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Taranaki Daily News, 23 July 1929, Page 10

PAYING FOR NEW FACTORY. The discuseion on the balance-sheet mainly centred round the system of payment for the new butter factory at Stratford. Mr. M. Urquhart sought advice as to the respective voting powers of butter and cheese suppliers, but was told there was no distinction in the register. Mr. Urquhart: You have allowed nonshareholders to supply cream, and the result is that to-day butter suppliers have little voting influence at this meeting against the cheese suppliers. The , chairman said he could not say off-hand what the proportion was as between cheese and butter suppliers, but he thought there was no antagonism between suppliers. Mr. Urquhart asked if it was proposed to saddle the whole of the suppliers to pay for the new factory. If an equitable arrangement to meet the expenditure were not made an injustice might be done to cream suppliers.

Mr. H. Johnson inquired if the deduction of id per lb. to pay for the factory would be taken off all classes of butter suppliers. The chairman: If individual branches decided to change over from butter to cheese the deduction would still apply. The directors have not yet reached a decision on the matter. Mr. Urquhart: I take it that if cheese suppliers turn to butter they will bear the deduction.

The chairman: I don’t think so. You must remember that in the past the whole of the company’s buildings and fixtures were provided and paid for by the cheese suppliers. Mr. Urquhart: If all suppliers were shareholders -ou could have accumulated a reserve sufficient to pay for the new factory. Mr. H. J. Kaye: What about those who purchased old shares? Have they not helped to pay for the old building? The chairman: Most of the property of the company is virtually held by the cheese suppliers, who built the original buildings and paid for the plant. °At this stage the chairman asked shareholders to observe the rules of procedure. One man could speak only once.

Mr. Kaye: The Huinga factory was built and* paid for by Huinga people; why have all suppliers got to pay for the Skinner Road additions?

Notice of intention to that the directors be recommended to deduct id per lb. from all butter-fat' passing into the new butter factory was then given by Mr. Johnson. Mr. J. B. Hine asked for a definition of the position if butter men chose . to revert to cheese manufacture. Seeing all the old buildings were paid for, would they have to take up fresh shares or come in free? He also asked for information regarding the chairman’s statement that only £lB was paid by the company in interest last year.The secretary replied satisfactorily to the latter part of the query, and several speakers endeavoured to explain the first part. In reply to Mr. L. Marfell the chairman said* the directorate could require distant suppliers of cream to take up shares, but it was questionable whether the policy would be a good one.

INTERESTS OF BUTTER SUPPLIERS

A compliment regarding the. way in which they had carried out their duties wag paid to the chairman and directors by Mr. J. B. Norris, Puniwhakau. They had done the best in their power, he said, but he thought they might have done better for the butter men. He understood that during the past season the directors had received an offer of Is 5-Jd for the months of December to May inclusive, and he thought the dire .4ors had been unwise in refusing that offer. A voice: We know that now. “I’d like to know who the directors were—l’m not being personal (laughter) —who Ayere instrumental in having that offer refused?” asked Mr. Norris. The chairman: It was done by a majority of votes on the board of directors.

Mr. Norris: Well, they assumed a big responsibility in turning down such a favourable offer.

Mr. Norris complained about the delivery of cream. He had brought the question up last year and the directors had promised to keep it in view. “They are still keeping it steadily in view.” he said.

A voice: ’ There's a better time coming! The grading of cream into finest, first and second grade also engaged Mr. Norris’ attention. Finest should be eliminated and the other two grades stiffened up, he said.' He suggested the directors might make representations to the Government in that connection.

Replying to Mr. Norris’ questions, the chairman stated that a board of directors was useless unless the suppliers were prepared to abide by its decisions. It was no use trying to blame any special men for the decisions of tJie board.

The grading of cream was not a matter for the directors, but he understood that the Dairy Division had decided to cut out finest grade during the winter months. As far ‘as the delivery of cream was concerned, a daily delivery for two months in each year had been arranged. The report and balance-sheet were adopted. The motion previously mentioned by Mr. Johnson, recommending. the directors to deduct id per lb. from all but-ter-fat going through the new butter factory, was carried. ELECTION OF OFFICERS. The retiring directors were Messrs. J. B. Richards, M. Gernhoefer and R. D. Milne. In addition to these, Messrs. J. B. Hine and T, Sullivan sought election. On a ballot Messrs. Gernhoefer (95 votes), Sullivan (84). and Hine (82) were declared elected. Mr. Richards secured 79 votes and Mr. Milne 51. On the announcement of the ballot, Mr. Hine rose to move that a record of appreciation of Mr. Richards’ services as chairman of the company be placed on the minutes, but Mr. Richards asked him not to put the motion. “This meeting has already expressed its ‘appreciation’ in the ballot,” he said.

Mr. Johnson wished to move a vote of thanks to the retiring directors. “Not for me,” said Mr. Richards. The other defeated director, Mr. R. D. Milne, was voted an expression of appreciation, it being stated that he had