PROGRESSIVE DAIRYING.

Waikato Times, Volume 104, Issue 17481, 15 August 1928, Page 9

PROGRESSIVE DAIRYING.

MORRINSVILLE COMPANY. SUPPLIERS' ANNUAL MEETING. STRONG FINANCIAL POSITION. There was a fair attendance of suppliers at the annual meeting of the Morrinsville Co-operative Dairy Co-, Ltd., held in Morrinsville yesterday. The acting-chairman, Mr F. W. Seifert, presided. Directors present were Messrs J. Brown, F. West, J. H- Gaddes, and B. J. Pirrit. The report and balance sheet, which have been published \a the Waikato Times, were adopted. Reviewing the operations of the season, the chairman said he was pleased to see the large attendance, which was a further indication of progress- It was a remarkable thing that although the factory had been in existence six years there had been no serious differences of opinion. Instead there had been co-operation on both sides- The company had made provision for an increased output, and this had been attained in spite of a dry season. If the present season was a normal one he was sure the output would be considerably in advance of last season's. Mr J. E. Leeson, chairman of directors, is in England on holiday. Although paying his own expenses, Mr Leeson's correspondence had made it clear that he had been making useful investigations on behalf of the company. The services had been lost of Mr Tompkins, a director for many years. He had been a very active member and his resignation, which was unavoidable, would be regretted generally. Advances had been made in all lines of the industry. Previously the grade had only been in the vicinity of 91 points, but a,t present it had advanced two points. He attributed this to the manager, who had not only pushed up the grade but also had decreased the cost of production. The pay-out was quite satisfactory. The advance payment was a shade over Is 4d per lb and Jd and Id bonuses had been paid during the season.

Record Pay-out. 3 "This company has made one of the • biggest pay-outs in the province," he > continued. "This pay-out has been " made quickly during the winter months when farmers want it most- Low cost has been chiefly responsible." (Applause.) The chairman, continuing, said the increase over last season was 119 tons. The directors intended to deduct \A per lb for share calls instead of \d. Thus the cash payment would be increased for the following season. Dealing with the financial position, the chairman stated that there were few companies in the country operating on the same basis. There were 21,189 shares allotted up to May 31. Since this date another 4500 had been allotted. Large Balance of Capital. I The company' had paid for every- • thing in connection with factory expenses and there was a large balance 1 of capital. The expenditure on the , factory to cope with the increased outt put would be small until 1500 tons i was reached. There would be a vast i amount of uncalled capital to the extent of about £13,000 with no liabili- • ties. It might be possible to devise ; some scheme for disbursing this to the advantage of shareholders, but the fate of this depended on them entirely. However, prudence was required in deciding any future policy. The company could lose this amount and there would be no difference to the pay-out- Shares were alloted on every 701 b of butterfat- Had the company been extravagant it would have been possible to absorb this. The assets of the company given in the balance-sheet were set forth clearly. By holding shares in the Freezing Company a rebate on the storage was obtained. The factory at present was capable of manufacturing 1500 tons of butter. If the output was 200 tons more each year the only additional capital required would be £IOOO for another churn. After this estimate there would be £3OOO or £4OOO spread over the next few years for a freezer, and possibly another storage room. The extraordinary reduction in the cost of production was also commented on by the chairman. Few factories in New Zealand had a lower expense. The manager stated that still further reductions could be made, so the payouts were most promising for the next few years. (Applause.) The trading account was now about £IOOO a month. The objective was to sell the goods at the lowest possible price. Finance for Farmers. Referring to the Rural Intermediate Credits scheme, the chairman said the benefits had been useful- The total ' liability of the Morrinsville Company j was about £SOO. The scheme, he believed, was a genuine attempt by the I Government to assist the farmers. It j was a sound system for allowing farmers to secure loans for short terms | on various securities. With small I amounts, however, it was better for the dairy company to advance the moneys. The company could act quicker than the board in this respect, but the board was carrying on successfully with larger 'Joans. Relations with Control Board. The chairman said in the past there had been a good deal of trouble with the Dairy Produce Control Board. The directors had been opposed to certain negotiations, but relations were now cordial. Jt was pleasing to know that the new chairman, Mr W. lorns, had lifted the regulations regarding the supplying of information regarding the factory and its output. Mr lorns had visited the office some time ago and he (the chairman) believed they had a satisfactory board chairman in him. (Hear, hear.) It was apparent that the board was trying to get the companies to give the information voluntarily. These particulars were useful, as it enabled the company to secure comparisons of the prices- of other companies. However, he was glad the compulsory clauses had been deleted. (Applause.) Cream cartage had been carried on at reduced expense. It was now 3-8 d per lb and it did not seem possible to handle cream at a lower cost. If the cost of collection could be kept at less than id per lb there would he nothing to worry about. Mr Seifert stated that personally he had a large output, so that a reduction of Id per lb would affect him considerably. He was expecting to put in between 30,0001 b and 40,0001 b of butterfat this season, and this enabled him to do his best for the company. (Applause.) When the prices were low last year, he continued, the produce had been taken off the London market. Much of the butter which would have been'

