CO-OPERATIVE PLAN.

Auckland Star, Volume LXXI, Issue 81, 5 April 1940, Page 3

CO-OPERATIVE PLAN.

TUAKAU CARRYING WORK. FARMERS' PROPOSAL. i (From Our, Correspondent.) PUKEKOHE, Thursday. Applications for the transfer of individual motor lorry licenses to new combined companies that have been formed at Tuakau and Waiuku, were heard by the Xo. 1 Transport Licensing Authority, Mr. K. J. Phelan, to-day. Decision was reserved. Mr. A. C. A. Sexton, who appeared on behalf of farmers and opposed the transfers, especially in the ea>e ,">f the Tuakau carriers, explained that the combined company formed at Tuakau had a registered capital of £15,000. There were only 12 shareholders, and 20 to 2.3 lorries were to be imv-red in it. If the transfers were granted, it would then have complete control of the carrying work in the Tuakau district. Farmers in the district had been concerned at this aspect, and considered it only just that, as they would be the major usere of the company's services, they should have some voice in the management, and also be entitled to some, share of profits earned. A meeting of farmers' delegates, he continued, had formulated a concreta plan to give effect to their wishes. This plan proposed that the vehicles and goodwill of the business of each applicant for transfer to the combined company should be valued, and that he should be given preference shares in the company to half the amount of the valuation, the other half to be p.iid him in cash. Half the capital should be ordinary shares, to be taken up by users of the services. The plan provided that the operator should receive full award wages from the company, interest on his capital, and safeguarding of his capital by the creation of reasonable reserves. Messrs. C. R. Sturrock, M. R. Grierson and G. Walsh appeared in support of the applications for transfers to the companies. They said that, a* the Authority would fix the prices to be charged "for carrying in the two districts, users would be amply protected.