BELL BLOCK DAIRY COY.

Taranaki Herald, Volume LXVI, Issue 16216, 22 August 1918, Page 7

BELL BLOCK DAIRY COY.

ANNUAL MEETING. The annual meeting of the Bell Block Dairy Company was held at the hall-on Wednesday evening, Mr. J. S. Connett presiding over a good attendance of shareholders. ANNUAL REPORT. The directors in their annual report congratulated the shareholders on establishing new records both as to payment and quantity of output. The following was the total of milk and but-ter-fat received : Bell Block, milk 8,250,4061 b, butterfat 354,6051 b, average test 4.29; Hillsborough, milk 3,553,6421 b, butter-fat 150,4141 b, average test 4.23; total, milk 11,804,0481 b. butter-fat 505,0191 b, average test 4.278. During the past season they have had to take up 57 additional shares of £lO each in the Taranaki Producers Freezing Company, Ltd. Tho additional capital being required by that company to provide storage for dairy produce. They would now have to take up 106 more shares, and the £IO6O would have to be paid during the coming season to endeavour to cope with the storage problem. In order to meet this expenditure the directors decided to set aside £IOOO from profit and loss and open a reserve fund. After setting aside the £IOOO for reserve fund and writing off £939 for depreciation, the profit and loss account showed a credit balance of £13,552 10s lOd, which the directors recommended be allocated as follows:—The payment of/ the usual dividend of six per cent, on all capital paid to June 30, 1917, amounting to £164 4s 6d, and a further payment to suppliers on their past season’s supply of 6£d per lb of butterfat, bringing tho total payment for butter-fat to Is 9Jd. The addition of six per cent on share capital was equal to an average pay-out of 21.33 d per lb of butter-fat.

As a considerable quantity of last season’s cheese remained in store at Moturoa, it was recommended that 4d per lb of butter-fat and the dividend bo paid at the annual meeting, and the balance later when more cheese had been shipped. The directors had succeeded in obtaining two acres of land opposite tho factory at Bell Block with a view to erecting dwellings for the employees in the future. The following statistics were also presented at the meeting, the figures for 1917 being given in parenthesis:— Number of suppliers 85 (77); milk received 11,804.0481 b (10,408,3861 b); average test 4.27 (4.15); butter-fat 505,0191 b (433,2501 b); average price paid to suppliers 21.33 d (20.06 d); cheese made 1,250,5001 b (1,096,5101 b); lb milk per lb cheese 9.431 b (9.51 b) ; lb cheese per lb butter-fat 2.51 b (2.531 b); average grade Bell Block 90.36 (90.76); average grade Hillsborough 91.56 (91.96). CHAIRMAN’S ADDRESS. The chairman, in moving the adoption of the report said he thought it was a matter for congratulation that the directors were able to place before the shareholders such a satisfactory balance sheet seeing that the Empire and all leading nations of the world were involved in the greatest war in history. Situated as New Zealand was, so far from the scene of battle, our people had very little to remind them that *the war was on. The gravity of the situation was only brought home to those who suffered bereavement or had their dearest relatives taking part in this great struggle, and those who had the responsibility of the Dominion’s business on their shoulders. To them the past year had been an exceedingly anxious one and 1 the future was equally grave as far as they could see at the present time. The need for more fighting men had led to the requisition of a greater number of ships for military purposes and added to that the losses sustained as the result of submarines had made tho shipping position exceedingly difficult and hut for the fact that the Imperial Government had purchased the Dominion’s output and agreed to make liberal advances against the produce held in store the position would have been far more serious for the produce.rs than it is. The great distance we wore from the markets of the world placed us at a disadvantage in the marketing of our produce the boats being diverted to the nearest source of supply. Thus the nearer country received a preference and this would 1 no doubt have been much more marked hut for the fact that the Imperial Government, recognising the very fine response made by the Dominion to the Empire’s call for men, had endeavoured to, give ns every consideration possible in the way of shipping. Owing to the fact that 'so much shipping was necessary to transport men and munitions and equipment from America to Europe the shipping to New Zealand was likely to bo even more scarce in the future than it bad been hitherto.

Continuing, Mr. Connctt said that the shortage of shipping last season had meant a. serious loss to the producers. Whtfn the works at Moturoa became full it was to look around for temporary storage elsewhere and 20,000 boxes of butter were stored in the meat works at Smart Road and one of the large sheds at the Petroleum works was also secured, as in the previous year and in this four or five thousand crates of cheese were placed. Many companies had secured storage of their own in New Plymouth whilst others stored all they possibly could in their own buildings. Naturally there was a great deal of shrinkage and further than that much of it depreciated in quality it had to ho held so long. No relief was obtained to any material extent until the new additions to the Moturoa works authorised last year were completed. Just about this time, too, a quantity of produce was shipped and so they were able to get the stocks held in tho factories and outside stores m to tho works. At the present time the whole of the butter had been exported but there was quite a large amount of cheese still on hand. At the end of tho freezing works financial year there were 70,000 crates of cheese still in store—in other works, more than half of the season’s make. Tho position appeared to tho directors of the freezing works to he exceedingly grave and as tho result of careful enquiries among the loading authorities they came to tho conclusion that the prospects for the coming season were such as to warrant them going in for still further storage—in fact that it was absolutely necessary if they wore to maintain tho produce in good condition. Mr. f'onnett then detailed what further provision had been made at the works and the arrangements mado with the

