FARMERS’ SALEYARDS COMPANY.

Lyttelton Times, Volume CXX, Issue 14978, 26 April 1909, Page 4

FARMERS’ SALEYARDS COMPANY.

A MEETING OF SHAREHOLDERS. A special meeting of shareholders in the Farmers’ Saleyards Company, convened by Mr James Brake, was held at the Chamber of Commerce on Saturday, when Mr W. Gees presided over an attendance of about fifty shareholders. Mr Brake read the notice convening the meeting, which stated that tho object of calling the meeting was to consider the action of the directors in proposing to lease the company’s grounds. Tho chairman said that any resolutions which might be carried that afternoon would be carefully considered by the directors. The directors believed they wore acting in the best interests of the shareholders, but it was possible that a majority of tho shareholders might think otherwise. Mr Brake said he felt it to be an unpleasant duty to criticise the action of the directors of tho company. They were honourable ; straightforward men, and they were his personal friends, and he thought they had always done their best i'or the company, but on this occasion lie wanted them to reconsider their decision. The company had had an uphill struggle financially, and the directors had to contend with apathy on tho part of the 1400 shareholders in the company. The company did. more business with outsiders than with its own shareholders, and it was almost impossible to keep the concern going. The directors had made an offer to lease the rainy a ids, and that offer had been accepted. Tho ideal in view in forming the company was to eliminate the auctioneering element, and to provide a free market, and ho believed that an auctioneer was backing the party that proposed to lease tho company’s saleyards. The object of tho company was to have control over auctioneers, and to prevent them refusing to sell to certain persons. If any auctioneer took over the saleyards he would have to make concessions to the “damnable combination” in the fruit trade. An auctioneer was in a peculiar position. He had to depend upon tho public to fill his store with wares. On a rising market he held his own goods and sold his clients’, and on a falling market he took an opposite procedure. He knew tho directors would try to hedge their tenant in with all sorts of restrictions, but tho fruit auctioneers, could always take advantage of their right to refuse a bid. If the restrictions were rigid enough to meot the company’s ideal, the tenant would not make enough to pay the rent. The directors had not publicly advertised for tenders for the lease, and if they held their hand awhilo it was probable that an amalgamation could bo made with one of the most prosperous poultry auctioneering businesses in the town. The meeting of directors which deckled to lease tho saleyards was attended by throe new members, who probably did not realise the full meaning of the proposal. He wanted to ask tho directors to postpone action for at least a fortnight, so that time could bo given to find out if any hotter course was open. He moved—" That this meeting of shareholders in tho Farmers’ Saleyards Company, while sympathising with tho directors in the position they wero placed in, respectfully requests them to reconsider the leasing of tho Fanners’ Saleyards, with a view to obtaining better terms, in which case the shareholders pledge themselves individually and collectively to support tho directors in every way possible; and that a copy of this resolution bo forwarded to tho directors at once.” Tho resolution was seconded by Sir Coomber. . . Mr Herbert (chairman of directors) said that tho directors had now gone too far with tho leaso negotiations to draw back. The company, was practically bankrupt, and no other course was” open. Ho referred to the strenuous and active manner in which Mr Brake had worked for the success of tho company. He had asked Mr Brake to make an offer for tho saleyards himself, but Mr Brake declined, as ho

feared the imputation that he was trying to make something out of tho company. The chairman said that tho shareholders would like to know exactly what tho directors had done. The directors had taken stops to reorganise the company and to prevent an annual loss of £3OO, and they had done their best to get offers for the lease from all sources. Tho saleyards would be carried on on tho same lines in future as in the past. Mr Wilson excitedly accused Mr Brake of robbing tho company of £IO,OOO. (A voice: Bunkum!) klr Brake said he did not think it was necessary to reply to that statement. (Applause.) Mr Webb, secretary to the'company, said that the directors had leased the saleyards to Mr H. E. Sands, the company’s late auctioneer, for ten years, at an annual rental of £2BO for the first five years and £3?'"' for the second five years. The company’s name was to bo retained, and they could buy back the business if they cared to. (V shareholder suggested that it was peculiar that Mr Sands, who, as joint manager of the business, lost £3OO a year, could now offer £3OO a year for it. *

Mr Hayward, ono of tho directors, said the company was practically on tho rocks It could no longer afford to pay its servants, and the only honest thing to do was to make an attempt to get some of the shareholders’ money back for them. Mr Sands had an idea that he could make a success of the business, and if ho did so the company could resume it after ten years. If ho did not the company would be bettor off by a gain rather than a loss of £3OO a year. Mr A. L. Joseph, one of tho directors, made a similar statement of tho position. Mr Sands was bound to continue with the company for twelve months after his lease was up, so that he could not at once start in opposition to tho company. In reply to a question whv the lease was not advertised, ho said that there was such difficulty in getting reasonable offers that there was no use in advertising. | The chairman said that tho shareholders had authorised tho directors to ' act on their behalf, and they, ecu Id do nothing now but express an opinion on the way tho directors had acted. Mr H. E. Peryman said that the offer made by Mr Sands would have been prejudiced by advertising. Mr Wilson strongly condemned tho directors for raising money on overMr Joseph said the overdraft did not now exist, and it would . never have done so if tho directors could have got tho necessary money from tho shareholders. Mr C. H. A. T. Opie said ho sympathised with the directors, and felt they had acted for the best. In reply to a question, Mr C. Benjamin, one of the directors, said the directors were supposed to he paid indirectly for their cervices, by means of debentures, but they had not received a penny yet. . Mr Brake said that it was evident that tho matter of the lease had gone too far to bo stopped. He criticised the arrangement entered into with' Mr Sands, and suggested that it would be better, instead of employing him for a year at tho expiration of the lease, to bind him over net to enter into business in opposition to tho company for five or ten years. At tho end of ten years there was little doubt the company would have a valuable capital.- They were told tho bondsman for the leaso was approved by the bank. He might be all right financially, but his interests might bo inimical to those of tho farming shareholders. Ho believed that tho Farmers’ Saleyards Company would yot amalgamate with tho large poultry auctioneering business already mentioned. As the resolution was useless in view of tho directors having gone so far with tho negotiations, ho would withdraw it. The chairman said ho thought a vote of thanks should be passed to Mr Brake for calling the meeting. Mr Watson Hime moved and Mr Brake seconded a motion approving tho action of tho directors.