Twenty-Seven An Angel Sitting on its Shoulder 1962

CHAPTER TWENTY-SEVEN

An Angel Sitting on Its Shoulder

Time at the top for Henry F. Wooffindin was brief; he announced his intention to retire after only two years as general manager and some 38 years with the company. There was no natural successor within the existing board with a comprehensive understanding of all facets of the stock and station industry to fill the position. On the ‘if only’ wish-list of the board was a man very much in the mould of C. G. Trotter. Henry Wooffindin was sent on a mission to the Capital to woo that great man’s son Ron Trotter. It was known that Ron had ‘a soft spot’ for Farmers’ Co-op because of his family connections and this strong allegiance might persuade him to come home to Taranaki. Over 40 years later Sir Ron Trotter recalls an invitation by Henry Wooffindin to a luncheon at Waterloo Hotel Wellington in the early 1960s, when he was asked to consider the position of general manager of Farmers’ Co-op at Hawera. I immediately declined and we did not discuss the matter. I was at that time a director of Wright Stephenson and number two to the chairman Sir Clifford Plimmer. I liked the company and my job and preferred the bigger canvas where I was. Ron Trotter’s sights were firmly set on much larger goals and as history will show, within ten years he had climbed the corporate ladder to become chairman and chief executive of Challenge Corporation Ltd, one of New Zealand’s largest and most diversified companies.

Now it was a matter of considering whether to advertise the position or select from the available incumbent staff. It was decided to seek someone from within the ranks. With staff numbers now around 600 and the Society with a full head of steam, the position of general manager would carry considerable responsibility and require exceptional financial and staff-management skills. By 29 October 1962 the executive still had no recommendation for the board. The chairman raised the matter with board members:

EXECUTIVE MEETING:The chairman stated that he considered it necessary to again bring up the position relating to a successor to Mr Wooffindin and if agreement could be reached to make a recommendation to the full board at tomorrow’s meeting. After careful consideration it was resolved to recommend to the board that:

1. The position of successor to Mr Wooffindin be offered to Mr L. B. Smith 2. That the position of Assistant General Manager be offered to Mr A. Smith.

Henry Wooffindin’s retirement was conveyed to the board of directors 30 October 1962. Mr R. M. Cathie informed the board that, ‘the executive had considered at

Lyall B. Smith, General Manager of The Farmers’ Co-operative Organisation Society of New Zealand Limited, 1964–77.

its meeting yesterday the position of a successor to Mr Wooffindin who would retire in March 1964.’

The recommendation was as follows:

That Mr L. B. Smith be recommended as the successor to Mr Wooffindin.

That Mr A. Smith be recommended for the position of Asst. G.M. Such position to take effect when the position of General Manager has been assumed by the new appointee. The chairman stated that the position should now be considered because if Mr L. B. Smith was to be the general manager it would be necessary to go outside for a suitable person to fill his position at New Plymouth and this together with the supervision & training he may require in the running of that particular job would probably take some considerable time. Moved by Mr Law and seconded by Mr McCallum, that Mr L. B. Smith be approached and offered the position of general manager in succession to Mr Wooffindin. Carried. Moved by Mr Law and seconded by Mr G. Williams, that Mr A. Smith be approached and offered the position of Assit. G. M. together with the management of the Hawera Branch, such position to take effect when Mr L. B. Smith assumes control as G. M. Carried.

Both candidates were approached and accepted the appointments. However, prior to the board resolving to appoint the general manager and his deputy, they were required to rescind a 1957 resolution that ‘it was the responsibility of the general manager to appoint his whole staff’.

Where to now! The Farmers’ Co-op in the mid 60s was brimming with confidence and was looking forward to celebrating its 50th birthday. The company had survived where many others had fallen or had been seriously affected by war and depression: it must have felt invincible. It had climbed to the top of the ladder in its field in Taranaki and was now boasting an annual wage bill of almost £400,000 and operating one of the largest and most diverse single-site retail outlets in provincial New Zealand at New Plymouth. Many other projects were also under way and the capital expenditure programme had still a way to go, although the largest units in its current building programme had been finalised. It seemed destined to reach outwards and upwards for higher acclaim with an angel sitting on its shoulder. It was justifiably proud of all its achievements and not slow in coming forward to publicly exalt its outstanding success. Directors, management and staff were all extremely proud to be part of their organisation. New buildings, renovations and technology were now part of Farmers’ Co-op’s material veneer, funded through an extraordinary period of growth. Within one year of the new executive officer’s appointment, however, administrative costs had risen by £74,483, in the main attributable to the opening and stocking of the large New Plymouth departmental store. During this period alterations had also been made to the Stratford and Hawera garages and the company had also opened stores at Ohura, Manaia and Kaupokonui. Wool Store No 2 at Wanganui was in the process of being refurbished and the Stratford branch was undergoing extensive alterations to a food market. At Kaponga the construction cost of a new building was expected to

