A BRIGHT MEETING

Northern Advocate, 28 July 1934, Page 10

A BRIGHT MEETING

NORTHERN WAIROA SUPPLIERS DAIRY COMPANY AFFAIRS. SOME INFORMATIVE STATISTICS. With 300 of the 031 suppliers present, the meeting of the Northern Wairo.'i Dairy Company yesterday was characterised by the businesslike way in -which the affairs were conducted, Mr E. G. Appleton, chairman of directors, presided. Included in the valuable tables submitted .by the secretary, Mr M. de R. Petrie, was one showing the average grading of butter and butterfat for the season 1033-34, as follows:—Finest butter 85.2508 per cent, fat 73.4220 per cent; first, 14.0403 per cent, fot 24.7-171 per cent; second, .0009 per cent, fat 1.8303 per cent.

Another table showed the cost per lb. of butter manufactured, as follows; Cream collection, .283 d; manufacture, packing, factory depreciation and insurance, .530 d; wages and management, .ISSd; freight, storage and grading to f.0.b., ,303 d; overhead expenses, .115 d; total cost from farm to f.0.b., l.olSd.

1932-33—Cost from farm to f.o.b. per ton of butter, £l4 5s lid; 1933-34 — cost from farm to f.o.b. per ton of butter, £l4 3s 3d; reduction in cost per ton of butter, 2s Sd. Shares And Interest. Mr Arthur Cates alleged that some directors and shareholders, being “in the know,” were taking the opportunity of making their shares fully paid up, and securing further allotments as their supply increased. This, he stated, had the effect of speeding up shareholding of those persons., giving them an advantage in participating in the high dividend, and giving a greater voting strength. He had the authority of an ex-director that this practice was being followed. The chairman ruled that, unless specific instances were mentioned, the speaker, who had recourse to the company’s books, must not pursue the question further. 'Shareholding jvas based on production entirely. Contending that the rate of interest paid (0 per cent) was too high, especially in view of the fact that other mercantile concerns had dropped their dividend rate, Mr Cates moved that the articles <of association be amended to give the' directors power to alter the interest payment. The chairman said that a notice of motion was necessary, the arbitrary fixing of the interest having been decided upon by the shareholders. The directors had considered the question of share capital, and would do so further.

Air A. E. Harding said that while commercial companies had paid 10 per cent and 12 per cent in good times, the Dairy Company had never returned more: than 0 per cent. By providing the money at the lower rate when interest elswhcre was much higher, the earlier shareholders had rendered a great service to the company. Exchange. • In answer to many questions concerning exchange, the secretary said that the benefit actually received by the company was not 25 per cent, but .19 2-3 per cent. A voice: "Then there is somebody in -this country telling a great many lies.” Profit of Bank. "To what extent are the -hanks depriving us?” inquired a supplier. The secretary said the company had been successful in avoiding an overdraft this year. Roughly, • the hank made a gross profit on bills of lading of 30/ on every £IOO of export value. The gross profit made by the bank in its operations with the Dairy Company three years ago was between £OOOO and J&7000, which would be approximately the same as for the season .lust' closed. Marketing. Mr T. Walton expressed surprise that the cost of marketing a pound of butter on the London market was practically the same as 30 years ago. Cream Collection. To Mr Marshall, the chairman said that a considerable saving had been effected by collecting cream on contract in the Kirikopuni area. It seemed that longer runs could be done cheaper by contract, but for the purposes of safety, retention of the company’s own plant was advisable. Auditor. Mr A. L„ Billing was re-elected auditor at the same honorarium as last year, £45. Dairy Commission. Mr A. L. Cates moved, as a recommendation to the directors, that as soon as the report of the Dairy Commission was received, a general, meeting of suppliers be convened for discussion of the proposals. He understood that among other changes proposed was the licensing of dairy farmers. The motion was carried. General, On the motion of Mr S. McCullough, the directors wore recommended to take advantage of the Dairy Act and repurchase dry shares at par. "The dry shareholders,* with their fi per cent are a. drag on ns who are in the mud,” the mover said. Hearty cougratulafions were accorded the management ami staff upon the improvement in qualify made during the season, .and the notable triumphs at Auckland ami Hamilton dairy exhibitions. It was proposed that butter should be available to suppliers at cost price, but after the position had been fullly explained it was decided to continue to sell at .wholesale rates. Capital Increased. At an extraordinary meeting, the following resolution was carried unanimously: "That the nominal capital of the company be increased to the amount of £70,000 by the creation of additional capital of the amount of £IO,OOO divid - ed into -1000 shares of £2 10/ each, such shares to ho issued as ordinary

shares ranking as to interest and dividend and as to distribution of capital on a winding up pari passu with the ordinary shares in the existing capital of the company.”