MOA FARMERS' UNION.

Taranaki Daily News, Volume LI, Issue 277, 17 November 1908, Page 4

MOA FARMERS' UNION.

THE COMPANY SELLS OUT. The adjourned annual meeting; of | shareholders was held at Inglewood on Saturday. There was a large attendance of shareholders. Air. I). Todd, ehairman of directors, presided. At the previous meeting, after the Union's linances had been discussed at length, a committee, consisting of -M essrs M. Hopson, A. .Morton. Haverbier, Mackie, llenwood, and A. Brown, had heen set up to confer with the directors .1 <i view to deciding what course should bi. followed regarding the continuance of the business. The report of this committee was now submitted to Jic meeting.

The committee recommended that an offer from Messrs. H. B. Nicholls and T. Nicholls for the purchase of the entire the company, including freehold, laud, buildings, plant, stock-in-trade, book debts, etc., should be accepted. The consideration oli'ered for the transfer was the payment by the purchasers of all the debts and liabilities of the I'nion, including the payment to the shareholders of the share capital in full and of the dividend recommended in the directors' annual report. The sale was to take place as from the date of the confirmation of a special resolution of the shareholders authorising the transfer. The vendors were to arrange with the guarantors to extend their guarantee to January V, 11)10. Miesars. iNHcJiollis and Son were to secure the guarantors against loss, and to reduce the bank overdraft by monthly instalments «-f not k i ss than £2OO per month. Mess:**. Niehoiis and Son, it was'stated, wouid probably be able to arrange for the immediate payment of the overdraft. Mv. 11. B. Nicholls (secretary to the Union) said that he was in a rather anomalous position. He had to look

after the Union's interests and also after his own. The man who took over the business took o;i a pretty big risk. The book debts stood at five or six thousand pounds. Who would give 15s in the X. for them? The company, if it were to continue, ought to have at .12000. Otherwise it wouid have to go into liquidation. ..Mr. Price moved that the report should he adopted, and that the directors should be requested to make all necessary arrangements for earning nil the sale of the property to Messrs. Xicliolls aad Sou. lie thought the step

.suggested was in the best interests of 'the Union and of the district. He pointed out that the Union had either to take this step or to go into liquidation. If the company went into liquidation there would be a certain amount of loss. Mr. Chard seconded the resolution.

Mr. llenwood said that the morn the committee considered the hook debts

tlio worst: it- found them. Tliey were not worth fifty per (viit. of their i'a'.'O. vn hie. There was £SOO worth of bills outside the book debts. These bills Averc not endorsed, and were hardly worth the paper they were written m. lie strongly recommended the shareholders to sell the business. It hail been most unprofitable for a long time. There were one or two departments, such as the tea-rooms, that were white elephants. Mr. Kenwood also pointed out how unprofitable liquidation was. Mr. Baxter wanted to know why Messrs. Nicholls anil Son wanted to buy the business,, if it was such a -white elephant.

Mr. H. I!. Xicholls said he was not very anxious to take over the businessHe would not, -however, like to see it go under. He had a big interest in inglewooil anil the neighborhood, ,'f the shareholders came along with £4OOO he would put another thousand or two thousand into the business, so that it could go along,' either under liis management or somebody else's. He would be glad to be relieved of the burden he had carried for' ten years. The chairman said he did not liku to see the business sold, but there was no hope for it unless the shareholders came along with n't least £3OOO hard cash.

Mr. Bridgeman considered the shareholders should be aide to carry on the business still, with more share capital, lie was prepared to take up twenty shares and pay cash down for them, and he was sure many others would do so. The business itself was sound, but the present position was due to the shareholders themselve.s. The .stores were started as eush stores, but the shareholders would not pay cash, although well able to do so. There was no need - for credit. Every shareholder was well able to'pay for his goods on the spot. Mr. Corney said it was no good trying to raise more share capital. No one would put money into the business.

Mr. A. Morton, who referred to his long connection with the I'liion, was o( opinion tiiat if tile shareholders calmly

considered the matter they would see that the only course open to them was to sell the business. It was absolutely impossible to carry it on as it had been

carried on in the past, lie very, much regretted that thev had come to this

state of a Hairs, but tliey had to make the best o.f bad job. If they did not decide at once the bank would foreclose. '

Mr. 11. ]!. Xicllolls sai.l that Mr. Martin, wlki was one of the best. and firmest friends tin- Union hail over had, had conic to its assistance on several occasions'with two or three hundred pounds each time. Another shareholder said that the position was entirely due to the shareholders themselves. It was a standing disgrace to Inglcwood aml district that this should have come to pass. -The only thing they could do" now was to sell. The motion Hint the business should lie sold to .Messrs. Nicholls and Sou on the terms suggested was then put. It was carried with only two dissentients. The annual meeting was then resumed. The report (previously published) was adopted. Messrs. Davidson, llenwooil. and .Mackie were elected direc-

tors in place of the retiring directors, ill order that the sale might lie completed. Air. 1!. 0. Hughes was reappointed the Union's solicitor. Mr. M. Dewhirst was appointed auditor. Mr. assured his hearers that, should the sale be completed, lie would do his best to retain the confidence of his hearers, lie thought he could run the business cheaper for himself than lie could for a company.

The chairman moved a lieartv vole of thanks to Mr. 11. B. NicholU for the honest anil straightforward way in which he had conducted the company's business during the past fourteen years. This was carried with acclamation.