Arthur Smith joined Farmers’ Co-op in 1931 and spent 42 years in the stock and station industry as stock agent, senior auctioneer, district manager, assistant general manager and Hawera branch manager.

be in the region of £25,000. At the same time shareholders were entering a new age, with personal client cards with account numbers and other details being introduced. Farmers’ Co-op turnover was now in excess of £7,300,000 and continuing to climb. The total shareholders’ funds amounted to £1,414,000 at the end of the financial year of 1961, compared to £218,000 in 1930. The ratio of shareholders’ funds to total assets was 50.39 per cent.

Despite the preoccupation in recent years with building its material wealth, the culture and philosophy remained pretty much the same. The directorate and management saw no reason to change what had been a very successful formula of ‘a cradle to the grave policy’. In the trading environment, metaphorically one could say that almost ‘anything from a pen to an elephant’ could be purchased. If a particular store did not have the merchandise – the goods would be transported from another outlet. And there was of course the firmly entrenched culture of shareholder credit. The catch-phrase used by many farmers in times of hardship was ‘put it on the Farmers’ Co-op account’. The practice was hard to break and the board continued with its long-established policy of paying a moderate dividend, retaining a prudent reserve, and rebating the balance to the trading shareholders.

It was business as usual, and for the most part plain sailing for the Farmers’ Co-op. Chairman Mr R. M. Cathie took leave of absence from the board in February 1964 to go on an extended world

Board of directors, secretary and general manager of The Farmers’ Co-operative Organisation Society of New Zealand Limited. 1964. Back row from left: Messrs T. C. Tarrant, T. H. H. Death, J. D. Law, C. R. Sarten, E. E. Chapman, M. P. Bremer, S. M. James, Sir H. E. Blyde. Front row from left: Messrs T. S. Cocker, L. Marfell, N. C. Blake (secretary), E. W. McCallum (vice chairman) L. B. Smith (general manager) and J. J. Pease. Absent: Mr R. M. Cathie (chairman – overseas) and Mr E. C. Dickie.

trip with his wife. He returned in November. Mr E. W. Eric McCallum chaired the board during the nine months he was away. Chairing his local branch of the then N. Z. Farmers’ Union in 1942, Eric rose to the position of provincial chairman and provided long and distinguished service to the farming sector, including the Dairy Industry Council and the National Pig Council. In 1955 he represented the Federated Farmers at the Rome International Federation of Agricultural Producers conference and also at a conference at Dubrovnik, Yugoslavia. In later years he was elected World President of the IFAP. He visited 32 countries and travelled over 500,000km in his agricultural and public life. Locally he was well respected served on the Hawera Fire Board, the District Roads Council, Te Ngutu-o-te-Manu Domain Board and Taranaki Catchment Commission to name but a few of his roles. He had been on the board since 1946 and was now prominent in New Zealand’s farming scene having recently been appointed president of the Federated Farmers of New Zealand (Inc), and local chairman of the Hawera County Council.

Shareholders’ interest was more often than not reflected in the number attending annual general meetings. If nothing of consequence was happening, numbers were down to a few dozen, but in good and bad times shareholders were eager to show enthusiasm or disappointment with their feet. The weeks leading up to the Society’s 50th anniversary and annual general meeting on 25 August 1964 was a time for celebration and much was said and written about the achievements of this revered cooperative. Hawera’s Memorial Theatre was first selected as the venue for this auspicious occasion, but as ‘smoking was definitely not allowed’, the Hawera Community Centre, on Albion Street, was chosen to accommodate the larger-than-usual gathering, of 300 shareholders. Although consideration was given to publishing a booklet as a memento of the occasion, due to the cost of £965 for 10,000 copies plus the additional cost of printing blocks, it was felt that the benefit to shareholders would be minimal and instead there was a suggestion that they receive a bonus dividend and that a golden seal be attached to letterheads as a more appropriate method of advertising this milestone in the company’s history. A staff ball at Stratford was arranged. The 50th jubilee was without question the time and place to bring Farmers’ Co-op’s heavyweights into the ring to extol the virtues of this extraordinary company. Former managing director Clem Trotter was never too far away from the action and was only too pleased to liberally sprinkle a cocktail of celebratory rhetoric in press reports to the local newspapers:

