SOUTH TARANAKI DAIRYING.

Hawera Star, Volume XLVI, 7 September 1926, Page 10

SOUTH TARANAKI DAIRYING.

KAUPOKONUI COMPANY

ANNUAL GENERAL MEETING

Approximately one liundred and fifty shareholders were in attendance at the twenty-ninth annual genera'l meeting ol the ivaunokonni Co-operative Dairy Factory Company, Ltd., held at the main factory yesterday. 11 r. E. T. Riuke, chairman of directors, presided, “The year just passed has been a most trying one, and has given the directors much anxiety, said the chairman in moving the adoption ol the report (published on September 3) and balance-sheet. “Labour troubles in Now Zealand, and also Great Britain,” he continued, “had a. big effect on the price obtained for our produce, and I am quite sure that if things ha.d been normal a better pay-out wou’id have been made. But, taking everything into consideration, the result of the season’s working may be regarded as satisfactory. The pay-out so far has amounted to Is 7d, and there remain approximately 4000 crates or cheese to be disposed of. Over 8000 remained to be sold, when the accounts were closed, and were valued at per lb. The 4000 .sold have exceeded that figure.” Referring to the coming season, the chairman said he could see no reason why any great chop in the price of cheese should be experienced, and he thought that with the settlement of the coal strike in Great Britain prices should be good. The Control Board took over as (from September 1, and the speaker hoped it would keep the goodwill of the merchants at Home and function in the best interests of the industry “In referring to the Control Board,” Mr. Burke continued, “I would like to impress upon suppliers the necessity for sending clean milk to the factories. The superfine grade being instituted by the board will command a halfpeny per lb in advance of produce classecl as second grade, and a farthing in advance of first grade, and in order to give our managers the opportunity of producing; the best article possible' it is necessary that they should be given good milk. If the high grades are obtained the difference will mean a great deal to the financial returns. An indication concerning this, to a certain extent, may be gathered from last season’s returns, when first grade produce commanded from 2s to 5s per cwt. better prices than second grade. The Control Board is out to Till prove the quality of Tsevr Zealand produce, and unless we can reach the required standard our finances will suffer. Our watchword must be to to keep the grade as high as possible. PRODUCTION DECREASED. Dealing with the balance-sheet, the chairman referred to the increase of Id per lb butter-fat in manufacturing costs, despite tire previous, intimation that a reduction in charges could he looked for/ He explained, however, that the season had been an unfavourable one, and though the number ol cows supplying the factories had increased. the butter-fat received was 5 per cent, less than the previous season, This factor, together with the necessity for meeting two heavy traffic licenses' and increases in wages costs, .had hid the effect of increasing the costs of manufacture. He was sure, however, that if conditions had been normal, the anticipated, reduction in manufacturing costs would have been effected. . . ■ The yield had improved, indicating that the managers had guarded against wastage, while the grade had been satisfactory except in a few cases where some second grade had been manufactured. This, however, was not the fault of the particular manager In accordance with the policy of the directorate, stocks had been kept low, a reduction of 1-377 having been made.

The store, with a profit of £2901 19s Id. had given satisfactory results, considering the overhead charges. Certain charges had been reduced, the total being £3265. Against this other items had increased, but the net decrease amounted to £I6BB. In making the comparison. it had ,to be lemenibeied that the. butter-fat showed a. decrease of 5 per cent. . FINANCES SOUND.

