DAIRY COMPANIES' AMALGAMATION.

Taranaki Daily News, 22 August 1917, Page 6

DAIRY COMPANIES' AMALGAMATION.

MR. POWDRELL ISSUES A CHALLENGE. ' Mr. W. D. Powdrell, chairman of the Kau-iokomii Dairy Company, writes to the Wairnate Witness:— Sir, —I must say I was disgusted with the tactics of Mr. Murdoch at the rei cent meeting if Jolt's and Kaupukonui i suppliers, lie evidently allowed self-iu- | Merest to blind his judgment to the I best interests of the district. | If it would help amalgamation I (p.'ould give my services, if required, for a year or two free, including expenses. jjvVould Mr. Murhoch do the same if chosen chairman? Mr. Murhoch sees no advantage in j amalgamation; but if he is sincere and thinks he can equal our pay-out, I would forfeit my salary to the hospital every time he heats us in the pay-out—testa being equal or taken into consideration —if he will do the same. Should he agree to this course 1 am sure he will soon find himself compelled to admit defeat.

1 It Mr. Murdoch or his directors want ',n know the truth, he could find out what the positions of the respective companies were and whether there were any ivdvaiitages to be gained by setting up a c-.iminis.-'uii of. say, six. including Mr. Morton, chairman of the National Dairy Coy., Mr. Darkness, secretary of the N.A.A., two lirst-elass auditors, and two

men—the bc.it to he got. If •the decision is against amalgamation, we v, •wld pay the cost, if doll's would do the s."me. Cut Mr. Murdoch fears his

Air. Murdoch led his suppliers to believe our overdraft outweighed oar reserves. Whereas lircir over;! re ft an.l •out-landing accounts, according to their la .t balance--neei, was !'s ;;d, and that o; Kaupokonui £'S"'J\> lii.s Id. and their reserves shown was ..*.'slfi Is, Kaupokuiiui reserve shown was £12,572, without profit or farms redemption atiomit, etc., •Jolis received in excess over interest ~ui I M\ Is Yd. which, capitalised at j."> per cent, represents £1220. Kaupokom:i received in excess over interest paid ■LSI7 17s SJ, which, capitalised at 5 .per cent, is £10,:;00. Thii looks as if over .(oil'-, not counting redemption acJure is over .€15,11)0'of reserves here count, reserves on land or, for the water nice. .Ci.YOO, paid out. of milk many years a;e. Howecr. .Mr. Murdoch li.'.s apparently allov.ed his po-.iiiuii as chairman of Ha'v.en; Loan ('<>,-. and oi .loii's to iniluence hi:, letter j to the detriment of the whole dislriet. Air. .Mui'iii..-l: iias one factory in concrete valued at, t;i,S27. Kaupokonui has jid>: Imiiitiiigs in concrete, valued at, j .':il,Bl.'i, v.nieh means at least i per ,eent depreciation saved to suppliers, or , '.-v;:r .UJliii. n ;l couiuiug painting of ! jl'ii:ii!ijigs and insurance. | li we closed two branches over-lapping ■—Kapuni and Aurwi Mr. Murdoch conj tends one casual would be raved. Pre- . .suinably he proposes to keep these two f | managers on or pension at the same J 1 salary. Mr. Murdoch says they have aouljr (taid fur ttair asset purchased

from Joll. Uf course . ilipy have, put of sharo-money collected. Mr. Murdoch appears .to thifiK Ciafr liecausc a man lias an overdraft, 3taimut liave !io reserves, hi sshAeli car.a. scine-of us •«vou.W bo poor men i;idw.!i, Cub I '/iavc fiitt-aya found thmi tho suan who keeps hi* SKcney invfi*tc«t ic risarvcft and works on t'Ao oluir iuac.'» money u the man m<U:iag tho nio-jey, aivl 1 hope as long as J am clmvaiim" of Kan.pokonui there vvi[l Jie no idle mvney about the place. •