A SHAREHOLDER'S COMPLAINT

Dominion, Volume 13, Issue 311, 25 September 1920, Page 7

A SHAREHOLDER'S COMPLAINT

Sir,—Tlie dairy farmers have protested very strongly against the action of the Government in restricting the price of ■butter, claiming that they are entitled to lilt current price obtainable in England, and thai they are unfairly treated. L an: the unfortunate holder of .1 few shares in a dairy company, which were taker, up some years ago to enable the company lo commence operations, and thereby assist dairy farmers. For many years the company paid no dividends, but as suppliers were only getting moderate returns for their products, exception was not taken .to that. However, I have received a copy of the report and balancesheet of the company for the year ending June 30, showing balance from profit and loss account, to appropriation account, ,£4151 lis. 5d.. out of which they propose paying a dividend of 2i per cent., on a paid-up capital of <£15,372! —,£384 odd— and distribute as a bonus to suppliers the balance available, /l'lie dairy farmers evidently consider that '-h per cent, per annum "is a fair return to give to those who invested their liioney to assist t!*-'iu, and yet they complain of the Government m-otecliug the public from being exploited by them. I have tried to get tlio company in question to dispose of my shares, but they say there' is no sale for tli,-oni, which is not surprising. No doubt fhe compafiy's object is to induce the shareholders and tanners to become suppliers, but w/i cannot all be suppliers, and as the company required the capital to enable it Ij commence operations, surely it is reasonable to cxpect them to pay a fair rah- of interest for the capital so supplied, or to be prepared to repay the capital I in the open market money is worth ,at present C to 7 per cent., yet because tlv-> company has the power to keep the-capital they consider it fair to pay 24 per cent, pei annum-for their money. l"'fail to sec the. justice of their attitude, nnd it tends to show how grasping the dairy farmers are. Surely, they cannot reasonably resent the Government controlling the prices of their products when they control the price paid for thencapital to this extent. I enclose a copy of the. balance-sheet referred to.—l aui, etC '' • ' ' • SHAREHOLDER:-