NEW ZEALAND REFRIGERATING COMPANY.

Otago Witness, Issue 2164, 15 August 1895, Page 14

NEW ZEALAND REFRIGERATING COMPANY.

The fourteenth annual meeting of the New Zealand Refrigerating Company was held in tbe hall vf the Chamber of Commerce on the afternoon of the 7th. Mr T. Bxydone (vice-chairman of the company) presided, and there were 19 shareholders present. ANNUAL REPOET.

The Chairman, in moving the adoption of the report (which h*s' already been published) and balance sheet, Enid he had been absent from New Zealand for th 6 last six or seven weeks, during which time the accounts were being made up, and he had only got back to his office on the previous day, when the San Francisco mail had engaged liis attention. He had consequently not had much time to devote to the balauce shott ; but Mr B. gg had been helping with it, and he would probably give any necessary explanation in seconding the motion. Before sitting down, howeyer, he desired to fay a few words respecting the exportation of

stock. He was in Sydney when the Southern Crofs loaded up with about 600 head of cattle,

1000 sheep, aud a lot of horses for tbe old country. He wss on board the steamer several times when the stock waß being put on and he saw how she was fitted up, and he could not say he was favourably impressed with either

the stock or tbe fitting*, or with the steamer

herself. He felt confident that unless better arrangements were made find more suitable sbcame'rs obtained the sending Home of lire stock would be a failure. In any case it would, he was afraid, be a very risky business for New Zealand, &s the distance was so great and ths expenses were so heavy. The cattle which were being taken Home by the Southern Cross would cost for freight and food £14 a head. In addition to that there would be insurance charges and so much for death rate. He was perfectly satisfied that there would be a heavy

death rate among those cattle before the

Southern Cross reached London. He did not think the arrangements were good when four big bullocks were placed in one pea and when sheep were put above the poop on a temporary

platform, where they were 20ft or 25ft from the water, for he was sure that if there was a big

storm the whole thiDg would go " smash." He held a rather different opinion with regard to chilled meat, in which he thought he saw the

silver lining to the cloud that had been hanging -over (hem so long. A New Zealand gentleman, whowat at Home at the time when the Gothic's chtt'ed meat arrived in London, was that day in Duuedin, and the speaker had had a long coo-

venation with him with reference to it. This gentleman told him that he was present when the meat was sold in Smitbfield, and saw it thtre, and that it looked really first-class — dry and clean, — and that it smelt sweet ; and he himself took a roast of it home, and it ate as well as any English beef he over tasted. There waa a good demand for it, and it sold at an average-price of s£d per lb. Of course, they were all hindquarters that were sent Home ; but, comparing the chilled beef with the hindquarters of frozen meat which were sold at the same time, we found that the frozen qutrUri told at 3|d per lb as against s£d per lb for the chilled meat. The freight that was charged km l'Sbd per lb, that being estimated to give the same freight to the steamer as frozen rhuttoa at Id per lb in the same space. That had lie en an experimental shipment, and when shippers learnt better to pack the beef and put more into the space, the beef would be carried at a lets "price per lb. He thought that the freight for chilled beef would net be more than l^d per lb when once there were proper arrangements and it 'was understcod how to pack the be*f. It had been reported regarding the Gothic* shipment that when the steamer was at Teneiiff » the meat had to bs frozen as it was setting out of condition, but that was not true. A cable was sent by the owners to the ship at Teneriife stating that if tha meat was not

CAjrrrujg well the temperature was to be reduced, and the engineer thought he would probably be running a risk if he d«d cob reduce

the temperature, but he only reduced it one degree, makJDg the temperature 28deg or 29deg, and, of course, that did not freeze the

meat, which was landed in Londou as cool beef --it was not frozen at all. Taking into consideration the difference between the price- of chilled beef and that of frozen meat, there was a difference of 2£d per lb in favour of chilled meat, arid the deduction of the £d per lb extra freight left a difference of l|d per lb in favour of chilling, or 13s 6d per 1001b. Some large London salesmen were prepared to contract for carcase beef, all the year round, at 4|d per lb, and as the cost, including London charge*, would not exceed 2d per lb, that would leave 2sd per lb here, or 23s per 1001b. If that result could be attained it would be a splendid thing for owners of cattle, and they would not hear much more about dull markets.

