The Proposed Artificial Manure Company and the Farmers' Union.

Pukekohe & Waiuku Times, Volume 4, Issue 85, 20 September 1915, Page 2

The Proposed Artificial Manure Company and the Farmers' Union.

I TO THE EDITOR.! Sir,—The company for the manufacture of superphosphates and other artificial manures may ba, and i hope is, an unexceptionable commercial proposition, but there are certain matters in connection with iis formation that cannot be made too widely known among the farming community. On Wednesday last the Central Committee -of the Graizers' section of the Farmus' Unioo refused to recommend their members to take up shares unless (he exact position of Mr Schmitt, the eecretiry ot the Union, was tlisdos:d in rrgard to the company. On Saturday niebt at Mauku, Mr Schmitt informed his' audu.nca that the vendors were to receive from the company twenty thousand fully paid up one pound (£1) shares in return for certain options over contracts and sites Out of that sum he (Mr Snhmitt) was' to receive one thousand fully paid up shares for his services in assisting to float the company.

Mr Schmitt stated that thousands of shares had been applied for before the members of the Union were aware that he bad a direct financial interest in the flotation of the company. No prospectus had been issued, but if applicants were nut satisfied with the prospectus when tbey saw it they would not be bound to complete the transaction. Ap, however, there is no reservation of any sort upon the application form it is plain they will be legally bound to fulfil their contracts. By allowing the secretary of the Union to addres branches on Union matters generally and then to proceed t) endeavour to Bell shares in which he is so largely interested, without disclosing bis exact position, the Executive of tha Farmers' Union placed itself in an impossible position.

Mr Schmitt as the trusted employee of the Farmers' Union, and Mr Schmilt as the agent of perrons who have something more or less valuable to sell for £20,000, will hardly sub-tend the same angle in a prospective investor's eye. Unly one course can be with honour pursued, and that is to .destroy the application forms and commence afresh.—l am, etc.,

HENKY E. R. L. WILY. Mauki', 2'Jth September, IUIS.