DRAIRY FACTORY FOR FOXTON

Manawatu Herald, Volume XLVI, Issue 2780, 4 September 1924, Page 2

DRAIRY FACTORY FOR FOXTON

SFCCESSFUL MEETING OP SUPPLIERS.

A £2f),ofio GUARANTEE.

In furtherance of an agitation initiated by the local Chamber of .mmeree, to establish a dairy fac-

tory a! Foxton, Mr Petersen, representing a firm with headquarters ■a London, addressed a meeting of those in! vested in lin* Town Hall upper mom on Tne-day evening. Mr Peter.-en was accompanied by Mr Rasmussen, who had made a canvas- ,(f prospective suppliers in the disiriet. The response lias justified the linn in promising the erection of a Uniter faetry to operate ( :uiy next year. The Mayor, in opening the meeting, said its object was to discuss the pros and cons of the proposition of erceting a dariy factory in Foxton. The object was a deserving one as a butter factory in our midst meant progress. There had been some talk of sites for such a factory, but he considered the river bank an excellent site. The Harbour Board were going to build a large shed for general merchandise at the wharf and he thought it.would be a good idea to have provision made for cool storage as 20,000 tons of dairy produce was exported from this district annually. He considered a factory in Foxton would help shipping. He then gave del ails of freight costs by rail inenrred by the Shannon factory in the past and pointed out that shipping was better than railing dairy produce. He then introduced Messrs Petersen and Rasmussen.

Mr P.etersen said he was pleased to see such a large gathering. He was also pleased to see the Mayor in the chair. The Mayor of a town always stood for the progress of the country. Personally he could see no reason why Foxton should not have cool storage and even a grading store. There had been a good deal of talk about erecting a factory in Foxton for some years but they now had concrete facts before them. Many small place- had commenced on similar lines to those suggested for Foxton and had produced thousands upon thousands of pounds revenue for the district. His firm’s proposition was to erect a factory and run ir as a private concern for a few years ami then to allow the suppliers to take it over if they so desired and run it into a co-operative concern. Provided there was sufficient supply guaranteed his firm would build a factory. He then asked those present, to submit auy questions which he would be pleased-to

- answer. f Air M. E. Perreau: How many 1. cows would he required to warrant - the building of the factory?—“A----s bout 1000.’" The chairman: What would the , cost, of the factory he? —“An up- ; to-date factory sueh as we propose - to erect, would cost £4,000.” Con--1 tinning, Mr Petersen said that his r lirm was prepared to hack a guarantee up to £20,000 to make thepro--3 ject a payable concern. He said the 1 butter would take a certain time to get Home and that suppliers would ? haw to he paid in ihe ‘meantime. ‘ Mr f. Woods: Is your firm prepared t.j coiled cream from suppliers? Air Pctcfscn said it was intended to make it collection by motor lorries. They would.do all main roads ami by-roads where it, was a payable run. ‘ For instance, they would not go two miles to collect JlJfilbs. of cream. The whole coni«*m had to he a payable proposii.nu as suppliers were to benefit. > Mr Christie asked if a canvAss had been made to get suppliers. ’ Air Petersen replied that 800 cows were already guaranteed. ( Mr Woods asked if the firm would be able to pay out like the Shannon , factory hud been doing lately. , Mr Petersen said that was a hard question. 11c could quote other , tactorlus in the Dominion that had , paid out as well as Shannon, but he was mu in a position to say what the exact position of the Shannon , factory was. Shannon was a cooperative factory and a good con- , tern. He was not present to run . down any factory. If his firm started in Foxton there was every pos- • Ability that they would he able to pay out as good as Sliauuou. He [ could guarantee them a pay-out aImve a big firm in the Dominion he could name. Questioned as to whether the firm would be able to use the sewerage scheme, the Mayor said he did not know what effect it would have on the microbes in the septic tank. Mr Woods said that the discharge from the factory would only be washing-up water. In regard to water supply, the Mayor said that the Council would only be too pleased to supply the factory with 4,000 gallons of water a day. Air Petersen: That’s one difficulty overcome. Mr Woods asked how long it would be before the factory would be erected if a canvass proved satisfactory. Air Petersen said that half the present season was done. It would not be worth the expenditure to erect the factory immediately as the supply for half a season would not warrant it. The building could be erected within three months. He would suggest having it ready for next (Spring if the canvass was satisfactory. Air Woods pointed out that suppliers would like the factory to be in operation as soon as possible as a great number of them were .very dissatisfied at treatment they had received at the hands of certain

factories in regard to weights and tests.

