KAUPOKONUI DAIRY COMPANY.

Taranaki Daily News, 7 September 1915, Page 7

KAUPOKONUI DAIRY COMPANY.

ANNUAL MEETING. The eighteenth annual meeting of the Kaupokonui Dairy Company was held at the central factory, Kaupokonui, yesterday, when Mr. W. D. PowdTell, chairman of directors, presided over an attendance of about a hundred shareholders. CHAIRMAN'S REPORT. The chairman's annual report congratulated the shareholders on a most successful year, and stated that £6OO in the aggregate had been contributed to patriotic funds. The advantage of cowtesting was emphasised, it being pointed out that every two points in the average test made a differene of one tenth of a penny per lb of fat at present prices. The store business showed a steady increase in turnover, and it was a valuable asset. After writing off £1497 to redemption account there was a surplus of £40,884, out of which it was proposed to pay £8 per eent interest on shares; a further 41d per lb on butter-fat (making 15.62 d for the season), and carry forward £B2O. It was stated that Mr. W. J. McDonald had been re-engaged as manager. The following were the statistics for season: —Milk, 54,054,5'131b; fat, 2,074,6681b; cheese 5,312,1041b; butter (creamery), 41,0881b; butter (factory), 107,8001b; cheese to fat, 2.61; milk to cheese 10.0041b; average test 3.83. REPORT AXD BALANCE SHEET. The balance-sheet showed the paid up capital to be £25,004, redemption account £10,566, overdraft and outstanding cheques and interest, £6427, creditors £IOH4. deposits at interest £1433, reserve fund £3342. The assets amounted to £121,327. Salaries and expenses totalled £18,390, ocean freight £10,305, mill: £120,060, cuw-teatiug and inspection £253, cheese ;>old and in stock £184,0G5, butter £8275. The store account showed a profit of £2OIB, the amount sold totalling £34,764. In moving the adoption of the report and balanee sheet, the chairman said that lie thought that shareholders would agree that they had had a very satisfactory year. The pay out for [ the year, 18,fi2d, was a record for the company. Reviewing the balanee sheet, he pointed out that thougli the number of additional shares issued amounted to 1291, the company had really issued 2500 shares during the year, as they had bought up tnd reissued a large number. The overdraft at the store viz., £12,811, might appear a large one, but if the accounts owing were paid, it would not be very large. The store turnover was £36,000. The item deposits at interest, £4435, was money that suppliers had to spare and allowed it to remain with the factory at 4</i and 5 per cent, interest. There was £SS4I owing on mortgage on farms t-lmt they had purchased. The £3342 4s 7d to the reserve fund represented profits made on shares sold and interest received. The redemption account now amounted to £19,566 14s lid, showing depreciation written off to date, and on a company of £25,000 paid-up capital, this must be regarded as highly satisfactory. In estimating the property, which appeared on the balance sheet as £17,513, he pointed out that tEe land stood at what was given for it, less depreciation. To arrive at a correct estimate, a valuation would be necessary, and would probably show the property to bo four times the book value. The Auroa factory had cost £3301 10s, but they had a factory up-to-date in every respect. The stock of eheese on hand, £14,742, was laTger than usual, but this was due to the blockage in shipping. Requisites also showed larger than usual, but this was due to the fact that as there was likelihood of a shortage, they had duplicated many items. In benzine they had anticipated t'ho duty by purchasing a large stock for their store and cars. They had also purchased tyres for the waggon. These items accounted for £j3G 12s 6d. At the store they had bought in advance, so that the stock showed £•2000 more than last year. He considered that in this, the correct thing had been done. He enumerated the shares that the company had in other co-operative concerns, and pointed out that the Kaupokonui company, which had originally started with a share capital of £2OOO, now owned shares valued at £BOOO in other companies that supplied butter boxes and crates, and also that enabled the suppliers to obtain Better prices for their pigs and stock. Referring to the motor waggons, he stated that they had proved very profitable and moreover had enabled 'them to get their produce to the rail in better condition. They had written £530 off the waggons in two years, and at that rate would wipe their cost off in eight years. Referring to the pay out for the. season, he said that when comparing this with other factories there wero various things that must be taken into consideration. They had paid out Is G.G2d, and he had heard that another factory on the line had paid Is 7d. Kaupokonui had, however, to pay £537 11a Gd cartage from branches to main factory, and £B4O cartage to railThey had also paid £OOO to the Patriotic Fundj bcizig % per cent, on their output, and lie pointed out very few factories had done this. In the case of Kaupokonui, it would amount to £2 10s per supplier, which no one would regret. Testing was also a charge on the company. This cost £2JS and no one would deny that it was good for the company and the suppliers. They had, moreover, paid an extra £920 in commission, as owing to the unsettled conditions at the beginning of the seasou they had consigned, on guarantee without recourse. This Would have enabled them to pay out Is 3d at the worst, and they also had a condition that they would be paid even if the produce was not shipped. This cost them half per cent, extra commission, but they had an assurance of a certain pay out the whole season. The high prices realised made this guarantee of no use. They paid G per cent, interest lo suppliers, as against 5 per cent, paid by some companies, and also carried £829 forward. These items amounted to over £4OOO, and would have enabled them to pay out over a halfpenny more had tiiey been favourably situated. This, he considered, was a very meritorious performance. Their test, moreover, averaged 3.83, and was .about the highest along the coast. Continuing, ho said the company had got in a very strong financial position, lllis year it had bettered itself with the bank by £IOOO, next year ho anticipated that its position would imfno\e by £SOOO, less £2OOO for installing machinery and pasteurisers. In 101G-17 and 1917-18, he expected the position to improve by £SOOO annually. I hut tho hank recognised this improvement was evidenced by tho fact that they were willing to hand back to the suppliers tho promissory notes given to the value of £15,000 or £16,008. Eef erring to the prospects fcr the

