COOL STORES

Southland Times, Issue 22728, 2 November 1935, Page 7

COOL STORES

ANNUAL MEETING OF SHAREHOLDERS ARTICLES ALTERED . Tlie annual meeting of Southland Cool Stores Ltd., was held yesterday, when there was a good attendance of shareholders and representatives of shareholding factories. The chairman of directors, Mr John Dunlop, of Seaward Downs, presided. The annual report stated:— “Owing to a slight decline in quantities of both butter and cheese forwarded, the revenue earned during the past year is less than that obtained during the previous year. Expenditure has also been reduced, however, and the figures disclose that the company, after making ample allowance for depreciation, has more than held its own, despite the low rate of storage charges. Rebates of IJd on all packages of cheese and butter stored during the season have been made, and this amount is lying to the credit of individual shareholders pending the consideration of proposed new Articles of Association at the annual meeting. If adopted, these new articles will give power to the directors to distribute any rebates, up to a defined limited shareholding, in the form of fully paidup shares. The reserves of the com-, pany, taking into consideration that the store is a wooden one and will, require replacing in five to ten years’ time, are not sufficiently strong to permit of the rebates being paid in cash. By distributing rebates as suggested, it is considered that cash fox - a. new and up-to-date store will be available when required without drawing on shareholders. To provide shares for distribution in this manner it will be necessary to increase the nominal capital of the company, and the directors recommend than an increase of from £20,000 to £50,000 be made. It is not contemplated that any shareholders who now hold their correct quota of shares will be asked to subscribe for any part of this capital, but they will receive a proportion of it, in accordance with their turnover through the stores, in the form of fully paid up shares. The profit for the year after deducting rebates is £732 18/1. . The directors recommend that a dividend of 5 pel’ cent on paid-up capital and absorbing £659 6/6 of the profit be paid, and the balance of £73 11/7 carried forward. The storage accomodation was fully taxed to deal with last year’s produce, but as no increase in turnover is anticipated for the ensuing season, it is fairly certain that our present stores and plant will be able to give all necessax-y service for the next year or two. The storage rates to shareholders continue to be the lowest charged by any cool stores in the Dominion, and the directors are confident of being able to carry on at the present low charges and also make propel’ provision for the future requirements of the industry. Several improvements were made in the machinery room during the past year, and the stores have been kept in first-class order.” Chairman’s Remarks. In moving the adoption of the report and balance-sheet, the chairman said ht would not bother repeating his yearly remarks about the soundness of the company from a business point of view and the service it was giving. The dairying industry in Southland consisted mainly of cheese and their cheese had to be guarded. With strong competition nothing but the best quality could be put on the market. He was pleased to see Southland's success in the London Dairy Show and extended congratulations. As far as the cool stores were concerned they had done their bit. However, he was perturbed at a remit to the last meeting of the South Island Dairy Association that cheese should be held two or three days before grading. He was a little perturbed at a remark from the Director of the Dairy Division, Mr W. M. Singleton, that such was done in Auckland. He was certain the people of Southland were not prepared to pay for this service as the Auckland people were doing. Such a move would necessitate a much larger store. For the first month the charge in Southland was 6d, less lid rebate. The Auckland charge was 1/-. At a conference in Wellington it was agreed, with the exception of Auckland, that this could not be done. Moreover he was certain the hot, dry conditions of last summer would not recur. The demonstration day last year had been well-atten-ded and had been successful. He felt it would not be gone on with this year, however, but the money would be spent in a manner equally benefiting the industry. Complaints had been forthcoming from directors and factory managers that their cheese w r as not grading as high as they thought it should. His idea—it might not be approved—was a grading competition for managers who could gather at Bluff tri-weekly or monthly, see their neighbours’ cheese and see the grading process. That would not cost , the industry much and would be of great benefit.

The motion was seconded by Mr A. W. Clark. Mr A. M. Weir said the remit from Edendale asking for cheese to be left in the cool stores two or three days before grading should give the chairman no cause for concern. The trouble had been found to be in the factory and the waggons used for transportation. That was the true position and it cleared the responsibility from the company. The chairman said he was perturbed at the time, but not now. What had perturbed him was Mr Singleton saying it was done in Auckland. People said that what Auckland could do Southland could do. He agreed with that himself, but the cost was in the way. Mr Weir said he wished it to be understood that the service was not asked for now. The motion was carried. Other Business. The retiring directors Messrs A. W. Clark, John Fisher and A. J. Townley, were re-elected. It was decided to recommend the directors to institute a grading competition for factory managers during the season. Mr J. B. Reid was reappointed auditor for the ensuing year. It was decided by special resolution to amend the Articles of Association whereby the directors may create a reserve from rebates on business done through the stores, retaining the right to pay these rebates by issuing fully paid-up shares. The capital of the company was also, by special resolution, increased from £20,000 to £50,000.