DOES IT PAY?

Northern Advocate, 12 June 1929, Page 4

DOES IT PAY?

FA mi AT KAMO SPRINGS. QUESTION OF SALE. As instructed at, last month’s mooting of the Whangaroi Hospital Boar-3, tho Form Committee reported to Monday’s meeting of the iboard having gone into the financial position in connection with the Kamo Springs farm, and recommended that in the event of the buildings, etc., being sold, the farm be carried on for a further 32 months and the position then reviewed.

The committee was influenced in this decision by the improved prospects since the engagement of the present foreman. It also had in mind the adoption of the Government Agricultural Advisor’s report, which recommended that the present dual 'control system (foreman and gardener) be abolished and the whole undertaking placed in charge of the present, foreman.

Included in the report was the usual statement, showing receipts from tho farm last month to have amounted to £lO2.

Mr F, Higglnson thought, it had been specified that the report should include a comparative table of receipts and expenditure.

The minute was road as follows: Mo\od 'by Mr ,T. A, S. Mac Kay, that the Farm Committee report on the financial position of the JCamo farm." On Mrs Donaldson’s request the figures were quoted. Profits since the farm was acquired were:—l9l9 20 (half-year), £BS; 1921, £157; 1922, £•*ls; 1923, £3(55; 1924, £457; 1925, £189; 1926, £359; 1927, £481; 1928, £171; 1929, £3,0. The interest bill on the purchase price of the property (£6000) was £360, and the farm in 10 years had made a profit of £2335, leaving £233 per annum towards the interest (bill.

No allowance was made for depreciation, which, however,. was very little where farm land was concerned.

Mr McLean pointed out that the profits would be absorbed if milk supplied from the farm was charged at Is 6d.

This suggestion was countered by Mr ,T. A, S. Mac Kay,. who reminded the board that for many years the the rate of Is a gallon instead of market price was Is 6d, and it had been impossible to get milk elsewhere. He considered that the farm should be given a year’s fair trial. If it were put up for sale, the erection of some sort of residence would be necessary to make it a going concern. Never since his advent to the board, said Mr McLean, had he considered the farm to be a paying proposition, but ho was quite prepared to give it a year’s trial, though not in the least optimistic of the result.

From his. experience of farming, Mr F. Elliott doubted whether there were any supplies from the property which could not bo purchased as cheaply, or cheaper, from outside sources. The purchase of the farm in the first instance had been a necessity, but he was very disappointed with the vegetable yield, except for the mangolds, which were fed to stock only. The time had come when the disposal of the farm would need to be seriously considered. It was an up-to-date little property, and would be a. good commercial proposition.

Mr J. N. MeCarroll, in moving that, the Farm Committee's report be adopted, agreed that the farm was an up-to-date concern and should not be hastily disposed of. In the event of the Kamo Springs spa. being sold, the farm .was deserving of another year's trial. It was now at the peak of its production.

This very fact led Mr J, A. S. MacKay to question whether its disposal would not be advisable. The farm admittedly was at its maximum capacity, and if it could not show a profit during the year's trial it. would never do so. During the year it would be possible to make the property ready for immediate possession if so/d.

Regarding the decreased profit shown last year, the chairman explained thht the farm had been put to a good deal of expense by the poultry experiment, which was as yet yielding nothing. The gardening had not been a success. Mr Elliott asked whether the Farm Committee intended to dispense with the services of the gardener, Mr Ellis said this would depend upon whether the spa was sold or not.

Mr F. HLggenson was willing to give the farm a last chance, and if it did rot prove its value it should foe disposed of.

Mr Mic Lean doubted whether any property Oif 60 acres could he run at a profit under a manager. The report, was adopted.