GISBORNE SHEEPFARMERS’ FORZON MEAT CO. LTD.

Gisborne Times, Volume XXVII, Issue 2671, 29 November 1909, Page 2

GISBORNE SHEEPFARMERS’ FORZON MEAT CO. LTD.

ANNUAL MEETING

The eighth annua] meeting of the Gisborne She-epf armors' i rojsen Mea Co., Ltd., was held in the l'armers Club rooms on Saturday morning. Ail. 0 J\ . deLautour, Chairman oi Directors, presided, and there was an attendance of 35 shareholders. In moving the adoption of tne report and balance-sheet (previously published) the Chairman said. ;i The balance-sheet evidences a malted increase in the value of the company’s assets. •Commencing in with a Subscription of only £lo,ooU, gradually increased to £23,493 10s, and without uncalled capital in its earlier history, it has-been necessary in order to build up tlie works and attain nuan cial stability to accumulate proh s. That this lias been possible, m the face of active competition throughout the company’s history and a large distribution of profits in each year to shaieholders, is most satisfactory. - “The total subscribed capital to date is £23.498 10s. In addition bonus shares have been created and given to original subscribers to the cash va.ue of £18,213, making a total capital ot £41,711 10s. The capital stands, as <v lidbilitv at £41,711 I.os, ot which £lB,213 has been taken out ot earnings and returned to shareholders. Consicleiing the value of assets, and allowing tor all other liabilities, inclusive of mortgage balance, insurance funds, leaseho.d sinking fund, and sundry creditors, your subscribed and bonus capital was at the end of the year covered t» the value ot £80,761. That is to say you had nearly £3 8s 6d value for every £1 actually subscribed, and nearlj £2 for every £1 of original and bonus stock bold, lhe profit of the year is, however, to be reduced by the sum of £6143 5s 2d, payable, if you approve it, cn the first of December. The sum of £2513 3s lOu concessions to shareholders, which is mentioned ill the report, has not to lie considered. This is a rebate upon freezing charges, and lias been taken into account in the cost of the years operations. . “J.t is not at first quite apparent what has become of the year’s receipts. A short table will perhaps help you to understand this. The monies received during the year are: Accretions to permanent funds, £B9S‘os sd; the balance of debenture monies, £2000; profit for the year, £28,637 15s 4d; total, £31,585. The monies accounted for are: In discharge. of liabilities —Bank overdraft, £7664 5s 7cl; sundry creditors-, £IOB9 17s 7d; dividend and bonus, 1908, £2364 15s lid; total. £ll,llß 19s Id. Increase of liquid assets: Bank credit balance, £5247 ISs lid; sundry debtors and bills £444 19s; consignments, £SOBI 7s; stocks and materials, £2371 7s sd; insurance premiums, £627 18s 4d; total, £13,773 10s Sd. Increase of fixed assets: Buildings and leaseholds, £lBOl 1-ls 4d; freeholds, £32 10s : works, machinery and plant, £3576 10s sd; lightering and carting plant, £llO7 7s 6d; office furniture, £lls 3s 9d; total, £6693 6s. Grand total, £31,585 1.5 s 9d. “It may be asked, was so large an accumulation of profit necessary ? 1 thirds it was. Works as a going concern were purchased upon borrowed money to the extent of £IO,OOO. These works had a nominal-capacity ui> to 800 sheep per clay. In 1909 you had to provide for, and have provided for, an output of 4000 sheep per day, and for a continuous run for at least thirty clays of from 3000 to 4000 sheep per day. Plant and buildings now stand at £62,231 11s lOd, after writing down to the extent of £5727 off plant, and providing full sinking fund for the leasehold. The same plant and suitable buildings cn one uniform plan could not be replaced for less than £55,000 To rely upon insurance only to make good a total loss is very unsafe finance. There are risks known to such works other than fire. A reserve of at least £20,000 is a necessity to guard against all the contingent risks of loss. This year we have for lhe second time a nominal reserve of that amount, but the company should not bo induced to depart from the conservative policy the directors have steadily followed until wholly clear of debt, and with a substantial cash reserve in hand supported by independent investments. “I desire to point out that while the year’s profits in the aggregate are larger than we have been accustomed to they are- made up of profits made in every branch of the company’s business. In no case can these be considered abnormal, taking into consideration the very large amount of stock treated and the business done. “I cannot emphasise too strongly the great strain to which the general manager and engineer were exposed during a large portion of the year. While a large season had been expected ami was provided for, ho one had predicted the very great increase in the numbers of stock arriving at the works, which much exceeded all estimates and even the actual bookings, and which at one time almost made it necessary to return the stock. While the factory will do all it can to meet the requirements of the farmers, it must- insist that bookings should as far as possible be adhered’ to, and in no case be exceeded. Owners who send down stock that are not booked must not in the future be surprised if, in justice to others, such stock are refused admission. “The extraordinary pressure of the season brought out some weaknesses, which have since been remedied. The killing floor lias been extended; th© beef house lias been enlarged and brought into line with what has been preferred under the most modern conditions in America and New Zealand. The receiving paddocks have been more minutely divided for the more convenient holding of small lots, and to minimise the risk of mobs getting mixed. Better sanitary appliances have also been installed for the regulation of fumes and to avoid inconvenience from the treatment of offal. “White the company cannot be responsible for the condition in which stock too often are delivered' to the