Mr James Smith (of Greenfield) : How about ehetp P

The Chaibman did not Eec why the chilliDg of ibeep should not be made a success as well as the chilling of beef. If they could get a proportion of tbe sheep they sent away — say half, or even a quarter — chilled and get Id or l£d per lb more for these it would be a very good thing for the iheepowners, and he did not see why it could not be done. The Shaw, S&vill, and

Albion Company were so well satisfied with tbe retnlt of the Gothic shipment that they were fitting up one of their big steamers to carry a much larger quantity of beef ; and the people who had got this beef at Home were all well versed in freezing matters and were thoroughly B&tioEed with the beef that arrived at Home, and they were determined to go ahead.

Mr B. B. Caegill : Has the chilled beef to be hung up ? •The Chairman : Partly.' A part is hung up and' a part is laid in frames.

Mr John Mill confirmed the chairman's Statement on this poii.t.

The Chairman s«d the gentleman to whom he had referred stated tb*t the beaf was perfectly dry, and one would have thought it was only killed the day before, it was so fresh and nice looking and had the bloom on it. With these remarks he moved the adoption of the report. Mr A. O. Begg, in seconding the adoption of the report and balance' sheet, said I tm glad that we are able to show a better result for the

past year's working than we were able to do at our last annual meeting. We had thsn b:en subjected to a ruinous compstHion by freezing companies in Southland, which compelled U3 to buy sheep to fill up chartered shipping space, and this resulted in the loss now standing in our books. This competition resulted in much more le^ous loes to these other companies, and Eoan same to an end, and I am glad to say that' for the past year our works hava been kept fully employed, and we have been able entirely to avoid any Bpecu'ative business, and to do all our work on a commifsion basis. The number of sbeep and lambs put throngh our works for the pist year has been the largest since the beginning of the company, the numbers being 269,909, as against the largest number in any previous year — v'z., 247,784 in 1891. In order to get through this number we had to supplement our Burnaide works by the charter of tie freezing hulk Edwin Fox for tome months, as stated in (he report. The net profit for the year was £1034 4s 6d, which the directors propose should be used in reduction of the debit of the previous year. This will then stand at £4325 10i lOd. The directors realise that the amount of profit made is not commensurate with the business done, and in order to provide for a reasonable dividend to shareholders it will be necessary to devise means for the reduction of expenses on the one side and the increase of income on the other. A considerable item in which we are at a disadvantage is the high rate charged for harbour dues here, the rate being l£d pVr sheep, against a charge of £d per sheep at Oamaru and Bluff Harbour. It will probably be necessary for the future to charge this to shippers, unless the rates can in some way bs equalised. The care exercised in freezing only first-class mutton and lamb has resulted in the excelU nee of our output being reoognised and commented on by selling agents and buyers in London, and we intend to continue the most careful inspection and grading of all thetp dealt with at our works. While the prices current in London during the early months of this year were most disappointing, and resulted in serious losses, it is quite clear that the market is now in a much more hopeful position. Prices have materially improved, and there is every indication of still better prices for the coming season. We expect soon to have a considerable reduction in the rates of freight, aud thall do everything in our power to bring this 'about. As stated in the report, the board thought it desirable to consolidate the liabilities of the company, and to tbis tnd they invited tenders for an issue of £10,000 of 6 per cent, debentures. The tenders considerably exceeded the amount required, and the whole issue was taken up at a premium. The policy of the board has always baen to give every facility to the farmers and graziers and to place them in the best position for obtaining a good market, and it is intended that for the future applications for freezing space from growers shall always have the preference. We expect and think we are entitled to, the support of the sheepowners of cur own district, and it will be an evil day for them if by their apathy or indifference they allow a local company like oars to be crippled from want of their support. I would like to express the pleasure with which I listened to what the chairman has said with regard to chilled beef. It is one of the most cheering things in connection with the export of meat that we have heard for & long time. If, as Mr Smith suggests, mutton can be chilled in the same way, there will be a good deal more daylight let in for the future than there hts been for the past. We have ben going through trying and troublous time*, both as regards undue competition in the colony and low prices at Home, but, with tbe prospect in view of better prices for frozen mutton and the initiation of the trade in chilled meat, 1 think that for the future there ia every expectation of considerably better results. — (Hear, hear.)