Mr Petersen said he was pleased the question of weights and tests had arisen. His firm was prepared to allow suppliers to appoint their own private tester, provided, of course, they bore such expense 'thereby incurred. He again referred to the factory and said suppliers could take the concern over after a few years at a guaranteed price. He could not give any idea of that price now owing to the fluctuation of butter. Goodwill would have to be taken into consideration also. Mr Woods: That might be too hot. Mr Petersen said the price and goodwill could be settled by arbitration. The firm would expect interest on their capital, which was only fair as they were laying out a large sum. Mr Wilby: How long would you want suppliers to guarantee supply for? Mr Petersen said he thought about five years. If a supplier stopped milking be was in no way under any obligation to the factory, but they would expect him to keep up his supply so long as he owned that individual property. Mr Petersen then described the class of manager he intended to send to Poxton. The man he had in view had started a factory eleven years ago. After five years the factory had paid for itself and it was now in that happy state when it no longer required a sinking fund. The manager had been in charge the whole time and the last pay-out was 1/7*.

Mr Woods: From that I take it the factory would pay for itself in five years and then your firm wants good will. Mr Petersen pointed out that the firm was undertaking all the work and the suppliers were in no way responsible as they were in a cooperative concern. The firm wanted interest paid on money over and above interest and depreciation. Mr Perreau asked if Mr Petersen would divulge his firm’s name. Mr Petersen: I am unable to do that until something definite is arranged. I can assure you, however, it. is au outstanding firm and it has its headquarters in London. Continuing, he said the pay-out would be guaranteed a minimum of id per lb. more than the Dairy Union paid. AH Woods said that, some small farmers had loans fropi other factories. Would Mr Petersen’s firm wipe these off? Air Petersen said his firm was prepared to do so and to advance money for -stock to suppliers, provided there was sufficient security. They would also be prepared to a-„ quip suppliers with seperators, payment, for same to be at so much a month, over a period of two years. Air W. E. Barber, speaking as a director of an opposition factory, said (lie terms offered by Air Petersen’s firm were very liberal. They would have to see into the question of goodwill, however. Air AleAlurray: Would your firm s'upport eool storge for Foxton? — "Absolutely. By obtaining such facilities increased shipping results. That is what Foxton wants —more shipping and cheaper rates.” The Mayor: IPs no good backing cool storage unless regular shipping is guaranteed. Air Petersen: I think cool storage is just the thin edge of the wedge as regards shipping. The Mayor: It will certainly help. Air Woods asked if Bainesse had been canvassed and pointed out that a number of suppliers would, come from that locality. All- Kasmussen said he would look into tiie matter. All- Petersen said the factory would not run a store as they did not consider that. fail - . They would buy in bulk for suppliers, however, if so requested. Air Woods moved, seconded by Air Wilby, that it be a recommendation Horn the suppliers present to Air Petersen’s firm to erect a factory at Foxton, ‘to commence operations on January Ist, 1925. The Chairman brought up the question of boundaries. He said overlapping with other factories’ distiiots resulted in small pay-outs. One reason why Levin and Shannon factories had been so successful was that they arranged boundaries, to which they adhered. Speaking as a supplier ,to the Shannon factory, Air Chrystail said that he felt it a point of honour to keep up his supply to that factory, which had served him long before ever Foxton took action in the procuring of a factory.

Mr Mf.Murray to the Chairman: Would you suggest a boundary halfway to Shannon'/ —Yes. Then Pox ton suppliers at present supplying to Shannon would supply to the new factory"/ —Oh, no. They would still keep on with Shannon. The motion was then put and earned unanimously. Mr Petersen said the building would be of concrete foundation, and constructed of wood and iron. A voice: That will soon burn down in Poston. Continuing, Mr Petersen said the suppliers would be able to take over the factory after one season. Votes of thanks to the speakers and the chair concluded the meeting.