BRITISH-NEW ZEALAND MEAT COMPANY.

Press, Volume LXV, Issue 13364, 4 March 1909, Page 3

BRITISH-NEW ZEALAND MEAT COMPANY.

« ANNUAL MEETING OF SHAREHOLDERS. The fiftih annual meeting of ehareholders in tho British-New Zoaland -Meat Company was held afc tho company's offices in Hereford street yesterday, Mr. M. C. Orbell, chairman of directors, presiding. In submitting the annual report and balance-sheet for. tihe year ending December 31st, 1908, the directors stated that tho balausc at tho credit of tho profit nnd loss account Amounted to £2081 Is 4d, which they considered very satisfactory, and they recommended that it should be desalt with as follows: —In payment of a dividend of 6 per cent., £1105 8s SJd } in payment of part preliminary expenses, £340 4s sd; and to carry forward tho balanco of £635 8s 9d; the total being £2081 Is 4d. The company's account sales during tlho past year had proved vexy satisfactory to shippers, consequently consignments for this season were coming to hand in l'argoly increased numbers. Tho directors retiring by rotation were Messrs J. Cow a.nd H. Overton. Mr Cow offered himself for reelection, hut Mr Overton retired from tho Board, in consequence of his removal to the North Island. Tho auditor. Mr H. A. Bruce, had resigned, owing to his departure from tho Dominion, and the directors had appointed Mr G. W. Hiilme to fill his place. THE CHAIRMAN'S ADDRESS. The Chairman, in his address, said that it afforded him pleasure to meet shareholders and give them sin opportunity of discussing with the directors the affairs of the company, and he was glad to inform them that the company was in a position to pay a dividend, and that the prospects were most encouraging. The position of the company was clearly set forth in tho balance-sheet, which, he thought, would bo considered satisfactory. Besides paying a dividend of 6 per cent and writing off £340 4s 5d preliminary expenses they carried forward £635 8s 9<l. The directors considered it prudent to enrry forward that sum, with the view of equalising the distribution of funds when they next balanced. The item £1340 4s *od appearing as preliminary expenses, when reduced by tho £340 4s od proposed to pay off, would then stand at £1000, which represented the unpaid 1000 syndicate shares that had appeared on previous balancesheets. Therefore the sum paid for preliminary expenses disnppearod. He wished to say a few words upon the question of the company not having paid a dividend earlier. He did so bocause ho was aware that the matter had often been discussed and commented upon. Tho policy had been to jzo slowly. The directors considered that it was tho wisest course to pursue, recognising that the business in its infancy required tho most careful handling to minimise risks and preserve the capital. That policy they intended to continue. After all, there were not I many new companies that had earned I a dividend in a shorter period, and. although it was only 6 per cent, it was equal to that of many companies of longer standing. He might remind them that they had only been in business four years, and, considering competition and onnosition they had i had to contend with, the position they had attained on the frozen meat market was one for congratulation. Only those who had had to mt'ct thodifnei;!I ties of establishing a meat trade in i London had any conception of tho o'ii stacles that surrounded it. Ho regretted to say that not only had th«-y had to face London opposition, but ah" nearer home and in their midst a grenf many very hard, and unjust efforts .h:sd been made, and were still being to retard their operations. He toi>l; tho opportunity of assuring tlw> company's detractors that. with the support tho company had. mul tho confidence it possessed of many of tho most influential stock-owners in the Dominion, who knew that tl-i. : y could rely upon receiving every penny ! tlicir meat realised, tho company would j continue to £O forward, and, by a caiil tious and honest, policy, nltlrough ir I might he considered by some a s!ow Jone, they intended to make tho British 1 Meat Company what it was meant to

b<?—a farmers' company. As proof that they were rapidly attaining a leading position, he might state that their clients consigned through the company ono-fourth of the total shipments from Lyttelton and Timaru for the month of January last.

It might interest them to know that during the past season the company dealt "with considerably over 160,000 carcases. Practically vrithout exception thoir clients exnr;-ssod themselves thoroughly satisfied with tlieir account sales, consequently were shipping through tiie company Tliey had also upon their books a number of now liarnr , .?" large owners of fat stock who wore entrusting the company with all their shipments,

Their London manager wrote that without any increase of capital they could handle a very considerably increased coM>ij;nm<'iit business without

being forced to realise slocks at inopportune times or by forcing the market.

