BUTTER FACTORY AT MOTU

Gisborne Times, Volume IX, Issue 896, 20 May 1903, Page 3

BUTTER FACTORY AT MOTU

MR McGREGOR’S OFFER,

START TO BE MADE NEXT SPRING

(Special to Times.)

A meeting of Motu settlers was hold in the Motu school room on Saturday evening last in regard to the starting of a butter factory in that district. Owing to the heavy rain there was not a large attend* ance, but those who attended were most enthusiastic in regard to tho movement. Mr E. Richardson presided, and amongst those present were Messrs E. Thompson, Uickford, J. McCrcdie, Carron, Fisher (2), and Richmond.

The Chairman explained tho objects for which tiie meeting was called, and stated that Mr McGregor had written to Mr Uickford making an offer to start a factory next Spring, provided a guarantee of two hundred cows was given by the settlers, lie had seen thu offer, and he thought it was a very fair one indeed. He called upon Mr Hickford to read the letter. Mr Hick ford then road the letters received from Mr McGregor, and also gave details of an interview tiiut he had had with Mr McGregor in Gisborne the previous day. Mr McGregor had, he said, i/' the lirs) place wanted a guarantee for s.Hvcn years, but be had subsequently reduced it to five years. When the daily supply of butter fat exceeded 2001bs, an increased price would be paid. The farmers would also have the right to take

over the factory at a valuation at the expiration of the term of livo years. The milk would be paid for on or before the 20th of each month, and tho factory would

he erected near the Motu township. Continuing, Mr Uickford said, " Several peoplo said that tho factory should be erected down at Itakuroa, and the cream taken there, but Mr McGregor prefers that it should bo put in the Motu. Several thousands of acres of land have recently been sold near the township, and this must sooner or later be, used for dairying, for which it was eminently adapted.” Mr Uickford stated that ho had been asked by Mr McGregor to act as his agent in carrying out the negotiations for tho erection of the factory. Mr Richmond said that from Mr McGregor’s letter it would appear that if the supply of buttor fat oxceeded 4001bs an additional price would be paid. Mr Richardson said the limit Bet was 7d per ib. Mr Uickford thought that Mr McGregor would pay a higher sum if over 400ib of butter-fat was supplied. On tho wiiolo he considered Mr McGregor’s offor was a most liberal ono, as other firms in the colony would not start a factory under 400 cows and seven years’ guaruntce. As far as t’no guarantee was concerned, if tho settlers wero not satisfied to sign a guarantee for livo years, they could make it for a shorter term.

Mr Richmond : I think five years is a very fair thing. If tho number of cows exceed 400 wo shall got according to the market. If Mr McGregor did not get it he could not pay it. Mr Richardson : The price paid to the settlers on the fiat at the start was 7d, and this offer must bo regarded as a most liberal one.

Mr McCrcdio : Mr McGregor formerly bad a sliding scale for three months in the year. Mr Fisher : If wo start a factory with two hundred cows it will not he long bo fore wo have five huodred. Wo should have four hundrod cows at any rate before tho term of the guarantee oxpired. Mr Carron : More like a thousand or more. Mr Fisher : There is no doubt that the number will increase rapidly. Mr Richmond : I considor it is a very fair offer. Mr Uickford : The offer is vory fair, for the expenses will bo great tho first year. It will only prove profitaolo to Mr McGregor when tho number of cows increase, and then the settlors will have the opportunity of taking over the factory at a valuation.

Mr Richmond : The settlers in Gisborne aro getting 9d, and 7d in tho Motu is a very good price considering that Mr McGregor has to cart tho butter. Mr Carron : Ho will also be under heavy initial expenses. Mr Richmond : The factory could as easily handlo the milk from 400 cows as from 200.

Mr Fisher : It will bo a propriotory concern in tho first instance. Mr Carron : Until we are in a position to tako it over.

Mr Hickford : In commencing dairying every farmer is put under tremendous expense, and thoy could not stand the cost of the erection of a factory, etc. Mr Richmond : Tho banks in many cases give very reasonable terms in regard to factories. This offer of Mr McGregor’s appears very satisfactory. Mr Ilickford: Mr McGregor has not made an offer of this kind to anyone else in tho district. Ho has been approached from the Wairoa and elsewhere, but his offer in each eases was not so liberal as this one. Mr McCredio : Don’t you think that a five years’ guarantee is rather long? Mr Richmond: No; we must do something of tho kind. You cannot expect Mr McGregor to take all the risk. Mr Richardson : It is a reasonable offer, and there is no doubt about it paying. Mr Carron : So long as it pays Mr McGregor it will pay us very well. Mr Hickford : I have no doubt Mr McGregor will be prepared to make tho guarantee four years if the settlers desire it.

After further discussion, it was unanimously decided, on tho motion of Mr Fisher, secouded by Mr Richmond, to accept Mr McGregors’s offer. Iu expressing his ploasuro at tho decision which tho meeting had arrived at, Mr Richardson said he thought that it was a really good price Mr McGregor had offered. Mr McGregor had proved himself a fair and honorable man, and tho best policy the settlers could adopt would be to leave tho matter in his hands. If tho dairying industry prospered in tho Motu, and there was not the slightest doubt that it would do so, they would find that Mr McGregor would meet them in every case. Mr McCredie said that he had had business relations with Mr McGregor, and he found him very easy to get on with. Tho settlers had every reason to be pleased with tho offor mado. Mr Hickford said that Mr McGregor would willingly consider any mattor tho settlers brought before him. Tho question of the number of cows was thou gone into, and as many of the settlers were not present Air Hickford was appointed to make a house-to-house canvass throughout the district. Mr Richardson said that he would put his name down for 30, and he would probably increase the number later on. Mr Richmond promised 15, Mr Carron 30, and Mr Fisher 20. Mr Hickford said that Messrs Exsell

and Hallam would find 25 each. Ho did not anticipate any difficulty in getting tho necessary guarantee of 200 cows, as at a previous meeting it was estimated that there would be' over 300 forthcoming. When Mr McGregor was up in the Motu he was opposed to delivering cream, but he had sinco changed his opinion on this question. Mr McGregor would bo prepared to take cream from the back Mote roads, and it could be delivered twice £ week. As far as the back was concernec there was no chance of a factory beinj erected there. Mr Richmond thought that those sett lers who did not come in at the outset and take part in the guarantee should receive j a half-penny less for tho butter fat supplied. Mr Hickford said that, as soon as the guarantee was signed, Mr McGregor would get right to work with the erectiou of tho factory, so that everything should be ready for tho spring. On the motion of Mr Richardson, a hearty vote of thanks was accorded to Mr Hickford for the trouble ho had taken in interviewing Mr MacGregor. Mr Hickford, in reply, said that he had only done what he felt he should have done as ono haviDg tho interests of the district at heart. He would be more pleased when he saw the factory running. A vote of thanks to the Chairman terurinated the meeting.