FAVOURABLE DECISION ARRIVED AT.

Rodney and Otamatea Times, Waitemata and Kaipara Gazette, Volume 1, Issue 16, 12 July 1901, Page 3

FAVOURABLE DECISION ARRIVED AT.

"Ameeting of milk supplers inter-! ested in the abov-- subject was hold! in the Council ChamVrs, Cambridge, I on "Wednesday, whon tlie followinggentlemen were present :— Messrs J Taylor, M. Butler, ,T. Allwill, Norman "Banks, Stone, J. (}. Ward, M. J. Ashwin. W. }I. ]?«!),(_;. Watt (junr.), Beere, Eussol. Brindle. C. Lake, West •G. Eose, Lund, O'lCeoi'e, W. J. And-1 rews, Goodwin, Mr-Connick and onej or two others. ; Mr. Jas. Taylor was voted "to tin-I chair, and explained that the objecti of the meeting was to get an express-i sion 01 opinion as to'whether it was; desirable for them io goki lor co-oper-j ation in the dairying business in this district. " j Mr. Butler said tho position was} that a number of gentlenV,Ti jntorr.-.ted! had formed then:sielver-, into a commit-; tee for collecting isiformation and d;-ta' bearing on co-operative dairy factor-! ies. IJe .submitted the last balance-j .sheet of the Pihama (Taranaki) Cooperative Dairy Co , Ltd., showing a highly satisfactory state of affairs, andi also read the following- letter from Mr. I M J. Crennan, th(- Company-h hoc-; Vet'aiy s—-'Your5 —-'Your favour of tho 6th. inst. i to hand, and contents noted. It has been a great wonder tome that the Waikato daivymen have not taken upj the matter of co-operation on a gene.-;; al basis long before now, considering . that it may be looked oil as the birth- 1 placi- of the factory system in the col- ' t)ny, I was in the Waikato when the : factory was opened by Captain Steele, and at that time there was not a sing-- : le factory in the Taranaki Province. ■ When- co-operation v was started in 1 Taranaki 15 or 16 years ago there was no assured output as at present, an- j from want of knowledge, both pract- 1 ical and commercial, I tliink every one < of the co-operations came to grief, i ' -Now, however, the business is on a " thoroughly sound footing, and there i« ; a minimum of risk. It has taken a ; long time hereto get the farmers to < forget thc-ii* first collapse, but co-oper- i ation has proved i^s boneiit for years. 1 so'wpll that it haf/killedall opositi^h, i and in the course ox two or thrv'O yctars ] more', propriety concerns, I tlvnk", will ] be a thing of the past.- Pih r.:a started in Isovember 1*297 with nlno s\i]ip]i;rs. or sharehi-lfiers, representing 398 cows, ! and at 31st, August, 1898 (end of fi-j: nanciai year) had put through 2,123.|. 892ibs. of milk, froni whicli 89,1501b;--: butter was made; 46,5361b5. of thft was consigned to London, and the , T.'.'.-iainder sold in the colony or Aus- - ,t..-i:i;sia, with the result that share-' h--"'(Vrs got 3-27 pence per gallon of i Il:';;s. for their milk. The second year : th-.v put through 3.076,7981b5. milk, \rhiuh gave them 3-265 pence per gal- : lon of milk. The third year they put through 5,562,9891b5. milk which gave ' 3-6 pence per gallon, or 8-(51 pence per IK for butter-fat, carrying £27 i 17s. lOd. forward after writing-off £187 os. 7d. for depreciation. The i building plant and machinery complete " cost £1870 6s. 7s. Plant: Two 440ga1. i De Laval separators, one Id Humble ) and Nicholson lefrigerator, tanks, coil ! and insulated room, oneoOOgal. Hum- ' ble and Nicholson insulated cream i vat, one 400 gal. Primas pasteuriser or heater, water race, and 15 feet over- ! shot wheel (costing £220), together ' with all necessary utensils and minor < matters to tit the factory up to date. < Finance: Kn-ch shareholder takes up|i one share of £1 for each cow. This is not one each head in practice, and theh first shares taken up are merely ap-j: proximate, but we take the iuo.uk oi'j' IX-ceniber, it usually-having the larg-j: est supply, arid divide each siii-tpl-'o-f'sl. milk fur that momh uv3l days, mulii-!" plied by 2-J-,- as it is ;o:r-ideved that 2a-!: gallons is the a\c;\igv d<.i.!v suripljfor-' ■ each cow. jnid v.'c n'Hust vue shai-. s toi: this—that is :.<ne sliare foe o:v]i 9A-\> gallons per day ■■i'ppjied '"'.iLri;*^ I^--'.- M ember, Should any ,'jupi)lie.T v.at Un'--</' the numb er of sh a v^' ■ ■».-: f] I•■is ■1. •. -,-. ,■.,• ■ then allocate t'^e nece-:>-ir> in1*:!1);-?