TATUA DAIRY COMPANY

Waikato Times, Volume 94, Issue 14756, 21 September 1921, Page 7

TATUA DAIRY COMPANY

ADJOURNED ANNUAL MEETING. AN ABRUPT TERMINATION. The annual general mceling of the, 'fatua Co-operative Hairy do., Utd.. was j continued on Monday evening, the at-! tendance being equally as large as on the first day. Mr W. F. Seifert ['resided. At Ihe opening Mr Seifert expressed the hope that those who wi.-hed to pass comments on the report or balance sheet would do so in as brief a manner as possible. He eonsidered lhal lie was in his rights in slating Dial tie thought a considerable amount of time was i wasted Ihe previous meriting. .Mr Uundon wished lo know if that! remark pertained lo him. He consider- j ed that the time wasted was caused j through the delay in answering the various questions. Sale of Store. Mr Uundon, questioning as to the disposed of Hie store, wished to know ; what alterations had been made In Hie i slorc, and what cost lias been received through Hie alterations. "Notwithstanding various questions last meeting," lie said, "I ask this question that we may know why you, as chairman, are justified in stating that £302 has been made on Hie sale. 1 wish lo know whether there was any independent valuation of Hie freehold (i.e;, land and buildings) prior to Hie sale, or what steps were taken to find out?" The chairman; "I dnn’l know any-I tiling about the early history. The | book value was taken and Hie slock was taken at its valuation. I consider that Hie price obtained was as good as could he got. An investigation committee was set up and, after going thoroughly into the matter, I personally was satisfied. Mr Uundon: "You were chairman of Ihe committee, and at lhal time you gave us to understand that Ihe financial position of the company was in a state of chaos. T say Hie selling of the freehold was never discussed. I never heard mention of'disposing of the. freehold.” The chairman; “Or not to dispose of it?” Mr Uundon: "The bank declined to allow (he running of a store, but certainly not the ‘freehold.’ 1 say that Hie recommendations of Ihe committee were not ( adoptoiU You Jeered at. them and considered Hie commit tec had pul in a considerable amount of time and had achieved no object. As the directors look Ilio responsibility of disposing of the freehold, I again ask did you get an independent valuation, or if no| how did you arrive at Hie valuation?” Mr tunes: "Was not this property tendered for?” The chairman: "Yes. Mr Hilling’s tender was the only one received.” j Mr Uundon: "Again i have to ask, I hlid wo get an independent valuation?” The chairman: "I don’t know.” Mr Uowry: "As far as I can remember. no outside valuation was received; it was. I believe, based on hook value, C3OO over and above value of store and 1 property on that dale." Mr Uundon; "What have the alterations cost since the purchase; the books should record this?” Mr limes; "I think they wore done at the same time." Mr Darrell: "The store additions were done at the same time. Additions to the residence was done by Mr Marshall on a 10 per cent, basis.” Mr Uundon: “Now we’ve got it!— the old 10 per cent." The chairman thanked Mr Darrell for | Ihe information and invited any directors to answer any questions that they could. Mr Hart: “The freehold was sold on | hook value; no independent valuation was sought.” Mr Uundon: “I thank you; so about £IOO would be the value of the freehold. I consider it gross miscarriage on Hie part of the directors for selling il for that.” The chairman mentioned that some businesses wore not worth their book value. He considered good value had been obtained and that there was no need for complaint. Mr Uundon (to suppliers) : "The loss of Hie goodwill is a very substantial amount, and only by constant questioning have I been able to extract any information. It is your privilege to remove from office any directors who refuse to give information. The duty will shortly he given you. If I am unable to get figures supplied to me hero 1 shall have to gel them in a much more public manner.” Mr Uynch: “The secretary had to take over stock at invoice prices. Owing to a slump at the time ho sustained a loss of about £IOO to £l5O, which goes to swell a fair - goodwill. This lias never been taken inln consideration." Mr Darrell (to chairman) : “There is no reason to conceal Hie figures: Ihe cost of additions should lie supplied.” The chairman: "It is difficult lo gel exact figures.” Mr Uundon: “The books, as I thought, cannot hear investigation—no records have been kept.” The chairman; “The entries arc not explicit.” Further (catechising by Mr Uundon followed,- "hen information was forthcoming if-a I part of the investigation committee recommended that Ihe slorc ho sold, and others that buildings, freehold and all. ' Tim chairman mentioned that there was no mention of retaining the freehold. Mr Uundon: "This cornmiltee concluded at 1 in the morning: some were half asleep and did not know vvlial they were doing. I knew what 1 wiu doing." This discussion Ihen closed. General. Ati’ Uundon (turning lo suppliers): "I know of a new supplier placed on a piece of land by a director having reeeivrd an advance of £IOO. Ibis amount i lent on 2A cows—i.e., £1 1 I 0s pec cow —whereas Hie usual rim is £8 per row. Why this special concession ? Who is Hie man behind it?” He also mentioned lhal this supplier name mentioned) had an additional £2OO advanced to him to restock after sale. There was one man also in Ihe hall lhal night who positively said he was chased to accept an advance, whereas others were ignored. Was it not lime for a public j investigation ? As for Hie hills of sale, there was not a single one worlh Hie | paper il was written on. Due proviso i was that supplies from every cow must go to the factory. There was a supplier here lhal. nigtil who is miik--1 ing cows also al Te |>nj. This milk was not coming lo this factory. II was a | rolten slate of affairs for a public comj pany. The business had long passed beyond the ordinary farming director. | The linn 1 had arrived whm they must have men with business inhdleci al Hie j head. When (here was suspicion in I f]ic diallings limy became incensed, i •q.nok at Hie cow finance.” he conj tinned, “there is something rolten in j Hie administration : il is time to stir in ! another place; it’s got lo end. I nless | there is equal treatment from this night j fndti (.here will tic trouble." ! The chairman: "There are many i things taking up lime which are nol in the report. Regarding my position, il | is for the. suppliers to say whether I remain on the directorate, i shall send in rny resignation. I have done my level best to the company, and incidently I am out of pocket. I do nol