Farmers 1 Meat Company, particulars of which have already been published. Another matter which had caused considerable concern last season had been in connection with tho supplies of boxes and crates. Tho ordinary fac- j tory supplier did not probably know very much about this, but it would bo seen on reference to tho balance-sheet that tho cost of these necessities was increasing. Tho company held shares in the Box Company, and one of tho effects of the war had been tho depletion of labour owing to so many of the bushinen having gone to tho front; so much so, in fact, that it had been impossible to get tho necessary supplies of dry timber to meet requirements. Consequently, considerable annoyance had been caused factory managers who had been receiving wot timber. However, they had had to do the best tliey could with the material available. The difficulty had been added to because of tho fact that supplies of timber could not bo purchased outside the Box Company, all the mills having entered into contracts with Australia where white pine was in great demand. There had boon no restriction of exports, and very large supplies had been shipped at a higher figure than we were accustomed to pay m New Zealand. Representations had been made to the Government to restrict tho export of white pine, but it was only recently that any good had come out of it. Now steps would ho taken to see that the export trade was partially restrict od, or at any into to seo that local requirements were met. For the coming season, therefore, the outlook in this connection appeared to be more satisfactory. ■Proceeding, Mr. Connett dealt with the sale of last season’s output, and outlined the negotiations which proceeded with the Imperial Government before the deal was finally settled, and then went on to say that although they received an advance of compared with the previous year, the conditions that were attached to the sale made it of very little more value, inasmuch as factories were called upon to pay three months’ storage, insurance during that period, and other charges, which they did not have to meet tho previous year. Another condition of the sale was that an advance of 90 per cent, would be made on all cheese in cold storage—not temporary storage—and the balance would be paid when the cheese was put on hoard. Their own factory had quite a lot of cheese in store when the bal-ance-sheet was made up, but since that time a good deal of it had been got away. However, they still had a number of cheese in store on which the 10 per cent, was outstanding. Negotiations for the sale of this season’s output were commenced earlier than was the case last year, but despite this, nothing definite had as yet been done. They were looking fprward to receiving an equivalent price to Canadian.

Mr. Connett then dealt with the question of housing the staff, which had always been a difficult problem, and pointed out that a section of two acres had been acquired opposite the factory. Tliere had been considerable excitement in reference to dried milk and milk of sugar, and at a representative meeting held at Hawera a committee had been appointed to gather all possible information on the subject and report to a subsequent meeting. He mentioned that there was not much chance of doing anything this year. Dealing more particularly with the affaire of the company, Mr. Connett said there had been a considerable increase in the make last season due to the fact that the number of suppliers had increased. 1100 additional shares having been taken up. He then went on to review in detail the balance-sheet, stressing the point that the increased cost of factory requisites had been most marked 1 . Tho fact that Mr. Roller, their manager, had.undertaken the the manufacture of rennet for the company had resulted in a considerable saving. He then formally moved THE DISCUSSION. Mr. King thought that provision for meeting the liability in connection with the additional shares in the freezing works should have been made in the coming season’s operations. It was unfair to the share-milker and the migratory farmer who may not be in the district this year to take it from last year’s working. In reply to Mr. Wyatt tho chairman said the cost of manufacture had been 1.27 d per lb. of cheese. In reply to Mr Ogle the chairman said three or four mates of cheese had been returned from the grading port. Mr. Wyatt considered the factory was over-staffed. There was no need, in his opinion, to have so many managers. Mr. Ogle also considered the factory was not big enough to warrant three managers.

In reply to further questions the chairman explained that the cost of manufacture including repairs and renewals was 1.46 d per lb of cheese. So far as the number of hands employed was concerned, they were only employing the recognised number—just the same as any other factory of similar capacity would have to employ. Mr. King considered the directors had written the depreciation at too high a rate. In reply to Mr. Ogle the chairman said it was proposed tp proceed with the erection of the manager’s house immediately; plans were now being prepared. The house would be built in concrete, and would cost £9OO to £IOOO. Mr. King thought the erection of a new house should have been deferred, seeing that the cost of material was so high at the present time. _ . Mr. Wyatt considered the directors should have called a special meeting of shareholders to discuss the question before doing anything definite in the matter. After further discussion the motion was carried. ELECTION OF DIRECTORS. The retiring directors, Messrs. G. Pitt and J. H. Street, were re-elected unopposed, and Mr. A. J. Tunbridge was reappointed auditor. GENERAL. The chairman was voted an honorarium of £3O, and the directors £7 10s each, for their services during the past year. The directors were also accorded a very hearty vote of thanks. Votes of thanks were also accorded the secretary and staff. Mr. Ogle referred to the proposed extensions in connection with the New Plymouth electrical undertaking, and suggested that the directors see if it would bo possible to extend the mains in order that electric power could be installed at the factory.—Tho Chairman said tho directors bad discussed the matter, and would see if anything could be done. ELECTION OF CHAIRMAN. At a subsequent meeting of directors Mr. Connett was re-elected chairman. At the close of the mooting refreshment swere served' by Mcsdames Connect, .1. H. Street and C. Colson and Miss Connett, who were accorded a very hearty, .vote of thanks.