WHANGAREI DAIRY COMPANY.

Northern Advocate, 25 August 1924, Page 3

WHANGAREI DAIRY COMPANY.

ANNUAL GENERAL MEETING. POSTAL BALLOT DECIDED ON. The seventeenth annual general anceting of shareholders of the Whangarei Co-operative Dairy Co., Ltd., was held in the supper room of the Whangarei Town Hall on Saturday, the •chairman of directors, Mr Henry Wakelin, presiding over an attendance of about 80 shareholders. The report and balance sheet, already published in the "Northern Advocate," were received as read on the motion of Messrs L. A. Johnson and J. Wakelin. CHAIRMAN'S ADDRESS. In formally moving the adoption of the report and balance sheet tho chairman read his address as follows: — Foreword.—l am very glad to moot you once more and to have such a satisfactory report and balance sheet .to put before you. I expect one <»f the first questions asked will be: "How is it we have such a amount to divide at the close of the year in comparison with former years, and why did we not pay some of it earlier"? the reply is that the payout indicates the state of the market at the time and the directors wished to keep on the safe side. However, the suppliers are getting it on September 20 and no doubt it will come in handy. Expenses, Cartage, Etc.. — These have not increased to any appreciable extent and remain at about tho same ratio as last year. By-Products.—The directors have had this matter under consideration ■and sent the manager to Australia to get information and particulars relating to the manufacture of dried buttermilk. A very good article can be turned out. We have a sample here to-day, but the directors do not consider the prospect of a certain market t ,I'ust now is sufficient to justify making : the necessary outjay in machinery, etc-. required; but the time will' come, and they are keeping, the idea in sight.

Dairy Produce Control Board. —The delegates travelling are keeping us well posted as to their doings. They are evidently making an exhaustive inquiry into the dairy business in all its phases, and this should result in some good to the industry. One thing stands out prominently, I think, and that is the British market is our sheet anchor. The more we fan patronise British-made goods which we cannot produce here, so much the more will the British public be in a position to buy our butter.

Standard. — I see we have a greater percentage of second grade cream this year. It is not a good sign, and m> man should be satisfied with second grade. The only hope for us 1o keep at tho tep is to produce a first class article.- We havo a thoroughly efficient manager ; and staff, but they cannot make first class butter from second grade cream. Box Company.—This company is paying its way and there is a. considerable balance in hand. How the Baltic pine boxes will affect, the price here I do not know at present, but if it was decided to wind up the company, it would liquidate 20s in the pound at least, as a syndicate has approached the company with a. view to purchase of tho timber, but it is thought best to hang on to it for tln> present. "In conclusion, ,, said the chairman, "1 would like to impress upon suppliers the necessity of culling out inferior cows from their herds and the great advantages to be gained from the top-dressing of paddocks. All cows culled from any herd, in my opinion, should be branded with a "broad arrow. ,, Mr C. A. "Whimp seconded the motion for adoption. The secretary. Mr G. Hill, pointed out that the deferred payment for May butter-fat should be 4d and n:>t 2i] as published. Mr Keay asked for details of the item, cream cartage and freight £3i ; 2-~> (is Id, and was informed that if lit , applied at the office of tho Company th? information would be forthcoming. Mr E. Babe congratulated the secretary on the manner in which the balance sheet had been produced. He also was pleased to compliment the manager and staff on the decrease in manufacturing expenses; it was a good si::;>i and very gratifying. With rotVreti'-r to the cost of marketing he noticed this was on the np grade, and would l.<> glad of an explanation.

The secretary explained that this matter was controlled by the exchange payable, which at the presenttime was rating at 40s per cent.

Mr E. S. Tremaine explained that while some of the items in the manufacturing account showed an increase, really a decrease hail been effected when the increased output was taken into consideration. In comparison with last year the cost of fuel had dropped from £738 to £581. This decrease was accounted for owing to the now boilers, which were effecting a

saving of about £3 per week. Taken on the output basis the cost of cream cartage had really dropped, and further reductions could be made in this item if the suppliers supported the factory lorries in the matter of back-cart-ing. It might be advisable in order to ! encourage this that the suppliers should be offered something in the manner of a rebate. Owing to the installation of their own water supply the charges under the heading of water rates hal been greatly diminished during the past financial year. He joined with the previous speakers in complimenting the secretary on the splendid and prompt manner in which the balance I sheet had been brought down. In reply to questions the secretary stated that the sales of ice had greatly increased during the past year. The item shown as bad debts was mostly against the ice sales account, owing to retailers going bankrupt. Mr Johnson: "In fact, we wove freezed out." (Loud laughter.) The Secretary: "Yes, but we are going to guard against a repetition by instituting a deposits account and if there is money in the customer's account ho gets ice, if thei'e isn't, well, he don't get the ice, that's all." Voices: "Hear, hear!" Mr F. L. Beasloy, Parua Bay, remarked that he would like to congratulate the secretary, manager and staff, upon the manner in which the expenses had been kept down and the concise manner in which the affairs of the company had been disclosed. Mα , 'Hodge raised the question of the amount of the dividend proposed to be paid on share capital, namely, 5 percent. The bank was charging (tt per cent for overdraft moneys and he considered that the shareholders' money was of equal value to that supplied j by the bankers. | The chairman explained that the question raised was immaterial, because what was saved by paying a low dividend was paid out to suppliers for butter-fat. By paying it out, for but- j tor-fat suppliers were saved income tax. Mr Hodge: "I don't pay income . tax." (Laughter.) The motion for adoption was then ' put and carried unanimously. ELECTION OF DIRECTORS. | Under the articles of association j Messrs H. "Wakelin and R. D. Finlayson retired from the directorate, but offered themselves for re-election. On. the motion of Messrs M. J. M'-- i Donald and C. F. Smith the retiring directors were unanimously reap- j pointed. Messrs Wakelin and Finlayson briefly returned thanks. AUDITOR APPOINTED. It was decided that the retiring auditor, Mr A. L. Pike, be reappointcd. NOTICES OF MOTION. ! The -piceting then proceeded to deal with the following notices of motion. — (1) Mr F. S. Hall—"That the financial year of the Company end on June 30 ins-tend of July 31 in each year." On the application of the mover the meeting allowed this to be withdrawn. (2) Mr H. Berridge—"That thr> articles of association be altered so as to permit of the election of directors by the ward system." (?,) Mr A. Clarke—"That directors he elected by postal ballot." Mr 0. B. Rogers seconded Xo. 2 and Mr L. A. Johnson seconded Xo. 3. The chairman announced that perhaps it would he preferable if both, motions were before the meeting at the 'i:m- time, as they had bearing on tin. , o::<> subject. Mr Johnson in speaking on Mv Carlo's motion said that he was of opinion that -better results would be obtained if the system advocated therein were adopted. The ward system was hard to arrange. Under the postal svatom any man could ba nominated and every supplier would i have a direct say in the company's affairs. Mr 11. Berridge said that last year is proposal for proxy and postal voting had been turned down by a big majority. If the ward system could be got to work satisfactorily it was f.h? best of the lot; it meant that the directors would bo in touch with all the suppliers. At this time of flu: year it was hard for a lot of the pup pliers to attend the annual meeting owing to distance to bp travelled mil flie fact that .some had cows coming in, and it was n busy time generally. I-iv their non-attendance under th , ?.

