Basis of Compensation

Northland Age, Volume 6, Issue 30, 16 April 1937, Page 4

Basis of Compensation

Although the figure fixed for the value of the assets of the Oruru company was not to exceed £6300, and this may appear large to the Kaitaia suppliers, it must be remembered that the Kaitaia company would take over some assets that were saleable or that could be used in the Kaitaia factory. By the sale of these assets and the taking of the cream supply to the east of Lambley’s hill by Whangaroa would mean the payment of compensation by Whangaroa to Kaitaia, so the cost to Kaitaia would be reduced to about £8 per ton which was about the compensation fixed by the Commission on the transfer of supply from one factory to another. It was estimated that in five years this amount would be wiped out by the savings effected by this augmented supply to the Kaitaia factory. The repayment of the liability incurred by the Oruru company in the election of the new factory and the installation of new plant is limited to a few men, the directors, and although promissory notes are held from the suppliers, the validity of these notes is doubtful. The same thing may happen at Oruru as happened at Herekino, a few men left to bear the burden of the company’s debts.