Page 3 Advertisements Column 1

Hauraki Plains Gazette, Volume XXXIII, Issue 4478, 11 October 1922, Page 3

j-The Real Truths Statement to N.Z.C.D.C. Suppliers Zealand Truth of September 30 last. Copies of this paper have been tion of poprietary interests, where quality ip apt maintained, and nirnninted free of ’harge. by enemies of the co-opera- where the producer receives an inadequate reward. industriously circulated lie, > of, ese which this is the latest expression-upon the »! P X in .leletoe » t Ito K«w Dairy Comp™ M, ha™ hoop Comp™, iatewis, W 1» * th. whpi. prinelpi. oi ltt lhe AucklsM PrOT , M e. Co-operation. farmers of New Zealand sow the seed bf dissension and discord. for the e pS S twm ty years have gone hand in ihand with the develop- 2. To influence adversely producers elsewhere throughout fop the past twenty yea ~ , fie i d f sUccess New Zealand, and weaken their enthusiasm for the estabment o t tl« Co mxmjnmprXXeZo.l llstamt of tip Dairy Produce Export Control Board. is opening beforeid y conclusion-—the marketing control But undoubtedly farmers are shrewd enough to see through this “ “ZuXoas 'SSS“ XS “ — *4 wm Ott In .oyntty to th.tr pu W , of dairy products ove . • Zealand to its keenest which aims at promoting the welfare of the whole country. Opposition an London as wel as in . - Co-operation in Ne.w Zealand has perfected the manufacture of pitch, and a grim and concerted fight m now beingwweed,a e ed, openly and secretly, against co-operation. f>o .. ntr ,. The city due reward of that triumph some effective control of) the export This «.ht <77“ *ml Xto tosmargins end of th. hu.ln.ss mu« h. ncMtoed. Pannent w map prospers only as the farmei Dro(lucer -s. effort realise that it is imperative to W co-operation in manufacture fare ls bouM up In •. “ it C th. u”du‘ £ to »arke«n g . It Is only to such mW that they to market his goods tp he will secure th© full profit to which they are entitled, intervention of the speculator, 'flhe dairy industry is now at the parting of the ways. w GOODFELLOW, issues He before the farmer: Co-operative Success or Proprietary Managing Director, zei,Md ” uve Allegation and Answer. . , mi 8 Debentures of £65.000 “ may be left to the splendid Stripped of characteristic language truth makes tne f - opt i m ‘ist.-5 who sank their each in these ‘ securities.’ ” lowing allegations against the New Zealand Co-operative Daily optimists wno Answer. Company, Ltd. We reply to each charge seriatim. These debsntures ie p ro3en t’ part payment for the p«r1 “ There is not a single feature, of true co-operation about chase of one of the three Glaxo factories, owned by the anything connected with the concern.” New Zealand- Co operative Dairy Company, and representJ b Atihwbt ing a total valie of £216,000. These factories are leaseo , . ~. .„ o contributed bv sup- t o °the Glaxo interests, and the payments made to the Dairy The whole of the butterfat supplied: no person Company under that agreement will enable the capital cost S.l . “?pl£r X. I 1 KZto’ ’n. »■ lb. »«"!» »«»«p»« •«'"»«“» y»»’ «”'• Company is therefore, Co-operative in the fullest sense. 9 The amount due to snppl crs, including bonus, is stated n -rn o ’ -> hnin- • milcarnation of strictly pri- at £538,943, whereas, adding up t'iie totals transferred to bonus r -2, Ihe Company • ‘ s tme of the ordinary dairy com- account from the Butter. Cheese, and Miik Powder Departments vate concerns tl t mdinaiy a. of lw it gi)p panics, which beite**- .< • pliers, and ordinarv creditors please keep asking where is the on their own account. . .. £53,343 gone to ?” ’ The following is a complete list of the companies which It . g true that tbe total bonuses due to suppliers on the have amalgamated, and which have become merged into tn year’s working amounted to £592,287 4s lOd, as at ■ ! New Zealand Co-operative Dairy Company, Ltd.: jj a y 1922, whereas the Company shows on the liability ' New Zealand Dairy Association, Ltd. side of the Balance Sheet that it owes suppliers only Waikato Co-onerative Dairy Co., Ltd. £538,943 8s 6d, a difference of £*3,343 16s 4d. But, as Waikato Co-operative Cheese Co., Ltd. a result of the slump, many suppliers obtained cash advances Thames Valiev Co-operative Dairying Co., Ltd. ( or procured goods against the bonus. This suml