A STORMY MEETING

Poverty Bay Herald, Volume LX, Issue 18191, 12 September 1933, Page 8

A STORMY MEETING

KIA ORA DAIRY CO. SPEAKER COUNTED OUT An uproar occurred at the annual meeting of shareholders of the Kia Ora Co-operative Dairy Company, Limited, to-day. One of the questioners was counted out, and was eventually asked by the chairman i .Mr (!. R. Moore, to leave the hall. There was an attendance of about 200 shareholders in the MnkainkaMntawlioro Hall. Questions regarding the balance-sheet led to cross-talk, a conflict of opinion between the chairman and one of the speakers who attracted some sharp comment from Mr Moore, interjections from many of those present, and an eventual counting out and uproar.

Early in the meeting, Mr D. Cribble pointed out that last year’s balancesheet showed that £1330 was carried forward, but the current balance-sheet showed that the amount carried forward on that occasion was only £SI.T. Where was the dcficiencv of £f>oo? he asked. The secretary, Mr .1. If. Sunderland, replied that since the balance-sheet was printed, the market improved, and instead of paying a bonus of Id as was suggested bv the directors, ii was subsequently decided, in view of the additional receipts, to fix the bonus at fd. The surplus was shown in last year’s balance-sheet ns £7730 IDs lid, and the Id bonus was based on this figure, but the improvement in the market brought; this total up to £9313, enabling the Jd bonus to be paid. The payments were £IOO7 in dividend and £7491 in bonus, leaving i'Sl.l to be carried forward, and that was the amount shown in the Intest balancesheet. QUESTION OF PAY-OUT Mr. (Tribble asked why the directors had not shown the interest received from Government bonds. The chairman replied that it was included as “interest received.” Mr. Gribble maintained that the balance sheet \va,s merely a conglomeration of figures, and the shareholders should be given more information. Mr. Sunderland said that in tho past tho company had erred by showing too manv accounts.

Mr. W. IS. Black criticised the balance sheet, and maintained that the average pay-out of 9.63 d per lb. did not show the true position. An explanation was made by the secretary, who said that Kia Ora was one of the few companies that paid out a dividend on its capital, which was the true method. Mr. Black contended that the balance sheet was compiled in such a way thatthe shareholders could not understand it. No shareholder could say from the balance sheet actually what lie bad been paid. Mr. Gribble: I can tell you—B.4sßd. Mr. Black: That’s what 1 make ft. The secretary did not agree. It. was at this point that the, real uproar began. There had been a number of interjections before this, but they became frequent now, and someone suggested that the motion adopting the report and balance-sheet should lie put to the meeting. Mr. Black declared that this would be contrary to the Companies Act, but the meeting insisted, and, above the uproar, the chairman put the motion, which was carried.

Mr. Gribble said the questions had not been answered according to the articles of association. Mr. Black declared that the shareholders did not like the truth, anil further cross talk ensued, ending in count-ing-out.

Eventually, the chairman said: “Mr. Black. Will you kindly leave the hall?” Mr. Black went. “The season under review lias been a most difficult one. Your directors have endeavored to maintain a reasonable monthly pay-out, notwithstanding the very low range of values on the London market for stocks of butter on which higher rates of pay-out had been given than the realising values warranted. The accumulation of excessive 1 stocks in London was largely caused by our Australian friends’ policy of selling her production on an f.o.b, basis,” said Mr. Moore, in moving the. adoption of the annual report “They realised that the production of Empire butter would be substantially greater than the previous year, and took the f.o.b. offers in preference to selling on consignment. We are assured that d some arrangement had been made for tlie Australian production of butter to be shipped in restricted quantities as was done here, the market values would not have fallen below the market price of 80s. it was on account of this information that your directors decided to stop selling on the. London market until tho values improved.

“When the final account sales are fo hand we anticipate an additional surplus, but it is not likely that the amount will be sufficient to warrant a further payment on account of last season. The suppliers of this season will benefit accordingly. HIGH QUALITY BUTTER “In regard to quality, I lie average grade as given by the Department of agriculture for our butter is 93.328, as compared with 93.225 the previous season. This is a very high average grade for a factory with over IQCO suppliers, and an output of 1600 tons. “The suppliers are to he warmly congratulated on this success. Unless a good quality cream was supplied we could not reach this high standard of quality. “Your directors are very pleased with the work done by Mr. McKenzie, farm dairy instructor. The suppliers have found him at all times willing to help in any difficulty they have had to contend with. lie lias carried out his duties in a very courteous manner and lias materially assisted in the efforts to not only maintain, but steadily improve the quality of the company’s butter. “The figures under review do not call for much comment, as all departments have been run oil an economical basis, the increases being for extra materials required for the increased output. The cost of disposal to f.0.b., £4952 7s 7d, as against £4036 15s 9d, appears high, but on analysis it is found that Ibis shows a proportional increase of 1.4 per cent., this being on account of the stocks being held for slightly longer periods in the cold stores awaiting shipment. The total interest paid to the bank for overdraft was £llls 14s 2d, whereas your company has received £1599 Os 4d as interest on advances, and £435 2s Id commission on insurance, and the sale of separators, making a total surplus of £919 8s 2d, or considerably more than was paid for office salaries. “A total sum of £16,994 13s lias been received on account of exchange as against C 8667 17s 6d the previous season. Your directors congratulate the Government on the step taken by them in this connection. It saved the dairying industry from a total collapse, and it is hoped that the present rates of exchange will he maintained until values have been raised to a payable level.

"The thanks of the shareholders arc due to your factory and office staffs, all of whom have carried out their duties in an efficient manner.”

RE-ELECTION OF DIRECTORS The retiring directors, Messrs. W. McCullough, J. Davenport and H. M. White, were re-elected unopposed, and Messrs. Graham and Dobson were reappointed auditors. It, was agreed that the honorarium of the chairman be the same as last Year, £1.70.

Moving a hearty vote of thanks to the directors for their services during the year, Mr J. E. Henson said that the shareholders were indebted for the valuable services they had rendered. This Was carried by acclamation, and Messrs. Davenport and White were also thanked, on the motion of Mr McCullough. for the amount of time they had put into the company's business. tu an address on cream grading and cure of cream by the suppliers, Mr G. Purvis, dairy produce grader and instructor, congratulated the suppliers, manager and stall’ on the improvement in the quality of the butter and also with regard to the moisture content. A vote of thanks was passed to the staff for its efforts during the season. It was suggested that tlie hatter boxes should he wired to prevent breakages. The chairman said that the company’s boxes were the best in New Zealand, and lie did not think that many were broken. The questioner, however, said that lie laid seen them broken by the hundreds. Mr. G. Purvis, dairy produce grader and instructor, said that wiring would greatly strengthen the boxes, bill both ends must be wired to bo effective.

In. reply to a question, the secretary, Mr. ,1. if. Sunderland, said that tlie regulation prohibiting a supplier changing from one factory to the other during tho season was brought into force on August. 1. The company had decided that, if a supplier had a grievance, the supplier would he given power to go wherever lie liked with his cream. If a supplier had a grievance, the directors were confident that- it could he remedied. The regulation referred to might have been necessary in some other parts of New Zealand, hut the directors found that the company had lost very few suppliers once they had started supplying tlie factory. A hearty vote of thanks to the secretary was carried hv acclamation and to the management committee that served the luncheon. The motion regarding the luncheon was moved by a, lady, who said that there would he more ladies at (lie next, annual meeting. A vote of thank.*, to tlie chair concluded the meeting.