THE FARMERS’ CO-OP ACHIEVEMENTS HAVE NOT BEEN EXCEEDED IN N.Z. The achievements of The Farmers’ Co-operative Organisation Society of New Zealand Ltd have not been exceeded in any similar organisation in New Zealand, in the opinion of the former managing director, Mr C. G. Trotter. He believes it is a great organisation, strong because its policy is clearly defined and readily understood and because of the strength of the Society’s membership. …

The Society is also a great organisation not only for the members, but for the whole of Taranaki because all the profits made by it, and all the other benefits arising from its existence, remain within the province. Membership of the Society is open to anyone, farmers or otherwise, and 8,101 people have realised the benefits gained.

By any standards the Farmers’ Co-op is a big organisation. It owns property and other assets worth nearly £3,000,000 – all within the Taranaki and Wanganui district. Including the expenditures of the subsidiaries, the company spends several million dollars each year within the district. The Society’s reserves of over three quarters of a million pounds are fully used in providing goods and services for the clients.

Six broadsheet pages in the Hawera Star comprising editorials supported by many large advertisements from suppliers, included a blow-by-blow account of current achievements and past history. Service to customers had been the focus for the first 50 years and the Society set out its aims and objectives for the future with the caption:

NO LIMIT TO SCOPE FOR DEVELOPMENT IN THE NEXT HALF CENTURY

In almost every one of the past 50 years, the service given by The Farmers’ Co-op to its clients has been extended, either by the provision of additional premises in some of the ‘outer’ areas, or by providing new departments and service in existing branches. The trend is still continuing today, and no one in the society can foresee a time when it will have reached its ‘ultimate’ in development.

Staff numbers had risen to 650 during the past four years and all were given full credit for the fine reputation the Company now had with its clientele. Staff training also played an important role in Farmers’ Co-op’s first-class service and efficiency and staff relations were major factors in the continuing success story. Mr L. B. Smith, general manager, claimed that success was achieved by the Society ‘looking forward’, and that ‘every man, woman and child in the province of Taranaki and even beyond had benefited from the progress and activities of The Farmers’ Co-operative Organisation Society of New Zealand Ltd’. He continued: It is evident that a sound foundation has been laid. The next fifty years will, with the continued support of all in doing what others have done before us, produce an ever-expanding co-operative, so long as we hold fast to those co-operative principles which are so worthy of your support. Decimal currency was now one of the most talked about national topics, and the general manager took the opportunity to express his opinion on changing New Zealand’s monetary system, saying: ‘I have yet to learn of a compelling reason why we should change. … If there is a good reason, can we afford to squander £5,000,000 overseas exchange to do so? In my view the answer is no.’

He cited the example of an auctioneer at a stock sale attempting to get a bid ‘in decimal values’ and receiving a bid in pounds, shillings and pence. ‘What utter confusion on both sides’, he said. However, the general manager’s denouncements were to no avail as the currency conversion was soon to become a reality and directors were asked to consider the question of ‘converting the capital of the Company from 900,000 shares of £1 each to 1,800.00 shares of 10s.0d. each. ‘The reason behind this suggestion was that the Company’s shares would then be in the unit, viz. $1.00 once the new currency came into effect.’

The concerns of many proved unfounded as ‘D.C. Day’ came and went on 19 July 1967 with few significant difficulties occurring during the conversion. Society staff and directors were praised for the manner in which their part of the exercise had been completed.

Hawera Autumn cattle fair, 13 April 1967. From left: Messrs H. R. Penny, T. J. Hurley, J. A. Robertson, I. Honeyfield, L. J. Newell, C. G. Trotter, H. Slater, A. L. Bremer, A. Looney, W. H. Barkla, A. J. Corrigan, H. P. Wills, E. L. Death, J. J. Oughton.

