DAIRY FACTORIES.

Hawera Star, Volume XLVIII, 21 August 1924, Page 3

DAIRY FACTORIES.

MANCATOKI CO-OP. DAIRY CO. ANNEAL GENERAL MEETING. Aproximately 100 shareholders were present at the twenty-fourth annual general meeting of the Mangatoki Co-op. Dairy Co., held in the Mangatoki Hall yesterday. Air. Jacob Alarx (chairman of directors) presided. The meeting was said to be the largest ever held by the company. CHAIRMAN’S ADDRESS. In moving the adoption of the report and balance-sheet (previously published), the chairman said that shareholders had been supplied with a comprehensive and fully detailed bal-ance-sheet setting out the past year’s financial operations. Before dealing with this, there were several important matters to which he wished to draw attention. Principal among these was the unsatisfactory service rendered by the shipping companies. The company’s last consignment of cheese was just about shipped three months after manufacture. In all, they hatl cheese on forty-eight boats. From the riiiddle of November, New Zealand had over 10,000 tons of cheese, or 140,000 crates, per month available for shipment. An analysis of the actual experience of the past season disclosed the following: In November, 4 ships carried 28,000 crates; December. 4 ships 93,309 crates; January, 2 ships 41,315 crates; February, 9 ships 264,781 crates. The latter was followed by a. heavy slump in prices from the peak price of 108 s to 82s or, stated in butter-fat price, from Is lOd to Is Had the shipments been averaged, much better average results would have been secured. The Control Board had this matter in hand, ami there was every prospect of getting better deliveries in the future. * •

During the past season the directors, after full discussion and consultation with their auditor, solicitor and Commissioner of Taxes, Wellington, had the company’s property, land, buildings, machinery and plant, valued by independent find competent valuers. Their values showed £13,578 over hook values. That sum had, therefore, been placed to special reserve fund, and of it £6229 19s 2d had been written off the shares in the Taranaki directors 5 proportion of the guarantee in the New Zealand Meat Packing and Bacon Co., Ltd. £147 had been paid up in the New Zealand Rennet Co. and £852 5s Id off the Bgmont Box Co.’s shares.

During the year 2560 shares held by non-supplying shareholders had been surrendered. Of these,’ 1909 had not yet been re-allotted. An important problem before the Taranaki co-op. dairy companies was the active canvassing ,of the Taranaki co-operative suppliers by proprietary cream purchasers. While there had been little to choose latterly between butter and cheese returns, everything now pointed to an increasing disparity from now on in favour of cheese. The recent British-R.ussian commercial treaty with increasing outputs for every buter producing country indicated a more serious fall in butter prices as against cheese. As a further outcome of the revaluation, a; special meeting of shareholders held in April had rescinded the resolution of the last annual meeting appropriating £d per lb butter in reduction of the New Zealand Bacon Co. share losses, and passed a resolution that Id, amounting to £1370, be paid to 1922-23 suppliers. This luul been done and relief from payment of £172 imposed by the Taxation Departmenthad been obtained. The average quality of the company’s cheese, butter and whey butter had been exceptionally good and reflected great credit on the staff. It tad been stated that their pay-out would be comparatively low among consigning companies, but when the final returns were received he considered they would show a more than favourable comparison. Wages and fuel appeared to be high in comparison with some factories, but the extra cost- entailed in fuel and labour for pasteurising had to be taken into consideration, and on account of the higher grading the extra expense was warranted.

Air. C l . E. AlcGiiinness seconded, and on the motion being subsequently put to the meeting the report and balancesheet were adopted. SHARES DEPRECIATED.

