North Canterbury Sheepfarmers' Co-operative Freezing and Export

Sun (Christchurch), Volume IV, Issue 1162, 1 November 1917, Page 1 (Supplement)

North Canterbury Sheepfarmers' Co-operative Freezing and Export

COMPANY LIMITED

REVIEW OF THE YEAR'S OPERATIONS. BIG INCREASE IN STORAGE ACCOMMODATION ME GREENWOOD'S PRESIDENTIAL ADDRESS. The second annual meeting of the North Canterbury Sheepfarmers' Co-operative Freezing, Export, and Agency Company, Ltd., was held in the Chamber of Commerce yesterday afternoon, Mr G. D. Greenwood, chairman of directors, presiding over a large attendance. THE DIRECTORS" REPORT. I shareholders had not paid up sufliThe second annual report stated:—I dent ca P il ?l to enable them to In presenting the report of the: carr >" on without it. company's operations during the J APPOINTMENT OF DIRECTORS. first working season, your directors, Th c chairman said the next busifeel that the shareholders will be! ncss W:)S the election of two direcgenerally satisfied with the result; tors in the place of Messrs achieved. iT. Stone and E. P. H. Burbury, Despite the handicap of a late start %v ho retired bv rotation. As and a shortage of shipping at a criti- tj ierc wcre | niee nominations it cal juncture in the season, the W ould be necessary to hold a ballot equivalent of 11j.090 sheep and| am j nc ca ]i e d for the election of lambs passed through the works, j two scrutineers. This included 1875 head of cattle. Messrs Geo. Forbes and F. 11. LaThe working expenses of a new batt were appointed scrutineers. company, always relatively high in j t , m , . XT , C mrvnircc a Grst season, have in the present \ UI AIRMAN S ADDRESS, instance been considerably increased j The chairman in his address said: in everv department bv war condi- "Reviewing briefly the events ot the tions, so that the financial result | past year I deeply regret that death must also be considered satisfactory, has been busy in our midst. Amongst It should, moreover, be noted that, in ! others, we particularly regret the loss order to make the financial year and jof our valued friend Mr Duncan the killing season co-termirious, the j Rutherford, one of the founders of present balance-sheet has been pre- j this company. pared to cover a period of 14 months, "Representing as Ido some 1000 ending August 31 last. Eight months! shareholders, nearly all of whom are of this period have been unproduc-' sheepfarmers, I cannot but congrative. ' tulatc them on the success which has

