NEWTON KING LTD.

Hawera Star, Volume XLVIII, 25 July 1924, Page 6

NEWTON KING LTD.

THE ANNUAL MEETING. The fourth annual general meeting of the shareholders of Newton King, Ltd., was held yesterday afternoon. In the absence of Mr Newton King (chairman of directors), the acting-chairman (Mr S. AY. Shaw) presided. Before proceeding to the general business of the meeting, Mr Shaw stated that he wished to apologise for the absence of Mr Newton King, who left on a business visit to England and America in February last. After arrival in London practically the whole of Mr King’s time had been occupied, in obtaining first-hand information as to the prevailing conditions and future prospects of the dairying and frozen meat industries. Mr Shaw stated that Mr King was at present in America, and was due to return on or about August 19. Reviewing the business conditions prevailing during the past year, the chairman said: “Taking tlie present year as a whole, conditions have shown a distinct improvement over preceding years, and I am thankful to say that the depression which has existed since the slump period is gradually passing away. The greatest immediate difficulty is the scarcity of funds for financing farming propositions. This is a serious handicap to the farming community, and at the moment there is no'immediate prospects of any easing in this direction. The Government are doing what they can through the State Advances Department, hut they cannot possibly hope to cope with the demand. Time alone will right the position: that is, when deflation is accomplished and confidence restored.

“The most cheering event of the year was the continued rise in the price of wool, and the comparatively few farmers who have been fortunate enough to hold their clips reaped a rich’ harvest. To those who had only the current year’s clip for sale the enhanced value came as a great help, and enabled many of them to tide over their difficulties. Future prospects for wool are generally considered to he good’. It is said that there is a world shortage and that the drought in Australia last year depleted the flocks, and some time must ‘ elapse before the latter become normal. The November sales opened with a strong Continental demand at an advance of 25 per cent over closing rates, and each succeeding sale the rise was continuous, being approximately l£d per sale. Commandeer prices were exceeded at the last sales, and the total increase over 1922-23 was fully 75 per. cent, coarse to medium crossbreds getting the most benefit. Our .offerings totalled over 3000 hales, drawn entirely from North Taranaki. Whangamomona, and the Ohura districts. Vei’y good results were obtained with reelassed clips, some of the tops selling; as high as 20d to 24|d, the latter being a record for crossbred wool in New Zealand. “The success of our business is so wrapped up in the dairying industry that a few facts and figures relative to the export of butter and cheese will move interesting and not out of place. Taking the figures issued by the Dairy Division of the Department" of Agriculture for the Dominion, covering the eleven months ended June. 1924, we find there is. a decrease of 9.1 per cent of butter and an increase of 21.1 Deice nt of cheese over the corresponding period of last year, which is made up as follows: Butter—Salted and unsalted for the period 1923-24, 61.213 tons: salted and unsalted for the period 1922-23, 67.330 tons. Cheese—White and coloured -1923-24, 73.810: white and coloured 1922-23, 60,926. Converting these figures into butter-fat equivalent, there is a decrease of 0.12 per cent in butter f-fat production for the 11 months as compared with the corresponding period of 1922-23. No doubt this month’s figures will show, this slight decrease wiped out and disclose a, slight increase in its place. This is satisfactory when considering the high prices'ruling for wool and lamb. One noticeable feature is the switch over of a number of factories from butter to cheese.

“Taking the immediate district of North Taranaki, it is pleasing to note an increase of 647,7201 b of butter-fat. or, roughly, 289 tons, which, measured in sterling at Is 6d per lb butter-fat, equals £48,579. This is very gratifying. and denotes progress. “The market for all classes of store cattle, in sympathy with the prices ruling for beef, has been very low indeed. Weaners of ordinary mixed breeds have almost been given away, and older cattle have only been saleable at about ’ one-third of what they cost to produce. Well-bred Jersey heifers have met with more inquiry, but prices for these have been much lower than those ruling in previous years. The low prices obtainable Jor in-calf heifers and dairy cows lia-ve encouraged fanners to cull their herds far more heavily than usual, and this year many thousands of unprofitable cows have been sent to the works.

