Twenty-Six Through the Tangarakau 1960

CHAPTER TWENTY-SIX

Through the Tangarakau

At the 1960 annual general meeting a ‘private deputation’ from the Ohura district comprising four shareholders, Messrs Graham, Larsen, Chaytor and Rosevear, requested to meet directors regarding ‘the policy of the Society in their district’. Eager to show their concern and consideration the directors acceded to the request, arranging a meeting in the early afternoon. A member of the Ohura farmer group exclaimed afterwards that they had never thought that, ‘they would have the privilege of seeing the board of directors when they had left home that morning’.

The deputation expressed their views and answered questions from the directors. After a friendly discussion the deputation was invited to afternoon tea and advised that the Society would form a small committee to consider matters raised and further discussion would take place in September. The subject of the deputation was the possible establishment of a Farmers’ Co-op branch or store in the Ohura valley district, a matter that had been considered back in 1957 when the business of Margan’s Limited, with stores situated at Matiere and Ohura, was offered to the Society. At that time Clem Trotter, the managing director, W. O. Williams, chairman, J. D. Law, Mr Wooffindin and Mr Crichton had visited the district. A report setting out the position had been presented to the board at the next meeting, with leasing rather than purchasing the business, the focus: We had had no word from Mr Margan that he was agreeable to this proposition. On the figures supplied it would seem to indicate that we would require £79,000 to run this business and give the service which we normally supplied to our clients throughout Taranaki. It was felt that it would be necessary to do this to meet competition that would be experienced from other firms already in the district. The figures supplied by Margan showed that the business [was] certainly not a money-spinner, and after taxation had been paid on the profits, we would merely obtain a return of just over 2 per cent on the capital involved. Those members who knew the district agreed that great progress had been made in the years, and that further progress could be expected, but it did not seem at the present time that the expenditure would be warranted. If overseas markets maintained the price level of earlier years, it was felt they would be justified in going into the district ‘for the future potential business’. The directors, although keen to look at any opportunity to expand the Society’s business, realised that there were a number of considerations that had to be taken into account. The Society was receiving a fair amount of business from the district through its Stratford store already and had the goodwill of many settlers from the area. The district was situated to the extreme east of Taranaki, through what was precipitous and rugged terrain, in part still covered in heavy virgin bush. Many unsealed metal roads were often clogged by large slips and debris following heavy rain, creating difficulties in the transportation of goods. The area was considered well serviced by other stock and station companies, with Wrightson’s and Newton King’s at Ohura and Dalgety’s at Matiere. In addition to farming families a relatively diverse

population had settled the area, including coalminers and people involved in the milling industry. Ohura was a busy back-country town with a picture theatre, bank, three garages, a doctor’s surgery, taxi service, numerous grocery shops and a rugby club. At one time it had a population of 3,000, with a vibrant farming community surrounding it and a school roll of 366 at its peak.

Three years had elapsed since Mr Margan’s original proposal for the sale of his business and the directors felt that further consideration of it was now appropriate in the light of the Ohura deputation’s visit. During the following month the committee visited Ohura and inspected a small business owned by R. McL. Boyd Ltd, situated on the main street. The owner, Mr Boyd, wished to sell but was prepared to continue to operate the store on behalf of the Society for a short period should a purchase agreement be reached. It was calculated that there would be considerable additional expenditure by the time the Society enlarged the store, supplied a truck for delivery, housed additional staff and purchased additional stocks – the overall cost to the Society would be in the vicinity of £30,000. From figures available it seemed that the financial return from the district would not justify this amount of capital outlay. However, to keep faith with shareholders it was decided to employ a stock agent to work in the area, and to review the situation after 12 months when the Society would be in a much better position to ascertain the support that might be forthcoming. Difficulties arose in connection with leasing satisfactory accommodation for the proposed stock agent, and authority was given to the general manager to purchase a house or to buy a section and build a house for him. Mr Wooffindin was requested to speak personally to Mr Boyd and write to the original deputation of Ohura shareholders to bring them up to date with the Society’s decision. The general manager visited Ohura and explained the position to Mr Boyd, who said, ‘if the Society purchased his business he was still willing to stay with the Society as long as they were happy to employ him’.

