Dairy Factories.

Manawatu Herald, 14 July 1898, Page 2

Dairy Factories.

» The Minister of Agriculture's Dairy Industry Bill, brought down by Governor's message, makes pro vision for the ereotion of dairies by loan, as Fart 2 of the measures seeks to provide that dairy companies may make application to the Minister for a loan under the Act, the total amount that may be advanced in any one year being fixed at £50,000. Loans are only to be granted for the acquisition of sites, buildings and plant and full particulars of the dairy company are to be furnished when the loan is applied for. No loan shall be granted unless the Minister i 3 satisfied as to the capacity of the dairy factory and as to the milk supply, and the security is to be valued by a competent value atr the cost of the company. The amount of the loan is in no casa to exceed £2000, nor shall it exceed three fourths of the uncalled capital of the company. When a loan is granted in aid of a dairy factory to be constructed by the company, the building is to be constructed under the supervision of an inspector appointed by the Minister at the cost of the company, and no final payment shall be made except upon the written certificate of the inspector. The amount of the loan, together with interest, at the rate of 5 per cent per annum it to be repaid by half-yearly instftl'

ments extending over not more than 15 years, and the borrowing company will be required to execute a first mortgage over all its property (present or future), to secure the repayment of the loan. The pay. ments will be a first charge on the factory, and until they are paid no profits, dividends, or bonuses shall be paid to the shareholders, besides which the company will be required | to set aside 5 per cent of its profits yearly as a reserve fund. For the purpose of providing funds out of which all advances under the Act may be made, the Colonial Treasurer is empowered to raise money from the balance in any of the accounts mentioned in part 8 of the Public Revenues Act, 1891, or in any other accounts containing public moneys which may lawfully be invested in such securities the Gov nor-in-Council authorises or from the Public Works Fund, or from any bank, monetary institution, or per* son. As security for any money raised debentures may be issued, bearing interest at a rate not exceeding 4 per cent per annum.