AWATUNA DAIRY FACTORY.

Hawera & Normanby Star, Volume LXIX, Issue LXIX, 29 September 1915, Page 5

AWATUNA DAIRY FACTORY.

ANNUAL MEETING OF SHAREHOLDERS.

The twenty-first annual meeting of Sffil A*'? Was held in th* P^lic Wall, Awatuna, yesterday, Mr S. R. Farquhar, chairman of directors, pre-

The directors reported a successful year s operations, and continuing, said: . in spite of unusual conditions prevailing, this year's output has again been a record, as notwithstanding the dry weather our autumn make was largely increased above the same period in the previous year's working. Cheese making, commeiu-ed on September 20th, and | the output, including the whey butter, was again consigned to Messrs J. and J. Lonsdale and Co., Ltd., on satisfactory terms. Local butter was consigned to Messrs J. B. McEwan and CoT. and good prices, according J.o market conditions, were realised. Owing to the war ,nnd unsatisfactory conditions as regards shipping and uncertainty of oehyery, your directors considered it advisable to continue with the present Carrying Co., having made favorable ■terms, instead of procuring a lorry for the company's use. Your directors nave decided to build a new cottage for the manager. The new curing room, in concrete, at Awatuna, is nearly completed, and should be of inestimable value in the curing, and, if necessity arises, of storing cheese. ' Your directors have decided to write off as usual 10 per cent, for depreciation, the amount being; £657 Is, leaving a balance of £3752 6s 7d. This will be absorbed in the payment of interest, £310 6s 6d; a further payment of l£d per lb • butter-fat. September 20th to May 31st, amounting to £3303 15s; and Id r>er lb butter-fat, June and July. £29 16s, leaving a balance of £108 19s Id to be carried forward. In conclusion, your directors would draw the attention of suppliers to the anticipation of shipping difficulties during the coming season and trust that they will not be disappointed if, owing to this cnns«. advances cannot be made on a very liberal scalp, but the directors have no reason to think that advances will be below last year's level.

The balance-sheet showed paid up capital, £6206 9s 8d; reserve account, £1053 13s 2d; Bank of Australasia loan account, £1645 18s lOd; farm mortgage, £1975 Is, and sundry credtors, £4527 18s sd. Land, plant' and buildings, less depreciation, amounted to £8941 15s 3d; . stock, £1010 6s 2d; shares in other companies," £2119 5s 8d; cash at Bank of Australasia, £2123 17s 9d; due by creditors on loan account, £1462 14s 3d, and sundry debtors, £3548 5s 9d. Payments for milk amounted to £40,101 4s lOd; salaries, wages, boxes and crates, freezing, firewood, freights, cartages, etc., £5074 3s Id; ocean freights, £2817 6s 3d, and depreciation, £657 Is. Butter sales realised £5762 2s 8d a and cheese £48,152 17s 6d.

Statistics— 15,285,6941b5. of milk: 13,888.6391b5. of milk for cheese 1.400,0551b®. of milk for butter: 580,-------0691b5. of butterfat; 528,359105. of butterfat for cheese; 51,7101b5. of butterfat for butter; 1,353 3 1351b5. of oheess made; 57 4 9831bs butter made; 00,6371bs of whey butter made; lbs of c-ueese to lib butterfat, 2.56; lbs milk to Ub cheese, 10.22; lbs of milk to lib butter, 24.0; over-run, 12.13; average test, 3.79; average payment, 17.97 d. The payments for "the season, incluamg further' payments, per lb. butterr.it—August to (September 20, Is; September 21 to May 31, Is 6£d; June and July, Is 4d. Factory weight of cheese made, 1.387,835ib5.. In moving the adoption of the report and balance-sheet the chairman said that that which would interest them most would be the financial part. Last year the company consigned, through Messrs J. and' J. Lonsdale and Co. en the usual terms, but there was a special clause in the agreement providing that balances over £250 were to be cabled to the company. • None of them knew when that clause was inserted that it was going to be of so much benefit to the company. After the season's work had gone on for some time the balances at Home began to accumulate and the directors reminded Lon^dßWs ar^nt that the balances were not being cabled out as provided in the agreement. The agent excused his firm on the ground, probably, that their staff at Home,had oeen very short-handed in consequence of so many of their employees going to the war, and th& they had not b^en able to keep their books up-to-date. The company then" made stronger representation, with the result that about two months after the beginning of the season they had £2000 cabled out, and thereafter the amounts cabled were in proportion to the balances at Home. He (the chairman) would like to refer, also, to the matter of the prices received for their produce. A comparison of the prices received by the company with tne quotations cabled by the High Commissioner made him feel not quite satisfied that the company had received the vert best London market prices. The High Commissioner's quotations were the average prices ruling and the prices the Awatuna Company received were sightly lower- He could not see any reason for this. The cheese made by the Awatuna Company was of the very best quality, and last year only two per cent, was graded second class. This being so it certanly appeared that they should have receved the highest market prces. This, no doubt, would be a matter for the consideration of the directors later on. Shareholders would remember that last year it was decided to erect a new curing room at Awatuna ; how much it was required the, directors now knew. The estimated cost was £860 .and the company decided to pay this out of ths year's working and to-borrow for the purpose £1000. They were not, however, able to arrange a bank overdraft just when they wanted it, so the work was left in abeyance for snmc time. Later on, when they were able to finance it, they went on with the'work, and he was pleased to tell them that the curing room was now almost conit pleted, and that the cost would only be £750. He desired to compliment Mr Amoor for the very excellent work he had put into the building, and the complete way he had finished it. They now had an "insulated curing room, ono of the most up-to-date on the coast, at £100 less than their estimated ccst.— At last meeting the directors were authorised to purcha.se a motor waggon, but after they had gone fully into all the facts and'figures they decided to accept an offer from the Transport Co. to carry their produce for another year. The' Transport Co. offered them a reduction of something like Is 6d per ton from Awatuna, and Is from Taung-a-gatara and considering that v mo-tor wagson would have cost something liko £1000; garage, and cottage for driver and sundries something like another £1000. and in view of the fact. «lso. that none of the motor waggon ageul'* could give any guarantee <ns to the oato of delivery of a machine, the director decided tliat it would be wisest to exclude a contract with the fvar^roj ->., Company and allow the question <vi pu - chasing':l- motor to remain in nbev^eo for another year.—Referring to tl'.a balance-sheet they would notice vivo ihrv Company owed the Bank of Australasia nothinsr. [A voice: The m>t time in the history of Awatuna]. firewood had increased .from £609 Is od to i-Qyy i>i s 7d Awatuna had r.ctually

