CHOICE OF FACTORIES

Poverty Bay Herald, Volume LXIV, Issue 19371, 8 July 1937, Page 12

CHOICE OF FACTORIES

BUTTER-FAT SUPPLIES DECISION h\ r MANAWATU SHAREHOLDING BASIS (Pur Press Association.) PALMERSTON N., last night. Delegates from the dairy companies manufacturing butter in the Manawalu met the Executive Commission of Agriculture at Palmerston North to-day to come to decisions of farreaching importance to the industry in the district. The resolutions were in respect of the desire to reduce the overlapping of cream lorries and compulsory shareholding by suppliers. The effect of the decision regarding the supply is as follows- (1) Farmers will be given the light to supply one of two factories; (2) factories within seven miles of each other will be considered as one unit so that suppliers, under certain circumstances, will have the choice of three factories; (3) each factory will have the right to collect from the present suppliers outside its area; (4) the agreement will operate? for a year from to-day. Any company breaking faith is liable to a I ’ *

penalty of £IOOO. As regards compulsory shareholding, it was agreed that this should operate as from August 1, 1937, the basis to be between £1 share for every 1001 b, butterfat and £1 share for every 3001 b. butterfat or its equivalent, exemption from shareholding only to be obtained on religious grounds or by those supplying under 150011). of butterfat a year, but these suppliers are to bo required to pay a service charge, the small supplier ahyays because his supply is regarded as a nuisance, but the religious objector only until lie lias paid the equivalent of the calls on the share capital. The deductions to be made for share capital were fixed at from j,d to jd per lb. butterfat up 1o a minimum of 50 per cent of share liability. The executive commission accepted the .decisions.