DAMAGED MEAT

Press, Volume LVI, Issue 10263, 4 February 1899, Page 8

DAMAGED MEAT

It is very much to be regretted that after years of experience there still continues to be a quantity of meat landed by certain steamers in bad condition. This was so marked during the year that several of the Home agents, pointedly referred to the marked difference in the condition in which the cargoes of meat from steamers of certain lines were landed. It is no easy task to keep the shipping companies up to the mark and obtain tonnage guaranteed to carry mc frozen meat in proper condition. But we feel that our duty to our constituents' and the trade as a whole requires that the most rigorous inspection must be complied with, and the shipping companies compelled to provide and maintain ships for carrying frozen meat in thorough order. lam pleased to say that the two Canterbury companies are acting in full accord in this matter, and are working together in insisting on the shipping companies fulfilling their contracts to provide efficient and satisfactory steamers. We invite the shipping companies to inspect our meat at the works, and take nothing on board but what is properly frozen when tendered alongside, and we are not asking too much when we demand that all steamers carrying our meat should land it in sound condition. In connection with this question of damaged meat we know that the "means to do ill deeds makes ill deeds done." The ships landing some meat in bad condition necessitates honest importers taking precautions to protect their shipments, but also unfortunately nas suggested to the unscrupulous the chance of making money out of the insurance companies. The manner in which the damaged meat is examined and assessed by the so-called surveyors for the insurance companies has become a public scandal. The insurance companies in permitting themselves to be robbed can fairly be charged with a breach of trust. It is to be honed that the insurance companies will do something to protect themselves and the public, otherwise I fear the insurance of frozen meat through the present companies will become a thing of the past. To get back to the balance-sheet. There is really no other item besides the increase of capital for the extension of tne works calling for any special comment. You will notice that all the figures show an improvement, and that the amount of consignments is less than last year. That is owing to season closing earlier, and consequent earlier realisations. The profit and loss account must be considered eminently satisfactory, especially when you bear in mind tliat we were following a "falling market in mutton, tallow and wool, so that tne year could not be characterised as a lucky one. There were no "windfalls"; the profits earned are,simply those made by careful management. After making ample provision for the future, and taking the valuations at the low points reached at tho end of the year (since then the markets have gone up) the total net balance is £17,307 2s 6d, and should you authorise the payment of the dividend recommended the balance to carry forward will be £11,187 3s Id. The office which the Company opened in London is proving of the greatest service. It is bringing us into closer touch with the agents and buyers, and enables us <to gauge better the requirements of the trade, while on the other hand we are kept better posted up and advised of the condition of business* V> are also pleased to note that having our own representative on the spot is largely appreciated by the farmers and consignors of meat. The Company's business is a steady and growing one, and the.connection which the Company has formed is very valuable. The trade, 'both at Home and in the colonial markets, has been extended, and every year the Company's brands are in increasing demand and favour. In the directors' report there is the recommendation that the capital of the Company should be increased to £150,000 by the issue of an additionalssooo ska_e„ You have power under article No. 41 to authorise the increase of capital in general meeting. I may say that, as the balance-sheet discloses, the finances of the Company are thoroughly satisfactory. The t'me has long gone past since your directors had any necessity to trouble about finance; they have been.able to carry on the business of the Company with ease. The business of the Company, however, takes such strides, and the necessity for expansion comes so suddenly that in view of the present shares being all subscribed, it is advisable to have a further issue m the directors' hands for disposal. The shareholders of the Company only meet once a year, and we consider that it is advisable to embrace this opportunity to authorise the addition of this extra strength. There are several and manifest advantages to be gained by this means, especially as a large uncalled capital will place in your directors' hands the power to finance on the very best possible terms. I may say that a larce number of applications for shares reached us After the previous issue had been subscribed, and we have since had applications for something like half the issue now proposed. It is satisfactory to know that present shareholders desire to increase their holdings, and that we have numerous applications from farmers. It is not proposed to keep the list open for any length of time, bat to allot only just sufficient shares as there is immediate demand for, and, if necessary, withhold any balance for another year. The directors, in asking a premium of 10s on shares paid-up to the extent of £3, consider that they are asking no more than the intrinsic value of the shares, and have also borne in mind the right of the present shareholders to have the market price protected. You will require to elect a director in the place of Mr A. H. Turnbull, who retires by rotation, but offers himself for re-election; also an auditor. Mr Gundry again seeks re-ekction. It may as well be known thSl the Auditor is required to be in the office not less than three days every week, and that the audit we require is a most searching one. You will be asked to vote a reasonable remuneration to the directors. The directors not only meet once a week, but every day some portion of their time is more or less taken up with the Company's business.

Mr R. M. Macdonald seconded the motion. He said he thought that they could fairly congratulate themselves on the very satisfactory figures contained in the report and balance-sheet. It seemed to him that the proposal to in-craa_> their capital was a wise step and well thought out by the direotors. The business was growing in every direction, and ample capital was necessary. It must be obvious to everybody what the increase of capital had already done, as seen by their independent financial position. It gave him great pleasure to read that side of the sheet as compared with sheets of past days.

Mr E. G. Staveley said the remarks which the Chairman had made on the export of frozen lambs was a striking commentary on the proposition mad?, and warmly supported in some quarters, to restrict the trade. From the remarks of the Chairman, it was evidently a wise conclusion that the Conference came to, that no restriction should be placed, on the trade.

The motion was carried unan:m;usly. Mr A. H. Turnbull moved—"That the capital of the company be increased by tne issue of 5000 new shares of £10 each, the capital to be raised by the creation of such new shares to be cooaidsrsd part of the ori-

ginal capital, and the terms and conditions upon which such new shares may be issued being left in all respects to the discretion of the directors, provided that no such shares be issued except at a premium of not less than 10s per share." The directors had given the motion full consideration, and had studied the question, and they were satisfied it was in accordance with the best interests of the Company. It was proposed to issue these new shares as it was considered desirable, and as a suitable field for investment offered. It would be well to intimate that the question of the Company's busrness should not be looked at with a restricted vision, and that the directors considered that they were studying the interests of the shareholders in proposing to operate beyond the present boundaries. He felt that they should operate as widely as possible in the interests of the New Zealand shareholders and of the meat trade. The investment of the increased capital would rest with the directors, and he hoped that the results of the Company's operations in the past were such as to warrant the shareholders in having confidence in the Board that they would not invest the capital injudiciously, and that it would be profitable alike v to tie shareholders and the Company. The Hon. J. T. Peacock seconded the motion. He endorsed the remarks of the Chairman, and said there was nothing like being in a position to meet even* emergency. The motion was carried unanimously. Mr A. H. Turnbull was re-elected a director, and Mr W.H. Uundry auditor, without opposition. Mr E. G. Staveley moved—"That in pursuance of article 73 "the remuneration of the directors be fixed at £500 a year, until otherwise ordered b*r resolution of the Company." They all recognised, he said, that they were served by a very energetic body of men, giving c'.ose attention to the business the results of which must be satisfactory to everybody. He was quite sure the proposals they had recently seen with regard to the opening up of retail shops in the"old Country must be a benefit not only to the Company in particular, but to the frozen meat trade of New Zealand as a whole. Mr J. A. Randall seconded the motion, which was carried.

On the motion of Mr Weddel, a vote of thanks was unanimously accorded to the managing director, the" directors, and tne staff, and the proceedings closed.*