LCANTERBURY FROZEN MEAT COMPANY.

Press, Volume LXIV, Issue 13008, 9 January 1908, Page 5

LCANTERBURY FROZEN MEAT COMPANY.

f —-* — ANNUAL MEETING OF SHAREHOLDERS.

Tho annual meeting of the Canterbury Frozen Meat held at Lhe Chamber of Commerce yesterday afternoon, when Sir George Clifford, chairman of directorSj presided. DIRECTORS' REPORT. Th© directors' annual report stated that the net profit for tho year was £20,550 6s, and that sum, after adding the amount carried forward from last year and deducting the interim dividend paid, and, writing £5000 off the works account, left £15,728 7s lOd, which the directors proposed should be dealt with as follows: —To payment of a further 3 per cent, on the preference shares (making 6 per cent, for the year) £2250; to payment of a further 4 per cent, on the ordinary shares (making 8 per cent, for the year), £4349 2s; to transfer to Occident insurance fund account, raising this account to £2000, £006 I6s' 4*l; to transfer to reserve fund account, £8000: to carry forward, £572 9s 6d; total, £10.728 7s 10d. The quantities of stock dealt with at the Company's works were:—At Belfast, 613,970 head; at Fairfield, 373.306 head; at Pareora, 282,073 head: total, 1,169.349 head; being an increase of 112,013 over the figures of last year. THE BALANCE SHEET. The balance 6hoet showed a balance of £223,012 16s 7d of assets over liabilities, tlie property of th© company being valued at £327,554 12s sd, and tho liabilities totalling £104,041 15s lOd. The profit and loss statement ehowed that the receiote for the year hid amounted to £40.963 0s 3d, made up of £6747 3s lOd. last year's balance, £34,212 13a lid, balance of freezing, etc., accounts, after deducting wages_ and £3 2s 6d. transfer fee*. The.-ex-peuditure hid been £25,234 12s od. which included £5575 Os 6d general expenses, £5911 Is interest end insurances, £2149 8s lid rates and taxes, £5000 amount written off works, and £6599 2s dividend paid at half year, the credit balance being £15,728 7s lOd. CHAIRMAN'S ADDRESS. The Chairman, in niovring the adoption of the report end balin'oe-sheet, mode tho following statement:—"l here no intention of detaining ' you with a lengthy dissertation on the clear figures of the balance-sheet. They express very simply the result of the year's operations, and show that, in spite of some adverse circumstances, our company, which does not aim at any sensational or speculative profits, has maintained its position, and is able to show a reasonable margin to tha credit of its profit and loss account for the vest year. Tho only point to which I should like to draw your attention is that the wish expressed by shareholders at the last annual meeting for a more rapid growth of the reserve fund his been acceded to, a considerable sum having also been written off the works. While there is every reason to believe that the works and machinery are fully worth tho sum at which they stand in our books, it has to be remembered that an industry such as ours has nlways to hold it*eelf in .readiness to replace obsolete machinery with, newly-invented or more economical substitutes, and the*, therefore, th© appeal foT an increased reserve fund was based on the soundest, of grounds. Shareholders will note with pleasure the increase in tho number of sheep and lambs put through our works, though, th© earnings of the company do not bear the same ratio of increase owing to tho fact that the circases wore exceptionally light. Thi6 was the; effect of the dry season, _ and/if .the past few months are » fair sample of the current year, we miay conclude' thut tho saJne drawback is likely .to hamper us once more. \ The differences between the past two seasons have such, interest that I will -give them in detail. You will not'"regard this as a superfluous display of statistics when I state that the loss of profit through tho average deficiency of 121b per lamb was no less than £203017s Bo\ . 1906. :■■ '■',■'■ ""■. ] Arerage Lambs. lbs. • lbs. Bolfiurt .. 274.570 9.620,979 35.07 Fairfield .. 214,709 7,737,6-13 36.03 Pareora .. 179,357 6,307,633 35.1 . Total .. 668,633 23,675,460 35140 1907. Averago Lambs. lba. lbs.. Belfast .. 310,451 10.636,711 33.48 Fairfield .. 195,911 6.630,661 33.8 Pareora .. 180,607 6,121,197 33.83 Total „* 696,139 23,447,569 33.63 SUMMARY. ■ ./ . • :' x Average Lambs. lba. lbs. 1906 .. 668,636 23,675,460 35.40 1907 .. 696,163 03,447,569 33.66 237,891 1.72 le«s Thus it will be seen that we shipped 27,533 more lambs than in. the preceding year, while the weight on which we received payment was 227,8911b loss. The drawbacks with which we have had to contend, during the past twelve months require some slight notice. v Tho disastrous fire at Belfast disorganised our operations for a time, but if it caused some loss in ways uncoverable by insurance, it enabled us in our rebuilding to secure greater safety for the future and some considerable improvement in methods of working. The strike of the slaughtermen was another evil which proved a temporary embarrassment. Regarding this incident, I would remark that; however well adapted the provisions _ of j the present system,may be for obtaining for working men the maximum wage, there is a lack of finality and a general uncertainty as to the future which greatly hampers industrial enterprise. It may be interesting to you to know that w© have ..to deal with and to satisfy no less than seventeen sopirate unions, and it may readily be imagined that no little difficulty arises from the varying terms and regulations of the multitudinous awards. Oil* farming friends will realise what all this tends to when T disclose* to them that increased rates of pay'and diminished hours of work mean to us a rise in cost of working of about £6000 per annum as a consequence-of recent agreements and awards of the Arbitration Court. Timid shareholders, if such ] there be, may be alarmed at the extraordinary fhrinkage in the supply i of sheep and lambs during the months of November and December, 1907, at | our works, amounting to no less than j 60,106 head as compared with the pre- | vious year, distributed as follows:— BELFAST. - . ■" j Sheep. Lambs. 1906. November and December .. -20,738 33^063' 1907. November and December .. 9574 . 12,513 Decrease "v. 20.570 Total decrease at Belfast, 31,934 sheep and lambs. FAIRFIELD. Shepp. Lambs. 1903. November and December .. 17,353 24,350 1007. November and December .. 2,094 10,179 0 "• — Decrease .. .. 15,865 14,171 Total decrease at Fairfield, 30,036 ehee? and lambs. PAKEORA. Sheep. jjAT&bs. 1906. November and Deoember .. 2,234 5,092 1907. _. Xovember and Decernimr ;. NiL Total decrease at Belfast. Fairfield, ani Pareora, 69,106 sheep and lambs. .1 do not, however, regard this ococn-