present season, lie remarked that no one could tell wliat Lho prices would be, His opinion was that tliey would be exceedingly good, though probably not quite as high as last year. There Would, however, be increased charges to face. Railage would be a little 'higher, and there wa,s an increase of J.iCd per lb. in ocean freight. The shipping companies Tiad increased the freight by y 3 d or 50 per cent., but on representation by the National Dairy Association, had agreed to a reduction of l.lfld. This reduction meant a saving of £20,000 to the dairy factories, of'which £IOOO would be saved by Kaupokonui. They had also raised the wages of the staff because the directors felt that as the cost of living had gone up. and farmers were doing weli, it was only right and reasonable that the men should benefit also. Whey butter, he pointed out, had produced £5500. This was a nice little profit, and though a few years ago they 'had to light hard to carry it through, there was no doubt that they liad done the right thing. The directors, lie pointed out, favoured installing several pasteurisers. One or two would be installed at factories near the beach, where they had bad feed flavours to contend with, and if these proved satisfactory, tliey would be installed all round. , The directors, three or four years before pasteurisers were generally thought of, passed a resolution advocating their use, provided machines could be obtained to cope with the quantity of milk. There was a machine now on the ma»:;c£, which it was thought would get over the difficulty. He was satisiied that pasteurisation was the right and proper thing as it meant a better' article. Referring to question of butter as against cheese, he said that the directors had been advised lately to go in for butter, but lie pointed out that they had a good class of men engaged for (lie season, and if t'hey manufactured butter, it would mean dispensing with throeqnarters of these, and if they reverted again to cheese they would have to take any men they could get. Unless a very good price indeed was offering for butter tliey would not change. T'hey had tlu3 year decided to forward their output on open consignment.

Mr. Dunn, in seconding, congratulated the directors and suppliers oil the satisfactory position shown. Their assets had increasei!, whilst their liabilities had decreased, and he felt that the shareholders had full confidence in the directors for their management of the company's affairs during a trying time. He pointed out that they had only produced 2-Gllbs. of cheese per lb. of butter fat. Other companies had done better. He considered t'bat they could be able to do as well a3 other companies. He did not think that the high test had affected this, though it would return the individual supplier more per cow.' Mr. 11, Hughes thought that there should be more unify among the companies who should combine to light the buyer.

In reply to Mr. C. Bourkc, the chairman said that the company paid 5 per cent, interest, on money at deposit for twelve months, and 4yj per cent, on call.

Some, discussion then ensued over running the store, Mr. C. Bourke considering that it was time that a bonus was paid to shareholders.

The chairman stated that they had consulted their solicitors with a view to seeing if it was possible to divide the profits of the store among shareholders by allotting shares to them on which interest could be paid. In this way, the money would be kept in the company, whose position would thus be strengthened. He thought that it was advisable to build up a reserve account in case of fire. It was not wise to pay a cash bonus until the store was out of debt.

Mr. Hair considered that the store should charge a fair price for its goods without adopting a cutting policy, and then divide any profits among shareholders as a rebate pro rata oil goods purchased. He urged suppliers to be loyal to their store and pointed out that if they all stuck to it and indented their goods they could buy much cheaper. In reply to Mr. Dunn, the chairman said that the directors had not yet considered the question of joining the federation of Co-operative Societies, but would do so. After a little further discussion as to the policy of allowing outsiders to purChase at the same price as shareholders the report was adopted. The luncheon adjournment- was then taken. resuming, in reply to a question, Mr. McDonald, the manager, stated that there was no data to say definitely that the highest testing milk made more eheese per lb. of butter fat. The' general experience was that more cheese per lb of fat was made in tile spring, when the milk tested low, than m tho back end of the season, when the test was high. ELECTION OF DIRECTORS. For the three vacancies on the directorate there w r ere five nominations. Messrs. Hare and Poole moved that the three retiring directors, Messrs. W. D. Powdrell, E. Long, and J. A. Bridge be elected. They pointed out that in these troublous times tried men were required. Messrs. O. Bourke and W Hair were also nominated. Messrs. McKenzie and McDonald were appointed scrutineers. After each candidate had briefly addressed the meeting a ballot was taken and resulted as follows-—JS Long 504, w. D. Powdrell 503, T. A. bridge 303, O. Bourke 216, and W. Hair '49. The retiring directors were declared elected. For the position of auditor, there were two nominations Messrs if \ Lennon and W. OT'allaghan, and on "a show of hands the former was elected. GEN URAL. Ihe directors honorarium was fixed at, 15s each per meeting, and the chairmans at £l5O per annmn. It was resolved that in future all nominations for the directorate must be handed 111 by noon of ihe day of the annual meeting. . A vote of sympathy with Mr. Uorrie in Ins serious illness was passed unanimously. ij 1( , mover, Mr, Le Fieiiiin" pointed out that Mr. Borrio had been one. ot the pillars of tho company, having been a director and chairman for caw. The chairman, in endorsing these remarks, referred to the' fnrw"' p Vl !' cll . Mr - lio, ' rio bad tho ITI- - ot the company at heart, even assisting it financially A hearty vote of thanks was accorded luncheon!' 63 ° Fesided at