Too Old to Be Secrets Now

TOO OLD TO BE secrets NOW

A HISTORY OF ALLIED FARMERS LIMITED 1889–2009

RUSSELL A. J. STANDING

© Allied Farmers Limited

© Russell A. J. Standing

Published in 2009 by Dunmore Publishing Limited P.O. Box 25080, Wellington books@dunmore.co.nz www.dunmore.co.nz

for Allied Farmers Limited P.O. Box 252, Wellington

National Library of New Zealand Cataloguing-in-Publication Data

Standing, Russell A. J. (Russell Archie John), 1940Too old to be secrets now : a history of Allied Farmers Limited, 1889-2009 / Russell A.J. Standing. Includes bibliographical references and index. ISBN 978-1-877399-48-0

1. Allied Farmers Limited—History. I. Title. 334.6830993—dc 22

Layout by Bartlett Projects

Cover design by Natalie Gray

Printed by Everbest Print, China

All rights reserved. No part of this manuscript may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system without permission from Allied Farmers Limited.

Contents

Preface 7

Foreword 9

Introduction 11

One Sweet Picture of Perfection 1840 13

Two Barefoot Boy Behind the Plough 1881 21

Three He Stands Alone, His Voice Unheard 1889 26

Four No Show Without Punch 1904 38

Five It’s Dead Now – Let it Rest 1905 42

Six All Your Geese Are Swans 1905 53

Seven Pivotal, Profound and Everlasting 1911 56

Eight Impossible Dream 1914 68

Nine A Charging Stallion 1914 74

Ten Third Time Lucky – Trump Card 1914 76

Eleven Over Our Own Floors 1914 83

Twelve Any Fool Could Start a Thing 1914 89

Thirteen Bag of Air 1915 101

Fourteen Prettily Illuminated 1915 112

Fifteen Rumour is a Lying Jade 1916 120

Sixteen Over the Whanga Saddle 1917 124

Seventeen Star of Peace and True Love 1918 131

Eighteen As Solid as a Rock 1927 149

Nineteen New Face and New Place 1930 152

Twenty Cut and Thrust 1933 163

Twenty-One For God! for King! and for Country! 1939 176

Twenty-Two Cloaked in Secrecy 1944 188

Twenty-three Gaiters, Gumboots and Glamour 1944 194

Twenty-Four Gospel of Co-operation 1949 212

Twenty-Five Every Man’s Man 1955 233

Twenty-Six Through the Tangarakau 1960 238

OLD TO BE SECRETS NOW

Twenty-Seven An Angel Sitting on its Shoulder 1962 243

Twenty-Eight Wool, Man and Muscle 1968 256

Twenty-Nine Personal Touch 1973 261 Thirty Unparalleled Loyalty 1977 266

Thirty-One Heroic Efforts 1979 272 Thirty-Two Exercise in Survival 1981 280

Thirty-Three Damned if They Do and Damned if They Don’t 1982 286

Thirty-Four Insatiable Spirit for Growth 1984 292

Thirty-Five Talking About Survival 1985 299 Thirty-Six Better to Live With Them than Fight Them 1986 302

Thirty-Seven Irrevocable Commitment 1986 307

Thirty-Eight Unashamed Love Affair 1986 311

Thirty-Nine The Last Supper 1987 314 Forty Divine Intervention 1987 325

Forty-One A Pack of Wolves 1987 337

Forty-Two Words of Wisdom 1987 343 Forty-Three Toss for the Lot 1987 349 Forty-Four Rising From the Ashes 1988 353 Forty-Five A Spring in its Step 1989 358 Forty-Six White Ants and Mushrooms 1993 367 Forty-Seven The Age of Aquarius 1997 376 Forty-Eight Incredible Journey 2000 381

Forty-Nine No Shrinking Violet 2005 387 Fifty Fantham’s Legacy 2008 397

Provisional Directors, Chairmen of Directors, Directors, General Managers/Chief Executive Officers/ Executive Scheme Manager/Executive Chairman, Scheme Managers, Secretaries, Auditors, Solicitors, Canvassers and Initial Shareholders 403

Sources and Acknowledgements 409

Index of Individuals and Organisations 413

Preface

This work was commissioned to document the history of The Farmers’ Co-operative Organisation Society of New Zealand Limited, today known as Allied Farmers Limited, inaugurated in 1914. During early research it became apparent that the business had actually been established some 25 years earlier when in 1889 the Egmont District Agricultural & Pastoral Association used their collective influence, under the guidance of a group of South Taranaki’s most distinguished gentlemen, to established a stock and station company, The Egmont Farmers’ Union Limited, under the management of the eminent Arthur A. Fantham of Hawera. Following his death in 1904 the business was transferred to his son Arthur A. Fantham II, who, following one year’s trading as Fantham Bros & Co., joined Arthur William Gillies and Edward Ernest Nalder, to trade under the name of Gillies, Fantham and Nalder. The partnership was dissolved in 1906, but continued operating as Gillies and Nalder who in 1914 sold the entire operation as a going concern, including buildings, saleyards and incumbent staff to The Farmers’ Co-operative Organisation Society of New Zealand Limited. In 1997 the company revised its constitution and changed the name to comply with the new Companies Act to Allied Farmers Limited.

The vision and energy of these early settlers created an enterprise that would eventually provide the province with one of New Zealand’s most enduring rural trading organisations, with agents and branches situated in almost every town and village in Taranaki. Fortunately a brief excursion into the history of South Taranaki in connection with an earlier work provided a hint of what was in front of me when I set out on the journey to research and write: TOO OLD TO BE SECRETS

NOW – A History of Allied Farmers Limited. The title was inspired by the late Alan Caselberg, son of Herbert M. Caselberg, who when providing a series of ‘sensitive’ documents owned by his father said, they were ‘ too old to be secrets now’, which encapsulates many of the revelations in this documentary.

This is a story about a determined, dedicated group of entrepreneurial pioneers who chose to settle this fertile and exceptionally bountiful district of South Taranaki, clearing the land and farming what is now some of the most productive dairy pasture anywhere in the world. The resulting commercial infrastructure fashioned to support these early farmers, eventually became a diversified, dynamic and world-renowned agricultural industry. Taranaki’s relative isolation and commitment to self-determination inspired a philosophy and developed a culture that overcame many hurdles in the early years, including opposition from local Maori, difficult terrain and coastal topography, depressions, slumps, the introduction of mechanisation, two world wars, and the ever-changing volatile fragile world economy together with a mushrooming technological age that now influences the future almost before it arrives. This company is one of few existing rural servicing facilities in New Zealand still strongly linked to the place and people where it originated and continues to embrace a loyalty and pride amongst shareholders and current and former staff that is strong and enduring.

OLD TO BE SECRETS NOW

Researching the people and happenings associated with the company has provided me with a profusion of exhilarating and at times poignant adventures and a once-in-a-lifetime opportunity to document the achievements of many of South Taranaki’s founding fathers who, with loyal staff and shareholders, passionately guarded this 120-year-old book of business through three commercially diverse centuries, continuing to uphold the original objectives and principles of co-operation in their quest to service the rural community of Taranaki, neighbouring provinces and more recently other areas of New Zealand.

Reflecting on the many thousands of people associated with the companies throughout the years, one lingering regret has been my inability to adequately document and praise many who gave their heart and soul, and some their entire working lives, to this most remarkable organisation. The directorate and management who commissioned this historical chronicle at a time when the speed of change often shrouds the achievements of the past must be congratulated.

Russell A. J. (Russ) Standing 27 July 2009

Note:

1. Quotations throughout the text are often speech recorded in minutes of the Society and therefore are sometimes not the speaker’s own words.

2. Taranaki’s mountain is referred to as Taranaki or Mount Egmont depending on the preferred name at the particular time in history.

Foreword

This history was commissioned by Allied Farmers Limited to celebrate and document the achievements of the company and its predecessors and in particular The Farmers’ Co-operative Organisation Society of New Zealand Limited, who have serviced the farming communities of Taranaki and neighbouring provinces for over a century.

As Mayor of the South Taranaki District, and a director, shareholder and client of Allied Farmers, I am delighted to see this project come to fruition. I am very proud that a group of South Taranaki farmers and business people in the late 1800s had the vision, courage and tenacity to start this very successful stock and station business which has now become one of only two of its kind listed on the New Zealand Stock Exchange and Taranaki’s only NZX listed company.

Too Old to be Secrets Now: A History of Allied Farmers Limited, has been researched and written by Russell A. J. (Russ) Standing. His wide knowledge and passion for the mutual/ co-operative movement and farming industry inspired the creation of this easy-to-read documentary. This story is more than an account of a prominent Taranaki company, as it also embraces the history, development and progress of the wider Taranaki community.

Russ gives a lively account of the company from the earliest days to the present, its life and culture, its proceedings against the backdrop of the times, the personalities, branch offices, directors, staff and clients. This is a story rich in pride and achievement, with episodes of both fortune and failure.

I thank Russ for his attention to detail and the fact that he spent countless hours interviewing key people in the organisation and wider community. I thank the many individuals who so willingly shared their own experiences and family documents and stories with Russ.

This book will be of interest not only to those who are or have been associated with Allied Farmers but to all who are interested in New Zealand’s rural history and the place of farming and the stock and station industry in our society.

Ross Dunlop JP Mayor, South Taranaki District

Introduction

Regional rural co-operatives emerged in many provinces in the late nineteenth and early twentieth centuries. They played an important role in supporting the early farming endeavours and the development of rural communities. They were formed with a sense of shared purpose as ruggedly individual farmers sought to ensure honest markets for their farming inputs and the produce of their farms.

One by one the regional rural co-operatives disappeared. Most were absorbed into the large mercantile firms. Only one adapted, changed its corporate form, and survived independently. This is the story of the business that started with one Arthur A. Fantham, became The Farmers’ Co-operative Organisation Society of New Zealand Limited and finally Allied Farmers Limited. While the business has grown and changed, it has kept its heart in its home province, Taranaki.

The reason that this organisation has survived and flourished is a story of evolution and adaptation. It is a story of bravery and commitment in tough times. But most of all it is a story of people, people with a culture of service, of going the extra mile and of commitment to the farmers and province. In return there has been a loyalty from the province to the organisation.

The Farmers Co-operative earned enormous respect for the way that it stood by farmers in the Great Depression of the 1930s. It was a different group of farmers that stood by the company in the company’s own difficult times in 1987. They not only pulled Farmers’ Co-op back from the brink of the commercial abyss, but they laid a platform for wider expansion in a new future.

Allied Farmers stands today as a listed public company, but with a large ownership stake held by small Taranaki shareholders. This reflects its heritage, its relationship with its heartland and the foundations for its future.

This book records the story of what has made this company truly special and the people who have made contributions along the way to build that special character that is Allied Farmers Limited.

John J. Loughlin Chairman of Directors ALLIED FARMERS LIMITED

May 2009

Sweet Picture of Perfection

Co-operatives in agriculture and other industrial enterprises can be traced to the earliest known records of human history. Babylonians practised co-operative farming and ancient Chinese people developed collective associations similar to those in use today. However, in the Western world the co-operative movement as we know it only began approximately 200 years ago. One of the best-known examples is well documented and records how a group of weavers and textile workers employed in cotton mills in the town of Rochdale, England in the 1840s established the first successful co-operative business. Working for very low wages and unable to pay high prices for food and household goods, they opened their own shop, buying stock in large volumes and selling at cost price. Only quality goods were sold, the first shop selling flour, oatmeal, sugar and butter. It was a huge success. The democratic approach and co-operative ownership structure kept control in the weavers and textile workers own hands and brought their venture into public prominence. The Rochdale Equitable Pioneers Society was formed and collected money from member families to open a small co-operative store on Toad Lane, Rochdale. Each member had one share and one vote, and thus an equal say in the decisions made in the business. The Society developed and began to sell goods at normal retail prices – a lesson in itself – but, most importantly, profits generated were apportioned to their spending during the year. Although co-operatives had been established before the Toad Lane shop, it was this one which succeeded and set an example others followed. We are fortunate this early enterprise recorded the principles of the society and the philosophies set down became the basis of many co-operatives around the world today.

This history is focused on trading, in particular livestock and merchandise specifically relating to agriculture and primary produce in Taranaki and the North Island of New Zealand. Trading first occurred in Taranaki in the 1820s when a revived sealing trade in southern New Zealand saw ships sailing home to Sydney or Hobart through Cook Strait began calling at Nga Motu, New Plymouth to exchange muskets for pigs and flax. Ian Church in ‘Heart of Aotea’ describes one of the first encounters:

The Nga Motu anchorage in the lee of the Sugar Loaves was known by 1822 when, ‘an old friend’ of Frederick Maning’s, probably Captain James Heard in the ‘Providence’, exchanged a box full of cartridges for a Maori woman from Taranaki who was about to be ‘baked’ at Kawhia. He took her back to Taranaki where he was given two tons of flax and 18 pigs and asked to remain a few days longer while more was collected. ‘But as he found their intention was to take the schooner and knock himself and crew on the head he made off in the night.’

Muskets proved to be a highly sought-after commodity and the exchange of flax for the ‘Pakeha’ weapon continued for many years between Maori and seafaring visitors to Taranaki. The first sale

Devon Street, New Plymouth. Illustration from London News 23 August 1856.

COURTESY COLLECTION OF PUKE ARIKI. UNKNOWN ARTIST. A95.248

of land occurred in the 1840s and a few early individual settlers sold various wares, but almost 50 years would pass before any substantial activity took place in South Taranaki.

Settlement of the west coast of the North Island of New Zealand commenced in the north.

The province of Taranaki originated in the settlement of New Plymouth which was formed by the Plymouth Company of New Zealand, in conjunction with the New Zealand Company, in the year 1841.

New Plymouth was then founded and became the region’s main town. The boundaries of the province were defined by proclamation, under the Constitutional Act of New Zealand in the year 1852. At that time Taranaki was described as ‘The Province of New Plymouth’ but later, in 1858, changed to Taranaki by act of the General Assembly of New Zealand. The province was described as the western projection of the North Island divided at the coast from the Auckland province to the north by the Mokau River and from the Wellington province by the Patea River. The Mokau River also formed the northern boundary line. The eastern boundary was established by a number of lines between the Wanganui and Mokau rivers. The rest of Taranaki is surrounded by ocean. The province was one of the last to establish a functional farming community. Although the hinterland ring plain surrounding the sleeping volcano Mount Egmont was graced with rich volcanic soil, with rivers and streams reticulating sparkling fresh water throughout an exquisite natural garden, early settlement by Europeans south of the more northern New Plymouth district was delayed by Maori opposition to the selling of land.

This treatise documenting the history of Allied Farmers Limited, formerly The Farmers’ Cooperative Organisation Society of New Zealand Limited, Gillies and Nalder, Gillies Fantham and Nalder, Fantham Bros. & Co., and The Egmont Farmers’ Union Limited, has been referred to by Arthur Fryer, a local historian saying, ‘Farmers’ Co-op is the history of Hawera’. Consequently no documented history of an organisation that began its journey only a decade after the New Zealand

Wars ended, and involved many outstanding South Taranaki citizens, could be written without a brief introduction describing the European settlement of this untamed but beautiful countryside of Taranaki.

In 1841 The New Zealand Company negotiated the purchase of land from local Maori chiefs for settlement of British immigrants at New Plymouth. Ownership of this land was challenged by absentee owners and the Waikato tribes who claimed the land by conquest. The first planned arrival of Europeans at New Plymouth was on 31 March 1841 on the ship William Bryan. Early European missionary Samuel Ironside visited South Taranaki in the early 1840s and was impressed with the fertility of the soil, agricultural and pastoral possibilities and said, ‘I wondered what a splendid location it might be made for some industrious farmers’.

In The History of Taranaki B. Wells records Edward Wakefield’s experience while travelling by horse overland from Wellington to Taranaki in February 1843, encountering Mr Cooke and ‘two or three stockmen and Richard Barrett’ driving ‘70 head of cattle and a large flock of sheep’, both parties intending to reach the New Plymouth settlement through forest on the east side of Mount Egmont. This was possibly the first large herd of cattle and sheep driven through this picturesque but often heavily bush-clad country. The ancient Whakaahurangi track on the eastern side of the mountain was later known as the Chute, or Nairn track, and eventually became what is now known as Mountain Road.

Edward Jerningham Wakefield, an eccentric pioneer, explorer, politician and writer, described the districts of Whenuakura and Waitotara in 1843 as, ‘fine open pasture land watered by numerous small streams’, and the land around Hawera as of ‘the most fertile description and admirably adapted to tillage or pasture’ and:

… after all the beautiful spots … which I had already seen in New Zealand, I was struck with the surpassing beauty and luxuriant productiveness of the country (near Ketemarae), just after entering the wood which is at first like an immense shrubbery with occasional large trees, the abundance of the second crops in the existing Native gardens, the rankness and yet softness of the grass which had sprung up in the old deserted places, surrounded the flowering shrubs amidst which countless flocks of singing birds were chasing each other, all combined with the genial atmosphere, although it was approaching to the middle of winter [May 1843], to remind me touchingly of Shakespear’s [sic] sweet picture of perfection of agriculture.

The innumerable difficulties encountered in connection with the sale and purchase of land that faced both Maori and Europeans from the 1840s to 1860s are described in publications dedicated to this unsettled time in our history. However, pressure to develop the southern part of Taranaki Province caused Maori leaders to become concerned at the increasing demand for land by Europeans and in 1854 a large gathering of local leaders was held at Manawapou. A decision was made that sales of land would only proceed if approved by the Maori Council. An organisation known as the Maori Land League was formed ‘after a meeting held sway during the next few years and was reinforced by adherents of Te Ua Haumene, a Maori prophet from East Egmont. His followers were known as the Hauhau’. War, hostilities and division continued for some considerable time.

The Government decided to quell the unrest and encourage military settlers into Taranaki and offered not only a degree of security but practical inducements as well. Advertisements appeared in newspapers throughout the country:

Edward Jerningham Wakefield 1820–79, pioneer, explorer, politician and writer.

COURTESY OF IRMA O’CONNOR COLLECTION, ALEXANDER TURNBULL LIBRARY, WELLINGTON, N.Z. PACOLL-6987-1

Wanted: Volunteers for Taranaki.

Men wishing to join the above force subject to the under mentioned conditions are requested to make early application to the undersigned, adjoining the office of the Commissioner of Police. Information as regards the duties to be done and the nature of the land to be given can be had at the office.

Some of the conditions of taking up the land included:

Settlements will be surveyed and marked out by the Government. Each settlement will comprise not less than 100 town allotments and 100 farm sections.

A stockade at the most eligible site in each settlement will be erected at the expense of the Government.

A town will be laid out around or as near as may be to the stockade in one acre allotments.

Farms will be laid out around or as near as may be to the town in sections of 50 acres each.

Every settler under these conditions will be entitled to one town allotment and one farm section.

Priority of choice will be determined by lot.

No man above the age of 45 years will be accepted and every applicant will be subject to an examination by an officer appointed by the Government and must produce such certificates of good health and character and fitness for service as such officer shall require. …

After taking possession he will be entitled to receive rations, free of cost for 12 months, upon the

Original Allotment Map of Hawera town sections with proposed line of railway. COURTESY OF ROSS AND CLAIRE CORRIGAN

same scale as supplied to H.M. troops. He will be allowed to retain possession, as a Militiaman, of his arms and accoutrements, and he will be supplied with ammunition for use according to Militia Regulations.

In 1867 the first European settlers began to move onto the land, only to be displaced on 7 September 1868 when Titokowaru and his warriors swept down through the southern part of the province as far as Nukumaru. They were eventually driven back to the north at Ngaere and rounded up. Following this engagement South Taranaki was almost deserted until March 1869 when those who had earlier been driven from their homes started to return and finally fighting between Pakeha and Maori ceased.

Only in the last two decades of the nineteenth century did the European settlers in isolated districts feel secure enough to open up large tracts of virgin bush country for farming, particularly east and south of the mountain. The settlers comprised a few former military men, who had tested their mettle in the dwindling goldfields of New Zealand, some established farmers from elsewhere in the colony, and mainly British immigrants who had arrived with their families and begun clearing the bush and tilling the soil.

Original map of Militia Farm Section allotments surrounding the town of Hawera in South Taranaki, 1860s and 1870s. COURTESY OF ROSS AND CLAIRE CORRIGAN

Dense virgin forest covered the areas, particularly northwest of Patea, Alton, Hurleyville, Whakamara, Ararata and Meremere and north towards Eltham and Stratford. The open country, towards the west – Ohangai, Mokoia, Hawera and the Waimate plains – was dressed in fern, tutu, and, in the gullies, light forest. Taranaki’s rightful place in the colony would be realised in time but there were years of considerable hardship before settlers’ ambitions were fulfilled. With little or no financial reward from their efforts, many early farmers sold fungus as a means of sustaining their families while they developed land holdings to the point where they could survive from income from their own produce. Fungus was known as ‘Taranaki wool’ and was the main source of income for many in the initial stages. It has been recorded that in 1885, the value of fungus exported amounted to £72,000, more than the total value of butter shipped from the province.

James Davidson, general storekeeper, first chairman of the Town Board, Mayor of Hawera, president of Egmont Agricultural & Pastoral Association for the year 1896.

COURTESY OF THE CYCLOPAEDIA OF NEW ZEALAND

ames Davidson, born in 1836 at Canonbie, a border parish of Dumfriesshire, Scotland, arrived in New Zealand in 1865. His family can be traced back to the historic figure John Armstrong, who was murdered by James V in 1530 and in whose memory, and that of his fellow victims, a monument was erected. He arrived at Hawera from Turakina, where he had been employed by Messrs Franklyn and Hirst, on 2 October 1871, and established the first general store in the area, Davidson’s Hawera General Store. He sold almost everything, including groceries, general provisions and farm requisites. Travelling by packhorse to the outlying districts on a weekly basis through extremely difficult country he exchanged wares for fungus, eggs and homemade butter. His sisters Elizabeth and Isabella arrived from Scotland in 1888, with another sister’s orphaned children, to join their bachelor brother. They kept house for James, and assisted in the shop until James retired to a farm at Ohangai Road, Taiporohenui in 1897. A shrewd yet popular man and well known trader, James was a welcome visitor to early settlers in the many remote South Taranaki districts being opened up in the early years. He was the first chairman of the Town Board, which met in December 1875, and he resigned in January 1879 when the Hawera Borough was formed. He was Mayor of Hawera for four years, a member of the Patea County Council, chairman of the Egmont Racing Club from 1896 (R. H. Nolan was president), vice president from 1907–1916 and chairman of the Hawera Trotting Club committee in 1898. For several years he held the position of president of the Hawera Branch of the N.Z. Farmers’ Union and was active in the Presbyterian Church. He was involved in a variety of other organisations but, notably, he was president of the ‘Hawera [Egmont] Agricultural & Pastoral Association’. During the settlement and establishment of Hawera, James (Baldy as he was affectionately known), Davidson, became the central figure of any new local endeavour.

As agriculture developed, the relative isolation of the area made moving produce out of the province a major impediment to early trading. Rugged bush-clad hills in the north and treacherous often swollen rivers in the south isolated the area. In H.G. Philpott’s A history of the New Zealand Dairy Farmer he states:

As a result produce had to be transported over land to Wanganui or Wellington, a costly business and quite unsatisfactory before the days of insulated rail transport. Roading and bridging was costly on account of the heavily forested country, the innumerable streams, the heavy rainfall. Lastly, Taranaki dairy farmers probably had less Government financial assistance in the early years than settlers in almost any other part of the colony. Also stock and station agency firms generally did not appear to find such an attractive opportunity for their capital and enterprise in Taranaki as obtained in most parts of the colony then in a state of active development. The fact is apparent from a survey of the beginnings of this province. In the view of the hardships faced and the lack of outside help and communication, the first Taranaki settlers were truly pioneers.

As well a wind-swept coastline provided few places of safe harbour other than Waitara and Patea rivers, and these could only be navigated at high tide across unpredictable and dangerous sand bars. In later years breakwaters were built at New Plymouth, Opunake and Patea, but these were unreliable and would test even the most experienced sea captain.

With hostilities between disenchanted Maori tribes and settlers abating, an orderly settlement of the land with the prospect of commerce was a much-awaited development. William Dale and William Cowern (later Mayor of Patea), both of Patea, were two of the pioneering auctioneers of South Taranaki. An advertisement in the Wanganui Herald that William Dale would be selling every month on the second Wednesday in the yards adjoining the Hawera Hotel in High Street. At the time Hawera had a population of ‘438 white persons and a town Board’. The Patea Mail stated on 14 April 1875:

William Dale, auctioneer, will hold an auction sale of livestock in the yards of the Manutahi Hotel in eight days time.

One month later a second sale was held with an entry of 50 cattle and one pony. In October of the same year W. J. Furlong held a cattle sale in the hotel yards. Mr Furlong had a mart in Hawera and ‘sold a little livestock’, and disposed of business in 1878 to McLean and Broadbent. Another Hawera firm Thomson and McGuire held a sale at Manutahi in 1878.

Cowern and Dale were both ‘noted men of trade’ and responsible for the establishment of saleyards in many South Taranaki townships. They received licenses to operate from the Provincial Treasurer, Arthur Standish of New Plymouth, in April 1875 and held sales at regular intervals for many years in Patea. C. F. Barker opened a yard at Patea for a short period, and William Cowern built yards in Lincoln Street, Patea in 1883. A few years earlier, in 1879, he had held a sale for Steuart and Corrigan, a partnership, who later became stock and station agents themselves with a head office in Manaia and a branch at Stratford.

Around the same time (1883) Freeman R. Jackson of Wanganui also held a sale at Kakaramea. Waverley had also received the attention of this company when the Patea Mail carried an advertisement on 10 July 1877:

William Cowern JP, Mayor of Patea for three years in succession, auctioneer, land and financial agent at Patea for nearly a quarter of a century.

Freeman R. Jackson having erected extensive yards will be holding monthly sales on the second Saturday of each month.

Waitotara also had a saleyard adjacent to the police station which was ‘cared for’ by Joe Richardson a longtime local drover. Another character of the day was Gordon Walker, a drover, dealer, and later a stock agent at Waverley. He claimed to be the first man to drive a car up the Waitotara Valley road. Mr John McCaw said, ‘When I told Mr [Bert] Symes of this claim of Walker’s, he said: “Probably true – Gordon was game enough to tackle anything even the mud of the valley”.’

The last regular sales at Waitotara were held in 1905 and it is understood that the first sales held in this district had commenced some 26 years earlier.

The Patea Mail reported on 26 April 1877 that the firm Inman and Coy. of Hawera conducted their first stock sale in that town.

There was a great gathering of people from Hawera and the surrounding districts at Inman and Coy’s first sale. Liberal lunch was served in the nearby auction rooms. Mr Charles Brown acted as auctioneer and shaped well. … The entry of 20 horses were mostly sold. The livestock sale was a great success. The auctioneers deserved commendation for their enterprise in erecting such a suitable and commodious auction mart and such substantial and convenient cattle pens are at present to be found adjacent to the auction mart.

TO BE SECRETS NOW

William Cowern also conducted sales at Normanby in 1878. In fact when hostilities during the European settlement came to an end in the region there was considerable interest from many stock firms and auctioneers from neighbouring provinces and towns and a few locals who saw an opportunity to realise the potential of this hitherto inaccessible strip of fertile coastal country. Some partnerships and firms were as follows:

Ashworth and Liffington Wanganui 1877 Sale at Waitotara McLean and Coy. Hawera 1877c Hawera Wilson and Barnes Wanganui 1879 Sale at hotel yard, Waitotara Thomson and McGuire 1878 Normanby Baddeley and Forlong Wanganui 1905 Auctioneer, Waverley Dalgety and Co. Wanganui 1907 Waverley. Estab. yard 1910 Nixon and Coy. Wanganui 1907 Waverley

The status and standing of the auctioneer and stock agent in rural communities throughout the districts, even in these early years of settlement, is clearly evident, with many elected to local town boards and other positions of responsibility such as George Bate (a chairman), W. J. Furlong (a chairman), Felix McGuire (later a Member of Parliament for Egmont), Max D. King and W. McCutcheon. Freeman R. Jackson and William Cowern were mayors in their respective towns.

Fortunately there were a few scribes who were passionate enough to write about these almost forgotten days of European settlement before those who had laid the basis for the development of the countryside had passed away. One was John (Jack) McCaw, born on 22 August 1903, who eventually became branch manager for Wright Stephenson Limited, Feilding. While he spent most of his life working in the livestock industry, he is best known for his research and writing, and some broadcasting on pioneering, early New Zealand farming, and land and stock sales. He also wrote many articles for newspapers and periodicals, with stories relating to the pioneers of auctioneering enterprises, sales and saleyard establishments in and around the districts, including South Taranaki.

TWO

Barefoot Boy Behind the Plough

Nearly all the rural districts throughout the country had now been settled and farmed for some years but trading opportunities in the fast-developing province of Taranaki were seen by many, who had successfully cut their teeth elsewhere in New Zealand, as rich pickings. They came from far and wide, where farming and rural communities along with supporting agricultural enterprises had already been hard won and established. The New Zealand Co-operatives Association notes: ‘The earliest record of co-operatives in New Zealand reports the formation of farmer trading co-operatives in Timaru and Christchurch in 1881’. However, organised pastoral farming, with all the necessary supporting commercial infrastructure, was yet to arrive in the province of Taranaki.

A number of extremely able men and their families settled the small towns slowly becoming established. There was of course a contingent of local Taranaki entrepreneurs who had already entered the trading arena and were operating from New Plymouth and as the years progressed their enterprise and popularity made them household names. One such gentleman was Newton King, a native of New Plymouth and son of Thomas King, one of Taranaki’s early prominent settlers. On leaving school at the age of 16, Newton was employed in the offices of Webster Brothers, wine, spirit, coal and general merchants until 1879, where he gained considerable experience in the butter industry. In 1879 he went into business on his own account. He ‘auctioned everything and anything – land, goods, horses and stock’ and over the years his company Newton King Limited became one of Taranaki’s most successful proprietary businesses and the subject of this history’s main competitor. The two companies worked side by side in relative harmony, in many cases sharing saleyard facilities and interchanging stock and station personnel throughout the 1900s.

The year 1880 marked the dawn of a new age for South Taranaki. The first trains arrived in town from the north and a newspaper, the Hawera and Normanby Star, commenced publication and had a major impact on communications and transport. Many new businesses opened their doors as the district raced towards the beginning of the 20th century. Until now livestock were more often bought and sold privately between farmers. However, rural commerce was about to change dramatically, with experienced stock and station agents coming onto the scene and vying for business with panache and flair and courting the farming fraternity to acquire a slice of the new business in the district.

A highly successful ‘flourishing business – one of the largest in Taranaki’, so it was said, opened in 1880. Robert Howard Nolan (later Sir Robert) was born in Bathurst, New South Wales, Australia in 1855, the son of well known Mr David Nolan, an Auckland stock and station auctioneer of Messrs Hunter and Nolan. Robert was educated at Wesley College and Auckland College and Grammar School. He ‘struck out for himself’ on the Thames goldfields, but like many others subsequently returned to Auckland and entered the warehouse of Messrs McArthur and Co. He later represented

TO BE SECRETS NOW

the same firm in the ‘South Sea Islands’ and married the daughter of Major Durie of Wanganui and had three daughters and a son. His own establishment, R. H. Nolan, auctioneer and stock and station salesman, was opened in Hawera in 1880, two years later he was joined by Arthur Sydney Tonks as a junior partner, also the son of a well known Auckland auctioneer, the late Benjamin Tonks. Arthur married Miss Nolan, sister of his partner and they had two sons and a daughter. The partnership was very successful and continued until October 1907 when the business was sold to the well established New Zealand Loan and Mercantile Agency Co. Ltd managed by A. R. Buchanan, although it appears that both partners continued to operate as auctioneers with the new company for ‘a year or two’. The firm held sales at Hawera, Manaia, Opunake, Eltham and Kakaramea and also conducted land and property sales at well-appointed premises in Regent Street, Hawera.

R. H. Nolan, senior partner in the firm of Messrs Nolan, Tonks and Co., Hawera, president of the Egmont Racing Club and Opunake Racing Club, chairman of the Mokoia Domain Board, director of the Hawera Permanent Building Society, and chairman of directors of the Hawera Gas Company.

PHO2006-207

A number of established companies in neighbouring towns and provinces recognised the opportunity to widen their net, including a stock and station agency with over 15 years experience – New Zealand Loan and Mercantile Agency Company Ltd. On 17 April 1880 an advertisement appeared:

NEW ZEALAND LOAN AND MERCANTILE AGENCY CO. LIMITED

Capital £3,000,000

The company makes advances on stations, on stock, on growing clips of wool and other produce; and receives consignments of wool, hemp, grain, tallow, preserved meats, leather, horns &c, for sale in London on commission, at rates that may be learned on application to the company’s office.

Office and Warehouse, Victoria Street, Wanganui.

The Egmont Farmers’ Union Limited Horse Fair, Hawera 1897.

Further information may be obtained from the agents of the Bank of New Zealand at Normanby, Hawera, Carlyle [Patea] and Waverley.

Soon others were soliciting business through the Hawera and Normanby Star and on 1 May 1880 an advertisement appeared:

Freeman R. Jackson

Will hold his Sales for Stock – during the month of May, as follows:-

ST. HILL STREET – Wednesday 5th WAVERLEY – Friday 14th

ST. HILL STREET – Wednesday 19th HAWERA – Friday 21st

ST. HILL STREET – Wednesday 22nd June

Settlers will kindly forward their entries

FREEMAN. R. JACKSON – AUCTIONEER

A few years later, in 1884, Freeman R. Jackson sold his business north of the Waitotara River to the Taranaki firm Quinlan and Mander, and with the sale went the yards at Waverley.

The steady proliferation of stock and station agencies in South Taranaki sent a strong message to the farming community that this was indeed a very healthy and prosperous industry, yet the falling value of livestock around the coast was not reflected in the cost of disposing of them. There were no farming organisations to express concern over what appeared to be exceptionally high sales commission rates. The New Zealand Farmers’ Union was still ten years away from inauguration. The only voices heard within the farming community were those of a number of small Farmers’ Clubs that met in local districts, with little or no affiliation.

In a growing desire for self-determination, farmers decided to use their collective strength to get equitable treatment and reduce overheads. The problem was there was no central body to organise and co-ordinate any action. One of the few organisations to bring local farmers and residents of the town together was Hawera-based Egmont District Agricultural & Pastoral Association, inaugurated in 1884. It had an extremely strong, vibrant membership, was forward thinking and well supported. The Association’s annual spring show was ‘recognised throughout New Zealand as the premier dairy show of the country’. The formation of the Association had first been mooted in 1882. Until then South Taranaki’s only annual shows had been held at Kakaramea, Patea and Waverley by the Patea Agricultural & Pastoral Association. The fact that the railway line had yet to be constructed between Manutahi and Hawera as well as some dissatisfaction within the ranks of Hawera farmers, dissuaded exhibitors from showing there. Efforts to change the location to a centre more convenient to South Taranaki settlers failed. It was only after considerable discussion and deputations to the Patea Association that a move was initiated by the Hawera Chamber of Commerce to establish an Agricultural & Pastoral Association at Hawera. The first show in 1884 attracted nearly 400 entries, with an estimated attendance of 1,500 people. The Star reported:

Freeman R. Jackson and Co., stock and station agency and auctioneering business, was established in Wanganui in 1874. The business operated in the Wanganui, Manawatu, Horowhenua and Wellington districts, including Hawera. It was merged with Newton King Ltd in 1971 and became part of the Crown Group.

COURTESY OF ALEXANDER TURNBULL LIBRARY, WELLINGTON, NEW ZEALAND. B-K 82-1366

But even more than the number of people present … the committee to be congratulated on the quality of the stock exhibited. We heard it remarked by old farmers that it was the best show they had ever seen on the coast between Wellington and Auckland.

Over the years the Association’s initial membership of 144 grew and with it confidence to tackle some of the more difficult issues facing rural communities. Its older and more established neighbour, Patea Agricultural & Pastoral Association, had been in existence since 1875 and had promoted a

variety of farming-related enterprises to improve the well-being of the community and industry. These included West Coast Meat and Produce Export Co. and Patea Oil and Fibre Co. There was ‘a little jealousy’ between the two Associations as they competed for prominence and the idea of combining the two shows to provide more entries and better competition soon became a matter of hot debate. At an Egmont A & P Association luncheon, attended by judges and stewards, it was suggested in a toast that the two districts be united and that they present ‘an amalgamated show’. Such an amalgamation had been raised on a number of occasions but had not found favour with the Egmont A & P Association committee and negotiations had fallen through at the eleventh hour. The suggestion was immediately challenged by the vice-president of the Association.

Arthur Albert Fantham, a man of considerable presence, slowly rose to his feet to respond and propose the health of these ‘strangers’ who had finally dared to raise this rather delicate subject which had been quietly circulating behind closed doors between neighbouring societies. Although in the minority on the matter, he announced confidently that he favoured ‘a local show as against a central one’, and elaborated on his reasoning in a colourful and eloquent speech, declaring:

The South Taranaki district was like a young and beautiful lady about 17 years of age, of great wealth who had quite a number of suitors. Wanganui wanted this district to join it, so did Patea and so did Taranaki.

Arthur A. Fantham 1842–1904. Arthur was widely known for his pedigree herd of Shorthorn cattle. He was manager and Auctioneer of The Egmont Farmers’ Union Ltd, Hawera, chairman of the Hawera Road Board, member of the Egmont Agricultural & Pastoral Society and the Masonic Order.

COURTESY OF G. N. (NEIL) FANTHAM

He recounted that when he settled in the district he had found a stretch of country extending 20 miles inland and for some 50 or 60 miles east and west. Describing the area he said, ‘from any place a couple of hundred feet high one could look over a vast area of fertile land, altogether different from Patea where the level land was only a strip a few miles in width’. He believed it was absurd to expect people in the Hawera district to take stock to a Patea show and he went on to explain that one day he expected Hawera to become the central show, just as Christchurch was for central Canterbury. He proffered the idea that:

it was better for the Hawera district to remain an old maid than to be bamboozled by any of the other districts that now wooed her.

In proposing the toast he could not have guessed how true his remarks would be and that 125 years later the Egmont A & P Association show would still be held annually and recognised as one of the most successful agricultural & pastoral shows in New Zealand.

In 1885 the New Plymouth and Patea Associations entered into negotiations with the Egmont Association regarding amalgamation, with an annual show to rotate among the three centres. At Hawera the majority of A & P supporters were against the amalgamation proposal, believing that the Egmont venture would succeed through the advantage of the town’s central position so there was nothing to be gained from joining with the other two ailing organisations. Over the following years there was disenchantment among the Patea settlers as their show wilted away, to finally cease in 1889. At the same time Hawera prospered and although New Plymouth continued for many years, the Egmont Agricultural & Pastoral Society annual agricultural show in Hawera became the most popular in the province.

The man central to this early history had now made his entrance onto the scene. Arthur A. Fantham was born in 1842, son of Joseph, innkeeper of the Russells Arms, Aylesbury, England. The family arrived in New Zealand on the Duke of Portland in 1851 after a 123-day voyage and Joseph with his family settled in Canterbury working as a farm labourer. Arthur had a special yet natural gift when it came to working with stock, and following his schooling went to work on a farm at Spreydon, now a suburb of Christchurch. He is described by an authority on the Fantham family,

Arthur Fryer of Hawera, as ‘the barefoot boy behind the plough’, yet what happened during his formative years is a mystery. Arthur very quickly set about establishing ‘a purebred stud, eventually earning him nationwide respect’. This energetic and likeable young man joined the Canterbury Agricultural & Pastoral Association and, as Arthur Fryer explains:

… not something a humble farm worker’s offspring would do in those days. Here’s a barefoot boy behind the plough joining an organisation of Christchurch’s gentlemen … he had gumption. … Arthur went on to win numerous prizes for his stock – and developed a name for himself as a breeder of quality Shorthorn cattle. The farm worker’s boy had set a foot into the world of the gentry and liked what he saw – he spent the rest of his life moving in circles above his station.

Cambridge became the home of Arthur and his wife Mary (née McWilliam) and family. They had married in 1865 at Christchurch and in 1877 moved to the Waikato to farm the property ‘Gwynnelands’ on the banks of the Waikato river, where they quickly settled into the community. Arthur developed a racecourse on his property and patrons would arrive to meetings by paddle steamer and horse and gig. The property was also used by the hunt club and on one occasion the Pakuranga Hunt Club from Auckland visited for three days. A new grandstand attracted large crowds of people, ‘bustles, parasols, hats and suits were the order of the day’, and through these public gatherings Arthur Fantham ‘succeeded in getting his foot in the door of the Waikato élite’. In 1880 a lengthy, flowery testimonial of appreciation and the gift of a piano was presented to Fantham by a group of gentlemen from the South Auckland Cattle Board of which he was a member for the part he played with his outstanding ‘animal husbandry skills’ in the managing of an outbreak of pleuro-pneumonia amongst cattle in the district.

His distinguished reputation preceded him when in 1881/2, with wife Mary and 11 children (six sons and five daughters), Arthur arrived in Hawera to farm a property of 600 acres. The homestead stood adjacent to the present Egmont Racing Club grandstand on Waihi Road. He was a stockman by nature and it was in this profession that he would apply his exceptional qualities and knowledge for the rest of his life in the town of Hawera. As well as being involved with the Egmont A & P Association he became chairman of the Road Board, which eventually became the Hawera County Council. Being associated with several local bodies, he devoted much of his time to public issues. He also ‘dabbled’ in politics when in 1884, for want of an opposition candidate, he stood against the sitting Member of Parliament Major Harry Atkinson without success. Atkinson was a popular man and ex Premier ‘winning every booth hands down’. In later years they became great friends. Other than that he never took public office in South Taranaki although was always on the fringe of local politics and organisations that were associated with the development of the district. It was, however, the stock industry that received the main share of his attention. His congenial nature and flamboyant personality made him a public figure and he has remained a part of South Taranaki’s folklore throughout the past century. His daughter Fanny found her place in history when in March 1887, at the tender age of 19 and with a party of six ladies and nine gentlemen, she became the first woman to ascend Mount Egmont’s subsidiary peak. It took six hours to complete the climb and although Maori called the peak Panitahi, it was decided then to give it a new European name –Fantham’s Peak.

A charismatic protagonist on many issues, Arthur Fantham left his mark on the town of Hawera and was without doubt a driving force behind what became a campaign to unite farmers in their quest for self-determination in the stock and station industry. The curtain closes on act one with a leading character in place. The second act opens with new players in the early days of an organisation that would grow to become what we now know as Allied Farmers Limited.

CHAPTER THREE

He Stands Alone, His Voice Unheard

As the 1880s came to a close farmers became disenchanted with spiralling costs, lack of control in their own industry, and considerably lower returns for sale of livestock. The combination of these difficulties and the fact they had no remedy with the industry in the hands of proprietary companies prompted considerable discussion; they took the bull by the horns. The Egmont A & P Association had already found a new home, on the east side of Waihi Road, Hawera. ‘By an agreement dated 7 November 1888, Mr John Brown arranged to sell his property to Messrs W. E. Dive, J. R. Lysaght, Moore Hunter and James Davidson’, with an undertaking it was to be sold at the original price to the Egmont A & P Association as the site for Hawera showgrounds.

Egmont A & P Association 1909. Back row from left : Sir R. H. Nolan, S. Norton (secretary, Wanganui A & P), F. W. Wilkie, O. J. Hawken, W. D. Powdrell, W. O. Williams, E. N. Chettle, W. O. O’Callaghan, C. A. Budge, E. Nalder, W. A. Duckworth, A. Goodson, A. S. Tonks, J. Campion (judge). Middle row from left: A. T. Wills, C. Wilson, J. O’Sullivan, G. H. Wilson (judge), H. G. Gibson, J. C. Hobbs. Front row from left: W. Christoffel, A Winks (vice president), W. Robertson, L. R. Hamilton, A. Hunter (president), M. Donovan (judge), A. Good, F. J. Treweek (secretary), F. Morrissey (assistant secretary).

A & P ASSOCIATION

OF

This undertaking became a fact when an agreement was executed by which the land was sold to Messrs Hunter, Dive, Davidson, J. Mason, F. Riddiford, W. Wilson, J. Livingston and A. W. Budge as trustees for the Association. By 1889 the Association had found its feet, with many prominent farmer members now joining the ranks. It had quickly become one of the most influential farming organisations in the district and was now ready to lead the charge in a new and exciting commercial battle. This was a momentous occasion and probably the first time South Taranaki farmers had stood united in support of an idea and principle they passionately believed in. On 28 February 1889 a prospectus was issued ‘for the purpose of forming a company in the interests of the farmers in the district, to be called ‘The Egmont Farmers’ Union Limited’.

In the Egmont Star in February 1889, ‘A FARMER’S VOICE’ to the Editor, said:

Sir, I see by the advertisement calling the next general meeting of the Egmont A & P Association, a resolution will be tabled which will deal with the question that is of the greatest importance to the farming community. I refer to the unsatisfactory mode of dealing with stock through present medium between buyers and sellers, and the high charges in consideration of the service rendered by such medium. Farmers have the name of being patient and long suffering, and I must say that in this matter they have been true to that character. Unity we all know means strength. We see examples of this in our every day walk through life. The mechanic, the labourer, and pretty well all classes of society (but the farmers) have their unions and combinations for the purpose of watching and protecting their own interests, but farmers on our coast have no unity, and allow themselves to be the milch cows, and pretty well they get milked of their money. If they would be true to themselves and their interests and pull together their financial position would be better.

The workman in all cases is worthy of his hire, but sir, I would ask you, are not the present charges for selling farm produce far too high for the services rendered? In many cases the charges for disposing of the commodity are more than the profit of the man that kept the stock for months. Agents say they have to charge high commissions because a good deal of the business is done on the credit system. If this is so, then it is palpable to all that the man that deals for cash is being bled for the credit man. This is not, in my opinion, equity, and I say it is the duty in all interested in the raising of stock to join and by so doing bring about a more equitable system, and how can this be accomplished?

The A & P Association are moving in the matter, members should be added, and then form themselves into a farmers’ union, sell their own produce through their own medium, on strictly a cash basis and by so doing I feel sure they will put money in their purses. Our A & P Association is a most useful institution, but only deals with the annual show. If it were to extend its functions in the direction above indicated its usefulness would be much enhanced and soon would be raised to a flourishing position, because farmers would then join and support it that do not at present. I hope and trust the meeting on the 23rd will be well attended. – I am, &c. Unity.

Response was immediate and extremely encouraging, with hundreds of farmers promising to support the proposal. Correspondence promoting the initiative continued in the press:

A & P ASSOCIATION.

The Editor of the Star.

Sir, I am in accord with ‘Unity’ that the time has arrived for the A & P Association to do more than hold an annual show, and they could not further the interest of the members and the struggling settlers of

The Egmont Farmers’ Union Ltd. First General Meeting advertisement.

COURTESY OF SOUTH TARANAKI STAR

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the district better than by undertaking the management of the disposal of land, stock, &c.

To my mind ‘Unity’ has not pointed out clearly the method that the A & P Association should adopt. As I am, as it were, but a drop in the ocean, might I suggest that the members of the association should carefully consider the resolution to be brought forward at the coming meeting. Not knowing the contents, I would suggest that quarterly sales or rather fairs should be held, and up to a certain hour on the day of the fair, owners should be allowed to sell their stock privately. The unsold portion could be offered by auction.

I need not point out to you that it was by this system that the majority of we old English farmers used to dispose of our stock and produce before we reached these shores. The holding of quarterly fairs would no doubt produce a great number of entries and would induce both buyers and sellers to come from a long distance, and this method would also save considerable time, besides the injury to our stock, to say nothing of the commissions we have to pay. If the holding of a fair is adopted, of course it would be necessary to raise funds for expenses, therefore an entrance fee would be required – say 2d per head on cattle and horses and ½d on sheep or sufficient fee to cover the cost of advertising, deterioration of yards, rent and interest of money invested. Probably one of our local auctioneers would sell at a small percentage, say one per cent, and if he would not the society could take out a license for some person to sell them when required, because I am sure one per cent commission would secure a good salesman.

The society should also have an office, where persons wishing to sell or lease land, &c., could register the same for disposal, a small fee would also have to be charged, and a small commission if business was transacted. One great advantage of an office of this kind would be that persons wishing to purchase or lease a property, instead of going to a dozen different offices or looking over some scores of papers, would learn what properties in the district were for selection. Feeling sure that if our good old English system was one established in the district, it would prove a benefit to all agriculturalists. I am &c., Smithfield

Almost immediately the ranks of the Egmont A & P Association swelled with great expectations of success. The following month, on 9 March 1889, a prospectus appeared in the local newspaper:

PROSPECTUS of the

EGMONT FARMERS’ UNION (Limited)

To be registered under ‘The Companies Act 1882’ CAPITAL £1500 in 500 shares of £5 EACH

On the following terms of payment viz.: 10s on application, 10s on allotment and calls not exceeding 10s per share at intervals of which one month’s notice will be given.

PROVISIONAL DIRECTORS

Mr J. L. Perry, Manaia Mr J. Lambie, Pihama

Mr Isaac Bayly, Hawera Mr Thos. Scott, Manaia

Mr Moore Hunter, Hawera Mr Wm. Rowe, Normanby

Mr John Robertson, Hawera Mr W. E. Dive, Hawera

Mr Geo. McLean, Hawera Mr F. Riddiford, Hawera

Mr G. Inkster, Normanby Mr T. C. McCracken, Manaia

Mr T. Parsons, Otakeho Mr A. Sutherland, Manaia

Mr W. V. Pearce, Pihama Mr R. B. Hamilton, Manutahi

Mr S. Forsyth, Pihama

BANKERS: BANK OF NEW ZEALAND

SECRETARY: (pro tem) Mr T. C. McCracken

The company is formed in the interest of Farmers for the purpose of seeking markets for farm stock and produce and its disposal, to hold periodical sales by auction in various centres in this provincial district, engaging the services of a competent manager to act as salesman, to keep a register of land, stock or produce open for sale, and to dispose of the same either privately or by auction as the vendor may desire, and in every way to facilitate its disposal, and to act in the interest of those entrusting their business to the Union.

The Union propose to acquire a site at Hawera forthwith for the reception and sale of stock, and will extend their business premises, from time to time, when the support given warrants them doing so, but the Union will be prepared to hold sales in any part of the Taranaki Provincial district at the shortest notice, and at Union rates, if a fair quantity of stock or produce can be got together at any given centre for that purpose.

The promoters are satisfied that the commission on sales by auction may not exceed 1½ per cent to shareholders and 2 per cent to non-shareholders and propose to fix the charges at these rates. They also propose to keep a register at the office of the Union, where farmers can (for a small fee) enter what they have for sale, and where to be seen, and the Secretary will give every information (supplied him) to applicants, and on a sale being affected, a small commission will be charged.

The Union propose that all their sales shall be on a cash basis, or to act as a medium to arrange terms between vendors and purchaser, but in no case will the Union finance for either party that will entail pecuniary responsibility for the shareholders.

The promoters recognise that the time has arrived for a movement of this sort, as the fall in value of the principal product of this coast viz., livestock, has been so great that a corresponding reduction in the cost of its disposal should be brought about. This they now seek to do and confidently look for general support from the farming community, co-operation and not profit being the sole objective of the Union.

Articles of the Association will be prepared and the Company registered with three-fourths of the shares disposed of. Provision will also be made for the retirement of the Provisional Directors and election to fill the vacancies from time to time by the shareholders.

The number of shares to be held by any one person, the Directors propose to limit to ten, and each shareholder to one vote only at any meeting of the Union and every poll that may take place.

Dated at Hawera this 28th day of February, 1889.

FORM OF APPLICATION FOR SHARES

To the Secretary of the Egmont Farmers’ Union. Sir, I hand you herewith the sum of …… , being deposit of 10s per share on …… shares in the above Company, which I request you to allot me on terms of the Company’s Prospectus dated 28th February 1889, and I agree to accept the same or any less number allotted me, and pay the balance as set forth, and I authorise you to register my name as a holder of the said shares and I further agree to sign the Memorandum and Articles of the Association when called upon so to do, and to be bound by the Rules and Regulations of the Company.

Name in full …….

Address ………....

Occupation………

Signature ………..

Dated at ……, this …… day of ……, 1889

Brimming with the satisfaction of knowing they were on the verge of success, a large attendance greeted the executive at a meeting of the Egmont Agricultural & Pastoral Association on Thursday 29 August 1889. Indeed, excitement and expectation abounded as the farmers filed into the Hawera Borough Chambers. Present were: Messrs Dive, Wilson, Babbage, Clemoe, Pilcher, Hunter, Hicks, Ward, Mitchell, Innes, Davidson, Winks, Sutton, R. Dingle, C. McCracken, Yorke, Geo. McLean,

Caverhill, Livingston, W. Rowe, Jesse Barrow, Duckworth, Budge, Riddiford, Robertson, Stott, Shove, Scott, Foreman, Wilkie, Innes and Hastie. The minutes of the previous meeting were read and confirmed. Mr Livingston proposed the following new members: R. B. Hamilton, D. Wilkie, H. Downie, Roskruge, Bryson, G. Glenn, G. Inkster, A. Johnston, C. Parrington, G. Symes, W. Shearer, D. McLean, E. Antrobus, W. A. McCutchen, C. Goodson, D. Buchanan, D. W. Irvine, F. McQuire, H. T. Turner and W. Chubbin. The mood of the meeting was confident and the list was received with cheers from the floor. The President expressed his pleasure ‘that such an addition to their numbers was a very healthy sign’, and the new members were duly elected. Many influential players in the rural community had been brought together and this would have a profound effect as the years progressed.

A public meeting of shareholders of the Egmont Farmers’ Union Limited was held on the same day as the Egmont A & P Association to receive a report from the Provisional Directorate prior to registration of the new company. There were about 40 shareholders present and Mr Dive was voted to the chair. He regarded ‘the meeting as a most important one, as the success of the Union henceforth would almost entirely depend on the conduct of the business by the first directors’. The Articles of the company had been drafted and revised by Mr Barton (solicitor) with a few minor amendments. The secretary read the following report:

Gentlemen, On 28 February last a prospectus was issued for the purpose of forming a company in the

Egmont Agricultural & Pastoral Association Hawera Show day, date unknown.

COURTESY OF MRS GULLIVER AND EGMONT A & P ASSOCIATION

interests of the farmers in the district, to be called ‘The Egmont Farmers’ Union Limited’, and we are pleased to report that 247 persons have applied for 352 shares in the company.

This moment in history was to have a lasting influence on the future. Satisfaction was openly displayed by those present as Mr Dive carefully and deliberately addressed the meeting and spoke of plans for the proposed company. This long-awaited development would have a significant impact on farmers’ income and also provide them with control of their own stock industry. The Memorandum and Articles of Association had been drafted and submitted for consideration. Stockyards at Manaia, Manutahi and Hawera had been inspected and discussions had been held with two existing stock and station companies, Nolan Tonks and Co. and Messrs Budge and Good, to see if advantageous arrangements could be made to use their yards. Mr Dive went on to say:

The provisional directors, since the issue of the prospectus, have held many meetings and spent considerable time in the interests of their brother farmers, with the object of accomplishing the formation of this society, as they recognise the unity among them, and if the members are true to themselves, the advantages of co-operation and the benefits must accrue, we are satisfied, are innumerable.

A board of directors of not less than five and no more than nine was required. The provisional directors suggested that following election of the board immediate steps be taken to invite applications for the position of manager and secretary of the Union and to secure suitable sites and yards and consider the appointment of agents. Mr Dive spoke of offers made by one of their members to erect yards on sites they acquired and another to act as secretary/salesman. However, he said, ‘We consider the board elected by you the proper body to deal with these matters, as they will be the managing body of the Union, as provided by your Articles of Association’. Details were discussed concerning the initial expenditure of £40 and the terms set out by the auctioneers offering the use of saleyards already in operation or whether to build separate yards of their own. Members debated the issue whether they would prefer to have separate yards or not:

Mr Bayly moved that, in the opinion of this meeting, it is desirable to accept the offer of £133 for the erection of yards for the association. It would be cheaper and better, he thought for the society to be independent in this matter, and he made the motion with a view to testing the meeting.

Mr T. Parsons thought that such yards as those would be only about one-fourth of the size required. Sheep yards would be needed, and would require metalling.

Mr Riddiford understood that the smaller yards could be put up very much more cheaply than the cattle yards. £50 would erect good sheep pens.

Mr Fantham thought it would be very much better for the Union to have yards of their own. He would therefore second the motion.

Mr Dive then said an offer of a very good site of about two acres opposite the school had been made at a cost of £6 per annum with a lease of 20 years. Offers of other yards were also discussed. However, Mr John Brown who owned a substantial land holding on the north-west outskirts of Hawera township provided a solution, by offering a lease of four acres to Egmont Farmers’ Union Limited. These yards became known to the locals as the ‘Union yards’ or ‘Fantham’s yards’ and were constructed on land situated on the south side of Glover Road. They would remain the main Hawera saleyards for more than a century.

George McLean stood to support the motion, explaining that he had early reservations about joining the Union. He maintained too much had been made of the auction business and from correspondence he had seen there appeared to be ‘an attempt to ruin the auctioneers doing business in the district’ and that ‘what the Union desired was to protect their own interests and not ruin any man. They wanted to secure fair prices for their produce and to place the products of the land, the

TO BE SECRETS NOW

food for the people, in the hands of the consumers at the least possible cost.’

He indicated that if the auctioneers stood in the way of the movement ‘they might have to be swept away like other parasites’. Mr McLean’s vision and rhetorical prowess would prove to be most persuasive and the meeting hung on every word he uttered. Mention was made of a recent paragraph in the Egmont Star which likened the Union ‘to a stook of three sheafs of corn, of which the farmers were the heads of the grain. When they all laid their heads together they could stand a good breeze of wind’.

He was assertive and spoke with passion:

If the Union was not a success it would be because the farmers failed to give it cordial support. At present the farmer first kept a cow for nine months and then if he was fortunate enough to get a calf he kept that for three or four years. The bullock was killed, and the farmer had to pay freight, in addition to freight he had to pay primage. No one knew what primage was for, or who got it. The 8lbs was struck off each 300lbs of frozen meat in London as a trade allowance. That was not only a loss of 8lbs, but the farmer actually paid freight, freezing, insurance on those 8lbs of which he was also defrauded; why? – because he stands alone and his voice is not heard. The meat went into the hands of the retail butcher who worked with it perhaps two days and got more for that two days work than the grower got for four years work.

There was spontaneous and long applause, then he ended by saying: ‘If the farmers are true to themselves, they will give the Union hearty support.’

For the record, ‘primage’ is a word of ancient origins used by seafaring people, not those of the land, and comprised a duty payable to the master and mariner of a ship, for the use of cables and ropes to discharge the goods of the merchant. It was sometimes called ‘master’s hat money’.

Others rose to their feet to express various points of view. Mr Parsons asked: ‘is it true that the Union proposed to start on the 1½ per cent basis. If so the Union would suffer loss during the first year or two, which would be bad business’. Mr Inkster said, ‘in Scotland the charge was only one per cent’ and Mr McLean continued with the comment that, ‘the whole charge would amount to about two per cent’. He continued to explain that one firm in Hawera undertaking the same work ‘was doing salesman’s business at two per cent’ and it was known that one member of the firm expected £600 a year for his services, so he supposed that the three members of the firm expected to make £1,800 a year at two per cent, whereas the Union did not desire to make any profit. The chairman Mr Dive agreed that the business should be conducted in such a way that there was a small profit to cover contingencies and form a reserve fund, but it would be for the directors to take care that was done. If 1½ per cent was too little it must be raised. Mr Parsons went on to say that ‘he understood that shares had been canvassed for on the 1½ per cent basis, and he thought it too low. If the Union meant to charge more than 1½ per cent, they should state it.’ The discussion continued concerning the percentage to be charged, but were only showing caution with a view to guard against loss in the first year or so. Mr Riddiford, in reply, said: ‘It was stated that 252 shares out of 275 had been taken up. A canvass was made, the number taken up was increased to 264.’

The election of directors then proceeded with the following members duly elected to the board: Messrs: Dive, E. Macrae, M. Hunter, F. Riddiford, Bryson, G. McLean, R. B. Hamilton, G. Glenn, J. L. Perry.

Messrs Bayly, Fantham, Parsons and Inkster were proposed but declined or withdrew to save a ballot. A vote of thanks was passed to the secretary and the provisional directors for work done and the trouble taken floating the company. This then was the beginning of a honeymoon period when farmers in the districts of South and Central Taranaki took destiny into their own hands. Planning personnel for the new venture was going to be critical to success so the appointment of Arthur Fantham as auctioneer/manager was no surprise. A public profile, his extensive knowledge of stock, general farming and Agricultural & Pastoral Associations affiliations combined with determination, a quick wit and genial personality made him the obvious choice. He was made

Arthur A. Fantham’s family in the 1890s, including birthdays. Standing from left: Violet May (May) 15-04-1880, Arthur Albert (Bert) 29-12-1870, Lucy Mildred Eliza (Lucy) 06-08-1873, Mary Ellinor (Ella) 19-02-1872. Seated from left: Richard Audus Gwynn (Dick) 16-10-1881, Francis Louisa (Fanny) 27-09-1866, Arthur Albert (father) 20-05-1842, Mary (mother) 10-04-1842, Emily Constance (Emily) 21-06-1868. Inserts and on floor: David Edward (Ted) 05-08-1876, Fredric Charles (Fred) 29-09-1874, Walter George (Walter) 25-04-1878, Joseph Henry (Harry) 14-08-1869.

PHOTOGRAPHER SQUIRE, HAWERA N.Z. COURTESY OF G. N. NEIL FANTHAM

for the job and although there is nothing to back up or confirm the possibility, it is highly likely that Arthur Fantham played a major role in promoting the idea and orchestrated the whole affair through his influential friends. There is no doubt he was the guiding light and key figure in the company throughout the next 15 years and became indispensable.

The second annual meeting of the Egmont Farmers’ Union Limited was held at the Union Street office in Hawera, on Saturday 21 November 1891, with a large number of members present. Mr W. E. Dive, chairman of directors, congratulated members on the last year’s performance, its chief feature being the very large expansion of business done during the past 12 months, which looks likely not only to be a continuous but an increasing one. The total sum passed through our books this year amount to about £130,000, as compared with £40,665 for the corresponding period of last year, thus showing an increase of business to the extent of about £80,400 for the past 12 months.

An increase in capital by the issue of 1,000 new shares at a meeting of shareholders, held on Saturday 4 April, was duly carried. Mr Dive stated that:

our register now shows that 496 shares have been issued to 357 shareholders, but out of the new issue 32 shares are guaranteed to be taken up by settlers in the Okaiawa district in consideration of your directors building sale yards there on a site offered by Mr Shearer, the money thus gained by the issue of these shares going to pay the expense of building the yards.

TO BE SECRETS NOW

At the time the Stratford saleyards were almost complete and ready for use. ‘Broken stone’ had been purchased to metal the yards before opening. It was considered that many Stratford residents were waiting for the erection of the yards before taking shares in the Egmont Farmers’ Union. During the year both the Hawera and Manaia cattle yards had been ‘pitched with stone, and this improvement has caused the greatest satisfaction to everyone doing business therein’. The chairman presented further information on the year’s activities and trading:

On the 3rd of October last your chairman accepted an invitation from the Provisional Directors of the Moa Farmers’ Union Limited, to attend a public meeting at Inglewood, called for the purpose of electing directors and officers for the newly-formed company. This Union is now fairly started, and promises to be of great assistance and benefit to the settlers in that district. It has affiliated with our Union, and your directors have undertaken to conduct their auction sales for them, they providing the necessary yard accommodation for stock.

Your directors have suggested some alterations in the terms under which your manager is engaged, coupled with a proposal to further reduce the scale of charges, and which, in the opinion of the committee appointed to enquire into the matter, if carried out, will simplify and improve the management. The negotiations, however, not being sufficiently advanced for the directors to report thereon, they leave the matter in the hands of their successors to be carried out if deemed desirable. Your directors think that our prospects warrant a sum being voted as directors’ fees, to be paid them annually, and to be divided by them at the end of the year as they may think fit. …

Arthur Fantham’s popularity and success was very evident when following a sale ‘comprising a large attendance of settlers at the Glover Road saleyards at Hawera on Wednesday 10 August 1892, Mr Gideon Inkster addressed the whole assembly on behalf of the shareholders of Egmont Farmers’ Union Limited’, to acknowledge Mr Fantham, and said: Gentlemen, I consider it one of the most pleasant duties I have had to perform for some time past to present our manager, Mr Fantham, with some slight token in recognition of his services as manager of the Farmers’ Union. Although this token is but of small value, yet, nevertheless, brave and honourable men have always valued tokens of this sort as of far more value than fifty times the value in gold. But what has the Union done for the farmers from the time it started? Well, is it not a fact that we were paying horn 3½ to 6 per cent for selling our cattle? And, when an attempt was made to start this Union, was it not almost impossible to get a suitable man as Manager? And was it not at this critical moment that Mr Fantham came forward and left the management of his own farm to strangers, to allow him to take the management of the Farmers’ Union. You all know what the result has been. Has not the commission been reduced from 3½ and 6 per cent, to 1½ and 2 per cent, and further reductions made on almost everything that farmers required? Who can estimate the enormous amount of good that the Union can do?

What I would now suggest to the farmers throughout Taranaki district is to unite and send home their own agent to look after their own interests, not only in the matter of selling our beef, mutton, and butter, but also to try and raise money at low rates of interest for farmers. I find in the province of Taranaki that there has been borrowed by way of mortgages by the people no less a sum than £660,450 and I believe that the average rate of interest is not less than 7 per cent. Now, I feel certain that if we had our own agents in England, this money could be raised at Home at 5 per cent from time to time as might be required; and there would be an annual saving to farmers of £18,200, I have much pleasure in presenting Mr Fantham with this medal as a slight recognition of his services as manager of the Egmont Farmers’ Union.

Mr Fantham, in responding, said he could not find words to sufficiently express his thanks to Mr Inkster and members for their excellent recognition of his services. He did not think he had done anything to entitle him to such a gift. Had the Union been a failure, he would have worked as hard any Briton worthy to be called a man should do. He had done his best, though he could not see he was entitled to the medal. He could, without hesitation, say that almost every one of the members had endeavoured to make the Union a success and it was working hand in glove with all.

Although he was probably unaware at the time, Mr Inkster’s address encapsulated the basic principle and practice that would in later years be embraced by the co-operative that would emerge as Taranaki’s leading rural trading enterprise. Fortunately the Egmont Farmers’ Union had one of Taranaki’s most competent and outstanding citizens to take it forward into the next century. His personality and entrepreneurial flair would have a profound and lasting influence on the stock and station industry in Taranaki as a whole.

As the turn of events will reveal, ‘there was no show without punch’. Further elaboration on the Egmont Farmers’ Union stock and station agency under the management of Arthur A. Fantham would not greatly progress this history, except to say that it was a highly successful company, establishing cattle yards on the south side of Glover Road at Hawera with sheep yards and a dip on the opposite side of the road. Trading continued from a small head office on Union Street, in the vicinity of what is now the Hawera Town Square, with what appeared the majority of the market share alongside a number of existing partnerships and proprietary companies, like Steuart and Corrigan, Budge and Good, Freeman R. Jackson, Nolan and Tonks & Co., New Zealand Loan and Mercantile, Newton King Ltd and others who came into the district from time to time. Good relations were maintained between directors of opposing stock companies, who often sat on the same committees, boards of local enterprises and organisations. The farming industry in Taranaki was starting to show signs of maturity with a variety of supporting organisations and associations entering the scene. Stock numbers were increasing and so was the infrastructure to support them.

Moore Hunter, a provisional director of the Egmont Farmers’ Union Limited passed away at his residence on 3 February 1897. It was generally known he had been in poor health, having complications from an attack of pleurisy. Moore Hunter, a colonist, was born in the village of Braidwood, Lanarkshire, but at an early age the sturdy independence which he showed in later years began to develop, and he immigrated to Canada. In time the more genial climate encouraged him to settle in New Zealand.

In fact Moore Hunter served as a Trooper with the Kai Iwi Cavalry Volunteers at Wanganui, Nukomaru and Weraroa during 1868–1869, later farming at Waitotara. When this farm was sold he came to South Taranaki in 1873. At the time Hawera was being resettled after the Titokowaru war. A large slice of land running southward and westward of the present town site had been surveyed as railway reserve, and the Government sold it. Mr Hunter, among others, was a purchaser at the sale, acquiring sections forming the nucleus of the then fine estate at Burnside, where he made his home and reared his family. During his long residence in the district Mr Hunter built a reputation as a careful, good farmer, liberal in his ideas of how to treat land and breed stock, the success of which policy was evident in the show rings of the Egmont, Wanganui, Palmerston North and other agricultural & pastoral societies. When he died at Burnside his obituary included these words:

For many years fellow settlers were glad to get the benefit of his business shrewdness and experience on local bodies, and he was successively a member of the Patea County Council, Hawera Road Board, and Hawera County Council; while as to the A & P Society he was not only in evidence at show time, but a valued officer from the inception of the institution. All movements which he considered for the solid advantage of prosperity of the district he supported and was ready to help both with purse and work. Of the Presbyterian Church he was a consistent member and a great helper; none knew his worth and his liberality better perhaps than those associated with him at Communion; and all the bodies which sought to promote the social and moral well being of the people were ever sure

Moore Hunter, provisional director of The Egmont Farmers’ Union Limited, first Hawera County Chairman, and Trooper with the Kai Iwi Cavalry Volunteers 1868–69.

COURTESY OF ARTHUR FRYER

of help from him. Privately there was no man whom one would be less disposed to approach had he a weak case; or more ready, if he had a case really deserving of help.

Mr Hunter had the power and courage of discrimination. As to national politics, he never sought any public office, but his interest was keen and feelings strong. Mr Hunter left a widow and family of eight (and several brothers and other relatives), and a district that would keenly feel the loss of this stoic colonialist. His son Alex would also prove to be a champion of the Taranaki farming industry.

Commerce thrived as livestock numbers grew and Arthur Fryer, Hawera historian, provided an interesting account of reputedly one of the largest sheep fairs held on this side of the North Island. The location was the old saleyards situated at the end of Caledonia Street, Hawera. It was a significant occasion because it happened prior to the turn of the twentieth century and will probably never happen again:

It was a wet February day and the rain barely ceased. There were 35,000 sheep in the sale yard pens, a lot of interested buyers in oilskins, anxious vendors and an auctioneer and his clerks eager to complete selling the biggest yarding of sheep on the North Island west coast. When the photographers Berry and McAllister set up their camera to record the scene there was no sunshine to light their picture.

Instead there was a leaden sky and six acres of pens of patient rain-soaked sheep. Robert Nolan and Arthur Tonks were two brothers-in-law from Auckland who set up an auctioneering firm in Hawera in 1880 and within fifteen years had the largest business of the several farm and livestock firms in South Taranaki. In particular their sheep fair held in February attracted vendors from well beyond the immediate province.

The Sheep Fair of February 18, 1898 was advertised many days ahead in the Hawera Star and dwarfed those of similar fairs advertised to take place in Feilding, Wanganui and Palmerston North. The sheep being yarded were generally a colonial breed originally from the Merinos introduced to

Nolan, Tonks & Co’s, Hawera Sheep Fair comprising 35,000 sheep, 18 February 1898. The largest sale of Lincoln and Lincoln cross ewes to be held in the Taranaki/Manawatu region.

Canterbury and the drier areas of the North Island, Hawke’s Bay and Wairarapa, but had been crossed with Lincoln sheep with the intention of developing a hardy animal with long strong wool that would do well in wet conditions. In Canterbury this cross was developed to become the Corriedale sheep.

The offerings of mainly ewes and lambs at the Hawera sale included Lincoln ewes but the remainder were largely descendants of the mixed breed sheep that were being crossed with Lincolns to strengthen the Lincoln characteristics of large size and robustness. These sheep were ideal for foraging on the rough farms of the time. Most of the farms around Hawera were large. James Livingston farmed Waipapa that when subdivided for sale in 1901 had 1800 acres, Moore Hunter of Burnside, whose homestead was on Waihi Road farmed much of the land bounded by South Road and Ketemarae Road. Other men had taken substantial leases on which they ran large numbers of sheep. Most of the large farms were sold and subdivided within a few years of the 1898 Sheep Fair so that fairs of this size were soon unknown in Hawera. Keith Newland with a lifetime’s experience in the stock industry says that the largest sale he recalls was a yarding of 15,000 sheep.

The sale of February 1898 was a great success and in spite of the weather good prices were achieved led by the line of 1500 4 and 6 tooth Lincoln ewes from H. G. Gaisford of Napier that made up to seven shillings and sixpence a head. Shorn lambs made from two shillings to three shillings and sixpence. The next day Nolan and Tonks had a Ram Fair in the Horse Bazaar where they sold 450 Lincoln and 50 Romneys, the vendors including well-known local breeders M. J. Goodson, G. V. Pearce, Gus Walkinton, W. C. Symes, the Bremer Brothers and E. Maxwell. Here too the prices were good, the top price of five and a half guineas going to G.T. Bayly.

The impact of either too many stock and station firms or the growing strength of one of their number culminated in December 1903 with Messrs Nolan and Tonks severing connections with the Opunake district. A ‘Complimentary Smoke Social’ was attended by about 35 gentlemen at Middleton’s Hotel, Opunake. Mr M. J. MacReynolds was in the chair and he expressed regret ‘at the determination of Messrs Nolan and Tonks to retire from the district’. Throughout the following 15 years the stock and station industry in South Taranaki worked in relative harmony with the Egmont Farmers’ Union, inspired, driven and managed by Arthur A. Fantham. However, a hint that all was not well in the Fantham household became apparent when on 14 November 1903, an advertisement appeared in the Hawera and Normanby Star to advise the public that Nolan and Tonks auctioneers were selling A. A. Fantham’s pure-bred stock. For a number of years Arthur’s health was seen to deteriorate, and his name as auctioneer was noticeably absent from some sale schedules. He did, however, manage to continue auctioneering at stock sales in a limited capacity.

FOUR

No Show Without Punch

Gloom descended over the town of Hawera and indeed South Taranaki when the public became aware that Arthur Albert Fantham, shining knight of South Taranaki, guardian and auctioneer of the Egmont Farmers’ Union and friend of the people, passed away at Hawera Hospital on Saturday 16 January 1904, at the age of 61 years. This was an untimely and sad moment for the farming community. He had been one of the most eminent early settlers and a prodigious supporter of all things rural. South Taranaki had much to thank him for during the 22 years he spent in the district. He had been unwell for some time and it appears his son A. A. Fantham II was officiating at sales on his behalf when in the same newspaper issue of 18 January 1904 containing his obituary an advertisement also appeared:

EGMONT FARMERS’ UNION LTD GLOVER ROAD YARDS, HAWERA Thursday January 28 at 1 p.m., A. A. FANTHAM will sell by public auction as above 1300 sheep in lots consisting of young fattening ewes, breeding ewes and lambs.

