WELLINGTON FARMERS' MEAT COMPANY.

Wairarapa Age, Volume XXV, Issue 10713, 7 August 1913, Page 5

WELLINGTON FARMERS' MEAT COMPANY.

annual meeting of shareholders. The fifth ordinary general meeting of shareholders in the Wellington. Fanners' Meat Company was held in Hall, Masterton, yesterday afternoon. There were about ninety shareholders present, said the chair was occupied by Mr J. C. Cooper (chairman of Directors). The report and balance-oheet were' taken as read. In moving the adoption of the report, the Chairman said: "I desire to congratulate the shareholder® on the result of a successful year's operations. As will be seen by the balancesheet, after .making ample and prudent provision for depreciation} your directors are in a position to transfer from profits the sum of £4500 to the Reserve Fund, and to reoommend a dividend of '6 per oent. oil the paidup capital of the company* absorbing: £2483) leaving a balance to carry forward of £7BB, "In recommending the payment of this dividend on capital, your directors are not so much influenced by the fact that the? past year has been a satisfactory one is by the fact that the financial position of the company is now exceptionally good, notwithstanding that the company's, business has been largely extended during the past year. As a matter of fact, over £IO,OOO w-as expended on additions to the plant last season,, and arrangje- , ments are now being made for further , large additions to be completed before we enter tihd busy portion of next season... >•" ' 1 . ; • : "When these additions are completed, the capacity of the plant will be just doable what it was when we started business three seasons ago; while the engine-room equipment will', be more than double; and it is still very doubtful if these additions will be anything like sufficient to meet the immediate requirements of this district. Believing this to be tho case, your directors ihave decided to place -the balance of unallotted share capital, amounting to 1500 shaww, at £5 per share, a total of £7500 in all, not that the money is actually needed. As a matter of fact, it i$ the intention of the' board to .only call up.; half: the capital, - and 'oven to . spread ' the collection of that over two years, but filing certain that it ! wilL.be necessary to sink the accumulated savings of the company for some years to come in extensions, the board believe it desirable to have a reserve of uncalled capital behind the business. You will understand that so far th» company's reserves are invested in business. "As showing the rapid development of the company's business, we last year put through our works 189,925 sheep, 116,250 lambs, 2270 cattle, 2727 bales of wool, 1625 casks of tailow, and 534 casks:,of pelts; while of tinned meats for export, we een€ away 1100 cases, and we had at th» close of our year a large quantity in store waiting shipment. This tinned meat business is quite apart, from the large and rapidly 1 increaising local trade now carried on by the company. These exports. are quite apart als» from the large amount of sundries, and amount to considerably more than double the output of our first season. "The amount of wages paid to our employees, who number about 200 in the busy season, apart' from salaries to the staff shown in the balancesheet, waj £22,768 17s lid; and to' business firms alone, we paid £4351 10s Id for requisites,of one kind and another, quite apart from the large sums of money which the company •paid to Christchuroh, . Wellington and Palmerston North firms for coal, meat cloths, casks, etc., the total Expenditure under these various headings being also considerably more than double that paid out for out first season's business. "With respect to the future prospects of the industry, evej*y; indication appears to point to the'* future being very bright. With prices having an 'upward tendency, there must of course occasionally be set-backs through a bad state of trade, and other causes.. For instance, the probable, heavy export of larafos from Australia next year is regarded by many people in the trade with apprehension, but apart from instances of this kind the general tendency of prices over a term of years will be upward.

"The demand for our meats is becoming greater every year, and it is well-known that supplies are "not keeping pace with the demand. Indeed, in the Argentine, alarm is now being expressed that there has been too heavy a drain upon the cattle supplies to the ]?- ,o exports of the last few months g. ing. "In conclusion, I .wish to point out that apart from the rapid developntent of the company's chiefly due after all to the e; ' reme care and sound business methods introduced by your Board of Directors, the works have been of enorm -us benefit to the frozen meat indufc' v of this district, particularly in - > lamb trade. , To-day the lpcal brar s. of mutton and lamb stand «econd- i » none in the Dominion, and as tin, * goes on these works will no doubt assist in making it not only a leading district in quality, but will assist? very largely in the development of this extensive district, while the largo amount of money spent annually as wages and for various requisites must continue to add greatly to the max terial prosperity of the local centres of population."—(Applause.) THE SECONDER'S SPEECH. In seconding the motion for the adoption of the report and balancesheet Mr Hugh Morrison isaid: "Per-