inlon<i to sit hero hour after hour without attaining any results.” Mr l.imiinn; "If I have overstepped my bounds 1 apologise. Yon have no njire right to he in the chair Uian ! have. You are no longer a bona-fide supplier to the factory. Under the j regulations no person shall - • | to art as a director unless so. Your | acting as chairman of directors is quite illegal. Von are liable to a penally of | £ 5 . ” The chairman: "I have ascertained lhal I am perfectly wilhin my rights, i look the trouble lo get legal advice. ! realise one solicitor says one thing, another another: I either want, to rigid matters or get out.” Mr Uundon: ".No person other than a bona-lide supplier shall he qualified Ito act. Who was il you sought advice ; fi mu. if I may ask ?” Tiie chairman: ”1 didn’t ask you, .did I?" Mr Uundon: You asked my advice, j I told you Ilial you were not elected legally, and that Mr Klaus was. 1 told you, further, that it would he an act of courtesy to Mr Klaus to extend the number of directors to eight. You said you would consider it. You, I suppose, i are still considering il ! You wrote me asking me to put Ihe business on a business footing. I told you that 1 was not going lo he used as a ealspaw to scratch information from file company and gel information and material to atlaek anyone, more especially directors. Never have I at any lime seen any records or asked anything about suppliers, shareholders, etc." Mr Uundon made some most serious allegations anent Hie shareholders’ roll, j and challenged contradiction. The secretary staled that not, one | vote, was over-allotted. Auditor’s Fees. Mr Uundon referred to the auditor’s fees, which wore regarded as excessive. A pungent discussion ensued, in the midst of which I lie chairman declared the meeting closed. Mr Uundon: Yon cannot without a resolution. 1 move that the Id bonus—(laughter). The chair at this stage was vacated, and within Ihe space of Iwo minutes liie hall was empty.