SHANNON DAIRY COMPANY.

Otaki Mail, 15 August 1928, Page 3

SHANNON DAIRY COMPANY.

ANNUAL MEETING OP SHARE- " HOLDEES. j About' fifty shareholders attended the. annual. meeting of the Shannon Co-operative Dairy Co., Ltd., held in the Druids' Hall on Saturday. The Chairman of Directors (Mr E. W. Taylor) presided, and he presented the annual report and balance sheet. DIRECTORS' REPORT. The 20th annual report was as follows: —The {result for the year's working is very satisfactory and shows an increase both in butteifat payment.and production, over last year. The amount of butter manufactured for the year was 814 tons l.cwt 1 qr lOlbs. being the highest output to date, and an increase over last year of 51 tons C cwt 2 qrs olbs. The average monthly payment for butter-fat was 16,635 d. Provision has been made in the balance sheet for a further payment of Isd per lb: on the season's supply, bringing the payment for butter-fat lor thc~ year to 18.385 d. The average grade was 94.26, all butter being of finest grade. The store business shows a slight, increase in sales and a nett profit of £Oll on the year. The amount to credit of profit and loss account as shown on balance sheet is £2631 Gs 6d. Out of this amount your Directors pro pose to pay the usual 0 per cent dividend and carry the balance forward. Mr G. Stiles, as one who was present at'the stocktaking of the drapery, said the stock was found-to be clean and little had to be discounted. This department had been exceedingly well run, the gross profis being 13 per cent, and the. nett profit 3.3. The store account was particularly good. The Chairman said this was very pleasing as last year there was a good deal of adverse criticism. Mr Ghrystall then moved the adoption of the report and balance sheet, which was seconded by Mr G. Barber and carried. ELECTION OF OFFICERS

The retiring directors, Messrs J Clirystall"and R. L.' Tippler, were re elected, there being no further noniina

nous. Mr Chrystall. in returning thanks, said ho took it as a vote of confidence not only in themselves but in the present Chairman and directors. Mr Tippler also returned thanks assuring the suppliers that he would again endeavour to give his bes: services ill the interests of the company. Messrs Henry Kember and Son were reelected auditors. TILE HALF HOLIDAY. A notice of motion by Mr If. W. Taylor: "That as the store department was started for the convenience of suppliers to the Company, and as Saturday is the usual marketing day for fanners, the store be kept open for business until 5 p.m. on that day," was seconded by Mr Chrystall, who said that fanners- generally would like the store to be kept open on Saturday afternoons. He said it was hoped that next year there would be a much larger turnover with the prospects of the ue/w bridge being' completed in. the near future. Mr-Stiles said he was against iho motion. At the annual meeting liefore last the shareholders had decided against keeping open on Saturday afternoons. The employees prcfeired Saturday for their half-holiday and if suppliers could shop on another day, they were to study their employees. "We should encourage the cooperative spirit not only with the suppliers but with our employees. If the shareholders want the store kept open it is alright, buf it' we can give our employees the holiday \yp should." lie asked if they were losing trade when the other stores were open. The Chairman said the question was, "Are we suiting the convenience of those from a distance.'" Me wanted to see the convenience of suppliers satisfied. He thought that when the bridge was open they will lose more trade by being closed on Saturdays. Mr James said it was for the shareholders; from an unselfish point of view, to decided, which was the mosl suitable day to close. Mr Tippler' said that, as ft director it was his duty to satisfy the shareholders. Personally, lie could not see that it made any difference which day they closed as the business was more wholesale than retail, in other places co-operative stores close on The chairman did not agree with Mr Tippler that the store was more wholesale than retail. He contended that they were in exactly the same position as a general storekeeper. ilr Gee Barber was of opinion thai it was not a question of competing with other stores. The success of their store rested largely with tiie work of the. staff and he ,understood that the staff had sent in a unanimous requisition that Saturday be observed. Mr Hyde pointed out that it rested with the Shannon Borough Council to declare which half day should be observed by business places in the borough . Wednesday was the half day declared by them and the Council had fii" power to enforce it. The Chairman: "Wo are catering for our own business, not the other man 's." The mo!ion on being put to the meeting was Just by a three to one majority. BUTTER V. CHEESE. Mr Geo. Barber moved that it be a recommendation to the directors, "That it be seriously considered by them the advisability of changing from butter to cheese." He said thst according to the market reports in other parts of the world and from the reports from the -people who handled their produce, cheese u'ould be the best proposition in the near future and even now was more profitable than butter. , Cheese prices . nat > held for some time ;<nd for the ,past twenty years cheese had been more profitable than butter. One factor was that companies who had got (heir pla>i( and property clear had been able during the past season to pay 1/10J anfi.l/fi for buttcrfat. He contended that with butter there was now -no outlook in regard to stability v iu price and there was a lot of opposition. Mr Jewell, in seconding the recomnu'iiOrtlioli, stfcongly favoured tiie (pieslion being gone into,"pointing out the Uncertainty of the butter market in the futme. They iciJj found under the butter control that -New Zealand butter w;,s not absolutely essential in England; it was boycotted. Further, with the erection in Siberia and Kussia of proprietary concerns financed by the Jargemercautile houses these proprietary factories were going to have a fyad effect bit our co-operative concerns, r.s tiiey would work in with the houses financially interested; with the result that our butter prices will be affected for years. When butter reached a certain price margarine came in. Cheese, he said was a staple food in the. United Kingdom Canada and IJ.-S.A- In the p:«st Canada was the largest competitor on the English market, but now most of the Canadian cheese was sold in Canada and U.S.A., leaving only New Zealand in the market.. "Experts advise us to pay more attention to cheese. It is not a question of sentiment; it is one of £ s. d. The argument is all in favour .of ;Mr James said that while not casting reflections on the previous" speakers, he considered it was a lot of "tommy rot" that Britain could do without New Zealand butter. This information wag quite contrary to what the agents thcia. One .agent told

