COOL STORAGE

Southland Times, Issue 20616, 15 October 1928, Page 8

COOL STORAGE

THE SOUTHLAND COMPANY. ANNUAL MEETING. The annual meeting of shareholders of the Southland Cool Stores, Ltd., was held on Saturday, when the chairman of directors (Mr A. H. Mackrell) presided over an attendance of about 40 representatives of shareholding dairy companies. In moving the adoption of the annual report (previously published) and balancesheet, the chairman said the season for production had not been a good one, and production had been kept down. While the weather conditions were often bad in Southland there was never any serious setback. The past year had confirmed his observations over a period of 25 years that it was necessary for farmers to provide extra feed until the middle of October. The production had been well maintained considering the conditions which indicated that the standard of the individual cows must have improved. The plant and buildings were in excellent condition and the machinery which had been an innovation at the time of installation had proved very satisfactory and was now running even better than when first installed. The staff hail co-operated in the painting of the buildings and had saved the company a considerable sum of money. Electric power charges were still a source of trouble, and the reduced rate could only be secured at night, which prevented any running which was not absolutely necessary in the day time. The company was faced with the alternative of installing its own plant at a cost of £3OOO, but it was not considered advisable to undertake this expenditure. Mr Mackrell reviewed the individual items on the balance-sheet and compared each item with the previous statement. After reviewing the profit and loss account he said the gross earnings had shown a decrease of £957, chiefly due to a faster shipping service, which resulted in less storage at Bluff. On the other hand the profit had only fallen by £5OO, which was most satisfactory. Reviewing the progress of the last five years, the chairman said: “The stores were bought and taken over from the Bluff Harbour Board on October 1, 1923. The price paid was £lO,OOO and the terms, £2OO deposit in September, 1923, £BOO on March, 1924, and the balance to be paid off at £lOOO per year, interest at 5 per cent, per annum to be paid on balance owing to Harbour Board. An additional area of land was secured from the Harbour Board in 1924 for a building to hold the freezing plant. A verandah, doors and platform were erected on south-east side of building, also extra railway siding put in on that side, and plant for cooling cheese was installed in 1924. In 1925 an additional quarter acre of land was secured from the Harbour Board. This area adjoins the present building, and is available for erecting additions to the store when they are required. Arrangements were made in 1923 for £6OOO from the National Bank on open account, secured by National Bank debenture over assets and goodwill of company. This amount provided the necessary capital for verandah, doors, platform siding, extra building and freezing plant to cool cheese. In 1924 further arrangements for an additional £ll,OOO were made with the National Bank, which was secured by promissory notes from each of the shareholders for an amount equivalent to the share they held. Altogether we arranged for £17,000 from the Hank on open account, and had the use of £9OOO of the Harbour Board’s money at 5| per cent, per annum under the agreement for sale and purchase, a total of £26,000. The paidup capital at end of the first year, 1924, was £2319, at the end of second year, 1925, £3719, at the end of the third year £5149, and at the end of the fourth year £6437. Since that year rebates have been made each year equal to the calls to be paid. The total amount paid in by the shareholders is £6437. Over five years’ operations £5169 had been paid in interest, £4756 written off for depreciation, £2574 was rebated to the shareholders and £6544 profit has been made. The amount of profit is more than the actual amount paid in by the shareholders. The present balancesheet shows that whereas we originally borrowed £26,000, we to-day are paying interest on £11,532. By taking the store over and charging rates as low, and in many cases lower than rates charged by similar stores throughout the Dominion, the shareholders have in addition to paying £5169 in interest saved themselves in round figures the sum of £15,000. In a circular letter issued by the chairman of the Bluff Harbour Board in April. 1923, the rate for cooling cheese by them would have been 3d per crate higher than the rate we have charged representing on 690,768 crates of cheese handled over five years a sum of £8634. This amount added to the amount saved totals £23,634, which would have been lost to the shareholders had they not taken over the shares.” Concluding, Mr Mackrell said that the company was now in a very satisfactory position, and it seemed unlikely that further calls would be necessary. It should also be possible to make reduction in the charges shortly, and as time went on it should be possible to reduce charges to a point lower than any other company in the Dominion. Mr Adam Dunlop seconded the motion. In reply to a question, the chairman said that 175 horse-power was required to run the machinery. Power was secured at a charge of seven-eighths of a penny a unit for night load. The only method by which an improvement could be made in the total power cost would be by the installation of synchronizer! motors, which would be expensive. The report and balance-sheet were adopted. The chairman and Mr Richard Arnott retired from the directorate and Messrs Arnott, C. R. Foster and A. Stevenson were nominated, Mr Mackrell not seeking re-elec-tion. On a ballot being taken Messrs Foster and Stevenson were elected. Mr J. B. Reid was re-appointed auditor and was accorded a vote of sympathy in his illness. A vote of appreciation was accorded to the staff.