DAIRY AMENDMENT BILL.

Putaruru Press, Volume II, Issue 51, 9 October 1924, Page 3

DAIRY AMENDMENT BILL.

A DRASTIC MEASURE. The proposed amendment to the Dairy Industry Act, 1908, to validate the compulsory allotment of shares to shareholders has caused grave concern among the farmers of the district, especially to those who were once shareholders of a large co-oper-ative concern and who are now supplying other companies. The explanatory memorandum of the Bill explains that it has been prepared as a result of the recent judgment pronounced by the Supreme Court in the case of Macdonald v. the Normanby Co-operative Dairy Company, Limited, to the effect that a co-operative dairy company has no authority, apart from express contract with individual shareholders, to require its members by virtue of provisions in the articles of association to accept additional shares in the company. By reason of this decision doubts have arisen as to the validity of certain past allotments of shares. One of the objects of the bill is to validate the allotment of such shares. It is explained, however, that the Bill does not interfere with the particular allotment of shares which was the subject matter of the case referred to. It does not validate allotments which were objected to in writing by the shareholders if on lodging their objection they ceased to supply milk to the company. The Bill takes cognisance of another case, that of Shalfoon v. the Cheddar Valley Cooperative Dairy Company, in which it was decided that a co-operative dairy company could not by means of its articles of association require its shareholders to supply milk, cream, or other dairy produce to the company, but that the supply of such produce must be the subject matter of special agreements. The Bill provides that existing articles of association shall be deemed to be valid and effective notwithstanding the judicial determination; further that cooperative dairy companies may hereafter effectively provide by their articles for the supply of milk and other produce by shareholders. MEETING OF PROTEST.

A meeting of dairymen was held at the Morrinsville' sale yards after the stock sale on Friday but owing to the lateness of the hour most of the dairymen had returned home. Nevertheless about 40 farmers waited for the meeting, which was addressed by Mr. R. J. McCausland (chairman of directors of the Morrinsville Dairy Company and chairman of the Auckland Provincial Dairy Companies’ Association) and Mr. E. McGregor (solicitor, of Morrinsville). There was not a large amount of discussion but it was eventually decided to protest against the Bill until the Minister sent each company a copy of the proposed legislation in order that an opinion may be formed as to its merits and evidence given before the Bills Committee.

SMALL COMPANIES’ ATTITUDE. A meeting of the Auckland Provincial Dairy Companies’ Association was held in Morrinsville on Monday, Mr. R. J. McCausland (Morrinsville) presiding over: Messrs. F. Board (Te Aroha), E. Ruaserstrum (Waikato Valley), J. C. Pearson (Hinuera), Bell (Sunny Park), J. Watts (East Tamaki), D. J. Rogers (Hauraki Plains), McQuorkindale (Horsham Downs), F. 11. Leonard (exporters). Messrs. J. E. Green (secretary of the Hauraki Plains Co.), J. L. Faulkner (of Morrinsvillle, secretary of the Association), and Mr. E. McGregor (solicitor, of Morrinsville), were also present. At the conclusion of the meeting the purport of the resolutions carried at the meeting were given to the reporter by the secretary, as follows: It was decided to draft a circular letter to all members of Parliament, to independent dairy companies and to other persons interested, pointing out the effects and probable outcomes of the proposed legislation. Mr. Mc'Gregor was appointed solicitor to the association, and it was decided to recommend that the chairmen of directors of all companies represented on the association and Messrs. McGregor and Faulkner go to Wellington to represent the association before the Parliamentary committee to hear evidence on the Bill. An urgent wire was dispatched to the Minister of Agriculture asking that at least ten days’ notice be given of the meeting of the committee. OPPOSITION AT WALTON.

A meeting of the Walton branch of the Dairy Farmers’ Union was held on Monday night, Mr. W. Mapp presiding over an attendance of 15 members. Messrs. J. C. Pearson and J. L. Faulkner were present by invitation to address the meeting on the various aspects of the Dairy Industry Amendment Bill. After a few questions were asked and answered a motion was carried with one dissentient “ That this meeting of Walton dairy farmers and suppliers of the N.Z.C.D.C. emphatically protest against the proposed Act and urge that it be not placed on the Statute Book.”