Statue of Arthur Fantham at King Edward Park, Hawera, 1922.

COURTESY

Tributes for Arthur Fantham flowed from many sections of the community both near and far to the personality and character of this energetic and committed gentleman pioneer who was an exceptional individual in every way. He would be immortalised as one of Hawera’s outstanding citizens with a statue of him erected in King Edward Park, claimed at that time to be ‘one of the most picturesque public gardens in New Zealand’. The committee that sponsored this project was headed by Mr R. D. Welsh, ‘who was the moving spirit’. The memorial stands today to honour Fantham’s knowledge of the livestock industry which he freely shared.

Due to Fantham’s tremendous energy the progress of the Egmont Farmers’ Union had largely been in the hands of one man and it now seemed inconceivable that anyone could take over the reins. It transpired to be not only the demise of a man, but also that of a company, because only one month on, in February 1904, advertisements appeared captioned Egmont Farmers’ Union Limited, followed by Fantham Bros & Co. and within a few months the name Egmont Farmers’ Union Limited had disappeared altogether. Changes relating to the status of Egmont Farmers’ Union were published in the New Zealand Gazette:

In the matter of ‘The Companies Act 1903’, and in the matter of Egmont Farmers’ Union (Limited).

At an extraordinary general meeting of the above-named company, duly convened, and held at Hawera on 13th day of May 1905, the following special resolution was duly passed, and at a subsequent extraordinary general meeting of the members of the said company, also duly convened and held at the same place on 3rd day of June 1905, the following resolution was duly confirmed, viz.: ‘That the company be voluntarily wound up’.

And at such last mentioned meeting BRADSHAW DIVE, of Eltham, Farmer, was appointed Liquidator for the purposes of winding up.

Dated at Eltham, this 9th day of June, 1905

B. Dive, Chairman.

One year later, in February 1906, issue 13 of the Gazette recorded:

EGMONT FARMERS’ UNION LIMITED:

Notice is hereby given that an extraordinary general meeting of the above company will be held on Saturday, the 24th day of February, 1906, at 2 o’clock p.m., in Messrs Gillies, Fantham and Nalder’s Office, Union Street, Hawera, for the purpose of having an account laid before the company, pursuant to Section 230 of ‘The Companies Act, 1903’ showing the manner in which the winding up has been conducted and the property of the company disposed of, and of hearing any explanation that may be given by the Liquidator, and for the purpose of passing an extraordinary resolution disposing of the books, accounts and documents of the company and Liquidator.

Dated the 6th day of February, 1906

B. Dive. (Liquidator)

During the four years before Arthur’s death the company had failed to hold annual general meetings and consequently complete records of the directorate and company business are unavailable. There was also the matter of a substantial claim against the Egmont Farmers’ Union by Weddel and Co. Ltd, of £2,000, that if found in favour of Messrs Weddel and Co. would be transferred to any new owner. The assets of Egmont Farmers were, however, purchased by the late Arthur’s son, A. A. (Bert) Fantham II, and the company continued to operate under the name of Fantham Bros. & Co. for 11 months using the facilities and premises of the Egmont Farmers’ Union trading

Arthur William Gillies, senior partner in the firm Gillies and Nalder. First honorary general manager of Farmers’ Co-op, 1914–16.

COUNCIL

TO

SECRETS NOW

as auctioneers and general commission agents. Early in 1905 two highly esteemed and respected gentlemen, Arthur William Gillies and Ernest Edward Nalder, were invited to join the partnership and trading was resumed under the name of Gillies, Fantham and Nalder. Some property owned by Fantham Bros. & Co. and leased by the former Egmont Farmers’ Union, including the ‘Union’ saleyards, situated on Glover Road were transferred to Gillies, Fantham and Nalder. Other saleyards situated at Stratford, Manaia, Hawera and Okaiawa, including office furniture, were advertised ‘for sale by tender’ and purchased by the partnership. In scribed minutes relating to this purchase between A. A. Fantham II, of Fantham Bros & Co., Ernest Nalder and Arthur Gillies the partnership set out details of their offer:

Saturday Dec. 24/04

Agreed after having inspected the E.F.U. Ltd., saleyards that we value same at the following:

Stratford yards £400 Manaia yards £100 Hawera £200 Okaiawa £50

Office furniture £10 Total £760

and to offer E.F.U. Ltd, in reply to their advertisement for sale by tender, the sum of £600 cash for the lot but with power (if tender not accepted), for A. A. Fantham to offer up to £800 without further reference to Gillies and Nalder.

Arrange with J. R. Stewart not to tender but give us £100 for Manaia or such proportionate increase as would accrue from above written figures. E.N. A.A.F. A.W.G.

In addition the partnership purchased one other notable property:

Messrs Gillies Fantham and Nalder report having purchased from the Executors of the Estate of the late A. A. Fantham Esq. the paddock known as the Turu Turu Paddock. This paddock contains 48 acres and includes the famous Turu Turu Mokai pah. Some little time ago the Tourist Department were negotiating for the purchase of this historic site for scenery preservation purposes. An area of 13 acres including the pah site being required.

However, we understand the firm will not stand in the way if at any future time it is thought advisable for the Crown to acquire this historic spot. The firm we understand has purchased the land for the convenience of clients having stock for sale. The paddock will be securely fenced & as it is well watered by the Waihi stream & handy to the Union Yards it should prove of the greatest assistance both to the firm and to its clients. We understand the price paid was £25 per acre cash.

A. G. Goodson, William Protheroz and Tom Ash were engaged as agents during 1905. The hopes and aspirations of many enthusiastic South Taranaki farmers to own and operate their own stock and station enterprise were now gone and the late Arthur A. Fantham’s and indeed Egmont A & P Association’s dream some 15 years earlier were now all but distant memories. In June 1905 Bert Fantham (A. A. Fantham II) approached the partners, and said that ‘he was practically bankrupt and he wished to file and go out of the firm’. Apparently the £1,000 Bert Fantham had invested in the partnership of Gillies, Fantham and Nalder was Trust money and his co-trustee was now demanding repayment. This placed the whole partnership into somewhat of a dilemma as the agreement between the three participants had not been completed. The position was as follows:

Mr Gillies had paid in £3000 on Feb 1st & in consequence of the partners not having completed had withdrawn £2000, replacing the same with approved guarantees.

Mr Fantham had paid in the £1000 alluded to above and in addition £1500 of approved guarantees.

Mr Nalder had paid in £1000 and owing to a dispute with the Bank as to the form of guarantee had retained the 1st week in June when he completes by paying in cash £2000.

There was an acrimonious end to the partnership and it was dissolved from 31 January 1906. The very successful proprietary stock and station business became known as Gillies and Nalder who, it appears from South Taranaki District Council records, purchased the previously leased Hawera saleyards on Glover Road from the Estate of J. Brown. In 1906, 45 acres of land situated on the south side of Glover Road, surrounding the existing four acres of saleyards on Glover Road, were subdivided into ‘suburban building sections’ and offered for sale by public auction by the West Coast Farmers’ Trading Association on behalf of the Trustees of the Estate of the late J. Brown Esq. They were said to be ‘the richest quality, and is higher than the roads, thus assuring dry building sites … Roads are being formed through the property and every section will have good frontage.’

The ‘Roads’ mentioned was in fact the formation of what became Egmont Road (later Street), Hawera. Two acres of land on Egmont Road backing onto the south side of the Glover Road saleyards had also been subdivided into eight sections. However, it appears that these allotments were not sold as residential sections at the time and were purchased from the J. Brown Estate by Gillies and Nalder to amalgamate with the Glover Road saleyard complex. The saleyards between Glover Road and what is now known as Egmont Street continued to operate for almost another century before the two acres on Egmont Street were sold for residential sections and the four acres on Glover Road for commercial and retail development.

Almost two years elapsed, yet the loss of what had been a shining jewel in the crown of the South Taranaki farming fraternity had not disappeared altogether. It took just one small spark to rekindle the passion that had once created the now defunct Egmont Farmers’ Union Limited. When a notice to farmers appeared in the Egmont Star on 23 December 1905, it re-ignited what had been a smouldering issue into a burning passion in the hearts of many farmers:

NOTICE

On and after January 1st next the rate of Commission chargeable on all Cattle and Sheep sold at our Yards will be 4%. Paddock Commissions remain as heretofore.

NOLAN TONKS & CO.

GILLIES, FANTHAM AND NALDER STEUART & CORRIGAN.

Commission rates had been in the vicinity of 2½ per cent. This significant increase would negatively impact on the financial returns farmers received for stock. At this juncture for the record, it is important that we provide a note of clarification. Samuel Bradley Corrigan of Steuart & Corrigan, stock auctioneers, should not be confused with the family of James. R. Corrigan in following chap ters of this history. S. B. Corrigan was born in Geelong, Australia in 1858 and came to New Zealand in 1872, residing in the Manutahi district. He returned to New Zealand sometime around 1894 to farm at Otakeho and following establishing a partnership with a Mr Steuart bought out a competitor the firm of Budge and Good at Manaia. There is no kinship to Ross and Claire Corrigan’s family who have had farming connections in South Taranaki throughout the past century.

It’s Dead Now – Let it Rest

Christmas 1905 was on everyone’s minds and no doubt the slogan ‘goodwill towards men’ and other seasonal charitable thoughts were somewhat dashed by an untimely announcement in the local press. What appeared at the time exorbitant commission rates charged on the sale of stock by proprietary auctioneers had been the catalyst that had driven the desire of farmers in the 1880s to own and operate their own stock and station company and this recent notice by auctioneers to increase their charges to four per cent was possibly the straw that broke the camel’s back.

One of the late Arthur Fantham’s employees, James Randall Corrigan, ‘a solidly built, robust individual, known for his repartee, forthright debating style and personal generosity’, and incidentally a fellow Cantabrian, arrived in Hawera with his bride of four years, Annie (née Troup) in 1893. His father was Samuel Corrigan, a British Army pensioner and carpenter, James was born at Woodend, North Canterbury on 10 July 1865. The Corrigan’s had immigrated in 1863 to join relatives in North Canterbury and around 1878 moved to Tinwald. James left school at ten years of age. He was employed mainly in farm work, including ‘a stint’ on Longbeach Station, where he acquired a good knowledge of stock. At the time of his marriage on 12 June 1889, he had a small butchery in Tinwald. His Scottish bride, Annie Troup, had come to New Zealand to join a married sister and worked as a governess. The newly-weds farmed at Lake Flat, near Lake Ellesmere, but drought, flooding and salinity brought failure and so in 1893 the move was made to Hawera in the North Island.

James R. Corrigan, prime mover of the proposed Egmont Farmers’ Co-operative Association Ltd, 1906, and director of The Farmers’ Co-operative Organisation Society of New Zealand Ltd 1914–15.

COURTESY OF ROSS

Assisted by an ‘extraordinary ability at mental arithmetic’, James Corrigan studied the stock and station trade from his employer and mentor Arthur Fantham, who probably helped him buy his homestead block known as ‘The Oaks’ at Hawera, which is still owned by the Corrigan family. Following Fantham’s death he began stock dealing on his own account. He benefited from the rapid development of pastoral farming in South Taranaki with the advent of refrigeration and rising export prices. During his years in the industry he made numerous ‘big deals’, once shipping 4,000 sheep from Picton to Wanganui and on another occasion driving 4,000 cattle in mobs of 360 to 400, from Hawera to Hawke’s Bay. However, he also traded, almost daily, in small parcels of stock, and it is said that in six months during 1905 he turned over 11,231 cattle at a profit of £552. His close association with the local stock industry provided him with insight into what was becoming a matter of particular concern to him and a number of his

colleagues, that he decided to take matters into his own hands.

Corrigan’s close association with Fantham and the Egmont Farmers’ Union had provided him with a sound and appreciative knowledge of the advantage of co-operative principles and in the delivery of fair and equitable prices in the transaction of business relating to the stock and station industry. Farmers were now without the Egmont Farmers’ Union as a sympathetic ‘watch dog’, and proprietary companies were beginning to reap the benefit of rapid development in pastoral farming in South Taranaki. This most recent attempt at what could be termed in today’s language as ‘price fixing’ by a number of local stock dealers sent shockwaves throughout the farming community. James Corrigan was without doubt one of the prime movers in the resulting letter. He wrote to the editor of the Egmont Star on 30 December 1905:

AUCTIONEER CHARGES

(To the Editor)

Sir, In your issue of 23rd I notice the auctioneers throughout the district have an advertisement stating that after January 1 their commission for selling stock will raise to 4 per cent. I think it is time the farmers of the district formed a Farmers’ Co-operative Association similar to the Canterbury Farmers’ Co-operative Association, or else at no very distant date we will be like what the Jews are in Russia at the present time. To begin with they state that the paddock commission will be the same as before, namely 2½ per cent. Now, I maintain if 2½ per cent is fair for a paddock commission 2 per cent is ample for a yard commission. To earn a paddock commission the auctioneer very often has to hire a horse and gig and drive 10 or 12 miles to show the stock, etc. to the would be purchaser, very often without doing any business. Yet he is satisfied with 2½ per cent, but if the farmers get up at 4 o’clock in the morning, and drives his stock 10 or 12 miles to the sale yard and saves the auctioneer the expense of the trap, agent etc., he has to pay four per cent. The farmers of the district have the remedy in their own hands. They have the ball at their feet if they only choose to kick it. If they will only co-operate together they will be able to dictate to the auctioneers what to charge instead of the auctioneers dictating to them. The farmers can get on very well without the auctioneers by co-operating and running their own business. But I fail to see how the auctioneers are going to do if they lose the support of the farmers, as every business in the district depends on the farming community. My advice to the farmers of the district is to co-operate together and have a voice in matters relating to their own welfare as we have been dictated to long enough by trade unions, labour unions, etc. and lastly, auctioneer unions. Thanking you for inserting this – I am, etc.

J. R. Corrigan

James Corrigan had decisively dispatched the ball back into the auctioneers’ half and the game was about to begin in earnest. There was no rest for James during the Christmas period. He was determined to address what he considered to be unfair and unwarranted fees being imposed on farmers in relation to the sale of stock. A meeting of farmers was planned in the Opera House, Hawera on Saturday 6 January 1906. On New Year’s Day of 1906 an entry in his diary read: ‘Sent 42 letters to Farmers to attend co-operative meeting.’ On Wednesday 3 January 1906 he wrote:

Interviewed Messrs Gibson, Bach and Spence re supplying Members Farmers’ Co-operative with goods from their establishments at lowest current rates and allowing them 5% rebate at the end of the year. Bach the Saddler and Spence, Draper agreed verbally, Gibson had to answer by letter. Afternoon went to Manaia and Otakeho agreed with Paterson Blacksmith, Armitage Draper, Gilmour Grocer and Ironmonger Manaia to give farmers belonging to the Association 5% rebate at end of year on all goods purchased. Storekeeper at Otakeho agreed to do the same.

On Thursday 4 January he wrote:

Went to Hawera and did some business relating to Farmers’ Co-operative Association. Afternoon took 4 cattle from Fantham’s to Taylor’s dairy and 37 head of heifers etc to Ikis place also 2 calves sucking their mothers. Went round to Puketea and called on Mr Tarrant relative to Farmers Co-operative…

With other supporters Corrigan continued to solicit rebates and concessions from local merchants in Hawera, Eltham, Stratford and elsewhere and drum up support amongst the farming community for the proposed new Farmers Co-operative Association. On 6 January 1906 between 60 and 70 landowners and farmers arrived at the Opera House in response to advertisements and numerous letters sent out to selected people. The meeting was convened for, ‘those interested in forming a Farmers’ Co-operative Association to protect the interests of farmers and for the general welfare of the district’. Well known James (Baldy) Davidson was in the chair and Mr J. Guerin acted as secretary pro tem. Corrigan apologised for the absence of Mr Lambie of Pihama who sent a telegram wishing the movement success, and apologies were received from Messrs R. Hicks and Henson.

Chairman Davidson in his opening address said he thought it time that the farmers did something to protect themselves. He alluded to the fact that the auctioneers were ‘doing very well’ and indicated that had they not increased the commissions by one per cent ‘everything would have gone on as usual’. He then introduced James Corrigan as ‘the prime mover’ to address the meeting. James spoke from the heart. He had given considerable thought to the concept and had worked tirelessly to enlist as many prominent farmers and local identities as possible to strengthen the proposal and get the co-operative off to a good start. He spoke about discussing with his friend Fred Livingston the possibilities of an organisation such as a co-operative and the effect it would have on the farming community of South Taranaki and how the South Island Canterbury Farmers’ Co-operative Association had been so successful. He had enlisted the support of James Davidson, an old settler, to call a meeting. Within the boundaries of Otakeho to Auroa, and from there to Stratford and then across to Mangamingi and Kakaramea farmers were paying ‘in wages to auctioneers’ agents and auctioneers £6,000 yearly, and the increase of one per cent, in commissions would make a difference of approximately £7,000 a year to the farmers’.

Davidson asked what reduction had been made when the Egmont Farmers’ Union commenced its operation. Corrigan replied that he was not in the district at the time and said,

the Egmont Farmers’ Union had been started on the wrong business lines. It did not finance farmers at all. If it had been run on good lines it would have been a success, as the district was of the best. First of all they would be required to appoint a Board of Directors, who would employ a manager for the business. Rotten as the Egmont Farmers’ Union was it kept the prices down while it lasted, but immediately it was knocked out up went the commission. The auctioneers had increased their commissions to 4 per cent, and in a short time might want 5 per cent. The Canterbury Farmers’ Association charged 2½ per cent commission on stock sales, and refunded 25 per cent of the commission earned during the year.

James told the meeting he would have preferred that local auctioneers had made the charge eight per cent and that would have brought farmers to their feet smartly. He then read a paper written by Mr J. T. Quin, relating to a formula he had prepared to raise capital for the venture. His idea was to start a company with 5,000 shares at £10 per share, shares to be called up as follows: £2 per share on application and £3 on allotment. He suggested men be appointed to canvass house to house to solicit the purchase of shares and he proposed that another meeting be held in two weeks to gauge the level of support being received from the farming community. He said that ‘if £1,000 of shares had been taken up, the company should be floated’. He summarised thus:

The objects of the company should be to look after the farmers’ interests in general, sell stock of all descriptions on 2½ per cent commission and finance bona fide members of the association if deemed advisable by the controlling directors. Annually after all expenses had been paid and allowances had been made for depreciation and ‘sinking fund’ any profits should be divided pro rata among members who had transacted business with the Association.

It was suggested that the Association would be controlled by a board of nine paid directors, ‘who should employ a competent manager’ who would be solely under their control. Quin thought that

if the members loyally supported the Association there was no doubt that 25 per cent of the money earned in commissions would be refunded at the end of the year.

If there was a division between the gentlemen who had promulgated this particular co-operative concept it was now to be aired. The intention of sponsors of this venture was to establish a cooperative stock-dealing enterprise without getting into the sale of merchandise and, reading from Quin’s notes, James was about to touch on this rather delicate subject: ‘Instead of starting stores, members of the Association would be able to get a rebate of five per cent on purchases from storekeepers and other business men in the district’. He pointed out that ‘the farmers should not be gulled by the other auctioneers selling at the same rate, as by supporting the Association they would get a rebate of all the profits’. James Corrigan concluded Mr Quin’s paper by reading the following:

The present auctioneers say farmers will never support the association, as they will fall out among themselves. Now show them by combination and the sinking of petty jealousies what you can do.

Chairman Davidson moved that a provisional directorate of 12 be appointed ‘to work up the matter’. The motion was seconded by Mr Corrigan and it was carried without dissent. Corrigan said that he had interviewed most of the major storekeepers in the district and all were willing to give members of the proposed Association five per cent rebate on purchases, ‘so he did not think it would be necessary for the association to start a store at the present time’. Mr Quin had spoken to Mr Wilkinson (Eltham) and compared his prices with the Canterbury Association’s store and the prices were about the same. He then presented letters from John Gilmour (Manaia), T. W. Armitage, W. Spence (Hawera) and Cameron and Son (Hawera), all of whom expressed willingness to allow members of the Association five per cent discount. Davidson commented that, ‘the terms seemed fair’, and he had no doubt that other storekeepers along the coast would make the same concession.

Mr McKeown asked from the floor if the auctioneers were represented at the meeting. Someone remarked, ‘that is the auctioneers’ business’. ‘Have they been asked to attend?’, asked Mr McKeown. Corrigan replied that auctioneers were at liberty to attend had they wished to do so. McKeown said the members did not grasp the situation fairly. He did not want to ‘wear two faces’ and thought both sides should be represented. He continued, saying, ‘before the directors were appointed the auctioneers should be invited to attend, so that they would not be able to say afterwards that they were not given a chance’. Chairman Davidson said:

I will not ask them to attend and that is straight. ... ten to twelve years ago the farmers formed a union, and immediately that became defunct the auctioneers increased the commission rate and never said’ ‘by your leave’. Why should we consider them now?

Spontaneous applause erupted when the chairman said that he thought Mr McKeown was a little premature in asking the meeting to invite assistance from the auctioneers. McKeown claimed that he was not rightly understood; his sympathies were with the meeting, and they could have his subscription then and there if they wanted it. What he thought, however, was that the auctioneers should be represented and made acquainted with the views of the farmers, and if they still persisted in the proposed increase then the hands of the association would be strengthened. Corrigan joined the debate, saying that ‘the farmers could do without the auctioneers, but the auctioneers could not do without the farmers’.

The meeting continued. Provisional directors were elected: J. T. Quin (Fraser Road), J. F. Pease (Hawera), R. Lambie (Pihama), J. Ure Murray (Ngaire), A. Alexander (Normanby), A. Wills and F. Livingston (Tokaora), J. Davidson (Taiporohenui), G. V. Pearce (Kakaramea), C. Hawken (Waihi), A. McKeown (Pihama), J. H. Sellers (Inaha), H. Miller (Makino), B. Lysaght (Mokoia), J. R. Corrigan (Hawera), Gamlin (Manaia). Mr Dive suggested anyone willing to join should send in their names straight away, and if the provisional directors got sufficient support in the way of canvassing,

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necessary documents should be prepared before the next meeting. Mr Dive moved, ‘that the shares be £10 each and this was seconded by Corrigan who said he ‘did not think it would be necessary to call up more than £5 but it would be prudent to have the other £5 there’. Mr Wilkie then entered the arena by stating that ‘it seemed they were arranging to buy their coat before they knew what sort of coat they were going to have’, and thought the 1,000 shares at £10 each would be quite inadequate. Corrigan then said, the idea was to have 5,000 shares at £10. This was followed by Mr Wilkie saying that they were sending men out canvassing without first ‘coming to something definite’. Members of the provisional directorate were asked to remain in the hall after the meeting.

Discussion continued at the meeting regarding the now defunct Egmont Farmers’ Union, Mr J. Baker saying that, ‘it had always been a mistaken idea that the late Union was a company of farmers. It was only a company running saleyards’. The chairman followed up this remark by saying: ‘It’s dead now; let it rest’. Some present had not discounted the possibility of the new co-operative including merchandise as part of the business although the prime aspect would be to protect farmers in connection with the commission payable on stock sales. A vote of thanks on a motion of Mr Canning was carried unanimously and votes of thanks were passed on to Mr Davidson for convening the meeting and Mr Guerin for acting as secretary. The meeting rose.

PROPOSED PROSPECTUS of the

EGMONT FARMERS’ CO-OPERATIVE ASSOCIATION LIMITED

CAPITAL:- £50,000, in £5000 Shares of £10 each.

Payable as follows:-

£2 Share on Application, £3 Share on Allotment, and the balance by Calls as the Directors may think fit, but not exceeding £1 per Share every three months.

The Provisional Directors are:

MR J. DAVIDSON, Farmer, Hawera, J.P. MR MURRAY, Farmer, Eltham

MR JAS. THOMPSON, Farmer, Ngaire MR GAMLIN, Farmer, Manaia

MR. J. T. QUIN, Farmer, Eltham MR F. LIVINGSTON, Farmer. Waimate Plains

MR A. T. WILLS, Farmer, Hawera MR SELLERS, Farmer, Waimate Plains

MR B. C. LYSAGHT, Farmer, Mokoia MR G. V. PEARCE, Farmer, Kakaramea

MR C. HAWKEN, Farmer, Hawera MR J. R. CORRIGAN, Farmer, Hawera

MR ALEX. ALEXANDER, Farmer, Waihi MR McKEOWN, Farmer Pihama

MR R. LAMBIE, Farmer, Pihama MR H. MILLER, Farmer, Makino

The BANKERS (pro tem) is the BANK OF AUSTRALASIA, Hawera

The SOLICITOR (pro tem) is Mr H. CAPLEN, Hawera

The SECRETARY (pro tem) is MR J. A. TURTON, Hawera

The objects of the proposed Company are fully set out in the draft Memoranda of Association and Articles of Association lodged with Mr J. A. Turton, Secretary (pro tem), at his office, Borough Chambers, High Street, Hawera, and will be found to include, in more or less legal phraseology, the following details:

The objects of the Association are for the purpose of assisting the farmers generally.

1. For selling all livestock on commission of cattle, horses, sheep and pigs, and for marketing all other farm produce on the best possible markets at the lowest rates. [continued 2 to 21]…

PROSPECTUS AND FORMS OF THE APPLICATION may be obtained from the Company’s Secretary or Bankers and all applications should be filled in and signed by the applicant and forwarded to the Secretary.

Dated the … Day of …, 1906

The objects of the company were enumerated one by one, setting out a wide range of stock and station activities, merchandising, agency arrangements and other financial facilities the new company intended to provide and undertake. Included were such possibilities as assisting dairy companies in the consignment of butter and cheese, wool, mutton and beef on the English and other world markets, together with making ‘liberal cash advances on same’, and almost every other accommodation a farmer might need in the operation of his farm.

All in all it had been a successful meeting, although there was a hint that numbers attending had not quite met expectations; the Opera House had the capacity to seat hundreds of people. Perhaps not enough time had been allowed to organise such an important event, or possibly the time of the year was against them. However, those who committed themselves to this cause continued to solicit members and interest throughout the district in the weeks ahead. The subject, however, became the source of argument and repartee in press columns during following weeks. Some letters to the editor of local newspapers illustrate the reasoning and the intensity of the debate and among opposing parties.

James Corrigan and his supporters had shown their hand and local proprietary stock and station auctioneers entered the fray, no doubt with some fear and trepidation because of the risk of losing considerable business if the proposed co-operative gained enough support. One of their number, a most experienced member of the industry Arthur W. Gillies, the senior partner of Gillies, Fantham and Nalder, who acquired the remnants of the Egmont Farmers’ Union Limited book of business, a former chairman of the North Otago Farmers’ Co-operative Association Limited where he had chaired the board for three years, decided to provide the district with his opinion on the subject. Mr Gillies was born and educated in Dunedin. His father, the late Robert Gillies, owned the firm ‘Gillies and Street’ and was proprietor of the Awamoko Estate near Oamaru and was a one-time Member for Bruce in the House of Representatives. Arthur took up farming as a career and became the owner of a sheep station in North Otago before selling up and arriving in South Taranaki to set up business as a stock and station agent. He now entered the arena with a letter to the Hawera and Normanby Star:

THE FARMERS CO-OPERATIVE

To the Editor.

Sir … In connection with the formation of the above there appears to be a good deal of misconception. I know that I am an interested party, but this will not prevent me from stating the truth, and as I was Chairman of Directors of a most successful co-operative association for four years I can speak with some knowledge. The proposal made on Saturday that the association should not embark in general business other than in auctioneering and commission business will not work. No co-operative association has succeeded by doing a purely auctioneering and commission business. We tried it and made excellent arrangements with local business men, but it was no good at all, and we had to launch out into heavy stocks of groceries, ironmongery, drapery, boots, harness, millinery, implements, furniture etc., and it was the enormous profits made on some lines of merchandise that enabled us to pay any bonus at all on commissions. We found that in selling stock farmers will not stick to their association, and in grain (an enormous source of profit in the south) the shareholders will go to the merchant who can give the slightest fraction of a penny more than the co-operative. But it was not so in merchandise, and anyone who reads the balance sheets of the profits compared to the small amount (comparatively) earned on commissions. The result generally has been that while auctioneering firms have been affected more or less, grocers, ironmongers and drapers have been terribly injured and in many cases knocked out.

Some think that the co-operative will reduce commissions. We did not do so in the south. If we could we would have raised them. If we bought corn sacks in India for 4d we were only too glad to sell them to shareholders at 7d and so on in every line. A great co-operative bought and still buys thousands

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of bushels of grain from its own shareholders, charging them commission, and the thousands made go to swell the general profit and loss account – not to the individual farmer. The reason for all this is an absolutely sound one. Unless a co-operative is to be snuffed out it must be run to make the greatest profit out of its shareholders. The directors, the manager and the enormous staff (which is absolutely necessary on account of the complicated system of bookkeeping required in connection with the bonus system and other diversified stock kept) have all to be paid before any bonuses start. The statement that private sales should be at a higher rate of commission than auction sales is a ridiculous one. In a private sale an auctioneer selects his buyer; at auction he has to sell to the highest bidder, and he cannot avoid losses. In the south we had to sell at the ruling rates – 2½ per cent private and 2½ per cent auction plus advertising whether the farmers advertised or not and plus yard fees, 1d a head on sheep and 6d on cattle sold or unsold. But we did little at auction. With the exception of Burnside and Addington, where the terms are strictly cash, stock is not sold at auction to the same extent as in the north. We charged 5 per cent on all horse sales, 2s 6d entrance fee and advertising. We charged 5 per cent on all clearing sales. On a clearing sale I had the co-operative charge me 5 per cent plus advertising 42 pounds, plus the cost of conveying the auctioneer to the farm. I will show the account to anyone. A great difficulty in starting a co-operative is getting the share capital. The clever man takes up one share, thus getting any benefit in the way of bonus without risking any capital.

No one will invest in co-operative shares down south purely as an investment. The rate paid on the dividend is in the hands of the majority of shareholders, and there is a constant fight going on, the farmers wanting all the profits in bonuses without paying anything but a nominal dividend. Shares in the best co-operatives, even though bolstered up by premiums, are not easily sold. One word more. A co-operative can undoubtedly be formed here, but even if well managed it cannot be as successful as the southern association, for the conditions are widely different. The corn sacks, grain, binder twine, grass seed and produce of all descriptions raised in lands where one fourth of the farms must be kept under the plough alone make a vast difference. Finance is always with the best co-operatives a great difficulty but the one thing always insisted on is a directorate composed of wealthy men, who must sooner or later go to the bank and give a joint and several guarantee. Although I had left the cooperative and the incoming director had taken my place the bank had retained my name as a guarantor for 12 months. This guarantee is a good thing, it prevents the shareholders electing an impecunious man to the Board, and it makes the Board very careful of its advances and bills and its policy. Directors should be very well paid.

I am etc.

A. W. Gillies.

P.S. The obliging livery stable keeper who is helping the co-operative movement will be interested to hear that the co-operative runs the biggest and best livery stable in town for the benefit of the shareholders on the bonus system. A.W.G.

Many supporters and proponents of the co-operative venture were breaking new ground and had little knowledge or experience in matters pertaining to such a large and diverse commercial undertaking.

History would prove that trading in livestock and merchandise would not be as easy as first thought and surviving the forever-changing agricultural climate, mechanisation and technology combined with the pressures coming from other conglomerates would require considerable patience and skill in the years ahead. One of Hawera’s early storekeepers immediately jumped to the defence of the new co-operative:

EGMONT FARMERS’ CO-OPERATIVE ASSOCIATION (To the Editor)

Sir, Mr Gillies’ letter in Wednesday’s STAR calls for a reply. I only propose to deal with one statement that Mr Gillies makes. He affirms that to be successful the proposed Association ‘must’ keep stores and stocks of general merchandise for the supply of the retail wants of shareholders. Mr Gillies admits that he writes as an interested party. Now I, having sold right out of business in Hawera, must be regarded as a disinterested writer.

I state definitely that the course that Mr Gillies suggests for the proposed Association is the one thing they should steer clear of. Let us look at the facts as regards co-operative stores throughout the flourishing Taranaki district.

Facts are stubborn things, and past experience will no doubt guide the policy of the proposed Association. Starting at New Plymouth, the capital town, a very strong Co-op was formed there with a large town and country share-list. Under an energetic manager and during the past twelve years of good times it managed to rub along. It did not while it could make a good profit on consigning butter to London. The competition for butter grew keener and now this Co-op has had to close its doors and go into liquidation. It will be many long days before the guarantors of this concern are free from their obligations.

Regarding the Stratford Co-operative Store, it is no secret that at the last two annual meetings the question of discontinuing the business was very warmly debated. Then we come to the late Eltham and Mangatoki Co-op. This is nearer home and everybody knows its history. Run through good times with very capable directors, it was glad to sell out at great sacrifice to private individuals, and here again the directors are by no means ‘out of the wood’ with their obligations. The words of Mr Astbury, one of the directors, printed in the Hawera Star, sum the position up rather aptly. He says: We found that a cooperative manager takes, of course, his full wages out of the business entirely, a proprietor, when the money is tight and competition keen can, and does, leave his wages in the business and hence compete against co-operation. A manager, and I say it with all respect, will never put the thought into the business that the owner will. Then there was the old Hawera Co-op store, ask any of its promoters if they will sign a new guarantee and take up fresh shares. Kaupokonui used to be quoted as a model of co-operative storekeeping, but with the increased competition for the purchase of butterfat methinks these directors would gladly be rid of the responsibility of financing the store. On a large turnover last year I understand that a profit of about £30 was shown on paper. What use is that kind of business to guarantors and shareholders. Ask Mr Davidson (one of the prime movers in the proposed Association) if he would care to again enter into retail business with excessive competition. High rent, rates, Employers Acts, Shop Acts, high wages etc., and I can well imagine the sagacious shake of his head and canny smile as we all know so well.

I am quite willing to grant that where an Association buys and exports great quantities of such lines as grain, wool, frozen meat, butter etc, that a profitable business can be carried on, but these lines do not exist in quantities here, and butter exporting is already on a good footing. Then you say where is the difference, how does the average business man pay his way and make progress at all? I will tell you. It is no trade secret. He gets up at 6:30, he has his shop open at 8 o’clock, puts all his energy and time into his business during the day and then after tea he works at his indenting, ordering, letter writing, book-keeping, etc till 10 or 11 o’clock and this he must do five nights a week if he wants to make any headway at all. When he starts in the business he draws the smallest possible, leaving the balance in the business every week. Also all his profits, however small, are constantly being reinvested in stock. Then the greatest difference of all is the difference between his own personal attention to and the supervision of every detail as against a manager and assistants whose interests begin at 8 o’clock and end at 6 o’clock. The large so called co-operative stores at Palmerston North and Masterton are only co-operative in name as the controlling interest and management have in both cases long since passed into the hands of wealthy Wellington merchants.

With other points in Mr Gillies’ letter I do not propose to deal, not having knowledge of them.

Thanking you for space. – I am etc

F. J. Wrigley

The swords were drawn, that drew yet a further response from the ‘prime mover’ of the proposed co-operative Mr Corrigan: CORRESPONDENCE.

EGMONT FARMERS’ CO-OPERATIVE ASSOCIATION (To the Editor)

Sir, I must ask space to reply to Mr Gillies’ letter of the 15th. I think as for the store keeping and merchandise part Mr Wrigley has answered it fully so far as he goes. I would like to quote Mr Gillies a paragraph out of the Chairman’s annual report of the N.Z.F. Co-operative of Canterbury, to show him that he is all wrong in his idea of profits on merchandise going to pay a bonus on commission

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earned. ‘One item alone, the 4 per cent. Bonus on purchases this year, will take between nine and ten thousand pounds, and after this is paid the purchaser will pretty well have had nearly all the profits on merchandise.’

Yet this institution refunds 25 per cent of commissions earned to its shareholders pro rata. As to the joint and several guarantee, this institution does not give a joint and several to its banker, and I can tell Mr Gillies I have made inquiries, and the Egmont Farmers’ Co-op. banker does not require a joint and several either.

Mr Gillies’ letter puts me very much in the mind of a lawyer who has a very poor case, and the only thing he can do to keep up his reputation is to abuse the other side. As to the commission and charges (£1 15s) for selling the £25 horse, I may state in fairness to Mr Gillies that it was not his firm I was alluding to, but I can assure Mr Gillies there was no mistake about it, as the person interested challenged the firm with the charges and they stated the charges were perfectly correct.

Another thing I can tell Mr Gillies: A farmer who was not giving up dairying, but had fifty more cows than he needed to milk for the season, got the same firm to advertise under their ordinary weekly advertisement, ‘On account of Mr. So-and-so, 50 dairy cows’. He brought the cows to their yards and sold them, and when he got his account sales he was charged advertising ten pounds. I can quote hundreds more instances if necessary, so Mr Gillies will see these are not exceptions but the general rule among auctioneers. Mr Gillies states I have had the auctioneers working for me. Well if it were true I would take it as a compliment, as I don’t think any other man in Taranaki could say the same thing. To show Mr Gillies how hard they have worked for me I will have to go into my private business which ought not to have been brought into a public discussion I am taking a period from February 1st 1905 to July 31st 1905. Between these dates I put 11231 head of cattle through my hands. I may state, so as not to mislead that I purchased none further south than Turakina. Of these 9447 were purchased from auctioneers, either in sale yards or privately from their agents. However so as not to mislead I am reckoning as if they were all paddock commission (but I know the majority were purchased by public auction). The auctioneers got £590 commission on my purchases, I paid £840 commission for selling. I also paid droving, railway charges and expenses £821 12s and I made a net profit for the six months of £551 17s. So Mr Gillies can see how hard I have had them working for me, for while I make £551 17s and take all the risk they make £1430 and take no risks. No wonder they have to take their week’s rest at Christmas to recoup their health. Now I do not intend to reply to any more of Mr Gillies correspondence, but I am going to ask him one question. The auctioneers in the district have not carried on stores or merchandise businesses, so we will take the local ones in our town for an example. They live in the best residences in town, they own the best and largest block of buildings in town and I think I can say conjointly they are the largest landowners in the district. Who have they made it out of? I will leave the public to judge who has been making misrepresentations. – I am etc.

J. R. Corrigan

Argument and discussion continued in the press and behind closed doors between the parties. It did nothing to enhance the point of view of either side and if anything, helped to pour cold water on an idea that had huge potential. Arthur Gillies had his last word on the matter by advancing what he thought were, ‘several misconceptions as to co-operative associations’ quoting a number of experiences he had learnt from his time with the North Otago Co-operative. He gave an emphatic denial saying that ‘no firm would willingly present a wrong account’ and said, ‘if mistakes had been made they would be adjusted without any trouble if the people would call at his office’. He also reiterated his statement saying that it was the merchandise account and not the commission account that enabled directors to allocate bonuses and that, ‘to handle such a business as this co-operative would require capital of about half a million’. His detailed response was the last to appear in the press. It had been an unfortunate exchange that no doubt had an impact on an easy passage for the proposed new venture.

Within two weeks an advertisement appeared retracting the auctioneers combined decision to raise commission rates:

The under mentioned Auctioneers beg to announce that the increased rate of commission was only agreed to at the request of the Auctioneers south of Wanganui to make a uniform rate for the North

Island, but in consequence of representations made, the undersigned have decided to revert to the old rates of commission:-

NEWTON KING STEUART & CORRIGAN NOLAN TONKS & CO. GILLIES, FANTHAM AND NALDER. J. R. STEWART & CO. GEO. TINDLE.

This was followed by a letter in the correspondence column: EGMONT FARMERS’ CO-OPERATIVE ASSOCIATION LIMITED (To the Editor)

Sir,- In case intending members of this Association should be mislead by reading the Auctioneers advertisement in Saturday’s issue, I may state that representations were made by this Association to the auctioneers to reduce their commission.

I am, etc., James Davidson, Chairman Provisional Directors.

Afurther general meeting of those interested in the formation of the proposed Egmont Farmers’ Co-operative Association was held later in January 1906 where the Prospectus and Articles of Association prepared by the provisional directors were submitted for consideration. At this meeting there were ‘about 70 to 80 being present’ and 14 apologies with expressions of approval of the proposed association. Only one point in the Articles produced any major discussion and that was concerning directors having power to commence operations ‘when 500 shares had been taken up’. Mr G. V. Pearce of Kakaramea thought the proposed capital was far too little and moved that 2,500 be inserted in place of the 500. The motion was seconded by Mr Hawken. Discussion ensued including a response from J. R. Corrigan who said that ‘if the amendments were carried it would mean that the company would never get started at all as there were many farmers who would ‘hang off until the concern was fairly going’. All they had done was to fix a minimum for the purpose of registration, ‘but no sane directors would launch out on a big business on the strength of 500 shares’. Mr Davidson said that if they raised it to 2,500, ‘you will simply squash the thing dead’. The discussion around capital requirements continued, with comments from Mr McKeown, Mr F. W. Wilkie, Mr Wills, Mr Dive, Mr Owen and Mr J. Ure Murray. Further amendments were moved by Mr Wilkie and seconded by Mr Best that a start not be made until 1,500 shares were taken up. Both of the amendments were lost by a large majority and finally, on the motion of Mr Inkster, seconded by Mr Livingston, the Memorandum and Articles of Association were adopted.

About 150 shares were ‘booked’ at the meeting, however it is stated, ‘as it was late a large number had left before the meeting terminated’. The threshold was never obtained. There appeared to be too much dissension among farmers who had split loyalties and following the retraction by the auctioneers, farmers it seemed, had little to gain and much to lose. This attempt to formalise commercial co-operation was without doubt driven by a few well-meaning and passionate individuals but in the end failed to weld together the main stream South Taranaki farming community.

It was a grand idea and one that should have appealed to the wider rural community. However, research failed to reveal any significant information other than a ‘Proposed Prospectus’ ‘Printed at the Star Office, Hawera’ and later the deregistration of the company set out below. No further record of what appears to be the formation of a farmers’ co-operative stock and station company can be found.

Company Registers, New Plymouth, Stratford and Eltham, Taranaki 1876–1926, record an entry

of Egmont Farmers’ Co-operative Association Limited, stating the company was Registered and a Certificate of Incorporation was issued on 18 July 1906 with capital of £50,000 with a Memorandum of Association, Articles of Association, Declaration by Solicitor and a Consent of Directors. However, the entry concludes with:

Struck off the Register in pursuance of Section 266 subsection 4 of Companies Act 1906. Dated 27th November 1909. A.V. Sturtevant. Asst Registrar Companies.

A ‘Private Advertisement’ in November 1909 stated:

‘THE COMPANIES ACT 1908’ SECTION 266, SUB SECTION (4)

Take notice that the name of the Egmont Farmers’ Co-operative Association (Limited) has been struck off the Register and the company has been dissolved.

Dated at New Plymouth, this 27th day of November 1909. A. V. STURTEVANT Assistant Registrar of Companies.

With the name Fantham having disappeared from the Gillies and Nalder partnership the Egmont Farmers’ Union Limited was now just a memory. James Corrigan’s more recent proposal, the Egmont Farmers’ Co-operative, had also failed to raise sufficient interest and capital to float a new farmers’ co-operative. There remained, though, a strong determination within a large contingent of farmers to rally together and take the destiny of the farming stock and station industry back into their own hands. Over the next few years this seemingly innate desire was to manifest itself into an organisation that would finally stand the test of time and have the strength and stability to survive longer than any other Taranaki co-operative enterprise.

Gillies and Nalder continued operating successfully as a proprietary company with what was originally the Egmont Farmers’ Union Limited book of business seemingly as caretakers. One consolation was that the newcomer to town, Arthur William Gillies of Gillies and Nalder who acquired the business managed by the late Arthur A. Fantham, was an ardent supporter of cooperatives, although there’s no clue as to what prompted him to come to Hawera to establish his own proprietary auctioneering company. There are numerous possibilities. Following Fantham’s death he may have been enticed to come to South Taranaki to pick up where Arthur Fantham left off, or considered there was now a great opportunity to fill the void that he left. Now settled in Hawera, with the North Otago Co-operative experience fresh in his mind, he gladly provided his considerable knowledge of the livestock industry to South Taranaki and any rift that may have existed amongst those who had participated in the debate concerning the failed attempt to form the Egmont Farmers’ Co-operative in 1906 seemed to fade away. Gillies’ popularity in the town became quite evident. This educated, genial gentleman was from a well known North Otago family with extremely good connections. He chaired many organisations, including the South Taranaki Winter Show Company Limited and will go down in the history of Hawera for his determination to provide the town with adequate water reticulation. He is known for negotiating the construction of the Hawera water tower on the corner of Albion and High Streets. During the following seven years Gillies and Nalder stock auctioneers successfully operated and developed this substantial business portfolio.

SIX

All Your Geese are Swans

New Zealand’s population was approximately 1,000,000 at the turn of the 20th century, with approximately 30 per cent of the total workforce involved in agricultural employment. It was clear that the focus was on making agriculture the mainstay of the economy and to move into the 1900s with confidence and entrepreneurial flair in Taranaki, the settlers made up for their small numbers by an amount of energy and enthusiasm unsurpassed in the records of New Zealand colonisation.

A booming economy continued during the first decade of the century, creating considerable wealth, at least within the European population of New Zealand. It was aided by a growing, energetic society in one of the world’s fastest, robust emerging pastoral industries, providing an ideal environment for the co-operative way of doing business. Co-operatives build egalitarianism and demonstrate democracy in a practical way and in a society determined to acquire economic and independent maturity these organisations developed simply out of social need. Collectives also create muscle by bringing together a variety of valuable, practical and intellectual resources under one umbrella. The ownership structure and principle of sharing capital and earnings also creates a firewall that in this case helped to protect impoverished farmers and their communities when returns and commodity prices affected profitability. This was the climate in South Taranaki when once again local farmer leaders wrestled for control of their own destiny and self-determination in a bullish provincial climate that was forging ahead and catching up with the rest of New Zealand.

Co-operation between farmers was becoming a matter of fact with the establishment of the New Zealand Farmers’ Union (now Federated Farmers of New Zealand Incorporated) in almost every district in New Zealand. The Union was demonstrating the advantages of co-operation and using collective influence not only on a local level, but within the corridors of power in Wellington to provide the rural community with some of the advantages it justly deserved. The executive was studded with highly motivated individuals within Parliament and out in the country districts. The Government now recognised the organisation ‘as a mouthpiece of the farmers’ and was prepared to give due consideration to representations made regarding matters of national importance affecting the rural community. This influential lobby group began making considerable progress in almost all aspects of everyday life of the New Zealand farmer. With some formidable farmer/ politicians amongst their number, they were impressive in their quest for due consideration and self-determination, becoming known as the ‘Farmers Parliament’.

Taranaki Provincial Branch of New Zealand Farmers’ Union had already shown initiative supporting a number of Bills in Parliament and gaining consensus from farmers as a variety of initiatives were promulgated particularly to mutual and co-operative ventures. One highly successful

enterprise to have made its mark, established by the Farmers’ Union in 1905, was the Taranaki Farmers’ Mutual Fire Insurance Association and a number of Mutual Insurance Associations throughout the country. Furthermore, an agency called the Taranaki Farmers’ Union Land and Estate Agency was also opened, with the Union’s provincial secretary of the day, Mr J. B. Sim appointed as chief agent. Although in its infancy, these organisations became a blueprint for further expeditions into the world of commerce. However, despite reasonable support in other districts, the Hawera branch of Farmers’ Union was not in particularly good shape at this time. There had been some division and lethargy which had a negative effect on the attendance at meetings and the local executive went to some lengths to remedy the situation by arranging high-profile speakers to attract members. This, in time, turned things around.

This history contains many unsung heroes who gave years of their lives to the Farmers’ Co-op, but who simply because of the many people involved, gained no lasting recognition of their contribution. One of the earliest examples of these was a young gentleman who was without doubt the main instigator and prime mover in the conception, promotion, organisation and establishment of The Farmers’ Cooperative Organisation Society. George Henry Buckeridge, an educated man of considerable intellect, wisdom and entrepreneurial flair, seemed to be the right man in the right place at the right time in South Taranaki. Born in Nelson and educated at Nelson College he found his way to Eltham with his brother E. Buckeridge. They surveyed the Mangamingi district and pegged the road over the infamous ridge (known today as the Mangamingi Saddle), as well as other roads in the district.

George had exceptional organising skills. He was a prodigious businessman and able to apply himself to most areas of commerce. He was honorary organiser for the Taranaki executive and branches and for many years acting provincial secretary of the New Zealand Farmers’ Union and one-time partner of celebrated business entrepreneur C. A. Wilkinson at Eltham. In the mid 1890s he went into partnership with other members of his family. Buckeridge & Co. were general storekeepers, ironmongers and drapers and operated co-operative stores at Eltham and Mangatoki, also acting as cash buyers of all farm and dairy produce. He was an agent for Henry Lane and Co. of London, purchasing product from several dairy factories in the district for many years, and also a land agent, operating out of premises at 16 Union Street, Hawera. Residing in Eltham he was a founding member of the Eltham Co-op Dairy Factory Company Limited and during this time made several trips to England in connection with his work. Outside his busy commercial life he took great interest in All Saints Church in Eltham, as a choir member and lay reader, and he worked to actively raise funds to build the first church, which was situated on a section of his land on High Street Eltham. In later years this became the site of Turner and Sons garage.

This introduction provides an insight into the personality and character of a man who played a pivotal role in the creation of the subject of this history. We are fortunate in the fact that although George Buckeridge is not generally recognised as one of the founding entrepreneurial pioneering settlers of South Taranaki, a number of reports and newspaper articles placed him at the forefront of those with intellect and flair who developed and championed the co-operative cause in Taranaki. Excerpts from a letter he sent from his home at Kelburn, Wellington in relation to the Eltham

George H. Buckeridge, first chairman of The Farmers’ Co-operative Organisation Society of New Zealand Limited 1914–15.

Co-operative Dairy Company’s 50th Jubilee in 1942 will provide a glimpse into the part he played establishing one of the first early co-operatives. He said:

In April 1891, I became associated with Mr. C. A. Wilkinson in a general store business at Eltham and very soon found that the struggling dairy farmer, or ‘cow cockie’ as he was called in those days, was finding the struggle to live a very difficult problem indeed. Most of the farms were just emerging from being covered with dense bush and were in a rough state and added to this, the price they received for their milk from the dairy factory proprietor, Mr Chew Chong, viz, 2d per gallon for an 11 lb. gallon was such that, with their small supplies of milk, they were compelled to utilise every means possible in order to eke out a bare existence. Their factory proprietor was also their storekeeper and most of them were indebted to him to a greater or lesser degree, for stores, over and above what they received each month in payment for their milk.

The principal source of income outside their milk was obtained from picking fungus, which they sold to their storekeeper – again Mr Chew Chong, to whom by the way must be given credit for finding a market for this commodity, but even with this added income they rarely had any money to spare.

George had read of the exploits of Sir Horace Plunkett and what he had done for Irish farmers in relation to the establishment of co-operative dairying and began talking about it to many ‘cow cockies’ in the district. In May 1891 he gave a short address, ‘in the supper room of the old Town Hall, near the railway, Eltham at a meeting of the Eltham Farmers’ Club’, of which Mr Frank McMahon (Eltham Road) was chairman, on the benefits Irish farmers had secured from co-operative dairying, suggesting that if it was possible for the man who was regarded as ‘the poor benighted Irishman’ to make such a success, it should be much more so, to the ‘enlightened New Zealand farmer’. George said that:

The idea was received with much good humour and a great deal of scepticism also, at first, and I was very frequently told that ‘I looked at these things through the rosy spectacles of youth’ and ‘all your geese are swans’ and such like, but the seed sown then took root, though it was not until the following year that it began to look like fructifying.

The reason why the meeting of farmers was called was because Mr Chew Chong had told the suppliers that he could no longer afford to pay 2d for milk and that the price was going to reduce to 1½d per gallon. This was when farmers around Eltham came to Mr Wilkinson and Mr Buckeridge and said; ‘You have been talking about this co-operative dairying business for quite a long while now, what about calling a meeting and let us all know about it’? This they did. In short, Chew Chong, fearing that he would lose his supply of milk, made two attempts to recover the situation by increasing his offer to 2½d with a guaranteed supply for three years. This about face nearly overturned the co-operative dairying idea, and as George Buckeridge said:

This nearly finished the attempt and all our means of persuasion nearly failed. We were twitted with the fact that, ‘we did not own a farm’ and had nothing to lose if the venture failed, while it meant everything to them’. So in order to convince them of our bona fides in the matter I bought a small farm on the Mangawhero Road…

Chew Chong made a further attempt to win back farmers’ support by offering 3d per gallon with a condition they supply his factory for five years. This ‘unheard of price’ also nearly scuttled the plans. Having suffered a broken leg at the crucial time, George had to leave the job of persuading the farmers to ‘take the plunge’ on the co-operative dairy company project to Wilkinson. The Eltham Cooperative Dairy Factory, however, became a matter of fact and an extremely successful operation.

This transparent co-operative innovation and improvement in the price received for milk set the benchmark for many more co-operative ventures becoming part of the landscape and was probably the incentive that encouraged George Buckeridge to become one of South Taranaki’s most prolific co-operative crusaders and precipitated the eventual establishment of the Farmers’ Co-operative at Hawera.

Pivotal, Profound and Everlasting

The collective/co-operative concept to establish a stock and station agency in South Taranaki, owned and operated by the farmers never slept – just rested. What happened next in the continuing quest to establish a farmer-owned stock and station co-operative by South Taranaki farmers has become an enigma. There is no evidence that any specific organisations or other individuals, were backing the determined George Buckeridge on this quest. Tacit encouragement and support was no doubt provided by many dairy co-operatives, their shareholders and directors and N.Z. Farmers’ Union members. In the beginning he appears to have single-handedly undertaken the enormous challenge of promoting the ‘co-operative cause’. Meticulously researching and studying the subject both from a local and international perspective, George became an expert on the establishment, operation and application of this type of enterprise. No mention can be found of a new enterprise in the minutes of Farmers’ Union meetings, although a number of Taranaki Farmers’ Union branch presidents eventually became heavily involved in it in later years. What is known, though, is that on Saturday 16 December 1911, on his own initiative George Buckeridge convened a meeting in Hawera ‘to consider the advisableness of starting a co-operative business’. It was ‘attended by 25 persons’. Mr C. Tarrant was voted to the chair. Mr Buckeridge indicated that he was very pleased to meet so many farmers from the district, representative of various parts of the centre. He had brought them together to discuss a proposal that he felt would be of benefit to them. He went on to explain that the history of co-operation in Taranaki outside the dairy industry had been ‘one of almost complete failure’, and he did not think that they had far to look for the reason for this:

The farmers had run away with the idea that a business run by the farmers for the benefit of the farmers could run without money. He did not know any business which could run without money, and he was quite sure that the cause of failure of the co-operative enterprise in Taranaki, more so than in any part of New Zealand, was attributable mainly due to the want of capital. The first essential in any business was strong finance. Without this no business could be carried on successfully. Want of capital hampered the directors and management and without good management a business could not be carried on efficiently. Mr Buckeridge pointed out that in the early days of co-operative dairying it had failed through insufficient capital, but this had been improved as the result of experience and today they knew what a splendid success was being made by co-operation in the dairying industry. He had taken the disposal of stock as the commencement of their business and he would not advocate the store business at present, but he could not see any reason why farmers should not aim at that and work it successfully, for co-operative stores had been run successfully in the district in connection with the dairy factories. They might also take into consideration the advisableness of going in for cooperative auctioneering which could be used for the disposal of their manures, seeds etc., providing the concern was properly capitalised. He wished it to be understood that the concern must start out with a prospect of success, and to induce farmers to support it. He had been interested in co-operative

enterprise for many years, and mentioned that he was one of those who started the now successful Eltham Dairy Company. To instance the success of co-operative business among farmers in other districts, Mr Buckeridge referred to the Waikato, Wairarapa and South Canterbury. The business in the Waikato had been a magnificent success, and had grown phenomenally. He was sure that in such a wealthy district as South Taranaki that the co-operative movement would be a success. There were better opportunities here than in any district in New Zealand.

The Chairman considered that the proposal was a good idea, he was in the Waikato when the cooperative business was started and knew that it had been a success. It was bound to be a success in South Taranaki if run on the right lines.

Mr J. D. Wills asked if there was not a co-operative company already registered.

Mr Buckeridge replied that he thought there was, but as it had not been in business it had been struck off the roll. To start with a capital of only £50,000 would court absolute failure, they would require a larger amount than that.

Mr Wills remarked that he was one of the directors of the original company, but when he found there was difficulty in getting support he withdrew. He was favourable to the present proposal provided the support was forthcoming.

Mr Buckeridge thought that it would be a good idea to make a canvass of the district to ascertain what support the project was likely to receive; personally from the gathering present that morning and from his interviews with many farmers he believed it would meet with success. He considered the concern should only operate in South Taranaki and to do this £250,000 capital would be required. In a few years he hoped they ought to be able to increase their capital and extend their field. To work the whole of Taranaki they would want a capital of one million pounds, and he did not think it would be advisable to consider a wider scheme.

The Chairman said he thought the time had arrived to have something of the kind proposed in South Taranaki and he would move that the committee be appointed to canvass the district and to report at a future meeting as to the support that would be accorded the venture. Mr Wills seconded the motion, which was carried.

The following were appointed the committee: Messrs Tarrant, H. Spratt, Wybourne, Batten Jnr. Hunger, A. Campbell, Barclay, S. Pratt, Cochrane, Ogle, and McLean.

It was further resolved that Mr Buckeridge call other meetings in outside districts and ask them to appoint committees to canvass their particular centres.

Charles Cleverley Tarrant played a landmark role chairing this meeting, using his standing in the community as a respected citizen and local councillor, to bring people together and adding weight to the initial representations and presentations being made. Apart from early organisational meetings he would play no further part as he travelled overseas and was away from the district. However as the story unfolds the Tarrant family are found in positions of responsibility both locally and nationally in the agricultural scene throughout the century. Charles’ grandson Thomas Cleverley Tarrant would eventually chair the board of the organisation that his grandfather championed in the early years. Charles Tarrant recognised the importance of this groundbreaking opportunity and indeed the qualities of George Buckeridge.

George Buckeridge travelled throughout South Taranaki speaking at many meetings of farmingrelated organisations expounding the benefits of a co-operative organisation. The subject was delivered to an eager, willing and waiting audience. The meeting at Kaponga in 1912 was typical:

FARMERS AND CO-OPERATION Address at Kaponga

At a meeting of the suppliers at the Kaponga Factory, in the Town Hall on Tuesday afternoon, when there were about forty present. The chairman explained that the meeting was not a factory meeting proper, but would give them an opportunity of hearing Mr Buckeridge explain the proposal which had been formulated in the district to establish a big co-operative society for the carrying on of their own means of distribution, etc. He then called on Mr Buckeridge to address the meeting.

Mr Buckeridge spoke for about three quarters of an hour, during which time he fully showed what kindred societies to the one now proposed were doing in other parts of the world – in England, Scotland, Ireland and Belgium. He then dealt with the history of co-operative enterprise in Taranaki – both dairying and otherwise and the causes that led to the failure of almost everyone outside of dairying. He showed the immense successes that were being made of similar institutions to the one proposed in other parts of New Zealand, where they were adequately capitalised and efficiently managed, and urged upon the farmers present that they should similarly combine to manage their own affairs to their own betterment. Mr Buckeridge was attentively listened to throughout and frequently applauded.

At the close of his address he answered numerous questions and a motion, ‘that this meeting is in full sympathy with the objects of the proposed society’, on being put to the meeting was carried without a single dissenting vote.

Votes of thanks to Mr Buckeridge, wishing him every success in his endeavours to organise the farmers on the coast, were made by the chairman.

Other meetings were convened in the shadow of the mountain in the southern districts of the province – and almost all showed considerable support for this timely venture into the establishment of a farmers’ trading company.

At a Meeting held in the Borough Council Chambers, Hawera, on Saturday 26 October 1912, the following resolution was unanimously carried:

‘That this Meeting of Farmers is in sympathy with the movement to start a Farmers’ Co-operative Organisation Society for Taranaki; and will support it if it can be successfully started and with adequate capital’.

The following gentlemen (with power to add to their number) were elected as Committee to forward the objects of the Meeting:- Messrs C. Tarrant, A. E. Death, Jas. Barkla, C. E. Gibson, H. Batten, A. T. Wills, and Geo. H. Buckeridge.

Kaponga township in the early 1900s. (Unknown photographer, Township Series 274.) COURTESY OF COLLECTION PUKE ARIKI. PHO2009-165

Some of the objects of the proposed Farmers’ Co-operative Organisation Society are briefly as follows:-

To follow the precedent of kindred Farmers’ Co-operative Organisation Societies, as established by Sir Horace Plunkett in Ireland; to extend the principle of co-operation as applied to dairy factories, to the purchase of seeds, artificial manures, agricultural implements and general supplies and farmers’ requisites of all kinds, and including auctioneering in all its branches, land and general commission agency and cooperative banking.

During the past few months a number of the Co-operative Dairy Factory Companies in the district have been asked by their shareholders to establish, in connection with the Factory, bulk stores at which suppliers may be able to obtain their requisites.

In order for these stores to be of advantage to the Shareholders, it is imperative that the goods should be purchased at the cheapest rates. Otherwise it is not possible to compete successfully with opposition that may be expected from business concerns that are already established in the district.

To be able to purchase all the requirements to the best possible advantage, and so to sell them at the lowest possible cost to the consumers, it is necessary for them to be able to buy in large quantities for cash, so as to secure all the discounts obtainable, and to be able to buy direct from the manufacturers, or else to manufacture the goods.

To undertake the auctioneering, land sales etc., it will be essential that the Society should be in a position to finance clients when called upon to do so.

This will entail the necessity for a very strong finance so as to place the Society in the position, from the start, of being able to carry on its operations on thoroughly sound business lines; to purchase in large quantities, and for cash, and to obtain the services of the very best management procurable.

Sir Horace C. Plunkett, 1854–1932. Plunket was an Anglo-Irish unionist , later Irish nationalist , agricultural reformer, pioneer of agricultural co-operation , politician and MP in the United Kingdom of Great Britain and Ireland .

From enquiries made and promises of support to such a scheme it is considered the time is opportune for the establishment, in this district, of a Society on the above lines, and to place Taranaki on a level, in this respect, with other places in New Zealand.

It has been decided to call a further meeting to fully discuss the proposal and to consider ways and means of bringing it to a successful issue, and the Committee would be glad to see you present in the Foresters’ Hall, Hawera, on Saturday 23 November 1912: Convenors

C. TARRANT, C. E. GIBSON, H. BATTEN. A. E. DEATH, GEO. H. BUCKERIDGE, JAS. BARKLA, A. T. WILLS,

The work of Sir Horace C. Plunkett, 1854–1932, an Irish statesman and agricultural reformer, had been noticed with interest on New Zealand shores and in particular Hawera, South Taranaki. This extraordinary man was an ardent exponent of farming co-operatives. His legacy to farming in Ireland was aptly described by one of his close friends, Lady Fingall: ‘Ireland had laid her burden on him’. An appropriate comment because his was indeed a dedicated life and one that would impact far beyond the shores of his green isle in matters relating to the development of co-operative agricultural organisations; indeed representatives of Farmers’ Co-op would eventually meet with him in later years.

Critical to the overall project was obtaining the confidence of the whole rural population to provide a smooth passage through what could be stormy waters. Previous attempts to establish a lasting and durable co-operative organisations had provided some insight into the many pitfalls and difficulties that might be encountered. The farming community held the key and they alone would determine the success or failure of this new enterprise. Gaining consensus was also a challenge, with expectations from the whole farming community and so many prominent interested parties. Subsequent to the October 1912 meeting in the Hawera Borough Council Chambers, a further

meeting was held in Hawera on Saturday 23 November 1912 at the Foresters’ Hall. Mr C. E. Gibson was voted to the chair and, ‘called upon Mr George. H. Buckeridge to explain the objects of the meeting’. It was at this meeting that a committee was appointed to carry out the objects of the proposed ‘Association’ and to submit a report to a further meeting at Stratford on 30 November. The earlier committee was dissolved and the following individuals were elected with power to add to their number: ‘Messrs. C. E. Gibson, A. E. Death, Hollard, Brown, Simpson, Barkla, Buckeridge, Batten, C. Tarrant and A. T. Wills.’

The Stratford meeting held in the Borough Council offices was once again chaired by George Buckeridge and after delivering an explanation concerning the objects of the proposal it was resolved to hold a further meeting at Eltham on Saturday 7 December 1912, and that Mr Buckeridge would ‘prepare a draft Prospectus to be submitted to that meeting’. The meeting was convened at Eltham and a ‘Draft Prospectus and Memorandum of Association’ was submitted for approval:

Meeting of Committee held at Eltham at 12:30 pm on 7 Dec. 1912.

Present:- Messrs Hollard, (Kaponga), Simpson (Inglewood), Death and Barkla (Hawera), Buckeridge. Apologies were received from Messrs A. T. Wills (Hawera), Brown (Midhurst).

Proposed by Mr Buckeridge seconded by Mr Simpson that Mr Hollard take the chair. Carried.

Minutes of previous meeting read & confirmed.

Death – Barkla that Mr R. W. Baker be appointed Interim Secretary. Carried.

Death – Barkla that the Draft Prospectus & Memorandum of Association be approved. Carried. Hollard – Barkla that Mr Buckeridge be asked to visit the various factories and centres in the district and place the objects of the Society before the public with a view to the appointment of a sub-Committee in each centre to carry out its objects and to the appointment of Delegates to the first General Meeting at Hawera. Carried.

Geo. H. Buckeridge, Chairman

The draft Prospectus & Memorandum of Association also stated that:

Forms of application for shares may be obtained from any of the Provisional Directors, at the Registered office of the Society at Bridge Street, Eltham.

The capital of the Society is £500,000 divided into 50,000 shares of £10 each. Of the total share capital 10,000 shares to be called ‘A’ issue which shall be issued in respect of shares that may be allotted to any person, firm or company in lieu of purchase money to be paid for any businesses that may be acquired from time to time by the Society.

10,000 shares to be called the ‘B’ issue which shall be issued to affiliating Co-operative Companies in the manner as provided for in the Articles of Association of the Society.

30,000 shares to be called the ‘C’ issue, shall be payable by £1 on application, 10/- on allotment; and, up to £5 per share, by calls not exceeding 10/- per share, at intervals of not less than three months as required.

The whole of the shares in the ‘B’ and ‘C’ issues are now offered to the public for subscription.

[The Prospectus continued…]

The purpose of the Society being formed was described in the Memorandum of Association as: To carry on the business of a Co-operative Association in all its branches; to follow the precedent of Farmers’ Co-operative Organisation Societies by forming a Co-operative Society of Co-operation; to extend the principle of co-operation to dairy or other companies; to buy and sell all classes of goods, including seeds, artificial manures, agricultural implements, and general supplies and farmers’ requisites of all kinds; to carry on auctioneering at all its branches, and land and general commission agency, and the manufacture of general requirements for farmers and others; to carry on co-operative banking and also the sale of farms and factory products of all kinds.

However, more specifically:

To carry on such business or businesses (both wholesale or retail) as the Company in general may from time to time consider will be in the interests of the Society and in particular, but without affecting the geniality hereof the business of Produce and General Merchants, Manufacturers, Owners of Freezing Works, Freezing, Millers, Ship Owners, Shipping Auctioneers, Land, Estate, Stock, Financial, Insurance and General Agents, and Fire, Marine, Life and Accident Insurance business or businesses, Financiers, Contractors, Farmers, Common Carriers, Printers and Publishers, Book Binders, Saddlers, Boot makers, Engineers, Butter and Cheese Makers, Factory Proprietors, Exporter, Ironmongers, Drapers, Warehousemen, Storekeepers, Grocers, Butchers, Stationers, Coal and Wood Merchants, Coal or other mining, and Indentors, in any part of the Dominion of New Zealand or elsewhere, and to buy and sell (for cash or on credit) and generally to deal in all goods, stores, consumable articles, wares, livestock, chattels and effects of all kinds, and merchandise, applicable or suitable to or for or in connection with any of the said businesses.

Success was now paramount and circulars were forwarded to all co-operative companies and ‘as many as expedient of the proprietary dairy companies’ throughout the Dominion enclosing copies of the prospectus, asking them for support, and endeavouring to arrange meetings to send deputations of directors so that the objects of the new company could be fully explained to them. With all these various factors in mind as well as the pending requirements of the proposed Farmers Co-operative, James Corrigan had been in England on holiday for 10 months during 1912 visiting both Scotland and Ireland and many parts of the continent of Europe with a keen eye on all matters pertaining to farming. He studied agriculture and the manufacture of dairy produce, also keenly observing how New Zealand produce was being received on the Home markets at a time when refrigerated produce was in good demand, with frozen mutton retailing at 6½d a pound. He tasted some ‘and found nothing to complain about’! James also relates to an incident in a country village called Echt in Aberdeenshire, northeast Scotland, where he noticed cheese and butter resembling

The office of Geo. H. Buckeridge, Bridge Street, Eltham c. 1917, commission agent and first chairman of The Farmers’ Co-operative Organisation Society of New Zealand Ltd. COURTESY OF ELTHAM HISTORICAL SOCIETY.

the New Zealand product. Following further investigation of a cheese crate he found it was branded ‘Federation Hawera’ and the butter box was branded ‘Normanby’. The storekeeper did not know where it came from but said, ‘he knew that the cheese and the butter was good stuff’. He also spoke of the new margarine product, a substitute for butter that ‘was largely sought by certain classes’, being made in 40 different grades, which he had also tasted and found it to be ‘a good wholesome food’. He compared products and farming methods with New Zealand and differing means of distribution and felt that:

As far as our methods of co-operation are concerned, … and as far as they go, we have nothing to learn from Denmark or anyone we are competing with. But we don’t go far enough. If we are to make cooperation successful, we must carry it right home to the port where we disperse the stuff.

His visit took in all the principal agricultural shows and he also studied the quality of draught and thoroughbred horses and felt that there was nothing to learn from the British in the method of production. He visited the New Zealand High Commissioner’s Offices and on returning to New Zealand spoke of the need to encourage immigration to help develop and increase New Zealand’s population. He felt ‘we could do with 15 million more people in New Zealand and Australia’. He also found time to visit importers and endeavoured to make arrangements with a number of firms including Messrs Lovell and Christmas, J & J Lonsdale and Co., Rawson Hodgson and Co., Mills and Sparrow to have ‘dairy produce sold at less cost, if sufficient support could be obtained to warrant a reduction in commission’. In his travels he had found a firm with the financial stability to enable them to do business of over £2,500,000 annually in dairy produce alone and had brands established in about 20 of the principal towns in the United Kingdom. This firm was prepared to transact the business for 1¾ per cent commission providing an assurance could be given of £500,000 worth of business. This guarantee to be for one year only.

James was pledged not to divulge the name of the firm unless he could get the minimum support of £500,000 worth of business guaranteed and that if this amount could not be obtained the proposal would fall through. He was prepared to hand over the arrangement to the Society at no charge and left it to the Society to reimburse him for any out-of-pocket expenses incurred interviewing factories in connection with the offer. It was indeed a handsome arrangement and the offer was accepted with thanks.

Ameeting of delegates and interested persons held in the Foresters’ Hall, Hawera, on Saturday 3 May 1913 attracted 46 farmers and interested individuals. Mr A. E. Death was voted to the chair and Mr Buckeridge from Eltham was called upon to report briefly on ‘the work already done in connection with the organisation of the Society’ and also to outline the objects:

Proposed by Mr Corrigan, Seconded by Mr Dickie:

That in the opinion of this meeting it is desirable that a Society be formed. Carried.

Corrigan – Jones: That the Society be called ‘The Farmers’ Co-operative Organisation Society of New Zealand Limited’. Carried.

Symes – Buckeridge: That all the Delegates appointed be the Provisional Directors of the Society, with power to add to the number. Carried.

Buckeridge – Taylor: That an Executive Committee of nine, five to form a quorum, to be appointed from this meeting, to make arrangements for, Bankers, Solicitors, Brokers, Interim Secretary and any other matters in connection with forming the Society. Carried.

The following were elected to the Executive Committee: Messrs Corrigan, Buckeridge, Dickie, Hollard, Barkla, Symes, Simpson, Death and Gray.

Corrigan – Shotter: That the matter of drawing up the Prospectus, Memorandum and Articles of

Association, as generally outlined in the Provisional Prospectus as submitted to the meeting (see fly leaf) be left in the hands of the Executive Committee to prepare and submit to a subsequent meeting of the Provisional Directors, to be called at a later date. Carried.

Taylor – Petersen: That a hearty vote of thanks be accorded to Mr Buckeridge for the great assistance that he has given in the organisation of the Society. Carried.

A vote of thanks terminated the meeting. Confirmed: Geo. H. Buckeridge, Chairman.

A further meeting on 6 May 1913 resolved that the Bank of New Zealand be the Society’s provisional banker and that in the interim ‘the Registered Office be Bridge Street, Eltham’. This was no doubt in the business premises of G. H. Buckeridge at the same address.

Time was of the essence to maintain the momentum generated over many months of hard work and to incorporate the new Society. On 31 May 1913 a further meeting of the provisional directors convened to thrash out the final details of the draft prospectus. As always, people rather than events took precedence and the meeting stood in silence as chairman George Buckeridge moved ‘that the sympathy of this meeting be conveyed to Mrs S. Forsyth and family in their recent bereavement’. Simon Forsyth and indeed his family were prominent in the early days of colonisation and the Taranaki province had just lost a highly respected farmer, New Zealand Farmers’ Union member and advocate of the proposed Farmers’ Co-operative.

Even at this late stage a number of provisional directors felt that the shares should be £5 rather than £10 and following considerable discussion an amendment moved by Hill and seconded by Dickie was put to the meeting. The proposal for £10 was carried. In addition a motion was carried that it would not be advisable for the directors to undertake or proceed with any business until the whole of the district had been canvassed. It was at this meeting that the Prospectus, Memorandum and Articles of Association were submitted and approved.