Implying to queries concerning the sums of £147 14s lid and £852 5s Id written off the New Zealand Rennet Co. and the Egmont Box Co. shai-ex respectively, the chairman said the iormer had not been a paying concern and the latter had not paid interest for years. The action taken was necessary to stabilise the Mangatoki Company’s position. CARTAGE COSTS. Referring to cartage charges and the cost of maintaining the company’s motor lorries, Mr. D. L. A. Astburv suggested that the company might be better off if the lorries w 7 ere sold and the contract cartage system were adopted. He understood this had been done by other companies with satisfactory results. The chairman stated that the company’s lorries had carted approximately 4000 tons last season. Consideration had been given to such a proposal. but, on a comparison of the respective costs, it had been found just as cheap as well as a great deal more convenient ior the company to retain the services of its own lorries. Mr. T. R. Anderson considered that the maintenance charges were fully justified. Amongst other things the (uel bill would have been much greater ii the services ol the company’s own lorries had not been available for cartage. Comparing the cartage charges with those met in 1914, Mr. J. Marx, junr., pointed out that whereas these had been only doubled, other maintenance charges had increased more than fivefold. This indicated that there was not much chance of economising in cartage costs, and as the proprietary concerns woidd he competing with the company this season, they must not risk unnecessary increases or take the lorries ofl the road. Other factories had been compelled to get lorries in the middle of the season, and in view of this it woidd be most unwise to get lid of the company’s lorries. GENERAL MA NAGER. Mr. Asthury asked if the directors had considered dispensing with the services of the general manager and making branch managers directly responsible to the directors and having all buying done through tlip secretary. He estimated that, including salary, house and recpusilos and other expenses, the general manager was costing the company approximately £7OO per annum. While he had no complaint to make against the company’s general manager, whom he admitted had rendered excellent service, ho wished to inquire whether from the standpoint of economy the company

did without u general manager. He thought other factories had decided in favour of the latter attitude.

The chairman said the question had not been gone into by the directorate. Though he could say nothing definite on the matter, he had heard that companies who had dispensed with tlieii general manager had fouud the experiment a failure. As against the system suggested, he though? the geneial manager could save the company a gieat deal more than he cost tlvcmi. Mi AstJ.niry said that the pav-out was not equal to other companies.'”and they should take advantage of any economies which could nossiblv be efteeted. He merely wished to' see the Alangatoki factories conducted "as cheaply as oossible compatible with efficiency. "\Y as it because they had factories under one roof, and ' were thus able to do without a General manager that other companies were in a better position? The chairman considered that Alangatoki was well up amongst other companies. Last yea"r some of the other companies had undoubtedly benefited by changing from cheese to butter in the middle of the season and the advantage of a market which ultimately proved favourable. He had been told that other companies were ahead of Managatoki, but on investigating the balance-sheets over a period of four years had found that Mangatoki had been l?-3d ahead of the others. However, sentiment had no place in business, and if it could he proved that the company would be better u ithout its .general manager they would be right in dispensing with the office. In reply to a supplier, the manager intimated that the main factorv also had a branch manager. ELECTION OF DIRECTORS. Prior to the election of directors Mr Astbury asked the chairman if it was intended to adhere to the understandlng arrived at by a number of suppliers with a committee of directors , , effect that proxies from dry shareholders would not be used. He undei stood that a number had been received.

The chairman replied that proxies tiom dry shareholders had not been canvassed for, but as four had been received he had no option but to accept them. Non-acceptance of them would invalidate the election. In a. brief reference to the 24 years’ operations since the company had acquired the business from the’Loan and Mercantile Company, the chairman remarked that despite such difficulties as were presented by the 1913 strike, the outbreak of war in 1914, apd later the ninuenza epidemic, a continuous service and a pay-out which, would bear comparison with any other similar concern in Taranaki had been, maintained. This constituted ail excellent- record, reflecting much credit on the staff and officials.

Messrs D. L. A. Astbury, E. J. Gifford and G. Preece were appointed scrutineers during the election. The ballot resulted as follows: —Messrs C. 635, Jacob Marx 623. and T. R. Anderson 563. Fourteen votes were informal. As only three were required, the three first- mentioned were duly declared elected.