There were expectations of even better things to come in this balmy climate of confidence and success. Nothing threatened Taranaki’s largest provincial trading player. Even the Company’s banker, Australia & New Zealand Bank Ltd, wrote to congratulate Farmers’ Co-op ‘on achieving its first half century in business’, expressing its gratification in being associated with the Society for 45 years. In view of the sentiment expressed by the Bank, the Farmers’ Co-op board took the opportunity to seek consideration to increase Hawera’s overdraft to £600,000, ‘with a swing of £100,000 to cover peak requirements’. The request was approved. With New Plymouth’s departmental store now well and truly up and running the focus turned to refurbishing a number of other premises and yards around the province. Stratford’s saleyards at Esk Road were receiving some attention, with costs divided amongst the users, and the Waitara premises were being given long-needed attention with installation of 24-gauge galvanised iron. The entire building was also repainted. The new Kaponga branch store foundations had been laid and progress was well under way. An agreement with Mr Williams, owner of existing Williams Foodmarket Ltd at Kaponga, had been drawn up and agreement reached in connection with the Society taking over the business and his continued employment with Farmers’ Co-op. It was imperative, for continuity of supply that the closure and opening of the stores was simultaneous. The opening of a grocery department at Farmers’ Co-op’s Kaponga store on 30 November 1964 heralded a new era for the district, with Frank Dudley, who previously managed the store until 1962, returning to the town with his family to again fill the role of branch manager.. A small official function was attended by a number of local dignitaries, including the chairmen of the Eltham County Council, Kaponga Town Board, Mangatoki Cooperative Dairy Company, Kaponga Co-operative Dairy Company and other local identities, with Mr R. M. Cathie opening the building. The drapery section at the Kaupokonui store was closed ‘as these lines were not a payable proposition’. The Department of Lands and Survey had over many years practised selling wool from its properties in Taranaki, one year through the Society, and the next through Newton King Ltd. Commencing from the 1964 Winter sale the practice was changed and the Society would receive all the wool from the Central Taranaki properties every year while Newton King Limited would receive the wool from all North Taranaki properties. On the basis of the present wool clip this meant the Society would receive 625 bales and Newton King 400 bales.

Congestion at the Hawera garage necessitated certain alterations to comply with requirements under the terms of the Austin franchise agreement, and work in connection with renovations at the Hawera district building which had been put on hold would now proceed in the horticulture department and district office section. Mr Boon from Graeme Laurenson & Associates had also begun investigations into the proposed development at the Stratford branch. Although it is generally unknown there were two sets of saleyards at Eltham, those currently in use adjacent to the Eltham (Railway) Hotel, Bridge Street, and the Society’s original saleyards – unused for many years – that were acquired with the purchase of Gillies and Nalder in 1914, a few hundred yards west towards the meat works. With a capital value of £385, annual rates of £28.10.0d, and no prospect of their use by the Society, an offer by J. C. Hutton (N.Z.) Ltd, meat processors, to purchase the yards was accepted. Alterations to the Opunake premises were also under consideration. The total cost, in the vicinity of £7,000 would provide a welcome additional storage area of 1,800 sq. ft. A new building at Kaupokonui had also been completed. With outlets and stores now situated in almost every possible location throughout the province, the refurbishment, renovation and expansion programme continually engaged the board. Shareholders were also putting up a strong case for new or renovated premises at Opunake. However, the drain on the company’s resources prompted general manager Mr L. B. Smith to publicly proclaim that, It would be easy to put all the Society’s money into bricks and mortar and have insufficient trading money. To erect a £40,000 building it would be necessary to have £80,000 before taxation. … We can’t do all the things we would like to do. Application for a building permit for alterations to the Opunake building was made early in February 1965 to the Egmont County Council. The work was to be carried out by the Society’s own staff at a

cost in the vicinity of £7,000. Self-service was now widely accepted and introduced in the grocery departments of the Waitara, Inglewood and Waverley stores, which would result in a reduction of staff at Waverley.