We have audited thr almve Balance Sheet, ami, having examined the bonks of the "Company, and obtained all the information and explanations we have required, we have to report that, in our opinion, such Balance Sheet is properly drawn up so as to exhibit a true and correct view of the state of the Company's affairs, according to the best of our information and explanations given to us, and us shown by the books of the Comsany.5 any. Thr M<*ks have been taken into account at the amounts certified to by the (anager and Works Manager. ABNAUI) McKF.LI.AR, F.P.A. (N.Z.) RANDAL L. HICKS, F.P.A. (N.Z.I. diristchurch, September 28th, 1917. The chairman, in moving the attended this most important epoch k adoption of the report and balance- in the history of their company. • sheet, said:—"You are called togeth- Though a small profit has been made _ er to take a view of the two years' Ido not think that our shareholders working of the North Canterbury Co- will be disappointed that this year operative Freezing Works. The bal- we are not declaring a dividend. ance-sheet and report have already "I wish particularly to impress been in your hands. If you wish it upon the shareholders the fact that read I will read it, but generally this Kaiapoi Freezing Company is these things are taken as read." disinctly a co-operative concern, and It was decided that the report and our object as directors is to conserve balance-sheet be taken as read. the interests and study the wishes of The chairman: The next business every shareholder, both large and is proposing the adoption of this re- small. To that end I welcome the port and balance-sheet, which I do criticism of every member of the now. I shall have a few words to company on our methods, and, if any say later on in connection with the shareholder considers himself operations of the company during aggrieved, I cordially invite him to the time under review. In propos- communicate direct to myself. As ing the adoption of the report and long as I occupy this position I con-balance-sheet I will ask Mr E. G. sider it my duty to inform shareGiles to second it. holders of all matters appertaining Mr Giles said the chairman's re- to the success or otherwise of this quest was unexpected to him, and he undertaking. was not prepared for it. When they "Freezing operations commenced first started it seemed to him it was i n December last. During the year very much like a merchantman set- we dealt with over 100,000 sheep. I ting out from England surrounded by am pleased to sav that our niaehin-l-boats. They seemed to have got erv, from the ve'rv commencement, past the U-boats fairly well. He has worked smoothly and without a had expected to find that they would hitch. I do not pretend that every have had a deficit. He thought the department has been worked on the balance-sheet was exceedingly satis- most economical lines. As in the factory. As he was quite out of the history of all companies, the first stream of things as far as sheep and start is not always the best, and we cattle were concerned, he did not see our way to "reducing materially think it was much use his comment- the overhead cost of operating the ing upon it. He thought they were factory. Owing to the shortage of all thoroughly satisfied with the transports it was found necessary to , balance-sheet and the directors. duplicate our storage. We, therefore, Mr Henley: There are two items in issued a circular to our shareholders the balance-sheet that seem to be asking them to guarantee stock for wrapped in mystery. That is the coming season with the marvelsalaries, oflice, and general expenses lous resuit that no fewer than £3708, and interest, insurance, rent, 300,000 sheep were offered to us and advertising I*3loo, a total of within a fortnight. This liberal re£oXoß. Considering the amount of spouse encouraged us to erect the sheep put through, it seems a big new works. They are now well foriteni, but it may have something to ward, and will be ready for the corndo with the extra cost in war time, ing season. We shall then have hold--1 would like some explanation. It ing space for 200,000 sheep, and as reads rather mysteriously. the economical way of dividing the The chairman: I can say now that carcases adds some 30 per cent, to In all new businesses, especially a our capacity, we hope to be able to business of this kind, which is a deal satisfactorily with every sheep factory, the first start is not always offered to us by our shareholders. U the best. A great many expenses is a matter of satisfaction that large Uiat were attendant to the start of all additional storage accommodation work in a factory and getting things has also been provided bv other comtogether had made it very, very dilti- panics operating in Canterbury, and cult. These items are higher than we take full credit for inaugurating ordinarily they would be, but the the policy that has provided a steadydirectors did see their way for mate- outlet for all fat stock, so benefiting rially reducing the overhead ex- every sheepfarmer in the district, penses. by keeping up the price, not only of Mr Stewart said that under the fat but of store stock. I think if heading "salaries, oflice expenses," shecpfarmers will consider for a etc., there was probably a consider- moment—mi doubt they have done able amount that would not be re- so over and over again, but I would curring. They were expenses in- ask them to consider once more f Curred before the company was a what would have been the position Erofitable concern. With regard to of the sheep market in Canterbury le £3160, the bulk of that was taken if this company had never been up by interest on overdraft, which formed. If no relief had come at ■ "was largely due to the fact that the the time we started operations you

SECOND ANNUAL MEETING OF SHAREHOLDERS

vould have seen again and again vhat had happened before, only liuch more intensified. Instead of x'ing ahle to send your lambs into ■he stores of a company which is nvned and managed by farmers, and .vhere you have a guarantee thai .vhatever your sheep is worth it will .)c returned fo you either as dividend or profit, what would have been the position? Instead of getling a fair price you would have had to run the risk of fattening them to sell them for exactly what the companies agreed to give you. Store shee]) would probably have fallen to one-third of the value you arc getting. Therefore, if this company never pays a dividend, if the policy it inaugurated has been the cause of relief, and of keeping up the price of sheep there is no question that the capital invested has been returned over and over again. There is no doubt that the money paid, in has been paid back to the sheepfarmers over and over again. NORTH ISLAND AND SOUTH. "I had an interview in Wellington with one of the gentlemen who is allocating the space for the freezing companies and it is their policy to clear the stuff from the North Island before they clear ours, because the North Island clear theirs earlier. There is an impression that the South Island is not getting a fair deal. There is the suggestion of the people in power in Wellington that the requirements of the Army and Navy are more especially for mutton than for lamb. The suggestion is that in the South Island we should keep our lambs till they are grown sheep. It may be all very well for the North Island to want us to keep our lambs till they are grown sheep, but in Canterbury it would be a very, very great hardship. Our lamb trade has grown up with us—it is part of us. Canterbury lamb is as well known on the London market as the English lambs are. It would press very hard on those parts of the Dominion if this were insisted upon. It is a matter of very great satisfaction to me that large additional storage has been provided. MOVING THE OFFICES. "This year we engaged Mr Stewart as manager, who we believe is giving general satisfaction. We find it necessary to remove our principal offices to Kaiapoi, and in view of the fact that the Waimakariri Harbour Board Bill has just passed the House of Representatives, we anticipate in a short time that we shall be loading ocean-going steamers at our own wharf on the Waimakariri river, which will also serve the purpose of bringing the pastures of the Peninsula and Kaikoura into direct economical water communication with our works. I sincerely congratulate our fellow-director, the Mayor of Kaiapoi, in the energy he has displayed in promoting the scheme of the Waimakariri Harbour Board. I wish him and the public of that part of the district the very greatest success in the operations which they are undertaking. I have never been very sanguine myself as to these operations being successful unless they have a very large capital to carry out the work. The difficulties attendant upon such attempts to make the bar on a river of the size of the Waimakariri are not ones that could be overcome without due consideration. But the new Bill has passed Parliament, and Mr Blackwell and his friends have an opportunity of raising a loan sufficient, in my opinion, to carry out these important works successfully. It will be a boon not only to the town but to all the sheepfarmers interested in this company. THE PRESENT CRISIS.

