DAIRY COMPANIES.

Taranaki Daily News, 18 August 1919, Page 5

DAIRY COMPANIES.

ELTHAM. TWENTY-NINTH ANNUAL METING. The twenty-ninth animal meeting of the Eltham Dairy Compuny was held in the Town Hall, Eltham on Saturday, when Mr. C. J. Belcher, actingeliairman, presided over an attendance of about 70 shareholders. REPORT AND BALANCE-SHEET. The report showed that during the year 40,232,475 lbs. of milk and 51,411) lbs. of cream were received, yielding 1,512,070.94 lbs. of butter-fat, of which 1,4(10,744.24 lbs. were used for cheesemaking, and 51,898.70 lbs. for buttermaking. The output of both cheese and butter was under that of last year, due to the decrease in supply. The average testa for the year were: Milk (butter-making) 3.79, milk (cheese-mak-ing) 3.71, cream 38.20. The average price paid for butter-fat was 21d, and the balance to the credit of the working account would ensure a further payment of 3,11 d per lb. In view of the great changes that might reasonably be expected to take place in the industry in the near future, the directors considered it essential to the welfare of the company to send the general man-' agcr (Mr. Boyle) to the United States to thoroughly investigate the manufacture of milk products. The balance-sheet showed that cheese sales totalled £175,702 14s <Bd, butter eales £4286 8s 4d, and whey butter sales £5689 19s, the total receipts being £185,751 5s 2d. The principal items of expenditure were: Boxes and crates £35(10, cartage and cars £927, benzine £SOO, coal £2IBO, firewood £174, equalisation fund account £Bl. freight £llls, freezing charges £1077, insurance £1437, interest £lOlB, law costs £l7O. oils, etc. £l2B, printing and stationary £lO4, rates and taxes £247, repairs and renewal* £2064, rennet, pep- 1 pin and color £4158, salt paper, preservatives £1520, sundry requisites .£BO7, vels £21(1, wages £0720, depreciation to the extent of £2500 had been written off; £132.17(5 had been advanced (o suppliers, and there remained £19,620 to be dealt with. CHAIRMAN'S ADDRESS. In moving the adoption of the Teport and balance-sheet, the chairman congratulated, shareholders on the successful season, the total pay-out being 24.11 d, with possibly a little more to come. It behoved all to do their best po increase production. He briefly referred to tile epidemic. The company had suffered. considerably through the epidemic, and'the staff of four of their branch factories were practically all down, but the way the settlers "came to the front to help deserved every praise, and on behalf of the directors, lip expressed appreciation of their work. He eulogised the work of the manager and stall, who during that trying time, had worked like trojans. He expressed regret at the death of Mr. Cooper, manager of the VVaihapa branch, who was one of the best of their managers.. A great deal had been heard about dried milk and other products. Enquiries had liecn made by dairy companies in New Zealand, but while a great deal of information had been gathered it was not'sufficient to warrant any company proceeding with the procuring of tho plant, and machines necessary for manufacturing it It was decided to send a delegate to the United States, England, and'the Continent, to gather all information regarding the manufacture and marketing of milk products. Their chairman (Mr. Forsyth) and Mr. Murdoch had been appointed delegates. Better men could not have been appointed, as they were keen business men, and thoroughly conversant with the dairying industry. It might confidently be expected that as the result of the enquiries great developments would take place in the industry. If, however, investigations did not turn out as expected they would have been saved the expense of building factories that were not needed

All were no doubt aware that the general manager (Mr. Boyle) had been pent also, at the expense of the company, and he felt sure that shareholders approve of the directors' action In taking this important step.' Situated as they were at the rail side, the company was in an vmrivalled position to undertake the manufacture of by-products, and a3 they were confident that the change would come, thev considered it their, duty to keep abreast of the times and be prepared, and as Mr: Boyle had supervised all their new additions, etc., during the past nine years, they felt that the knowledge he would gain Would be worth the cost several times over. Tf the manufacture of either dried milk or condensed milk was undertaken, the present cheese plants might have to he idle, but these would be retained in tho event of the company again reverting to the manufacture of cheese or cheese and milk sugar. This latter would necessitate the installation of condensors at the largo branches or whore there was an ample supply of pood water, which was essential in the manufacture of any of the by-products. The price received for their produce, viz.,. 10% d for cheese, 181s for creamery butter, and 164s for whey butter, must be regarded as satisfactory. The period for which factories had to pay storage had been reduced from three months to two months, but they had to pay the marine insurance to Wellington. 'This arrangement did not terminate at the conclusion of the war. The thanks of all were due to the committee, which was far-sighted enough to conclude the contract for (two years. The contract would terminate in June next, after which it was problematical what would happen, though thinking people thought prices would be fairly good. Whether they would remain at their present high level, be was not prepared to say. •

The cost of manufacture was high, due to the increased cost of everything. The yield, which was the great factor on which the pay-out depended, had been particularly good, probably owing to the fact that the company owned its own cool store, into which the produce could be quickly taken from the factory shelves. A quantity of second grade cheese had been manufactured, due ■probably to the expert labor having been affected during the epidemic. The company, too, had not been pasteurising during the season, because it cost y 4 d per lb, more, and they only received the same price for their cheeso from the Government. The cool store erected 18 months ago had more than justified its existence by the saving in shrinkage. When they realised that a half per cent, shrinkage meant a loss of £IOOO to the company they would understand what a loss of 3 or 4 per cent, would mean when the cheese was stored in an unsuitable place like the refinery at. New , Plymouth. They had placed to reserve account tie mo»*j» U»jr tod nqifeqg

from the Government and some other companies for freezing charges, and as ! these by the end of next June would pay the whole cost of the store the position must be considered very satisfactory.

