Page 3 Advertisements Column 3

Waikato Argus, Volume XI, Issue 1075, 17 October 1901, Page 3

Notices, CO-OPERATIVE DAIRYING COMPANY. PROSPECTUS OF LIMITED, Incuiu'okatm) under ‘The Coiu’anies Act, 188*2,’ and ns Aji• ndmknts. CAPITAL: £IOO,OOO. Divided into 40,000 Shares of if ! n « each, ri which *20,000 are now offered for aiDsti)i. : - l i° ,, > f ' lo ■■'■iiiicu ! in',;- "* lies. rve, payable as fol'ows ;~2i (id on application, and the (nuance iu cMLs of*2s of '‘ Hu h at intervals of not less than six months. Provisional Directors : Messrs WESLEY BPRAGG, H. K. PAG MY & A. HANNA Manacixo Duti-crou : MR WESLEY SPH AEG Banki us : THE BANK OF MEW ZEALAND Solicitor : MU A. if ANNA : MR H. 15. PACKY Offi.e: WELLESLEY STR! K r, AUCKLAND. r PtIE Association has been formed— To a; quire and fake over, as from JL the first of die present month, the h-uMnesp, property, plant, trade marks, goodwill, contracts and engagrmen's of the New Zealand Dairy Association, which ison<* of the oldest and most prosperous Dairy concerns in New Zealand, embracing the ‘ Jlutler 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 sknnmh.r; .stations and factories, including two now creameries ntyv in coin sc of election at Aka Aka and ManugataiUari respectively, which will he complc'cl at the cost of the Vendors, and (die Pnkekohe Central Factory, which is now being cnlaiiied and inijtrovrd at a coR of about £1,(100, which the Vendors will hear. (A) The extensive freehold city business premises, coU.agrs, and stables, situated in Wellesley and Albert ci*reels, Auckland. (c) Various land and properties. (d) The trade marks and goodwill of markets, including the present cily busitess. 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 tin! Company.

Althomfb the issue of half the capital of the Association will be ample. to acquire, tin; existing' business and carry it on ellicicntiy, it lias been thought expedient to make provision for the expansion of the AssociationVbusiness. There ate profitable openings for creameries in districts not now occupied, and the directors will he in a position to issue to local milk suppliers, from time to time, sullieient shares (o cover the cost of buildings and plant, so that all new creameries will be initialed on the co-operative plan. The business has been in existence sixteen years and has thus passed l eyond the experimental stage, ami is now an, assured am! prosperous concern. The city trade and the order trade of the Islands and Australia have exceeded four hundred (100) tons of butter during the past year; while the London business for the same period has been nearly eight hundred (8()0) tons. Writing under date of 29th of May of this year, the Associations Australian Agent says ; 1 There is no doubt but that people will give very much better prices tor your laiiter than for any other in Lew Zealand, and it must be satisfactory for you to know this.’ The London agent’s report on last season’s operations says ‘The prices nalised 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-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. Eulkeley, the holder of the Hawkesbury Agricultural Scholarship, Mr Eulkeley says 1 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 ty experts from New York, Boston, and Chicago, with the following results 1. Australia, trade mark Bancalow 80 points ‘2 ~ ~ Uinln 83 ~ 3. New South Wales, Berry Creamery, Shoalhavcn, N.S.W 83 „ 4 Victoria, Anderson’s Mcrrimu Balter Factory ... 844 ~ 5. New Zealand, Nkw Zealand Dairy Association, Auckland ' 9i l Mr Eulkeley continues ‘ Professor" Smith, Director of the Experiment Station at Michigan-College, who saw the packages at Grand Rapids, assured me that notwithstanding the adveisc conditions to which they had been exposed, they ranked equal if not superior to the beat 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 Spkago, Esq., ‘ Manager New Zealand Dairy Association, 1 Auckland. ‘ Sir,— Following your instructions I hate, with the assistance of Mr William Cole, a competrnt Ironmonger, and Mr Alexr. G. Harvey, Manufacturer of, and Agent for, Dairy Machinery, utensils, and general Dairy supplies, made a careful arid 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 arc in good going and working order and condition. ‘ I h»ve 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 Rnkoknhc at your cost, and the new erections now in course at Aka Aka and Maungatautari, and I estimate the present value of all property to be at least £40,80(1 (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 ho at least £6,000 (dx thousand pounds). ‘ Making in all a total of £10,806 (forty-six thousand eight hundred and sixpounds ‘(■Signed) ‘ Rojuut 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 and Britain, are being acquired on exceptionally favourable terms. The price is <£-10,000 (exclusive of stock and book debts), and the same is to be 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, aid Louring interest at the rate of £5 cent, per annum, payable half-yearly. The stock-in-trade will be taken at valuation, and will be paid for in cash. The book debts arc guaranteed by the Vendors as good for book values, and will bo taken over accordingly and paid for in cash. The services of Mr Wesley Epragg, who has been General Manager of the business since its inception, have bum secured as Managing Director of the Company for a period of seven years at Lis 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, 1 New Zealand Dairy Association,’ has acquired very considerable commercial value, It is therefore being retained unaltered, excepting by the addition of the word 1 Limited,’ in compliance with the Act. As it is desirable that the whole of the shares be subscribed for by milk suppliers and employees only, so that the Company may be purely co-operative in its constitution, the terms upon which the business will bo transferred have boon specially arranged so as to enable every supplier to take up his full number of shares. The usual joint, and several bond, which has hitherto been so seriously objected to, will not be roqniied. Shareholders’ liabilities will thus be limited to their own shares, and they will not carry responsibility on account of others. The purchase money lias been obtained by arrangement as above, on easy terms, at a low rate, of interest. The immediate cost to shareholders will he 2s (id per share on application only; nothing further on allotment. In the ease of milk suppliers this payment may be made by order upon the Association. Subsequent calls will be 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 lor without any burden being felt,