THE DAIRY INDUSTRY.

Taranaki Daily News, 16 September 1924, Page 8

THE DAIRY INDUSTRY.

THE NGAIRE COMPANY. ANNUAL MEETING. The thirty-first annual meeting of the Ngalre Co-op. Dairy Company was held yesterday, When Mr. H. C. Taylor (chairman of directors) presided over an attendance of about sixty suppliers. The minutes were confirmed with two or three dissentient votes, Mr. Thomas criticising the minute of the resolution which prevented directors from taking shares in any new concern without placing the matter before shareholders, whereas it was the intention of the meeting that they could not enter into anything new without consulting the shareholders. The chairman said that this would take all power out of the directors’ hands. Mr. C. Harrison: The meeting feels that way. Mr. Harrison also complained that a motion moved by him towards the close of the meeting had not been put to the shareholders in the words he had used, and had thus been lost. This was due to the meeting closing in disorder. He considered that steps should be taken to prevent the meeting breaking up in disorder.

In moving the adoption of the report and balance-sheet (already published), the dialrman referred to the general position af the company. He stated that there were very few factories In Taranaki in a better position than Ngalre. The capital account was not big, the reserve fund had steadily increased since 1916, whilst the overdraft was low. Last year, he said, the directors had a difficult season to face. Their expenditure had been heavy, because the old plant, had been worn out. The price paid out was not as high as some factories, but It was still well above the average, Which was about Is 4d to Is sd. On the whole, he considered that the directors had done well. There may have been some weak spots, but these would be explained and not covered up. Wages might appear high to some of them, but actually they were lower two years ago, when all cheese was also manufactured. Wages amounted to £3 7s per ton, but a good deal of work had been done that could have been . placed to repairs and renewals. The previous season butter was made till the end of the season, making a great saving in wages and fuel. Moreover, this year the output (614 tons) was much greater than before, and taking this Into consideration, as well as the fact that they had run right through the winter, wages would be considered reasonable. Fuel also was an important item, and some of the extra cost was due to the fact that coal had been used,all the year, whilst pasteurising had also caused more fuel to be used. Pumping wnr costly owing to the lack of sufficient Storage for water, but this would be remedied early this season at a cost of about £l5O. » The Installation of electric motors, as far as they could gather from careful Investigation and inspection of other plants, would effect a considerable saving, and It was proposed to Jnstal three motors. The railway strike added to the cost, as it necessitated coal being brought from New Plymouth by motor lorry. The Installation of (he new concrete chimney Black also made it more difficult to economise fuel, but it was hoped to effect a big saving this season. Requisites were much lower, due to a decrease in price. As far as renewals was concerned, not a penny had been spent unnecessarily. The buildings had required a good deal of repair. They had written £2OO off the butter plant, but it was unfortunate ti had been installed second-hand. However, if it had not been Installed they would probably have lost some suppliers. Cartage was higher, due to the larger output and the strike. Exchange was a large item, but it was beyona their scope. With the expenditure coming back to normal he was satisfied that suppliers would get everything out of the Industry that It was possible to get. By keeping an eye on the expenditure and keeping tin the quality of the produce they could look forward to a satisfactory season. He pointed out that they must remember that they were paying out bn a . test over four. Had the yield kept the same and had the best been 3.9 or less, they would have paid out over %d more by the balancesheet, but it would not have meant a penny more actually to the suppliers. He then thanked the directors for their assistance, the secretary and staff and the manager and staff, who had had a very trying time.

The motion was seconded by Mr. Coleman. THE DISCUSSION. Considerable discussion took place over the cost of fuel. Mr. Fryday considered the directors should try and cut out the middleman. Mr. C. Harrison pointed out that they were told that the big chimney would prove a fuel economiser, but it had not done so. In 1921 fuel cost 15s per ton on the output, whereas the following year, with the chimney, it had lumped to £1 ss. This year It was £1 10s B*4d, due probably to the extra pasteurising. Mr. J. Redding considered a big saving could be effected by the provision of damper doors. In reply to a supplier, the chairman said that It was estimated that the electric motors would cost £2OO per annum to run. It was considered more economical to instal a number of small motors rather than one large one. To Mr. Redding the manager (Mr. Wood) stated that the motor power would save a lot of fuel. The chairman said that they could not get any guarantee as to the cost of the power, or as to when the power would be available. The present supply would reach Ngaere. The chairman stated that the interim payout during the coming season would be Is 3d per pound butter-fat. The chairman considered that cool curing would be expensive to Instal, and while It might save the shrinkage at this end it might not at the other end. The shrinkage this year Was 2.63 per cent., as compared with 3.19 per cent, last year, a considerable decrease. The manager slated that they used 20.000 to 25,000 gallons of water daily, and a storage tank would save about £l5O per year in steam. The manager stated that the trend of the discussion seemed to be whether they should pasteurise or use raw milk. He estimated that with the storage tank it would only cost an additional £lOO to pasteurise, but against this they would obtain an extra I to 1% per cent, yield. He gave figures from experiments made this year showing that the benflt to the company from pasteurising amounted to £425 per year on their output, and, moreover, there was the question of quality. Without pasteurising In the bad weather he could not guarantee all first grade cheese.

