IN LIQUIDATION.

Hauraki Plains Gazette, Volume XXXV, Issue 4736, 11 August 1924, Page 4

IN LIQUIDATION.

THAMES VALLEY DAIRYING CO. FINAL MEETING. The final general meeting of the Thames Valley Co-operative Dairying Co., Ltd., was held in the Soldiers’ Club, Paeroa, on Friday last. Mr GBuchanan presided, and with him were Messrs F. W. Walters (director) and E. V. Quick (assistant secretary) of the N.Z. Co-operative Dairy Co. There were some thirty shareholders present. Mr Buchanan explained that the meeting had been called to receive the liquidators’ final statement of ac--counts in the Thames Valley company. Mr Quick then read the statement of the realisation account, which showed that the liabilities transferred to the N.Z. Co-op. Dairy Co. totalled £177,108 3s lOd, and the assets transferred as £243,725 18s 6d, leaving a surplus of £66,617 14s 8d as at May 31, 1920. After a short discussion and explanation of the position by Mr Quick the adoption- of the statement was Moved by Mr N. R. Robson, seconded by Mr T. P. Vuglar, and carried. The chairman then asked for questionis. MATATOKI CHEESE SHARES. Mrs J. Anderson, Kopu, asked the position with regard to Matatoki cheese shares held by her in the old company, and stated that although she had leased her farm she or her lessee had never supplied the ch'eese factory. The chairman said that shares held in the Thames Valley company were credited in the N.Z. Dairy Co. at the rate of 3s 9d In the £ as butter shares, as provided for in the terms of the amalgamation. It appeared that her shares, had evidently been Incorrectly allotted as cheese shares. As Mrs Anderson did not seem clear on the matter Mr Quick undertook to go further into it and advise her from Hamilton. NETHERTON CHEESE SHARES. Mr W. Moore, Cambirdge, asked what was owing on , the Netherton cheese factory. The chairman stated that the capital cost of the factory, including machinery and equipment, was £6891 7s sd. The subscribed capital was £7454, and the paid-up capital stood at £5446, leaving a balance of about £1446 due, which sum would be reduced by several hundred pounds when last year’s deductions were credited. Mr Moore objected to his share of the subscribed capital amounting to £246 laying idle with no interest coming in, and asked if-the company could not resume some of the shares if it could not pay interest on share capital. The chairman replied that the policy ol the company provided that shares would not be resumed in any group until the factory became financial. It was not reasonable to expect

money to be taken from the ,butter group for the purpose, if Mr Moore had sold his farm four years ago it •was-his liability to have transferred his shares to the new owner. Mr Moore said that his shares were held in the old Netherton factory, which had been burned down,-and con - tended that as a result he was being penalised. The chairman said that the new factory had been built at the request of the majority of the suppliers. It was regrettable that the N.Z. Dairy Co. was unable to pay interest on shares, but any monies paid as interest would be subject to income tax, and the Government would be getting more out of it than the shareholders, which obviously would mean that there would be less for the shareholders at the end of-each season. Mr Moore asked how was' it that the Cambiidge company could pay interest on shares. The chairman replied that all interest paid would have to come put of butter-fat, and that the taxation of a smaller company would be considerably less than in the N.Z. Dairy Co. Mr Moore replied that the Cambridge Company was paying 3% per cent, interest, and dry shareholders were participating. He then asked if there was any truth in the rumour that the Netherton factory had been closed down indefinitely. The chairman replied that the factory was closed at’present owing to several of the suppliers seceding, but if the suppliers would pull together the factory would be run. The company had the manager of the factory standing by awaiting the turn of events. It would be necessary for every supplier to sign up to supply for the full season. In reply to Mr Taylor, of Waitoa, Mr Buchanan said that it was not probable that interest would be paid on shares when .the factory was paid for, but there was -every prospect of the company resuming shares later. SURRENDERED SHARES. Mr D. Barlow, Eastport Road, said that four years ago he had sold his farm and surrendered his shares, hut had received nothing from the company. Mr Walters stated that as Mr Barlow had signed the agreement to supply Waitoa dried milk factory, it was possible tha*t his shares had been used in financing that project. The matter would be looked into. He thought that for “A” shares the actual value was about 12s in the £. Mr Barlow: “Twelve shillings is no good to me. Why should the company have the money ?” Mr Walters replied that the company did not get the money; it went to the banks, who financed the undertaking. A Voice : “Was the first agreement to supply dried milk any good ?” The Chairman ; “Yes, certainly it was I inding.” CARTAGE SERVICE. J. Hiriwani, Waitoki, asked if the cream cartage service could be extended to call at his gate daily. Since

it had only been_calling at odd times he had only been grading second grade? The chairman replied that the new service would extend beyond his gate this season. There would be no direct delivery premium paid this year, but a 14d per lb butter-fat would be deducted to pay for the service. DRIED MILK FACTORY. In reply to Mr N. R. Robson, Paeroa, the chairman said .that the Wah toa dried milk factory had cost £43, 000, and Mr W. Marshall had been paid on a 10 per cent, basis on that sum. The estimate had been £38,000. The chairman stated that much had been said about the 10 per cent, basis, but he could assure the meeting that the company had every reason to congratulate itself on the bargain made and the satisfactory way in which the work had been carried put. Any loss on the undertaking was not incurred in the erection of the building itself. Mr T. Considine, Awaiti, asked, as the old company was dead, what had the new company to offer ? A proprietary concern was getting a good “leg in” in the Netherton district, and would gain ground so long as the cheese factory remaired closed. He contended that the whole position had been brought about through the “stubborn action of the company.” He contended that proprietary concerns were a necessity in the district to check the actions of the N.Z. Dairy Co. The Netherton people wJre willing to stick to the big company, but the directors would have to work in and assist the suppliers and put matters or. a proper footing. He asked if it was not possible to take the factory over, say, on a sixty per cent, basis. The speaker continued to discuss the action of the directors in no uncertain manner, when the chairman interrupted and stated that when the company offered to assist the farmers they straightway thought that the company was trying to make something put of them, A list of figures comparing the prices of total pay' ments made by the proprietary concerns in the Auckland province was read, showing that the N.Z. Dairy Co. had made the highest pay-out, which fact left no room for argument. The chairman explained in detail the policy adopted by the company in dealing with shares,, and stated that it was impossible to adopt one system for any particular district. Regarding the suggestion that the company should take over the factory on a 60 per cent, basis, this could not be considered. • LIQUIDATORS’ FEES. Mr Considine took exception to. the sums of £7OO which had been paid to Messrs Buchanan and Goodfellow as liquidators of the company, and contended that they were the only persons who had benefited by the amalgamation. Mr Walters explained that the £7OO was a very conservative sum to pay, and had the fees been paid on a percentage basis the amount would have been considerably greater. The fees had only been paid after consultation with the company’s solicitors. In reply to Mr Considine the chairman said that he and his cp-directors would be quibe willing to meet the Netherton settlers and endeavour to come to some agreement, but only provided a majority of the suppliers wished it. The meeting closed with a hearty vote of thanks to the chair.