THE FROZEN MEAT COMPANY.

Auckland Star, Volume XVIII, Issue 204, 1 September 1887, Page 2

THE FROZEN MEAT COMPANY.

Address by the Cliairman

At the annual meeting of the Frozen Meat Company, partly reported in our last issue, the Chairman of Directors (Mr Bull), n moving the adoption of the report and balance-sheet, revjVwed the operations of the year, and explained the causes which had produced the heavy loss shown on the balance-sheet. He showed that the direct trading loss properly chargeable against this year was only £2,100, of which £600 arose on the shipment per Tongariro made in July, 1886. The foreign consignments of butter had contributed £1,500 to the loss. Alluding to the amount shown as written off the value of the Company's properties the Chairman said :" It is quite unnecessary for me to refer to the great depreciation in value of property which has taken place Within the past two years, and the Company .is, unfortunately, affected by reason of the large amount of its capital invested in buildings, reclamations, etc. To retain the former values would be simply to continue paying property tax on an amount greatly exceeding what could possibly be realised, and your directors consider the best course to adopt is to make the necessary reductions, and I shall subsequently move that power be taken in our articles of association to enable us to reduce oi» share capital to.a proportionate extent." He then proceeded: " I come now to the consideration ot 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, tirade 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 (Harrying 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 appliances and 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 detriment of the Company Thereareothercorisiderationsstrongly in favour of this system. Every effort we make towards fostering and developing the butter industry is of direct service to the Company by providing a substitute for the frozen meat business and a revenue for our freezing works in which we have so ; much capital invested. Neither is this revenue to the freezing, works levied at the expense of the producer, 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 the value of good butter and the proportion of inferior butter heretofore produced, a difference that has hitherto-been lost to the community. It is needless for me to enlarge upon the importance of this matter, Or to point out that a steady and reliable return from dairying operations will probably solve, a question of the highest importance to the cohntry, namely, the profitable settlement of the land. It is more than possible that in this direction good may come out of evil, and that the low prices which have led to the discontinuance of our frozen meat trade may be forcing us to seek employment for our freezing plant, stimulate and develop the dairying operations for which our moist and temperate climate seems fitted. Negotiations have been carried on with 7 Or 8 centres most favourably, placed for commencing operations. At some of these factories are already available, necessitating comparatively small outlay, but at. others the erection of buildings and plant will be necessary. At all of these centres guarantees of a minimum of 1,000 gallons per day are forthcoming, represents ing the milk.. of.. 3 .to 4,000 cows, the only difficulty being the provision of the capital required for..the. necessary plant and machinery, a difficulty r your directors hope to surmount. During the past year the butter branch has dealt with about 180 tons of butter,and has exported about 65 ton s. In the Acid and Manure Works, the depression in agricultural interests has, no doubt, been responsible for a slackness in sales, ft has been brought to the directors', notice that in many instances advantage has not been taken of the different kinds of manure produced at our Works to meet the requirementsof varying soils and circumstances. The services of Mr Lamb, a practical agriculturist of experience.have therefore been engaged to visit the agricultural districts and confer with farmers upon questions of soils, crops and manures suitable thereto. Good results are anticipated from Mr Lamb's efforts,and I may mention that the sales for July and August of the. current' year will amount to about £2,300, as against £840 for corresponding months in '86. The Company continue to receive the best reports as to the worth of their manures, some extracts from which may be seen in our daily advertisements. The sales for past year have nearly approached 1,100 tons, but all sales above this figure will return a far larger percentage of profits, as an output of three times the quantity could be made at a very slight increase of expense other than the' cost of raw material. Some considerable permanent improvements have been made and paid for out of current expenses, while it must be borne in mind that imported manures are free of all Customs dues and our industry is therefore entirely unpiotected. With, regard to the Waitara Works, as stated in this report it was with very great reluctance that the directors decided to close these work, as it must be apparent that the main earnings of the Company have Come1 therefrom. It has before been explained that the present price of stock, low as it is, will.not permit the entire animal to be tinned. It may be taken that in order to compete with American tinned meat, the preserving department must obtain its supply at somewhat under a Id per lb. It is a simple matter for calculation as to whether the average of prices ruling will allow meat to be tinned at that figure, unless a considerably higher price is obtained for some portion of the beast, viz., the prime joints. I do not ' refer to occasional low prices for small quantities of stock, but for a supply that may be reckoned on to keep our preserving department in steady work, say 150 to 360 beasts per week. Our experience is that such. a supply cannot be obtained at prices that will,. enable the entire beast to be tinned at the margin I have named, and the sale of the prime joints at an increased price is therefore a necessity, w-hile the heavy losses, wo have sustained hi endeavouring .to get these

