Kia Ora Co-operative Dairying Company, Ltd,

NZ Truth, Issue 444, 20 December 1913, Page 4

Kia Ora Co-operative Dairying Company, Ltd,

Balance-sheet at August 31, 1913.

The authorised capital of this company is £10,000 m £1 shares. The amount paid up is at date ot balancesheet £552« J. There is only a trifle of uncalled capital to come m, so the company's liabilities are very heavy, considered from mat standpoint. These total * £5569, cf which the Bank is creditor to the extent of £679?. This is the kind of overdraft which lies heavily op tho financial chest. It ia stated that the Bank is secured by debentures and mortgage on proper*, ties, machinery and plant It looks all the same a pretty dead affair, and we are led to ask why it' is that the Bank does not make the company find the. cash to pay the liability. The ' fact is that such lenient treatment by bankers has a bad effect upon the farmers. They are apt to let finances slide and live beyond their means. In this company wo find things are so unsatisfactory that no less than 31 shareholders failed 10 pay' their calls, and the shares, numbering 336, were forfeited. No doubt this section' of proprietors were very prompt \vL drawing a milk cheque when such w&3~due to them, but calls are a different sjtory altogether. During the coming season we expect that the bank will shako things up a bit, and small blame to them for doing so. On the assets side we find £12,351 In freeholds, leasehold, andi plant after writing onT £560 for depreciation. Tho bank is really more interested m thin concern than iv» own shareholders. They have more money at stake tnan is warranted under the circumstances. It is a striking INSTANCE OF THE MUDDLE METHODS \ which arise from the dual control of State directors and squabbling shareholders 1 directors. WhatVa time they are all having. The company has a list of debtors making £3270 m all. Some are secured and others are I 'hot, but In any case this is x large amount of "tick" for a company owing 90 much money to indulge m. Besides the lock up of money, there remalna an element of risk m this item which is not very comfortable to think of. Before leaving the assets it is necessary to remark that the' company has revnlued its properties, machinery and plant. The increased value of i-h,e land is slated to be equal to any depreciation m machinery ami plant,* and therefore no writing off from the-lat-ter Is attempted this. y«»ar. "Cambist" thinks this policy Is adopted only to bnuble funds to be" paid nwny as bonus to suppliers, and to llnd -xish for the dividend. The company m its Dominion "borrow or burst" mot hods has reached out for what It has not earned, viz.. the unearned Increme.it. This should not be done m v case of this kind. It is enough to umku the creditors roar, and oak for a prompt, .settlement ot accounts. The working account dMelost-s «oro« remarkable features. First the concern does a "mllk-oh" business In th« town of Gifiborne. This ought to bo a very payable branch. If milk is procurable at the mi me price that In given for butter- making supplies. The results appear so small and the charge for milk quoted Is so heavy, compared with the sales returns, that we aro lead to conclude this branch Is hardly worth tho trouble ot running. It would appear tho town milk supplier baa a better run than the "cocile" "Who slaves further back. Ono is paid more for his milk than the other. Not much co-operation about tho matter anyx«Tiy. Tho return under this head l» altogether too small for th« <>xjh*ndlturo It Involves thy conn any m. Secondly, out of £23,705 worth of butter sold only £11,103 wont to the "Old Dart." The balance was disposed of [locally. This Is hotter than exportIng, but it does not provide tho hand«omo exchanges which are dear to th« hankers heart. Perhaps tho butter i* not good enough for export, for th* "overrun" Is given as ICV4 P*sr cent., which appears A PRETTY HIGH PERCENTAGE, but It means profl'. to the sales account. Tho company pays a 6 per cent, dividend on the shsitv 3i|>ltal, which absorbs £265. A unnua of 3-Slha ot a penny pt»r Ib on butt«r fat amount* lo £550, while 4. '251' goi*a to re»erv« (making- it £l:.'?> 0). and £328 Ik carried forward. There is nothing to citcklo about In ihl*. Xothlnjj mor» could have been done under tho circuiiwtonccß. The company owes too much rnons'y, and ho« to pay a bitf lot ol li« i?ttrnin«jf awny m lnteroj*t and other expejuu*. Then' the puppUrn of i milk h»v<! fallen, owing to a dry be«soii. Added to thtii comi'it nn> ll«?m nut rftforred to by thft p«ico» loving director*, t.<?., the »en«?nil poor quality of me milk supplied. Tl»J« comes uh a Krwit *urprJ«e to "Cambiai," r«r h# knows how rich the country Is m tho ■Poverty Bay dletrlct. it In quite evident the fanners fiavo gnmt n«?«tl to cull out thflr dairy iH*r<t*. and «btala »«iock which will >»««U1 fouioililn? belter thnn 3-Kth» buttor-fal. it would \>v Wlw* for the** |>«opl* to g(t 4 jy 1 h,, \v«yH nnd >nrllu>«l>« oC Ujo fMiHuivd I);u».% whi» tms ««: th^ ntnn<lnrd for awry thine eonnectwl with dalryinjf. i.(!t yur Hsu*! Con*i /rlendrt attend to llu» hr«HMlln« of OiHch wutle. *to iijai the iif»«tr!ct In- no longer pol^trd to, n* one unable ut tmm\*n> with 01 her l>|a<u* In iho buUM>-f«t( btiKlnrft*. The MiUiUon «f iho«c pruh|iMn« will mi sully occupy tho lolnurn montenin or jhp dairy farmer«, that n o tj mo W ill »»« av»lhiU<s for loafing roun.l Kaj-weW i 'Union meeting w tnjcylnf? the dc!Hfjthl« of chafing »trU«cr» wHh l)h.««lKeorw. Truly this tlu<> llttl- roMtttry uffi.trt much work. .in<! xrcM »cjjm. j.t tmiin& It l« Ind««d a 'M>' thai thinjf* »r<? not »n*>r« iM»nuib!y «»Jju/»i«*<| 4 for ■the *&ku of general happintfitf.