STORAGE OF DAIRY PRODUCE.

Taranaki Daily News, 8 May 1918, Page 7

STORAGE OF DAIRY PRODUCE.

t'UKTiUtR ACCOMMODATION. TO JSJJ PJJOVI&EI) AT SMART BO AD. The scheme for the provision. oX additional accommodation jor the'storage uf butter and cheese, in view of the congestion of shaping, was advanced another stage yesterday, when, ill a. meeting he-Id a-t Aloluroa. and attended by tiie representatives oX over thirty shareholding factories in the i'rodueei's' lu'eezing Works, presided over by Air. A. Alorton, it was unanimously decided to enter into arrangements with the Taranaki Meat Company to erect the necessary accommodation at .Smart road. The meeting had been primarily called to confirm a resolution passed at a meeting a fortnight ago increasing the capital of the company to £dO ; 00l) by the creation of 4000 additional shares of £lO each.

This was unanimously confirmed without discussion, on the motion of the chairman and Mr. J. S. Coimett. The meeting was also convened to consider the question of erecting at Smart road the proposed additional storage decided on at the previous meeting, instead of at Moturoa, and the chairman, in explaining the proposal, stated that when they met previously the only idea placed before them had been to increase the storage accommodation at the present site. A rough idea of the estimate had been placed before them, and the shareholders had loyally supported the directors in the proposal, as they had done throughout in the provision of additional storage. An estimate had since, heeh obtained, which showed that it would cost soruetlrng like .01,001) to provide- tceommottetion for an additional 40.000 crates of cheese. The directors had since been apprnapjied by the directors of the Taranaki Hirmers' Meat Company, at Smart road, with the idea of both companies working together in the matter. That is to say, accommodation would be provided at Smart road, and the necessary" capital would, lie provided by the Producers' Company talc'ng up sh'nrcs in the Meat Company. It was calculated that at Smart road accommodation could he provided for nearly the season's output of hotter, which would leave Moturoa free to accommodate f-om Pm/100 to 70.000 cafe; of ch<> n "c. This, with the accommodation aVaibVWe at Wthsni and Kaponga. would go, a lone; way towards providing for the reason'--, cheese output. From a financial aspect the proposal appealed stro'nelv to the directors. If thev erected storage at Moturoa to cost fist.ooo. thev might, when shipping became nwnwh- «>Kf wt. f-o o-Mft'm r-ome rcvevue from it. but it, was highly improbable that the revenue would anything like cover the interest, for, in addition to the maintenance of file building and the naw plant, there would be insurance and borough rates, which were no mean item now. The proposal that he wished them seriously to discuss was !':!.,at tlie Producers' Frce/,ing Company . ■ ;/kr lie 2"i.O0O shares iii the Farmers' j sieat Company, which would erect a , :".i!i'ldine- to k. commodate at ; hose* tif huttir. As a matter of fact, 1 the proposed building was estimated to :ii«hl 110.000 boxes of JuiMer. They had . al.-o the right to use half (he spree to , -'oie cheese if butter was being shipped ; freely or their cheese stor- was full. j it would be arranged that the storage 1 charges fllimiM 3vc-t exceed those mado i V,- (he Auckland Farmers' Meat Oomj ijiiiv; who had a. Aimiltir «rrtingemen£ j • ilh (lie Auckland farmers ft) that proJiero. The directors of the Far-

: iiii'i-' Meat Company Would be increased j from \i to 14, the i wo extra directors j d? In< ninrtinated by the Producers' CornI jv.lny. These two directors would i\ot I to. :ip'tWl to sign tho personal guarantee, j which the Farmers' Meat Comt"Wr iHrti I nin had to do to a large c::- ] tent, so UiftT, the Producers' Company .i wtmill ortlv mk'hv liability to I lift value «f their slutre cnpHal. The Producers' Frwfcttvg Cbwpaiiy would he responsible 1 for liandMUff all dairy predtice at Smart i road, as ■ at Moturfja. Shareholders wouVd be told from time to time where t(> send flielr pirbdiroe for storage, and Vftiilbt bo chaffed for the storage by I he Producers* Company as at present, i TtieV had been legally advised that both jeoriipanies had power to make an agreel roent on the lines stated- Contrasting the two .schemes, he said it would take £31,1)06 to provide the accommodation • a I. Moturoa, whereas it could he provided at Smart road for £25,000, and I they would have an equivalent amount in shares in a company whili might pome day bo a very profitable concern. At pit-sent, though they did not hold the bulk of the shares, four-firths of the shareholders in the Smart road works > were dairy fanners, and the proposer, scheme Would, besides cenieivtinsr the in forests of the two eonrnnnies, he in the interests of the district as a whole. Th< Merit Company had sufficient freezing power and machinery power for the pro posed additions, though it might hi necessary to provide reserve power later A big factor to b,e considered was tin time that it would take before the. stor Rgc was available at Moturoa. Thougl It,ov ennld. vohablv. start the work a once, it would be six or seven month before :inv portion of the additional ar i. coinniodatirn would be ready for usr The Farmers' Meat Company had al readv made a start with ' additions which, though not the additions to b built for the producers, would he avail ♦Me for dairy- produco when finished J Moreover, the proposed additions wouh liie alongside and would be erected simul tanrouslv. The directors were unani f mens that, this was the best solutioi ■ under the circumstances. Ticca rdiusr tin finance, (he shareholding comp.inies hai \ at the last meeting been ti.dd that the 1 1 would be expected to find the cash fo | these additions and had doubled t*i I capital of the eompanv. of which 3911 ' shares, equal to £3n.oor>, were alrcadj taken up. Tf the additions were erect J ed p< Moturoa. it would be necessary f f ' allot three more shares to everv ton I held by Fb.nroboldinrr fnctonV: when' hs. if at Smart road, it would onlv b necewnry to calt up two and a-h.al shares fo everv four. Moreover, at Mo tnroa. the whole of the £31.0110 wnul renuire fo be provided in seven or cicrh A months, whereas n+ Smart road it wonil probaiblv onlv be necessary to fin £15.000 in the first, four months an ~ the ro-mniuMirr £lO 000 within 1? month. |> so that the terms of payment wcr easier. Tf. was. therefore, a oucstion fo ' the meeting to decide which was fh \ 'better financial proposition. ..At fniar road £6(100 less capital would be rr >ft c.nired, and their caipital would be place 7 tn a concern wbieJi, all must admit, ha

