only a couple of months ago that they found out that the monthly report supplied to the bank had not been correct. They would quite understand that he could not go into details at the present time. The balance-sheet before them, he added, was correct. Continuing, Mr. Quin said that the monthly reports had never been submitted to the directors. They could rest assured, however, that there was nothing wrong in shape at all. They could not find a shilling wrong, and could not find one carcase unaccounted for.

To further questions, the chairman said, that to a certain extent the directors were guided in their deliberations by the management and by the cables thev received from the Old Country. With regard to supervision at the works, they had to depend on the reports of their foremen as to the contents of the various stores. THE DIRECTORS ABSOLVED. Mr. E. P. Webster (the auditor) said with regard to a question as to the statement in his report with reference to the monthly report which was given to the bank, he would like to say that the certificates were not cheeked in any way by him before going to the bank. He was never asked by the bank to check them, and it was only during the investigations of the last few months that they had come under his notice, and then only in an accidental manner. He took no blame for not having discovered the matter before. The directors were entirely innocent as to the form which went to the bank and purported to show the true figures. A voice: Has the manager anything to say about it? Mr. Quin: That is his affair. Mr. F. C. J. Bellringer: Was only one statement to the bank irregular? Mr. H. B. Gray (the manager) got up to answer the question, but Mr. Bellringer pressed for an answer from the chairman. Mr. Quin stated that he thought a lot of them had been irregular. “I cheeked only one statement,” he added. “I never had an opportunity of seeing the others.”

Replying to Mr. G. Colson, the chairman stated that they had obtained independent valuers, and the figures in the balance-sheet were their values, which were about £l6O, or £l4B to be correct, lower than the previous figures given. To another question. Mr. Quin said that, he could not say off-hand how the killing expenses ran out pro rata as compared with last year, but probably they would be higher owing to the lesser output. “STICK TOGETHER.” Mr. J. Grant said it was a very regrettable position lor 1 the shareholders to meet and fii. . a loss of £BO,OOO. It was said that they could not . carry on without fresh capital, and that Taranaki was not good for cattle. The “cocky”’ had to cull his cows, and must get rid of them in some shape or form. Mr. Quin: You must understand that it is not one year’s loss, but two. Mr. Grant: That may be-true, but it is a very heavy loss. One man reared the cattle for the benefit of the people who ate them, and now they asked the unfortunate “cocky” to pay for them. He thought that all the suppliers had not supported the works. He himself had been offered £2 per head more for his bullocks by an outside firm, but he ihad refused. This was not the first disaster they had had in the country. Take the Glasgow disaster of ’77. This country had been hard hit, but the old people had shouldered their “swags” and had won through. The only way was to help each other, and the company was in the same position. Gome people thought that because it was a company it should go on paying out for ever. Of course, there were all sorts of ■remarks around the street corners, but they could be taken just as they heard them. He hoped they would all stick to the company, and not let it down. (Applause.) ADVANTAGES OF THE WORKS. Mr. Quin thanked Mr. Grant for his remarks. There had been a lot of advantages from having the works; it had not all been loss. At a critical time in New Zealand they had been an advantage by finding storage and keeping their stuff during a period of distress. They had been an advantage to the port, while they had also paid £11,361 odd in land and income tax, £B4l in county rates, and £6918 to the Government for the railway sidings. He still maintained that the works were in a very unique position as regarded a cheap port and facilities for handling their meat. They could rail from Marton as cheaply as they could get their cattle, etc., from the Ohura. The freights were just as cheap, and they could compete down as far as Marton with the Wellington companies. He felt sure the company would come through. Mr. J. S. Connett said that they all felt that the position was one to be seriously regretted at the present time, and no one felt it more than he did. A large amount of capital had been put in by the Moturoa people, and when their works could not provide for all their produce the works at Smart Road had been of great benefit to the producers. He and the chairman had induced many people to put their money into the company, believing it to be one of great good to the town and country. He regretted exceedingly that he was one of those who had induced others to put their' money into the concern. They had had to buy stock, but if they had frozen on consignment they would still have made a loss, but the com-; pany’s position would have been sectire. If producers could have been induced to carry on that way there was no doubt that the company would have been carried on successfully. The position resolved itself into this: Could they get additional share capita! to carry on? If not, they would have to look for other means by the sale of the works, or by leasing them to some- • one else. ,