The Farmers’ Co-operative Organisation Society of New Zealand Limited was incorporated under the provisions of The Companies Act, 1908, and the following schedule of provisional directors shows many familiar names of families still residing in the district today:

NAME ADDRESS OCCUPATION

Peder Jens Petersen Midhurst Farmer

John Morris Shotter Midhurst Farmer

James Randall Corrigan Hawera Farmer

Arthur Turner Wills Hawera Farmer

George Henry Buckeridge Eltham Agent

Duncan MacDonald Scott Kapuni Farmer

Frederick Lye Otakeho Farmer

Benjamin Booker Lowgarth Farmer

Charles Dunsbie Dickie Waverley Farmer

William Frederick Coombridge Te Kiri Farmer

Alfred Francis Symes Patea Farmer

Thomas Foreman Alton Farmer

William Jones Kaimata Farmer

George Blandford Hall Kaponga Farmer

Percival Palmer Alton Farmer

Joseph Bell Simpson Kaponga Farmer

James Ogilvie Taylor Waiongona Farmer

George Gwynne Kaponga Farmer

William Herbert Robinson Riverlea Farmer

David Todd Inglewood Farmer

Archibald Christopher Johnstone Auroa Farmer

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Harold H. Buxton

Auroa Farmer

Cecil Reginald Honeyfield Patea Farmer

James Barkla Hawera Farmer

Harold James Batten Inaha Farmer

William Skedgwell Tuna Farmer

Robert Bremer Waverley Farmer

Edward Alexander Gray Lowgarth Farmer

Albert Ernest Death Hawera Farmer

Alexander De Wolf Cunnabell Oeo Farmer

Frederick Gustave Bremer Whenuakura Farmer

George Hollard Kaponga Farmer

Percy William Allen Kaponga Storekeeper

Thomas Herbert Otakeho Farmer

The Farmers’ Co-operative Organisation Society of New Zealand Limited. First provisional board of directors 1913 . Back row – standing from left: J. M. Shotter (Midhurst), A. E. Death (Hawera), C. D. Dickie (Waverley), T. Herbert (Otakeho), C. C. Woods (Hawera), W. Skedgewell (Tuna), G. Gwynne (Kaponga), D. M. Scott, (Kapuni), B. Booker (Lowgarth), R. W. Baker (Interim Secretary). Third row standing – from left: W. H. Robinson (Riverlea), G. B. Hall (Kaponga), P. J. Peterson (Midhurst), J. O. Taylor (Waiongona), P. W. Allen (Kaponga), J. B. Simpson (Inglewood), A. L. Campbell (Hawera). Second row sitting – from left: W. F. Coombridge (Te Kiri), G. F. Davidson (Lowgarth), H. Halliwell (solicitor), Jas. Barkla (Hawera), Geo. H. Buckeridge (chairman and organiser), J. R. Corrigan (Hawera), D. Todd (Inglewood). Front row – from left: A. E. Bullock (Taramaupu), C. C. Tarrant (Hawera), A. E. Gray (Lowgarth), Boy: Master Coombridge, W. M. Jones (Kaimata), C. E. Gibson (Hawera). Some provisional directors are absent from this photograph.

Charles Edmund Gibson Hawera Farmer

George Thomas Davidson Lowgarth Farmer

Charles Cleverley Tarrant Ararata Farmer

Charles Clarke Woods Hawera Farmer

Witness to all the foregoing thirty-eight signatures: R.W. Baker Land Agent, Eltham.

Other than George H. Buckeridge, all but one of the provisional directors were farmers from outlying districts, this distinction going to Percy William Allen, Storekeeper, Kaponga. The family continues to reside in the province.

Many families mentioned in the early chapters of this book are still linked closely to their pioneer forebears and it is no surprise to find the name Symes prominent in the provisional directors and in fact as a director in later years. All are descendants of Mary and Francis Symes who emigrated from Somerset, England in the years 1856/57 with their six sons aged between two and 12 years, Alfred Francis Morgan Symes was born at Whenuakura and educated at Whenuakura School. Alf, with his wife Henrietta Jane Constance (Connie, née Brewer) farmed ‘The Grove’ at Whenuakura with his older brother Albert Edward Thorley (Bert) Symes. Bert won many prizes for stock and was a director of the Patea Freezing Works and a member of the Patea County Council. Alfred eventually moved to Hawke’s Bay in 1918 to pursue racing interests; however, the Symes family have continued their long and valued association with the company.

No stone had been left unturned to ensure success. The work and enthusiasm of George Buckeridge was now about to pay dividends. An enthusiastic meeting was held in the Foresters’ Hall, on Nelson Street, Hawera on 6 October 1913, to make final arrangements for the incorporation of The Farmers’ Co-operative Organisation Society of New Zealand Limited. With George at the helm in the chair and subscriptions over subscribed, many delegates from various parts of Taranaki and as far south as Waverley spoke in ‘enthusiastic terms in respect to the new company’. At the conclusion it was resolved that the company was to be incorporated and three cheers were given by the members present for the new company and a further three cheers for Mr Buckeridge for his considerable commitment and hard work in connection with the company’s formation. There was a great general feeling of satisfaction that the company was at last to be established .

Solicitors Halliwell & Sellar confirmed on 8 October 1913 that the Society had been registered, the Certificate of Incorporation issued and 2001 £10 shares had been allotted. Herbert Halliwell was no newcomer to the pressing and often complex legal requirements of the districts blossoming commercial enterprises. Herbert Theodore Waterhouse Halliwell had a distinguished academic record. Born in Geelong, in Victoria, Australia in December 1861, he later moved to Dunedin with his family. Educated at the Otago Boys’ High School, he became dux of the school at the age of 15½, the school’s youngest-ever dux. Articled to Messrs Duncan and McGregor of Dunedin for nine years, Herbert passed his final law examination at the age of 21, coming second in the country in a class of 56 candidates. For this he was awarded a certificate of merit by the Canterbury Law Society. Herbert was admitted to the Supreme Court by Mr. Justice Williams in 1883 and later moved to Palmerston North where he became managing clerk for Herbert J. Hankins of Palmerston North. He came to Hawera in the mid 1890s and on Monday 3 February 1896 opened his practice in Princes Street near the then new Post Office. Herbert was secretary and later president

Herbert T. W. Halliwell, founding principal of Halliwells – Lawyers, Farmers’ Co-op’s solicitors from 1913 to 1990.

COURTESY OF HALLIWELLS – LAWYERS, HAWERA

The Farmers’ Co-operative Organisation Society of New Zealand Limited, Certificate of Incorporation 8 October 1913.

of the Hawera Chamber of Commerce, and became the first president of the Hawera branch of the Taranaki District Law Society which was established at a General Meeting held in the Court Library at Hawera on 24 April 1914. The following year the Hawera Law Society appointed Patrick O’Dea and Herbert Halliwell as delegates to the Taranaki District Law Society. The Farmers Co-op were indeed extremely fortunate to have the services of this well regarded lawyer. The firm continued to act for the Society for the next 77 years.

Mr John Turton, Accountant, situated in Princes Street, was appointed auditor for the time being. Expectations were high and enlisting the support for the venture was one thing but now began the task of establishing an infrastructure and management to facilitate and support what was obviously going to be one of Taranaki’s largest farmer-owned-and-operated enterprises. Organisation to promote and market the company began in earnest. One thousand Articles of Association and Memorandum were printed for distribution and proposals were outlined in connection with the distribution of New Zealand produce in the markets of the United Kingdom and elsewhere and it was also resolved that delegates from the Society wait upon the directors of the various cooperative dairy companies to solicit support for the scheme. Directors met with representatives of the International Harvester Company at Palmerston North to view the range of machinery available and negotiate an agency arrangement.

George Buckeridge went to great lengths to impress upon all associated with the proposal ‘the necessity of doing their utmost during the next few days to get all the shares possible subscribed’ from farmers in outlying districts. A sample of those appointed to canvass were Mr Maxwell, (Rahotu), Mr J. B. Richards (Stratford), and Mr J. R. Hine (Tikorangi). A recommendation was also received from Mr Dickie that the Society’s operation be widened by appointing Mr J. Belton of Waitotara to

canvass shares in that district. Another member, James Barkla, was appointed to canvass the district of Hawera. James and his wife Annie and children had arrived at Wellington on 26 January 1909 and travelled north to settle on leased land at Ararata. His recent arrival in the district did not deter him from giving his unequivocal support to the project, spending many hours away from his farm. Apart from canvassing locally, it is known that he rode around the coast in his gig soliciting support for the new co-operative, encouraging farmers to take up shares. With a number of the other provisional committee members he became actively involved in promoting the proposed venture. The Barkla family continued to farm in the district throughout the century. Although there is no complete record of all who canvassed and purchased shares around the respective districts, the indices of this publication provide a first-hand account of many of the canvassers and shareholders.

EIGHT

Impossible Dream

Finally, after 25 years, a co-operative enterprise began that would survive the complex and forever-changing face of New Zealand’s agricultural sector during the twentieth century. It has steadfastly upheld the original aims and objectives in what were difficult and challenging times, when amalgamations, communication, mechanisation and technology proved the nemesis of many other organisations of a like kind. It often stood amongst bullish competitors who have now disappeared altogether and other amalgamated combines still attempting to lift the gate off the hinges.

With forerunners the Egmont Farmers’ Union Limited and Gillies and Nalder having contributed to the initial groundwork, The Farmers’ Co-operative Organisation Society of New Zealand Limited, now Allied Farmers Limited, trading as Taranaki Farmers, King Country Farmers, Waikato Farmers, Manawatu Farmers and more recently Allied Farmers Livestock in Canterbury, following a tumultuous and often tenuous history has miraculously and deservedly survived. It is somewhat fitting that the original copy of the Prospectus and Memorandum of Association in the old leather-bound annual meeting minute book still has a brown rabbit’s foot affixed as a good luck charm. With so many battles to fight and win in the coming years this would prove to be an omen of the Society’s tenacity and continued longevity.

From its small beginnings the Society grew to have the heart of an ox and as many lives as a cat. The Farmers’ Co-operative Organisation Society of New Zealand was about to climb into the stock and station ring. There was more to this entrepreneurial intimation than was generally realised. It would withstand some extraordinary situations throughout the years and many loyal farmers who proposed and supported this venture would find their family commitment as passionate as the management and employees of the company. Original notes affixed to the inside front cover of the Annual Farmers’ Co-op original Prospectus 1913 with ‘good luck charm’, a brown rabbit’s foot, still affixed to the Minute Book.

General Meeting Minute Book carefully saved for posterity, enabled the first years of the history of what would become a provincial titan of the New Zealand stock and station industry to unfold.

At last, following many trials and tribulations, speculation and disappointment, and two years of meticulous planning, including dozens of meetings and intensive canvassing throughout south and central Taranaki, The Farmers’ Co-operative Organisation Society of New Zealand Limited became a reality on Saturday 31 January 1914 at 11:30am at the Oddfellows Hall, Hawera with an attendance of over 120 mostly farmer shareholders crammed into the hall. Messrs Buckeridge, Death, Barkla, Gray, Simpson, Corrigan, Dickie and the secretary Mr Baker had already met at 10:30am at the offices of Halliwell & Sellar to set ground rules for the meeting and consider a number of issues prior to what was to be a memorable and successful day. George Buckeridge was in the chair, as usual armed with his extraordinary knowledge on the subject of co-operatives. He stood and welcomed the gathering with a warm genial smile, scanning the enthusiastic and expectant audience of farmers who sat before him. They were young, old, rich and poor, but all seemingly had the common aim of ensuring that this would be a defining moment in the history of the co-operative movement of South Taranaki. Buckeridge was obliged to deliver a Statutory Report to the meeting and remarked that he would make it as brief as possible:

The total number of shares allotted is 2001. The receipts of the company on capital account are: Application fees £2001; allotment fees £715; total £2716. The payments are nil. The following is an estimate of the preliminary expenses of the Society: Printing, advertising, stationery, etc., £120, registration £50; solicitors charges (approximate) £100; total £270.

The chairman indicated that any discussion on the report should be deferred till after nominations had been received for directors. Under the Articles of the Association the meeting must elect not fewer than 11 or more than 15 directors and as the process of election would take a considerable time, it would save time if, first of all, the meeting decided how many directors should be elected and then proceed with the nominations. Then the ballot papers could be tabulated and whilst they were being prepared discussion could take place. Mr J. O. Taylor moved and Mr Todd seconded that the meeting elect 15 directors, stating that ‘this was a scattered, growing district and the directorate required all the strength it could get’. The motion was carried.

In reply to a question from the floor the chairman expanded on matters pertaining to shares, stating that they were divided into three issues. The ‘A’ issue of shares was set aside for the purpose of enabling the company to purchase businesses which it might desire to acquire and the owners might be willing to sell and who would be prepared to take payment in paid-up shares rather than cash. In order to enable that to be done it was necessary to make provision for it in the Articles of Association. The ‘A’ issue, ‘of which no shares had so far been allotted, had the right to elect five directors, but that would not be an issue for the present meeting’. The ‘B’ issue was reserved for the purpose of enabling kindred co-operative concerns, such as dairy factory companies, bee-keepers associations, bacon companies or any similar organisation to facilitate. Provision was made for the election of five directors to represent this issue of shares, but sufficient had not yet been subscribed to warrant the appointment of these directors. The ‘C’ was the issue to ordinary shareholders, who had the right to elect 15 directors. When asked how many companies had already affiliated, the chairman replied that 11 had paid application fees and some their allotments as well. A number had written saying they would take up shares but had not yet sent in the applications.

The meeting continued, with a particularly thorny question being raised by Mr J. O. Taylor relating to proxy votes, arguing that no-one should be shut out because the forms did not reach the secretary within the prescribed time and that the notices sent out to shareholders did not mention that, ‘the proxies had to be in the secretary’s hands forty-eight or twenty-four hours before the time of the meeting’ and, in addition, many did not see the notice in the newspapers and knew nothing

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about the time limit. Although the chairman and the Society’s solicitor Mr Halliwell explained they had to comply with the law and could not alter it, Mr Taylor continued his protestation and argued that ‘it was not fair that these proxies should be shut out – it was dirty’ and moved the adjournment of the meeting for a month in order that the whole matter might be placed on a fair basis.

This untimely objection drew a sharp retort from Mr Halliwell, who said that the company desired to have everything fair and above board and he strongly resented the remark and insinuation made by Mr Taylor. He then attempted to recover his position by explaining that what he was complaining about was not starting on a proper basis. He said, ‘this is not fair, and not being fair was not clean and not being clean was therefore dirty’ and went on to say that the present restriction in regard to proxies meant the disenfranchisement of a large number of shareholders. The chairman stated that most shareholders had complied with the official notice and attended the meeting or sent proxies in due order. Only 50 out of 900 had not done so and it was unfortunate that they were left out. Two others, Messrs Todd and Peterson, upheld Mr Taylor’s objection and it was moved and seconded that the meeting be adjourned for two weeks to allow all the proxy votes ‘being put in proper form’. The motion was put and decisively lost. The meeting was then adjourned for lunch and a photograph taken of the provisional directors.

This issue was not the only controversial matter raised at the meeting and following lunch George Buckeridge launched into an eloquent appraisal of the positive aspects of the shareholders’ achievement in establishing the company when over two years previously, at the first meeting, ‘it was freely expressed that they were aiming at an impossibility’. An impossible dream had been realised and George recalled a meeting of delegates after canvassing had been carried out in the district for 12 months – the most enthusiastic meeting he had ever had the pleasure of attending but in which he had been told that it was impossible to start such a company. His personal delight with what can only be described as an outstanding success prompted him to entertain the meeting by delivering three verses of a poem he had found in a newspaper that he thought would convey his thoughts about the new company:

Somebody said that it couldn’t be done, But he with a chuckle replied, That ‘may be it couldn’t’, but he would be one Who wouldn’t say no till he tried. So he buckled right in, with the trace of a grin On his face. If he worried he hid it. He started to sing as he tackled the thing That couldn’t be done – and he did it!

Somebody scoffed, ‘Oh you’ll never do that –At least, no one has ever done it’! But he took off his coat and took off his hat, And the first thing we knew he’d begun it. With a lift of his chin and a bit of a grin, Without any doubting of quiddit, He started to sing as he tackled the thing, That couldn’t be done – and he did it!

There are thousands to tell you it cannot be done, There are thousands to prophesy failure, There are thousands to point out to you one by one, The danger that waits to assail you. But just buckle up with a bit of a grin, Then take off your hat and go to it. Just start in to sing as you tackle the thing, ‘That cannot be done’ – and you’ll do it.

George’s light-hearted yet meaningful message drew considerable affirmation and applause from his audience. He thanked everyone who assisted in the work of bringing it to this point – it was an achievement to be proud of. In order to demonstrate how successful they had been he made a comparison with what were the biggest and most successful co-operative companies. The largest co-operative company transacting business in New Zealand – the Farmers’ Co-op Association, with headquarters in Canterbury – had in the first year of operation 800 shareholders with a subscribed capital of £17,500 and the total amount of business transacted was £15,234. The Taranaki company went to allotment with 730 shareholders, representing 2,001 shares, or £20,010 subscribed capital. The company now had nearly 900 shareholders, having added upwards of 150 since going to allotment. The position of the Canterbury Farmers’ Association in the second year was 1,076 shareholders and £26,000 subscribed capital and the value of the business transacted for that year was £62,700. The chairman also referred to another company that the meeting might like to measure success against, The Farmers’ Co-operative Auctioneering Company with its headquarters in the Waikato and considered to be one of the most successful co-operative companies in New Zealand. Having commenced operation some six years earlier by taking over a substantial existing business in the Waikato, the first report showed that the number of shares held at the end of the first year was 3,000 at £5 each, which represented £15,000 subscribed capital. The Taranaki company’s capital was between £23,000 and £24,000. It was the end of the third year before the Waikato company arrived at the same position.

Consolidating the company’s healthy position as it stood in the starting blocks was chairman George Buckeridge’s prime aim at this juncture. Knowing that this was probably the most critical moment in the set-up procedure, every stone had been turned to ensure a smooth and positive beginning. He told the meeting that although their company ‘had not yet any permanent officers appointed they had already secured a sufficient amount of business to put through which would place them on equality with the Canterbury Farmers’ Company in their second year of business.’

This statement on the prospect of success drew immediate applause from the floor. Apart from the considerable time and effort put in by many of those closely associated with the organisation in the initial stages, the basic concept had been taken up, accepted and supported by the rank and file farmer, which was the most gratifying aspect of the whole project. George Buckeridge went on to express his gratitude to all who had worked with him and for the very able assistance given.

An army may have a very good general but he could not win a fight unless he had efficient forces behind him, this company had these forces and it had very able seconds and thirds in command.

In concluding his address he noted a particularly enormous contribution: ‘an achievement which the whole company should be proud of’. Mentioning James Barkla, the meeting erupted into spontaneous applause. Mr Barkla demonstrated what could be achieved by someone who put his shoulder to the wheel in a determined manner. Buckeridge also spoke of Mr Bullock of Tarata whose name had been omitted from the list of candidates for the position of director. He said that Tarata was not one of the richest districts in Taranaki, so Mr Bullock’s achievement was all the more creditable, this again drew applause from the floor. Now the chairman emphasised the fact that those elected to the board of directors were going to have some hard work to do. ‘Any fool could start a thing but it took clever men and energetic men to make a success of it.’ The success of the venture now depended on the directors.

The meeting now turned to matters pertaining to servicing the whole province and James Corrigan said that he would like to see the company purchase businesses along the coast, ‘so as to have one great business concern involving auctioneering and trade and business generally of farming requisites’. He felt that some farmers were reticent, thinking that the company would never get started. He now trusted that the directors would approach the owners of suitable businesses with a view to purchasing and establishing branches from Waitotara to New Plymouth.

Reference had already been made by the chairman that permanent officers had yet to be employed to transact the business of the company but nothing was forthcoming as to how this was going to be accomplished. In reply to a question the chairman said that the Waikato Farmers’ Co-op started out by purchasing McNicol’s business for £33,120. In payment the vendors took 6,624 fully paidup shares, ‘but not a penny piece in cash’. This had provided them with a wonderful start and had received eight per cent on their money. The £33,120 represented properties, stock etc., and there was in addition £5,000 paid for goodwill which the company wrote off inside two years. He went on to say that, ‘doubtless McNicol’s business was a very good one at the time, but if the farmers decided to run their own business McNicol’s may not have remained so viable’, implying that any large proprietary company would have difficulty competing with a large farmers’ co-operative operation. This was possibly the first intimation of what was to follow although it seemed that the meeting had yet to pick up the implication. Mr Taylor again rose to ask, ‘I would like Mr Corrigan to give some idea of what can be done’. The chairman responded by saying, ‘It is impossible to say what can be done, we do not know what businesses will be approached or what terms they will be prepared to offer. Until we know, it impossible for anyone to predict what can be done’. Mr Taylor responded by saying this was contrary to what Mr Corrigan had said. The chairman replied: ‘I believe business could be secured on favourable terms, but it would not be advisable to indicate them, that must be left to directors’. Mr Taylor challenged again: ‘We should have something more than that, we have not any more money in hand than would run an ordinary lolly shop in High Street’. The chairman now firmly told Mr Taylor and the meeting that so far as the acquisition of business was concerned, the company must not unduly precipitate matters. It must be assured that it is strong enough to go ahead against opposition if need be. He said, ‘the experience of other people in certain directions – is going to be our experience if we take the same direction’. Supportive calls greeted his comments. A few interjections were audible from those who considered that if the company did not start with a full complement of branches throughout the province shareholders would lose faith in the organisation, but the chairman refuted these suggestions by saying that they had no idea what businesses would be offered and that if enough finance was available to establish two or three outlets then this would happen and if they found they had sufficient funds to establish five or six it would be foolish not to, but that was a matter for the directors.

Mr Laurent wanted to remind the pessimists amongst them that whilst the company had £22,000 subscribed, it was not long ago that three small co-op companies with £1000 each had wiped out the Crown Dairy, but probably the most profound and calming support came from Duncan Scott, who said:

Mr Chairman, so far as this company is concerned, and so far as any money I have put into it, I am quite content to have it in the hands of the directorate. I think a lot of the non-sensical questions which have been asked should be put down and let us get on with the business.

He was loudly applauded and a comment from the floor followed:

Hear hear! We cannot all have stores at our back doors, but in helping the company we are helping to break down monopolies and helping along Taranaki. Let us all give the directors a free hand.

Again the audience applauded. The vast majority were obviously unanimous in their determination that the meeting would fulfil its obligations and, realising his strong position, George Buckeridge called on the meeting to reaffirm its support:

Now, gentlemen, I have made the position of the company quite clear – (Voices: ‘Yes’) – both in regard to the amount of cash actually subscribed and the amount of subscribed capital? … I have read to you from the report of the Farmers Association in Canterbury the actual amount of share capital subscribed

by them at the end of their first year, and I have shown you that we are very nearly in as good a position now although we have not yet started. I take it that every share in our company is financial today and will be financial all the way through. Although the actual cash is not in hand it is as good as in hand, because the uncalled capital of a company is always good security to finance upon.

The motion for the adoption of the chairman’s report was put to the meeting and carried unanimously. Twenty-three nominations were received for the directorate, 15 being required. The result of the ballot of those elected was: G. H. Buckeridge (Eltham) 201, C. D. Dickie (Waverley) 178, J. Barkla (Hawera) 176, A. F. Symes (Patea) 172, W. F. Coombridge (Te Kiri) 157, E. A. Gray (Lowgarth) 150, D. Todd (Inglewood) 149, A. E. Death (Hawera) 147, A. Hunter (Hawera) 146, J. R. Corrigan (Hawera) 145, T. Foreman (Alton) 144, G. Gwynne (Kaponga) 129, W. Jones (Kaimata) 127, W. Richards (Cardiff) 124, W. Skedgwell 110. Mr A. T. Wills proposed that there be one auditor. This was seconded by J. R. Corrigan and it was carried. Messrs J. A. Turton, W. O’Callaghan and Messrs Rowley and Gill (Wellington) were proposed for the position, and the ballot declared in favour of Mr Turton.

It was decided to leave the auditors remuneration in the hands of the directors and that it be no less than ten guineas nor more than 20 guineas, and the matter relating to the salary of the secretary was left in the hand of the directors. Mr R. W. Baker had undertaken the services of interim secretary throughout the initial meetings and the question of recognising his contribution was also left up to the directors. However, the chairman referred to his good work and accorded him a hearty vote of thanks. Mr Baker, in reply, said ‘the work has been a labour of love’ and that ‘he had a good man to work with in Mr Buckeridge’. Mr C. Gibson, of Hawera proposed a vote of hearty thanks to Mr Buckeridge and Mr Barkla for their efforts in promoting the company and this was carried unanimously. Mr Buckeridge cordially thanked the shareholders for the vote of appreciation. He said he felt ‘deeply gratified at the support given to the Society. It had been a hard fight, but the harder the fight the better the victory. They had not yet won the fight, but they had carried the first line of defence. And there was no doubt that they were going to achieve victory’.

Applause greeted his final words. James Barkla also briefly returned thanks by speaking optimistically of the future of the Society. The well attended, highly charged meeting came to a satisfactory conclusion.

There was a further meeting gathered on this momentous day to elect a chairman and other executive officers. On a motion proposed by Mr Gray, seconded by Mr Death, George H. Buckeridge was elected first chairman of The Farmers’ Co-operative Organisation Society of New Zealand, and on the proposal of Messrs Coombridge and Barkla, Mr Alex Hunter was elected deputy chairman. Messrs Gray, Death, Barkla and Corrigan with the chairman and deputy chairman were appointed to the executive, with a quorum of three. They also resolved to make the first call on funds to pay £162 associated with initial set-up costs and resolved to ‘approach different firms in the district and obtain any information regarding any business that can be bought and to submit to the next meeting of directors’. As a short arrangement an offer was made to Messrs Halliwell, Robertson and Blair, for the use of the corner and adjoining room facing High Street, as temporary offices at the rate of 12 shillings per week.

George Buckeridge was without doubt a man of immense vision with a passion for the successful evolution of all things agricultural and he deserves credit for being one of Taranaki’s, and indeed New Zealand’s, founding fathers. As time goes by, entrepreneurs like Buckeridge fade in the mists of time, yet their unseen industry and foresight has contributed enormously to the Taranaki of today. Many followed who also deserve acclaim, but few had the energy and ability to make such a significant impact in this province on the western edge of New Zealand.

NINE

A Charging Stallion

Collaboration and co-operation was the name of the game. When it comes to the farming fraternity, stronger than any commercial rivalry is the bond that exists between the workers of the land, particularly when support or principle needs to be expressed. It was not a surprise that in the quest to receive an equitable outcome in the endeavour to relieve some of the upfront costs involved in selling and buying stock, that South Taranaki farmers found a willing partner and ally in Arthur William Gillies. While there were few formal plans in place regarding the staffing or internal and external infrastructure for commencing a grand provincial stock and station operation, we can only assume that an informal gentleman’s understanding had been negotiated between trusted friends and colleagues in the local stock and station industry to facilitate the working operation of this large new co-operative, perhaps embracing similar components of the Waikato Farmers’ Co-operative’s purchase of McNicol’s business described by George Buckeridge at the Statutory Meeting. With the commencement of possibly the largest dedicated rural Taranakiowned commercial enterprise in the province, there was little evidence of management, staff, premises or other administrative arrangements. There would be little if any co-operation from other existing, well established companies with the prospect in their view of losing a substantial amount of the market share to a newcomer with significant support within the farming community. Perhaps it was not surprising that just two weeks after the Statutory meeting, on 13 February 1914, an invitation was received by the Farmers’ Co-op directors from Gillies and Nalder to purchase its entire stock and station book of business, including incumbent management, staff, premises and saleyards.

Arthur Gillies was an astute and experienced trader and, as we already know, had been the first chairman of North Otago Farmers’ Co-operative Association Limited, Oamaru in 1901. He remained in that office until 1904 when he moved to Hawera and established Gillies and Nalder, stock and station agents. In his role of chairman of directors with the North Otago co-operative he had experienced the huge growth and inevitable pitfalls of what was a relatively new and challenging trading venture in New Zealand. It transpired that he also chaired the South Taranaki Winter Show Co. Ltd, which owned premises on the east side of Princes Street, Hawera, known as the Winter Show Buildings, a portion of which was leased to Gillies and Nalder to operate their stock and station business. I guess the old saying ‘if you can’t beat them join them’, is appropriate here, as Gillies and Nalder willingly and with grace offered their South Taranaki operation to the new Farmers’ Cooperative. This would provide a welcome stabilising ingredient to the new venture. However, the decision to accept this seemingly excellent arrangement was not made in haste; the offer was not immediately approved, with further consideration deferred until 7 March.

Meeting in what was now the ‘Registered Office’ of the company, Central Buildings, High

Street, Hawera (on the corner of High and Union Street), the Farmers’ Co-op board was confronted with many tasks, requests and decisions. A hearty vote of thanks for his past services and best wishes for a ‘bon voyage’ was accorded George Buckeridge on the eve of his departure on a three-month, worldwide trip to attend to a variety of personal business matters. The board had taken the opportunity to engage George Buckeridge, whilst overseas to explore profitable trading opportunities and possible business agencies for the Society. He was also charged with the responsibility of ‘selecting the best firms in the United Kingdom and elsewhere for the distribution of produce entrusted to the Society’. In addition he asked to ‘make arrangement for agencies of all kinds in various parts of the world’. A motion was moved by Mr Symes and seconded by Mr Coombridge, that £100 be voted to Mr Buckeridge for expenses on his trip abroad. Moved as an amendment by Mr Gwynne that £150 be voted. Mr Buckeridge vacated the Chair to Mr Hunter. The amendment was put and carried. On being put, the substantive motion was also carried.

In George Buckeridge’s absence, deputy chairman Alex Hunter took the reins of this charging stallion, and this responsibility would take him on a fascinating journey for the next 30 years. As the pace quickened the board met three times during the month of February 1914. In March the executive wrestled with the logistics of facilitating the many and various elements of the new venture.

A satisfactory audit on the books of Gillies and Nalder had been completed, together with a report on properties owned by them, and it was moved by Mr Corrigan and seconded by Mr Gray that Gillies & Nalder’s business be purchased at the best terms possible to be made by the executive. The motion was carried.

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 Society would confirm the issue and alter the Articles of the Society. Effectively the entire Gillies and Nalder operation was sold to Farmers Co-operative Organisation Society on 1 April 1914 for an undisclosed

Alex Hunter, chairman of directors of The Farmers’ Co-operative Organisation Society of New Zealand Limited, June 1915–44.

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.

78 TOO OLD TO BE SECRETS NOW

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 prev iously 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

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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.

ELEVEN

Over Our Own Floors

Great Britain declared war against Germany on 4 August 1914. Farmers’ Co-op directors were unprepared for the untimely disruption this would bring, particularly in relation to the availability of males in the workforce in this distant corner of the British Empire. 120,000 New Zealanders, over ten per cent of the population, would be enlisted in the armed services and 103,000 would serve abroad. 18,500 died in or because of the war and 50,000 were wounded. Had the Farmers’ Co-op board had the benefit of hindsight, the decision to embark on such an enterprise may have been delayed. However, directors and management drew a long breath as the provincial juggernaut settled in and became the centre of attention.

Chairman George Buckeridge was, as we know, absent overseas investigating trading possibilities for the company and producers. His decision to go at this rather delicate and possibly inopportune time was to ensure Farmers’ Co-op had a dairy produce co-operative marketing scheme in place before the arrival of the forthcoming dairy season and with his connections he was the man for the job. Organisation was left in the capable hands of deputy chairman Alex Hunter and his board to evaluate the vast array of propositions placed before them. Combining the director’s personal farming activities with an enormous Farmers’ Co-op workload led the board to meet on Saturdays at 11am, and they often laboured throughout the day. Considerable work was also going on behind scenes as they knew only too well that bad decisions made today would impact on tomorrow.

The Society’s most urgent consideration was the marketing of dairy produce under a planned co-operative marketing scheme at present being arranged by George Buckeridge. Dairy cooperatives and some proprietary dairy companies were being established throughout the province and with significant quantities of butter and cheese outstripping the capacity of the New Zealand home market, marketing overseas was a priority. The Dairy Export Control Board and what became the Dairy Board were still some time away, and marketing was being handled, often in an ad hoc way by individual companies and co-operatives, many sending their own representatives overseas to negotiate deals. Tooley Street, London situated on the south side of the River Thames between London Bridge and Tower Bridge, had become the mecca for trading in dairy produce, with a tradition dating back many hundreds of years. The district was nicknamed ‘London’s Larder’ and agents such as James Kowin, of Lovell and Christmas, reputed to have the major part of the Taranaki’s trade at the time, came to Taranaki and was followed by representatives of other London firms. However, it was Henry A. Lane and Co. in Tooley Street, that George Buckeridge associated himself with.

Farmers’ Co-op directors had already met with a number of Taranaki dairy company representatives in connection with marketing dairy produce, and with the milking season fast

OLD TO BE SECRETS NOW

arriving, there was pressure to have the sale and distribution of produce settled for the coming season. A board decision was made to write to all companies asking them to ‘withhold their final decision regarding co-operative marketing of their dairy produce until such time as the Society has had an opportunity of placing their scheme fully before them.’

Relief at the return and attendance of chairman George Buckeridge at the Tuesday 9 June directors’ meeting was plainly evident. He addressed the meeting with an ‘account of his doings during his trip to Great Britain and America and fully outlined the arrangements he had made with regard to the disposal of the Dominion’s Dairy Produce on the Home Markets.’

It was moved by Mr Corrigan that Mr Buckeridge supply the Society with a typed report on his ‘doings’ and that it be pasted in the Minute Book as a record of the arrangements he had made ‘in the old country with regard to the handling and marketing of New Zealand dairy produce in Great Britain’. This request was agreed to and the following is a transcript of that report:

REPORT OF CHAIRMAN ON INQUIRIES MADE BY HIM RE TRADING OPENINGS &c ON HIS VISIT TO UNITED KINGDOM AND ELSEWHERE.

In accordance with your request, on my journey to the United Kingdom, I made enquiry on your behalf, at the various towns, in the different countries I passed through, and in the United Kingdom, as to the possibilities of opening up profitable trade and obtaining business agencies for the Society.

FIJI: The first place I called at was Suva, and after making extensive enquiries, from all the best business firms, and from the Department of Agriculture, I found the possibility of trade with these islands, except perhaps for onions, was at present not practicable.

HAWAII: The next place I called at was Honolulu, in Hawaii Islands. Here I called on all the best firms and ascertained that there is a good prospect of trade being opened up in the Butter, Cheese, Meats (both tinned and frozen) and I have taken one sample order from Messrs Davies & Co, for two crates of coloured cheese, to see how the quality will suit the trade there. Later on it may be possible to open up trade on an extensive scale with frozen beef, mutton and lamb, if it can be delivered, as desired, to meet the regulations of the United States Army authorities.

BRITISH COLUMBIA: Here I found trade in an unusually depressed condition, due principally to a financial stringency, which has been caused recently owing to a stoppage of large expenditure in railway construction and other public works. Money is very scarce and it is possible to obtain as much as 15% on first mortgage, which will give you some idea of the state of the money market. Such a condition of affairs is not conducive to the realisation of high prices for our products, and this condition has, unfortunately, been made worse for us owing to the attitude of many of our exporters of butter, over the past few years, in so overloading the market that the prices have been unduly deflated, and the firms that have handled the New Zealand butter have, every one, made big losses on it. This will, in the opinion of all those I interviewed in Victoria and Vancouver lead to a disinclination on the part of firms there to buy their season’s requirements at the beginning of the season, and they most likely will be tempted to transfer their attention to Australian butter, which is cheaper than N.Z. or to buy only from ship to ship. After making extensive enquiries I did not find that there is much likelihood of being able to open up trade in Canadian manufactured goods. The only opportunities I could see were for tinned fish and Canadian lumber. These we may, at some later stage be able to take up.

UNITED STATES: There appears to be a good opportunity of extensive trade opening up shortly between U.S. and N.Z. in butter and frozen meat and also in raw hides. There was not any evidence of any great interest in N.Z. produce in New York although a few firms seem inclined to deal on commission with limited quantities of butter. I find it is wise to be very careful in dealing with many of the so called Commission Houses, as the reputation they enjoy, for strictly honest commission dealings, is not too clean, and we would need to be very careful in selecting firms to sell on commission for us, that we did not select the wrong firms. Altogether I ascertain it would be better to try to deal on a C. I. F. basis, if possible, with firms of repute, rather than to try to sell on commission. I put through

enquiries, and gave a good deal of information, which may lead to business during the coming season. A difficulty we will have to contend against is the stringent laws in the United States – which applies to the Hawaii Islands also – against the slightest trace of Boric Acid in butter. This would have to be guarded against very carefully.

I was able to secure the Agency of Pratt car from ‘The Elkhart Carriage and Harness Company’, Elkhart, and submit for your approval, a contract I made with them for their sole agency in New Zealand.

UNITED KINGDOM: On my arrival at Queenstown I at once communicated with Horace Plunkett, at Dublin, the President and Organiser of the Irish Agricultural Organisation Society – and endeavoured to make an early appointment to meet him and his committee to discuss the possibility of their acting for us, as our distributing agents, in the same way as they act for the Irish Creameries.

On my arrival in London, I received a letter from Sir Horace, making an appointment for me to meet him in Dublin three days later.

My first call in London was upon Mr Ellison, who was not in when I called, but I got a letter from him next day, asking me to call and I spent three hours with him that day, discussing the possibility of the Producers of New Zealand being able to obtain some measure of control over the distribution of their Produce on the Home Markets. Mr Ellison told me that, unless we had the bulk of the Produce behind us to deal with, we had no chance whatever of making any arrangements with the wholesale merchants in Tooley Street; but that, if we had the assured support of a majority of the Produce in butter and cheese coming from N. Z. we could make almost any terms we chose to ask. This was just what I anticipated, and was the reason why I had got into communication with Sir Horace Plunkett. I left the same evening for Dublin, and at eleven next morning I met Sir Horace Plunkett, his Secretary, Mr R. A. Anderson, and his committee, with whom I spent four hours, discussing the possibility of their Agency Society acting in a like capacity for us in N. Z. as they do for the Irish Creameries.

I was first met with refusal, because they considered we were competitors with them on the United Kingdom Markets; but after carefully going into the whole question with them, I was able to prove successfully to them that we are not competitors, as we produced butter at the opposite end of the year from them, when they had none to sell, and that by selling our produce, on similar terms to those they sold for the Irish Creameries, they would be in a position to hold their customers together over the whole of the year – which would be a matter of very great importance to them – and they would be put in a position to supply an article similar to their own, over the whole year. This they eventually recognised and they decided to eliminate that part of their enunciated business policy whereby they set out the ‘Irish, English and Scottish Organisation Societies existed as a defence organisation, to protect the producers of England, Scotland and Ireland, against the incursion of foreign produce, from the Continent and the colonies’, and wherein they look upon the colonies as ‘foreign competitors’ and got them to strike out the reference to the colonies and to support us in distributing our produce.

They were very desirous that I should meet the Chairman of Directors of the Irish Agency Society (Lord Monteagle), his manager and committee, so I stayed another day and went to Limerick to meet them, and spent about seven hours with them, by which time I made full arrangements for the Agency Society to handle our produce on the same terms as they do for their own creameries, viz: To sell it over their own floors in London Glasgow, &c, to the retail trade, in 1 box up to about 10 box lots, and to charge a commission for doing so, and to protect us against bad debts, of 2½%. I also arranged that they would work in harmony with the firm we appoint as Agents to distribute the wholesale trade.

My next move was to try and persuade some of the wholesale merchants to work with the Irish Organisation Society; and, bearing in mind what Mr Ellison had said, I expected to find considerable trouble in this direction. This I found was the case, and had it not been that I was particularly well circumstanced to make a very strong case, I should have certainly have failed in the mission. As it was I have been able to induce at least one very strong firm to work along these lines, and to do so at a rate of 2% commission, out of which they protect us against all loss by bad debts, and would allow a rebate of commission of ½% appointing our Society their Agents in New Zealand if I was willing personally to do so.

I next saw the manager of the Irish Agency Society in London and in Glasgow and introduced them [to] the managers of our Wholesale Firm, and endeavoured to arrange with them the manner in

which the business should be conducted, so as to prevent any overlapping, and this I was successful in doing. This now places us in a position, if we affiliate with the Irish Agency Society (which I strongly recommend should be done – which will cost us from £20 to £200, according to the number of shares we apply for – we cannot apply for less than 20 nor more than 200 and they are £1 per share) of being able to sell ‘over our own floors’ in the United Kingdom, and we have reduced the gap between the producer and the actual consumer to an irreducible minimum, unless we establish our own retail shops. This I look upon as quite an impossibility as it would require the establishment of a company with a capital of £5,000,000 to £10,000,000 and this is beyond the possibility of the N. Z. Producers for many years to come.

Beside the Irish Agency Company, I interviewed the London Agency for the N. Z. Farmers’ and Canterbury Farmers’ Co-op. Associations and I found, however, that, upon the terms they quoted me, we could make better arrangements outside them. This may be rectified after the proposed conference in Christchurch. Meantime I cannot recommend using their agency in London.

I also interviewed the Port of London Authority re the handling of our produce and was taken by them over the London Docks. I was greatly impressed with the improvements that have taken place in this direction since I last had the opportunity of seeing the Dock equipment, and I do not find very much room for complaint. What few points I did object to I was assured they were taking steps to put right.

I saw a number of firms re acting as our buying agents in London, and place at your disposal the letters from them on the matter.

I also saw the High Commissioner and the Produce Commissioner and Mr Wright the Dairy Commissioner and discussed with them in connection with the dairying industry &c.

I also saw a number of firms of manufacturers of Motor Cars, and am laying before you several proposals for sole agencies for N. Z. which I have tentatively obtained on your behalf and which I recommend to your attention.

I also saw a number of firms re Basic slag and super-phosphates, including the Irish Wholesale Society, and I append, for your information, various letters which I received on the subject, and which are self explanatory. We can be in a position next year, provided we can get the orders in time, to procure these manures at the very lowest possible cost.

In conclusion I would like to say that I was treated, as your representative, on all sides, with the utmost courtesy, and had every attention shown to me.

As I promised before leaving, I kept a record of my expenses so as to show you how your grant toward my expenses was spent.

It cost me slightly over £225 for the trip; and seeing that I had private business of my own to do, as well as that I was undertaking of behalf of the Society, which absorbed by far the greater part of my time – I am not going to ask the Society for any further contribution.

On the whole the Society should be greatly pleased with the position they are now in to handle Dairy Produce this coming season, and to deal with the sale of manures next season. Yours faithfully, Geo. H. Buckeridge

George Buckeridge’s mission abroad had achieved exceptional results for Farmers’ Co-op and the industry as a whole. The board passed ‘a vote of thanks to Mr Buckeridge for his efforts on the Society’s behalf as disclosed by the aforementioned report of his trip through Great Britain and America’. He had secured extremely sound retail partners in the very influential gentlemen, Sir Horace Plunkett president and organiser of the Irish Agricultural Organisation Society and Lord Monteagle to distribute produce along with the appointment of a well positioned and reputable wholesale firm. The name was never disclosed. The finance sub-committee was appointed to deal with the matters relating to Mr Buckeridge’s report. No detailed record can be found; however, it is apparent that George made a number of trips in connection with the sale of New Zealand dairy produce on account of his own agency business over the years.

Circulars were sent to all dairy factories throughout the districts of Taranaki requesting that they meet delegates from the Society ‘at a place and time to be appointed to lay proposals in regard to the handling of dairy produce’. The dairy factories responded, although the precise number that did is unknown. It appears a ‘minimum participation’ was requested and it is minuted that: The dairy companies that are willing to come into our proposed scheme of marketing dairy produce be notified that providing fifteen (15) factories are willing support the scheme, this Society is agreeable to take the necessary steps to enable a committee being elected by the contributors under our B issue of shares for the controlling of our Dairy Produce Department and that the Chairman and Secretary be authorised to draft a letter to the factories interested putting the position before them.

Concerted efforts by farmers’ co-operative societies throughout New Zealand were being made to find some common ground to bring their undoubted influence in the agricultural sector under one umbrella and a conference of societies was held in Christchurch on 24 and 25 June 1915. Messrs Hunter, Death, Corrigan and Buckeridge were appointed delegates to represent the Society:

COOPERATIVE ASSOCIATION

A Proposed Federation

By Telegraph – Press Association

CHRISTCHURCH June 25

This morning the managers of the various co-operative associations represented at a conference met and discussed a number of matters in committee. The principal subject considered was the question of a federation of farmers’ co-operative associations in the Dominion. In the afternoon it was recommended to the conference that a scheme of federation should be approved. The recommendation was unanimously agreed on, and a committee was set up to frame articles of association. The decision to adopt a scheme for the federation, of all farmers’ co-operative associations in the Dominion will, it is believed, have very beneficial results. These will be felt more particularly in the North Island, where there are comparatively few farmers’ co-operative associations run on similar lines to those in the South Island. There are quite a number there in the embryonic stage, which are being fostered by various branches of the Farmers’ Union. There is, however, a great deal of overlapping, which does not make for the best results being obtained from the principle of co-operation. The proposed federation, it is believed, will obviate this state of affairs and result in the fullest benefit being obtained from cooperation. The conference has concluded its sittings.

Alas, although deals negotiated by Mr Buckeridge whilst in Great Britain for the sale of produce on the Home markets and a number of deals in connection with ‘chemical manures’ and basic slag still held good – the outbreak of war meant many of these arrangements were suspended.

In July 1914 Alex Hunter and George Buckeridge were appointed to represent the Society at a conference in Palmerston North in connection with marketing of dairy produce. Collective bargaining was gaining popularity, proving to have considerable advantage over one-off arrangements between individual dairy companies and overseas importers and exporting large quantities of butter and cheese commanded much better financial returns. Some London firms sent representatives to New Zealand and offered cash advancements on the season’s dairy produce, in effect providing a guaranteed minimum purchase, with buyers underwriting any loss accruing through over-estimation. The discussions now being held regularly between farmers’ co-operatives, dairy co-operatives and companies, and the recently formed Federation of Co-operatives may have persuaded The Farmers’ Co-operative Organisation Society of New Zealand Limited marketing venture, initiated by George Buckeridge, to place the dedicated marketing of dairy produce initiative on the back-burner. Although no minuted details of a decision to abandon the concept can be found, the first annual report of the Society makes reference to:

The scheme which was originally propounded for the selling of produce on the Home markets had for various reasons not matured.

88 TOO OLD TO BE SECRETS NOW

It was somewhat disappointing after all the time and work that had gone into the co-operative marketing scheme. The chairman was philosophical about this and other problems that had eventuated throughout the Society’s first year operation and said, the first year’s working of such a society as the Farmers’ Co-op. must necessarily be of a more or less experimental nature. They must be expected to make mistakes, but these in the future would be avoided as they gained experience.

Co-operation between farmers’ organisations was now becoming more common as industries throughout the Dominion connected with primary produce began to strengthen and mature. The farmers’ voice was now one to be reckoned with. Recently elected Prime Minister William Ferguson Massey, a farmer himself, was supporting and articulating the agricultural cause in Parliament. He had support from many other influential farmer colleagues, including his friend and associate Sir James Wilson, first chairman of the New Zealand Farmers’ Union, and considerable progress was being made in establishing better conditions for the New Zealand farmer. It was not surprising when Farmers’ Co-op received a letter from the New Zealand Farmers’ Union in March 1915 in reference to co-operation with them in connection with their members’ indenting requirements.

Any Fool Could Start a Thing

Back to the beginning. The executive committee met at the company’s registered office on Saturday 18 April 1914. It was the first meeting, following two weeks of trading. The time had arrived when the words of George Buckeridge, ‘Any fool could start a thing but it took clever men and energetic men to make a success of it’, would be proved one way or the other. Directors were now challenged to place their knowledge and experience to the test, with dozens of proposals, alliances, agencies and opportunities coming forward for consideration. There was no strategic business plan to drive the company down a particular path nor any indication as to what the future might hold, yet the decision made now would be critical to creating an infrastructure fitting a lasting, vibrant, all-embracing co-operative trading enterprise. The Farmers’ Co-op seemed to be attempting to be everything to everybody and this would in fact become the nemesis of the company in the following years. However, an era of great expectation was in front of them, with few commercial boundaries in New Zealand fully explored at this time. Proposals received over the first few months were so numerous that an indepth account of each would be a tome in itself and would not help advance this history. However, the following résumé will provide an insight into a sample of what was received, accepted and rejected:

A. H. Turnbull regarding grass seed.

A.H. Arthur offering property in Hawera for sale.

A.H. Moore re a section at Opunake.

An appointment was made to canvass Fire Insurance business.

Australian hardwood companies approached to provide an agency to supply timber.

Blackbourne and Smith. Agency for Little’s sheep dip. Declined.

C.L. St. Hill regarding appointment to take Mr Anderson’s place as Stratford Agent.

Dalgety & Coy. providing Society rebate of 1% on all shareholders’ wool clips.

Drench & Co. Agency. Osmond & Co and D.H. Raits. Agreed.

Eltham Co-op Dairy Company wishing to join the Society.

Extra assistant required for the produce and correspondence departments.

G. F. Hutchinson offering property.

G. Griffiths & Co. New Plymouth offering property in New Plymouth for sale.

G. W. Frier, Oamaru, enquiring for position.

‘Gillanders’, Union Street, Hawera. Prospect of purchasing his grain and produce business deferred

First logo of Farmers’ Co-op.

OLD TO BE SECRETS NOW

until a suitable site adjoining the Hawera Railway Station be found to erect a bulk store. Hupp Car. Recommendation that the Society purchase a Hupp Car for demonstration purposes. Inglewood Saleyards. 1 August 1914. To be considered by the full board.

J. R. Paterson and C. L. St. Hill applying for positions. Nothing to offer at present. J. K. Silby, Awatuna, offering property for sale.

L. A. Nolan & Co. Cement agency. Accepted. L. S. Maxwell & Co., Auckland, offering agency.

Mathews Gamlin and Company offering business. Inspected. Mesdames Cowper and Campbell offering property adjoining Railway Station, Hawera. A. McKenzie, for position of agent in Wanganui. Director to interview Mr McKenzie. Mr Anderson appointed as Stratford agent at £200 (having refused at £175).

Murray, Roberts & Co., agency of Gillies and Nalder, to continue with Farmers Co-op. Offices at Stratford. Buckeridge, Hunter and Death, power to act. 1 August 1914.

P. G. Nops offering T. Drakes Store at Inglewood for sale.

Palmer and Gray, Waverley. To act for the Society taking orders for manures &c. Patea Freezing Coy., in reference to them purchasing superphosphate through FCOS. Repairs be made to the Auroa and Manaia yards.

Tayler Scrivener & Co.’s Store at Eltham, 1 rd 30 perch. 100 ft frontage, 300 ft depth, 2 storey. Blg 2 shops, stables etc. subject to 11 years lease at £208 per annum, £100 now balance in 12 months. Blgs insured for £1350 & £250. Price £3500, £500 cash, £1000 shares, £2000 any term.

The Mutual Life & Citizens Assurance Company. Agreed.

Winter Show Coy. Messrs Goodwin & Hooker re exchanging Section F of the Winter Show Building for a section at the back adjoining the horse yards.

Wm Cowern offering property for sale in Hawera.

Young & Co., Stratford and Eltham business offered. Declined.

During the early months of 1914 the Honey Producers Association and Beekeepers waited on the Society requesting assistance to acquire storage facilities and finance. Storage was eventually arranged with the Hawera Dairy Company and permission granted to use Farmers’ Co-operative Organisation Society of N. Z. Ltd premises as their registered office. An advance was also approved to buy out Lenxe Bees in the Wairarapa. The alliance with the Honey Producers and Beekeepers was short lived and disappeared from minuted records of the company.

Stock sales; wool; land and buildings; finance; grain and seed; manures including phosphate fertiliser; basic slag; lime; corrugated iron; stock food; animal remedies such as drenches, antiseptic ointment, lick and petroleum jelly; disinfectant; milk and cream cans; shoes and clothing; fencing wire and posts; timber; tyres and benzine; and shipping, with a host of agency arrangements, were retailed out of most branch stores. In fact the Society undertook to transact ‘every class of farmers’ business efficiently and economically’. Farmers’ Co-op accepted appointment as chief agent in South Taranaki for Taranaki Farmers’ Mutual Fire Insurance Association, a locally established fire and general company with its head office at Eltham. Unfortunately certain lines of insurance could not be underwritten by this Mutual Association, so the Society had to arrange an additional agency with Yorkshire Insurance Office which, due to their membership of the Underwriters Association had become somewhat hostile to Mutual Insurance Associations with the result that the relationship with Taranaki Farmers’ Mutual deteriorated and the two parted company in 1918.

An agency with Southern Union in 1922 and later with the Royal Exchange played a vital role in establishing the Royal Exchange within the province. Throughout the 20th century, despite a number of amalgamations and name changes, there has been a long partnership between the Royal Exchange and the Company, including South British and New Zealand Insurance Company.

Resident inspectors domiciled in the offices of the firm were an integral part of the insurance service offered to shareholders and clients.

Farmers’ Co-op’s entry into motor-car and machinery sales was inevitable as automation gained popularity. Cars became accepted as a safe means of transport in the early 1900s, and mechanised farm implements and tractors were a welcome alternative to the horse. Motor cars were becoming particularly popular with farmers and their families who lived in isolated areas. Prior to 1898, under existing law, cars had to be treated like traction engines – travelling at walking pace and with men ahead and behind. To overcome this problem William McLean sponsored a new Act of Parliament: the McLean Motor Car Act, 1898. He campaigned and prepared a private member’s bill and, after months of debate, division and alteration, Lord Ranfurly put his name to the McLean Motor-car Act, 1898. It defined the motor-car as ‘any vehicle propelled by mechanical power, which unladen is under three tons in weight, so constructed that no smoke or visible vapour is emitted except from some temporary or accidental cause.’ The Act imposed a maximum speed of 12mph and a fine of £10 for excessive speed. The ‘no smoke or visible vapour is emitted’ requirement failed to receive much attention as automobiles and the combustion engine in all manner of transportation gained popularity during the century.

Agency offers for various models of motor cars began flooding in from companies almost immediately. Many were rejected and others, including Humber Cars, Thornycroft Motor Lorry & Willys Utility Truck, Triumph Motor Cycles agency, were considered and accepted. Of particular note was the agency for Hupmobile cars on 8 August 1914. Two months later the Society purchased a ‘Hupp’ car for demonstration purposes. In December 1914 a recommendation ‘that the directors

Pickering, Sagar and Leece, Motor Garage 1916, Regent Street, Hawera. Farmers’ Co-op Motor Car agents from 1915 until 1917.

COURTESY C. T. (TORRY) LEECE

OLD TO BE SECRETS NOW

accept the agency for the Morris Oxford cars’ was carried. There are no records indicating precisely how the Society managed the motor and machinery department in these formative years. They had no experience or connections in motor or machinery trading and it is reasonable to assume that the decision to work through agents was probably seen as the means to becoming established in what was a relatively unknown commodity. We do know that they had an agency arrangement with the International Harvester Company for one year that was cancelled and that R. H. (Dick) Leece formed a partnership in 1915 with the blessing of Farmers’ Co-op, comprising Messrs Pickering, Sagar and Leece, specifically to sell machinery and cars on behalf of the Society on a commission basis. The business was to be ‘under the full directions of the Society’. In March 1916 the partnership agreed to accept an offer ‘with the company’s consent’ to enter into a threeyear lease with Booth McDonald who would construct a new building from which they would sell machinery and cars. Terms, commission rates and specifications relating to sub-agencies and branches were set by the Society. In his own words, R. H. Leece (who in later years married Bell Hunter, sister of Alex Hunter, Chairman of Farmers Co-op) describes his arrival in Hawera:

In Dunedin I worked for Nimmo & Blair and on 13 Jun 1913 I arrived in Hawera to work for Booth, McDonald. I was met at the station by Tom Denton, manager of the company.

In 1915, I commenced a partnership under the title of Pickering Sagar & Leece and we were engaged by Farmers’ Co-op. to operate their motor and machinery department on a commission basis. The Co-op was then handling the Hupmobile and one or two English lines.

In 1916 we obtained the Chevrolet Franchise from Dominion Motor Vehicles Ltd, Wellington and put up a record amongst the Chevrolet dealers by selling seventy two cars in the first year. We resigned our position with the Farmers’ Co-op. on 16 September 1917 and commenced business the following day on our own account in premises in Regent Street. These premises were previously owned by George Pound, who operated horse stables. We handled Dodge, Hudson and Studebaker for South Taranaki from Newton King.

The Society, working with Hupmobile and Chevrolet as the main brands, had yet to finally settle on one motor-car franchise and the manner it would conduct trading. There was significant demand for cars and machinery. An example of some of the decisions made in connection with the motor and machinery department were:

Eureka Implement and Machinery Company offering an agency. Gane Milking Machine Co. Ltd. Agency offered.

Mason, Struthers & Co. Dairy Milking Machine agency sought by FCOS. Hutchinson Pumps and Rams. Agency offered. Agreed.

Car for Waitara agent. That the car purchased from Mr Joll be handed to Mr Clark for use in the Waitara and Inglewood districts.

Extra traveller for machinery. To be held over until the directors’ meeting.

Despite the demand, trading in motor vehicles proved less than profitable in the early years. The fact that authority was granted to take 30 cars off the freighter Florence Luckenbach which arrived on 22 June 1916 exemplified the significant demand for automobiles. Questions were asked by shareholders regarding the lack of profit from this department of the business. So sensitive was the matter that the Farmers’ Co-op decided not to disclose the machinery and motor profit or loss to its shareholders at annual general meetings for fear it would be used by opposition to discredit the Society. In addition, questions were asked by shareholders as to ‘why no rebate was made on motor cars and machinery’. The fact was that the machinery section of the business ‘was a necessary evil’ in that while not profitable, it was a commodity that was demanded by the shareholders and the Society believed it should follow the same practice as other similar organisations. Reference was made to the manager’s car:

Decided to place on record for reference the verbal arrangements made with the manager for his private car – ‘that the managers’ car be charged to his personal account and that he arrange to reduce this indebtedness by a sum of not less than £5 per month.

Messrs J. Gibson and Patterson met with the directors on 20 March 1916 and a proposition was outlined offering two properties for sale, one situated on the west side of Princes Street, almost opposite the Winter Show Buildings head office, and another at Patea which included two buildings, a store and bulk store, for the sum of £20,000. The property consisted of:

Stock £7,000

Fixtures 500 Goodwill 2,000

Hawera property at 5,775 @ £50 per foot

Patea property at 4,000

Patea Bulk Store 750 £20,025.0.0.

Terms £7500 cash for stock and fixtures. Balance 1st Mortgage Debentures for 7 years @ 5½%.

The purchase of the Hawera premises at Princes Street, Hawera from Gibson and Patterson and a year or so later a large adjoining garage premises on Regent Street, owned by Messrs Norton and Caplen proved welcome acquisitions to the Society. Eighteen months after the purchase of the

Farmers’ Co-op Motor Car Display 1916 at the Winter Show Buildings, Princes Street, Hawera.

Left: R. H. Leece (the other man possibly Mr Pickering). COURTESY C. T. (TORRY) LEECE

Farmers’ Co-op wooden case used to import cans of motor spirit (petrol) before bulk transportation.

Princes Street property the Society commenced selling motorcars and machinery on its own account from these premises. This was the beginning of a love affair with cars and the motor industry which played a significant part in Farmers’ Coop’s trading successes in the years ahead.

Petrol, commonly referred to as Motor Spirit in the early years, was imported from America by Farmers’ Co-op in four gallon tins. Two tins to a wooded case were usually kept in concrete buildings which could hold up to 2,000 cases. There were no petrol pumps at this time, consequently it was poured into vehicles from the can with what was called a tripod – a rectangular receptacle with a brass spike. The rectangular piece had holes and a hose attached with a nozzle on the end. When a client requested petrol, a case would be opened and it was sold by the tin. The tripod was driven into the tin and tipped upside down into the car’s petrol tank.

Allan Rankin, a dedicated employee of Farmers’ Co-op for some 50 years, described how they served petrol from the store in the 1920s:

I would ask how much they wanted – they would probably say – ‘It will take two tins – 8 gallons.’ You stick the hose in the tank of the car and up end the tin that was soldered up – there was no screw top or anything. There was no seal on it. Then I would slam it into this tripod arrangement – the spike (which was brass) would then go into the tin. The tin would drain off immediately into the tank. If the tank wouldn’t hold it all – there was no way of stopping it – it would spill out over the tank and run down the gutter.

Between the shed and the building there was about a 20ft drop to a stream – we used to toss the empty tins over the edge and they were never moved – they piled up over the years and just rusted away.

After pumps were installed in later years Allan Rankin found the ‘tripod spike’ in a shed and gave it to a gentleman who ran a museum. When he passed away, all the artefacts were given to Puke Ariki. The tripod used to extract petrol at the Farmers’ Co-op New Plymouth motor and machinery department is now part of the Puke Ariki Museum collection.

Motor cars were and still are continually evolving, but the manner in which they were used was being developed through experience in the early 1900s. Farmers’ Co-op took the lead in educating shareholders in the correct use of this ‘marvellous invention’:

It is Illegal for Motorists

1. To splash mud or water over pedestrians.

2. To interrupt a funeral or other ceremonial procession.

3. To use chains on tar sealed road.

4. To carry passengers on the running board.

5. To allow the load to extend beyond the running board.

6. To drive across a footpath from a gate at a greater speed than four miles an hour.

7. To drive over a fire hose.

8. To drive within 15ft of a fire hydrant in use.

9. To run over either a ‘silent’ or ordinary policeman.

10. Left-hand drives are illegal.

Unanimous support from the entire Taranaki farming fraternity would have been just too much to ask. There were existing stock and station firms, auctioneers and many others with alliances and loyalties to small commercial enterprises who became disadvantaged by the establishment of this large farmers’ trading co-operative and in the ensuing years some retail traders were forced to sell or simply close their doors. This of course is now common practice in the quest for market share

ANY FOOL COULD START A THING 95

and a commercial reality. However, at this time in New Zealand it was a relatively new phenomenon, at least in South Taranaki, and it was seen as a thorn in the side by some, at least until the settlingdown period had passed. Only one month had elapsed since the opening sale and newspapers carried the following advertisement:

THE FARMERS’ CO-OPERATIVE ORGANISATION SOCIETY OF NEW ZEALAND LIMITED

Important notice

As it has come to our knowledge that reports are being circulated throughout the district to the effect that The Farmers’ Co-operative Organisation Society of New Zealand Limited are not in a position to finance purchasers at their clearing sales, we wish to give the statement an emphatic denial, and to notify all of our clients, both present and future, that we are prepared to finance all those requiring accommodation for stock. Whilst we can hardly think that the report mentioned has been circulated for the express purpose of doing harm to the Society, we deem it advisable that the true position shall be clearly understood by our clients, who can rely on receiving every attention and consideration, and all necessary accommodation from the Society.

A.W. Gillies, General Manager

G.A. Holder, Secretary

Farmers in many outlying areas, were keenly focused on making the new co-operative work for them and seized the opportunity to make applications to Farmers’ Co-op to construct saleyards and establish branches in their districts. Such was the influx of inquiries, that a motion was passed by the board that before consideration would be given to establishing saleyards, farmers in the district must subscribe £5,000 worth of shares. This proviso encouraged locals to publicly canvass the idea through local newspapers to find favour with the new Hawera based co-operative. One of its immediate neighbouring towns, Patea, had suffered a downturn and was going through a difficult period. The district had earlier lost the Agricultural & Pastoral Association and the Patea Freezing Company had gone into voluntary liquidation in 1910 despite an attempt to rejuvenate it when it took in Nolan and Tonks, stock and station agents as partners for a few years. However, with talk of extending both breakwaters and new meat works, in a letter to the editor in the Patea County Press on 8 April 1914, expectations of a revival in the town were plainly evident:

CORRESPONDENCE

To The Editor

Sir, Patea in the past has remained dormant, but I believe is on the eve of advancement, providing of course that the business people and inhabitants generally rise to the occasion. In the past the amount of business which has gone out of town is amazing, even more so than people realise. Nothing has been done to induce the people to come here to do the shopping. In every town that enjoys the privilege of market day, business in every sphere benefits considerably. Now that we are going to have a harbour, new meat works and are being brought up to date by a drainage and water scheme, we are in a position to advance our claims. Years ago a great deal of stock used to be shipped from the port, the West Coast of the South Island always finding a ready market. This trade has, I believe been lost. Stock is driven through Patea to the adjoining saleyards. A new firm, namely The Farmers’ Co-operative Association, has entered into the field, and are widening their scope, and if the claims of Patea were placed before them, they would I believe, readily agree to include the town on their list. The fact of the meat works being in our midst is sufficient proof of the necessity for a cattle market in the town. The farming community would welcome this

We do not hold ourselves responsible for the opinions expressed by our correspondents SALEYARDS at PATEA

forward step because of Patea’s central position. Land is plentiful, both municipal and private, which could be offered at a nominal rental. I hope, Sir, that you will take this matter up and suggest it to the local Chamber of Commerce to go thoroughly into the matter. Feeling certain that it is a favourable step and greatly to the interest of the town of Patea.

I am. etc., A. Dunkley.

n the relatively isolated west coast district of Opunake the local branch of N. Z. Farmers Union, chaired by a persevering and energetic Mr G. Looney, had shown particular interest in the establishment of a branch of Farmers’ Co-op. This N.Z. Farmers’ Union branch was one of the strongest in South Taranaki and well represented. Seconding a motion on the highly satisfactory annual result for the Opunake Farmers’ Union branch, Mr L. E. Jackson stood to bring the farmers’ attention to the fact that:

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The N. Z. Farmers’ Organisation Society were endeavouring to establish yards and farmer stores at Opunake and he considered that farmers would be serving their best interests by supporting the movement in every way possible.

The chairman pointed out that the Opunake branch was not slow in assisting the farmers’ interests, and he mentioned the fact that the local branch had posted out 500 circulars to farmers in the district urging them to organise to protect their own interests so that the Farmers’ Union would be a force to be reckoned with in the future.

Discussions with the New Zealand Loan and Mercantile manager at Hawera to use their saleyards at Opunake if required had been held. The huge local interest and support shown by farmers in the district prompted the Society to approve the permanent appointment, from 1 June 1914, of Mr L. E. Jackson, as agent at Opunake, at £300 per annum, subject to ‘him finding his own clerical assistance meantime’. This appointment followed discussions and correspondence from Messrs T. J. Mildenhall, A. H. Moore, and L. E. Jackson regarding a site for saleyards and a store, but the location of the proposed Opunake Railway Station had yet to be decided, so for the time being a decision on the

Opunake township, Main Street 1914. (Photographer Samuel Feaver.)

COURTESY OF COLLECTION PUKE ARIKI. PHO2009-176

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precise site was held in abeyance. This brief introduction to Farmers’ Co-op of Adolphus H. Moore, of the West Coast Land Agency, Opunake, would have a lasting impact on the Opunake operation, and his local influence and knowledge would determine the eventual location of the Opunake saleyards. He was described in Kate A. Mickelson’s book on the history of Opunake, The Clearing, as, ‘a well educated English gentleman, well versed in business procedures and obviously unafraid to voice an opinion – even when he realised that he would be outweighed by numbers. Unfortunately he was often defeated by greater numbers who were of lesser intelligence’. In May 1914, Messrs Hunter, Corrigan, Death, Barkla and Coombridge visited Opunake to inspect sections offered to the Society by Mr A. H. Moore and also any others that were available. The committee was also designated to represent the Society at a meeting of Opunake shareholders on the same day.

The meeting and inspections took place and it was resolved that:

The Society purchase the sections offered by Mr A. H. Moore on behalf of Mr Clough, for paddocks and saleyards at Opunake providing the owner is willing to accept a reduction in the price for cash and that Mr Hunter, Death, Corrigan and Coombridge be appointed to a sub committee to interview Mr Moore in regard to the matter. If the sub committee is unable to come to terms with Mr Moore, as an alternative they be empowered to inspect any other suitable sites that be offering with the power to act.

Correspondence was received from Mr Jackson stating:

that he had been offered on the Society’s behalf suitable offices in McGregor’s Buildings at Opunake at a rental of 25/- per week, rent payable monthly, one month notice on either side to terminate the lease. The Society to have the right at any time to take the offices for a fixed period of one year. No rates or insurance payable by the Society. Possession 22 June 1914.

Moved by Mr Coombridge, seconded by Mr Gray – That the offices in McGregor’s buildings be rented on the terms stated.

William Coombridge, director and resident of Opunake had heard adverse rumours concerning Farmers’ Co-op’s proposed site of the Opunake yards and forewarned the board that:

There was just a probability the Convent Authorities would object to the Society erecting saleyards next to their school and after discussing the question it was resolved that the matter be left in the hands of the sub committee already appointed to deal with the business.

Opening of Farmers’ Co-op Opunake saleyards on 22 March 1915.

COURTESY SAMUEL FEAVER COLLECTION.

SECRETS

His timely intimation was confirmed when a letter was received from Opunake’s Rev. Hartnett and also a petition from local residents protesting against the construction of saleyards next to the convent school. A meeting was arranged with church authorities to arrive at some mutually satisfactory arrangement. It appears that in the end the convent and local petitioners had their way, because in August a sub-committee waited upon the Opunake Harbour Board to discuss the terms and rental of the section they were offering to lease the Society. This was probably introduced to the Society by A. H. Moore, a member of the Opunake Harbour Board at the time, although leasing land was also not all plain sailing. The property was currently leased by a Mr M. J. MacReynolds and some negotiating was required to endeavour to persuade the Harbour Board to terminate the current lease and grant a new one to the Society. This took some six months and finally in February 1915 the lease was approved and plans for the saleyards went ahead. A decision was made to erect a store and offices on the saleyards with a concrete floor with wood and iron sides, ‘the cost not to exceed £250’. For reasons unknown Mr Todd recorded his vote against the proposal. However, he did second a motion that ‘a free luncheon be given at our opening sale at Opunake and that an invitation be issued to our shareholders in the district’. A motion, also seconded by Mr Todd ‘that ale be supplied with the luncheon’, was lost.

Everything was now in place to make the first sale day a grand occasion for Opunake farmers and the district as a whole.

‘A uspicious conditions’, were the words used by the Hawera and Normanby Star correspondent to describe a cloudy, cool, Monday 22 March 1915, for the opening of Farmers’ Co-op’s Opunake saleyards. The weather had been particularly wet, but on the day the rain kept away. A record of over 2,000 cattle had been yarded, most direct from local farms. From early morning staff were kept busy, receiving, yarding and drafting stock that came from throughout the district. There was also a record attendance of farmers and general public from near and far and, according to local identities, numbers were ‘far in excess of any previous similar function’. It was said that ‘one gentleman came all the way from Wanganui for the sale’. Telegrams were received from Mr Newton King and others wishing the Society every success. So high were the stock numbers on the occasion that Farmers’ Co-op accepted N. Z. Loan & Mercantile’s offer to use their yards. Motorcars and other means of transport were used to transfer people between the yards. The number of visitors attending, ‘drawn up in motorcars was something akin to a race meeting’. Assistants ‘did their best to cope with the rush’ at the luncheon of sandwiches, soft drinks and fruit of various kinds, served on tables in and around the ‘housed yards or stadium’. Tea was also served and

the countrymen helped themselves to farmers’ slices of bread, cheese and ham. It was there in bulk. All were welcome to participate in the luncheon. It was good, substantial, appetising and by the way the food disappeared, it was relished very much.

Before auctioneers commanded the attention of buyers, chairman George Buckeridge, addressed the gathering, congratulating them on the unqualified success of the first sale. ‘It augured well for their future development and their future success. If they continued as they had started there could be absolutely no doubt of a successful career in the future.’ He also congratulated the district on having such fine up-to-date yards: ‘there are probably no finer yards on the coast and they are a great credit to the committee of directors responsible for the design and construction’. He also congratulated the contractor, Mr S. Lockhart, builder, Hawera for the excellent workmanship and, ‘the splendid support given by farmers, both in taking up shares and in the yarding of cattle’. He indicated that he hoped by the end of the day he would be able to congratulate them on the prices they received for their stock. The yards, of no less than 24,000 square feet, were constructed to last, with concrete throughout, ‘to a depth of four inches’.

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Two large holding pens, ranging in area from 70ft by 60ft each, and some seventy divisional pens, ranging in area from 27ft by 18ft, 18ft by 9ft and 9ft by 9ft. These are all very substantially built of silver pine posts and jarrah rails, with ample cappings.

A sale shed for dairy stock with seating accommodation for between 200 and 300 people as well a sale ring 20 feet by 12 feet had also been constructed. A bulk store measuring 60 feet by 30 feet with an office of 20 feet by 12 feet would be built immediately. Adjacent to the yards were six or seven accommodation paddocks, with an ample supply of fresh water reticulated to the main yards by means of a hydraulic ram and tanks. Mr Buckeridge concluded his opening remarks by stating that ‘It is a matter for the individual farmers to decide whether these excellent yards at Opunake will be justified or not.’

Mr Nalder, auctioneer, opened the sale in the ‘bull pen’ and the first offering was a four-year-old shorthorn bull. Bidding started at £9, quickly rising to £14, at which price it was knocked down: ‘Paddy quickly daubing it with the tar brush, Mr Hobbs opened the pen gate to the paddock – the first animal sold kicked up its heels in honour of the occasion and raced to the far end of the paddock.’ The rest of the pen, some 25, sold readily for £12, £10 and down to £7 for light weights. Fat cows brought up to £9, bullocks, weaner steers and empty cows also brought good prices. Many buyers were attending an Opunake sale for the first time. Messrs Nolan and Hobbs concluded this largest cattle auction at Opunake with a full yarding at the Loan and Mercantile yards, with the last line ‘put up before half past six’. It was indeed ‘a great sale’ and a most successful beginning to a longtime partnership between the farmers of Opunake and the Farmers’ Co-op (Taranaki Farmers). Opunake had the distinction of becoming the first town in Taranaki to establish a Farmers’ Co-op saleyards and in addition a district branch. The general manager, Hawera staff and the Society’s directors were also present.

Following the livestock sale, potatoes were sold for the Belgium Relief Fund, realising 10s per sack. Eight sacks were presented by Mr Pettigrew and ‘some tons’ were presented by Mr Conaglen and Mr Dickson, Pihama. These, however, were not sold immediately due to time constraints. The Society showed appreciation to Mrs Stohr for supervising the luncheon arrangements and laying out the tables. Mr D. T. Leahy presented a cow in aid of the Belgium Relief Fund, realising 16

Town of Manaia looking west, early 1900s. COURTESY OF COLLECTION PUKE ARIKI. PHO2008-432

SECRETS

guineas. ‘The sports from Hawera did the generous bidding’. Opunake manager Mr L. E. Jackson and staff were complimented on the management of the very first sale of Farmers’ Co-op. They ‘made a name for the Co-operative Society’. Three years later a produce store was built at Opunake next door to the saleyards and, until 1946, merchandising of produce fertiliser and hardware was conducted from this 50ft x 30ft building by two staff and a manager.

