Page 3 Advertisements Column 3

Waikato Argus, Volume XI, Issue 1048, 14 September 1901, Page 3

■ftOU'jsi CO-OPERATIVE DAIRYING COMPANY. PROSPECTUS nm ; v .t i|fiO|is 1 V J i Ais * A W Ji i Mfct "ft Incorporated under ‘The Companies Act, 1882,’ and its Amendments. CAPITAL: £IOO,OOO. Divided into 40,000 Shares of £2 10s each, of which 20,000 are now offered for subscription, the balance being held m Reserve, payable as follows 2s (id on application, and the balance in calls of 2s (id each at intervals of not loss than six months. PROVISIONAL Directors •* Messrs WESLEY SPRAGG, H. E. I’ACEY & A. J HANNA Managing Director : MR WESLEY SPRAGG Bankirs: THE BANK OF NEW ZEALAND Solicitor: MR A. HANNA Secretary : MR H. 15. PACEY Omcic: WELLIfSLKY STREET, AUCKLAND. FI 4HE Association has been formed—To acquire and lake over, as from X the first of the present month, the bus?ness, property, plant, trade marks, goodwill, contracts and engag. meins of the New Zealand Dairy Association, which is one of the oldest and most prosperous Dairy concerns in New Zealand, embracing the ‘ llutler Department ’ of The New Zealand Frozen Meat and Storage Co., Ltd., the business of the old New Zealand Dairy Association and the business of Reynolds & Co., Ltd. which have been amalgamated and greatly extended, and comprising at present : (a) Forty (40) separate skimming stations and factories, including two new creameries now in course of erection at Alia Aka ami Maungatautari respectively, which will he completed at the cost of the Vendors, and the Pultekohe Central Factory, which is now being enlarged and improved at a cost of about £1,01)0, which the Vendors will hear. [b) The extensive freehold city business premises, cottages, and stables, situated in Wellesley and Albert Streets, Auckland. Ic) Various land and properties. (d) The trade marks and goodwill of markets, including the present city business. AND to convert the same into a milk suppliers’ co operative company, with limited liability, thus enabling milk suppliers to secure all profits and advantages which are derivable from the business. AND generally to extend and develop the business in such direction as may bo decided by the Directors in accordance with the Memorandum of Association of the Company. Although the issue of half the capital of the Association will he ample to acquire the existing business and carry it on efficiently, it has been thought expedient to make provision for the expansion of the Association’s business. There arc profitable openings for creameries in districts not now occupied, and the directors will be in a position to issue to local milk suppliers, from time to time, sufficient shares lo cover the cost of buildings and plant, so that all new creameries will be initiated on the co-operative plan. The business has been in existence sixteen years and has thus passed l-eyond the experimental stage, and is now an assured and prosperous concern. The city trade and the order trade of the Islands and Australia have exceeded four hundred (400) tons of butter during the past year; while the London business for the same period has been nearly eight hundred (800) tons. Writing under date of 29th of May of this year, the Association’s Australian Agent says : ‘ 'there is uo Routt but that people will give very much better prices for your butter than for any other in New Zealand, and it must be satisfactory for you to know this.’ The London agent’s report on last season’s operations says : ‘The prices realised for your butter are the v ( ry highest in the market.’ The quality of the butter has elicited commendation in whatever foreign market it has been placed. The following are extracts from a letter addressed to the Under-Socretary for Agriculture and Mines Sydney, and published in the Agricultural Gazette of Now South Wales for June, 1899. This letter is from the pen of Mr J. A. Bulkeley, the holder of the Hawkesbury Agricultural Scholarship. Mr Bulkeley says:— ‘ The Uni’ed States Government purchased in London in January, ISM, four samples of Australian and one of New Zealand butter for exhibition in America. These packages were landed in New York in the same month and were critically examined iry experts from New York Boston, and Ghicaco, with the following results ; 1. Australia, trade mark ilanualow ... SO points 2 ~ Uliilu s;; 3. New South Wales, Berry Crearr.eiy, Shoalhavcu, N.S.W S3 4. Victoria, Anderson’s Mcrriiiiu Biuiei Faecmy ... S4-, ~ 5. New Zealand, New Zealand Dairy Ass; (ration, Auckland pji. Mr Bulkeley continues : ‘Professor Smith, Director of the Experiment Station at Michigan College, who saw the packages at Grand Rapids, assured me that notwithstanding the adverse conditions to which they had been exposed, they ranked equal if not superior to the best fresh American butter exhibited.’ 