GERALDINE DAIRY FACTORY.

Temuka Leader, Issue 1791, 18 September 1888, Page 3

GERALDINE DAIRY FACTORY.

The adjourned annual meeting of the ■hareholders in this Company was held at the Boad Board office yesterday. There was a good number of shareholders present. Mr Mr W. Peetlethwaite, Chairman of Directors, occupied the chair. chairman’s statement.

The Chairman stated that tbe meeting bad been adjourned from the first day for which it was called, owing to no returns being ebtainable ef a quantity of cheese then afloat. On the second date fixed there was a heavy flood in the rivers, and again the meeting had to bo postponed. It then devolved upon the Directors to fix a day, and at their meeting held on July 3rd, it was deeided to bold tbe annual meeting on September 17th. ANNUAL REPORT AND BALANCE-SHEET. The annual report and balance-sheet were read by the Chairman as follows; — Gentlemen —Owing to oircumatancee over which your Board of Directors had no control, we had to ask for an adjournment of the annual meeting which was held on 27th July, ultimo. —We regret that we are unable to place before you a more satisfactory balance sheet, which wa had fully hoped to do when we last met you. If you refer to tbe balanceiheet of 1887, you will find that the cheese then held in stock was valued at what then appeared a very low figure, viz, 4|d per lb.— You will remember that this cheese was manufactured for tbe colonial markets, but owing to the heavy duty imposed upon cheese in tbe various Auetrahan colonies, we found that we were completely shut out of those markets, which had hitherto been our main outlet. Wo had then to oast about for another opening, which was England. In connection wiih various other factories in Otigo an arrageosent was entered into with one of tbe shipping companies for freight at’ id per lb, and which was clearly understood ta be sent in a cool chamber, and it may be added that this supposition is bone out by the correspondence, we wish to add here, that it was not (ill tbe cheese had arrived in London, that we found out that it had gone to England as general cargo, and taking the two fads together, viz., that the cheese had been made almost 12 months’, and then sent as general cargo, it was very greatly depreciated in val ue; hence tbe great loss wa saitaihed, where we bad hoped to make a profit. Now at this portion of the report your Directors wish to draw attention to this particular item, viz, the purchase of milk. Dp to the end of last ssason we have paid more for tbe raw article than any other faetory in New Zealand. On referring to most of the balance-sheets published you wilt find that none exceed 2id per gallon. The Geraldine factory gave 3d, which would make a difference of £195 in favour of the seasons working bad we carried out tbe aystem adopted by other factorial, and as the working of the past season shows that one pound of curd has been produced from one gallon of milk, it ii evident that one of two things would have happened—either we should hive paid £195 less, or we should have made for the above sum, curd valued at 4d per lb, £26o.—Now we all recognise the importance of encouraging this local i industry, which is recsiving to much attention ' in the Home markets. It would seem a folly to throw over, for the sake of one or two year’s loss, what may ultimately prove so valuable to the district. We shall here quote from the report published by the bl mington Dairy Factory, whieh is in our immediate looulity. It appears from that report that the price given was 2£d per gallon, and at that price a shareholder slated that ho had made a profit of £3 13s per cow. Now the milk suppliers Will be uskad to assist forward „ this industry by supplying milk on the same (arms as is done in all other districts, it must be remembered that before cheese factories were introduced into the colony

