SATISFACTORY YEAR

Gisborne Times, Volume LXVIII, Issue 10753, 26 November 1928, Page 2

SATISFACTORY YEAR

G.S.F.M. AND M. CO’S OPERA- ■; TIONS

ANNUAL MEETING

General satisfaction with the results of the. Gisborne Sheepfarmers’ Frozen Meat Co. Ltd. "is operations during the last year was expressed by a large number of shareholders who attended the annual meeting in tho City. Hall on Saturday. The. meet.-, ing Was presided over by the chairman of directors, Mr J, W. Nolan. ‘ CHAIRMAN’S. REVIEW."T '*

“The freezing charges have again been reduced but whether or no such reduction is to continue, and possibly , be' further reduced, depends entirely on the loyalty of the shareholders,” remarked the chairman. “It is certain, that unless the number of stock is forthcoming, we cannot continue to freeze at; the proposed rate. Given the quantity we can continue to work at . low. rates and make rebates- in addition. A great majority of the shareholders quite overlook, or have forgotten, the purpose for which these works were built, and this company started, which was to enable you to freeze and ship on your own account. “How many of you do *so?” he asked, “Not many; though each year the number is increasing. Those who shipped last, year obtained, an average of 5s 6d a carcase above local market. Personally, 1 cannot understand why more of you do not ship on your own’ account. This company will advance 75 per cent of the “on hook” price at time of killing. It has the same agents, in England to handle and.-.dispose of your stuff as the exporter to whom yoii sell, and arrangements have been made whereby your proceeds twill be cabled out .immediately ou sale. In one instance last season the returns were paid over within six weeks of shipment from Gisborne; It is, of course, a matter of indifference to this company whether you sell or ship on your own account so long as it gets the freezing.” Ho impressed on them that if they did sell they should do so subject to the condition that the stock is frozen with their own company and watch that it was so frozen. He suggested for consideration, the advisability of having lambs ready for a November shipment. “I understand that November shipped lambs realise at least 2s 6d per head more than later shipments.” He added that a special boat •: picks up. lambs from Napier for the Christmas market and no doubt would call here- wore sufficient offering. Provided the numbers were forthcoming the company would be prepared to handle and freeze for a special shin-, ment and arrange for a boat. “The farmers, of course, know better than! I do what can be done in this direction, Imi the proposition seems to me to be well worth considering.

HICKS BAY. “The directors have, since its inception. been carrying a heavy millstone in the shape of the Hick’s Bay works. Year in and year out during the time these works were operating it was one continual anx-, lety to obtain' sufficient stock to make them pay *wen working; expenses. Instead of increasing, tlie supply gradually decreased and to such an extent as to make it impossible, to continue working except at a very heavy loss. Under these circumstances. it was decided to close the works whieli was done three seasons back . There being no improvement in the outlook, the directors, afterexhaustive enquiries and full consideration, and seeing no prospect of the district, ever supplying sufficient fat stock to make works in that local-, ity a payable proposition, particularly so with the improved Toads and means of transit communication will* the Tokoma.ru works, decided to proceed to dismantle the works. “It must he recognised that the depreciation in works of this description, standing idle for a lengthened period, is a very heavy item, to say nothing of the expense of necessary caretakers to look after them, and a further inducement to dismantle now was the fact that a considerable amount of reparation work was required at Tokomaru, and, with the advent/ of electricity, extra machinery at Kaiti for both of which a large proportion of the machinery at Kick’s Bay was eminently suitable. By using this at these works the company, was saved the expense of purchasing new machinery. The timber and iron removed from portions of the building is being disposed of locally at suitable prices. Some of the cottages have been sold, those remaining being occupied at satisfactory rentals. Some of the land has also been sold and it is proposed to; dispose of the balance, at, it is hoped. satisfactory prices when opportunity offers. The concrete building has, in the interim, been leased to the Mntakaou Harbor Board, and the store, stock and fittings disposed of to the Te Araroa Trading Go.”

“COMPANY MAY BE JUSTLY

PROUD.”

