HINUERA DAIRY COMPANY

Matamata Record, Volume XX, Issue 1855, 2 August 1937, Page 4

HINUERA DAIRY COMPANY

ANNUAL MEETING “ Very Satisfactory Payout ” A spirit of quiet enthusiasm and satisfaction marked the fifteenth annual meeting of suppliers to the Hinuera Co-operative Dairy Co., Ltd., which was held' in the hall on Thursday. There was an attendance of about 60, and Mr. J. E. West, chairman of directors, presided, and directors present were Messrs. P. R. Hawke, F. Gibson, J. Milne and the Hon. J. Cotter, M.L.C. CHAIRMAN’S COMMENTS Commenting on the balance-sheet, particulars of which have already been published, Mr. J. E. West (chairman) said that the total payout of 13.74 d over all grades and clear of cream cartage was very satisfactory, and a bit better than many had expected at the start of the season. The balance-sheet this year was laid out in conformity with the 1936 regulations, and now there was not the same chance of some companies camouflaging things as under the old system. Most companies had adhered strictly to the new regulations, but some in their advance ■reports gave a statement showing payment for superfine and including cream cartage.

“NOT CRICKET” In strong language Mr. West condemned this practice. It was “not cricket,” he added, “ and if Hinuera cannot play the gamb I hope you will get right out of the game.” He felt such companies would not publish their true balance-sheets till after August 1, after which supply could not be changed. “It was grossly misleading to include cartage in payout,” Mr. West concluded, “as had contracts and heavy cartage costs give a totally misleading figure.” In seconding Mr. West’s motion to adopt the report, Mr. P. R. Hawke stated there never was a period in which more competition was met with. He had understood zoning was

to induce efficiency, yet canvassers were on the road. The Hinuera company had no pkid canvassers, but others had approached Hinuera suppliers and he urged them to remain loyal as each one who left depreciated the assets of the company. Costs during the next year were bound to rise above what they were now, as the recent award increased the manager’s salary very considerably. He understood that secretaries were also forming an association, while he heard a “ whimper ” from the directors about thfeir allowance. (Loud applause).

NO INTEREST PAYABLE In a few comments, Mr. C. E. MacIntyre, manager of the Matamata branch of the Bank of New Zealand, said Matamata was the only place where he had been invited to attend an annual dairy meeting. It was almost unique to see a balance-sheet in which no interest was payable to the bank, but in which the bank paid interest to the company. This must make a difference to the payout. He had known of a balance-sheet where £BOO was paid in interest. He could not find any fault and the company was undoubtedly in a very healthy position. He felt much credit was due to the chairman, Mr. West, who had been at the helm for a long number of years. Mr. Maclntyre also paid a tribute J;o Mr. R. B. Gelston, the secretary, whom he had found courteous and obliging, and devoted to the interests of the company. AUDITOR’S REMARKS The auditor, Mr. T. J. Ryan, pointed out that the company was in such a strong financial position that the floating assets were sufficient to -pay all creditors, while the balance available, £7OOO, with the book value of the plant and buildings, would return a premium on the shaves if the company were wound up. Payments were now calculated clear of carting. There was no merit in having a superfine direct delivery payment, including cartage, as if cartage costs were high it would produce a very fine but misleading figure. This was a point they should watch. The report and balance-sheet were approved. DIRECTORS’ REMUNERATION In moving that the directors’ remuneration be increased Mr. M. E. Gould thought shareholders were very fortunate in having had such a suc-

cession of able chairmen and solid directors. The remuneration was fixed as follows: Chairman, £150; vice ; chairman, £35; directors, £3O. AUDITOR REAPPOINTED Mr. T. J. Ryan was reappointed auditor at an increase of £lO per annum. / ELECTION OF DIRECTORS Mr. P. R- Hawke and the Hon. J. Cotter were the retiring directors, and again stood for election, together with Mr. M. Bates. The voting resulted: P. R. Hawke, 9996; J. Cotter, 6116; M. Bates, 4492. CO-OPERATIVE STORE The chairman stated that some factories showed a handsome profit from stores. Anything like groceries they would not consider; but items like iron, oil, vaseline and so on could be handled with profit to shareholders. So far they could not get tenders for the erection of a store. It would be a great convenience to shareholders to be able to ring up and get their requirements sent out with their cream cans. He would like an expression of opinion from the meeting on a matter which- had exercised the minds of the directors for a considerable period. The meeting approved the proposition.