GREATER OUTPUT BY WORKS

Southland Times, Issue 23646, 22 October 1938, Page 4

GREATER OUTPUT BY WORKS

South Otago Freezing Company SOUTHLAND’S REQUEST MENTIONED (Special to The Times) DUNEDIN, October 21. A highly satisfactory result of the past year’s operations was disclosed at the twenty-ninth annual meeting of the South Otago Freezing Company which was held at Balclutha today. Reference was also made to the proposed establishment of freezing works in Southland. The chairman of directors, Mr P. McSkimming, presided and there was an attendance of about 30 shareholders. The adoption of the annual report and- balance-sheet was moved by the. chairman who stated that the company killed 317,223 sheep and lambs last season as compared with 251,774 in the previous year. The 1937-38 season was nc doubt the driest the district had experienced in the past 30 years and in the early part of the year it looked as though killings were going to be seriously affected. From the opening of the works in the middle of December, however, until the closing in the first week of June, approximately three weeks earlier than last year, the company was kept killing to capacity and finished with 65,450 in excess of the 1936-37 season. Considering the unusually dry weather the stock killed out very satisfactorily and although over all the average weight was slightly less than in the previous year the quality was well maintained. Later lambs that were fortunate to be put on feed, fattened in about three weeks as against five or six weeks in the ordinary season and this accounted to a large extent for the shorter and steadier season.

Cattle killings showed a decrease of 1300 head but this was mainly due to congestion of storage space and killings had to be curtailed to cope with the abnormal rush of sheep and lambs. Referring to the balance-sheet, Mr McSkimming said that the company had written £5050 off its'land, buildings, plant and machinery in depreciation and after making provision for income tax to the extent of £9OOO, there remained in the profit and • loss account a credit balance of £16,814 0/11, which of course included a carry forward of £7607 7/- from t the previous year. The directors recommend the payment of a 5 per cent, dividend which would absorb £6630 10/- and leave’ a balance of £10,183 10/11 to carry forward.

"Taking into consideration the increase in costs and the decrease in the value of by-products, mainly tallow which dropped fully 30 per cent., I think the financial position of the company is quite satisfactory,” Mr McSkinr ing added.

The motion was seconded by Mr A. C. Leary, who said that all would agree that tlie company’s position was very satisfactory indeed. The company could produce those results only through the loyal support of the farmers, for the company’s success depended on its output. Referring to the movement in Southland to establish another freezing works in that district, he said that representatives of the South Otago Freezing Company’s directorate visited Southland and after meeting farmers learned that the only reason they had for desiring another freezing works was the rush that was experienced last season. That rush, however, was abnormal and was not likely to recur for a long time. The farmers also asked for a reduction in charges but actually the South Otago Company’s charges compared more than favourably with those of any other freezing works in New Zealand.

Mr Leary also said that the establishment of new works in Southland would result in a reduction of output for the Finegand works which would probably necessitate a revision of the present charges, while rising costs would also have to be watched very carefully by the directorate.

The report was adopted without further discussion. Messrs A. C. Leary and E. H. Murney, the two retiring directors, were re-elected unopposed. The directors’ honorarium was fixed at the same amount as the previous year, namely £450. THE PRICE OF GOLD LONDON, October 20. The price of gold is £7 5/9i per oz.