Suitable responses were delivered. On the motion of the chairman, a vote of thanks, carried by acclamation, was .accorded to- Mr Anderson in appreciation of his services on the directorate.

At a- subsequent meeting of directors Mr Jacob Marx was unanimously re-elected chairman. The chairman’s remuneration was fixed at £125 per annum, and the directors’ at 15s per meeting day. Mr H. B. Burdekin was re-appointed auditor at- an annual remuneration of 35 guineas. GENERAL. In answer to an inquiry concerning the comparison of the company’s land values, as arrived at by the party referred to by the chairman, witli the county valuation, the secretary intimated that land at Mangatoki had been valued at £25 per acre,'at Mfitapu £45, at Kaponga £3O, and at Mahoe £ls. These values were below the county valuation. Replying to a complaint! that manufacturing costs to the Mangatoki company were higher than a. neighbouring company, the chairman stated it was impossible to make fair comparison without taking everything into consideration. Pasteurisation was carried out by Managtoki, but, while it increased manufacturing costs, it resulted in better quality. In answer to an inquiry from Air C. Willis as to the reason for the practice of carting coal from Elt-ham to Matapn when there was a railway depot at the latter piaee. the chairman replied that railing the coal direct to Matapn had been tried. The manager fMr~E. H. Reeve) explained that, taking into consideration the extra freight to Mat-apu and the demurrage invariably charged, it had been found cheaper to take delivery from Elthain.

Mr Astbury raised a further query concerning the action of the directors in discontinuing the policy of paying out- the full amount for butter-fat. Only Is had been paid in June. The chairman replied that this would be made up to Is 6d. In reply to Mr Ale-Guinness, the secretary stated that the amount being paid out that day was £SOOO. There would be an additional £7OOO to come, the pav-out so far being Is 4.4k1. Air Alaix (junr.) asked what steps were being taken by the directorate in view ol the activities of proprietary dairy companies in the district. The chairman replied ftiat dairymen in the district had been notified by circulai that if home separation wore desired the company would accept the cream at ruling The matter would receive further consideration by the directorate, and would, he thought., be taken up by the l , 'etloration. 1 he meeting concluded with a vote of thanks to the chairman of directors, the directors and staff. Speaking to the motion. Air T. Perry made eulogistic reference to the services rendered bv the chairman. CARDIFF COMPANY’. Following is the annual report to be presenter] to the shareholders of the Cardiff Dairy Company: The directors have to report a fairly successful season. The production exceeded last season ’s, which, it will he remembered, was a record for the factory. The market has been subject to numerous fluctuations. Some months ago the prospects of a reasonably good pay-out appeared anything but bright, but prices improved and are still firm. Both cheese and butter have been consigned, with the exception of 998 eases of cheese and 85 boxes of creamery butter. The balance available for distribution is approximately £2910, enough to pay 1.57 d in addition In the Is 5d already advanced. The directors who retire by rotation are Alessrs D. Brunt on, .T. B. Clenmw and D. Shannon, and Air Jos T. Belcher is resigning at the annual meeting. Afessrs Brunton, Clenmw and Shannon are eligible for re-election. It will be necessary to elect four directors. Air Belcher will not be seeking re-election.

Air Bair’s services as auditor are again available. Afilk received 10.051,4551 b, average test 3.90, butter-fat. 397,5291 b, lbs cheese to lib butter-fat 2.0971 b, lbs milk to 11b cheese 9.401 b, cheese (factory weight) 1,057.1091 b, creamery butter 07921 b, whey butter 27,8481 b, lbs butter to 11b butter-fat 1.21431 b, manufacture per Hi butter-fat 2.88r1, other expenses 1.30 d, total expenses to f.0.b., including London exchange, per lb butter-fat 4.2-ld. At the meeting AH .T. T. Belcher will move: “That it be a recommendation that in future interest be paid on all shave capital received at a rate not exceeding 5 pm- cent, per annum.”