Greytown Butler and Cheese Factory.

Wairarapa Standard, Volume XX, Issue 2094, 20 July 1887, Page 2

Greytown Butler and Cheese Factory.

ANNUAL MEETING OF SHAREHOLDERS,

The annual meeting at the Oreytown Batter and Cheese Factory Company was held on Monday night, Mr W 0 Buchanan pte» siding. Alter the minutes of last annual meeting were confirmed, the Chairman read tho following Report " Tour Directors In submitting the Balance Sheet lot the year ending 30th June, 1887, regret that the season’s operations showed a loss of LlB3 7s 6d. Of this amount the loss on pigs has been LSI Os Sd, and on the working of the cheese account L 62 7s Id. Had the whey been sold this season at the same rate as last, viz., Is per 100 gallons, this latter loss would have been reduced by ABB 111 Sd. Prior to the commencement of the season tenders were ealled for the whey and every effort made to dispose of same, but unsuccessfully, and in order to utilise M, your Directors were reluctantly compelled to purchase pigs, but owing to the bad state of the pig market at the olose of the season, very nnremooerative prices ware realised for them, resulting as has been previously slated in a net loss - ,61 Os 6d in addition to the loss of the whey. During the six months the factory was at work 81,224 gallons of milk were received, as against 61,081 gallons received last season, and 40 tons Ocwt 2qrs and Slbs of cheese was made as against 25 tons 7owt Oqts and Slbs made last year. During tbc first three mouths 3(d per gallon war paid for the milk to local suppliers, and R}d to Matarawa settlers, bnt the Directors find ing that the cheese market was likely to role at a low figure, It was decided on the Bth January, to reduce the price to 3Jd. Bad the latter price been paid all througn, a saving of L 65 Is 6d would have been effected. In January last Mr Coleman Phillips tendered bis resignation as a Director, and Mr J D Heagerty was elected in his stead. This meeting wilt be ealled open to elect three directors, in lien of Messrs W O Buchanan and J D Heagerty, who retire by rotation, the latter gentleman having taken the place of Mr Phillips, whose torn it woald now have been to retire, and Mr Kimberley, who retires by disqualification. The two former gentlemen are however eligible for re-election. Two Auditors will also have to be elected, and their fees fixed.’’ The Chairman said—All the shareholders will join in the regret expressed by the directors at the absence of any dividend. One of the principal causes of loss was io the keeping of pigs ; every effort was made to dispose of the whey and have nothing to do with pigs, In order that full attention be given to the manufacture of cheese. Failing to sell the whey they had purchased pigs which proved a drug in the market when they came to be sold. Borne persons thought the directors should have turned the pips into bacon but they had no conveniens. a for this. The uoxt cause of loss was the low price of cheese. The market was simply glutted and every dairy factory had large quantities on hand. Still another cause was the character of the past season ; the intense heat ripened the cheese too quickly and some loss h„d been experienced in common with other factories on'this account. 'i,.tn there was the inadequacy of the present capital of £7OO which was too small to carry on operations successfully. There was t’ refoxe an overdraft which made matters

v. cse. The capital ”’ r ia too small and until this drawback was done away with the company could have no successful career. Had they £ISOO a return ol 6 or 6 per cent could be shown. Unless shareholders and milk suppliers subscribed that amount there was no probability ol working successfully. They had in this factory an industry to which they could open their shoulders above any other In New Zealand. Carriaga to the old country was becoming much cheaper and better and in a few years there would be a large trade in cheese and butter. Looking even to their limited operations the Factory had circulated £I6OO among tha dairy farmere of the district and therefore the value ri too institution Was evident though there was no dividend to declare. A call would be made upon the shareholders to raise more capital and if this was responded to a different aspect of affairs would soon be manifest. As an evidence of my strong faith in this industry (said the Chairman) 1 have sent home half a ton of cheese on my own account to England and if landed in good condition it will fetch the best price. 1 move the adoption ol the report. Dr Spr““ ory onded.

