A NEW VENTURE.

New Zealand Herald, Volume XXV, Issue 9163, 19 September 1888, Page 6

A NEW VENTURE.

BIRKENHEAD AND NORTHCOTE FRUIT PRESERVING COMPANY.

A meeting was held at the Zion Hill schoolroom, Birkenhead, yesterday evening, with reference to the formation of the Birkenhead and Northcote Fruit Preserving Company. Mr. E. White presided,

Mr. Johns read the minutes of the meetings held by the committee appointed at the previous public meeting, and he also submitted a prospectus which the committee had drafted. This prospectus stated —"The promoters have determined to > avoid the too common commercial error of' exhausting working capital in expensive plant and premises, and have entered into conditional arrangements for plant and manufacture by contract; which, with a manufacturer of established repute, will relieve them of any considerable outlay, with the most satisfactory guarantees of economy, and the highest quality of products. On the most careful estimate of last ear's working by the manufacturer, a clear nett profit is shown of 12£ per cent., for 2J per cent, of which the manufacturer undertakes to cover all working expenses of the company for the first year, receiving 50 shares for that guarantee. As the capital of the company should be turned over several times during the year, this promises a large interest on the amount invested by shareholders. In order to make the concern of general interest, arrangements are made to allot shares to fruitgrowers, the payment for which can be made in fruit in the season. Promises of orders are in hand for the coming season for the same make and quality of jam as last. It is proposed to call up as follows :— 6d per share on application ; 2s 6d on allotment; balance as deemed necessary, at the rate of not more than 2s 6d per share, at not less intervals than two months, nor less than fourteen days' notice." Mr. Johns pointed out that the details of the movement could not be carried out until directors were appointed. He was not sure whether the directors would accept the responsibility of buying a plant, and in that case they would have to take the other alternative—that of having the jam made by contract. The estimate was that what they would produce for 4s 9d they would be able to sell for 5s 9d, and he could promise that if they threw the work upon his shoulders the entire salaries and working expenses would be covered by 2£ per cent, on the amount of the business transacted. If £1000 worth of business was done, the working expenses would not amount to one penny more than £75. The Chairman thought it would be necessary for the meeting now to state whether they would accept Mr. Johns' offer. Mr. Johns corrected the chairman. The meeting would have to decide whether a company would be formed, and it would be for the directors, when appointed, to state whether his offer would be accepted. In reply to Mr. Parrish, Mr. Johns said his plant had not been inspected, simply because there was nobody to inspect it. Directors had not yet been appointed. Mr. Parrish thought the committee should have inspected the plant. Mr. Porter considered that they should form the company entirely independent of Mr. Johns or anybody else. (Hear, hear.) Mr. Johns had given efficient help, for which they were very thankful, bub let them first appoint the company, and the directors would then consider Mr. Johns' offer. (Applause.) He wished also to assure those present that this company was net being established in connection with the Birkenhead Fruitgrowers' Association ; the idea might have originated from that body, but the association would have no control over the company. (Applause.) He moved, " That the prospectus as submitted by the committee be adopted." The motion was seconded by Mr. Stafford.

Considerable discussion ensued in reference to the clauses in the prospectus intimating that shares could be paid for in fruit, and Mr. Johns said that the idea in making this provision was that those who would not have ready money and wished to take up shares might have some reserved for them ; and when they had fruit to offer the company would buy it at the market price in payment for their shares. He believed that there would be no necessity to call up more than 5s per share, if the money were judiciously spent. (Applause.) He would like to demonstrate for once in Auckland that a few men could get together in a commercial enterprise and make it pay, and he considered that they had here a perfectly sound and legitimate enterprise. (Hear, hear.)

Mr. Stafford was of opinion that this company would be their salvation. If the price of strawberries were reduced in town they could bring their fruit back and sell it in their own district. The forming of the company was, in his opinion, the finest thing that ever happened to Birkenhead and North cote.

Mr. Johns hoped that all the growers would not pay their calls in fruit. (Laughter.) Some cash was wanted to carry on the work of the company. A considerable amount of interest was being taken in Auckland in this movement.

Mr. Pouter's motion was agreed to. Mr. White was appointed treasurer pro tem., and a number of shares were then taken up in the room, the total number now purchased being nearly 300. The following gentlemen were appointed directors of the company :—Messrs. Kaye, Faulkner, Wilson, White, Porter, Johns, Jack, Parrish, and Brooking. Mr. White was appointed secretary pro tem.