N.Z. DAIRY COMPANY.

Hauraki Plains Gazette, Volume XXXX, Issue 5452, 24 July 1929, Page 2

N.Z. DAIRY COMPANY.

ALTERATION IN SHARE CALLS. EASING OF THE RATE. The recent decision of the board of directors of the N.Z. Co-operative Dairy Co., Ltd., to reduce the annual call, or deduction for butter shares, as from June 1, 1929, is of great interest to both present and prospective shareholders. ■ The reduction from the previous figure of id per lb butter-fat to id means that the position of incoming shareholders is greatly eased, and so, far as their contribution to capital is concerned the lowering of the rate of deduction gives the new supplier a longer period in which to pay up his share capital, and also allows of a greater payment to him in cash just at the period when he requires capital to become firmly established on his farm.

• The position of the original shareholders, who, by reason of holding fully-paid butter shares, received their shareholders’ bonus in cash, is duly safeguarded, as under the new system they will receive, as ordinary payment, the due proportion of the amount they previously received as shareholders’ cash bonus. Moreover, the lowering of the rate of deduction makes the position exceptionally easy for new and thus tends to strengthen the co-operative movement in the districts over which the company operates.

The easing of deductions for shares as outlined above is made possible by the exceptionally strong capital posi- • tion of the company. At May 31, 1928, the paid-up capital had reached the figure of £1,056,041, compared with a property and plant valuation of £1,118,938. The * past season’s operations will still further enhance this exceptional position, and the paid-up capital will reach approximately £1,100,000. One of the outstanding results of the company’s policy of strictly conserving the capital position is that it has made possible resumption of shares to loyal shareholders who have > ceased dairying. Since the formation of the N.Z. Co-operative Dairy Co., Ltd., in 1919-20, shares to the value of £154,605 have been resumed from shareholders who have ceased dairying operations in the company’s territory, and it has no doubt been very gratifying to those, shareholders to recover their share capital in this manner.