Wairarapa Daily Times. [ESTABLISHED 1874.] MONDAY, MAY 13, 1895. A DAIRY COMPANY CRISIS.

Wairarapa Daily Times, Volume XVI, Issue 5024, 13 May 1895, Page 2

Wairarapa Daily Times. [ESTABLISHED 1874.] MONDAY, MAY 13, 1895. A DAIRY COMPANY CRISIS.

Tiißitii has been n crisis in the affairs of the Now Zealand Farmers' Hairy Union,which Ims been accompanied by the resignation of the late Secretary, Mr Hpbeids, and the late Manager, Jlr Bnrch. A large gathering of milk-suppliers has been held at Palmerston North to consider the situation, and it is from the published report of this gathering that wo glean our information. The (roubles of tho Company have arisen primarily from the depressed price paid for butter in tho London market, and In a mliiQp degree fi.om the insufficient capital attached to the undertaking. The Company bad to bo financed by a Wellington mercantile firm to which it has been paying a commission of 2i per cent, on its produce and ten per cent, interest 'on certain advaiio'es guaranteed to it. Tho general result scomslohavobceu that the Company was unable to pay milk-suppliers the rate per gallon promised to them, and was also dilatory in rendering its accounts. The directors have taken the milk suppliers fairly'into their confidence, (md are making an pbyipps effort to put matters generally fm a. better footing, If the milk' : suppliers stand loyally by them, and submittqincyjt T able reduction in tlio price paid {or milk, the company may hold its own till better times come. On the other hand if the suppliers do not back up the directors thoy stand to lose their stake in tho Company, which would then have no alternative but to go into liquidation. This would probably mean surrendering its buildings aim 1 assets to tho firm which has a very considerable Hen oyer thorn. It is always a gravo error to start any industrial concern''without ademiato capital Cooperation with capital is'strength, but' without a sufficiency of intlepepdenj; meansit is weaknm BflwwMfop#:Pll{h pliers of tho New Zealand farmers' Dairy- Union have made a mistake and must pay the penalty of it, Holding on till such time as tho Company can be put on a strong footing is obviously their best policy,

Next season milk-suppliers may be more likely to got 2d than 3d per gallon for their milk, but even this is better than allowing the Company to get into further difficulties. If one or two bad seasons can be weathered, tho suppliers may in the future receive an ample reward for the sacrifices they are now called upon to make, Shareholders in co-operative enterprises hardly as yet realize that it is as much a part of their bargain to share losses as it is to divide profits,