DAIRY COMPANY AMALGAMATION.

Taranaki Daily News, Volume LVII, Issue 59, 30 July 1914, Page 6

DAIRY COMPANY AMALGAMATION.

THE OAK.UIU PROPOSAL. A deputation from the Oakura Dairy Company, consisting of Messrs W. .1. Honeylield, G. A. Adlam, McAllum, Telford and the secretary (Mr. E. \V. Garner) waited on the annual meeting of the Okato Dairy Company yesterday in connection with the proposal to amalgamate the Oakura Company with the Okato Company. Mr. Garner, in introducing the matter, said that they wished to iind out if the Okato shareholders would favorably consider amalgamation between the two companies, and on what terms; also what plant, buildings and land they would be prepared to take over, and whether they would amend their articles of association so as to give Oakura representation on the directorate, and to what extent.

Mr. McAllum thought that the shareholders should consider whether it vfas to their advantage to have Oakura or not, and leave the question of terms to their directors, who would undoubtedly look after their interests, ft would cost Okato nothing;. Oakura would have to pay. In reply to the chairman, it was stated that Oakura's output last year was 124 tons 17e\vt. of butter. Mr. Adlam said that he belicral in amalgamation, but he did not believe in the company taking a portion of their suppliers and leaving the rest to run a ranch smaller concern. Small factories did not pay. The principal of cooperation was to help one another. The chairman, in asking for an expression of opinion, said that it seemed to him a simple matter. Five men came with two creameries, and asked them to take them in and make one large concern.

The secretary (Mr. Peppcroll) outlined the terms under which the amalgamation could be made. Each intending supplier would guarantee to scud Ids whole supply. Okato would take over Mich buildings and plant at valuation as would be necessary to run Oakura aivl Timaru as creameries. Of the amount of purchase money sufficient would be paid in cash to liquidate tin; Oakura bank overdraft, and the balance in folic naid-up shares. Mr. O'Sullivan objected, on the ground that. Okato bad nothing to gain, but everything to lose. They knew what they were doing now. Some of the crciiM would have to be.. carted nine miles, w! : ■■! would be detrimental. If Oakura iv.n!" .'rood butter, they would get a good price. Okato might be sorry if they agried to the amalgamation.

Mr. Gray said that Okato would not pay out any r.ion ■■;. ; be would see to that. He then iimvcd That this com«anv recommend the directors to favorably consider takini; ever the Oakiua ami Timaru plants as creameriiis, and taking the Oakura CompanVs suppliers as shareholders. Mr. <"'. Andrews seconded. Mr. Grant objected, on the grounds that the cream would arrive tco lata at the factory, and already there were complaints that l'uniho cream, much closer to the factory, arrived too late. He could not see where the benefit would lie to the company. An objection was also made that ''tiu'uipv" milk- was supplied to Oakura. The chairman stated that if the Oakura suppliers joined Okato they would be bound by the Okato rules, and if their milk came too late or was "turnipv," the creamery managers would send it back. Mr. Grant: That's all.right. You can make rules, but it's another question enforcing them. Mr. Binnie suggested that Oakiua might run their own creameries and sell the cream to Okato. Mr. Honeyfield said Oakura wanted a fair thing; they were not "broke'.' Mr. Grant favored purchasing ihe cream, but this did not find, favor.with any of the interested parties, it being pointed out that if Oakura came in Okato would have control of the milk from the start. After a little further discussion, and a proposal that the - '' - be not entertained had been thrown out as a negative, the original resolution was carried by 32 to 0. .Subsequently the Oakura deputation and the Okato directors met. A basis of agreement was discussed and agreed upon, and this will be submitted to the Oakura shareholders at an early date.