prime joints out of the country : preclude further shipments until better prices rule in the .Home markets. During the past 12 months the following stock has been killed ab Waitara,' in round numbers :- Cattle, 5,500'; sheep, 8,000; pigs, 450; calves, 20- giving a total of 4,416,0001bs of meat, of which only 257,5001bs has been sold locally. The meat preserving will in future be carried on in Auckland, and although there will be some increase in cost of stock, yet there will be a large saving, consequent on the concentration of operations at the one establishment. Touching the Sydney Ice Company. I have little to add beyond what is stated in the report, except that we are since informed that the negotiations therein referred to have been successful. From the various reports of experts and others, there is little doubt that the failures having been owing, not to any fault in the principle of the patent, which has been highly commended and will be retained, but to inferiority of the iron pipes supplied from England. These were specified as the best steam quality, and we paid an engineer to inspect and pass them. They are now stated to be of inferior quality., unable to stand the required pressure, and the result has been constant leaks. I presume there should be a remedy against the contractor, bub whether it would pay to endeavour to recover IS doubtful. Under the box system thepressure on the pipes is divided and localised, and the danger of leaks reduced to a minimum. There is one other subject I may refer to, and that is the Auckland reclamation. It is probably a matter more or less understood,' as it was reported in the daily papers. An arrangement has been come to with tho Harbour Board, and the Company has unrestricted power to deal with the land. Although at present there is no demand for building sites, yet the position of this properby renders ibs ultimate value a matter of no uncertainty. Profit and loss Account. — Dr. : To Balance 30th June, 1886, £10,049 2s 6d ; wages and salaries, £4,679 16s 9d ; charges and expenses, £4,685 0s 4d ; interest and discount, £8,524 8s 4d; loss on consignments, £5,439 5s ; horses, £30 13s 9d ; imprest dividend account, £12 8s 7d ; boat, £10 ; butter department profit and loss, £539 2s 2d ; rates and taxes, £593 16s lid ; bad debts written off. £3,090 8s 2d ; Thames account .loss 12 months, £33 12s Id ; depreciation freehold property, £14,960; depreciation leasehold property, £19,575; depreciation 10 per cent, off machinery, #43 12s: Total, £72.966 6s 7d. Cr.: By freezing ice account, £3,700 4s 9d; freezing ice accounts (ice sales), £500 4s; cash sales, £274 0s 7d ; commission, £190 16s 2d; rent, £125; suspense, £57 10s lid; stock account, trading profit, £12,830 os9d; Waitara, profit 8 months, £1,763 3s 2d ; butter department, -J profit 12 months, £65 6s sd; Acid Works, | profit 12 months, £224 6s; bad debts recovered, £457 17s 3d ; balance, loss, £52,777 16s 7d : Total, £72,966 6s 7d. Waitara Balance Sheet.—To Auckland Head Office; £21,916 5s 3d; debts owing by Company, £694 3d ; balance—profit and loss, £1,763 3s 2d: Total, £24,373 9s Id. By building and plant, £16,990 2d ; cottage, £205 10s lOd ; cash in hand, £16 18s 4d ; stock on hand, £6,512 10s 8d ; debts owing to Company,£64B 9s Id: Total, £24,373 9s Id. Profit and Loss Account.—Eight months ending 30th June, 1887. Dr. : Insurance, £3 : farm, £382 15s 2d ; rents, £368 Is 9d ; rates and taxes, £35 4s 9d; charges and expenses, £1,280 lis 8d ; freights, £401 15s 8d ; interest and discount, £38 9s ; wages and salaries, £3,393 19s 4d; blown, tin account, £327 2s Id ; account adjustment, £33 Is Id ;■ balance profit, £1, 763 3s 2d ; total: £8,027 3s Bd. Cr. :by stock account—trading profit, £8,027 3s 8d : Total, £8,027 3s Bd. Butter Department Balance Sheet.— To debts owing by Company, £2,297 8s 5d ; interest suspense account, £42 19s 9d; balance profit and loss,£l3o 12s lOd : Total, £2,471 Is. By debts owing to Company, £603 19s 9d; stock on hand, £1,192 3s ; plant and machinery, £573 Is 6d ; office furniture, £4 8s 6d; cash in hand, £97 8s 3d: Total, £2,471 Is. Profit and Loss Account, Twelve Months ending 30th June, 1887.—Dr. : To charges and expenses, £835 5s 8d ; cartage, £324 5s 7d ; interest and discount, £430 7s 3d ; insurance, £45 Is lOd ; freezing charges, £497 7s Od ; office expenses, £133 17s 7d ; wages and salaries,£9B6 12s 8d; balance, profit, £130 12s lOd : Total, £3,383 10s sd. Cr :By Glanville and Ellyett, .dividend account, £539 2s 3d; N.Z.F.M. and S. Co. account, £539 2s 2d ; bad debts recovered, £1 lis 7d; stock account—trading profits, £2,303 14s 5d : Total, £3,383 10s sd. Acid Works Balance-sheet. —Liabilities:, To, N.Z.F.M..S. Company, Limited, capital, £7,137 5s 3d; Henry Symons, £1,802 10s sd; bills payable, £709 14s lid; debts owing by, Company, £4,038 2s 6d; interest suspense account, £11 19s Id ; balance, profit and. loss, £299 Is 4d:' Total,.;;. £13,998 13s ' 6d. Assets: By land and shed, £600; buildings, £3,768 2d; plant and machinery, £1;326 17s 4d ; stock on hand,£7,326 Is 3d ; debts owing to Company, £977 14s 9d: Total, £13,998 13s-6d.

