SOUND POSITION

Waikato Times, Volume 125, Issue 20916, 22 September 1939, Page 9

SOUND POSITION

FREEZING COMPANY DIVIDEND OF SIX PER CENT COMPARISON OF KILLINGS (By Telegraph.—Special to Times) AUCKLAND, Friday “The profit of £21,136 8s 9d is lower than that of the previous year by approximately £2,000,” stated Mr H. E. Worsp, chairman of directors of the Auckland Farmers’ Freezing Company, Limited, in his address to the annual meeting of shareholders today. “With the amount brought forward, however, the total available is £24,493 13s lid.” “As mentioned in the report which accompanied the balance sheet, the payment of a dividend at the usual rate of 6 per cent which will absorb £15,316 18s -sd, is recommended, also , the transfer to general reserve of £5,200. A balance of £3,976 15s 6d will remain to be carried forward. “Balance sheets of 1932 to 1933 included an item on the liability side termed “Works Replacement Fund,” with a corresponding asset representing the investment of the same fund. A new lease of the land at King's Wharf having been completed, which assures tenancy till the year 2019, it is not necessary to continue this special provision. The investments have therefore been sold and the general reserve correspondingly increased. Transfer to General Reserve “Further small lots of shares have been sold to producing farmers during the year, the paid-up capital showing an increase of £6‘65. On the transfer of £5,200 previously mentioned, the general reserve will stand at £150,000. Bank overdraft has increased by nearly £IOO,OOO which is explained by the higher figure shown again buildings and plant. The other items shown on the balance sheet vary slightly from last year but call for no special comment. “As compared with last year killings of cattle increased by 13,000 head, and sheep by 38,000. Lambs killed were less by 84,000, pigs by 39,000 and bobby calves by 5,000. Butter received for the year amounted to 3,544,77'6 boxes —a drop from last year’s figure of 573,000 boxes, and from the figure of 1937, of 782,000 boxes. Cheese at 216,759 crates 6l lowed a drop of 12,000 crates. Farm Labour Difficulties “The causes which contributed to these decreases were a cold spring, very dry summer and difficulty in securing farm labour sufficiently willing and able to justify its employment, the result being reduction of herds by numerous farmers,” added Mr Worsp “Fruit receipts were 207, 1 boxes, neing 49,000 less than the previous year. "The increased number of cattle killed consisted principally of boner quality cows. Severe culling caused by shortage of feed was the main factor in the increase. The number of lambs available for export in the Auckland Province last season was heavily reduced as a result of the eczema scourge of early 1938, but it is anticipated that the coming season’s figures will show considerable recovery. The quality of the lambs was not up to our usual Auckland standard, the percentage of seconds being higher and the average weight lower, indications are that both in quality and weight, a satisfactory improvement will be experienced this season. The reduction in dairy produce which meant less skim milk for pig food, accounts for the drop in the number of pigs killed last season. Erection of Cold Stores “The erection of the new cold store on the eastern reclamation has progressed satisfactorily during the year. Although building operations will not be completed till early next year, it will be practicable to commence the freezing and storage of hotter there in November next. It is to be expected that difiicult storage conditions will he experienced during the war and that every foot of cold storage space will be required. It* is most fortunate, therefore, that when the decision to erect the building was made over two years ago, no time was lost in commencing and pushing forwanjj building operations.”