NORTH CANTERBURY BACON CURING COMPANY.

Press, Volume L, Issue 8484, 16 May 1893, Page 6

NORTH CANTERBURY BACON CURING COMPANY.

The third annual general meeting of shareholders of the iNoiwu Canterbury Bacon Curing Company was held at Kaugiora on Monday at 2 p.m. Tue Directors present were Messrs D. Graham (Chairman), J. Dobson, J. Power, F. Becker, M. Duucan, J. Lilly. Mr G. H. N. Helmore, solicitor, was also present. There were about twenty other shareholders in attendance.

Air J. B. Sheath, the Secretary, read the balance-sheet and report. The balancesheet showed receipts from all sources £6650 7s Bd, including sales of lard and offal £207 0s 4d, curing £61 10s sd, bacon £6102 7a 7d, calls ou shares £84 15s 6d, balance at Bunk, £1174 18s 6d. Tbe expenditure iuciuded balauce from March, J. 892, £2585 11s 6J, pork bought £2530 2s 2d, Secretary £100, Bank interest and exchange £3b7 15s Id, trade expenses £562 3s 4d, waged £216135. Capital account, 1738 shares at £1, £1753 ; calls paid up, £1834 18s ; unpaid, £19117s 6d ; uncalled, £651 14s 6d ; total, £1738; liabilities to suudry creditors, £69 14s sd, banK^ overdraft and cheques unpreseuled, £1174 15s 61, balance to Cv. £262 9s 6d ; total, £1526 17s od. Assets —By calls unpaid £19i 17s 6d, uucalled £651 14s 6d, plant and tools £14, building £100, office luruiture £15, sundry debtors £524 9s 8.1, cash in hand £3 16=s 9d, total £1626 17s sd. The Directors iv submitting the report regretted to announce au unsuccessful year. They were in hope 3at last meeting that there would have been a rise iv price, but owing to the severe competition iv buying and selling the business drifted into not only a nonpayiug condition, but a losing one. They had to sell bacon duriug the year at a less price than previously, although the pork cost a higher price than the preceding year, iv laut the price of pigs weui so far above their judgment thai, tney stopped buying, and the prices which bacon was afterwards selling at showed > their wisdom for had they bought largely they would now be unable to meet their liabilities. The losses were attributable chieily to three sources, (1) the severe competition in selliug stock,.which was a heavy loss and unavoidable; (2) to insufficient capital, which had necessitated having to pay to the Bank no less a sum than £861 18a Id; aud (3) haviug, like others, iucurred losses on consignments and bad debts. In face of the position, the Directors had not considered it advisable to commence curing this season, and hardly saw how it could be begun, as then: capital was gone, and the only source of credit was the guarantee of certain private persons, who, although they Happened to be Directors, had outside their position as Directors giveu Uiair personal guarantee to the Bank. If it had not been for this guarantee, the Company could not have operated so largely as it did the first year, and would not, have carried on busiu«'as for the labt two years. The Chairman said that three years ago, in starting, the promoters and Directors had not the slightest idea that their difficulties would be so great. In spite of unremitting attention they found tuat the impossible had been attempted. The capital, if all called up, was insufficient, and only half of it was called up, which necessitated the borrowing of a large sum from the Bank. If they could have realised the moderate prices they based their calculations upon they would have been in a prosperous condition to-day, even if £d per lb would have secured that position. During the thrtie years the Company had purchased over 6000 pigs, and. though the iinaucial operations nad not been (successful those shareholders who were the producers of pigs were greatly aud directly beuefited the first year and indirectly so the two following years. He moved the adoption of the report and balance-sheet.

Mr J. Dobson, ia seconding the motion, pointed out that the Company had been the victim in a keen competition with other local factories who, directly rates were fixed either for buying or seihng, had somehow gone to the weather side of this Company. Bather than sell at a loss the Directors had to keep its meat in stock until with overdraft and losses, an amount of £1966 Od 6d had accumulated. Although these losses had been sustained yet the shareholders of the Company had not been losers, for in his case he received more for sale of pigs ihiin paid the whole of his shares. He pointed out that a great loss eusued through sales by the Farmers , Co-operative Association. The loss here was computed at £305 —the meat realisiug half of what was expected. There was only a verbal agreement with the Company, and nothing was received from them.

In reply to questions by Mr G. Luxton,

The Chairman said the value of the consignment to the Farmers' Co-operative Company was £1200, and the Directors had a verbal agreement that it should be sold above 6£d per lb, and that the charges on it would be, if anything, a shade uuder 2J per cent.

Mr LtrXTOX said he had seen the Farmers' Co-operative Association's books on this point, and assured the meeting that the bacon was sold by the Company at prices from s£d to 8d per lb.

A rather warm discussion on the question of these accounts, and the sales of some of the bacon in Sydney, took place. The Secretary produced the account sales of the Farmers' Co-operative Association, showing that the neo prices were less than stated by Mr Luxtpn, and that the Bacou Company was charged 2£ per cent, for commission and 2£ per cent, for brokerage. (Laughter.) The Chairman said the Manager of the Farmers' Co-operative Association said his Company could sell all this Company produced at full market rates. On the laith of this the bacon was sent in. It was stored by the Co-operative Association, until their warehouse was full, and until the season waa over and other Companies hart sold their stocks, when this Company found its bacon was left on hand unsold.

Mr Luxtox wished the meeting to be adjourned, to enable an enquiry to be held inio this matter.

Mr Con way and Mr Skevington defended the Co-operative Association.

The motiou for the adoption of the report and balance-sheet was then put and carried, only one in the room dissenting. Mr Dobson (by permission) explained that the losses of the Company were summarised in bad debts, £154; losses, £447; discounts £504, Bank overdraft £861, total £1966. To this might be added plant, tools, and buildings £351. The cost of making bacon was slightly under Id per lb, and that was not large, since the Belfast Company charged |d per lb for its curing without cloths, &c. He was certainly surprised at the large loss for discounts, and the loss in weight of meat when stored was in some instances equal to one-half. ' : ' ■

Messrs D. Dick, J. Lilly, and M. Duncan were re-elected as Directors, and Messrs J. B. Wilson and T. Ross were elected Auditors.

A special general meeting was then held to consider tae question of winding up the Company, Mr Geo. Graham in the chair.

Mr J. Dobson moved— ** That the Company be voluntarily wound up." He said, however, that he was in favour of the Company carrying on. He warned them that if the Company closed the farmers of the district would be at the. mercy of those who might purchase pigs, as was the case three years ago.

Sir XV. Sevoxb seconded the motion, which, after some discussion, was agreed to without opposition. Oα the motion of Mr Dobson, seconded by Jlr W. Sevoxe, it was resolved that the Directors be requested to at once sell the buildings and tools, it being pointed out that in nine days the lease would expire and the buildings most remain. Mr Marshall moved and Mr Skevington seconded a vote of thanks to the Chairman and Directors, which was unanimously agreed to. The Chairman said he was glad to receive that vote, and thanked the meeting for its approval of the conduct of the Directors after the explanation given.