sold at a low price had been disposed o? at a larger profit- The manager lad been able to gain a second prize at the Auckland Winter Show for scloct.on of butter, a creditable performance. (Applause.) Sprrit of Optimism. "I am hopeful that the next season will be first-class," said the chairman. '■There is a spirit of optimism abroad. London visitors told us that the market is in a sound position and the consumption is increasing each year The dairying industry is past the worst stage and you can look forward to very payable prices for butter in the future." (Applause.) Mr J- H Gaddes, a director, in seconding a motion that the report bo adopted, stated that the offer for butter received by the company was the best in the Dominion. He paid a glowing tribute to the work of Mr A M. Stirling ttie manager, who had reduced the 'cost of produce f.o.b. from 2-6 to 1 43 Mr Stirling had climbed to the | top of the ladder and was still willing to "take his coat off." The staff had also co-operated faithfully. Mr Faulkner, the secretary, had made few mistakes and his services were fully appreciated. In 1923 there were 'JO suppliers, and now there were over ""commenting on the trading department Mr Gaddes urged all suppliers to patronise this. After years of agitation the cost of manure had been placed on the same basis as allowed for merchants. Mr W. Neils asked if it would be ' possible to alter the basis of share . capital. Mr Scifcrt replied that the agree- ; ment made by the original shareholders made this difficult. The problem was a complicated one, as the | allotment to original shareholders would have to be altered, it was certainly not proposed that the new share-- | holders should get better treatment. The shares were allotted over a fouryear period. Some change would have to be made. The directors had evolved no policy on this subject, but.it was recognised the matter would have to bo approached carefully. All "dry" shareholders had been resumed. Mr Neils expressed the opinion that the reduction of the cost of manufac- ', ture was a matter for congratulation. Suppliers had little to concern them. Mr F. G. Kennedy announced that he had persuaded Mr Seifert to accept ; nomination for the directorate. It ' would be most regrettable if Mr Seifert renounced his services as a director. Auditor's Remuneration. Mr Pirrit considered the auditor, Mr £,

T. J. Ryan, should have an increased | remuneration. The work had grown j and he suggested the auditor should I receive £75 a year. Varied suggestions were made. A motion fixing the auditor's fee at £OO was carried. It was stated that 20 of the company's shareholders had resolved to form a rural credits association- The apportionment of £25 as the liability for each member from the contingent reserve fund was confirmed. A recommendation that the directors' honorarium be increased from £l7O to £220 and that the extra £SO be given to the chairman was adopted. A motion that 5J per cent, be the dividend on paid-up shares was carried. Manager's Grading Figures. * Addressing the meeting Mr Sterling said it was a matter for congratulation that the season was finished with an. average grade of 03 points. The lowest from September to March was 92 and the highest 95J. This large increase in fineness meant that the company had gained £2700 over the whole period. He had been responsible for reducing the cost .39, or approximately 4-iOd per lb. The percentage of finest in butter was 90.53 per cent- and 9.12 first grade. The plant was in good order, although minor improvements were necessary, j Regarding the cooling of cream, this should be done at once- All suppliers should use coolers. The indications-for the season were very promising, he added. Last July and August 88 tons, or one-tenth of the output, had been produced. This | year lie calculated that 125 tons would j be the total for the same period, if this was going to be one-tenth of the total for the season, he could predict a total general output for the season of well over 1200 tons. (Applause.) By means of graphs the secretary j showed the decrease in costs in all i departments. The cost per ton to f.o.bhad been reduced from £23 10s to £l3 10s. (Applause.) Mr Wcin said lie was of the opinion that the cream should be collected earlier and longer. Mr. Sterling replied that as the'cows came in early the cream-carts would be run longer at the end of the season. It was a recommendation to which the management would give tentionA hearty vote of thanks to the staff for its services during the year was passed with acclamation. Election of Directors. Mr Seifert, in offering himself for re-election, said two other present directors and himself were responsible lor urging the erection -of the present

factory. He could not understand why i a centre like Morrins\V*o had never 1 had a factory before. Since it commenced operations the company had been as successful as any in the Wai- ' kalo. He could forecast that it would- . become the foremost in the Dominion, i The election of directors will .take . place by postal ballot during the next - week. Nominations are: Messrs J. Brown, F. C. Kennedy, F. W. Seifert, and S. R. Soley. The meeting closed with votes'of , thanks to the chair. A CHALLENGE ACCEPTED. Recently the following letter was received. It starts off like a kick, but —well, read it for yourself: ] Barlow Bros., Christchurch. I Dear Sirs, ! I have just bought a half pound tin of Edgeworth tobacco and I notice the card in it inviting any complaints regarding irregularity. I have been a frequent user of this perfect tobacco, usually buying a pound at a time, and have never found any defects so far. It is the best tobacco, in my humble opinion, for the price. j Think you ought to alter the name o'f "Edgcwortlf" to "All Round Worth," for it is very uniform in -quality, | Yours very truly, Harry Thurnall.