NEW ZEALAND REFRIGERATING COMPANY, LTD.

Lyttelton Times, Volume CXVII, Issue 17702, 31 January 1918, Page 8

NEW ZEALAND REFRIGERATING COMPANY, LTD.

ANNUAL MEETING.

' .Hre thirtieth annual meeting of ha reholders of the New Zealand Refrigerating Company, Ltd., was held in the company’s offices, Hereford Street, yesterday. Mr H. A. Knight (chairman of directors) presided. REPORT AND BALANG&SHEET. The following was the report of the directors: — The directors hare pleasure in presenting to shareholders the balancesheet and profit and loss account for the year ended October 31, 1917. The various departments at our new Imlay factory have all been completed since last report. The usual initial difficulties have been successfully overcome, and these works are now thoroughly equipped and in perfect working order. During the year the storage extensions to Pukeuri, as mentioned m last year’s report, were completed, and, as anticipated, the extra accommodation was urgently required and has been utilised to the utmost. Further extensive additions to the storage of the company’s works have become necessary to meet the great shortage of shipping, and building operations at Islington, Smithfield, Pukeuri and Burnside are being undertaken to cope with the requirements of the season now commencing. In order to meet the expenditure thus involved the whole of the uncalled capital, amounting to £67,974. has been called up, and in addition all the unissued capital was offered in September last to shareholders at a premium of 50 per cent. The issue met with the most gratifying response, the whole of the available shares, amounting to £62.800, having been heavily overrapplied for by shareholders. The premium received, amounting to £31,400, has been placed to Reserve Account and has been specially

invested in the New Zealand Government war loan. The proposal to bring the whole of the shares of the company to a common denomination of £1 each was recently placed before shareholders, and, the necessary meetings having been held and the suggestions approved, the old scrip has been called in and fresh scrip for tho now denomination is now being issued. The balnnoo available for appropriation, as shown by the balance-sheet, is £77,347 9s 4d, which the directors recommend should be disposed of as follows : £ s. d. To pay a dividend of 4 Tier cont for tho half rear ended October 31, 1917 . . . 6,903 7 i To pay a bonus of 4 per cent on tho paid-up capital . 6,903 7 1 To add to the Reserve Account (which will make this 'account £103,000) 25,000 0 0 To add to the General Assurance Reserve Account (which will make this' account £IOO,OOOI . 10,000 0 0 Leaving an amount to carry forward of ... - 38,540 13 2 Total . • - . £77,347 0 4 Mr John Roberts, C.M.G., who has been identified with the company and tho industry since its inception in 1881, was, during the year, reluctantly obliged to give up his seat on the board, and the directors desire to record their great regret at the loss of his valuable services. The vacancy on the board has been filled by the appointment of Mr William Murray, the general manager, to the directorate. The director retiring by rotation is Mr Alexander Boyle, who, being eligible, offers himself for re-election. The auditors, Messrs R. Hill Fisher and Son, also retire and offer themselves for re-election. H. A. KNIGHT, Chairman of Directors.

BALANCE-SHEET. The following balance-sheet for the year ended October 31, 1917, ww submitted:

£ s. d. £ b. d. To subscribed capital, 20,000 shares at £lO each . 200,000 0 0 25,000 shares at £4 each . . . 100,000 0 0 300,000 0 0 Less unpaid in- i stalments on account calls, not yet due, £79,666; unpaid instalments on account calls, due, £4251 10s ... 63,917 10 0 216,082 10 0 Add calls paid in advance • - 42,047 10 0 Capital paid up . 258,130 0, 0 Secured debentures at 6 per cent . 100.000 0 0 Share premium account . . 75*000 0 0 Reserve account . 70,000 0 0 General assurance reserve account 30,000 0 0 idvances against Imperial and other Stocks ssf. .‘ hip : «»»« Sundry creditors, advances against shipments, and „„ , „ „ London balances 863,089 16 6 Balance at credit Profit and Loss 77,347 9 4 £1,713,166 19 1

£ B. d. £ «. d. By land, buildings, machinery, plant, etc. . . • 651,605 0 8 New Zealand Government War Loan Btook . . 81,400 0 0 Less instalment* not yet due . 23,550 0 0 Stocks meat and wool, hold on account of Imperial Government . 603,904 17 2 Company’s stock awaiting shipment . . . 111,536 14 1 Sundry debtors, investments, consignments unrealised and general stocks in works . • 838,240 1 8 Cash in hand . 20 5 6 l £1,713,166 19 1

PROFIT AND LOSS ACCOUNT for the year ended October 31, 1917

£ i. d. £ a. d. To interim dividend . • . 6,769 0 0 Balance . (7,347 9 4 '' £84,116 9 4

