Ten Third Time Lucky – Trump Card 1914

CHAPTER TEN

Third Time Lucky – Trump Card

Infrastructure and strategy was now the name of the game. Having received unprecedented support from the farming community, directors were now challenged with delivering a sound, well organised, profitable company that would provide a range of services and sales in every category of trading imaginable. With a high profile and growing expectations of the company following its registration, the board was swamped with a raft of opportunities to consider. Correspondence came from throughout Taranaki, and indeed the Dominion, with offers of agencies, partnerships, businesses for sale and many other propositions. So many, that it was resolved that: The executive submit a report in writing upon all offers that may be obtained and that a copy of the report be sent to each director seven days before the meeting. Such report to be treated in strict confidence and such copies of the report to be posted by registered letter for personal delivery only. The influx of opportunities and sheer volume of business challenged the general organisation of the company. After all, it was not until 3 March that a resolution was passed to purchase the business of Gillies and Nalder. Considerable discussion had taken place before making this momentous decision. Apart from many meetings with Gillies and Nalder, and the company’s solicitor Mr Halliwell regarding their financial status, business book and overall liabilities, debtors and creditors and staff arrangements, Messrs Hunter, Barkla and Death also inspected properties owned or leased by Gillies and Nalder and also the property of Mesdames Cowper and Campbell before a decision was made. The chairman also visited Palmerston North to meet delegates of several dairy companies in the Manawatu, Hawke’s Bay, Wairarapa and Rangitikei and met with many Taranaki dairy companies, where promises of support were received ‘from nearly all of them’. However, despite this exceptional promise of patronage, it was resolved that the business would not proceed until a minimum subscription of £20,000 had been received. Expectations were high and the board was brimming with confidence. Although there was a hiccup relating to ‘the preference dividend on the ‘A’ Shares’, Gillies and Nalder received mortgage debentures in lieu of fully paid ‘A’ Shares, until the first general meeting, when the Alex Hunter, chairman of directors of The Farmers’ Co-operative Organisation Society would confirm the issue and alter the Articles of the Society. Effectively the entire Gillies and Nalder operation was sold to Farmers Society of New Zealand Limited, June 1915–44. Co-operative Organisation Society on 1 April 1914 for an undisclosed

sum. The personnel were retained as part of the transaction, including Arthur Gillies who was appointed honorary general manager and Edward Nalder, head auctioneer, together with other auctioneers, stock agents, property sales staff and office personnel:

MANAGEMENT: Gillies, Arthur W. Honorary General Manager CLERICAL: Holder, G. A. Secretary £500 per annum with 3 years engagement. Nichol, J. G. Accountant £250 per annum Arthur, J. B. Salesclerk £104 per annum Young, J. B. Junior £ 26 per annum AUCTIONEERS: Nalder, E. Auctioneer £400 per annum Hobbs, J. C. Agent Eltham £350 per annum STOCK AGENTS: Williams, H. A. In charge £400 per annum (Hawera) Nixon, E. A. Hawera £208 per annum Ellerm, H. W. Manaia £182 per annum Harrison, P. M. Hawera £182 per annum Clark, A. G. Waitara £156 per annum Marchant, H. Eltham £156 per annum LAND AGENT: Candy, H. E. Manaia £260 per annum & 10% commission on land sales made by him.

CASUAL LABOUR: Reid, J. M. £26 per annum for cleaning out offices &c.

CORRESPONDENT: Moved by Mr Hunter, seconded by Mr Coombridge: That Mr E. J. Brammall be appointed to the position of correspondent &c at a salary of £175 per annum. Carried. OPUNAKE: Moved by Mr Corrigan, seconded by Mr Coombridge: That Mr L. E. Jackson be appointed agent at Opunake at a salary of £100 per annum and expenses incurred when on the Society’s business, on the understanding that he will get £300 per annum as soon as the Society starts sale yards and store at Opunake. Carried. R. W. BAKER: The matter of this officer’s appointment was then fully discussed and, after conferring with the Society’s solicitor, Mr H. Halliwell, as to the Society’s legal position, it was decided that it was inadvisable, in the face of what had transpired regarding Mr Baker’s past record to retain him in the Society’s employ. The following resolution was then put and carried: That Mr Baker be notified by Mr Halliwell, that the Board of Directors will not require his services after 28 March. Carried. BRUCE JOLL: Moved by Mr Coombridge and seconded by Mr Death: That Mr Joll be taken on as a cadet on probation and that the matter of his appointment be left with Mr Gillies, General Manager, to arrange. Carried. SECRECY BOND: The matter of adopting a form of Secrecy Bond to be signed by all members of the Society’s staff was discussed and it was resolved that the General Manager be instructed to confer with the Society’s solicitor with reference to drawing up a suitable form.