“Pedigree cattle, especially Jerseys, continue to he in strong demand, and the various sales held in this season constitute a record both as regard® numbers and also prices. “In spite of the high prices for wool and fat lambs, there is very little inquiry for sheep country. Dairy farms are in better demand, but the difficulty of finance is restricting sales. “Dealing now more particularly with our own affairs, it will no doubt he satisfactory to shareholders that the earnings for the past year show an increase over those of the preceding one. Small though this increase may appear, it must nevertheless be taken as an indication of what may be accomplished when we have left behind us the legacy of the slump. The time when we shall have attained this much desired position now appears to be vory near, and I trust that next year's statement of accounts may disclose a very much bigger improvement than has been recorded in the one now under discussion.

“Jliis year lias seen the completion oi' our new head office buildings, which were referred to in your chairman’s last report. The building was completed about the end of March, and early in April we removed from the old premises in Devon Street, which, for over forty-five years, prior to the formation of this company, had been the centre of Mr. King’s business. >J Mr. H. E. Abraham, who seconded the motion for the adoption of the report and balance-sheet, said: “From an intimate knowledge of the business 1 can assure you that the results achieved to date—such as they are—have only been attained in. the face of great difficulties and through a period of slump and financial crisis, the like ol which cannot be recalled by many amongst us. 1 know that this is now nearly a matter of history, but niv point is that if your directors have been able to pilot the business through these critical times without the loss of capital, it augurs well for the future prospects when stabilisation of values has been effected and norma! conditions once more prevail. “We are essentially a dairying community, and although our back country is carrying mostly sheep, it is not country that has a carrying capacity per acre similar to the better portions of sheep country in. New Zealand. The

holdings are not large enough and the country is not suitable to run large mobs of sheep. “I. would isay that the average hack country farmer’s holdings would be from 400 to 500 acres in grass, ami consequently, when a settler is only able to graze 300 to 400 sheep, the rise is not going to affect him like it would if he had more land, land in a like manner more sheep. Yon will remember that the slump in dairying products did not come until a good deal later, and consequently many of the farmers, as they could see no daylight ahead for sheep, changed over to cows. In many cases he bail to erect milking machines and to pay high prices l’or his cows and sell his sheep at low prices. Consequently, when the drop came in dairying, he was in a very much worse position than ever. Another serious result was that directly the sheep were taken off and the cows put on to all the best feed, the property immediately .started to deteriorate.

“The prices for butter and cheese have been running in the vicinity of Is. 4cl to Is 7cl. Those are not had pi ices, but the trouble, of course, is that so many farmers are farming land which is mortgaged too heavily, that these prices only allow them a bare existence.

“As has been stated by our chairman, ,a fact which is known all over the country, the Government proposes to; lift the moratorium in December next. Most financial circles agree that it. should be lifted, and that- it is , a wise move, but the effects may be farreaching, and it seems inevitable that hardships will occur. The signs and indications for the future look ex. cellent for wool prospects, but the prices for butter and cheese do not look quite so hopeful, and it may be necessary for the dairy farmer to accept slightly lower prices than those ruling at- the present time.” Following MrU Abraham’s remarks there was a general discussion upon the directors’ report and statement of accounts, after which they were unanimously adopted. The following directors retired this ’ Vlz -; Messrs. S. W. ’Shaw, \Y. Healy and J. H. Ashton. The chairman said these gentlemen were eligible and offered themselves for re-election, and no other nominations having been received, he had much pleasure in declaring them duly elected -for a further term. ' Mi. Hugh Bailey was re-appointed aU rp or * or .^h e ensuing year. The meetijig then terminated with a hearty vote of thanks to the directors and staff for their work during the past year.—News.