BACON COMPANY.

Hauraki Plains Gazette, Volume XXXIV, Issue 4596, 10 August 1923, Page 2

BACON COMPANY.

RELIEF TO GUARANTORS. ADVOCATED BY DAIRY COMPANY. The proposed relief to guarantots of the N.Z. Meat. Packing and Bacon Co. was very fully discussed at the annual meetings of suppliers to the Hixutaia, Matatoki, and Wharepoa cheese factories held on Thursday. in reply to a question at Hikutaia Mr G. Buchanan, a director of the N.Z. Meat Packing and Bacon Co., said that the legislation now before Parliament gave permission to cooperative companies—dairying, freezing, and trading—to vote money to wards relieving the directors who had suffered by reason of their joint and several guarantee to the bank for £50 ; 00<0 having to be met. These men had given that guarantee in the general interests of their shareholders, and of all producers, and the great body of producers felt that they should not be allowed to be ruined by an action taken in the interests of all. The co-operative movement, which was responsible for the beUer farm conditions ruling in New Zealand, compared with America, where proprietary interests were dominant, was really on trial, and it would be a bad slur on the principle of cooperation if these meji were not, helped. If legislation was passed the intention so far as Auckland was concerned was for all farmers’ co-opera-tive organisations —little companies as well as big companies—to get together and apportion the liability in a fair fashion. In the case of the big comapny the directors would require the endorsement of shareholders before any money was voted. Whatever sum was voted would be spread over three years by arrangement with the bank concerned. Elven if the N.Z. Co-op. Dairy Co. undertook the liability of one man—which was as much as could be expected, namely, £5555 —it would amount to about 12s 6d per supplier, as suppliers now numbered over 8500, and this small sum spread over three years amounted to 4s 2d per year. This would be paid out of the general funds of the company,- if authority was given, and would not be a direc: charge on individual suppliers. By this means, also, equity would be reached in proportion to supply. Some few men were objecting : they said on principle, but to his mind the bigger principle was to relieve those who had faced ruin, not for personal gain, but solely that a co-operative company might continue to co-operate in the general interests of farmers. (Ah', plau.se). Mr W. E. Hale, another' director, said that had it not been for the practice of self-sacrificing directors in the past giving joint and several guarantees the co-operative movement would not have grown as it had. Had the late Mr W. Moore, of Netherton. not undertaken the whole guarantee of the Thames Valley Co-op. Dairy Co. that institution would not have grown as it did. (Applause.) At Matatoki Mr Maxwell moved and Mr Hall seconded the following resolution : “That this meeting of suppliers of the Matatoki cheese group heartily approves of the movement on foot to underwrite the loss incurred by the guarantors of the N.Z. Meat Packing and Bacon Co., and considers that such action is necessary to do justice to these men for their action taken in the interests of the general shareholders of the company, and, further, that such action is necessary to maintain the prestige of the co-operative movement.” On being put to the meeting the resolution was carried unanimously and with applause. General approval, after discussion, was also expressed at, Wharepoa and Hikutaia.