STORAGE FOR BUTTER.

New Zealand Herald, Volume LXVII, Issue 20472, 25 January 1930, Page 12

STORAGE FOR BUTTER.

FARMERS' FREEZING CO.

FURTHER 100,000 BOXES.

INCREASE IN B SHARE ISSUE. To meet Lho position caused by the steadily increasing production of dairy produce in tho Auckland Province a special meeting of shareholders in tho Auckland Farmers' Freezing Company, Ltd,, held yesterday, amended the articles of association to enable the dairy companies to subscribe tho increased capital required to provide further storage accommodation equal to 100,000 boxes of butler at tl;e King's Wharf works, together with the necessary handling facilities.

Mr. J. E. Makgill, chairman of directors, who moved the resolution, traced the growth of the company's operations in regard to dairy produce, and said that last year just on 2,100,000 boxes of butter wero put through the works, in addition to cheese. Tho existing storage was sufficient to meet immediate requirements, with a certain margin for safety, but tho directors, looking. ahead, felt that the margin was not sufficient to meet all possible eventualities. With further considerable increases in the volume of meat and butter, the company might be put in a difficult position, and fruit was now having an appreciable bearing on the storage problem. Acquiring Adjoining Property. Steps had Jilready been taken to acquire the adjoining property, known as J. J. Craig's. It was not needed for the actual building site, but was required in connection with an extension of the siding accommodation, which was essential to economical handling of tho products. Tho chairman explained that the dairy companies had been invited to take up additional "B" share capital, equal to £59,261. A.baut £20,000 of this was required to bring their holdings up to the full quota unrler the original scheme, and these would be paid for on tho basis of 2s on application, 2s on allotment, and the balance ;in calls of 4s each, spread over a period of four years. The companies would then be entitled to subscribe for their quota of tho further issue of about 40,000 shares, 2s to be paid on application, 3s in calls of 9d each, spread over four' years, and the balance to be provided by the freezing company in" the form of rebates. Dairy Companies' Quotas. Already 47,941 shares had been applied for. The largest dairy companies had taken their quotas. As the dairy companies would be holding more than £IOO,OOO of the share capital, or about one-third of the total, it was only fair that they should have more than one*director. Under the amended articles, as soon as the new shares had been allotted, the New Zealand Dairy Company would have Ihe right to appoint one director, and tho other dairy companies, jointly, would have a similar right. In 1932 the latter companies would have a right to appoint a second director. The motion: to amend the articles of association wms carried unanimously, and it will bo submitted for confirmation at a further speciitl general meeting, to be held on February 21.