1916 Nov. 1 By balanoo brought forward from last year after payment of dividend aud appropriations authorised 30,167 16 11 1917 Oct.. 31 By transfer fees 19 6 0 Profit after making provision for repairs, renewals, taxation, and sundry contingencies • • 58,829 7 5 £84,716 9 4

H. A. KNIGHT. Chairman of Director*. W* Stf S'.tS” 8 "' r & J&SSSI Rein„eratin o P ’ , accounts for the year ended October 81, 1917, and that the examined the books and f orm , and exhibits a true and correct thebetate of the Company’s affairs as shown by the books and duly certified storic sheets. We have seen that the London accounts have boon certified to by the London auditors, Messrs Elies, Salaman, Coates and Co. , ■ R. HILL FISHER AND SON, F.P.A.N.Z.. Auditors. Christchurch, January 4, 1918. .

CHAIRMAN’S STATEMENT. Tie chairman, Mr Knight, addressing the meeting, «aid: “Following our usual custom, with your permission I -will take the report and balance-sheot as read. _ This is now the' fourth annual meeting whicn has been held since the war commenced, and, as time has passed, the conditions under which our business has been, perforce, conducted have become more and more abnormal. These abnormal conditions are, to some extent, reflected in the accounts for the past season, which aro now before "In spite of the many difficulties with which we have been faced and the increasingly complex problems presented through the participation in the great struggle by nearly every; civilised nation, we are fortunate m still having been able to continue our very essential business and thus assist in supplying much needed foodstuffs to the Mother Country, and, at the same time provide a free outlet for the surplus' stock of the widespread districts in the Dominion which are served by our various factories. • “ The season just closed marks the fir«t working vear of our connection in “the North Island. On the whole, a very satisfactory volume of stock was treated at our new Imlay works during the past season. Although many difficulties were met—some anticipated, other unexpected—they have one by one been successfully overcome and shareholders will be pleased to know that in these works we have a very fine property indeed and one which both I and ray co-directors aro confident will, as time goes on, prove! a more and more valuable addition to the plant of the company and a very essential factor to the most advantageous working of the company’s business- “ The shortage of shipping has, as you axe aware, been one of the gravest problems with which the. Dominion has had to contend, and I do not think I am in any way exaggerating when I say that the policy which w© have consistently adopted since the war—of increasing our cold storage—has not only been the salvation of the company’s business, but it has been of inestimable value to the Dominion as a whole. These additions, as you are aware, were first commenced fully two years ago, and even all that, has bieen added from time to time during that period has just coped thje ueejossities of the business. The shipping mortage became so acute during this last year that even further very extensive additions, to safeguard the position, became obviously essential, and very large cold storage is now under construction at Islington.' Smithfield, Pukeuri and Burnside. “The management has experienced the greatest difficulty in obtaining delivery of the requisite material, but l am glad to be able to report that everything necessary has at last been landed in the Dominion, and it is npw practically certain that the extensions ,at all points will be completed in time * to meet this season’s requirements. The extent to which these additions have grown will be apparent when I tell you that, at the outbreak of the war in 1914, the total storage capacity available at the various works of the Munpany was, in round figures, equal flfthe holding of 429,000 freight car-.

cases of 601 b each. When the additions now almost completed are actually available the company will have a total storage capacity in the South Island alone of no less than the equivalent. of 979,000 freight carcases, whilst, taking Imlay also into account, the total storage will be practically equal to the holding of a million ,and a quarter 601 b sheep. " “ You are all familiar with the steps taken in connection with the share capital to meet the expenditure involved, but I u'ould like to take this opportunity of congratulating shareholders on the very ready response, to the palls made upon them. It is, to ray mind, particularly satisfactory that the. necessary capital was so readily subscribed by those who were already shareholders. _ . “The proposals in connection with the bringing of all shares to a common denomination of £1 have already been before you and duly authorised, and the issuo of the new scrip is now being undertaken. “ During the year the staff of the company has suffered further depletion through the war and other causes, and to the relatives of those who have lost their lives on active service we offer our deepest sympathy. I regret Wia-t out of over thirty members ot the permanent staff absent on leave on active service, no less than seven have lost their lives and a similar number have returned w r ounded. The management particulary regret the loss of Captain Stuart Ramsay, a young and promising member of the staff, who, after a period of brilliant military service (during which he gained his D 5.0.) met his death in June last in’ France. About the same tirao trie company’s assistant London inanagei and salesman, Mr Shirley Hodson, died very suddenly after two or threo days illness. . , “ More recently the Imperial Government expressed their desire to avail themselves of the services of our London manager, Mr F. T. Bovs, to act as Director of Meat Supplies for Great Britain under Lord Rhondda, Minister of Food Control. In view ,of the national importance of the task to which Mr Boys has been asked to devote his experience and energies, the board were, of course, only too glad to concur in his acceptance of tho position. His task is, obviously, one ro- ? niring very high qualifications, and need scarcely say that we regard Mr Boys’s selection to fill this office as a very high compliment to himself per-sonally-and also to the company. _ I am sure that shareholders will joi-i with us in washing him every success in his efforts- *' temporary arrangements have been made, providing for the supervision of the company’s interests in London during Mr Boys’s absence from duty. Mr Michie, so long associated with the Bank of New Zealand in the Dominion, and now one of tho London directors of tho Bank, has, together with Mr Ponscnby (also an ex-New Zealander) kindly consented to exercise a general supervision over the business of the company in London in the meanwhile. In view of the very senoiis depletion of tho company’s senior stmt from the causes mentioned and, more especially, bearing in mind the absolutely essential nature of the company s work and the magnitude of the wide * interests involved, it is satisfactory to

