A SATISFACTORY YEAR

Evening Post, Volume CVIII, Issue 147, 18 December 1924, Page 11

A SATISFACTORY YEAR

GEAR MEAT COMPANY

ANNUAL MEETING OF SHAREHOLDERS

-"STRONG FINANCIAL POSITION."

The ordinary general meeting of shareholders of the Gear Meat Preserving and Freezing Company of New Zealand, Ltd., was held at the company's head office last evening, Mr. "W. H. Millward presiding.

:, In moving the adoption of the report and balance-sheet, which have already been printed, the chairman said: "I have great pleasure in congratulating you upon the satisfactory results of the year's operations. Last season opened with the keenest competition from all sources, and high prices were paid for sheep and lambs. After the early shipments it was found difficult to do business on c.i.f. terms at remunerativo rates, and from January onwards values fell considerably and forward business was out of the question. Lower prices, however, stimulated consumption, stocks became lessened, and as a result satisfactory sales later eventuated. The company's strong financial position enabled it to hold a great part of its consignments over the unfavourable period referred to, and thereby to obtain full advantage of the improving situation. Conditions on the Continent of Europe have recently been more stable, and as a consequence several shipments of sec-ond-quality beef have been made to various points, and there is a prospect of a continuance. Most of the business was done with South America, and the enormous expansion of Argentine exports to meet this demand has astonished even those well acquainted with the trade and its eloquent evidence of the resources of that country. Tho markets for tallow and pelts have been good, and for wool excellent, there having be.eri advances practically throughout the year. At present the prices of most of the products in which the company is interested appear to be dangerously high, .arid.it is feared that consumption may be_ curtailed to an- extent which may bring about some degree of reaction. Even wool, although statistically in so strong a position, is liable to be affected by lower costs of cotton, silk, and artificial silk. The course of the meat trade in Great Britain has attracted considerable attention in the Imperial Parliament, and at present a committee, set up by the Government and presided over by Sir Auckland Geddes, is investigating the subject of food costs generally. It will be interesting :to watch the trend of events. The winter and spring have been good, and stock in this district has done well. The Jamb•ing in the North Island as a whole has yiot been so favourable as last year. /The Qpening prices, owing to shortage tof supplies at Home, have created a ; record, but it remains to be seen whether .they can be maintained. Iri the (meantime the farmer is reaping a reward he well deserves. Reductions in •freight on meat have been obtained, and ■ freezing charges have also been lowered. The company's rates are on the ■'basis of the lowest ruling in the Do- ■ minion.

"The property and plant have been ■■well and carefully maintained. Everything will be ready for the cut-over as ■soon as the hydro-electric power is available.

"In April last the Hon. Dr. A. K. Newman, M.L.C., passed away after having been a director of the company for thirty-nine years, during which time he rendered valuable service. A suitable minute was recorded and a copy forwarded to his son.

"During 1918 and 1919 the company was compelled by law to subscribe to certain Government loans raised for war purposes, and bearing interest at 4i ! per cent, per annum, free of tax. As these securities are not now required, it is proposed, as set. out in the report accompanying the balance-sheet, to apportion the greater part of them amongst shareholders on the basis of ons pound face value of inscribed stock for each share in the company. As the Treasury will not subdivide into sums of less than £10, balances below that figure willbe paid in cash at market value—£97 10s per cent. In order to carry out this transaction, certain re--serves of long standing and appropriations for contingencies, which have ceased to exist or have otherwise been provided for have been brought to credit of profit and loss account, and thence transferred to the reserve funds, from ■which distribution will be effected. To enable this to be done it. is necessary to alter the articles of association, and for this purpose an extraordinary general meeting of shareholders will be held at the close of this meeting. If the necessary resolutions ar- passed this evening they will be "brought forward for confirmation on 7th January. STRONG FINANCIAL POSITION. "From the balance-sheet you will see that even after the distribution shall have been made, the 'company will still be in a particularly strong finanical position, also that .there is a considerable internal reserve in the values at which the property and plant appear in the books. The earning power will naturally be affected somewhat, but the directors recommend the adoption of the proposal, as it is undesirable that the company should assume the functions of an investment company. "In conclusion, I wish to extend to the general manager, .head office, and London staffs, buyers, heads of departments, and the employees generally, the thanks of the board for the good work which they have collectively and individually so faithfully performed. I now formally move the adoption of the report and balance-sheet, and call upon Sir Francis Bell, as senior director to second the motion."

CAREFUL AND SKILFUL MANAGEMENT.

The Hon. Sir Francis Bell, in seconding the motion, said it was a little more than 33 years since he first took a seat on the board, and the company had grown from small things to great things during that period. It had been a most interesting business being one of the directors, and it was a trust which he had been very proud to hold. Shareholders would see that the proposal of the board to divide part of the moneys invested in the 4£ per cent, stock did not in the least reduce the value of the shares. During the years the company had been successful, they had not divided what they had available; ■ they had paid moderate dividends; they had paid off all the- old obligations: had written down their properties; "and they now had a surplus above what was necessary for the conduct of the affairs of the company. A glance at the bal-ance-sheet would show that they did not owe any nloney on debentures, nor on mortgage. In investment, apart from moneys on deposit, they fiad £698,000, of which they proposed to divide £460 - COO. Plant, buildings, and land stood in the balance-sheet nt £60,000. It was due to careful and skilful management;.

which he could not pretend to have had a real share in. The man to whom their prosperity was due was the chairman. (Hear, hear.) He thought tho shareholders should consider the question of recognising Mr. Millward's nmgmncent work for the company, and that could perhaps be done at the meeting of the company, to be held next month, to confirm the resolutions referred to. He thought the shareholders would be gratified at the increase in the regular dividend to 10 per cent. They must remember, however, that in their business they had to buy, and they had always paid as high prices as anyone else, isomehow, they had been successful and somehow others had not. They always had on hand a great quantity of stock. and products which they paid for, and the sale of which was more or less a guesswork. It was not a business in which they could afford to distributs more than a reasonable dividend. The large funds they had were necessary to enable them to meet in the future as they had in the past, * any possible loss out of their own pockets and not by borrowing. He hoped the shareholders would support that policy, and allow the directors to continue to be as conservative and as careful in the future as they must see the directors had been in the past. Sir Harold Beauchamp said he would like to disabuso the idea which he had heard occasionally expressed that the company was a "one man show." It was neither a "one man show" in respect to the directorate, nor the executive. Ho agreed, however, with what had been said as to the magnificent services rendered by Mr. Millward. The chairman . said that the matter, which had been brought up, was referred to at a recent board meeting and he hoped he had squashed it. Ho thought the directors had given him an undue amount of credit. He paid a high compliment to the ability •of the general manager, Mr. W. ,H. Tripe, and said he would rather things should continue, as they were at present The motion for the adoption of the report and balance-sheet was carried Messrs. W.H. S. Moorhouse and Allan Strand, were re-elected directors. Messrs. Ernest W. Hunt and E B Dymock were re-appointed auditors ' hTa a? ,^ traordi,nary general meeting, miff Il c croncl, usion °f the annual meeting, the- resolutions referred to in the chairman's address were adopted On the motion of Sir Harold Beauchamp, a vote of thanks was passed to tne general manager and staff. The general manager- Mr W TT TV.V.. „„ knowledged the'vote of th^kl P' **