They had little or no depreciation to provide for, which ucnorally was an important item; thi-y had no bills, loan* or debentures to moot. They would, he thought, agree with him that the defroster shares, occupied a very difTornit from liabilities such as ho had mentioned. They had hoard a good deal about tho folly of consigning in preference to selling in tho local market. They aU know that prices in tho Dominion last, your ruled abnormally high. Ho wa.s prepared to .show account sales proving that a large majority of consignors who shipped through tho company, nriur to the mouth of August made from Is to 2? per oaroase more tiian if they had sold locally at the time of shipment. Although they wore receiving this season much greater support than they anticipated, he wished to remind their friends that fiiey were getting more consignments from non-shareholders than from shareholders. That might he a coincidence only, and might be occasioned by want of thought or knowledge of the business. Ho honed that sonio of the latter would recognise that in assisting their company by giving in "their business they would enable it to pay increased dividends.

From what they had heard and read lately a pessimistic feeling with regard to future prices had taken possession of some Canterbury people. The old bogey had again been brought forward, and fears had been expressed that Australia and tho Argentine wcro going to play havoc with tho New Zealand meat trade. He did not believe, it and never had done so. Tho samo idea prevailed fifteen years ayo, when New Zealand's output was about half that it was now, when all the frozen meat imported into the- United Kingdom formed only i>\ per cent, of tlw consumption of tho population compared with 20 per cent, at the presont'timo. Ho remembered that he was subjected to severe criticism at that time for daring to assert that tho frozen meat market had only been "scratched." He still believed that a remunerative market would always be found for whatever quantity come forward. Undoubtedly prices would fluctuate from year to year, as with all other products. It was only a question of time, and that not a very long one., before the with its huge population, would be a consumer. The agrarian interest was in iiowor jusfc now, but the. masses wore becoming day by day more alivo to their strength" and were, not going to pay tennonco and fifteen ponce per pound for "meat when their neighbours could obtain it for loss than half that price. Ho learned through Messrs AVeddel and Co.'s report that Italy and Sweden were now taking New Zealand meat, and that Switzerland was likely to bo a consumer, and further that Egypt was going to bo a good customer. Tbo recent conference held in Paris would have been impossible a few years ago, and if it. was followed ur>, as was intended, by further action, tho opening of Continental ports was probably within measurable distance. Tho people here had got in the thin end of the wedge and the prospect of driving it home was much more favourable than it was a few years ago. There could "be little doubt that fho fall in prices, especially beef and mutton, was duo to tho present exceptional depression in all trades, which of necessity reduced tho spending power of both the middle classes and employees of -the kingdom, who in prosperous times consumed a large proportion of New Zealand's meat. That, and that only, ho was convinced, was the- main cause of reduced prices, 'mc fact that both English and Scotch meat had depreciated in value more than our own speal%s eloquently in support of this opinion. As soon as trade returned to its normal position there was overy reason to believe that the present unsatisfactory state of tho beef and mutton market would improve.

In conclusion, ho might state that correspondence with London indicated that, both Mr Iteeco and Mr Chancy considered that the company occupied a position that assured to shareholders a profitable investment on their .shares. During the year several Canterbury gentlemen had visited London, and while there interviewed their manager, with whoso conduct of tho business they were thoroughly satisfied. On . behalf of the directors and shareholders he desired to state that they rocognised and appreciated the efforts made by their London staff to promote the. interests of the company. The directors had recently appointed agents for Wellington, Gisborne, Hawke's uay, Marlborou\jh, Otago, and other centres, who were all doing good work. Ono word as to tho position of the company's stall in Smithficld. It had boon condemned by come and approved by others. All that he could say was that although not in the most favoured part of Smithfield. they had tho great moat firm .Swift and Co., on either sido o? them. It might be advisable to secure another stand. As ho had before remarked, tho directors intenucd to go slow, but they would consider this question when they thought the company was ripe for it. At the prosent time they could dispose of their interest in tho stall at a most substantial profit. Mr Thomas Stone seconded the adoption of tho report and balance-sheet, and after a brief discussion the motion was agreed to. Mr James Cow was elected to fill tho vacancy on tho Hoard of Directors. Mr G. W. nulmo was re-appointed auditor. On the motion of Mr Stone, seconded by Dr Thomas, votes of thanks were accorded the directors and the staff, and were acknowledged by tho Chairman and the secretary (Mr E. R. WebbV