THE DAIRY INDUSTRY.

Waikato Argus, Volume VI, Issue 413, 23 March 1899, Page 2

THE DAIRY INDUSTRY.

A MEETUtG of the Pukerimu members of the Waikato Milk Suppliers' Union was held at Mr Willoughby's farm, on Monday night, at 7.30 p.m., whon there was an attendance of a considerable number of settlers interested in the movement, besides the mill; suppliers of the district.

It was moved and seconded tint Mr R. Freeman txke the chair. The Chairman then called on Mr J. Fisher, one of the delegates for the district, to read the notice convening the meeting, which was as follows : —" A meeting of milk suppliers and others prospectively interested as such, is hereby convened by the undersigned, and will be held in Mr Willoughby's barn (kindly lent for the occasion) on Monday evening next, 20th March, at half-past 7 o'clock. The business will include a detailed statement of matters relative to the Waikato Milk Suppliers' Union and the consideration of a proposal to form a Limited Liability Company to work in connection with the well-known AuckUnd firm of Ambury, English and Company, for the further development of the dairying industry in this district. A full attendance is requested, as the questions to be considered are of vital importance. —Signed, John Fisher and Joseph Gane, Delegates, Pukerimu, 18th March, 1899 "

Mr J. Fisher, in further explaining the object for which the meeting was convened, said it would be in the recollection of members present that in December last, Mr R. R. Hunt visited 12 creameries in this district, and at all of these creameries resolutions were passed in favour of the milk suppliers forming themselves into a co-operative company Ten of these creameries went further and requested him at the same time to approach the New Zealand Dairy Association with a view to ascertaining if the Association would entertain an offer for the purchase of the creameries on friendly terms. The correspondence relating to this matter was published in the papers, and as these letters speak fur themselves, he would say nothing further. They were, of course, aware that Mr Sprang positively declined to have anything to do with the delegates of the Union as such. It was also found that there was strong objection made by most of the suppliers to the joint and several bond which was part of the proposals submitted by Mr Hunt, aud it was decided to endeavour to get this clause omitted, but Mr Hunt found this was impossible, the financier lie represented absolutely refusing to submit proposals on any other terms, and it is to give this explanation that the meeting had been called. Now for the consideration of the later proposals, Mr Hunt interviewed Messrs Ambury, English aud Company, with the object of bringing before them the proposal of the Waikato settlers to form a limited liability company. He received favourable consideration and the result is the proposals he laid before them that night. He need not say much to them about this firm. Seventeen years ago they commenced business in a small way, and to-day they had a turn over of £20,000 a year. He was personally acquainted with the members of the firm and was convinced that they were the right men to carry out these proposals. To join such a firm as this would be a step in advance of the proposals previously made by Mr Hunt, suppliers generally not being experienced in the commercial aspect of the dairying industry. The clauses he read would give them an idea of the nature of the proposals made, and he need not go further into the details of the conditions. They would notice that three of the members of the firm of Ambury, English and Co. were to be on the Board of Directors and to be engaged as managers of the company for three years from the day of the incorporation of the company at a salary of £3OO per" annum each. Now, although this at first sight may seem somewhat uuusual, it must be remembered that these gentlemen are working managers, whose time at present is fully employed in the transactions of the business which in its proposed new form will be very largely increased. The company will erect or purchnse skimmiug stations in each district, and the arrangement with regard to the prices giveV for milk will extend over a period of three years instead of one year. It will be noticed that the prices are an advanee on those offered at any former time in Waikato, and will average fully 3d per gallon for the first seven months of the season, with an advance for the other months, during which the creameries may be kept opeu. The capital of the proposed company will be £30,000, to be divided into 30,000 shares of £1 each, 10,000 shares to be allotted to the Waikato milk suppliers proportionate to the quantity of milk supplied by each, 8000 reserved for issue to the general public, and 12,000 fully paid up shares to be allotted to the present proprietors of the business as against their assets to be transferred to the company. When the company is formed a fair and proper valuation of the farms, plant aud properties will be made by competent valuers approved by the shareholders, who will report as to the correctness of value attached to the several items offered in the schedule as assets.

Several questions more or less relevant were asked and answered satisfactorily by Mr Fisher. Mr J. Gane asked if the conditions which Mr Fisher had read, to the meeting were the usual ones under which a limited liability company of this description would be formed.

Mr Fisher replied that the conditions were usual and had been approved by a lawyer on behalf of the Union. Mr W. Sturges asked where the market would be for the butter, and was informed by Mr Fisher that London would be the principal market for it, and satisfactory arrangements were already on foot as regards that part of Hie business. Mr A. Jones inquired whether 20 per cent would be deducted by the purchasers from the milk, as he considered 15 per cent quite enough. The reply was that 20 per cent was the usual deduction.

Mr A. Wallace expressed the opinion that the whole matter should be thoroughly thrashed out. Mr W, Sturgcs remarked that the important change now proposed should bo well discussed. He could not understand how a firm with a yearly turn over of £'20,000 could do the business of the suppliers as efficiently as the firm they wore now dealing with, and failed to see any advantage in making a change. Mr Scorer expressed dissatisfaction with the present results of tests, and was of the opinion that they were not accurately made. Mr Fishor said the testing had been a difficult and unsatisfactory matter in the past, and it was now proposed that the full reading of the Babcock test would be allowed the suppliers ; and whilst the company would purchase the butter-fat at 7Ad per lb, it was well known by suppliers that lib of butter was made out of a quantity of milk varying from 231 b to 251 b. They were aware that they had made every endeavour to obtain what they considered a remunerative price for their milk, and Mr Spragg had declined to meet them in a definite way, but had held out delusive hopes of a bonus which had never been realised. Mr J. (Jane remarked that it was a matter for congratulation that the industry had grown to its present extent, and there was evidence of abundance of scope for the operations of the proposed company. A healthy competition would improve the prospects of settlers as a better price would be the outcome. That better price was now offered to them, and the effect of it would be a vast stimulus to production. He urged the settlers to take the opportunity of setting the industry on a more satisfactory footing by heartily endorsing the principles contained in the proposals before the meetiug.

Mr Scott moved—" That the meeting having heard and considered the proposal to form a limited liability company to carry on the dairy industry in this district, approves of tho same." Mr A. Jones seconded. On tho Chairman askiug for a show of hands, seven voted in favour of the resolution, and, there being no rotes to the contrary, it was declared carried. A vote of thanks was then given to the Press for attending the meeting ; to Mr Willoughby for the use of his barn ; and to the Chairman for presiding.