CHEESE OR BUTTER?

Dominion, Volume 1, Issue 23, 22 October 1907, Page 2

CHEESE OR BUTTER?

| "■'• A TYPICAL DISCUSSION^ \^ : ", • . A-typical wrestling mafch ove'r.tho question of cheese: or. butter occurred at.; Eltham lately, and tho details are worth recording. Suppliers to the Eltham Road Creamery,,of the Eltham Co-Operativo Dairy ."Factory Company, requisitioned the directors to erect a cheese plant; but the directors'.'hands wore ■ : tied ■ 'by a' former .resolution of'' the: 'shareholders directing; ' th'em' to' charig'o • to'; 'cheese' only''' if they they could' get 2d. por lb. more for the butter fat—which price they had' failed to get. ''• Consequently a further meeting of shareholders was held .'arid tho whole question re-opened'. 'The situation appeared to be that the Eltham Road people 'wero convinced 1 ' cheeso would pay best, and .they would break away if necessary and'erect the plant themselves. They wero willing'to'sign a' "joint and several" guarantee. ■''••'•■' r " The chairman of directors, Mr. T. 0. Hodg-' son, said'the price of their cheeso last year ranged between 6d. and 6}d., but this year it was between s}d. and sifd—a fall of about' £d. it was expected to fall still more after Christmas, in proof of which .buyers refused to buy past' next. March (instead' of till the end of. the season in July). This view was caused by improved Canadian weather. The cost.tof butter -making would be less,' ! and there would a .saving of Id. in freezing charges and a saving in railway freight and cost of boxes. The season's buttor was'now sold to tho endiof March'at.practically lOJd.' as against last year's IOJd. (after deducting shrinkage): till the end of February: i If they mado cheese; instead they would have t6 arrange with the buyers. '.-■■" .■:.!■ ■•.: .'■>■!■.■'. i*-Messrs. Corbett and Cleaver proposed ithat the eompany'stick to. butter. - -■.-: .:'. '■.• ...'Mr.. Watson iwas convinced the. price of cheese would advance boyond the-margin of 2d.—even up to Is. a :pound so long as beef was, 7d. ■ ■!.-;• ,-,••,; ".'■ - .i,.. Mr. Divo considered the:company was tied to butter.by its contract with;the buyers. Mr. J. Ure Murray said if the,factory!had made'cheeso-last season lie-would:have drawn £180 more, money, and the-whole-difference to .the-company was £19,379. , The. chairman'said the bank would, want the company to bo'security boyond' the "joint and several" guarantee, (which the shifting population made risky. Mr.' Ballantino. pointed, out,-that a sum of £500 would cover tho cost of tho'required change. ... Messrs. J. "Ure Murray. and Scriviner proposed an amendment .that ;tho ■ question of orecting cheese factories .bo.Jeft to the directors. -'. ,- , ■ . ~,,• ,;.-.....• ■ '.', ...-■; .... • Mr; Carter said tho question was, becoming an;,.agony. It would be, folly ■:to go. in for cheese with only.three, months of the season to work on after tho erection of tho premises. Tho,; chairman urged that , the question should he deferred till next March. , Finally the amendment, leaving; the question in. the hands of. the directors'was carried by.35. votes t0,.6, and it- was resolved that before a cheeso" plant should- he installed a block vote.of.,shareholders .should be held at tho creamery, concerned.