CANTERBURY FROZEN MEAT COMPANY.

Press, Volume LVI, Issue 10539, 28 December 1899, Page 3

CANTERBURY FROZEN MEAT COMPANY.

ANNUAL MEETING. The annual meeting of the "shareholders of the Canterbury Frozen Meat Company was held yesterday afternoon at the C*"bamber ! of Commerce. . " . :".| The chair was occupied by Mr W. Ghiystall, one of the directors, in the absence of Mr J. Grigg, the cliainn&rt of the Company. Apologies were received for the absence , of Messrs Grigg, Garforth and John Deans. I The annual report, which was taken as read, was as follows:—"The Directors are again pleased to be able to report that, although a serious interruption in one department, of the Company's business occurred early in the year owing to the destruction, of the ferUmangery at Belfast by fire, the year's operations show a satisfactory and encouraging result. The profit and loss account shows a net profit of £4,656 17s Bd, after writing £5600 off the works for wear and tear, depreciation and loss by fire. Of the net profit £2106 6s 9d was distributed in June last by way of interim dividend at the rate of 4 "per cent. The Directors now recommend the payment of a further 4 per cent, thus making 8 per cent, for the year, which absorbs £4356 6s 9d, and leaves £280 10s lid to carry forward to new account. The totals of stock dealt with during the year are:—364,668* sheep, 338,434 lambs, 730 cattle—total, 703,832, showing an increase of 121,060 head for freezing purposes on the figures of.last year, and a decrease of 70,476 sheep boiled down and preserved. The Fairfield Works were put in operation on 16th March, and have contributed 158,953 head to the quantity dealt with till the end of the financial year. The Directors took the opportunity during the early part of the year of disposing of the remaining 500 authorised and unissued shares. The premium obtained by their sale has been added to the reserve fund. Early in March the fellmongery at Belfast was destroyed by fire; the immediate loss at book value was about covered by insurance, but there had been a considerable subsequent diminution of profit, occasioned by loss of ousiness in that department, as well as by having to work unoer disadvantageous circumstances in temporary premises. The new fellmongery, which is now completed, is built of brick, and, as far as possible, fireproof. All the arrangement- are of the most modern type, and will yield a great saving in working expenses. The Fairfield works are continuing to incmase in popularity, and very successful work is being performed there." T_e Chairman said—The Directors are especially pleased on this occasion to be able to present to you so satisfactory a balancesheet, because it embraces the first results of the important extension of the Company's business at Fairboh. The results of the operations of the new factory have entirely justified the anticipation of the Directors. For the eight months ending 30th November the number of sheep and lambs put through both faobcrries have exceeded the total work done by the Company for the same period in 1898,' by about 190,000. And in connection with this it must be remembered that the Canterbury flocks have still been below the normal total number which the district can maintain. The flocks have not even now recovered from the adverse effects of the two successive dry seasons. The new factory at Fairton has been working for about eight months, and in point of efficiency and economy the machinery and general appointments are all that could be desired. These works are receiving large and steady support from the sheepfarmers over a very wide radius. The suitableness and the increasing capacity of the lands in the Ashburton county for raising and fattening sheep show that an efficient freezing factory in that centre was an absolute necessity. On our present paid up capital we show a larger percentage of profit than hitherto, but having now a considerably increased amount of property liable to wear and tear, we must not forget the necessity for writing off. Last year the shareholders received a. dividend of 9 per cent. The Directors, as you will see, now propose to divide only 8 per cent. Under the circumstances I feel sure you will readily concur in this conclusion. The directors have first to take into consideration the fact of the fire which destroyed the fellmongery at Belfast. Though its written down book value was fully covered by insurance, the building and plant had cost more, and were still worth more to the Company. On the other hand, the Fairton factory had been at work only seven months, and six of the seven were at the winter rate, which leaves comparatively little margin. Of the considerable profit, notwithstanding, we propose to write £5500 off the cost of the couipany"'S works. The nature of the business and the constant need for thoroughly up-to-date machinery and plant oall for liberal provision in the way of writing down. And after all, the question arises, whether it is prudent under any circumstances to pay more than an 8 per cent, dividend. This is a high return in proportion to the market value of money; and high dividends have not only a tendency to invite competition, but to discourage, if not to kill, the goose which lays the golden eggs. The interests of the shareholders in this company, I believe, will be best conserved by their being content with a fair dividend, based upon working charges, which afford every reasonable encouragement to farmers and shipping clients. The stability and continued success of the -business lies very much in mode- j rate charges to suppliers of stock. And j here I might remind shipping clients that maximum economy can only be secured by Liberally supporting the company's factories. Turning to the question of the carriage of our meat to London, which is a very important part of the business, I am pleased to be able to report considerable improvement. During the past year there have been few cases of damage to meat in transit. The shipping companies appear to be at last waking up to the conviction that if they don't look after their business they are not j likely to retain it. A very satisfactory fea- | ture in the outlook is the great rise in merino wool. One main result of this will doubtless be that on many stations the breeding of merino sheep will be promoted, and a larger supply of "merino ewes be made available for producing the class of crossbred sheep most suitable for freezing. Indeed, a larger supply of merino ewes is absolutely necessary for raising the flocks of suitable shipping crossbreds to the normal level. It is also satisfactory that while shareholders have had a good year, the shipping clients of the company have afso done fairly well. Prices in London have fluctuated considerably, but persons who have been shipping regularly all through the year have no doubt realised a good average profit. The question of the efficient disposal of the meat in London seems as far as ever from practical solution. In reports of successive returning colonists the one thing that always stands out is that the price returned to the New Zealand farmer is in general much too small in proportion to the English retail price. The case seems to be that the meat salesmen are a comparatively small, compact body, who know their business thoroughly, and hold effectively certain keys to the distributing trada *On the other hand, the consignees in general present a large number of isolated units without power of cohesion or concerted effort. A good many of these consignees have, moreover, other and larger fish to fry. It js, therefore, no wonder that the meat salesmen, entrenched as they are, are liable to defeat the feeble and intermittent efforts of consignees to improve the market. It seems certain that no great reform can take place until the number of consignees is not only reduced, but replaced by men whoSe sole business is to sell Canterbury mutton. Part of the business of this company has always been to receive meat under.* advances for sale in the London market. If a sufficient and steady supply of meat'were thus placed in the company's hands it would be prepared to send to London a man whose sole work would be to improve and push the sale of meat. By this means I have no doubt ■.*__•». Canterbury farmer would obtain a shar /* i*-"" inordinately large profit which .-" got. into the pockets of the middlemen The Canterbury fanners have ha "-)->•vt of their meat an irt'ele of special 'alue, which the London .jmarket cannot now *ell do vit_rrat In no other part of the w.»rld—not *ven< in other n___i el New ______ —can. mut___ and lamb

