FARMERS' FREEZING COMPANY.

New Zealand Herald, Volume XLIII, Issue 13279, 11 September 1906, Page 6

FARMERS' FREEZING COMPANY.

AMALGAMATION PROPOSALS

DISCUSSED

AGREED TO BY 22 TO 3.

Ax extraordinary general meeting of the shareholders, of' the Auckland Farmers' Freezing Company, Limited, was held at the Chamber, of Commerce yesterday to consider a proposal of the directors to purchase the. business, carried on by Messrs. Hellaby Brothers, Auckland, under the title of the Auckland Freezing Company. The chairman of directors of the Farmers' Company (Mr. Joseph Barugh) occupied the chair, and about 30 others were present. The secretary read the additions to the articles of' association to provide for the amalgamation. The proposals are to the effect that in consideration of the shareholder company subscribing for and holding not less than 2000 shares of the nominal aggregate value of £10,000. the shareholder company shall be exclusively entitled to nominate and appoint two of the seven directors; and in the event of the shareholder company reducing its holding below a certain number and value, but so that the said holding shall not be less than 1400 shares of the nominal aggregate value of £7000, then the shareholder company shall be entitled exclusively to nominate and appoint only one of the said directors; but in case the shareholder company shall reduce its holding below the last-named number and value, it shall thereupon cease to have any exclusive right of nomination and appointment. No increase in the number shall be made without the prior written consent of the shareholder company so long as such shareholder company shall'hold not_ less than 1400 shares in the company of the' nominal aggregate value of £7000. The Chairman moved, " That the articles of association as amended be accepted." Mr. McGill seconded the motion. '< Mr. J. C. Allen, one of the directors of the Farmers' Company, said he was opposed to his co-directors in the amalgamation scheme. He admitted he had seconded the resolution at the Hamilton meeting, but he had since gone more, fully into the matter, and he now believed it would not be to the benefit of the shareholders to : amalgamate. There appeared to be some misunderstanding about the dead meat trade. In the proposed agreement the Farmers' Company for 15 years could not enter into the dead meat trade. While itmight not be advisable to enter it at the present time, there was no telling what might happen in 15 years. He considered the Farmers' Company . had done a great deal for the farmer. They had succeeded in getting him very good prices, and they had done his freezing efficiently and well. Under the amalgamation they were giving up their right to sell tinned meats in Auckland for 15 years, and that should not be done. Under the agreement the freezing company would not be owned or managed by the farmers. He could not support the present proposal, whereby they transferred a large part of the management to two men, who were not farmers, and also gave twofifths of the capital to a company which was not run or owned 'or managed in any way by the farmers. Mr. John Allen (Waingaro) said that when the Farmers' Company was first formed it was proposed to buy the Auckland, works." The proposal then, was they were to have practically no representative on the Board. He would not give his personal consent to enter into the retail trade. He did not think they were giving anything away when they gave up the 15 years' retail trade. They were told the company would not be owned or managed by the' farmers. If Messrs. Hellaby had two men out. of reven, those two men were not gohnr to dominate the whole affair. The Hellabys, as long as they were [working for their interest, were working for the farmers too.

Ill© Chairman said they had a shipping contract to ship all their meat during the next five years, by a shipping line, but the contract- specified that if any., other company had meat carried at a less rate the shipping company would carry theirs at that less rate. If any other company in New Zealand secured a concession they would get the same. He thought it was a very poor compliment to the directors for Mr. Allen, a director himself, to say that two gentlemen were going to control live, who all had wide experience, and were farmers. With the exception of Mr. Allen all the directors approved of the amalgamation. With regard to the sale of meat- in Auckland, the Chairman said they were a freezing company, and let them stick to that. "(Hear, hear.) They would do all the slaughtering and anything else, but they would not take on the retail trade themselves. But they could enter the wholesale live stock trade. There was nothing to stop them from doing that. Mr. W. S. Allen, sen., said be strongly opposed the proposal. They were persuaded, he said, to take up shares on the plea that if the Farmers' Company was established it would do away with the monopoly, which was l preventing them from getting fair prices for their stock. The presence of their company had raised the price of stock Now, in place of healthy competition a great monopoly was going to be established. Voices: "No." A Director: " Imaginary." Mr. E. Mahony, solicitor to the company, explained the position, and stated that Mr. Allen was inconsistent in his remarks. Mr. G. A. Cruickshank said he only had a small interest in the company, but he supported the amalgamation. They would retain the freezing of all exported meat, and Messrs; Hellaby would give up the whole of it. If they were to go in and compete with them it would be a risky business. (Hear, hear.) The directors were adopting the best course. The motion was then put to the meeting, 2% voting for it and three against. The Chairman declared the motion carried. Mr. Allen asked that a poll be taken. The Chairman said it required five shareholders to demand a, poll, and he did not think it was worth the expense in view of the vote. A meeting would be held after 14 days to confirm the alterations to the articles of association.' Mr. J. Gordon congratulated the directors and the chairman for carrying the proposals through so successfully. The large majority showed that amalgamation was much in favour, and he'hoped the minority would work hand in hand with the majority. (Applause.) He suggested that efforts should be made to secure the people interested in the butter factories to become shareholders. It would make the company a good deal stronger. There were a great many farmers who were not shareholders'.