In 1965 a record rebate of £140,000, bringing the total rebates paid to trading shareholders of the Society to £1,839,271, made good reading in press reports of the annual general meeting at the Memorial Hall, in Stratford, although there was guarded optimism about the future, with signs of weakness showing up in the economy. The Economic and Monetary Council had advised government that between 1949 and 1960 New Zealand’s productivity growth had been one of the lowest amongst the world’s highest earning economies and was facing a growing balance of payments problem. At the same time the economy faced a major decline in agricultural prices. This was brought home to shareholders at the annual general meeting of the same year in an address by Dairy Board member Mr H. M. Caselberg, a former manager of the Hawera branch from 1930 to 1936 and now a highly respected and influential public servant in Wellington: For those of us who battled through the short sharp slump of 1921 and through the slumps of the 1930s, this is no cause for alarm or despondency. To those of you who may have thought that our way of life in New Zealand and our standard of living would never change – except for the better – a recession, after 15 years of reasonably good times, may come as a shock. Mr Caselberg said that considerable rethinking had been done and still more had to be done: ‘We can’t afford to cling to what may be outmoded methods or ideas. Things change so very rapidly today that we must be constantly alert and ready to rethink our problems. All of this we find difficult to do.’

He spoke of protectionist policies introduced by many of New Zealand’s competitors and spoke of the folly of following in their footsteps. As we now know, access to key world markets for agricultural commodities became increasingly difficult in the years that followed.

Prize fighter James J. Corbett’s line ‘The bigger they are, the harder they fall’, succinctly describes the unjustified yet ignominious end to Mr E. W. Eric McCallum’s distinguished 21 years of service to the Farmers’ Co-op board as director, member of the executive and deputy chairman for nine years, when he lost his seat in a seven-way ballot for five vacancies on the board at the 1967 annual general meeting at Mangorei Memorial Hall, New Plymouth. Mr McCallum claimed that a group of shareholders had waged an organised and successful campaign against him over a recent transaction Mr McCallum had been involved in. Responding to the ballot outcome Mr McCallum said: ‘I don’t propose to go into details, but what I did I would back 100 per cent. It was one incident in a long association with the society, and my conscience is clear.’

Announcing the result of the ballot, Mr Cathie expressed his appreciation of Mr McCallum and asked that a vote of thanks and appreciation be recorded. Like all prize fighters this talented man’s contribution to the New Zealand farming community continued in a number of high-profile positions and his work was fully recognised when he was awarded the Commander of the Most Excellent Order of the British Empire in 1967. He gained the rank of army colonel in the US state of Mississippi, and was also an honorary member of the National Farmers’ Union of America.

Although the New Plymouth branch turnover exceeded £1,000,000 for the first time, the overall company turnover was declining and increased costs were the subject of considerable discussion during the second half of 1967. It was predicted that the situation would continue to deteriorate in the months ahead. However, by November the decrease in turnover had been arrested the increase in expenses was also lower than expected. It was stated that ‘staff were doing an excellent job for the Society’, and that a Christmas bonus of one week’s pay would be made on the same basis as the previous year.

In spite of the slogan ‘It pays to trade with your own Society’, the 1968 balance sheet reflected

lower returns and increased expenses with a schedule of rebate payments to shareholders over the last five years:

Rebate paid Cash Dividend Total Distribution 1964 240,000 71,958 311,958 1965 280,000 71,958 351,958 1966 290,000 71,958 361,958 1967 296,000 74,250 370,250 1968 245,000 74,250 319,250

$1,351,000 $364,374 $1,715,374

In March 1969 The Farmers’ Co-operative Wholesale Federation (N.Z.) Limited published a directory for members, including ten co-operative enterprises in New Zealand: Farmers’ Co-op. Auctioneering Co. Ltd, Farmers’ Co-op. Organisation Soc. of N.Z. Ltd, Hawke’s Bay Farmers’ Coop. Assn Ltd, Common Shelton & Co. Ltd, N.Z. Farmers’ Co-op. Distributing Co. Ltd, N.Z. Farmers’ Co-op. Assn of Canty. Ltd, Canterbury Farmers’ Co-op. Assn Ltd, North Otago Farmers’ Co-op. Assn. Ltd, Otago Farmers’ Co-op. Assn. of N.Z. Ltd, Southland Farmers’ Co-op. Assn. Ltd.

It conveniently recorded the managing staff members and contact phone numbers working at each of them. The Farmers’ Co-op staff at the time were:

HEAD OFFICE

Hawera, Regent Street Telegraphic Address: ‘ORGANISE’ MANAGEMENT L. B. Smith General Manager N. C. Blake Secretary A. Smith, District Manager, Hawera W. H. Ellingham, Assistant District Manager T. F. Molesworth, District Manager,

Stratford J. S. Crichton, District Manager,

New Plymouth

Manaia branch.