DUTIES AND POWERS OF EXECUTIVE & FINANCE COMMITTEE: Moved by Mr Hunter seconded by Mr Gray: That Mr Gillies be asked to draft rules defining the duties and powers of the Executive & Finance Committees, and confer with Mr Halliwell regarding the matter, reporting the result at Director’s meeting on Saturday 28th inst. Carried. PAINTING: It was resolved that the painting in connection with the Society’s name &c on the offices in Princes Street and the Saleyards be proceeded with at once, the work to be given to firm quoting lowest price. INTEREST ON DEPOSITS: Moved by Mr Corrigan, seconded by Mr Coombridge: That the General Manager be authorised to take deposits, interest to be at the rate of 5 per cent, subject to reduction in rate and also return of deposit on the Company giving notice. Carried. It was also resolved that a deposit receipt book be printed on the lines suggested by Mr Gillies. BANK ACCOUNT: Mr Coombridge moved and Mr Dickie seconded: That the Society open an account with the Bank of New Zealand, Opunake. Carried. INGLEWOOD BUSINESS – Matthews and Gamlin: The report of the subcommittee appointed to inspect Matthews & Gamlins Saleyards &c was read and confirmed.

YOUNG & CO. STRATFORD AND ELTHAM BUSINESS: A letter was read from Messrs Greaves & Co offering to sell this business to the Society and after discussion it was resolved on the motion of Mr Hunter, seconded by Mr Barkla, that no action be taken in the matter.

AGENCY – LITTLE’S SHEEP DIP: A letter was received from Blackburne South & Co. regarding the Society acting as their agent for this dip in the Hawera and Eltham districts, but after discussion it was decided not to accept the agency. INTEREST ON SHARE CALLS: This matter was fully considered and it was decided where shareholders elected to pay their calls in advance such payments would be treated as deposit money and interest allowed until date of call. AGENCY – TARANAKI FARMERS’ MUTUAL FIRE INSUR. ASSN. The question of the Society taking up the agency for this Association was brought up, but as there was no date to work on it was decided to ask the Chairman of the Association to wait on the Society when the matter could be gone into fully. VOTING POWERS OF GENERAL MANAGER: The matter as to whether the General Manager has any voting power on the Society’s business was fully discussed and, after consultation with Mr Halliwell, it was decided that the General Manager be allowed to take part in all discussions at the Society’s meetings, but that he would have no voting power.

Arrangements to print a further 1,000 copies of the Prospectus were authorised due to considerable demand throughout Taranaki, together with a Company seal, a Registered code word, ‘Organise’, for cable and telegraphic communication, Post Office Box, telephone and other standard requirements. Many other matters were tabled for consideration.

Discussions were also held with one of Taranaki’s well established early traders Newton King. The subject of the meeting between the two establishments is unknown. However, it is reported that both Mr Corrigan and Mr Hunter interviewed Mr King, the outcome being that: A letter be sent to Mr Newton King, regretting the stand he had taken regarding the Chairman (Mr Buckeridge) and hoping that the Society and he would eventually come to terms.

The Bank of New Zealand was chosen as the Society’s bankers. They required, a joint and several guarantee signed by all members of the executive. This was agreed after lengthy discussion. Office premises situated in the South Taranaki Winter Show buildings on Princes Street, Hawera (now Pak N Save), and various saleyards, including two acres on Egmont Road [Street] and four acres on Glover Road, changed ownership. Farmers’ Co-op also purchased premises on Union Street previously owned by Lockhart, coal merchant.

