DAIRY COMPANY'S LOSS.

New Zealand Herald, Volume LXIX, Issue 21163, 21 April 1932, Page 5

DAIRY COMPANY'S LOSS.

DIRECTORS' EXPLANATION. CALL MADE -ON RESERVES. [BIT TELEGRAPH. —OWN' CORRESPONDENT. ] HAMILTON. Wednesday. An extraordinary general meeting of suppliers of the Morrinsville Dairy 'Company was lield in Morrinsville to-day. The main business of the meeting was to acquaint suppliers that a loss of £4IOO had been made in the company's trading through the liquidation of the firm of Leonard and Son, Limited, of Auckland, with whom the company had been dealing. Mr. J. E. Leeson, chairman of directors, presided over an attendance of 200 shareholders. In dealing with the matter, Mr. Leeson said that the directors had taken the first available opportunity of placing before them the full facts, in connection with the rebuff the company had suffered. He said that the company had been trading with Leonard and Son for the past 18 months. In that period the turnover had amounted to .£60,000 and in this trade there had never been any hitch or any sign of default by the firm concerned. The usual business cautions had been exercised in that periodical bank reports had been obtained and were always satisfactory. • It was not until March 16, when the company was asked to accept a promissory note for February supplies that any indication of trouble was received. Immediately protective steps were taken. It was explained to the meeting that while eight other dairy companies were involved the Morrinsville company's loss was £4IOO and was one of amounts. The directors had given deep consideration to the matter and it was with pleasure that he reported that owing to the prudent management of the company in the past nine years reserves had been accumulated which would enable the payout to suppliers for the season to be unaffected. He was sure* that the shareholders would appreciate the fact that in spite of the loss of £4IOO this ]x>sition would obtain. It was with further pleasure he announetgj that arrangements had been made with Leonard and Sons' London principals, Messrs. A. C. Rowson, whereby the reserves of the company would be" built up again in the next few years, so that it was "anticipated that the loss referred to would only be a temporary one. Complimentary references were made by shareholders to the prompt action of the directors and the meeting passed unanimously a resolution congratulating the directors upon incurring such a small final loss to the company, thanking them for their care and attention to the matter and expressing renewed confidence ia them. In thanking the shareholders for their expression of goodwill, Mr. Lesson reiterated his own personal regrets that such an event should have occurred during such a difficult season and he assured them that the resolution they bad recorded was fully appreciated.