THE DAIRY INDUSTRY.

King Country Chronicle, Volume XII, Issue 1219, 3 June 1919, Page 2

THE DAIRY INDUSTRY.

AMALGAMATION PROPOSALS. i.WANi.WiM'rf SrPPOHT AT HAMILTON The proposals for Ihe amalgamation of flie .Ww Zealand Dairy Association. Lid.. Ih<* Waikalo Cn-op-'ralive Cheese Co. Ltd.. and th«- Waikato Co-operative Dairy Company. Ltd. were placed before sliarehnldTs at the King's Theatre, Hamilton on Thursday by Hr Wni. Goodfellow and Ihc members of Hit Amalgamation Committee. About 200 shareholders attended, and Mr J. Mackay (I\"ewstcad) was voted to the chair.

Mr •ioodfellow outlined the IS clauses set out in the scheme of amalgamation a lons the lines of previous meetings. He laid stress upon the point in the proposals whereby committees would be set up in suitable centres. These committees, whose duties would be outlined later, would occupy a responsible position and would keep in touch with the directorate of the new company. The three wards would probably be framed from Auckland to Huntly; from Huntly to Tamnarunui: and from Huntly' to Putarurti. including Thames. In concluding. Mr lioodfellow said that the amalgamation committee had given very deep consideration to Hie scheme, and there was nolhinsr against Ho* proposals so far as they could see. The proper supervision of their products on the London market was a further important feature which would be adcipiately provided for under amalgamation, and it would prevent the big loss which was now in evidence in regard to their hulter and cheese through lack of efficient control. (Applause.) Hamilton as Headquarters.

Mr T. C. Blackctt, chairman of directors of the New Zealand Dairy Asociajion. said that such a desirable object as amalgamation had for a long time been denied Ihe buller-fal producers of the South Auckland province. Discussing Ihe proposals. Mr Blackell said that they only met a few who held that competition was going to be eliminated by amalgamation. The only lime they came into competition was when they were selling their produce, and, under amalgamation, they would be able to secure the best results when

Ihe produce reached Ihe London market. The argument put up by the few about eliminating competition was only a fallacious one." As long as they were a divided people they would not gel the advantage which should be theirs. To set the maximum value they must he united. He asked for a substantial majority next week for them to earns* on. II was Ihe intention of the directors, Mr Blackell staled, to bring the headquarters of Ihe company to Hamilton, as they recognised that this was the right centre. In concluding, Mr Blackell said that he believed amalgamation would be carried by a triumphant majority next week. .Mr \V. C. Motion, of Ihe New Zea-

land Dairy Association directorate, said that they had realised the folly of one' company fighting Ihe other as in the past, when they should be united in their cfTorls for the benefit of the dairying industry and those who were connected with it. (Applause.) The amalgamation was on an equitable and genuine basis and decidedly in the interests of the butter-fat producers of tlir South Auckland province. By it.

he held, there- would be a great gain, among many oilier things in marketing of Iheir produce at the other end. During all Ihe years they had been manufacturing buller lliey bad never been able In gel it direct into Hie hands of the consumer. They did not want to be paid more for Ihe article than it was worth, but by the amalgamation scheme Ihey would be enabled to get the maximum value for their product. (Applause.) Mr H. M. Somervillc, late chairman of Ihe Te Kuili Dairy Company, and a member of the Waikato Co-operative Dairy Company, Ltd.. said that they, as fanners, put co-operation as their first plank. They had such concerns up and down the country: some were truly co-operative, while others were a little away and were capitalistic and moneymaking concerns. He had studied cooperation closely, and in New Zealand Ihey had not yet got to the stage where it was down to a fine point. Under the proposals set out in the scheme before them the suppliers would have control, which would ensure that the proposals were carried out. The appointment of district committees would give better representation than had obtained in Ihe past. Dealing with the necessity or having competent servants on Ihe sin IT. Ihe speaker paid a tribute to Mr Good fellow's cnialiflcations. In him they knew that they had the right man.