thousands of pounds were wasted in this product alone. The price that will be adopted is one which will pay upon results, ns the milk will be paid for according to Us qu ility. We think this must appear to all a mo.-t equitable way of conducting the business Why should those who supply the raw artirli expect to reap a direct benefit over thosa who have invested money in order to help forward an industry, which at no distant date will be the means of introducing large sums of money into the colony. From a return made by s London merchant, it is shown that from the Ist November 1887 to 30th June 188 S, there were shipped fr< m New Zeeland 16,017 cwts of butter, at lOd per pound, which realised £74,746, as well as 28,320 cwts of cheese at showes a sum of £59,472. Now this sum of £131,218 is introduced into the colony for produce which was formerly wasted. Certainly these figures must set people thinking, whether we should not try and foster a trade which is now |openwg up for us, rather than neglect it because a direct profit is not reaped at first. It must be borne in mind that all our export trade has had an up hill battle to fight. For instance the frozen muttonj; perseverance has gained the day in that product, and we have every reason to believe that it will bo the same with cheese and butter, as it is an established fact that no country can surpass us in quality when mide of a uniform brand. Probably few are aware that cheese and buttornre now imported into England to the value of £16,395,654 from all countries, and the demand is increasing.— Ttiere is one more point your Directors wish to touch upon, namely, the resolution passed at (ho meeting o f shareholders he!?, on the 25th October, 1886, which is as follows: “ That, whereas it has become necessary for carrying on the business of the Company that the Company should obtaiu an overdraft from its bankers to the extent of £2OOO, and that the Directors should give their personal guarantee to the bankers in order to obtain such overdraft, it is hereby agreed, in general meeting, that the Directors be authorised to give such guarantee, and to secure themselves by mortgage of the real and personal property of the Company against any loss that arise by reason of their entering into such guarantee, and generally to take such other steps as may bo legally necessary for their more efficient protection. ” This resolution was passed, and confirmed at a general meeting of shareholders held on the 15th November, 1886 Your Directors have moat reluctantly bean compelled to exercite the power thus placed in their hands, and now they are wishful that all the shareholders should join with them ia trying to carry on the business of tbe Company to a successful issue. There is no doubt this can be done if the business be carried on on a fair and equitab e basis, when not only will the shareholders recoup themselves, but the milk-suppliers will so find a direct outlet for their product. The Directors who retire in accordance with the Articles are; Dr Fish and Messrs Skinner and Shaw, In drawing this report to a close, your Directors wish to place on their appreciation of their Secretary’s assiduity in performing hisdu'ies. Wm, PostlkthwAxtb, Chairman.

The balance-sheet ghowoi the receipts for the year to be £2719 9s Id, and the expenditure £2654 13j lid. The Chairman moved the adoption of the report. This was seconded by Mr Dunlop. In reply lo Mr A. Sherratt, the Odairman said 31 per gallon had been paid for milk, which was more than was paid by any other Company in New Zealand. Mr Sherratt, asked if arrangements had been made by correspondence that the cheese should go Home in a cool chamber, and it had not been so sent Home, but as ordinary cargo, had the Company no redress P The Chairman explained that Mr Brydon had written to the Di rectors Biking them it they would be willing to join the Otago Companies in sending cheese Home in a cool chamber. They replied in the affirmative, and fully believed the cheese had gone Home in a cool chamber until they got word back from their agent in Esgland that the cheese had gone Home as ordinary cargo, and had been nearly spoilt. The correspondenos having been carried on with Mr Brydon, and ho not being connected with the S lipping Company in any way, the Directors had no redress.

In reply to Mr Cunningham, the Chairman said that Mr Brydon had been written to to endeavour to get some red res j for the Company, but he declined to enter into the matter. A legal opinion had been taken upon the matter which opinion had been averse to the Directors. Mr Lewis asked how it was that cheese had been carted to Winohestsr and back. The Chairman explained that it was owing to an agreement having been made with one of the shipping companies for an amount of space for a shipment of cheese, but their shippers had broken faith with the Directors by sending word afterwards that the space was filled up. They had, however, sent down a cheque for the expenses incurred in cartage, Several of the shareholders thought the Directors had a claim against the shipping company, The Chairman said the case would have to be heard in the Supreme Court in England. Seeing that the Directors had no funds at their back, they did not feel inclined to fight the matter out with a powerful company in London. If the shareholders were willing to come forward and back up the Directors with the necessary funds, the Directors were quite willing to take the case up. Mr MoShane argued very strongly that if a properly drawn up and stamped agreement was made with a company the amount of damage oonld be recovered, The Chairman pointed out that such an agreement had been made, but he oonld assure them a legal opinion had been taken, which was to the effect that the matter would have to be fought out in the London Courts, and the Directors did not consider they were warranted iu going to that expense. Mr Pearpoint drew attention to the fact that the commission and charges incurred la putting the cheese on the London market amounted to about 32 per cent. Ha did not think that any company could pay while at such expense. Mr Dunlop did not approve of the cheese being sent to England at all. He believed that the Company would do better by employing a traveller to canvass the colony with a view to selling the cheese in New Zealand, Mr Moore did not think the cheese could be disposed of in New Zealand. The Directors would lose a considerable amount of time in trying to get the cheese sold in New Zealand, and having failed, as they undoubtedly would, it wouid be then too late to send it Home, as it would be getting too old, and would not bring anything like a payable price. Mr Sherratt said he was convinced the Directors had done their very best to make the concern pay. The manner in which they had involved themselves by giving their personal guarantee to the Bank for the overdraft of £2OOO was sufficient proof that they would do their very utmost for the concern, if only to recoup themselves. Mr Oollman said the shareholders must remember that the annual interest to the bank amounted to id in the lb, which, added to the Cist of making, brought the con of the cheese up to 4}d per lb before ito.uld be packed.

