United Farmers' Alliance

Feilding Star, Volume XV, Issue 48, 25 August 1893, Page 2

United Farmers' Alliance

— * A general meeting of the shareholders of the United Farmers' Alliance was held in the Falmerston branch office yesterday. There was a good attendance and Mr F. Y. Lethbridge, chairman of Directors, occupied the chair. The Chairman proposed, That Article 9 of the Articles of Association, and amendments a, d, and o, be deleted, and the following sub-section be substituted therefor:— "That the capital of the- Association shall be payable as follows — that is to say : Five shillings (ss) per share shall be paid by each intending member upon his application in writing to the Association tor shares, and the further sum of five shillings (os) per share upon the allotment of such shares ; and the Directors may, from time to time, make such further calls upon members in respect of the amount unpaid on their shares as they shall think fit: Provided that no calls at any one time shall exceed the sura of ten shillings (10s) per share, and that no call be made within three months after the last previous call, and that no less than one month's notice be given of such call ; and all calls shall be payable at the office of the Association in Wellington, or at such other place or places as shall from time to time be appointed by the Directors for that purpose." He said that the Directors found that tha capital of the company was not sufficient to provide a good working capital to carry out the objects of the Association properly. It would be very much better for the shareholders to pay up 10s than to borrow from the bank. He did not think that it would be any great hardship for the shareholders to pay 30s three times a year instead of 15s. He had no doubt that if they had sufficient capital they would make their concern the finest in New Zealand, for it was only that which prevented them making the progress attainable. They would soon have a chance of electing new directors, as all those in office intended to resign and they would be able to place in office men of their choice to carry on the Association. Mr J. Cotter seconded the motion. There could be no doubt but that those who took up additional shares, and by the increase of capital enabled the directors to carry on in a better way, would reap the benefit by means of dividends and a bonus, as well as in other directions. Mr Wilson said it had just been stated that the great drawback was want of capital, but be thought it was because the directors, with a strange enthusiasm, had rushed into operations they knew nothing about. If they were wise they would confine their operatioas to enabling farmers to sell stock cheaper, to co operate so as to secure better markets for wool and other produce, and generally to assist the farmer, and would accomplish all that was expected. Mr Donald Fraser said the question that struck him was whether it would be legal to pass a resolution which was a direct breach of the contract entered into with the shareholders when they took up shares. Mr R. B. McKenzie supported the resolution. He had every faith in the alliance, and was willing to take up another five shares in it before he left the room. Mr Saxon considered the only way to make the Alliance pay was to work it on their own capital, and for that reason he supported the motion. The Chairman did not think there was anything in the contention that the alteration would not be legal, providing it was agreed to at that meeting and confirmed at a subsequent one, but he had no doubt that the directors would, before making a call, find out whether it would be legal. The directors had come to the determination not to launch ' out any further until they had the capital at command, and the shareholders could rest assured that their best interests would be conserved. Mr Wilson asked if the resolution were not carried would the efficiency of the Alliance be impaired. He had understood it was started for two distinct purposes — to help farmers less fortunately situated than himself to get better prices, and not to rely on local markets, and to bring farmers of all shades together so that in times of peril they would give a united vote in their own interests. In reply to Mr Wilson, the Chairman said the ' negativing of the resolution would place the directors in an unsatisfactory position, and they naturally liked to put the responsibility of that upon the shareholders. The motion was then put and carried by 30 to 6. Tbere were 99 proxies representing 600 shares and 162 votes, which were not exercised, but which were said to be in favor of the motion. An amendment in the Articles of Association, enabling married women to hold shares, was carried. A motion by the Chairman to reduce the number of directors from twenty to nine was rejected in favor of an amendment by Mr Gardner making the maximum number seven, and the minimum five. This concluded fbo bnsinooo ( but bvtOTO the meeting terminated, Mr Tavlor said he understood Mr Bryce had decided not to allow himself to be nominated as a director, anA he would like that gentleman to be asked to reconsider his determination. He also regretted to learn that Mr Lethbridge was not going to stand again. Mr Bryce had stated he was not in good health, but there was no necessity to press him into attending all the meetings. Mr Byrce said he appreciated the kind remarks made, but would never have said so much for himself, and was willing to take his share of the blame. As for continuing to act as a director, he felt it was impossible. Politics had nothing to do with the company, but at the same I time ho would like to Bee the country settlers prove that they were able to combine on some subject, and if combined on one subject it would follow on others.