I “A few rears ago,” Mr. Burke, ‘‘there was a goad deal of talk concerning the financiftl position, of this company, hut I can assure you that the position to-day is absolutely sound. Our position ha,s shown a wonderful improvement, and, its compared- with 1921, we can show this year a net reduction in, outside liabilities amounting -to £76,232.” In 1921 deposits had been £23,798 10s Gd; in 1926 they amounted to £15,742 4s, a reduction of £8056 6s 6d, while other reductions comparing the respective seasons were: Mortgages £6666 11s Bd, sundry creditors £3222 12s 4d, and whereas in 1921 cue bank overdraft stood at £52,859 4s account now showed a credit of £7427 6s 2d. This item itself .showed a difference of £60,286 10s lOd. The total of the reductions mentioned! was £78,232 Is 4d. Against this had to be'allowed an increase in. debentures ftanounting to £2OOO, leaving the net reduction previously .referred to. This had been effected by: Gathering in of capital, £11,258 13s ftd;. sale of war bonds £4069 12s; -depreciation less additions), £14,748 18s> 6d; reduction of advances to suppliers, £4855 6s 4d; reduction of store stocks, £26,264 2s sd; reduction of requisites, £15,012 9s sd; reduction of store debts, £9639> 13s 3d. 'Hieso medio a total of £85,848 15s Bd. Less calls .to outside companies, £4416 6s 4d ; N.Z. Bacon. CoAs guarantee- paid out of B/F. £2732 12s; -placed to reserves, £2067 11s 2d, totalling £9216 9s Gd. which left the acount £76,632 6s 2d. The reserve in 1921 -haidi -been £19,737 4k 3d. In 1926 it was £4744 3s Id. a difference of £14,993 Is 2d. -Of this amount £6704 5s 10d had been transferred to the Store Accounts, and still existed. The disappearance of the balance of £BOOO odd was , accounted for by writing off losses owiing to had investments, and sundry t’tosse® on advances.

“In addition to this above reductions, the company has contributed! by way of share calls to other companies the sum of £4413 6s 4d.” continued Mr. Bourke.

“The -redemption account lias , been wiped out. Tlie major portion of it wa,s written off properties and machinery and plant 'bringing these assets down to their present bonk values. Certain profits previously credited to tills account were carried to -reserve. The 1921 bal-ance-sheet discloses ail obligation to make further payments to suppliers of £34,513. whereas in the present year only £14.055 has to be provided for. In this connection it must be noted that in 1921 stocks were £25.579. which were over-estimated bv £19,790, while present .sleeks, are £10.071.” AN OITTSTANING RECORD.

The chairman thoiurh-t that the cram pnny’s record- over this period, showing an improvement of approximately £15.000 c year was one whic-li probably no other similar concern in the Dominion could point to. Referring to the assets, -lie- sliowdd that the heavy -reductions had allowed a substantial saving (in interest charges These reductions included the wiping

out of investments in th c Mamun Loan Co. X.Z. Rennet. Co., N.Z. Bacon Co., and l Eginont Box Co., the 'total being £14,073 9s 6d. .. The present results were shown at a, conservative value, but even, though, they hacl been lwsavily wiatt-en down, they still exceeded the Inabilities. Providin t share holders wouM l supply the milk "they now have no fear eoncernLno- the future of the company Last year, owing to the dryness of the season, production had decreased. .BeterHnjg to this aspect, he suggested, whiLe lio had no desire to show farmers how their Tamms .should be conducted that in some instances milking was discontinued too early, many fanners having failed to supply ait all during Match, Apuil and May. If more autumn food could be grown, he thought farmers could manage to milk longer, and it suppliers- would eaidieiiivouir- .to do this they would be agreeably .surprised over the cheque which, would lie received from the smai'l returns with a high In conclusion, Mr Burke referred to the commission which had recently reported on the question of rural credits, and had advised the institution of .a farmers’ loan board to act as a. separate branch of the Advances to Settlers Department. The suggestion appeared a sound one, as the Department already had the necessary machinery. It was preferable to the suggestion- that the banks should liandfe the matter, and he thought it would he- wise to urge upon the Government the adoption of the recommendation. He formally moved the adoption of the report and balance-sheet. Mr R. Dunn seconded. THE DISCUSSION.

