TEMUKA BUTTER, CHEESE, AND BACON CURING FACTORY COMPANY, LIMITED.

Temuka Leader, Issue 1627, 30 August 1887, Page 3

TEMUKA BUTTER, CHEESE, AND BACON CURING FACTORY COMPANY, LIMITED.

; The annual meeting of the share 1 holders of the above Company was held yesterday evening at the Wal lingford Hotel, Temuka. There was a large attendance. Mr Job Brown Chairman of Directors, presided. The minutes of the last general meeting were read and confirmed. The Chairman then submitted the annual report and balance-sheet. The report was as follows: Gentlemen, —Your Directors hove the pleasure of placing before you the balancesheet for the past year. On reference to the profit and loss account it will be seen that the debit balance has been reduced from £521 2s Id to £7B 13s lid, showing a net profit of £442 8s 2d, an amount equal to 13 per cent, on the invested capital. The financial position of the Company may be shortly stated as follows :—The overdraft is £517 Hs 4d, against which there are unpaid calls £2ll 14s 9d ; sundry debtors, £24 9s; and cheese oo hand, which is sold but awaits delivery, £435 17s; altogether, £672 Os 9d. These amounts realised would therefore clear off all indebtedness, and leave a credit balance of £154 9a sd. The shareholders have every reason to be pleased with this result when it is borne in mind that the ruling rates for cheese for the past twelve months have been exceptionally low in consequence of heavy rains in Australia, The quantity of milk received during the season was 148,793 gallons, and from this the quantity of cheese made was 137,5671b5, an average of 14 4-sth oz». of cheese from each 10lb of milk. The sale of this cheese and the consequent diatrlbu tion of over £3OOO of Austra - lian money in the immediate neighborhood has undoubtedly had a beneficial effect. It is questionable if an equally favorable market wil l bo found next season, because

at the present time the supply is in excess of the demand, and this consideration brings us to the question of the advisability of declaring a dividend. This is a matter which rests with the shareholders. If all the shareholders were milk suppliers, or derived equal benefit from the Factory, then your Directors would strongly oppose such a course, but it mast be borne in mind that many of the shareholders have had this money invested without any return since the establishment of the Company, and the shareholders themselves , must decide if, in the face of a probably unfavorable year and the smallness of the margin, they deem it necessary to withdraw a sufficient sum from the working capital to pay a dividend at the rate of, say, 5 per cent. It must not be overlooked that an engagement has been entered into—Mr Bowman, the manager, having been reappointed for another year, and that any expenditure for the payment of a dividend will proportionately weaken the Company’s resources, it will be necessary for the elect four Directors —two in the place of Messrs J, Brown and J. S. Hayes, who retire in accordance with the regulations of the Company, but who are oligble for reelection, and two to fill the vacancies caused by the retirement of Mr Grant, and the death of the late Mr John Paterson. An auditor will also have to be elected.

In moving the adoption of the report the Chairman congratulated the shareholders on the successful results of the past year. It had not been, altogether plain sailing, but their Directors had been successful in bringing their cheese contract to a successful issue, although at one time an attempt had been made by the consignee to repudiate it. With regard to the item of £sl 15s 6d, which appeared- on the bai*nce-sheet for repairs, he explained that this was incurred for necessary alterations which were already found to be of great benefit. He had great pleasure in moving the adoption of the report and balance-sheet. Mr Russell seconded the motion. Mr Bateman asked for an explanation of the item set down for unpaid calls. It was explained that a _ large part of this was for new shares issued to milk suppliers. Interest was charged on all outstanding calls unpaid. The report and balance-sheet were adopted as read. .Some discussion ensued as to the advisability of declaring a dividend, and Mr Quinn moved—“ That the amount to the credit of the Company

be carried forward to the nest year.” This w«s seconded by Mr Metson. Mr Bateman moved as an amendThat the Factory be closed, the machinery be submitted to auction, and the building opened to farmers as a free grain store.” Mr 0. Matthews seconded the amendment. Mr Gray felt confident that the amendment would be withdrawn on consideration. The report presented was a most favorable one, and he for one believed that still more prosperous years were in store for them. There was every promise of a good market being opened up for the sale of their cheese, and doubtless the future operat : ons of the Company would continue to be remunerative. This was one of the few factories in the country that had been brought to a' successful issue. Several others had been started and had failed, and

he felt regret that after several years of uphill work successfully overcome any expression of disapproval op dissatisfaction should have been made. : Mesrrs Mathews and Trezise supported the amendment. They were large shareholders, and they had never received any benefit from the tio ns of the factory. • Messrs Quinn and Cam strongly deprecated such an amendment being The motion was carried, only three voting for the amendment. Mr Quinn moved a hearty votp or thanks to the directors for their services during the past year, which was carried unanimously.

The Chairman briefly replied on behalf of himself and brother directors. Dr J. S. Hayes and Mr Job Brown, the retiring Directors, were re elected. For the other vacancies on the directorate the following nominations were made: Messrs Quinn, 0. Mathews, S, Clinch, and James Scott, A ballot was taken, and Messrs Quinn and Scott were elected. A letter was read from the auditor testifying to the able manner in which the books were kept by the Secretary. The Chairman had much pleasure in also bearing his testimony to his efficiency. The Secretary expressed the pleasure he felt at the commendray remarks that had been made concerning him, and trusted that he would continue to deserve them. His duties had been greatly lightened by the assistance he received from the Chairman. Mr Eout was re-elected auditor. A suggestion that a cottage be erected for the manager was favorably received. After discussing some minor matters, the meeting terminated with a vote of thanks to the chair. At a meeting of the directors subsequently held, Mr Job Brown was unanimously elected Chairman.