1 The control which the Association’s brands of butter have of the Auckland markets, and the prices they command, are too well-known to need comment. Valuation of the properties, plant and business has been mado by Robert Fenwick, Esq , Managing Director of T. &S. Morrin, Ltd. His report is as follows; —• ‘Auckland, August 13th, 1901, To ‘ Wesley Sprago, Esq., • Manager New Zealand Dairy Association, ‘ Auckland. ‘ SUi,— Following your instructions I have, with the assistance of Mr William Cole, a competent Ironmonger, and Mr Alexr. G, Harvey, Manufacturer of, and Agent for, Dairy Machinery, utensils, and general Dairy supplies, made a careful and independent examination of, and enquiry into the condition and value of the property, plant, and business of your Association. ‘ I find that generally the machinery and plant have been kept up-to-date, and that they are in good going and working order and condition. • I have had prepared a detailed schedule of freehold and leasehold lands, buildings, property, machinery, plant, etc., including the two central factories and the freehold city premises. 1 have also considered the alterations now being effected at Pukekohe at your cost, and the new erections now in course at Aka Aka ami Mauneatautari. and I estimate the present value of all property to be at least £40,806 (forty thousand eight hundred and six pounds.) •I have also carefully examined your business records and accounts, and I estimate the value of your trade marks, markets and the goodwill of the same to he at least £6,000 (six thousand pounds). t0 ‘ Making in all a total of £46,806 (forty-six thousand eight hundred and six pounds. ‘(Signed) ‘ Robert Fenwick.’ The business, properties and assets above mentioned, including the Association’s manufacturing, trading and delivery organisations its present Auckland city and other local markets, and its markets in the Islands, Australasia ami Britain, are being acquired on exceptionally favourable terms. The price is <£40,000 (exclusive of stock and book debts), and the same is to be paid and provided for as follows ; - £I,OOO in 4CO fully paid-up shares; £39,000 by the issue of 390 debentures of £IOO each, redeemable annual payments of £4OOO, and bearing interest at the rate of cent, per annum, payable half-yearly. The stock-in-trade will be taken at valuation, and will be paid for cash. The book debts are guaranteed by the Vendors as good fur bo values, and will be taken over accordingly and paid for in cash. The services of Mr Wesley Spragg, who has been General Manat of the business since its inception, have been secured as Managi Director of the Company for a period of seven years at bis present sain: but without commission or share of profits. The Association is also arranging to secure the services of Mess Lovell and Christmas, Ltd., fora like period of seven years upon favoi able terms. Messrs Lovell and Christmas, Ltd., have for many ye; acted as sole Agents for the Association in London,, and under th care what is practically an order demand for the Association’s brands butter has been created at prices much in excess of current quotations. The registered trading title, ‘ New Zealand Dairy Association,’ L acquired very considerable commercial value. It is therefore being tained unaltered, excepting by the addition of the word ‘ Limited’’ compliance with the. Act. As it is desirable that the whole of the shares he subscribed for milk suppliers and employees only, so that the Company may be pun co-operative in its constitution, the terms upon which the business w be transferred have been specially arranged so as to enable every si plier to take up his full number of shares. The usual joint and several bond, which has hitherto been seriously objected to, will not bo required. Shareholders’ liabilities v thus be limited to their own shares, and they will nut carry responsibil on account of others. The purchase money has been obtained by arrangement as above, easy terras, at a low rate of interest. The immediate cost to shareholders will be 2s (id per share application only; nothing further on allotment. In the case of m suppliers t.iis payment may be made by order upon the Associati Subsequent calls will be at long intervals, and it is expected that profits will tully meet the calls from year to year, and in that man the whole property be paid lor without any burden being felt.