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haps it would not be out of place if 1 were to rem'nd the meeting that not withstanding all the obstacles anc difficulties which this company had to overcome, during the short time it ihas been in existence it has established a positioh for itself second to no other company in New Zealand in the same line of .business, not alone in the establishment of its finances which might perhaps be nearly approached by some other companies but in what is perhaps of equal, oi possibly more importance, the excellent reputation established by this company for every article put upor the market. This applies noli only tc mutton, lamb and beef, but also tc such articles as wool, tallow, pelts and tinned meats. During the pasi season our mutton and lamb of besi quality sold quite on a parity witl Canterbury prices. This fact has had an important bearing on price: of stock in this district, and must 01 course continue to have a big effect ii the future. For this splepdid rosull the thinks of the shareholders anc settlers are duo to the managemenf and responsible officers of this company."—'(Applause.) "During the whole of the past season the company was receiving botl by cable and by letter urgent requests for prime quality, but was unable to supply. It is now no secret) indeed, it is openly admitted that the people in the trade requiring oui prime quality meat need it to sell as English or Scotch, and so greal is the demand that the Home supplies are altogether inadequate. This being the case, the time cannot be far distant when there will be verj little difference in value between ous best brands and English-grown meat, Our second quality supplies quite a different market. With regard tc the sale of second quality meat, last year proved quite an exceptional season for the disposal of meat of this class, as Canterbury exported such a large quantity of prime quality meat, leaving a good market for unfinished carcases. But with the prospect next season of large supplies of Australian meat, which is usually regarded as second quality, the position is likely to be very different. In view of this probability, I think farmers will be very wise to make their stock good. After all, if a farmer has a lamb on the rape presumably worth 14s "and if he has the feed, surely it is better to improve that lamb until it is worth 16s, rather than to sell it' and buy a §tore lamb at 12s to replace ,it. And if there is any farmer who is receiving a particular advantage through those works it is the local fat lamb fattener, betause he can put his stock in without damage or loss. As an indication of the small amount of damage done bi knocking about 1 may mention thai the total number of lambs rejectee last seasbn because of bruises wai 37, and nearly half of this total canu out of one lot of 800 lambs that had been badly mauled by dogs before arriving at the wprks. Of sheep the total rejects through bruises was 130 and of cattle only a few quarters. These, figures surely speak -volumes for the local works. "In conclusion 1 wish to congratulate the managing director and all those under him for the excellent position we now lind ourselves in. Mr Cooper has had a heavy burden upon his shoulders. The efforts of himself and those under ham are appreciated by, every director and every shareholder in this Company." (Applause.)

THE MOTION DISCUSSED. Mr John <Hunter asked why it was that certain persons who were not shareholders had received preferential treatment during the past season? Mr J. C. (hooper said he was not aware that this wae the case. He knew, however, that the stock of certain clients who were not shareholders had been handled. He pointed out that the oompany was a tracing concern, and had to deal with outside stock. Mr Hunter stated that the explanation that the company was a trading and not a co-operative concern altered the position somewhat. He pointed out, however, that he had difficulty in getting his lambs away last year, while a neighbour who was not a shareholder had no difficulty. Mr Hunter proceeded to criticise the speeches made by the mover and seconder of the resolution. He expressed surprise that the chairman 'had not given more information in regard to the figures in the balance-sheet. He could not understand how, dn the face of the figures, the directors recommended a dividend of 6 per cent. .Mr Hunter alleged that the management at the works last season had bieen disgraceful. He considered there had been an economic and preventible waste in the yards of between £4OOO and £SOOO last season. He believed the management had been very defective. He. would not himself be disposed to put further capital into increasing the plant until the management was improved. A director: We can get the capital without you! Mr Hunter: I know you can. - A voice: Why did you not fatten your sheep, and then you would have got them away? Mr Hunter stated that he had lost the whole of the season. He

