TO SELL OR NOT TO SELL?

Dominion, Volume 22, Issue 134, 2 March 1929, Page 7

TO SELL OR NOT TO SELL?

POSITION OF SOUTH OTAGO FREEZING COMPANY Dominion Special Service. Dunedin, March 1. Between eighty and ninety shareholders of the South Otago Freezing Company attended a meeting convened by Mr. J. Christie (one of the directors), at Balclutha, yesterday, to consider the offer of the directors to sell the works to the New Zealand Refrigerating Company and Southland Frozen Meat Company for £60,000. Mr. Christie pointed out that the works were now doing well, and had put through 7000 more lambs so far this season than they had at this time last year. They had also an arrangement with the Co-operative Wholesale Society of Britain, and were freezing produce for them. He suggested that the farmers who were supplying the works, and were not shareholders, should be asked if they would take the shares from the purely investing shareholders, and thus eliminate the latter altogether, and become a purely co-operative concern, the profits going to the supplier, as was done by the cooperative dairy concerns. He said the works were an asset to the district, and it would be fatal to dispose of them to a big proprietary, concern. ■ Several of those present spoke, the majority being in favour of retaining the works. The chairman pointed out that the price at which the works were being offered was ridiculously low. This was considered an excellent proposal. and the chairman said he thought it would take about £25,000 to buy the “dry” shareholders out. . Eventually, it was decided to appoint a representative committee to canvass the district to see what support would be forthcoming from suppliers in the way of buying “dry” shareholders shares, and to formulate some definite alternative to the proposal of the directorate when the time came to ratify the sale ot the works, or otherwise. The committee was appointed at tne meeting, and afterwards met to discuss details. ______