was thereSSwaim Butter fore no longer a liability on the Company-it had already Waihou Valley Dairy Co., Ltd. • ' TM “ gone to ” suppliers. Te Kuiti District Co-operative Dairy co., ita. 10 That, because the Company finished up the year with Te Aroha District Co-operative Dairy Co., Ltd. sundry'creditors amounting to £68,903, and sundry deposits Eureka Co-operative Dairy Co., Ltd, • ti, £27.847, this shows t’hat “ tlfngs are done on the ‘tick’ prinNot one private concern has amalgamated with the ciple, which are better done for cash on the nail.” flAmnsnv rm are anv shares held by any private concerns. Answer. Company, V z industry throughout the (a) The Company, since its inception, has adopted the "3. “The whole of the dan ? in » ’"^ust ry » course - policy of paying .cash monthly for all purchases and securWaikato and other districts has been th 0' -y tti ing all discounts. The item of £68,903 is quite reasonable .: of natural development by reason of the n sl . c . l - lL y l n s view o f the Company’s annual turnover of £3,500,000. imposed upon them through this attempt ~t the loin . sundry depOs ;ts, represents money placed combine which could only benefit those responsible wjth th e Company mostly by suppliers on fixed deposit, ception, conduct, and control.” n ;|j l]jp anwnnt dne to t)le Banks and “ any other Answer. f orm of bankrupt debt it could manage to pile up upon an (a) Since the Amalgamation the output of butter alone inadequate paid-up capital, amounted to £667,784, or say, in the Company's territory has increased from 8717 tons to £131.000 more than the uncalled capital for which the suffering 18 218 tons Had it not been for the complete orgamsa- . s]iai . eholdci . s are li;,button provided by this Co-operative Company, this abnormal Answer. increase could not have been 'dealt with efficiently. To stress liabilities and ignore assets is the easy but in/h! Those responsible for the Amalgamation were the fair method taken here. As an offset against the liabilities, of the above-mentioned co-operative companies, the Company's assets total over a- million pounds; sundry one of them benefited to the extent of a single debtors owed it £405,000, and stock in hand amounted to nenny as promoters of the Amalgamation. The Amalgama- £321,000. These items are conveniently ignored, tion has r°duced the cost of manufacture enormously by the 22. “ Numbers of small dairv-farmers who were deluded elimination of overlapping and the concentration of sup- into purchasing high-priced Waikato and Thames Valley lands plies. Further, the quality of all the produce manufactured have had to walk off their farms penniless owing to the low by the Company has shown a remarkable improvement. price of butter-fat failing to supply the • means of paying /..XT J- -u 1. .... ihe innnev sunk in the contraption; interest on their mortgages. Had these men been free of 4. “No dividends on the mo ey sun* in u o mun(jpoly c . (Used by bo]stei . ing up this allcgetl co-operative, no money with which to iei < y ‘ „ they might have held on longer and made good by honest of, even the market price for butter-fat . . ■ and . Answer. . Answer. (a) A co-operative company is not organised to To b j ame Co-operative Dairy Company—or any dividends on share capital. All moneys are paid to sup- other—for the unfortunate failure of some farmers is pliers by way of payments on butter-fat. absurd; the slump in prices was world-wide, and all sections qnnntiers know that the banks do not advance of the community were equally its victims. As a matter , , (b) Supp . . _„ nnr u v of fact, higher prices were paid for land in Taranaki and money without adequate e urity. , _ Manaw’atu than in the Waikato. The final measure of this (c) There is no such a market p e — ' Co-operative Company’s responsibility is: Have its pay- " fat. There is a market price for butter and ce s . merits per lb. butter-fat been excessively low compared prices vary wesk by week, and are never includ ea in an with .other dairy companies in New Zealand? No; they annual report; they are published regularly in ine pr .. compare more than favourably. For the past critical year and in the Company’s monthly journal. payments reached ls 4.46 d per lb. butter-fat for direct 6 “The ‘revolt’ with a grin, states that ‘the average delivery superfire cream, with an over-run of 20.09 per "■ for nil butter-fat throughout the past season < cent. This figure has not been exceeded by any company ££ 12 00 vence ’ What the supplier would like to know is: in New Zealand operating under similar conditions. For was 12.00 penc . 