EGMONT BOX COMPANY.

Hawera Star, Volume XLVIII, 27 August 1924, Page 6

EGMONT BOX COMPANY.

ANNUAL MEETING

The eighteenth annual meeting of the Egmont Box Company, Ltd., was held at Eltlmin yesterday, when Mr J. B. Murdoch presided over an attendance of about 35 shareholders. DIRECTORS’ REPORT.

The directors’ report- was as follows: The balance carried forward is £2416 9s od, after allowing the sum of £9225 Os 5d for depreciation and exhausted bush. It will be noted that the Ohura bush rights mortgage of £5790 was paid off during the year; 345,100 cheese crates were manufactured and sold last season. This is the largest number ever turned out by the company in one year. Butter boxes sold numbered 228',968, a decrease of 124,935 compared with 1922-23. To conserve timber and to allow of butter boxes -being sold to shareholders at a lower price your directors propose to have as many as possible manufactured next season out of f-inch timber instead of A-inch, as at present. These boxes would require to be wired when filled. The feasibility of obtaining supplies from Sweden is also being thoroughly investigated, and your directors hope to have something definite to place before you in this connection at the annual meeting. The company has sufficient stocks of white pine timber in view to enable it to fill the requirements of all its shareholders for both boxes and crates this coming season. It is with regret that your director^ | have to record the untimely death of jMr J. Wooldridge, who was appointjed a member of the board in 1918. Mr |W._ C. Green, chairman of the Rahotu j Dairy Co., was appointed to fill this j vacancy. Messrs Murdoch. Morton, | and Brown retire by rotation. and, j being eligible, offer themselves for re- • election. An election will be held at it-lie annual meeting to fill an extraj ordinary vacancy caused by the resignation of Mr T. A. Bridge. CHAIRMAN’S ADDRESSS/

Speaking to the report, the chairman said the company had passed' through a very successful year. A high standard of efficiency !]ad been maintained, and on no occasion had the supply of boxes or 'crates been insufficient" to meet the demand. The policy of the company was to conserve its forests as long as possible, as it was being found increasingly difficult to secure areas of bush containing as great supplies of white pine. Generally the bush was interspersed with hardwoods. It was also very difficult to get bush where the timber was easily accessible, which meant that millers had to go further and further bade. Every opportunity to secure more hush for milling was being carefully watched by the company. *

During the year, continued the chairman, a representative had visited the South Island to inspect West Coast timber resources, where it was found that supplies of pine were small and scattered, while the best sources were found: to he practically inaccessible. It was also found that it-- would he unprofitable to secure timber from there because shipping was so irregular, and unless a great quantity was available a regular boat could not be secured. Most of the- pine at present was being shipped to Australia by boats securing return cargoes. In the chairman’s opinion the company would have to look to the North Island for all its supplies of pine. It was thought, proceeded the speaker, that it might be possible to obtain cheap supplies of Baltic pine, and the company had been in touch with a representative for Swedish white wood. The chairman said he had seen a shipment of the timber 1 when in Auckland, hut it had been badly handled and affected by heavy seas, and was not a good sample. Judging from specimen samples he had seen since he thought it might be a good proposition to arrange for a shipment m order to give shareholders crates as cheap as possible. The worst feature of the timber was that numerous small knots were easily pushed out, which made it unsuitable" for butter boxes. A considerable quantity would also have to be bought in order to get a direct boat to Now Plvmouth and obtain cheaper freight. The Swedish people, however, would only deal with a 1000-ton lot, which was too great a quantity to have to store owing to the timber being susceptible to moisture, which would result if stored for any length of time in mouldy timber. The consignees would only guarantee putting the timber on the ship dry, so that the company would be entertaining a big risk in undertaking shipment. As a trial a small order had been given, but this, being of insufficient quantity, was not acceptable, and consequently the proposal had not gone beyond that. It was unfortunate, said the chairman, as he thought it would have overcome a big difficulty in the supply of pine and provided cheaper boxes and crates.

