Page 4 Advertisements Column 1

Pukekohe & Waiuku Times, Volume 8, Issue 477, 27 May 1919, Page 4

Dairy Amalgamation Circular to all Shareholders and Suppliers The New Zealand Dairy Association, Limited. The Waikato Co-operative Cheese Company, Limited. The Waikato Co-operative Dairy Company, Limited. Hamilton, May 17th, 1919, Several attempts have been made in the past to amalgamate the larger dairy inteiests of the South Auckland Province. Some months ago a meeting of the combined Boards of the New Zealand Dairy Association and the Waikato Co-operative Dairy Company was held m Hamilton and as a result an Amalgamation Committee was appointed. Subsequently, in order to give better representation to all parties interested, additional Directors were added to this Committee which to-day consists of the following members: The New Zealand Dairy Association, Limited—T. C. Bliekett, H H. MeKenzie, J, T. Young, W Claud Motion, W. E. Clark The Waiktto Co-operative Dairy Company, Limited —Jos.Clark, Chairman; H O Cooper, Dynes Fulton, R M Somerville. The Waikato Co-operative Cheese Company, Limited—J as. Clothier In the first place negotiations were entered into with Jos. Nathan & Co.. of Wellington, lor the purpose of varying the existing (Glaxo) agreement to remove difficulties in the way of amalgamation. However, the negotiations proved abortive, and early in April the Committee decided to take further legal advice in Wellington. A scheme was thereafter at once formulated and adopted by the three Boards of Directors. It was further decided that— The Companies each hold an Extraordinary General Meeting of Shareholders in HAMILTON on FRIDAY, May 30th, at 2 p. m., when a vote on the Amalgamation proposals will be taken in the manner provided by the Articles of the Companies. The Directors have arranged to hold some 50 odd meetings throughout the South Auckland Province for the purpose of personally placing the fullest possible details before Shareholders. They will give everv opportunitv for questions to be asked, as it is the wish of the Amalgamation Committee that all should have a thorough knowledge of the scheme before recording their vote. The Amalgamation Committee's proposals are as follows : I. To form a new Companv to be called the New Zealand Co-operative Dairy Company Limited, with a nominal capital of £300,000. divided into 300,000 shares of One Pound each 11. The new Company to take over all the assets and liabilities of the Waikato Co-operative Dairy Company, Limited, the Waikato Co-operative Cheese Company, Limited, and the New Zealand Dairy Association, Limited, with the exception of the Matamata and Matangi (Glaxo) Factories. TIL All assets to be valued by six valuers and one umpire under three separate headings (a) Land and Buildings (b) Machinery and Plant (c) Office Appliances. Securities, Book Debts, etc., etc. The object being to assess the relative value of the shares in the three Companies. IV. Shares issued by the New Zealand Co-operative Dairy Company. Limited, to be exchanged for shares in the existing concerns, paid up according to valuation. V. The Waikato Co-operative Dairy Company. Limited, and the Waikato Co-operative Cheese Company to go into liquidation. VI. New Zealand Co-operati\e Milkfoods. Limited, with a nominal capital ol £IOO,OOO consisting of 20,000 shares of £5 each to be formed as a subsidiary Company for the purpose of manufacturing dried milk only. VII. Non-suppliers' shares to be resumed at par by the new Company within twelve months from all who have given up dairying. VIII. Surplus shares to be resumed by the new Company, at par, from all suppliers holding shares in more than one of the Amalgamated Companies. IX. All payments to be on a butterfat basis. X. The Amalgamation Committee to become Trustees tor the new Company in the first instance and subsequently provisional Directors tor a period ot not exceeding six months—T. C. Blackett to be chairman. XL Suppliers' Committees to be formed in suitable centres. XII. Election of nine Directors within six months on the Ward system; three Wards to Inarranged for. XIII. Directors to elect their own Chairman. XIV. Wm. Good fellow to be appointed General Manager, and IT W. Pent to be Secretary, both for a period of six months. Should this scheme be adopted the New Zealand Dairy Association Limited will he kept in existence tor the purpose of carrying out important contracts entered into with Joseph Nathan and Company, ot \\ ellington The New Zealand Co-operative Milkfoods. Limited will he a subsidiary Company and will not have the power t<> enter into competition with the Amalgamation concern.-. Further, according to the suppliers agreement with the Waikato Co-operative Dairy Company, Limited, Milkfoods Limited can be purchased at any time after two >earhave elapsed. Owing to Nathan's agreement with New Zealand Dairy Association it is necessary to organise the business in this manner, otherwise the Waikato Co-operative Dairy Company's valuable milk powder patents would be useless. Care has been taken, however, to ensure that ultimately the three companies will become one, but the Amalgamated Company will be in control in the meantime. Your Directors consider the disadvantages ol Amalgamation are practically nil, whereas the benefits to be derived are exceedingly great. Firstly, there will be an all round reduction in general expewses in almost every department. Secondly, a saving will be effected in cream cartages. Many district* will be served just awell with oiu' cart as with two or three. Thirdly, railway freight- will be reduced, as cream would be railed to the nearest centre". Fourthly, the quality of the product will also be improved, because the cream being railed t<• the nearest centre, the length of time in transit will be greatly reduced. Fifthly, an immensely strong concern will be the result ; a company at all times able to successfully light capitalistic enterprises if antagonistic to the producers' interests. Sixthly, by controlling the sale of the Company's produce in London atter 192 a, when the Government contract eUpires.an effort will be made to fix prices on lines similar to the Danish system. An increase of os. per cut. would result in an additional profit to the suppliers of the two Companies of £J».>.oOO pet year. It is believed the enormous output of the Amalgamated Company will give the required power to carry out such a necesaary and urgent reform. Many other important .schemes will be pos-ible and be introduced if Amalgamation is carried out. lor instance arrangements will be made for the advancing of money I" >uppliers tor the purchase ol <Jair\ stock and to the -ma'l t'unnpr in particular. In -'in lii-ion. we desire to hat \our 1 'iiettoia have given these proposal.- their mest carelul consideration. Ijhey have done their utmost to put forward a proposition, tair and equitable to all parties in e\en reipeet. for by this m enn- only, will a satisfactory settlement be arrived a'. Amalgamation undei existing conditions i- regarded '•> the as essential to the future welfare ol the dairying 'ndu&irv of tilt South Auckland Fhev believr i' will prove to be a profitable venture making: for incr«'ased efficient and the mop economical eoia if y<•' i; bui 11 ess. Vour I'oard and the Ainalgamati f r'.'oiiiiiii'lce (hereb'rf {lc-ip's to t ike this opportunity ol earnestly requesting yourself and other shareholders to lovall' support 'h» proposal* "t your Directors by votinu tor Amalgamation in person o' - by proxy on May Mth. We arc, Youri faithfully, l or and on behalf of THE NEW ZEALAND DAIRY ASSOCIATION, LIMITED. T. C. Blackett, Chairman THE WAIKATO CO-OPERATIVE DAIRY COMPANY, LIMITED, THE WAIKATO CO OPERATIVE CHEESE COMPANY, LIMITED, Wm. Goodfellow. Chairman THE AMALGAMATION COMMITTEE, Jos. Clark, Chairman. N B - It unable to attend the meeting on May 30th kindly fill in the proxy as soon as possible anu return to the Office Some 5,000 forms have been sent out to the Shareholders of the three Companies.