WELLINGTON FARMERS' MEAT COMPANY

Wairarapa Age, Volume XXXII, Issue 10690, 9 August 1912, Page 6

WELLINGTON FARMERS' MEAT COMPANY

EXTENSION OF OPERATIONS. OFFER OF DEBENTURES FROM LONDON. Mr J. C. Cooper, chairman of directors of the Wellington Farmers' Meat Company, in urging upon tho .shareholders, at the annual meeting yesterday afternoon, the necessity for extending the operations of tho Company, explained the position, as follows :

OFFER OF DEBENTURES. ''lAn (offer of '£23,000 debentures from our agents in London has been 1 made to us with the object of paying ! I off existing overdraft, wild to make i! further extension-, chiefly in storage, *, a condition of the offer ■being that I \ Messrs Gilbert Anderson and Co., I .should be appo'utcd exclusive agents | I for all our exports for a number of I years. FINANCIAL POSITION. * I The position of the overdraft on capital is iv. follows : —After providing for bills due on machinery it will amount to a little over £12.000, and your directors are of opinion that wc have, gone far cmough As a matter of fact, although we have authority, to draw for a further amount, your directors do not like the idea of providing buildings and iniaehinery by bank overdraft. They are strongly of opinion that this is bad policy from the Company's standpoint. They ensicler that work of this nature should bo carried out either by share capital, secured debentures or profits, if available, ft is true that we shall have 'a considerable amount of profits available for extensions, but we are already committed to the purchase of a new freezing machine: This was necessary in; the interest of safety, and is being put in on the same principle as the shipping companies dupI plicate their freezing iracliines in all .1 ships. T'/iis <iviith the other 'small } additions, together with the necessary additions to the engine room, plus j the cost of carrying the Company (through -the slack season, win absorb j the bulk of our available profits. The I directors could fall back upon the de- ( bentures offered by our Loudon agents, but the majority of the Board object to the condition of exclusive agency, i and the length of time, namely, ten years; notwithstanding the fact that 'Messrs, Gilbert AiHk ,r j;Qn ■and. £0. 7 I have given eVery satisfact! oil, fiiitl illdeed, have taken far moro than ordinary interest in pushing our meat, apart from giving us a great deal of valuable advice. The Board considers the success of the Company so far, :Ims, to a great extent, been due i to the- fact that we have been absolujtely independent, whoever offered the ' j highest price got the goods in all cases.

INCREASED STORAGE. To explain the urgency for increased storage, it will lie necessary to go into the matter V)f existing storage. AVe have, at our works storage accommodation- for 30,000 carcasofi of 601b weight, but unfortunately we were obliged to build another freezing chamber in our store which "has robbed us of storage, space equal to 6000 carteases. This reduces our storage to 24,000 carcases, although hist season we bad at time equal t? 30,000 mi:-;cd sheep. Last season, place;"! ' as wo J were, \vb bad the greatest difficulty to ] carry,on our business —the difficulty being intensified by the fact that the ships carrying meat had cut down the quantities they otherwise could carry, as they had to provide space for the carriage of extra coal, this coal difficulty lasting the greater part of the busy season. As labour troubles in the Old Country have such a serious effect and appear to ihe an almost continual occurrence either in the Old Laud or in the Dominion, it is imperatively necessary for us to provide against them. Again, what is of equal or more importance is the question of excessive rush of stock for ono or two months of the year. This has caused trouble in the past. For instance, the year before last, and in all such cases like many others we are' obliged to ship the meat out as I we are unable to store. This fV.ct (gives the 'bears' sin opportunity to take advantage and to push down prices, and although the buying company may lose to hegin with, the settler loses in the end. As this country is going in more and more for the lamb trade with a consequently shorter season and greater rush than even at present, this evil of overstocking the Home market for two or three, months of the year must be guarded i against. Of course* storage for a I limited quantity can be found in the Homo ports; but this is not desirable, as the meat has passed from our immediate control, and the. cost of storage is excessive. In face of these facts your directors are anxious to further increase the storage as .soon aspossible, and the Board arc of opinion

that if they are to carry out any considerable enlargements to the storage [ this year, it can be done only by plac- , ing more shares; hut would'point out J that any fresh issue for this purpose i it would not ho necessary to call up the •' whole of the shares,, being of opinion j that 50 per cent, would 'ho enough, the (balance could remain as a collateral J security to cover the overdraft. j Having placed the position before you, I trust that shareholders in their own' interest will see the vital necessity for further increased storage and in the interest of financial safety, will I ) he prepared to find the money them- j I selves. Mr H. Morrison moved that the balance of unallotted shares be offered to producers for subscription, and that such shares he called up to an amountnot exceeding £2 10s per share, the calls to extend over a period not exceeding eighteen months. Mr A. J. Percy seconded the motion, which was carried unanimously. Mr R. IX MKenzie. director of the Company, said that in carrying the resolution the shareholders had taken a very wise action, second in importance only to. fclie initial establishment :? the works. In referring to the great success which had attended the venture, he said that the highest credit was due to Mr Cooper, their roanatring director, who by his untiring efforts, often at groat inconvenience t:i himself, bad brought the company to its present sound position. He t'Mmeht that as ?.oon as it was possible Mr Cooper should be given an onnor-l-"!lv to take a wfll-oanied holiday. ('Applause.)