PROPOSED BACON COMPANY.

Wairarapa Age, Volume XXXII, Issue 10123, 20 October 1910, Page 5

PROPOSED BACON COMPANY.

AN AGREEMENI APPROVED

An extraordinary meeting of shareholders in the Wellington Farmers Meat Company, Ltd., wai held at the offices of the Company in Masterton, yesterday afternoon, for the purpose of considering, and if thought desirable, of approving the terms of a deed entered into by the Directors with Messrs Alexander Pryde and Thomas Moss, of Eketahuna, as Trustees for a Subsidiary Company about to be formed for the purpose of carrying on the business of bacon-curers and preservers under the I ompany's management. Mr J. C. Cooper, Chairman of . Directors, occupied the chair, and there were about thirty thareholders present. The deed of agreement between the new Company and the parent Company was read by the Secretary, Mr J. Milne. 'lhe Chairman explained that the position briefly was that the dairy farmers were to provide a sum of £2500 When this amount was forthcoming, the Directors had undertaken, to erect a bacon factory on their behalf. The shareholders in the Bacon Company would have one Director on the Board of Directors of the Meat Company. He would have a voice in matters only which affected the Bacon Company. That was the position in as few words as possible. Mr J. H. Cameron said this matter was new to him. He would like to know what was the object of the Directors, and what the shareholders * of the original' Company had to gain. The Chairman stated that a large number of dairy farmers had asked if the Company would provide a bacon factory in connection with their works, lhe Directors had stated that they would not; but they had agreed that if the dairy farmers found the money and put up the building, they would handle the pigs and do the killing and freezing. Any profits m;de in this connection would accrue to the Company. Mr Walter Cameron asked if a sum of £2500 was sufficient to provide all the machinery required for freezing works. The Chairman stated that they had been guided throughout by their engineer, who had assured them that if they had £2500 they would be safe. The Directors care that they did not enter into any liability over and above the i2SUU subscribed. The nominal capital of the new Company would be £SOOO, and quite naturally they would get as much of this subscribed as possible, Not a penny of the money of the original company would be touched. The most the Directors could do would be to lend the monsy t9 the new Gumpahy on iiiortgagtC The two institutions were quite separate. Mr T, Hodgins said he supposed that the Directors were quite clearthat, under the agreement, the share* holders in the new company would not be entitled to any bonuses prodded by the original-company. All they would get was their stcck handled at the same rates. 'J he Chairman took it that this was so. Any bonus that either company made wouid belong entirely to themselves. If a bonus was granted to the shareholders in the new company, it would be entirely at the option of the Directors. The share-list in the original company was very comprehensive, and extended from "the Rimutaka to Porangahau. It had been suggested by Mr T, Hodgins that some of the shareholders in the backblocks were not conversant with the proposals in regard to the bacon factory. Those who had heard the agreement read would admit that it was fair to both sides, l'hey would see that the original company has entered into no liability at all. After what Mr Hodgins had mentioned however-, he thought it might be desirable to get the agreement printed and have copies sent to the whole of the shareholders. Mr McKenzie asked what the cost would be. The Chairman stated that the cost of printing might be £4, but the cost of postage would be nothing, as the circular might be sent out with the notice of calls. Mr T. P. Lett asked if a vote on the question would require to be taken that day. The Chairman replied that it would. Mr R. Gray: Then what is the use of wasting money on the circulars. The Chairman explained that, after the vote was taken, any three shareholders might demand a poll. Mr K. Gray thereupon moved, and Mr T. P. Lett seconded, that the action of the Directors in signing the agreement be confirmed. The Chairman stated that if the motion was carried, it might be rescinded at a future meeting if they found that the shareholders were averse to going on. Mr T. Hodgins stated that to test the feeling of the meeting he would move as an amendment that a ballot of the shareholders be taken. He did not move this in a hostile spirit, but he thought that the shareholders in the back-blocks should have an opportunity of expressing an opinion on the subject, so that they could not afterwards say that they had not been consulted. Mr J. H, Cameron seconded the amendment. The Chairman pointed out. that before a poll could be taken it : must be requested by three or more shareholders representing at least onetenth of the capital of the Company. Mr Hodgins remarked that this I was out of the question. He was personally quite satisfied in the matter. The resolution confirming the action of ';he Directors was then put and carried. lhe Chairman mentioned that the new Company would be a great advantage to the dairy farmers. They would be in a position of having a bacon factory, as up-to date as any in the Province, for £2500, with all appliances for slaughtering and freezing, and with a railway siding. If these provisions were to be made separately, they would cost a bacon company about £15,000.