Profit and Loss Account.—Twelve months ending 30th June, 1887.. Dr. : To interest and discount, £753 Is 9d ; wages and salaries, £1,717 16s ; trade expenses, £1,178 12s lOd ; freight and railway charges, £684 10s lid ; printing and advertising, £10316s Id ; insurance, £118 14s 7d ; balance profit, £299 Is 4d : Total, £4,855 13s 6d. Cr. :By balance 30th June, 1886, £145 17s Id; cash sales, 4s 6d ; stock account—trading profit, £4,709 lis lid : Total, £4,855 13s odi

Thames Agency Balance-sheet. ~ TO Auckland Head Offices, £4,845 13s sd; debts owing by Company, £467 18s lOd; total £5,313 13s 3d. Cr. : By land and buildings, £3,068 10s; stock on hand, £27617s lOd"; cash in hand, £234 10s 4d - T . debts owing to Company, £1,700 2s; balance, profit and loss, £33 12s Id,: Total, £5,313 12s 3d.

Profit and Loss Account. — Twelve months ending 30th June,lßß7. Dr.: To Auckland Head Office P. and L. account, £2,095 13s 5d ; freights,- £173 9s 3d ; interest and discounts, £7 13s Id ; rent, £203 5s 6d ; charges. and expenses, £310 5s 9d ; wages and salaries„£4l3os6d ; horses; &c., written off, £96 ; Te Aroha Yards, written off, £14019s Id : T0ta1,£3,440 6s 7d. Cr.: By balance 30th June, 1886, £2,095 13s 5d ; advertising, 6s 3d; commissions, £613 5s ; fees; £87 7s 6d ; stock account—trading profits, £610 2s 4d ; balance, loss, £33 12s id : Total, £3,440 6s 7d.