STOCK DEPARTMENT

H. (Harold) Slater, Livestock Manager, Hawera

HAWERA: K.P. (Keith) Newland (Manager) B. (Bernard) Mann D. (Danny) Nees (Fat Stock) T. C. (Lofty) Henderson D. M. (Don) Stockwell G. J. (Grant) Dalbeth D. G. (David) Cambie R. L. (Lank) Lewes (Stock and Wool Clerk) NEW PLYMOUTH: W. G. (Bill) Marshall (Manager) A. C. (Alan) Paris P. D. (Peter) Dawrant C. (Colin) Chadwick (Stock and Wool Clerk) M. (Murray) Zillwood

Patea branch.

Waverley branch.

INGLEWOOD: I. N. (Ian) Barkley B. N. (Barry) Bishop (Fat Stock ) J. (Jack) Pruden WAITARA: W. (Bill) Humphries K. (Ken) Hunter (Urenui) PUNGAREHU: L. J. (Laurie) Larmer (Rahotu) PATEA: C. A. (Clem) Fowler WAVERLEY: K. (Kevin) Gray C. (Charlie) Downs MANAIA: R. W. D. (Richard) Veitch STRATFORD: G. D. (Geoff) Rich (Manager) D. J. (Denny) Ryan L. T. (Lyall) Hitchcock T. R. (Trevor) Carter K. G. (Ken) Maul P. A. (Peter) Western (Fat Stock) I. J. (Ian) Best (Stud Stock) G. (Geo.) Avery (Stock and Wool Clerk)

Kaponga branch. OHURA: A. K. M. (Alan) Elliot OPUNAKE: A. M. (Max) Ryan ELTHAM: T. G. (Trevor) Terry KAPONGA: J. W. (Jim) Williamson OKATO: P. J. (Peter) Dawrant

RETAIL SALES

I. B. Spilman, Merchandise Manager A. M. Moss, Produce and Fertiliser Manager HAWERA: C. B. Chisholm (Branch Manager) H. J. (Pat) Slater (Merchandise Agent) NEW PLYMOUTH: R. G. Lyndon (Branch Manager) J. V. Dawson (Farm Supplies) H. V. White (Merchandise Agent) H. C. How (Merchandise Agent)

Opunake branch.

Eltham branch.

Kaupokonui branch.

WAITARA: A. Watt (Branch Manager) R. G. Holden (Merchandise Agent) D. Clark (Merchandise Agent) INGLEWOOD: H. C. Wood (Branch Manager) K. G.Wackrow (Merchandise Agent) STRATFORD: E. W. Clifford (Branch Manager) G. Cochrane (Produce Manager) C. Wilmshurst (Merchandise Agent) J. N. Harris (Branch Manager) PUNGAREHU: R. Whytcross (Branch Manager) INAHA: J. A. Gamlin (Branch Manager)

WEEDICIDES FIELD OFFICER

A. J. Tuckett, New Plymouth

DRAPERY DEPARTMENTS

Refer the Branch Manager

MACHINERY DEPARTMENT

HAWERA: H. C. Burke, Manager STRATFORD: A. T. Carryer

Stratford branch. NEW PLYMOUTH: W. G. Brown

MOTOR DIVISION

HAWERA: K. W. Catchpole, Manager W. W. Petrie, Chief Service Manager S. Uncles, Garage Manager STRATFORD: I. MacMillan, Garage Manager NEW PLYMOUTH: B. J. H. Tarr, Garage Manager HAWERA: LAND DEPARTMENT L. T. (Lynn) Attrill F. R. (Russell) Bassett NEW PLYMOUTH: W. S. (Bill) Fastier J. (Jack) Dawrant STRATFORD: W. B. (Bruce) Dick

Inglewood branch.

FARM SUPERVISION DEPARTMENT

HAWERA: M. J. Findlater F. R. Bassett

WOOL DEPARTMENT

WANGANUI: R. H. Nelson (Manager) B. V. Slater (Assistant Manager) HAWERA: R. L. Lewes

STRATFORD: G. Avery NEW PLYMOUTH: W. G. Marshall

Pungarehu branch.

