Cheltenham Co-operative Dairy Company.

Feilding Star, Volume XV, Issue 238, 13 February 1894, Page 2

Cheltenham Co-operative Dairy Company.

A special meeting of shareholders in the Cheltenham Co operative Dairy Company, Limited, was held in tho Cheltenham schoolhouse last evening to consider two. motions affecting the capital of the Company. About thirty shareholders were present, and the chairman of Directors, Mr P. Spencer, presided. Mr Spencer read the circular calling the meeting and remarked that it would be remembered a meeting was called some time back and it was then decided to increase the capital of the Company, but their legal adviser had instructed them that that meeting was informal, and they had now called this one to legalise the' proceedings. More capital was required and it was very necessary that fresh shares should be issued as it was much better that they should have their own money in ' the factory and receive 6 per cent interest than pay the bank a heavy interest. If they worked on borrowed money those suppliers who sent most milk would have to pay the most in interest, as all expenses had to be taken from the produce. Nearly all the old shares had been sold and fresh ones should be issued. He would propose, " That the capital of the Cheltenham Co-operative Dairy Company, Limited, be increased to the sum of £5000, by the issue of 1500 new shares of £2 each. Mr Cunningham understood that at the previous meeting it was decided to put a premium of 5s on the shares. Mr Spencer replied it was still in the hands of the Di testers to put & premium of 5s on, and at the meeting referred to the proposal was in, the form of a recommendation, v Mr Banks seconded the* motion which was carried without dissent. Mr Bpencer said the other proposal was to alter Clause 8 of the Articles of Association to enable the Directors to make more calls without waiting for twelve months. The clause proposed to be struck out reads, "No further calls to be made for twelve' months - from date of last call/ This clause followed the clauses regulating the calling up of the first 10s of each share and would enable the Directors to make an immediate call of ss, and a further call of 5a in three months. It was not their intention to call up more than 10s per share. When the Company was started it was believed money could be obtained at a cheap rate of interest, but they found this could not be done, lie would propose, "That Clause No. 8 of the Articles of Association of the Cheltenham Co-operative Dairy Company, Limited, be amended as follows, By striking out all the words, commencing with the word ' no,' in the sixth line down to, and ending with, the word 1 call ' on the seventh line of the clause." In reply to Mr Cunningham, Mr Spencer said it was their intention to call up 5s per share immediately aud 5s in three months. Mr Hugh Burrell asked if it would be legal to alter the articles. Mr Spencer replied there was a provision in their Articles of Association to enable them to alter the clauses, and it was better to pay for the factory and have it for their own. Mr Wratt understood the calls were to be2s6d. Mr Spencer said that the calls were 2s 6d till 10s per share had been paid, and then the balance at 5s per. share as required. They only wished to do away with the clause preventing them* from making further calls from date of last call. Mr Pearce said that from a Colyton point of view this would be rather hard on them, as they thought of going in for a factory there, and then they would have to pay 5s on old shares and 2s 6d up to 10s on the new ones. They would have to take 200 more shares before a factory could be started. Mr .Spencer contended it was a matter of finding the cash, and if they went in for a factory at Colyton they would still have to finance, and thought it might be to their advantage for the Colyton shareholders to continue with the creamery for another year. He thought the directors would say that 50s on five shares would scarcely be called a hard thing to pay in three months, and it was better to find the money themselves than pay interest. They wanted JESOO as soon as possible, and this would take two calls of 5s each. Provision was made every month to pay the interest, and the same would be continued. Mr Pearce thought in case of their continuing the creamery it would be necessary to find more tanks, put in another separator, and employ another man. Mr Wratt asked if it were true that 25lbs of butter per day was lost through taking the cream from Colyton to the factory. Mr Spencer said it was not so bad as represented, but the hot weather on some days had affected it. Mr Cunningham seconded the motion dealing with clause 8, and it was also carried without dissent. Mr Spencer invited the shareholders present to discuss any matters of inter* est or ask their manager any questions. In reply to Mr Pearce, Mr Spencer said that one of the things they had in view was to bore for artesian water at Colyton, and it would depend on the test about to be made at Feuding. In reply to enquiries, Mr Niccol, manager of the factory, said there was a loss iv hot weather, but did not think it could be remedied unless milk was cooled immediately after it was taken from the cow. He noticed the milk from some suppliers had turned somewhat sour before it reached the creamery on some occasions, and he had given instructions not to take any sour milk, as it was better not to make butter than put bad stuff in the market. They could not keep the cream at Colyton fill the evening. He thought they couldn't get a better district than Colyton for dairying, - and they were doing remarkably well; had never seen a factory so well started. The tests were checked by the churn. Mr Cunningham asked if there was any probability of procuring ice at _the factory, and Mr Spencer rephedtbat he was thinking out a plan, but could not at present say for certain if they could. Mr Spencer remarked that, as pointed out, some of the milk arrived quiet sweet, and in some cases it was turning.sour. They had obtained a cooler as a sample and gave it to Mr P. Thomson, who had mado some, and they could now be pur« chased from him. Mr Spencer thanked the shareholders for assisting the directors so far and hoped they would attend the meeting in about a fortnight to confirm the re~sot&\ tions. The meeting terminated with a vote of thanks to the chairman,

gusson acted as spokesman and referred to the first meeting held there when Mr Spencer attended aud placed the proposals before them. He considered it unjust that 5s premium should be placed on the new issue, and although he was willing to waive his objection the settlers around Birmiugham did not care to do so. It was understood when the district was first canvassed that the 70 shares then taken up would form part of the 250 required to be taken before a creamery would be erected. Mr Fergusson asked if the Directors •would waive the charge of 5s as a premium for it would be to their mutual benefit if a creamery were started at Birmingham. If they had denuite information a meeting would be called and the matter discussed. What they wanted to know was what number of shares was required, the number of cows, if it was intended to ask a premium of 5s on the new issue, and what conditions generally they would be let in ou. Mr Spencer said that if their request were acceded to only .£9O would be received and it would take Jt'4oo to erect a creamery. He thought they would have to find the necessary amount iv cash, but at the same time the Directors would only be too willing to meet the deputation if they could. A meeting of the Directors would be held on Wednesday and this matter -would tlieu be discussed" and notice of their - decision would be sent to Mr Fergusson. After a short discussion it was arranged to inform the deputation of the decision arrived at by the Directors at their meeting to-morrow in time for a meeting to be held at Birmingham ou Saturday night. The deputation theu withdrew.