CANTERBURY FROZEN MEAT COMPANY.

Press, Volume LI, Issue 15463, 16 December 1915, Page 5

CANTERBURY FROZEN MEAT COMPANY.

ANNUAL MEETING OF SHAREHOLDERS. The annual meeting of the Canterburr Frozen Meat Company, was held in the Chamber of Commerce Hall yesterday afternoon. Sir Geo. Clifford, chairman of directors, nrosided, and there was a sood attendance of shareholders. THE ANNUAL REFtfilT. The annual report for tha year ended November 30th last stated ihat the net profit for the year was £a3j044 7s 2d, which, with the amount bflought forward fiom iast year, made t«he amount £55,134 9s sd. Out. of tffis substantial amount additions had been made to the various reserve funds,, and after such apportionments, and cfcilucting the dividend paid at the half-year, there remained a sum of £13,589 13s od, which the directors proposed should be dealt with as follows: —To' payment of a further dividend of 3 per sent, on the preference and 4 per cent* on the ordinary shares, making a total dividend for the year of G per cent and 8 per cent, respectively —£7314 4s lid; to carry forward. £(3215 Sa 6d; total, £13,529 13s od. The quantity of stock dealt with at the works amounted to 1,125,971 hctu'l, being an increase of 53.042 head. Tlie directors to retire by rotation weret Messrs John Grigg and James Cough* and thej* offered themselves for re-election. Mr TV. H. -E. Wanklyn, the auditor, also offered himself for ro-eldcHion. THE CHAIRMAN'S STATEMENT. In moving the adoption: of tho report and balance-sheet, Sir Geo. Clifford said: "I need hardly lay stress upon tho fact that it has been an anxious and harassing period. The shortage of freight and consequent irregularity of the outfldw from our works wero distressing to both our clients and ourselves. M r o wero consciousthat the shipping companies were straining every nerve to give relief; we were grateful to tho Prime Minister for his able and ultimat<Mj- satisfactory attempt to grapple with navel problems ; but meanwhile it was oaly to be expected that somo farmetrt, under disabilities which at most »-o could only alleviate, would hardly recognise the fight which all concerned were putting up for them. "We must, however, express our warmest thanks to the general body of our clients for tie moderation of their appeals to us and for tho confidence they throughout showed in our management of an altogether unforeseen and unforeseeable Struggle. German ambitions were kno«-n to all sensible men, but the time) and effects of their recent outbreak wiere beyond the power of forecast. j

A PROSPEROUS FEAR. "You -will readily recognise from the figures placed before yoii that in spite of untoward circumstai&«es the company has had a prosperous year. This is largely accounted for by the concentration of the work anil; the enhanced value of the by-product?—for no speculative profit in the putrjehaso of fat stock is possible for us under our system. It will be noticed that we propose to take advantage of the favourable credit balanbe by increasing, our reserve funds' which have hitherto been inadequate. The utility ■of a good insurance reserve is patent, and the reserve for rpnewals and replacements is eminently needed in these days of continuii; improvements in labour-saving machinery. Moreover, the electrification of tiie works is imI pending. The prospect of increased competition demands a 'General Reservo Fund of enlarged dimensions in order to secure the maintenance of a sound position, such as wo have of lato years happily established. PROPOSED NEW WORKS. "Speaking as a North Canterbury farmer, I deeply regret that new works are in progress in that district. A speculating firm is. of course, within its rights in the erection of its own factory, and farmers in a free country may, by their indiscreet support, alienate the profits which should be the reward of local enterprise, and should bo reserved for the behc&t of the producing country. "In matter tern- , porary gain often blin<J.s the producer j to remoter and less obvJous losses. Of i another nature is ■ the .perseverance of

their promoters in the establishment of

what can only be regarded as opposition works near Kaiapai. Whether in success or failure this enterprise involves a waste of capital, inasmuch as the ground is already covered by our own company, which with its absence of competition, in tho ojpen market has ever, in /aithful compliance with its leading principle, sacrificed posibilities of speculative gains, lis main function has been to keep an iopen channel for farmers and . exporteite. free from the combinations whose o»ject is to diminish local prices and tftereby to lessen the producer's return for his yearround labour. THE NEGOTIATIONS. "We endeavoured 1 ; not only in our shareholders' behalf, but in that of the district generally, to avert this fratricidal strife, and desire your forbearance if I draw your renewed notice to tie correspondence in which we offered co-operation. On the 29th Julv I wrote as follows:—