Other saleyards, district branches and agencies were to follow after the 1915 success. However, not all immediately blossomed into successful arrangements – directors expressed dissatisfaction with the progress being made at Manaia, where an agent had been appointed. He was asked to: put a little more energy into his work and endeavour to secure a larger proportion of the clearing sales for the Society, as it has been pointed out that our interests were not being looked after in the manner conducive to the Society’s welfare in the district …

Before the establishment of a substantial Farmers’ Co-op branch in Manaia a variety of other difficulties would have to be overcome. Kaupokonui Co-operative Dairy Company had ruled the roost along the South Taranaki coast since 1897, at least with regard to milk processing, stores and produce. It had shown considerable initiative and purchased the Crown Company’s dairy factory on Normanby Road, the first factory established in the vicinity of Manaia, known as Manaia Dairy Factory. It also built a number of creameries, including those at Taikatu Road, Auroa Road, Skeet Road, Oeo Road and Sutherland Road, and purchased the Skeet Road Crown Factory. The Cooperative also operated a very successful produce store at Kaupokonui and in 1920 opened other stores at Manaia and Kapuni. With well established retail outlets servicing the surrounding Manaia district and its relatively close proximity to Hawera, it appears the introduction of a fully stocked Farmers’ Co-op branch in Manaia, without sufficient local support, would be found wanting. This proved to be the case and although a small operation was established situated on Sutherland Road, opening only on certain days of the week, this practice was found to be ‘unsatisfactory and wasteful’ and it was decided in 1917 to fully stock the store and Mr F. W. Stevens was placed in charge of the facility. Despite severe competition in produce and stores, the Manaia stock and station department grew and continued to function with considerable success, with the produce store operating in a limited capacity for many years. It was not until 1961 that Farmers’ Co-op purchased the Kaupokonui and Manaia stores from the Kaupokonui Co-operative Dairy Company prior to the establishment of the giant Kiwi Co-operative Dairy Company that the long-awaited Farmers’ Co-op merchandise store in the Manaia district eventually became a reality.

Eltham, to the north, was also reasonably close to headquarters and there chairman George H. Buckeridge operated a very successful land agency and agencies for Henry A. Lane & Co. Ltd, London, buyer of butter, cheese and tallow, from his Bridge Street office (almost opposite the intersection with Cornwall Street) some 400 hundred yards from the Farmers Co-op’s saleyards purchased from Gillies and Nalder. His offer to the Society of front-room offices to create a presence in the town at 10/- per week was agreed upon. However, the resolution was rescinded. Soon after, a shelter was erected at the saleyards to sell dairy stock. Within a few months consideration was being given to providing Eltham with a more comprehensive fully staffed branch office and merchandise store.

THIRTEEN

Bag of Air

The war was now a matter of fact, with many male staff members volunteering for service with the Expeditionary Force. The directors recognised this patriotic gesture and passed a resolution that:

Positions be kept open for members of staff volunteering for service with the Expeditionary Force now being enlisted for the European war and that in the case of married men they will be placed on half pay.

Staff and shareholders have been regarded as the most important components of Farmers Co-op over the past century and it is worth recording that the Society was only into its fifth month of operation when the secretary was instructed to write to the manager of the N. Z. Farmers’ Co-op Society of Canterbury to obtain details of ‘their scheme of a superannuation and provident fund’ and ‘that a somewhat similar scheme be submitted to the Society’s staff’. This was placed into effect on 1 April 1915. Throughout the past one hundred years, in good and bad times, employees have enjoyed the unequivocal confidence and respect of the directors and executive management and have always been to the fore when making major restructuring plans. Commitment and loyalty have been intricately laced together with service longevity. When the chips were down, the staff rallied in support of their principal. It was not until the 1990s that the days of long-serving employees finally came to an end within most companies in New Zealand, but Taranaki Farmers continued to have large numbers of staff with long-service pedigrees. It is disappointing that detailed records of many long-serving early employees are lost. We can conclude though that their industry and stickability, although not rewarded with documentation, played a major part in making this company unique, a jewel in the crown of the Taranaki stock and station industry.

The first annual general meeting of shareholders of the Farmers’ Co-op, on Saturday 5 June 1915, was held in ‘the large storeroom’ at the Winter Show Building at Hawera. There was a ‘very large attendance of 150 members, representatives from practically every part of Taranaki’, from ‘Waitotara to Opunake, and all the intermediate important centres’. Chairman George Buckeridge presided over the meeting. For many shareholders this was the moment of truth; they had placed money and faith in the directors and management and now the fruits of their loyalty and commitment would be apparent. The balance sheet presented was to the year ending 31 March 1915.

Outlining the business undertaken during the year the chairman expressed the board’s pleasure of purchasing, ‘as a going concern’, Gillies and Nalder, stating ‘we feel sure the results have fully justified the purchase’. The business had shown a marked increase since it was taken over by the Society. The operation was essentially a stock and station agency. However, merchandise, motor and machinery departments had been opened, resulting in a most successful year. He spoke about

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the Opunake saleyard acquisition and its very successful opening on 22 March 1915 and the plans to build and open saleyards at Inglewood ‘at the first opportunity’. The net profit for the year in all departments was £3,152. 13s. 10d., and after providing for depreciation of the plant account – £395. 10s. 3d. – and writing off £1,000 of goodwill and £300 of preliminary expenses, there remained a balance of £1,457.3s.7d., which the directors allocated as follows:

Dividend on paid-up capital of ‘C’ issue of shares at 8 per cent, £525, rebate on commission at 10 per cent, and rebate on purchases through the produce department at 2½ per cent, £619. 18s. 2d., bonuses to staff 5 per cent, £204. 1s., amount carried forward, £108, 4s. 5d.

In accordance with the Articles of Association the directors to retire after the first year were Messrs Buckeridge, Gwynne, Richards, Skedgwell and Barkla. All were eligible for re-election. Mr J. A. Turton, auditor, was also eligible for re-election. There was considerable praise and appreciation for the manner in which the staff had carried out their duties during what had been a difficult year. The balance sheet showed on the liabilities side:

That the nominal share capital was £500,000, and that there had been subscribed £33,510, and paid up £7,888. On fixed deposit there was £13,843, overdraft at bank £18,030. Owing on mortgage £24,000, amount at current accounts £1,457. The assets showed property £12,577, working plant and office furniture (less depreciation) £920, bills receivable £2,456, amounts due on current account £37,413, stock of merchandise and machinery on hand £3,874, stamps and stationery on hand £347, goodwill (less £1,000 depreciation) £11,000, preliminary expenses (less depreciation) £968, cash in hand £66. Total £69,625, balance profit and loss account £1,457.

The profit and loss account showed: Charges £7,770, exchange £167, interest £497, depreciation £1,695. The earnings were £11,588 including, profit on merchandise.

Mr J. O. Taylor, who had been rather difficult at the inaugural meeting in January 1914, was still in fine fettle and seized the opportunity to draw the attention of the meeting to a ‘tag by the auditor attached to the balance sheet, viz’: ‘This certificate is subject to a special report on the share register, which I have sent to the chairman.’

This ‘tag’ might have some bearing on the company’s transactions and Mr Taylor considered the shareholders had a right to know the contents of the report. He moved that the meeting go into committee and that the Auditor’s report be read. This motion was seconded by Mr Weir. Director James Corrigan explained to Mr Taylor and the meeting that the auditor had ‘specially mentioned that he did not desire this report to be read to the general meeting’. It referred to a private individual and had no bearing on the company’s balance sheet. The chairman added that the matter had already been dealt with by directors. The motion was then withdrawn.

An interesting comment by the chairman, that had been problematical for farmer’s organisations in the past and seems to be an ongoing challenge even today, was his conclusion that: The cost of securing business was, he considered, too high, and some of this was due to the fact that farmers required too much waiting upon.

Reference was also made regarding difficulties experienced in connection with conditions created by the current war in Europe making business more difficult to transact. Capital of the company was also too small, which in turn meant that the Society had to pay interest and discount bills, which meant less profit. He considered the shareholding was quite disproportionate to the value of business completed. To substantiate this remark, there were 1,300 shareholders, holding 3,252 shares averaging £2.50 per shareholder. The turnover was roughly £300,000, or £280 per shareholder, or 56 times the paid-up capital. He made comparisons by stating that the New Zealand Farmers’ Society had 7,421 shareholders holding 110,033 shares, ‘on which had been paid-up £313,000, an average of £46 per shareholder’. Their turnover was £3,272,330 or ten times their paid-up capital.

The chairman indicated that he thought each shareholder of Farmers’ Co-op should provide the Society with sufficient share-capital backing to carry his proportionate share of the load of his own business. He then spoke on the European war which had a significant effect on the Society’s business in many ways.

There was restricted banking facilities, the suspension for some time of buying and the increased prices of cattle for meat works. The large increase in the price of wool was already being realised, but the increase in the value of dairy produce was only partly realised as yet. The bonuses were yet to come. There was the effect also on the cost of feed, chaff, oats etc, and also seeds, and there would be felt, especially in the coming season, the shortage of labour for the dairy factories and for harvesting. Money was plentiful, but pending the outcome of the present war, capitalists were shy of investing in it. Prices for produce were abnormally high, and would probably remain so during the war, and would possibly for some time after, but farmers should very carefully husband their resources. History was bound to repeat itself, and depression was bound to follow unduly inflated prices.

Until now the precise purchase price of Gillies and Nalder’s ‘going concern’ operation had not been disclosed. For Farmers’ Co-op to kick off with an experienced team, on a relatively tried and true level playing field, without having to establish premises, yards and employ experienced personnel was a tremendous advantage. However, what had the Society paid for this seemingly invaluable advantage? A question from the floor prompted the chairman to explain details of the purchase. The Society had paid £12,000 to Messrs Gillies and Nalder for the plant and property and a further £12,000 for goodwill. The amount for goodwill was arrived at on the basis of three years’ profits. The Society was required to pay Gillies and Nalder £1,000 on 31 March 1915 and £1,500 every subsequent year until the whole sum was paid off. Interest on the unpaid balance was fixed at 5 per cent. The property at Turuturu Road cost £2,700, and 33 acres on Turuturu Road £2,640, Hawera saleyards of 6 acres between Glover and Egmont Roads £2,400, saleyards and improvements £1,450, Eltham 1 acre £600, Kaponga £400, Manaia £500, Auroa £250, Okaiawa £250. The new saleyards at Opunake cost £1,389.

Once again J. O. Taylor seized the opportunity to enter the forum, saying that he considered £12,000 a huge sum to have paid for the goodwill of the Messrs Gillies and Nalder business – a huge sum for something that he termed a ‘bag of air’, and especially as the Society did not have the money to give. He considered that this was an extraordinary position for the Society to be in, particularly in the face of their commitment to start out on sound lines. He also stated that ‘he was opposed to the farmers of the district running American agencies for implements and motor cars’. He said, ‘they are supposed to be patriots standing in the interests of the British Empire’ and that he took strong exception to the Society excluding British and New Zealand makers. He also took exception to the Society establishing a superannuation scheme for the staff:

Is not the first thing to establish the business instead of starting superannuation funds or giving a bonus? Where is the Inglewood business? You are not entitled to go in for philanthropic ideas like this until the business is established.

Mr Todd, in reply, explained that he was the director who moved to inaugurate the superannuation scheme and it would be a fine thing for the employees. After all, he said, it was ‘they who the company depended upon to a great extent for the success of their business’. Mr Peterson added that ‘the chairman said the scheme would be fashioned on the lines followed by other societies. They had not yet worked out what cost it would be’.

Other enquiries were made to the chair regarding expenses of Mr Buckeridge whilst overseas, who advised the meeting that the arrangements were made without any knowledge of the possibilities of hostilities and war and the disposal of the Society’s produce at ‘Home’ would be available as soon

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as normal conditions were restored. In relation to the £150 towards his expenses, Mr Buckeridge indicated that on one line alone that sum would have been more than doubly repaid to the Society.

As shareholders analysed and wrestled with the results of the first year, some struggling with the complexities and decisions the directors had made establishing and managing such a diverse trading enterprise, results showed that warnings expounded by two of the most knowledgeable gentlemen associated with the organisation regarding under-capitalisation had not been heeded. Arthur Gillies had publicly stated in 1906 that: ‘A great difficulty in starting a co-operative is getting the share capital. The clever man takes up one share, thus getting any benefit in the way of bonus without risking any capital.

George Buckeridge had also advised the first promotional meeting in 1911 that: ‘The farmers had run away with the idea that a business run by the farmers for the benefit of the farmers could run without money.’

It was clearly now time for farmers to put their money where their mouths were. Mr Walter Powdrell said that ‘some exception had been taken to the amount paid Gillies and Nalder for the goodwill of their business. In his opinion too much had been paid, ‘but they must now make the best of the deal’. He went on to say that the goodwill of an auctioneering business depended a good deal on the staff, the opinion the public had of the directors and the manner in which the business was done. If a first-class official left, that act alone may vary the price of goodwill considerably. Powdrell said that his main grievance against the Society was its under-capitalisation and the endeavour to do too much with the capital it had. They had launched out at Opunake, had practically promised to start at Inglewood and there was some talk about starting at Waverley. He continued by saying:

Each place where they started a new business meant a further £10,000 and they were on very dangerous ground in reaching out too far without the necessary capital. The Society was absolutely under-capitalised and they must use utmost caution. If they attempted to fly too high their fall would be pretty hard.

The chairman said that when buying the business of Gillies and Nalder the directors believed there would be a large influx of shareholding capital, but that had not happened and that the farmers had not supported the Society as they should have done.

Unless they provided more capital in the future, the operations of the Society must be restricted, and ‘if the directors were compelled to restrict the business, farmers must not blame the directors’. This comment moved many to a vociferous ‘hear, hear!’ Suggestions were made regarding canvassing for shares. Mr Nalder asked the chairman if the directors had considered the advisability of transferring profits to the reserve fund. The chairman responded by saying that they had, but felt that it would be in the best interests of the Society to allocate profits because there were a number of ‘rail-sitters’ in the district who had been waiting to see whether there was any possibility of the Society paying a dividend before they decided ‘on which side of the fence they were going to fall’.

George Buckeridge went on to say that he could not altogether blame the farmers because previous experience had given the impression that it had not been possible for any co-operative concern of this kind to pay dividends because profits were not strong enough to warrant it. He stated, however, ‘but we have, and that being so, the directors considered that it would be good business to allocate the dividend as we have done’. Mr Corrigan added: ‘We hope to do it annually’.

The chairman continued:

After a phenomenally good year we have made a 50 per cent profit and I say that it is only reasonable to suppose that the farmers throughout the district will have quite a different opinion of the Society and its operations than they had before we made a start. Instead of sitting on the rail as they had been doing, I hope they will now come down on the right side and support the company to the full extent of their power.

This again encouraged a volley of support from the floor, and the chairman then drove the message home:

Each shareholder’s holding averages 2½ shares, which is altogether inadequate to the amount of business he expects the company to do for him, but if he would support it to the extent of the load he expects to put on that business, we could carry on along sound lines. Many farmers had not done nearly as much for the company as I have done, apart from my personal work. I am today by a good deal the largest shareholder in the company at the present time, but the amount of business I am able to put through the company at the present is not large. I hope, however, in a short time to put as much through as most of you. I have supported this Society to the full extent of my power, and if every farmer would do the same you would have the power in this country that nothing would stop.

Spontaneous applause erupted throughout the assembled meeting. Further matters relating to the allocation of profits, company shares, share capital and other financial matters were raised and dealt with accordingly. Reference was made to the ‘good work done by the chairman and directors during the year’ and a proposal was made that they receive an honorarium. A Mr Blair pointed out that the Society was ‘being run purely and simply as a money-making concern, and if they had to depend on the gratuitous services of directors to keep going, it was time they closed up’. Several other shareholders spoke in support of the suggestion, but the chairman and each of the directors said emphatically that they were quite prepared to give their services gratuitously and did not desire payment. If, however, the meeting insisted in paying them, the amount would be reinvested in the Society. It was finally resolved to vote directors who had come from a distance 20 shillings and local directors 10 shillings for each meeting attended during the past year. The chairman was voted an honorarium of £50, and the directors were recommended to reimburse him his out-of-pocket expenses during the time he was organising the Society.

ELECTION OF DIRECTORS

The election of directors resulted as follows: G. H. Buckeridge 273 Jas. Barkla 246 H. Skedgwell 200 A. T. Wills 196 J. Swindlehurst 175 G. Gwynne 96 H. Richards 89 J. S. Tosland 30 J. O. Taylor 29

The first five were duly elected.

Mr Buckeridge thanked the shareholders for again placing him ‘in the proud position of being at the head of the poll’. His humility was plain for all to see when he told the meeting that he looked ‘on this as the shareholders’ opportunity for expressing their opinion upon the guidance of the Society’s business during the past 12 months, and although elected at the head of the poll last year and not necessarily having to stand down this year, he decided to do so in order to give shareholders who might not care to speak their opinions an opportunity of expressing them through the ballot box’. He thanked them for the confidence they had ‘again reposed on him’. Mr J. Turton was re-elected auditor, at a remuneration of £100. Following a vote of thanks to the staff for their services during the past year the meeting concluded.

One of South Taranaki’s most dedicated ‘robust’ co-operative advocates, founder and proponent of the Egmont Farmers’ Co-operative Association Limited in 1906, provisional director and organiser of The Farmers’ Co-operative Organisation Society of N. Z. Ltd, resigned from his seat on the Society’s directorate in a letter to the board on Thursday 1 July 1915. Mr James R. Corrigan addressed the board meeting, ‘dealing very fully with his stock transactions with the Society’. His resignation from the board came at a time when every ounce of experience was necessary to guide it through what seemed the proverbial ‘minefield’. The reason for his sudden departure is unclear. However, pressures brought to bear on the Society and the directorate in the early days were enormous, with great expectations and demands from almost every quarter of the farming community. While James Corrigan was a loss to the Society, he continued to play a major roll at annual general meetings and his services to the South Taranaki farming fraternity were not lost. This man preferred to lead rather than be led and this change in direction may have been a blessing in disguise for the people of the district as he committed his forthright debating style, repartee and his generosity to many other co-operatives, companies and organisations. He was without doubt a colourful character. His interests were not wholly in dairy farming: he bred and widely exhibited stud Lincoln, English Leicester, Border Leicester and Shropshire sheep; and was a director of the Hawera Co-operative Dairy Company from 1906 to 1917, continuing as chairman until 1934. Contemporaries admired his ‘down to earth’ leadership qualities. They elected him to the position of first chairman of the Federation of Taranaki Dairy Factories in 1924, an organisation

James R. Corrigan at Waitui, Inglewood. From left: Jack Scott (manager), James. R. Corrigan, sitting in car Dorothy Corrigan, lady standing unknown. COURTESY ROSS AND CLAIRE CORRIGAN

that eventually played a significant part in the formation and co-ordination of the dairy industry within the province. Other positions included: director of the Egmont Box Company from 1919 to 1921 and chairman from 1932 to 1934; director of the New Zealand Rennet Company 1923 to 1934; the West Coast Refrigeration Company, a Patea coolstore and the South Taranaki shipping company operating out of Patea port. He also served on the Patea Harbour Board, and was a director of the Hawera Winter Show Company and its chairman from 1922 until 1934. Wartime prices boosted James Corrigan’s fortunes, but he considered this ‘blood money’ and provided many personal guarantees to soldier settlers. The slump in 1921–22 meant many guarantees were called in and James Corrigan honoured them despite other financial losses. It has been claimed that he was possibly the first to transport a trotter by lorry in New Zealand, incidentally enabling it ‘to win at Addington and Hawera in the same Easter weekend and confounding bookmakers’. His interest in the trotting industry saw him purchase the Australian horse Man o’ War ‘for an unprecedented £1,500 and win the Auckland Cup with him in 1920 and 1921’. He became the nation’s leading owner in 1921–22 and 1922–23. His winnings for the 1921–22 totalled £8,211. It is said that he partially recovered his losses by developing his trotting interests under the supervision of his son, Alex.

Following an unsuccessful attempt to create a compulsory pooling scheme for dairy exports, James Corrigan stood successfully as a Member of Parliament for Patea in 1922 as a Liberal and a supporter of producer control in dairy marketing. In Parliament he denounced banks, shipping companies, overseas ‘meat trusts’ and ‘manure monopolists’ as exploiters of primary producers. He was an advocate of a state bank, greater spending on farm development and back-block roading, and strong producer boards. The problems of returned soldiers and isolated settlers featured in his speeches. However, his accusations of corruption stung ministers, including Prime Minister William Massey.

James described himself as ‘very much out of place’ in Parliament and was unseated in the Coates landslide in 1925. He was elected to the New Zealand Dairy Produce Control Board in 1926 and continued until 1932. He surprised the existing board’s supporters by opposing its pricefixing policy, but his clear victory suggests he was reflecting local opinion. He served his province and country with flair and distinction. Survived by his devoted wife Annie, three children and one foster child, he passed away on 19 March 1935. His energy, legacy and commitment to the farming fraternity has remained with the Corrigan family, who have continued to support many farming organisations in Taranaki throughout the past century.

It was with sadness in 1915 that the board received news of the death of two other pioneer gentlemen, James Livingston and James ‘Baldy’ Davidson who also extolled the virtues of the cooperative and played leading roles in earlier forays into the establishment of farmers’ co-operatives. Both were founding pioneers of the Hawera district and worthy of all the accolades they receive in this and other historical publications.

Considering the vast uncharted waters the board had navigated during the past 12 months and formidable challenges it had overcome, there was an air of success about it as the second year of trading began. Then out of the blue, a bombshell was dropped at the October 1915 meeting following discussion relating to a finance ‘advance’ application from a shareholder being discussed by the board. The precise nature of the discourse is unknown and we can only draw our own conclusion as to what pre-empted the following resolution by the board: ‘That the chairman and manager be asked to retire whilst the matter re advance to W. L. F. Porter is being discussed. Carried.’

Mr Buckeridge and the manager then retired and on being recalled to the proceedings were informed that the following resolution had been passed: ‘That the instructions of the directors or sub-committees to whom they delegate their power must be carried out.’

A resolution was also passed to ask J. C. Hobbs, the Eltham agent/auctioneer, to address the board

and explain why £200 worth of stock was sold and delivered to a client contrary to the instructions of the manager. The next-scribed minutes of the day record a motion, moved by Mr Foreman and seconded by Mr Gray: ‘That Mr Buckeridge be asked to resign his position as chairman. Carried unanimously.’

Mr Buckeridge advised that he would ‘accede to the director’s request to resign from the position of chairman’, and it was then moved by Mr Symes and seconded by Mr Dickie that Mr Alex Hunter be elected chairman. The following month, in November 1915, George Buckeridge resigned from the board itself. Interesting, however, is the fact that at the next annual general meeting, on 20 May 1916, George Buckeridge made several contributions to the discussion, and in the election of directors – there being five vacancies, with 13 shareholders offering their services to the board – he won his position back on the board. The results of the voting were as follows:

Messrs A. Hunter 348 votes, B. C. Lysaght 260, A.E. Death 229, A. Corkill 199, G. H. Buckeridge 195, G. Preece 140, J.B. Gibson 118, D. Richards 88, W. G. Belton 80, G. Gwynne 55, J. Simpson 50, W. B. Fryday 35, J. O. Taylor 35. There were ten informal votes and at a subsequent directors’ meeting Alex Hunter was elected chairman.

Although not as popular as before, George Buckeridge resumed his seat on the board. What led to his resignation the previous year, mid term, remains a mystery, although one could read between the lines and conclude there had been some misunderstanding concerning a transaction. However, his strong and stoic personality would preclude him from letting one incident cloud his huge contribution to this co-operative enterprise he had almost single-handedly promoted and brought to fruition. Coincidentally, the appointment of Arthur W. Gillies, currently acting honorary general manager, was cancelled at the April 1916 meeting of directors. These unexpected personnel problems were no doubt brought about by the huge pressures being placed on both executive management and the board as they grappled with the raft of issues confronting them as they steadily built the infrastructure of the organisation. We do know that in July 1916 Arthur Gillies interviewed the board, and that following this meeting we would hear no more of this quite extraordinary gentleman who had played a short but significant role in both Hawera’s local politics and the South Taranaki stock and station industry. Although not disclosed in any minute books or other documents, his ‘honorary’ position as general manager was probably part of the deal when Gillies and Nalder sold the stock and station business to Farmers’ Co-op in 1914.

Arthur Gillies’ departure, however, must have been premeditated as he had purchased a block of land at Kawaha Point, on the western shore of Lake Rotorua, and built a large retirement house. When war broke out he offered the use of the house to the Government as a convalescent home for soldiers but the offer was not taken up. It was also reported that Mr Gillies made an offer of £1,000 to establish an aviation school at Rotorua. He moved to Auckland where he was appointed member of the district Repatriation Board and voluntarily took charge of a scheme under which the farms of men on service were supervised and managed by experienced farmers in their neighbourhoods. He then entered into a partnership with Mr Francis Hull, ‘father’ of the Auckland Stock Exchange, and after Mr Hull’s death in 1933 he continued in the business under the name of Francis Hull and Co., in partnership with Mr J. W. Coney. In 1938, Arthur realised a cherished lifelong wish to join his brother, Sir Harold Gillies, one of New Zealand’s most eminent plastic surgeons at the time, on a salmon fishing trip to Iceland, and a visit to Europe. During the latter part of his life he resided at Ranui, near Henderson.

Acquiring sufficient capital to complete the company’s representation throughout the province was one key objective yet to be fulfilled in the coming years. Time was of the essence to retain the confidence of all who had put money and faith in the hands of the directors, with fully established stores and saleyards in their districts being a prerequisite and acknowledgement that the enterprise

had been a success. In the last few months of 1915, this continued to be the prime focus for the board. Sub-committees were appointed to deal with Eltham, Stratford and Inglewood and reports were submitted to the board for its consideration on Saturday 9 October 1915:

INGLEWOOD: The following sites were inspected:

J. F. Lever (Mrs Barford’s) – 20 acres

Parley – 90 acres

McKay [MacKay] – 25 acres

Wm. Lile 16 acres

Matthew & Gamlin’s saleyards & auction mart.

As regards the sites inspected at Inglewood, the areas offered were really in excess of the company’s requirements for the purpose of erecting saleyards.

The section offered by Lile was considered quite unsuitable, being too broken and on the wrong side of the town for the purpose required.

In the other cases a suitable site could be obtained, providing the owners were willing to sell 5 to 10 acres.

Enquiries are now being made from the various owners and it is possible that the northern members of the sub-committee may have something fresh to report at today’s meeting of directors.

Probably the best site for the saleyards near Inglewood is a section belonging to the Estate of the late H. B. Curtis, but it is doubtful if this could be secured. Mr Corkill is making inquiries, however, and may be able to give us some later information regarding the matter.

As regards the saleyards belonging to Matthews & Gamlin, these are not conveniently situated and would practically require to be rebuilt before they could be classed as up-to-date yards.

STRATFORD:

J. Donald’s business premises of motor garage and stables.

W. M. Bayly & Co.’s business premises of grain produce merchants and hide and skin business.

J. McDonald’s. These are conveniently situated being in the main street and the buildings are roomy and substantial, and with certain alterations, could no doubt be converted into suitable premises for a grain and produce store.

Patea township 1909. COURTESY OF

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W. M. Bayly & Co. The premises are fairly conveniently situated, being just off the main street and adjoining to N.Z. Loan Co.’s buildings. The section is a corner site with a splendid frontage. Buildings appear to be fairly good and suitable for the business now being carried on.

We consider, however, that the goodwill asked, £2,025 is right out of proportion. We understand, however, that the Trustee, Mr Coleman, is now prepared to considerably vary the original offer and we hope to be able to place full particulars before the directors today.

Mr Coleman is desirous of interviewing the directors personally on the subject if it can be so arranged.

ELTHAM:

The matter of the Eltham business could be fully discussed at the same time.

We may say that from enquiries made and also from voluntary information furnished us from different sources, we feel sure the opening of a grain and produce store at Eltham would be very popular with our present shareholders, both at Eltham and the surrounding districts and the prospects of good business are practically assured. In addition we feel we are quite safe in saying that a number of influential people who have hitherto held aloof from our Society would at once become shareholders in the event of the Society favourably considering the proposition.

Opening saleyards, branch offices and stores throughout the rest of Taranaki became a regular topic at board meetings and with pressure now being applied by shareholders from other districts of the

George M. Taylor, who was employed in the motor department, outside Farmers’ Co-op Produce Store, north end of Union Street, Hawera, 20 March 1924.

COURTESY OF ALLISON HARPER.

province, establishing local presence was now crucial to the Society’s ongoing success. Trying to placate farmers in outlying areas as well as attempting to bed down the Hawera operation became a careful balancing act. In July 1916 a sub-committee endeavoured to secure a section outside the Hawera borough for the purpose of erecting a shed for the storage of benzine and no doubt with some uncertainty regarding the possibilities of the motor vehicle, in the same year purchased a horse and cart for cartage purposes. Premises in Regent Street, Hawera were purchased at a cost of £5,775 and in 1916 a bulk store and other premises at Patea were acquired, although there was no intention of establishing a trading outlet at this time. With the advent of Farmers’ Co-op and an upsurge of activity now being generated in the stock and station industry an Auctioneers Association was formed in the Taranaki province.

Expansion inevitably sucked up hard-won capital still all too slowly coming into the company’s coffers. Soon cries of ‘expenditure far too high’ were heard at the second annual general meeting, on 20 May 1916. Although the company was quickly developing into the province’s most talked about commercial enterprise, it was desperately in need of significant capital to enable it to gain a foothold in all districts. The chairman Alex Hunter, on moving the adoption of his annual report, remarked on what was the most pressing matter for the board:

The subscribed capital on 31 March 1916, was £56,480 invested by 1,818 shareholders, showing an increase of capital for the twelve months of £20,670, and in membership 315. The paid up capital is set down at £20,316, an advance of £12,888. These figures are very encouraging, and indicate that the Society has the confidence of a fairly large number of the farmers in the district. It is to be hoped that the satisfaction arising therefrom will not induce any to ease off, but rather to increase their endeavours to further strengthen and build up the Society and place its finances on such a footing as will enable it to cater to the best advantage for farmers’ requirements. Before leaving the question of capital, I would advance the opinion, and in practice I have acted upon it, that if farmers supply capital for concerns or ventures outside their own immediate business, and I think it is in some cases their burden duty to do so, they should first and foremost assist those which handle the farmers’ produce, and especially those that do so on co-operative lines.

Afurther offer of 20 acres ‘in the land of the Moa’ at Inglewood, a property owned by J. F. Barford was considered; however, a sub-committee of Messrs Todd, Corkill and Jones was appointed to interview Mr MacKay to endeavour to negotiate a lower ‘quotation’ from him. The committee was empowered to offer up to £70 per acre for the property, with £1,000 to be taken up in shares. With regard to establishing premises at Stratford, the directors met with Mr Coleman and following consideration, resolved ‘that the offer of Bayly & Co. business be not entertained’. Despite the lack of capital, it had to make every effort to increase the number of shareholders and thereby its capital and take advantage of the momentum being created. In the immediate future the board had Eltham, Stratford, Inglewood and Waitara firmly in its sights and was preparing for the future with the purchase of property ‘at the corner of Union, Grey and Wellington Streets, Hawera for the purpose of erecting in the near future, should circumstances warrant, suitable buildings for the carrying on of the company’s business.’

Accommodating the Hawera merchandise department was becoming a problem and floor space was completely inadequate for the growing business of the Hawera branch. The produce department operating out of the Winter Show Buildings in Princes Street and Goodwin’s building on Albion Street had experienced difficulties; due to heat from the low roof in Goodwin’s buildings stored seed had germinated and the Society had suffered significant loss of seed as a result of this. A decision was made in 1916 to lease a premises erected by Mr Lockhart in Union Street, a few yards up from the railway station, with a view to securing ‘a much larger volume of business in this department’. A substantial building was constructed of concrete and was eminently suited to the Society’s business.

Prettily Illuminated

Eltham, just up the road from Hawera, was considered a town and district of great promise. The railway had improved accessibility, providing transport for commodities, people and produce for the communities surrounding this flourishing centre. The now long-established Eltham Co-op Dairy Company (1892) had made a considerable impact. George Buckeridge had, as we know, in 1915 offered to lease a front office on Bridge Street to the Society but was declined. The time had now arrived when a suitable home for the Society in the Eltham district was to receive full consideration by the board.

Eltham’s Farmers’ Co-op branch store still proudly stands adjacent to what was once the hub of Eltham, opposite the railway station and on the corner of Bridge and Railway Streets. The site has an almost legendary past with its connection to one of early Taranaki’s most distinguished Chinese gentleman traders. Taranaki’s Chew Chong was a purveyor and trader of almost every commodity. He bought the farmers’ produce and sold them almost all their basic requirements. It would of course have been surprising if Chew Chong had no connection to the Farmers’ Co-op’s history. An astute visionary trader, he opened his first Eltham store in 1882 in two rooms of a cottage owned by Tom and Mrs Lee. In September 1883, Mrs Emma McDonald purchased a section on the south corner of Bridge and Railway Streets, erecting a combined store and residence in competition to Chew Chong. In response, on 20 June 1884 Chong purchased a section on the opposite corner of Railway and Bridge Streets, Eltham from the Curtis brothers, whom he had had previous business dealings with:

The purchase of this land and its subsequent development by Chong was to become another significant event in the commercial life of the infant frontier village and would lead to considerable changes in the character of Eltham.

Don Drabble in The Life and Times of Chew Chong describes his premises:

A fine second Eltham store was opened in December 1884. It was a commodious building of some 40 x 37 feet with a ceiling height of 12 feet. The building itself was of lasting appearance. The façade that looked upon Railway Street took in a sturdy verandah supported by six fine ornamented wooden posts. The store front faced west to Railway Street and along its parapet a bold sign read, 1884 – CHEW CHONG.

Chew Chong employed a 16-year-old boy, Charles Anderson Wilkinson, to manage his Eltham store. In time C. A. W., as he was affectionately known, became one of Eltham’s most distinguished residents and traders and later Member of Parliament for Egmont. He was regarded as ‘the father of Eltham’ and his reputation, innovation and energy were felt throughout Taranaki during his eventful life. C. A. Wilkinson terminated his employment with Chong in November 1889, the property was

subdivided and the shop and section sold to William Adamson, Joseph Pease and John Winks, who in 1892 sold it to Thomas, William and Henry Stanners. Buildings owned by Chew Chong suffered considerable damage in two major fires in the early 1900s on the corner of Bridge and Railway Streets, and it is thought that nothing was reconstructed on the section after the second fire.

On 19 October 1915, Messrs Hobbs agent/auctioneer and Judd, employees of Farmers’ Co-op at Eltham, attended a meeting of directors to assist in the deliberations regarding opening a grain and produce store at Eltham. Mr Hobbs explained that ‘the opening up of such a store would be of great assistance to him in connection with his stock department as he wanted them to have an office where clients could come and transact any stock business they might have, and this in turn would assist the produce department.’ He felt confident that it ‘would further the Society’s interest in every way’. He advised the directors of an office he had found, ‘in the principal street’, occupied by Tayler & Scrivener, that could be leased for a term of five years at a rental of 30/per week. Mr G. W. Tayler had opened a general store opposite Chew Chong’s establishment on Bridge Street West. This appears to be the property alluded to by Mr Hobbs. Mr Judd supported Mr Hobbs’ recommendation, stating that, from his ‘own personal knowledge of the business to be done in Eltham ... the Society would be wise commencing in the grain and produce business at once’. It was resolved to lease the premises from 15 August 1915 to commence operating a grain and produce store, and that Mr H. H. Judd be appointed manager at a salary of £3 per week. With this further expansion into grain and produce the board discussed the question of engaging an ‘expert seed and general produce buyer’ to oversee this particular department of their business and resolved to write to other farmers’ co-operatives with a view to securing a suitable person.

An editorial in the Eltham Argus on 25 January 1917 said:

Eltham’s first Farmers’ Co-op store c.1920, on the right, leased from Tayler and Scrivener, next to Harrison’s Paint Shop and the recently constructed Eltham branch store on the left, which is still occupied by Allied Farmers Limited. COURTESY OF RUSSELL STANDISH AND ALEXANDER TURNBULL LIBRARY

OLD TO BE SECRETS NOW

The Eltham branch of The Farmers’ Co-operative Organisation has a business announcement on the eighth page this evening. The society is going ahead very rapidly and caters for farmers in many directions, some of which are referred to in the advertisement.

FARMERS’ CO-OP

SHEEP DIPS Cooper’s, Little’s, Quibell’s, Primer – In Powder and Fluids

BENZINE – Shell, Plume, Kalif.

LAUREL KEROSENE ‘kerol’ The Renowned Disinfectant In 8oz. Bottles to 5 Gallon Drums. Bran, Pollard, Sucrosene, Barley Meal, Linseed Meal, Heggitt’s Linseed Meal, Flour, Sugar, Etc.

‘ZANDA’ TEA In 10 and 6lb. Packages. Large shipments just arrived direct from Ceylon. Write or call for Samples.

PRODUCE STORES – Call or Write ELTHAM BRANCH – BRIDGE STREET.

As the Eltham operation continued to expand it became necessary to find additional space and in 1917 premises adjoining the Eltham store were leased from Smalley and Co. However this became only a temporary measure as the Eltham Argus newspaper reported in September 1919 that: ‘The local branch of the New Zealand Farmers’ Co-op Society have been severely handicapped for some time past through having to carry on its business in unsuitable and inadequate premises.’

The now vacant former Chew Chong store site on the corner of Bridge and Railway Streets, and a short distance from the Eltham saleyards, was purchased in 1919 by Farmers’ Co-op to build a brand new grain and merchandise branch store. It was directly opposite the leased premises occupied for a number of years. In November 1919, plans drawn by Hawera’s Duffill & Gibson, Registered Architects, were presented to the board for approval. Construction commenced almost immediately. The building design retained the corner door feature of Chew Chong’s original store. It was constructed of concrete. Comments were passed that ‘the new store will improve the look of the town’, and that ‘it was imposing from the railway yards’. A temporary shadow was cast over the project when the Eltham Borough Council raised the concern that ‘no permit was obtained for the new Farmers’ building’. This oversight was soon corrected and work on the new structure continued with haste during the first months of 1920. Good progress was made and 20 April 1920 was scheduled as opening day for the grand new premises. The opening celebration was quite outstanding and a credit to everyone involved. It took the form of a social evening held in the new building. Attendance ‘totalled nearly 500, but despite the crowd everyone spent a most enjoyable evening’. Music was provided by Fox’s orchestra and the ‘onerous duties’ of Masters of Ceremonies were performed by Messrs Death, H. Burgess and L. Quin. All rooms were ‘prettily illuminated with coloured lights, the electrical installation proved most satisfactory’: ‘The manager (Mr H. H. Judd) and his committee had a very busy time, and are to be congratulated on the successful manner in which everything was carried out.’

The Society’s new premises met the full approval of all the locals. A dance was held in the large store at the rear of the building. The floor having been ‘excellently prepared for the occasion’. Card tables set up in showroom and offices provided convenient dressing rooms. It was agreed by all that ‘the building is a decided acquisition to the town and when the whole erection is completed, including the provision of a benzine and manure store, it should meet the Society’s requirements for some time to come’. The measurements of the store were 160ft by 35ft the showroom 125ft by 30ft, the offices being similarly commodious. Altogether the large block of concrete buildings occupied an area of 160ft by 65ft. The construction of this fine building was without doubt one of the most prudent investments the Society made in the early years as it has continued to serve the farmers of the district throughout the century with very few additions, alterations or renovations.

In mentioning the inimitable, dexterous and rather mysterious Chew Chong, it is important not to forget his son Albert, who farmed a property for his father, as manager, on Albert Road, New

Plymouth until 1915. He also managed the Albert Road Creamery for a period and was employed as a stock agent for the Farmers’ Co-operative. He became a very widely known and respected personality within the dairy industry of Taranaki at the time. Apart from being a stock agent operating in a number of districts, including Manaia, and factory manager, drover and horse breaker of some repute, he was a gentleman jockey and a judge of stock, ‘and in considerable demand as such’. Albert Chong was reputed to be a tireless worker throughout his life. Other members of the Chong family worked for Farmers’ Co-op over the years, including Robin Joyes, who worked as a stock agent for the company in the 1950s under the guidance of Harold Slater. Another grandson of Albert, John Pettett, along with his wife Anne, also later worked at the Hawera branch.

Mr Herbert H. Judd, Eltham’s branch manager, had a good team and was well supported by Mr J. C. Hobbs as agent and auctioneer. In fact Mr Hobbs, auctioneer, had shown exceptional promise during the first years of the company’s establishment at Eltham and as a reward for his effort was appointed to the position of agent in charge of the Farmers’ Co-op Stock Department at Head Office, Hawera at a salary of £450 per annum.

Inglewood’s first stock and station agents appear to be Messrs Vickers and Stevens in the 1880s. This firm’s stockyards were in Matai Street. Newton King was known to also use these yards to sell stock and it is reported that Newton King’s first sale was on 7 June 1881. Vickers and Stevens’ premises in Matai Street comprised a small office and grain and seed store. Newton King eventually established his own branch in Inglewood in 1916 through the purchase of ‘the commission and merchandise business of Matthews Gamlin and Company’. Mr H. L. Cutfield was the first manager. Farmers’ Coop was, however, committed to making its presence felt and to establishing a branch at Inglewood that would provide farmers with a top-class saleyards complex and fully supporting merchandise

Eltham branch store c.1920, Bridge Street, Eltham. Staff unknown.

operation. To this end their high-profile local member of the board Mr A. Corkill, with Mr D. Todd and Mr W. Jones, provided local knowledge to enable the company to acquire the very best trading situation and opportunity for the area. Farmers’ Co-op’s presence at Inglewood in the north was seen as a priority. It had until now all been the territory of Newton King, but for this new kid on the block finding its feet, jumping into someone else’s puddle was not a problem. First-hand accounts are always reassuring. Robert M. Brown, MBE CM JP, wrote in his Te Moa – 100 Year History of the Inglewood Community 1875–1975:

They bought my grandfather’s (Mr Murdoch MacKay) property on Junction Road [now Rata Street] adjacent to the Borough. I well remember the saleyards being built, as they were considered very modern, with all concrete floors and posts, and Australian hardwood rails and gates. Produce was sold from a small tin shed at the back of the present shop. In 1924 they built a general grocery and hardware shop facing Rata Street where Noble King had a small cabinet making shop. This little shop of Noble King’s was moved over close to Winfield’s grocery, now Elm’s, to make room. The retail shop has been added to a number of times and Clough’s buildings, previously McMillan’s Shoe Shop, purchased. About the first manager would have been R. M. Hardy (the retail shop now sells his indigestion remedy), followed by Clause Twist, and Bill Silson. Fred Partridge was the firm’s first Stock Manager.

Indigestion remedies were not a commodity sold by all managers of Farmers’ Co-op branches. However, one early branch manager, R. M. Hardy of Inglewood, ‘used to make up a mixture of baking soda, sugar, milk and ‘bishurated’ magnesia as an indigestion remedy, which he sold locally from his office premises’. After his death the recipe was taken over by a pharmaceutical firm who then marketed the product for a number of years. Perhaps this medication had a soothing affect on the district because throughout the past 100 years it has remained a loyal supporting partner to the company in every way.

Rimu Street, Inglewood. (Photographer F. G. Radcliffe.) COURTESY OF COLLECTION PUKE ARIKI. PHO2009-164

MacKay’s property was chosen as the site for the saleyards and was now in a state of transformation. In mid May 1916 it was reported that, ‘The Farmers’ Organisation Society’s saleyards are now well under way, and are a credit to those responsible for their construction’. This was a new breed of saleyard. The ground plan covered an area of 180ft by 99ft with concrete flooring throughout and all posts were ferro-concrete. At the eastern and western ends receiving pens were built, subdivided into two, ‘making drafting extremely easy’. There were two rows of pens, varying in size and between them the flooring was ‘well-channelled’ ensuring the yards would be kept in a, ‘perfect state of cleanliness’ with very little labour. At the eastern end of the cattle yards, pig pens were erected, and on the southern side sheep pens and drafting yards were constructed also with concrete races. A ‘commodious’ ferro-concrete shed, 36ft x 90ft, was also constructed for selling dairy stock. Practically all the timber used in the yards was jarrah.

Focus of the stock and station industry in Taranaki was now centred on the town of Inglewood. A committee from the board of Farmers’ Co-op met in Stratford at the request of Newton King in connection with the question of his use of the Society’s new yards at Inglewood. The decision was ‘negative’, with no action to be taken. The opening sale at Inglewood on 28 June 1916, was another milestone in the company’s history and for the inhabitants of Inglewood. A free lunch was arranged for all attending the sale. Although a cold day, it was not raining and the very large turnout saw a good selection of entries:

OPENING SALE

INGLEWOOD SALEYARDS

WEDNESDAY, JUNE 28

THE FARMERS’ CO-OPERATIVE ORGANISATION SOCIETY OF N.Z. LTD., Will hold their opening sale in their new saleyards as above. Present entries include:

80 3 to 3½-year bullocks

25 2½-year steers

30 20-month steers

25 20-month steers

30 yearling steers

The Inglewood saleyards, built by Farmers’ Co-op, opened on 28 June 1916 at Junction Road (now Rata Street).

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50 yearling steers (in lots)

25 yearling steers

45 fat and forward cows

10 fat cows

5 fat cows

35 store cows (in lots)

75 yearling heifers (in lots)

12 grade Jersey yearling heifers

20 empty 20-month heifers

6 empty 20-month heifers

2 20-month Jersey bulls

40 3-year springing heifers

12 2-year springing heifers

1 cow (September calver)

1 fresh-conditioned bullocks

150 fat and forward woolly hoggets

160 good skinned ewe hoggets (one ear mark)

50 fat and forward empty ewes

160 4 and 6-tooth wethers (off turnips)

20 fat ewes

25 hoggets

6 pigs

Sale at 1 p. m. sharp. Luncheon provided.

NOTE: We have provided special accommodation for the handling of pigs. Entries Invited.

The saleyards proved a great success. Signboards were erected and due to the extent of traffic and stock in and out of the yards the Taranaki County Council was requested to lay metal from the stock gates to the main road.

Approval to build a store in Rata Street was granted on 8 July 1916. It was specified to be 40ft long and 40ft wide, concrete walls both sides and at the rear. The front and roof were to be iron and the floors wood with ‘three piers end to end’. The work was undertaken by Mr Lockhart, builder, of Hawera under the supervision of directors Messrs Corkill, Jones and Todd. The local press reported that:

The new Farmers’ Co-operative Society building is in the course of construction. When completed, it will make the town a little more substantial. The operations of the two firms (Newton King’s and Farmers’ Co-op) make a noticeable increase of people in the place on sale days and Saturdays, and on these occasions quite a display of motors is to be seen in the streets.

October arrived and the Farmers’ Co-op held their first bull fair in the Inglewood yards. Good, well bred bulls were in fair demand, but inferior stock was neglected. Other stock were also disposed of, cows close to calving produced good bids up to £14.10s, while heifers ran up to £15. There was a good demand for fat sheep. The increased activity in the district prompted the appointment of a female staff member for the Inglewood office, ‘at a salary of 15/- per week’, and the company ‘acquired a dwelling house’, on the Inglewood property. Popularity within the trading operation increased to such an extent over the next year that in September 1917 it was reported that it was found necessary to make substantial additions to the business premises – a 47ft by 20ft addition to the front and 30ft by 20ft to the side. The improvements provided a front entrance for customers, with a verandah, on Rata Street and a new unloading stage on the side of the building, ‘thus avoiding the present

congestion due to factory carts near the loading stage’. A manager’s office was also included. The construction was being completed by Mr H. Peterson and Co. ‘Mr Press, the manager, informs that the business done by the Farmers’ has doubled within the past two years’. Again in June 1919 a report stated that:

The Farmers’ Co-op Society contemplates erecting bigger premises in Rata Street. The shop adjoining Robb’s store has been sold and pulled down, while the cottage nearby will be removed to a fresh site in the side street. The full front will be greatly extended, and when finished, should add greatly to the business aspect of the town.

Speaking at the opening of the Farmers’ Co-op store at Inglewood on 1 September 1925, Mr A. Corkill, a local director representing the Society, remarked that ‘the district had the reputation of being the home of blackberry and ragwort, but the settlers were not only getting rid of the weeds on their land, but were also cutting out the weeds from their herds, commonly called ‘the robber cows’, and this policy, coupled with the use of a little more fertiliser, would make their district one of the best dairying centres in New Zealand’. He went on to say that one settler was milking 48 cows with his herd testing returns showing an average of 412lbs and another farmer was running a small herd at the rate of ‘a cow to the acre and keeping them on the farm the whole year round’.

The interests of the Inglewood shareholders were also kept well in hand with the addition of a new sheep dip at the ‘old Dudley Road yards’. One striking feature of the scheme was illustrated in a lengthy editorial that elaborated most eloquently on some of the facilities of this idea, ‘reputed to have been introduced from Argentina’:

The means adopted for getting the sheep into their vermin proof destroying bath with the least possible waste of time and application of violence …. There are other details of contrivances, water supply, drainage etc, which would be more easily understood by inspection than description; in fact to anyone interested in such matters, a visit would prove interesting, and if made on sale day, profitable.

CHAPTER FIFTEEN

Rumour is a Lying Jade

Farmers’ Co-op’s entry into the stock and station arena in Taranaki provided the necessary impetus to form Taranaki’s first Auctioneers’ Association. It was founded on similar lines to associations in other parts of the Dominion, and using the Waikato Association as a blueprint, it came into being on 1 January 1916. Yet a further co-operative initiative was created by N.Z. Farmers’ of Christchurch with the formation of a Farmers’ Co-op Wholesale Federation, which would provide great assistance to affiliated societies in the ability to collaborate in buying and selling. There was indeed an air of change in the Society as it struggled with staffing the growing organisation. With the war in Europe the male work force was severely depleted, with ‘men leaving for the front’. New appointments were being made to fill vacancies resulting from this and the creation of new positions relating to expansion. At this time Mr J. A. Holder, attempting to hold down the positions of general manager and secretary, suffered a serious breakdown in health and resigned from the position. Mr H. A. Williams, a manager who had also been employed by the company’s predecessors for many years and was held in very high esteem as ‘one of the most responsible officers of the Society’, also

Main Street, Waverley, 1913. COURTESY OF SOUTH TARANAKI MUSEUM

severed his connection. The directors noted ‘that in taking his place Mr Digby will have no sinecure’. Only one month later, on 1 June, Mr N. P. Digby, with many years experience as an auctioneer and salesman with Messrs Pine & Co. of Christchurch, was appointed to take charge of the agency in the Waverley district to conduct the Society’s affairs and Mr C. A. Burke was offered the position of agent at a salary of £3 per week. During the year the Society secured the services of Mr F. J. Hine of Timaru to take charge of the Hawera produce department.

Mr J. G. Nichol who was in the position of acting general manager until a new general manager appointment was made, was eventually appointed secretary of the Society on 1 June 1916, at a salary of £350 per annum. Mr Nichol was in fact one of the few members of the inside management staff who had been with the company since operations commenced, illustrating how fragile the employment infrastructure of the company was at this critical time in its history. He became Hawera branch manager in 1920, a position he held until 1922 when he transferred to Stratford as branch manager.

Through Mr E. W. Relph, general manager of Farmers’ Co-operative Association of Canterbury, Mr M. J. Lynskey was eventually appointed as general manager on 19 July 1916, and took up the position in September. He was recommended by Canterbury Farmers, where he had been the manager. His nearly 26 years experience in the stock and station industry had started with the Canterbury Farmers’ Association, where he had held positions of accountant, auctioneer in charge of the Ashburton stock business, and organising auctioneer for Christchurch. He had been promoted to manage the various Canterbury branches of the company. He was well known in sporting circles, having been New Zealand half-mile champion in 1900–01, and represented the Canterbury Rugby Union. His tenure with the Farmers’ Co-op was somewhat brief, however, as in 1918 he retired. The precise reason for his sudden departure is unknown but perhaps chairman Alex Hunter’s remarks to shareholders at the 1917 annual meeting throw some light on the subject:

Mr J. G. Nichol, acting general manager and secretary of The Farmers’ Co-operative Organisation Society of New Zealand Ltd, 1916.

Mr Lynskey took up his duties at the beginning of September, and thus controlled the business for the past seven months of the year. He had of course, to adapt himself to conditions somewhat different to those existing in Canterbury, while the application of his training to our business has produced a marked improvement.

I wish to correct an idea that has by some means gained currency, to the effect that Mr Lynskey has plucked the Society back from perdition or thereabouts. Mr Lynskey would no doubt bear me out in this. Since its first throes this Society has never looked back, and has gradually gained strength and after their experience the directors were of the opinion when making a selection that even in the face of indifferent government by its board and management by its executive officer it would still succeed to a limited extent. They also are confident that under good management there are huge possibilities to be attained.

Mr Lynskey’s position was filled by Mr Thomas Taylor, a banker from Waverley. With 2,273 shareholders now on the Society’s books, many wanted a say about some aspect of the Society’s affairs. The Company played such a huge part in their day-to-day lives as financier, seller and buyer of almost all their worldly possessions, it was not surprising that rumour and speculation became the norm and required careful public management from time to time, as was the case in connection with the non payment of cheques:

It has been rumoured that cheques have been held back at times, but I have the assurance of the management that in no case has this been so, except where enquiry was necessary, or where through press of work and shortage of staff it was found impossible to get the cheques out on time. ‘Rumour is a lying jade’. Don’t trust her, ask the manager.

Commission rates on livestock sales had increased from 2½ per cent to 5 per cent over the past two years and this was becoming an issue with shareholders who were now pressing for some reduction in the rate. The Society had seceded from the Auctioneers’ Association and the matter of stock commission rates was undergoing review. In fact almost every pound spent was closely analysed by stakeholders, with the chairman having to explain what would be considered today as trivial matters:

Auctioneers, for example, there was no place at which their agents could get lunch and they had to take it with them. This the Society paid for, and the total amounted to £17.3s.2d. Motor car and gig hires amounted to £980.17s.9d. railway tickets £38.6s.7d. and agents expenses £1264.11s.7d. The agents’ expenses worked out at £6.4s. per agent, and this also included the upkeep of five cars. Last year they held 205 sales and this worked out at £4.15s. per car per sale. On some occasions two and three cars were required for one sale.

Two extraordinary years had passed, presenting far more problems than the originators would have envisaged. Difficulties, including staffing, establishing offices, stores and other premises at Hawera and elsewhere throughout the province continued to place pressure on the management. There was in fact a continuing state of change and reorganisation which had to meet growing demands on the Society by the farming fraternity and the shareholders. Everyone wanted a ‘piece of the pie’ but the problem was paying for it. Chairman Alex Hunter commented that although progress was encouraging and showed that farmers had confidence in the Society, ‘it is hoped that the satisfaction arising therefrom will not induce any to ease off, rather to increase their endeavours and further strengthen the Society’. Sadly at this time auditor and accountant Mr J. A. Turton passed away. He had rendered sterling service during the Farmers’ Co-op’s formative years and setting-up period and his valuable contribution was acknowledged by the Society.

Women were seldom mentioned in the minutes of most organisations in the early years, yet their contribution to the country, during European settlement of New Zealand and later during the First World War was enormous and in the main unheralded. We are fortunate that Judy Brewer of Hawera has a clear recollection of a dear friend who was one of the first women employed by Farmers’ Co-op in the early years. Miss Muriel F. E. Corry, typist/correspondence clerk, was born on 28 May 1892 at Otakeho. Her father, Smithson Eden Corry, was the first branch manager of the Taranaki Farmers’ Mutual Fire Insurance Association at Hawera, another early mutual organisation working under the principles of co-operation. Consequently it was not surprising when Miss Corry accepted employment in the offices of Farmers’ Co-op, joining the Hawera branch in February 1916. She retired in 1921, rejoining in 1923, and finally retiring in March 1958. Muriel eventually became personal secretary to Clem Trotter, general manager, and one of the most charismatic figures in this history during his 30 years with the company. Loved and respected by all staff, Muriel was ‘small and slim with brown hair, and had twinkling brown eyes which characterised her delightful but always kindly sense of humour’. With her sisters she shared a great love of gardening, and there was a terra-cotta bowl hanging near the front door to feed the birds. She owned a wonderful early model Austin Seven car which they called ‘Rosie’, and the Corry sisters often drove into the country to visit friends or to picnic. The sisters owned a large colonial dwelling on the north side of Glover Road and for many years shared the dwelling with Norman and Joan Faulkner-Blake. Norman held the position of company secretary for Farmers’ Co-op for many years. Muriel Corry died at Hawera on the 1 September 1972, aged 80 years.

Although the company was committed to moving forward, it was a critical time in its adolescence. Expansion cost money and cash flow was becoming a problem, with more capital sorely needed. It was resolved at this time that bonuses to staff discontinue due to the fact that certain staff members were not in the superannuation scheme and this had to be taken into account when adjusting

salaries. Commission to staff on the sales of shares was also discontinued and, ‘in lieu thereof, this record be taken into consideration in adjusting salaries’.

Although there is no formal record of the Farmers’ Co-operative personnel employed at this time, the following is transcribed from a handwritten note affixed to a minute book showing designations, salaries and employment inception dates:

T. J. Salmon Clerk – January 1915, £200 to £250

F. P. Uniacke Clerk – January 1916, £175 to £200

F. J. V. Wilson Clerk – December 1914, £200 to £210

M. F. E. Corry Typist/Corresp. – February 1916, £65 to £78

E. A. Nixon Stock Agent – April 1916, £260 to £280

P. M. Harrison Stock Agent – April 1914, £182 to £195

H. H. Marchant Stock Agent – April 1914, £156 to £175

H. J. Judd Produce Manager – April 1914, £156 to £175

Florence Reid T & C Clerk – November 1915, £26 to £52

A. G. Clark Stock Agent – April 1914 £175, to £185

N. Innes Stock Agent – February 1916 £156, to £170

SIXTEEN

Over the Whanga Saddle

There has always been a sense of mystique about the local people and the harmony engendered with the natural beauty of the virgin bush-clad hills and rugged countryside of the eastern back blocks of the province. Settlers became a clan of their own making, in this distant corner of Taranaki. Many challenges and hardships awaited those who ventured into this seemingly ‘forgotten world’ and as the century unfolded the forever-changing infrastructure of farming in this isolated, difficult terrain would test the most dedicated drystock farmers. However, Whangamomona and other remote eastern Taranaki back- country settlers were eagerly eyeing the opportunity to court the Farmers’ Co-op with a view to establishing saleyards within the district. James Garcia wrote in the History of Whangamomona County that saleyards were built at the Strathmore end of the county in 1896 by Steuart and Corrigan and later sold to Webster and Dobson who disposed of them to Young and Hobbs. Newton King also showed faith in the possibilities of Whangamomona by erecting stockyards on a piece of land about two miles north of the town, opposite the property farmed by Mr. W. Gill, adjacent to the railway line. Bill Webster ‘wielded the hammer’ at the first sale. It was an outstanding success, with the yards filled to capacity and the road lined with mobs of cattle. Yardings of about 2,000 head were offered and ‘found ready sale’. A local settler, Ken Anderson, spoke of other yards ‘down Prospect Road’ where he was the yardman:

I have seen 10,000 sheep yarded at times, mostly from the Whangamomona Road, and they were their surplus stock lambs, wethers and cull ewes, not their breeding stock. These saleyards became a great asset to the settlers. About ‘a decade later the N. Z. Loan and Mercantile Co. yards at Kohuratahi on the southern side of the road were demolished, although the indentations in the ground can still be seen’, says Ron Wilson a former resident. ‘Not long afterwards Newton King’s yards were opened in the same locality.’ In the end three saleyards were built at Kohuratahi during the early 1900s. The last yards in use were also on the southern side of the main road originally owned by Newton King and they eventually became the joint responsibility of Farmers’ Co-op and Newton King Ltd, and latterly Allied Farmers’ Limited, where many memorable sales were conducted. Saleyards known as ‘Shewry’s yards’ were on the opposite side of the road adjacent to the railway. Descendents from early settlers Don Law and Bernard Murphy also recall the saleyards, mentioned earlier, on Prospect Road, Whangamomona, a few hundred yards outside the township and on the main road, two miles north of Whangamomona, situated ‘on gentle country, adjacent to the river and the original highway’. There was also ‘a community sheep dip’. Bernard Murphy remembers attending the last sale with his father in 1938. The yards closed due to the lack of sheep numbers and also, as the country opened up, the centre of population shifted to Kohuratahi, a district five miles north of Whanga.

With saleyards already established within the district it is not known why a deputation comprising four settlers from Whangamomona met with a committee from the Farmers’ Co-op board of directors on Saturday 16 June 1917 in connection with three alternative proposals for the construction of saleyards at Whangamomona itself. The deputation was led by Mr Geever who met Messrs Death, Wills, Marfell, Buckeridge, Jones and Swindlehurst to discuss establishing yards in the district and the matter of taking up shares in the company. The first proposition put to the Society was as follows:

That the three firms operating in Stratford should join together and build yards at Whangamomona to sell on the same day.

Directors pointed out that it would be necessary for the three firms to operate on the same day otherwise a good yarding could not be expected. They did not think, however, that this particular proposition would be entertained. The second proposal was:

If the Whangamomona settlers were to form a saleyards company and build yards, would each of the companies, e.g. Newton King, New Zealand Loan and Mercantile and Farmers’ Co-op, subsidise the settlers’ saleyards company in the ‘matter of taking up shares’.

The third option was:

That the three firms sell in the yards on the same day if the saleyards company, Whangamomona, were to build the yards.

The deputation advised that the estimated cost of building the yards would be £300 and felt they could secure a site for £50. It was also proposed that ‘a rebate of ½ per cent for each line sold should be credited to the saleyards company as a sinking fund against the upkeep of the yards’. On 28 July, the proposals were placed before the board and it was moved by E. Marfell and seconded by

Early photograph of Whangamomona township in the making.

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A. T. Wills that ‘If the Whangamomona settlers build yards the company would be agreeable to sell in their yards preferably on the same day as other firms, on terms to be arranged’.

An account of a Tahora sheep fair being held on Friday 2 March 1917 by Newton King ‘in the yards of Messrs C. McCutchan, W. L. Kennedy, Shewry Bros., H. Pittams, L. Smith, Burch, C. R. McCartie, H. Wilkinson, T. A. Lees and others’. It comprised 5,400 sheep. The sale was at 12 o’clock and the notice said: ‘Cars will leave my Stratford office at 9 o’clock on morning of the sale after arrival of north and south trains. Intending buyers are requested to book seats early.’

The Farmers’ Co-op’s presence in the Tahora district was also gaining momentum when they held ‘a big sheep and cattle fair’ in January 1925 – ‘thanks to the untiring energy of the firm’s local agent, Mr Ned Shewry, the yarding is expected to be a record’. The Tahora News in the mid 1920s reported the huge amount of work being undertaken to dig 24 tunnels that would eventually provide a rail service between Stratford and Taumarunui. Camps were set up for workers and one news item reported:

A new corps has been formed here. All the ‘Annand Mounted Navvies’ men ride to work nowa-days, their jobs being too far to walk to. So judge for yourself Mr Editor. It will be through to East Cape in no time.

Tahora once had a railway station and a shop owned by Rooney and Co. and managed by C. Meredith. This was acquired by Mr Schweiter in 1925, there was also a butchery, owned by McCartie, McNab and Co. Sadly the last remnant of this small community, Tahora school, finally closed in 2006.

In June 1930, Mr A. H. Perry was appointed agent for the Kohuratahi district in place of Mr Shewry at 20/- per day for three days a week. A most successful social was held in the district and it was reported by the districts director on the board that ‘the function was very successful and in his opinion it was a cheap method of advertising the Society in the back country districts’. Discussion

Early photograph of Hurimoana from the Tahora Saddle.

was held in connection with the arrangement with Mr J. E. Shewry and the Kohuratahi saleyards. The saleyard arrangements between Mr Shewry and Farmers’ Co-op are unknown. However, it appears to have been an agency arrangement of some kind. Two years later Mr Cleland, director, raised the question of re-appointing Mr J. E. (Ned) Shewry to the position of stock agent for the Kohuratahi district, ‘as he was considered the most suitable man for the position’. This was a keen observation from the director, for here was a man who would go down in history as one of the outstanding pioneering characters of Taranaki’s back blocks. Ned Shewry was offered a position as stock agent in 1933 for the Farmers’ Co-op, at Kohuratahi. There are references that indicate he had ‘taken on a butchery business and may not have time to attend to outside work’. Nevertheless, he remained a stock agent for a period of time and became an iconic figure in the district, known to all who worked in the stock and station industry of the day. The title of a piece of land comprising eight acres belonging to Mr Shewry was transferred to Farmers’ Co-op in 1940 for saleyards at Kohuratahi, and the yards known as the ‘Shewry yards’ remained on the site throughout the century and beyond. In 2008 the Menzies family purchased the 250-acre block at Kohuratahi, including the ‘Shewry yards’ under the name of Rannock Burnlee Trust.

Born in Stratford in 1889, John Edward (Ned) Shewry grew up on a farm at Tahora. The district was just being broken in and Ned’s parents, Robert and Elizabeth, had a large block of land on the Moki Road which was gradually being cleared for farmland. His exploits and skill with an axe became legendary. Sorrel Hoskin wrote a descriptive profile on this most extraordinary bushman and his life. He would become a household name in New Zealand as an axe-man for nearly a quarter of a century: In a nation of woodchoppers Ned Shewry stood tall … New Zealand was broken in by an axe and a crosscut saw – as a sport wood chopping is more traditional to the country than rugby. When he was 17 Ned took up farming with his older brother Archie on a block next to their parents on the Moki Road. The young men set to work clearing the land with just a couple of axes, a saw and a packet of matches. Ned thrived on ‘bushwacking’. He soon became adept with an axe and learnt the most economical way to fell a tree, the art of how to balance and get his hips behind the axe, like a golfer. He developed big calluses on his hands from handling the axe, and developed a fine physique.

He soon caught the eye of Hughie McLeod, an old bushman, who took him under his wing and entered the young man in the chopping events at the 1909 Whangamomona sports day.

Although Ned’s first attempts at competition chopping were a disaster, he quickly chopped his way to success and in a few years competed against the world champion, Dave Pretty, and Australian greats Bill Peck and Charlie Miley, and beat them all. He went to Australia and competed in Brisbane, Toowoomba, Rockhampton and MacKay, building a reputation as a modest champion who let his action in the ring do the talking. Just as his chopping career looked set, World War I saw Ned and his brother David enter the armed services. Ned served in Egypt, France and Belgium. Tragically David died from injuries received in France in 1917. Ned was wounded twice and awarded the Military Medal for bravery – saving an officer’s life while under fire. After the war Ned Shewry’s prowess as an axe-man received acclaim in international newspapers. He died aged 73 on 1 August 1962, and was buried in the cemetery of St Marks Church, Lepperton. An obituary by his friend Rob Hair, said:

Ned Shewry, world champion axeman, footballer, bush feller, farmer, plant lover, a hard headed businessman, frugal in affairs of his own, generous with those he liked; keen brained, a hard hitter in debate, and the wielder of a sly and devastating wit.

John Edward (Ned) Shewry, World Axemens Champion.

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Stratford’s first Farmers’ Co-op branch store, 1918–19.

The Forgotten World Highway east of Stratford is probably one of the best remaining examples of ‘the way it was’ and entry of Farmers’ Co-op into this rugged terrain where generations of families learnt the art of ‘farming both sides of the acre’ became a lifeline to many establishing stores and/ or saleyards in a number of far-flung eastern Taranaki outposts, including Douglas, Kohuratahi, Matau, Matiere, Ohura, Tarata and, in later years, Ohakune. Colourful stories are told by those who serviced what is known to be one of the most remote farming settlements in New Zealand. Keith Newland, who eventually headed the Society’s stock department, followed in his father’s footsteps. Ted Newland came to Taranaki in 1928 to work for Farmers’ Co-op at Inglewood and Eltham. Keith said:

We had a lot of sales at the Whangamomona pub in the early years after we had finished out at Kohuratahi saleyards. It was 6 o’clock closing in those days and the local policeman would come down to the pub around 6 o’clock, come in, have a walk around and chat and check that everything was okay and wander off. Later he would drop in and go home.

Stratford was no exception to the rule. Opening branches of the now diverse and powerful Farmers’ Co-op in small rural towns was having a devastating effect on existing businesses trading in the same range of commodities. Consequently it was not surprising that when it became known that Farmers’ Co-op was to establish a branch in a town the board received a deluge of offers from existing proprietors, attempting to salvage something from their own often meagre operation. During December 1916 the Society purchased saleyards at Stratford, from Messrs Webster and Dobson for £400, and it was recorded ‘that the Seal of the Company be affixed to the transfer from F. W. Webster and F. E. Dobson to the Society of their interests as lessees under the lease registered No 8834 from the Mahoy a/c of the Borough of Stratford’. These stockyards were capable of catering for all the wants of central Taranaki and, following repairs, the yards and an office were opened. An actual branch was opened in Stratford in 1918 at the present location on the north-east corner of Miranda and Regan Streets. Mr T. J. Salmon, formerly Head Office accountant, was appointed Stratford branch manager. A garage and benzine pumps were situated on Southern Broadway adjacent to the Patea River bridge; the building was previously the stables of the Empire Hotel.

Stratford Farmers’ Co-op Motor premises, Broadway South.

McLean Street, Waitara township. ( Photographer F. G. Radcliffe.)

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It was eventually destroyed by fire along with several cars housed in the showrooms. The motor department on Broadway was opened in 1927. Expansion of the Stratford branch continued over the years.

Urenui in the northern part of the province was now targeted by the Farmers’ Co-op and a meeting, chaired by director George Buckeridge, was held with the purpose of establishing saleyards and a store in the township. The gathering was ‘a satisfactory one and another progressive movement will shortly be made by the Society’ and it was said that: ‘The management of this Society has been prudent yet enterprising, and it is pleasing to see it making continual headway in the manner it is doing’.

In minutes of appointments in 1917, Mr E. E. Duke was appointed to the position of stock agent at Inglewood from July at a salary of £5 per week and Mr G. Walker, stock agent at Waverley, in August. Until now an agency had been operating at Waverley having been established on 1 June 1916 and operated by Mr N. P. Digby. There had been correspondence with the Department of Health about the Farmers’ Co-op’s proposal to build saleyards on Waverley Education Reserve. This coincided with the purchase of Mrs Cleary’s 2½-acre section at Waverley for a saleyard site and new yards were constructed in 1918. Saleyards at Kaponga had been established from the outset when existing yards had been purchased from Gillies and Nalder by Farmers’ Co-op in 1914. What was considered to be the most important acquisition in 1918, with a bearing upon the later successes of the Company, was the purchase of a building from the Sash and Door Co. at Wanganui for housing wool. This building was later sold and a new woolstore was built at Gonville.

During the year ending 31 March 1918 a new concrete store was built at Kaponga providing farmers living at the base of the mountain with a timely and permanent local retail merchandising outlet. Waitara was also in the Society’s plans when they appointed an agent and established a store at the end of 1916. Two buildings were acquired on the river side of the Quay where both hardware and farm produce was sold. Other premises further along the Quay, were leased and used for the storage of petrol and grass-seed cleaning. These scant entries are the last recorded minutes relating to the Farmers’ Co-op, and ended abruptly in 1917, with no further record of directors’ meetings until 1930. The possible reason for this unfortunate eventuality will be revealed later. Much of the Society’s history during the next decade has been gleaned from newspaper articles, reports and a variety of other documents and historical publications.

Star of Peace and True Love

The Great War of 1914–18 had interfered with the establishment of Farmers’ Co-op from its inauguration, with a major impact on almost every aspect of the Society’s business. A ‘number of men’ from the staff had enlisted along with ‘many members and their sons’, some making the supreme sacrifice. Detailing the Staff Roll of Honour took precedence in the third Annual Report, for the year ending 31 March 1917:

Several changes have taken place in the personnel of the staff, the following members have joined the Colours:- F. H. Anderson, N. A. Arthur, B. L. Joll, C. E. Makesey, C. L. St. Hill, E. J. Brammall, J. B. Young, W. Booth, J. A. Cramp, L. E. Jackson, W. E. Williams, F. J. Hine and A. G. Clark.

We regret the loss on the field of battle of Messrs: J. A. Cramp and W. Booth, both of whom have made the supreme sacrifice for King and Country.

During 1918 Mr S. A. Chisholm joined the Colours, and sadly Mr F. J. Hine was killed in action. The board and executive management accepted the responsibility of watching over the Taranaki farming industry to produce food and raw material for clothing – to keep the ‘milk and honey flowing’ to support allied forces and the industrial sector of the Empire. The shortage of labour had created considerable difficulties and the Department of Agriculture was wrestling with the logistics of retaining enough men in the workforce to maintain quality and quantity in management of many of its industries, including dairying, freezing works, woollen mills and farms. Morale was an important ingredient for those left behind to keep ‘the home fires burning’. Over 124,000 New Zealand personnel eventually served in the armed forces in World War I. Many thousands were injured and tragically some 18,000 gave their lives.

In moving the adoption of the report and balance sheet at the Society’s fifth annual meeting on Saturday, 21 June 1919 at the Foresters’ Hall, Hawera, chairman Alex Hunter addressed a large gathering of shareholders and used the opportunity to express his views on the state of the nation and the effect the Great War had had on both meat and dairy produce sold to the British Government at fixed prices for a considerable time. He also described what he felt the future might hold for New Zealand and the world as it lay in a fragile state of hopefully lasting peace:

Gentlemen, – Although this Society was born under the Star of Peace, its course, like that of ‘true love’, has not altogether been smooth. This is our fifth annual meeting, and four of them were held during the greatest war the world has ever seen and we cannot yet say we are under peace conditions. I feel sure we are all deeply thankful that the fighting and dreadful sacrifice of life have ceased, and hope that peace may soon be declared. Although the war is, so far as we can judge, over, the world is still in a very troubled state. Central and Eastern Europe and a great part of Asia are in a melting pot, most of it not being in any stable government, while many parts are labouring under industrial strife. It will, no doubt, be some time before things find their level, and nations and individuals adjust themselves

OLD TO BE SECRETS NOW

to the new order. It is to be hoped that the great lessons of the past four years will not be forgotten, but rather more fully comprehended, as they are left in relief, while matters of lesser importance fade into the background.

The great commercial combines and trusts so much in evidence nowadays, and the effects of their operations on the national and individual welfare, require careful watching and study, for some at least of the commercial ambitions of a trust are no more legitimate that the desire for power of the Kaiser. Though there is much to be said in favour of trusts, especially as regards reducing the cost of manufacture, distribution, etc., yet experience shows that, as a rule, neither the producer nor the consumer receive ultimate benefit. The trust is not satisfied with profit, but uses its power of capital and influence to stifle competition, and then force price down to the producer and raise the cost to the consumer. Co-operation is the true remedy. It probably has all the advantages of the trust, without the temptation to abuse its power. Command of capital is the source of power, and a co-operative concern cannot do much in the way of improving conditions until it is financially strong. The moral is obvious, and I hope members will do all they can to support and influence others to support their own business.

