WAREA DAIRY COMPANY.

Taranaki Herald, Volume LXVII, Issue 16506, 6 August 1919, Page 10

WAREA DAIRY COMPANY.

ANNUAL MEETING. The 23rd annual meeting of tho Warea Co-operative " Dairy Taetory Company was held at the Warea Hall on Monday, .Mr. W. Rumball, chairman of directors, presiding over a good attendance of shareholders. ANNUAL (REPORT. The, annual report stated that tho following were file particulars of milk received and cheese, and butler made; .Unk received, Warea, 4,i07,59 libs.; Newall, 1.79U.4751b5; total or average, 6,-304.02 libs, JfuttciTut. Warea, 183,617.981b5; Newall, ;0.(j13.021b5; total or average, 251,23i.001b5. Average test, Warea, 3,90; Newall 3.93, total or average 3,i11. Buttcrfat for ciiee-e (including J’nngareliu milk). Warea. 180,171)1 bsT”; Newall, 719-31 lbs.; total or average 2-:32,1331bi. Cbec-c made (grade weight delivered Mofuroal, Warea -1G4,fUnifis.; Newall, 183.9331b5. ; total or average 648.8821b5.. Lbs. milk to 11b. cheese, Warea, 9.98; Newall. 9.97. Lbs, cheese to lib buUeiTat, V\ area. 2.53; Newall, 2.55. Official average grade, Warea 89.93; Newall 89.88. Whey butter made, 79711b5; creamery butler made 70521b5. The amount to credit of profit and loss account oa closing the hooks was £lOll Os. 39. Out of this the directors had aiipbk ! £l9l 17s 2d to cover depreciation of die company’s buildings and plant. leaving a balance of £449 3s Id. Out of fills the directors propo-.ed a payment of -3 per cent, interest 1 for the year on fully paid shares, which would absorb £2o< 9s ‘2d, and a furlh"r payment of Id. per l!n buttcrfat re er the whole year (,£4237 3s Sri), wliico would leave £ 1 10s 3d lo be carried forward.

The total payment would be Is lOd per Hi. Imitcrfat in addition to interest on share-.

Tho directors regretted that the year's working did not show better results, lint iac poor yields ol cheese at both factories, in conjunction wii.li a decreased supply of milk and very seriously increased cost of all requisites, accounted for the comparatively low price paid far buttcrfat. Shortly after the last, annua! meeting the company lost the serv.ice- of Mr. Burgess as chairman, lie having disposed of Ids farm and MM he district. and the directors wished la place on record the company's appreciation ol the many years of strenuous work done, by him.

The directors were taking slops to complete the purchase of the piece ol land required as site for manager’s residence, and the u company would probably be faced with some expenditure in Ibis direction.

Tho company would bo required lo lake up further shares in flic F.gmont Box Co., the latter company having decided to increase their capital lor the purpose of acquiring a further valuable area of bush containing a large quantity of white pine.

CHAIRMAN'S ADDRESS

The chairman, in moving the adoption of the report referred at t he'outset to the retirement of Mr. J. Burgess who for many yeans was chairman of the company, and who had never hesitated to plaee his time and his undoubted ability at the disposal of the company, lie also regretted that they were Indng the services of Mr. Clothier who had also rendered good service lor many rears as a director. Continuing, Mr. ‘.Rvunball said that when they met last rear they were just entering on the fifth year of ‘war, and few realised that it was going to come to such a speedy termination. Disc Germans had just been making their greatest effort, and the Empire and lior allies had been passing through many anxious time-, tint thev all recognised that right and iu-tico was on their side, ami that their cause mu-t prevail in Die end. The peace which bad been signed laid been made possible by the splendid sacriiices and heroism of the men who had gone forth to fight the Empire’s battles ; men who had worthily upheld the traditions of the race. Iho armistice had hardly been signed when the influenza. epidemic broke out. M area district fared well compared with many others, but it was felt advisable to establish a temporary hospital, and their sincercst thanks were due to all the workers for their services. Turning to the. balance-sheet the chairman said it would have been an easier task'to have moved its adoption had they been able to -show a higher pay-out. When compared with other factories the position was not so satisfactory ns they would like to have seen, but it was duo to several causes, viz., a decreased supply of milk, higher costs of material and low make. The factory worked most economically when it was working at full capacity, and this unfortunately had not been their experience last year. At Warea there was an increase in the milk supply of 300,0001b5., but at Newall there was a decrease of 550,000 lbs. or a net decrease of 250,0001b5.’ This, of course, was due in a largo measure to the scarcity of labour owing to the drainage ol the man-power ol the district as a result of tho war. He thought that, considering so many of tho young men had been called away, they'had done very well in regard to production. So far as the creamery was concerned, suppliers were coming buck, and ho felt sure that they would very soon roach their old figures if they did not actually exceed them. The working expenses had increased verv considerably. Fuel had gone up 40 per cent., salt 125 per cent., crates 42 per cent., stores 109 per cent., and salaries and wages 4 per cent. Cartage also .showed a slight increase, but it included the cartage of a certain amount of the previous year’s make of cheese. The total expenses, including depreciation, had increased from £4908 to £5 / 38, Tin increase of £ll3O, or 24 per cent, which was sufficient to pay an extra Id. In 1914 the working expenses amounted to £3494, equal to 2.56 d per pound of butter fat. In 1919 it rose to 5.41 d, or nearly double. Since 1914 wages had increased from £922 to £1430. crates had doubled, rennet had increased by about 400 per cent., and insurance by 260 per cent. At tho same time they had to remember that whilst for 1914 they received a> pay-out of Is Id, this year tho pay-out was Is lOd. The reserve fund had increased from £312 to £739. Tho assets of tho Company showed that in 1914 the land, building and plant were valued at £4622 on a paid-up capital of £3951, whilst in 1919 the land, buildings and plant had been written down to £4285, despite the installation of new pasteurisers at the factory and creamery, and a new residence at the latter, whilst the .share capital bad increased to £-4487. The make of cheese, Air. Rumball intimated, had been very low indeed at- both factories. He could not understand why this was so. There had been a groat variation in the make for some years hut they were steadily going back notwithstanding the fact that, the average tost had been very consistent. In fact, it had hardly varied at all and yet the make bad been up and down all the time. When he said that a difference of one point |a