used £10 worth less th^n last year, and tke increase had all behn at Taungatara- He was not surprised at that, . and would tell them that during the year he had occasion to examine the nrewood brought to that factory, and he found that & lot of it was 'not fit to be counted as nrewood; it was veryindifferent quality. The present manager had instructions to carefully measure in future all firewood delivered, and to, reject everything excepting good sound rata. Their boiler there was too small and. required too much firing. The directors would have to consider the advisability of putting in a 16-20 h.o. boiler. In'conclusion, the Chairman referred to the item of legal expenses, £285 3s 2d. He mentoned that this was the cost of altering their articles of association, and gave a brief resume of the almost insuperable legal difficulties they had had to overcome before they succeeded in doing this. However, they now had most up-to-date articles of association and the Awatuna Dairy Factory Company was as strong, probably stronger, than any other dairy company on the coast. I The report and balance-sheet were' adopted without discussion. FARMERS' CO-OP. ORGANISATION SOCIETY. A circular letter was read from, the Farmers' Corop. Organisation Society stating that at the inception of the Society a scheme was formulated for the co-operative marketing of dairy produce, and for the working of this scheme there was created a "B" issue of shares. Since the outbreak of war, however, it was found to be impossible to go on with the scheme, and that being so the Farmers' Co-op, would be pleased to transfer the shares held by the Awatuna Company under the "B" issue, and on which the sum of £7 10s by way of application and allotment fees had been paid, to the "C" issue. This would then give the company the right to any rebates which might be made on business done with the Society and to participate in any dividends. If, however, the company preferred the Society would be pleased to refund the whole amount paid by way of application and allotment fees. —The Chairman said that the co-op. dairy produce marketing scheme having been absolutely thrown out, and tlfat being the only branch of the Society's business which would likely benefit the Awatuna Dairy Company, the best thing would be to accept the Society's offer to refund the £7 10s.— t Mr Hurst contended that these shares should be transferred from the "B" issue to the "C" or general issue. Dairy companies had made the great mistake in the past of not looking sufficiently to the future, and there was no telling how much benefit might accrue to tne Dairy Company through being shareholders' in the Farmers' Co-op. He moved in that direction.— After some discussion a vote was taken, and the motion was carried by 17 to 13. BACON COMPANY. A circular letter was read from the Eltham Bacon Company in support of their appeal to dairy companies to take up additional shares in the Bacon Company to enable it to widen its scope of operations so as to more efficiently and economically carry on its work. They asked' shareholding dairy companies to increase their shareholding by an extra 50 per cent. —Mr Barker, one of the directors of the Bacon Company, put the case for his company, and explained in detail the reasons why the Bacon Company desired the extra capital. All but four dairy companies—Awatuna, Opunake, Pihama. and Mells—had decided to take up the additional capital, and although the Bacon Company had the power to allot yhe shares in any case, they had no intention of doing so against the wishes of any dairy company. He moved" that the Awatuna Dairy Company take up the additional 300 odd shares'asked for.—The Chairman disagreed with Mr Barker's opinion that the Bacon Company had the power to allot additional snares, and thus place additional liabilities on the Dairy Company against their wishes. —During a general • discussion Mr Voullaire voiced an objection held by a good many viz., that it was not a proper thing for dairy companies to take up shares in the Bacon Company. Why should a man who did not keep pigs have to pay for the man who did? —Air Hurst moved as an amendment that the question be referred to the directors, but the chairman declined to accept it on the ground that the '. directors had already considered it and decided to refer it to shareholders i for an expression of opinion.—Mr Bar- ; ker's motion was carried by 16 votes to 15. 1 ELECTION OF DIRECTORS. , ' Mr A. M. Collins, one of the retir- i tng directors, was re-elected, and Mr T A. Rowe was elected in place of Mr J. Corey, who did not again offer his services. Mr M. W. Barker, who J had retired ram milking, also resigned, , and Mr J. Bradford was elected in his ; place. GENERAL. Mr A. H. Moore was re-elected n auditor at the game remuneration as I last year.

A very special vote of thanks was accorded Mr Barker for his long and valuable services as chairman and director, and the hope was expressed that he would once more -be a director m the near future. Hearty votes of thanus were also accorded to the present chairman and directors, to the manager and staff, and last, but not least, to the ladies who provided such a fine lunch for shareholders attending the annual meeting.