Mr Margan re-offered the stores at Matiere and Ohura and consideration was given to combining the Boyd and Margan businesses. However, analysis of Mr Margan’s businesses showed that an investment up to £100,000 may be required and this cost seemed unjustified. With the prospect of purchasing Mr Boyd’s business in the near future, a section was purchased and plans were drawn up for a new house. About this time Mr Tibby, who had been acting on behalf of the Society on a commission basis in the Tokirima district, advised he proposed to open a branch of his motor business in Ohura and Matiere, with a request that he be granted a sub-agency for the Austin franchise. His company, however, had not yet been registered and this matter was placed to one side for the meantime.

Another year went by, with both Boyd’s and Margan’s businesses still under consideration. A progress payment of £600 had been made to Whittaker and Sons for the construction of the agent’s house, and finally, during September 1961, the chairman Mr Cathie and Mr L. B. Smith visited Ohura and entered into an agreement with Mr Boyd to purchase his store, section and shop at £2,500 and his house at £2,250, with possession on 31 March 1962 and stock and plant to be purchased at valuation at that date. A plan of a proposed additional building at the rear of the present shop site to accommodate produce and bulk hardware was also presented to the directors for consideration. This was a momentous day for the Ohura district and members of the Ohura Town Board indicated that they were ‘pleased to see that the Society was coming into Ohura’.

Celebration was somewhat premature, however, as Mr Margan, now aware of the purchase of Mr Boyd’s business and proposed plans for the Society at Ohura, approached Farmers’ Co-op yet again to reopen negotiations concerning his substantial businesses at Ohura and Matiere. After more discussion and negotiation the following option was eventually presented to the board by the general manager: At Ohura we are able to lease the premises for a period of 10 years with a right of purchase at the end of the lease, or at any date prior to the end of the lease, for a sum of £11,300. The rental to be paid

Ohura Farmers’ Co-op branch office store.

would be 6% of this price, plus rates, insurance and routine maintenance. Any money that we spend on the building would not be recouped from Margan’s Ltd., but would be at the expense of the Society. Margans Ltd., would carry on the business at Matiere for 2 years and we had then agreed to lease the Matiere premises for a period of 10 years at a rental of 6% on an optional purchase price of £5,000. The reason of the fact we were leasing the premises only, the capital expenditure was not a great sum and the purchase price of the stock, plant and chattels would be paid off at the rate of £3,000 a month, first payment to be made in April, 1962.

It was obvious that as a result of the Society purchasing Boyd’s business, Margan’s were offering favourable terms, no doubt having concluded that there was not room for both businesses. The board was concerned as to what effect any closure of the coalmines in Ohura would have on business in the area, but it was resolved, ‘that the documents with respect to Margan’s Ltd be signed and sealed’. So after a rather protracted process, this was the beginning of Farmers’ Co-op’s association with the Ohura and Matiere district. Not long afterwards Mr Boyd’s small shop became excess to requirements and was eventually leased and in later years sold. Most of Margan’s staff were reemployed by the Society with branch managers and other staff added – totalling 13 at Ohura and approximately 8, including part timers, at Maitere.

The board had shown considerable caution in establishing this remote FCOS branch and the large capital outlay and financial commitment was somewhat softened by the leasing arrangement and the more than favourable monthly instalment payment for stock, plant and chattels. They entered the area with caution and carefully tested support for their presence there. This move also provided a stepping stone when the Society considered entering the King Country town of Taumaranui.

