DAIRY FACTORY’S TROUBLES

Otago Witness, Issue 3782, 7 September 1926, Page 13

DAIRY FACTORY’S TROUBLES

LIQUIDATION - PROPOSED. (From Our Special Reporter.) CROMWELL, September 1. A meeting of shareholders in the Otago Central Co-operative Dairy Factory was held in Cromwell this evening, the chairman of directors, Mr J. Ritchie, presiding. The purpose of the meeting was to consider a motion in favour of liquidation. After the balance sheet had been presented, Mr Ritchie made a statement' as to the financial position of the company. He said they had expected to have a struggle at first, but gradually, with the increase of business, to get on to a paying basis Last year they had made 73 tons of butter which was three tons less than they had made the year. They had at that moment 32 tons of butter at home which they could not sell except at a loss. He sugested that they pass the liquidation motion, subject to negotiations for the sale of the factory falling through. Mr D. Jolly said that the greatest difficulty they were up against was the gamble in the butter market at home. They had also been up against competition that was not altogether clean. He advocated negotiating for the sale of the factory. The Chairman pointed out that a motion for liquidation would block negotiations for a sale or amalgamation and be therefore proposed that the meeting stand adjourned for a fortnight to enable negotiations to be undertaken. This course was unanimously agreed to.