SOUTH TARANAKI DAIRYING.

Hawera Star, Volume XLVI, 17 August 1926, Page 5

SOUTH TARANAKI DAIRYING.

RIVER DALE COMPANY. SHAREHOLDERS ’ ANNUAL MEETING. Thirty-eight shareholders were in attendance and sixteen were roprsented by' proxy' at the. thirty-second annual meeting of shareholders of the Riverdale Co-operative Daily Factory' Company Ltd., held at the factory on Monday'. Mr J. S. McKay', chairman of directors, presided. Arising out of the minutes of the previous meeting, .the sefesptary reported that the scheme for the bulk

purchase of manures for distribution to suppliers had fallen through, only four papers having been returned. “1 have to congratulate shareholders on the result of the season’s working, and I think the pay-out will compare favourably with others in the district.” said the chairman, in moving the adoption of the annual report (published on August Iff) and balancesheet, Continuing, he explained that when the accounts were closed, 2280 crates .of cheese remained unsold. For the purposes of the balance-sheet these had been -taken in at S2/6. Since the end of the financial year, 1300 crates had 'been disposed of, leaving 9SO still to be sold. As; the cheese market was firm at present the price realised would probably' be well up to expectations. Owing to the rough spring experienced supply to the factory' had shown a drop "of 12J per cent., and had influenced m slight increase in the cost of manufacture. At the beginning of the season tliree-fifths Of the output, had been sold at a fair price. In future such offers could not !be expected owing to the coming into operation of control. Various opinions had been expressed concerning the probable outcome of the Control Board’s operations, but the speaker could not see any reason whereby the industry should lose through the scheme. It had been reported that the; merchants were oppose! to the principle, but as under control they would 1 reeeive practically the same return asi lit, present, the speaker considered they had no grounds for complaint. In arranging shipping space the board could give much, assistance by ensuring the regularity of

supply and so guarding against the operations of the speculator, who had been on© of the chief difficulties. Referring to- the institution of the superfine grade of cheese, he said that according to reports the standard could not be realised cxee-pt with -pasteurised milk. In common with certain others, the Riverdale, factory had been working with pasteurisers, but a premium on sales as the result could not be pointed to, and the only company which, in the speaker’s knowledge, had previously gained a premium had manufactured 1 without, pasteurisation. In his opinion, however, -the- expense of pasteurisation was justified through the benefits gained 1 in yield. Mr McKay could not endorse the difference of -IcL per lb. between first and second grade cheese, .as proposed, by the Control Hoard. The merchants had regarded -Id to be the maximum difference and in view of their opinion it appeared that the additional amount was not warranted. Referring to tlio coming season, the chairman gave the opinion that the. prospects for cheese were practically on a par with previous results, though on account of the keen -competition lie could not say the same with respect to butter. Concerning wliey taken from the factory, he asked that suppliers would exercise care in drawing only the correct quota in order to ensure that jail would receive the amount to which, they were entitled. He mentioned that good re-

sults had -been received from the goods store, a 10 per -cent, profit having been'realised, despite the- loss of approximately £IOO by theft.' In conclusion the chairman gave a review or the balance-sheet as circulated. The motion was seconded by Mr-E. A. Washer, and carried without discussion. t-lie only question being » request for confirmation as to the proportion of cheese of second grade.. The chairman replied that the amount was less than 5 per cent, of the output. OFFICERS. Messrs F. G. Willeocks, W. Duggan. E. Bourke and- A. Simons were,nominated to fill,tlie three vacancies on the directorate caused bv the retirement by effluxion of time by the first three named. Messrs Willeocks, Duggan ami Bourke were elected. The chairman’s honorarium was fixed as : previously. At a subsequent meeting of directors, Mr J. S„ McKay was re-appointed chairman. Messrs W. J. Tristram and 11. A. Lennon were reappointed as auditors. , ' INTEREST OX SHARES. In accordance with notice, the chairman moved as follows: — “ That the. first paragraph in Ar- , tide 10 of the -company’s Articles of Association dealing with interest 1 p livable on paid-up capital be altered to' read’ —‘ All paid-up capital may . bear interest at a rate not exceeding , six per cent, per annum, to be com--5 puted at the time and in the mans ner following— ’ ”

“Of the nominal capital of 10,000 shares of £1 each Only twenty-one are unallotted, and enough have been allotted for the manufacture from 1,000,0001bs 'of butter-fat, whereas last season only G(35,7391bs were used., ’ ’ said the chairman. “The company has been in the habit of paving 15/- to those wishing to dispose of. shares. Giving the shares this valuation, the interest on a £1 share at 6 per cent.

is equivalent to 71 per cent. As ' a result when persous holding shares leave the district and become dry shareholders, they may‘prefer to retain the investments and the company is unable to provide for new suppliers. The amendment to the articles will give the directors better powers to deal with the question of interest on shares.”.Mr F. Mourie seconded. Mr J. Hicky referred to the difference between the proposed maximum interest percentage and the- bank rate. He mentioned that early in the history of the company assistance had beeu given by dry shareholders, and stressed that it was unreasonable to offer 15/for shares the face value of which was probably £2 10s.. Mr E. G. Betts supported Mr Hickey. In reply the chairman said tliia-t .he knew of no other factory buying shares at better than 15/-. 'Taking this, into consideration the percentage was equal to 7-1 per cent. Mr Hickey thought that the fairest tiling, if the company wanted to take over shares, would be to give-the holders £l. for them. Mr E. A. Washer pointed out that the present- directorate had no intention of stopping the payment* of interest on shares. Mr J. W. Snowdon concurred, but further explained that the motion left shareholders at the mercy of particular directorates. He suggested that the motion be amended to read “shall boar interest at a rate not exceeding (> per cent- and not- below 4 per cent.” He moved accordingly. The amendment was accepted and in this form the motion was carried.

Votes of thanks to the chairman, directors and factory and office staff concluded the meeting. Afternoon ten. was provided by a ladies’ committee, -comprising Mesdames J. S. McKay, J. W. Snowden, W. Duggan, F. O. Willeocks, W. R. O. Spooner and Miss Kane,