MEAT PACKING COMPANY

Hauraki Plains Gazette, Volume XXXVII, Issue 5035, 4 October 1926, Page 3

MEAT PACKING COMPANY

PAYMENT OF GUARANTEE.

MORAL OBLIGATION ON SUPPLIERS

The meetng of representatives] of the ■ various co-operative dairy companies: held to. consider the reimbursement of thq South Auckland directors on 'the New Zealand Meat Packing Company, who were called upon ■to honour their personal guarantee given to the bank on behalf of the, company, decided to request the suppliers of the several organisations to consent to a voluntary contribution of 3s 6d per 10001 b of butterfat supplied towards, the amount of the three .directors _ were called upon to pal, states the Waikato Times. Each of the three Wajkato directorsi had to find £5700 and no sophistry or quibbling can suffice to convince any fair-mind-ed man that they should be permitted to stand that loss. The guarantee was given on behalf of the shareholders’ and pig breeders df the district. The directors pledged their faith in the soundness of the company, and the integrity of the shareholders when they placed their signatures to the document. . They did not expect to reap any personal benefit frohn their action—they .could not have done so under any conceivable circumstances. They believed that the company would recpver itself through their action, and they were actuated by a desire to serve the.suppliers by preserving an industry of great importance to all dairymen. They did not imagine that they would be called upon tof honour their signatures to the guarantee. Had such a possibility occurred to them, they had sufficient faith in the integrity of thq shareholders to feel that they would stand by them and not permit them to personally bear the loss. At several meetings of suppliers speakers haye expressed the opinion that there is no liability on - shareholders, and supplier® to reimburse the' directors, It is admitted that legally. there is not, but the moral obligation cannot be gainsaid, and it is pleasing to note that the representatives of. the dairy companies on Wednesday faced the position and decided upon steps by which it is hoped to meet the obligation., There is to be no compulsion ; contributions are to be on a voluntary basisi. The matter has been before, the suppliers fo*r some time. and those 'resident in. Taranaki have discharged. their liability. It is much to. be hoped, for the good name of South Auckland, that it will soon be placed on 'record that the three local directors of the ill-fated Meat Packing Company ar® also being reimbursed.