Mr Lewis said he would rather see the industry closed than supply the milk at 2£ 1 per gallon. The Chairman said that at present they had a test of milk that required 24 hours to give tbe results, and by that time if the milk was of poor quality there was no help for i». There had now, however, been a glass imported into NewZsaland that would give the quality of the milk in two minutes. The Director* would take good oare that they would not be suffarers in the future from what they h d suffered in the past. If the farmers wished to do justice to themselves and the cheese they must send the quality of milk yielded from the cow end not the quality of the milk that was tio often sent to the Factory. They could not speak too strongly upon this. It had come to their knowledge that milk had been sent to the Factory after the butter had been taken from it before it arrived at the gates of the Factory, The farmers could not expect to have the butter and then sell the milk for new milk cheese. A man might as well rob them outright as to take the cream off the milk and then sell it as new milk. He could tell them he had prepared 53 cows for the purpose of carrying on the industry, and he had been one of the strongest ad vooates for lowering the price of the milk. He was certain that, if they would only stick to the ship, they would make the butter and cheese industry a very important one for the colony. (Hear, bear.) Let them take up what paper they would, from all reports they could only come to one conclusion —and that was, that if they would only make one brand of cheese and butter iu the colony, so that the testing of one cheese or one keg of butter may bo a reliable sample of the whole, they would soon have a good market for Now Zealand butter and cheese at a payable prioe. He instanced one buyer who who had been sent over to New Zsaland with over £IOO,OOO for the purpose of buying up butter and cheese. He was quite convinced that the shareholders would make a great mistake to throw over a trade that would probably become'of very great importance after till. For his part, having to employ labor, he did not stand in a position to make as large a prefit upon the milk as many others who could do the work at home, and keep the labor at a minimum. He thought the farmers would be very shortsighted if they did not come forward and give the industry another year’s trial. Mr Lewis asked why the milk was not paid for by test as it was formerly. The Chairman said that by paying according to the test of milk they were paying more than they could afford, and the resolution was dropped. Those who sent inferior milk were instructed not to send any more unless they could send it of the proper quality. Mr Moore said that according to the new scale of paying the mppliers would get paid according to the actual market value of the milk supplied. Before good and inferior milk had been paid for alike. Mr MoShane thought the milk as bought bad turned out a very fair quantity of cheese in proportion to the quantity. Mr Ooltman said the quantity of milk bought last year waa 99,000 gallons, and IOO.OOOIbs of green curd had been made. After some further discussion the report and balance-sheet was adopted. lINANOIAL POSITION. The financial position of the Company was then gone into. The Chairman painted ont that the amount of the overdraft was £2BOO, for which the Directors had made themselves personally responsible. They would ask tbe shareholders to help them bear the burden, They proposed to give preferential shares to these who come forward to assist them, If they were not so relieved tbe Company would have to go into liquidation. They suggested that the meeting should adjourn for a fortnight in order that shareholders think the proposition over, After a little discussion Mr Fearpoiut moved that tbe meeting be adjourned for a fortnight. This was seconded by Mr Dunlop and carried.

Votes of thanks were passed to the Directors, the Auditor, and the Secretary, and after being duly acknowledged, the meeting adjourned.