WAIKIEKIE LIMESTONE.

Northern Advocate, 25 January 1922, Page 6

WAIKIEKIE LIMESTONE.

DEVELOt'MEXT PROPOifiAI.S. FARMERS' UNION" DELIBERATIONS. Before Mr Collins, chairman of the provisional directors of a new comr pnny. the North Auckland Co-opera-tivo Limestone Company, wluch_is taking over the lime deposit country near Waikiekie. was received at yesterday's meeting of the Whangarei Sub-Provincial Executive of the New Zealand Farmers' Union meeting, the point was deliberated whether the discussion with him should be in committee or not, and it was decided that it should be an open one. Mr Collins thanked the executive for the opportunity of laying the subjcct

of development of the limestone before the members, and briefly outlined

the history of the venture. He described how a- little joint stock com pany liacl worked with a small plant crushing a ton an hour. It had succeeded so well that other settlors had become interested in the venture. One otf the original twenty members of the syndicate was Mr J. C. Allen, then "bank manager at Paparoa, who had been convinced that it would be a good financial concern, and had offered to finance it. The other settlers, however. it co-operative, and it was then that Mr Collins had become connected with the project. At that time the company had the opportunity of buying a new crusher and engine for £1700, a plant which could do four tons an hour. Pending something being done with the formation of a company and they had asked tliq. bank to finance the purchase and the request had been granted. But, so confident, were they, that they asked for a specific sum for a specific time, and that hid been one of the difficulties to be surmounted. He and others had inspected the plant and had then asked the Paparoa Lime Company to consider re-formation, into n new co-ope-rative concern. A provisional directorate was appointed on a basis which clcarly set out that the concern must not be capitalistic. Shares had been restricted at first to £100 a member but, as Mr Allen had £200 invested, it was afterwards raised to that, as a limit. Also the interest had been restricted to 6 per cent, but it had been suggested later that it be raided to 8 per' cent. —the current rate

Tlie old company had led the new to understand that there would be no trouble n financing, but the new company had had set-backs.

The promoters liad tried hard to get a canvasser to "talk lime" to the settlers, but it had been difficult to get such a man, and it had been found also that some farmers did not realise the value of lime. They had raised about £2500. Finally the promoters made an arrangement with the Bank of New South "Wales, that as soon as they received their money for shares and development: they could have it transferTed from one management to another. The company law had to be taken into consideration, and circulars were sent out.

Mr Collins said he would not wail any longer for settlers who were nol men of business to push the enterprise It was not want of money that was ■wrong, as there was not a farmer wlic could not pay £10. The position to day was that 1765 shares were ready for allotment, apart from Waikiekie 01 Mangapai. Each individual must pay 2s cash per share before the venture could go ahead. He had ridden all over the country last winter and had got side of it, and he felt like dropping the whole thing. He explained how it was possible to start operations as things were now, but he wanted to get the enterprise started by interests from all parts. In one case a dairy company had written asking for ten shares with the right to supply lime to all its suppliers. That was not of much use. He thought that Whangarei people should l:c in it, not lightly, but lieavi- > One crusher had been working over . a. year and also a portable engine. were some deposits which he r thought it might not be necessary to take up. At Mason's property at Waikiekie the Government had taken a quarry, but tlic company wanted to utilise those deposits. At Babe's an almost unlimited deposit was secured for 100 shares. The company was hanging on to that piece, as it was felt that if it reverted to Mr Babe they might never get it again. The plant to be bought would be got granting shares. As for Babe's the: new company held lhat on an agree- I ment. Farmers would get lime, Mr Col-1 lins continued, at the bare cost of i grinding. The old company had all alortg sold the .lime at about £1 per ton. The. situation of their works was about two miles from Huarau, but they barged (he lime at Ranganui, for £1 Gs per ton. However, as there was not a streak in the wall of stone of "Waikie-