In moving the adoption of the rereport and balance sheet, Mr. Nolan commented that it was pleasing indeed to be in a position to congratulate . shareholders on the result of the year’s operations. When he last addressed the shareholders he had pointed out that the outlook for the coming season was good and that the director's anticipated an improved output. That this; was correct was . evidenced by the balance sheet, which he suggested justified the stabilising and conservative policy adopted by the directors, . j “it is needless for me to reiterate in full what the company has accomplished during' the past few years,” continued Mr. Nolan, “which, with perhaps the exception of last season, were all slump' years. Rut I can tell you this; that the performance is one of which any company, situated ( as this company was, can justly be proud. You. have reduced .your, bank overdraft from £297,000 to £55,000. practically built new works at lvaiti written off heavy depreciation and innumerable bad debts; paid off other sums and during the whole of that time have stood up to a steady, annual loss of roughly £20,000 a year at - -Hick’s Bay. alone. After today, however, on the carrying of the proposed resolutions for reduction of capital, the directors hope to be in the position of being able to talk of these losses as ancient history. True, during this period of stabilisation, shareholders have not been- receiving any return on their; capital invested but they;.-must remember that it is very' difficult indeed, if not ..impossible. to retain an apple if you eat iti “The company commenced the last financial year with a. bank .overdraft of £114,883 ;15s sd. This,, at the end of the yeay, stood at £55.507 13s sd—a reduction of, £59.376 2s. 1 . “During the year £110,987, was expended in ’repairs and renewals and £1,332 written off cost of floating debentures. Open account show a slight ;Hici’ease and secured accounts a decrease. , '

“Though there has been a considf erable,. increase . in turnover during the’year, in all department?, our expenses were "decreased by the . .sum 0f£3,686 10s attributable, largely, tp the completion of the building programme at Kaiti works. On the'ad-vent-of electricity which we hope tb hawo' next year. » the directors are still' locking" forward; to. ia. further r&'duic&ioa ' in.' tost- of working. ■" •: . t' -'teWf-s? V. v; >:•%

r ‘Tlm killings at Kaiti show a total increase of equal to 61,216 carcases. Tlie most nqticeable feature, in this >vas the increase in- Iftnibs sortie 37,282, whilst sheep , showed a decrease of 5719; cattle,' naturally following on the previous dry season showed an increase, this being 2574. ' , “Though tlie killings _at Tokomaru, taken on a sheep basis, were only slightJv below last season, there was a total shortage of killings of sheep and Jambs of 28,263 carcases ; cattle, however; showed a very considerable increase. The shortage, in . Mleep at; both works was, no doubt, accounted for largely by the early sales of store sheeip to supply demands outside the district.. ■■ ' ' ,\' ; K ' ,

../‘The increase in tlie quantity of fruit handled was considerable. 21.160 cases being handled „as against 4.460 the previous season, j This, no ddribt. was largely brought-about owing to a heavy shipment direct to London instead of being forwarded lo"' Wellington for shipment. •„

“There was an' increase in butter handled of some 3.4,160; cases. The directors; felt that a . great number of tlie shareholders did not take .sufficient' interest in the company to really know what they possessed and lie suggested that when the works were in . operation a visit to Kaiti was well worth while. They would then see how the stock was treated and what facilities there were for doing so. Should the shareholders at any time desire to do so, provision would be made for showing them over the works. “The work of tlie staff had been up to its usual high standard; concluded Mr. Nolan, “and one is perfectly safe in saying that without the wholehearted interest and co-opera-tion received from it the balance sheet would not show the result it does.”

The motion was (Seconded by Mr A. H. Wallis who expressed the opinion that the shareholders had to thank the chairman and directors for what had been done. Had it not been for the close attention paid by the chairman to the company’s l affairs they would not he in the position they were that day. Messrs J l ’. W. Nolan, F. Hall, E. M. Monckton, and W. G. Sherratt, retiring directors, were re-elected unopposed. A vote of thanks to the staff was moved by the chairman who said be had worked with staffs for fifty years and had never known a letter staff each of. whom took a direct and personal interest in his or her work. He regretted the company was unable to grant the employees a bonus hut hoped to do so in the future. Mr W. G. Sherratt warmly endorsed these remarks and the motion was carried unanimously.