TEMUKA LINSEED COMPANY.

Temuka Leader, Issue 1488, 3 April 1886, Page 2

TEMUKA LINSEED COMPANY.

The annual general meeting of the shareholders of the Temuka Linseed, Oil, Cake, and Fibre Manufacturing Company was held last Wednesday evening. Mr John Talbot occupied the chair, and there were about 12 shareholders present, nine of whom wore Directors. After the minutes of the last Annual meeting were read and confirmed, the Chairman read the annual report as follows :

"Annual report of the Temuka Linseed, Oil, Cuke, and Fibre Company Limited—for the year ending 27th February, 1886. " To the Shareholders.

"Gentlemen, —At our last annual meeting you vrere Informed that a spinning plant had been ordered in England for the Company, by Mr Hayhurst, senr. ; that the capital at the disposal of the Directors would be too small to enable them to take it up, erect the necessary buildings, etc., unless some special and extraordinary provisions were made ; that the Directors having faith in the ultimate success of the undertaking, and being of opinion that the plant ordered was of a suitable nature, expressed to the bhareholders their willingness to give their personal guarantee to the Bank, io order to obtain the necessary funds, provided the amount of such guarantee was made a first charge upon the assets of the Company. Extraordinary meetings of shareholders were duly held to consider this question, at which resolutions were passed authorising the Directors to give their personal guarantee and to secure themselves as aforesaid.

u The machinary arrived here in the month of August, in good order, and was set up as expeditiously as possible. The Directors decided it should be set up and its capabilities tested before proceeding to purchase an engine and boiler to give the necessary motive power, the use of an engine being obtained temporarily for the purpose. Ihe machinery having been found to work satisfactorily, an 18 h.p. engine and boiler to match, have been purchaaed, and is at present being fixed in position ; a shed is also being erected to covar the rope-walk. These works will be completed in the course of a few days, when operations will commence and the factory be put into constant and full operations.

"It being considered doubtful if enough linseed would be grown in the district to produce sufficient material for a years work, the Directors decided to grow some on account of the Company, and accordingly a paddock of about 130 acres was rented, on which a crop was produced. This, together with whai has been purchased from farmers will be sufficient to furnish fibre for the current year's operation. "Wo again impress upon shareholders and others, that, to eoabl* the Company to attain the success that all must desire, it will be incumbent upon them in the future to cultivate at least a small area of linseed.

" The Directors are of opinion that independently of the indirect benefit they will receive from the Company's operations, it vill be found that the price wjich is being paid for tha ctop, viz., £3 per ton for the unthreshed straw, delivered Hfc the factory, will prove remunerative to the grower.

".b'roai the specifications and description sent us of the spinning plant, it was anticipated that the making of binding twine would constitute the oaain feature of our operations. We find, however, the plant is more especially adaptsd to the production of small rope and the heavier description of twine. Binding twine can be produced, in fact several of the Directors were suppliei with what they required for their own use during the harvest, the quality and "get up" of which was excellent. The machinery, however, cannot produce it speedily enough to insure its profitable manufacture. It is not intended to definitely give up the idea of pursuing this brancn of the industry, and therefore enquiries are being made to ascertain the cost of importing a sat of spindlas, capable of producing binding aud seaming twines up to about 6 cwt a day of the former, We estimate the cost will be about £SOO.

"In April last we received an offer from Mr Hugh Monaghan, «f Dunedin, to assume the managemeot of the Company, and after soma negotiations he was ap pointed, vice Mr J. Davie. MrMonaghun was trained to the business of rope ami twine spinning in the Old Country, and having satisfied himself that our undertaking promised to become successful, offered to take a portion of the salary agreed upon, in shares. The Directors are well satisfied with the appointment, the setting up and starting the intricate machinery having been successfully aocompliihed by him, thereby giving an earnest of his practical abilities.

'' The balance-sheet discloses an overdraft of £3247 with the Bank of New Zealand for recently incurred expenses, on account of machinery, buildings, etc., bringing our indebtedness up to about £4OOO. In view of this position shareholders must be prepared to be called upon to pay up the remainder of the share capital as speedily as it can be got in. The overdraft must be substantially reduced within a reasonable period, and the Directors expect that the receipts from the source mentioned, together with proceeds from sale of their goods, which is now conuencing, will enabla th«m to do so.

" Up to the present time our operations have almost exclusively involved expenditure for machinery, buildings, and purchase of raw material. We trust we have now reached the turning point in our affairs and that we are about to enter upon a useful and profitable career. "Eighteen Directors' meetings hnve been held during the year, with an average attendance of seven members. " J. Talbot, Chairman."