The coal supply had given the directors a large amount of anxiety, and did not appear likely to get any better, but in his opinion would be worse. The directors were appealing to the' people to split wood, such as pinus insignia, green tawa, etc., which would not have been taken years ago, and he seriously anked each man to strain a point and get a few cords belted up, as if they could not keep the boilers goiug it would bo no use coming to the factory.

Tlie position regarding rennet was not too satisfactory. The rennet manufactured \by the ltennct Company was as good as, if not better than, tha't imported, but the supply given to each factory was in proportion to the veils that factory supplied. If their suppliers saved all their veils and sent them to the company they would got sufficient rennet. Mr. Cooper, manager of the Rennet Company, had asked him to urge on suppliers the necessity of saving all veils. He believed there had been dissatisfaction among some suppliers that they had not got paid for the veils until the end of the season. The directors had now made arrangements so that the veils would be graded as soon as they reached the factory and be paid for the following meeting. A few suppliers had. not yet been paid owing to the veils not being labelled, but if they advised the respective branch managers the matter would be adjusted. On account of the continued congestion of shipping, the Moturoa Freezing Company had put up large extensions to provide more cooling space, and their quota of the cost had been billed at £4020, The directors, however, felt that they were entitled to a little preferential treatment, as they had erected storage accommodation which other companies that had not made similar provision were able to make use of. After considerable negotiation they had got the amount reduced to half, thereby saving £2OIO. He touched briefly on the proposed purchase of a white pine area by the Box Companr, which would necessitate their holding in that concern being considerably increased. Ho then traversed the balance-sheet, pointing out that the capital account lind increased by £IO9O. and the bank overdraft by £IOSO, the latter being due to the advance having been paid out earlier. The reserve fund had increased by £3183. The property and plant account had increased by £llO6, the main items being £612 for purchase of land near the present curing room in case of developments in connection with dried milk, etc., and £2S3 for the purchase of a Ford truck. Their capital in other concerns had increased by £2002 due mainly to the increase of £2OIO in the Moturoa freezing works. A new item £I2OO This include* £iooo placed to the credit of the manager in connection with his trip abroad, and £2OO as the company's share of the levy towards the expenses of the other delegates, which was on a basis of 2s per ton of cheese and 4s per ton of butter. As last year's : suppliers would not get the benefit of these investigations none of it would be j charged against that year's account but | it would be ■capitalised and spread over four or five years, and 'so would not be ■felt. He then touched on the various increases in the cost of manufacture, the \ h b6iu « boxes an<l «*tes £1022, freight £553, insurance £447 ™ r o St ,f 4 °V epttira and renewals i £739, salt £095, wages £BO6. Pales ■ also- showed an increase of £4lOl, duel to the enhanced value. Mr. R. ,T. Knnckey seconded. In rjjply to a question hv Mr. Owen as to why there was so much more depreciation on some branches than on others, the chairman stated that the same practice had been followed as previously. Concrete buildings did not depreciate as heavily as wooden ones. The motion was then carried. ELECTION OF DIRECTORS. Messrs H; D. Forsyth and 0. J. Belcher, the retiring electees, were re-elected unopposed, while Mr. D. Black stock- was elected unopposed in succession to Mr. W. James, resigned. The chairman remarked that apparently shareholders were well satisfied, as for the second year in succession there had been no election.

Mr. W. J.. Tristram was re-elected auditor at the earns remuneration. NOTICES OP MOTION

Mr. Owen had given notice of motion that it be a recommendation to the directors, that interest be paid on fully paid Bhare capital, and a further resolution to the effect that the company purchase shares from shareholders leaving the district. The chairman stated that while not wishing to appear arbitrary he would ask Mr. Owen to withdraw the motions, as the requisite seven days' notice had not been given so as to enable all suppliers to be notified. Mr. Owen i had handed in the notice at 4 p.m. on the previous Saturday, but the company's solicitor advised that it was necessary that seven clear days' notice, not including the date of notification and the date of meeting, should he {riven. The chairman said that the payment of interest was a matter which had cropped up for several years and had been regularly turned down However, if Mr. Owen did not withdraw he (the chairman) would not take the responsibility of deciding, but would throw the onus on the meeting. Mr. Owen agreed to withdraw, stating that he would bring the matter forward next year. Tt was not a personal matter with him, as he was only a small shareholder. Ho pointed out that while the Eltham Company had never seen fit Ito pay interest other very successful : I companies on the coast considered it a j i proper thing to do so. If a bank, for instance, would say to its shareholders that it would not pay Interest, how ! many shares were likely to be taken up? GENERAL. Hearty votes of thanks wore accorded the directors for their past year's success, and also to the chairman. ELECTION OF CHAIRMAN. At a subsequent meeting of directors Mr. H, D. Forsyth was re-elected chairman, Mr. C. Ji Belcher acting chairman, and Mr. B. J. Knuekey deputy chairman.