THE DIFFICULTIES OF DAIRYMEN.

Hauraki Plains Gazette, Volume XXXIII, Issue 4388, 10 March 1922, Page 2

THE DIFFICULTIES OF DAIRYMEN.

COMPANY DIRECTORS EXPLAIN. LARGE NETHERTON MEETING. At the invitation of the Netherton Cheese Suppliers’ Committee Mr A. J. Sinclair, assistant manager, and others of the N.Z. Co-operative Dairy Company attended at the Netherton Hall on Tuesday night to address a meeting of both cheese and butter suppliers, in order to enlighten the suppliers on certain, matters. About 70 or 80 settlers attended the meeting, at which the dairy company was represented by Messrs Sinclair, Hansen, Shaw, Buchanan, and Blakeway. Mr G. Death was elected to the chair. SHARES. Mr Sinclair said the dairy farmers were certainly up.against it at present, and if the advance payments were not received some would go out of existence. He a-sked if there was any criticism that it should be fair. One question he had been catted to answer was that the company be asked tp supply a statement of share holdings in the Netherton cheese factory, and if sufficient shares had been allotted to cover the cost of land, plant, and buildings. Also, “Why does the company continue to allot more shares tp suppliers who have s ( uffirt cient shares already allotted them ?” The speaker explained that the capital cost of buildings and plant was £7193, subscribed capital £7102, and paid up capital £3817 15s Bd. The share standard was BOlb of butter-fat per £1 share. That standard was the same in- the Hikutaia, Huirau Road, Shelly Beach, and Wharepoa Road factories. The basis of shareholding was similar tp that of the old Thames Valley Company, except that the share standard was now 501 b of but-ter-fat per £1 share in place of 1001 b of butter-fat per £2 share in the Thames Valley Company. Mr T. Vowles asked what was the position regarding the reserve fund of the Thames Valley. Company. Mr Sinclair said the reserve stood at £36,000. When all the companies amalgamated all the reserve funds were taken into a general reserve fund.

Mr Vowles said £6OOO was to come from the present company to sup-i pliers, and they had- not got it. Mr Buchanan said that nearly all the cheese factories had reserve funds set aside'which were for those particular groups. The shares had been allotted before the amalgamation took place. Th© Reserve filnd set aside for each particular group had been put to their credit. Mr Harms asked what, had become of the insurance of the building which liad been destroyed by fire. Mr Blakeway (branch secretary of the company) said £l4OO had been received in Insurance, and that the insurance payments were credited <o the Netherton area. Mr Death thought there was trouble with the old shareholders. Mr Buchanan said that when the factory was erected it cost a great deal mor,e than was anticipated. Mr Sinclair, replying to a question that if farmers increased their stock, would the company increase the shares, said it would until capital cost covered was by paid up capital. Shares could later be bought back. It was/f4ir that a m.an should bear a burden in comparison with the butterfat he supplied,. Co-ioperative dairy companies had authority to buy back shares, and could fix conditions to buy them back. Mr Buchanan said that when a group became financial the standard would be increased unless the capital was required tor the capital cost of the company. Netherton, before the fire, had been increased from 1001 b for £2 shares to 1501 b for £2 shares,- but when the fire took place they had to go back to the old standard.

Mr Halligan: What inducement would a new supplier have in taking up old shares ? Mr Buchanan replied that when the capital was fully supplied to the comlpany he would get face value for old shares, but new shares wpuld only bring 75 per cent;'of the face value. Mr Death : Is it compulsory for cheese suppliers to ta.ke up butter shares for cream supplied when the cheese factory is closed, or when, the state of the roads makes it impossible to get to the factory ? Mr Buchanan said that they were never asked to take up more shares than to cover the butter-fat supplied. If a man switched over from cheese to butter altogether it was the custom to collect %d per lb off the supi ply. Mr Reid said that when he had been supplying tp the other factory for a few weeks he had been allotted a butter share without being asked whether he would take a share or receive %d less. He did not want the share. Mr Death said he had been in the same position. Mr Sinclair said that when the share had been allotted it was difficult to cancel it It would be brought up at the next meeting if Mr Reid did not want his share. STORES. . “How does it happen” was another question, "that Wharepoa factory, a factory with about the same output as Netherton and- Matatoki, is able to carry on with a store of approximately- £5OO, when Netherton and Matatoki and others of the quantity of output cann'ot do the same under about £lOOO ?” The cost of re-erection since the fire had to be supplied by subscribed capital. The standard had then to be lowered, and more shares £aken up to cover the increased cost. Mr Sinclair said he had mrsinteri preted the question, and so had not come with the necessary information to answer it, but he would get, a detailed statement of what stores were used during the year. CHEESE PRICES. Replying to the third question, “Is it a fact that Wharepoa received 2d to 3d per lb more for their season’s

