THE "GLAXO" PROPOSALS.

Taranaki Daily News, 7 May 1917, Page 2

THE "GLAXO" PROPOSALS.

FACTORY." MEETINGS AT MIDIHRST. 'During tin! week several uiPGliugts Jiavd boon held in aiul around Midhirst.' Mr Skcgwell, chairman, bf directors, lias presided at most of the meetings, Mr George gangster filling the position at Beaconsliold load. Tlio object of the meetings was to consider a proposal made by Mr P. J. Nathan, of the Glaxo industry. It may ho said that at all the meeting, after several question* had been answered, the suppliers of the factory hare 'appromi of the Migrations made. The final mi'eting will be held on Monday evening at the Midhirst Town Hall, commencing at 7.30. j The proposal from the Glaxo Company was in respect to this now industry, or.d Mr Nathan, in the course t-f his romr.rks, stated that since 1 ln-ir first communication with the ffietnvy -they had revised the scheme. J'lieir request now wa.s that thoy should secure all the milk produced ijy the supplier.;, except what was mc-os-sary, for the rearing of calves. They were -prepared to pay 2d per lb better than was paid for 'buttVr with a minimum guarantee of 1/3 per lb. for butter-fat, Glaxo to pay. in addition to this all charges, including interest, cost of , management, and depreciation, if they v/jre hot called upon to. purchase the factory- and plant. He suggested that they iihouli erect afactory somewhere in (he vicinity of Tariki, and thus convert the supplies received from E.ugby rund, Tariki losd, York road, and Wtiipuku into ftiaxo. The great difficulty in such a proposition was to overcome its newness, its strangeness, and its being something different from what had previously been undertaken. Factories for the manufacture of Glaxo existed not only in New Zealand, but in Australia, England, France, and Holland, and the factory recently established at Matamata was the finest Glaxo factory in the world. Ifthey adopted the suggestion, tliey had for any .period—l to IS years—an absolute guarantee of a minimum price of Ig'od for butter-fat, that should cheese realise a higher price tliey could elect to be ,pa,id on the average price paid by certain cheese factories in the Taranaki district. There was nothing in the proposition to force the company to manufacture Glaxo or any other article. The company only manufactured when it paid to do so, tout his company were only prepared to purchase the Glaxo. The fadtory would bo so constructed that with the minimum of expense it could be turned into a butter or cheese factory. It is proposed to continue with' the present butter factory and instal casein plants at the Various creameries to make crude casein. They proposed lifting all the milk direct from the farmeV's gate, provided there is a metalled road, otherwise the farmer is to deliver it to a metalled road. They would make a charge of Is fld per day (385 days in the year) for every horse required to bring the milk to the creameries. If tliey found the cost of liftings the milk: amounted to less thaii Is fld, the balance would be distributed proportionately amongst suppliers. If this scheme was adopted, the present factory cguld easily cope with. COO on 600 tons of; butter, but it would toe necessary to adopt either one of two schemes of dealing with the present supply, butter and casein or cheese manufacture. If the former, they would need to erect a new • factory and scrap the old factory,, for apart from the chums and the sundries around ths factories nothing else would be of value. They would have to instal buildings and plant for the manufacture 9f crude casein, and then a drying plant to finish the manufacture of casein or else sell it to the Casein Company, Under his scheme t'hev would be able to manufacture the crude casein into the 1 finished article at their own Glaxo fac- [ tory. Margarine was likely to be-a dangerous competitor. Owing to legislation, it had not made much headway, but as ' an effect of the war the consumption of margarine had, increased enormously. | Now Zealand was exporting less than ' 1000 tons of casein, and other countries) ; not, supplying their usual quantities, the , prices realised are abnormally high. Go- | i?fg in for tho manufacture of cheese .would have cost £4fl,iOOO before the Avar, ], whereas £50,000 would scarcely cover the expenditure, and they would not secure so cood a result as they would by tho ; manufacture of Glaxo. They were willing to guarantoc equal to the average ol 1 any four factories. It was scarcely within the realms of possibility that any cheese factory for a period of IS years I after the war wonKl average Is 3d per lb. butter-fat, and the chances wore about 100 to 1 that the factories would ; not pay,each and every year over, and above is 3d per lb, butter-fat. .(should cheese fall and butter keep up, they could select butter, plus oaeein, or, gutter plus 2d per lb. tatter-fat, and this- again with a guaranteed minimum for each and every year of Is 3d peA lb. The point he desired suppliers to, consider was whether, would recommend their director? : t'o expend, !>ay, £oo.ooo, scrap, tho butiter factory, and creameries and be satisfied with cheese prices; or should' they fcrect.nnew buttor factory, scran.,the present factor)',, crest casein plants, andlhe -satisfied with butter and casein prices Or, as a third alternative, they should at about the same expenditure a? thQ. last-mentioned possibility go in for Glaxo, and thereby «et cheese prices, butter and oasoin, butter and 2d per lb; butter-fat, with a minimum of Is 3d, and in, addition to this turn a dead asset of £12,000 into a live one,

At each meeting the suppliers allowed a lively interest in the proceedings, and gave Mr Nathan a most attentive hearing, and at the conclusion of his remarks hearty votes of thanks w;erp passed to the speaker and tho chairman.