The company, said the chairman, was out to make boxes as cheaply as possible, and they were being supplied at the lowest rate possible on the present cost ol : timber. So far as the manufacture of white pine into boxes was concerned, there was not much profit in it. Tie had heard of firms who supplied boxes cheaper than the company, but the service which the Egmont Company gave was undoubtedly the best dairy companies could obtain. At the same time the chairman felt that he would like to see a cheaper article supplied, but unfortunately at ’ the present time it could not be done. Tiie position of the company had materially improved, but it still had the old millstone of the Tongariro Company around its neck. He had hoped to have been able to inform shareholders this year that they had been relieved of the burden, but the company was still in the same position as 12 months ago, and was not able to gei; the capital to push on its railway to tap its timber resources. Speaking with regard to the Tongariro Company and its ability to meet its obligations to the Egmont Company, the chairman said that the whole thing would be settled in October, when it would be known definitely whether the money would be available to build the railway. The representative of an English firm interested was on his way to

New Zealand, and if in his opinion the railway to Tauno would be a payable venture the scheme would he pushed on. if built the line would open up a very valuable totara belt, one of the best in Now Zealand, of which the Egmont Company had a big area. There was enough totara in that place to pay off all the obligations of the company. If the Box Company had had no obligation to the Tongariro Company it would have been now in a really good position, stated the chairman. They were, however, making provision to meet the position. Proceeding, the chairman said the company was still operating at Ohnra and Kaknhi. Operations bad. not been extended during the year, but cutting results had been very satisfactory. The company had bought approximately 3,000,000 feet of white pine from outside source*: to meet its requirements. and 4.600,000 feet of timber had been made into boxes and crates. A considerable amount of rough

timber had also been made up into other classes ol packing cases. At the present time the company was pushing on with a tramline into a good patch of pine and totara bush. The profit on totara, lie said, was better than that on pine, so that with the profits on hardwoods the company was enabled to buy pine for its requirements. During the year 2,700,000 feet of hardwood had been sold. The chairman then proceeded to deal with the various items in the balance-sheet, which he said reflected a very satisfactory state of affairs. Many items had been heavily written down, while an amount of £12,000 had been paid off in the year. Taking everything into consideration, the company had done remarkably well and showed a good profit, and unfortunately it had had to pay income tax to the amount of £1341, while last year it had only been £6O. The department would" give them no relief in this direction, treating them as a private concern, even though shareholders did not put the profit in their own pockets. The chairman then formally moved the adoption of the report and balance-sheet. Mr Marx asked whether the company could work in conjunction with another large company in obtaining supplies of Baltic pine if such proved suitable. The chairman replied that unfortunately they could not get anything suitable at present, but he assured the shareholders that the company was not after New Zealand Dine if the other suited better.

A shareholder mentioned that his company had been offered boxes cheaper than the Egmont Box Co. could sup ply them. Mr Gane said that the private companies would undersell them every time. The white pine was no good to them, and consequently it paid them to sell at siightly less than the co-opera-tive company charged. Air J . s. Tosland asked whether some oi tiie white pine being exported from the \A est Coast could he diverted to New Plymouth. The timber was being sent to Australia, and it was a question of conserving the supply. The chairman replied that only this last week they had met the Government on this matter, and the Department realised that while it would he well to conserve the supply, it had to be recognised that white pine only grew on the good land, and also if the bush round it were felled the' pine subsequently deteriorated. It would therefore be necessary to allow the timber growing with’ the pine to stand. Furthqy, the company could not afford to buy white pine from the West Coast at the price quoted. However, he noticed in a recent report that the white pine in Australia was taking the borer, in which event he would not be surprised to see the Australian market go to pieces and, the timber become available in New Zealand at a more acceptable price. Mr Vickers asked what quantity of timber had been milled by the company during the past year and at what cost.