These were profound words from a man who was not only passionate about the Society he had steered through some turbulent waters in its infancy and some of the most difficult trading years of New Zealand’s short but eventful commercial history, but who also had a strong sense of loyalty and commitment to the greater plan for the agricultural sector of the Dominion. Despite the difficulties, the Farmers’ Co-op had shown progress, although with a less than satisfactory result during the past financial year: 1916 showing a profit of £4,312.7s.10d.; 1917 – £7,163.4s.6d.; 1918 – £9.032.15s.1d.; and 1919 – £5,904.13s.10d. Competition and poor weather during the winter and spring had caused a considerable drop in commissions. This, and the deadly influenza epidemic that swept around the world, rumoured to have been spread by soldiers returning from the trenches of France to more isolated parts of the world like the Pacific Islands and New Zealand, were considered causes. The epidemic soon spun its web throughout the country. In November 1918, before it subsided in the December, between a third to half of the population of the Dominion became infected, and over 8,000 had died from the flu, which, although not originating in Spain, was named the ‘Spanish Flu’, or the ‘plague of the Spanish Lady’.

Stock turnover showed a marked decrease, although the motor department had made a profit during the year despite not being able to get adequate supplies of new cars. The company now had its own garage and was able to keep a stock of cars available for its clients. The Society’s turnover was £762,000 for the year ending 31 March 1919 and Sundry debtors totalled £142,000, which was considered by some shareholders to be ‘all together too much for a concern like this to carry in addition to its subscribed capital’.

Debate on the pros and cons of paying rebates in shares rather than cash was about to engage the attention of the Farmers’ Co-op board. It was raised by Mr Powdrell, who remarked that ‘it was evident that the Society was overtrading’ and that it occurred to him that ‘instead of paying rebates in cash, such rebates and the interest on the capital should be paid in shares’. He went on to say that he had heard of ‘another concern’ paying 10 per cent interest in shares and that if the Farmers’ Coop had another £100,000 it would be more prosperous, because management expenses would not increase in ratio to the increase in business. He felt that ‘if it had a quarter or half a million capital invested in the district it would do an immense business’ and he was also sure that farmers would be content to take shares for rebate and interest, and thereby help their own concern gain ascendancy more quickly. Mr Buckeridge stood to respond to this comment, saying ‘they have the option of doing so now’. Mr Powdrell replied, saying ‘I have poor faith if farmers are given the option of taking cash or shares’ and went on to explain how ‘in Patea last year they paid ten per cent divided in shares and he heard no grumbling’. The debate continued, with some farmers expressing the view that if a rebate was paid in shares rather than cash business would be lost and that it would not work in

Taranaki because it had ‘such a shifting population’:

A man who wanted to sell his cows would say, ‘I get no cash rebate from the Farmers’ Co-op, they want me to take it in shares, but what good are shares to me. I will go to the other firm who gives cash rebates.’

Mr Powdrell quoted the districts of Patea and Kaupokonui as examples where the principle worked well. The chairman stated that no other concern gave rebates until Farmers’ Co-op instituted the process and Mr Davidson said that ‘if they could ascertain the exact amount returned by other firms in the way of rebates, that amount should be credited to the Farmers’ Co-op, because farmers had saved that as a result of the existence of the Farmers’ Co-op’. Mr Corrigan considered that had the Farmers’ Co-op not been in existence, farmers would have been paying a great deal more than they were today, and without any rebates. It had, at least, acted as a brake on other firms doing business in the country, and ‘had kept commissions down to the lowest basis’. James Corrigan, repeating that he was not there in any antagonistic spirit, pointed out that was the duty of shareholders to get all the information they wanted and ‘not sit like a lot of stuffed monkeys, afterwards going away growling’: ‘The directors’ jobs are thankless jobs, and shareholders owed them their best thanks.’

The debate concluded but the outcome of this early discussion is now a matter of history. While the men were confronting issues of the province, company and country, adjacent to a Farmers’ Coop press release in 1919 was some good news for the South Taranaki housewife:

WASHING NO LONGER A TIRING JOB

The woman who year after year has spent hours over the washtub need no longer rub rub rub the life out of the clothes to get them clean. Cut out all the drudgery by purchasing a packet of ‘Easy Monday’ from your grocer.

Add a little of this powder to the boiling water, rinse the clothes, hang them out to dry, and your washing is done!

‘Easy Monday’ not only gets through your washing in double quick time, but also washes the clothes much cleaner than the old fashion ways.

The clothes last ever so much longer, too, as there’s no rubbing the life out of them when ‘Easy Monday’ is used. Buy a packet today.

Sold by all grocers. Wholesaling distributing agents. W. E. Caldow and Co., Wellington. (Advt.)

As the world moved into the 1920s, the miseries of the war slowly faded. The Co-op’s volume of business was now over the magic one million pounds and although the chairman stated that the Society was constantly ‘urged to use the spurs, the curb is more necessary’. Despite that a dividend on paid-up capital of 6 per cent was recommended and adopted, the increase in business had not been matched by the acquisition of shares. Capital was still a constant problem, with only 1,692 shares allotted during the year ending 31 March 1919, while the increase in paid-up capital was £10,149. Shares were issued to 291 new shareholders. It was considered that for the amount of business being done a further £100,000 of paid-up capital was urgently required, otherwise the Society would have to lean heavily on the bank to fulfil its obligations. Mr Tosland asked at the meeting what additional amount of share capital was needed to carry on all the different branches of business the Society had in hand. He believed that the necessary capital could be obtained from the various centres if representatives of the Society visited and ‘had heart to heart talks with the farmers’. Mr Buckeridge agreed that meeting with shareholders would be a good idea but ‘it was difficult to have a heart to heart talk if shareholders would not turn up’. He said in any business it was considered reasonable to turn over the capital four times a year, ‘and shareholders should back the company to one-fourth of the business he does with the Society’. When Mr Bremner said that ‘he could buy as cheaply from

other concerns as from the Co-op and although he would rather lose a little than leave the Society, he could not understand ‘why the Co-op, when it could buy so cheaply, could not sell cheaper’. Mr Powdrell interjected, saying:

You won’t give us the money to buy. We cannot run the whole country from New Plymouth to Wanganui on a paid-up capital of £65,000.

Mr Cocker, supporting the call for more capital, said he intended to take up more shares himself and referred to the influence Farmers’ Co-op had had in bringing prices down, saying, while it was said that the Co-op sold at the same prices as the other businesses, the position was that other businesses had to sell at the same prices as the Co-op.

Discussion regarding the lack of capital was raised through the ensuing years and it continued to be the subject of considerable debate at board and annual general meetings. To place this in perspective and onto the back-burner for the time being, George Buckeridge’s response to Mr Bremner’s comments provided some ‘illuminating’ figures with regard to kindred societies:

At the end of the first year the Hawera Co-op Society [Farmers’ Co-op] had 1,216 shareholders and a paid up capital of £7,888 and they had a turnover of £231,946. To cope with the business they had to turn their capital over 32 times. A Waikato society had a capital six times that of Hawera, and a South

Farmers’ Co-op, Princes Street, Hawera – the Winter Show Buildings, formerly office of Gillies and Nalder, was the Head Office from June 1913 until 1934. Staff of 1919. From left : J. G. Nichol, A. K. Fyson, D. J. McCalman, H. Chadwick, R. J. Plank, G. Hunter, A. M. Barnard, K. P. Mahoney, R. A. Gray, T. H. Groves, H. E. Cressey, C. E. Morrissey, W. E. Williams, F. Clemow, A. Boden, G. C. Wilson, N. Lewes, J. C. Hobbs, T. Ash. This site is now occupied by PAK’nSAVE.

Island co-operative concern had only turned over its capital five times in a year. The Hawera society was the only one of its kind to be started in New Zealand under war conditions, or which had worked almost exclusively under such conditions. To handle their business last year, they had to turn their capital over 16 times. The business was under-capitalised, and it was up to them to relieve the directors of some of the burden they had been carrying. Take the next biggest co-operative concern. It had 4,200 shareholders, six times the capital of Hawera and two and a half times the business. The Hawera Coop had been the most profitable co-operative concern started in New Zealand, and it was up to the shareholders to see that the directors were not hampered in carrying on the business. The rock upon which the companies had invariably been wrecked in the past was inadequate capital.

George Buckeridge pleaded with the shareholders to support the company, stating that ‘each shareholder should hold about 15 shares if directors were to be relieved of their present responsibility and sufficient capital was to be provided’. This appeal brought an immediate response from Mr Powdrell who immediately promised to take an additional £100 worth of shares and urged others to do so. As a result £3,000 was subscribed at the meeting. However, insufficient capital continued to be one of the company’s major headaches over the years.

Assets had steadily increased, with a new building constructed at Kaponga during the year and saleyards at Waverley. All other buildings and yards were in good order, and although the days of horse and gig were rapidly passing, old-fashioned rhetoric was slow to change when the chairman announced that ‘it was found necessary during the year to ‘re-mount’ almost the whole of the outside staff on new cars’. As turnover rapidly increased so did the stocks of merchandise. Prices climbed so high that more capital was required to replenish stock.

While the major impediment to growth of Farmers’ Co-op was the lack of capital compared with the amount of business it transacted, the Society also had a seemingly casual approach to credit and fortunately or otherwise had a dogged determination at all times, regardless of the company’s financial position, to provide a safe harbour at any cost for those it served. It had a propensity to reach out far beyond the horizon into unknown often stormy waters rather than remain contentedly at safe anchorage. This commitment by the Farmers’ Co-op over time has been returned by passionate, loyal shareholders who although failing to adequately financially support the organisation, stood by it through thick and thin, proving at times to be the Society’s saving grace.

Like a headstrong young boy the Co-op bustled its way to the top, brushing off detractors as it went. A comparison of two years’ turnover clearly shows a dramatic increase:

DEPARTMENT 1919 1920 INCREASE £ £ £

Auction 603,875 727,856 123,981

Machinery 12,100 26,949 14,849

Motor 14,620 31,723 17,103

Produce 72,050 134,174 62,124

Wool, skins etc 59,628 102,006 42,378

Totals 762,273 1,022,708 260,435

Six arduous yet satisfactory years had seen the Society embrace almost the whole of the Taranaki province and early in the new decade chairman Alex Hunter commented that ‘the shareholders may be very well satisfied with the results obtained’. Attracting and retaining staff had not been one of the organisations strong points, no doubt hindered and influenced by the difficult war years, but ‘fortune favours the brave’ and personnel appointments were about to make a long-lasting and well deserved turn for the better. Eighteen-year-old Hilda Chadwick had been employed with Farmers’ Co-op as a shorthand typist in the office at Princes Street, Hawera, for one year. Maurice Dimock, her son, recalled how his mother Hilda had spoken of the day a young ‘very tidy and professional’

25-year-old Clement George Trotter, came into the Farmers’ Co-op office, at the Taranaki Winter Show Buildings to present himself to the management for an interview, having been offered a position as head auctioneer and manager of the stock department of The Farmers’ Co-operative Organisation Society of New Zealand Limited at Hawera. Though not realised at the time, it would not be long before this appointment would significantly impact on the Farmers’ Co-op and indeed the stock and station industry of New Zealand as the name ‘Trotter’, soon became a household word in rural circles.

The Trotter family originated in the moors and hills of Scottish-English border country. History records that there were several families, ‘who were free barons and were notable on the Borders over a period of six hundred years’. They were tenant farmers in the 18th and 19th century. The story of this colourful, industrious farming family is recorded in Hasten With Care: The Story of a Pioneer Family by Sir Ronald Trotter. John and Margaret Trotter and their six children: Anne, Alexander, Robert William, John, Clement George and Charles Alister arrived at Dunedin on the 914-ton sailing vessel Melitia from Tuns, Argyleshire, Scotland on 2 November 1866. As for many early settlers, their new home brought many challenges. Three sons – Alexander, Robert and Clement – eventually took up residence in Hyde, Central Otago. Sir Ronald’s history of his pioneering family recalls:

From all accounts Clem was a skilled farmer. Like his brothers he had good dogs and it was reported in the Mount Ida Chronicle of 15 April 1897 that he won first prize in the Burkes Pass dog trials.

About this time Clement was diagnosed with consumption, i.e. tuberculosis. This was a disease that was spread by coughing – young adults seemed particularly vulnerable and there was no known cure, although complete rest helped. It was another half century before the cure of antibiotic was found.

Sadly the disease eventually led to Clem’s death, on 10 October, at the age of 36. Grace, his wife, was left with five children between 15 months and eight years of age. She eventually moved off the family farm into a small cottage on her brother’s farm. Later she moved to Middlemarch and when her young son Clem was working in Dunedin, Grace rented a house in the suburb of Caversham with her two daughters. Clem obtained work with Otago Farmers’ Coop as a clerk at 7/6d per week and at the age of 14 years studied accounting at night school at Dunedin Technical College. He moved to the stock department and ‘at the exceptionally young age of 18 was a licensed livestock auctioneer’. He also became a wool auctioneer. The future of this exceptionally gifted young man was placed on hold when, at 21, he enlisted in the New Zealand army and was posted to an artillery unit in France. He became a regimental sergeant-major and declined officer training in New Zealand to stay with his unit. As World War I came to a close, his former manager at the Otago Farmers’ Co-op sent him a testimonial. It concluded:

I have been forty-five years in the stock and station business and my experience of you has been beyond all conception. Should you go to America, England or any other country in the British Empire or get stranded in any foreign land where, energy, integrity, commercial tact and general management are concerned no business manager need hesitate to employ ‘Clem Trotter’. As a judge of stock and as an auctioneer he is hard to replace in my country.

Clement George Trotter 1895–1970. Regimental Sergeant Major, New Zealand Field Artillery, France – World War I.

Lachlan McLean (Auctioneer, Otago Farmers)

When Clem returned to New Zealand he was appointed head of Otago Farmers’ stock department at Balclutha. However, he was

offered a position as head auctioneer and manager of the stock department of Farmers’ Co-op at Hawera and accepted the position. He moved to the district in 1919 and obtained a soldier’s loan to build a house for his mother. His youthful energy and intellect was immediately injected into Farmers’ Co-op and would prove to have a lasting and profound influence on the company’s future and the province of Taranaki.

As one new personality appeared on the scene the curtain closed on another. George H. Buckeridge, inaugural chairman and enthusiastic proponent of the Society, can be credited as the prime mover in its establishment. His style did not find favour with everyone but his enthusiasm, intellect and raw entrepreneurial flair contributed to the formation of a variety of other co-operative and commercial ventures during the years he resided in Eltham until 1919 when he moved to Hawera. He had strong links with the dairy industry and in 1924 became a member of a committee comprising representatives from 12 South Taranaki dairy companies under the chairmanship of James R. Corrigan, ultimately forming the Federation of Taranaki Dairy Factories, the forerunner of companies that eventually established Kiwi Co-operative Dairies Limited at Whareroa Road, Hawera, now owned and operated by Fonterra Co-operative Group Limited. He was also closely connected with New Zealand Farmers’ Union and held the position of provincial honorary organiser and acting provincial secretary for a period of time. Although in the early years he operated his own co-operative stores in partnership with his brothers, his most significant contribution was in connection with the establishment of the Eltham Co-op Dairy Factory Company Ltd and The Farmers’ Co-operative Organisation Society of New Zealand Ltd.

Although George Buckeridge’s keen interest in the New Zealand co-operative movement never waned, early in the 1920s he quietly stepped away from being actively involved to concentrate on his commission agency with Henry Lane and Co., of London, purchasing the output of several dairy factories. His interest in public and local affairs and ‘anything of a progressive nature’ kept him in the public eye and although he disclaimed any political aspirations and indicated he had no intention of standing as a candidate for the Egmont seat, he ‘tested the water’ addressing a meeting in the Town Hall at Eltham in 1935, when he spoke on the subject: ‘What’s wrong with New Zealand?’. He was asked by one of those present, Mr T. C. Stanners, what chance he considered Mr C. A. Wilkinson had of winning the next election. Mr Buckeridge said: ‘I should say he would have every chance’. Mr Stanners concluded: ‘I am quite in accord with you. I think he would cake-walk it. You would not have a chance George’. George Buckeridge was married twice and both of his wives predeceased him. His children included a son, Jack, and two daughters, Kathleen and Ruth. He eventually moved to Wellington and then finally to Auckland where he passed away in a private rest home in 1952 at the age of 85 years.

The Eltham premises on the corner of Railway and Bridge streets had cost £3,450 to date but possibly the most important acquisition during 1920 and giant step by the Society was establishing a branch in New Plymouth by purchasing one of the city’s most historic buildings, the Egmont Steam Flour Mill, situated at the junction of Courtenay, Currie and Powderham Streets, New Plymouth for £4,000, of which £1,500 was paid in cash and the remainder – £2,500 – placed on mortgage. This iconic five-storeyed wooden building, described as of ‘more pretentious character that is usually to be met with in small colonial towns’, was built in 1866 for £7,000, ‘a very tidy sum indeed’, and operated under the name of Websters and Hulke. The structure was described by a correspondent in the Taranaki Herald in September 1866:

The building which occupies a conspicuous position at the Carrington end of Currie-Street is 78ft long by 31ft wide, with an altitude of 50ft. The foundation walls are of stone, being 9ft in the ground and 4ft in thickness. The basement storey is also stone and is 13ft in height, with walls 2ft 6 inches thick. The stone used was ordinary beach stone. The upper part of the building is of wood and battened sides and the whole building is roofed with corrugated iron. Red pine and kauri were the timbers

used in the construction of the building, the scantling is very heavy, being 10 inches square. Indeed the whole building is built on a very massive style, and we question whether another building of the same size can be found in New Zealand to compare with it in that respect. The flooring joists of the second storey are 14 x 9 inches and the flooring throughout [sic] is 3 inches thick and tongued with iron.

This building was fitted with ample precautions against fire, with 400-gallon iron tanks fitted with pipes on each floor with a ‘plentiful supply of water’ obtained from the adjacent Huatoki river. The purchase of these most impressive premises made a timely statement of intent to the farming community surrounding New Plymouth, and provided a worthy home for the headquarters of Farmers’ Co-op’s northern Taranaki operation.

The name ‘Allan Rankin’ became synonymous with New Plymouth branch of Farmers’ Co-op for nearly 60 years, with both father and son, both Allan, employed at the store. Allan Rankin Snr was born in Australia and came to New Zealand with his brother, working on a farm at Winton in the South Island, where young Allan was born. Allan Snr came to the New Plymouth branch from Hawera in 1921 to a position of storeman.

Allan Jnr commenced working with Farmers’ Co-op in 1929. He described his introduction into the firm:

1929 and the 1930s were the depression years, I was at High School then and my father told me, ‘there is a job going at the Farmers’, you had better think about it’. So I left High School at the age of 16. I started down there. My job was to pack up the small packages of fowl food, wheat and bran and of course there was only three of us on the staff, my father, myself and a manager called Stan Wagstaff. For the first few weeks I was completely lost. I knew nothing about veterinary remedies, hardware, produce or anything but you learn you see. My father continued in the job for years after I started.

Allan Snr would eventually retire from Farmers’ Co-op, after 50 years of long and valued service, in 1975.

Following Allan’s arrival the Society opened a district office in the same building and he recalled:

… there was quite a staff there. A manager, accountant and two or three other staff who handled all the ledgers of Waitara, Inglewood and New Plymouth branches. At that stage they had no counters in the building, all the produce etc., was laid out on floors and this method of display continued for many years. Eventually they built counters, and opened a grocery department. They also had a hardware

New Plymouth’s first Farmers’ Co-op branch office at ‘The Mill’, Courtney Street, New Plymouth, 1921. The men may be Allan Rankin Snr and Mr Harris (manager).

department of sorts – I was not involved in that, I was still working in the produce department.

The Farmers’ Co-op was selling Hupmobiles in those days. There was a privately owned garage alongside the New Plymouth building that was acquired by Farmers’ Co-op. They operated an Austin agency and continued with the franchise for many years. You had to be a jack of all trades because we had to service the customers that came in for staples, nails and wire etc. When they put the counters in a hardware man was bought in from Nees in Wellington. They brought him in because he was experienced in retail hardware.

He was there for a year or two but wasn’t very successful and eventually they got rid of him. The district manager called me in one day and said ‘we want you to take over the hardware department’. I was not particularly enthusiastic because of the mess the other man had made. Anyway – as I went out the door he said: ‘you had better make a good job of it – otherwise you will be following him’. I ran the department for a number of years and finally they brought in an assistant – a boy straight from High School – and he turned out to be really good.

The type of hardware that you would buy in a place like Mitre 10 today, farm requisites like wire, staples and nails and seed and fertiliser. The branch also had stock and land agents working out of the building. In addition the branch had a manager running what we called the wholesale grocery, supplying all the other branches.

Allan Rankin’s recollections of his many years at Farmers’ Co-op would be a book in itself, but we are fortunate to be able to record some first-hand memories of his day-to-day experiences:

Many years ago we had an episode down there. I was paid on a storeman’s award – or something like that. When I first went for the job – the district manager in those days was a man named Jack Salmon and I had to go to see him. He said, ‘your pay will be 25/-d per week’. They paid me the first week and the next week he called me in and said, ‘I have something to tell you. We made a mistake, your wages will only be 22/6d. That knocked me back a bit! I thought it was rough, but I could do nothing about it. I had heard that FCOS were not very good payers, but I had nothing to complain about. My father’s wage was five pounds. When I got married I was getting five pounds.

We used to have a manager in Hawera we called ‘Squeaky Hewitt’ but I think history will credit Clem Trotter with saving the place. There were periods when there was a slump in trading during the 1930s and later than that.

I remember one time when Clem Trotter came up from Hawera to New Plymouth and requested that all the staff accumulate in the office. It sounded tough and we did not know exactly what it was all about. He gave everybody a surprise by giving them a little bit of a lecture. By the time he had finished we all thought we were going to get a wage cut. Then, at the end, he said ‘everyone is going to get a ten per cent wage rise’. Of course we were really surprised. Everyone left that room saying ‘we are going to have to get stuck in now and earn it!’ That was a memorable moment. He was a dynamic individual.

Alex Hunter, as chairman, was still firmly in charge and greatly admired by shareholders, the staff and all around him as the Society’s activities throughout the province gained momentum as it pushed into the 1920s. One could say that he was peerless. There were few, if any, in the community with the ability, patience and fortitude to withstand the ongoing and often difficult circumstances prevailing in these early years. His popularity was quite astounding when one considers the pressures brought to bear on his perseverance from almost every imaginable quarter. He appeared to manage so very well. Every shareholder required a slice of the action, continually demanding lower commission rates for livestock transactions and bargain prices for merchandise. In fact in these years some shareholders considered that they could make company rules ‘on the hoof’ by purchasing stock without consulting the management for financial accommodation, feeling aggrieved when asked to pay within a stipulated time. The chairman stated that: ‘The practice of making calls on our funds without notice must for the sake of stability of the business be discontinued.’

One of the Society’s founding provisional directors, Albert E. Death, retired from the directorate in 1920. However, his appetite for the co-operative movement and Farmers’ Co-op could not be quenched and he reappeared on the board in later years.

When Mr J. Quin moved that the chairman’s honorarium be increased from £150 to £250 at the annual general meeting on 27 June 1921, he said ‘personally I would not take the job on for £500’. Mr Hunter responded by saying ‘that under the present circumstances it would be fair to do so’. Mr Quin responded saying, Mr Hunter had ‘the ability, integrity and honesty to fit him for the position. He may be a wealthy man, to whom the remuneration was of no consequence, but as a matter of principle he was going to adhere to his motion’. It transpired that Mr Hunter had his way, as the chairman’s remuneration and directors’ fees were fixed the same as the previous year by an amendment that was carried. Throughout the years, as the Society spread its wings, staff numbers had steadily grown to 127 and a concerted effort was now being made, during the 1920/21 year, to decrease levels to a more manageable and economic number. The general manager stated that numbers now stood at 102, representing a saving of ‘between £5,000 and £6,000 a year’. Furthermore, to reduce costs agents were instructed not to use their motor cars, ‘unless profitable business was offering’. Complaints had been made to the general manager about employees joyriding in Co-op cars at the races. The general manager said: Their motor car department was a disgrace to the farmers belonging to the Co-op. Scarcely any of their shareholders, not even directors, came into the garage, but fortunately in spite of this and hard work, they had made that department pay.

He went on to say that it was his suggestion that employees should go the races provided they paid their own expenses. He told them to put their cars in the most prominent places and where they could best be seen. ‘No doubt they would take their wives and sweethearts in such cases.’ His opinion was that the stock department men went to the races because that is where they generally met people with whom they did business. He assured the critics ‘there was very little joy-riding’.

The Society was going through a period of retrenchment as a number of one-off payments throughout the past year had severely impacted on the balance sheet. Unusually high legal expenses and stamp-duty costs associated with the Waverley and Waitara properties and the completion of the Eltham property, together with ‘costs in connection with the payment of £18,000 to Green and Nalder (that is likely to be an error in a press report relating to Gillies and Nalder, and was probably the final payment in respect of the original purchase price when the company was purchased in 1914) all contributing to a need for financial stringency. The burden of finance of the Society was being largely carried by the bank and the West Coast Mortgage and Deposit Co. It was generally considered that had it not been for the existence of this company the Farmers’ Co-op would have

Winter Show Buildings, Princes Street, Hawera 1923. Farmers’ Co-op Head Office from 1914 to 1948.

COURTESY OF ROSS AND CLAIRE CORRIGAN

closed its doors. Retail prices on many commodities were found to be higher than competitors and, somewhat reluctantly, a squeeze on credit was being applied. But for a few exceptions, now every account over £300 was secured.

Difficult times lay ahead and the Society was predicting further losses and making every effort to prepare for the worst. Farmers’ Co-op, and indeed New Zealand, had now caught up with the rest of the world, struggling to adjust to post-war conditions. The economic legacy of the First World War was an increase in the New Zealand national debt, which rose considerably during war years. This problem created further borrowing during the 1920s and continued through to the slump of the 1930s. It is said that much of the borrowed money was spent settling returned servicemen on farms. During the approximate two-year boom, many returned servicemen were settled on farms under what proved in many cases to be impossible conditions for debt repayment. Combined with price rises in the post-war years, land values climbed to extraordinary heights. The

Stratford Farmers’ Co-op branch store, Regan Street, Stratford, 1921.

142 TOO OLD TO BE SECRETS NOW

‘honeymoon period’, if you could call it that, was well and truly over. A sharp slump in 1922 began to impact on profitability and, inevitably, the Society’s eighth annual report did not make cheerful reading, with the balance sheet showing a ‘substantial loss’ of £23,185. 19s. 4d. on the profit and loss account, mainly attributable to falling prices of livestock and merchandise. Prophecies eventuated and chairman Alex Hunter said ‘I do not suppose anyone was so sanguine as to expect a profit’.

It is not the intention of this history to document the foibles of the ever-changing dairy and meat industry marketing options presented to the farmers over the years. However, Farmers’ Co-op could not have entered the stock and station industry at a worse time and it is therefore important to explain the extraordinary situation that prevailed. Difficult trading conditions were all too evident on the farm, with falling stock prices and the implementation of bulk-purchasing marketing schemes moving away from the traditional free marketing that was prevalent from the beginning of European settlement of the country. The First World War brought the ‘commandeer’ of produce, which probably led farmers to some appreciation of the benefits of controlled marketing,

Farmers’ Co-op Garage Staff, Princes Street, 1921–22. From left: In car F. Lasey (salesman), R. J. Hartill (mechanic), Bigham (mechanic), C. J. Brough (storeman), C. Cullenman (clerk), S. R. Tait (clerk), C. Ferguson (manager), S. Smart (foreman) W. A. Brown (floorman), A. S. (Tiny) Bell (mechanic), J. Sturroch (lathe turner) Hec Bagent (electrician), J. France (mechanic), unknown bystander.

associated, of course, with fixed prices. The depression greatly affected New Zealand agriculture and dairy farmers, leading farmers to demand further steps towards the control of the sale of produce. In 1923 the New Zealand Dairy Board, the Meat Board and the Fruit Export Control Board were all established.

After a decade of trading, the Society had navigated reasonably well through some extremely difficult and unsettled times. Tribute was paid to the late Mr J. C. Hobbs who had been head of the Farmers’ Co-op’s stock department for a considerable time and had been a most ‘efficient officer’, his knowledge of people and the district had been a great benefit to the Society and it was said that ‘probably there was not a better known man in Taranaki than the late Mr Hobbs who was also well liked and respected by the whole community.’

Although the ship had been kept on course, its captain had changed a number of times. Difficulties in retaining staff had been exacerbated by the war and the demand for competent management. Mr A. K. Fyson had been appointed to the position of branch manager at Hawera. With the early departure of the Society’s first two general managers, Arthur Gillies in 1916 and M. J. Lynskey in 1918, it had been a settling influence to have Mr T. Taylor from Waverley at the helm for almost eight years. His banking knowledge stood the firm in good stead during the depression years of the early 1920s when the Society was at its lowest ebb due to falling prices. Difficulties being suffered by the Society did not go unnoticed in the national press when ‘Cambist’ of the Truth slated the performance of the company in its columns on 15 November 1924, under the heading of ‘A Slight Improvement , But Still Very Sick’, stating:

On this occasion there is a slight improvement in the general position of this high sounding but totally inefficient organisation…. Putting it once again upon the broadest lines the idiotic efforts made to run any kind of a business on borrowed money can only result in failure, no matter who may try to carry on the foolish gamble. Ever since the ‘organisation’ got into business it simultaneously ‘got into debt’ and after ten years precarious existence it carries a load of debt which only the most hardened farmer could disregard without a shudder. Yet there seems to be an awakened conscience about this matter for the capital account has improved by the addition of fresh moneys to the extent of £10,237 during the year covered by these accounts. Compared with Co-ops in other districts, ‘Cambist’ has always noted what a fine body of shareholders are registered in this concern and it has always appeared to him that the parties who have had the job of paying into the capital account were VERY BADLY SERVED in the manner in which these sums were used.

Maligning certain aspects of the management, ‘Cambist’ also supported co-operative enterprise and chastised those who spoke against the philosophy, by saying:

It is a financial crime if members of these concerns give up the fight for existence and truckle to exploiting enemies. Co-operators, get to it and support your own concerns at all costs. Co-operative union, plus sufficient capital, is absolutely unconquerable and what is more is particularly the farmers’ only friend.

In answer to a shareholder’s letter, complaining that he could buy his goods, ‘as cheap and on as good terms as elsewhere, so what is the use of the company to him?’, ‘Cambist’ said: ‘Fie on you Mr Shareholder to write me such foolish lines. Use your own company to the fullest extent. Another year or two will prove the folly of your arguments. Stick to your organisation.’

Farmers’ Co-op hierarchy must have been intrigued by ‘Cambist’s criticisms, because clippings of his column were often slipped into the annual balance sheet file for safe-keeping. He attracted great attention in financial circles and was often quoted in the daily press and it was said that ‘Cambist’ ‘could either make or mar a new enterprise’. At the time his identity was a closely guarded secret. However, following his death it was revealed he was an ex-bank manager named Hobart, a fine character of a man, ‘an Irishman with a straight left that there was no avoiding. His Celtic impetuosity occasionally meant severe sub-editing.’

W. A. Hewitt, general manager, 1926–30, director 1938–43, of The Farmers’ Co-operative Organisation Society of New Zealand Ltd.

Hard times in the farming community saw substantial amounts of bad debts being written off and the Society’s inability to pay rebates, but the chairman was anticipating improving trading conditions in the coming years and as the effects of the war disappeared, optimism began to shine through. Mr Taylor’s term of office ended prematurely prior to the end of the financial year of 1925, when he resigned to take up a position in Wellington. On his departure the chairman of directors commented:

Mr Taylor was with us for eight years and pretty strenuous years they were. He steered the Society through very difficult times, his bank training standing him in good stead in many ways, but at the same time it handicapped him in others. During the first six years at least he made the business his hobby as well as his job and this helped him adapt himself to it. He always had an eye to the future and never failed to make provision to fulfil our financial obligations and difficulties seemed to stimulate his resourcefulness.

Taking steps to fill the vacancy would be a measured process and the directors promised to ‘make haste slowly in coming to a final decision’ on his replacement. In the interim Mr J. G. Nichol, the branch manager at Hawera, would assume the role of acting general manager. Although times were difficult, Farmers’ Co-op seemed to come through better than a number of other highly capitalised companies and was never in a position where they could not pay cash for purchases and ‘had never been in a position that had the moratorium been taken off without warning they could not have met their depositors’. The general manager was credited with the current state of affairs. Also to their credit it was said that during one part of the slump Farmers’ Co-op was the only one of its kind lending money. Preparation had been made for the downturn in trading and losses were inevitable with the company having to carry such large stocks. Contrary to the expectation of many, the company had also been able to pay out deposit money that fell due, the result being that practically all of it was reinstated. The chairman paid tribute to shareholders when further calls amounting to £1 per share were made during 1925 totalling £21,865. Of this amount £8,447 has been collected, increasing the paid-up capital to £155,581, including calls paid in advance amounting to £7,932. The calls in arrears totalled £7,932. He thanked all those who had loyally met their obligations, ‘in some cases at no little inconvenience to themselves. The bank overdraft over the past three years: 1923 £48,597, 1924 £77,052 and 1925 £70,617 was far too high, with the Society leaning too heavily on the banks instead of trading on their own capital’.

A decision was taken to make a determined effort to place the business on a sound financial footing and nine months elapsed before a suitable replacement as general manager was found in Mr W. A. Hewitt, fondly and universally known outside his professional life as ‘Squeaky’ Hewitt. A fiveyear plan of action was devoted to achieving the Society’s aims. At the same time a young 30-yearold, exceptionally gifted Clement (Clem) G. Trotter, until now Farmers’ Co-op’s head auctioneer and manager of the stock department, was appointed assistant general manager. Alex Hunter and his directors had clearly identified the remarkable qualities of this energetic, intellectual young man and it was clear to everyone that he was already being groomed to one day assume the mantle of the company’s top executive position. From the sequence of events and the procedures and protocols adopted at directors and general meetings it became quite apparent from the outset of Mr Hewitt’s appointment to the position of general manager and secretary that his role would be one of

mentor and caretaker general manager until the board felt Clem Trotter could take the reins. It was arranged that ‘during his stewardship he should specialise in branches of the business with which he was not completely familiar, so that he could assume the position of general manager with a sound and comprehensive knowledge of every department of the business’. The scheme was accomplished according to plan. From the very first official public outing as officers of the Farmers’ Co-op, on 30 June 1926 at the annual general meeting, both executives were introduced to a gathering of 80 shareholders by the chairman as a partnership:

Mr Hewitt appears for the first time at an annual general meeting as our general manager. He has now held the reins for several months and you will find has a pretty firm grip on the business. His experience has been a great help in reorganising the business, and I think I can safely say he has left nothing imaginary in the list of assets.

As assistant general manager, Mr Trotter is doing excellent work. The past year has been a strenuous one for him, for it has been necessary for him to appear on the rails more than his other duties really warranted.

Building infrastructure had been the focus of activity in recent years. The Society had taken a major step and purchased Hupmobile cars for stock and auction staff. The establishment of branch stores at Eltham, Inglewood, Kaponga, Manaia, New Plymouth, Opunake, Waitara, Hawera and Waverley and the wool, skin and hide stores at Gonville (Wanganui) marked the beginning of a large network of retail outlets to service the growing number of shareholders. Saleyards in operation at this point in time included Auroa, Eltham, Hawera, Inglewood, Kaponga, Manaia, Okaiawa, Opunake, Stratford and Waverley. A half interest was also arranged in the N.Z. Loan and Mercantile Agency Co. yards at Kakaramea and in Newton King’s saleyards at Stoney River and Urenui. These two purchases were made to fulfil longstanding obligations to shareholders who had purchased shares on the understanding that Farmers’ Co-op would establish itself in these districts. The Manaia operation, however, had not shown any marked improvement in returns and it was decided to close

Farmers’ Co-op Machinery and Hardware store and staff (unknown), East side of Union Street, Hawera 1923.

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the premises. The salary of one man was not warranted. Mr E. Long complained to the Society, stating that he thought that ‘notice of the closing of the Manaia store should have been given, and also an intimation to the people of the district that goods could be supplied cheaper from Hawera’.

The depression that had followed the boom years of 1919 and 1920 was beginning to show signs of abating. Almost every lending and stock and station concern in the country had lost money, the banks and government were no exception. Farmers’ Co-op had also suffered losses during the slump but, having written off the losses, the 1926 balance sheet disclosed the result of the final washing up of transactions entered into during the period of inflated prices. There was a certain amount of jubilation amongst shareholders and the board when for the first time in four years the company was able to report favourably on its accounts. There was a distinct air of confidence and during the following year analysis of the company’s books showed, after taking interest on capital into account, every branch had returned a net profit and in every case except one profit had increased on the past year. Merchandise profits had increased in every branch except two, and overheads had decreased in every branch except one. It was obvious that the new management team and staff had made a real effort to economise and get the Society running efficiently. The company was ‘sorely tempted to pay a small dividend, but eventually decided against that course, in the belief that shareholders would appreciate more consolidation of the Society’s financial position’. Wise words were hardly matched by some of the advertising at the time:

HUMAN POWER TO CHOOSE

Human beings are the only animals with the gift of conscious choice. It does not seem to help them very much, partly because we so often choose wrongly, partly because we have no power to choose the weather, the thing that affects us most. Fortunately we have complete control in another very important direction, the choice of Tobacco, and lately the wise ones have been choosing Bears’ Tobacco. Mild 8d per ounce – Keeps you happy in all weathers. (Advt.)

Thursday 28 July 1927 was a day of deep-felt sadness throughout the trading and stock and station industry in Taranaki. The newspapers reported the ‘Passing of a Pioneer’ and a ‘remarkable personality’, Mr Newton King:

After a life of striking usefulness to the Dominion, just after reaching the allotted span, and with a good record of service excelled by few men in the history of Taranaki and of New Zealand – for his work undoubtedly had a great and lasting influence on the community among whom he spent his life – Mr Newton King died yesterday with tragic suddenness. Very truly he died ‘in harness’, busy right to the end with the multifarious interests which through a long life occupied his mind and time. Death, no doubt, just as he would have had it. He was not the type of man who would have wished to linger, but, when his time came, to go out as he did, in the midst of the great work he had done and was doing in the community.

The end came quietly, but very suddenly. Mr King was busy as he always was – such a man could not be unoccupied, for there was too much depending on his brain and his work – up till late on Tuesday, having travelled to Stratford on his company’s business, and in the evening he attended a meeting of the Jockey Club. The day had been strenuous, and on Wednesday, on the advice of his doctor, he remained at home to rest. Up till midday he appeared quite well and happy, but then his condition alarmed his family and the end came within an hour, despite all that could be done for him.

Newton King was a man of diverse interests and had been a fierce competitor of Farmers’ Co-op and anyone else who dared to set up in opposition to him. He ‘had wonderful judgement’ and ‘possessed an attractive personality’. His company, Newton King Ltd, eventually established its operations throughout Taranaki and built large up-to-date business premises, including a store and

Directors and management, June 1929, The Farmers’ Co-operative Organisation Society of New Zealand Limited. Inserts from left : A. E. Symes, R. Bremer, C. D. Dickie. Standing from left: N. R. Cleland, F. Sarten, C. G. Trotter (assistant general manager). Alex Alexander, B. C. Lysaght, M. Fleming, J. S. Connett, W. A. Hewitt (general manager). Sitting from left: W. G. Belton, C. R. Honeyfield, A. Corkill, H. A. Foreman, A. Hunter (chairman), E. Marfell, J. E. Palmer, W. Jones.

Kaponga branch store, Victoria Street East, north side. COURTESY OF KAPONGA LIBRARY

TO BE SECRETS NOW

motor garage, in Hawera. Apart from various other entrepreneurial business enterprises, he was heavily involved in the provincial dairy and shipping industry. The market share, competition and dominant trading positions held by Farmers’ Co-op and Newton King Limited, played a major part in discouraging many large national stock and station companies from entering the Taranaki province. He was without doubt one of Taranaki’s most celebrated merchants and auctioneers and was credited with being ‘the first shipper of butter from New Zealand to London in [a] cool chamber’. He was married to Mary, daughter of Dr George St. George, and there was a family of three sons and two daughters.

Administrators of Farmers’ Co-op were congratulated when a dividend payment of three per cent was announced at the 1928 annual general meeting. Out of the profit of £11,392, £6,252 would be absorbed by the dividend leaving £5,140 to be placed into reserve. It was generally agreed that ‘nothing succeeds like success’ and success was attributable to good management and directors and in particular the general manager and his assistant. A response to the high praise came first from Mr C. G. Trotter, the assistant general manager who appealed for continued support of shareholders, pointing out that the profit of £12,000 had cost £1700, and stressed that by increasing the turnover the margin of cost would have been reduced. The general manager, Mr W. A. Hewitt, complimented the directorate on the policy that had resulted in the company arriving at such a sound financial position and remarked upon the shares, giving the opinion that they were ‘fully worth twenty shillings in the pound sterling’ and strongly advised that ‘they should not be parted with’. Thanking the directors and the staff for their attention to the company’s business and shareholders for their support, he said:

This is the proudest day of my life, that we have such a balance sheet which will stand any amount of investigation and that our efforts have been so well received by the annual meeting.

Building up reserves was seen as a priority and essential by the board and management and this foresight at this critical time in the Society’s history was probably the saving grace throughout the coming years. New Zealand was about to face the most difficult economic depressions ever recorded and in general was unprepared for it. Within two years exports would fall by 45 per cent, national income by 40 per cent in three years. The balance of payments was further weakened by the burden of interest on the overseas debt. At the worst point of the depression, the number of unemployed may have exceeded 70,000. Huge falls in the price of primary produce would occur in the years from 1929 until 1932 and this would have a major impact on the Society. It was, however, as well placed as any company to withstand the pressures that were about to bear down upon it.

EIGHTEEN

As Solid as a Rock

Branches, saleyards and agencies were now situated all around the mountain and promoted with new slogans:

ALL ROADS LEAD TO THE FARMERS and TRUE CO-OPERATION MUST LEAD TO MUTUAL SUCCESS

Representation of some degree was now established at Hawera, Okaiawa, Kaponga, Manaia, Opunake, Okato, New Plymouth, Urenui, Waitara, Inglewood, Tahora, Kohuratahi, Stratford, Mangamingi, Eltham, Kakaramea, Patea, Waverley, Upper Waitotara and Wanganui. In addition to auctioneering and the stock and station operation the Co-op also dealt in land sales, finance and insurance and were firmly embedded into the Taranaki retail scene as general merchants, trading in wool, butter, cheese and other produce with farm machinery and car sales outlets now operating at Hawera and Stratford with a new motor department opening in New Plymouth during the 1928/29 financial year.

In December 1927, the first issue of The Co-operator, a most informative and comprehensive monthly journal was published by the Society and printed by W. A. Parkinson & Co. Ltd, Regent Street, Hawera. It was available free to all shareholders. The 25 to 35 page publication, was registered as a newspaper and was compiled and edited by F. E. Clarke and F. W. Court. Content included editorials regarding general company matters, balance sheets, advice on farming matters, stock sales, reports and prices, details pertaining to local and overseas butter, cheese and wool markets, animal husbandry and veterinary practices, land sales and pasture management. Hints concerning business law affecting farmers and new farming practices developed in New Zealand and overseas were explored and explained. There was always a ‘Ladies’ Page’, covering the activities of local and the Dominion’s Women’s Division of the Farmers’ Union. Recipes and other anecdotes of specific interest to farmers’ wives were also included. In the early days the editors saw fit to include a humorous poem or piece of prose as an introduction to this page, but was after a while discontinued, perhaps due to some mixed reaction to the content. On 1 January 1929 one read:

To miss a kiss, Is more a miss, Than it would be, To kiss a miss, Provided that, The kiss you miss, This miss herself, Would never miss, But if you try, To kiss a miss, With whom a kiss, Would be a miss, You’d better always, Miss the kiss.

Editorials and reports were often signed off with a humorous ditty:

Hey, Rastus! Lem-me present mah wife to yuh! Naw, suh! I’se got one of mah own and she is more than I’se can manage.

Entitled ‘The Soft Answer’, this seemed quite acceptable in those days:

150 TOO OLD TO BE SECRETS NOW

Wife: You are a perfect idiot. Whatever I say to you goes in one ear and out the other.

Hubby: That may be so, my dear, you women are different, whatever I tell you, especially in confidence, goes in your ears and comes out of your mouth.

A glimpse into some editorials provides an interesting account of what farmers and management were thinking and doing and how they reflected on the fortunes of Farmers’ Co-op at the time and the forever-changing world markets. At a meeting at the Oddfellows Hall, Eltham, in March 1929 the general manager Mr W. A. Hewitt presented an interesting review of the current operation of the Society. He was introduced by Mr J. Quin, who urged the farmers present ‘to stick together and support the Farmers’ Co-op, which had been instrumental in bringing about material improvement in the conditions of business in the province’. Mr J. R. Knuckey said they:

should be proud of the Co-op, which was an example of the benefits of co-operation … They had attained a fine position after a very hard struggle. That was due to having good men at the head of the firm. He had found all members of the staff good men in their respective positions. All appeared to be looking for the benefit of co-operation for the firm and its clients and thus were building up a great co-operative institution.

Mr Hewitt’s response was recorded thus:

The Co-op had had many difficult years in the early part of its history. He had joined the organisation first 3½ years ago and had been closely associated with its progress since then. The Co-op started prior to The Great War. It was in its infancy fourteen years ago, and was cutting its wisdom teeth. The board of directors in those days had a more difficult job to do than was the case today. They deserved credit for what they accomplished on their limited capital, the money being turned over and over, and the capital was £100,000. It was decided when he joined the board that every man’s deposit should be met as it came due, and many people wondered how they were going to handle the position and ‘pay on the nail’. He was proud that they had not kept a man waiting even one day for his money.

He instanced the case of one deposit of £4,500:

The cheque was sent and he (Mr Hewitt) happened to meet the depositor next evening. ‘He was the most pleased man I have seen in my life’, added Mr Hewitt. ‘Everybody said I would never get the money’ were the depositor’s words to the general manager. But you have not presented the cheque yet’, replied Mr Hewitt. ‘He looked very sad for a moment or two until I reassured him by telling him that it would be alright at the bank’!

As to the difficulties that had to be faced, Mr Hewitt said that £100,000 was guaranteed by 15 men. In the first year after he joined the firm, the finances were arranged in such a way that they requisitioned the bank to release the guarantors. The bankers had sufficient confidence in the Co-op to agree, and today the firm still enjoyed the same limit as before. That was the best indication of the confidence the bankers had in the firm’s finance.

In a paragraph titled ‘The Dawn of Prosperity’, Mr Hewitt added:

This year the profits will be fairly good and we will be able to present a good balance sheet. The board claim that the balance sheet would stand strenuous investigation, it would not lend itself in anyway to unfavourable criticism, but would be found as solid as a rock. He was not taking the credit to himself for this state of affairs, but included his co-manager, Mr Trotter and members of the staff, all of whom had given much assistance. Without the support of the public, however, all their efforts would be useless. Personally, he was very well satisfied with one fact, and that was the return to the Co-op, of numerous shareholders who at one time had withdrawn their support, but were now adding influences to other shareholders and becoming among the best friends of the firm. He asked the shareholders to bring their complaints before him so that the work of the staff and branches might be kept running to the best advantage of the Co-op. They should look upon the institution as their own, and do everything for its advancement and the material advantage of the shareholders. Competition was very keen and the Co-op was out to give the best quality of goods at as low a price

as other firms. With shareholders’ unanimous support in the future he was certain they could give results unequalled in New Zealand.

Mr Hewitt’s remarks were liberally punctuated with acclamation, and he was given a very cordial applause at the conclusion.

The value of shelter on farms, causes of milk contamination, the application of manures, beekeeping, sheep dipping, gardening were but a few of the hundreds of topics covered in The Co-operator’s columns. Farmers were kept abreast of world markets and prices:

Figures released by the Board of Trade provides an idea of the tremendous strides made within the butter industry. Statistics show that in 1913 England imported 251,663cwt valued at £1,350,000 and fifteen years later, in 1928, 1,227,471 cwt valued at £10,000,000.

The Co-operator reported on social gatherings and meetings held by the Farmers’ Co-op throughout the province, attended by its general manager and directors as it continued to court and support the entire client base at every opportunity. At times articles drew criticism from readers and the board. However, the publication was liberally supported with advertising by the companies and agencies who supplied the Society with product. To name a few:

Syke’s Drench

Ingersoll Watches Ajax Corrugated Iron Taranaki Lime Ltd Patea Freezing Works Webb’s Pedigree Seeds ‘Sternol’ Moor Oil Dunlop Tyres Champion Cream Cans Faterine Stock Foods N.Z. Cattlecake & Oil Ltd Dominion Gum Boots Darby & Hannan Ltd Alex Harvey & Sons Ltd Imperial Chemical Ind. Ltd. Kempthorne Prosser & Co. M. J. Hooper & Co. J. Taylor & Co. Ltd Osmond & Son Cyclone Fence & Gate Co. Golden Bay Cement D. McCormick & Co. Camfosa Disinfectant Michelin Tyres Southern Union Insurance Austin Motor cars Harringtons N.Z. Ltd.

Resignations of the editors of The Co-operator, Mr Clarke and Mr Court, were, however, received at the September 1930 board meeting. The secretary was instructed to write and convey the board’s appreciation of services given, ‘and hoped that they will succeed in their new ventures’. The publication had created considerable interest in the farming community, to the extent that the New Zealand Farmers’ Union intimated it would be interested in joining with Farmers’ Coop in publishing the journal. Suggestions were submitted by delegates Messrs Polson and Blyde who were invited to meet with the Society’s executive to bring down a finalised plan for approval. Whether this union actually went ahead is unknown. The general manager requested an expression from the board regarding the cost and continuation of the monthly journal The Co-operator. He sought opinion as to the popularity of the journal and the cost of production, which was £26.18.4d, and whether it was worth this amount in advertising. The matter was fully discussed and several directors expressed the view that the journal was appreciated by a large number of farmers in the district and it was resolved that The Co-operator be continued for three months then reviewed. It soon became apparent that the production of the journal was beginning to become a burden and arrangements were made with Mr Hodge of the Stratford Evening Post for its publication. There was a responsibility to shareholders to determine that the publication was necessary and consequently two issues of what was renamed the Taranaki Co-operator were sent to survey whether clients would be willing to pay a subscription of 3/6d a year. The response was ‘very poor’. The cost of producing the journal was £400 per annum and it was decided to discontinue publication as the downturn in the economy gripped the country. The final issue was published in October 1934. Throughout the company’s history a number of staff newsletters were published with the popular ‘Focus’ being introduced in 1968 and continuing for many years.

CHAPTER NINETEEN

New Face and New Place

Sixteen years had now passed, with the nerve centre of Farmers’ Co-op still operating from the Winter Show Company’s premises in Princes Street, Hawera. Although the situation had been very desirable, as the years passed the premises fell short of the Society’s expanding requirements and a number of departments were located elsewhere in the town. Although relationships with the Winter Show Company had always been extremely cordial, correspondence from them in April 1930 in connection with a request from the Society to make certain alterations and acquire additional premises was read to the board of directors and ‘considered very unsatisfactory’. This prompted the establishment of a ‘building committee’, consisting of Messrs Hunter, Dickie, the general manager and assistant general manager, to ‘wait upon the Winter Show Committee with a final proposition’ and ‘if they do not agree thereto, Messrs Duffill & Gibson be instructed to draw up plans, specifications and estimates of cost for offices to be erected on the spare portion of the present garage site to present to the next meeting as a definite proposition’.

The time had arrived for some major decisions to be made concerning the future location of Farmers’ Co-op’s head office and other departments. The motor department in Princes Street was very satisfactory and provided a first-class facility. However, some drastic reorganisation of the Society’s other commercial outlets in Hawera with the expanding retail and stock and station department was needed. The long and trusted relationship with the Winter Show Company was not one that they would relinquish without exploring every possibility, and consequently efforts were made to adapt as best they could with the space belonging to the Society and, if necessary, secure a portion of Mrs Barton’s property or Mr Nairn’s. The general manager was instructed to arrange for plans, specifications and estimates and bring them back

Nolan’s Buildings, Corner High and Regent Streets, Hawera, 14 February 1932 on the occasion of the 50th anniversary of the Borough of Hawera. The building became Head Office of Farmers’ Co-op and later Allied Farmers Ltd from 1934–99.

to the board at the next meeting. This decision prompted the Taranaki Winter Show Company to offer an extension of the lease indefinitely, subject to the Society giving six months’ notice. They also offered the Society a 24-feet extension of the present structure in the main hall at an additional rent of 30/- per week with the proviso that should the Society make alterations, they would leave the building in the same condition as it was found. Negotiations in connection with the adjacent Barton property broke down and a resolution was made to recommend extending the present premises in the area provided by the Winter Show Company or build entirely new premises. The discussion concerning head office accommodation continued for some months, with one or two directors clearly against altering the present premises. However, finally the alterations were approved subject to ‘the flashing being fixed so that the walls would be dry’, and the work was eventually completed.

A 12-month ‘Calendar of Stock Sales 1930’, including all annual sheep and cattle fairs, horse sales and annual bull fairs, wool sales at Wanganui and other special sales, with a schedule of Farmers’ Co-op agents available to receive entries for the various stock sales and purchase of stock for private sales, was made available to all shareholders:

AUCTIONEERS:

C. G. TROTTER, ‘phone 2561 Hawera H. F. WOOFFINDIN, ‘phone 2590 Hawera P. G. BUDD, ‘phone 998 New Plymouth H. SLATER, ‘phone 2325 Hawera

STOCK AGENTS: (Private Telephone Numbers)

ASHTON, Geo. W. ‘phone 2493, Hawera POWDRELL, G. W. ‘phone 465, Hawera TURNER, W. H. ‘phone 30J, Ohura BARR-BROWN, Geo. ‘phone 90, Opunake LINN, Hy. ‘phone 491M , New Plymouth SCHMIDT, A. C. ‘phone 257, New Plymouth PARTRIDGE, F. G. ‘phone 72, Inglewood ELTHAM AGENT, ‘phone 96, Eltham SHEWRY, J. E. ‘phone 11M, Kohuratahi McWILLIAM. F. R. ‘phone 167, Waverley FARQUHARSON, W. B. ‘phone 167, Stratford HARTE, John, ‘phone 10A, Rahotu McCULLOUGH, E. W. ‘phone 767, Stratford MANAIA AGENT, ‘phone 127, Manaia

PRODUCE AGENTS: WALDEN, C. J. ‘phone 2354, Hawera JEFCOATE, C. F. R. Kaponga COURT, G. F. ‘phone 506, Stratford EVANS, V. New Plymouth FITZGERALD, J. E. Waitara

LAND AGENTS: YOUNG, W. H. H. ‘phone 562, Stratford MASON, E. L. ‘phone 1303, New Plymouth EVANS, F. A. ‘phone 2675, Hawera

Minutes reveal that the ‘watch’ was changed at the top almost without notice, when at the conclusion of a directors’ meeting at the County Chambers on 28 October 1930:

TO BE SECRETS NOW

Chairman Alex Hunter in a few well chosen words, on behalf of the board, presented to Mr Hewitt a silver tea service in recognition of the services he had rendered to the company, and also as a token of the goodwill and esteem in which he was held by the directors. Mr Hewitt suitably responded.

The board had gone into committee a number of times in recent months to discuss the appointment of a new general manager. There was no fanfare as the change of guard took place. Clem Trotter assumed the mantle of general manager and Mr W. A. Hewitt became the Society’s inspector and second in command. With the swap in roles the partnership between the two executives continued without any noticeable reorganisation. However, for the times that lay ahead it was an inspired decision that would prove to be of huge significance to the organisation, which despite the economic outlook would quicken the pace and make considerable headway in the quest to strengthen its hold within the province. As growth occurred, so did administrative and accommodation requirements.

Early in 1931 and the board had before them an offer of the ‘Nolan’s Estate Property’, a large two-storey building on the corner of High and Regent Streets, designed by Mr J. A. Duffill, and constructed in 1902. The offer included the block from Purser’s Tobacconist shop in High Street to George & Doughty’s and the motor garage in Regent Street. It also included two sections in Riddiford Street, at the rear, ‘for which a sum of £36,000’ was asked. An alternative offer to the Society included George & Doughty’s building at a rental of £500 per annum for ten years, the Estate undertaking to make the premises suitable by additions and alterations estimated at a cost of £5,000. This attractive property, close to the Society’s large motor department, was considered most desirable. Housing all departments under one roof would save a lot on administration, with the added advantage of having the produce department in the centre of town. However, the Society determined it was uneconomical to proceed with the purchase and as well to decline the purchase of the Nolan Estate Property. Instead Clem Trotter was empowered to negotiate a lease of the George & Doughty premises. This position, at 27 October 1931, remained until 24 January 1933 when the general manager reported that a wire had been received from Mr Nolan regarding the property and that a lease would be considered. Apparently Mr Morrissey, the previous lessor, had been paying £500 per annum and rates, but was receiving rents from the front shops which nearly offset the amount. It was considered that this building would provide the Society with suitable offices and warehouse space for many years to come.

Mr Duffill from Duffill and Gibson, architects in Hawera, was instructed to draw plans and provide estimates for alterations and additions in connection with two premises. One was the ‘Collins building’, adjacent to the Central Mart building and occupied by McGruer Bone & Co. as a showroom on Union Street and the other the High Street/Regent Street proposition of the ‘Nolan’s Estate Property’. Both plans were submitted and approved. The selection of one of the two sites was left in the hands of the executive. Over three years had elapsed since the idea of first moving from the Winter Show Buildings in Princes Street but Farmers’ Co-op was in it for the long haul and any major change to the location and servicing facility had to be carefully considered taking into account the rapidly changing methods of conducting business. At last, on 24 June 1933, Clem Trotter advised the board that the committee appointed to select a site had chosen to lease the Regent Street, premises of the Nolan Estate property, where it would establish office and shop accommodation.

The terms were for a 12-year lease with the right of renewal for a further nine years, rental for the first ten years £6.10s.0d. per week, at the end of which period the rent to be revised, with a minimum of £6.10s.0d. and a maximum of £8.0s.0d. for the remaining two years of the 12-year period. The Estate agreed to expend up to £3,500 on alterations and additions, which was the amount the architects estimated to cover the work on the approved plan. The Society had a right of purchase within the first five years of occupation. By October 1933 all necessary improvements to the building had been made and included a gas central-heating system installed by the Estate. It

was estimated that the Society would occupy the new premises at the end of March 1934. The six months notice of any termination with the Winter Show Company had already been advised. The precise date of occupation of the Regent Street, Hawera premises is unknown but the board meeting scheduled to be held in April 1934 was cancelled and it appears that the company moved into its new situation during that month. Board meetings previously held in the County Council Chambers, Princes Street were forthwith transferred to the Society’s boardroom in Nolan’s Buildings, Regent Street, Hawera, the first on Saturday 30 June 1934 at 9:30am. This move marked a new era for The Farmers’ Co-operative Organisation Society of New Zealand Limited and it would stand them in good stead throughout the remainder of the 20th century.

An opportunity to purchase the land and buildings occupied by the offices and produce department came up for consideration in 1939. The board now again investigated the possibility of purchasing all the properties owned by the Nolan Estate in Regent and High Streets, adjacent to the Society’s premises. The option to purchase would lapse within a month. The whole block was under offer for £36,000. Meetings were held with Mr V. Nolan and representatives of the Guardian Trust in Auckland and a substantial reduction in price was agreed to subject to the approval of the beneficiaries. It was eventually resolved, on 30 May 1939, to form a subsidiary company to purchase the Nolan Estate property with a capital investment of £11,000.

Atime of change and turbulence both at home and abroad would bring new challenges to the Society’s board of directors as the economic downturn which started in 1929 affected almost every corner of the developed world, particularly North America and Europe. In most industrialised countries and those that produced raw materials, unemployment and homelessness soared. Construction was virtually halted in many countries. Farmers and rural communities suffered as prices for crops fell by 40 to 60 per cent. The cause, which has been debated at length over the years, was said by some to be triggered by the Wall Street crash of 1929 and others claimed that the cost of World War I had weakened the ability of the world to respond to a major economic crisis. Whatever the case, it had a huge impact on New Zealand’s economy and trade. The Great Depression, as it became known, was to continue throughout the 1930s, and for thousands of New Zealanders was a time of enormous stress, hunger and despair. Many families reflected the difficulties and hardships of those times for the rest of the century.

The Society was determined to maintain and expand operations, with tenders being called for alterations to the Inglewood premises. Two tenders were received, from F. Ward, for £127.10s.0d., and from N. King, Inglewood for £159.14s.0d. Ward’s tender was accepted. Even though consideration was given relating to the advisability of ‘getting rid of the motor business and garages’, it was left to the executive committee to deal with the matter and no changes were made. Plans and specifications were also prepared for premises to house the Stratford branch grocery, produce, machinery and car sales departments (including bowsers) and £4,000 was approved to build premises ‘along Regan and Miranda Streets, so arranged that they could be efficiently supervised by as small a staff as possible’. At the same time a lucrative agency arrangement was formed with Andrew Clement & Sons Ltd, produce importers of London, for the South Taranaki District taking in the territory north of Hawera to the Eltham–Opunake Road to Opunake, excluding the Eltham Dairy Company, including South of Hawera to Waverley or Kai Iwi. The agency was originally offered personally to Mr Trotter, but he succeeded in having it transferred to the Society subject to him personally supervising the arrangement. The arrangement would allow the Society one-half of one per cent on all sales of butter and/or cheese secured in the district, guaranteeing a minimum of £1,000 for the first year, commencing 1 June 1930. Already 1,200 tons of cheese had been promised, with the prospect of a further 300 tons. Directors were encouraged to actively support the agency. Mr Trotter was praised for his loyalty to Farmers’ Co-op when he could have secured the agency for himself.

Gainful employment was still, in the main, a man’s world, and staff who kept their jobs took

Broadway, Stratford. ( Photographer unknown.)

COURTESY OF COLLECTION PUKI ARIKI. PHO2009-169

cuts in salaries or wages. Despite this, many businesses still struggled to survive or were forced to close. Farmers unable to keep up mortgage payments walked off farms, with devastating impacts on rural servicing enterprises. Many people lost their jobs and men had to work for a pittance on schemes for the unemployed. Farmers’ Co-op staff numbered 149 at this time. Reducing overheads was the only way to combat drastically lower returns and trading hardened off as the slump began to take effect. The question was raised at board level by Mr Wickham as to whether a reduction of staff salaries had been considered. The matter was then generally discussed. The general manager, Clem Trotter, considered that, in the meantime greater benefits would result to the company if the whole-hearted support of the staff could be obtained in securing reductions in the general overhead of the company than reductions in salaries and he suggested that together with the chairman he should address the staff at various centres, pointing out the general conditions of trade and seeking their assistance in the elimination of waste and greater effort on the part of every individual in the furthering of the interests of the company, and if the desired results could not be obtained in this way then reductions in salaries would have to be effected. He also pointed out that 41 of the total staff of 149 were working under award wages and it seemed rather unfair that others who were working equally hard should have to stand a reduction simply because they had not the protection of the Arbitration Court.

This view was a true reflection of the man. If staff showed commitment the Society they received his undivided attention, support and loyalty. This characterised his management style throughout his tenure of office. However, despite the fact that Mr Trotter and chairman Mr Alex Hunter addressed the entire staff throughout the province, and were well satisfied that every member was doing everything humanly possible to keep the overheads down, it was just not enough to sustain the current salary and wage package.

Trading conditions were deteriorating rapidly and a ‘cut in salaries could not be avoided’. Board members expressed the opinion that the lead should be given by the Government and the matter not be rushed through by the board. However, by February 1931 the situation had become intolerable. Turnover was shown at £525,897 compared with £744,020 for the same period the year before. All items under the heading of expenditure showed a decrease, with the exception of salaries and travelling expenses, the former increased by £599 and the latter by £215. Commissions showed a total decrease of £5,160. The decrease in expenditure compared with the previous year as follows: advertising etc. £834, legal expenses £75, light and fuel £5, motor expenses etc. £244, rent and rates etc. £163, repairs and maintenance £79, discounts £869 – the total expenditure being £52,123, compared with £53,578 last year. The outstanding feature for the month of January was the decline in produce turnover, which was down £6,279 when compared with January 1930, although the total turnover to date was still £14,000 above last year. The board requested a full report for the March 1931 board meeting, relating specifically to reducing overhead expenditure, which would include the possibility of salary and wage cuts.

When Clem Trotter was instructed to make recommendations to the board to cut wages and salaries, staff knew that every possible alternative had been considered. It was accepted that in general they were better off than many and no one knew what the future held. The percentage of decrease in wages and salaries of staff varied considerably and it is not known what formula was used to arrive at the figures presented to the board on 24 March 1931. None, however, were spared from suffering a reduction, except the general manager. It is recorded: ‘Although the Executive had recommended that his salary be not cut, he was quite prepared to stand in with the rest.’

Mr Wickham moved that the general manager’s (Mr Trotter) salary be reduced by 10 per cent, but the motion lapsed for want of a seconder. A motion was then put with regard to reducing the inspector’s (Mr W. A. Hewitt) salary by 15 per cent. This was eventually carried, with four members of the board dissenting. No doubt the board felt that they could justify the general manager retaining his full salary, but in so considering others they would be on a slippery slope!

The following schedule of staff employed by The Farmers’ Co-operative Organisation Society of New Zealand Limited, as at 24 March 1931, showing their relevant salary and wage adjustments is the only remaining comprehensive document providing a valuable insight of the staff employed at this time in history. With a few exceptions, throughout the first four or five decades of company minutes, seldom were Farmers’ Co-op staff mentioned by name.

NAME PRESENT SALARY INCREASE

DECREASE NEW SALARY

Trotter C. G. £1000. 0. 0. £1000. 0. 0.

Hewitt W. A. 800. 0. 0. £120. 0. 0. 680. 0. 0.

Rickard R. M. 700. 0. 0. 105. 0. 0. 595. 0. 0. Caselberg H. M. 650. 0. 0. 97.10.0. 552.10.0. Cressey H. E. 430. 0. 0. £27. 3. 0. 57. 3. 0. 400. 0. 0.

Ashton G. W. 425. 0. 0. 32. 3. 0. 57. 3. 0. 400. 0. 0. Snushall S. T. 400. 0. 0. 50. 0. 0. 350. 0. 0.

Budd P. G. 375. 0. 0. 10. 0. 0. 48. 2. 6. 336.17.6. Brough C. J. 350. 0. 0 43.15.0. 306. 5.0. Adlam A. J. 350. 0. 0. 43.15 0. 306. 5.0.

OLD TO BE SECRETS NOW

Christensen C. 425. 0 0. 53. 2 6. 371.17.6. Evans F. 312. 0. 0. 31. 4. 0. 280.16.0. McKinnon J. G. 315. 0. 0. 15. 0. 0. 33. 0. 0. 297. 0 0. Walden C. J. 314. 0. 0. 11. 0. 0. 32.10. 0. 292.10 0. Oakley P. J. 340. 0. 0. 25.14. .3. 45.14. 3. 320. 0 0. Brown G. Barr 325. 0. 0. 32.10 0. 292.10 0. Chong Albert 300. 0. 0. 30. 0. 0. 270. 0. 0. Powdrell G. W. 310. 0. 0. 30. 0. 0. 34. 0. 0. 306. 0. 0. Boyd J.W. 280. 0. 0. 10. 0. 0. 21.15. 0. 266. 5. 0. Franklin T. D. 295. 0. 0. 22. 2. 6. 272.17 6. Lewes Noel 265. 0. 0. 21. 7. 6. 263.12 6. Cummings C. J. 275. 0. 0. 20.12. 6. 254. 7. 6. Whytecross R. J. M. 225. 0. 0. 5. 0. 0. 230. 0. 0. Ash Thos. 234. 0. 0. 130. 0. 0. 104. 0. 0. Humphrey J. T. 225. 0. 0. 5. 0. 0. 230. 0. 0. Farquharson W. B. 260. 0. 0. 26. 0. 0. 234. 0. 0. Smith W. F. 312. 0. 0. 21. 6. 8. 33. 6. 8. 300. 0. 0. Russell N. S. 234. 0. 0. 13. 0. 0. 221. 0. 0. Dillon R. J. 52. 0. 0. 2.12. 0. 49. 8. 0. Drake T. E. 39. 0. 0. 13. 0. 0. 2.12. 0. 49. 8. 0. Mullins A. 80. 0. 0. 4. 0. 0. 76. 0. 0. Hawke R. G. 190. 0. 0. 19 . 0. 0. 171. 0. 0. Honeyfield E. R. 90. 0. 0. 4.10. 0. 85.10. 0. Stratton J. V. 135. 0. 0. 13.10 0. 121.10 0. Clemoes J. A. 200. 0. 0. 20. 0. 0. 180. 0. 0. Hammond A. H. 208. 0. 0. 52. 0. 0. 156. 0. 0. Wiltshire M. 208. 0. 0. 52. 0. 0. 156. 0. 0. Middleton D. J. 150. 0. 0. 5. 0. 0. 15.10. 0. 139.10.0. Carrell C. F. 39. 0. 0. 39. 0. 0. Robertson D. F. 78. 0. 0. 78. 0. 0. Corry M. 250. 0. 0. 30. 0. 0. 220. 0. 0. Bradbury D. C. 140. 0. 0. 20. 0. 0. 120. 0. 0. Ekdahl P.H. 75. 0. 0. 3.15. 0. 71. 5. 0. Glenn I.N. 170. 0. 0. 20. 0. 0. 150. 0. 0. Humphrey A. 170. 0. 0. 20. 0. 0. 150. 0. 0. Palmer C. 180. 0. 0. 30. 0. 0. 150. 0. 0. Cook E. 182. 0. 0. 32. 0. 0. 150. 0. 0. Dykes W. 195. 0. 0. 35. 0. 0. 160. 0. 0. Catchpole J. 110.10.0. 4.10. 0. 115. 0. 0. Reid J.N 72. 0. 0. 5. 8. 0. 66.12. 0. HAWERA BRANCH – MOTOR DEPARTMENT: Hartill R. J. 364. 0. 0. 58.10. 0. 305.10 0. Gabbie J. M. 338. 0. 0. 52.10. 0. 286. 0. 0. Bell A. S. 257. 8. 0. 257. 8. 0. Brown J. F. S. 286. 0. 0. 28.12. 0. 257. 8. 0. Dimock C. L. 260. 0. 0. 2.12. 0. 257. 8. 0. Honey A. A. 239. 4. 0. 239. 4. 0. Humphrey W. C. 252. 4. 0. 13. 0. 0. 239. 4. 0. Lewis D. A. 39. 0. 0. 39. 0. 0. Lewis L. G. 312. 0. 0. 39. 0. 0. 273. 0. 0. Nolan M. 97.10. 0. 19.10. 0. 117. 0. 0. Taylor G.M. 299. 0. 0. 26. 0. 0. 273. 0. 0. Tecofsky G. 257. 8. 0. 257. 8. 0. Wallis R.J. 239. 4. 0. 239. 4. 0.

HAWERA BRANCH – PRODUCE DEPARTMENT:

Barltropp L. E. 5.11. 11. p.w. 9. 5. 5. 2. 6. Foster Geo. 4.12. 6. 7. 6. 4. 5. 0. McCormack A. 4.12. 6. 5. 0. 4. 7. 6. Barrett W. C. 4.15. 0. 4.15 0. Parkes R. E. 4.15. 0. 4.15.0.

NEW PLYMOUTH BRANCH:

Salmon T. J. 650. 0. 0. 97.10. 0 552.10. 0. Snelling F. J. 575. 0. 0. 86. 5. 0. 488.15. 0. Wooffindin H. F. 450. 0. 0. 7. 3. 0. 57. 3. 0. 400. 0. 0. Wagstaff H. S. 350. 0. 0. 14. 0. 0. 45.10. 0. 318.10. 0. Hardy R. M. 364. 0. 0. 45.10. 0. 318.10. 0. Jacka H.E. 400. 0. 0. 50. 0. 0. 350. 0. 0. Chadwick A. 350. 0. 0. 14. 0. 0. 45.10. 0. 318.10. 0. Schmidt A. C. 315. 0. 0. 10. 0. 0. 32.10. 0. 292.10. 0. Parfitt Jos. 325. 0. 0. 32.10. 0. 292.10. 0. Partridge F. G. 325. 0. 0. 32.10. 0. 292.10. 0.

Hart John 250. 0. 0. 18.15. 0. 231. 5. 0.

Melody A. E. 285. 0. 0. 21. 7. 6. 263.12. 0. Kingston C. M. 260. 0. 0. 19.10. 0. 240.10. 0. Roberts E. K. 245. 0. 0. 5. 0. 0. 250. 0 .0. Duke C. B. 78. 0. 0. 78. 0. 0. Moyes P. S. 70. 0. 0. 3.10. 0. 66.10. 0. Bradley H. R. 208. 0. 0. 208. 0. 0. Frethey L. 208. 0. 0. 52. 0. 0. 156. 0. 0. Church I. J. 185. 0. 0. 18.10. 0. 166.10. 0. Herbert J. H. 80. 0. 0. 20. 0. 0. 5. 0. 0. 95. 0. 0. Nuttal Alf. 62. 0. 0. 3. 2. 0. 58.10. 0. Webster G. C. 39. 0. 0. 13. 0. 0. 2.12. 0. 49. 8. 0. Shrimpton L. B. 182. 0. 0. 18. 4. 0. 163.16. 0. Robson V. T. 78. 0. 0. 3.18. 0. 74. 2. 0. Barnard F. H. 50. 0. 0. 50. 0. 0. Russan E. 130. 0. 0. 5. 0. 0. 125. 0. 0. Ellison N. 130. 0. 0. 5. 0. 0. 125. 0. 0. Gayton F. E. 143. 0. 0. 16. 0. 0. 125. 0. 0.

NEW PLYMOUTH – MOTOR DEPARTMENT: Wiseman L. G. 338. 0. 0. 52. 0. 0. 286. 0. 0. Garner A. C. 239. 4. 0. 239. 4. 0. Palmer I. B. 39. 0. 0. 39. 0. 0. Ramsbottom C. J. 312. 0. 0. 39. 0. 0. 273. 0. 0. Rothery R. J. 239. 4. 0. 239. 4. 0. Rutherford L. J. 65. 0. 0. 65. 0. 0.