Mr A. 'Ganiilin expressed the opinion that as compared with 1921 there was no difference in 1923 in the wealth, or the country, other than, a reduction at interest charge®. He also considered that manufacturing costs were too high j»,nd that the company had done the wrong thing lin not selling .when the opportunity presented. ‘ The chairman replied in his previous terms, and emphasised that the position had improved not onilv through the sale of -assets. The east of manufacture had dropped from 5.82 in 1921. So- far as sej’mg was concerned, the company had not received an offer of 9£d as -suggested, and in anv case' this- would: ha\ e entailed the liquidation of a certain liability which would have, taken lid out of'butter-fat. ' Replying to a further query by Mr O. T. Paurv, the chairman said that the cost per fb after if.o.'b. wa.s 3.9. Mr C. A. Burke thought the balancesheet was one;of the best presented, and gave comparatively little for comment, th.ou.gK' the amounts charged to repaairs ail’d renewals (£2900), iint^rest, (£1700) appeared high and must have effected the manufacturing costs. He was well .satisfied with the results ot the working of the store. Taking the year right through, the results were satisfactory, and the pay-out would compare favourably with the majority. Answering a. . written question, the chairman said that the question of installing electric power was being co.Hr sidered. but .at present- it appearedi that it would not be cheaper, and it must be remembered that a certalin quantity of -steam, was required in any case. Answering a question as to the grades obtained during the season, the general manager (Mr \\ . J. McDonald) .stated that the .grading obtained 'from the various factories was a.si fo’illows: 'Sheet Road (Mr L. Coney), 91812; Sutherland Road (Mr H. Silby). 91.66; Main (Mr S. Jones* 91.474; Waiokura (Mr J. Hornbv), 91.249; Anroa. (Mr J. Everett) 91.215; Kfttua (Mr <3. Haynes) 91 002; Oeo (Mr .X. Steel), 90. i /o; Kapimi (Mr TV. Wheeler), 90.52. , _ During some remarks concerning tlie supply of niilk. Mr McDonald appealed to suppliers to maintain it as pure as possible in order to give the best opportunity for producing the higher grade article. Replying to an inquiry as to the reason for his resignation from the board of directors, Mr F. Mourie stated that he had done .«o because lie could not endorse the policy of the board in certain matters. After a protracted discussion the sum of £25 was voted to Mr Mourie in recognition of certain' services. x Air Mourie. . ill reply, thanked 1 the meeting, and intimated he would hand the sum to a charitable organisation. A vote of thanks was also accorded Mr Mourie in appreciation of lvis services on the directorate. After, further discussion the report and balance-sheet- were adopted. ELECTION OF OFFICERS.

Messrs C. A. Burke and F. Mnggeridge were nominated to fill the extraordinary vacancy caused on the board of directors by the resignation of Mr F. Mourie, and Messrs S. J. Bennett, J. Danders and J. Russell ■were nominated to fill the vacancies caused by the retirement, through effluxion of. time, of Messrs Bennett and Landers. , ,v. The ballot resulted in tno election of Messrs C. A. Burke, S. J. Bennett and J. Landers. At a subsequent meeting of directors, Mr E. T. Burke was re-elected chairman. The remuneration of the chairman and directors was fixed on the same scale as previously. In appreciation of services -rendered during the season under review, , a 'bonus of £SO was voted to the chairman.

As the result of a ballot for the ap pointment of an auditor, Mr H. A Lennon was re-elected at the same remuneration as previously. When- nominations were called for ATr J. Russell gave the opinion, that •representation should bo given to each of the • branches.

The chairman replied that -such a •suggestion rested with the shareholders. , .

Votes of thanks were accorded the chairman, the other directors, the general- manager (All- AY. J. AfcODonald), the secretary (Air A. AL Hannah), the store manager (Ali- A. Muggeridge), the various branch managers and staff. A vote of thanks was also passed in appreciation of the action of Mr F. Aluggeridge in signing the company bond when air extraordinary vacancy occurred on the, directorate. Luncheon was served by a committee of ladies comprising Alesdames E. Burke. C. Burke," T. Sutherland. AA r . J. McDonald. E. R. Putt, F. Muverericlne. C- Muggeridge. Davidson. W. T. Wells and A. 11. Christie, whose courtesy was recognised with a vote of thanks, carried by acclamation, at the meeting.