FARMERS’ MEAT COY.

Gisborne Times, Volume LXI, Issue 9697, 29 December 1924, Page 2

FARMERS’ MEAT COY.

SHAREHOLDERS’ ANNUAL MEETING. .

Tiie shareholders of the Poverty Bay Parmer s' Meat TA>. held their annual meeting on Saturday,- the chairman of directors, Mr \Y r . JJ. By snap, presiding. When the secretary reported that shareholders lidding shares to the value ol“ £38,813 Were present, this being more than a quorum, the meeting was proceeded with. The annual report was as follows: ‘■The final adjustment of the company's affairs with the .National Panic of New Zealand, who sold the works to Yestey Bros, in October, .1923, at a price which was a sacrifice value, has resulted m certain of your directors having to become responsible for about £68,200 to liquidate the balance due to the-bank after the sale had been carried out in terms of their joint and several guarantees to the bank. As against this the directors anticipate that a good proportion of the outstanding sharemoneys, herein after referred to, will bo recoverable in the near .future. The • directors very much regret having to report that through the hostile action of the New Zealand Meat Producers’ Board, the ship Admiral Oodrington was excluded from last year’s freight contract. This prevented your directors from bringing the Admiral Codrington to New Zealand to take part in the New Zealand trade, but fortunately they were able to arrange certain freight contracts with Argentine which has enabled the ship to earn sufficient to pay interest on the mortgage, of jtiod,oUo upon lier and keep all otherdisbursements paid in connection with her, leaving according to the latest advices received from Scotland, a credit balance towards her future working; and this after putting the boat in thorough order in view of her coming into the New Zealand trade. The directors consider that had they been allowed to bring the boat to New Zealand, a very much more substantial profit would have been derived than is the ease at present; and again this year while the Meat Board had agreed in writing that the boat should be included in future contracts, they -have net fulfilled this promise and are at the present tune refusing to allow: the boat ito come into tiie New Zealand trade. This is a very serious matter, which makes it extremely difficult for your directors to gauge the future prospects in connection with the boat; and the position is further aggravated by the fact that a considerable expenditure had been incurred with the view, to the boat coming to New Zealand, as there is no prospect of doing any freight business with. Argentine at the present time. Tno directors feel that there are other influences at work with the Meat Board which are acting prejudicially to the interests of this company. The directors consider that if they had been' allowed to bring the boat into the New Zealand trade and keep her running until such time as she could have been profitably sold at a reasonable figure it would have wholly relieved the directors of the amount for which they are responsible to tiie bank under the guarantee and in all probability have given some reasonable amount that would have been available for distribution among the shareholders, but in view of the Meat Board shutting the boat out of New Zealand trade it is impossible foi the directors to forecast, what may happen in connection with the boat.

In accordance with the resolution of the shareholders that was passed at the general meeting on the 2nd October, 1923, the chairman endeavoured to obtain legislation to stop Vestey Bros, and other similar combines from owning or operating freezing works in New Zealand, and the directors regret to say that his efforts in this direction failed by the narrow margin of two votes. It is hoped, however, in the interests of the Dominion as a whole, that at. a very early date the necessary legislation will he made law in this respect. in the last annual report, your directors recommended that it would be advisable to reduce the capital value of the company so as to.make a substantial reduction in the annual license fee, and in the meantime to keep the company in existence until matters were further settled. As regards this, the directors desire to state that the shareholders wore good enough to pass the necessary resolutions to reduce the capital value of the company, but through representations made to the Registrar of Companies, he agreed to waive the annual license fee, with the Iresuit that the directors did not apply to the Court for the necessary leave to reduce the capital of the company as required by Company Law.., and havo so far taken no further steps in that respect, which they hope will not be necessary. Consequently in the meantime, the resolutions of the shareholders have not hern acted

upon, and the capital of the company has not so far been finally reduced. The retiring directors are Messrs AV. D. Lysnar and Hy. Williams, .who being eligible, offer themselves for reelection. During the year Mr E. It. Black resigned his seat on the directorate. The adoption of the directors’ report which was as follows was moved by Mr AY. I). Lysnar:— The directors have not drawn up a balance-sheet, as the company is not trading in New Zealand, and it has been arranged that while the company is not trading in New Zealand the annual license fee will not he charged in the meantime, which is a considerable saving to shareholders. Ho'.vovc3’, the directors are desirous of complying with the regulations so as to keep the company in existence in the meantime in order to protect the interests of the shareholders as far as.possible, as well as to make the most profitable use of the s.s. Admiral Ccdrington, pending her sale to the best advantage when the selling value of shipping has improved, and they desire to acquaint you with the position of the company as far as they are able under the circumstances at this juncture. The position of the company is substantially the same as stated in the last annual report, with tlie exception of the share capital (which has been altered by the calling up of £10,400 10s of uncalled capital) which now stands as under: Nominal capital, 20,689 ordinary shares, 8086 shares, 3082 preference M 3” shares, 28,971 shipping shares—--60,823 shares at £5 each, £304,140, less calls in arrears (17/11/24) £26,870 8s 3d, paid-up capital £277,269 11s 9d. Regarding the balance of unpaid calls, in accordance with the consent of the directors, the National Bank

is ' entitled to a further £3202. or thereabouts, and as regards the I)tu-

lance of £23,667 —26 per cent, is to go to the directors, which the directors propose applying in reduction of moneys due under the guarantee, tinless it becomes necessary to utilise any of it" for tho protection-of the Admiral Codrington or other expenses incurred, by tho directors in the interests of 'tho company. _ ' The directors have now received a statement from the receivers, made up to tho 17th November, 1924, covering their operations in connection with the affairs of the company since their appointment, showing that they have received on behalf of the company during this period the sum of £46,388 8s 4d, part of which has been paid in various disbursements and the balance of £32,500 transferred to the National Bank of New, Zealand, Ltd., leaving a", credit of £964 17s lOd cash in' bank, to the credt't of the receivers. There are also outstanding items in connection with consignments and advance accounts totalling £5892 14s still to bo collected.

Tho report was unanimously aclopOn tho motion of Mr G. Coop seconded by Mr J. W. barker the retiring directors Messrs W . X>. Lysn.i and H. Williams wero unanimously re-elected. Mr H. W. 'Wilson moved the following resolution : “That • this meeting of shareholders of the 1 orci'ty Bay Farmers Meat Company, .Ltd., desires to record its emphatic protest against the action of the Is./. Meat Producers’ Board in again excluding the Admiral Codrington from the N.Z. freight contract, thus preventing this company’s ship from entering the New Zealand trade, to the serious detriment of the shareholders of this company. It also desires to call upon the New Zealand Government to see (a) That all trusts and combines aro absolutely excluded from owning or working freezing works in New Zealand; (b) that legislation is provided so that the stock owners of this Dominion directly elect tho representatives on the Meat .Producers’ Board; (c),that the mercantile representative on the Meat Board be done away with.” The motion was seconded, by Mr Thompson and after some discussion in which fear was expressed at the methods being adopted throughout the Dominion by trusts which were considered to be detrimental to the interests of the producers in that if they were allowed to continue competition for stock would be restricted, the-motion was carried unanimous*].y.