NEW PLYMOUTH – PRODUCE DEPARTMENT: Whittaker W. 4.15. 0. p.w. 4.15. 0. Drake D. 2. 3. 0. 2. 3. 0. Harris H. E. 5. 0. 0. 5. 0. 4.15. 0. Alleman J. 1.17. 6. 1.17. 6. Rankin C. A. B. 5. 0. 0. 5. 0. 4.15. 0. Stevenson J. N. 1.10. 0. 1.10. 0. Walker H. G. 2.10. 0. 2.10. 0. Fowler T.G. 4. 5. 0. 4. 5. 0. Rankin A. J. T. 1. 8. 6. 1. 6. 1.10. 0. Cathey C. G. 5. 0. 0. 5. 0. 0.

STRATFORD BRANCH:

Williams W. E. 400. 0. 0. 57. 3. 0. 57. 3. 0. 400. 0. 0. McCullough E. W. 300. 0. 0. 30. 0. 0. 270. 0. 0. Newland Ed. 300. 0. 0. 15. 0. 0. 31.10 0. 283.10. 0. Pickles E 300. 0. 0. 25. 0. 0. 32.10.0. 292.10. 0. Barnard J. H. 300. 0. 0. 33. 6. 8. 33. 6. 8. 300. 0. 0. Young W. H. H. 312. 0. 0. 31. 4. 0. 280.16. 0. Preo F. C. 274. 0. 0. 16. 0. 0. 21.15. 0. 268. 5. 0. Court G. F. 285. 0. 0. 21. 7. 6. 263.12. 6. Slater H. 350. 0. 0. 35. 0. 0. 315. 0. 0. Sutton H. S. 260. 0. 0. 35. 0. 0. 225. 0. 0. Hart C. R. 312. 0. 0. 31. 4. 0. 280.16 0. Twist M. C. 280. 0. 0. 8.17. 9. 28.17. 9. 260 0. 0. Jefcoate C. R. 250. 0. 0. 25. 0. 0. 225. 0. 0. Robson Jas. 210. 0. 0. 210. 0. 0. Trotter G. W. 52. 0. 0. 2.12. 0. 49. 8. 0. Hill Len 208. 0. 0. 52. 0. 0. 156. 0. 0. Hale W. T. 52. 0. 0. 2.12. 0. 49. 8. 0. Maslin F. M. 39. 0. 0. 39. 0. 0. Bayly V. L. 182. 0. 0. 32. 0. 0. 150. 0. 0. Fawkner N. 80. 0. 0. 4. 0. 0. 76. 0. 0. Grant A. 170. 0. 0. 20. 0. 0. 150. 0. 0. Hignett A. L. 160. 0. 0. 5. 0. 0. 155. 0. 0.

STRATFORD BRANCH – MOTOR DEPARTMENT: Lobb A. J. 312. 0. 0. 39. 0. 0. 273. 0. 0. Murphy E. 239. 4. 0. 239. 4. 0. Rowe G. W. 257. 8. 0. 257. 8. 0.

STRATFORD BRANCH – PRODUCE DEPARTMENT:

Bottcher H. H. 4.17. 6. p.w.

5. 0. 4.12. 6. Femmell C. E. 4.17. 6. 2. 6. 4.15. 0. Harris G. W. 3.10. 0. 3.10. 0. Bush F. S. 5.10. 0. 10. 0. 5. 0. 0. Butler E. C. 4.15. 0. 4.15. 0. Cave Jas. 4.12. 6. 2. 6. 4.10. 0. Lynch F. W. J. 4.13. 6. 4.13. 6. Paton L. P. 2.12. 6. 2.12.6.

Carried. Every effort was made by staff to reduce expenditure and help alleviate the ever-increasing pressure on the company. Numerous cases of hardship came before the board over the ensuing years and the Farmers’ Co-op management, with the support of the board, provided every possible assistance to keep the farmer on the land. The Turuturu Road property purchased from Gillies and Nalder in 1914 as part of the sale arrangement, now the site of Hawera’s soccer grounds, was for many years used by the local gentry as a polo paddock. Bing Kai and Lay Yee who leased the Polo Paddock for a number of years waited on the board to request consideration by way of a reduction in rent for the ensuing 12 months. The season had been very bad for them and the lease of 12¾ acres at a cost of £125 per annum was beyond their means. They had been good tenants and it was resolved that providing all arrears were paid by 31 December 1931 the rent would be reduced by £25. The

following year a further application for a reduction was received from Bing Kai and Lay Yee and the directors agreed to reduce the rent to £90 for one year.

Monitoring comparative financial returns became a monthly exercise for the board, and for the general manager this required a delicate and discerning touch. Faced with a new year of uncertainty, in January 1932 Clem Trotter outlined to the board decreases and increases in turnovers, commissions and expenditure for the nine months ended 31 December 1931. Although the wool department showed an increase in turnover of £7,790, the total decrease was a dismal £128,835, made up of decreases in turnover in the following departments:

Produce departments £21,476

Auction 96,738

Motor 1,771

Car sales 16,642

As well, there were losses in:

Commission in wool etc. £5,121

Stock commissions 4,030

Other commissions 1,254

Most gratifying was that expenses, which could, with a discerning executive, be managed to some degree, had decreased by a total of £6,673. The breakdown as follows:

Office decrease £114

Motor 2,211

Car sales 645

Auction 1,844

Wool and Land etc. 678

Total produce 1,181

The viability of the Society really hinged on bad debts, and while money had been coming in fairly freely until a few months before the report, accounts were only being collected with difficulty. Despite this the general manager said he hoped ‘with care in this direction, even with the changed conditions of today, the trading position might come out equal on last year’. The board of directors found themselves dealing with so many unknown possibilities and thus uncertainty of the future.

Farmers’ Co-op staff outside New Plymouth branch store, Courtney Street, 1932. COURTESY OF ALLAN RANKIN

Mr Dickie suggested that ‘expenses be further cut down and generally brought into line with existing business’. The chairman, Alex Hunter, however, reported that ‘The management was to be congratulated on the results obtained, as the reduction in expenses was remarkably good. To get a greater decrease the only way would be to shut the doors.’

He stated further that the auction expenses were down 21 per cent and any further saving would have to be made by curtailing that service and that if the Society was forced into reducing employment of the auction staff other firms would be in the same position. The motor department was also under close scrutiny and the general manager reported that minimum stock was held. Nothing but ‘Baby Austins’ were being ordered and every effort was being made to ‘clean up’ existing stocks and when this was completed the only sales that would be affected were those obtained with the minimum of expense. This would further bring down the expenses in this department. On a positive note, during 1932 the Austin agency had become a direct franchise holder and this would be of major importance to the Society. Also other initiatives were put on hold such as the development of the Union, Wellington and Grey Street property owned by the Society, which entailed the erection of six cottages to the value of £3,000. Reports and plans had been drawn up by Duffill and Gibson, free of charge providing they were entrusted with the work, but the board decided this was now an unnecessary outlay.

As the economy deteriorated, further calls for reductions in salaries were being made by some board members. Chairman Alex Hunter strongly opposed this, expressing the opinion that ‘it would be foolish to reduce salaries of the responsible officers as the welfare of the company depended on them, and in times such as these, when it was harder than ever before to show a profit, it was essential that the services of the best men should be retained’. Alex Hunter’s view yet again concurred with the general manager’s determination to support his staff to the hilt. Although the detail is missing, old press reports and other archives reveal that at times during the first 25 years, the finances of the company were at such a low ebb that personal cheques were passed over the directors’ table to keep it afloat. Determinedly the directors stuck to their faith in the potentialities of the concern, and in the face of adversity weathered the severest financial storms and ultimately passed into the calm of prosperity.

Defalcations within the Society were few and far between. However, a number did occur. The first recorded in the minutes was a misappropriation in November 1932 at the Kaponga branch of £7.10.0. Investigations were made by Messrs Hewitt and Williams and a staff member was immediately dismissed. He signed a statement of admission of misappropriating various sums amounting to £40 and promised restitution. A motion was put that ‘provided the disclosed shortage is paid forthwith no action will be taken in the meantime, and that if any other defalcations are disclosed later the matter will be reopened’. An amendment to the motion that the man be prosecuted was lost by five votes to ten. The original motion was then put and carried. A sign of the times is evident in the treatment of such misdemeanours when the general manager reported that ‘after the sale of offender’s furniture an amount of £8 remained outstanding and this had been met with a cheque’. An auditor’s check of the accounts of the branch revealed no further problems.

Although throughout the Farmers’ Co-op history there have been a number of serious incidents, two of a similar nature occurred in the early years, at New Plymouth and at Waverley. A shortage of oil at the New Plymouth garage revealed a misappropriation of cash received for oil sales by a garage attendant. The theft of approximately £5 was admitted in a signed letter by the culprit. The shortage of oils was estimated to be about 200 gallons, though it stated that ‘this might be accounted for by careless use on the part of mechanics’. At Waverley, the store was burgled by a former employee. That these were difficult times was also reflected by the appointment of staff members to represent the Society at bankruptcy meetings in which the Farmers’ Co-op was participating as a creditor.

TWENTY

Cut and Thrust

Saleyards were the stamping ground where most farmers came together, not only to buy and sell stock but also to meet one another and talk about all things related to farming and general matters of interest. After the sale many frequented the nearest public house to continue mulling over issues of the day while partaking of a few ales. It had been said that most of the ‘real business’ was conducted at the local hotel at the bar after the sales. The saleyard was also where most of the Society’s business emanated from in one way or another. The Hawera saleyards on Glover Road had been an integral part of the Society’s and predecessors’ operations since 1889, when Arthur Fantham established the yards that were eventually sold to Gillies and Nalder and then in 1914 to Farmers’ Co-op. Most Hawera stock was traded there for over 40 years. The general manager now reported to the board that he had been approached by the opposition, Newton King Ltd, who wanted to purchase a half share in the Society’s yards at Hawera, a condition being that they would not sell on the same day and that the matter be treated confidentially, as they were at present working in conjunction with the N.Z. Loan and Mercantile Agency Company. This would certainly have been a means of reducing overheads, and a committee comprising of Messrs Hunter and Dickie was formed to negotiate the sale for cash of a half interest in the Hawera saleyards with ample safeguards to protect the Society. There was good reason to consider the idea, as the Society wished to become established in the Douglas yards, currently jointly held by Newton King Ltd and N.Z. Loan and Mercantile, consequently it was decided to fully negotiate the Hawera saleyard proposal and the Douglas yards at the same time. It was felt this would have considerable benefits for the Society. On 17 April 1936, at a meeting attended by Messrs E. Shaw and H. McWilliam of Newton King Limited and R. Porter of N. Z. Loan and Mercantile, the board was advised by Mr Shaw that his board was ‘not prepared to allow the Society to enter Douglas’. However, both Newton King Limited and N. Z. Loan and Mercantile were prepared to enter into negotiations with regard to a half freehold interest in the Hawera yards. Following this exchange a number of letters between the companies suggesting substituting Stratford yards for Douglas and matters in connection with Tokirima sales that could not be resolved due to ‘trouble with field staff’, meant that the whole question of Douglas, Stratford, Tokirima the Hawera Yards, Newton King Ltd and N. Z. Loan and Mercantile would have to be reconsidered by a committee set up by the board.

The committee met with representatives from Newton King Ltd, and N. Z. Loan and Mercantile and advised them that Farmers’ Co-op was prepared to offer them a lease of the Society’s Hawera yards provided they allow the Society to enter Douglas and Tokirima. This they were not willing to do, although anxious to negotiate the matter relating to the Hawera yards. It appears that a stalemate occurred and all parties went back to their respective boards. It was decided, however, that in future, at points where only one of the three firms were operating, the other two firms should not encroach. There was plenty of cut and thrust in the field away from the face-to-face orderly meetings.

Opening up back-country districts and having a greater presence in the King Country was considered as an excellent opportunity for the Society and the possibility was now being debated to hold sales in the Tokirima district. Now that the railway was established through the district more farmers would be likely to move onto reasonably priced land and failing to establish saleyards in the district would leave the gate open for other firms. It was also considered a good money earner on other commission lines. The general manager advised that local resident Mr Old was prepared to allow the Farmers’ Co-op the use of his yards providing the complex was enlarged and repairs carried out. Two or three sales had been held when times were good but the Society would have to be prepared to lose money to hold the connection at this time. He also said that ‘if any money was advanced to clients the investment would have to be gilt-edged, because it would not be possible to visit the area very often’.

Two months passed and it was reported that 3,000 sheep had been promised for the Tokirima sale to be held on 16 February 1933. On the day, an extremely successful sale was conducted with over 4,000 sheep being offered.

It was at this time that Newton King Ltd offered to exchange the former Loan and Mercantile yards site at Kohuratahi, consisting of two acres, for the Society’s section of one acre alongside their yards. Eltham yards owned by N.Z. Loan and Mercantile Coy. were also offered for sale consisting of two acres, including offices and yards. The offer was accepted as they were more convenient than the Society’s own yards, and were situated just across the road from the Eltham branch office, adjacent to the Railway Hotel. In conjunction with the purchase the general manager was empowered to ‘make arrangements to debar N.Z. Loan and Mercantile from selling in Eltham for a period of years’. Following negotiations, an agreement was arranged with the N.Z. Loan and Mercantile that debarred them from operating sales for a period of seven years or holding sales of stock at any point nearer than Kaponga in the west, or between Stratford and Hawera which included all the country lying east of Eltham between the two points mentioned.

The possibility of reducing the number of directors was also placed on the board’s agenda and would be put to the shareholders at the next annual meeting. The Articles laid down that the directorate should consist of not more than 25 members and not fewer than 11. Currently there were ten meetings a year, with an average of ten members attending each at a cost of £22.15s.6d. Remuneration of 14 members was £156 and expenses was £71.15.0. There were widely differing views on the board about the number required, varying from nine to five. Whatever decision was made it required a resolution by the shareholders and alteration to the Articles of Association.

The dairy price index continued to fall until 1934, when dairy farmers tried to make ends meet by increasing production and in so doing forced the export prices of butter and cheese still lower. New Zealand exports to Britain had also been somewhat eroded with the passage of time. However, a British proposal to impose quota restrictions on butter imports and an unsuccessful experiment in placing such quotas on meat shocked New Zealand opinion into its first acquaintance with an idea which was later to become only too familiar – that the British market was not a bottomless pit into which anything New Zealand could produce might be profitably poured. The belief that Coates, the Minister of Finance in the Coalition Government, had aided and abetted the British Government’s plan for a butter quota, was one reason for the loss of confidence in the administration on the part of the dairy farmers, and their readiness to vote for a Labour Party which promised a guaranteed price for their products. Guaranteed prices became part of the Labour Party’s pre-election promises and was the subject of a detailed analysis in a pamphlet titled ‘Guaranteed Prices – Why and How’ compiled and written by Walter Nash MP, President of the New Zealand Labour Party in 1934. In 1935 Labour won the general election with 55 of 80 seats and Michael Joseph Savage became Prime Minister. He then introduced guaranteed minimum prices for dairy products.

As the Society moved into 1934, financial and comparative returns as at 27 February 1934 showed increases in all lines of stock sold, particularly sheep, which had more than doubled over the previous year. Stock commission was up by £1,930. However, total turnover for the past four years reflected the extreme difficulties of the time:

1929/1930 = £955,000

1930/1931 = £607,000

1931/1932 = £466,000

1932/1933 = £452,000

Encouragingly, though, the downward trend appeared to be slowing and gains in turnover were being made in most departments. There was also an air of optimism about the future within the ranks of shareholders as the extremely proficient Farmers’ Co-op management team continued to strive for improvement. In 1936 an executive member of the staff, Herbert M. Caselberg, manager of the Hawera Branch and one of Mr Trotter’s ‘right hand’ men, resigned, having been appointed supervising valuer of the Mortgage Corporation (later State Advances Corporation). For a quarter of a century Mr Caselberg had largely been responsible for forming and carrying out the Corporation’s policy on farm lending throughout the Dominion, including settlement on farms of returned servicemen from World War II. Amongst many other significant roles, he also initiated and personally administered the highly regarded Rural Field Cadet Scheme (RFC) that trained young men for government service in rural-related departments, including Agriculture, Lands, Maori Affairs and State Advances. This involved a competitive selection process and practical farm work interspersed with studies at Massey and Lincoln Universities over four years. Clem’s son, Ron (later Sir Ron), worked as an assistant to Mr Caselberg while completing a Commerce Degree in 1945/47. One of his duties was the administration of the RFC scheme. The quality of the graduates resulted in a large number being drawn into the private sector. Years later Tom Molesworth and Murray Findlater, who were Rural Field Cadets, joined Farmers’ Co-op and carried out their appointments with distinction. One of New Zealand’s most noteworthy rugby players, Sir Wilson Whineray, was also a graduate.

Throughout Mr Caselberg’s distinguished career he held many highprofile government appointments. To name a few, he was a representative on the Primary Production Council, appointed to the Commission of Enquiry into guaranteed prices set up by the Labour Government at the instigation of the Rt Hon. Walter Nash, then Minister of Finance and Marketing. In 1950 he was appointed as one of three government representatives on the Dairy Products Marketing Commission and became one of two government representatives on the Dairy Board. He held many other government posts connected with agriculture and visited most of New Zealand’s overseas markets and represented the Dairy Board at a number of international conferences. In 1963 Mr Caselberg was described as an ‘innovator’ of the times and awarded a CBE in the Queen’s Birthday Honours in recognition of outstanding services to agriculture. He was held in such high esteem by Farmers’ Co-op that upon his resignation an elaborate testimonial was presented to him, signed by over 80 of his colleagues with drawings and an inscription:

MCMXXX – MCMXXXVI

Herbert M. Caselberg CBE . Manager Hawera branch of The Farmers’ Co-operative Organisation Society of New Zealand Limited 1930–36.

OF THE

The undersigned in presenting to you this address hope you will receive it as a token of their respect and friendship toward you.

OLD TO BE SECRETS NOW

We hope that this address will keep happy memories fresh, should the wind of Wellington tend to blow them away.

In closing may we wish you and yours the very best of luck in your new venture. For that Mortgage Corporation.

A cartoon on the bottom of the address read:

In loving memory of Herbert Myer Caselberg who departed this firm February 15th 1936. After five years hard work co-operating. October 1st 1930 – February 15th 1936. ‘May he Always Blossom’

His friendship and association with Clem Trotter continued for many years. A testimonial written in 1945 for Mr Caselberg, extols the high esteem that C. G. Trotter held for his former employee and lifelong friend:

The Farmers’ Co-operative Organisation Society of N. Z. Ltd Hawera, 1st October 1945.

TO WHOM IT MAY CONCERN.

This is to certify that Mr H. M. Caselberg was in the employ of this Society from 1st October 1930, to 19th February 1936.

Commencing as head of our stock department he rapidly rose to the position of Manager of our Hawera Branch. He controlled this branch during the difficult depression period, and we cannot speak too highly of the manner in which he carried out his duties. He has a thorough knowledge of farming, and understands the farmers’ psychology. Largely due to the tact and ability displayed by him, and others, we were able to go through this period without the necessity of calling up any accounts.

Mr Caselberg is also good at detail and excellent at handling staff, and engendered a great deal of team spirit throughout the whole service.

Since leaving us of his own accord to accept a position as Supervising Valuer for the State Advances, we have watched his career with interest, and we know that he fills this position with credit to himself and with satisfaction to the Department.

Mr Caselberg has ability far above the average, is knowledgeable, keen, energetic and dependable, and we consider that any concern dealing with farmers would be fortunate in securing his services.

C. G. Trotter General Manager

Mr Caselberg’s position was filled by Mr R. R. Henderson, whom he took under his wing for some months to provide an all-round insight into the business.

During what would eventually be described as the worst economic depression in New Zealand’s history, Mr R. M. Rickard, the motor department superintendent, had provided the Society with a level of support and considerable expertise that enabled his department to operate on a sound footing under the guidance of Clem Trotter. The motor department continued to expand and although the Austin franchise was providing shareholders with a reliable product there was demand in Taranaki for a cheap five-seater car currently not catered for by the Austin company. Sixty-four per cent of motor cars sold in New Zealand at this time were American. A General Motors Limited distributing agency was now preferred, but it was felt that because of some very strong existing connections in Taranaki this may prove impossible.

Directors were concerned about upsetting the arrangements the Society had with the Austin franchise. It was eventually resolved to accept an agency with Todd Motors subject to ‘a satisfactory arrangement being made with our Austin franchise’, involving Chrysler, Plymouth cars and Fargo

trucks, with the condition that high-priced vehicles be held on consignment only. Serious losses had been made within the motor department in the past and a move in this direction should be considered with ‘great caution’. Mr Wickham objected to the acquisition of an American agency as he felt that ‘the Society should aim to improve its relationship with the Old Country, and this move was a retrograde step’. In addition, although in the early days of the Co-operative an agency with International Harvester Company (I.H.C.) had been accepted and then cancelled, the agency arrangement had been reinstated for some considerable time and it was felt the acceptance of a new agency with Todd Motors, including an arrangement for the sale of trucks, may upset what had been a very good relationship. It was decided to meet with the general manager, Mr Morgan, to explain the reasoning behind accepting the agency to fill the demand for a reasonably priced truck not filled by the I.H.C. In 1936 Mr Rickard resigned as superintendent of the motor departments and his position was filled by Mr J. W. Boyd. Other appointments involved Mr Johnstone, transferred to New Plymouth motor department from Stratford, and Mr J. D. France, manager of the Stratford motor department.

Wanganui was now being considered as a site for a Farmers’ Co-op Austin agency, with negotiations being conducted with Magnus Motors Ltd., current holders of the franchise who had reduced the asking price from £2,500 to £1,400. However, it was not considered worth more than the Society’s original offer of £1,050, ‘though it would not be policy to drive too hard a bargain and questions of boundaries still had to be finalised’. Further negotiations ensued and although Mr Scott, Austin Factory representative, ‘was still anxious that we should take over the agency’, the general manager advised that, ‘in view of the greatly increased taxation, he could not recommend this course unless the goodwill was considerably reduced’.

As the remainder of the decade played out, economic strain and hardship continued for some of the population and for New Zealand’s already strained and fragile economy. An astute Clem Trotter was well prepared, ensuring that plans for the company were not interrupted as the storm gathered intensity. Maintenance on existing branch premises and saleyards were being considered on a monthly basis. Consideration was still being given to rebuilding the Stratford Branch premises and a decision to proceed was yet to be made. Mr Wickham, director, again raised the question, at a board meeting in June 1934, stating that the Stratford premises were in very bad condition. The chairman, Alex Hunter, assured Mr Wickham that the matter was now under consideration and details regarding new premises would be considered in the not too distant future. Hawera yards were repaired and metalled.

The downturn had affected every type of business and the general manager reported that the Hawera Star (in liquidation) had been purchased by a group of South Taranaki businessmen, as it was felt to be in the best interests of the district that the paper should continue, to provide local news, events and, most importantly, an advertising medium. With the exception of the Taranaki Daily News, it was the only other major newspaper in the district. One of the interested parties, Mr G. V. Pearce, had insisted that he would not invest in the newspaper unless Mr Clem Trotter represented him on the board. With the whole of Mr Trotter’s time and energy being wrapped around the Society, he advised the board that he was unwilling to undertake the work without the approval of the directors and if approval was given they may consider taking his shares in the paper. The chairman stated that all shareholders would be anxious that Mr Trotter should join the board and that rather than it being ‘detrimental to the Society, Mr Trotter being a member of the new company would be of assistance to the paper’, and suggested that Mr Trotter have a free hand in the matter. It was resolved that Mr Trotter becomes a shareholder of the Hawera Star Coy. This relationship with the local newspaper would continue for many years.

The Society had cause for sadness and dismay when it heard the news concerning one of their long-serving staff members. Allan Rankin, an employee in the produce department for many years, recalls that, he walked into the New Plymouth branch of Farmers’ Co-op on the morning

Farmers’ Co-op branch store ‘The Mill’ , Courtney Street, New Plymouth, 1938–39.

From left: Gordon Lander, Peg Driscoll, Fred Webb, Joe Molloy, Bill Sadler, Allan Rankin.

of 8 February 1935 to receive the tragic news of the death of Mr Henry E. Cressey, the Hawera accountant of the company. Mr Cressey had been visiting the New Plymouth Branch accountant, Wilfred Watts, the day before, discussing matters pertaining to work and Mr Watts had invited him to tea in the evening. Before Mr Watts left the office, Mr Cressey said he would see him in a few minutes after completing some tasks he was undertaking. Mr Cressey did not arrive at Mr Watts house, who then returned to the office at approximately 8:50pm looking for him. There he found Mr Cressey had taken his own life. Staff throughout the province were shocked and greatly saddened by the news of the death of this relatively young man. He was 39 years of age at the time, with a wife and two young children. Mr Cressey resided at Hawera. He had suffered ill health for a number of years and had only recently returned from England where he had sought advice regarding his health. He was known by a large number of people throughout Taranaki and was highly esteemed for his personal qualities as well as respected for his professional ability. He had worked for Farmers’ Co-op for 20 years and was involved in a number of Hawera organisations. It was a sad event at the start of a year that would have its fair share of difficulties, and now, as well, problems abroad cast a shadow over the whole country.

Major floods at the New Plymouth branch in February 1935, now under the management of

COURTESY OF ALLAN RANKIN

Mr Henry Wooffindin, damaged a considerable amount of stock, particularly in the New Plymouth store where the basement contained rock salt and manure. The water flowed in from the adjacent stream and, according to staff member Allan Rankin, ‘was a few inches below my knee-high gumboots’. It dissolved the salt and manure and ruined fencing wire and corrugated iron stored in a room adjacent to the old mill engine room. At Waitara five tons of slag was damaged and at Inglewood two bridges on a farm that Farmers’ Co-op had an interest in were washed away.

Leases were renewed for a further 21 years at the Waitara property. Alterations to the Kaponga Store, made for a ‘considerable improvement’. Accommodation for selling horses was to be erected at the Hawera yards by enlarging the Selling Shed. The lease of the Horse Bazaar in the Winter Show Buildings for £150 per annum was considered prohibitive. Interviews with the liquidator of George & Doughty drapers with regard to the Hawera premises adjoining the ‘Nolan’ premises in Regent Street were taking place. The directors were requested to inspect the building to try to obtain a lease arrangement that would coincide with the arrangement they had with the Nolan Estate at the present location. George & Doughty wanted to sell the stock at valuation, with a view to finding a buyer and take it over ‘at the price the Society might have to pay’. Additional space was required urgently and the situation of this property was ideal for expanding the company’s growing needs. A satisfactory arrangement was made and final plans were immediately approved for alterations to the premises.

Work was also proceeding on levelling the section by Messrs Dewson Bros at Wanganui for the proposed woolstore. It was hoped to build over the whole section. Plans had been submitted for approval by Mr J. A. Duffill, the Hawera architect, and a tender was accepted from Mr Williamson for £6,500 in respect to the building. Other work on saleyards was also approved, with receiving pens and other small pens concreted. Concrete paths at Hawera and Waverley yards and pig pens at Opunake had also been completed, and a proposed site for a saleyard at Tokirima was considered.

Office mechanisation was in its infancy but modernisation of systems was imperative to maintain efficiency within the growing number of retail outlets. A contract was entered into with the National Cash Register Coy for the purchase of cash registers for stores at a total cost of £2,630. Saturday closing of retail outlets was also instituted ‘to fall in line with other tradespeople’.

Upgrading the Stratford branch had been a burning issue for a number of years, with Mr Wickham spearheading the move to settle the matter once and for all. The matter of rebuilding the Stratford garage was finally put to rest with an agreement to lease Mr Reid’s garage and a quarter of an acre of land, with the exception of a 12-foot right of way, for £5 a week for three years with right of renewal. Plans and specifications for sections in the main street of Stratford were considered alongside rebuilding on the present site. There was considerable difference of opinion on the board over the matter with Mr Wickham favouring the branch remaining on the old site. The debate continued in the coming months. Finally, in October 1935, some real progress had been made, with Mr Duffill presenting costs for a concrete two-storeyed building, with a garage and bowsers at the corner, at an estimated cost of £10,000. A suitable site on the main street could not be purchased for under £7,000 and it was generally agreed that the present site did not warrant large expenditure. It was suggested that a building of iron with a concrete facade be erected for between £4,000 and £5,000 with the present garage retained. Clem Trotter made it clear that he did not favour the site, but it was moved by Mr Belton and seconded by Mr Wickham that: ‘It be a recommendation that any building erected at Stratford be placed on the present site.’ The motion was carried.

Plans were now drawn with a sketch of a building suitable to the requirements on the old site at Stratford and the arrangement made for Messrs Wickham and Cleland, directors, to view the plan and inspect the premises with the general manager. They subsequently concluded that the site was not suitable for any future expansion unless a second storey was built. The purchase of Kirkwood’s property was considered and it was left in the hands of Mr Duffill to approach Mr Kirkwood. There

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was still some debate on various aspects of the cost of the building, what to build and where on the section to build it. The general manager was then empowered to negotiate with Mr Kirkwood and present any offer to the board before making any commitment. If approved and it became necessary to call a special meeting, that the meeting should be held in Stratford. The outcome of the interview with Mr Kirkwood resulted in the price being reduced from £7,500 to £6,500 and the back section reduced from £25 to £20 a foot. In deciding the area to be purchased, the garage would have to be taken into consideration. As the lease had a little over two years to run, it would have to be decided whether a building should be erected with accommodation for a garage attached in the near future or not. Agreement could not be reached and it was decided to defer any decision until a meeting of the board was held at the Society’s office, Regan Street, Stratford, on Wednesday 4 March 1936, at 10am. The meeting was convened with three apologies: J. E. Palmer, C. R. Honeyfield and W. G. Belton. The whole question of building was fully discussed and debated and finally it was moved by Mr Alex Hunter and seconded by Walter Wickham: That the plan of the proposed building covering the back section be approved, and that the management be authorised to make the best deal possible with Mr Kirkwood for the purchase of his back section, the price quoted at £20 per foot. Carried without dissent.

Clem Trotter negotiated the purchase of Mr Kirkwood’s back section at £1,290 to be effective from 2 April 1936, the Borough Council having approved a right of way. However, all was still not settled. Alternative plans were drawn up by Mr Duffill but he was unable to provide a definite costing until trial sinkings had been done for the foundations. He considered it would be in the vicinity of £10,200 inclusive of fittings and heating. The plans had been viewed by staff and met with their approval. Although everything was in place to proceed, Mr Belton expressed his dissatisfaction with the estimated cost. However, Clem Trotter’s view was that with the possibility of temporary accommodation for six months and in the face of rising prices the building should proceed at once. The building would be financed in the meantime either by a bank overdraft or a long-term mortgage with a low interest rate. ‘As it was imperative there should be no delays, it was decided that specifications, costs etc. should be submitted to the Executive Committee instead of calling a full board together.’

Mr Duffill submitted further detailed plans and specifications and an estimated cost of the building to be considered by the executive, Messrs Cleland and Wickham were provided with the power to act. The final estimated cost was £11,849 and Mr Duffill pointed out that the price only allowed for 26-gauge iron, and the cost of 24-gauge iron would add another £120. He then went on to point out the advantage of Poilite roofing. If this was used it would cost £370, as ‘this material is practically everlasting’. It did not require painting and would make the building cooler in summer.

It was decided that the extra expense was warranted. With no knowledge of the dangers of what was in fact an asbestos product, they did, as did thousands of others, install this extremely toxic material into the Stratford building. Tenders were called and Mr W. Williamson’s, from Christchurch, was accepted. It was anticipated that building would commence by mid June 1936. Tenders were also called for the shop fittings from:

W. Brown Hawera £1250

W. Williamson Christchurch £1189

Fry & Treloar Wanganui £1165

Boon Limited New Plymouth £905

Acting Prime Minister Hon. Peter Fraser, who was visiting the province on a number of other engagements, consented to open the Stratford premises at 2pm on 8 June 1937. Elaborate arrangements were made with full-page advertisements appearing in the Taranaki Daily News:

SPECTACULAR SPACIOUSNESS

17,700 square feet of floor space is the astonishing area, enclosed by delicately coloured walls, of the new Co-op, building in Regan Street. 17,700 square feet can be interpreted in many ways. To some it will amount thereby to half and acre or so, to others it will suggest the ideal of spacious well lighted quarters, but to the average shopper it will spell freedom of movement and an extraordinary display of goods.

The emporium contains 3,750 square feet, a vast store indeed. From it, double doors with shining chromium fittings open into the administrative office and public counter where sound is deadened by thick cork floor covering. At the rear, other doors and a ramp lead to the huge general bulk store of 7,000 square feet, probably the largest single roofed area in Stratford. Here, lorries unload at a long floor-level landing reached by a specially built private roadway from Miranda Street. Public convenience has been studied in the provision of a dainty rest room for ladies and the warming of the entire building by an efficient central heating system.

SHOPS INSIDE A SHOP

In fulfilment of its ideal to cater for all demands of all shoppers, the emporium of the new Co-op building contains many elaborate new departments where attractive goods are exhibited.

Because of its already established connection, the Provision and Grocery Department naturally commands pride of place in the well lighted comfortably heated store but it does not overshadow the other

Stratford branch office of Farmers’ Co-op 1936. From left: Bob Whytecross (manager), Mr Femmell (grocer), Ivan Hill, (Unknown), Mr Powell, Owen Jones, Miss Pettigrew, Miss F. Young, Harry Bottcher, Mr Nees, Mr Lester, W. (Biff) Neal, John Hedditch.

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departments, nor is undue emphasis placed upon it. Thus, a shopper can move freely about fascinating show cases, display bins, and gay counters, passing from Provisions to Clothing, from Footwear to Hardware, from Fancy Goods to Chinaware. In doing so they encompass sub-departments of Crystalware, Crockery, Silverware, Toilet Requisites, Tobacco, Confectionary and others too numerous to mention.

Where crystal is displayed, it is displayed on mirrors. Where colours appeal they are made to harmonise. Where silverware gleams, it gleams upon chromium and glass. Every fixture is attractive, and every case has perfect proportions. To facilitate purchases, prices are clearly marked throughout the Emporium, and numerous assistants have been engaged to avoid the irksome delays which so often make shopping a trial.

Farmers’ Co-op was now ‘known in every Taranaki household’ and conducted business in almost every district of the province. These new premises were a demonstration of its commitment to the 15,000 people who lived in central Taranaki. The store had exceptional facilities and was the beginning of departmental shopping. Apart from general merchandise it also had machinery display rooms, a produce, shipping and trucking department, and an administrative office. Whether the need was a small household order or tons of manure it could be supplied:

Whether the parcel is carried beneath the arm or requires a railway wagon, its despatch is equally convenient. In short, the Co-op has built wise, to provide for the quick and easy sale of anything a home may desire, a dining table support or a farm demand.

Head Office staff of Farmers’ Co-op, Regent Street, Hawera, 5 November 1938. Back row from left: A. Clemow, Max Boderick, Frank Bourke, Don Robertson, Wiggy Webster, Jack Alleman, Copper Lay, Dave Cruickshank, George Ranford, Ian Grant, Dick Shepard, Alf Lenz, Jim Humphrey, Jim Honeyfield, McKinnon, E. Langdon, Ann Scobie, Schweiters, (Butchart), Unknown, Vie Jones, Evan Waldsorf, Ann Thomberson, Joan Brough, Ella Mathieson, Mira Glass, Daisy Tulloch, Jean Robb, Miss Corry, Audrey McClaren, Quinn, Brian Thomas, Spence Smith, Doug Winks, Norm Blake, Jack Anderson, Reading, Dawson Cox. Front row from left: Harold Slater, Jim Boyd, Ray Henderson, Clem Trotter, Fred Preo, Phill Oakley, Nelson Meuli, Hugh William. Absent: Bill Ellingham.

COURTESY OF SOUTH TARANAKI DISTRICT MUSEUM.

Invitations were extended to all shareholders through the press to attend the opening and partake of afternoon tea which was served in the building. With a splendid opening day, so ended what was by far one of the most protracted building projects undertaken by Farmers’ Co-op thus far.

Mr W. A. Hewitt’s retirement was to be effective from the 31 July 1936. This likeable gentleman had in a relatively short time made a significant impact on the Society, having worked closely with Clem Trotter in the early years between 1926 and 1930, and more recently as company inspector and second in command to Clem Trotter. In recognition of his service a trip to England was suggested to Mr Hewitt. However, as it was doubtful that he would take advantage of this offer, a resolution was eventually granted to provide him with six months leave on full pay. Having seen the company through some of its ‘darkest days’ in an executive position he had proved to be a worthy and valuable employee. Mr Hewitt’s association with the company continued when at the 1938 annual general meeting he was appointed to the board of directors and his experience and wisdom in matters pertaining to the stock and station industry and Farmers’ Co-op was an inspired acquisition to the board and the Society. He continued as a member of the board until 1943 when he retired for health reasons. In farewelling Mr Hewitt at the 1943 annual general meeting a motion was moved by Mr Percy Thomson and seconded by Mr H. Knowles:

Shareholders desired to place on record the valuable services rendered to the Society by Mr W. A. Hewitt both as general manager and a member of the board and to express their regret that for health reasons he is not on this occasion seeking re-election. They trust his health will soon be restored and that he will be spared many years to enjoy his retirement. Carried unanimously.

One of Inglewood’s founding fathers and former director of Farmers Co-op, David Todd, passed away on 1 February 1937. Mr Todd had suffered ill health for a number of years. He had taken an active role in many of other local industries involved with the farming sector, including the development of the Inglewood Co-operative Bacon Company, director of the Moa Dairy Company, and a member of the Road Board.

The annual general meeting of 1937 brought some exceptional news. After making full provision for debts and depreciation and after the payment of a two per cent rebate to shareholders and 10 per cent on stock commissions, the trading operations of The Farmers’ Co-operative Organisation Society Limited for the year ended 31 March showed a profit of £34,891.17s.4d. Of this amount £13,938.5s.0d. was absorbed by government taxation, and the balance, £10,495.3s.0d, was paid to shareholders as a dividend at the rate of 5 per cent. £5,000 was added to the general reserve account, £1,000 transferred to the property account and the balance carried forward. It was in fact the best return in the Society’s 23-year history and a tribute to the management and staff. The chairman praised the loyalty, support and respect the staff, shareholders and, ‘a wide circle of those who count in business circles throughout the Dominion’, particularly for general manager Clem Trotter. Growth and profits continued as Farmers’ Co-op moved into its silver jubilee year, with a further £10,588 paid in dividends. Chairman Alex Hunter stated: ‘During the past five years, the first two of which we were climbing out of the slump, the distribution of dividends totalled £45,224.’

Clem Trotter, had successfully steered Farmers’ Co-op through the most traumatic decade in the Society’s history and as the 1930s came to a close the Society was blossoming into Taranaki’s most successful trading institution. Maintenance was up to date and a programme of renewal and expansion meant growth was assured. The purchase of land belonging to Mrs Brown at Douglas was authorised for the establishment of saleyards and land at Kohuratahi belonging to Newton King was acquired. Negotiations with the Waverley Town Board were in progress to obtain lease land for saleyards. An innovation and ground breaking agreement with Newton King Ltd and N. Z. Loan & Mercantile Agency Co., was signed regarding selling in the Hawera saleyards. As far as

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it can be ascertained the yards had been used exclusively by Farmers’ Co-op and its predecessors. Recently the yards had been subject to an inspection by the Department of Health, as householders had petitioned the department regarding effluent seeping onto the road. Following a meeting with Health officials no further steps would have to be taken providing concrete repairs were made to the yard at a cost of £50. A lease on the Horse Bazaar, at the Winter Show Building on Albion Street, was also taken up by the Society for five years.

Forty-three years in the Motor Division of the Farmers’ Co-op was not what a young Ken Catchpole envisaged when he took up employment as an apprentice for five years on 10 January 1937. He described his introduction to the Company:

The FCOS building went from Regent Street to Princes Street. On the south side was the workshop with a pit down the middle for approximately 150ft., a workshop office and a machine section for the lathe work and reboring. The spare parts department was on the south side. From the Princes Street entrance was the car maintenance area, including grease and oil change, polishing cars and attending to customers. At the right side of the entrance, on the footpath, were three petrol pumps, Big Tree, Shell and Atlantic. Big Tree petrol was delivered by a tanker equipped with solid rubber tyres. Shell was delivered in drums and our staff had to fill the underground tanks by hand. Inside, on the right, was the garage office, operated by two people, and adjoining that was the office of the garage manager and next, the office of the Motor Division manager. A waiting room for customers whose cars were being serviced was next and then the ladies restroom, beside which was an area for polishing cars completing the right side. On the left side of the entrance was an area used by staff serving the pumps and next to that was a hydraulic hoist for greasing and oil changes. At that time we would be open until 10pm on Saturday nights. The garage manager then was Mr Charlie Brough.

The Motor Division manager was Mr Jim Boyd who supervised the Society’s three garages, situated at Hawera, Stratford and New Plymouth and was also responsible for purchasing and delivery of new vehicles to each branch and liaised with Austin Motor Company in England through Seabrook Fowlds in Auckland.

Expressions of sympathy were referred to by chairman Alex Hunter with the passing away of three stalwarts of the Society: Alex Alexander in 1938, W. R. Cleland in 1939, and George Barr Brown, agent at Opunake, the longest-serving staff member on the payroll at the time of his death. Harold Sagar, an employee at Hawera, also passed away after a long and distinguished service with the Society.

Success continued, with a gross profit over £40,000 recorded for the year ending 31 March 1939 with £34,000 available for distribution. These quite remarkable figures continued in what were buoyant times but also times for caution and calls for strengthening reserves. Mr Fred W. Horner, the Society’s solicitor, spoke at the annual general meeting, saying: The society was co-operative and its business was controlled by a group of farming people who provided the means for buying and selling the products of the land and purchasing of merchandise for the needs of the people. The success of the organisation lay in the fact that it had no monopoly. Competition ensured efficiency, never obtained to the same degree in monopolistic institutions. If any organisation was to prosper, it could prosper only on the basis of a fair deal for all concerned.

The value of owning a dedicated finance facility was realised by Farmers’ Co-op when the West Coast Mortgage and Deposit Co. Ltd, a property-owning and lending company, was acquired in 1939. Until then this proprietary company had two Farmers’ Co-op directors appointed to the directorate.

In February 1946 the company purchased the Manaia Building and Investment Society which was valued at £3,985, with a discount of £350. It continued to operate throughout the century, although the main aims and objectives were superseded by the many changes made to the company’s trading and financial arrangements. It still remains a registered subsidiary company and is used in a variety of capacities from time to time. When the first balance sheet was placed before the board in July 1939 the following comments were made:

Balance sheet and statement of accounts together with the auditor’s report were submitted. After providing for certain losses in connection with bad debts, the nett loss for the year was £748.19.3d. In dealing with the balance sheet the Secretary pointed out that during the past year the depositors had been repaid. The assets of the Company, which were represented by mortgages were being reduced to their true value and as far as the Society was concerned their proportion of the assets was in excess of the amount invested in the Company. The secretary also referred to the fact that prior to the recent purchase of the bulk of the shares in the company by the Society, the Society had previously held approximately one third of the capital, which meant that they had had a third interest in the assets of the company.

CHAPTER TWENTY-ONE

For God! For King! and For Country!

Ominous reports on the political situation in Europe were now reaching New Zealand and the reality of it was brought home to the board when an item from the Royal Exchange Insurance Company relating to War Risk insurance appeared on the agenda stating that ‘due to the political situation the Underwriters had given forty-eight hours notice of the cancellation of war risk covers and the premiums on such risks would be subject to day to day quotations’. The Society estimated that it had approximately £6,000 worth of goods on the water in the process of importation which, due to the cancellation of insurance were now not covered against war risk. The Society also had to reconsider the position of deposits of English currency in Britain, which stood at £10,000 sterling. Recent ‘rationing of imports’ and import restrictions would have an effect on the company’s turnover and gross profit and the overseas funds would not be of great assistance. Consideration had to be given to the prudent investment of funds in the foreseeable future. Congratulations were accorded the Society on the 25th annual report and statement of accounts delivered at its Silver Jubilee annual general meeting in the Foresters’ Hall, Nelson Street, Hawera at 10:30am on 1 July 1939:

Authorised Capital ………………£250,000

LONDON OFFICE: FENCHURCH STREET.

BRANCH STORES

Eltham Opunake Hawera Stratford Inglewood Waitara Kaponga Waverley New Plymouth

MOTOR DEPARTMENTS: WOOL, SKIN & HIDE STORE: Hawera, Stratford and Gonville (Wanganui) New Plymouth.

SALEYARDS

Auroa Kaponga Stony River Eltham Kohuratahi Stratford Hawera Manaia Urenui Inglewood Okaiawa Waverley Kakaramea Opunake

BOARD OF DIRECTORS:

Chairman: Alexander Hunter, Esq., Hawera M. P. Bremer, Waverley C. R. Honeyfield, Patea P. G. Bremer, Waverley W. A. Hewitt, Stratford Patrick Brophy, Pungarehu Wm. Jones, Waitara A. Coxhead, New Plymouth J. E. Palmer, Waverley A. E. Death, Hawera Fred Sarten, Tikorangi C. D. Dickie, Hawera Walter Wickham, Stratford H. A. Foreman, Tikorangi W. O. Williams, Hawera

MANAGEMENT

General Manager and Secretary: C. G. Trotter.

Branch Managers: Hawera: R. R. Henderson. Stratford: W. E. Williams. New Plymouth: H. F. Wooffindin.

Auditor: George Laurence F.P.A.N.Z. Solicitors: Messrs Horner and Burns, Hawera. Bankers: Bank of Australia.

The report:

After making full and adequate allowance for all contingencies, providing depreciation on plant and properties to the extent of £6,799.12s.3d. and after paying a rebate to Shareholders customers of 2% on their purchases of merchandise, etc., and 10% on stock commissions, the profit amounts to £41,982.1s.0d. Out of this has to found the sum of £18,974.19s.5d. for Land and Income Tax and Social Security Tax, of which £16,739.2s.9d. is for Land and Income Tax, and £2,235.16s.8d. for the new impost of Security Tax, leaving a nett balance of £23,007.1s.7d. (all taxation being provided for) to be carried forward to the Appropriation Account. This amount together with the balance of £11,188.2s.6d. brought forward from last year, provides an amount of £34,195.4s.1d. which is available to be dealt with.

Your directors recommend that:

(1) Payment be made to Shareholders of a dividend at the rate of 5%. (Social Security Tax paid), absorbing ………………………...£10,601.18s.0d.

(2) There be added to the General Reserve an amount absorbing ……………………………………… …………………£10,568.12s.1d.

(Increasing this Reserve to £42,000)

(3) The balance to be carried forward……………………..£13,024.14s.0d.

BONUS TO STAFF: In recognition of the co-operation and loyalty of the Staff your directors granted during the year a bonus to all employees. It is felt that their action in granting this bonus will have the approval of the Shareholders.

SILVER JUBILEE YEAR: Your Directors are extremely gratified with the result of the twenty-fifth year of trading, and they feel that the occasion should be marked by recommending to you the placing of a record amount to the General Reserve. These funds are used in the natural expansion of our business, and if the recommendation of your Directors is adopted, the Reserve Fund and Undivided Profits, after payment of a Dividend is made, will amount to £56,525, which represents 27% of the paid-up Capital.

In closing his report chairman of directors Alex Hunter said: Looking back over the last twenty-five years there have been ups and downs, and one of the lessons we have learned is that it is essential to the Society to be strongly fortified financially in order to render the best service to its members, more particularly in times of financial stringency.

SECRETS

A comparison of dividends to shareholders:

Year Rate Amount

1935 4 % £8,404

1936 4½ % £9,438

1937 5 % £10,498

1938 5 % £10,581

New Zealand’s centennial celebrations in 1940 did not go by without Farmers’ Co-op taking the opportunity to remind Taranaki’s residents of the Society’s rightful place and of achievements attained among trading enterprises throughout the province, placing a full-page advertisement with a brief editorial on its early history, successes and initiatives and how ‘co-operative service achieves results’. Portraits of the chairman, deputy chairman, general manager and managers of the time were also proudly displayed :

Mr A. Hunter, Chairman of Directors. Mr C. D. Dickie, Vice Chairman.

Mr C. G. Trotter, General Manager.

Mr P. J. Oakley, Manager, Produce and Machinery Departments, Headquarters Hawera (controlling these departments throughout the district).

Mr H. F. Wooffindin, Manager, New Plymouth branch (controlling New Plymouth, Waitara and Inglewood districts).

Mr W. E. Williams, Manager, Stratford branch (controlling Stratford, Eltham and Kaponga districts).

Mr R. R. Henderson, Manager, Hawera branch (controlling Hawera, Opunake and Waverley districts).

Mr F. J. Snelling, Manager, Grocery and Hardware Departments, Headquarters, New Plymouth (controlling these departments throughout the district).

Mr H. S. Williams, Manager, Stock Departments, Headquarters, Hawera (controlling these departments throughout the district).

Mr J. W. Boyd, Superintendent Motor Department, Headquarters, Hawera (controlling Motor Garages throughout the district).

Mr A. L. Bremer, Farm Management Superintendent.

Mr C. Christensen, Manager, Wool department, Headquarters, Wanganui (controlling Wool Department throughout the district).

Mr C. M. Garner District Representative, Mutual Life and Citizens Assurance Co., Agency.

Mr D. D. Bailey, Head Auctioneer, Headquarters, New Plymouth.

Mr H. Slater, Head Auctioneer, Headquarters, Hawera.

Mr N. G. Meuli, Manager, Shipping Department, Headquarters, Hawera.

Mr E. L. Braithwaite, District Manager, Southern Union General Insurance Co. Ltd.

War intervened and affected everyone. With many new commercial enterprises attempting to become established in this far flung part of the British Empire, Farmers’ Co-op had its fair share of difficulties. During 1939–45 members of the British Empire joined together in war for the final time. More than 8.7 million men and women from the Colonies and Dominions rallied round the Union flag. More than 450,000 were killed. Winston Churchill had proclaimed in 1940 that ‘Without victory there is no survival. Let that be realised. No survival for the British Empire’. At the beginning of the war, many thought the British Empire was finished, but the Dominions throughout the world had other ideas. Australian Prime Minister Robert Menzies announced: ‘We are in this most holy war with you; everything that we have of manpower or treasure or skill or determination is pledged to work and fight for you and with you until victory is attained. One King, One Flag, One Cause.’

The New Zealand Prime Minister, Michael Savage, asked the Governor General for a formal declaration of war before proclaiming of Britain, “Where she goes, we go. Where she stands, we stand”. And that’s what happened and the lives of many families were changed forever as the country prepared for the worst crisis the modern world had known.

New Zealand joined Australia, France, India and the United Kingdom in declaring war on Germany at 2130 hours, on 3 September 1939 (New Zealand time).

Farmers’ Co-op felt the full brunt of the war immediately: The last shipment of cars coming from England to New Zealand was bombed and sunk. This was a disaster for everyone. No more parts could come from England and consequently we had to make certain parts ourselves, as the Austin Company was immediately making vehicles and parts for the Army.

In view of the international situation the general manager asked that the board consider the policy of the Society for the near future. A circular was forwarded to all stores, providing a list of goods that might be in short supply, instructing managers that any suggestion to clientele that there were shortages should be avoided: ‘clients should be prevented from making abnormal purchases for the purpose of hoarding, and sales of commodities which were likely to become short were to be confined to the Society’s present clients.’

Questions were also raised about the eligibility of staff for active service. Classes had been established by the Government relating to men and women of certain age groups and occupations who would eventually be conscripted into the armed services. Clem Trotter advised the board that of the 189 men presently employed on the staff, 91 would be eligible for service in Class 1. The Society had a total staff of 205 males and females, with an average age of 28 years. If many of the staff were called up it would be impossible to provide the same delivery service to clients and produce travellers would have to be taken off the road. Other matters were discussed in connection with the Society insuring the lives of clients volunteering for active service in order to cover their liability to the company. The farm supervision department was already receiving inquiries regarding the Society taking over management of farms if there was a general ‘call up’ of men, with this situation creating a need to increase the staff in the supervision department to cope with the work. Continuing superannuation policies of staff members called upon to serve in the armed forces was also on the agenda and it was agreed that ‘every effort should be made to carry on such policies’. Two days after Germany invaded Poland, on 1 September 1939, Britain and France declared war on Germany. The board met to discuss the immediate future of the Society and the Emergency and Executive committees where given full power to do all that was necessary in relation to the rationing of goods and applications for advances to be left to the discretion of the Finance committee. It was also suggested that, ‘the general manager communicate with the Society’s clientele, pointing out their duty to the Society and to others who are doing their duty to the country.’

Throughout this extraordinary and difficult time the future of the Society’s building policy was considered, with a variety of projects, including alterations and upgrading to the New Plymouth and Inglewood premises and plans being prepared to build new premises at Waverley. These were approved and following completion, Sir Harry Batterbee, High Commissioner for the United Kingdom, was asked to open the building. The Patriotic Associations of Waverley, in conjunction with the Waverley staff, was allowed free use of the building, ‘lighting etc’, the following evening for a ball in aid of Red Cross funds.

B

y February 1940 staff were already enlisting for active service. Seventeen men were either in camp or had left New Zealand and five others had notified their intention to enlist for service abroad. The position was becoming acute and staff were asked to give as much notice as possible before enlisting. Remuneration was also considered for married men in camp and the executive was empowered to make grants to married men called up for service, with each case being considered on its merits. Eventually 151 staff members joined the services and later a further 18 joined up.

Increase production was the cry to Taranaki farmers as the impact of this second world war was felt throughout the province. While farmers were being asked to increase production to the

maximum, efforts were being hampered by industries still adhering to the principle of a 40-hour week. Calls to the Government to repeal the 40-hour week were supported by the Society. At the 22 June 1940 annual general meeting, the general manager led the charge with a strong emotional speech:

This is not time for complacency and it would be wholly unbecoming to dwell upon our little successes when the British Commonwealth at the moment is preparing itself to withstand the most terrible ordeal in its long and honourable history, the results of which will decide the future of both this country and this institution. This is not time for recriminations and useless quarrelling over what has happened in the past. We have to move quickly and all our energies and all our efforts must be fixed on the immediate present. Thoughts of self-interest and profit can have no place, for after all what does our national economy or individual wealth matter if Britain goes down? What would be the value of your farms today if it were not for the British Navy, and what will be the value of your farms or anything else you possess if we do not emerge successfully from this struggle. The greatest of all co-operative movements, the British Commonwealth of Nations, would emerge triumphant. If this is to be more than wishful thinking, however, then every one of us has to be in, boots and all, for in the final analysis the British Empire means you and it means me. We have certainly got to have faith, but faith without works is dead. If there is one lesson we can learn from history it is that the strong and virile nations have been the nations of workers, and decay has always set in when ease and luxury have been the lot of people.

Passionately expressing his personal views on commitment to the country and company he paid tribute to the ‘sturdy virile pioneers’ of 100 years ago who settled these shores, enduring unimaginable hardship to ensure that all who came after them would enjoy the fruits of their labour. He continued: ‘Surely it was not too much to ask that every man, woman and child bend their backs in order that they might continue to enjoy this wonderful heritage which could be only accomplished by their great co-operative effort.’

Clem Trotter was inspired no doubt by Winston Churchill’s, now-famous ‘we will fight them on the beaches’ war speech, delivered a few weeks earlier, on 4 June 1940, in the House of Commons, London, when he sought support from Britain’s friends and other Commonwealth members at the ends of the earth,

… and even if, which I do not for a moment believe, this Island or a large part of it were subjugated and starving, then our Empire beyond the seas, armed and guarded by the British Fleet, would carry on the struggle, until, in God’s good time, the New World, with all its power and might, steps forth to the rescue and the liberation of the old.

Mr Trotter spoke proudly of those who had enlisted for service abroad: Your directors have pride in stating that so far thirty-four members of our staff have volunteered and been accepted for active service. Of this number twenty-seven have actually left the service of the Society and the remainder are waiting to be called up. In addition it is anticipated that several members, including executive officers, will have to spend several months in camp as a result of the Territorial Mobilization Orders.

Among the flurry of war rhetoric a presentation was made to Alex Hunter to mark the completion of his twenty-fifth year as chairman of directors. He received a ‘tea and coffee service’ from the shareholders, directors and staff. This was indeed a significant milestone and his huge contribution was applauded by all who had the good fortune to know and work with him.

For God! for King! and for Country! The marching song of the Maori Battalion encapsulated the stoic feeling of the nation and the extraordinary times the world, country and indeed the Society would eventually face. Yet the will and determination to succeed and prosper in these dark and foreboding times was never more evident than amongst those who were left behind on the land and

working in the rural servicing industry. There was an enormous and tangible sense of duty to the mother nation Britain and its allies.

During the year the Society’s position in relation to the employment of staff became increasingly difficult as there were now 35 overseas or in camp ready to go. The Territorial Training scheme was also having a drastic effect, with heads of departments involved for up to five months. Four staff had been released for at least five months, and ten for three months to attend training camps. Several were executive officers and others members of the stock department. Clem Trotter issued a warning to the directors: ‘Under the circumstances delays and mistakes would be inevitable and he asked that these be viewed leniently, and that the directors give their assistance in dealing with complaints that might come under their notice.’

Remuneration for men in camp again became a matter of urgent discussion. There was no precedent on which to draw and consequently it was decided to make grants for married men called up for military service and that each case be taken on its merit. Half-yearly figures for the year ending 31 March 1941 ‘were very satisfactory’ and the board resolved to provide a five per cent bonus to all staff, including those serving with the military forces.

Invasion of New Zealand by foreign forces was becoming a distinct possibility. Government requisition of plant and equipment became a reality with the approval of a request that the Society’s two New Plymouth branch vans be held available for use as ambulances under the Emergency Precaution Scheme. Also a request was received from the New Plymouth City Council to construct two emergency shelters adjacent to the branch property, which was approved providing they undertook not to interfere in any way with the access to the Society’s parking area. The major effect the war was having only became evident to shareholders at the annual general meeting of the Society on Saturday 28 June 1941, when the ‘Staff Roll of Honour’ was presented:

STAFF ROLL OF HONOUR MISSING FROM OPERATIONS WITH R.A.F. ENGLAND Langdon, C. E. Hawera

MISSING FROM OPERATIONS IN GREECE Bromley, G. A. Hawera

OVERSEAS SERVICE: Adams, W. O. New Plymouth Kemp R. A. Stratford Black, F. P. Hawera Lay, L. G. Hawera Bromley, T. Kaponga Larmer, L. Inglewood Budd, B. H. Waitara Lewis, D. A. Hawera Bourke, M. B. Stratford Lester, D. K. Stratford Bourke, G. J. F. Hawera Longstaff, A. S. Eltham Chadwick, C. R. Hawera McLean, C. J. E. Hawera Corney, W. A. Inglewood O’Donoghue, M. Waverley Cruikshank, D. B. Head Office Sadler, S. I. New Plymouth Drake, T. E. Hawera Salter, A. L. Hawera Ellingham, W. H. Hawera Sargent, F. L. Inglewood Fastier, W. S. New Plymouth Shepard, W. L. Eltham Fowler, T. G. Waitara Taylor, H. J. Eltham Grant, I. C. New Plymouth Thomas, B. W. Hawera Harlow, W. F. New Plymouth Velvin, N. D. Hawera Hayman, P. A. Hawera Webster, J. D. Hawera Hill, I. M. Stratford Whittaker, E. B. Inglewood Jackson, R. C. New Plymouth Wickstead, B. B. Inglewood Johnson, C. Waverley Wylds, C. S. Hawera

Franklin, N. C. Waitara Harris, C. W. New Plymouth Flynn, J. M. Hawera McIntyre, G. Waverley

SERVICE IN NEW ZEALAND: Brown, J. F. S. Hawera Rutherford, F. A. Stratford Catchpole, K. Hawera Robertson, D. F. Hawera Clark, J. J. Stratford Smeaton, D. Inglewood Hall, M. M. Hawera Stevenson, R. M. Hawera O’Leary, H.C. P. Waverley Tombleson, F. Hawera Petrie, W. W. Hawera Winks, D. A. Hawera Russell, A. H. H. Stratford Symes, T. A. Stratford

Home Defence duty had claimed the life of D. F. Robertson while at Fort Dorset, Wellington, in a tragic accident recalled by Bill Ellingham. While training at Fort Dorset, Don Robertson failed to respond appropriately to the challenge ‘who goes there?’ and was accidentally shot. Others, including C. E. Langdon, G. A. Bromley and W. L. Shepard were the first of a number of Farmers’ Co-op staff members who would sacrifice their lives for King and country. On 25 November 1941 the board stood in silence when Mr C. D. Dickie, deputy chairman, referred to the death ‘while fighting for the Empire’ of Sergeant Pilot Ian Hunter, son of chairman Alex Hunter.

The continued call-up of men for active military service began to have an acute effect on the Society and the only remedies available to the board were to take on new staff at any cost or attempt to continue with reduced numbers ‘at the risk of impaired efficiency’. It was clearly enunciated that ‘when considering the matter, the position of the men at present overseas could not be overlooked’. It was eventually decided to deal with the situation as it developed, but ‘where a suitable man was available he should be taken on, particularly if he was a returned man’. As the war escalated, married men with children were balloted and this made for further heavy staff loss. Men previously classed C3 were being called up and Mr Norm Blake, the company accountant, was one of them. It had been possible to retain the services of Mr Preo, the Hawera accountant, but he was about to leave the Society. Mr McWilliam, head of the Land and Stock department, had also intimated that owing to staffing shortages on his farm he was forced to go back on the farm himself. The staffing situation was now acute and difficult to manage. W. G. Bill Marshall (Snr) was employed on 26 May 1942 ‘for the duration of the war only’. He was considered an excellent stockman. At the same time Mr W. P. Jenkins was appointed stock agent at Eltham for the duration of the war, to replace Mr R. Thrush who was leaving in the next draft.

With many staff now on military service the board faced a variety of matters in relation to remuneration for the men. The directors considered a schedule setting out the pay of various ranks in the army, compared with pay received in civil life. Clem Trotter had made a careful study of the position of married members of the staff serving with the forces and found that in very few cases was army pay below what the men would have otherwise received. As a consequence he suggested that ‘it did not appear necessary to make any allowances’ and recommended to the executive committee that a sum of £500 out of the amount set aside for bonuses should be paid into the Rehabilitation Fund.

The reputation of Clem Trotter as a visionary had not gone unnoticed. Mr Alex Hunter, chairman, advised the board that a deputation had waited on the general manager, asking him to ‘stand for Parliament in the National interests’:

Although very unwilling to release Mr Trotter he felt they could not stand in his way if he felt it his duty to accept. However, after giving the matter deep consideration Mr Trotter had decided that although it was an opportunity to do something for the country, with so many of the staff overseas, and the great difficulties under which this company and the other concerns in the management of which he was taking a responsible share, were carrying on, he was not justified in severing his connection with the Society at the present time, though he would not have hesitated had times been normal. The thanks

of the Society were due to Mr Trotter for his decision, and particularly for the reasons which had prompted him to make the decision.

A confident Alex Hunter opened the 1941 annual general meeting announcing a net profit of £13,997 and told shareholders:

The year’s trading had been full of vitality in spite of restrictions and the repercussions due to the war, and stock markets have varied less than might have been expected in face of shipping difficulties and congestion at freezing works.

He continued by saying:

The Luftwaffe might quite easily skittle New Zealand’s export of foodstuffs. While docks and cool stores are very vulnerable, we have reasonable cause to keep hoping, though we may be pretty certain there are harder times ahead of us. We may expect some improvements in regard to shipping, though there are contingencies in that respect.

Stock sales were good and the market very firm, with supplies of good cattle and prime sheep limited and barely satisfying the local demand. Sale of prime-quality heifer beef had made £9.10.0d. and good quality cows £8.15.0d. and £8.10s.0d. Prime fat wethers sold at 27/-s and lighter sheep at 25/6d, with fat ewes from 15/-s to 17/-s according to age. One outstanding clearing sale was a herd sold on account of L. J. Nees of Eltham, when some 160 cows made the splendid average of £12.12s.0d. A ‘spirited demand’ at the Hawera sale had increased morale and enthusiasm.

Despite facing many difficulties created by wartime taxation, labour shortages and complications due to regulations the Society continued to make progress and Mr Hunter extolled the virtues of common sense in his address in 1942, to the 28th annual general meeting entitled ‘Successful year’s operations – despite wartime difficulties’:

We may be sure difficult problems for all will have to be faced. While it is wise to be prepared, it is possible to waste effort and money on schemes which might, by changing circumstances, be rendered unnecessary or quite useless. As problems present themselves they can be dealt with, providing consideration and common sense are exercised.

Mr Page the American Ambassador to Britain during much of the term of the of the previous Great War, wrote: ‘The one thing indispensable is common sense’. We hear and read a lot about the ‘new order’ of these times. Hitler and Mussolini started that for Europe, and Nippon for Asia and the Pacific – so they say. They have attained quite a measure of success and assure us that when they have finished everything in the garden will be lovely. However, some people say unkind things about ‘disorder’ and think that while there is room for improvement, there is quite a lot to be said for the old order, and intend to resist major alteration.

Somewhat surprisingly, in 1942 the Society found itself being in credit at the bank to the extent of £65,000. It was left to the general manager to ‘invest with an approved firm such sums of money as he may think prudent for a term not exceeding three months’.

To illustrate the magnitude of the problem of retaining sufficient staff to operate the business, a note in the annual report on ‘Staff Enlistments’ stated that:

Since the last annual report a further seventy-two employees, making in all one hundred and twentyfive left our employ to join the Forces. Of these Messrs G. A. Bromley, T. Bromley, M. B. Bourke, R. C. Jackson and C. S. Wylds are reported prisoners of war.

As war continued, the ever-increasing shortage of goods caused by supply and quick turnover within a few days of being received, had prompted many complaints from customers who were unable to obtain some lines from the Society’s smaller stores. With the shortage as well as the huge turnover and retraining of staff, because of personnel enlisting or being drafted into the armed services one would have expected a threat to the financial viability of the Society. This, however, was not the case; the fortunes of Farmers’ Co-op were not unduly affected. The annual general

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meeting of 1943 was addressed by Lieutenant F. A. Raymaley of the Joint U.S.A. Purchase Board, accompanied by Colonel R. J. Wilkie, who gave an address on the requirements of the United States Troops in the Pacific area, pointing out that food was one of the most important facts in the war and that New Zealand was ideally situated for the production of many of the commodities necessary for the subsistence of the armies of the Pacific. Pig meats in particular were required and at the present time many tons of foodstuffs were being imported from the United States when the shipping space could be used more advantageously for the transport of badly needed munitions.

As a result of the address a resolution was passed by the meeting that:

This meeting request the Primary Production Council of South Taranaki to plan and carry through a campaign for the increase of pig production and to enlist the co-operation of all those who are able to assist with the work.

Many stirring patriotic speeches were delivered throughout the war years – bringing the reality of the dreadful conflict closer to home in Taranaki. Farmers’ Co-op were indeed fortunate to have resolute, charismatic leaders at the helm to inspire and encourage all who stayed at home to guard the farms and fortunes of those away defending the nation and the free world. Mr Clem Trotter said:

If we want to build a better world, that world will only be built by our being better men and women, because it must be remembered, that the State consists only of individuals who compose it. If the majority of the individuals in that State think and act in the same way, the State itself must act accordingly, and on a wider scale the world itself is composed only of individuals.

The causes of this arise out of purely human failings, lust for power, greed, sloth and failure to face up to responsibilities. Governments only do what the governed are prepared for them to do. We in this country have achieved great social privileges, adequate wages and good working conditions

New Zealand Loan and Mercantile premises on Princes Street, Hawera were purchased by Farmers’ Co-op in November 1942. This is now the site of Cinema 2 .

COURTESY EVENING POST COLLECTION ALEXANDER TURNBULL LIBRARY, WELLINGTON, N.Z. PACOLL-5482-037

in all classes of industry, and adequate price for the farmer for his produce, and a measure of social security for the aged and socially unfortunate. Is it not time that we all began to realise that rights must always be accompanied by duties? If society is to be healthy, the greater the privileges, the greater the obligations.

We are too apt to forget that the heritage we enjoy has been purchased for us by the blood, toil and sweat of those who have fallen, and in order to preserve that heritage the flower of our youth are again laying down their lives on the battlefields, in the air and on the sea. It is surely up to us as individuals to show by our daily conduct that we are worthy of the price that has been and is being paid.

Old records, stationery and goods were damaged by a fire ‘that had broken out’ in the loft above the office premises in Regent Street, Hawera on 14 January 1943. Fortunately the Fire Brigade had been summoned as soon as the fire was discovered but ‘thanks to the prompt action of staff the fire was brought under control’ by the time the Brigade arrived. Minutes relevant to the period from 1917 until 1929 appear to have been lost in this incident.

Success continued with a gross profit of £42,937 for the year ending 31 March 1943, with the outlook in connection with the war improving, and confidence growing in New Zealand’s exports. The considerable demand for South Pacific supplies would continue for some time into the future. However, ‘war clouds’ had not completely passed away and there was still severe pressure on women and older men, many of whom had been involved in the First World War and were now ‘keeping the home fires burning’. The Society continued to grow and prosper.

The year was notable for the purchase by the Society of the Taranaki interests in the New Zealand Loan and Mercantile Agency Company in November 1942. Negotiations had been conducted ‘with the utmost cordiality and absolute fairness on the part of the Loan Company and their staff’. The purchase price was £33,290.19s.1d. This included plant £500, cars £1,000, property £4,030, stock £4,464.2s.3d. and sundry debtors of £23,296.16s.10d. The Society was also fortunate enough to secure the transfer of a number of staff and able to bring the Hawera produce department from Union Street into the larger former N.Z. Loan Company building on Princes Street (now the site of Cinema 2), which was closer to the main premises in Regent Street. The Union Street premises used for produce since 1916, ‘although very cramped’, were retained and used for mixing manures and stock feed. The following months proved the new purchase to be fully justified. The former N. Z. Loan Company building at Stratford was also purchased, with some areas leased and others used as storage space by the Society. It appears that around this period Friday night trading was introduced and at least at Stratford the grocery department remained open until 8:30pm and ‘with the exception of the drapers, most retailers followed suit’.

A lex Hunter’s late arrival at the September 1943 board meeting cast an ominous shadow over proceedings. It was out of character for this fastidious gentleman. Directors could not recall the chairman being late or absent without leave throughout his long and illustrious term as the Society’s chairman of directors. This was to be the final Farmers’ Co-op board meeting attended by Alex Hunter. His health continued to deteriorate, and in the following months general manager Clem Trotter personally visited Mr Hunter on many occasions to enquire into his wellbeing and convey the sympathy of the directors. Alas, at the annual general meeting on 13 July 1944 Mr Hunter was not in attendance. It was the first time in 29 years that he had not presided at the meeting. In moving leave of absence for Mr Hunter, Mr C. D. Dickie, deputy chairman, paid tribute to his long and distinguished service in the company’s affairs. He described him as a man of the highest ethics and as one who had never placed private interests before public duty. Mr Hunter’s name stood for all that was good in business and enterprise. It was his name that had instilled the highest degree of confidence in those trading with the Society.

KING!

In a letter to the meeting Mr Hunter reviewed the year’s operations, stating that ‘on the foundation now so solidly laid he trusted that the co-operative principles of trading would go from strength to strength, thus fulfilling the vision of the founders of the Society:’

The great call to-day is for unity, not only among farmers, but among all sections of the community. A house divided against itself cannot stand is true to-day as when it was first written. If the sacrifices which have been and are being made in the name of freedom are not to be in vain, then it is essential that we should work together individually, nationally and internationally, and I see no way of being faithful to our trust unless each and every one of us applies the wisdom of the ages:

Do unto others as you would that they should do to you.

On a motion of Mr F. W. Horner, seconded by Mr C. G. Trotter, the meeting resolved to place on record its warm appreciation of the services rendered to the society by Mr Hunter. Mr Horner said: ‘No man was held higher in the estimation of the community.’ Mr Trotter added that through the years Mr Hunter had not only retained but increased the esteem, affection and respect in which he was held.

When the directors convened following the annual general meeting to appoint its executive Mr Alex Hunter was unanimously elected chairman of the Society for the ensuing year, with Mr C. D. Dickie elected deputy chairman.

One of New Zealand’s most prominent livestock breeders and executive officers in ‘breed’ societies and chairman of The Farmers’ Co-operative Organisation Society of New Zealand Limited for 29 years, Alexander Hunter passed away at his home, Waihi Road, Hawera, in June 1944, aged 67 years. He was indeed a man held in the highest regard for his personal attributes of character and business integrity and whose long record of distinguished service counted for much in the advancement of organisations to which he devoted his interest. His father Moore Hunter, was a provisional director of the Farmers’ Co-op’s predecessor Egmont Farmers’ Union Limited in 1889. The Hunter family had played a significant role in the development of the co-operative movement in South Taranaki for 55 years. Alex Hunter followed in his father’s footsteps, also becoming a provisional director, but this time of The Farmers’ Co-operative Organisation Society of New Zealand Limited, attending the first Statutory meeting in 1913 and being elected to the directorate. He was appointed to the finance committee of the board when the Society commenced operations in 1914, under the chairmanship of G. H. Buckeridge, and one year later became chairman of directors, a position he held for 29 years.

On the death of his father, Moore Hunter, Alex was appointed trustee and manager of the ‘Burnside’ Clydesdale and Shorthorn studs, at Hawera, this renowned Clydesdale stud having been founded in fillies purchased from the estate of the late Ernest Short, Feilding, and a famous sire, Bonnie Dene, imported by Sir Douglas McLean, left progeny that won most shows in New Zealand and at the Melbourne and Sydney Royal Shows and were sold throughout the Dominion and the Commonwealth. In the breeding of Clydesdale horses, Shorthorn cattle and Southdown sheep, Mr Hunter did much to raise the standard of livestock throughout the country and his activities in that direction led him to be connected, as an executive officer, with the Clydesdale Horse Society of New Zealand, the New Zealand Shorthorn Association, the New Zealand Sheep Owners’ Federation, the Egmont A & P Association, the Board of Agriculture and the Council of the Agricultural Society of New Zealand.

A founder and an original councillor of the Clydesdale Society, holding office from time to time as president, and treasurer at the time of his death, Alex was one of the five life governors. When the society’s headquarters were transferred from Dunedin to Hawera, he acted as honorary secretary. Mr Hunter was one of the Dominion’s foremost judges and exhibitors and one of his stallions, Canmore, won the Sydney Royal Show championship in 1933, selling at the record price of 530 guineas. In New Zealand his stock won the 50-guinea silver cup for the champion Clydesdale mare at seven national shows, Mr Hunter re-donating the trophy when he had won it outright. One year at Auckland Mr Hunter’s entries broke all records, carrying off championships for the stallion, mare and gelding and reserve championship for stallion.

