GEAR MEAT CO.

New Zealand Times, Volume LI, Issue 12016, 19 December 1924, Page 2

GEAR MEAT CO.

ANNUAL MEETINC INTERESTING REVIEW BY CHAIRMAN. SATISFACTORY RESULTS OF YEAR . The annual general meeting of the Geftr Meat Preserving and Freezing Company of New Zealand was held on Wednesday, Mr W. H. Millwaxd presiding. In moving the adoption of the report, the chairman congratulated the company upon the satisfactory results of the year’s operations. Last season, he. said, opened with the keenest competition from all sources, and high prices were' paid for sheep and .lambs. After the early shipments it was found difficult to do business on o.i.f: terms at remunerative rates, .and from January 'onwards values fell considerably and forward business was out of the question. Lower prices, however, stimulated consumption, stocks became lessened, and, as a rtsult,' satisfactory sales later eventuated; _The company’s strong financial position- enabled it to . hold a great part of its consignments over the unfavourable .period referred to, and thereby to obtain full advantage of the improving situation; CONDITIONS ON CONTINENT.

Conditions on the Continent of 'Europe have recently been more stable, and. as a consequence several shipments of second quality beef have been made to various points, and there is a prospeot -of a continuance. Most of- the business was done with South America, and the' enormous expansion of'. Argentine exports to meet this demand has astonished even those well acquainted with the trade, and is eloquent evidence .of -tho resources of that country. - V ■ The markets tor tallow and pelts have been good, and for wool excellent, there' having been advances, practically throughout ’the year. At present the prices of most of the products in whioh .the company is interested: appear to he dangerously highl and it is-feared that consumption may be curtailed to on extent .which may bring about some'-de-gree of reaction. Even wool, although statistically in so strong a position, is liable to he. .effected by lower ■ costs of cotton, silk, and artificial silk.

MEAT TRADE IN GREAT BRITAIN.. . (the course of the meat trade in ; Great Britain has attracted considerable attention in tho Imperial Parlia- .- meat, fnd at present, a committee, set up by the Government and presided < ovsj. by Sir Auckland Geddes, is investigating the subject: of food costs gener:ally,. -Jt will be watch, the ; trend 'of l events. The spring have been good; and stock Tn this district has done well: -The lambing in the North Island as a whole has not been- ao ,favourable as last year. The' opfiPipa prices,, owing .to shortage of supplies at Home, have created a record. but, it remains to be seen whether they.can 'be maintained. In the mean..time, the farmer ;is. reaping*:A'reward he (Well deserves. ' , . ' , Reductions- in freight on meat have Jbeeii, obtained, and freezing charges ’ have also been lowered. The company’s ,tatea,_are on the. basis «f . the -loWeat' ruling In the Dominion. / Hie property’and’'plant have been well and carefully maintained. Every:ttung will be ready for the cut-over as' soon. aa,’. ;the . hydro-electris'- -power' is available. ' In April last the Hon. Dr A. K. Newman, M.L.C., passed away, after '□B>Tin2 .dmji ft vdurectoj.iofv th© / company ror thirty-,4iin© years, Jlming 'which time rj. Tendered valualile service; .A t euit. able minute was recorded, and a' copy forwarded io / his son;

DISTRIBUTION OF WAR STOCK. During 1918 and 1919 the company was compelled by law *to subscribe to oottaui. Government loans raised fpr war purposes and bearing interest at‘ 4} per cent, per., annum, free of tax. As these securities are not noW required, it- is proposed, as set out in the report accompanying the balance-sheet, to apportion the greater part of them' amongst shareholders on the basis of one pound face value of, inscribed etock for «»»* share m the company. As the Treasury Will not subdivide' .into sums of less than £lO. balances below that ‘figure DMd oash market "value—- * x i . **?•*- esnt. In -order to cany out this transaction, certain reserves of l<mg etanding 'and appropriations foi‘ contingencies, which have ceased to