of quite equal quality be produced—in any event not yet. It is therefore highly desirable that something like effective combination should be tried in order to secure the full market value of our meat. We at one time thought that something in this direction could be done by inviting farmers to merge their respective Jots into one common shipment * but this did not find general favour. It was alleged that the process would have been to the disadvantage of those who supplied the best sheep. We hear statements made occasionally to the effect that the standard of quality is not maintained by this Company, and that its grading is faulty. There is absolutely no ground - for saying that our standard is not maintained. The rules laid down for the passing of the live stock at the Company's works are as rigidly adhered to as they ever were. This Company does not profess to grade unless clients so desire. The best answer to our critics (and some of them are clearly not friendly) is that there is such a large demand to buy here meat frozen by us and also that we do such a large business with c.i.f* clients. These clients are quite satisfied with our standard as well as with our grading. Moreover, and what is still more significant, there is the fact that our meat can be sold so readily c.i.f. without the inclusion of any arbitration clause in the contract. We understand that 04.f. sales cannot be made in this way of the meat of other New Zealand factories. It would be very easy for us, if our farmers so desired, to pick out the cream of the carcases that have passed 1 our prime standard, and advertise the sale of such in London at id to id per lb above the price of "prime Canterbury," and that our competitors don't know their business. The case of a given number of carcases of prime Canterbury mutton, I suppose, does not differ from the case of a given number of prime strawberries. Out of any basket of such you could always pick out half a dozen exhibiting points of excellence above all the others. It is the business of the wise strawberry? man. to get as much money as he can for, the whole basket. "It is the business also, I take it, of the Canterbury farmer to obtain the best result for his whole draft of prime sheep, which has passed our standard. Our clients who have, during the last eighteen years, been our largest and most regular shippers, and who ought by this time to thoroughly know their business, are quite satisfied with our factory methodsA quite unwarrantable use has been mads by another Company of certain incorrect statements, about our standard and grading, which appeared recently ir» the Ghr_tcburc_ newspapers, but as the directors will probably adopt some special action in regard to that matter, I need not allude to it further here. In regard to our Belfast factory, I may add that we have built a new fellmongery, which is probably the most complete and up-to-date ctf anything of the kind in the colony. Respecting charges to shipping clients, I might also add that the directors j will continue the same policy as heretofore, and that consistently with req__eme_ts of dividend and writing down property, rebates ! or reduction- of charges will be made. The prospects for the Company's business in che immediate future are excellent. I now move the adoption of ._he report and balance sheet. If any shareholder should have any question to ask I shall be pleased to endeavour to answer him. I may say that the following is a summary of freezing sheep and lambs at Belfast, year ending 30th November, 1899: — Received far freezing, 564,636 head; rejected alive, 16,788 head; rejected dead, 4702 head; frozen, first-class, 512,693 head; frozen, second-class, 20,453 head; total, 554,636 head. Of the 512,693 frozen firstclass, 350,381 head were graded;. 162,312 head were not graded; total, 512,693 head. Mr James Gough seconded the motion. Mr James Trent advocated the carrying out in connectioni with the Company of a more extended system of potting meat and making meat essences. He also urged that agents should be appointed for the sale t»f manures. Mr Waymouth pointed out that the Company sold their manures without the expense of advertising. As to boiling down, tho