know that tho authorities have decided that we are to retain the services of the company’s assistant manager and secretary, Mr W. O. Campbell. “ Before I proceed to a brief review of the accounts and of tho company's position, I feel that you will naturally expect a few comments on the recent agitation in connection with what is commonly called 1 Tho American Meat Trust,’ and which finally resulted in the appointment of an elaborate Parliamentary Commission to inquire into the conditions of the trade in the Dominion.

“ I am afraid that the complex problems of national and imperial importance, which surround this much vexed question, were rather lost sight of in the somewhat indigestible mass of matter tendered for the consideration of the Commission during its lengthy sitting. It is idle to pretend that no attempt was made to connect this company with tho menace; the progressive policy which has been consistently adopted by 'is has, no doubt, opened tho door to criticism, both friendly and otherwise; but it is to be regretted that the privileges surrounding a Parliamentary Commission should have tempted witnesses to indulge in unjustified attacks based upon idle rumours. “This company’s policy is so wellknown that it seems almost superfluous to once more emphasise the fact that-, whilst we are at all timies buyers, we, at, the same time, afford every facility to stock owners—be they producers, exporters or speculators to utilise ou: works on their own account, should they feel disposed to do so. More than that wo cannot do, and I would only wish to emphasise that as long as I and my co-directors are entrusted with the management of your interests, it is our intention to follow the same policy. “To come now to the accounts: — The balance-sheet has been before you for some time, and I think it will probably give you a clearer insight mpo the magnitude of the company's operations than any which you havo yet had. “ The lack of shipping has resulted in a, much heavier holding of meat and other stocks at the balance date than is usually the case. As the natural consequence of this, both our liabilities and assets are much larger than has ever been tho case at the close of the year’s business. Tho form of the accounts has been specially altered to meet these epecial conditions and you will I think, have no difficulty in' tol'TTimidSTcVl of £300,000 is, of course, now fully subscribed, but, as the payment dates had not all matured at October 31, the total capital actually paid up at the close of the accounts was £258,130. . “ The debentures are unchanged and call for no comment. “ Tho next item, share premium account, stands at'£3l,4oo. This substantial sum represents the premium of 50 per cent received from the issue ot itho balance of our capital and is, or course, a substantial addition to the) reserve strength of the company. “Tho next two items are the two reserve accounts, and stand at and £90,000 respectively. The large item immediately following represents the trading advances against Imperial and other stocks awaiting shipment, and some idea of the volume of our business may bo gathered from faetthat* even at the balance date, this sum was no less than £668,189 13s 3d- ‘ I would, howover, cal your attention to the fact that, on tho other side of the balance-sheet, we hold agamst this liability no less than 2d of meat and wool actually the property of and at the riskofthe Impenaf Government, and, in addition, there a e the stocks belonging to the eompniD. lying awaiting shipment, to tho value of £111,536 14n Id. “The other large liquid asset, consisting of 1 sundry debtors, investments consignments unrealised and germ stocks in works’ stands at 8d The items making up this very important total have been \ery carefully valued, and I havo no hesitation in saying that every reasonable! precaution has heen taken to provent any over-estimate of their value. “Since tho war began, and more than evoi; lately, the management has been safeguarding the business by carrying very heavy stocks ot. cv e ry" thing required in connection with the operations of the company. This has been not only tho most profitable course but has been absolutely the only prudent one, as it is impossible to say when and from where tho next shipments of necessary materials may be procurable. We have, by this policy of heavy stocking, not only avoided any difficulty, but we are in the fortunate position of being able to clearly see our way ahead for some considerable time yet. Should the war continue, if is quite possible that this problem of securing supplies may prove of very serious difficulty, not only to ourselves but to all similar institutions throughout the Dominion. “As above mentioned, everything we hold under this item is excellent property, and on to-day’s market at least well worth its balance valuation. “ Before leaving consideration of the assets of the company you will, of course, notice that the land, buildings, machinery and. plant account now stands at £651,605 0s Bd. This, naturally, shows a large increase as compared with the figures ef a year or two ago. I have already drawn your attention to the enormous increase in the available storage of the company. Many of the various additions to the company’s plant havo from time to timo heen provided for by special appropriations from revenue, but the extent to which it has recently been ncccjssary to extend has rendered it impossible to treat all such expenditure in this conservative manner. You must also bear in mind that wo have now, in addition to our various southern factories, our Imlay works in the North Island, a property which bears comparison with anything of .its kind in tho Dominion. Shareholders will also, I think, realise that any constructional work now complete could not be taken in hand today except at an enormous increase, and in many cases I do not think that the work could be carried out at any price. You have, therefore, in our various factories, a working asset almost irreplaceable under present conditions, and which vvdll, even when tho war is terminated, be practically irreplaceable, except at a very groat increase in cost. “Tlie profit and loss account shows £77,347 9s 4d as available for distribution, and it is recommended that this should be disposed of as follows:

