HAIRAU ROAD FACTORY.

Hauraki Plains Gazette, Volume XXXV, Issue 4763, 13 October 1924, Page 3

HAIRAU ROAD FACTORY.

MEETING OF SUPPLIERS. CHEESE-MAKING TO CONTINUE. Practicably all the suppliers to the N.Z. Co-operative Dairy Co.’s Huirau Ro,ad cheese factory attended a meeting on Caturday last. In opening the meeting Mr Sutton, who presided, said that it had been called to decide whether cheese-mak-ing should be continued or a change made to casein or home separation. Mr G. Buchanan ,a director of the company, gave the latest market reports from London. It was considered that the butter market would probably go down slightly, but cheese was likely to reach 100 s. Casein up to the presen. had been almost unsaleable, but was now likely to improve. Sales at £6l had been effected, but there was a very big quantity in store waiting for payable prices. It looked as if the cheese market would improve owing to the decreased output. Personally he was of opinion that the market for butter would fall heavily after Christmas, owing to the increased supply from New Zealand and other countries. In his opinion, therefore, cheese would be the best proposition! He was sorry that Netherton had closed down, and was sure that it would be reopened again. The position in regard to share capital would be the same as had been adopted in the case of the Netherton factory suppliers. A letter from the manager of the company, Mr A. J. Sinclair, substantiating the views on the markets expressed by Mr Buchanan, was read by Mr Sutton.

Mr Buchanan pointed out that iairr.ers should take into consideration the cost of a separator when deciding whether the factory wats to be closed down.

It was explained by Mr A. Sutton ihat if the factory closed down the interest and depreciation would be added to the capital cost, thereby incraasing the shareholders’ liability. Lengthy explanations were given by Mr Buchanan in response to questions regarding share capital. Mr W. Madgwick pointed out that it would be useless continuing the manufacture of cheese unless all the suppliers stuck together. If some few suppliers changed over, the manufacturing costs would be increased to the detriment of the payout to the cheese suppliers who stuck to the factory.

After considerable discussion Mr F Stepheng moved, and Mr L. Henwood seconded, that cheese-making be continued until the end of December, and that a meeting be held prior to then to reveiw the position. The motion was carried yb 15 votes to two

The necessity for all the suppliers to do the same thing, both for their individual benefit and for that of their fellow suppliers, was stressed by several speakers, and it wais explained at length that unless all of them started home separation and supplied the Ngatea factory the favourable arrangement in regard to share capital would not be brought into operation. At the request of a supplier a comparison between the payout of the N.Z. Co-operative Dairy Co. to a butter supplier and that of a certain other company collecting from nearby for th', same amount month by month was read by Mr Tattersail, and on the figures supplied there was a decided benefit in favour of the cooperative company. THE DAIRY INDUSTRIES BILL. At question time Mr A. Sutton aisked the reason for the opposition by several..small co-operative dairy companies to the proposed amendment of the Dciry Industries Bill. Mr Buchanan said that this had arisen out of the court case in which it had been proved that the Normanby Dairy Company had exceeded the powers given in its articles of association by altering the basis of share allotment. Very many other companies working under similar articles of association had in the past found it necessary to do likewise, and the proposed amendment to the Bill was to legalise all such transactions made up till the date of the passing of the Bill. It was, therefore, in the interests of co-operative dairy companies. The opposition voiced by certain cooperative concerns was at the instigation of the speculators, who, having advanced the greater part of the money with which the factories had been built, virtually controlled the directors. Anything likely to cause strife or distrust among the suppliers of the N.Z. Co-op. Dairy Co. was fostered by such speculators.