NEW BUTTER FACTORY.

Poverty Bay Herald, Volume XLIX, Issue 16042, 1 February 1923, Page 6

NEW BUTTER FACTORY.

Fait KIA ORA COMPANY. A FORWARD MOVE.

[ Poverty Bay will shortly' have a new , butter factory. The matter was lengthily discussed at the half-yearly' meeting of the shareholders of the Kia Ora. Dairy Co-operative Company at Makaraka today. Eventually it was decided to build a new factory. The matter was introduced by the chairman, Mr. G. R. Moore, who said that the present site was .too small, inconvenient, and too expensive to work. They had a good amount of cartage, whereas if they had a site close to the railway they might have things delivered by train. There was too much strain on tlio engines, and {hey. (the engines) went out of order very much more than they should if they had a proper factory. They could not enlarge their present factory an inch, as there was no room. The way their machinery was situated caused waste of cream of nearly 1 per cent. Instead of pumping cream from one machine to another it should go by gravitation. Continuing, Mr. Moore stated lie had taken an option over a section. There would be very little machinery required for a new factory. There had been £2700 spent on the old factory during the past 18 months. They had four times as much cream coming in now as at the time of the last meeting held in the Matawhero Hall some years ago. Last year they had manufactured 547 tons, while this year they hoped to put through over 800 tons. Although they were puttipg through this* latter quantity they were not doing it satisfactorily, as they were cramped for room. The new factory would cost approximately between £7OOO and £BOOO. Mr. Angland said that there was the nightmare of a flood. If the factory was shut for three days what would it cost?

A voice: £3OOO. Air. Haisman (a director) stated he was thp first to bring up the matter at a directors’ meeting. When they were only doing 200 tons of butter per year the cost from a flood was not great, but if t ; he factory had been closed last week it would have cost £SOOO. With regard to the loss from waste, takine this at x per cent.,, the cost was £750 per year. Even if they enlarged the old factory they would not get away from the floods.

The chairman said the company’s position was such that they could afford to take more risks than before, but they did not intend to take risks.

Mr. Jordan suggested that if they wanted a new factory shares should be taken up. The chairman said he would be satisfied if 3000 shhres were taken up..

The chairman said the directors were quite capable of finding the money if the erection was sanctioned.

Mr Haisman then moved, in accordance with his notice of motion, that the basis of 1501bs. of butter shall be deemed one cow, and that suppliers shall be allotted shares on the aforesaid basis.

In explaining his motion, Air. Haieman said that every 1501 b. of butterfat that went through the pffice would be deemed one cow. If a man only put in 1501bs. of butter-fat and had two shares, he would not be called on to take up. another share. . It would be compulsory for eveiy shareholder to take < shares on this basis. This was an.eco-' nomical measure. >

The chairman said they expected to raise £3500 from this system. They running very much under their limit at the bank, and last period had made £342 owing to their working account being in credit. It would increase the bonus, not stop it. A man would receive 6 per cent, on shares as soon as they were paid up. Butter was always a marketable article. Air. Gallagher; We must have a new factory. A voice: How are we going to finance it?

Mr. Gallagher (banging his fists): Damn the financing! Captain Pitt pointed out that Mr. Haisman’s notice of motion was. really irregular, as it had not been circulated amongst all tho shareholders.

The chairman said the notice of motion was right according to the articles.

Tile manager of the factory, Mr. Hewitt, said they either had to spend £3500 before June, or else commence building a new factory within three months. The present factory was not economical to run. - Even if they spent the £3500 they would not- get a factory. There were a large number of savings which could ho effected. The present was a wasteful factory. If they did not carry the proposal for a new factory today it would bp.-too late. Captain Tombleson: And there is always tho. fear of a flood. Continuing, Mr. Hewitt said that if they had a flood they would not bo able to manufacture butter until the factory -was properly cleaned out afterwards. Tho shareholders would lose £7OO per day, and if the factory was closed for a fortnight tho amount that they would lose would be considerable. Mr. Hickey said they were one of the soundest-financial institutions in the Bay. He did not favor new ventures, if they were unnecessary.

The chairman said that sooner than waste his time he would resign. The directors did not >vant to force the matter on the shareholders. The directors would not spend a ’ penny that could be avoided. By going into a new factory the present’ waste would be saved. Captain Pitt pointed out that the saving in the amount lost by waste now would pay off the cost of tho new factory. Mr. M. Murphy also' spoke in favor of a new factory. The chairman said that the directors considered that the cost of the new factory should not be more than £7OOO or £BOOO. The building was estimated to cost £3500, the land, and property on it £2OOO, and the machinery taking up the balance. Tho motion, that the' company build a new factory, which was moved by Mr. Patterson and seconded by Mr. Saddler, was then put to the meeting, and carried, there being only one dissentient. Ma-. Haisman’e motion was then carried with one dissentient.

The next motion was moved by tho chairman, that an alteration bo made in article 6, so that the deduction of 5 per cent, will read -5 per cent, or such smaller-rate' as the directors may determine. This was seconded by Mr. J. Boyd Greig. The motion was carried unanimously. Mr. Moore then moved that'the capital of the company be increased 'to £20,000, by the 'creation of 10,000 new shares of ‘£l each.—-Mr. Doyle seconded the motion.

On being put to the meeting the motion was carried.