CANTERBURY LINSEED OIL AND FIBRE COMPANY.

Lyttelton Times, Volume LXI, Issue 7227, 29 April 1884, Page 6

CANTERBURY LINSEED OIL AND FIBRE COMPANY.

The second annual meeting of the shareholders of the Canterbury Linst ed Oil and Fibre Company, Limited, was held at the rooms of the Agricultural and Pastoral Association at 11 a.m. on Saturday. Twenty-five shareholders were present, and the chair was occupied by Mr J. P. Jameson, Chairman of the Board of Directors. The report of the Directors was as follows: " Your Directors, in rendering their report of the year's operations, and presenting a balance-sheet, are not encouraged to speak with unmixed satisfaction. Their hope that a warm interest in the enterprise would be taken by the farmers generally has been somewhat disappointed. Something, however, has been accomplished, in that a large amount of information respecting the growth, of flax has been gathered and distributed throughout the Province. Experience has been gained of the possibilities of the industry, which certainly indicates that, if taken up with spirit and patience by the growers, the results may be very profitable. The best machinery for dressing the fibre has been procured, and eligible sites whereon to erect it, in the various agricultural centres, viz., Southbridge, Lincoln, Brookside, and Longbeach. At Southbridge, one set of the machines has been erected and the premises are complete for carrying on scutching operations. The property is leasehold, with favourable purchasing clause. The Directors have been prepared to erect similar works in other districts named and have the machinery on hand, but the delay in the payment of calls they take as an indication that the shareholders are not prepared to support their efforts to establish the industry. The area of flax grown is in advance of last year; but "* the farmers take no steps to prepare their straw for the scutching machines, and much valuable material is as yet unutilised. Several small sowings have been made on the Company's account and the crop is under manipulation. It may be interesting to state that a quantity of fibre, scutched by your machinery at Southbridge, realised £36 per ton in the Home market. Notice of motion has been given, to be submitted at the annual meeting,, to wind up the Company, and unless a warm response is made by farmers and the public, by subscribing the necessary capital, your Directors cannot recommend the continuance of operations." The attached balance-sheet showed that the total sum on the debit side of the statement was £2333 8s Bd, including paid-up capital £1748, and overdraft at the Bank of Australasia £407 Bs. The assets were £1554 17s Bd, including value of machinery, £652 Is 2d, seed and fibre £3BO, leasehold at Southbridge, £lO9 19s Id, and land at Heathcote £704 Gs Gd, less mortgage £4OO, equal to £304 6s 6d. The balance of liabilities over assets, representing the loss Ito date, was £778 lis. The statement had been audited by Mr H. E. Alport. The Chairman was sorry the report was not more encouraging, but the Directors had been hindered by the' lack of response to the call to take up shares, and by the non-payment of calls on shares taken up. He moved the adoption of the report and balance-sheet.

Mr C. Kiver seconded the motion. Mr Howlaad asked if the Directors had taken any steps' to enquire why farmers had not manipulated their flax ? The Chairman said that farmers were under the impression that the Company should do the manipulation, which the Company at present was not able to do. The Company would be able to dispose of the flax on profitable terms in the Home market, if supplied with the manipulated straw.

Mr C. T. Pudley asked if the prospectus of the Company had not promised that the Company would buy the flax in a raw state? Ho believed that the Company's agent had made a similar promise. The Chairman said that it had been intended to do so for the first year at all events, but it had been found impossible ou account of the expense. In answer to a shareholder, the Chairman said that the Company had employed an agent to visit the various farmers, in order to impress on them the desirability of going in fbr flax culture, and had procured four sets of machinery, one of which had been erected, while the others were ready to be set up at the various places mentioned in the report. The farmers, however, were not willing to supply the straw sa required, and the Company could not afford to do all the retting and other manipulation themselves. Mr Howland asked if the Company were

prepared to pay a price that would remunerate tho farmors. The Chairman replied in tho affirmative. In answer*to a shareholder, Mr M. Murphy said that tho cost of preparing tho ton of flax sent Homo had boon 20b per cwt, 10s more than it ought to have cost. A groat doal depended on tho manner in which tho straw was rotted and prepared for the machines. Ho produced a sample of flax, and naked Mr M'Cormiok, as mi expert, what its valuo was. Mr M'Cormiok replied that it would bo Worth .£BO a ton. A shareholder said that tho highest price last season in Ireland was 8s a stone, which was very much less than MO a ton. He had heard that tho cost of proparing tho ton of flax had been J 835, so that if it was sold for £&G, tho profit certainly was not large. The Chairman said that a good deal of waste had occurred in preparing tho first shipment, owing to tho fact that tho persons employed were unskilled hands. No doubt the cost would be much less in future.

