RAHOTU DAIRY COMPANY.

Taranaki Herald, Volume LXVIII, Issue 16805, 31 July 1920, Page 9

RAHOTU DAIRY COMPANY.

ANNUAL MEETING. Tho 13th annual meeting of the Raliotu Dairy Company was held at tho factory on Thursday, when Mr. YV. C. Green chairman of directors, presided over an attendance of about 30 shareholders. ANNUAL REPORT. Tho annual report stated: On closing tho books for tho year there is (after providing £2lB 4s 8d for depreciation or tho company’s factory and plant, and £173 IV s 8d for interest on shares), a credit balance of £7301 12s on profit and loss account. Your directors proporo a payment at the annual meeting of 4d per lb oFTmcter-fat which will absorb £4700 17s 4d, and leave £2310 14s Bd, out of which further payments, equal to 2d per lb. (£2390 8s 8d) will be made, making a total pay-out for the year of 2s per lb. butter-fat, and leaving £ll6 6s to be carried forward or otherwise dealt with. Of this 2d per ib, one half-penny per lb. will bo paid into reserve, as resolved at tho last annual meeting. Thu lorry has satisfactorily carried out all cartage requirements. The working account for this year shows a credit of £4OO 8s sd, which has been written off the cost of tho lorry. During the year your directors have erected a new residence for tho first assistant and have had tho other assistants’ quarters renovated and improved; improvements and additions to tho factory and outbuildings have also been carried out. The following statistics for the year ended Way 31, 1920, were given::— Milk received (cheese, 7,125,4931b5; butter, 83,6721b,5,), 7,200,1fi01h5; cream received i1,262ib5.; butter-fat (cheese, 279,7901b5; butter, 35241b5.; cream whilst cheese-making 40331 bs.), 287,433 lbs.; average test 3.93; cheese made, sale weight, 746,4701b5; cheese made, per lb. butter-fat (factory weight) 2.67; butter made from starter, whey cream, 30,3421b5; butter-making, butter made 43351b5; average price received per lb. button Is 5.1 d; average price advanced per lb. butter-fat Is Gd; official average grade, whey butter, 85.76; creamery butter 91.50; cheese, 91.7. In moving tho adoption of tho report and balance-sheet the chairman said that tho very satisfactory position of the company loft very little for him to comment upon, therefore he would only refer to it briefly. He thought that shareholders would find that it compared very favourably to those of other factories of the sarno_ size and working under similar conditions. He congratulated shareholders upon the very successful season experienced. The purchase of the lorry had proved a wise stop. It had been used for tho cartage of tho company’s goods and those of shareholders, and although it was it first intended to undertake general callage, tho idea had not been carried out as it was not considered wise at tho present juncture. A new cottage had been erected for the first assistant and renovations made to the manager's house. To retain the services of good mon it was, necessary to provide them with comfortable quarters. Thev were losing two directors, fund, in placing such a large sum as ,•£IO9O to credit, the company’s position had, been substantiated in tho matter

Messrs. James and Tylce. who had sold their farms and were removing from the district. Directors had attended tho marketing scheme meeting held at Palmerston North, and after careful consideration decided not to join up with the C.YV.S. but to continue with Tooley Street as hitherto. By so doing they-found it very much easier to finance. In conclusion he would" like to congratulate the staff upon the good results of their work for the year. The company was now building up a substantial reserve fund, which now stood at £IO9O 12s Id. and shortly it would bo £1690 12s Id. The cost of fuel was much about tho same, boxes were dearer and wages were higher than at any other time. The motion, was seconded by Mr. G. R. Tyke and carried. - DISCUSSION. A shareholder said that he considered the charges of cartage by the lorry to non-shareholders were low. In reply the chairman said that the directors would go into tho matter, and if it was found to bo so, they would raise the charges. Mr. G. Gibson said that ho thought that tho total earnings of the year should be shown in the balance-sheet. Tho pay-out feu - tho year would be nearly 2s id. Regarding the reserve of bank advances, and had proved a wise policy, borne suppliers had complained that in placing such a large sum on the reserve fund a dead loss to those leaving th ecompany resulted, but in his opinion the man who sold his farm reaped the benefit, as he had only to point out tho substantial position of his factory, which, of course, was a fair criterion of the value of his farm, and a strong incentive to the intending purchaser. Certain propositions had boon made at each annual meeting, and in nearly every instance, after due consideration, had been adopted by the directors. Ho merely mentioned that to show shareholders tjhat directors were awake to the interests of suppliers. They had written off in omf year on one factory as much as some companies had on three factories, which he considered was sound business. In reply to a shareholder the chairman said that tho directors did not think it necessary to increase the share capital this year, hut if it was found necessary later on it would be done next year. ELECTION OF DIRECTORS. The election of directors resulted: Messrs. YV. C.' Green, G. Gibson (rocketed unopposed), IV. H. Butler, and G. E. C. Prosser. DIRECTORS’ FEES. When discussing tho question of directors’ fees tho chairman said that in tho past the directors had received the paltry sum of £6, which lie considered quite inadequate. They had to attend over 12 meetings a year, and atr tend to tho business of the company at all hours of tho day or night, and somo of the matters which came before them for consideration called for grave arid careful consideration. He knew that his co-directors would not speak on this subject and he would liko them to clearly understand that ho was not, speaking on his own behalf, as he did not care whether he was paid or not. Ho asked shareholders if there was a man amongst them that would like to' do the work for the remuneration voted them? Now was their chance to speak out and he would liko to hear them, as Eo intended to have his say whether it pleased them or not. It was then proposed that the directox's’ fees be raised to £l2. Mr. G. Gibson said that he was going to oppose tho proposal. There was a balance of £lls 6s to distribute, and if tho motion was carried that would absorb more than that amount. The chairman : I know he would oppose me. He’s always looking for a fight. (Laughter). Continuing, Mr. Gibson said that tho position entailed a great deal of work, but there was a certain amount of honour attached tsi it. • It was decided to raise the fees to £l2. GENERAL. Mr. Vnl Duff was elected auditor. A hearty vote of thanks was passed to tho staff and chairman by acclamation. At a subsequent meeting of directors Mr. YV. C. Green was re-eiected chairman.