1 prev i OUs y ear t be jj.Z. Co-operative Dairy Company Will there be any more. paid approximately 2/9 per lb. butter-fat—a consummation „v. « Mte «!«. "• ■’‘’"■‘"b £215 699 P %Tthe JeryVayrt appearedVfurther’payment, 13. On the asset side of the Balance-sheet “ the only s ' tXing’- £169,134, was in their hand. & I—atelyJhe hand balance of the season s 1 .. .. Truidl , exceeds the totals of the Butter, Cheese, Casein, and Trading Will be made. These facts were Accounts by £64,459: and states shareholders must speculate ' had it cared to inquire. as t 0 bow much “ powdery stuff ” (presumably milk powder) 6. The allotted capital of the Company is £993,525, of is included in these figures wliich only £ 4 . 57 ,^ 1 '^„ tlVprin'ci- Stocks of engineering material, timber, coal, and other called capital is icquncd to „P fPJ commodities necessary for the conduct of the business pal assets employed in the biisine.s. account for the difference mentioned. It would be Answer. obviously incorrect to show these amounts in Either butter, It is true that the uncalled capital of the Company at cheese, casein, or trading accounts. May 31 was £536,110 Ils 6d. 14. “The Trading Department shows sales amounting to the somewhat important fact that the Company has assets £26 6,005, but the ‘ profit ’ is onlv £6 5s 8d for the year.” in property and plant (including colliery and box factory) ’ •' ‘ Answer. to the value of £1,110,945 13s Id. O Ur Trading Department was not organised for profit, The great weakness of co-operative enterprise in ivew but {or service bad a sur pi us amounting to several Zealand is, and always has been, under capitalisation; share- thousand pounds on the season’s trading, and this was all holders have not sufficient of their own money in their own handed back to our suppliers in the form of a rebate to concerns. This fact has been made clear to suppliers re- those who purchased goods. . peatedly, and the Company’s policy of endeavouring to 15 That the existence and values of the various stocks rectify this by curtailing capital expenditure until the v - certified to by the Company’s responsible officers and not nue from share calls somewhat approximates the expendi- bv the auditors . ’ ture, has brought it into disfavour m certain districts, Answer, which are clamouring for new factories, that have been It j s | be recognised practice in New Zealand for stocks refused. to be certified to by responsible officers. Auditors do not „ „ , ' . ~ , , ' undertake this work. Shareholders are amply safeguarded, 7. The Reserve Fund of ™36,574 is only a book-keepn g because no purpose could be served by managers of. our • entry.” - butter factories inflatiag stock in order to make a good Answer, • showing for their factory. All butter factories are grouped This reserve has been built up over a series of years, and a fl a t rate . paid out to the whole suppliers. 9An and has all been carried forward since before the Amalga- additional safeguard is that the stock at the end of the. mation. It is invested in the business, thereby reducing year becomes a charge oh the following season’s operations, bank overdraft. Recent legislation has not encouraged com- As a matter of fact, owing to declining prices, stocks have panies to build reserves, as such moneys are liable for income been valued on a very conservative basis, in many instance/ ' below present replacement cost. What “ Truth ” Really Thinks of the Farmer. After reading the following extracts from “Truth” published at the time of the slump, when thousands of dairy farmers were faced with ,ruin suppliers will be able to smile at the spurious sympathy now expressed on their behalf:— (“ Truth, ” January 14, 1922.) (“ Truth,” March 4, 1922.) ( Truth, February 18, 1922.) “ Taken as a class the farming com- . “Just now the alleged farmers of Commenting on ano er airy wL/the bis tason H X. " of the man on the land. ’ ’ hardly accustomed. NEW ZEALAND CO-OPERATIVE DAIRY COMPANY LIMITED. HAMILTON. HAMILTON.