NETHERTON FACTORY.

Hauraki Plains Gazette, Volume XXXVI, Issue 4873, 4 September 1925, Page 2

NETHERTON FACTORY.

GROUP TO BE WOUND UP. PLANT TO STAND FOR TWO YEARS Shareholders in the New Zealand Co-operative Dairy Company’s Netherton cheese factory discussed and settled the fate of their factory at a meeting in the hall last evening. Mr W. Goodfellow (managing director), and Messrs. W. C. Dixon (cheese superintendent), W. Blakeway (branch manager), and G- Buchanan (local director), were present, as well as about thirty suppliers of the company. In opening the meeting Mr G. Buchanan said that the question of the future of the factory had been discussed at several meetings of the directors, and at the last meeting the _ matter had been left to Mr Goodfellow, who-had several propositions to put before shareholders. Mr Goodfellow addressed the meeting at length on tiie working of the whole company on the lines of his address at the .annual meeting in Hamilton as published. Dealing with the local factory, Mr Goodfellow said that it stood on the books as £6242. The shares issued represented £7022, and these were paid up to £5682. There were four methods of dealing with the factory. The first w.as to convert it into a butter factory. This wofild cost £5,000‘, and the cost of production would be very high. This had been turnea down. The next proposition was to utilise it as a casein factory, and the third was to reopen it as a cheese factory. This would not be done unless there was a guarantee of 800 cows. The final proposition was to - dispose of the plant and the cottages. Cheese shares would be transferred to butter shares. The company was prepared to issue fully paid up butter shares to half the value of cheese shares held. It was estimated that the plant and cottages could be sold for £2400. It would be some considerable time before .the company could ' realise on the land and building. In the event of shareholders transferring, a guarantee to supply for two years would have to be secured.

The meeting was then thrown open for discussion. No resolutions in favour of butter or casein were forthcoming, and it was moved by Mr J. A. Reid, seconded by Mr Harms, that the group be wound up. This was. carried by 17 votes to one. The final proposition was then considered. In reply to Mr Harms the directors said that the matter of shareholders who had left the district would be settled at a later stage. In reply to Mr Vowles Mr Buchanan said that “A” cheese shares would be transferred to “A” butter shares and “B” shares to “B” shares. Several shareholders spoke in favour of the change to butter. Mr Considine pointed out that the factory could not be removed, and in time .to come it might be reopened. He advocated keeping the cottages. Mr Reid said that if shares to the value of 12s 6d or 15s were given, shareholders who had ceased to be suppliers would probably come back. Many of them, had left because ’they disliked taking up shares continually. Mr Buchanan isaid that if the plant' and cottages realised more than anticipated it might be possible to give shares to the value of 12s 6d or 15s. He was quite agreeable to taking 10s, and agreed that the plant should be kept intact. Mr Goodfellow said that the company could give an undertaking not to dispose of the factory or cottages for at least two years. This would give suppliers an opportunity of considering reopening at a future date. Two suppliers took exception to the signing Of a guarantee to supply for two years, whereupon Mr Reid pointed out that had such a guarantee been obtained when the factory was. being rebuilt after the fire it- would still be running to-day. Mr Reid, in moving that the offer be accepted, advocated that shares .to the value of 12s 6d*in the E be granted, and that suppliers transfer individually. $ Mr Goodfellow said that the directors had considered the matter very carefully and could not hold out a. better sum than 10s. Mr G. Death moved as an amendment that the matter be deferred for a year. Seconded by Mr Goble. Several speakers spoke against the amendment, and pointed out that the sharehloders had decided that the group be wound up. In reply to several speakers Mr Goodfellpw said he would recommend to the directors that those who al- ’ ready had sufficient fully paid up shares would get their cheese share, capital in cash. This statement was greeted with applause. The amendment was put to the meeting and lost, and the mtoion was carried by 16 votes, to 5. -■ Ini the discussion on general topics suppliers took the opportunity to ask several questions relative to the Control Board and its work. Mr Vowles said that the Ratepayers’ Association had decided to ask the Public Works Department when it was re-erecting the shed bn the wharf to have the structure built three feet higher than at present so that vehicles jould be backed into it. He moved that the directors use their influence, and endeavour to have the shed built on the wharf.—Carried. At the conclusion of the questions' Mr J. A. Reid moved a vote of thanks to Mr Goodefllow and the other officials of the company for attending. This was carried by acclamation.

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