TEMUKA DAIRY COMPANY.

Temuka Leader, Issue 1782, 28 August 1888, Page 3

TEMUKA DAIRY COMPANY.

The annual meeting of the above Company was held last evening in the Wallingford Hotel, at which about 15 shareholders were present. On the motion of Mr Twomey, seconded by Dr Hayes, Mr R. A. Barker took the chair. MINUTES. The minutes of the previous meeting were read and confirmed. ANNUAL REPORT. The annual report was read ai follows: QiHiZßXnr,—Tear directors hare the pleasure of placing before you the balance' ' iheet of (he year. On reference to the profit and loss account it will be seen that the debit balance has been increased from 47818 s lid to £672 2s 9d—or, in other words, that the Company has sustained a loss of £4BB 8s lOd on the year’s work. The financial position of the Oompeny may be shortly stated as follows The overdraft is £1958, »nd the amonnt owing to sundry creditors is £96. Against this there are the following: Unpaid calls, 4107 8s 6d j sundry debtors obsess, £203 16s 8d; cheese on hand, £IOOO 4s 2d } unpaid bills, £34105, which, being deducted, leaves a deficiency of 4701 2s Id, The value placed upon the cheese on hand may at first sight appear ezeeativs, as compared with the prices realised, but. after careful consideration, your dinotors feel satisfied that, as the market is comparatively clear of this commodity, and the demand is more active than it has been at any time during the year, the reeult of its lale will fully clear the amount of the valuation. It ia to be regretted that we have to record sneh a heavy loss, but it may be easily accounted for from the excessive charges for duty and freight which are incurred in shipping to the Australian and Inglish markets. The cheese hei realised the top price in these markets, and, although the top prices have been abnormally low, if it were, possible to obtain a redaction of these charges, it would result in the faolory showing a very different balenoe-sheat another year. Every effort has been made by the directors to obtain inch a redaction, end they hoped to be to a certain extent aneeeiifal. Daring the season 194,106 gallons of milk have been received, from which 193.4691 b of cheese have been median average of 15 9-10thi ounces of cheese to 101 b of milk; and an increase of an ounce of eheeee par gallon ae compared with last Koeon. Careful measures have been taken to redneeind keep down the expenditure, and a comparison with the balance-sheet of the previous year shows that, taking the quantity of cheese made, rir., 78 tons against 66 tons, the proportionate expenditure has been considerably less. The erection of a cottage wai delayed as long as possible, but at last became a matter of necessity, and had it not been for the Increased spaee thus gained the working of the factory would have necessarily been stopped. Ths prospects at the commencement of last •eason were, as was pointed ont in the report then laid before yon, of a discouraging kind, aod it ia to be regretted that, although there is at present an inoreased demand for obtest, there ia no probability that this demand will last for any length of time beyond the commencement of another season. In oensideration of this, it will devoirs upon the new directory to adopt measures of a precautionary kind, so as to avoid a recurrence of the losssi which have resulted daring the past season, The question of the desirability or otherwise of making eheddar cheese and butter will also have to be decided. The manager (Ur Bowman) has been reappointed for another season, and it may; be mentioned incidentally that owing lohiscars and attention there have not been ' any losses from defeotive or bad eheeie duridg the year. In conclusion it may be stated that although the experience of this Company has not been satisfactory to the shareholders daring the past twelvemonths, it in do way differs from others in that respect, as there arc very few cates where a loss has not been made, and several companies have been compelled to go into liquidation. It will be Decenary for file shareholders to elect three directors ia place of Messrs S. Cain, K, F. Bray, and M. Quinn, who retire in aot>ordanee with the regulations of the Company, but who art eligible for re-eleetion. The gentlemen so elected must be prepared to •ign a personal guarantee to the Bank for 42000. An auditor will also have to be oleeted*

