DAIRYING INDUSTRY.

Taranaki Daily News, 25 August 1921, Page 8

DAIRYING INDUSTRY.

T. L. TOLL DAIRY COMPANY, THIRTEENTH ANNUAL MEETING. The thirteenth annual meeting of the T. L. Joll Dairy Company was held at the Kapuni Public Hall yesterday, when Mr. J. B. Murdoch (chairman of directors) presided over an attendance of about 120 shareholders. CHAIRMAN’S ADDRESS. In the course of his address the chairman said they had to consider whether butter or cheese would be the better proposition this year, and in this connec- ; tion he pointed out that they would be ‘ 1 faced with the expenditure of £6OOO or j i £7OOO to erect and equip a new butter j I factory, as the old butter factory at Okaiawa was not suitable and could not i be economically enlarged to cope with I 240 boxes per day, which would be their output if all branches turned to butter ■ During the 13 years of the company’s J history last year was the first in which ■ butter had paid a better price than cheese. This, he pointed out, was not ! due to the market, but to the fact that | butter had been commandeered at 2/6. ‘ Haji it been put on the market under ■ the same conditions as cheese, he quesi tioned if it would have returned more j than 2s. In view of this, was it wise to spend £6OOO or £7OOO in erecting and equipping a butter factory so as to change to butter if similar conditions occurred again? This was a point to which they would have to give consideration.

The position of the company was very I successful and compared with other j companies had come out very, well. According to the report it would ! be seen that the pay-out was 24 13-16 d per pound butter-fat. At the time the balance-sheet was made out the cheese unsold (14,000 crates) had been estimated at 8d per lb f.0.b., i.e. 98s per cwt. at Home. At present the market was running from 13? h to 140 s, so that he f was quite satisfied they could pay out 2s 3d, if not. more. The butter in stock (1800 boxes) had .been estimated at Is 7d, and he estimated this would produce over 2s, so there would he a considerable gain. During the thirteen years of its existence the company had added 'new buildings valued at £13.506. new ! plant and machinery £5933, and had 1 taken up shares valued at £13,507 in i various companies. This did not inI elude repairs or replaced machinery. The I company had also written off £7014 an j its buildings and £BOO2 on its plant, and ! all this without asking shareholders to

increase their capital, or to alter the basis, of allotment of shares, which was one share for every 1201bs of butterfat. Moreover, suppliers had never been asked to sign a joint, and several. They

had paid out Is 9d so far. but hoped to pay a further amount in September.

Discussing various items in the bal-ance-sheet, the chairman pointed out that they had paid £21,127 for freight'; on cheese to London, and that did not • include the cheese in stock at the end of j the financial year, nor did it include the* butter on which the Imperial Govern-] ment paid the freight. In pre-war days the freight on butter was 2s 6d per box j and on cheese I<l per pound, while now it. was 6s per box on butter and lid | ! plus 10 per cent on cheese. It thu.i ! cost them £8 3s 4d per ton more to ship their cheese, making a difference to them cji ovex* £20.000 per annum, or equal ' to 2Ad per pound butter-fat. This was ' a matter over which they had no control. They had approached the shipping companies with a view to a reduction without success, as the shipping companies pointed out the difficulties they had b.een faced with, and also stated that dairy produce was one oi the things that could pay freight which was commensurate with its value, whereas meat and wool could not. A further conference was to be held jn January, and in view of coal being cheaper he thought it was possible they might get a reduction next year. A new item iu the balance-sheet was the sum of £56 for grading fees. Previously the Government had carried this out free, but they now levied a charge on factories of Id pey box of butter and 1 l-3ji per crate of cheese. This charge, he thought, would continue. The chairman then moved the adoption, of the report and balance-sheet. Mr. A. C. Johnstone seconded.

THE DISCUSSION. Tn reply to Mr. Yorke, the chairman stated that the bulk store showed a net profit of £267 16s 3d, and the garage showed a net profit of £123 16s sd. He did not think the profit on the store was sufficient to make a rebate. Mr. Harrison considered that if the store could only show a profit of £267 on a turnover of £15,000, it was time, is was “washed out.” ’ The chairman stated that with the fall in the price of goods, storekeepers | had had a difficult time. The store only IxiandJed certain lines. Mr. S<'ott was opposed to the company running a store. He thought it ! should confine itself to the dairying industry. He also asked on what lines the store was run. The chairman stated that the store only carried btilk lines of everyday goods. The company only charged a commission oil cost price. No credit was given to anyone but a supplying shareholder. The profit was subject to taxation.