Mr Mill was pleased ' to Bee that the company had bean so successful for the past 12 months, considering the times they had come through. If they looked to the south they saw that a freezing company ~dowa there was "going round with the hat" in the attempt to carry on, and that had been the case with this company in the sense that it hail not been able to pay any dividend. Like other shareholders, he put his money into the concern with the expectation of getting a dividend, out of it, because he had no sheep, and was unlike the gentlemen in the company who, having sheep, participated in the profit. However, he was getting no return, and be was very thankful that thiogs were not a great deal worse.

The Chairman : Be thankful that yon have no sheep, John. — (Laughter).

Mr Mill reccguised that there were other people who were worse off. He thought that if the directors paid attention during the incoming year to passing events — to the chilled beef industry and to the possibility of chilling mutton — and kept down expenses, the shareholders might yet look forward to getting a return for their money.

Mr W. Patrick mentioned tbafc he had tried chilled beef here for six weeks, and- had sent it out to his customers without their being at all the wiser. — (" Hear" and laughter.)

Mr J. Hbrbeht agreed to a very great extent with what Mr Mill had said, but would like an explanation from the directors as to ho w they proposed to reduce expenses. The directors admitted that the last year had been the most successful they had experienced, and yet Mr Begg anticipated clapping extra charges on the shoulders of the eheepowners. He did not think that would be a step in the right direction, for they all knew that the sheepshippers had lately had the most miserable returns for their sheep, and if other charge! were to be clapped on at thia end ifc would simply stop shipping altogether.

The Chairman said that nothing defi'iifce had been done iv the matter to which Mr Herbert alluded. The directors were in treaty now with the shipping companies, and if the arrangement that was proposed was carried out the company would gain a good deal of money in that way. The directors also proposed to do the same as other employers of labour had been doing for the last two or three months— reduce their wages as fur as was possible. — (Hear.) In the winter time they had to keep on some men when there was not much doing, but it was expected that there would be a shorter vacation, this year and money would also be

saved in that way. OF course, the machinery nt the works was getting pretty obsolete and required more expenditure in coals than that of some of the larger companies near Christchurch, WellingtoD, and H&wWs Bay, where they had the very lntest machinery and probably used two to three tDcs of coal a day instead of eight to 10 tons a day. He saw gome machinery in Sydney that wbs roceutly put up, and instead of uting 10 tons of coal could do with under three tons a day, and th*t was a very great saving. The directors had, however, to work with their old machinery and were at a great dis id vantage. They had not the capital to buy new machinery and he questioned if they could raise it in the meantime. They had had tenders from people for altering the plant so that they might 6ave a good de»l of coal, but they did nob 6ee where they would get the means to procure new plant. The shareholders might rely that everything would be done to reduce expenses.

Mr Herbert asked wh\t the difference was between chilling and freezing meat ?

The Chairman said he could not answer the question very cerrectly, but there was not the same quantity of cold air wanted for chilliDg and consequently there were less coals required, and he thought that tho effect would be to save steam on the way Home with the consequence that the steamers would bo able to carry at a let-K proportionate cost. The motion was then put and carried.