a I.iij- |iru.'i)i:i:l. <>i ■ nc-ee.-:,i ami a, fair ];ruoiiu'.t (if ijc ill■; dividend jivoilulJh;-;; wliil.-l. llicv ivonld b.ive no annual ii|>- ]<,■-., ;,. ]k .-...vi.J.- when Hi..' .-.liii-M-i: wa> lioU-iMinift'il. The -.rn-.'.a.irs nfl«-i- U>!.;ug ill the mailer carefully from iill sides, considered :t would be a wise mow. to enter into an arrangement with the Farmers' Zk-at Company.'

Mr. Morton then moved—"That the directors of this company be authorised to take up shares in the Taranaki Farmers' Meat Company to the extent of .■C:M,O0l). and to arrange, in consideration thereof, that the Taranaki Farmer-,' Meat Company shall erect storage to accommodate the produce of the shareholders of this company in accordance with the terms of the arrangement tentatively made between the two companies." Mr. W. C. Green (Kahofcu) seconded the motion. The chairman, in inviting _ discussion, stated that he wished shareholders to obtain all possible information. The directors had power to enter into (ho arrangement without consulting the shareholders, hint they considered that it would he a breach of faith with the shareholders, whom they had accordingly invited to consider the question. Mr. ft. drover (Patuai asked if they put their £23,000 into the Meat Company, what guarantee was there, when shipping became normal, that any profits, would be paid in-the way of interest bv the Meat Company? 'All profit; might be divided among suppliers. He thought provision should be made that the sharo capital invested should be treated as preference shares and pay !> Tier cent, interest, or. if the Meat Company toolc over the additions, they slmuld alloV the Producers' Company a portion of the of erection. The chairman pointed, out that the P-odueen' Company would have £'25.000 share capital in the Meat Company. Any promts must be paid out as interest in share capital .ivnd not as a. bonvt'. Most people would recognise, that the Moat. Company would require the additional accommodation. as its operations need hot he restricted to Taranaki. Moreover, ho pointed out if thev expended ,€31.000 on erecting additions at Moturoa. they would have difficulty in finding a profitable use for them after the war. Poplying to Mr. .Tone? ( Kairaatai, the chairman stated that machinery could ho procured in three months, if it was decided to erect the additions at Moturoa. They must not, however, overlook the question of urgencv. At Smart road additional storage could be provided four months earlier than at Moturoa, and thev conld see how urgent was the. need for'storage, when they realised that thev had in .-tore at Moturoa o2.ri7S crates of cheese, and had notified factories that after thi« week no more could be re ceived. F.ltham had 13.4-13 crates in store and Ka.ponga, :!7- r /0 crates, or a total of fi?),671 crates awaiting shipment, irrespective, of what was held, by the factories throughout the district.

To Mr. .Tallyman (Frank-ley road) the, chairman stated iha.-fc the storage elifli'ffca nropo«ed to bo levied by the Meat "Freezing Company would be slightlv more in Ihe ea=e of cheese and less in the ease of butter than the charges now made at Mnturoa. OontiTiiiin?, the chairman paid that it was proposed to a third storer to 'lie present additions at, Smart road to accommodate butter. Tho directors hail considered the question of addim; a third storcr to the new additions at Motnrna. This would five accommodation for a n additional 17.000 crates of cheese and could he available in four or five months. 'but tliis would provide 110- | thins Jike what was required. The directors were anx-ious to do their utmost to provide accommodation, as "Ihev recognised (he difficult'.' they would he up against if no shipping was available. The motion was then put and earned unanimously.