The Chairman moved the adoption of the report and balance-sheet, and eaid that if it was discouraging to' shareholders it was good for milkSoducers. That was the main thing, e never expected a dividend, but only for haying to build a cottage last year there would have been a small dividend. If they got good prices next year they would be able to pay a dividend. He moved the adoption of th e report. In reply to Mr Metson, the Secretary said the rule was that all milk suppliers should be shareholders, but one or two had no shares. The prices realised would have paid, but the commissions and freight swallowed ' up all the profits. ; ; Tp’ reply to Mr Brown he said that it would take two tons of Mount Somers coal to, do as much as one ton /of Newcastle. It was not intended to { continue the Mount Somers coal. i In reply to Mr Daily, Mr Ashwell said the baskets adopted by other factories would not suit, as they were too weak. Mr Daily wanted to know whether they were going to give any more for milk, this year. If they did not the ,peop]le would not supply the milk. £Mr. T.womey said in face of the fact . that a loss was made last year, it was hotreasonabletormilkproducers to ask for more. The people who had reason for complaining were the shareholders who had invested their money in the concern but never got a dividend. • Mr E. Brown was in favor of lowering the price of milk instead of raising it.

jDr Hayes thought the best plan would be to pay the milk producers say about 2d pet gallon, and at the end of the year divide the profits . amongst them in proportion to the milk they had sold. In that way a great saving might be made in interest. Last year the directors guaranteed £2OOO to the Bank, and he was one of the three who over and above that sum guaranteed £3OO. They had a lesson in what happened as regards the Linseed Gompanyjsnd they would require some security probably. By the milkproducers waiting till the end of the season for a part of the price of the

milk the guarantee would not require to be so large, and a saving in the way of interest could be effected. Mr Daily said that would be a very fair way of doing justice to everybody. Mr Twomey seconded the adoption of the report and balance-sheet, and, after some disc ussion, the motion was carried. TEE PBICE OE MILK. Mr E. Brown moved that the directors take into consideration the advisability of so adjusting the price of milk that something will be left to pay a dividend to shareholders. Mr Metson seconded it. Mr Daily said if the price of milk was lowered no milk would be got at all. Dr Hayes said that the factory system was only on its trial yet. He had no doubt but freights would come down yet, and it could be worked more profitably, it would be a great mistake to destroy the factory. Mr Twomey said that it was a thing that at present required shepherding, aad as the milk producers bad the most interest in it they ought to deal with it reasonably. Mr Davis said if they were going to the bad at the rate of £6OO a year the sooner it was wound up the better. After some further discussion the motion was carried.

ANNUAL MEETING. Dr Hayes oa behalf of Mr Gray, who was absent, moved a resolution to adjourn the annual balance from the 31st July to 81st August, and to hold the future annual meetings on the last Monday in September, instead of the last Monday in August. Mr Brown seconded the motion, and it was carried. VOTE OE THANKS. Mr Twomey moved a vote of thanks to the directors of the past. They bad not given them a dividend, but it was not their fault. Ho one could say they had muddled the affairs. Mr Clinch seconded the motion, and it was carried unanimously. The Chairman regretted the Chairman of Directors was not present. He did the bulk of the work, and to his business tact was due the fact that things were not worse. He thanked them for the vote of thanks. ELECTION OE DIRECTORS. The retiring directors were Messrs Gray, Cain, and Quinn, and a letter was received from Mr Quinn, stating that he would not seek re-election. On the motion of Mr Twomey, seconded by Mr Blyth, Messrs Gray, Cain, and Woodhead were elected directors.

AUDITOE. On the motion of Dr Hayes, seconded by Mr Twomey, Mr Rout was re-elected auditor. THE OPFICBES. Dr Hayes moved a vote of thanks to the secretary and manager. They deserved more salary than they got, and he hoped to see the factory in such a flourishing condition that they could pay them better. Mr Woodhead seconded the motion, and it was carried unanimously. Messrs Ashwell and Bowman acknowledged the compliment* The meeting terminated with a rote of thanks to the Chairman.