TEST OF LOYALTY.

Gisborne Times, Volume LXVIII, Issue 10753, 26 November 1928, Page 4

TEST OF LOYALTY.

G.S.F.M. AND M. SHAREHOLDERS’ STOCK. FREEZING WORKS COMPETITION. “Vou appeal to the shareholders to bo loyal to the company and freeze their stock in the Kaiti works, yet it is reported that certain directors have supplied stock "to Testers,” remarked a shareholder addressing the chairman at the annual meeting of the G.S.F.M. and M. Co., Ltd. on Saturday.

The chairman (Mr. J. W. Noland admitted that lie also had heard these suggestions. He had made inquiries and advised every shareholder to support the company’s works. He recognised that some of the farmers were severely tempted to deal with the opposition works. The Sheepfarmers’ Co. was up against strong competition, as most mercantile firms- in town were working in the interests of the opposing works, as the firms received either concessions or commissions' on all stock put through the other works. That was the sort of tiling a co-operative company had to fight against. He pointed out that farmers were induced by strange agents to sell their stock and'did not know what works the stock would bo frozen in.

Asked if it was not possible for the G.S.F.M. and M. Co. to offer the firms, the same concessions or commissions to influence stock coming to the Kaiti works, the chairman replied that the directors had considered tile suggestion and had decided against it on the ground that, by granting concessions'to the firms, (it came out) of the shareholders’ pockets. Even if the output of the works was increased, it would not he a moral thing for the directors to put their hands into the shareholders’ pockets to obtain the increased business.

Mr F. Stafford asked why the mercantile, firms were, inclined to cooperate with Vesteys. Was it not because the G.S.F.M. and M. Co. was in competition with the firms in the mercantile line ?,

The chairman: “Quite likely.” Mr. Stafford said that lie considered that, 'if the company had stuck to freezing and left the mercantile business alone, it would have been much better off.

The chairman concurred, adding that Hie biggest mistake made by'the company was when theytook ‘ over the ‘The absorption of the business of Messrs. Bennett and. Sherratt had not cost the company anything.