To the Chairman, North Canterbury Sheepfarmer*' Co-operalijfe Freezing Co., Ltd., Christchurchi Dear Sir, —I think iH well, in order to avoid misconception, to etate in writing a rough proposition as a .basis of negotiation in the attempt to prevail* wasteful expenditure in tho duplication nj works for meeting the freezing requirements of tile North Canl?rbury fanners. Thei Canterbury Frozen Teat Company would engsest:—(l) To guar"lteo killing, freezing, o*d storage space to "Tmem north of the. Ashley river to tho -stent of, Ray, 250,0 C() carcases (or such ther number as may be agreed upon) per ■'ftson. (3) To arrange rwith any considerable 'v>dy of farmers for Ike pooling of their 'tock or to institute a pool for all such 'irmers as may indicalc their desire to deal in this manner. (3) It on consideration of Mie circumstances, inclttiing tho erection cf "orke by Messrs Borfttwick and Sons, at Belfast, the' need of 3«t further storage is manifest, to undertake io supplement its recently erected store by a further extension. Tt will be recalledv Il|at the Canterbury Frozen Meat Co., has. lately, specinllv to meet North Canterbury demands, built sto*--a<ro room for 85.000 uSditional carcass. If the above uro acceptable I will *s soon as possiblo submit them to the Board for approval. In all businesses the economv of capital is vital, and I trust that you will give weight to the objection aeairwt a division of the lrtc<l freezing- equipment at a heavy capital ontlav. without corrrspindintr advantages. ; Tliie Canterbury Frozen Meat Co. has. throughout, by abstinence from speculation in fat stock, and to its own detriment., protttrd the freezing interest as far »« farmers tteroselves wou'd permit : it ha* frozen stock at) a fixed and moderat» rate, thereby checking all monopoli*-? and ensuring a price in «jxoees of other districts Drsrtically devoid «ff a similar open outlet. "While- recognising that our ideals must, in the nature of thisMi, be substantially the same, I would ask v«">ur attentive consideration of the adviVabnlity qf coming to an agreement bv which a competition, which must result iniuri'jnslv to all na'tio*. can avoided, and by Thjfch » profille«« expend '•- t'U-» of mor.»y and brains may be averted, the first <»uflav nor th» high proportionate upk~>D cf new works are, in my opinion, justified. aTid I tnist that von nr\y **«■ ahle to device some means by which tho object of the promoters of your comnany can be attained with' - '* sveh iniunr +o the whole '-rrni"'» rommnnftr I need hardly --dd t>>r»+ the Canterbury -Trozen Meat Co. will ' •dadlv me~t von in any wav which i« cos 'on.-vnt with the fntrn* prosperity of the industry noon wh''r¥ Canterbury bo largely do ponds.—Yours f|if>fnJlv. (Signed) GEOKGE CLIFFORD, ' Chairman. July 29th, WIS, A NEGATIVE REPLY. * "Tho negatlro reply is dated 4th August, and, ; as you will observe, slurs ,

tor» and you»elf at the conference held at over our proposal without discussion or comment. It reads:— To the Chairman, the Canterbury Frozen Meat Co., Ltd., Christchurch. Dear Sir, —On behalf oi my directors and myßelf, I deeire to thank you for tho courteous reception accorded to us by your dirccyour invitation on July 29th. I also acknowledge receipt of your letter of that date, setting forth th* basis suggested by you for negotiations between tho two companies. Your propositions have received our careful consideration, but as representing a large body of farmers in. North Canterbury, we regret that, in our opinion, v.-e should be not acting jn their best interests in accepting thein in a basis of amalgamation. The object of the formation of this co-operative company 14 to conserve the interests o>; its shareholders, and generally to forward the interests cf tho farmer* of North Canterbury. My directory will at all times be pleased to meet your company in friendly conference to discuss any matters having for their object the preservation and furtherance of the interests of the farming community.—Yours tru'v. (Signed) G. D. GREENWOOD. Chairman. '•'On August 9th, after consulting our directorate, i answered in these terms: — "Dear Sir, —I have to-day received yours of the 4th inst., and regret that your company has refused to eniertam, or even discuss the proposals submitted in my letter of the '.23th inst. I may add that it is our intention in any case to work practically on the lines «'© then suggested, and that we should at any time be glftd to hear that you were prepared to reconsider your answer. — Youra £aitkful!v, "(Signed) GEORGE CLIFFORD, "Chairman." CONCILIATION FAILS.

"I have quoted these letters to show that 110 false prido or spirit of antagonism on orir part barred the way to amalgamation or to the joint realisation of common aims. Our attempted conciliation failed to elicit any response, and whatever consequences may result will certainly not be chargeable to our fault. In every other direction the state of our business indicates a sound prosperity. Tho estimate of our brands on the London market is no inconsiderable asset. Trade reports are flattering, and the 0110 I will givo is a fair sample. It says:—'C.F.M.C. still occupies tho first position, and the better class trades will always give the preference to that brand. In fact, the almost weekly result is that there is a scramble to get C.F.M.C. in greater quantities than wo have to dispose of.' TRIBUTE TO THE STAFF. "Such testimony points to the careful and uniform way in which our employees have carried out their duties under unusual difficulties, and, indeed, we cannot help feeliny pride in the readiness and zeal with which all our permanent staff adapted themselves to trying circumstances." It is not easy to particularise where all showed admirable zeal, but the works managers, the head office stnfT, and the freezing foremen successfully contended with their special troubles, and I am confident that shareholders will approve the grant of a larger bonus than is customary in ordinary prosperous seasons. IMPERIAL GOVERNMENT'S ACTION. "Passing from our private cares to ■those of the country at largo, a referenco is dne to tho purchase by the British Government of the entire output of frozen meat. It was fully understood when the tariff was agTeod unon between the representatives of the farming community and tho Government, that an excessive rate would not bo asked for, but merely one which would cover tho usual return from such Produce. It is to be regretted that iy rtly from a misunderstanding of tho Situation, the feeling has been here and there expressed that a bad bartrain was made. Wo had no intention of making a bargain at all; we secured a good uniform price, and we were onite prepared that any possible nrofit on the "eai should go to tho cost of feedin" the British Army and to the nrercrtion £u- an £ ox -? ,oitin C of the British nation. This has, in fact, been the outcome of the transaction, and I do not envv tho man who his share of it. " (Applause.)

