DAIRY PAY-OUT

Marlborough Express, Volume LXXVI, Issue 242, 14 October 1942, Page 4

DAIRY PAY-OUT

DIFFERENTIAL FAYMENTS. LESS FOR NON-SHAREHOLDERS. In moving that the Blenheim Coop. Dairy Co. declare a dividend of 21 per eent. on paid-up capical at yesterday's annual meeting, the chairman, Mr W. Kennington, said he must take the blame for bringing this forward as a policy matter. In attending conferences he had found a general view that true co-dpera-tion lay in paying out all profits to suppliers and reducing interest payments on share capital to vanishing point. He suggested a 2k per cent. dividend this year a s a first step. "Dry" sharehoiders, of whom there were not many and no large ones, would then have the chance to stll back their shares to the company. They wanted to be a purely dairy farmers' company. and the policy would also save taxation. Mr A. G. Wratt: How many suppliers have we who are not sharehoiders and under your plan would receive the additional pav-out? The secretary: About 80. After considerable discussicn, the meeting approved the 21 per cent. dividend and approved the principle of a differential pay-out for suppliers as between sharehoiders and nonshareholders. It was decidcd to recommend thc directors to take such steps as were1 necessary to give effect tg this. y