During visits made to the Taumaranui area by Mr Wooffindin he was instructed to view the town ‘with an eye on the future’. On one occasion when both Mr Wooffindin and Mr L. B. Smith were there, they obtained, without binding the company, an option on a site with access to the main street owned by Ronald Shaw Properties Ltd. Agreement was reached to purchase the property in the name Nolan’s Buildings Ltd, on 15 October 1963. A further property, with Maori owners, was leased on Miriama Street, Taumarunui and sub-let to a variety of organisations and companies in the following years with the hope that sometime in the future a branch would be established. In February 1966 a meeting of four general managers of stock and station companies was held in Palmerston North to set a boundary line, with the following resolution: That subject to the ratification of the boards of the companies concerned The Farmers’ Co-operative Organisation Society of New Zealand Limited be given the right to develop in the territory north of the province of Taranaki, and south of a straight line drawn from Tairua point on the West Coast of the North Island to Motuopa Point on the eastern shore of Lake Taupo bounded by the main Road

Matiere Farmers’ Co-op branch office store.

South to National Park, and thence to Wade’s Landing on the Wanganui River and that this resolution becomes effective when The Farmers’ Co-operative Organisation Society of New Zealand Limited erects full trading facilities in Taumarunui.

Subsequently a letter was received from the N. Z. Farmers’ Co-op Distributing Co. Ltd confirming the resolution, subject to a provision, ‘that they would have the right to review the boundaries if the Society had not proceeded with the erection of full trading facilities within five years’. The board acceded to the ‘slight amendment’. A presence was maintained in Taumarunui in the coming years, retaining the leasehold and freehold premises without any further commitment to open a branch. During 1970 discussions took place in Wellington with two other co-operatives, the Farmers’ Auctioneering Company (F.A.C.) and Farmers’ Cooperative Distributing Company (F.C.D.C.) on the possibility of a combined operation in Taumaranui but they failed to come to any conclusion. With continued uncertainty as to what extent Farmers’ Co-op should spread its wings to the east of Taranaki, the Taumaranui building was sold 9 October 1980 for $12,000. It would be a while before Taumaranui would come under the spotlight again.

The ‘good times’ for Farmers’ Co-op in the Ohura Valley District were relatively short-lived; within ten years there was a series of setbacks. On 29 September 1969 a fire at the Ohura Store, thought to have started in the wiring of a refrigeration display unit, caused significant smoke damage to most of the stock, and while the damage was repaired, a shop was leased down the road to carry on the grocery business. The drapery department was not functioning during the two months of renovations. The loss was covered by insurance. The population began to decline with the closure of coal mines in 1971 and the gradual cessation of timber milling operations in the district. These two factors had a devastating effect on the viability of many small back-country communities, and in particular the Ohura Valley. Although there was some scepticism concerning the establishment of a 97-bed minimum-security corrections facility opening in the district in 1972, this did help stabilise the declining population to some degree. With all the fluctuations and difficulties, Farmers’ Co-op continued to show faith in the area when its lease was renewed in 1972 for a further 10 years, and despite a looming recession in the farming sector in 1981, it finally purchased both the Matiere and

Ohura stores from Margan’s Ltd. Three years later the final blow came when farm subsidies, which accounted for up to 40 per cent of many farmers’ incomes, were withdrawn in 1984 by the Labour Government.

This dramatic change came at a time when Farmers’ Co-op was beginning to feel the pressures being applied to the rural services, and as land prices fell and withdrawal of farm subsidies took its toll, the viability of both the Matiere and Ohura branches came under the spotlight. Both were fully staffed operations, with approximately 10 to 14 people in each store. The Matiere branch ceased operation on 7 December 1979. Mrs Williams, a former employee of the company, purchased the company house. The store building was to be sold to a former employee and the last branch manager at Ohura, Mrs Cynthia Persson, who intended to operate the store on her own account. However, due to a rapidly declining population in the district she did not take up the option. The Ohura branch building was eventually purchased by a former staff member, Mrs E. Alanna M. Eden, who had worked in Margan’s Matiere store from the day she left school and continued as an employee of Farmers’ Co-op. The Company closed the store early in 1987, and it was reopened on 19 June 1987, and Alanna and her husband David continued to trade as a general store for the next 20 years. For the Co-op this had been a relatively short but valuable sorté into a heartland district that in its heyday showed so much promise. The bustling Ohura days of yore are now but a memory for a few locals who recall the ‘good old days’. Now the two small rural towns of Matiere and Ohura stand almost deserted, adorned with remnants of a bygone age, with the Ohura general store the only retail outlet remaining.