FACTORY SHARES.

Northern Advocate, 25 August 1924, Page 2

FACTORY SHARES.

DIVIDEND PAYMENT. WHANGAREI DAIRY COMPANY. At the annual meeting of the Whangarei Dairy Company on Saturday Mr Russek moved, Mr Smith seconding, ''That the directors' recommendation to pay a dividend of a ver cent, on all fully paid up shares be agreed to.' , "Why is our money only worth 5 per cent, when the banks are able to get 7?" asked Mr Babe. "Yes, but the banks will not give more than 4-J per cent, if you invest your money with them,'' replied Mr McDonald. The chairman (Mr H. Wakelin) said it was not the policy of the company to pay a high rate of interest on shares because if it did so dry shareholders and absentees would be inclined to leave their money in the company as an investment, and they did not want that. Mr .T. Wakelin moved as an amendment that the dividend apply to all share capital, whether fully paid up or not. ! Mr E. S. Tremaine stated that the shareholders received their dividend in the pay out, and the more they paid in dividends the less would the suppliers receive on their output. Dairy companies vied with each other in the matter of "pay out," and their company, like others, tried to do the best it could for the suppliers. This year they had beaten rival companies by l- t ~d in the pay out. Mr Whimp said he preferred to see the dividend lowered to, say, 3£ per cent. An extra id per lb. on the output would be equal to about 20 per cent, dividend on the share capital. The chairman remarked that to pay the dividend on all share capital irrespective of whether the shares were fully paid up or not would involve a sum. of £500, instead of about £200 only on the fully paid up shares. Mr Babe questioned whether they would be in order to pay a dividend on any but fully paid up shares, and Mr Whimp said he believed the Articles of Association laid it down that the dividend only applied on fully paid up shares. "Most companies pay out on the amount of capital subscribed," ivmarked Mr Hall. Mr J. Wakelin's amendment was lost and tho motion was carried.

Somewhat reminiscent of Gilbert's character Pooh Bah, in "The Mikado," is an anecdote told of Dr. William Donald, the first medical man to arrive at Lyttelton, by Dr. P. C.

Fenwick, in his just issued "History of Christchurch Hospital" says tho "Press"). After remarking that Dr. Donald was a man of many p*rts, in that he held a large number of offices in fho young township Dr. Fenwick writes: "An old resident recently told mo that he well remembered Dr. Donald, whose many an,l varied positions sometimes caused amusement. Ho recounted the story of a visitor to Lyttelton who was: hospitably entertained by tho Colonists' Society under the presidency of Dr. Donald. The visitor apparently met with more 'hospitality after th? reception, for next day ho was brought, before Magistrate Dr. Donald. who fined liiin five shillings. Tho next day, being Sunday, the visitor attended church and contributed 'half-a-crown to tho offertory bag, which was handed round by tho church-warden — Dr. Donald!"