FARMERS’ MEAT COMPANY

Gisborne Times, Volume XLV, Issue 4009, 16 August 1915, Page 6

FARMERS’ MEAT COMPANY

IMPORTANT MEETING OF DIRECTORS. PREFERENCE INTEREST SHARES TO BE ISSUED. , . EXPERIENCED WORKS MANAGER APPOINTED. An important meeting of the directors of the Poverty Bay ’Farmers’ Meat -Company, Ltd., was held on Saturday There wore present: Messrs W. D. Lysnar (chairman), Hy. Williams, G. Witters", J. G. Field, Geo Coop, E. J. 'Williams, J. W Barker, L. B. Tullock, arid E. Pattullo. Satisfactory report} wore received regarding the progress of 1 lie works, and a report was received stating that all requisites for starting .the. works had been ordered to enable the works to be started by December Ist next. The directors' decided to appoint M r William Duncan as manager. The now manager has an excellent record as a freezing works manager. He was six and a-half years secretary and works manager for the -Christchurch Meat Company, eight years works manager of the Riverina Frozen Moat Company, New South AY ales, four years works manager Tims. Bort.liwielc and Sons (Australasia) Ltd. at Melbourne, two and a-half years manager AY) tumor a Inland Freezing Company, Victoria. Mr Duncan, who arrived' from Australia on AVedncsday last, was present at the meeting. It is intended that Air Duncan will take up his duties immediately, in order that 'lie can supervise t.he laying out and equipping of the works to the best possible advantage. Tlio directors considered tlm scheme submitted by the special committee .setup to report regarding the basis of a scheme which will give shareholders preference in the event of a congestion ~f space arising at any time, and also a scheme for issuing a specific number of shares at a guaranteed rate of interest, with such limitations as might be considered advisable with regard to space and other privileges. After a considerable amount-. of consideration, the directors unanimously a<MTCd to the following basis:

(I) AVith regard to preference to shareholders in the matter of space., in the event of congestion arising at any time, that only shareholders be granted space in this event, and then only in proportion to the number of shares held. The numbers to be fixed as necessity avised.

The directors felt- that in view of the recognised difficulties in providing shipping facilities for the coming season that the freezing space- is liable to he more congested than during last season, and for that reason they feltit was only right that those who subscribed capital, should have fust can on the space m proportion to the shares they hold. Consequently, a man holding 100 shares would he entitled to 10 times the amount of a man holding 10 shares in the company. It- was pointed out that at a freezing works in another cutriet this principle had boon followed, hut shareholders had sold their space in the works at a considerable profit-, in one ease as high as £1 a head being obtained for space,lor cattle.

Regarding the guaranteed .preference shares, the directors unanimously agreed to the following Stasis : —“d hat ,3000 shares be offered to the public under the heading “•■Guaranteed Preference Shares,” at a guaranteed rate of interest of 7 per cent per an mini, payable half-yearly ; shares to participate in any higher rate of interest paid after all ordinary shares have been paid a rate of interest equivalent to 7 per cent per annum, calculated from “the actual date of receipt of final payment of share money in terms of the allotment, but the guaranteed interest shares to have- no privileges such as may be granted to ordinary shareholders, in hooking space, or other previ leges granted ordinary shareholders on rebates or bonuses on killing stock* etc.” Tho directors felt thfit as there were a number of business and other people who were not farmers who were desirous of aiding tho movement by subscribing capital as an investment it was only right that some definite provision should he in order to assure to tfiTs class of shareholder a minimum rate of interest. It is anticipated that a larger rate of interest than 7 per cent will be ultimately paid, judging by the profitable results of other freezing works throughout the Dominion. ]t was pointed out that very great facilities for handling the various products were being provided in the new works which would make for economy, as practically the main working' would be done upon the gravitation system throughout the three-storey building. The stock will be driven up to the top of the three-storey building to be killed, amt the various products will pass down 'to the different departments by gravitation, thus dominating a considerable amount of nand labor as well as extra machinery. In the case of the wool, it will arrive on the bottom floor in a condition ready to roll on to the railway truck, with liatdly any handling whatever. Provision is made for two distinct lines of railway to run through the works and all the bottom floors are '“list'd to the level of the railway truck, thus enabling every department to have facilities to load direct into the truck without any lifting whatever. In the case of tallow, pelts, arul wool, the casks or bales willsimply be rollect straight into the railway truck. j-U the case of meat, the freezing rooms will have a conveyor, and all that win be necessary "ill be for the men in the freezing chamber to lift the carcases on to the conveyor, which will cany the meat on to the railway truck without* anv further handling. The railway trucks will be stationed unuor cover. ... The directors considered that .the ordinary shareholders are sufficiently must he paid .back interest up to 7 must be paid back interest up to per cent, upon their shares before the preference shareholders can benefit frond the 7. per cent, interest, and consequently ultimately it is expecte . that all will receive an equal rate of interest, but an absolute certainty, is cyjviMi to those wlu) are contributing capital solely as an investment. The directors desire to place a still further number of ordinary shares w.ith shecpfarmors, in addition to tho ■£275.000 worth of preference bib-rest shares. If this is done, the directors will be enabled to have a works erected that will be a credit and a very great benefit to the district as a wiiole. They have every'confidence in offering both • classes of shares, and have every reason to believe that a much higher rate of interest than / per cent will ultimately bo paid-on both classes of shares. They statu that thov intend to run the works ,on tho best business lines possible, and to retain to tho shareholders tne fullest benefits obtainable.