POVERTY BAY CO-OPERATIVE DAIRYING COMPANY.

Gisborne Times, Volume VIII, Issue 702, 23 December 1902, Page 3

POVERTY BAY CO-OPERATIVE DAIRYING COMPANY.

STATUTORY MEETING. Upwards of thirty suppliers attended the first statutory meeting of the Poverty Bay Co-operative Dairy Company, Ltd., held at tho Royal Oak Hotel on Saturday ovoning last, Mr E. Knight presided. Tho following report was submitted : “ Since the preliminary report presentod at a meeting of supporters on September 27th, when tho prospectus was put before you, your provisional directors havo much pleasure in reporting that the Poverty Bay Co-operative Dairy Company, Ltd., has been successfully floated, and is now in active work, with a large number of shareholders, a plentiful supply of milk, and every prospect of success. The Company has already proved conclusively the great advantage of co-operation in tho dairying industry. With careful and efficient management, such as it will no doubt receive at tho hands of the directors whom you will to-night appoint, it is bound to dovelop into a large and profitable concern to its shareholders.

11 This meeting is called, as you are aware, for the purpose of electing directors, an auditor, and any othor business. Before proceeding to do so, I shall read tho statutory report, which, in accordance with the Act, has been printed and sent to each shareholder: —

“1. Tho total number of ordinary shares allotted is 938 of £1 each, all of which are partly paid up. Tho consideration for which they havo been allotted is 2s per share.

2. Tho total amount of cash received by the Company in respect of such partly paid up shares is .613(5 7s Id, and is made up as follows, viz., £93 16s, being 2s per share paid on allotment, and £42 11s Id, being 5 percent, deductions on account of shares from payments for milk supplied by shareholders.

3. Tho following is an abstract of the receipts and payments of the Company on capital account to date Receipts : Share account —2s por share on shares allotted, £93 10s ; 5 per cent, from payments for milk, £42 11s Id; total, £136 7s Id. Payments: Registration fees, £l6 ss; printing, advertising, stationery, etc., £l3 11s; sundry tools and plant, £3 13s; total, £33 9s.

“4. Tho preliminary expenses of the Company are estimated as follows :—Registration fees £l6 ss, solicitor’s cost in forming Company £8 Bs, printing and advertising and sundries £lB 11s, proportion Secretary’s salary and petty expenses in forming Company £7 10s, total £45 14s, " This report, which has to bo filed with tho Registrar, deals only, as you will observe, with thojcapital account and preliminary oxpomes, From it you will see that shares allotted up to the 10th inst., the date of the report, were 988. Several more shares havo been applied for since, and a considerable number more suppliers have promised to come in. The only expenditure on capital account so far has been the preliminary expenses, there being no payments required for buildings or plants to commence with, 11 1 shall now give some more detailed information with reference to tho working of the factory than what is contained in tho statutory report. Tho factory was openod for the receipt of milk on the 18th October. Tho amount of milk received during October was 225,9141b5, butter-fat paid for 8162] lbs, butter manufactured 8885 lbs. In November, 460,8231bs of milk were received, 16,709 jibs butter-fat paid for, and 17,9571bs of buttor mado, giving an overrun of about 71 por cent. “ A contract for the output up to 30tli April next was made with Messrs Joseph Nathan and Co., of Wellington, and as this offer was a good one, and gave your directors something definite to work on for a start, it was deemed advisable to accept it. Wc have tho option of retaining a maximum quantity of twelve boxes per week for suppliers’ use and local trade. Local sales are not being pushed in tho moautimo, or only to the extent of not losing touch with tho local trade. The quantity shipped under contract to Messrs Nathan and Co. up to the present is a little over 600 boxes. Although tho cost is a trifie more than to Wellington, we are now shipping to Auckland for grading, as wo can ship twice a week in this way, and the butter gets into tho graders' hands much quicker, which seems to bo a point of great importance in grading. Now that everything has got into good working order, we are confident a quality of butter will be turned out of a very high grado. “ As you are aware, thero was some talk of amalgamation with the Company now being formed to tako ovor the business of tho Kia-Ora factory. While quite willing to consider any proposals for amalgamation, and to take the voice of shareholders on same, your directors could not see their way to proceed any further on the vague and indefinite information and proposals put before them. They considered the prospects of this Company so good that it would have been unwise to risk making such a great change unless thoroughly satisfied that it would have been to your advantage.

