A STORMY MATING

Waikato Times, Volume 87, Issue 13270, 28 August 1916, Page 4

A STORMY MATING

DISAUSFiED SUPPLIERS. EUREKA MANAGEMENT ATTACKED. OVERRUN. TOO SMALL.

.Mr -Jones regretted that owing to the desertion of suppliers the company was in a precarious position. The cause for !iiis desertion was, however < the administration, which hnd been at fault. The company was now too small to earrv on successfully. There were only a few suppliers left and what revenue was earned was all eaten up in expenses. At the last meeting he moved that the company -bnuld plate ; is l'ar-lory under offer to -<;me larger concern. Although a motion had been carried to this effect nothing had been done. Mr Bellamy said he was very muni '•urnrised at the attitude adopted Mr Jones. At the Inst annual meeting the latter gentleman eulogised the company as one of the best little concerns in the country. Mr Jones' present attitude was, therefore, unaccountable. Mr .Tones: T am not going to keep en supplving and losing money as T been doing.

Experiments Too Costly. Mr Mai-ilon said there were rumours that certain of the company's suppliers uere in the habit <i takng boxes of butter into Hamilton "lid selling it wholesale to friends. This was unfair to the retailers. The speaker accused the management of mal-administration. He believed that there was never more than 10 per cent of moisture in Eureka butter, whereas Mr \ alentire. Government expert, said the percentage of moisture to bo aimed nt was lo per cent. If this standard had been reached the company's over-run would have been 20 per cent instead of 14 per cent. It was very nice to knowthat their manager could win cups and medals for butter making, hut these experiments should not be carried out at the expense of the suppliers. Tt was computed that the experiments had cost the company something like -£9OO. The speaker quoted from the balance sheet of the Kaitaia Company, which was a home-separator concern, right away in the far north of Auckland, which showed that it had earned—Hd per lb more the whole season than the Eureka company, which was of about the same size, and operating in a far better locality. In the north there were no roads.

Mr Jones blamed the manager for the reduction in the over-rum^The manager was largely at fault. He had too much sway and was too much pampered. Mr Bellamy said there was little donbt that the over-run was low—prnbnWv the lowest in New Zealand. Both Messrs Muleabv and Bellamy took exception to Mr Jones' perspnal remarks in reference to the manager, and at times the proceedings became very animated.

While the hubbub was proceeding £ supplier called out, "Why don't you visit the factory a little oftener yourself, Mr Jones, and look into tilings; you are a director." Directors Chiefly To Elanie. Mr Ramsden said he did not blame the manager so much as the directors •for the present state of affairs. They were the custodians of the supplh rs* interests, and they had not been true to that trust. The manager should not be allowed to underimpregnate the buti ter in the way he had been doing. The directors and the suppliers should have j some say in the matter. Anybody could make a good butter at a high ' cost.

Mr Mulcahy said the Kaitaia Company must have made its high prices by selling locally.

Mr Marsden said that no more than 10001b was sold locally by the Kaitaia Company. The New Zealand Dairy Association had even obtained a higher price than the Kaitaia Co. Mr Clarkin considered the Eureka Company had obtained as high a price on the London market as'anv company in the Auckland province. Mr Marsden : I don't believe it sir, and your balance sheet does not show

iL / Mr Clarkin : It's a fact, but I am not going to argue with you. Mr Ramsden said there was another thing he wanted to mention. The assets of the Company were greatly overestimated. The balance sheet showed also that although they bad been paying off £250 yearly for six years, they j had at the present time £IOO less security than six years ago. The speaker said he understood that the stores were also considerably over-valued. The factory and plant were vah.ed at £SOOO but they would bring nothing like this if placed on the market.

Mr Edgecumbe quoted the auditor's report in substantiation of the correctness of the figures.

Directors at Loggerheads

Mr Jones said lie was glad Mr I?amsden bad spoken as lie bad. Tliat was tlft place to air grievances, and not in the roadway after tbe meeting was over. Tbe directors should have built

a brick factory to start with. He (the speaker) had advocated a wooden shell of a building, but he was not lieeded. Mr Clarkin : You all know Mr .Jones, gentlemen, and we cannot take him seriously. The proposal to erect a brick factory was sanctioned i>y the suppliers themselves. Mr Marsden : The reason your suppliers have heen leaving is because they driven away. I Chairman at this stn</» I'ut the jption of the renort and balance fcKieet. to the meeting. Mr Bellamy Weconded the motion, whicli was carFried. I Some difficulty was found in getting candidates for the directorate. Mr Ramsden stating that he would not accept a posit'on at any cost. Eventually Messrs H. Lock. T.eish, Bellamy and Mnlcahy were appointed. Mr ]?. English was reappointed auditor. The meeting carried a resolution authorising tljfc directors to charge the wholesale requiring butter