This was not a passive purchase but rather a deliberate and timely tailored exchange that would impact positively on the infant Farmers’ Co-operative. In fact there was hardly a ripple on the water as it softly pushed its feet into the boots of Gillies and Nalder, tied the laces and walked into the stock and station industry with confidence and a spring in its step. As a going concern that included staff and management the operation did not miss a beat. When the day of the purchase arrived, clients and the farming fraternity were urged at large to support this exciting new union of farmers:

BUSINESS NOTICE

GILLIES AND NALDER beg to notify their clients that they have sold their business to The Farmers Co-operative Organisation Society of New Zealand Limited. The firm take this opportunity of warmly thanking their clients who have supported them so well in the past, and they feel the utmost confidence in recommending the clients to support their successors. The business will be transferred on 1st of April 1914 next. The Directors of The Farmers’ Co-operative Organisation Society of New Zealand Limited beg to intimate to their shareholders, to Messrs Gillies and Nalder clients, and to farmers generally, that they have acquired the business of Messrs Gillies and Nalder from 1st April 1914. It is not the intention of the directors to make any radical alterations to the business at the present time, the staff of Messrs Gillies and Nalder will be retained and the business of the Company will be worked on exactly the same lines as its predecessors. They take this opportunity of urging on farmers the advisability of taking up shares in the new Company and of putting as much of their business as they possibly can through the Company. The Directors remind the farmers that this Company is formed to help and assist farmers in every possible way, that it is intended to give rebates on commissions charged to shareholders, and it is therefore of the utmost importance they should not only take out shares but they should do their business as far as possible through the Company. The Directors also wish to specially appeal to farmers to provide additional capital by way of shares to enable the Board to carry out some of the main objects of the Company and extend its business.

The Company now has an excellent start; it rests with the farmers to make it a thorough success. By Order of the Board A. W. Gillies, General Manager G. A. Holder, Secretary

Mayor Arthur W. Gillies, first honorary general manager of Farmers’ Co-op, addressing the townspeople on the steps of the Hawera Water Tower. Laying the foundation stone on 11 December 1912.

COURTESY OF ARTHUR FRYER

Atrump card had now been played that would have considerable impact on the successful establishment of the new company. Arthur William Gillies had stood in the background throughout the initial setting-up period. This well-respected citizen of Hawera had, as we know, considerable knowledge, experience and sympathy with the New Zealand farmers’ co-operative movement. Apart from his position as senior partner in the highly successful auctioneering business Gillies and Nalder, he was involved in many other organisations. He was elected to the office of Mayor in 1912, following the disastrous fire of the Central Hotel and McGruer and Bone’s store in High Street, Hawera and proposed the building of a water tower to provide the town with a source of water should a similar disaster occur again. After two visits to Wellington to see the Postmaster General, Mr R. Heaton Rhodes, and the Member of Parliament for Patea, Mr Pearce, he was able to negotiate the exchange of a Borough reserve in Waihi Road for three town sections on the corner of Albion and High Streets. On 2 October 1912, Mr Gillies announced the building of a water tower and in February 1914 saw the completion of this project. His tenure as Mayor only lasted two years, but accepting the position as honorary general manager of the Farmers’ Co-op may have precipitated his decision not to contest the position again.

Gillies and Nalder furnished a complete portfolio of its accounts and loans and the Farmers’ Co-op Finance Committee had their work cut out for some time assessing clients that were financially sound enough to take over. Many accounts were declined and others held over for further investigation, with limits placed on credit and security obligations. Rates of interest varied from 7% to 9% depending on the type of security arranged. Eighty-five debtors, with amounts varying from 5 shillings to £547.18.8d, were transferred. Some debtors were accepted conditional upon taking up shares in the co-operative and almost immediately 24 applications for finance from £20 to £500 were received to purchase stock and plant through the Society, with dozens more applications rolling in during the months following. With an overdraft limit of £15,000, and the large amount of activity being generated, it was decided to recommend to the board that this be increased to £20,000 and a ‘Bill Discount’ limit from £20,000 to £25,000 and ‘to ask the Bank of New Zealand to release the amount at present held by them in the share account against the directors joint and several guarantee so that the money would be available for the workings of the Society business’.

As the month of March 1914 came to a close, advertisements under the classification of ‘Auctions’ appeared announcing the last scheduled sales of Gillies and Nalder for March 1914: Tuesday 24 – Manaia, Monday 30 – Manaia. On Monday 23 March 1914 the very first Farmers’ Co-operative advertisements appeared showing lists of sales for April:

THE FARMERS’ CO-OPERATIVE ORGANISATION SOCIETY OF NEW ZEALAND LIMITED LIST OF SALES FOR APRIL –

Wednesday 1 Eltham Thursday 2 Hawera Friday 3 Kaponga Tuesday 7 Manaia Monday 13 Okaiawa Wednesday 15 Eltham Thursday 16 Hawera Friday 17 Autumn Horse Fair Saturday 18 Autumn Horse Fair Monday 20 Auroa Tuesday 21 Manaia Monday 27 Okaiawa Wednesday 29 Eltham Thursday 30 Hawera

The above advertisement was followed by: PRELIMINARY NOTICE – AUTUMN HORSE FAIR

At their Horse Bazaar, Princes Street, Hawera.