Mr Button asked if anything had been done with regard to preparing linseed oil. Tho Chairman said that the matter had not been lost sight of. There was a. considerable quantity of seed on hand, and the Company had intended to erect machinery for crushing it, but had not been able to do so. He mentioned that they would not bo without competition, as linseed oil was now boing prepared in Dunedin.

The motion for tho adoption of the report was put and carried nem con. The meeting then proceeded to elect Directors in the room of Dr Doyle and Messrs E. Ruddock and G. King. _Mr Euddock was the only one who had given the necessary notice as a candidate, and he was re-elected.

Mr H. E. Alport was re-elected as Auditor, at a fee of two guineas. The meeting 1 was then constituted into a special general meeting to consider the following resolution, of which notice had been given by Mr J. G. Euddenklau:— " That the Company be voluntarily wound up, and that Mr F. Waymouth be appointed liquidator, at a remuneration of 5 per cent on the proceeds." Mr Euddenklau said he was very sorry to have to propose the resolution. He thought that New Zealand was especially adapted for flax growing. He came from a country where this industry occupied a prominent position, and was therefore qualified to form an opinion. It was of the deepest importance, he thought, that the farmers should go in for the growing of flax, as wheat and wool did not seem likely to be so profitable as formerly. They should grow and ret the flax themselves, as it was impossible for the Company to do all the work. It would not be creditable to the Canterbury farmers if the Company should be allowed to lapse, but still they should either give it a more hearty support, or stop the enterprise altogether. . The Directors had intended to crush the linseed, but want of support compelled them to abandon the idea.

Mr Howland seconded the motion with regret. He was sorry the farmers had not supported the Company, especially as the country was so well adapted for growing flax. He asked Mr Button what was the qual:t3 r of the Dunedin linseed oil. Mr Button said the oil was nearly equal to English oil in quality, and was a little cheaper in price.

Mr Miln remarked that the Dunedin Company had "gonebankrupt" on it. Mr Murphy said that the maker of thq Dunedin oil was still going on with his enterprise. One thing which had hindered him was the expense and difficulty of procuring drums for the oil. Mr Miln said that the greatest difficulty in the way of the farmers was to get men to pull the flax, which, came in about harvest time. He had grown three and a half acres, and had obtained a nice crop, which had cost very near £3 an acre to pull. He had to do it all by day labour. It took four days to strip the seed, with four men—he drove the engine himself. He got about 80 bushels of very nice seed, which three men were engaged for two days in winnowing. He could not sell it in Christehureh, so he sentto Dunedin, andfoundthatthe price was 5s 6d per bushel, of 601 b weight. Altogether he got about £l6 for the seed, so that he sustained a great loss. At present men could not be obtained to work for low wages, and he would rather lose all the money Ke had put into the Company than go on losing more, so he was in favour of winding it up. The Company had found that the retting and other manipulation of the straw was so expensive that they could never do it and make a return to the shareholders.

Mr Gabbie had got 30 bushels of seed to the acre, which he had cut and sold for 4s 9d a bushel. He supported the motion. In answer to Mr Button, the Secretary said that the back calls would pay all liabilities, and perhaps leave a small sum to be returned to shareholders. The Chairman said that the other Directors and himself were extremely sorry things had come to the present state. They were as certain of the future success of the enterprise as ever, but it wanted a large amount of patience. With regard to cost of pulling, the Company had never paid more than £2 an acre. Only 49 shareholders out of 181' had paid their calls, and this want of support showed that for the present the enterprise must be abandoned.

In answer to Mr Button, the Chairman said that the unpaid .calls would be recovered at once.

A shareholder said that it would be unwise to force the Company's property into the market.

In answer to the Chairman, Mr Waymouth said that, if appointed, he would get in the whole of the outstanding calls, and with the proceeds pay off the liabilities. The property he would hold until it could be disposed of to advantage. He would take the advice of the former Directors if he thought it necessary. Mr Button thought that it was undesirable to put the whole affair into the hands of one man. Ho explained that he had not the slightest doubt of Mr Waymouth, but objected to the principle. After some further conversation, Mr Button moved, and Mr Gabbie seconded, as an amendment—" That Messrs Jameson, Haver .and Ruddenklau act as co-liquidators with Mr Waymouth." Mr Euddenklau accepted tho amendment, and the motion, as altered, was agreed to. The meeting then terminated with a vote of thanks to the Chairman and Directors.