COSTLY COMPETITION

Taranaki Daily News, 23 July 1931, Page 12

COSTLY COMPETITION

TWO DAIRY COMPANIES.

NORTH AUCKLAND DISCUSSION.

“Before our representatives at dairy conferences attack the subject of overlapping, we should put our own house in order,” said Mr. Johnson at the annual meeting of the Maungatapere (North Auckland) Dairy Conipany on Monday. “Here we have the most flagrant case of the kind in the Dominion.” Mr. Johnson went on to say that the uuinber of suppliers to the Maungatapere Dairy Company had fallen from 171 in 1924 to 165 last season, while in the same period the Springhead Dairy Company, just across the road, had risen from about 17 to 30. He asked what steps the directors had taken to bring about amalgamation of the two interests. The chairman, Mr. J. H. Hayward, said that several efi’orts had been made toward this end without success. Inc Maungatapere company had arrived at

a very satisfactory boundary and cartage costs agreement with the Northein Wairoa. and Whangarei companies, m of this nature was possible wit i a coihpany with the North AdCklan conference. . ; “tile existence of tWo companies Imre is costing Maungatapere between £lo and £2OOO annually,” Mr. Hayward continued. .“We liaVe ample machinery for coping with the whole production of the district, and heavy double overheadcharges are quite unnecessary. Once negotiations wete iicafly completed, but unfortunately they broke “ own ; *. Mr T. Linncll: We could close thh factory to-morrOW if WO bought their interest out. - . , , ~ , . * Mr. A. Walker: IVhat do they want? Atr Linncll: About £/000. (Laughtei). Mr.’ A. C. MaiHiingtofl appealed to the directorate ’ io attempt again th'e

bringing about of such a desirable end as amalgamation, which Would fife ot very great benefit to all concerned. The , total gain would be very Considerable and well Worth working for. Mr, Cutforth: if we buy them out, what is to prevent them starting further down the road? .. , Mr. Mannington! It is hardly hkciy