INCREASING COSTS

Waikato Times, Volume 121, Issue 20257, 28 July 1937, Page 2

INCREASING COSTS

DAIRY COMPANIES HIT.

SUPPLY OF BUTTER BOXES. MORRINSVILLE FACTORY’S YEAR. (Times Special Reporter.) MORRINSVILLE, Tuesday. The advance In dairy factory costs by the Increased cost of Hitter boxes was commented on by the chairman, Mr J. E. Leeson, at the annual meeting of the Morrinsville Co-operative Dairy Company to-day. About 180 attended. Early In the season under review, he said, the Government had decided to take complete control of the butter hox supply, the Dairy Board having been made the sole buying agent of the factories from the mills, and the Forestry Department “ladling out” the white pine to them. There was no longer any oontaot between the dairy companies and the suppliers of the butter boxes, with the result that the oompany had had to pay an additional £2600 for last season under this head, together with a I deduction of 10s a ton, or 3d per box, because the companies were told to use the box they had always used. The total extra cost on butter was £4300, or over $d to shareholders. The company h.*d been concerned about the supply, and on one occasion had had only a halfday’s supply In hand. Cartage and Wages Costs. Another item that had Increased In cost was the cartage of cream. The oontrol of transport and the restoration of wages cuts rendered the comS many’s contracts worthless, and the rectors were faced with heavy deands for Increases, with the result that the Company’s costs ran Into an additional £IOOO for the season. Wages in the factory had Increased by 18 per cent., but the full position would not be known until the new award for dairy factory workers came Into force. There was also an increase of 18 per cent, in the overhead expenses. Effects of Zoning. Mr Leeson also referred to the question of zoning and the powers of the Executive Commission of Agriculture and their activities In the Waikato. It was estimated that the Morrinsville Company would receive an additional 500 tons supply as the result of the dosing of the Waikato Valley and Tauplrl Dairy Companies’ factories. The net cost of the new supply was estimated at £6 per ton In the case of the Waikato Valley and und-r £3 per ton In the case of the Tauplrl company. Re-eleotlon of Directors. The report and balance sheet were adopted without dissent, and Messrs J. Brown, B. J. Plrrit and D. T. Davis were re-elected unopposed to the board of directors. The auditor, Mr T. J. Ryan, was also reappointed. In view of the Increasing business of the company It was resolved that the remuneration of the directors be Increased from £4OO to £SOO for the ensuing year, and that the auditor’s fee be Increased from £BO to £IOO.

The meeting also confirmed the recommendation of the board that a dividend of 8J per cent, on paid-up capital should be distributed. The distribution will amount to £1146.