- t: : Itriap; him up to this standard. W<\ ■ have nj cash ])aymeut on ,sh;u*e.s, bill, gr-t tliem paid up hy deducting Ip. <■>>'• ■cf every 60 gallons of nu'ifc su]iplkd, j ■vhiel*. is oi.-ditc-d to capita! accori.-'ts., Some factories d'-duct l>\ fey 24lbs. oij TnittiiT-fat whH.h (•:)!'.c.-: 1;.) ;tiiout thesame thing-. The banks here advance; tho whole 'oi the money rcrjuired to' ' build and equip, taking as security.! 1. Lien over reel, property. 2, Chap-i pel security over plant sic. 3. Johu,; a.nd f-ev&rai boiid. from all the supplier-1:-:.1 :In about 21 yearf; tlu; sl.ures■ bi-.vo.iie' .. fully paid u;>. In your (•?■■■<:. if \i c;>-;t ' £1800 to fit out "imAuvy, nud tlu-re were 600 cows, this would leave ;'.'1200 'of open liability. To wipe this out out you have future .-d.ar-'s to betaken uij, ■aud then by wriv-Hg oft V.) ] >er *i:-ent-for depreciation, hi a sew years .you have tho debt red"'cod. io a nnall amount. TJIO banks hoir ai'e aTixio-us t;. the Lusiness, •snxd w. g-Kt the (i«:coii-j.puat-ionithe at o.V or Ifi p< r (-.(.'ut -h-i^ ■••■u.h i g to amount. Our ccp^ !^':coin market.iiig is that Mr. MacEwan, of Wellington, ]irovides'tiie 'best-all the year round cljannel. Oh our hoi'ie :^l*.ipin.ents we g-jt cash agawist documents, and in winter sales we-g.et a fortnightly se:+lf;--ie.ent. If there are any points uniondi- !>.' .m I shxll v.^rv afLaliy afford

you information on them on your submitting them." Tho Chairman called on Mr. Stone, (a gentium who has recently arrived from tho Taranaki district) to address ' the nieeting. : _ Mr. Stone said while in the Taranaj!ci district he had been supplying a ; co-operative dairy factory for five years, and it was a great pleasure to give his experience," as it had been a very pleasant one. Previously the dairy farmers had supplied a proprietary factory, and had a great deal of bather, .The upshot of this bother was that fh.e! suppliers had a guarantee given of 3d. per gallon., but a serious loss on a shipment of butter left the suppliers! lamenting. The failure of compliance [with the guarantee, however, proved I the best thing thfit could possibly have j happened, as a fortnight afterwards a factory with 13 suppliers wa- inaugurated. That was "in April, and the factory was in full swing-the following1! (September. The cost«'»:!' instruction etc' at the commencement wu- a bout £'1.'300, i and the rate of interest w.s reduced!, something like a lu-if or .1 per cent! •iftor it was seen that the Company! | was doing well. Tin) -first year they, ;cleared 7d. per lb. for butter-fat after | paying hoavy expenses. Last iinancial| [year they cleared Bj,!d. for II months ;and 9d, the v jjiaiiiing month. He bejlievcd that this year would be more! [than Bd. that aniount, lie might add, jbeing assured; and the factory was [practically paid for. Last year only .1' 11 was |i:-*id in interest, and this yoar! |it would not be more lhaii £2 or £3.! ■At one time there was a sum of over £800 ia hand, this being reduced by the payment of a penny. Ho expected another penny at the end of this ilnaneial year. Yfith hi;? own 5211a.1l supply j ho received m consequence of this payment £491 Gs. (which came in very , handy in the stock month of M&y), , raid he fully expected a similar amount, this year. She plan adopted was not ■ to draw out too lit■ orally in case of a fall in the price oi butter. As a 7'ule, . about 7d. per pound was paid till the end of April, then when the. winter, cows came in they arranged to give ] the sivppliers all that was in the milk, so that there was tlifii no fear of any- ] thing being lield back. This also gave , the winter suppliers the benefit, which was only fair. Most of the sharehold- , ers had paid off their shares. He had 1 paid in all £110, but had not felt the < payment, as the plan adapted was to , deduct one shilling for every 600!b's. , of 311 Ik supplied; as for the guarantee. ] it had .nevertroubled them in the least. «: In the Hush of the season about GOOO.j gallons were put through. The factory , at,its inception only piit through 1000 gallons, so the increase was very f noticeable. Tjately a premium at 2s. 64. f a sJiave iiad been added which /wentj,into tlie pockets of ihe origional sup-j pliers. Their present price in the Com-' N pany under review was £1 2s. 6d. I, Mr. Allwill asked I'.ow many years'^ was it since he Company .started, Mr.i, Stone replying* five. Mr. Allwill asked ( further >if th(-''"initial expenses of £1. 