“ As you arc aware, a creamery is being erected at Wacrcnga-a-hika, which it ,s expected will l)o ready to receive milk by the beginning oi the year. There is a su.lieient guarantee of cows to make tins creamery a payable one from the stait. It has also been decided to erect a creamery at I’atutahi as speedily as possible. “ Ail the provisional directors now retire, and this meeting will be called upon to elect directors for the year. By the Articles of Association, the number ot directors has been fixed at nine, so as to give outlying places an opportuning of being adequately represented.” The report was unanimously adopted. On the motion of Mr Stephenson, seconded by Mr Lewis, a vote of thanks was accorded the provisional directors for the good work they had done. Mr Tuohy said the success of the factory was entirely in the hands of the suppliers, and it was owing to the liberal supply' they received that they' succeeded. Tho Chairman said the Company received a far better supply than expected. Mr Walsh emphasised the importance of each supplier keeping up the quality of tho milk. Each man should send his milk to the factory in the best condition kr making butter. Mr Tuohy remarked that the greatest success they had was in securing a goou manager. Mr Morgan, without doubt, was second to none. (Applause.) Ido was a most painstaking gentleman, and always did his best for the Company. As for the secretary (Mr A. Graham), Mr Tuohy said he could not find words good enough for him. Dir Graham had floated tho Company without a hitch. The Chairman stated it was for the meeting to appoint a chairman and elect directors. On the motion of Mr W. Walsh, Mr i Knight, who had vacated tho chair, was again voted to it. Mr Gallagher asked if the voting for the directors was to be carried out on the 1 principle of one supplier one vote. The Chairman said that tho directors 1 had threshed out tho matter, and decided that it should bo one vote for each share. - Mr Gallagher was of opinion that 1 voting on shares would not prove to the i benefit of the Company. Ho had been : informed by tho Chairman at the former 1 meeting that they would have individual 1 voting. > Tho Chairman said ho was a big shareholder, hut lie did not want that fact ■ to make any difference. It was not like 1 a money concern, where man with ' the money was fighting for the power to ■ vote. Mr Gallagher held that if there was * capital to put down, and tho Chairman ’ invested JL'fiOO to his .£IOO then Mr Knight should have more power, biff as ■ no capital was to bo laid down for five 1 years they’ should not have anything but 1 individual voting. Dir Walsh regarded cows and labor as capital, and a risky capital at that, They did not know when some of their thirties and foriies wore going to die. Supposing 50 suppliers from the other Company ' came in, on the individual voting the original shareholders could ho out-voted. Mr Gallagher maintained that tho provisional directors had no authority to alter ' the decision come to at tho last meeting. Tho directors had altered the articles of ’ association without bringing it before the mooting. , The Chairman said it would be necessary to call t,vo meetings to make the alteration. Mr Gallagher remarked that it was , understood that liberal measures wore to rule.

Mr Tuohy said that the eight provisional directors had decided unanimously on the alteration, and if Mr Gallagher gave the matter the samo consideration as the directors ho would bo of the same opinion. Mr C. Gibson had been slightly misled. He understood that tho question would be left in the hands of tho shareholders. That was tho understanding at tho meeting of directors, and Mr Gallagher had reason to complain. The Chairman pointed out that the matter was still in tho hands of the shareholders, but it would necessitate two meeting being called. Mr Pago said the directors had been given power to do everything up to the present meeting. Dir Mossman urged an adjournment with the view of reconsidering tho voting question. Mr Gallagher moved that steps be taken to alter the articles of association as to tho voting power. Dir Kennedy seconded the motion. Dir Walsh said the directors had decided on voting by shares, honestly believing that it would bo for the good of the Company. Dir Gibson said that when the article was before tho directors he expressed the opinion that they were breaking faith with the shareholders. lie understood that the matter was to be referred to the shareholders for decision. Tho Secretary pointed out that there had been no opportunity of submitting the article iu contention until the present meeting. After further discussion the question was put to tho vote, and on a show cl hands tho Chairman declared that the motion was carried, 20 suppliers voting for it, and about 10 against,

Dir Tuohy asked for the opinion of the meeting as to whether a man with one cow or share was eligible for election as a director, seeing that one uian one vote was carried.

It was pointed out by several suppliers that if the voting was to bo on the individual principle, each supplier should Lo eligible for directorship. The question of whether the meeting could proceed to the election of directors was discussed. Mr Gallagher held that the directors could'not be elected by plural voting in face of the opinion expressed by the meeting. Mr Mossman deprecated any director thinking that the opinion of the meeting in favor of one man one vote was in any way a vote of censure. After further discussion the following directors were elected: —Messrs Knight, Torrie, Lewis, E. Atkins, Lang. Dinan, Mossman, Page, and Von Pein. The Chairman declared the nine nominated duly elected for the ensuing year. Mr H. M. Porter was elected auditor. At a subsequent meeting of directors Mr E. Knight was appointed Chairman. A Committee was set up to push on the erection of the Fatutahi creamery, and to make arrangements for the opening of the Waerenga-a-hika creamery.