( Applause.) Under the proposals there wax ample opportunity for ability to be recognised, and by such they would indue** better men into Ihe industry. Mr Somervillc said that the directors were deserving of congratulation in moving along with the limes. They did not know what were the possibilities wilh milk vol. In referring to the fact that they were to have their own laboratory. Ihe speaker pointed to the Government neglect in not having made such a provision long ago. He could see nothing in the proposals that wis a detriment, and hi- was sure that there would be a unanimous vote in favour on Ihe :iolh. Applause.) Mr .1. T. Young. Te Awamutn. and a member of the New Zealand Dairy Association directorate, said that the Waikato Company directors had met them in an honourable way and had given tin' very best assistance in their power in cominK to a conclusion on the important question of amalgamation, lb- heartily supported the scheme. Mr 11. «». Cooper, Waihoii, and a director of the Waikato Co-operative Dairy Company, Ltd., sought solid support from the shareholders towards the proposals. In dealing with Ihe. directorate, Mr Cooper remarked that no "dead-heads" were wanted, and if the shareholders could find belter men in their midst it was their duly lo put them in. He paid a tribute lo Mr Marketi*s untiring efforts and great faith towards bringing Ihe proposed

amalgamation about. Mr Cooper pass. e,| on to deal with the question of the marketing of the product, and referred In his own experience, from observation, of the unsatisfactory position in London before the war in regard to New Zealand butler. They, would be able when amalgamation came in to put thejr liulter on the London market as riieir own, and they would have rolnnial brains to do it, 100. (Applause.) The ronrern was absolutely for the farmers, and now was the time for them t" gel llieir feel un the rock and slay there, f Applause.)

Mr K. H. .lull. To Rapa, points! out that the fact lhal flic deliberations by the committee having the proposals in hand had been so lengthy proved that they had given them very exhaustive consideration. If they had confidence in the committee they should heartily support the proposals. At a later stage Mr .lull said that there were no two opinions about it but that they, as farmers, were thoroughly in favour. (Applause.) Questions Answered.

In reply to a question, Mr Goodfellow said that all payments would be made en a butter-fat basis, which meant that no interest would be paid on capita L In reply to a question asked by Mr Jul I on the point, Mr Good fellow said that in the past, as managing director of the Waikato Co-ope«iUve Dairy Co., he had consistently advocated the payment of interest on capital, and the Article* of Association were drawn up with that object in view. Under the amalgamation scheme the position was entirely different. The company would commence operations with the distinct understanding that all payments would be made on a butter-fat basis. The speaker was firmly of opinion that this was highly desirable in view of the complex nature of the business of the amalgamated concern. It was quite possible that the new company would lie called on in the near future to Hnd large sums for works for the manufacture <>f new products, and it would be quite unfair that the large body of shareholders should be compelled to pay interest on capital to the shareholders supplying a factory that had been closed down. Of course such a thing was not contemplated, but. nevertheless, this was the time when provision should be made to guard against all possible contingencies in the future. Dealing with a question in regard to the capital of the new company, Mr Goodfcllow said that the position had been gone into carefully, and it was considered that the nominal capital mentioned would be sufficient for all the requirements of the immediate future. It was a comparatively simple matter lo increase the capital should it be found desirable to do so. Mr J. .1. Raynes asked the directors »f the New Zealand Dairy Association what provision had been made to pay interest on capital lo non-supplying shareholders?

.Mr Blacketl replied lhal Ihe sins of Ihe directors of Ihe New Zealand Dairy Association, if lliey had committed any, would rest Willi thai board, and they should in no way or associated with Ihe amalgamation proposals now under discussion. In any ease Ihe amount in question was a comparatively trivial sum.

Mr Coodfellow considered that the non-supplying: shareholders were being liberally treated seeing that the shares would be resumed by the new company at par witbin 12 months. Up urged that those interested should take a liberal view of this matter and thereby prevent any dissension at this juncture. Unanimous Support. Mr G. Davis. Hamilton East, moved: "That this meeting of dairymen adopt the amalgamation proposals as advanced by the delegates at this meeting." Mr.H. D. Bedford, Te Kowhai, seconded the motion, which on being put was carried unanimously. A vote of thanks to the chairman concluded the meeting.

TAUPIRI. A meeting In connection with the dairy amalgamation /scheme was held on Wednesday at Taupiri, being addressed by Mr Cooper and Mr Motion, 'representing the directors of the Waikato Dair>' Company, Ltd.. and the New Zealand Dairy Association respectively. Mr T. L. Hames. assistant manager of the Waikato Dairy Co., and Mr A. Morris, manager of the N.Z. Dairy Association, were also present. The meeting was well attended and was enthusiastic. A number of questions were asked, and at the conclusion of the meeting a resolution, proposed by Mr Mathers and seconded by Mr Hall, was unanimously carried, endorsing the amalgamation proposals.