500 wore wiped, off within that time. , Mr. Stime teplied that they wore. ] " The bigger your supply the sooner ! you paid off your liabilities.'" lieply- j ing U> a question os t-> whether the factory was near to a railway line, Mr. j Stone stated it was. Thery was not j much carting- required. j Mr. Lund read a press extract lv.v-j ( ing reference to dairy factories in the]! Wairarapa district, showing Grey town • Co-operative Dairy Company, formed * 1896, nominal capital £2000, amount subscribed £l200"in £1 shares of which r Ifis. 3d. per share had, been paid up and factory cost £1060, record supply per day 1760 gallons, value of outpiit ! first season £2900, this year estimated { at £.5500, price paid last season per gallon of lOibs. weight -IM. Dnleford X Company: formed 1887, turnover dur- C r ing-first year's operations £2336 11s.' Id. in 1900 this was increased to £17,!' 257 fmilk received last season 6.242, jl 782 lbs, fri-m which 621,612 lbs. of, cheese ivri-e made, being an average s of 3-82 butrer-iat per 10 lbs. of milk ;^ actual amount paid to suppliers 10-idJ' perlb. of butter-fat, amount: paid "to 1. supplier's J:sfc season £15, ~L2] .\\ 2Gi's tons of oiiv'c; ■-.:• exported, last yoav,irealising a price hearty equal to ;VoodV f.o.b. \\'eli;;-.f>-i--'ru J-uildings co-iij £W2. Tanitnhi Cn-Operativc Com-!; pany : 34 feii]>,,Li.•.--■; ouipu: this season |j :ib'>!!l 125 tons, a i*Uio<l £-3,000, Price ' iiaiel -j'or butier-' ut last ye;;r 10.UL. nearly all tlie yoi-.-'s prodvu.-!' disposed:. of pro'italuy. J-e'vedere Co-<Viei-nnv-e;, Company; i'.ti'oie.i 10-)5, *:) sit<>-■ I]l.-r^;' this Kifa.-» .!, milking* TOO c-.iv.-.-^ ' iavX* Mild buihiifigs • :i^.' nbuiit £iriCO : yn-ii.-,.;1 paid for liut^u1- '..Mt la>t year. 10?. rl.j' i-.«-jr lb.. C!.i.-.-; -;f 11 if;ir!■!:;■.(• lure to the! ..Vinpr.ny, i*o;iiih] ,■'•■!••iKi.ied at -\& wW '!:*.. !i'i:iT);-igfrr in .•! I.■:.•:; ii\- i-outvact, t'lci1 pri<-o bei.ii:f.>- pc-i- IK. Fo;djierstouci: (\u»nniry.: Arw.nmt- .->f <-/;..-sh ]*rtid lit. im\si-, Is. ])••'!• sh-ire, there being paidi' 'up !•;.- /•■. }>or fiharo Tieing dedueted'i ifor mi..'i;!-v:'Jus from milk cheques:; lam-.-'int p-.-'.id-.{'yr butter-fat. lOd. per; |lb. Mr. Lund remarked that all the' I prices paid v/erc liiglier than those! ji-ulhsg here. " j 1 Mr. O'K'.'elo read a. letter dated[ I Juno Stiu iy!)l, .addresr'ed by Mr.j ;VVesley Spvagg (nuuKigev of the Newi ;'Ji-*aiaiJL J>;>iv\ A>-v.«'iiition) to thft! iNv.ikerlon liiijk sujipliers, in whiclv! ;the writer st&*<:-:-:T in reply to a question! ! asking- ii %■ As,->ou:ali v was pr'-paiedl •jto sell ib; "Netiiertov. crfninery/ tliatj lit. was not for sale and would be run' jnevt season. Mir, -Spragg went on to' ,'.-p.y that it was at the earnest soliaitat,;ion of a -number of suppliers in the ■idistrict that his Association had erect-i'.-d t)ie creamery, not because ho er-,j|K-cted any ijuniediai-e return for tlie .(outlay, but because of the imjiortunitv ,!of the settlera, vrA because of the fujture of the business, he was therefore justilied in concluding that those ! among them who Signed the original 'petition, or at least all such who had

■ stead of ! c-irtf in the forefront they .■wore'at the present time sadly belaud. , They sivpplied a lot of milk locally and !he thought the-? were entitled to as > inn eh as they raceived in Taranafci-. {He was in favour of co-operation ■{as then whatever benefit- there Was,1 > the suppliers would get it. Tlinro wr-re a great many things obtained by ' co--operative factories which the Cam-1 I bridge suppliers did not get by the! 