THE DAIRY COMPANY.

Timaru Herald, Volume XIIC, Issue 13594, 14 May 1908, Page 3

THE DAIRY COMPANY.

MEETING AT GERALDINE. IN FAVOUR OF LIQUIDATION. A- uieeting of shareholders and suppliers of ths'. South Canterbury Dairy Company was held at Geraldine yesterday afternoon, when about twenty persons were present, including the chairman of the company (Mr A. Beck). Mr N. CauVpbell, a member of the diiectorate of the company, presided, and read circulars explaining the *p"^'t' on °f 'he company and the balance sheet.

Mr Beck said that instead of having a debit of £4 odd as shown by the balance sheet, the company were really £SOO to the good. Refeiring lo the perpetual discontent between the "wet" and "dry" shareholder, he said the only satisfactory way was for the suppliers to buy the company out- and run the. business on eoopetative lines. Personally he did not approve of Mr Melville Gray's scheme, as the preference shares at 10 per cent, would kill the concern. Under his (Mr Beck's) scheme, the suppliers, by holding themselves personally i esponsible for £SO each, could carry on the whole business without any trouble, and with the aid of a mortgage they could do it with £25 each in cash. Th:« would of course mean liquidation, and under the "grouping" system. the suppliers at. each cream;-rv would only be Habit! for £3OO.

Mr J. Wright. who had guaranteed cows for the Woodbury creamery two years ago. said the directors made a big mistake'by closing the Woodbury creamery and spending a lot. of money in opening the cheese factorv en the Pleasant Vallev Road. Tlu< chairman '.-aid this had been done as the picsent manag.-r (Mr Cra'.gi had plans ready for starting himself in op-pii-it'ion to the company. A Mipplvr .-aid that the purciia-e •■< Mr Craig's business had not put any thin- in'the pockets of the suppliers. In answer to a question abotu the sale at £lO of ihe site of ill-' Geraldine factory, tht: chairman said thi-j was in accordance with the terms of the original purchase, which stated that in the evt-nt of th- company failing to carry on, the.

site wu,s to be sold back lr> the- seller at the same piice as the company had given him for it. With regard to the relative profitableness of cheese, and butter, th.* chairman said that for the past four or five years chew.e had been bringing higher prices than butter but on the other hand the company had got a.s high as 15Ci5 ■ a cwt for one shipment of butter last summer. The next, shipment went down to 125s and the next 112s. A general discussion then took place, during which it was stated that the amount of Mr Gray's guarantee had risen from £SOO to '£6ooo. La si year it was reduced by £SOO. It. was also staled that. Geraldine came second in the cpuantity of milk supplied to' the company's creameries, Temuka being first. Mr Craig said that most of the Geraldine suppliers weie non-shareholders. Finally Mr R. Rnowlea moved, and Mr Heney seconded, that in the opinion of the meeting the best, .course would be for the company to liquidate.