"SHOCKING CONDITION"

New Zealand Times, Volume XLVI, Issue 10688, 7 September 1920, Page 6

"SHOCKING CONDITION"

DAIRY CO.'S ACCOUNTS

GOVERNMENT AUDIT SUGGESTED, BUT WITHDRAWN.

An adjourned meetinjr of shareholders of tho Cambridge Co-operative Dairy Company was held in the Town Hall. The attendance numbered over 250. Mr Bdward Allen presided. At a previous meeting clerical errors not disclosed by the balance-sheet were admitted by tho directors. The meeting therefore,.declined to adopt the balance-sheet, and a resolution -was. carried that a Government audit should take place. Later .inquiry showed that the process necessary would be- complicated and tedious. Mr j. S. Fisher consequently gave notice of motion to rescind that part of the resolution relative to a Government auditor being called in, and the . meeting was held accordingly. The proceedings were uproarious at times, and got out of hand. Tho meeting tasted for four hours. The first debate centred round the admissibility of the motion, one shareholder quoting two legal opinions that it was incomplete in its terms, and therefore not in order. The chairman, advised by the company's solicitor, ruled the motion in order. Mr AVatson thereupon, moved that the chairman vacate the chair, but this wa« defeated. . ... Mr Fisher's motion was then submitted. A fierce debate ensued, statements being freely made by one or two speakers that the accounts were in a shocking condition. The chairman and his colleagues combated those assertions, and assured shareholders that although there were discrepancies, there was nothing in the nature of financial lose. Mr Watson declared that as one result of am interim investigation it had been found that the shareholders were richer bv £II,OOO than they thought they were. The merits of Government versus private audit having been exhaustively discussed, a ballot was taken, and the motion'was carried bv a majority of 83 votes. Subsequenllv Messrs Sanson arid O'Meara, of Hamilton., -were appointed to conduct the nudit. a motion providitip; for Government insnecHon of tho accounts, if desired, nlro ■ N>inn pnespfl. The meeting wns nitil (ho re-audit is completed. . Throughout the whole trouble the directors hnv»> emnhneisod their d erf re to tret, the wWe position cleared up. and the? disclaim responsibility for innccurfliMes due to either the stafl or the auditor.