warned the shareholders —and he declared that he was not a pessimist—that unless there was a complete change in the management, the company would he in the melting-pot ill two years. Mr J. 0. Cooper stated that MiHunter had made a rather startling and unexpected statement. He explained that the buyers would not ;take Mr Hunter's stock, because it was not fit to he slaughtered. (Laugh- j |ter.) So far as the financial criticism of Mr Hunter was concerned, 1 the Chairman stated that the com- | pany had been able to get top it ler la secret service fund, and the :iinn i I ces were on a sound footing. (Ap- | plause.) Mr Cooper stated thron |no occasion had "there been, "lore j than three clays' killing in the yards !at Waingawa. He challenged Mr I Hunter to put up a sum of money and prove his statements regarding / the management. (Applause.) Mr Hunter could have received an explanation concerning the stock and finances had he called at the office. 1 (Applause.) The Chairman alleged 1 that Mr Hunter had a personal grievance, and this had influenced his remarks. (Applause.) Mr Hugh Morrison asked how it was, if Mr Hunter's statement were correct, the meat of the company had ' secured euch high prices on the London market? He considered that Mr Hunter was "out with the hulls." (Applause.) Mr McLean (Hawke's Bay) asked what was the proper weight of a prime .sheep. Sometimes he found the sheep too light and sometimes too heavy. Mr J. 0. Cooper said that the weight desired for the Home market was 561bs for and 361 bs for lambs. * ■ .... 1 Mr R. Hodgins (Pahiatua) said I there was always a man with a grievance in,any large concern. Mr Hunter evidently hkd a grievance, but he was the onfv one in the room. (Applause.) Mr Hodgins congratulated the directors upon th?ir management of the affairs during the past season. It was necessary to have Btock at the yards to keep the board of butchers going. Instead of the company being in the melting-pot in two years, he believed that they would be drawing golden sovereigns from the concern. (Applause.) Mr H. C. Hobmeon, on behalt of the preferential shareholders, (thanked tne directors for the divid- , ' end of 6 per cent. This had been | unexpected* and he believed that the shareholders , would be satisfied if t-hev did not get another dividend. [ The motion for the adoption of the report was .' then put and carried urt- , I animously; .

THE DIVIDEND. Mr R D, iMcKenzio moved, ''That a dividend at the rate of 6 per cent: on the paid-up capital both preference and ordinary in terms as set out iu the Articles of Association be declared, and that such dividend be made payable on and after August 6th f 1913. Mr McKenzie quoted a newspaper paragraph to show that the shareholders had already received a dividend in the extra price of stock. Mr J. H. Tatham seconded the motion. . Mr J. F. Heckler asked if the directors had considered the desirability of adding to the reserve instead' of declaring a dividend. So far as the supplying shareholders were concerned, he did not think theyvwere looking for a dividend. The Chairman stated that this matter had! been considered; but it had been thought that those who had provided capital and were not suppliers should receive some consideration. The directors themselves had decided that they would not take dividends, but would put their money into fresh shares. Mr Edwin Johnson said he had neither 1 feheep, cow nor bull. He had taken shares in the oompany to help it along. He thought they should pay a dividend. He did not earn his .money as easy as a lawyer.—(Laughter.) On the motion of Mr Heckler, it was decided that shareholders Be informed that they may take shades in lieu of dividend. * • . The motion in regard to the, dividend was then carried. ■ ' DIRECTORS. The Chairman announced that there being no outside nominations, F. B. Lowes and Hugh. Morrison were declared re-elected as directors. Mr Matthews expressed the opinion that the northern shareholders should have representation on the Board of Directors. The Chairman said the northern district had two representatives at one time. He would be glad to see them again represented. Mr Groves said this matter could be overcome by nominating directors next year. He was sure that the southern shareholders would support a northern candidate.—(Applause.) The honorarium of directors wafl, on the motion of Mr Speedy, increased from £1 la to £2 2s per meeting, with travelling expenses* AUDITORS. Messrs Badham and Biss were reelected auditors, at a fee of 75 guineas. THANKS. Votes of thanks to the staff and the chaiamtan terminated a most buoful meeting.