PROPOSED WALTON FACTORY.

Putaruru Press, Volume VII, Issue 271, 17 January 1929, Page 6

PROPOSED WALTON FACTORY.

LOCAL COMPANY FAVOURED. j A further meeting of Walton farmers was held in the Public Hail on Thursday night to discuss the question of the erection of a cheese factory, Mr. F. E. Harris presided, and explained that there had been an idda for some time that Walton should have a cheese factory. At a previous meeting it had been decided to ask the N.Z.C.D.C. to erect a factory. At that, meeting he had suggested that a further meeting should be called, as some were of the opinion that a local company should be formed and build the factory.. That was the reason why the present meeting was called. The meeting was not called to knock anything on the head; if the proposal for a local company did not succeed, then the other would find support. Mr. J. E. Curtin, dairy consulting engineer, then .addressed the meeting. He had had some thirty-five years of experience in the business. He understood that there were 3000 cows within a radius of s three mi le s of Walton. The cost of a factory for 1500 cows’ supply would be about £5500, with provision to increase from a 6-vat to a 10-vat factory. The cost of plant would be about £3OOQ, and probably £IOOO would be required for manager’s house and bach. The cost of production was from 3d to 31d per lb, covering cost from the farm to f.o.b. Tatuanui conducted the whole of its business within 3d per lb, but they were an old-estab-

lished company. He had superintended the erection of 54 dairy factories, and was conversant with the whole business. He could not see how they could possibly go wrong in a district like Walton. He put in all the machinery for the Morrinsville Co-op. Dairy Co. During the past winter that company greatly increased its plant, by 25 per cent of its capacity. Now, within seven years of its inception, the company did not owe a penny to anyone. Again, he would assert that Walton could not possibly go wrong in erecting a factory.

Mr. T. J. Ryan, secretary of the Norfolk and Sunny Park dairy companies, said he thought the outlook for ' cheese was good for several years ahead, and better than butter. It was hard to give anything definite, but last year cheese was from Id to lid ahead of butter. Authorities were of the opinion that New Zealand would go in more for cheese. Norfolk practically rebuilt its factory about four years ago, and were about clear now. Last year they made 100 tons of butter and 400 tons of cheese, and this year they would make about 600 tons of cheese and 50 tons of butter. Mr. Curtin said the figures he gave were for a wooden structure with concrete foundations. The cost of everything would he about £10,500. To Mr. Southee’s question as to the relative prospects of cheese and butter, the chairman instanced Tatuanui factory, the average net payout of which over a period of eight years was Is 7.86 d, and the cost of production under 3iSd per lb. Mr. Moroney explained that the

bank would advance the money for the factory, less 25 per cent, which the suppliers would require to find.

Mr. Walter McGill pointed out that if the N.Z.C.D.C., Ltd., put up the factory the present shareholders could have their holdings transferred, which would be of considerable assistance. The costs were about the same as Mr. Curtin had quoted. The big company paid no interest on capital, incidentally avoiding income tax. This was an important consideration, as the interest had to be paid whether the factory flourished or not.

Mr. Moroney wanted to know what the big company had done with the £90,000 or £IOO,OOO they would otherwise have had to pay out in interest. Mr. McGill: The suppliers have got it. Mr. Moroney did not seem to be convinced. Mr. McGill quoted twenty of his company’s factories, the average payout being Is 8d plus. Mr. Curtin pointed out that Tatuanui paid out Is 8.20 d, plus 5 oer cent interest on capital. Mr. Southee maintained that the object of the meeting was to form a Walton company, with all due lespect to the N.Z.C.D.C., Ltd. Mr. McGill said he had been asked to come to the meeting, but had no intention of trying to thwart the wishes of those present. Mr. Moroney produced a letter stating that Norfolk paid £4OO a year on £BOOO (5 per cent) and would pay out a total of £3OOO in interest to shareholders. Mr. McGill said the big company’s shareholders got a cash bonus. The shares were 8 resumed when a man left the company. Mr. Southee repeated that the meeting was getting away from its purpose. He was pleased to get the information, but with all respect to them there were some, and he was one of them, who could not see eye

to eye with Mr. McGill and the N.Z.C.D.C., Ltd. Mr. Wright did not think a vote could be taken, as the meeting was not representative enough. There were about four different companies operating in Walton, and if a factory were put up by any one of them there were other farmers who would stand out. The only successful way was to form a local company, with their own directorate, and rights of the property. (Applause). There was not one local co-operative cheese factory in the Whikato that was not a success. Walton had not got a factory of its own yet, but had paid the price of one several times over. Once any outside company put in a factory at Walton that would be the end of any local company being formed. He was quite prepared to I sign up for a local company, which I would be building up an asset in the district. There were several banks [ that were very anxious to finance a Walton cheese factory. Mr. Moroney: Walton could have one of the finest factories in New Zealand. Mr. A. E. Gillingham proposed that a committee be formed to secure information. Mr. H. Moore seconded. Carried without dissent. Messrs. D. Moroney and F. E. Wright were appointed. A further meeting is to be held when the information is available.