Oruru Dairy Company Decides Against Amalgamation

Northland Age, Volume 6, Issue 29, 9 April 1937, Page 1

Oruru Dairy Company Decides Against Amalgamation

No Voices Raised In Favour; 390 Votes Recorded Against, only 10 For

At a sitting of the Executive Commission of Agriculture held at Kaikohe in the first week in March, the Commission was not prepared to allocate a zone to the Oruru-Fairburn Dairy Company as it considered that this Company should amalgamate with the Kaitaia Company which operates to the west of the Oruru-Fair-burn Company and whose factory, although now having an annual output of approximately 2,000 tons, is capable of taking the relatively small output of 400 tons that it would be required to do if the Oruru factory was closed. It was pointed out that by manufacturing all the butter at the Kaitaia Company’s factory, such a saving in costs would result that would more than compensate for the loss that may be sustained in the realisation of the Oruru - Fairburn Company’s assets, these including a modern factory only erected two

years ago. At the Commission sitting it was tentatively agreed that the Kaitaia Company purchase the assets of the Oruru-Fairburn Company on the basis of bank and machinery liabilities as at 30th May, 1937, this not to exceed £6,300. The directorates of both companies agreed to place the amalgamation proposals before their shareholders and to recommend their adoption.

In fulfilment of this undertaking, a meeting of the shareholders of the Oruru-Fairburn Company was held at Peria on Wednesday, after an informal meeting of the Company had been held a fortnight ago, to enable the position to be placed before the shareholders. At this informal meeting at which the Press was present, the great majority of those present including directors and officers of the Company spoke strongly against the amalgamation proposals and although no resolution was put to the meeting, it was apparent that the great majority ot those present were against the proposals. At the meeting on Wednesday, the chairman of the Dairy Board, Mr. J. Murdoch, was present, but the meeting was not open to the Press, however it was ascertained after a lengthy meeting that a resolution opposing the proposals, was carried, the voting being 390 against amalgamation and only 10 for. It is understood that the Company is to make a further request to the Commission for a zone, but it is thought in well informed quarters that this will not be granted, and the whole of the Mangonui County will be open to the Kaitaia Company, even though the Oruru Company may still operate. The Kaitaia Company will then have the right after May 31, to collect cream from the area now supplying the Oruru factory but this aspect of the position has not, so far as can be ascertained, been discussed by the Kaitaia Company directorate, so it is not known what exactly will be the result of the Oruru-Fairburn Company’s decision. It is understood that at the meeting Mr. Murdoch took exception to a number of statements that were made by speakers at the informal meeting of the Company, especially those in which it was alleged that the Comission was biased and that members’ minds had been made up before they had heal’d the evidence brought forward at the sitting at Kaikohe. These statements were absolutely incorrect as the Commission’s findings were based on the evidence presented, said Mr. Murdoch. Although there was a large gathering of shareholders present at the meeting it is understood the discussion was not very protracted and that there was little, if any, support given to the amalgamation proposals by any speaker. Mangamuka suppliers who have been zoned into the Hokianga Dairy Company’s territory, are reported to be anxious to remain with Oruru and are considering taking steps to secure this end.