TEMUKA DAIRY COMPAQ.

Temuka Leader, Issue 1950, 1 October 1889, Page 2

TEMUKA DAIRY COMPAQ.

ANNUAL MEETING OF SHAREHOLDERS. The annual meeting of the stareholdera of the Temaka 1 Butter, and Bacon-curing; Company, Limited,, was held at ‘the Wallingford Hotel, Temaka, last night. There was a good attendance. ahd Mr J. Brown, chairman of the directors, occupied the chairl : ’ ■ '■ The secretary submitted the balancesheet for the year ending the 31sfc August, 1889, and read the following report To the Shareholders. ’; ’ ■ Gentlemen,— Your directors have pleasure; in placing before you; the .balancesheet for the past thirteen months. On reference to the profit and loss account it will be seen that the: debit balance has been reduced from £572 2s 9d to £279 16s Id, or, iu other words, that : thAcompany has made a profit of £212 6s 8d on its transactions for the period covered by the balance-sheet. This is satisfactory an far as it goes, and, doubtless, but for the extremely dry./weather which prevailed during the greater part of last season, the supply of, milk would, have been larger, and the profit proportionately greater. The financial position of the company, may be shortly stated, as follows : The overdraft is £IBB9 15a Bd, ,and the amount owing ! to sundry creditors is £lO5. Against these there are 1 the following; Cheese on hand, and cheese consigned but not yet paid for, £1497 X4i 7d, and unpaid calls £ll3 14s 6d, which being deducted leaves a deficiency of £3BB 6s 7d, as against £7Ol 2a Id last year, showing that the position of the company has improvedito the extent of £317 15sOd. It may he pointed out that these figures are based upon a valuation of the cheese in: hand, which is lower than the prices which have been realised up to the pr«o sent titpe.

The expenditure has been reduced in , every way, as far as possible, and will bear comparison with any previous year, when It, is borne in mind that it has extended over a period of thirteen months. ‘ The directors have accepted an offer from the manager (Mr Bowman) of a reduction of £SO in his salary for the present year, which will be a material assistance in this respect. , ~ - All necessary repairs have been made, and the fittings are in good order for another season. To work the factory a certain outlay is necessary,’ and the larger the quantity of milk supplied the smaller becomes the cost per ton of the manufacture of the cheese. The directors hope, therefore, that the suppliers will assist them* by sending as much milk to the factory ns possible. The question of the manufacture of Cheddar cheese was carefully considered at the beginning of the seasons a quantity of that class of cheese has been made, which has turned out remarkably well; but it was found that to make butter would involve such a large outlay that the idea was abandoned.

The manager has been appointed for another season, and the factory will reopen to-morrow morning. It will be necessary this evening to elect four directors in place of Messrs James Austin, R. A. Barker, G. J. Mason, and G. Woodhead, all of whom. are eligible for re-election ; also to elect an auditor, and to fix the remuneration for his services.

From the balance sheet.it appeared that the total amount paid for milk amounted to £13616s lid; for interest on overdraft, £l4B 9s; salaries, £325; fuel, £B2 Os 9d; cases, £66 18s 2d; coloring, rennet and cloth £96 8s 8d; insurance, repairs, carting, rates, etc.,

