TE AWAMUTU CHEESE FACTORY.

Waikato Times, Volume XXVI, Issue 2178, 24 June 1886, Page 2

TE AWAMUTU CHEESE FACTORY.

To the «upern"cial observer the balancesheet of the cheese factory would perhaps indicate that the company wan in a state of insolvency, but such is not the case, in spite of such a heavy loss a« was made this year. The statement of liabilities and asieti shows a deficiency of £1338 His 2d since the opening of the factory, last year's loss alone amounting to more than all previous years' put together. A great deal, however, of that loss was more apparent in this year's transactions than real, for in estimating the quantity of cheese in stock at last balance no allowance was made for shrinkage. Consequently, when it camo to be disposed of, the quantity was not there. The value was al&o put at too high an estimate, so that it cannot be said that loss from these mistake* arc actually the result of the present ye u-'s transactions. In the matter <>f slumkage the directors, have avoided the mistake made last year, for before making out the balanca-shcet the cheese in stock was weighed, when a, great difference wassoeu between the weight then and the weight when put into the curing-room fioiii the pre^ps. In the face of these mistakes, it would be somewhat difficult to arrive :it the exact loss incuired this year, but taking this into consideration, and the loss 0:1 the Lon-lcin and Austialian consignment., — which were, of c tur.se, the produce of last season's wi (i k — it miy hi reasonibly supposed that the lo«s w is not as great as that of last year. W«ie it not for the large item of £113 lost by tbe failure of Vailo and Hiadlev, the factory would, we think, upon a minute uvunmition of all the sources of loss, have shown that it pud its way. The lov, from shrinkage having been taken into considei.itioti and the stock having been estimated at something under market price, or perhi'p'i moie properly speaking at what it should net. the actiul gain or loss of ne\t season's woi k should be easily shown at n"\.t balance. Undei the heading "e\penses of management ' the item of wages £241 18s 8d is veiy ui'idciate, audit should be borne in mind that a considerably greater quantity of milk could li ive been worked without increasing that item to any great extent, if at all. A great drain on the tevenue of the company is the tax they pay in interest and commission. Did it ever strike the shareholders and suppliers that it amounts to not loos than 17 , per cent. on aim ist the whole of the turnover '! The money which is paid to the supplieis is borrowed from the bank at 10 per cent, and the commission on cheese sold through agents is 7J and in some cases more, for some charge for handling and storage. It must be remembeied however that the charge of 7A per cent foi commission carries with it a guarantee which would not l>e given for a less charge, and though the commission cannot be expected to be reduced, the item of interest could if the suppliers would consent to take bills at tho end of three months. One of the strongest arguments against this will of course l>o the objection of waiting six months for tho money unless the supplier chooses to pay the bank discount, but there is not such a great deal of hardship in this. If a farmer buys a lot of store cattle or sheep he frequently has to wait six months for a return, with the by no means remote chance that he will not make anything on his purchase money. In this case, however, the receipt of a certain sum at the end of a fixed term is assured. By this means the directors would not be compelled to keep such a large overdraft, for the length of the term would allow of a great portion of the cheese to be disposed of to find cash to meet the bills. It is quite evident that the company cannot go on working with such a handicap; it might possibly clear expenses another year, bnt somstbing more than that is required, and if it is to be kept going the suppliers must be prepared to make some such concession as that suggested. That they will not supply milk for anything less than they have been getting is quite certain; it would not be reasonable to expect it, but in view of the fact that the shareholders have been lying out of thoir own money for so long & time, it is quite a reasonable request to ask them to wait for six months for theirs. This oourse has been suggested by the chairman, and we know, at any rate, one farmer who sends a considerable amount of milk to the factory who approves of it, and is quite willing to send next Beason on these terms. There can be no question as to tho immense amount of good these factories have done in the whole Waikato district. Dairy cows have advanced in value, and men have told us that were it not for the cheese factory they do not know what they would do for a living. If the factories closed farmers would have to resoit to butter making, and they are well acquainted with its preoariousness ; cows would go down in value, and tho certain income which they have hitherto enjoyed would be lost to them. To those who make a really first-class article buttermaking has been, no d' übt, and would still bp fairly profitable, but not more so than would supplying milk to tho factories be, for in the latter case the drudgery incident to dairying is avoided, and there aro no kegs to buy and no commission to pay. However, a meeting of suppliers, directors and shareholders will shortly be called, when the whole matter will be fully discussed.

The Queen contemplates issuing a ukase censuring the barbarous fashion which so many women have lately adopted of wearing the bodies of birds, or parts of their bodies, in bonnets and hats, and on dresses. Her Majesty strongly disapproves of this fashion. Ax Austrian Piincess, a widow with young children, has lately, to the horror of the Viennese aiistocracy. been going about with wandering musicians to sing at little beer-houses iv the capital. She has been forced to do this to procure a livelihood for herself. LAsr ye u- 23,328 inrentions were patented at Washington, mostly time, labour, or money saving devices,