Associated with the Egmont A & P Association since his youth, Mr Hunter was an early member of the executive and elected president in 1909 and again in 1933. Well known for the high quality of his entries, he competed with success for many years. At the time of his death he was still a member of the executive. Mr Hunter was treasurer of the Royal Agricultural Society and prominently identified himself with the work of the Shorthorn Association in early years when he held office as vice president, continuing in later years as an executive member and show judge. From the inception of the New Zealand Sheepowners’ Federation he had been a member of the committee. He was interested in sheepdog trial work and in his younger days a huntsman, polo player and Taranaki Rugby football representative from 1900 to 1905. Latterly he had been a member of the South Taranaki Primary Production Council. He was a staunch adherent of St John’s Presbyterian Church where he had been an elder for many years, a teacher in the Sunday school from his youth and one-time representative of the church in the Presbytery and General Assembly.

Mr Hunter married Miss Vivia Dingle, daughter of Mrs W. Dingle of Hawera, and the late Mr Dingle of Okaiawa, and was survived by three of four sons, Mr Eric Moore Hunter (Hawera), Warrant Officer Nigel William Hunter, M.M. (Hawera), now discharged, and Arnold George Hunter (on active service overseas), and one daughter, Mrs H. Smith (Auckland). His son Sergeant-Pilot Hamish Hunter died of wounds received in air operations. Brothers and sisters of the deceased are Messrs J. Hunter (Fordell), A. Hunter (Makirikiri) and Moore Hunter (Kai Iwi) and Mesdames D. Blythe (Wanganui), J. Blair (Maxwell) and R. H. Leece and A. Thomson (Hawera).

He was indeed a man for the time and a leading figure in the stock and station industry of New Zealand. Such was his contribution, particularly to the farming industry of Taranaki, that his legacy continued to be an inspiration to all who followed. He set the standards of loyalty and commitment to the company that has been a hallmark of what proved to be Taranaki’s most enduring co-operative organisation.

Mr C. D. Dickie, chairman, The Farmers’ Co-operative Organisation Society of New Zealand Limited, 1944–49.

Cloaked in Secrecy

Throughout what had been a traumatic year for the Society with major changes to the directorate and structure of the company, Charles Dunsbie Dickie, the Society’s deputy chairman had presided over the board during late 1943 and during the absence and illness of Mr Hunter in 1944. Mr Dickie of Waverley was only the third chairman in the entire 30-year history of the Society. He had been a provisional director in 1913, and with his considerable experience he was without doubt the man for the job. As Mr Dickie had only recently married, a presentation was made to him and his wife of a pair of entrée dishes on behalf of the directors and shareholders. Thrust into an energised environment with expectations of a future without war, chairman Charles Dickie was faced with many proposals and problems and no time to settle his nerves in what had become Taranaki’s leading farmers’ trading enterprise. Under his chairmanship the Society made a number of acquisitions, including the purchase in 1944 of D. Root’s grocery business at Patea for £1,850 and this established Patea’s first FCOS branch trading store. This property included sufficient room for a right of way and large yard. The building, however, was old and inconvenient and ‘quite inadequate for the rapidly expanding business’, at Patea. Consequently when a building owned by Wright Stephenson and Coy became available for removal it was decided to purchase it for £900 and re-erect the structure behind the present premises. The materials in the building were considered to be in good condition and that it would last for many years.

The South Taranaki Winter Show Company Buildings on Princes Street, Hawera, the original site of the first Farmers’ Co-op head office in 1914, had recently been placed on the market and at the Society’s board meeting on 20 February 1945, Clem Trotter reported that he had secured a verbal option ‘over the whole property as it stands at £8,200’. The capital value was £13,300, made up of unimproved value £2,750 and improved value of £10,550. The rates amounted to £106. 8.10d per annum, with the permanent leases bringing in £312. The roof was in a bad state of repair and re-roofing the whole building would cost £3,500. It was considered that with temporary repairs to the roof and building it would show an excellent return as a woolstore and house other activities of the Society. At 4:00pm the same day the directors adjourned to make an inspection of the building and on reconvening the meeting it was resolved to ‘endeavour to obtain an option over the property for 28 days at £8,000 and in the event of the option being agreed upon the matter be left in the hands of the Executive Committee with power to act’.

Negotiation took place and estimates of the cost of repairs and probable revenue was tabled. There was, however, further discussion regarding an alternative arrangement to lease the property

for three years at a rental of £700 per annum, plus rates and insurance, with an optional purchase clause. It was estimated that the building would hold a minimum of 22,800 bales. At a penny per bale per week, with a ceiling of 3/6 per bale per year, this would bring in revenue of £3,990 per annum. Messrs Duffill and Gibson, architects, had estimated that renewing and repairing portions of the roof and concreting the floors, excluding the leanto would cost £4,067. Allowing for taxation and taking all contingencies into account, a profit of at least £600 per annum would accrue. It was unanimously resolved the executive committee exercise the option over the Winter Show Company’s buildings for a lease of three years with an optional purchasing clause on the terms set out in the option. The recreation hall, known to many as a dance venue, was retained with the right to let the hall as and when required.

Only 18 months later, in August 1946, the manager of the National Dairy Association approached the Farmers’ Co-op general manager Clem Trotter with a suggestion to exchange the National Dairy Association’s property on the west side of Princes Street, Hawera adjacent to the Society’s garage for the Winter Show Buildings situated immediately opposite and which were at the time occupied by the Society under a lease agreement with a purchasing option of £8,200, expiring on 1 March 1948. The two National Dairy Association buildings were inspected by the general manager in the company of officials of the N.D.A. in order that full particulars could be placed before the boards of the respective companies. Valuations had been made by Mr Duffill on behalf of the Society and Mr Grant on behalf of the N.D.A. Mr Duffill valued the Winter Show Buildings at £28,484, and National Dairy Association buildings at £13,701 and Mr Grant valued the Winter Show Buildings at £27,997 and the National Dairy Association buildings at £13,622. The sale of the properties required the approval of the Land Sales Court and additional negotiations included the Society renting two halls for a further 14 months. Final valuations referred to by the Land Court are unexplained, but bargaining went on between the two parties for some months, with Messrs Horner and Burns, the Society’s solicitors (formerly Halliwells), advising that a letter from the Land Court stated:

That the respective valuation of £22,400 and £8,350 indicated an equality of exchange amounting to £14,050, whereas the sum provided in the agreement was £12,000, and it would not be possible for the transaction to be approved without a hearing. In order to avoid the necessity for this it was proposed by the Court that the N.D.A. should increase the amount to £14,050.

In transferring the Winter Show Buildings to the National Dairy Association the Society retained ownership of the right-of-way and a section on Albion Street. It was decided the buildings on this section would be suitable for re-erection at Eltham and the section would then be available for sale. This decision would leave a small portion of land adjoining the National Dairy Association’s property that would cost £20 to have surveyed off and it was decided to include it in the National Dairy Association’s purchase without further cost. Farmers’ Co-op continued to store wool in certain areas of the Winter Show Buildings premises, but within a relatively short period the Society permanently vacated the premises and their long-time association with this building came to an end.

D. Roots Grocery Store in earlier years. Farmers’ Co-op purchased the premises to establish the first Patea branch store in 1944.

COURTESY OF SOUTH TARANAKI MUSEUM

Charles Dickie’s ability to hold onto the reins was tested soon after his appointment, when on 20 February 1945 he announced to the board that Clem Trotter, the general manager, had been appointed Government Delegate with a New Zealand delegation to the Wool Conference to be held in London, England in the spring and would be leaving within the next few days. Clem was chairman of the New Zealand Woolbrokers’ Association and this appointment, representing the Dominion at such a critical time in history, was indeed an honour. The purpose of the conference was to discuss how the world wool stockpile of some 10.4 million bales was to be disposed of without collapsing the market. He would be away for at least 15 weeks and it was noted that ‘during that time expenses would be paid by the Government’. As Clem Trotter’s management style had involved him in every aspect of the Society’s business, such a lengthy sojourn abroad would need to be carefully handled. It was decided that during his absence local members of the executive committee would scrutinise all advances and generally look after accounts. Mr H. F. Wooffindin, branch manager at New Plymouth, was appointed acting general manager, spending one or two days a week in Hawera. Mr Norm Blake was appointed acting secretary. Matters in connection with the stores would be attended by Mr Oakley and Mr Snelling. A motion: that Mr Trotter be granted leave of absence to visit England as a Government Delegate to the Wool Conference, and that he be paid his full salary while he is away, was carried.

Although World War II was at a turning point and the Allied Forces were now getting the upper hand in the Pacific and northern hemisphere, the voyage to the Home country was not without danger. Mr Dickie suggested that the Society take out an insurance policy on Mr Trotter’s life for the benefit of his wife and family. The premium for such a policy for a year ‘would not cost more that £200’. The Society hoped that there would be some fall-out for the Farmers’ Co-op, with the opportunity for Clem Trotter to visit firms with whom the Society had business connections, while making business contacts that would be useful in the future. It was agreed that Clem Trotter’s stay in Britain could be extended if necessary specifically for this purpose. An arrangement was made with the Reserve Bank for £250 of the Society’s funds with the Overseas Farmers’ Federations in London and this would be made available to him while in England. It was also resolved that: ‘Mr Trotter will be given a free hand with regards to expenses while on any business connected with the Society and that we insure his life for the benefit of his wife and family for the time he will be absent from New Zealand.’

Five months later, on Saturday 14 July 1945, Mr Trotter arrived back in Auckland having returned to New Zealand by air ‘in 76 hours and 21 minutes actual flying time’, Stops on the homeward journey included, Ireland, Newfoundland and Baltimore on the way to Washington where he spent a few days of the week available to him in the United States. From Washington, after visiting New York, he went to San Diego, thence to Honolulu, Canton Island and Fiji. He was welcomed back by the board at the 31 July board meeting, just in time for the annual general meeting which for the first time in its history was being held in the month of August, no doubt to coincide with the return of the general manager. It had been a very rewarding trip in that the delegates to the ‘Empire Wool Conference’ were unanimous in their findings, with representatives from all the wool-producing countries in the Empire and Mr Trotter regarded the outcome as a ‘happy augury for the satisfactory disposal of accumulated surpluses and orderly marketing of oncoming clips’. In an interview Mr Trotter said:

Once broad principles became clear … this was brought about to a large extent by the intermingling of delegates, so that each could study the other’s viewpoint, the conference achieved a common aim and conclusion in which all were in agreement.

The circumstances of the war and the necessity of negotiations between the various Dominions and the United States had made London, ‘in spite of bombs and all else’, the best centre for discussions. The final outcome of the conference was ‘cloaked in secrecy’ and when questioned regarding the

outcome of the mammoth meeting Mr Trotter replied: ‘All I can say about it now is that it was an inter-Government conference which sat continuously from early in March until the middle of May and that it reached unanimously certain conclusions that have been forwarded to the respective Governments for their consideration.’

He added that he was not in a position to comment on the details of the report prepared in London and forwarded to the New Zealand Government while the Delegation was still in London. It transpired that the New Zealand Delegation, which consisted of 10 members, was headed by George A. Duncan CBE, ARNZ, AAIS, director of External Marketing, formerly of Hawera where he once held the position of secretary of the Hawera Co-operative Dairy Company. Mr Trotter stated that the government appointment of Mr Duncan to lead such a mission was a wise choice, being a man of wide experience, having visited London on several occasions during the war in connection with New Zealand primary produce. He was held in very high regard both in the United Kingdom Government and other circles. Hawera’s connection with George Duncan was fortuitous because throughout the years his friendship and influence in high places provided many opportunities of assistance. His ‘quiet wisdom’ and unrivalled practical experience was sought after by government, producer representatives and the wider primary industries of New Zealand. His wise council and in particular negotiating skills are demonstrated when he was negotiating the terms of the British World War II wool commandeer on New Zealand’s behalf:

Late in the negotiation when the two sides were a quarter of a penny apart, they broke for dinner during which the chief British negotiator offered and Duncan agreed to settle the result over a game of billiards. Little did the UK man know he was up against a keen and expert player. Duncan won, but years later he said it was the hardest game he had ever played, knowing what a farthing per pound would be worth to the New Zealand woolgrowers over the duration of the war.

He eventually became an associate member of the New Zealand Wool Board and was later chairman and general manager of both the Wool Disposals Commission (JO) and its successor the New Zealand Wool Commission.

Little progress was being made at one stage at the conference and Mr Trotter spoke of a break in the proceedings when a visit to Scotland was arranged. It was from a lesson in Empire solidarity learned at Edinburgh that the delegates on their return to London made great progress, presenting a united front to the problem at hand:

What impressed us most was the way Britain geared herself for war and I do not think we in New Zealand have a proper appreciation of how everything has been sacrificed to the national war effort. The people have cheerfully submitted to the controls and inconveniences, and of making do and doing without that is far beyond the experience of this country…

The delicate balance sustained by ‘sheer physical effort’ was illustrated by the fact that, ‘before the war Britain produced enough food to feed herself for only a day and a half each week, but today she was producing sufficient to sustain herself for five days on the present basis of rationing’. Clem Trotter’s visit to Europe at a time of war was indeed a lesson in itself and his contribution would be recognised by the Government in years to come in further appointments. As an outcome of this mission he was appointed to the board of NZ Wool Disposals Limited from 1946 to 1951. At a board meeting in December 1945, director J. D. Law congratulated Mr Trotter on his appointment: ‘It was a most important position and the appointment was an acknowledgement of Mr Trotter’s outstanding ability.’

Endorsing Mr Law’s remarks Mr Dickie said that it was a position in which Mr Trotter would be able to render valuable service to the wool-growers. The company was eventually replaced by the New Zealand Wool Commission and Clem served on this body from 1952 to 1961 and again from 1965 to 1968.

In a world short of foodstuffs, and in particular edible fats, which in all probability had never

SECRETS

been in shorter supply, maximum production had been urged. Mr Trotter, now with first-hand experience and keenly aware of the predicament of New Zealand’s European partners, made these observations when addressing the 1945 annual general meeting:

It was the immediate duty of every farmer to stretch his food production to the fullest possible extent, for the future course of events in the liberated countries of Europe, and in fact the whole world, might be determined by the ability of the primary producers to feed the people of these lands during the present difficulties.

Farmers’ Co-op profit for the year totalled £11,905 and without taking into consideration land sales a record annual turnover of £1,750,000 was revealed by the Society. The rise was mainly due to increased prices of goods and livestock. Taking into consideration the conditions under which they had operated within the past year the payment of a dividend to shareholders of 4 per cent was an extremely pleasing result. In the 31 years of operation, nine had been under war conditions and although huge national and international issues now lay ahead, the Society was in a sound position and ready for the first time to plan its future without the imminent threat of war.

The past five years of war had not impeded growth and, in good fettle, the Society was now ready to face the future. The war in Europe had ended and peace was in sight in the Pacific thanks to the huge effort and sacrifice made by everyone at home and abroad. The war had taken its toll among Society staff and families who had loved ones serving abroad. At the outbreak of war Farmers’ Coop employed 205 males and females. Of the 169 staff members who entered the armed forces, 58 returned, including 20 who had taken up employment elsewhere, and 90 were still serving in the forces as at 9 August 1945. Sixteen had paid the supreme sacrifice:

1941 Pte. D. F. Robertson.

1942 Pilot Officer I. C. Grant, T/Sgt. R. A. Kemp, Pilot Officer C. E. Langdon, Pte. W. L. Shepard, Sgt. E. B. Whittaker.

1943 2nd Lieut. B. Budd, A.C.2. M. S. Nelson, Gnr. C. S. Wylds.

1944 Pte. N. C. Franklin, Tpr. E. R. Honeyfield, Pilot Officer J. V. B. Mooney, Pilot Officer D. Webster, Flt. Lieut. G. R. Joblin.

1945 Flying Officer F. A. Rutherfurd, 2nd Lieut. F. L. Sargent.

Throughout the war the Society played its part providing support to the Government with an early interest-free War Loan of £2,000 and later £5,000. It also contributed to a number of patriotic funds and made donations to the Red Cross and St. John’s Ambulance Sick and Wounded Fund.

The Second World War was now thankfully at an end but the end of an era for the Farmers’ Co-op had arrived as the winter of 1945 drew to a close, with the passing of chairman Alex Hunter, Albert E. Death and Arthur T. Wills, all foundation members of the Society. These gentlemen were some of the last local pioneering gladiators, who placed their own wealth at risk with personal guarantees, establishing South Taranaki’s agricultural industry out of what was hitherto virgin bush, fern and scrub, and then in addition, through dogged determination, tenacity and common sense, built the district’s commercial infrastructure around it. Their stories of survival and their sacrifice for and dedication to the Farmers’ Co-op and the wider community would, but for the wisdom of those who have commissioned the research and writing of this history, have all but disappeared into the mists of yesteryear.

Albert Ernest Death was one of Farmers’ Co-op’s most loyal and hard-working supporters on the board and had been at the forefront of the movement to establish the co-operative in 1913 and seen the company through some turbulent years. He was appointed to the board in 1914 and remained there until 1920 when he retired but in 1936 he stood again and remained there until his death in 1945. He was born at ‘Pine Park’ Tutuaenui Road, Marton on 26 June 1868, the sixth son of 14 children to George Gooch Death and Philippa Poad. George Death established most of his sons

on farms he purchased in the Manawatu, Rangitikei, Wanganui, Taranaki and the Waikato districts. In 1885 George moved to ‘Lake Farm’ at Waverley and built a large house. On retiring they moved to Auckland, selling the farm to the Bremer family. At the time of writing this history the house is occupied by Robert Bremer. Albert Death farmed a property on Manawapou Road, Hawera and married Alice Winks. They raised a family of nine children.

Christmas and good tidings from the board were announced with a resolution to pay a bonus of 2½ per cent to all members of the staff on the payroll as at 18 December 1945, including members of the permanent staff serving with military forces, to be calculated by the amount actually paid by the Society in salaries or wages for the nine months ended the 31 December 1945, but excluding bonuses or overtime. It was also agreed to pay a bonus to married members of the staff with children under the age of sixteen and serving in the forces, on the same basis as the previous year.

War had finished but the Society still had staff serving in J Force. When Japan surrendered, Allied Forces, including New Zealanders, Australians, Canadians and Indians, entered Japan as an occupying force, to restore the peace, clean debris from the atomic blast, help rebuild and direct Japan towards democracy. Initially called BCOF (British Commonwealth Occupation Force), they became known as J Force. The board of directors resolved that staff enlisting in the service should be granted leave of absence for the term of such service. Members who had joined the superannuation scheme and required the Society’s consideration with respect to assisting them with contributions towards the maintenance of their policies would be treated on merit.

Reducing the working week to 40 hours for grocers and shop assistants had now become a reality under the Shops and Offices Amendment Act and the whole question was discussed at length by the board of directors. It had major ramifications for the Society as although the 40 hours could currently be spread over five and a half days, the Arbitration Court had the power to enforce a fiveday week after the end of June 1946. The net result of the change would increase the wage bill by £53 per week. The way forward was dictated by the practices in other centres. While the Society did not wish to curtail the service provided to shareholders by trading on Saturdays, it transpired that although shops and offices remained open on Saturday’s business was negligible and it was decided to fall in line with other traders and work a five-day week.

TWENTY-THREE

Gaiters, Gumboots and Glamour

The golden era of New Zealand’s stock agent/auctioneer is still remembered by some, but sadly the aura of glamour surrounding these rural knights with their cocked hats, gaiters and gumboots, armed with a sturdy lancewood, mounted on horseback, or more recently on eightcylinder mechanical stallions, has now diminished with the arrival of better communications, the digital age, modern transport, and the consequential general enlightenment of those who live and work in rural communities. Today technology makes everything readily accessible. Apart from undertaking general stock agent duties, the stock agent of yesteryear was knowledgeable in market trends, valuing, selling and buying livestock and general merchandise and all other farm-related matters. The agent became the carrier of good and bad tidings and happenings in the community, and a family friend and confidant to those who lived on farms and in other isolated places. Generally he was a down-to-earth, outgoing man with a genial personality, trustworthy and respected. He stood tall amongst those he served in the rural community and in most cases he remained in the position throughout his working life. The working day never ended; there were constant demands from his large client base.

As the Taranaki provincial farming community evolved, the stock and station companies, agents and auctioneers played a major role in the acquisition of stock and land for many farmers, in many cases sourcing finance, and other work until then undertaken by real estate agents. Eventually most famers’ merchandise, stock and land was likely to be in the hands of a trusted local stock and station agent and he and his company became critical to their wellbeing and survival. With the stock and station company’s considerable influence and control over income and expenditure, farmers were often dependent on them. It was not surprising that the stock agent

Harold Slater, stock agent for Farmers’ Co-op 1926–69, and woodman.

COURTESY HILARY AND DAVID BREWER.

role was highly sought after by many ambitious young men. Once bitten by the bug of this hugely demanding yet rewarding work, most stock agents/auctioneers, regardless of promotions within the industry could not remove themselves from the sale ring and continued in some capacity until they were no longer able.

Little has been written about these rural stalwarts. Spending much of their lives wading through knee-deep cattle droppings in gaiters or gumboots, wooing both Mr and Mrs farmer at the same time, many became household names within the districts and provinces they serviced and often acquired the status of reluctant glamour-boys of the countryside. Their stylish high profile and standing in the community that was second to none. This profession has yet to receive the acclaim it deserves for the huge contribution it has made in the evolution and success of trading in the rural communities.

Many of Taranaki’s stock agents of the past 125 years will unfortunately, like other uncelebrated heroes, not be mentioned in this documentary. However, the almost legendary status of some of the early agents lives on though they are long departed. Eltham-born Harold Slater became synonymous with all things to do with livestock in Taranaki. He was known within the farming and auctioneering circles throughout New Zealand for his genial personality and his integrity. He joined the Society as a stock clerk in 1926 and a year later transferred to the Stratford branch. Within three years he was appointed stock agent and auctioneer for the Hawera branch and finally received the appointment of livestock manager for the company. He gained a reputation as one of the country’s leading auctioneers, and his wisdom and style became a benchmark for many of his younger aspiring agents. It is surprising how many people who had been associated with Harold Slater still extol the virtues of this down-to-earth practical man 40 years after his death.

As a boy young Keith Newland, who in later years would take on Harold’s position of the company livestock manager, had spent considerable time at sales with his father Ted, also a stock agent for Farmers Co-op at Eltham and later Inglewood. Keith had watched closely as agents and auctioneers went about their daily work. He openly idolized his Dad’s friend, Harold Slater, who was ‘the best auctioneer he had ever heard’:

He was a grey-haired man, who on visits to our home had a great habit of rubbing his hands through my hair, I had a great deal of admiration for Mr Slater. … He was an orator, and when he spoke, people listened to him. I don’t consider myself a Harold Slater by any means, but I remember the advice which he gave to me: He said ‘when you stand up, you are in charge. When you speak, speak out, speak slowly and don’t mumble. Make sure that people understand what you are saying’. … I patterned myself on Harold.

Harold was with Farmers’ Co-op in good and bad times, including the Society’s heydays after World War II when it could concentrate on the growth, the needs of its shareholders and those in the firm’s employ. It was not unusual for Harold to find himself at a Hawera Lamb Fair with some 10,000 sheep offered for sale. His participation in many clubs and organisations in the town saw him awarded a life membership of the Hawera Aero Club. He was a member of the Hawera Golf Club and an enthusiastic follower of rugby. In his earlier days he was a cornetist in the Eltham Band, a member of the Hawera Pipe Band and the Eltham Operatic Society. He was also a keen follower of the hounds and was for some years a member-supporter of the Egmont-Wanganui Hunt Club. A member of the Egmont Racing Club, his interest in racing saw him serve as a steward from 1946 until 1968. Harold Slater died in Wellington on Monday 19 March 1969. He was predeceased by his wife Muriel and was survived by his two daughters, Hilary (Mrs D. Brewer) and Janet Law, New Plymouth.

War interrupted the lives of many at home as well as those abroad. Some recently married young men had set up a home and established themselves in chosen careers. One such employee was young W. H. (Bill) Ellingham who joined Farmers’ Co-op in 1937 with the specific intention

of fulfilling his life-long ambition to become a stock agent. He had been working for Williams and Kettle in Dannevirke for five years as a stock clerk when a neighbour, Jim Trotter, a stock buyer for Borthwick’s and brother of Farmers’ Co-op’s general manager Clem Trotter, advised Bill that a position was available in the Hawera branch of Farmers’ Co-op in Taranaki. With his family connection Jim Trotter made an appointment for Bill’s interview with the general manager Clem Trotter. He remembers the day quite clearly. Bill had broken his arm in a rugby match the previous Saturday and had it in a sling. The interview did not go to well. Bill recalls that Clem Trotter asked what his salary was over in Dannevirke, Bill told him and Mr Trotter replied, ‘then that’s what you are going to get here’. Although disappointed at not receiving a higher salary, he accepted the appointment. He had as least jumped the first hurdle. However, his ambition to become a stock agent was yet to be realised. Appointed as a stock clerk, he remained in that position for two years. Bill recalls those early years with a wry smile and that familiar twinkle in his eye, ‘Writing out delivery dockets may be a simple enough job but it’s one hell of a job to perform in the rain’. Before the days of the biro, keeping the paper dry was vital. The trick was to find somewhere dry to make the pencil entry: ‘You had your pencil in one hand, and the book in the other, and you were required to keep a record of who bought the stock, what the price was and who the buyer was.’

Bill had met his sweetheart Audrey Harding in Dannevirke. She taught at the local high school and following a year at Rotorua, she returned to her home town Hawera where they married. The demands of Bill’s work made it difficult to find a suitable time for their marriage ceremony, which eventually took place ‘between the lamb and ewe fair’! Finally Bill was appointed stock agent for the Ararata, Hurleyville districts, also serving a short stint in Eltham. Alas the war and 1941 was about to change this family’s life. Bill said goodbye to his wife and newly born son William John, ‘young Bill’. His initial posting was Australia, where, as a member of the Special Company, he was trained as a commando.

Bill H. Ellingham QSM, Farmers’ Co-op employee 1937–78. From stock clerk to stock agent, credit manager and Hawera branch manager.

Staff who served abroad were certainly not forgotten by general manager Clem Trotter. He made sure all employees overseas were kept up with company news and events of the day. It must have been a great boost to their morale to know that the company cared for them and was looking after their jobs and other interests, including their families. Clem Trotter wrote many letters to staff members serving in the armed forces throughout the war, that also included handwritten notes and messages from other staff, either scribbled on the annual balance sheet of the day or the rear of Clem Trotter’s letter:

No. 42614, 26 Sept. 1941 Capt. W. H. Ellingham, Special Coy, Central Infantry Battalion, 2nd/ Section, 7th/ Reinforcement, OVERSEAS.

Dear Ellingham,

This little gift is sent with our best wishes for a Happy Xmas, and also as a reminder that you are not forgotten by the Society or the Staff.

We are sending you herein the Balance Sheet for the year ending March 1941 so you will be able to judge whether we are keeping the old ship trim and in good shape. If you are not satisfied with our efforts we will welcome any constructive criticism.

I am pleased to be able to tell you that the Directors have created a rehabilitation Account, and

last year a sum equal to 9% on the salaries of all men serving overseas was placed to the credit of this Account, and your share will be available to give you a start when you return. With best wishes to you from the Directors and Staff, Yours sincerely, C. G. Trotter General Manager

On the face of the Auditor’s Report attached to the 1941 balance sheet, comments were scribed from a few work colleagues:

Bill, Your cat which has adopted us has four kittens. That beats your effort. Jack Bernard. Willie, Hope to see you soon. Merry Xmas. Dawson Cox.

Hello Bill. The colt is growing. Will see to his stocking for you. Hugh [McWilliam].

Best of luck Bill. We had a lot of fun at the Gala football & missed your dashing play. Jim Honeyfield. Bill’s unit was eventually broken up, and he was posted to the 19th Division in the Middle East. This later became the 19th Armoured Regiment, in which Bill became a squadron commander. His time in the army, along with the many other staff who served abroad is a story in itself. However, he mentioned two near-misses that have remained in his memory. One, while standing in the tank turret he felt a sting to the cheek and found blood streaming down his face. His comrades thought he had been shot, in fact the bullet had just grazed his cheek, but Bill knew that ‘one inch closer would have blown my head off’. The other incident occurred when the 19th Battalion were supporting the Maori Battalion at Casino:

I had been LOB [Left Out of Battle] in case the squadron leader was killed. I was his 2IC and designated to take over the squadron if the worst happened. We were camped at a crossroad. Jerry always shelled crossroads and did on this occasion. Fortunately no one was killed, although some were injured and had been taken away by medics. I was in the process of picking up their gear and as I pulled the heavy lid and jumped out of the scout car I fell backwards onto the ground. Others came running, thinking I had been shot. I could not straighten up and must have damaged my vertebrae.

The correspondence from general manager Clem Trotter to those serving overseas continued throughout the war years and knowing that they had a job to come home to was a great source of comfort and reassurance.

No. 42614, Capt. W. H. Ellingham, 4th August 1944 19th N. Z. Armed Regmt. 2nd N. Z. E. F. MIDDLE EAST FORCES

Dear Bill,

Things are moving so quickly now it will probably take this little parcel a while to catch up with you. However, our very best wishes go with it, as well as the hope that it may not be long before you are back with us again.

We are enclosing a copy of the last Balance Sheet, from which you will see that we have had another satisfactory year. The Annual Meeting went off well. It was held on a Thursday this time which perhaps accounted for an extra large attendance.

We have been glad to welcome back several staff from overseas. Bob Jackson has rejoined the stock department at New Plymouth and Roy Claringbold is also back at work, while Betty McGlashan started with P. & M. at the beginning of this month. Ivan Hill is in New Zealand again too, and Bill Sadler, though he will not start work for a while yet. Quite a few of the boys are home from the Islands – Ron Thrush, Mick Flynn, Bob McCay, Lin Brathwaite, Phil Black – and very glad we are to see them, though we could wish that they were taking up their old jobs again instead of going into ‘essential

SECRETS

industry’, necessary though it may be. There have been one or two other changes too. Winifred Quin was married recently, and has left to live in Wellington. Earle Newland also entered the ranks of the Benedicts.

The staff all join in sending their good wishes.

Yours sincerely, C. G. Trotter General manager

On the reverse side of the general manager’s letter were again penned a variety of notes of good wishes:

Best wishes [Initials unknown]

Wishing you all the best for a speedy return. Maisie.

All the best Bill, and hope you will be back with us before long. Daisy Tulloch.

Hope you’re keeping in the best of spirits, good luck from [Unknown]

Good luck and best wishes. C. Uttinger.

Best wishes. Hope to see you before long. H. Slater.

Good fortune be with you. Hope you’ll be back before long Bill. Ackroyd.

All the best. H. Burke.

Keep smiling Bill. Wishing you all the best. Beryl.

Best of Luck. [Unknown]

Best of everything. Good HUNting. N. Whyte.

Good luck and best wishes. M. Butchart.

I am just wondering how many of the names you will know. Anyway there’s a warm welcome waiting for you and the rest of them. M. Corry.

Thumbs up. Often see Audrey and young Bill – they are keeping their spirits up till that Grand Day. My kindest regards Bill. I am cashier at the moment so you can imagine I am kept busy & what a good thing too! Gladys Honeyfield.

This last entry was written in the firm hand of Gladys Honeyfield, widow of E. R. Jim Honeyfield who had been killed on active service just a few months earlier on 24 May 1944.

Hostilities finally ended and Bill returned home in 1945. But the war had left its mark on him as it did with many others. Four and a half years of self-preservation left many kinds of scars:

I remember one day when I was drafting lambs at a client’s farm, and a farmer nearby who must have been clearing tree stumps was using blasting powder. There was this huge explosion. It was automatic – I just hit the ground! I felt one hell of a fool, but I think my client understood.

The back injury Bill sustained remained with him for the rest of his time overseas and on his return to New Zealand he convalesced for three months in Rotorua before returning to his Farmers’ Coop position at Hawera. Bill and his wife Audrey were the recipients of a grant from the Buchanan Trust, established by Kate and Jennie Buchanan for ex-servicemen, nurses and members of the mercantile marine domiciled in South Taranaki, who suffered temporary or permanent disability as a result of their war service. The Buchanan sisters’ philanthropy and generosity was felt by many South Taranaki people and local organisations. At the age of 93 Bill maintains that he still has trouble getting up from a chair because of the back injury he suffered over 65 years ago. On his

return, he started at daybreak – drafting sheep. Lambs destined for the Patea Freezing Works were at that time killed straight away, rather than standing the lambs overnight and killing them the next day, which is the practice today. Along the way Bill auctioned with Harold Slater and Arthur Smith, the company’s principal auctioneers. Bill would take the number three slot and cover some of the smaller sales.

Being a stock agent was the sort of job which was hard to switch off from. I’d be at an auction looking for bids, and be calling out ‘yes, here’. My wife reckoned that I used to sit up in bed in my sleep shouting ‘yes, here!’

Characters were aplenty in bygone days when eccentricity and non-conformists were generally tolerated and accepted. A colourful character Bill remembers was Francis M. (Dot) McCarthy who he worked with for many years. He chuckled explaining how Dot got his name:

Mrs McCarthy wanted a daughter, but she got a son, and she called him Dot. Then another boy arrived, and he was called Florrie. When the third son came along, he was called Jean. All the boys were given girls’ names because Mrs McCarthy never had a daughter.

Dot used to go over to Gisborne, where he would buy his stock. He’d put them on the road with a drover with the idea of going to Feilding, but they would never get there. He’d sell them all the way down. Dot would have notified some firm in Feilding that they were coming, but it didn’t make any difference to him if they didn’t arrive, and that happened to him quite often.

Another character etched into Bill Ellingham’s memory was one Friday Watkins:

He’d bring up cattle from Whakamara, and drove them along the Manawapou Road. I remember my next door neighbour lived on Manawapou Road at one time, and she had a baby out in a pram on the front lawn. The front gate to the house was open at the same time Friday was going past with his cattle. A bull dived in the gate, and Friday retrieved him, yelling at the same time what he thought about people who left their gates open.

And then there was Doug Brookes, a gentleman drover, who dressed for the role in his bowyangs, but always went to work in a collar and tie. He has a myriad of stories to tell, but, paradoxically, it was at a funeral that Bill received the most profound insight into what enjoyment his career had given him.

After the funeral I was walking back to my car and saw two chaps standing by their vehicles. As I went past, one said ‘gidday Bill’, and I heard him tell the other chap that I used to sell all of his cull cows, and that I had put him on his farm.

From stock clerk to stock agent, he was appointed to the position of company credit manager reluctantly, and for the last five years of his employment Hawera branch manager. In addition to these roles he became a jack of all trades within the company and served on many committees and organisations connected with the company and the industry. He was a compassionate, moderate man who, with his wife Audrey and four children William, Leigh, Douglas and Wynne, met the challenges of life and occupied many positions of public responsibilty. He was a member of the Hawera School Committee, Deputy Chairman of the Hawera High School Board of Governors, member and chairman of the Hawera Competitions Society, member of the Ngahuru Presbyterian Social Services, member of the local Housing Corporation Committee, member of St Mary’s Anglican Church Vestry and Synods man, South Taranaki Braille Appeal and Red Cross organiser, member of the Hawera Chamber of Commerce. He was the New Zealand RSA Intermediate Golf Champion and Patron and Life Member of the Hawera Cricket Club, Life Member and Treasurer of the Hawera Golf Club, Life Member of the Egmont A & P Association, and a member of Rotary for 40 years, where he also held the position of president. In 1983 he was awarded the Queen’s Service Medal for public services to Hawera and district.

The name Ellingham became synonymous with Farmers’ Co-op. He continued to work with the Society for 41 years, finally retiring in 1978. Thirty years later he still spoke of this family-orientated company with passion and a sense of ownership. Bill was one of that special breed of men who gave their best and took all the good things out of a long and at times challenging yet fruitful life. He commanded respect from all who knew him and in turn respected the many people he worked with. Bill, a gentleman in every sense, passed away on 21 February 2009 at Hawera in his 96th year. Perhaps the message scribed in Bill’s own hand, in the back of his notebook best reflects the character and personality of the man and the way he lived:

Give me the strength to accept with sincerity the things that cannot be changed

Give me the courage to change the things that can and should be changed

Give me the wisdom to distinguish one from the other.

While Bill Ellingham was away during the war another family introduction brought a young man into the FCOS fold who would prove to be one of the longest-serving members of the stock and station fraternity in Taranaki. Keith Newland was born in 1926 in Masterton, where his father managed a farm property. Two years later, in 1928, the family moved to Eltham when Ted Newland, introduced by Mr Henry Wooffindin, the New Plymouth Farmers’ Co-op manager, accepted a position with the Farmers Co-op. The Wooffindins also came from Masterton. Henry Woffindin’s father had worked for Ted Newland on the farm and this friendship provided him with this challenging opportunity to take up a position of stock agent at Eltham, where he worked for five years before being transferred to Inglewood. Consequently son Keith grew up in Inglewood and spent most of his young years at the saleyards: ‘My father was not a great one for schooling and did not think it was important. When there was a big sale on it was quite usual for Newland junior not to be at school, but at the saleyards, which I loved.’

In 1942, at the tender age of 15, and at the time when the Dominion’s male work force was dramatically reduced by World War II, Keith’s father decided to send young Keith to Hawera to become a stock clerk for Farmers Co-op. Keith was initially opposed to the idea. With two ponies and three dogs he enjoyed working alongside his father who also had a part-time job breaking in horses that Keith liked to ride. His protestations were to no avail and he was unceremoniously ushered onto the train at Inglewood. Keith remembers it clearly:

It was 2 June, and as I stood waiting for the train at the Inglewood station my father said something I never forgot, ‘don’t walk when you can run, everyone is Mister until you are told otherwise, and if you buy anything pay cash for it’. The instruction to call everybody ‘Mister’ annoyed me for years – with people who had been in the company five minutes calling Harold Slater and Clem Trotter by their Christian names.

Keith describes his first work experience:

I came into Hawera on the train and started work on the Tuesday after Kings Birthday. It was Opunake sale day and I went with Harold Slater and Jim Honeyfield out to Opunake to learn the job of stock clerk. When we arrived at the top of the Riverdale hill we stopped and Mr Slater made a remark that I never forgot. He said, ‘look out there in front of you boy – that is the greatest farmers’ country in New Zealand’. I still say he was right.

The memory of his first day at a sale as an employee of Farmers’ Co-op remained with Keith throughout his long, distinguished career.

I was the stock clerk, the auctioneer was Alf Lenz. Alf, who was on the last pen, opened his mouth and nothing came out. You take this pen – and of course it was the only thing I wanted to do …

In those days they had cabbage plants, geese, ducks, turkeys, pigs. The sale started about 10 o’clock and things like mattresses, furniture – you name it – it was in the Opunake sale. There was a big Maori population out there in those days and a big stock sale. It was raining and the book got wet and I was a

terrible writer – I am still no better – and I thought ‘I don’t like this – what a bugger of a job this is’. When I went home my dad asked, ‘How are you getting on?’ I said ‘I am not – I am coming home!’ He said ‘No you are not!’ And forty-five years later I was still there, thoroughly enjoying it.

Staff shortages during to the war meant early promotion for some, and shortly before his 19th birthday Keith was ‘put on the road’ as a junior stock agent. Over the next four years he gained valuable grounding as a stock agent, attending sales mostly in the south Taranaki area – Waverley, Patea, Opunake and Hawera. Young but eager to learn, he was sent out east of Stratford. Working in the remote back country of Taranaki provided him with many lasting memories. Although based in Stratford, he was responsible for much of the eastern back country, including Douglas, Huiroa and Tututawa. Two and a half years later, with the retirement of an elderly gentleman named ‘Pen’ Jenkins, Keith was posted to Eltham.

I really enjoyed working at Eltham. I was an agent in my own right, working under the guidance of the Hawera stock department. I was also very grateful for the help of the manager of the Eltham branch, George Cathie. He was a returned First World War man, who had very sound judgement. Although I had nothing to do with the running of the store, if I happened to be around at morning or afternoon tea time, I would take my tea and sit and chat with Mr Cathie.

He gave me a lot of good advice. The one piece which I remember in particular was when he asked me where I wanted to go and what I wanted to do. I replied that I wanted to be an auctioneer like Mr Slater, and he said ‘Keith, there is only one person who will put you where you want to be and that’s you. What you put out is what you get back.’ That was my goal from then on. I knew exactly what I wanted to do.

After three years at Eltham, Keith was transferred to Hawera to take over from Bill Ellingham, who had been promoted to the role of company credit manager. This single event helped him achieve his life-long ambition of becoming an auctioneer like his mentor Harold Slater, ‘the best auctioneer I ever heard’. His auctioneering role was interspersed with drafting clients’ sheep for the Patea Freezing works, but after a few years, other agents took over the drafting, leaving him free to auctioneer full time. He worked mainly in South Taranaki, but if there were bigger sales, also in North Taranaki.

A year or two before his retirement at age 60, Keith received a series of promotions, which saw him serve the company in a managerial capacity, firstly as the manager for South Taranaki, and finally as district manager. In his 46 years with the company, numerous characters stand out as being memorable, but head and shoulders above them all was again the inimitable Dot McCarthy. Keith recalls:

Dot was a trader based in Patea. He called around to the office at Patea one day to see the manager of the Patea Freezing Company, Jock Grant. Dot put a lot of stock through the works and asked if he could borrow one of our young agents, Kevin Gray, for a day or two. Kevin was working around the back of the yards in the stock-room, and Dot asked if it would he alright if he went around to see him.

Dot told Kevin that he had seen Mr Graham, and explained that he needed him for a day or two. He told him that he would also need to bring along his saddle and dogs, and that he would pick him up at 6am.

Dot picked up Kevin the next morning, and they seemed to drive forever. They got to Palmerston North, then Feilding, Dannevirke and Hastings.

‘Don’t worry boys, we’re nearly there’! Dot reassured Kevin and Joe, a young Maori boy who worked for Dot as a drover, who was accompanying them. They went on to Wairoa where they took delivery of 2,000 sheep. Kevin and Joe, along with the dogs, and the horses which Dot brought for them, had been on the road for two months by the time that they got the sheep to Patea.

Sometimes Kevin and his assistant would get a decent night’s sleep if they could put the sheep into salesyards along the way, but other nights there were no yards, so they would drive the stock up a side road. Kevin would sleep out in the open at one end of the road, and Joe at the other. Kevin Gray would have been in his early 20s then, and he became a very good agent.

As lovable a character as he may have been, Dot McCarthy was notoriously unreliable, as Keith explained:

I was at a sale one day when he told me that he would be sending some cattle to a sale at Kakaramea. He told me to meet him the next morning at 11am at the Spence Road corner, just this side of Kakaramea.

Ever the keen young agent, I arrived just before 11am, but there was no Dot McCarthy. There was a Landrover on the other side of the road, and I wandered over only to find a dog in it, asleep in the back.

I waited until noon, and then returned home as wild as hell! That night I rang Mr McCarthy – I always called him Mr McCarthy – I reminded him that our arrangement had been to meet that morning at 11am, at the Spence Road. I told him I had waited until noon.

‘Oh my God, Boy’, he said. ‘I was taken away elsewhere. I told the dog to tell you that I had to go elsewhere, and to ring me tonight’! You just had to put up with Dot. I probably sold three or four hundred cattle for him the next week, but he was unreliable.

Changes in the stock industry mirrored those in other sections of society and Keith says:

It’s hard to visualise now but there was 200 or 300 cattle would come out of the Hawera saleyards, go straight down the road, past the Railway Hotel straight down Collins Street and then at the end turn left to the south and down the main road towards Patea. The Patea Freezing Company owned what was known as the Patea Holding paddocks – 50 to 100 acres where Eustace used to be past Whareroa. On the Thursday they would stay there and cattle – some 700 to 800 – would come from other areas and on Sunday morning one mob would be driven to Patea by two drovers.

Doug Brookes was one of the top drovers in those days, a Maori chap and others included Bob Johnson, Roy Pratt, Charlie Gillingham, ‘and a swag of other drovers’. Farmers used to fatten Jersey cows in those days and make a reasonable profit. Selling them as a fat cow. We ate a lot of Jersey meat in those days. Apart from the decreasing numbers of stock, the major change in the industry was the introduction of transport, involving rail and trucking. Eventually trucks were able to transport eight hundred lambs on a truck and trailer unit. Droving, which had been an integral part of the stock and station industry since the introduction of livestock into New Zealand, became a practice of the past.

Company records show Keith’s retirement date as 1987. In fact 45 years after starting with Farmers’ Co-op on 2 June 1942, he continued on the company’s payroll working on a casual basis delivering matured debenture advices and soliciting renewal business until October 2007, 65 years after he started, a record of service second to none. From a stock clerk at Hawera, junior stock agent at Stratford, stock agent at Eltham, auctioneer and fat-stock drafter at Hawera, head auctioneer for the Society, livestock manager, district manager for South Taranaki and finally company operations manager.

For many the culture of this company created a deep-seated loyalty to the organisation. Although, in comparison to many others, Bernie Mann’s tenure at Farmers’ Co-op as a stock agent was somewhat shortened by a sequence of events, his contribution and continuing influence will remain part of the folklore of this company and of the stock and station industry of Taranaki. Bernie Mann’s interest in livestock began as a young schoolboy when, with his mates, he used to help out at the trucking yards at Hawera Railway Station. It was the 1930s, when Hawera, then a major stock centre, bore little resemblance to the town of today. Collins Street, for example, was the main stock

Keith Newland, Farmers’ Co-op employee 1942–2007. He progressed from stock clerk to stock agent, head auctioneer, livestock manager and district manager of South Taranaki.

route from the south, and the thoroughfare for hundreds of cattle and often thousands of sheep either heading or departing from the nearby Loan and Mercantile, Farmers’ Co-op or Newton King saleyards. He describes his early childhood:

As a small boy, I often used to run behind the cattle or sheep as they were driven along Collins Street, We used to finish up at the trucking yards at the Railway Station. From the trucking yards, some of my mates and I ‘graduated’ to the salesyards.

Even as a boy, Bernie’s ability to handle stock had been noticed by stock agents. He loved the work and relished the admiration of his peers:

I very quickly learned good stockmanship, which in those times was as much a matter of survival as anything else. As a small boy I learned the difference between good bullocks and bad ones, and I learned how to score bullocks. An agent might tell me to open the pen and let out the two-and-a-half-year-old heifers. The average little boy wouldn’t know what two-and-a-half-year-old heifers were, but after a while it came naturally. Then my Dad, who was a sawmiller, and the manager of George Simon and Company, a sawmill and big sash and door firm, bought me a thoroughbred horse – Miss Bardot. She was an ex racehorse, and I used to gallop her up Tawhiti Road and on to the Hawera Primary School. After school, if there was a sale on at the Loan and Mercantile saleyards I’d often call in to see if I could get any work.

Drovers such as Charlie Eastbury, Friday Watkins, Roy Pratt, or Mr Brookes, who took a particular shine to me, would often ask me to work with them. I was just a handy boy who could be called on to open and shut gates and, if I was lucky, they might shout me a pie in the canteen afterwards.

The unpaid ‘apprenticeship’ came to a sudden halt when Bernie, then of secondary school age, was admitted as a boarder to Wanganui Collegiate. In the winter term of his third year (1946), his father, who had fought with the New Zealand Mounted Rifles in the First World War, died suddenly from complications from a leg wound which he received in the Sinai Desert. He was in his early 50s. Bernie’s ambition to go on to Massey College, as it was then called, was dashed with the death of his father. He left school to look after his mother at home in Hawera. While he had earlier turned down an invitation from Newton King’s manager, Mr Les Carr, to join that company, Farmers’ Co-op general manager, C. G. Trotter, was more successful in his approach, as Bernie explained:

I was standing near a chemist’s shop at Haberfield’s corner, just across the road from Farmers Co-op, when Mr Trotter pulled up in his blue Austin 10 car. He must have come from drafting sheep, because I can remember he had blue raddle on his fingers.

Anyway, I think Mr Trotter was a mate of my Dad’s. He was a very straight-to-the-point sort of guy, who didn’t mince words. He opened the car door for me, and asked me to get in. He took me up to his office in the Farmers’ Co-op, and he told me that I was going to join the company as an office boy. He didn’t ask me – he virtually told me!

Bernie was probably too non-plussed to fully appreciate his good fortune. It was just after the war, and it was difficult to get a start in a stock and station agency. What jobs there were, were being held open for former employees who had left the company to serve overseas. Like most before him, though, Bernie had to start at the bottom. The role of office junior was a menial one – tidying up people’s desks, answering the phone and running messages. ‘It mightn’t have paid much, but it had one huge benefit’. He felt accepted. From time-to-time, Bernie was seconded to other branches of the Farmers’ Co-op, where he received grounding in various aspects of the company’s business activities.

Bernie Mann, Farmers’ Co-op employee 1946–73. Stock agent.

OLD TO BE SECRETS NOW

He gained an appreciation of real estate under the tutelage of George Ranford, and acquired an understanding of the mechanics of the company while working in the farm supervisory department under Len Newell and Lyn Bremer. Eventually he was promoted to the position of stock clerk, to work alongside another young man, ‘Lofty’ Henderson. Bernie’s time as a stock clerk spanned three or four years, and as for most either before or after him, it was a sharp learning curve!

Bernie was soon introduced to the ‘paddock book’. All livestock entries were recorded in the ‘paddock book’ in long-hand. In Bernie’s opinion, the system was more reliable than modern-day computers:

Someone would come into the office and say that he had sold 15 empty cows at a sale two years before, and my job would be to go to the Burroughs ledger machine and go through the man’s cards. You’d check that the man had sold 15 cows on the suggested date, and then you would get out the ‘paddock book’ to see what they had made and who had bought them. You can’t do that today with a computer. I know, because we’ve tried it!

Very early in his career, Harold Slater advised him of the benefits of wearing a hat. It shaded the sun from his eyes, but more importantly, when it rained, it kept the water off the books which he had to work from as a stock clerk:

I’d be all dressed up; it would be teaming with rain, and I’d be running out of hands. I’d have my sale book in one hand, recording with the pencil in the other, the name of the vendor, the name of the buyer and what the price was. Along with all of that, I’d be clutching delivery tickets. It was a work of art. Today, an auctioneer would have five or six clerks – they can’t handle it!

We’d have 6000–7000 bloody lambs at the Hawera lamb fair, and the pace would be on all day. It took me ages to learn how to hold my book, complete with carbon paper, so that it didn’t get wet. It might look easy, but you try writing entries in the rain, keeping up with the auctioneer, and then writing up a docket! On top of that, you had to get the address of the buyer, because the stock clerk was always reminded that this was his responsibility.

In his earlier days as a stock clerk, largely because of the nature of the work, Bernie’s favoured attire was a straw hat, a black-bush singlet, a pair of khaki shorts and sandshoes. Temporary pens would have to be erected at sheep sales, and this was the responsibility of the junior stock clerks. Posts would be driven into the ground with a mallet: ‘You got pretty good at it too. If you missed the post and hit your shins, you’d bloody near break your leg!’

On one particular occasion Bernie recalls acting as a ‘spotter’, where he had the dual role of spotting bidders for the auctioneer, and mouthing the sheep in view of the buyers, in order to verify the age of the animal. It was a large yarding and Arthur Smith and Harold Slater were the auctioneers. Bernie had already tried his hand at auctioneering at some of the smaller sales, and when one of the star entries, Mr Bill Dunlop’s four-year-old ewes, came up for offer, Harold Slater nodded to Bernie to conduct the sale.

My heart sank – Mr Bill Dunlop was a very strict man and not the sort to be mucked about with. I thought that the ewes should make somewhere around the three pound ($6) mark, so I called for a bid of three pounds. There was no bid, and I dropped it all the way down to two pounds ($4). I edged the bid upwards in half-crowns (25 cents) – two pounds two and sixpence; two pounds five shillings, two pounds seven and sixpence, and when I got it to two pounds 10 shillings, I dropped the increases to shillings (10 cents). On we went. Two pounds 11 shillings, two pounds 12 shillings, two pounds 13 shillings. Arthur Smith kept whispering to me to knock ’em down, but I was enjoying the moment!

Two pounds 15, two pounds 16, two pounds 17. Arthur Smith was getting very red in the face, and was nearly beside himself when I dropped the increments down to sixpences. ‘For Christ’s sake, hurry up and knock ’em down, we’ve got a bloody long way to go,” he pleaded. Then I dropped the increments to threepence, and worked the bid up to three pounds, two shillings. Well I could have dropped to pennies, but I wasn’t game to. By this time Arthur Smith had had a guts full and had walked off. I knocked the sheep down at three pounds two and sixpence.

Mr Smith wasn’t impressed, but I made a good friend in Mr Dunlop, who said that he would advise Mr Slater that I was to sell his ewes from then on.

It was at that same sale that Mr Slater accused me of being the worst-dressed auctioneer in New Zealand, and instructed me to attend the next sale in a collar and tie. I told Mr Slater that it was okay for him to make such an accusation, but that my day had started at 4am, drafting and penning sheep!

Bernie Mann may have lost his natural father, but in his formative years of training as a young stock agent he acquired four father figures. Each, in their own particular way, shaped the man and the type of agent which he became. Harold Slater was the first, who he described as a great philosopher and judge of character, an excellent auctioneer with a wonderful sense of humour and highly respected, but for all of this, was easy-going. The easy manner didn’t extend to casting a blind eye to any breach of company rules, however. Bernie recalls an occasion when, after being caught in a pub after hours, he was summoned to Mr Slater’s office: ‘It was a serious offence – you might as well have murdered someone! You got your name in the paper for being in the pub after-hours, and it was even worse for you if you were driving a company car.’

Arthur Smith, a graduate from Uppingham College in England, and who Bernie described in the kindest possible way as ‘a typical Pom’, was the second father figure. Razor sharp, he kept those working for him on their toes. Bill Ellingham, manager of the company for South Taranaki, and for many years Bernie’s boss, was the third ‘father figure’, and company general manager, C. G. Trotter, the fourth.

The Farmers’ Co-op had some wonderful clients, and I attribute a lot of this to Mr Trotter. He was a wonderful judge of character, and would back a man if he had three credentials: that he was a good farmer; that he had a good wife; and that he had a good farm. If the client failed in any of those areas, they would probably not receive Mr Trotter’s backing, and there are many third generation farmers still farming in Taranaki today who would not know that they are still on their farms only because Mr Trotter gave their grandparents his personal support.

This genial character of the South Taranaki stock and station industry, Bernie Mann, continued to hone his trade with the Farmers’ Co-op for 27 years, from 1946 until 1973, when he accepted what seemed an offer too good to refuse from trusted friend Ron Trotter, chief executive of the recently merged Wrightson NMA and son of Clem Trotter, to establish a Taranaki branch of Wrightson NMA. Although lost to the Farmers’ Co-op, Bernie continued to respect and admire the people who had influenced his life, and from a historical point of view his memoirs and reminiscences, too many to include in this profile will provide a significant record of some of the most colourful days of the stock and station industry. Bernie passed away on 9 January 2008, but will be remembered as one of the truly impressive characters of the industry.

Junior stock clerk is the earliest career memory of many long-serving stock agents. Barry Bishop was no exception and started as the junior stock clerk in the Hawera branch of Farmers’ Co-op in 1957, aged 23. Raised on a small dairy farm in Inglewood, he had always wanted to be a stock agent, and received his chance while working for the livestock transport firm of Clark and Rogers. The job, which was mainly of a clerical nature, brought him into regular contact with stock agents when he was working at sales. Barry applied to join the Farmers’ Co-op, and started work as the junior stock clerk under the tutelage of Llanfair (Lank) Lewes, the chief stock clerk. Arthur Smith, he recalls, was the manager of the dairying side of the

Barry Bishop, who commenced employment with Farmers’ Co-op in 1957 as a stock clerk and retired from his position of livestock manager, New Plymouth in 1997.

livestock division, while ‘Lofty’ Henderson, Keith Newland and Bernie Mann the Hawera-based stock agents.

A vital part of the work was canvassing for potential clients at the plethora of dairy factories which existed in Taranaki at the time.

On three mornings a week, at about 6.15am, one of the agents would pick me up and drive me out to one of the little dairy factories. It might be the Tawhiti Dairy Factory, or Normanby, Riversdale or Manutahi, and you were dropped there to canvass every farmer who arrived at the factory to deliver his milk. My job was to strike up a conversation to see whether the farmer had any pigs or cull cows which he might want to sell at an upcoming Hawera sale. Then about 8.30am the agent would pick me up and take me back to the office to carry on with the day’s work. There was no extra payment for doing anything like this.

Barry concedes that as a 23-year-old still learning the basics of his profession he was sometimes embarrassed approaching a farmer whom he didn’t know very well, but there was no room for coyness. It was a job which had to be done:

I found that some factories were better than others to go to because you seemed to be more accepted, and that farmers were friendly with you even if they didn’t deal with your company. It depended to a certain extent on your approach too. There were a few grumpy buggers around, especially in the autumn if there was a bit of a dry spell or if their production was dropping.

In an era well before the advent of calculators, Barry found being good at arithmetic, and readily able to work out commission rates of huge benefit. Promotion came after 12 months, when Barry Stewart, then the stock agent for Farmers’ Co-op based in Waverley, decided to take a trip overseas. Barry was appointed a junior agent and was sent to Waverley to work under the guidance of ‘Snowy’ Thompson. In those days there was very little dairying in the Waverley area. ‘It was basically all dry stock’, says Barry. He was based in Waverley for about 12 months and then Barry Stewart returned home and he was posted back to Hawera for a year. He was transferred to Patea, where 12 months later he married. His catchment area embraced Hurleyville, Whenuakura and Manutahi, and took in a mix of dairying and dry-stock farming.

In 1961 Barry was transferred to Ohura in the King Country, where the Farmers’ Co-op had opened a new branch office. Barry said: ‘Like most small, remote communities, the further you go back from the main road in these farming communities, the more they appreciate you and the bigger the welcome they give you.’

Being transferred to Inglewood after a five-year stint at Ohura, was like returning home to a major city. Barry concentrated mainly on working with dry stock, but a shortage of auctioneers in the area convinced him to try his hand at something different. It was a brave move for someone who had suffered from a speech impediment during childhood: he had once had a slight stutter but he wasn’t fazed at the prospect of speaking at pace in front of an audience.

You have to have confidence and be able to think on your feet a bit. A sense of humour helps as well.

I always remember there was one guy who tried to catch me out. He must have thought that I was trotting the price up on him, and he called out ‘where’s the bid, whose got the bid, where’s the bid? I replied don’t worry about it Fred. Mr Parker has got the bid.

‘Mr Parker’? he asked, Yes, Fred, I countered, Mr Nosey bloody Parker! Now carry on!

In 1983 Barry was appointed livestock manager based in New Plymouth. A year later, he was appointed rural financial services manager, with the responsibility of monitoring credit control. Looking back over 40 years in the stock and station industry, Barry Bishop says Taranaki Farmers’ Co-op can be proud of the fact that unlike many rival companies, they weathered the storm, and are still operating today. After forty years of service Barry Bishop retired in 1997. When expressing his personal views on the lot of the New Zealand stock agent he said:

It is very much a people job. That was the guts of the job, really. For every hard case or bloody rogue that you either didn’t or couldn’t get on with, you met ten other people who were appreciative of what you could do for them. It was the sort of career where you got great job satisfaction.

East of Stratford was the focus of the board as the company moved into its 31st year of operation in 1945. Tarata district had been serviced by the Inglewood branch of Farmers’ Co-op since 1916 and with continuing solid support from the community the time was now ripe for the Society to make a permanent and lasting material contribution to the district.

The first saleyards at Tarata were situated on a corner between what was the Tarata school and store. A one-acre block (section 50 of the Tarata Township survey), was purchased in 1892 by Inglewood stock firm Vickers and Stevens. The first sale was held at this site on 10 February 1903. Section 48 on the other side of the village owned by the Estate of R. Speck was sold to Vickers and Stevens and used as sheep yards in 1909. The following year Vickers and Stevens sold to Matthews and Bennett, Mr Matthews being a son-in-law of Mr Vickers. A Mr Gamlin became a partner in 1913 and in 1915 Mr Bennett withdrew from the partnership. World War I saw a decline in business and the saleyards were almost abandoned. However, in 1916 N. Z. Loan and Mercantile Agency Coy. purchased and operated the yards for almost two decades until they were purchased by Newton King Limited in 1934.

The Farmers’ Co-op directors received an invitation to meet with a gathering of settlers in November 1944. Mr Dickie reported he had visited Tarata in the company of Mr J. Gibbs and Harold Slater and had ‘been met by a representative gathering of settlers’ when the possibility of the Society commencing business in the district was discussed. It was recognised that it would be uneconomic to build a separate set of yards and a resolution was passed at the meeting that Farmers’ Co-op should endeavour to arrange joint sales with Newton King Ltd. ‘Sheep, ewe and lamb fairs were suggested, with an occasional cattle fair if warranted.’ It was considered that once a start had been made the Society would obtain a large portion of the business.

The question of erecting temporary accommodation if the Society were not able to make a suitable arrangement with Kings was also gone into, and after some considerable discussion it was moved by Mr P. Thomson and seconded by C. R. Sarten ‘That the question of holding Fairs at Tarata be left in the hands of the Executive and that Mr Gibbs be co-opted to act with them’.

A few months later, in February 1945, a section was purchased for the sum of £40, with a condition of the sale being that ‘if Farmers’ Co-op vacate the section or cease to use it as a saleyards they should offer it back to the original owner at the same money in the same condition as when purchased’. Negotiations were also being made to purchase an adjoining section of 2 roods 20 perches ‘leased from the Commissioner of Crown Lands under a yearly license by W. Ludermann who had agreed to forego his license’.

A piece of land being considered by the Farmers’ Co-op to construct saleyards was originally owned by Edward Olsen in 1889 and subsequently sold to Robert Paterson in 1911 and a further section ‘between the cattleyards and the river had been set aside in the original survey’. This was also purchased and the Society had received a Final Tarata Cattle Fair, 7 March 1986.

COURTESY OF THE TARATA SCHOOL AND DISTRICT CENTENNIAL COMMITTEE

letter from the Commissioner of Crown Lands stating that the Society’s application to purchase Section 35, Village of Tarata, had ‘been favourably received’ and that following three advertisements in local newspapers to notify locals of their intention and no objections being received, the purchase would be finalised at £50. Mr Wooffindin advised that ‘it had been anticipated the yards would be completed in time to hold a sale this season’ but would now be delayed as the original arrangements had fallen through. A plan of the proposed yards was tabled for consideration by the board, with a quote from H. Rowe of £456 to complete the work, including supplying the concrete. The Society would supply timber and complete any levelling of the site required. The total cost of the saleyards was estimated to be ‘about £900’. The work to build the Tarata Farmers’ Co-op saleyards commenced at the end of March 1945.

Considerable maintenance on the yards was approved in 1953, including alterations to the adjacent roadway to improve access and ‘bring the yards up to standard’. Stock sales continued throughout the years; however, cattle sales were discontinued after the autumn fair held on 7 March 1986 and the yards were dismantled with timber sold to raise funds for the Tarata hall. Sheep yards and sales continued until approximately 1996 and then the sheep yards were sold to Mac Paterson in 1999 and dismantled in the following few years. The timber, mainly Rimu and White Pine, was used to construct new cattle yards on the existing concrete pad.

Kohuratahi and Douglas saleyards were in ‘a bad state of repair’. The yards were now used jointly by the Society and Newton King Limited and the matter of renovation had been the subject of correspondence with Newton King as the amount of expenditure required to remedy the matter was considerable. Farmers’ Co-op still owned yards situated north on the left-hand side of the road adjacent to the railway line on the property of Ned Shewry. These were to be demolished and a valuation by Mr H. Wallath valued the timber at £282. 17. 6d. and estimated the cost of dismantling at £45. Mr Shewry was anxious to purchase the yards from Farmers’ Co-op but Newton King Ltd. were in favour of retaining the material to use in the present yards down the road. The board minutes stated: ‘If we decided to sell, it was therefore a matter of arranging with Newton King’s a price at which it would pay us and would be fair to Mr Shewry.’

Although the outcome was never recorded we can assume that Ned Shewry got his way because the yards are still on the property. Director James D. Law also reported on a conversation he had with the present proprietor of the store at Kohuratahi, Mr Stockwell, who was ‘prepared to consider a sale’, and he considered that further investigations would be an advantage. It was decided to send Mr Wooffindin and Mr Snelling to visit Kohuratahi to make further investigations. Following a meeting Mr Stockwell advised the Society that he had given ‘one of Newton King’s men verbally the first refusal on the business’, and in view of this he did not feel at liberty to negotiate with the Society at present. If, however, he decided to sell later on he would give the Society the first opportunity providing Newton King was not in the market. It was decided that as shareholders were well serviced from Stratford and the business available at Kohuratahi did not warrant another store, the matter would be left in abeyance at the present time. The Kohuratahi store continued for many years with a succession of owners, including Colin Hill, Keith Couchman, Brian Terry and Les Keith. However, although the Farmers’ Co-op were offered an option on the store in 1953, it was still considered too marginal. The Farmers’ Co-op thus never owned or operated a store in the district. Repairs and additions to the Matau yards were also completed to provide extra accommodation and it was reported that ‘repairs had been effected and carried out most economically’. Plans to upgrade the Douglas yards were approved by Farmers’ Co-op and Newton King Ltd. The estimate for the work was £2,350 plus £130 for concreting the small pens if required. It was left in the hands of the executive and in November 1945 it was reported that work on the Douglas and Kohuratahi yards was ‘well underway’.

Other saleyards around the province also came up for consideration with an offer from Firth Concrete Company of £500 for the former saleyard site at Stratford, inherited from the N.Z. Loan

and Mercantile Company purchase in 1942. The value of the property was considered to be between £700 and £800. Firth Concrete had a contract with the Government to supply tiles for state houses and the property was being purchased to accommodate this operation. Two thirds of Firths’ cement and other goods were purchased from the Society who also sold a large amount of their products and this was taken into account in arriving at a price for the property. It was agreed that the property be offered to Firth Concrete Company for £700. Mr Firth waited on the company at the February 1945 meeting and, after some discussion, ‘intimated his willingness to take the property at £700 cash, provided the Land Sales Court consented to the sale at this price and in the event of the sale not being completed he suggested a lease’. It was finally agreed by the board that in the event of the Land Sales Court reducing the amount of consideration to an amount not acceptable to the board they enter into negotiations for a satisfactory lease of the property to Firth Concrete Company. The Land Court approved the sale of the old N.Z. Loan and Mercantile saleyards at £700.

Out at Opunake the lease on the Opunake saleyard land from the Opunake Harbour Board had come up for renewal. Acting on behalf of the Society Mr G. W. Williams had failed to come to an agreement with the Harbour Boards’ representative and proposed to let the matter go to arbitration. The secretary requested that the matter be completed without delay, and he had ‘undertaken to do so without delay’. Reports circulated amongst board members regarding saleyards at various other centres in the province indicated that only minor repairs were required at Hawera where renovations had already been carried out, and repairs at the Kakaramea yards would cost £470. The Stratford yards were in good order. Waverley’s yards were in need of a loading ramp and the construction of this was left in the hands of C. R. Honeyfield, P. G. Bremer and D. G. Thomson. Urenui yards were also in urgent need of attention. Newton King’s had already arranged for plans

Farmers’ Co-op, Waverley Staff, 1949. Back row from left: Dave McGorrey, Charlie Pollard, Russell Hammonds, Jack Mickelson, Ted Ward, Snowy Thompson. Front row from left: Bruce Walker, Myles Sutcliffe, Ngaire Tremain, Pat Slater, Kevin O’Leary, Neil Fowler.

210

OLD TO BE SECRETS NOW

to be drawn up for the reconstruction of the yards which had been made available to the Society. The Society considered estimated cost of over £6,000, however, ‘not warranted’, and as there were no accommodation paddocks adjacent and the yards’ proximity to the school had been ‘a source of trouble to the School Committee and the Health Authorities’. An expenditure of £6,000 was out of all proportion to the returns that might be expected from the yards. The board resolved to arrange for representatives of the two companies, Farmers’ Co-op and Newton King, to interview the secretary of the Education Board at New Plymouth to solicit his assistance in an endeavour to obtain Income Tax Commissioner’s permission to treat a portion of the expenditure as repairs and maintenance in the event of yards being built on a new site. The deliberation over the Urenui yards continued for some months. The outcome is unknown.

The Society recorded its greatest progress ever, when it announced a record £2,000,000 turnover for the year ending 31 March 1946 at the annual general meeting. Mr C. D. Dickie, chairman, announced that it was ‘a year of more rapid growth than any other in its history’ and said:

When the difficulties at the Society’s inception were remembered, he thought it was deserving of every congratulation on the present sound financial position and on the policy of the directors and the management in safeguarding the future against the effects of inflationary values of stock. … As far as markets are concerned we know that our greatest customer, Great Britain, has suffered enormously during the war. Before the war Britain had been New Zealand’s only safe and stable customer, but today international competition in dairying was becoming keen, particularly from Denmark … There is no doubt that we shall have to face up to this increased competition and search for further markets.

Significant changes were made in shareholding when by unanimous vote the shareholders at an extraordinary general meeting at Hawera passed a resolution which would have the effect of making the Society more co-operative in line with the system of shareholding in co-operative dairy companies.

Instructions relating to the change had been advised at the annual general meeting two years earlier and the recent resolutions passed reduced the nominal value of each share held from £10 to £1, restricted the rights of shareholders to transfer shares and approved a system whereby shareholders were required to acquire shares in proportion to the volume of business transacted with the Society.

With all the goodwill within the ranks of the Farmers’ Co-op it was with dismay that Clem Trotter announced to the board that during the month of November 1947 a staff member who held the position of Hawera branch manager was to be charged with misappropriation of the Society’s funds, including cheques totalling £140, endorsed by a third party, ‘although in one case the endorsement had been torn off’. The Society’s solicitor, Mr Burns, stated that he considered there was a good chance of succeeding in a demand on the third party for payment ‘of at least £100’ and there was

Farmers’ Co-op Stratford Motor Garage.

a possibility of obtaining the full amount. This course was approved. The actual total amount of misappropriation is unknown. An offer had been received for the culprit’s house of £2,000 which would be subject to the approval of the Land Sales Court. The proposals submitted by Messrs O’Dea and McCarthy, and the alternative of making the offender bankrupt were thoroughly discussed and it was resolved that the executive committee be left ‘to act as they think best’. Eventually the house and furniture belonging to the staff member were sold for £1,750 and £300, with the Society receiving £80 of the furniture and a case was brought against the bookmakers who received some of the money misappropriated. The chairman, C. D. Dickie, was adamant that the whole matter would be exposed and they would finish the investigation ‘irrespective of the amount that might be recovered’. The man was jailed for the offence, but apparently he later became a well known and successful life-insurance agent in Auckland.

Advertisements to fill his position drew a large number of replies and following interviewing several suitable applicants the executive committee selected Mr S. P. Bill Girdwood for the position of Hawera branch manager. He took up the post at the end of March 1948 and remained with the company for several years until he took a position on the east coast. His wide experience as head fieldsman for New Zealand in the Lands and Survey Department and ten years service in other Government Departments, including a time in banking and farming, and several years experience with Dalgety and Co. in the stock department provided the Society with a highly experienced and capable staff member. During his relatively short time with Farmers’ Co-op he became a well respected and trusted branch manager with shareholders, staff and directors and considerable weight was lifted from the shoulders of the managing director.

Much was happening, with many alterations, additions and improvements being considered at many of the Society’s sites throughout the province. An offer to purchase or lease the Auroa saleyard site in 1948 had been received from Mr F. W. Norgate, who had purchased a house for removal. It was an opportunity for the Society to dispose of the facility and a motion to sell the property was carried. In addition, negotiations were underway with the Cape Egmont Dairy Company for the use of the Pungarehu store with a purchasing clause, and the Farmers’ Co-op Pungarehu operation opened in August 1948. The Society also acquired the business of Mr Cyril Moss to provide greater service to the shareholders in the area. Early returns showed a satisfactory position; in fact within one year such was the volume of business and large amount of cash handled in what was inadequate office premises attached to the operation, that the directors inspected the property with a view to making improvements at the earliest possible date. Plans were immediately drawn up with the consent of the Cape Egmont Dairy Company through Mr Brophy and alterations estimated to cost £9,000 were made to rectify the problem. Following negotiations, £5,000 was approved by the dairy company. Delivering groceries from the Waitara branch was also instigated due to a well known long-established firm closing down. It was estimated that an additional £10,000 in turnover would be required to cover the cost. The eventual location of the Stratford saleyards was still undetermined, pending the Railway Department decision. Health regulations were beginning to impact some of the saleyards owned and operated by the Society namely in the three locations of Manaia, Kaponga and Okaiawa. In February 1950 the closing of Okaiawa was now becoming a reality and the Society decided to place the matter before shareholders of the district at the next Okaiawa sale. They would advise shareholders that the Society would be willing to build a loading bank for use if they considered it would be of assistance.

Gospel of Co-operation

Shareholders at the 1949 annual general meeting of The Farmers’ Co-operative Organisation Society of New Zealand Limited held in Hawera endorsed a recommendation by the directors that the general manager, Mr C. G. Trotter, be appointed managing director of the Society.

Mr C. D. Dickie, in speaking to the recommendation, said that the board and the shareholders recognised to the full that the progress made by the Society was in large measure due to the outstanding administrative ability of the general manager.

There was little else the Society could do for him monetarily, and in view of the intention of the directors that he should pursue the business of the Society in other directions, and in particular by his visits to overseas countries, it had been felt that Mr Trotter should be given greater influence and status.

Mr Dickie said that he had the greatest pleasure, having considerable admiration for Mr Trotter’s abilities, in moving that the appointment be made. In support Mr J. Cocker remarked that ‘promotion for Mr Trotter had been well earned’, and ‘the shareholders could not deny that they and the directors owed much to his guiding hand through difficult as well as prosperous times’.

Nineteen forty-nine saw the last of original provisional directors of the Farmers’ Co-op depart when Charles D. Dickie said goodbye to his fellow directors in an emotional farewell. A. J. Corrigan wished the Society’s appreciation of Mr Dickie’s services to the Society be placed on record. Mr Corrigan remarked:

Few men today would be willing to risk their wealth as Mr Dickie had done in the support of an enterprise destined to have its difficult days but to become a flourishing organisation. Mr Conaglen said that Mr Dickie had benefited not only the Farmers’ Co-op and the immediate district but the whole of New Zealand, mentioning the ‘bobby’ calf industry that had been founded by Mr Dickie with the same foresight and courage.

On behalf of the staff and shareholders, Mr C. G. Trotter, managing director, said: He counted himself fortunate to have been associated with two such estimable chairmen as the late Mr Hunter and Mr Dickie, both of whom had been sure dependable and wise. At no time had Mr Dickie sought to take advantage of his position in the Society and in surrendering the chair he did so firmly establish the esteem and affection of every farmer in the district. If there were more Mr Dickies about, the world would be a much better place in which to live.

