The Waikato Argus GEORGE EDGECUMBE, Proprietor. SATURDAY, MARCH 25, 1899.

Waikato Argus, Volume VI, Issue 414, 25 March 1899, Page 2

The Waikato Argus GEORGE EDGECUMBE, Proprietor. SATURDAY, MARCH 25, 1899.

A crisis in the history of the dairy industry in Waikato has arisen. Discontent on the part of suppliers may be said to have been chronic ever since the creameries have been established. A determined effort is now being made to do away with dissatisfaction by removing the causes. In our last issue we published the proceedings of a meeting held at Pukeritnu. The statement placed before the meeting by Mr John Fisher, gave the material heads of the proposed departure in sufficient detail to allow of the principle involved being endorsed or rejected. It is well, however, that we should endeavour to make the position still more clear.

Negotiations have been entered upon between the Waikato Milk Suppliers' Union and the well-known Auckland firm of Messrs Ainbury, English and Company, with the result that that firm has entertained the proposal to form their business into a Limited Liability Company on terms set forth in a carefully drafted scheme. In the first place the capital is fixed at £30,000, of which it is proposed that the suppliers shall subscribe 10,000 shares of £1 each, 8000 shares to be offered to the public, and the balance of 12,000 paid up shares to be held by the firm of Ainbury and Co. in payment for the goodwill of the existing business, book debts, plant and properties which they would hand over to the proposed company. It is of the first importance that the suppliers should understand what are the liabilities they aro asked to undertake by becoming shareholders. In the first place it is incumbent upon them to take up a proportion of the 10,000 shares settled on the basis of the number of cows they milk. They will be liable to pay £1 per share, and there their liability ends. The objection, therefore, to signing a joint and several bond is thus got over, which is an undesirable document, notwithstanding that it is by that means that the capital has been secured for the majority of the co-operative concerns which are working satisfactorily in the colony. The share capital is to be called up as follows : 2s per share on application, and a further 2s per share within thirty-one days ; the remaining lGs only to be called up as required ; the balance unpaid to bear interest at five per cent, per annum ; seven days' notice at least to be given of each call, and no call to exceed Is per share ; one calendar month to elapse between the making of each successive call; no call to be made payable during the mouths of May, June, July or August in any year.

The suppliers must bear in mind that in taking shares they will in all human probability invest their money in a payablo business. This supposition is more than justified by tho fact that those who now enjoy tho monopoly are exceedingly loth to part with it on any terms, in fact refuse absolutely to treat for its sale with the only organisation of suppliers which was in a position to deal. It may bo chat this is tho case in consequence of the company carrying on business in the Waikato, paying what it thinks fit and absolutely refusing to pay more for tho milk supplied. The suppliers, not having access to the books of the company, are not in a position to dispute that they are receiving as much as ultimate results justify, unless it be by comparison with the prices paid by co-operative companies and the bonuses suppliers receive over and above the higher sum per gallon paid for the milk. In the absence of definite information, it is only possible to arrive at a conclusion by comparison. The logical conclusion in this instance is unquestionably that the milk suppliers should take the business into their own handa; or, as is suggested, turn their business into a joint stock concern, to be managed by men of probity and experience. Messrs Ambury, English and Co. have successfully conducted a business in Auckland for seventeen years, and no Avord against their business or personal characters has been whispered. They commenced in a very small way, and we are told have created a business with a turnover of £20,000 per annum. These facts are, or should be, sufficient credentials to secure them any position relating to their own business to which they might aspire. After the most careful consideration of this most imporant business to the Waikato, we are clearly of opinion that the suppliers should avail themselves of the opportunity which now offers to better their position by becoming their own masters, with the light to know, and the power to insist upon knowing, all tho details of a business in which they are so deeply interested.