"I would like to refer for one moment to the present political aspect of the Dominion. I give place to nobody in loyalty and sincere wish to win the war by every means in the power of our country,' and am quite certain that the time has now arrived for us seriously to consider whether this policy of 'the last man and the last shilling' is the most effectual means to that end. Four politicians, just returned from the Old Country, have recently got up in the House of Representatives and declared that New Zealand had already sent a greater proporlion of men according to population than Canada, Australia, South Africa, or any other British colony. And while the time occupied by the round trip of a transport from New Zealand to England occupies six months, and so in that time only places one load of men at the front, if diverted to the Atlantic, as the Imperial Government have intimated their intention of doing, five or six times that number of men would be transported from America, where there are millions under arms, and waiting for transport. It seems to me the height of folly to continue denuding the country of the men who are absolutely necessary to provide food and clothing for our own troops and for our Mother Country's great and present need. (Applause). NOT A FAIR DEAL. Mr T. Slone said the South Island was not being given a fair deal in the matter of space. A total of 050,000 carcases had been taken from the North Island, as against 72,000 from the South. Even supposing they had an earlier season, it was not a fair deal for the South. They could not get space to get their stuff away. He supposed this would right itself gradually. Since starling these works the whole of the directors had pulled together. They had done the best they could for the farmers. He could not help thinking that considering these were now works, thev had done remarkably well. All he said, was: Let the farmers slick lo the works, and the works would stick to the farmers. Mr Giles: Is il not beef the Home Government are after, and they will take it in preference lo mutton'? Is that not a great deal the explanation of the North Island having preference over the South Island'? The chairman: That is so lo a large extent. The Home Government give preference lo beef and then to mutton—lamb comes very far down on the list. THE DIRECTORS THANKED. Mr Henley: Generally when lambs I were fut and the farmers had to sell