them he required 3000 tons more this j year. 1

Mr. Stiles said they should know what the by-products .were worth to them. They had also got to cart milk. It would not tempt him to change ovfor butter. It was quite right that or at Is 8d for cheese against Is Old the directors should consider it, however.

Mr Clirystall said the one thing that would not turn him was the by-pro-ducts. The butter man could keep stamina in his herd, but the cheese man could not.

Mr W. S. Carter said he had had experience of both. The serious part with supplying a cheese .factory was haulage and he did not think.ld per lb covered this, while by-products were certainly ljd per lb in fayoui ef butter.

Mr R. Law said it was most important that they should consider that for the past twenty years they had been manufacturing butter and they were now in the position that they were envied all over New Zealand. •'Our pay-out is always equal ro anyother butter factory ajid with our grade we have no fear. We have done well and our goodwill is certainly worth looking after,'' he said. Mr Jewell: There is no complaint whatever against the Shannon Dairy Co., but we have arrived at a point when we have got to consider this question, lie maintained that indications everywhere are undoubtedly in favour of cheese.

Mr Law: If we switch from one to another we will soon lose our goodwill and it would be a bad .business.

Mr G. Barber said that, if it was better to make the change, tliey should have it. "If We are going to get something more, the directors should go into the matter to see whether it is right or wrong." The recommendation, with an atldi-. (ion, "That in the event of the directors considering the time is opportune to make a change the matter be returned back to the shareholders before action is taken," was carried. '

BONELESS VEAL. Mr Stiles, referring to boneless veal, stated that splendid results were be :ug obtained. Farmers would get every penny out of the scheme. They were guaranteed Ss per head and what there was in the by-products. He impressed upon those present that they should put their whole energy into the scheme and send only those ealvei that complied with the regulations. .In regard lo payment, calves supplied up to Die 20th of the month would be paid for on the next month's milk cheque.

A resolution was carried that the contractor for collecting calves, cart no other calves or buy calves on the Association *3 collecting day.

I RURAL CREDITS BOARD. Mr A. S. Faire, District Public Trustee, at I'almerston North then addressed those present, on the objects and advantages of a rural credit association under the Act. He stated.that the object of forming an association was to enable farmers by combining,, to obtain loans for those of the members who required finance. Provision was made for 20 farmers or more. The association borrowed from the central body at 6 per cent and lent the money Sut at 0i per cent, the half per cent providing the finance for working expenses. The amount limited to borrow i 3 £IOOO and one could only borrow for purposes specified in the Act. The loan was payable on demand and must be paid in five years, not necessarily the whole loan, but a portion. To form an association 20 farmers were obliged to take 25 £1 shares. Each member must take up 5 per cent of that stock on joining. For every .£lO which a man wished to borrow, he must take up one share. Twenty-live shares Would entitle a man to £250, 50 1o £SOO, and so on up to £IOOO. The association was simply a limited liability company, the maximum amount a member could lose being £25. The Board had power to advance for ten years free of interest a sum up to £25 to assist the initial cost of establishing an association. in other parts of New Zealand, particularly in the Waikato, advantage had been taken of the casting organisation of tin' daily companies. In conclusion*he said he would like the shareholders to consider whether an association could be formed. It was not limited to shareholders of the company: but look in others. He asked them not to confuse this Board with the Rural Advances Bocrd, which loaned nidney up to £SOOO at u" per cent. This Intermediate Board advanced up to £IOOO on stock for a term of live years. Mr Faire Avas accorded a hearty vote of thanks. A r OTES OF THANKS. !

Mr Ghrystall, in moving a vote of thanks to' Die managers and their staffs of the factory and stoic, said that, the average grade of 04.20 and all butter b'jing of finest grade alone spoke volumes. In connection with the store department I hey had a credit balance -jf £912, which was most satisfactory. Some were under the erroneous impression that the stock (£5000) had been paid for jut of buttorfnt, but this had been built up out of the profits. The motion was carried by acclamation, Messrs Aim and Cronqucst returning thanks. Mr G. Earlier moved a hearty vote of thanks to the directors for the way they had carried out their duties this year A vote of thinks was also accorded the suppliers. The meeting then closed with a voto of thanks to the chair.