Page 3 Advertisements Column 3

Waikato Argus, Volume XI, Issue 1077, 19 October 1901, Page 3

Ot!C9l!. CO-OPERATIVE DAIRYING COM PAN V. PKOBPEGTUB a oi' THE NEW ZEALAND DAIRY ASSOCIATION, LIMITED, f INCOUI'OUATLD UNDKU ‘Tim COMI'ANIKS ACT, 1882,’ AND ITS A JON D.M ENTS. CAPITAL: £IOO,OOO. Divided into ‘IO,OOO .Shares of £‘2 10s each, of which 20,000 are now offered for adscript ion, I lie S-nLncu being h< hi in I’e‘wrw, as follows 2 ; fid on application, ami the halaner in calls of 2a 00 cadi at intervals ot not less than six months. I’KOVI-tONil. Direct. >Ks : Messes W KSLISY MTiAGG, FJ. K. DAL K.Y & A. I! ANNA Maxa<;ino Dim;urn ; MR W!£-tI,MY BDRACG Baskiks : THE BAN 1C Of' MIIV ZEAL A XI) Solicitor : MU A. HANNA Sw. btahv : MR if, M. I’ACHY Of kick ; WELLESLEY STREE r, A (Ji.'KLAND. m[lE Association lias been formed — To a<quii(s mid lake over, ms from 1- the first of the present month, the iMi.-it ss, property, plant, (rode marks, goodwill, contracts and engag, moms of the New Zealand Dairy Association, which is on*- of the oldest and most prosperous Dairy concerns in New Zealand, embracing the ‘ Muller Department’ of The Few Zealand Frozen Meat and Storage Co., Ltd., the iuisinefs.of the old New Zealand Dairy Association and the business of Reynolds it Co., Ltd. which have been amalgamated and greatly extended, ami composing at present : (a) Forty (40) separate skimming stations and factories, iiufindiiig two new creameries now in course of erection at Aka Aka. an i Maunaatautnri respectively, which will be c 'indeed at (he cost of the Vendors, and the Pnkekohe Central Factory, which is now being enlarged and improved at a co,it of about £I,OOO, whieli the Ven'ors will I.cat. (b) The extensive freehold city business pn misey, coffag.-s, and stables, situated in Wellesley and Albert. 8 nets, Auckland. {(•) Various land and properties. (</) The trade marks autl goodwill of markets, including ihe present city busir-ess. AND to convert flic 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 ate 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 he 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 (-100) 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 : 1 There is nc doubt but that people will give very much better prices tor your tumor than for any other in New Zealand, and it must be satisfactory for you lo know this.’ The London agent’s report on last season’s operations says : ‘The prices nalised for your butler 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 Jvine, 1899. This letter is from the pen of Mr J. A. Bulkcley, the holder of the llawkcsbury Agricultural Scholarship. Mr Bulkcdey says:— ' 1 The Uni'ed States Government purchased in London in January, 1891), 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; — Mr Bulkcley continues:-- ‘ Professor' Smith, Director of the Experiment Station at Michigan College, who saw the packages at Grand Rapids, assured mu that notwithstanding the adverse conditions to which they had been exposed, they ranked etjual if not superior to the host fresh American butter exhibited.’ The control which the Association's brands of butter have of the Auckland markets, and the prices they command, arc too well-known to need comment, Valuation of the properties, plant ami business lias been made by Robert Fenwick, Esq , Managing Director of T. &8. Morrin, Ltd. His report is as follows; ‘Auckland, August 13th, 1901. To 1 VVlslky St’RAOO, Em,'., 1 Manager New Zealand Dairy Association, ‘ Auckland. ‘ Sir,— Following your instructions I have, with the assistance of Mr William Cole, a competent Ironmonger, ami Mr Ahxr. 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 u detailed schedule of freehold and leasehold lands, buildinga, properly, machinery, pLnt, etc., including the two central factories and the freehold city premises. 1 have also considered the alterations now being effected at Pnkekohe at your cost, and the new erections now in con ge at Aka Aka and Maungatautari, and I estimate the present value of all property to be at East £40,806 (forty thousand tight hundred and six pounds.) * J have also carefully examined your business records and accounts, and I csli-

mate the value of your trade marks, markets and the goodwill of the same to be at least £6,000 pix thousand pounds). ‘Making in all a total of £16,806 (fraty-aix thousand eight hundred and six pounds ‘(digued) ‘ liDJil.ItT f'l'.SWK’K,’ The business, properties tint! assc's above mentioned, including the Association’s manufacturing, Lading mid 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 £IO,OOO (exclusive of stock and book debts), and the same is to be paid and provided for as follows; - £I,OOO in -100 fully paid-up sliar.s; £OO.COO by the issue of MOO debenture? of £IOO etch, redeemable by annual payments of £IOOO, and tearing interest at the rate of £5 cent, per annum, payable half-yearly. The stock-in-trade will lie taken at valuation, and will he paid for in cash. The. book debts arc guaranteed by tlm Vendors as good for book values, and will be taken over accordingly and paid for in cash. The services of Mr Wesley Bpragg, who has been General Manager of the business since its inception, have been secured as Managin'* 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 favouraide 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 by milk supplies and employees only, so that the Company may be purelv 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. The usual joint and several bond, which has hitherto been so seriously objected to, will not bo requited. Shareholders’ liabilities will thus be limited to their own shares, 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 Is (id per share on application only; nothing turthcr on allot muni. Jo the case 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 iully meet the calls from year to year, and in that manner the whole property be paid lor without any burden being felt.