BACON INTERESTS

Dominion, Volume 10, Issue 2919, 3 November 1916, Page 4

BACON INTERESTS

BIG AMALGAMATION SCHEME

A FARMERS' VENTURE

(By 'JL'ekgraph.-Speeial Reporter.)

Palmerston North, November 2. A meeting of various dairy companies was held at tho showgrounds to-day to discuss tho torms and conditions of joining the newly-formed Now Zealand Farmers' Co-operativo Bacon, Meat, and Packing Company. Mr. W. Fisher (Cartortou) was votod to tho chair, and tho gathering was considered to bo well representative of the dairying interests.

Mr. H. Forsyth (Eltham), one of tho principal speakors, said that recently there had been an amalgamation of several big bacon interests. Ho had been connected with the South Taranaki Bacon Factory, which was now in tho amalgamation. Tho largor tho operations of any concern, 'the cheaper it could bo run, and thereforo the larger concerns could return a greater percentage of profit to tho producer.' That was the idea behind'tho amalgamation. There would bo advantages in market-

ing, buying, carting, and dealing with the raw material and tho by-products, and tho exportable surplus could be better dealt with. The new concern would' be run absolutely in tho intorests of the producers, who could have tho use of Dimock'e complete plant and organisation, besides which tho company was leaving £91,000 of sharo capital in the concorn, and the shareholders would not bo called on to pay up in hard casn at onco. It was the wish of the promoters that tho dairy companies should become shareholders. Tho industries of dairying and bacon-curing

were closely associated, and tho investment should be a good ono for the dairy companies. Mr. W. D. Powdrcll spoke of tho financing of tho new company. There were 86 dairy factories in the district, and if each dccided to support the company they would only be asked to pay 4s. per snare for a considerable time to coma. Tho basis would be that each dairy company would bo expcctod to take up ono sharo per ton of oheeso output and two shares _ per ton of butter. Tho threo companies in tho new concern (Diiuock's, Waikato, and South Taranaki)_ had! £121,000 in the business, of which £93,000 was paid, so they would bo starting off i|i a good financial position. They wanted _as many farmers as possiblo to como in.It meant that there would bo only one buying concern, and better organisation and more economical working. Mr. J. Marx, Mangatoki, spoke .in favour of the scheme, that at present the trade was divided. Mr. Banks (Waikato) also spoke for tho scheme.. ... .

It was further stated that _ if the wholesale factories in tho Wairarapa, M&nawatu, and Rangitikci districts camo into tho venture they would require to tako up 15,000 shares, and that as only tho nominal sum of 4s. per share would tfe payable, tho whole of the districts could join for £3000. That amount would give them entry, and tho shareholders would have tho benefits of tho concern's conncction, brands, and organisation. The schomo was on the wholo approved by the meeting.