: £ll7 Bs4d. The cheese in stock is 61,3031 b, and consigned hut not yet paid for 10,5881 b. This was estimated to produce 5d per lb. The chairman said that be could not add much to the report. There had been a drawback in the fact that the quantity of milk supplied was less than in former years. He did not think that those who withheld their milk had made a gain, for ' shipments of butter and cheese had been failures. The company had not incurred any risk by shipments, but had sold in the • colony. Last year the cheese on band had Vbeen sold at a slight advance on their ' estimates. He did no* think they had anything to lament in holding the cheese. For soma they had received as much as 6£d and s|d per lb, and he thought that they were justified in holding. If they bad received as milk as formerly their expenses would have been proportionately lighter. The increased amount that would have been manufactured would probably have forced them into the market and perhaps this would have saved on their overdraft. The amount eet down for cases I might look largo, bat they had cases enough I for all the cheese en hand, as they bad to be prepared for shipment at any time. ’ He hoped the farmers would support the . industry, for the directors had worked principally for them, and they (the - farmers) were at present the only ones ■ really receiving any benefit. The direci! tors guaranteed the bank overdraft, and had without asking for a mortgage 1 to pay the farmers for their milk. He considered their position a good one at " present. Their liabilities were small, .as compared with the assets, and he thought they were in a fair way to do well. Hfe . moved the adoption of the report and k balance-sheet. I v.Mr Clinch seconded the motion. I ; v, Mr O. Mathews thought it would have - •been better if the cheese had been soldi They would have known their position. ‘’ better. He did not believe in the prospect of fid per lb, ~ The chairman sa.id it was possible, that "'if they had sold it might have been . better. They Could not, always be right, ■ Last year, as he had stated, they had benefited, by, holding. ...... . Mr Quinn thought it, would be difficult to get a better lot of directors than the last. They .were clear-headed business j., men, and largely interested in the concern, and,he, for one, was satisfied with their actions. ! The report and balance-sheet were then adopted as read, . The* chairman stated that the next business was the election of directors. He regretted that since the report had been written Dr Hayes had sent in his resignation. He trusted ho would withdraw ■lt. Dr Hayes said that his time was not always his own, and if anyone could be found to take his place he should be glad, . Ultimately, at the chairman’s urgent ' request, .Dr Hayes withdraw his resignation. . * ELECTION OF DIRECTORS. Some discussion ensued as to the method ' of electing directors, and it was agreed that the method should be by ballot, each shareholder to have one vote. 1 J ' The following nominations were received!— Messrs J. Austin, R. A. v Barker, 0. Matthews, T. Parke, and E, Thomas. The first four were elected. AUDITOR, Oo the motion of Mr Twomey, seconded by Mr Austin, it was resolved—“ That Mr W. ,G. Aspitiall be elected auditor, at a remuneration of two guineas.” . MISCELLANEOUS. Mr E. Brown asked if the amount standing in the balance-sheet as unpaid calls was realisable. The Secretary stated that this amount c.iWasJoeing paid eff gradually. Milk euppliers were bound to taka shares, and > time was given them to pay them off. Dr Hayes suggested that milk suppliers : Hhonld be made to take up shares in proportion to the amount of milk supplied. The chairman thought it a matter deserving of th® Directors’ attention. Mr °6ray thought the time had corns when it might be well to mortgage the property io place of paying the heavy interest entailed by a bank overdraft. There would certainly be a considerable saving. The Chairman said the matter had been talked over by the directors. They thought it would be necessary to have the consent of shareholders. A difficulty might occur in the svent of money, accommodation being required, and if tbe properly were mortgaged the Bank would probably refuse it. After brief discussion, Mr Quinn moved «* That it be a recommendation to the directors to take into consideration the propriety, in the interest of the Company, of mortgaging the property to pay off the Bank overdraft.” Speaking to the motion he thought it a great hardship that a director should be asked to give a personal guarantee to the bank for the overdraft. Mr E. Brown seconded the motion, which was carried unanimously. Mr Twomey drew attention to tbe fact that ’in mortgaging the interest on tbe ; whole amount would have to ba paid, whereas the amount of overdraft fluctuated and the interest was from time to time proportionately low. ‘ D r Hayes thought that matter might be arranged by placing surplus funds at deposit. Messrs Quinn and Hayes again spoke in fayor of the suggestion. - Air Twofflfiy sftid th&t tno succcbss oi the concern was largely due to the enterprise of the directors, who had guaranteed the overdraft, and he thought the thanks of the shareholders were due to them on this account. He did not object to the •proposal to mortgage, but he merely desired to point out That it might aot be bo profitable a scheme as at first appeared. The chairman drew attention to the fact that the paddock and whey were let at an advance of £2O on last year’s rate. This, with the saving on the manager’s salary, wos a considerable item.

VOTES OE THANKS. Mr Twomey moved “That a cordial vote of thanks ba passed to the directors of the past year.” The motion was seconded by Mr M. Quinn and carried. Mr Gray moved ood Mr Twomey seconded “ That a hearty vote of thanks be passed to (ha secretary for his diligent services, and to the manager. Mr Gray said that the former had gifen the affairs of ti e company every attention, and the 'latter, on recognising that the company-was not paying very well, had at once come forward and taken a substantial

reduction in salary, He had also contributed in many ways to keep down expenses. Mr Ash well returned thanks for the manager and himself. A vote of thanks was passed to the chairman for the able way in which he had conducted the meotiner, and the proceedings terminated.