GEAR MEAT COMPANY

Evening Post, Volume CXVI, Issue 144, 15 December 1933, Page 11

GEAR MEAT COMPANY

ANNUAL MEETING

DIVIDEND OF 7i P.C.

The ordinary general meeting of shareholders of the Gear Meat Preserving and Freezing Company of New Zealand, Ltd., was held today. Mr. Allan Strang, chairman of directors, presided. In moving the adoption of the report and balance-sheet, which have been published in "The Post," the chairman referred to the satisfactory result of the year's operations. The position at the commencement of last season, he said, was anything but encouraging, and the directors were faced with many difficult problems, some of which had been solved in a manner beneficial to the industry. "No agreement could be come to with the Freezing Workers-Union, and a start was mad© with what was known as the chain killing system, and this had progressed so well that the- largest day's output of the- previous season was exceeded. During the. slack season improvements for this method of working had been effected, and the company would have no difficulty in coping with the rush period when it set in. Most of the freezing works in New Zealand were operating' the same system with equal success. . "Prices for our exports in the early part of the season were*very low," said Mr. Strang, such lines as wool, pelts, tallow, and preserved meats left small figures after deducting manufacturing and working expenses. Later in the year a substantial increase in theprices of wool and pelts took place, and .about June frozen mutton and lamb showed an upward tendency. Owing to the larger qxiantity of beef prepared for export, and in view of the big stocks held in London, the company, along with -others, agreed to hold back further shipments of this article, so as not to arrive on the market before January 1 next, and with the exception of this beef, all our other exports from last season's operations have been realised. The tallow market has shown very little change, and today's prices are about the same- as those- ruling last year. Very favourablo reports have been received on the quality and getup of the company's manufactures, and the 'Textile Journal 1 has referred several times to the excellence.of the Gear slipes." Since April, 1930, lie continued, the flocks of New Zealand, had decreased by 3,000,000, and to a large extent this had been the cause of the killings, of wethers and ewes in the North Island to the end o£ October falling short of the previous season's by 729,000. UNCERTAIN FUTURE. "With regard to the future," said the chairman, "it is very hard to forecast, as world conditions generally are in such an unsettled condition. Mr. Benaut, our London representative, keeps in very close touch with those who have had long experience in marketing products such as the company exports, and when they think opportunities are favourable, offers to sell are put forward." Referring to the balance-sheet, he pointed out that the new reserve account was. obtainod by taking into the assets the sum of £35,000, an amount under the Government valuation of the Lambton Quay and Tory Street (Petone) properties, and leaving the remaining freehold properties and working plant in tho accounts at £57,000, which was £693 2s 9d loss than last year. The directors considered it advisable to give separate values of'the assets for these two branches of "the company's operations. Touching on a reference in the report to tho reduction of capital, he requested shareholders who had not already done so to surrender, their £1 share certificates with as little delay as possible, and thus assist the staff in carrying out this big work. . The properties and plant had' been carefully maintained during the year, and several alterations to #nethods of working had been, introduced which would help to reduce charges. DIRECTORS' DIFFICULTIES. . Sir Francis Bell, in seconding the motion for the adoption of the report and balance-sheet, said that as a dividend was (,o be declared he supposed that one part of the - balance-sheet would receive the approval of the shareholders. He did not know that shareholders appreciated what an. anxious and difficult business that of tho directors was. He did not want shareholders to go away with the idea that because prices were better for some products the company was thereby placed upon a far better foundation. The farmer knew perfectly well what there was coming for exchange; he knew perfectly well the value of by-products as well as meat. The company had very competent, efficient, and loyal buyers, but they had to buy at prices which would give the company a reasonable profit. Now, the company had very serious rivalry in the market —more serious than in the past. Their rivals, quite fairly and properly, were prepared to outbid the company, and the. company had to determine the scale to bo paid for the animals purchased in' relation to the scale of prices adopted by the buyers of other institutions. He only made these remarks because he knew that there was a ' general idea on the part of shareholders that when prosperity came to trade in general, the company would necessarily share in that advantage. The company would so share if.they bought with prudence. But, as he had said, they had rivalry, and shrewd people to deal with aa venders. The idea that the company got the 25 per cent, exchange was entirely; erroneous. If those present looked at the, prices the company paid and the prices on the London market they would see" that the benefit of the exchange did not go to tho company; it went to the farmer, because he was able to name his price. The directors were happy again to be able to provide a dividend, and it had been suggested that they might have paid a higher dividend, but Sir Francis said he could show that they could not fairly have done so. He hoped and believed that the company which had been prosperous in the past would continue' to Vt> prosperous in tho future. As they knew, tho company ha.d enormous advantages over some concerns; they had the advantage that they did not owe a shilling, and had a large amount of capital. Still, shareholders and directors must make up their minds that they had to fight for a. dividend as they had not had to fight in the past. . j The report and balance-sheet were adopted. ■ : • The retiring directors, Mr. Allan Strang and Mr. D. W. Anderson, were re-elected, and the auditors, Messrs. E. W. Hunt and E. K. Dymock were reappointed. At a special meeting held subsequently resolutions relating to the registering of transfer of shares, qualification of directors, and the duties of general manager were adopted. Votes of thanks were passed to the chairman and members of tho board of directors and to the general manager and staff. '