TARANAKI REPRESENTATIVE STUD STOCK DEPT.

I. J. Best, Stratford

TARANAKI FARMERS(WHOLESALE) LTD.

NEW PLYMOUTH: I. B. Spilman, Manager A. Longbottom, Chief Purchasing Officer A. M. Moss, Produce and Fertiliser Manager Telegraphic Address: ‘TARAFARM’

Amalgamation of South Taranaki’s dairy industry had been taking place for many years. The advent of the milk tanker revolutionised the collection of milk from the farmer’s gate to the factory and provided the necessary encouragement for more small dairy companies to take advantage of consolidation, efficiencies and rationalisation. When agreement to amalgamate was reached in March 1963 between Joll and Kaupokonui Dairy Companies involving 16 factories, a new company, Kiwi Co-operative Dairies Ltd, was created that within a few years would impact on the lives of all who lived and worked in rural areas and significantly affect supporting industries that served it. By 1969 many more companies had joined Kiwi Co-op Dairies and a decision was made to centralise produce manufacture. A site at Whareroa Road just south of Hawera was selected to build what eventually became the largest multi-product dairy manufacturing complex in the world. The single-site dairy company would soon process milk from throughout the province, with some drastic social consequences and a change in the day-to-day dynamics of many small communities around the mountain. Daily contact between farmers at the factory ceased and many small dairy factories and privately owned stores closed their doors.

In 1962 Farmers’ Co-op had secured the lease of the Kaupokonui and Manaia stores, now owned by Kiwi Co-operative Dairies Ltd, and with their sights set on building a new store at Manaia in 1975, they sought to extend the lease that expired in 1972, from 1969 until 1975. The Kaupokonui store would eventually close down with the introduction of milk tankers. Further negotiations between the two companies resulted in a lease for a further six years, from 1 July 1969, with a compulsory purchasing clause at $22,500. Delaying construction at Manaia would provide breathing space for other projects currently being considered at Patea, and at Stratford where the Plaza Theatre had been purchased from Kerridge Odeon to enlarge the present store. Possession of the theatre was planned for 1 October 1969, with finality on the extent of alteration delayed due to the requirements of a decision by the directors on ‘whether or not a first floor should be erected in the building’. The cost of $58,000 was considered to be on the high side, although a new proposal by the architects to use pre-cast concrete flooring slabs and prestressed concrete beams would provide a first floor area of 5,400 square feet. The lowest tender for the first-floor was awarded to H. F. Snowden Construction Ltd at a cost of $21,456. Unfortunately during excavating the foundations the contractors ‘had run into the stream’ that flowed through the section. The Council, however, accepted liability for piping the river. The conversion of the Stratford Plaza Theatre continued, with much of the work being undertaken by the Society’s own maintenance staff. The ground-floor retail section opened on 27 January 1971. For the purpose of this history it is important that it is recorded that the Society acquired a shareholding in Associated Motor Industries Ltd and Austin Distributors’ Federation (N.Z.) Ltd in 1970.

Fluctuating financial returns of the late 1960s early 1970s often only received a cursory reference in minutes of the time: ‘FINANCIAL RETURNS: Returns for the 7 months ending 31 October [1967], were perused.’

Unexpectedly in September 1971 the general manager reported to the board that an application by the Society to increase the overdraft limit of $500,000 had been declined by the company’s bankers, the A. & N.Z. Banking Group, and furthermore it had been reduced to $400,000. At the present time the Society had ‘a surge allowance’ of $400,000 over and above a fixed overdraft limit of $1,200,000. However, the $1,200,000 now included the surge. The matter was referred to the bank’s head office in Wellington for consideration but the following month the general manager reported that the bank was ‘not prepared to authorise a greater overdraft than $1.6 million which was merely the drawing rights the Society had had since 1964’. The bank was not prepared ‘under any circumstances’ to increase this figure and expected the company to live within its own financial resources as the bank would not finance inflation. It became clear that bank accommodation to the primary industry was being charged a lower rate of interest than commercial enterprises in the city and better returns could be obtained from lending in that class of industry. The bankers considered that the Society should raise additional funds from shareholders or by way of mortgage. It became apparent following a number of inquiries, that no mortgage finance was available for commercial enterprises at this time.

