SOUTHLAND FROZEN MEAT COMPANY

Southland Times, Issue 17656, 14 February 1916, Page 7

SOUTHLAND FROZEN MEAT COMPANY

ANNUAL MEETING. The annual meeting' of the Southland Frozen Aleut and Produce Kxport Co. Ltd., was held in Allen’s Hall on Saturday, the chairman of Directors (Mr John McQueen) presiding over an attendance of about thirty shareholders. The report and balance - sheet (already published) were taken as read. The Chairman, in moving the adoption of the report and balance - sheet, said that ho supposed that they were, satisfied. They had had, of course, some criticism of the balance - sheet since its publication from their old friend, Mr Wm. Handyside—(laughter)—and also from a shareholder. He was a little surprised to see Air Handysidc criticising the balance - sheet publicly. On a former occasion a number of years ago ho had criticised the Company’s balancesheet, but it was considered by the directors that ho was then going too far, and they had to him with an action for damages if he did not discontinue, Mr Handyside had at that time made charges, but, being a reasonable man, he saw the force of the directors’ grievance, and discontinued his criticism. One tiling the directors had insisted on when they withdrew the claim made against Mr Handyside was that he was to discontinue his criticism.

Mr R. Dunlop: He may plead the Statute of Limitations. The Chairman said that that did not affect a man's honourable promise. Ho would be sorry to compare Air Handyside to tbo Kaiser, but bo was going mighty close to the Kaiser in tearing up that scrap of paper. Personally, Mr McQueen said that he did not mind criticism, and as a matter of fact he was the only member of the board of directors who was against instituting a claim against Air Handyside on the occasion referred to. Air Handyside could not do anything that could damage the Company. He noticed that morning that Mr Handysidc had adopted a new role —that of a doctor—in advising one of the directors not to attend the annual meeting for the sake of his health. In regard to tli o other critic, he had not signed his name, and they should treat his attack with the silent contempt it deserved. However, they disagreed to this extent, that one suggested the investment of extra profits out of the business, and the critic referred to wanted to write down the properties, and if bad times come along they would have to write them up again.

air McQueen Haiti that the year had been a very successful one, there being various factors in bringing that about. They had, for instance, a good season in Southland for fattening, while, unfortunately for (he people concerned, in Canterbury and in other places up north there had been drought conditions. There had also been a want of shipping. The Government had commandeered some vessels, and some had been torpedoed. This had brought about a shortage of shipping, and that caused a congestion in the stores up north, where they had had any amount of fat sheep, but could not gel tlicm away. No doubt, may of them were turned into store sheep, and, in any case, they had got to find an outlet for them, and some of them had found their way to Southland. A question that they would have to consider in the future was: Would they got over the conditions that existed in regard to shipping? He could not sec any prospect other than to provide against the shortage by providing large storage accommodation, so that they would he able to get along when a shipping shortage was experienced. in Southland, fortunately, they had a greater proportion of storage accommodation than perhaps in any other part of New Zealand. That had enabled them to handle more meat from the north than otherwise would have been the cape. He thought that lie had pointed out on a former occasion that their profits were governed to a great extent by their turnover. They had lo put through a certain number of sheep before there was any profit at all, as they had standing charges which had lo be met. The greater the amount of business over and above that ■ — say the standing charges were fat),ooo or £IOO,000 as the case might bo, according to the. size of the plant and the works —Die greater the profits that would be made. They had got lo clear the amount for standing charges before they made any profit Last year, having a -10 per cent, increase in the turnover, compared with the previous year, accounted for a big profit in that way. Another factor responsible for their success was that ;tctually the sheep and lambs handled were of a higher weight than usually was the case. In a good year sheep and lambs averaged a higher weight per head than during a bad season, with the result that there w.'is more profit in handling them. The cost of the stuff pm through wtts per head, and expenses would, therefore, he raised or lowered according to weight. All those things contributed towards the profits. Then, their by-products had been also affected, and (here had been a good market for them. In regard to tile Company's storage accommodation, they had added a little more, hut not a great deal. Another advantage that they had during the past year was that partly owing to the Government purchasing the meat, they could store more moat at the works, ns they did not require to keep the moat separate, as was the case when they had to deal with different clients. For instance, there was no loss owing to their not having to have passage-ways between Uifleient consignments. That helped them lo some extent in regard to storage accommoda lion, and in some cases it also reduced the cos! of handling. Last ,\war they had handled more beef tha.n during the whole <>f the previous year they had been operating. He was not speaking by the hook, but lie believed that that was so. They had handled very few rabbits, having lo exclude them on account of the pressure with more imimrlaiil stock. That had affected tin- position, as there were now a great deal more rabbits lo lie seen about the country. their policy was more in the direction ol encouraging the destruction of rabbits, though some people maintained that they had been simply perpetuating the pest, which lie did not heiieve. lie thought that every plan they could devise to destroy rabbits was io the interests of the dominion, anil the exporter gave a higher reuard limn anyone else for the capture of rabbits. U hod been said that Hie traps killed the

natural enemy of the rabbits: well, so did the poison.