Id answer to Mr Loaaby the Chairman said tbat a small quantity of cheese bad been sold at fid at beginning of season—some at fid later on and some damaged at 8d per lb. At present there were eight tons of first-elass quality in the Factory valued at 4d. Mr Coleman Phillips said—The report does nor state tbat while selling cheese as low as 3d the directors have been paying S(d and SJd for milk. All along I knew what it would come to and my resignation was because I wanted a lower price given for milk. I bold yon responsible, Mr Chairman, for this loss to the Company. Ton are either responsible yonrself or the gentlemen who associated with yon. 1 will refer especially to Mr Cuff, who requested me to resignt I took great interest in the formation of this company, but Mr Buchanan stepped over my head and took the management ont of my hands. Mr Cuff followed and they have made a mess of it. 1 was also dissatisfied with the way the milk suppliers supported the factory—they tried to the ntmost to get ths last farthing lot their milk (No, no.) I told yon that you could only expect 3d a gallon with safety. Mr Cuff drew ont a report stating that it should be 4Jd (Mr Cnfl—No.) It was so and can be referred to. At the meeting when 3Jd was fixed 1 said it was risky. Mr HoU lard said he could not biing his milk unless be got a certain price. These dairy farmers most refund the L6O loss (laughter.) In Featherston they are content with 3d. In the South Island farmers have taken 2jd- 1 pannot remember the Factory—l think it was Ashburton. This Factory in Qreytown is almost at an end. I always took a great interest in it, In January last there was a meeting of directors and a letter was received from me resigning as a director. 1 plain why Mr Cuff was elected a m.-ect' three or four months before that. Uo the chair—uo one asked him to do r.o. i was then asked to sign another goar-'i.'.to m the Bank for milk, and objected. Mr °al'f said if you object you had better resign ami, Mr Br n hauan, you suppoited Mr ’Cull. In all local matters you do not fee the j ~■.Mples upon which X act, I do not know v.-ivit, i„ to be done. 1 wish to come fi» ward again and try to get the Company out o( this mess. M> Cuff -1 will explain. As far as I i tuoer, at the beginning o. lie season 34.-, was fixed for 1m.,„ people arm 3|d tor the Matarawa per, la—this latter was because of railway freight. On Bth Jatuiaiy the first payment bad to be arranged for and the directors agreed to guarantee— the Bank to ray the cash as promised. It w; aid have been breaking faith with the milk suppliers had we not done c,o. In the last quarter of the previous year a guarantee was given and even then Mr Phillips objected. In this matter of Bth January be said the fanners could wait until the cheese was sold. 1 said we bad promised and must keep our promise to them, and if he did not agree with the diiectors and what they were doing he should rtpi rt n, He sat down snd wrote out hie resignation, Thiiis the correct vision. I was sorry be resigned, but it was simply because ue old not work with toe directors.

Mr Phillips—l did say that the milk suppliers should wait until we got a return fur ihe cheese ; 1 was opposed to the finano-al policy of the directors ; I refused the guarantee.

The Chairman—Mr Phillips has referred to myself in terms which I Spu at a lose to understand. He said " I am either responsible or t: a a l , man I associated with myself." Gentlemen, 1 thought it waa you who appointed the directors. "Mr Buchanan stepped over my head and took the management out of my ha.ds.” I aimply took the neitiou the sta.> uo»aeis end the directors ■ »ve me, I fat' w see the point these re-

marks. They sfem to mean this —croaking toil complaining and blaming people. The diiuctors u> Five 3Jd to 3Jd. Had the price < ( u. ‘ up there would have been no diilVOrv ;n - uthis. The position was the* v. iif o " . came to sell we found we had paid too nncu. >i v.-i»h • > disclaim any ides of active."! i :m to .Mr Phiiiipe or any other gentleman—oc is mistaken—there is no such feeling in existence. lam sorry he resigned and I was glad to see Mr Cuff come la as a bosineu man, and the Company has bad sabetantial benefit from him. Mr Phillips is dissatisfied with the directors -he is dissatisfied with the farmer. Bo he’s satisfied with himself.

Mr Phillips—l am satisfied in resigning. The Chairman -I am glad be has a crumb of satisfaction in that. From the first I have taken an interest in this affair equally with Mr Phillips. I claim no Immunity from mistakes, bat I have tried to da my best. Mr Phillips should be charitable towards ns. It he will let bygones be bygones and forget that we have all made mistakes and help n« to get what we want we shall all be pleased. The Beport and Balance Sheet was adopted. Mr Loaaby asked bow it was proposed to increase the capital of the Company. The Chaiiman—We want every shilling of LISOO ; we ought to get it and if we go the right way to work I think we can. The Wellington Meat Freezing Co. was in a similar position recently ; L 16.000 was wanted and it wae raised and more besides. 1 will pin my faith to dairy factories, but we must increase the capital and it rests with business men and dairy farmer* to raise LBOO additional.

Mr Phillips suggested that the dairy farmers should refund the M2. Mr Udy. ae one of the number decidedly objected, but he believed that 3d would bars been takes, and this was the snm he himself bod suggested. Messrs Wyett and Skeet wet* elected auditors for ensuing year. Maseru Buchanan, Phillips and Hesgerty were elected directors for ensuing 12 months. Mr Loasby proposed that in the event of the extra capital not being raised and the market being still overstocked with cheese sod lb* milk producers not being inclined to take a lower price lor this milk, that the Factory be closed lor a season, as tbsy could not produce cheese profitably at the present price given for milk. Mr Phillips ascended, saying that be believed there woald be snob a quantity of produce that prices would be lower. Mr Cameron proposed as an amendment •• That the Company make batter as well ae cheese.”

Mr W Udy seconded. A general conversation ensued and it was ultimately resolved to withdraw the resolution and amendment leaving the matter to the directors.

A vote of thanks to the directors tor past services and to the chairman concluded the meeting.