Financial returns for the six months ending September 1971 were prepared early to enable discussions to be entered into with branch managers responsible for stocks held in their particular branch, with a view to reducing stocks. It was recognised that this action would further exacerbate the present liquidity problems, with less stock to turn over. Meetings were held with district and credit managers with a view to reducing the number of debtors on the books. In common with most stock and station companies at the time, they had been financing seasonal requirements and this could no longer be tolerated. The Society was now committed to discontinuing financing clients beyond normal trading limits. Discussions between A. & N.Z. Banking Group and the Society continued without any change to the bank’s stance. Consequently confidential discussions were entered into with the Bank of New Zealand that continued for many months, but although they indicated an interest in taking over the FCOS account, they appeared reluctant to do so at the time. With mortgage money hard to come by, the last resort was to approach the Trustees of F.C.O.S. Superannuation Limited which had already advanced money by way of a mortgage on the New Plymouth garage building owned by the Society and the warehouse building owned by the West Coast Mortgage & Deposit Company Limited. On present government valuations further advances were justified on these two buildings and following an application to the superannuation fund trustees a further $10,000 mortgage was advanced on the warehouse building in Gill Street and $70,000 on the New Plymouth garage.

Taranaki Farmers’ (Wholesale) Ltd store at New Plymouth suffered severe fire damage on Sunday 21 November 1971 and the contents were destroyed. Although the roof suffered major damage, the second floor survived and was repairable. The insurance cover was sufficient to reinstate the building and with assistance freely given by competitors, the Farmers Co-op was able to continue to supply retail shops with goods even though the bulk supplies held in the building were destroyed. The wholesale company was once again in full operation in 1972, although it was considerable time before the former stock level was achieved. It came at a time of a change in the north Taranaki management, with Tom Molesworth appointed district manager on the retirement of Mr J. S. Crichton and the appointment of Mr G. M. Hobson to the position of district manager for Central Taranaki. This coincided with the relocation of the Stratford district office.

Management of the whole of South Taranaki was now in the hands of Bill Ellingham following the retirement of Arthur Smith on 31 January 1973 after 42 years in the stock and station industry,

33 of which were with Farmers’ Co-op. Arthur had joined the company in 1931 as representative for the Waverley district and the following year was promoted as the company buyer for dairy products. He later moved into the stock department as an agent and auctioneer. In 1937 he moved to the Waikato to work for Newton King Ltd, and then served with the New Zealand Army in the Pacific during the Second World War. On his return he rejoined Farmers’ Co-op as senior auctioneer based in Hawera and was later appointed to the position of Hawera manager. He was described as ‘a modest man’ who built a large clientele over the years ‘and had many friends’. He also held the position of assistant general manager to Mr L. B. Smith in 1964. The esteem in which he was held was demonstrated when a special function was organised by representatives of the opposition, namely Newton King and Hodder and Tolley Limited, in honour of his service to the farmers of South Taranaki.

During 1973/74 the new premises at Patea were also completed and opened. Although higher returns for primary products had benefited the Society during the year, there was a hint of dissatisfaction within the ranks when, at the annual general meeting on Friday 17 August 1973, at Westown Motor Hotel, New Plymouth, the chairman Mr R. M. Cathie and his deputy Mr T. S. Cocker were defeated in an election for five directors. Both were available for re-election with eight nominations for the five positions on the board. Mr A. Smith, a former employee and district manager of Farmers’ Co-op, and Mr B. D. Veitch, accountant, both of Hawera, were elected. The other successful candidates were Messrs M. R. Sarten, R. B. Cleland, Stratford and A. W. Tibby, Tokirima. The sudden fall from grace of the duo, both with outstanding long service to the Society, was the beginning of a move to break the cycle of directorates being passed between a few farming families. With an eye on making a change, Messrs B. D. Veitch, A. Smith and B. W. Clarke combined their efforts and split the costs of circularising all Farmers’ Co-op shareholders in support of their own nominations at the 1973 annual general meeting. It was a successful strategy, with Messrs Smith and Veitch being elected to the board. Mr T. C. Tarrant from Waverley who had joined the board in 1959 became the new chairman, with Mr D. E. Rider, Kaponga, his deputy.

Mr T. C. Tarrant, chairman of directors of The Farmers’ Co-operative Organisation Society of New Zealand Limited, 1973–81.