The Chairman continued to say that the business, in addition to adopting the i epoi t, consisted of electing three Directors in the room of himself, Mr Hayhurst, and Mr Postlethwaite, jun., who had retired by rotation, but were eligible for reelection. They had also to appoint an auditor. He regretted that there were very few preient beßitles the Directors, but he took it that it wai because the

shareholders were satisfied that they did not turn up. Any one who desired any information could get it now by asking questions. He might say that though they had no dividend to give, the result of tho year's work was f uirly satisfactory. By this time next year ha hoped to be able to declare a dividend. They were aware that the Director* had a troublesome task, and they had dona as much as they could. They had not pushed things ahead very energetically, but had rather gone to work cautiously and prudently. He appreciated fully the way the other Directors had work3d with him. There was always the greatest unanimity amongst them, and this lightened the burden of all their troubles and anxieties. He hoped to have a better balance-sheet to submit next year, and now he would move the adoption of the report. Mr W. Postlethwaite had great pleasure in seconding the motion. He could fully realise the great difficulties the Directors had to encountei, and the shareholders mnst feel thankful to them for having carried on the work so successfully. When one visited the scene of, the industry, and saw the buildings, the improvements, the machinery, and the other thinga which have been got together there, one could easily see that with the limited resources at their command the Directors had no easy task. Although there was no dividend he considered tho balance-sheet very creditable, and gate promise of future good results. . There was one thing necessary, and that yii, the farmers ought to come to their assistance and grow linseed. There was another thing, they ought to fry and get in the calls due more readily. If the calls were paid up tliey would be in a better financial position. He had great pleasure in seconding the adoption of the report and balance-sheet. The Chairman in putting tho motion said it was very necessary that prople should pay up their calls as soon as possible. The motion was carried unanimously. Mr Postlethwaite next.moyed—" That the three retiring Directors, Messrs Talbot, Hayhurst, and Postlethwaite be reelected."

The motion was seconded by Mr Harrison and carried unauiraoualy.

The Chairman aaid the next business was to elect an auditor.

Mr Twomey s<\id before they went any further they ought to express their appreciation of the manner in which the Directors lii'l performed their duties during t'ie past year. Thtre was no doubt but that if they had not given their personal gmirantee to the Bank, the iuilu3try could never have gone on. He would therefore move a hearty vote of thanks to the Directors for the manner in which they had transacted the business of the Company during the p».st year. Mr Metson seconded the motion. At one time he regretted ever having invested his money in the concern, but he wag beginning tc look more hopefully on it now, and he was sure it would be a grand industry jd the course of time. The motion was carried by acclamation.

Mr Talbot in replying on behalf of the Directors thanked them for this expression of their feelings. Unless people took a good deal of risk and responsibility there was no possibility of starting industries in this colony. As regards their manager, the Directors felt they were fortunate in getting so good a man. He was a man who has a practical knowledge of his business and did his work well. The way he got up the machinery and got everything into working order showed that he thoroughly understood his business. The industry was a very important one, and was capable of gre;it expansion and of employing a great deal of labor. The linseed could be got off the ground as cheaply as any other crop, and if the farmers grew it they would yet have a very important industry. Mr Twomey moved a hearty vote of thanks to Mr Monoghan, the manager, and in doing so spoke very highly of th« services rendered by hiw to the Company.

Mr 11. H. Postlethwaite seconded the motion, and said they had been most fortunate in getting so good a man. Mr Monoghan felt very thankful to them for the vote of thanks. He had great faith in the future of the industry, and would do his best to push it. By this time next year he hopad they would have a better account to give of it. The Chairman said there was another officer who deserved their thanks—Mr Ashwell. He had a lot of books to keep and a lot of work to do, and he had done it well. He was certainly entitled to great praise for it. Mr Ashwell said he was glad to learn that his work had met with their approval. He would always do his best for the Company. On the motion of Mr Twotney, seconded by Mr Miles, Mr Rout was re-electdd auditor for the ensuing year. Mr Harrison thought any one employed constantly by the Company ought to take up shares. The manager would have tha same control over them if they were shareholders as he would if they were not.

Mr Monoghan was in favor of that, because he believed the men would take more interest in the work.

Mr Metson thought it was fitter to give work to shareholders than to men who cared nothing at all for the industry. The Chairman said things being- equal shareholders would get the preference of the work. They could not very well say you must take shares or knock off. There were a great many boys there from whom such things could not be demanded. The idea was good, but the Company would employ the cheapest labor. Mr Barker suggested to deduct a shilling; a week or something until it came to a share. If it became necessary to dismiss a man the money could be returned to him.

Mr Meison said if the employees weie. given to understand that their billets depended on it they would not hesitate to become shareholders.

The question was argued out at some length, and ultimately it was decided to leave the matter in the hands of the Directors.

Mr Twomey moved ft vote of thanks to the Chairman. Mr W. Postlethwaite seconded the motion, and in doing so paid a compliment to Mr Talbot for the way he had piloted the Company. Mr Talbot, in acknowledging the compliment, said there was a vote of (hanks due to Mr Postlethwaite for the way he looked after their interests whilst in

LondoD. He was a man of practical experience, and did a great deal for them there. He would move a vote of thanks to him.

Mr E. Brown seconded the motion, and it was carried by acclamation, MrPostlethwaite said he had not done much, but anything he did gave him great pleasure. He had ascertained that the article they lent to London was of inferior quality. He attended the sale, and it compared very unfavorably with the flax from other parts. One thing they should strive after, and that was to make anytbiDg they intended to export of the best quality, and then they would get the best price. Had the flax they lent to London been properly dressed they would have got £5 a ton more for it. Mr Monaghan proposed a vote of thankß to Mr Lyons for the assistance he had given in erecting the machinery. Mr Lyons acknowledged the compliment, and the meeting terminated.