tricity of the time as-a serious evil, except as it interferes with a regular supply to our markets. It is a. sure consequence of the backwardness of stock during a dry spring, and doubtless will be fully compensated for later on, though at the' cost of an occasional pressure on our freezing capacity through the unevonness ol the demand upon it. Th© somewhat reduced prices offering for mutton, and more especially for lamb, either on the hoof or per pound at the works, may also be causing growers' to hold back their fat stock. This policy may be easily carried too far by farmers, who may not realise th©'value of feed paddock room, which, is practically wasted- upon animals ripe for slaughter and occupying tho. fattening ground) which should be devoted to bringing store sheep forward. It is genersfly better policy to'accept tho ruling price and quicken the turnover, but it should' always bo remembered that if the prices on offer do not seem to bo fairly consistent with the market prospects, the grower can always avail himself of tho outlet we.afford for testing on his own account the exact value of his products. The maintenance of such an outlet was the initial impulse which started this company; it is a continuing safeguard for the producer, none the less valuable because higher prices have rendered it possible to avoid the risk necessarily run on, small and it regularly-timed consignments. At any rate, it is right to remind farmers that our company is, in great measure, their security for adequate returns lo» sheep and lambs prepared for tho Home market, and to appeal for a corresponding amount of rapport, in directing their stock, whether solo? 01 to be frozen on their own account, into our. works. In conclusion, I may congratulate shareholders on the steaay prosperity of their enterprise, and especially on the success which has atr tended the accommodations provided for our South Canterbury friends at Pareora. I sou no reason to doubt that the present year will prove equally successful." (Applause.) The motion for th© adoption of tho report and balance sheet was seconded by 3lr It. M. Macdonold, and carried. Messrs It. H. Rhodes and James Gou&3i were re-elected directors, and Mr W. H. E. Wanklyn was re-elected auditor. ' The directors' fees, were increased from £375 to £GQO per annum, to be divided according te the discretion of tho Hoard- ' " On tho motion of Mr George Gould a vote of thanks was accorded the directors for their services during* tho past year. Tho Chairman, in returning thanks, said that both, the directors and the general staff of the company bad don© their utmost to servo tho shareholders

during a somewhat trying and harassing year. ,••!■■ ■> . -' A vote of thanks was also passed to the staff. ,