H.B. CO-OP. DISPUTE

Press, Volume C, Issue 29638, 7 October 1961, Page 16

H.B. CO-OP. DISPUTE

(New Zealand Press Association)

“Misleading Letter” HASTINGS, October 6. Statements in a letter published yesterday from a group of shareholders were “contrary to fact” or were misleading, said the chairman of directors of the Hawke’s Bay Farmers’ Co-operative Association, Mr R. H. White. “In the past, our shares have increased in value only as the dividend has increased, and they will continue to do so. This rate of increase in our share values can be accelerated only to the extent that we abandon the cooperative principle upon which the company was founded and upon which we have traded for 70 years. “This effort by outside investment interests to defea’ the company’s proposals proves how well founded is the directors’ concern that the co-operative principle of trad ing is at risk unless shareholders are alerted to th' danger.

“If the shareholders wish to retain the co-operative element in the business and retain local control of the company they will support the board’s proposals.”

Christchurch Building. Christchurch Building and Land Society (Permanent) final, interest 3'4 per cent., plus 3 per cent, distribution from profit, making 10 per cent, for the year (unchanged); payable November 1.

Love Cdn*tructM>n.— Love Construction Company Ltd., halfyear. preference. 2) per cent., payable October 31. ex Octobe-

“Principle Attacked” (N.Z. Press Association) WELLINGTON, October 6. “There would appear to be in progress an organised attack on the co-operative principle,” said Mr W. Malcolm, Dominion president of Federated Farmers, in a statement today commenting on.the controversy involving the Hawke’s Bay Farmers’ Co-operative Association, Ltd. “What should be realised is that a co-operative association is not an ordinary joint stock company. It is a club formed for the purpose of gaining strength by combination in buying or selling or in both. People who put money into it know quite well that it is formed for this purpose and not primarily for the purpose of paying dividends to investors. “If anyone puts money into such a company he does so in the knowledge that it is a club of the nature I have outlined and he cannot therefore expect the same conditions to apply as in an ordinary joint stock company. Those who put money into a co-operative association should do so for the purpose of helping to achieve the objectives of the association and not with the object of making money from the investment. “They know this when they invest the money and they should accept that the purposes of the club will be adhered to,” concluded Mr Malcolm.