present system they were in part disfranchised, (iood representation couM he had on the directorate if the ward system were brought in, "and let ni~ h>ll you," he added, "it is not always the best brains that get on flu , directorate." ("Prolonged laughter). The present system was undoubtedlv hard on the backblockers.

Mr F. L. Beasloy maintained that the "ward system could not he put in force without the addition of the postal system. Ho was in favour of the postal system straight out.

Mr E. 8. Trernaine, in answer to a question by Mr Berridge, said that the directors preferred the postal to the ward system, but they really pinned their faith to the system now in vogue. Still it was not for them to dictate, the question was one for the shareholders to decide.

Mr A. Clarke stated that the reason for his motion was to enable all the shareholders to have a voice in the appointment of the directorate. It had been held that one of the drawj backs of this system was that it would give shareholders an excuse for I stopping away from the meeting. But even if this were so the baekblockers were entitled to consideration. (Hear, hear). Sometimes elections at aiinuai meetings involved a lot. of valuable time and this the postal system would obviate. Regarding the extra expense i incurred for conducting postal ballots the secretary of the company ha ! prepared an estimate and stated it would cost 3?>d per shareholder, so there! was only a few pounds involved. Mr Babe: "If the two motions are earned, which will be the better method." . He considered that if the directors were scattered over the company's district it would make for better control. Mr Berridge drew attention to the district in which he lived. Their nearest director was at Mangapai aiid never came near them; consequently i!; they had any complaints they had to write in to the office, and as some of them were not. too good at framing letters, they sometimes gave oil'enco. (Laughter). Mr Keay did not see too much differenco between the motions. The ward system would take a lot of going into, no doubt. He could not see why both motions should not be adopte 1 as they showed the true spirit of cooperation. Mr Clarke said he was loath to criticise Mr Berridge's motion, but believed the best idea was to put the best men in, no matter where they lived. The company's affairs had been well conducted in the past. Some suppliers thought they should have a director living next door. Speaking jocularly, lie stated that "if things were bad and the cows milking badly the manager was the man to freeze on to." (Loud laughter). But joking apart, he was quite sure that ■Mt Millington was a reasonable man an-.l would do hi.s best for any supplier. The chairman ruled that in order Ed avoid confusion he would put the motions separately. Mr Berridge's motion was defeated by a big majority and that of Mi Clarke 's carried. Mr Carter wanted to know, if three directors were required, was a shareholder compelled to vote for throe candidates or could he vote for a less number? Mr Hall stated that he would like to see it made compulsory that shareholders vote for the number of directors required, otherwise it might mean another election. He therefore moved in that direction. Mr Clarke seconded the motion. Mr Beasley contended that they could not compel a man to vote for some person he did not know or perhaps did not care for. Ho would move as an amendment that the number uf candidates voted for be optional. Mr Whiinp seconded tho amendment. Mr Tremaine considered that if the amendment were carried block voting would creep in and that perhaps it would be advisable to adopt the principle of one man one vote. Under t\\ n . company's present articles if a man held lO shares he was entitled to one vote, 20 shares two votes, and !>0 shares and over three votes. Tin- amendment, on being put was lost and Mr Hall's motion carried. Mr Tremnino proposed: "That the mooting adopt the principle of tin , one man one vote." Mr Tel for seconded. Mr Babe, while in support of Mr Treniaine, questioned whether tho meeting could deal with the motion, as it. meant altering the articles and v.oul ! require a notice of motion. The chairman ruled it could bo dime if the meeting yavo unanimous (■O7! -I'll t. On the proposal being put there ■ were f-vi) dissentients, so Mr Tremaine »-avo notice that he would move ii! the direction of his proposal at the I next annual meeting. VOTE OF THANKS. Mr Malcolm McDonald moved a veiy hearty vote of thanks to the <.-!:•!in.iaii. tho directors and tho staff. 'He 'h'lii.n-'ht they ought to bo proud of iheir manager. The motion was carried by aoelania--lio-!.