this respect represented Id in the payout they would realise the. difference it meant to the Company. (Personally his opinion was that paying out on a hot-ter-fat basis was not the correct one. The tests wore quite correct, he, had no doubt whatever about that, but very often other solids were not there, and it seemed to him the milk should be tested also for solids. In regard to whey butter it seemed to him they were not making the quantity they should be, coinparing it with other companies and even with previous year's operations of their own factory. In 1914 for instance they made ](i,Oriolbs of whey bin ter ,whereas last year they only made 7971, or barely half. Tile price of whey butter bad been increased from Is ’id to Is sd. Dealing with the Company's interests in tlu> I’reducers’ Freezing 'Work’s .Mr. I’uinhall said (hey had a considerable amount of money in the works, but he looked upon this as a very sound investment. In tills connection he mentioned that storage charges had been heavy, but against this they had claims against the Imperial Government for .£299 inr the previous year and a similar amount, or probably a little more, for the last year. Mr. liumball also touched upon the Company’s interests in connection with the Kgmont Box Company, its holding of shares, he said, having increased very consicleralily during the last few years, and there would be a furlher substantial increase in their holding in the Box Company consequent nu the purchase of an additional block of bush. In so far as the Box Company was concerned, he said it was in a' different position to the freezing ivories because the time must come when the timber would he cm out and the shares might not he worth then what they wore today. lie therefore suggested lhaf It would hi' good business on their pari to begin to write down the value of those milk shares. In respect to dried milk and sugar of milk inquiries bad been made into these matters, but they had decided not to contribute anything towards the expense ol sending a delegation abroad because the plant, was expensive and the cost, of fuel muT. a lormidable hem that it was considered impracticable for a factory situated as they were to take up the matter. Mr. Cm belt seconded the motion. During a short discus-Mil which ensiled Mr. Corbett :r-i-:-'d if the pay-out was the lowe.-t in the di-timt. Mr. Daily (.mcretaryi: 1 know of one lueiory which paid Is 9d. Mr. Corbett: I know of one or two flaying I- ] ! : |d. Tile report was adopted. TIIK DIRECT!IRATE. There were three vacancies on the directorate, two caused by the retirement of Messrs. C. WelN and C. S, Muir in rotation, both of whom offered themselves for re-election, and one caused by the resignation of Mr. Clothier, who was leaving the district. There were seven nominations'. .Messrs, Wells. Corbett, .Muir, Donald. Darker, ( ehhvell, Julian. All election re-ulted ill Messrs, Muir, Weils and Julian being declared elected. .Mr. C. T. Mills was 1 c-clecteci auditor at a fee of t'7 7s. GENERAL. A discussion arose with reference to the payment of interest on share capital. Motions that interest at. the rate of 4 per cent.. 1 per cent., and 21 per cent, respectively were all nega t ived, the matter eventually being left in the hands of t he directors. It was daeided to increase (he directors’ remuneration from As to Ids per meeting. A hearty vote of thank’- was accorded to Air. Clothier, who had resigned from the directorate, for his past services in the iiuere-ls of the company, FLKCTFOX (IF CHAIRMAN. At a subsequent meeting of directors Mr. It uni ha! 1 was ic-eleeted chairman.