Answering a question. Mr. Quin said there were 1600 shareholders, hut he could not say how many were “dry” and how many were farmers. A PRACTICAL SUGGESTION. Mr. 0. E. Bellringer said lie would like to say, as a small shareholder, that the position had to be faced, and he asked whether it. would not be wise to appoint a small committee to go info the whole matter and submit a scheme whereby they could save the concern. They had had to face difficulties in the past, and they had always managed to win through. Tt. was certain that they would not have got direct shipping had they not had the works. They were an Asset to the port, and in the interests

of the whole of the district they should devise some scheme to carry on. He was a comparatively small shareholder, but he was willing to increase his holding twenty times. He thought they should take into consideration the setting up of a committee to bring down to another general meeting of shareholders a scheme for carrying on with the works. (Applause.) PROMPT ACTION NEEDED. Mr. Newton King thought the suggestion an excellent one. As one of the promoters of the freezing works, he had gone round and induced farmers to take up shares in the concern. He pointed out that though the works had shown a loss, shareholders had had the benefit of them during the war, when there was not sufficient storage accommodation for their stock. They were now up against a dead end. If they were to carry on, it would be necessary either to find fresh share capital or to provide a trust fund, which would not be liable to be seized by the bank, mortgage or debenture holders; or the directors could consider selling the works. He had, however, been informed by a prominent authority that since the setting up of the meat pool no outside firm interested in the meat business would think of investing in freezing works. Failing the arrangement suggested by Mr. Bellringer coming to anything, it might bo possible to sell the output or to lease the works. If anything were to be done, it must be done quickly, as the season was coming on apace and the buying season was now almost open. If they were to keep open, the meeting must be held as quickly as possible. Referring to the slump, he said the directors felt the position very keenly. The blow came with dramatic suddenness, and they had not the slightest idea of it until they received the cablegram. He, however, was not quite so pessimistic as some of the speakers regarding the prospects of the beef market. At the present price beef, with the reduced freight, would give a reasonable return to farmers, and there was every prospect of an advanced price, as there had been serious trouble in the Argentine. Fortunately, he said, they had mutton and lamb, which had never seen the prices they had at present. In North Taranaki they could not go in wholly for mutton and lamb, as in the back-country they had to have a proportion of cattle to keep the land in condition. He speciallywished to thank Mr. Grant for his loyalty in standing by the company throughout. MARKETING CONDITIONS.

Mr. D. J. Hughes considered that the High Commissioner’s office in London should keep them in close touch with the market conditions.

Mr. J. Quin pointed out that they had either sold at 4jd and 4Jd through not knowing there was a shortage, when later the mutton had dropped to 6d or 7d. If the High Commissioner’s staff or their own representative had gone into the matter properly, they should have been advised of this shortage. Mr. Cocker pointed out that at the same* time as the chairman had sent sheep Home through their company, netting 4s each, a neighbor had consigned through a proprietary concern, netting 15s. The chairman said that if his sheep had been sold on the London market in January, 1922, instead of December, 1921. they would have brought him £1 each. Mr Cocker (Eltharn) said that they would all like to see the works carried on. They recognised that in a district like Taranaki the value of a co-operative concern was not what it gave them for their stock, but what it caused other concerns to give. He, however, considered that the large amouat of interest to be paid on overdraft, which with an ouptut of 50,000 sheep and lambs would amount to 4s per head, would prove a difficult hurdle to get over. Shareholders in South Taranaki did not have too much confidence in the buyers. THE FINANCE FACTOR. The chairman said that the bank had agreed to charge them no interest on tha overdraft for the next 12 months. Mr. Cocker expressed the hope that the concern would carry on, but remarked that many shareholders were in such a financial position that they could not put their hands in their pockets to assist.