Mr. Harrison wanted to know why the company was so conservative in its payy>ut. The chairman said that the company could pay out sooner if suppliers agreed to sign a joint and several. They could then obtain money from the bank, but would have to pay interest, and so would receive less for their butter-fat. Mr. Yorke pointed out that the Egmont Box Company had made a loss of about £5OOO. He considered there was something wrong with the management of that concern. It had never paid interest since its inception, and it was time it did. The chairman said that the object of the Box Company was to supply its

shareholders with boxes and crates at cost. If they had to go outside to purchase boxes and crates they would have to pay 50 per cent. more. Air. W. T. Jones asked why the company only paid Is for veils, when the Jlennet Company paid Is 6d. The cnaiFman pointed out that when the veils were graded by the manager of the JReftnet Company they came under the heading of the Is 6d class. The company last year handled 7WO veils. The Rennet Company last year bad achieved its object, when rennet was a high price, b’ft now renuet was coming down.

Jn reply to Mr. Harrison, flu* übairmaa. .»aid jUt*

Company was feeling the financial stringency. He understood that they were now improving their position, and he hoped that would soon again ho purchasing pigs. Prior to the last two years interest had been received from the Bacon Company. Mr. Chapman pointed out that the Bacon Company was now going in for the skin business. A supplier asked why the test during the butter period was higher than during the cheese period, viz., 4JIB as against 3.83. The chairman pointed out. that cheese was made up to December 12, when the test generally was low, whereas butter was made all through, the autumn, when the test was high. To another supplier the chairman said that factory managers were restricted to the amount of butter used per week. 1 One supplier considered that the overrun was too high, whilst another conjsidered that the yield for the cheese 1 was too low.

The chairman said that be would not have minded if the overrun had been higher. He considered, however, that the manager had done good work. He pointed out that their yield allowed for 24 per cent, shrinkage, which made a difference. He had seen some companies where the yield was 2.90, but he would like to know how it was made up. The chairman said the adjustment owing to the fire at Patea was now being arranged. The Government did not pay the subsidy on butter until the season closed at the end of this month. The report and balance-sheet were then adopted. ELECTION OF DIRECTORS. Mr. IT. A. Lennon was re-elected auditor at a fee of 40 guineas. For the election of three directors to fill the vacancies caused by the retirement of Messrs. T. Walsh, VV. Slattery and W. F. Lyndon, there were six nominations, and the election resulted: — Messrs. D. Malone 344, J. W. Paterson 314, W. Slattery 2?»2 (elected) ; E. Chapman 241, T. Walsh 220, P. Hickland 158. Mr. W. F. Lyndon did not seek re-elec-tion. A vote of appreciation was passed with Mr. Walsh for the services he had rendered during his term as director j-since the inception of the company. ; The directors were voted £1 Is, per i meeting.

GENERAL. Mr Betts asked whether the company intended making any alteration to the Okaiawa cheese factory. At present there was considerable delay in receiving milk.—The chairman sifid that the directors had under consideration alterai tions with a view to economy. [ Mr. Yorke asked whether any allowance had been made for suppliers who/ [received back whey as against those who [received skim milk.—The chairman said i that it was so late in the season when ■ the change was made that it was questionable if suppliers could have taken ? advantage of it. Moreover, the articles iof association did not permit of differ- | J.entiai payments being made to suppliers, i [ Replying to Mr. Hurley, the chairman paid that the directors had not decided [whore to erect a butter factory, if one j was* decid.nl upon, as one of the main ■ considerations was a good, supply ’of [water and drainage, and the former was ja difficulty in their district. j Further desultory discussion took ; place over the store, one supplier movI ing tha t the store be closed. | In reply to a z supplier, the chairman stated that the company was consignI ing its output again through Messrs. I Lovell and Christmas, who had always [ treated them very well. The supplier asked whether the directors had considered the interests of the

suppliers. Could they stijl sell if they received a good offer? The chairman reiterated that they had consigned. The supplier: •’’Then we’ve been left the husks.” After further discussion.’ Mr. Harrison asked whether the disposal of the output could not bo loft to the. annual meeting. . The chairman said that it was no use ' having directors if they wore not ali lowed to conduct the affairs of the com-

; pany. | Mr. Yorke asked whether something I could not be done on the lines suggest|ed by Mr. J. R. Corrigan, at Ilawora, with p. view to reducing the cost of marine insurance, as the Farmers’ Mutual had been the means of reducing lire insurance.— The chairman pointed out that there were difficulties. Tn reply to Mr. Scott, the chairman said that if it was decided to erect a i butter factory, which would cost about

£4OOO, it would be necessary to alter the basis of allotment of the share capital from 1201bs. of butter-fat to lOOlbs. Mr. Scott considered that the directors should consider the question of the railway when building their butter factory, and the claims of Kapuni should receive consideration. A vote of thanks was accorded ilie manager and staff, the chairman mak'ng appreciative reference to their work. A-r. Fraser (general manager) was voted a bonus of £5O. A vote of thanks was also accorded the chairman.