'I system prevailing here. If the test iwas S'6 and a little over, the snppliorsj derived no advantage, whereas underj co-operation they would. Taking it all j round, he certainly thought that fhey| were entitled to more than they received now, and under co-operation believed they would get i 1". It would be more satisfactory and there would be less grumbling*. He favoured a coj operative factory here, and said there were plenty of cows to start it. He did! [not intend to milk this year. but i Iwould take up 100 shares and guarantee 60 cows.'Any shares he possessed | In excess of cows lie vnilko ', ho would; gladly transfer to any pers n wanting! them. " | Mr Banks said he was of the same! opinion as the previous speaker. Itej : would guarantee 100 rows. iThe suppliers in the room then, ex-j" piessecl their willingness to guaranteej< i the number of cows set opposite their ji names: Messrs Crotch 59, AloParlane'i 30, Andrews 30, "Ward 30, Ash win!! Bros. 70, Kelly 30, O'Keofe 20, Hall < 20, Eos© 50, Brindle 15, % Wect 15, | any care for even common decency, < would approve of his refusal to part < ■with the Netherton creamery. \ < Mr St no said the cn-operatfvo*but- ' ter factory in Taranaki had extended its operations by purchasing1 the Mot- ( 'ui-oa i'vccJing works. i Mr. Butler said he had in his pos-ji session I>caps of information, by-laws'* etc., etc., all bearing on the satisfast- <■ ory mature- of co-operative dairy com- i panics. In reply to Mr, Allwill, Mi-. Stone said Uig manager of the factory cited < by him received a salasy of £150 per|i annum and a free house. The salary!t had lately been increased to £160. i Excellent br.tter was turned out, it t having secured several valuable prize awards. * 1 Mr. Allwill said for very many years the siipplies in this district had. 1 been receiving less than in many dis- c triefs they were aware of. Cambridge a was cne of the first places in. the col- c ony to start a dairy factory, and inBeer 20, Wattam 12, Taylor 75, Davys c 20, Russell 10, The foregoing numbers s and those promised by suppliers not t present at the meeting total 725 cows. C Mr. Butler said from what he could t foresee he believed they would bej able to start with from 900 to 1000|"V fovs. ,' . ■■'■ t Mr, Allwill raised the question as to i whether it was proposed to allot one i share per cow, and whether only milk!l suppliers were to be allowed to take * up shares, saying lie could get plenty I of non:suppliers to take irp shares. ' Mr. Andrews thought the suppliers!l should have the preference in tho first!^ inst.aice ;if it were found that shares!« were left unallotted, tliey could be of- f lorded to the public. Mr. Lund said the shaves of Dalefield factory (which was ihe best pay- f ing one in New Zealand) were confin- « exclusively to tin suj pliers, He sug- t g-csted tlie reason of this was to give * the benefit to those who, were deserv- 1: ing of it. Apr.■ Allwill said that it seemed that tho meeting was pretty unanimous. They h >d enough names do^vn to war- - rant the establishment of a cooperative factory. The next thing was j to appoint a committee to work out, the thing in.the best possible way, as q regards finance, etc. They had good security to offer— having good land and stock, a plentiful supply of -vrob™ and droughts were unknown h/r;> v: I moved that a co- operative coinp-, ; ;:v, be formed, and with that end-in viv,-,', ' sieven directors be elected. £ •:.'' -*- Mr. Mc'J-'avlaiie seconded tn^ motion c which was UT.ia.iiuuously carried jv The following gentlemen wore ap-i ' poinied: — Me-^rr-fTaylor, Banks, All-1V will, 'Ward Batlev, Kelly and Ashin. 3 rtir... i.ndrows proposed "tha^this '<] me ting authorises tho iliiostor.s to frikethe nocessat-y steps to got mafterg 1 '.md.vi: way and submit a report to a future nioetiiiy/' h, The motion was put- and carr'Ted. i Tlio question of a sight was raised,' 's h\ Butter saying he thought,/share-! '•-olders would have to bo somew'hcitj to'■ 'rant- for Liie .first year; and agree-1 t<>;i i-outral s'.t-v. after a timo skim-j 111 i npr (stations could, bo established. i After '-omo ii t! o diss^ussioii, the! question f»f a site was, oh the tuiggest-i ion of tlvo Cliairman. k:ft to the direct-i orp to report on. { j A henrty vnto of thanks was ac'cord-'. Ed to Mr. titovs-, for attending a"nd giv.i ing them-:if'H the bonofic' of his ex-| perienco, ; Mr. Stone m returning thanks, said' that ho hop.d and wisliod that theY, ! would mec-t with wory success in th'oi j undertaking ~ { I In reply Mr. Cm ouch, the Cli airi^an [said another meeting would )<o ca'Kodl las soon as t'Jio djioctors wore iuposisesiol sufucient information. <~ i. ! Tho customary vote of thanks to the! iChasi concluded the moeting, i j ■ . L .