paddocks, it is doing ail that can be done to prevent loss from bone taint and blemishes.. There is great room for a closer supervision by owners of the droving of the stock, particularly of cattle. So far as observation goes, cases of bone taint and rejections can often be traced to over-driving, long distances travelled, the high temperature when travelling, the class, bleed, and condition of stock, and sometimes to the unpardonable mixing of sexes in one raob on the station and on the road. “To meet the reduced prices farmers are receiving for their stock, it is proposed this year to reduce the minimum of stock supplied,'entitling the shareholders 1 to concessions, from 2500 to 1500, and the second grade from 3500 to 3000. These concessions have been given since 1905, and are rebates upon the consolidated freezing rate, rising in proportion to the quantities put through. 1 “The profits of the company depend almost entirely upon the volume of business. The rebates are a reward to shareholders who adhere to the company, and arc a substantia,£ encouragement to buyers, whose operations are so valuable to many of. the shareholders. The table has so far not varied, and lias been: To shareholders, 2500 or over, .1.1- per cent; ditto, 3500 or over, 2i per cent; ditto, 5000 or over, 5 per cent. 'To non-share holders: 2500 or over, Lj per cent; ditto, 10,000 or over, 2 per cent; ditto, 1.2,500 or ever, 5 per cent. The new table to shareholders only, will now be: 1500 or over, 14 per cent; 3000 or over, 21 per ceiu; 5000 or over, 5 per cent. “Gisborne winter rates for:- freezing have for some time been lower than the rates charged at Canterbury or Wellington. These low rates will remain unaltered. For summer rates the company has now adopted the lowest summer rates prevailing in the Dominion, and allows off those raW's to all persons 21 per cent. “Taking last season’s output as an illustration, the reduction for the current year will aggregate, as compared with the best rates- prevailing for the same output as any other works:— Reduction of rates, winter and summer ••• £0493 6 8 Special concessions for quantities ... ••• 2513 3 10 £9006 10 6 “The reduction in rate will work out, as compared with all oilier factories, at a little over 3d per sheep, and the total reductions at a little over 5d per sheep. These reductions apply to ah persons freezing at Haiti works, whether shareholders or not, and should be borne in mind by larin’ers when con - sidering how best to market their fat stock. “A special effort is being made this year to improve the treatment of sslipe wool, and to eliminate all liino before the staple of the wool is injured. The result from the new machine special v designed and installed by the engineer to do this is a much cleaner and softer wool, free from lime. “The general manager and the works engineer left nothing, undone, to deal with the difficulties of tire pressure of the summer sensoii. Efficiency and economy in a high degree have reduced cost of fuel and la,bor —the reduction in cost of fuel alone being nearly 50 pur cent as compared with the season of 1908. “The lighter plant has been strengthened, and is in good . order. The profit results of the year’s working of this department are quite satisfactory, and prove efficiency of management and care. ; “It is difficult to see what lhe current year is to result in. Tho reductions in charges and the large concessions to he allowed will preclude a large profit. A weak market for meat and heavy shipments and export last year must tell on the output for 1910, and a second record season is not to bo expected. “It is useless to attempt to foretell the future. Works to the north and probably later to the south must in time limit the producing area available to Gisborne factories. On the other hand, the extension of tho railway and the inevitable and much-needed private or public feeders to that railway will add large areas of good pastoral country, which will be most cheaply served by tho works at Gisborne. Friendly combination among all freezing companies may and should effect beneficial n'sults as regards fair regulation of freights and insurance, and to some extent should, aid the opening of new markets and the regulation of those now available to New Zealand. Personally, I have no great faith in the possibility of regulating the London market by withholding supplies at this end. While such regulation might be effective if'the colonial product were pooled upon a high grade and might occasionally suit holders of heavy stocks jn London, I do not see how educating Loudon to fill up short supplies from New Zealand by larger purchases of Argentine, Australian, or Dutch mutton can help the New Zealand former. I. hope to have an open mind, and am willing to be proved wrong. “I agree, however, that much good could be done by effective combined action at the port of arrival to ?ee that the New Zealand farmer gets failtreatment in the marketing of his stock and the- English customer gets what lie wants and pays for—New Zealand meat. I should favor immediate action by such companies as would, work together. Probably three or four such companies could he found. That would do for a start. The Tax upon such companies required to keep a live agency in London, and possibly even -a New Zealand meat market, would he amply repaid by the, direct and indirect gains —at least to the farmers. We nave -been waiting too long for the Government to give a lead. The time is ripe for action. The- Government should give its v-alued aid. If it will not, the farmers had better recognise facts and act. Such action is the surest way of obtaining State aid.” The Chairman, after the conclusion of his address, then moved:—“That the report and balance-sheet be adopted. That out of the year’s profits available for distribution a dividend of 6 per cent he appropriated to registered owners of ordinary shares, and of 4 per cent to

