KATANNING BUTTER FACTORY AND COOL STORES LTD.
PROPOSED AMALGAMATION – 1924.
Thus the Katanning “Herald” 13 March, 1924:-
A special meeting of subscribers of the Katanning Butter Factory and Cool Stores Limited was held in the Town Hall buildings on Thursday last, to consider the proposed amalgamation with the Great Southern Co-operative Butter Company. Limited, when it was Resolved to form such amalgamation, conditionally on cool stores being erected by January 1st next; and a butter factory being equipped and placed in operation by July 1st 1925.
The chairman of provisional directors, Mr. W. J. Rogers, occupied the chair, and explained the projected amalgamation.
He stated that the scheme had emanated from the Narrogin Butter Factory Company for the amalgamation of the Beverley, Narrogin, and Katanning concerns in one company to be known as the Great Southern Co-operative Butter Company Limited.
Already the amalgamation had occurred between the Beverley and Narrogin companies, and it now remained for Katanning to come in and form one large business.
A factory had been established at Narrogin for the past five years and was in a flourishing condition and had declared a net profit of nearly £1,000 for the financial year just closed.
It had been able to pay a dividend of 7 1/2 per cent, on paid up capital in addition to distributing a bonus of 1d. per lb. on all butter fat supplied, and its accumulated profits amounted to £2,000, with which it was intended to liquidate in full the advance received from the Government at the commencement of operations.
The full plans of amalgamation included the provision of receiving depot at Beverley and the erection of a cool stores and receiving depot at Katanning practically immediately, with the addition of a butter making plant to commence operations by July 1st, 1925.
The provisional directors had considered the matter fully and were convinced it was a good business proposition, and had no hesitation in recommending its adoption.
After discussion, Mr. Synott proposed:
“That the provisional directors of the Katanning Butter Factory and Cool Stores Limited take steps and are hereby authorised to amalgamate with and transfer the shares and assets of the Katanning Butter Factory and Cool Stores Limited subject to the following being included in the arrangements:
(1) The Katanning shareholders to have two members on the directorate;
(2) That arrangements be drawn up in a written agreement which shall provide among other things for equipment and putting into operation of a Butter Factory at Katanning by the 1st July, 1925, and Cool Stores in time for next summer (January, 1925).
The provisional directors of the Katanning Butter Factory and Cool Stores Limited to have full discretion and authority and all arrangements to be left in their hands.”
Mr. A. F. Watts seconded the motion, which was carried.
(Shareholders in the Great Southern Co-operative Butter Factory will be interested to learn that one of the stipulations under which the proposed amalgamation is to be effected is that a butter factory shall be established at Katanning on the 1st July, 1925.
Those present at the last annual meeting of the company will certainly have no recollection of a proposal of this nature.
It was understood that the basis of the arrangement to be made with the Katanning shareholders in the event of their turning down the proposed Company in favour of
amalgamation with Narrogin, was the nomination of one director and the erection of a receiving depot at that centre.
Seeing that the residents of Katanning are being offered the chance of participating in the profits of a going concern by accepting shares at par, we do not think they should attempt to push too hard a bargain in connection with the proposed scheme of amalgamation.
The position is clear enough.
The dairying industry has not reached that degree of stability which warrants a number of butter factories in the Great Southern.
Beverley realised this and willingly fell in with the sensible suggestion of the Narrogin butter Company to amalgamate, provided that representation was given that district on the directorate, and a receiving depot for cream was established at Beverley. Similar overtures were made to Katanning, and the meeting, as reported above, was the outcome.
It is absurd to suggest that a butter factory should be established in 1915 at Katanning by the joint assistance of Beverley and Narrogin.
Beverley shareholders might have agreed to come in under a similar arrangement, and so killed the scheme in its initial stages, but they were content with the fair offer made them, and have since concluded that they were very wise in having done so.
Katanning residents are offered £1 shares at par, in the Narrogin Company, or as it is now termed “The Great Southern Co-operative Butter Co., Ltd.”
Those shares are really worth 30/- and they are not available to anyone outside the present shareholders in the Company which was to be established at Katanning.
Local shareholders have created a company and borne all the responsibilities and now they cheerfully afford an opportunity to their neighbours to participate in the profits of their labour simply in order to stabilise the dairying industry.
What more does Katanning want in all fairness? -Ed.)