“THE CORNER TURNED”

Dominion, Volume 20, Issue 71, 17 December 1926, Page 12

“THE CORNER TURNED”

WELLINGTON MEAT COMPANY HAPPIER ANNUAL MEETING VOTE OF CONFIDENCE IN DIRECTORS Realising the difficulties surrounding the meat industry, it would be unwise for me to predict the future course of the markets. I am, however, sufficiently optimistic to suggest, that with careful management, and assuming prices for stock remain on a reasonably stable basis, it will be possible to trade on sound and profitable lines I believe the company has turned the corner, and I trust that at our next annual meeting the directors may bo in a position to present to shareholders a satisfactory bal-ance-sheet.

The above hopeful note was sounded at the annual meeting of the Wellington Meat. Export Company Ltd., yesterday bv the chairman of directors (Mt. O. S. Watkins), "'bo presided oyer an attendance of some thirty shareholdeis.

Reconstruction of Capital. “I wish to refer briefly to the effect on the -iccounts bv the reconstruction of the company’s capital, and also to the result of the rear’s operations, said the chairman in moving the adoption of the annual’ report and statement of accounts “The appropriation account discloses the allocation of the £150,601' capital, i.e., debit balance ,P “’ll 1 % S L q 5B cnnnt as at September 30, 192 a, loss on realisation of stocks on SsMMbV, ■ E,S ?S; made of all the company s pioperties am plant.

Stocks on Hand. “The directors placed what ''’ey sidered, at the time, a very c 9% ,va value on the stocks on hand in tho 19_o balance-sheet. . Unfortunately, 1 their anticipations were not caused, and a loss of £9280 was sustained mainly attributable to the overseas shipping strike which he’d up supplies, resultin ii\ congestion of shipments and a doline in values. It was thought expedient to show the loss separately,in order to give a correct view < t the compuny’s actual trading operations lor the yC “Th" n meat Stocks on hand. September 30 19°6 have since been disposed or, and the figures appearing in the bal-ance-sheet represent actual realisations and not estimated values. “The trading account *or <he year discloses a net loss of <£3220 16s. 44., which under the circumstances, may be considered as not unsatisfactory when taking into consideration the difficult conditions of the Home market, and more particularly when it is .emenbered that tho recent disastrous coal strike had the' effect of depressing the values of all our exportable pioduce.

Working Costs at Ngahauranga. “Important factors in the year’s operations are the.economics 'fleeted in tlie working costs at Ngahauranga, ally owing to the installation cf hydioelectric power, which, replacing the old gas-producing plant, has .-esulted in a substantia] saving in the cost cf power in all departments, besides enabling t ie engineering staff to carry <ut, in the slack season, any necessary repair work. In the last few years considerable suras have been expended on repairs and renewals generally. Most <>t the work done is of a permanent cature, anil the result is now evident in reduced operating costs and a decrease in the annual expenditure under this heading. "The issue of £50.000 preference shares of the' £lOO,OOO authorised lias met with a satisfactory response, ever £35.000 having been applied for and allotted to date, and it is anticipated the remainder will be taken up shortly. Satisfactory financial arrangements have been completed for carrying on the company’s operations during the current season. The new capital obtained has materially assisted the board in making these arrangements.” Mr. Watkins concluded by ecknowlodging the assistance and loyal support received from the executive tracers and staff during a very trying period. “Turned the Corner.” In seconding tlie motion. Mr. A. E. Mabiu said the directors had presented a balance-sheet which was clean, and presented the position of the company in a clear aud concise manner. lie shared the view that the company had now turned tho corner, and he felt confident that the directors would be able next year to present a much more satisfactory balance-sheet. Charge Against Meat Board Members. Mr. W. Barton said he had had a long experience of the freezing business and be was more ttian ever convinced that, it al] depended upon management. If the company adopted a proper system of costing, they would pull through. He entered a protest against the alleged action of four members of the Meat Board in espousing the cause of the Waingawa meat works, and trying to st ifie the Ngahauranga works. The Bank of New Zealand owned the Waingawa works, lie said,

but the bank was ' perfectly fair, and would try to keep Ngahauranga goiug, even if this killed Waingawa. M heuever politics entered into business, shareholders invested at their own risk.

The Offer from Borthwicks. Mr. C. Wheeler urged that steps should be taken to bring before tho Government the handicaps which had been imposed upon the company through the Meat Board refusing to allow the sale to Borthwicks. This refusal had forced the Wellington Company to trade for another rear under most hazardous conditions, and in order to carry on they had been compelled to issue preference shares bearing 8 per cent, interest, with the result that the company had made a loss on the year’s working of £3OOO. Ho considered tho company had a very good claim fur compensation. “No Offer from Wairarapa.” Tbe chairman said that Mr. Barton probably had in mind a statement by the chairman of the Meat Board to the effect that the Wairarapa Company had made an offer of £200,000 for the Wellington company’s works, j He (Mr. Watkins) had denied this statement. lie declared that the Wairarapa company’s offer was no offer at all. All it amounted to was a request for an option ovet; the works for three months. If the option had been given it would simply have meant that the Ngahauranga works would have been hawked about the country while the Wairarapa company endeavoured to raise the i ecessary capital. No self-respecting board cf directors could have entertained such a proposal for a moment. He contradicted Mr. Jones’s statement that a definite offer had been made for the Ngahauranga works. In spite cf his (Mr. Watkins’) denial, Mr. Jones had lepeated his statement the other day in Oamaru. The motion to adopt the i eport and balance-sheet was carried unanimously. Directors Re-elected. The retiring directors, Messrs. O. S. Watkins (Wellington), C. Elgar (Featherston), J. Campion (Fordell), W. S. Bennett (Wellington), and A. E. Mabiu (Wellington), were all te-elected, together with the lion. E. Newman (Marton) and Dr. C. P. Knight (Wellington). Messrs. E. W. Hunt, W. S. Wheeler, and A. T. Clarke were re-elected as auditors. The chairman, in thanking shareholders for their continued confidence, said that tho directors had considered that the proper course to take was to place themselves in the hands of the shareholders. The fact that all the retiring directors had been re-elected was taken as a vote of confidence, and was very gratifying to those who had had to steer the company through a troublous period. The Hon. E. Newman said that the directors Who had had to carry on during the past few years had his sympathy. He realised that it was the duty of directors to endeavour to give shareholders an adequate return for the money they had invested, and this would be his aim. When they considered tho position in which several other freezing companies found themselves at present they must admit they were not so badly off. Kakariki Works. ' In answer to the Rev. H. van Stavcren, the chapman said that it was the intention of the company to sell the Kakariki works, but. it would be unwise to sacrifice the works and allow an opposition firm to compete there against them. Dr. Knight said that the Kakariki works wore one of the most up to date in the Dominion. Mr. van Staveren said that he had asked tho question because he had been told that the engines at, Kakariki were eminently superior to those at Ngahauranga. Tho chairman said the company’s engineers had given this matter careful attention, and anything which would improve tho Wellington works would be done.

Votes of thanks to the directors nml the staff concluded a meeting which was much happier than the one held a year ago. '