£77,317 9 4 “ I regret to say that during thcyear we have lost the services of our esteemed colleague, Mr John Roberts, C.M.G. For some timo past Mr Roberts has found great difficulty in raaking tho long journey from Dunedin to Christchurch under present conditions, to attend the various meetings, and. he felt that under the circumstances it was better that he should relinquish his seat. It was, therefore, with mutual, regret that Mr Roberts finally decided to sever his long connection, which has extended practically without a break right back to tho inception of the industry and the foundation of the New Zealand Refrigerating Company* in 1881.

“The vacancy thus created lias been filled by the appointment of our general manager, Mr William Murray, to the board, w-bich, I am sure, will meet with the approval of shareholders. “ Mr Alexander Bead a 1a aUc, retiring

director, and offers himself far re-elec-tlo“ Before inviting any comments on tho report and formally moving its adoption, 1 am pleased to.be a lo to state that shipping 18 practically in sight which will effect a clearance o all tho old season’s meat now in store within tho next few weeks- We nill thus I trust bo able, to deal with the new season’s operations without any undesirable congeotion. 1 ™ot speak with any authority or certainty as to how we will fare in respect of shipping facilities for the coming season, but I am strongly of opinion that, our additional stores will prove not only useful, but absolutely necessary, and that n very heavy accumulation of our products is again much more likely to take place than not. “ I am sorry, however, to say that I do not see any prospect of an immediate clearance of the. enormous stocks of general cargo, such as tallow, 0100, etc., now in the Dominion, and, with tho new season’s melt close fl(t hand, we are, I am .afraid, faced with n very difficult position. _ The authorities, both at Home and in the Dominion, are, however, fully aware of the accumulation and of the gravity ot tho position thus created, and 1 nave no doubt that whatever is humanly possible will bo done to case the portion . . , “Before formally moving the adoption of the report and balance-sheet, J will bo very pleased to answer, if possible, any questions in my power, should there be any matters upon which I have not touched and as to whicn shareholders would like information. Tho chairmnn then formally moved the adoption of tho report and balancesheet. Mr John Mill, in seconding the motion, stated that the profit and loss account for the year was one which he was sure would give entire satisfaction to all shareholders, and the fact that they had taken up a further £62,000 of capital, in addition to paying up tho balance of the uncalled capital, showed the confidence that they had in the future of the company. Referring to the increase in the storage accommodation, Mr Mill said that, in view of tho shipping difficulty, it was cheering to know that the company would shortly have room at their South Island works for over 900,000 601 b carcases. Mr Mill also spoke of the valuable services rendered by Mr John Roberts to tho company and the Dominion ns a whole, and expressed regret that' hb had found it necessary to resign his seat on the board. On being put to the vote, the report and balanco-sheot were unanimously adopted. ELECTION OF OFFICERS. Mr Alexander Boyle, who retires by rotation, was re-elected a director. Messrs R. Hill Fisher and Son were re-elected auditors for the ensuing year. VOTE OF THANKS. ! Mr W. H. Clark, seconded by Mr A. R. Bloxam, moved a hearty vote of thanks to the directors, management and staff, which was carried unanimously. Mr Knight responded and the meeting then terminated.

To pay a dividend of 4 pen cent for the half-year ended Oc- £ fl. d. tober 31 last . To pay a bonus of 4 per cent 6,903 7 1 on tho paid-up capital . To add to the reserve account (which will mako this acoiunt 6,903 7 1 £100,000) . To add to the general assurance resorvo account (which will 25,000 0 0 rualto this account £100,000) . Leaving an amount to carry 10,000 0 0 forward of .... 28,540 15 l £