They would see by the report that the directors were recommending the shareholders to vote £IOOO towards the Allies’ Relief Fund. At the previous annual meeting the directors reported that they had voted some money for a similar cause, but the matter was criticised, and they were asked not to do it again. They did not promise, however, but this year the shareholders had got to say whether the amount should be voted. He had noticed that on occasions local authorities had voted sums without the authority of the ratepayers, who had winked at tlie action and did not call the members to account owing to the worthiness of the cause for which the money had been voted. He rather thought that the shareholders that day would pass ttie balance - sheet with the proposal mentioned in it. With regard to prospects in the future, they could all see that so far as feed was concerned the province was in clover: it could not be better, and as a matter of fact they were getting stock from the north already, and. these would possibly go through the Company's works when they were fat. Therefore. notwithstanding that up north they had. increased storage accommodation, they had not got the stock there. In Southland there was the accommodation and the feed, and the prospects for the coming year were good. But ho was afraid that, having handled so many sheep and cattle last year, we had trenched on our future stock. In past years he had trotted out the argument against slaughtering all their ewe lambs, but he would not do so on that occasion. The Company, however, had found that one big season affected the results of the following season, and on one such occasion they had afterwards two bad seasons running, and that was the dominant tendency after a big year. Stock was not like grain, the number of bags of which could bo increased; Sheep were as nearly difficult to increase as it was to increase the number of ships during war time. But they need not look for trouble half way. He thought that the prospects of the Company, altogether. were such that there should be a great demand for shares. Shares were not available now, as there were more .buyers than sellers. Hr W. E. Scandrett, in seconding the adoption of the report and balance-sheet, congratulated the Company and . the directors on having experienced a very successful working year. The circumstances of the moat industry had been, no doubt, favourable, but the directors deserved credit for exercising forethought in providing plant and storage, which enabled the Company to take advantage of the circumstances. ‘There had been some letters in the newspapers relative to investing the reserve fund in gilt-edged securities, but for a company to a prosperous condition, with a ready market for its output, the reserve fund could not be better utilised than in extending the business of the company.— (Applause.) What wore gilt-edged securities? The value of securities was affected by the money market, and the question arose as to whether the assets of a prosperous company, with a constant market for its products, was not as good as the Consols of Britain. British Consols (2 Vi per cent.) 20 years ago sold at £9O for the £IOO. If the Frozen Meat Co. had then invested £9OOO in those gilt-edged securities, they would have received stock to the value of £IO,OOO. And if they had required the money that day all they would receive was £5850, as the price for each £IOO of British Consols on January I! was now £SB 10s, which was probably lower than they had ever previously been. The question of what were gilt-edged securities was, therefore, one that required careful consideration,, and in his opinion the best investment they could make for the reserve fund was the Company's business. There was no further discussion, and on being put the motion was carried unanimously. O FKTCE-BEARERS. For the two vacancies on the directorate, the only nominations were the Hon. T. MacOibbon and Mr Gen. Chewings. who ofered thomselves for re-clection, and they were declared duly elected. Messrs Beany, Cuthbertson, and Webb were reappointed auditors. Mr Chewings thanked the shareholders for having again elected him, and said that the directors had done the best they could for the Company, and had endeavoured to keep the plant and works in ttie best order. Regarding Mr Handyside's objection to the manner in which the reserve fund had been disposed of, the chairman had already referred to that, hut the speaker expected that the Frozen Meat Co. would be going on after Mr Uandyside was dead. The lion. Thus, Mac Gibbon also returned thanks, and said that lie had been a director for a good many years. He had enjoyed occupying the position, and he tiad been glad to assist in a small way to bring about the Company’s present prosperity. It must have been very gratifying to the shareholders to have such a balance - sheet placed before them as had been the case that day. The Company's condition was largely due to fortuitous di’cumatiint's war conditions and drought in the north. There was a good deal to he considered in regard to the amount the Company had obtained for storage. That was something they had been able to obtain through being possessed of Iho necessary stores, and llie fact that congestion was taking place in other parts of the dominion. It might not occur again, but they had had the benefit of it last year. He was very pleased to be a member of a directorate which wits able to place before its shareholders so satisfactory a balance - sheet, and lie hoped that the present year would prove equally satisfactory, though not through (lie same causes. None of them were desirous of making profits out of the misfortunes of other parks of the dominion, or owing to the position of the country in regard to the war. Some might have said that they were giving a large sum to the war funds, but the speaker did not think that they were doing as much as they might have done. He had been in favour of submitting the question of a donation to Hie shareholders, because lie was confident that the shareholders would act generously in Hie matter. He would have been very pleased if it had been proposed that the amount proposed in the report should lie doubled. They load better pity out to themselves in procuring the means for defending themselves. Germany knew Very well that, even if she got peace

now on her own terms, she would be unable to get from the Allies on account of exhaustion the indemnity she had expected to get, and she would instead, if she were successful, take a.lien over the produce of the colonics. The chances were, however, that there would be no indemnity for cither part}', though the Allies would expect Belgium to be rcimpursed for her losses, and Serbia and Poland as well. But Germany would not be worth a red cent when the war ended, and the matter of an indemnity would have to be carried forward as something .which would look well on paper, but would never be realised. He hoped that the coming year would be prosperous, and that the prosperity would come from different sources to where it had come from during the past year. On the motion of Messrs J. D. Trotter (Woodlands) and C. H. Roberts (Invercargill). a vote of thanks was accorded the directors and the staff.