WAIROA FREEZING WORKS

Poverty Bay Herald, Volume LX, Issue 18249, 18 November 1933, Page 16

WAIROA FREEZING WORKS

_ I SHAREHOLDERS MEET

COMMITTEE ACTIVE I (Herald Correspondent.) An informal meeting comprising about 50 shareholders of the Wairoa Meat Company was held at North Civile on Thursday afternoon to deal witli the present position of the works, and, in view of the forthcoming annual meeting, to take steps to secure nominees for the directorate at the election on December In. Mr T. L. Piiwdrcll, who convened the meeting, detailed the'position since the destruction of the works and what had taken place since then, with a view to reconstruction. Mr G. I). Tod was voted to the chair, and Mr Powdrell, in opening the meeting, said that for some time the shareholders had become quite fed up with the inactivity displayed. lie, for one, felt that the directors did not possess the confidence of the shareholders and by endeavoring to sell they had undoubtedly lost a good deal of the support of the farming community. It was certain the farmers could not carry on profitably without the works, and they should do their very best to have them reinstated. One thing that impressed the shareholders was that two directors were to receive a certain sum for winding up the company, and this did not appeal to the farming community ns being in their interests, whilst: the shareholders would have to wait 2o years for their return for a portion of the capital they had invested. The speaker referred to the heavy loss that was being sustained by farmers in transport and grading, while

all this time the directors had noi ,-alled a meeting to study the position, and it was very deplorable that they

should allow the position to drift so

far. Originally, the works were built for the farmer and there was no doubt that if they were again reconstructed it would greatly assist in restoring the goodwill and credit of the whole district. After dealing with the position of the local bodies in the district, the difficulties of transport, and the loss to the State, the speaker went on to say that the only remedy was for the shareholders to elect a body of directors in whom they had confidence, lie suggested the formation of a committee to secure suitable men for directors, to have a scrutineer at the annual meeting, and to take every step possible to bring about a satisfactory solution. DIRECTORS J)EFENDED

Mr. R. E. Barton put a defence on behalf of the directors, stating that Unreason few meetings were lieul was to keep down the expenses. He lock exception to Mr. Powdrell using the word “frustrated” in his circular, adding that had the directors wished they need not

have consulted the shareholders in the matter of selling the works,, for they had the power to do so. He world never consent to the works being rebuilt until they had finance which provided a reasonable margin of safety, and

until that was in view lie would not consent to reconstruction. Mr. Powdrell asked Mil Barton if lie could justify the action of the directors in trying to sell the, works and expecting shareholders to wait 25 years for

payment? Was Mr. Barton still in favor of selling? Mr. Barton said he could see no hope of carrying on, much as lie regretted it, and he thought the oli'er of purchase

was very welcome. Mr. Powdrell, in reply to Mr. Wood, said that his circular was not framed with any vindictive spirit. In reply to Mr. M. D. Chapman regarding the sum to be paid to two directors after the works were sold, Mr. A. T. Carroll said he was aware that if the works were sold two local directors would be appointed who were also to endeavor to reconstruct and the fee would he for acting on the board and watching the interests of Wairoa. He suggested that those present should do their best to assist the directors in every way and the farmers should elect a strong man to go into office determined to re-establish the works. Mr, Smyth said the rebuilding of the works was a matter of finance. A sum of £45,000 at 5 per cent, would need £2500 per annum in interest. He was certain this district was losing £IO,OOO per annum through having no works and last year alone the loss must have been nearly £20.000. Was there any reason to lose such a largo sum when it could he saved by paying £2500 a year in in interest? In reply to Mr. P. G. O’Kane, Mr. Powdrell said the sanction of the Meat Board was necessary before the, works could he sold to vested interests and lie doubted if this permission would he given. Mr. J. M. Taylor moved that a committee for the purpose of selecting candidates to oppose the retiring directors he set up as follows : —Nuhaka, Mr. G. I). Tod; Morere, Mr. M. R. Shaw; Waikaremoana, Messrs. R. Tapper and P. ,T. O’Kane; Cricklewood, Messrs. J. IT. Smvth and 11. G. Gibson; Wairoa and surrounding district, Messrs. A. G. Dawson, T. Harrison, and T. L. Powdrell Mr. M. P. Chapman seconded the motion, which was carried unanimously. A vote of thanks to the chair was earlied unanimously.