output than Netherton, and, if so, why, as the ratio at Netherton was higher than Wharepoa ?” Mr Sinclair said that near the end of the season the cheese market had been erattc. Wharepoa factory had more fortune in the sale of cheese than Netherton. One shipment of the latter only averaged 141 s, and a Wharepoa shipment on the same boat got 1545. It was a. matter of luck that Wharepoa had paid out more than Netherton. There was also a difference of cost of manufacture, crates, and fuel, Netherton having to pay fore in each case. The cost of stores also had been greater. The total difference of manufacture was £2 2s per ton. If the company’s own coal mine had been developed the Netherton coal bill would not have been so great. It would cost only half the price from their own mine than from other, sources. [lt is only fair to point out that the Netherton cheese could not possibly have reached the same price .as that fetched by the Wharepoa. article. In the first instance the amount of sec-ond-grade cheese from the Netherton factory was practically double that from Wharepoa. This was due, nbt to any fault at the Netherton factory, but to the fact that the boat conveying the cheese to Auckland got stuck in the river, and consequently the cheese became somewhat heated, with the resut that when the consignment reached Auckland it secured bhly second grade.. Moreover, the Wharepoa first-grade cheese exceeded the average grade of Netherton by over one full point.] With their own mine they could build up reserve stocks in case the supplies were cut off. The coal mine consisted of 1200 acres of freehold and 2000 of leasehold land. About £38.900 had already been spent in developing the coalfield, and it would cost a considerable amount more, and %d per pound was being deducted from each shareholder. The reduction would continue for about three years. The directors had under consideration a scheme to have the new shareholders bear part of the burden of the coalfield. SALARIES. “In view of the general retrenchment now taking place in all brapchc es, does the Copipany intend tp reduce all salaries, and will the company furnish a list of all salaries •paid?” To the above Mr Sinclair said it was impossible to make reductions in some cases. The factory men were working under an award. There were 81 employees in the head office in Hamilton, and it may be thought that the office was over-staffed, but that was not the case. The company was equal to 32 ordinary dairy companies, and consequently required a large staff. It would, be impossible to reduce the wages of the office staff, as they must be paid, current salaries. Mr Death contended that as farm employees were paid reduced wages the office ’staff wages should be brought down according to' the price of butter-tfat. Mr Sinclair said the office salaries were not ruled according to the price of butter-fat The only way was to retrench and economise. Mr Buchanan said the directors had been giving consideration to the re-i duction of wages. It was only a few months ago that the office had lost two most, valued servants, because they had found better positions. When they had a good man* they should keep him with a fair salary. Referring to higher paid officials, he said Mr Goodfellow could easily sell his services for more than-hewas at prevent receiving. He considered the high-salaried officers were worth every penny they were receiving. 1 Mr Hansen said that last year the cost of administration was .23 of a penny (about %d per pound), and that rate would compare favourably with any other company.. Mr Whisker, maintained that now that the companies had been amalgamated the administrative charges, should be half those of the Thames Valley- Company. He would warrant, that he could get a small' company’? administration charges to be less in proportion than the N.Z. Co-op. Dairv Company’s. Mr Sinclair asserted that Mr Whisker would not find another company whose charges for administration were less than .23 of a .penny. Mr Considine asked if there' was room for systematising the work of the factories. Netherton people were satisfied that there was an efficient staff" at Netherton. The farmers did not want the hard-working men to be reduced in wages, but there should be some means of systematising the work. Though the administration cost was low., he contended that it could be cut down still more. Mr Hansen said the office in Hamilton was not overstaffed. . Mr Sinclair s,aid the building department had been curtailed. It was; most unsatisfactory to continue building on the 10 per. cent basis. By employing their own builders they ha I saved a large sum. They had dismissed 85 builders recently, so it was evident that the company was endeav-( buying to reduce its costs. Savings were also being effected in other ways. / A. CHEESE DEAL. / An explanation was wanted wito regard to cheese sold to the Farmers’ Union Trading Company at Is 2d per lb, some pf it being invoiced at 10%d. the alteration in price being madc ( . in the Paeroa office. Mr Sinclair said the manager hal been authorised to sell some cheese to the Farmers’ Union Trading Company. An adjustment had been made to an error in invoicing, so that tne company had Jost only about £1 18s. a. g’ood meeting. Mr Reid, proposing a hearty vote of thanks to the Company's representatives,;said that they had explained everything clearly. Mr Sinclair thanked the meeting: for the patient hearing. It had bee’s one of the best; meetings he had attended. He proposed a vote of thanks, to the chair, which was carried by acclamation,