ELECTION OF DIRECTORS AND AUDITOR

Mr Mill proposed the le-election of Messrs A. C. Begg and B. B. Cargill, the retiring directors, remarking that theje gantlemen were well and favourably known to every one of the shareholders.

Mr Smith seconded the motion, which was carried unanimoubly.

On the motion of Mr Hesbert, seconded by Mr W. M'Aium, Mr Thomas Callender was re-elected auditor of the company.

directors' fee?. The Chairman, while thinking that as a r^e a letter was not worthy of notice if the wrifct-r had not the pluck to put his name to the foot — (hear, hear), — drew attention to a letber signed "A Shareholder" in the previous morning's Daily Times, in which reference was made ti the directors' fees. During the last year, he explained, the fees drawn by the directors amounted to £89 ss ; in the year before, they were £81 18j : and in the year before that, £9410s'. He did not think these were very extravagant fees for the management of a company, even if it was a tmill company and net paying dividends — (Hear.) For his part, anysne who wiehod his seat on the boatd was welcome to it.

ALTERATION OP ARTICLES. The meeting then resolved itself into an extraordinary general natetiug for the consideration of the following resolutions :—: — That the article) of association of the company be altered by inserting after article 13 the following article as article 13a :— " 13a. Ihe directors m iy also decline to register any transfer of Bbare3 without assigning any reason therefor." That the company's memorandum of association be altered by substituting for object 3 "a," "b," "c," "d," /," "g," and "ft" the following objects— via : (t») To carry on the business of a meat refrigerating company with power to borrow ruoney aud to secure the repiycuent thereof by bills of sale or mortgages of the property of the company and its uncalled capital or by debentures charged on such property and uncalled capital, and with further power to accept bills of exchange and make piomissory notes for moneys borrowed or in the ordinary course of business. (&) Generally to do all thinga incidental to tho said object or conducive to the attainment thereof.

The Chairman explained, with regard to the first alteration, that the clause proposed to be inserted was in most articles of association, and fcliould be in thesa of this company. When the directors got money on debentures lately the people who proposed taking up debentures said it would be necessary to have this clause inserted, and the board promised to bring it before the general meeting of the company.

Mr A. Holmes, solicitor t6 the company, explained the reason for the second alteration. The memorandum of asscciation was, he said, drafted in 1881 and following that came ♦• The Stamp Act 1882," which imposed an annual license fee on all joint stock companies Shortly after 1882 a claim was mado upon the company for tho payment of thai; fee, but that claim was resisted under advice, for even a? it was, the company's bus : ness was within the exemptions contained in the schedule of the Stamp Act. After some negotiations between the company and the then Commissioner of Stamps, tbe c'aim againit the company was abandoned, and nothing more was heard of it for several years. This year the Stamp OJSoa had revived the claim, but he thought the company would be able to resist the payment. However, in 1891, an act was passed empowering cempanids to alter their memorandum of association, and, after consultation, the directors decided that it would be better perhaps to be prepared for a possibly adverse decision, and to take power to restrict the memorandum of association »o as to clearly exempt the company from the payment of the annual license fee in future. In reply to Mr T. Finnic, The Chairman said the object of the first alteration was to prevent shares going into the hands of people who had no means. If the shares of the company were transferred to such people the debenture-holders lost part of their security.

Mr Cargill added that the debentureholders took up their debentures on the faith of the present share list.

Mr Bkgo remarked that in the event of a transfer to a responsible person being presented the directors would never think of not accepting it.

Mr Hugh Ross (of Awamoko), who handed in several proxies, said he was piegent to object, on behalf of himfelf and others.

The Chairman remarked that as the resolutions would have to bs confirmed at a subsequent meeting there would be another opportunity of objecting.

On the motion of Mr W. t. Simpson, seconded by Mr T. W Kkjipthohnb, both resolutions were then put and carried. This concluded the business.

U p to 1 o'clock on Saturday 76 married men and 33 single men made application its uiisniployed relief work at Wellington