them Ihere was a strike in the works or on the wharf or at Home, or there was a slump in the market and there was a fall in prices. Whether this was the manoeuvring of those interested or not, I cannot say. But since these works have been going I have had the greatest satisfaction I have ever had since I have been selling lambs. The big consideration of the directors should be for the farmers. If I am right, I will move, on behalf of the shareholders, a vote of appreciation to the directors for the work they have done in launching this company so successfully. Mr Geo. Gardner: I have very much pleasure in seconding the motion. In doing so I will add something to it—that there should be something tangible in the way of a directors' bonus. It is patent to you all, gentlemen, in a company of this sort there is no axe to grind. In this way there may be an axe to grind: if we do not support co-opera-tion it will go down big or little. The dairymen have found that out, and in America the trusts in their own home have been successfully fought by the Wisconsin people by co-operation. It is the most cheering piece of information I have seen for a long time. It is the greatest pleasure in the world to me to see a man like Mr Greenwood piloting a concern like this. It is nothing more than a plain matter of business when I ask you to support me when I move that their time and work should not go unrewarded. I am not exactly certain what would be a satisfactory amount. I will leave it to be suggested. I am sure two or three hundred would not be out of place, and they would be cheap at the money. Mr Henley suggested that the original motion should be taken first and the others-matter disposed of afterwards. The motion was carried. It was decided that the sum of £3,~)0 be voted to the directors. SHIPPING SPACE. Mr Geo. Forbes, M.P., said that in reference to shipment everything would depend on the amount of shipDing that would be available. He had had the opportunity of having a good deal of evidence from the freezing companies. The question arose about the shipment of wether mutton and beef. The instructions from the Imperial Government were very definite that beef and wether mutton should have preference. Some considerable fault 1 ;, .'as found that a ouantity of lamb was shipped while there was wether mutton and beef. That was the position they were up against in Canterbury. There was no doubt wether mutton and beef were to take preference. At the same time the Government could see that the lambs should have an outlet as well as beef and mutton. Every endeavour would be made to give the space. In regard to the interest paid on meat in the works, the farmers put meat in the works and it laid there for months, and they had to pay interest on any advance they got. He thought that after three months if it could possibly be done, the advance made then should be free of interest. That, he thought, would be placing all the users of the factory on the same basis. It seemed to him a reasonable thing that the interest should be allowed after three months. He was very pleased indeed that the company had got along so well, and he thought they had to thank the directors very much for the vigorous way they had carried on the operations. If they compared the balance-sheet of this company with the balancesheets of some of the companies in the North Island they would conclude that they had come through the season the better. As far as space was concerned, there was the committee that allocated the space. They were supposed to be absolutely impartial as far as freezing companies and districts were concerned. The Parliamentary Committee had been able to find nothing that was seriously wrong with the allocation of space. Mr Blackwell thanked the chairman for his references to himself, and said the Harbour Board had been backed up by the Kaiapoi residents in every possible way. The Harbour Board, he thought, woidd be able to take up their new scheme shortly. If regular trading were possible, it would be a very big advantage to land stock direct to the works. DIRECTOBS ELECTED. The chairman announced that Messrs Stone and Burbury had been re-elected directors. Messrs McKellar and 1 licks were re-elected auditors.

BALANCE SHEET As at 31st August, 1917. LIABILITIES. ASSETS. C s. d. £ s. <I. £ _ s. (1. Nominal Capital, 0 0 20,000 Shares of 15 10 £5 100,000 0 0 Stocks, Stores, and Utensils of Less Unallotted Trade 40,011 12 1 Shares .. .. 19,885 0 0 Motor Car, Vehicles, Horses Less Uncalled 0 3 Capital .. .. 31,882 10 fl Ollice Furniture and Fittings.. .'!.">."> 2 9 ** 51,707 10 0 Plant, Machinery, and Loose Tools 22,191 Land and Buildings 41.97!) 10 8 4 ..,232 10 ii i Less Calls Unpaid 1,172 10 0 Preliminary Expenses .. 2,.'>:t2 i ib f Accrued Charges and Sundries a,013 10 1 - 40,700 0 Calls Paid in Advance .. .. 0.J2 10 0 (1 41,712 10 0 Union Bank and Sundry Creditors 80,17.'> 10 J Accrue«I Interest and Expenses 1,119 10 :< Profit and Loss Account .. 1,170 11 4 £121,181 8 3 £121,181 8 3 PROFIT AND LOSS ACCOUNT For Fourteen Months, , ending 31st August, 1917. £ s. d. £ s. d. £ s. d. j£ s. d. To Working ExBy Freezing, Felling penses, Mainten("barges, Sales and ance, Depreciation, Proceeds of Byand Preliminary products .. .. 31,350 10 8 Expenses .. .. 22,110 10 7 „ Discounts .. .. 113 12 3 „ Salaries, Office „ Rents Received .. 209 10 9 and General Ex- „ Transfer Fees 2 10 penses ."."'IS 10 2 „ Fees and Charges 270 12 9 „ Interest. Insur-G.-.f> 10 9 ance, Rent, and Advertising .. 3.160 2 8 „ Solicitors' Auditors* Fees. and Directors' Expenses .V.O 12 8 7.110 5 fi „ Balance .. .. 1,170 11 1 £32,000 7 o £:;2,0(l(i 7 5 THOMAS STONE, Acting-Chairman. JAMES STEWART, General Manager and Secret: iry.