tt THE FREIGHT. SHORTAGE. "I fc Tats, however, soon discovered that owing to tho shortage of freight and the consequent congestion of the stores, farmers were in some instances placed at a disadvantage. Unable for tho moment to get their stock frozen, they were obliged to sell at less than the Government price, to those more fortunately placed in their ability to hold or freeze. To allav tho natural discontent thus aroused, the Prime Minister suggested a conference which fixed over all onces to which tho representatives of the parties bound themselves. If, in any case, the obligation thus created was evaded, the evasion would have been an act of singular meanness; but that a stop was effectuallv put to tho atmosphere of suspicion which was abroad, is a fact for which the farming community owes a debt of gratitude to Mr Massey. i

THE OUTLOOK. 'Turning. from tho past to the future, the outlook has been improved by tho addition of much storage accommodation. Our companv has enlarged, or is enlarging, its cold chambers at Belfast, Fairfield, and Pareora, and no fear need be felt that such a block as was occasioned by tho shortage of freight will recur. A warm response followed the offer of our ne*v issuo of preference shares, which were immediatelv taken up and would havp been largely over-subscribed if we had not limited the apnlications. WhfJo this extension of capital may not have been absolutely necessary, it has obviously strengthened the company by widening our circle of shareholders anil

completing tho financial indepondenco which is so important to the prosperity i of such institutions. Shareholders who , take tho trouble to compare our bal-ance-sheets prior to first issue of preferenre shares with recent ones may well feel confidence in their investment and a certain satisfaction that our operations have borno good fruit, while also conferring priceless advantages . upon tho producers of Canterbury by the prevention of anv combination against their interest or hostile to the J unrestricted freedom of export. j <: Many of our staff are absent in the service of their country, and arc drawing half-pay from tho company in addi- ! tion to their military pay. The Board feel sure that these grants will be fully approved by tho shareholders. For thobe of our employees who havo laid down their lives heroically for their country, »•« tender to their relations and friends our sincerest sympathy. We intend further to ask your assent to setting apart such sum as the directors may deem proper to be earmarked for subscriptions towards patriotic purposes. Personally I strongly favour a national centralised fund supervised by trained officials and administered in a thoroughly national tpiiit. Thus onlycan a completely impartial and economical distribution be maintained. '•May we assemble at our next annual meeting under happier auspices, relieved from tne heavy public and private anxieties .which have Clouded tba period now under review, and ere then may the aspirations of the ruthless aggressors in this world-wide conflict have been permanently crushed and our freedom thus assured." (Applause.) Mr R. H. Rhodes (Blueclifta) seconded the adoption of the report and balancesheet. Mr John O'Halloran thought it would be a good idea if the Board of Directors of the company were enlarged, as it would enable "more of the country to be represented, and with I better representation the general line of farmers could be easier, enlightened on the operations of the company. The chairman said that the suggestion of Mr O'Halloran would be very favourably considered by the Board, and an effort would possibly be made to elect a representative for that part of tho country resided in by Mr O'Halloran. The chairman also referred to a memorandum received from South

' I Canterbury farmers which suggested ' that if space should be restricted tins season the company should receive application for space ono month beforehand. The company could thus better ascertain tho bona fides of applicants, and the farmers would fed more or greater confidence that space was alloted pro rata. It was also suggested that concession and rebates bo given to those who sent in over 1000 carcases. These suggestions, the speaker said, would bo favourably considered by the directors. The report and balance-sheet wero adopted. GENERAL. Messrs J. C. .N. Grigg and Jas. Gough were re-electod directors, and Mr Wankryn was re-electod as auditor. A vote of thanks was moved by the chairman, and carried, to the company's staff, which he said had worked under the particularly trying circumstances in an entirely admirable manner. It was proposed to increase the usual bonus to the staff, if that met with : the shareholders' anr>rova], (Applause.) Mr N. Meßcth responded on behalf of tho staff. A vote of thanks was passed to the directors for their work, and a special voto to Sir George Clifford for the efforts he had made to bring about nri understanding with the new North Canterbury Farmers' Co. It was resolved that power bo given to the directors to give such donations to patriotic funds as they thought fit.