Page 3 Advertisements Column 3

Waikato Argus, Volume XI, Issue 1052, 19 September 1901, Page 3

JM OIICS fa. CO-OPERATIVE DAIRYING COMPANY. PROSPECTUS OF THE NEW ZEALAND DAIRY ASSOCIATION, LIMITED, 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 in Reserve, payable as follows 2s 6d on application, and the balance in calls of 2s 6d each at intervals of not less than six months. Provisional Directors : Messrs WESLEY SPRA6G, H. E. PACEY <& A, HANNA Managing Director : MR WESLEY SPRACG Bankirs: THE BANK OF NHVV ZEALAND Solicitor; MR A. HANNA Secretary : MR H. E. PACI.Y Office: WELLFSLEY RTRKKP, AUCKLAND. THE Association has been formed—To acquire and take over, as from the first of the present month, the business, property, plant, trade marks, goodwill, contracts and engagements of the New Zealand Dairy Association, which is one of the oldest and most prosperous Dairy concerns in New Zealand, embracing the 1 Butter 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; — («) Forty (40) separate skimming stations and factories, including two new creameries now in course of erection at Aka Aka and Mauugutaiuari respectively, which will be completed at the cost of the Vendors, and the Pukekohe Central Factory, which is now being enlarged and improved at a cost of about £I,OOO, which the Vendors will hem. (b) The extensive freehold city business premises, cottages, and stables, situated in Wellesley and Albert Streets, Auckland. ( c ) Various land and properties. (a!) 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 mav be 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 be 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 are 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 to 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 beyond 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 no doubt but that people will give very much better prices tor 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 very 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-Secretary for Agriculture and Mines, Sydney, and published in the Agricultural Gazette of New 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 United States Government purchased in London in January, 1899, 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 by experts from New York Boston, and Chicago, with the following results: — ’ 1. Australia, trade mark Bangalow 80 points 2. „ „ Ululu 83 „ 3. New South Wales, Berry Creamery, Shoalhaven, N.S.W 83 „ 4, Victoria, Anderson’s Merrimu Butter Factory ... ,, 5. New Zealand, New Zealand Dairy Association, Auckland gji Mr Bulkeley continues ; • Professor Smith, Director of the Experiment Station at Michigan College, who saw the 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.’ 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 made by Robert Fenwick, Esq., Managing Director of T. &S. Morrin, Ltd. His report is as follows: ‘Auckland, August 13th, 1901, To • Wesley Spragg, Esq., • Manager New Zealand Dairy Association, 1 Auckland. ‘ Sir,— 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. 1 1 find that generally the machinery and plant have been kept up-to-date and that they are in good goina 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. I have also considered the alterations now being effected at Pukekohe at your cost, and the new erections now in oouise at Aka Aka and Manngatautari, and I estimate the present value of all property to be at least £40,806 (forty thousand eight hundred and six pounds.) 1 1 have also carefully examined your business records and accounts, and I estimate the value of your trade marks, markets aud the goodwill of the same to be at least £6,000 (six thousand pounds). ‘Making in all a total of £46,806 (forty-six thousand eight hundred and six pounds ‘(Signed) ‘ Egbert Fenwick. 1 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 and Britain, are being acquired on exceptionally favourable terms. The price is £40,000 (exclusive of stock and book debts), and the same is to he paid and provided for as follows; - £I,OOO in 400 fully paid-up shares ; £39.000 by the issue of 390 debentures of £IOO each, redeemable by annual payments of £4OOO, aud bearing interest at the rate of £5 cent, per annum, payable half-yearly. The stock-in-trade will bo taken at valuation, and will be paid for in cash. The book debts are guaranteed by the Vendors as good for book values, and will be taken over accordingly and paid for in cash. The services of Mr Wesley Spragg, who has been General Manager of the business since its inception, have been secured as Managing Director of the Company for a period of seven years at his present salary, but without commission or share of profits. The Association is also arranging to secure the services of Messrs Lovell and Christmas, Ltd., fora like period of seven years upon favourable terms. Messrs Lovell and Christmas, Ltd., have for many years acted as solo Agents for the Association in London, and under their care what is practically an order demand for the Association’s brands of butter has been created at prices much in excess of current quotations. The registered trading title, ‘ New Zealand Dairy Association,’ has acquired very considerable commercial value. It is therefore being retained unaltered, excepting by the addition of the word ‘ Limited,’ in compliance with the Act. As it is desirable that the whole of the shares be subscribed for bv milk suppliers and employees only, so that the Company may be purely co-operative in its constitution, the terms upon which the business will be transferred have been specially arranged so as to enable every supplier to take up his full number of shares. " F The usual joint and several bond, which has hitherto been so seriously objected to, will not be requited. Shareholders’ liabilities will thus be limited to theii own shaies, and they will not carry responsibility on account of others. The purchase money has been obtained by arrangement as above, on easy terms, at a low rate of interest. The immediate cost to shareholders will be ‘Js fid per share on application only; nothing further on allotment, In the case of milk suppliers t.iis payment ipay bo made by order upon the Association. Subsequent calls will bo at long intervals, and it is expected that the profits will fully meet the calls from year to year, and in that manner the whole property be paid for without any burden being felt,