In reply to Mr. R. J. Deare, the chairman said they could carry on if £40,000 or £50,000 were available. Mr. Deare considered there would be no difficulty in raising this by a judicious canvass, as the townspeople would be willing to assist. If the proposal were put he would second it.

The chairman said that there would be no ammonia, no stores to buy, and no interest to pay, and if they carried on £2OOO would be available from the Casing Company, but whether they would get the £40,000 or £50,000 was the question. He pointed out that,, whatever the position, they must endeavor to keep the works open. Another disastrous slump might not strike them for a hundred years. They were prepared for the ordinary fluctuation of markets, which meant £lOOO in or our, but when they struck a disaster it made all the difference.

Mr. W. Honeyfield thought the dairy cow would get them out of their difficulty. If they turned their attention to bacon, and also to casein, they might do something, but the buildings ware-too large for the stock they would now receive. The motion for the adoption of the report and balance sheet was then put and carried. ELECTION OF DIRECTORS. The three retiring directors—Messrs. Newton King, W. H. Perry, and H. P. —were re-elected unopposed. Mr. E. P. Webster was re-elected auditor. SPECIAL COMMITTEE APPOINTED. Mr. C. E. Bellringer then moved that a special committee, consisting of seven shareholders, go into the affairs of the company with the directors and bring down a report, to be submitted to a special meeting, as to v.hat is to be done regarding the future working of the company and the prospects of providing the necessary capital. This was seconded by Mr. L. Jackson and carried.

Messrs. C. E. Bellringer, T. C. List, D. J. Hughes, P. J. H. White, J. Gibbs, W. J. Gray, and —. Cocker (Rawhitiroa) were appointed to the committee. Some discussion took place regarding the personnel of the committee. Mr. List held that there should be a preponderance of country men on the committee. The town-, people would give their support for the reconstruction of the company, but thjy must be assured that support would also be forthcoming from the country. He considered that the directors had had extraordinary conditions to face during the pa.it year or two—conditions that would not recur in a generation. Taranaki was a province with a great future. It had received knocks in the past, and they shoull have courage to face these knocks and go forward again. Messrs. Hughes and King agreed that they wanted the best business men possible on the committee. z

Mr. White preferred to see on the committee men who understood the business trom the farmers’ viewpoint. The meeting had expected the directors to bring down some policy. However, he hoped that the directors would co-operate with the committee in propounding some scheme that would be acceptable to the shareholders. It was finally resolved, on the motion of Messrs. W. R. Wright and E. Marfell, that the committee be given power to add, and Messrs. C. H. Burgess and J. S. Fox were added. TIME PRESSES. Mr. Morton considered that if anything was to be done it should be done at once. The season was coming on, and they would have to make arrangements for buying stock. The sooner the committee could come before the shareholders with some scheme for carrying on, the better it would be.

Mr. W. R. Wright mentioned that the dairy-farmers would take an interest in the matter. He thought that the dairy-farm-ers of Taranaki should support the company, because if they helped one part of the district they helped the others. Mr. G. Colson recounted what had happened when he was asked to seize some of the company’s sheep on the New Plymouth Golf Club’s links as security for grazing fees due to the club. He stated that he had received a communication from a firm of local solicitors, asking him to come down to the links and take possession of

some sheep. He thought it was on account of a sale, and he went down to the links, where he met the captain. See

ing him with some foolscap, he inquired what it was for, and then the captain had remarked that he (Mr. Colson) had promised to come down and seize the sheep for distress for rent. He, however, declined, asking if the captain thought that as a shareholder in the company he was going to do a thing like that. A vote of thanks to the chairman and the directors was carried, on the motion of Mr. L. Jackson, who mentioned that th«y had had a very trying and arduous time. Mr. Quin returned thanks, and the meet* ing terminated. MEETING OF THE COMMITTEE. The committee subsequently conferred with the directors, and as a result the latter will bring down a full statement of the position as to the carrying-on of the Works, etc., and submit it to another joint meeting to be held at an early date.