The Temuka Leader TUESDAY, APRIL 28, 1885. ROYAL FLOURING MILLS.

Temuka Leader, Issue 1333, 28 April 1885, Page 2

The Temuka Leader TUESDAY, APRIL 28, 1885. ROYAL FLOURING MILLS.

Another stormy meeting of Bruce’s Royal Flouring Mills shareholders was held last Saturday, and eclipsed all former proceedings. These meetings are now becoming an institution in Timaru, and are discreditable to the good taste and business capabilities of the shareholders, while they are well calculated to cripple, if not utterly ruin, the most useful industry in Fouth Canterbury. The meeting last Saturday was presided over by Mr McGlashan, Chairman of Directors, and was called by request to discuss certain motions. The first motion was : “ That Mr Bruce be appointed Working Manager of the mill, and arrangements be made with the Directors accordingly.” Mr Balfour in moving this said the dismissal of Mr Bruce was the result of his position not having been properly defined. A Mr Crummie, in seconding this, clinched it with the thundering argument that they did not deseryo the name of Englishmen for the way in which they had served Mr Bruce. Mr John Jackson became unparliamentary by moving a vote of no confidence in the directorate of which he is a member. Ho thus showed he had no confidence in himself, Mr R. A. Barker desired that Mr Bruce’s case should be settled first. The Chairman refused to go into the particulars of the dismissal of Mr Bruce further than to say money had been wasted, work improperly done, and the quality of flour bad not been good, Here it may be said that it is verv remarkable the Directors have hitherto kept to themselves the cause of the dismissal of Mr Bruce on the ground that they did not want to hurt his feelings. This is nonsense. They hare hurt him in a worse part—in his pocket and reputation. Mr Crummie said the wheat Mr Bruce had to grind was not of good quality, but the Chairman refuted this by asserting that for the last three months of Mr Bruce’s work the quality of the wheat was excellent. The discussion on this went on until its weariness was relieved by Mr Jackson bringing up the no-confidence motion again, when the Chairman said the Directors would not give way whatsover resolution was carried, and some Directors present expressed a determination to resign. A motion “ that the resolution asking the directors to resign come on first ” was then put and negatived, and on Mr Moody applauding the result the Chairman said Mr Moody could not frighten him. He then proceeded to take the votes by ballot, but bis little game was spoiled by the motion being withdrawn. The motion to reinstate Mr Bruce was then put, when the show of hands resulted in 21 being for it, and 12 against. The Chairman said some of those who voted had not paid their calls, and a ballot was next taken, with the result that the votes for the motion were ] 43, against it 177. The motion was therefore lost, and Mr Bruce is not to be reinstated. Perhaps this may as well be explained. The show of hands was in favor of Mr Bruce, but when it came to the actual voting, when proxies were made use of and votes according to the number of shares allowed, the big shareholders, though few m number, were able to swamp the small shareholders. But the trouble did not end here, Mr Balfour moved —“ That Mr Bruce be allowed £BOO in paid-up shares in consideration of his claim for bonus and goodwill.” This he subsequently altered to the effect “ That Mr Bruce get £2OO as representing shares he had paid up with bis own money, and £SOO in cash or its equivalent.” IJe then went on to say that the arbitrators in the recent case had granted Mr Bruce £250 for floating the Company, and be also understood that Mr Bruce in doing so had expended £l6O of this amount in respect of registration, advertising, and in going about the country getting persons to take up shares. They would thus see that he had in reality only received £9O tor what he had done. A resolution had been passed that if the mill was a success Mr Bruce was to get one-third of the profits, and they were hound in honor to give it to him.

Tho Chairman said ho had boon informed by Mr Moody that such a promise had been made, but lie could find no trace ot any motion to that effect. The claim made by Mr Bruce was as follows :—For floating Company, £2BB 13s 2d ; timber for office, £3O 6s 3d ; office furniture, £56 10s ; timber in new store, £166 IBs ; royally for dryer, £500; fifteen months’ salary, £557 10s; cost of grain dryer, £666 3s 9d; bag account, £300; total, £2566 Is 2d. Arbitrators’ allowances —Wages. £525 ; for floating Company, £250 ; for sacks and bags, £IOO ; for dryer, £550 ; office furniture, £lB ; timber, ‘ £4B 12s ; total, £1491 12s. fie went on to say that “ he (the Chairman) offered frequently to resign as he could not get on with Mr Bruce, and he read a letter from Mr Moody in which Mr Bruce’s commercial capacity was depreciated, and a suggestion thrown out that Mr Bruce should be kept in his place. Mr Moody now turned round the other way. The Directors were liable to the Bank to the extent of Llo,ooo, and they could not put in new Directors until that was settled. The Bank manager refused to give them any more accommodation until tho dispute was settled. The Directors would never agree to have Mr Bruce back again, and if he were reinstated several of the mill hands would leave. Mr Bruce had told them when they formed tho Company that 1200 shares had been taken up. But what did they find ? Why, that instead of 1200 being taken up then was only some 700 odd. LSOO of the money in hand was taken to pay the first instalment to Mendelson’s trustees, and thus only L2OO odd was left to commence business with. Mendelson’s trustees were threatening to sue if not settled with now. The shareholders had behaved disgracefully to the Directors after having carried on the business so successfully,” Here, then, we find an inkling of the cause of the dispute, Mr Bruce would not obey orders and he had to go. There is no doubt but that the shareholders ought to be thankful if the directors have carried on so large a concern on a capital of L2OO. Mr Moody next rose and said he had changed his mind because Mr Bruce had been persecuted beyond the bounds of decency. He produced a copy of the minutes (which be* said had been carefully preserved by Mr Bruce), which showed that Mr Bruce had been promised one-third of the profits of the mill for the first three years. This produced a profound sensation, and when the Chairman wondered how, if it were genuine, it had gone astray, Mr Moody said it was not the first time minutes which the Chairman did not want went"astray. Mr Bruce, who was present, said he was prepared to sign the award, and after an acrimonious debate a resolution was carried to the effect that Mr Bruce be allowed L2OO in shares and LSOO in cash. It was next resolved that a manager should be appointed, and in the course ot the debate Mr Moody said be would not bo “ jockeyed ” by the Chairman, who returned that the reason Mr Moody was angry was because he (the Chairman) had taken away from him the paltry commissions for insurance. Thus, little by little, as the dirty linen was being wrung out, interesting little scraps of information were leakisg out, till at last Mr Meikle moved: “ That the Directors be all sacked,” and the Chairman said he was going to vacate the chair. Mr Balfour would not let him go till he explained about the insurance—ho had told them such different stories about it, lie referred to an accusation to the effect that the Chairman failed to insure but pocketed the insurance money himself, saying he would undertake the risk. The Chairman urged that hohad only done what was fair and straight, and wound up by repenting what Mr Larnach said to his constituents—“ Kennel up, you curs ” —and left the chair. After an all-round discussion Mr John Jackson was voted to the Chair, and the motion for appointing a manager was put ami carried. A motion of no-confidence i;i the Directors was ultimately negatived, and the meeting terminated. All this is very amusing to real, but no one who feels any interest in the will-being of farmers in South Canterbury, can help being very much distressed by the publication of these proceedings. The conduct of the chief actors is discreditable, as it is well calculated to ruin au industry that is of great value to grain producers in this district.