BUTTER STORAGE

Sun (Auckland), Volume III, Issue 880, 25 January 1930, Page 1

BUTTER STORAGE

EXTRA ACCOMMODATION ON KING’S WHARF FARMERS’ FREEZING COMPANY Extra storage accommodation for 100,000 boxes of butter and- necessary railway siding facilities for handling the produce are to be provided on King’s "Wharf. This increase in facilities is being made in preparation for future demands, because of the steady advance in production in the Auckland Province. - « Shareholders of the Auckland Farmers’ Freezing Company, Ltd., at a special meeting yesterday, amended the articles of association to permit dairy companies to subscribe increased capital to undertake the erection of the building and the purchase of J. J. Craig’s adjoining property to provide siding facilities. Action has already been taken for the acquisition of this land. An interesting review of the company’s operations in handling dairy produce was given by Mr. J. E. Makgill, chairman of directors. The works put through 2,100,000 boxes of butter in addition to cheese last year, he said. Immediate requirements were met by the present storage facilities, which gave a certain margin of safety, but the directors, looking ahead, did not consider the margin sufficient for eventualities. The company might be hard pushed for space by considerable increases in meat and butter, while fruit was now having an appreciable bearing on the storage problem. According to Mr. Makgill, dairy companies had been invited to take up additional “B” share capital equal to £59,261, £20,000 of which was required to bring their holdings to the full quota under the original scheme. These would be paid for on the basis of 2s on application, 2s on allotment, and the balance in calls of 4s each, spread over a period of four years. The companies would then be entitled to subscribe for their quota of the further issue of about 40,000 shares, 2s to be paid on application, 3s in calls of 9d each, spread over four years, and the balance to be provided by the freezing company in the form of rebates. Already 47,941 shares had been applied for. The largest dairy companies had taken their quotas. As the dairy companies would be holding more than £IOO,OOO of the share capital, or about one-third of the total, it was only fair that they should have more than one director. Under thq amended articles, as soon as the new shares had been allotted, the New Zealand Dairy Company would have the right to appoint one director, and the other dairy companies, jointly, would have a similar right. In 1932 the latter companies would have a right to appoint a second director. The amendment of the articles will be submitted for confirmation at a further special meeting on February 21. _