exist'Or 'have otherwise bean provided ; for, hare been brought to credit qf j profit and loss account, and thence ’ trannferrod to the reserve funds, from which" distribution will be effected. To enable this to be done, it m neceSv , sary to alter the articles of association, and for this purpose an extraordinary general meeting of shareholders. wjlL .be . held at the dose of this meeting. If , the necessary resolutions are passed this / evening, they will be brought forward j for confirmation on January' 7tK. r “ *' ; STRONG FINANQIAIi POSITION. '• .From the balance-sheet you will see ; that, even after the distribution shall have been made, the company will 'etill be in a particularly strong financial ' position; also that there is a consider! • able internal reserve in the valnee at 1 which the property and plant appear in ■ the hooks. The earning power" 1 will naturally he. affected somewhat, hut the > directors recommend the adoption of ; the proposal, as it' is undesirable' that' : the company should assume the fane- , ! . tions of an investment, company. In conclusion, I wish to extend -to- - i the, general manager, head office and ‘ London staffs, buyers, heads of depart- ■ • ments, and the employers generally, the thanks oft the board for the good -work ■ which they.- have collectively and indi~ • • viduolly so faithfully performed. . WONDERFUL PROGRESS. ' Sir Francis Bell, the senior director. , on the board, who, seconded the. motion, . said that dnring the 33 years since. . ’ he had first taken a seat on the board the,company had grown out of reooghi- ; tiou.. It was the proposal ;of theboard to divide the money subscribed to -the . 1 war, loan .bearing interest at -per. cent., but.that did ’not in the least reduce the value of tjie shares which the ' , shareholders; held. Year by year • the ’ company had been. successful.. They ; , had not divided what they had avail- , able; they paid off; the old obligations, had . written down their and they ngw had a, surplus of funds, ! : surplus of what necessary for the 1 conduct of the affairs of tbe company. They did' not owe a shilling of penmanI ent debt, - although they " uSu*, of ; 1 course, the ordinary debit and Credit:: ■ amounts. They , did not owe any, - ■ money on mortgage,, and had invested. - £698,000;" This " satisfactory , position. . i was due to the careful and skilful man-; - , agement, which he (Sir Francis 1 ’ Bell) did not pretend to hate a- rqal • i share' in. The man to whom their-proa- ' i perity was due occupied the' chair aft , that meeting. He thought the shared : holders would he gratified at the in; . crease of-the regular dividend from.B . per cent, to 10 per cent., tfiough they i should remember that they had a*y?ry; ' , dangerous business in one way. Thejc. ; always had to bny; they always'. paid; . as high prices as: anybody else,'and they always; had on hand a great, quantity, of .stock and products which-they had - paid i for and the sale of whioh> was . more or-leas guesswork. Prudence had . prevented, any catastrophe,, but- it was; ' . not a business in which they could af- ; ford to. distribute more than a. reason- ‘ . able dividend. The large funds they ■ had were necessary. to enable them to ,• , meet in . the future, as they had in .the , past, any-possible loss out of theit/own ~ pockets, ; and not -by ' borrowing from i others. He hoped- the shareholders I would support tljat policy and. allow .the board to be as conservative and. careful . in the future as; they-had been in the - past. He had great pleasure in second- . nig the report. ~ The report; and.balance-sheet -were' ! adopted. _ i , , • The chairman-moved that a dividendof la 9d -» share, of which' 6d waa-pAid,; and a bonus- -of '3d-otttotf'ihe .'ppid-' )’■. pany’a reserve be made payable forth-' ; ' • ; ’ ‘ "„This Was "carried. .. - -v, i> ■ - Messrs' W. H. S. .Moorhouge -and -A ! J Strange, retiring directors, were. - re-! • elected, to the,board, and MessreHunt a^d; Dim-mock -were reappointed . audi-' |. f .. At an extraordinary general.. meet- ; ' ing which followed, resolutions relative i to the .proposals mentioned by the chair- ; man in his-speech- were adopted, and will. be. the subject of a confirmatory meeting in January. [ ' A vote of thanks to the genera}-s •: manager /-and staff concluded tbe t proceedings. i>i ~