NETHERTON FACTORY.

Hauraki Plains Gazette, Volume XXXIV, Issue 4558, 2 May 1923, Page 1

NETHERTON FACTORY.

MEETING OF SUPPLIERS. There was a. fair attendance of suppliers to the Netherton cheese factory on Monday morning to discuss with the .iocal director the questions raised by the delegation that visited the head office on April 10. Mr G. Buchanan and Mr A. Tatt,ersall were present. Mr G. Death was elected chairman. In regard to the contention by the delegation that sufficient details were not supplied in the balance-sheet, Mi Buchanan pointed out that, cheese suppliers received .a detailed statement of their branch in addition to the ordinary balance-sheet. Suppliers could obtain any further information on application. Mr Dixon, the head of the cheese branch, had instructions t.o visit factories monthly and supply details if necessary. Mr Reid, the convener of the local committee, said that information had been supplied him/but suppliers did not attend meetings. Mr B. Johnson moved tjrat more details should be supplied in the general balance-sheet. Seconded by Mr R. Heappy and carried. 1 The second question raised was the insufficient information supplied in regard to coal and timber shares. Mr Buchanan explained that glaxo. suppliers did not take up coal a-n*l timber shares, and capital was not deducted from non-suppliers. He suggested that in the balance-sheet the shareholders and the non-sharehold-ers should be separated, so that suppliers could better understand the discrepancy mentioned by the deputation. Ths delegation had advocated that a director should be- elected from each factory, but, Mr Buchanan said that that would be impracticable, as it would mean over 30’ directors. Every factory had its local committee, and their resolutions were always considered.

Mr J. A. Reid contended that the local committee’s recommendations were not considered very seriously. Mr Buchanan said that if the committee did not get satisfaction they should inform him, and he would bring the matter up at a directors’ meeting. He also suggested that if the suppliers desired he would attend their committee meetings.

The next question related to shares. The delegation had asked that the directors raise the butter-fat, standard to 1001 b for each £1 share, and that both butt,er and cheese shares be transferable.

Mr Buchanan stated that those factories which were operating on a 1001 b basis were not, underwriting the Capital cost, and it was necessary for a joint and several guarantee to Insigned at the bank. The NZ. Dairy Co. did not ask to sign any guarantee, and it was therefore necessary that the capital cost of each branch of the company’s operations should be underwritten by shares. The directors had considered the question, and were quite in sympathy with the arguments advanced by some of the members of the deputation. It was very desirable that the supply to the factory should be increased, as it would be a most successful one if running at . firfl capacity. The ' directors had therefore decided that at the end of the season t,he share standard at Netherton would be varied so as to render it unnecessary for the present shareholders to take further shares. This would have the effect of limiting the liability pf the present shareholders to the figure it stood at to-day, and the fact of the standard being altered would make the proposition more attractive to new shareholders. In regard to butter-fat to be supplied by Netherton cheese shareholders for buttermaking until the cheese factory commenced operations again nexi season, the directors had decided that where additional butter shares wer; required it would be optional for the suppliers t,o either receive payment for such supply on a non-shareholding basis or take fully-paid butter shares for the amount of the deduction of %d pen pound. The position in regard to non-allotment of shares to certain suppliers to the ..Netherton cheese factory would be investigated. Discussion lasting several hours ensued on the'share question, during which Mr Tattersail stated that the position of 'the Netherton group on May 31, 1922, was: Capital value £7104, paid-up capital £4675, leaving £2429 to be paid up. The number of shares allotted was 7559; capital value £7104, so shares in excess of capital value amounted t.o £455. Filially it was decided, on the mo-> tion of Mr Death, seconded by Mr BJohnson, that the privilege accorded to the Netherton cheese suppliers re paid up butter shares be extended for the season if the factory be closed for the season, and that the cheese share basis at Netherton be 1001 b to the share. This meeting pf suppliers guarantees that no demand will be made for the resumption of shares on the 1001 b basis. The motion was carried unanimously.

Aft.er further discussion Mr Reid proposed, and Mr Halligan seconded, that any cheese supplier at Netherton be granted fully-paid-up butter shares for the years 1921-22 on production of a written guarantee to continue suoplying the N.Z. Dairy Company. The motion was carried unanimously. On the question of whether the factory should continue cheese making there was much discussion, and on the motion of Mr Halligan, seconded by Mr Harms, It was decided to make an effort to keep the factory going throughout the winter. Mr Buchanan explained that these recommendations would be considered at the next meeting of directors.,