FROZEN MEAT COMPANY'S MEETING.

Auckland Star, Volume XVIII, Issue 203, 31 August 1887, Page 8

FROZEN MEAT COMPANY'S MEETING.

Loss of £8,000.

The annual general meeting of the New Zealand Frozen Meat and Storage Company (Limited), took place to-day, at the offices of the Company, Mr Arthur Bull, Chairman of Directors, occupying the chair, and about 30 shareholders being present.

On tho motion of Mr G. P. Pierce, the report and balance-sheet (printed copies of which were distributed) were taken as read. They were as follows : —• Directors' Report.—The dierctors beg to submit to the Shareholders the accounts of the Company for the period ending 30th June, 1887, and regret that the balancesheet shows a loss on the trading operations for the year of £8,193 14s Id, which includes bad debts, £3,090 8s 2d, and the sum of £743 12s written off for depreciation on machinery and plant. The directors have further carrefully considered the values ab which the various properties of the Company stand in their books, which mainly represent the cost price, and they have decided thab the valuations should be reduced by the sum of £34,535.

Butter Business. —Last year's accounts showed a profit of £639 2s 2d to the Company, bub this was taking at a valuation of current prices considerable stocks held in Sydney. A heavy loss occurred trpon realisation of these stocks, but subsequent alterations have resulted in recouping these losses, leaving a credit of £130 12s lOd in the profit and loss account of this department. Acid and Manure Department.—Lasb year's working of bhis branch showed a neb profit of £145 17s Id. Sales' for the past twelve months have necessarily been re stricted by the continued depression of agricultural interests, but the directors have no reason to be dissatisfied with the progress of this department. The profit on the operations for the past twelve months amounts to £299 Is 4d.

Waitara Works.—The remarks of last year's report as to the depression in the value of preserved meats and tallow apply with equal force to the trade of the past twelve months. It should be borne in mind that the original object of the establishment of the works was to enable the Company to provide a steady export of frozen meat in the form of prime joints of both beef and mutton, the prices of which on the Home markets showed a very favourable margin in connection with the tinning industry. The heavy fall and continued low prices of frozen meats on the Home market has entirely negatived these anticipations, and prevented continued shipments of frozen meat, which resulted in heavy loss to the Company. The Directors are unable to discern any near prospect of such a recovery in prices as to warrant further shipments that would promise a profitable working of both the Waitara and Auckland establishments; and have therefore reluctantly come to the conclusion that the Waitara Works must be closed pending a recovery in prices, and the business of the Company concentrated at Auckland, whereby a large saving in general expenses will be effected.

Sydney Ice Company. - Your directors regret that the favourable anticipations warranted by the statement of the manager of this company, printed in last year's report, have failed to be realised, the machinery having entirely broken down. Upon the first report of this state of affairs, your directors were disposed to favour the winding up of the company, and tho writing off the ascertained loss. Subsequent investigations and reports from experts, and the result of trials of the manufacture of ice in boxes, as referred to in last year's report, satisfied your directors that they would not be justified in abandoning the capital invested in these works. Negotiations are now in progress by which, if successful, a further trial will be made during the coming season upon the "box system," and a satisfactory result is anticipated. The particulars of the accounts of the different branches of the business were submitted.

Balance Sheet.—The general balance sheet for the year was as follows : —Liabilities : To capital issued, 20,363 shares at £5 £101,815 0s Od ; Less unpaid calls £352 10s Od ; capital paid up £101,462 10 Od : bills payable £2,058 3s Id ; Accounts owing by Company £66,745 3s 4d ; Interest suspense account £1,271 0s lid. Total £171,536 17s 4d. Assets :Ay properties, "reeheld £27,451 5s 9d; Leasehold £56,701 2s Id ; Machinery and plant £6,727 Is sd; Furniture £663 15s Od ; Bills receivable £243 12s 9d; Cash in hand £0 16s lid; Stock on hand £17,83819s 2d ; Debts owing to Company £9,132 7s 8d ; Balance profit and loss £52,777 16s 7d. Total £171,536 14s 7d.

The Chairman in moving the adoption of the report and balance-sheet, reviewed the operations of the year, and explained the causes which had produced the heavy loss shown on the balance-sheet. After referring to the low price of frozen meat and alluding to the losses incurred in the export department he said: — as under this system the price proposed to be paid for the milk is equal to B^d per lb for butter delivered at our Works, a price exceeding the average heretofore obtained by the producer for good butter. Our gain will come out of the difference between " I come now to the consideration of our butter business, andforvariousreasons which I shall refer to, I shall hope to be excused for going into this subject at some length. I have already referred to the losses we have sustained in our export business. During the past year more attention has been paid to the local trade and we have now properly fitted vans delivering daily to all retail dealers while the advantages we possess by reason of our cold air facilities will become more apparent as summer approaches. Some exception has been taken to our. extension of business in this direction, but it appears unreasonable that the Company should be expected to restrict itself to the export business, which, although undoubtedly more beneficial to the community is by far the most hazardous. Your directors have had under consideration a new and greatly improved method of carrying on this business, by the establishment of creameries at various centres the milk being taken from farmers at fixed rates and the cream being forwarded here to be made into butter. The advantages of this system are manifold. Ist The butter will be made at a uniform temperature with all the latest appliancesand we shall thus obtain butter of the best quality and even grade. 2. Once made we have the cold'air available to prevent deterioration while under this system, we shall eventually get rid of the troublesome questions with butter-makers as to the quality of their butter, a matter which has, I think, been utilised by interested parties to the detrement of the Company.

The Chairman proceeded to review the balance-sheet of the other departments at considerable length. An irregular and informal discussion ensued. Sir F. Whitaker pointed out that the speakers had not been in order and then seconded the motion. He endorsed the Chairmans remarks and said that he had dealt so exhaustively with the past year's operations that there was really nothing left to say. A discussion of a desultory character followed, Mr Keesing, Mr Gibbons and Dr. Purchas being the principal speakers. Some shareholders complained that dealers in butter, as compared with the grocers,

did not receive fair treatment from the Company, and others asserted that the Company's unpopularity in the country districts seriously crippled its success. _ The motion was then put and carried. Mr Alfred Buckland was re-elected a director and the directors were empowered to till up the other vacancy caused by the death of Mr C. H, Sbreeb. Mr J. Milne was re-appomted auditor at a remuneration of £35. It was decided to expunge from the articles of Association clause 94 which tenders ib necessary to show in detail upon the balance-sheet the profits made in each department of the Cos. business which was considered to be an imprudent proceeding, moreover, the directors were authorised to insert in the articles ot Association the usual clause empowering them to reduce the capital of the Company. ~,.-„ Mr A. Buckland spoke highly of the time which Mr Bull devoted to the duties of his office, and proposed that a remuneration of £150 should be voted to him for the ensuing year. The other directors wanted nothing, bnt they thought the Chairman should be Mr L. D. Nathan seconded. A shareholder suggested that 150 guineas should be voted to the directors to be divided amongst themselves or given to the Chairman, as they deemed best. Tho suggestion was accepted by Mr Buckland and confirmed by the vote of the meeting. ~ A vote of thanks was passed to the directors and the meeting then dissolved.