Mr. Wickham asked whether it. was customary to pay the expenses of show cheese. The chairman considered that it was. Het pointed out that, through the deputation gained) by their manager, they had obtained the order' for the Wembley cheese, for which they were paid lOd, as against probably B%d. Moreover,' there was now a big demand for their cheese locally, and this meant £l5 per ton to the company. In reply to Mr. Thomas, the chairman did not think it would pay to cart their cheese to Moturoa by motor. From this distance there would probably be a loss on grading points. They had not gone carefully into the position, but if a saving could he made the directors would go into the matter. They had lost ha f h point in grading when they sent it by the motor during the strike.

The manager said that with pasteurised milk there was no loss of fat In the press. Mr. C. Harrison took exception to the shares In the Rennet and Box Companies being included In the balance-sheet as assets. Provision should be made for writing these items off. The chairman agreed that a reserve fund should he sot up to wipe them off. Mr. Fryday asked why they were holding on to the National Dairy Association, which he described as “always a sinking vessel,” when the Control Board had been formed. The chairman explained that this had been decided upon at the annual conference. The. subscription would only be £3 3s, as against £23 previously. He understood the promissory note would still stand. Mr. <?. Harrison moved that the directors be instructed not to take up any further shares in any concern without consulting the shareholders. This was seconded by Mr. .1. [ Thomas. , Mr. P. Thompson said that the Railway Department were alive to the competition from motor lorries, and there would probably be a decrease in freight. Moreover, with the introduction of the Motor Vehicles Bill, the cost of motor transport would increase. Then they had also to consider that the dairy farmer had tn pay for the maintenance of the roads, th’ough the rates. He strongly advocated the

use of electrld power as against fuel, which was every year becoming more costly. Regarding marine insurance, he strongly favoured a resolution being pasied authorising the Dairy Control Board to establish an insurance fund themselves. Premiums had greatly increased during the past decade, whereas the risks of navigation had greatly decreased. Exchange cost £B6l. That was a heavy item, but it was evidence of the fact that our exports were much greter than our imports. He pointed out that they had an offer for cheese crates that would enable them to save about £3OO as compared with the price paid the Box Company, and it was questionable whether they should remain loyal to that concern. Continuing, he said they had already paid out Is sd, and expected to pay mote than an additional Is 4d. This was above the average, but with their high grade they were not satisfied with that, and were - looking for a bonus for quality when the demand in the right quarter was created. Mr. J. Thomas junr. thought that factories should be allowed to write off more depreciation ; 5 per cent, on plant was not sufficient. Mr. C. Harrison pointed out that wages were lower than they had ever been, being £3 5s per ton, as compared with £4 15s in 1921, and the manager and staff deserved to be congratulated on the result. The report and balance-sheet were adopted. Mr. Harrison’s motion was then discussed. The chairman pointed out that in the Moturoa Freezing Company they were liable to take up shares according to their output. He thought, the matter might be left to the discretion of the directors. Mr. Clement said that it Was a question of confidence or no-confidence In the Rennet Company. Mr. Thomas said that it was not a matter of confidence or no-confidence in the directors, But the shareholders should have a say. The motion was lost, only nine voting for it, ELECTION OF DIRECTORS. The chairman stated that there were a fair number of proxies in. His attitude was that proxies should not be used at any election, particularly those of "dry” shareholders. He considered that proxies should be thrown out unless from supplying shareholders. Proxies had been used indiscriminately in the past, making the elections a farce. It might be legal to use them, but it was not a square deal. He was going to ask the meeting for an expression of opinion. Mr. Fryday stated that they could not disenfranchise the proxy-holders or the election might be upset. Mr. Pratt stated that he had got a couple of proxies, but he understood the chairman had obtained sheaves of proxies. The chairman stated that he had got them to prevent others using them. He had enough if he used them to prevent any one of the five directors getting in. Mr. Fryday said that whatever resolution was carried he would claim the right to use his proxies. The chairman favoured altering the articles of association to debar the use of proxies. He, however, could not compel them not to use their proxies, but he pointed out that if they ■used their proxies he had sufficient to put in any two men he liked. Mr. Wickham, a candidate, stated that ho did not favour proxies from "dry” shareholders and the one he held he would not use. He wanted to go qn the directorate with the votes of the suppliers if he went on at all. Mr. J. Pennlpgton moved: “That this meeting Is opposed to any proxies from "dry” shareholders being used at the election.” This was seconded by Mr. Pratt. The chairman said that the meeting could .not enforce a resolution, but the candidates could recommend those voting for them, not to use "dry” proxies. All the five candidates stated that they were opposed to the use of such proxies. After further discussion the motion was carried. For the two vacancies on the directorate there were five nominations, viz., the two retiring directors (Messrs. H. E. Nowell and J. M. Gatenby) and Messrs. Thos. Blair, J. W. Pratt and W. Wickham. The election resulted as follows: W. Wickham 141, H. E. Nowell 132 (elected), .1. M. Gatenby 105, T. Blair 91, J. W. Pratt 87. Mr. J. H. Thomas was re-elected auditor at the same remuneration. The directors’ honorarium was fixed at the same as last year. Votes of thanks were accorded the retiring directors, the manager, staff and the press. At a subsequent meeting of directors, Mr. H. C. Taylor was re-elected chairman.