MEATEXPORT COMPANY

Dominion, Volume 8, Issue 2431, 9 April 1915, Page 8

MEATEXPORT COMPANY

' INCREASE OF CAPITAL

BRANCH WORKS SANCTIONED

i Proposals for,inorease of capital with the object of erecting-branch..work's in the West Coast district, near Marton, were considered by an . extraordinary general meeting of shareholders of the Wellington Meat Export Company yesterday. The proposals were all agreed to. Mr. • W.G. Foster, chairman of directors, presided, and about twenty shareholders were present. The chairman, after referring to the circular issued to shareholders (the text of which was published yesterday), submitted the following resolution:— "Notwithstanding anything in the resolutions of the company passed on August .6, 1902, to tne contrary, all unissued and unallotted shares of the company may be dealt with by the directors in all respects as though the said resolutions of August 6, 1902, had not been passed, and the said resolutions of August 6, 1902, shall be and be deemed . to be rescinded in so far as the said resolutions affect such unissued and unallotted shares." He urged that the resolutions on the issue, of extra shares - imposed by the rules' of the company were no longer desirable. The motion was oarried without debate. The Main Question. Mr., Foster then mo\ ed the next reSolution oh the order of busiress: . "That the capital of the company shall ( be and is hereby further increase! to £300,000, by the creation of 20,000 new shares of £5 each, ranking for dividend and in nil resjpucts pari passu with the ex- : isting •ordinary shares of tho com- ' ' • pany." In support of this resolution, he said that tho ! proposed increase of capital was in ccinnection wth the erection .of new work,s at Kakariki. The company was quiteable without extraneous aid to con street the new works, but it had ; heen thought desirable that the settlers in the district supply at least some of tine extra capital. The response • to the appeal had not been stinted. The • policy, of tthe board had always been previously' to concentrate at the port of shipment, as being the most economical fo.r production, and on this ■ general idea, the board had not altered its opinion- But circumstances ■ had • changed, a>od. settlers were demanding facilities nfiarer at band. • In view of this and of the certainty that if this company did not satisfy the demand new work's Vould be built by extraneous'capitally and the very important ; supply fromf'the West Coast would be drawn upont heavily he thought the company would I e justified in erecting branch .workjs.. 1 . Agalnirt Decentralisation,' Sir Walton ißuohanan 6aid: there wag no difference) of. opinion among the directors asl to\the need for increased ■ freezing as, to the productive capacity; of '.the-'West Coast district, but when' it; was realised .that increased, capacity had been provided last year at Longburn and Wanganui, and that new freezing companies were to be set up at, Taihape and Feilding, it meant that ■ three new works were now proposed in the West Coast districts, as well as thfe additions to the capacity of existing works'. This season waa abnormal by reason of the shortage,of shipping, - which made the need for more freezing power more urgent than would.be permanently the case. He was of opinion that the expenditure, of '£75,000 which 5 * would be the minimum • expenditure possible for new, works ;might not .prove to be justified. He had the - gravest J doubts—more than -do'ulrts—that ;.suffi■y would not 'he 'available " for ' this extra freezing power." : He was very jv-sorry that he did not see eye to eye jp With his fellow' directors, but every in-' < flividual.director', had his own separate •• duty, .artd.:for^liis:;6wn : part he could . sro how,'this extra expenditure ■ K could.,be -incurred: without prejudicing . the interests, of the* present sharehold- ,.. ew.He' Bad travelled extensively in x other meat,producing.countries, and his observations impelled him to the conelusion that success compan-> . ies such as ought to concentrate in a centre in .order to ensure the most economical production possible. He was therefore : of opinion that the company could extend its operations with greater , advantage in Wel- • hpgton than by starting new works at Kakanki. It was no doubt true that the local feeling on the West Coast' ought to be considered, but after giving, as he thought,- due consideration to this, ho was'of opinion that the pro--ject to erect new -works at Kakiariki would not prove a profitable.one, sec- : ing that there would be keen rivalry''for ' the business',of the -West Coast;

The Country Point of view. M [- E - Newman, M.P.v a director on' the board, representing the West Coast said he agreed /with much'that Sir' Walter Buchanan,'.had said. ' He realised r - the advantages to'be gained by concentration, and had it been possible that the extra capital could bu spent in Wellington he would have liked to see . it so-'spent. But'what was the position? All the works on the West Coast were increasing capacity, and new works were being.asked for,' and What was the reason for this? The reason why settlers asked for works near at' hand was to save the deterioration involved in long train carriage , of live Btock. And if this company did not establish new works at Kakariki, new works would be put there by another company, which' would tap the supplies of live stock/With the East Coast supply tapped by Waingawa, and the West Coast supplies tapped by possible new .works, what was going to happen to the company? He submitted that there was no alternative for the shareholders. They mußt put up the new works. He believed the supply of sheep and lambs for freezing from the West Coast would increase by 50 per cent, in e very few years, when settlers tired of the arduous occupation of dairying. He did not believe that the Feilding works would ever start, and ho was very doubtful whether the Taihape works would start. The resolution .was agreed to by 12 votes to 5. , , , Contingent Resolutions. The following resolutions were agreed to without dissent:— "That of the said increased capital, of 20,000 shares of £5 each, 7000 to 10,000 thereof be offered to settlers in the Bangitikei and Manawatu districts at a premium of ss. per shore —settlers in those districts having undertaken to take up the same. ' "That of the balance of the increased capital including the unissued and unallotted: shares of the former capital, 5000 to 8000 shares be of!or.id to tbe shareholders of the company existing at the time of the passing of these resolutions for the jjeriod of two calendar months

NEWS AND NOTES,

■without: tho payment of a pre-->mium.-; ( a ) --That upon oil of the said' shaies there shall be payable a deposit .of 10s. per share upon application and ss. per share upon ment.-;^-"(b)'Tljat upon all tho said 7000 to 10,000 shares offered to settlers Jn . tbo Ttangitikei and Manawatu districts there shall also be payable >. upon application 2s. 6d.'per share, v.-;o6iug.:lialf of the said premium of : . ,55., per, share. ■ "(c) That the balance of the premium,'namely, the sum of 2s. 6d. per share, to he paid by the holders of the said 7000 to 10,000 to be issued to-tettlers in the Bangitikei and Manawatu- districts, shall be paid when required by the directors. "(d) That future calls upon fall of the said shares shall be payable in amounts of not exceeding ss". per share at the discretion of the directors, at intervals of not less than one calendar month, twenty-one days' notice at least to he given of • each call.

"(6) That after the expiration of the said period of' two calendar months mentioned in number 'four of these resolutions, all or any part or parts of the balance of the shares 1 of the company may bo offered ;to •shareholders and to the public .for such period or periods as the-direc-tors may determine, with or-with-out the payment of a premium." This concluded the bu. iness ' of the meeting.