registered owners'of lion us shares. That a bonus of 3d per sheep be granted to shareholders qualified in terms of article 9, the produce of such shareholder supplied for freezing and export to the works —one cattle beast to count as 12 shoe]), and two lambs as one slieep. That a bonus N of Id per adult sheep be granted to qualified shareholders , for wool. That the dividend and bonus be payable at the offices of the company on and after tho first dav of December, 1909.” Mr. W. D. Lysnar seconded the motion. He thought that the slmrehold? ers must agree that as far -as they were producers' they had a lot to he thankful for. He entirely endorsed the-chairman’s remarks regarding the making of “■arrangements to protect their interests at the other end. It had been said in the press that tho value of tho New Zealand meat at Home last year was £2,500,000 less than the previous year. The time was past ripe when they as producers should take action, and the Minister had said to him that if proper representations were made to the Government something would he done in tho matter. If the companies would not meet and act in the matter, it only remained for the farmers to wake up and take action. The conflicting interests at Home made it necessary that the New Zealand producers should show a united frontSomething was wrong when*every consignment that left the Dominion was marked “damaged,” and claims made against it when it reached London. They should he up and doing to protect their rights. The rate of insurance had increased during the last throe years, and this year the premium had been again raised, with three exceptions. . They Had not raised their voices and a tag was being placed cn the ]>o!icies by the insurance companies which made them practically useless to them as farmers. There was a double claim in almost every instance, lie had been informed. Mr. Bright: Who is your informant? Mr. Lysnar: The Hon. Thos. Mackenzie is" rny informant, and a reliable one. I. think.

Mr. Bright: Well, it’s not true anyway. Continuing, Mr. Lysnar said that as a remedy to the present position, the Hon. T. Mackenzie had suggested the following three points:—(l) Concentration of exports at a depot in London. (2) To regulate shipments; and (3) grade here to a proper uniform standard, lie (Mr. Lysnar) regretted that the mercantile community uid pot give the farmers whole-hearted assistance in the .matter. Proceeding. Mr'. Lysnar urged the establishment of a depot for New Zealand meat in London, when, lie claimed, damaged shipments would. cease. It was not for them to take any initial steps, but he trusted that the farmers throughout the Dominion would join together in the matter, and get Government assistance. Let- them combine, and they would succeed, but they would have to do it themselves, without the assistance of commercial men. Mr Bright said there was no wa:rant at all for tiie statement that the farmers had not the support and goodwill of the commercial men. The statements. regarding damaged meat were not altogether correct, and.the agents in London were taking steps to see that the proper persons paid any such claim. They must not entirely blame the other end, as there were instances where this end was responsible for the damage. Ho concluded by assuring the ineeting of the hearty co-operation of tlie commercial community. The motion on being put to the meeting was carried unanimously. Messrs F. B. Barker, J. Clark, and E. M. Hutchinson ivew re-elected directors, and Messrs Coleman and the firm of Messrs Watkins, Hull, and Wheeler were appointed auditors at the same remuneration as last year. In accordance with notice, Mr. A indent Barker moved—“ That it be an instruction to the directors to take immediate.steps to procure the amendment of tlie articles of association, so that "shareholders supplying produce to the works shall include, for the purpose of division of profits in any year, all slieepfarmers who have fully subscribed their quota under article 9 as to all stock supplied from such sheepfarmers’ farms, irrespective of whether the stock so supplied are sent direct to the works by them or by a purchaser from them not being also a shareholder who lias fuliv subscribed his quota.” Mr. H. -Kenway seconded the motion. . , Some discussion followed, and eventually the motion was agreed to. Mr. J. 'IV. Bright moved that—-“ The hearty thanks of the shareholders be accorded the general manager, works engineer, marine superintendent, and the company’s staff for the able services ’rendered during the year, and to which was due in a great measure such a substantially good year. He added the general manager, Mr. \Y . 1* • Cedervvall, must have had an exceedingly difficult time, for, not only had he labor difficulties staring him m the face, but a remarkably busy season at the works, and it was greatly to jus credit that he had been able to bring about such a satisfactory issue as the balance-sheet disclosed. ■ •* The motion was seconded by Mr. J. B Kells and carried unanimously. Air.' Cederwall suitably replied on behalf of himself and those mentioned in the resolution. A vote of thanks to the chairman brought the meeting to a- conclusion.