directors followed out the policy.they had pursued in connection with freezing, and bought nothing. They had put through some 50,000 potters during two years, and had disposed of nil the- meat. It vi-ould not pay here to put in a meat extract plant, and as regarded the purchase of sheep for potting last year, they would not have been able to get them, as the country was understocked. Mr J. C.'.N. Grigg pointed out that the return proposed by tho directors would mean a large increase in their freezing chest*. This was the business which should be cultivated,if the Company was to be enft-led w pay the 8 per cent, dividend to Mr Trent and the other investing shareholders. Mr J. B. Howson thought tluit the Directors had taken a wise course by nob going into the experimental system of buying, and he trusted the Directors would continue to carry ouit this course. Mr Hay don suggested that the Directors should ship to two or three agents in London, and grade all the meat. He thought their farmer, clients would be very glad if the Company shipped to two or three agents. He also was very strongly in favour of the Directors insisting on. all sheep coming into the factory being graded. The Chairman said they graded for all their clients who desired it done, and about two-thirds of the whole of the sheep passing through their factory were graded. They must remember that they had to deal with very large fanner shippers, who had sent their sheep for a number of years without grading, and were perfectly contented With the results. As to the agents, the Company selected -the beet. What the Company had to do was not to sell a small proportion at a high price, but to do the best they oould for the whole shipment. The motion for the adoption of the report {Rid balance-sheet was than put and agreed *Q. Messrs J. T. IVxd and W. Chrystall were re-elected as directors of the Company.. Mr W.. H. E. Wanklyn was re-elected as auditor of.the Company. Mr Stave_y'moved—'"Thai a hearty vote of -(hanks be given, to the Directors for their very sathrf aotory conduct of the affairs of the Company during the year." In* moving it Mr Staveley expressed the regret felt by him and the shareholders at the absence of Mr John Grigg, the chairman, who had so ably presided at the meetings of the Company since its inception. Mr J. C. Maddfeon seconded the motion, which was agreed to. A "(hearty vote of thanks to the Secretary and staff was unanimously carried, the Chairman expressing the thanks of the Directors to the Secretary and Chief Engineer for their assistance at the new works at Fairfield. , The meeting then tenmnated.