kie, where the analysis showed 0i.7 per cent, that was useful, it was. a business proposition to transfer to there. He described how the quarry alongside the railway could be economically worked. Mr Storrar asked what extent of boring at Waikiekie had been done and what proofs the promoters had of the quantity, quality and .analysis of the limestone. If it contained over 85 per cent, lime it was a very valuable stone. Mr Storrar also said that, there should not be any preference shares in a co-operative concern. In reply Mr Collins said that the deposit, where it was worked two years ago, was of jewnparatively little value compared with Mason's quarries, and it was fair to assume that Babe's and the Government quarries were as good. The Mason deposit was worth a lot. The old company only wanted to get the new company going. It was a weakness that no borings had ever been taken, but an inspection showed that it was an extensive field. Mr McKenna said that he quite agreed that shares should be given to the old iirm, the members of which he thought could take up £1500 in paidup shares. The options were worth' something. The plant was reported to be a very'good one. It seeiued to him a pity that the plant had been worked there. It would be good move to | purchase it and work it at Waikiekie. Mr Collins, in reply to a query by Mr Cubitt, described how a proposed amalgamation with a party at Ruawai had failed. His directorate had been offered nothing, and had not dealt with the deputation when arranged again. He had said at Ruawai that he was in favour of amalgamation of nl! limeworking concerns in the North. Tt was a good principle, but he had data which had made him change his mind in that particular instance.

ilr McKenna said Ik- liad seen tlic deposits and had been favourably Jrn. pres ««<.]. jr... licii had agreed in the room to take up 300 shares, but Mr Cubitt had then telephoned him that it was too late arid he had heard other reports indicating that he should hold off. Mr Collins said the chief asset was Babe's deposit, though the machinery »vas also good value for any money put in. Mr Storrar elicited the information that practically all of the original company were still members of- the new company, and he suggested that it amounted to the old company going into liquidation and reconstructing. Mr Collins replied that that was so to a certain extent,.though he did not like the term, as it gave an impression of bankruptcy, and that had never been. # Mr Storrar said he figured it out that j the old company sought to pay itself with, preference shares. Mr Collins said that there were deposits all over the district, but some were better than others. The little portable machine could be sent all over the district to crush wherever there was 200 tons. Mr Collins answered a number of

questions relative to the analysis and stated that he thought that it would be a payable proposition even if only Babe's and. Mason's properties were acquired. Mr Cubitt said he felt that the Public Works Department would assist by allowing use of crushers, trucking facilities and making a road under the line from the quarry.

Mr Collins declared that he looked forward to the time when the company would not only grind the lime, but would also own motor trucks and put the lime on purchasers' paddocks direct. The chairman said that he was satisfied that the stone was there, and Mr Storrar suggested that the directors should issue a leaflet describing the proposals. Mr Collins repeated that after two years dodging round the country on a proposition that lie knew to bo good, and next in importance in the welfare of the North to co-operative dairying, yet the settlers wanted every detail I safeguarded and he had to admit that J he was getting sick of it. The members who had visited the outcrops expressed their conviction that the quantity available wa? very extensive indeed, to which Mr Collins added that already there were 1705 shares assured of the 2500 wanted. It was suggested by Mr McCardle that there should be 110 preferential shares and that the interest should be limited to 6 per cent., as high rates were against the principle of co-opera-tion. Mr Cubitt moved a vote of thanks to Mr Collins, the motion, seconded by Mr McCardle, being carried by acclamation. In responding, Mr Collins .v.id that \e hoped that the proposal would proluce fruit. He was sure that it was a ?ouml and bona fide venture, the sue-

I cess of which would udd much to the general welfare of farming in the North. He did not apologise for the initial mistakes made, which were due to lack of business acumen of the promoters. Subsequently the executive considered the matter in committee, and a resolution was recorded that the executive thank the North Auckland Cooperative Limestone Company for Mr Collins' visit, and indicate that the executive would give moral and financial support to the proposal subject to the interest being restricted to 6 per cent.; that the goodwill to be paid to the provisional members be 1500 ordinary paid-up shares instead of preference shares; that the County Council engineer be asked to inspect and estimate the quantity of limestone showing; and that an analysis of the limestone from Babe's and Mason's be obtained.