FRIDAY AND SATURDAY, APRIL 17 and 18 THE FARMERS’ CO-OPERATIVE ORGANISATION SOCIETY OF NEW ZEALAND LIMITED will hold their AUTUMN HORSE FAIR as above.

Entries now being received. Entry forms on application.

South Taranaki’s entire rural community was focused on this momentous occasion to such an extent that it was worth a mention in Mr J. H. Baker’s (father of Livingston Baker and grandfather of Jim Baker) diary:

31 MARCH 1914 – Tuesday. J. Lind brought the ewes down from Hills paddock before breakfast. We drafted 34 fats out & put them on Ureroa & took 128 ewes up to Heathcotes yards in evening joining with Duckworth’s lambs for the sale next Thursday, being the first sale of the New Zealand Farmers’ Co-op Organisation Society. J. Lind left at dinner time for Waverley for the ‘Dog Trials’. Threatening morning – fine day. Got some quinces from F. Bird. 2 APRIL 1914 – Thursday. I left Ohawe after breakfast, went up to the Race Course paddock, F. Bird met me there. We took our sheep to the sale (Farmers Co-op first sale in Hawera). I went up to town – send 20/- P. O. Order to J. Roberston for 200 sheep ear tags, 1913 & 1914. Sold my ewes (128) @ 13/6, sheep down considerably, very large sale of both cattle & sheep, but prices not too good owing to dry weather. Saw Mr Duffill about plan of Jennies house. Went to the Buchanans to tea & on to Ohawe for night. Very threatening in morning but cleared off.

First Farmers’ Co-operative Organisation Society of New Zealand Limited sale advertisement, Saturday 28 March 1914 in the Hawera and Normanby Star:

ELTHAM SALE AT THE YARDS, ELTHAM WEDNESDAY 1 APRIL AT 1 p.m. THE FARMERS’ CO-OPERATIVE ORGANISATION SOCIETY OF NEW ZEALAND LIMITED, will sell by Public Auction as above –40 store cows 10 fat cows 15 fat heifers 30 forward cows 20 18-months empty heifers 20 2½-year steers 100 mixed weaners 8 bulls 160 lambs in lots 50 store ewes 30 fat and forward lambs 40 4-tooth wethers

The Hawera sale advertisement read:

HAWERA SALE AT THE GLOVER ROAD YARDS, HAWERA, Thursday April 2, at 1 pm. THE FARMERS’ CO-OPERATIVE ORGANSATION SOCIETY OF NEW ZEALAND LIMITED, will sell by Public Auction as above –40 good empty 18-months heifers 160 fat and forward cows 50 2½ to 3-year steers 60 2-yr steers (Shorthorn colours) 75 20-month steers (Shorthorn colours) 40 18-month steers (Shorthorn colours) 35 store cows 150 mixed weaners 210 4-year ewes in lamb to B.L. rams 500 rape lambs 1050 mixed lambs 350 cull lambs 300 4 and 6-tooth wethers 12 good pigs 15 good store pigs 8 good porkers On account of Mr J. R. Corrigan –60 good conditioned 3-year bullocks 80 3-year steers On account of Mr J. H. Baker –150 mixed aged ewes Free Luncheon Provided.

Eltham Town can take credit for holding the very first Farmers’ Co-op sale in Taranaki, on Wednesday 1 April 1914. It was however at Hawera on Thursday 2 April, at the saleyards also recently purchased from Gillies and Nalder, situated between Glover Road and Egmont Road, Hawera, that received the honour and distinction of staging the Society’s gala event. A fine luncheon was provided free of charge to celebrate the occasion. This gesture of goodwill with a large number of entries attracted a good attendance. A marquee was erected to accommodate the gathering befitting this auspicious occasion and the beginning of a new era in the stock and station industry that would soon encompass the whole of the Taranaki province and beyond.