The chairman replied 2,000,000 ft. of pine and 2,342,000 ft. of hard wood. The cost of milling worked out at 14s 6d at Ohura and I7s 7d at Kakahi. In reply to a. further question by Mr Vickers, the chairman said that the hardwood brought the company 7s a hundred more than they could buy the white pine for. A shareholder asked if the directors bad made any inquiry as to the financial standing of the Tongariro Company at the time the agreement was made. The chairman replied that at the time no one anticipated what was going to happen. The company had, at the time, no doubt as to the Tongariro Company being able to fulfil their obligations, but owing to the war matters did not turn out as they had anticipated. ALi - Sutton referred to a Manawat-u firm which could produce boxes cheaper than the Eigm'onf Company. He wished the directors would make the same, offer. Perhaps they could charge more for their hard wood, and also supply boxes of a less thickness.

The chairman replied that they liad offered boxes at Is ild. if the Egmont Company did supply thinner box wood it would mean a saving of 800,000 ft. of timber peir annum. Tiie Dairy Division ■had said that the lighter boxes were suitable if wired, but the wiring would cost another penny. The chairman •also mentioned that a certain miller on the Main Trunk was selling at Is <d. The same man happened to run short of pine some time ago, and the Egmont Company supplied him with a certain amount. The chairman said that at the price they supplied this miller it was impossible for'Torn to sell at Is 7d and show a. profit. He knew how much that gentleman was losing. Shareholders were not to think that the company was out to keep prices up. As a matter of fact they were: out to keep them down, but they were not going to run at a loss, it was worth something to the dairy companies to have a regular and sure service in the matter of their supplies, and there was no miller who keot the supply of timber on hand that the Egmont Company did. They had 3,062,UOOft. of timber on hand at present to supply this coming season's orders, which meant that with another 1,600,000 ft. they would have sufficient to meet the whole of the coming season’s requirements—that was basing this season’s requi remants, on last season’s supply. in reply to Air Green, the chairman said it. was questionable whether the amount of prepaid royalty paid to. the fongariro Company would be covered by the quantity of limber supplied, the boundaries of the iand m question were altered later by tiie Native Land Court, and instead of the Egmont Company cutting the area tiie;, thought they were going to cut, tinu eirea was cut down considerably. Gt course they would have a claim" on tiie Tongariro Company, but it would be of little use adopting that attitude with that company’s financial position m the state that it was. Mr Vickers thought that with the quantity of timber that was being cut i4.6ijO,6ililft.) there must lie something ivroug with the system which allowed of tiie two mills producing so • mall an amount. Perhaps wages were too high. The chairman replied that the labour employed made no difference. There must he bushmen, tramwaymen, etc. The two mills were 4.0 miles apart, and were only equipped for a little i:i excess of the quantity they were i utting. He had discussed the question with millers, and they were all ( agreed that the small mills were more preferable to the large ones. The Egmont Company bad to pay the award rate of wages.

The adoption of the report and 1 al-ance-sheet was seconded and carried. Air Sutton withdrew his nomination for a vacancy on the directorate, and the retiring directors. Messrs Murdoch, Morton and Brown, were reelected unopposed.

An election to fill an extraordinary vacancy on the. directorate resulted iii Air E. A. Collins lieing elected. Mr H. A. Lennon was re-appointed auditor at the same remuneration as last year. Mr Green considered that a sliareholder in one dairy company, aho vas representing that company at the Egmont Co.’s meeting should he entitled to hold the proxy of another shareholding dairy company. He had been

asked to represent two or .three dairy companies who were not. represented at the meeting by a shareholder, and cou-

scquontly on the chairman's ruling these companies were disfranchised. The chairman said it was a matter ol company law. and the company had had advice on the matter from a K.O. A daily company could appoint any one ol its members or officers to be its proxy, but it could not appoint a member or officer of another company to act lor it unless such member or ollicer was himself personally a shareholder in the Box Company. Those of the founders of the company who were personal shareholders were not taking advantage of their position. Smely a company could pick out one mau amongst its shareholders who was willing to travel and represent them. Air Green said that the chairman had not him if he were a shareholder in these dairy companies who wished him to represent them, but the chairman contended that it rested with Air Green to say if he were a shareholder. The meeting then closed with a vote nf thanks to the chair