Charles Dickie responded eloquently in the spirit of one of the original South Taranaki founding fathers as he handed over the reins to Mr C. R. Honeyfield, the newly elected chairman of directors. Mr Dickie’s departure from the board had been hastened by ‘an eye affliction’, but he spoke of his continuing pride of the achievements of this evergreen enterprise. He likened himself to ‘the last leaf on the tree’. Apart from two years when he was in England in 1920–21 he had been associated with

the Society from the beginning and had succeeded the late Alex Hunter in the chair. He recalled the band of enthusiasts who, led by Mr George Buckeridge, founded the Society and how he had scored the second highest votes in the election of the first board, ‘when a Maori came to his rescue as a seconder’. Until then all his business interests had been in Wanganui. He said of the Hawera people: ‘such a lot of good sports to vote so solidly for me’, that he transferred and had remained a ‘Hawera man’, ever since.

Mr Dickie accepted a handsome specimen of Maori carving surrounding a desk inkwell and writing set, with best wishes for improved health and enjoyable retirement. Musical tributes followed the presentation.

F

armers’ Co-op was reported by some national media to have ‘a financial basis unique, as far as our information goes, in the business life of the Dominion’. Exceptional growth of the company during the past few years and the likelihood of further expansion prompted the board to reconsider many aspects of operating facilities. This would require considerable capital expenditure, which the Society wished to finance from its own resources. To promulgate this, an extraordinary general meeting was called on 8 March 1951 at the Buffalo Hall, High Street, Hawera to consider and approve increasing the nominal capital of the Society which had stood at £250,000 since the inception of the company in 1914 by £50,000 divided into 50,000 ordinary shares at £1 each, to make a total nominal capital value of £300,000. The motion was carried unanimously.

The new chairman, C. R. Honeyfield, had been a board member since 1923, nine years after the inception of the Society. He had, with other directors, steered the company through two world wars, depressions and a host of good and bad times, and had helped shape the company into the formidable provincial giant it had become. He witnessed huge changes in business procedure, the advent of motorised transport, electricity generation and modern communications as well as all the changes in society that modern facilities brought to the trading arena. His business acumen was born out of ‘hands on’ experience and from the pioneering gentlemen who surrounded him. Although there were times of indifference and sometimes acrimony, as there is in any organisation, in the main there was great respect between shareholders, the board of directors, executive management and staff who shared the bond of belonging and ownership. Trust and consideration was common to all who travelled on this co-operative journey, and loyalty was a hallmark of the organisation throughout its entire history.

Another long-serving stalwart of the Society was acting secretary N. C. (Norm) Blake, who sat in on his first board meeting on 28 February 1950. The position of secretary had traditionally been assumed by the general manager at board meetings, but with the elevation of Clem Trotter to the position of managing director, an opportunity to appoint a company secretary was created. Norm Blake commenced employment with Farmers’ Co-op in 1937 and worked his way up from the position of clerk to acting chief accountant. In 1945 he resigned from the Society, but two years later rejoined as the company’s chief accountant and continued in that capacity for the next 28 years.

Unbeknown to the recently appointed chairman, the Society was about to gather momentum far beyond its expectations. So successful was the year ending 31 March 1951, that even the auditor could not refrain from handing out bouquets and offering his congratulations: ‘It is no part of an auditor’s duty to congratulate the shareholders and management, but on this occasion I do so because the year has been such an outstanding one.’

Cecil R. Honeyfield. Chairman of directors of The Farmers’ Co-operative Organisation Society of New Zealand Limited, 1949–56.

OLD TO BE SECRETS NOW

A record turnover, which exceeded £5,500,000 in the past year’s trading, with a profit of £45,293. 11s. 2d. after making provision for tax, was indeed an astounding result considering that only five years earlier the Society had congratulated itself on reaching the turnover figure of £2,000,000. The profit, with £20,427.1s.10d. brought forward from the previous year, made a grand total of £65,720. 13s. 0d. The annual meeting of shareholders agreed to distribute this by paying the shareholders a dividend at a rate of 3¾ per cent, which would absorb £9239.14s.0d., transfer £35,000 to the general reserve, with the balance of £21,480.19s.0d. to be carried forward. A highlight of the Society’s operations was the payment to trading shareholders of a record amount in rebates, 37 per cent in excess of the previous year’s amount. The chairman stated that ‘shareholders during the past 15 years had received by way of rebate a sum equal to their capital plus 50 percent and in addition had received dividends averaging 4 per cent’. He also noted that the financial position of the Society had been strengthened by increasing the reserves by £148,647 from £27,834 at March 1936, to £176,481 at March 1951. He continued by saying that: ‘This was a record to be proud of, and by working together the future progress of the Society was assured.’

Remarkable figures had been achieved despite difficulties on the waterfront and the strike involving the freezing works, which included a complete cessation of wool sales and the hold-up of fat stock on farms. These labour issues caused considerable havoc amongst the farming community when many of the Society’s shareholders who normally traded on their own financial resources found it necessary to obtain temporary assistance from the Society. The chairman revealed further details that embellished this glowing and highly satisfactory financial return by advising shareholders that the Society had goods which it had already paid for aboard vessels with a value of £130,000. The higher turnover was to some extent attributable to increased trading by shareholders and the higher prices paid for general goods, wool and livestock. While there had also been a shortage in some commodities, this did not relieve the space problems at many of the branch offices. To assist with the purchasing and distribution of goods, a new subsidiary company, Taranaki Farmers’ Wholesale Limited, had been formed during the year, with shares being held by the Society and the West Coast Mortgage and Deposit Company. The company was registered as a wholesaler and was undertaking all importing and distribution of hardware and groceries for the parent company Taranaki Farmers’ (Wholesale), formed in 1950. It also traded with other retailers on a wholesale basis. The warehouse of Messrs Burch and Company in New Plymouth had been purchased as a permanent home for the new enterprise.

Rampant growth and continued under-capitalisation left the Society no choice but to again reconsider the capital of the company. Just over a year ago the nominal capital value had been increased from £250,000 to £300,000 and the directors were now seeking to approve a further increase from £300,000 to £600,000. The Farmers’ Co-op was a large importer of fertilizer and was required to pay for importations as soon as the commodities were loaded on vessels overseas, sometimes three months before taking delivery. Actually the Society had always been undercapitalised and this had hampered flexibility and growth. In addition, the high price of goods, the general inflationary trend and the waterfront strike had resulted in the locking up of a large amount of capital in goods in transit.

Throughout the past few years consideration had been given by the board to providing managing director Clem Trotter with some much needed support and assistance. His workload had increased enormously and a decision was made to appoint Mr H. F. (Henry) Wooffindin to the position of general manager. He had been an integral and energetic force in the growth of the New Plymouth branch and the surrounding districts and would provide the managing director considerable support as the Society continued to position itself into almost every trading possibility available in the province. He had tasted an extended period of management from January until October 1950 when Clem Trotter was invited to be part of a delegation to attend a J. O. (Joint Organisation) Wool

Marketing scheme five-year review in London, and he was absent from New Zealand for a period of some nine months. While in Europe he made a variety of contacts in the interests of Farmers’ Co-op and also had an extended holiday with his family. Clem Trotter’s son, Ron, recalls the adventure: I resigned my stock agent’s job to accompany my mother to London by ship. We planned to arrive at the end of the conference in early April. We had a flat in London as a base and I tagged along to most of his business calls. We visited Smithfield Market and called on Vesteys and Borthwicks. Mr Chisholm, the London manager of the Meat Board, was ex FCOS. My mother was invited to launch a ship for the Blue Star Line that was the Vestey shipping subsidiary. We also visited the N.Z. Loan and Mercantile Head office and Dalgetys and the Austin factory. Dad and I spent several days in Sweden and Denmark as guests of the Farmers Co-operative organisations servicing farmers. In Germany we visited a new German factory producing farm tractors and machinery.

Blue Star Line, a subsidiary of the Vestey Group, had been associated with New Zealand since 1920–21 shipping meat to the United Kingdom. In 1933 Farmers’ Co-op was appointed chief agents for Taranaki and the association with the company culminated in a long and lasting friendship between Clem Trotter and the Vestey family. The first ship serviced by the agency was the Tuscan Star and in the early days Farmers’ Co-op was responsible for both the New Plymouth and Wanganui Ports. Due to the difficulties of navigating the Wanganui River bar, visiting ships were left in the ‘roadstead’ and loaded by lighter. Apart from dealing with inward and outward consignments of cargo, Farmers’ Coop were also shipping providores and responsible for the ship’s husbandry. At the peak of operations in the late 1950s the number of ships serviced rose to 26, though with a change in loading patterns and larger and fewer ships the number dwindled. On 31 December 1968 with the amalgamation of Blue Star and Port Line the Blue Star Line agency arrangement with Farmers Co-op came to an end, and with this came the resignation of the well respected chief clerk, Mr W. M. Spedding, who was re-employed as assistant manager for Blue Star-Port Line at New Plymouth. The Company’s association with Blue Star continued with shipping wool from the Wool Store at Wanganui.

Weathering the storm and achieving stability became the challenge and focus as the Society entered the feisty fifties. Never before had the Society witnessed such a rapid expansion of business as that over recent years, and this meant considerably more capital was required to enable trading to continue at the same frenetic pace.

Year

Turnover in merchandise, motor –The previous total plus cars, motor accessories, parts, turnover in wool Repairs etc. and Auction Dept.

1946 1,575,393 1,933,997

1947 1,787,667 2,077,429

1948 2,083,452 2,779,203

1949 2,280,131 2,950,021

1950 2,690,437 3,484,380

1951 3,346,062 5,564,156

10 months to 31/1/1952 3,060,958 5,564,156

Although the company had never been in a stronger position, with high prices being received for dairy products, meat and to a lesser extent wool, the high cost structure could only be sustained by expanding output. In order for the Society to have the best independent advice available, the auditor, Mr W. G. Watts, was instructed to consult Mr E. D. Wilkinson of Wilkinson, Campbell, Christmas and White, Public Accountants, Auckland who was an acknowledged expert on company finance. More money was required urgently and after a meeting of the executive Mr Trotter visited the head office of the Australia and New Zealand Bank Limited in Wellington to discuss the Society’s overall position and requirements. The bank agreed to grant the Society an accommodation of £500,000

TO BE SECRETS NOW

with the right to draw up to £625,000 prior to 31 March, such overdraft to be reduced to £300,000 by the end of September. This reduction of £200,000 was conditional on the Society issuing shares for this sum. As security Mr Trotter had agreed to give the bank a new debenture and first mortgage over the Society’s freehold and leasehold properties. However, in view of a suggestion made by Mr Wilkinson that it might be desirable to obtain long-term finance from other sources, the local bank manager of Australia and New Zealand Bank agreed to recommend to his head office that the mortgage should remain unregistered for a limited time so that the matter could be revisited after Mr Wilkinson’s final report. The board was pleased with this outcome and felt that they had been treated fairly. The bank was informed of future plans relating to the issue of shares. In initial discussions Mr Wilkinson had expressed the opinion that the Society was very under-capitalised.

A ten-page report relating to the ‘Proposed increase in capital of your company’, dated 18 March 1952 from Ernest D. Wilkinson, received a mixed reception from Clem Trotter, who was not wholly impressed with the recommendations proposed and placed his reservations in a note to the directors two days later, on 20 March:

Attached hereto please find a few comments on Mr Wilkinson’s suggestions on proposals for improving the financial structure of the Society.

It does appear that Mr Wilkinson has overlooked the advantages under which co-operative companies are able to operate, and the advantages that can be derived from the payment of rebates to their shareholders.

If Mr Wilkinson’s suggestion, which he recommends should be adopted, is adopted, the shareholders are to be asked to find £59,000 more than in the alternative scheme by way of new capital, and the company will immediately pay £35,000 of this sum to the commissioner of taxes. From a practical point of view, and the shareholders’ point of view, this does not appear to me a course that the directors can adopt.

The whole success of the scheme depends upon the number of new shares we can sell to our present shareholders or clients who are desirous of becoming shareholders, and while we are optimistic it would be well to bear in mind that since March 1938 we have only sold Share Capital totalling £1370: all the other additional capital has been from shareholder rebates.

The general manager’s ‘few comments’ turned into a full analysis of the Society’s trading and financial arrangements. This analysis and Mr Wilkinson’s report was read by Mr Trotter to the board a few days later, which then set out two alternative proposals:

Mr Wilkinson definitely advised against the issuing of preferential shares, but recommended the payment of a 5% dividend, the issue of 150,000 new ordinary shares, and that £65,000 of the amount to be paid by the way of rebates should be distributed in shares. Mr Blake’s comments on the report were also read to the meeting.

The whole matter was thoroughly discussed by the directors and it was proposed that the 150,000 new shares should be offered to the shareholders for cash with the suggestion that they at least double their holdings. The chairman stated that the members of the executive committee had already undertaken to double their holdings, and all other members present expressed their willingness to follow suit. Forms were prepared so that applications for shares could be taken at the extraordinary general meeting to be held on Thursday 27 March 1952. They knew it was questionable that the whole of the shares could be disposed of to existing shareholders, but a dividend of 5% free of tax, should, they felt, attract outside buyers, although the shares would not be put on the open market. In the end the portion of rebate that would be paid out in cash would depend on the response received, but it might be necessary to distribute the whole in fully-paid-up shares. There was a general feeling that shareholders would appreciate the necessity at this very crucial time in the Society’s history of supporting their own organisation. In the past large sums in rebates and

dividends had been received and Clem Trotter said that the only alternative to increasing the capital ‘would be to contracting the business, which would be unthinkable’.

Mr Law suggested that managers at various points throughout the Society’s offices and branches endeavour to call on bigger shareholders to make sure they attend the forthcoming extraordinary meeting. The board also discussed questions and criticisms that might be raised at the meeting.

They were not disappointed, when the viability of their own company was at stake, shareholders never failed to turn out in numbers and over 200 shareholders greeted the directors at the Buffalo Hall, High Street, Hawera. The increase in capital from £300,000 to £600,000 was approved, and that such new shares be under the control of the directors to dispose of, issue and allot the same to such persons and on such terms and conditions (and either at par or at a premium) and at such times and in a manner they may think fit. The increase was divided into 300,000 ordinary shares at £1 each. The resolutions were passed unanimously. The enthusiasm displayed at the meeting would have led the directors to believe that shareholders would take up a good portion of the authorised new capital. This, however, was not the case and, following a circular and general appeal, only £14,026 was sold. The general manager recommended that it be returned to the shareholders.

Farmer shareholders were fully aware of the current difficulties in relation to the stockpile of wool from the previous year and the unprecedented rapid expansion of business. Inflation as well as the waterfront strike had resulted in locking up a large amount of capital in goods in transit, a situation that was not of the company’s making but that placed a huge amount of pressure on the directors and management. This period of growth was to be one of the most demanding but eventually one of the most rewarding for Farmers Co-op’s general manager Clem Trotter. Few others would have had the foresight and intellect to steer what had become one of the largest and most successful trading enterprises operating in New Zealand, through a mire of complex trading conditions.

A complete review of the previous year’s operations was placed before the board, with ‘a guide to the future in the hope that it may be of assistance to us in arriving at any decision as to policy’. Clem Trotter had compared the past six years and capped it off by producing some quite extraordinary figures that were almost too good to be true. He summarised his report and in particular the past two months trading to 31 March 1952:

The turnover for all departments for the two months was £1,332,000, so that the sum collected was less than £2000 short not only of covering the amount we had placed on our books but also all the advances made during the same period.

Car sales, as already stated accounted for £200,000 of the turnover, and of this sum only £2,920 remains on hire purchase agreement. …

These amazing results were only made possible by the untiring efforts of our staff, and without singling out any individual for special mention as all Branch Managers, Chief Executive Officers, the Staff generally did a wonderful job of work and are still doing so, I feel I should especially mention the staff of the motor department. They are working under high pressure and great difficulties. Not only were they faced with the difficulty of getting the vehicles discharged from the ships, but there were no railway trucks available after the cargo was discharged and all our built up cars and commercial vehicles were uncased and assembled in an open yard at Petone and were ferried from there to Hawera. The men worked long hours in the workshops, greasing bays, and in the garage without complaint and our superintendent and motor managers are entitled to our gratitude.

His report was clearly written with a sense of relief and sincere gratitude. To be more precise, the cash intake over and above what had been going out was in the region of £300,000 better than the branch estimates of what could be achieved. The branch managers could not have anticipated the substantial increase in turnover in February and March. Neither could they have known that the Society would collect such a substantial volume of money in the same period. Mr Trotter also said that had the branch managers budgeted on the basis of the actual

results the figures would not have been accepted. He said, ‘I am certain the most optimistic of us would not have thought it possible.’

It was in the end, as far as the Farmers’ Co-op was concerned, a race not only to sell goods but to collect the cash while it was still available and clear the goods without having to cut prices. It was estimated that in the 1952 calendar year £1,500,000 had been invested in motorvehicles alone in Taranaki and this money, except that of the traders’ profit, had gone out of the district. It was considered that most of the money used to pay for vehicles had largely come from past savings or had been withdrawn from the Post Office Saving Bank and from credit balances at the bank.

The Society also anticipated that due to wholesale cancellations, the manufacturers in New Zealand would give prompt delivery of goods, whereas in the past, in order to get delivery orders had to be placed six to twelve months ahead. In reviewing the purchasing situation and all other commitments, many orders were cancelled, except those for which it was anticipated a reasonably early sale would eventuate. Stocks of goods at branches were also reviewed and any surplus was transferred to other retail shops which resulted in rapid liquidation. The end result of this huge reorganisation of trading and continued monitoring of purchasing, sales and financial arrangements enabled the Society to overcome what had been one of the most difficult periods in its history. It would not be the last, with the resilience of this provincial titan being tested on numerous occasions as the century progressed. Much of the Farmers’ Co-op’s strength and ability to survive was assisted

Lamb fair, at Hawera Saleyards, Glover Road, 1952. Front from left: Graham Adams (stock agent), Arthur Smith (auctioneer), Albert Chong (stock agent), Harold Slater (head stock department auctioneer). Back from left: Bill Ellingham (squatting), Bernie Mann (standing on rail), Charlie Blair, Jack Brewer. Others unknown.

by its isolation and geographical position in New Zealand and the area’s relatively small population. These factors continued to create a highly parochial and protective shield that would be the saviour of a number of other enterprises and establishments in Taranaki in the years ahead.

At the 1952 annual general meeting Clem Trotter said that some of the difficulties the Society was facing were caused by ‘a large flow of goods into the country’ and due to the hold-up in imports as a result of the waterfront strike we had huge quantities of goods arriving and due to arrive. … Practically every other importer in the country was in the same position but we were fortunate in obtaining from our bankers, with the consent of the Reserve Bank, accommodation to cover every possible commitment. Great difficulty was experienced owing to the congestion of our harbours in getting goods off ships, and further delays were caused due to the fact that the railway system was not able to cope with the traffic, and serious difficulty was experienced in getting the goods into warehouses for sale. I am happy to say that most of these goods have been converted into cash.

He went on to explain that the banking system and bankers in general during his term in office had never refused a request from the Farmers’ Co-op. It was an indication that they had faith in the Society’s stability. He also said: ‘we have never once in the whole of that period made a commitment we did not keep’. The Society had already increased its authorised capital from

Waitara branch store and staff December 1955. Back row from left: R. Skemp, Doug Hills, Neville Nickson, Terry Burgess, Cliff Best, Gordon Allen, Peter Lucas, Des Partington, Don McLeod, Reg Parli, Basil Brown. Front row from left: Ron Lenz, Ern Smith, Arthur Chadwick, Alan Street, Lois Popenhagen.

COURTESY OF GORDON ALLEN

£300,000 to £600,000. Although they did not propose to issue more than £150,000, the intention was to give every shareholder the opportunity to subscribe. The general manager continued by saying that ‘the response, however, was not so good as might have been expected’, mainly due to the fact that restrictions in bank credit had an effect upon some of those who may have been willing to subscribe. The directors therefore decided that a substantial portion of this additional capital would come from profits of the Society and this would be achieved by declaring rebates amounting to £125,000. At the same time the directors increased the dividend by granting a bonus of 1¼ per cent. The shareholders who subscribed were notified that the Society intended to retain its co-operative basis, and they could have their money back, plus interest, if they were unwilling to put it in on this basis. Mr Trotter said,

there had been several letters from shareholders complaining about the allotment of bonus shares as a substantial part of this year’s rebate. In each case he had analysed the account of the shareholder to ascertain what capital had been put into the Society, and what amount had been drawn out by way of dividends and rebates. The benefits that accrued to every one of them were such that he concluded the Society had to preach often the gospel of co-operation.

Throughout the 1950s a tight rein was kept on the financial infrastructure of the Farmers’ Co-op, with ongoing appraisals and analysis of all branches and departments and the results being tabled at board meetings. It was a matter of adapting to meet the ongoing challenges and changes within the commercial sector. The year had been demanding and had called on everyone connected with the Society, whether clients, shareholders, staff, agents, executive management or directors, to put in their best effort. Directors also deliberated over a number of other important matters, including resiting the Stratford saleyards, which required considerable negotiation and discussion, with public meetings and hearings with the Commissioner of Crown Lands and Stratford Borough Council regarding the Esk Road location. Finally, after 11 months, on 27 November 1952 the purchase of a section on Esk Road was agreed to and resolved, with the presentation of specifications of yards and the road. A survey of the ground still had to be completed and it was arranged for either Mr Buttress of Hawera or Mr T. A. Urwin of New Plymouth to undertake the work. The County engineer had given his assurance that there was a plentiful water supply. On 30 September 1952 an invitation to the directors to be present at the Esk Road saleyards on 7 October at 11am, was received with pleasure when Newton King Ltd., and Farmers’ Co-op would hold a joint sale. Mr Law expressed the hope other directors would take the opportunity to be present at the opening. In fact the yards were in use prior to that date.

The value of insurance cover on Society buildings at this time was £156,565. In 1946 the Company had purchased premises on Tasman Street, Opunake and alterations were made to the premises. The proposed lease of ‘Hills Store’ at Wanganui to the N. Z. Wool Disposal Commission was arranged in 1949, bringing in a ‘very handsome return for the original outlay’. Number 2 Wool store was also purchased at Wanganui. Other projects continued in 1953, including the construction of an oil store at Hawera, saleyards alterations at Inglewood and Urenui and the purchase of property at Stratford and Opunake. The Waitara site on McLean Street was also purchased and an accommodation facility acquired for staff at Pungarehu. Extensions were completed to branch stores at Kaponga and Opunake and a ‘modernisation’ of the Stratford branch was undertaken in 1955.

The three subsidiary companies, Nolan’s Buildings, West Coast Mortgage & Deposit Co. Ltd., and Taranaki Farmers’ (Wholesale) Ltd., were all in a profitable position and operating in the best interests of the parent company.

Waitara branch came under the spotlight when Mr Laurenson, architect, submitted plans and sketches of the proposed new building at Waitara. Unfortunately the site presented a number of difficulties. It was in a very busy part of town and the proximity to the river made the question of

foundations ‘of paramount importance’, with a ground test providing a definite opinion on how they would proceed. He considered the present buildings would only have a short life and ‘as the site was within the brick area’, the new building would have to comply with Borough bylaws in the matter of materials. There was insufficient room for petrol pumps as the Council was adverse to kerbside pumps.

The building was to be erected in two phases so that one building could be completed before the other one was removed and business could be carried on with the least possible disruption. The fact that petrol pumps would not be available for shareholders became a stumbling block and consideration was given to the possibility of operating a separate bowser station. In the end the question of the rebuilding on the present site was left in the hands of the executive committee. Two test bores for foundations at the Waitara site were not satisfactory and Mr Laurenson suggested that the Society obtain expert advice before proceeding with the building. In the meantime the Church of England had decided to dispose of property on the main street, where the vicarage stood. It consisted of a half-acre section on a corner opposite the Post Office. It was in a good position and considered excellent for the Society’s purposes. Being able to purchase the site was not a foregone conclusion as although the trustees of the Church Property Board were prepared to meet and discuss the matter with directors the final decision would lie with the board in Hamilton. The management was authorised to purchase the half-acre section from the Church of England.

Nine months later, on 7 August 1953, the chairman advised that the Society had been successful in obtaining a twenty-one year lease of the church property at Waitara, with a perpetual right of renewal at valuation. On 27 October 1953 plans for the building were tabled and it was resolved to proceed immediately. Tenders were called and the contract went to the Williamson Construction Company. Three years after the board had discussed rebuilding the Waitara store – the target date for completion was set as the end of November 1955. Mr Trotter had approached the Prime Minister Sidney Holland to perform the opening ceremony. The new building was finally opened on 2 December 1955. Mr Chadwick was appointed to take charge of the produce department and a branch manager had been appointed. The vacated Waitara premises were eventually sold to Messrs Campion & Bolton for £3,200 cash.

The explosion of trading activity was now being felt everywhere, with storage becoming a significant problem throughout the branches. New Plymouth branch had reached its capacity for accommodating the ever-increasing volume of goods. Mr Wooffindin reported to the board in April 1950 that a shipment of hardware arriving would necessitate acquisition of extra storage space and he was negotiating the lease of a property in Molesworth Street belonging to J. Wilson. There was some concern that Mr Wilson’s bacon curing process may adversely impact on stored goods so it appears that this option was not taken up. The question of the New Plymouth accommodation was now a major item on the agenda. A property on the west side of Devon Street belonging to Burch & Co became available and was purchased. An adjoining property owned by Mr Lightband was also acquired and this would provide enough room for all the other departments in the New Plymouth branch. Within a few months a considerable amount of hardware was stored in the building. News of Farmers’ Co-op’s Devon Street property purchase soon reached the ears of the New Plymouth City Council and a letter was received from them wishing to know if the Society intended to vacate the Courtenay Street premises, and if so what price was Farmers’ Co-op asking. The response from the Society was that it intended to consolidate business on the Courtenay Street site, where they were already established and merely use the Devon Street property as additional storage space.

Response from the Council was almost immediate. A further letter embodied a resolution passed at a recent meeting in which the Society was asked if it would be prepared to discuss with a representative of the Council the question of selling the Courtenay Street property. In an informal discussion with two Council members the suggestion had been made that the Council might exercise

222 TOO OLD TO BE SECRETS NOW

their right to acquire the land under the Public Works Act. Mr Trotter and Mr Wooffindin met with members of the Council, who requested that their valuer and officers inspect the building. Mr Trotter agreed to the inspection, but said that this must not be regarded as evidence that Farmers’ Co-op were willing sellers, and that before they could consider a sale they must be assured that a suitable alternative site was available and that their shareholders would not be prejudiced. The old wooden St Andrew’s Presbyterian church building, on Devon Street, purchased in May 1947, for £5,750, along with a section valued at £2000 currently used by St Andrew’s Scout Troup as a hall, and an old house situated on Gill Street on a property adjoining the Devon Street property were also available. It would then only be a matter of securing a property owned by McLeod & Slade to acquire the whole block. Over a year had elapsed and the opportunity arose to purchase Burch & Co.’s Gill Street property. The sale was completed at a cost of £36,000, which was considered ‘most reasonable’.

In July 1951, members of the New Plymouth City Council visited head office at Hawera to discuss with the Society the purchase of the Courtenay Street property. The selling value was placed at £18,500:

Clement G. Trotter with other public figures of the 1950s in published cartoon.

COURTESY

TROTTER

It was felt that taking all the circumstances into account, it might be better to deal with the Council while they were anxious to purchase and it was possible for us to make suitable arrangements with regard to tenure, than wait and risk having the property taken compulsorily.

Negotiations with Mr P. Stainton from the New Plymouth City Council revealed the Council would have preferred to purchase about twenty feet of frontages on Courtenay Street for street widening purposes but realised that this would not be acceptable to the Society and proposed to negotiate for the purchase of the whole property. There was, however, a wide difference of opinion on the market value of the property. The Council valued it at £15,000, whilst Farmers’ Co-op’s price was £26,000. Mr Wooffindin was to discuss this with Mr Stainton, but a stalemate followed when the Council would only agree to pay £17,000. Although this sum was very close to that assessed by the Society’s independent valuer, it was felt that the property was a valuable one which might even increase in value if, at a later date, the Council should decide to take it compulsorily. Payment would have to be made in cash and the Society would be running very little risk in allowing the matter to remain in abeyance.

Negotiations continued over the coming months. The Society questioned the Council on existing by-laws affecting the erection of a building on the Courtenay Street property and learned that the New Plymouth City Council intended to widen Courtenay Street. Any building on this site would have to be set back 20 feet. Mr Laurenson had been asked to draw up plans for both the Courtenay Street site and a building on the Devon Street site. The end result of his report on the Courtenay Street site was that ‘the foundations were good, but that the restricted area would make a suitable layout almost impossible’. Also, when the area required for widening the street was taken by the Council, the boundary would be well below the street level, and any building erected would require substantial and extensive retaining walls, greatly adding to the cost. It was decided to focus on the Devon Street site. The time was ripe. It was May 1953 and the directors spoke of making provision to accommodate a drapery department and tearooms, as well as offices for letting. In fact there was so much excitement about the prospect that it was suggested that there might be merit in offering a prize for the best design.

Eventually architects were instructed to draw up plans, but building would probably not commence for at least a year. Mr Laurenson was in fact overwhelmed with work and a couple of years went by without further progress on the Devon Street building, until June 1955 when Mr Porter of architects Porter & Martin, Wellington attended a meeting of the board with a consulting engineer to table plans and demonstrate with block models various suggestions for the building. Following discussion they were asked to prepare a plan of the first stage of the building operations for submission to the directors.

Enormous growth had taken place within the past ten years and the Society had become the largest and most progressive trading company in the province. The future seemed assured and in this balmy climate of self-satisfaction and confidence it was not surprising that the Society would tackle the most ambitious of all its initiatives since inception. New Plymouth had become a popular city and the nucleus of the provincial population, and there appeared to be great opportunities for future expansion. In accord with a philosophy of being everything to everyone the concept of building a large departmental store seemed a natural and popular progression. It was now a question of raising the necessary finance and getting consent from the New Plymouth building controller. The result of these applications would determine the future of the Farmers’ Co-op New Plymouth operation. A mortgage for the project was raised from the Mutual Life & Citizens Assurance Company, who made £125,000 available at five per cent, plus a repayment of capital of £5,000 a year. The interest and capital repayment was equivalent to a rate of nine per cent per year. The mortgage was for five years and would then be subject to review.

Tenders closed for both the main building and piling contracts on 17 December 1956, with architects Porter & Martin advising the tenderers for both contracts.

TO

Main Contract:

SECRETS

(1) Chas. Luney Ltd. £247,791.0.0.

(2) Roebuck Construction Co. Ltd. £262,557.17.9.

(3) Williamson Construction Co. £264,449.0.0.

(4) Boon Brothers Ltd. £281,836.0.0.

(5) Jones and Sandford £283,056.0.0.

(6) W.M. Angus Ltd. £293,651.0.0.

(7) J. L. McMillan & Co. Ltd. £296,764.0.0.

(8) Fletcher Construction Co. Ltd. £297,661.0.0.

Messrs Porter & Martin recommended to the board the tenders of Messrs Chas Luney Ltd for the main contract (£247,791.0.0) and Cementation Co. Ltd (£14,063.0.0) for the piling, stating that they had excellent reports of Messrs Luney’s work and considered their advanced methods and general efficiency enabled them to compete more favourably. Cementation Ltd would be able to complete the piling in 14 weeks as against six months required by the next tenderer. Items not included in the contract would amount to a further cost of £30,600 and this did not include the provision of an automatic sprinkler and fire alarm system. These two items ‘were not considered essential’, although the board realised that provision of both would be raised by the city council when plans were submitted for approval. Both contracts were approved by the directors, who were unanimous in their opinion that Porter & Martin had done an excellent job and it was suggested that their services might be used with advantage to reconstruct Nolan’s Buildings in Regent Street, Hawera, which was currently under consideration.

Demolition of the Presbyterian church and other buildings commenced almost immediately and a proposal to erect a two-storeyed garage on the site of the Hotel Cargill, on Gill Street, adjoining Farmers’ Co-op’s motor showroom in Devon Street was also considered. Eighteen months later the board was offered another site – Roebucks – which was thought to be a better proposition. With work on the main building project now well underway, leased premises occupied by the Home Appliance Department also came up for consideration. With the lease coming up for renewal, and its close proximity to the new complex, purchasing the building seemed a good move. Devon Street property values appeared to be increasing and the Society exercised its option to puchase the property.

Taranaki Harbour Board office at New Plymouth hosted the 7 September 1956 board meeting and farewell function for retiring chairman Cecil R. Honeyfield who had chaired the board of directors for the past seven years. The meeting provided an opportunity for board member H. E. Blyde, also a member of the Taranaki Harbour Board, to take the directors on a conducted tour of the port facilities at New Plymouth. Afterwards the incumbent chairman of the Society, Mr W. O. Williams, presented Mr Honeyfield with a wrist watch in recognition of his services to the Society. Clem Trotter presented Mr Honeyfield with a Parker 51 pen on behalf of the staff of the Society. In Mr Honeyfield’s reply he noted that he and Mr Andrew Larcom were now the only two remaining of those who signed the original Memorandum of Association of the company in 1913.

Cecil Honeyfield departed from the board with many credits to his long and valued service to South Taranaki. His father, Edmund Morgan Honeyfield, had arrived in New Zealand in 1856 with his parents when he was 14 years of age on barque Ashmore. Their home had been at

Mr W. O. Williams, chairman of directors of The Farmers’ Co-operative Organisation Society of New Zealand Limited 1956–58.

Buckthorn Weston near Gillingham, Dorset, England and they came to live in New Plymouth where other Honeyfield families had settled in the early 1840s. Edmund farmed at Wanganui in the 1870s before establishing himself at Whenuakura. Although a quiet man he was popular and was elected to the first Patea County Council. In 1877 he married Catherine Gane and they settled in ‘the small cottage he built and they named their homestead ‘Park Farm’, after a country mansion at Mells, Somerset’. In September 1878, Cecil, the first of their 11 children, was born. Cecil was educated at Collegiate School, Wanganui and after leaving school worked full time on his father’s farm which he was managing at the age of 24. In 1905 he married Catherine Wright of Wanganui and in 1906 ‘Kate’ gave birth to a daughter, Rosalind, and the following year a son, Edmund Lee. Cecil’s interests were broad and he was soon heavily involved in local affairs. He was a director of the Whenuakura Dairy Company, a member of the Patea Borough Council, Deputy Mayor for 16 years, and chairman of the hospital board for 27 years. He also sat on the boards of the Patea Freezing Company and Patea Loan Co., and of course The Farmers’ Co-operative Organisation Society. Apart from his sheep and dairy farming operation, he held the office of president of the Patea Rifle Association, he was associated with the South Taranaki Automobile Association and was patron of the Patea Golf Club. He was member of the Hawera Club, sat on the Whenukura School Committee and was Synodsman for the Patea District.

A month earlier at the R.S.A. Social Hall on Princes Street, Hawera at the Society’s annual general meeting attended by about 150 shareholders, Mr G. W. A. Williams spoke of Mr Honeyfield’s long and outstanding association with the Society: Mr Honeyfield was one of the pioneers of the Society who had served on the board during the difficult times of the slump as well as the prosperous times that followed, and it must be very pleasing to him to be able to leave the company in such a sound prosperous condition. He moved that the appreciation of the shareholders of Mr Honeyfield’s long and faithful service as director and chairman be placed on record. This was seconded by Mr Washer and carried by acclamation.

Farmers’ Co-op’s board of directors was studded with long-term capable men, many with a wealth of experience in a variety of other co-operatives and organisations. The top job of chairman of directors was now placed in the hands of Walter Owen Williams a dairy, cattle and sheep farmer at Ohangai Road who later lived on South Road, Hawera. He joined the board in 1937 during the reign of long-time chairman Alexander Hunter and witnessed the Society’s fortunes throughout 20 turbulent but highly satisfactory years. He was born in Christchurch and educated at Warwick House Commercial School and came to Hawera to join the auctioneering staff of the N.Z. Loan and Mercantile Agency Co. Ltd. He was also a director of the Hawera Co-operative Dairy Factory Co., Vice President of the Egmont Racing Club, and Hawera Club and a member the Wanganui Club. His interest in the Taranaki Automobile Association and member of the executive Council of the N.I.M.U. provided the board with a chairman of considerable commercial acumen to take on the challenges of what was becoming a new age of technology and diversified business practice. His term at the top was a short one, however, as although he continued to chair the board with distinction, during the second year of his chairmanship he suffered ill health. Having been re-elected chairman of Farmers’ Co-op a week earlier at the annual general meeting, he passed away during the night of 16 September 1958 at a hotel in Wellington where he was staying with the intention of attending a meeting the following morning with managing director Clem Trotter. He had only recently returned to Hawera after an absence of three months touring the west coast of North America, accompanied by Mr R. H. Leece, and visiting his only son, E. C. Williams, in Vancouver. He was 83 years of age at the time of his death; his wife had passed away two years earlier. Continuity was an important factor in the selection of a chairman for the Farmers’ Co-op board. With the Society entering a new age of technology and a number of large projects already underway,

Mr R. M. Cathie, chairman of directors of The Farmers’ Co-operative Organisation Society Limited, 1958–73.

Farmers’ Co-op garage and showroom c.1955, Princes Street, Hawera.

in particular the new departmental store on Devon Street, New Plymouth, it was imperative that whoever took over the reins was fully committed to completing the project and conversant with the procedure and plans for future expansion. Grasping the magnitude of the Society’s current programme would have been a daunting prospect for an outsider. The board selected Ronald McGilvray Cathie to take on the mantle of chairman. A former employee of Farmers’ Co-op, a farmer, and long-time shareholder, his career as a stock agent started at Katikati and he came to Taranaki to work for N.Z. Loan and Mercantile at Waverley. In 1927 he took employment with Farmer’s Co-op at Stratford and New Plymouth for a short period before moving back to Waverley. He also owned a farm at Pihama in partnership with his brother. His election to the board brought experience gleaned from his time on the boards of the Taranaki Producers’ Freezing Company Limited, chairman of the Pihama Dairy Company for 15 years and Councillor on the Egmont County Council for a period of time.

Austin cars were now an integral part of the company’s trading profile and wherever Farmers’ Coop went so did Austin Motor Company. The partnership had been through difficult times but had survived. The relationship between Austin and the New Zealand distributors provided an exciting opportunity for two Farmers’ Co-op staff members when the manager of the motor division, Rex Goodchap, and service manager Ken Catchpole were chosen to represent the Company at Austin’s 50th Anniversary celebrations in Birmingham, England in May 1955. With other distribution representatives from New Zealand and Australia they flew from Auckland, via Sydney and Darwin to Singapore, where they were entertained by the Austin representatives at a banquet, then on to London before going to the factory in Birmingham. Ken Catchpole describes a trip of a lifetime:

Our first impression was the colossal size of the factory, covering 268 acres, with 21,500 employees. We saw huge presses, approximately 20ft high with an operating pressure of 350 tons per square inch, turning out body panels at the rate of one every 12 seconds. We also saw crankshafts being made with a ten thousand pound steam hammer at 800 tons to the square inch. Two blows and a crankshaft is made in a rough state, then straightened and machined. These are only two examples of the amazing things we saw. Blocks and cylinder heads and gear box casings were finished on multiple drilling machines,

Hawera Motor Branch staff 1959. Back row from left: J. Peterson R. Tecofsky, B. Tarr, W. Robinson, K. A. Wilson, B. Teir, J. Sainsbury, T. Southcombe, B. McAsey, J. Pettett, C. Black, L. T. Corrigan, N. R. Corrigan, I. McDonald, H. Slinger. Middle row from left: N. Cressy, E. C. Aitcheson, J. Toon, D. Sainsbury, N. Murray, M. McGovern, J. Hamblyn, R. Kalin, L. T. Parish, P. Kennedy, J. Duncan, L. Harford, K. W. Gray, D. Lewis.

Front row from left: T. E. Evensen, W. Petrie, K. W. Catchpole, C. J. Brough, R. B. Goodchap, H. J. Orsborn, R. Burson, W. Whittington, B. A. Monaghan.

for example, the cylinder head had 145 drills with 32 operations. Upon completion of assembly all motors are driven for 1 hour, 20 motors at a time. ... The number of vehicles produced for the week during our stay was 5,500, or one for every 45 seconds. The last day we were there was what we would call an A. & P. show, merry-go-rounds, stalls, all sorts of games for the children, to celebrate the 50th Austin Golden Jubilee.

As a grand finale we had a quick glimpse of the first Austin Turbine car to have its whole power unit completely housed in the normal position. The heat exchangers, which form part of the unit, are of very advanced design, and, in fact, the exhaust gases are so cool it was safe to hold a hand in them. Apart from a brief statement made by the Company, no detailed information or pictures of it had ever been published. It appeared not because it was likely to go into production yet but because the Austin Designers wanted to give their guests a glimpse of motoring in the future. The car caused quite a sensation when it made a complete circuit of the track as a great surprise at the end of the program. The only thing which distinguished it from an ordinary car was the soft note of its turbine unit and the bonnet had been slightly lengthened and that their wire mesh grills were let into the bonnet top. The only technical information so far released on it was the 125 HP gas turbine with a heat exchanger to assist the economy.

This was the end of the visit to the Austin factory. The next day we left to visit the Morris factory in Oxford, which was also very exciting but on a much smaller scale. It was a wonderful experience for us all and one we will never forget. After leaving the Morris factory we were taken on a very enjoyable trip through the countryside to Brighton. We stayed the day in Brighton, then travelled back half way to London, staying the night at Worcestershire Brine Baths Hotel. The next day we travelled by train to London. For the rest of our stay we were treated to a wide variety of entertainment such as The Changing of the Guard, The Searchlight Tattoo, The Tower of London, St. Paul’s Cathedral and saw “The King and I” at the Theatre Royal, Drury Lane and many other places of entertainment. Then came the Austin Golden Jubilee, 1905–55, Farewell Dinner at the Savoy Hotel, with guests from Australia, New Zealand and South Africa. As you can imagine, it was a wonderful dinner. It was also the first

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time ever that guests were allowed to take off their jackets in the restaurant. All the top people of the Austin Motor Company attended the dinner. Well, all good things must come to an end and the next day I left for New Zealand, via Singapore. Rex went home via New York where he attended a special meeting with the Atlantic Oil Company. He said afterwards that the deal he made there was even better than the one we already had in New Zealand, and proved to be a great asset for the Farmers Co-op.

The longstanding association with Austin – soon to span 25 years – had been a very rewarding and valued one. Austin sent a representative from Birmingham once or twice each year to visit the six companies selling Austin cars in New Zealand. He visited Farmers’ Co-op motor garages at Hawera, Stratford and New Plymouth and discussed any problems and matters pertaining to the franchise and any changes happening in the future. Farmers’ Co-op had experienced difficulty employing qualified mechanics at the time and it was decided to advertise in England to encourage mechanics to emigrate to New Zealand. Applicants would be interviewed while the two Farmers’ Co-op managers were in London. Four were finally chosen, including Brian Tarr, George Duffus and Jim Duncan.

The 25-year association with Austin Motor Co. Ltd. as direct franchise holders, was celebrated by Farmers’ Co-op at a cocktail party in the motor showroom on Princes Street, Hawera on Thursday 14 March 1957. Directors, management and staff were addressed by Mr J. C. Boult, New Zealand representative of Austin who presented a number of commemorative plaques to the company and

The Farmers’ Co-op Department Store New Plymouth was opened on 25 October 1960, the largest store built in New Zealand since the Second World War.

replica plaques to long-serving personnel of the motor department. Some of the Society’s personnel in attendance were: C.G. Trotter, H. J. Wooffindin, R. B. Goodchap, C. J. Brough, W. O’Grady, J. D. France.

The New Plymouth’s Devon Street departmental store was now the focus of the Society’s expansion plans. The M. L. C mortgage of £175,000 had now been signed and sealed with the first instalment of £50,000 due in December 1958. The balance of £125,000 would be payable on completion of the building. It was anticipated that the building would be completed on 18 February 1960. The final layout of the store was placed before the board for their consideration, however:

It was felt by members that as the plans had been prepared by those who would be responsible for the efficient running of the store, the Directors were now really in a position to judge such a technical matter, and it was moved by Mr McCallum and seconded by Mr Marfell that the plans as submitted be approved.

Some 41 men were employed on the project in the initial stages, and by 24 March 1959, 35 per cent of the construction work had been completed. The estimated cost of the building was also constantly being revised, with projected costs for completion now amounting to £295,000. Although no firm figure had been established to stock the building, it was estimated to be in the vicinity of £200,000, which would mean that the Society had £500,000 tied up in this one building. February 1960 came and went without any definite date of completion in view. It was considered possible that the basement would be available for occupation by the end of March, the first floor at the end of April and the rest of the building at the end of June. March arrived and tenders were called for the ‘fittings’ of the new store and, finally, the end of June was set for the Society to take possession. Some late additions were now being included, with one of the two manual lifts being upgraded to an automatic lift at £1,248 and the inclusion of a ‘coffee bar’ plant and fittings between £5,000 and £6,000. The question of car parking for the new store was another issue being considered. Plans had been drawn up for the New Plymouth garage, that included a service station and workshop which was expected to cost £100,000. This was to be constructed on the site of Hotel Cargill, adjoining the existing showroom premises in Devon Street, but was finally built immediately behind the main store on Gill Street and opened on 30 May 1961 with Joe France as manager.

During what was an exceptionally busy time for the Society with many projects underway, Clem Trotter advised the board that he had been appointed ‘the representative of the whole of the Co-operatives in New Zealand’ to attend the Annual Conference meeting of the Overseas Farmers’ Federations Limited in London. He was scheduled to depart ‘by air’ on 9 May and would be returning during the first week of July. In addition to the conference it was Mr Trotter’s intention to visit the Austin manufacturing division, the Blue Star Line and Vestey’s, all having good agency arrangements with the Society. Leave of absence was granted by the board.

August 1960 arrived and chairman R. M. Cathie reported that the committee responsible for staffing and stocking the new New Plymouth store were now in a position to consider the nature of the opening ceremony and it was therefore necessary for the directors to decide the finer points of this important event, including who should be appointed to open the premises. The precise date was still unknown, however, and it was felt that the greatest compliment that could be paid to Clem Trotter, managing director, would be to request him to open the building. The big day was eventually scheduled for Tuesday 25 October 1960, with a buffet dinner provided for invited guests. Letters were written to the Prime Minister and Leader of the Opposition and it was hoped to publish the replies in supplements being prepared for local papers to coincide with the opening of the store.

Claimed to be the largest provincial store built in New Zealand since the Second World War, the Farmers’ Co-op’s £500,000 three-storey building was indeed an ‘ultra-modern store’, with many impressive features. It was designed specifically for the convenience of the public, with 66,000 square feet of retail space, a self-service foodmarket, garden lounge, and hairdressing salons for

ladies and gentlemen. Sixty telephones had been installed by New Plymouth Post Office technicians, comprising ‘the most modern telephone equipment installation in Taranaki’. The press release regarding this new telephone system carried detailed technical information: The telephone switching system is installed in a room on the roof of the building and the associated operator’s switch board in the office block are of the latest design, providing for a maximum of 100 extensions telephones and 15 exchange lines. Code calling and a night watchman’s service may be added if required.

The telephone system is known as a private automatic branch exchange (usually abbreviated to P.A.B.X.) and is the equivalent of a small automatic exchange within the store….

The single wire length of all the wires in the plastic and lead covered cables installed in the Farmers’ Co-op new store is estimated to be approximately 45 miles or equivalent to the distance between New Plymouth and Hawera. The paper used to insulate the wires in the lead covered cable would be sufficient to print 30 daily newspapers or paper the bedrooms of a three bedroom house.

A public call box was installed on the ground floor of the store adjacent to the Devon Street entrance, ‘available to the public for calls to New Plymouth subscribers’. As well, a drive-in bay was provided for parcels and pick-up, and there was an unexcelled roof-top view of the city and Mount Egmont, including a play area. The centre also catered for home gardeners and sold fine china and glassware, family footwear, drapery, menswear, paint and wallpapers, home appliances, produce, hardware, machinery and farm equipment. To top it off a large flashing ‘F’ beacon sat above the building. It was impressive and fitting tribute to celebrate the ‘incredible growth’ of the company in recent years.

The big day arrived, with Mount Egmont dominating the scene. Clear skies and sunshine greeted guests from all parts of New Zealand. It was a memorable day for the Society, with thousands of shareholders and casual shoppers turning out, to witness the opening. The store’s opening captured the imagination of the public throughout Taranaki, and many entered a large departmental store for the very first time. Newspapers reported on the growth of the Society over the past ’20-year boom’ and on the day’s events:

With a view of Devon Street seen through windows flanked with indoor gardens of coleus, ferns, bronze flax and primulas, the coffee party yesterday morning at the opening of The Farmers’ Cooperative Society’s departmental store at New Plymouth had the advantage of a very attractive setting. Guests looked on one side at the store’s fashion lounge and at the servery end were murals of life and scenery in Mexico.

The whole scene with many of the women guests in the season’s favourite ‘high hatted’ millinery style, had a metropolitan air unusual in Taranaki.

Mrs C. G. Trotter, Hawera, wife of the managing director, was hostess, wearing a smart sheath frock of navy blue with a jacket to match, the reverse faced with navy and white polka dots to match her hat. For the buffet dinner in the evening, Mrs Trotter wore the same frock, its square neck emphasised with a white polka dotted bow. …

The guests were taken on a tour of some of the city’s parks and gardens during the day and in the evening they saw the lights of New Plymouth from a hilltop, with the beacon light of the new store as the centrepiece.

Some idea of the crowd that thronged the building may be gained from the experience of one Hawera visitor. She was a guest at the morning reception and afterwards it took an hour for her to rejoin the rest of her party at a pre-arranged part of the shop.

Shoppers and curious onlookers packed every possible department of the store to such an extent that top executives of the Society, who had spent many long hours organising the special day, found themselves ‘pressed into service as salesmen’, instead of being able to join the social occasion. One clerical officer, from Hawera declared that he ‘must have served 100 grocery orders during the

day, in an attempt ease the load of the permanent staff’. In one case a director was approached by an elderly woman begging him to take four pence for a comic she had selected so that she could get away from the crush. He took the four pence and ‘she began the arduous task of path finding through the multitude’. With free soft drinks and sandwiches offered, children were not slow to accept the invitation when the schools finished for the day. Another director said, ‘the complete roll of every school in the city seemed to descend on the store as soon as the school was out’. Preparations had been made for some thousands but there seemed to be tens of thousands, a newspaper report exclaimed. The difficulty was bringing in more supplies to keep faith with the customers who were so many that the bearers of relief supplies found it almost impossible to make their way from the doors to the serving counters. One novelty for many young people was the new automatic lifts, with the opportunity ‘of swift volition from floor to floor’. It was a highly successful day for the Farmers’ Co-op New Plymouth operation and its new branch headquarters.

… the spending power of the staff of Farmers’ Co-operatives headquarters and branches affects the whole of Taranaki trading because of the amount of money paid out in wages each week by this firm to its 530 employees. More than £4,000,000 has been paid out in wages to staff since 1937. Last year’s wage bill amounted to £370,765.

A newspaper report on the spending power of Farmers’ Co-op staff was illustrated in an article in the press:

Hawera Pedigree Pig Fair, 1960. In the pen from left: Clem Fowler, Harold Slater, with stock clerk Lank Lewes taking notes.

Now the ‘flagship’ of the company, the New Plymouth departmental store, seemed to be ticking over without too many hitches. It was reported that the store was ‘running fairly satisfactorily although there are a number of bottle-necks that will have to be eliminated’. There was too much congestion on the main stairway, and an additional pair of swing doors were installed. However, on Fridays in particular, a weekly ‘bottle-neck’ at the foot of the escalator provided a meeting place for farmers to discuss the many and varied farming problems of the day. They also assembled in the roof-top café, where much of the stock business was transacted by Farmers’ Co-op agents. These two areas proved very popular spots for ‘old timers’ to meet contemporaries.

Amatter that required the utmost confidentiality had been placed before the board on 20 March 1960, and ‘On no account was it to be discussed until the proposals had been either accepted or declined.’

Clem Trotter had received a visit from the chairman and secretary of the Kaupokonui Cooperative Dairy Company who were anxious to dispose of their store outlets at the factory site at Kaupokonui and Manaia. The turnover was approximately £160,000 and stocks were valued at ‘about £50,000’. There was no goodwill attached to the purchase proposal and the Dairy Company hoped that the Society would be able to lease the premises ‘in the same manner it had done with the Cape Egmont Co-operative Dairy Company’. Two months later the Society received advice that the Kaupokonui Dairy Company had decided not to dispose of their business, and at least for the moment no further discussion was entered into. Trading within the Manaia, Kaupokonui district had throughout the history of Farmers’ Co-op been restricted by the strong support of its own local dairy company merchandise stores at the Kaupokonui Dairy Factory and Manaia. Establishing a Farmers’ Co-op store at Manaia had been attempted on a number of occasions without success. The opportunity to tap into what was one of Taranaki’s most wealthy farming districts was a chance not to be missed, and although it appeared that second thoughts had dissuaded the Kaupokonui board not to continue with further negotiations as this stage, the Society waited patiently for another opportunity. Some two years later the opportunity arrived. On 11 June 1962 chairman Ron Cathie hurriedly called a meeting of the board to advise that confidential negotiations had been proceeding with the Kaupokonui Co-op Dairy Co. Ltd in relation to the possible acquisition of the Kaupokonui store and Manaia shop, stemming from discussions entered into with general manager Mr Wooffindin.

The proposition put forward by the Kaupokonui board had been considered by the executive following a visit and inspection on the previous Sunday to the Kaupokonui store and Manaia shop. Following the inspection the executive advised the Kaupokonui directorate that the next step in proceedings would be receipt by the Society of a written offer from them. An offer of sale was received during the ensuing days, with indication that the Kaupokonui board wished to have arrangements finalised by the end of the financial year, which was 30 June. The dairy company appointed a small executive to finalise arrangements if the two parties could come to some agreement.

The meeting discussed the proposition at great length. There was a general opinion that the Society ‘was not giving an adequate coverage to this particular area of South Taranaki’ and, due to the co-operative nature of the dairy company, the Society had previously refrained from entering into strenuous competition for business in the area. It appeared to be the right time as the dairy company was losing business and Farmers’ Co-op was not obtaining its fair share of business due to lack of coverage in the area. It was the Society’s intention to lease the site and eventually build a shop in Manaia. Further negotiations led to a final agreement being reached to take over the Manaia and Kaupokonui stores. It had been a long time coming. Now the Society would be able to offer farmers in the area a complete range of produce, merchandise and services.

Every Man’s Man

Amongst the activity in the mid fifties, Clem Trotter was invited by Keith Holyoake (later Sir Keith) to become a member of the Royal Commission into Money and Banking in 1955. This Commission made an exhaustive survey of the national economy, and recommended changes to Reserve Bank policy and firmly rejected the Social Credit case for monetary reform. In 1956 Clem Trotter’s long and highly valued contribution to agriculture both locally and nationally was recognised when he was awarded the Order of the British Empire. With the Society now in full flight – an unexpected letter from him to the board intimating his desire to retire from the position of managing director with the Society was received on 1 October 1957. Clem Trotter had been a hugely inspirational and pivotal leader with flair seldom witnessed in provincial New Zealand. His wisdom and management skills were clearly evident within every organisation he was associated with and the loss of such an influential man would without doubt impact on the Society and the Taranaki farming scene in general.

The directorate needed time to contemplate the ramifications of a Farmers’ Co-op without Clement George Trotter. He had joined the Society some six years after its establishment and had influenced almost every decision made by the company during the past 30 years. There was considerable consternation as to who should follow him. The board’s first reaction was to resolve that Mr Trotter be asked to remain in his present position for a further two years, to which at first he agreed. However, the question of a successor was keenly debated behind closed doors. Major decisions made by the Society throughout the reign of Clem Trotter had been greatly influenced by his exceptional power of reasoning. He was the guiding light and seldom if at all did the directorate ever question his decision-making ability. Even the question of who should appoint a new chief executive was the subject of hot debate. It was decided:

‘That the Society advertise throughout New Zealand for an Assistant General Manager to be stationed at Hawera as Branch Manager for two years and to be available as General Manager if found suitable’. This motion was spoken to by several members as it did raise the question as to who was responsible for the appointment of general staff of the Society and to what extent the board of directors themselves should be involved in staff appointments. After discussion Mr E. McCallum moved the following amendment, seconded by Mr G. W. A Williams, ‘That this board confirms that it is the responsibility of the Chief Executive Officer of the Society to appoint the whole staff’. After further discussion the amendment was put to the meeting and was carried, and it was declared to be the motion. It was then put to the meeting again and the motion was carried. With the passing of this motion, the appointment of the Hawera Branch Manager became the responsibility of the chief executive officer of the Society (at present the Managing Director) and the appointment of a person to the Managing Director’s position was the responsibility of the Board of Directors. With the position thus clarified, the directors then discussed the method to be adopted in obtaining the best man possible to replace Mr C. G. Trotter

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on his retirement. After much discussion and the putting forward of several suggestions, it was finally moved by Mr J. D. Law, seconded by Mr G. W. A. Williams, ‘That the matter of the appointment of a general manager be deferred for a period of six months’.

The board found themselves, for the very first time, in a position of having to make one of the most important decisions regarding employment of staff within the past 30 years without the guidance of the chief executive. It transpired that Clem Trotter had also reconsidered his decision and advised the board that he was not disposed to immediately accept the board’s request to remain managing director for a further two years and requested that he be released from his duties in the near future. An application had been received from Mr S. P Girdwood, a former Hawera branch manager now residing at Gisborne, and the position of general manager was offered to him at a salary of £2,750 per annum plus £250 entertainment allowance, with duties to commence immediately. The position was offered on the understanding that Mr Girdwood ‘could be seconded to the Gisborne Sheep Farmers for a period ending not later than 1 October 1958’.

Mr Girdwood did not take up the position, however. The reason is not known. Former employees have intimated that Mr Girdwood and Mr Trotter were not entirely well disposed toward each other and this may have been the reason why the board did not go through with the appointment. Mr Trotter continued as managing director for 18 months from the time he first indicated his wish to resign, until a draft advertisement was presented to the board in May 1959 with respect to the appointment of a general manager. Approval was given for the advertisement to receive the widest possible coverage. The advertisement produced 24 replies, and five applicants were selected as worthy of further consideration.

However, chairman R. M. Cathie now advised the board that the general manager, Mr Henry Freme Wooffindin, had indicated to him his willingness to succeed Mr Trotter. The board responded:

That in view of Mr Wooffindin’s willingness to accept the position any applicant would be required to have higher qualifications than Mr Wooffindin, and this, in their view, did not appear to be the case.

The board had to consider whether they wished to interview any or all of the selected applicants or to appoint Mr Wooffindin without going through this process. Mr Wooffindin had made it known that ‘he had made the way clear for an outsider to be appointed’. The following terms of appointment were unanimously agreed to on the understanding that he became chief executive officer of the company with the designation of general manager, with:

(A) Salary to be £2500 per annum with an additional £500 per annum entertainment allowance.

(B) A house to be provided in Hawera free of charge and an allowance on the cost of shifting.

(C) A retirement allowance of £700 per annum for life with a proviso that should he die in the service of the Society, this sum per annum would be guaranteed to his wife for a period of ten years, or to her death whichever is earlier. In the event of his death within ten years of his retirement his widow surviving, she be paid the sum of £700 per annum up to ten years from the date of his retirement, but to cease at her death should it occur prior to that date.

General manager Clem Trotter was determined to press home his philosophy and stamp his wide experience on the final annual general meeting under his management on 5 August 1960, when he spoke about the responsibility of Farmers’ Co-op in times of adversity. Past experience had shown that while ‘the prices of dairy produce might decline, they always recovered. How many worthy farmers never reaped the benefit of this recovery unless they could be assisted over the lean period’. He said:

The knowledge that we were able, and did, in fact, keep so many farmers on their land in the depression of the thirties has given me personally more satisfaction than any other achievements. Our objective

has always been to place ourselves in a financial position to render similar assistance should the need ever arise.

In giving effect to this policy he explained how it was necessary to build up financial strength to cover not only a satisfactory portion of expansion, but also in a period of inflation to replace the erosion which took place in existing capital. He continued, saying: ‘I am not one of those who believe you should look back and I always remember what happened to Lot’s wife. We must all look forward at the same time.’

Recently returned from a trip to the United States and Europe he provided the meeting with some interesting observations and ideas concerning the creation of a greater market for New Zealand lamb in the United States. He said that it did not call for any ‘flag-waving’ but what he would term ‘peaceful penetration’, and suggested that it ‘behoves all responsible farm leaders not to make any ill-considered statements, or to exercise undue pressure on the Meat Board without first having made themselves fully acquainted with all the facts’. He also spoke about his trip to London and summarised his report with the aid of charts by illustrating the Society’s progress over the past 30 years. Special tribute was paid to the late Andrew Larcom, who had been the sole surviving early director until he passed away during the year. Throughout his life he had been a loyal and strong supporter of the Farmers’ Co-op.

Clem Trotter’s departure was imminent. Proposals made by Mr Watts, the auditor, surrounding his retirement allowance included one year’s leave of absence on full pay, a substantial one-off retirement allowance, an annuity, a gift of a brand new Austin 99 motor car free of all charges or expenses in connection with registration. Farewell functions with shareholders and directors were held. Inevitably and sadly, although he had been granted one year’s leave of absence as part his retirement allowance, on 20 September 1960 Clement G. Trotter attended his final board meeting of The Farmers’ Co-operative Organisation Society of New Zealand Ltd, at the Wanganui Woolstore. Chairman of directors Mr Cathie spoke of the wonderful service he had given to the Society over the past 40 years, 30 as general manager and managing director. He also conveyed the thanks of the directorate to Mr Trotter, and to his wife Anne for the support she had given Clem throughout his long and illustrious career. Mr Trotter suitably replied and stressed:

It was his opinion the most important achievement in this period of service was the successful establishment of our co-operative principles under which the Society was working today.

A staff ball in Stratford on 3 November was a great success, and 500 shareholders, many from other parts of the country, farewelled Clem Trotter at the Memorial Hall on 10 November 1960. Praise for his people and management skills, his wisdom and integrity was endorsed by many speakers, many noting that their families would not be in the position they were today had it not been for the understanding and consideration given by Mr Trotter in the depression years. Mr Cathie stated that:

Mr Trotter had apparently found the secret of squeezing more than 60 seconds into every minute, otherwise he could not have done all he had for the company and shareholders. He had laid a solid foundation for the Farmers’ Co-op, now the strongest in New Zealand – and he was sure the company would go on to even greater things on the basis of that foundation.

Clement George (Clem) Trotter CBE, general manager and managing director of The Farmers’ Co-operative Organisation Society of New Zealand Limited, 1930–60.

COURTESY OF SIR RON AND LADY MARGARET TROTTER

Mr Moss, Mr E. W. McCallum, Mr Horner and Mr Law were among the speakers with Mr H. F. Wooffindin, the incoming general manager, conveying to Mr Trotter that he had always earned the utmost respect from his fellow workers and was held in the very highest regard.

Although Clem’s formal association with Farmers Co-op as managing director ended, he still took great interest in the progress of the company and held a seat on the board of the Farmers’ Coop Wholesale Federation. He continued as a member of the Tariff and Development Board for three years and chairman of a committee set up to investigate the South Island freezing industry and cool storage in the North Island. He was also a director of the Royal Exchange Insurance Company and in 1968 became a Companion of the British Empire. At a local level Clem was involved in many activities, including chairman of the Hawera Star Publishing Co. Ltd., patron and past president of the Hawera Aero Club, the Egmont A & P Association, the Hawera Pony Club, management committee of St John’s Presbyterian Church, Past Master of the Masonic Lodge and chairman of several charitable trusts that strongly supported local causes. Outside the Egmont A & P Association it is not generally known that in 1952 Clem Trotter was the instigator and main proponent to move the showgrounds from the present situation on the east side of Waihi Road to the current position at ‘Burnside’. Unqualified endorsement by Messrs James Winks, W. L. McL’Dowie and H. E. Johnson ‘three of the oldest and most loyal supporters’, helped sway the committee, in addition to substantial donations from a number of members of the Association. The Hawera Borough Council was offered the former showgrounds land for £600 per acre.

The name Trotter, and in particular that of Clement (Clem) George Trotter CBE, became synonymous with farming in Taranaki following his appointment with the Society at Hawera in 1920. Ten years later, at a youthful 35, he became the company’s general manager and later managing director, a position he held with great distinction for 30 years. He left a legacy that remains embedded in the annals of many Taranaki farming families who received advice and assistance from him that enabled them to purchase farms that many still own.

The Trotter family became one of the most influential within the New Zealand stock and station industry. Clem Trotter’s son, Ronald Ramsay Trotter, was undoubtedly blessed with his father’s intellect and unbridled flair and chaired some of the most powerful commercial enterprises in the country during the last three decades of the twentieth century. To name but a few, he became chairman of the New Zealand Wool Brokers Association, a councillor of the Real Estate Institute, chairman of the Stock & Station Agents Association, managing director of Wright Stephenson & Co. Ltd, chairman and chief executive of Challenge Corporation Ltd, and chairman of Tasman Pulp & Paper Co. Ltd. He was appointed chairman of the Economic Summit Conference in Parliament by Prime Minister David Lange in 1984, was chairman of the State-Owned Enterprises Advisory Committee, and of Telecom, first chairman of the NZ Business Round Table, president of the Pacific Basin Economic Council and a director of the Reserve Bank. In 1995 he was chairman of the Museum of New Zealand Te Papa Tongarewa, and in 1984 was awarded an honorary doctorate of law by Victoria University. He was created a Knight Bachelor in the Queen’s Birthday Honours in 1985 and Lincoln University also awarded the Bledisloe Medal for his contribution to agriculture and later an honorary doctorate.

Clement George Trotter CBE passed away at Wellington Hospital on 11 December 1970, aged 75 years, after a short illness. He was survived by his wife Mrs Anne Trotter, and a family of four, Jetta, Mrs B. Cornish (Auckland), Ronald (Wellington), Ann (England) and Judith (Wellington) and eight grandchildren. He was pre-deceased by a brother and two sisters. Members of his family still living at the time of his death included Mrs F. C. Bone, Hawera, a sister and a brother, Mr James Trotter, Dannevirke. His name and reputation is etched into the chronicles of South Taranaki’s rich agricultural history. This charismatic gentleman was generous in spirit and in practice, an outstanding public speaker, popular with young and old. He was known to recall the names of the

office boy, people he met casually in the street and all who associated with him. He was indeed an extraordinary individual; he was everyman’s man.

The ‘Trotter era’ would be a hard act to follow, but fortunately the future was now in the hands of one of Clem’s long-trusted friends and associates Henry Freme Wooffindin. A certain amount of continuity and style was assured with Henry Wooffindin’s vast experience in the stock and station industry. He had started his career as a junior with Dalgety and Company Ltd in Timaru on 24 February 1919, and showed great promise from the beginning with comments from early employers such as, ‘we cannot speak too highly of his qualifications’, and ‘of good ability and has proved himself in every way’. His initiation included canvassing stock sales and general merchandise. In 1923 he came to the North Island where he joined his father and worked for Eccleton, Collins, Rodney & Co., auctioneers, land stock and station agents and valuers at Martinborough for nine months. He moved to Hawera where he worked for N. Z. Loan and Mercantile Agency Co. Ltd. His appointment with Farmers’ Co-op commenced in 1926, when it appears he was placed with the stock department at New Plymouth. It was here he established himself as one of C. G. Trotter’s most valued and trusted employees and friend. There is various evidence of the high esteem that Clement Trotter held for Henry F. Wooffindin, but perhaps the most poignant is part of a letter dated 15 December 1938, when war was imminent:

I take this opportunity of personally thanking you for your cooperation over the past years, and for loyalty to me which, I state in all sincerity, is one of the most cherished possessions, and without which I am certain the results achieved by the company would not have been accomplished.

Henry F. Wooffindin, general manager of The Farmers’ Co-operative Organisation Society of New Zealand Limited, 1960–64.

COURTESY PETER WOOFFINDIN.

When it was known that Henry Wooffindin would succeed Clem Trotter, he attended board meetings alongside the managing director from 1958 and officially assumed the role of general manager from September 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

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

Ohura Farmers’ Co-op branch office store.

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

OLD TO BE SECRETS NOW

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.

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.

244 TOO OLD TO BE SECRETS NOW

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.

AN ANGEL SITTING ON ITS SHOULDER

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.

SECRETS NOW

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

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.

Manaia 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

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)

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)

Waverley branch.

Opunake branch.

Eltham branch.

Kaponga 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

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

Stratford 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’

Pungarehu branch.

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.

CHAPTER TWENTY-EIGHT

Wool, Man and Muscle

Sheep farming had played a significant role in the development of the west coast of the North Island of New Zealand throughout the period of colonisation, particularly in eastern Taranaki, Patea, Waverley, Waitotara, the inland high country up the Parapara Road to Raetihi, Waimarino, Wanganui and down through Rangitikei and Manawatu. Exporting ever-increasing quantities of produce from the area became an integral part of the commercial infrastructure, with wool, hides and other cargo being shipped from the Patea and Wanganui ports in the late 1800s. As railway transport became reliable, Wanganui Port became one of the major wool centres. It was also bringing in the output of both bush-frontier and runholder districts from as far north as the back-country of Taranaki to as far south as Foxton. In 1886 nearly 1,000 tons of wool was railed into Wanganui, and it soon became the main outlet for most of the wool from Wellington district’s west coast’s 750,000 sheep.

Selling wool on behalf of clients has been part of the company’s trading portfolio since Farmers’ Co-op opened its doors, although the Wanganui woolstore was not established until 1918. The first sale by auction of 1,100 bales displayed in the New Zealand Farmers’ Distributing Company’s old store was held in 1924, then under the management of Mr Cecil Christensen who held the position until his death in 1959. The woolstore was enlarged by 9000 sq. ft. in 1927 and a railway siding for direct consignments was constructed. The agency arrangement with Blue Star Line in 1933 saw the beginning of a long and fruitful relationship between both parties at Wanganui. As chief agents, the Farmers’ Co-op wool department was also responsible for all the documentation and delivery of wool sold at Wanganui auction shipped by Blue Star vessels.

Farmers’ Co-op Woolstore, Gonville, Wanganui 1926–27.

In addition to storing and auctioning wool the company also owned wool-dumping equipment. The process of wool dumping was operating in the 1890s and possibly earlier at many ports around the country. It was designed to save shipping space by pressing two bales of wool together, to make a cubic package the same size as one bale of wool. Prior to wool dumping, bales of wool were ‘screwed’ by jacks into the holds of the ships. Shipping companies or harbour boards usually provided the dumping equipment. As a matter of local interest the Patea Harbour Board invested in a wool dumping plant in 1891. The siting of the Patea plant caused considerable consternation when local wool exporters voiced disapproval to the Patea Harbour Board when they installed a wool dumper ‘on the town side of the river in the shed on the Harbour Board Wharf’, rather than on the opposite side of the river adjacent to the railway wharf. Wool arriving by rail had to be carted ‘away over the bridge, close upon a mile to the Board’s wharf on the other or town side of the Patea river’ before it could be dumped and returned to the other side for shipping.

Farmers’ Co-op’s Wanganui wool dumping appliance came up for consideration in July 1937 when a report was requested from ‘Niven’s expert’, regarding maintenance of the wool dump that required urgent repairs. Alternative recommendations were submitted for the board’s approval:

(a) Overhauling and speeding up the existing pumps by 20 per cent, and

(b) The installation of new pumps and motor and new concrete foundations.

A new wool dump was installed in 1938, ‘and very satisfactory results were obtained. On a trial run of 100 bales double the previous output was obtained – the rate being 70 bales per hour.’

Additions to No 1 Woolstore at Wanganui in 1938 and 1942 reflected the booming wool industry, when over 15,000 bales per year were being handled. In 1947 No 2 Woolstore was purchased from Walter Hill & Sons at Castlecliff, previously a scouring plant. Extensions incorporating an upstairs area and a small downstairs area and modern offices and facilities for staff and wool buyers increased the floor space to 87,500 square feet in 1960. In 1963 No 2 Woolstore was refurbished with modern equipment for handling wool for binning and reclassing. In later years the Wanganui wool-selling centre had ‘nominal port status’, enabling the wool clip to be offered locally at no penalty to growers despite its distance from a main port. The bulk of wool sold was ‘dumped’ greasy and railed to Wellington and Napier for shipment overseas. To cover the railage costs buyers were levied an amount per bale which was administered on behalf of all the Wanganui wool brokers. In the late 1950s and early 1960s there were many companies offering wool broking services out of Wanganui. Some of the companies with wool facilities were: Dalgety & Co., Farmers’ Co-op, F. R. Jackson, Johnston & Co., Levin & Co, N. Z. Loan & Mercantile, Murray Roberts, Newton King, Farmers Co-op Distribution Co., Wright Stephenson.

In 1968 the company’s newsletter ‘Focus’ recorded that, ‘in the 44

Farmers’ Co-op Woolstore No 1 was totally destroyed by fire at Gonville, Wanganui on 14 December 1972.

OF LOFTY ROSS

258 TOO OLD TO BE SECRETS NOW

years to date, only three auctioneers had been responsible for selling Farmers’ Co-op clients’ wool. Collectively the three had sold 699,151 bales, ‘which, if put in one line would cover 463 miles’. The first was ever-versatile Clem Trotter. It is known that on one expedition to England he attended a wool-classing course at Bradford College. His experience, skill and energy was evident at the wool auctions held in the Royal Wanganui Opera House and he continued as the company’s wool auctioneer throughout his entire term as general manager and would have continued after he retired, given half the chance. The auctions were a great social occasion in the early years. Russell Nelson, manager, and Bill Marshall were the other two auctioneers. Others in positions of responsibility during that time were: B. V. D. Slater, assistant manager; A. W. Salt, bin manager; W. L. Brown, chief clerk; Don Cameron, foreman; Norman Cate, assistant foreman.

Fire in the Society’s No 1 Woolstore at Wanganui in the middle of woolclip processing, on 14 December 1972, may have seriously effected Farmers’ Co-op shareholders had it not been for the generosity of New Zealand Farmers’ Co-op Distributing Company Ltd, who came to the rescue, offering space in their own Wanganui wool store a few hundred yards up the road for the remainder of the season. The fire destroyed:

710 Bales of wool sent into store for the January sale.

3208 Bales of wool sold at the December sale but not paid for by buyers.

599 bales of wool paid for by buyers, being wool purchased at the December and earlier sales.

The Society’s insurance cover with Guardian Royal Exchange on the first two items of $850,000 was adequate to meet the loss, including costs relating to salvage. The insurance on the third classification was the responsibility of owners. The main building was totally destroyed except for one small area adjacent to a house, which was untouched. An insurance claim amounting to $138,000 was paid for the woolstore and with the exception of a couple of small items, including scales and one motorised wool-handling truck, the plant was also totally destroyed, with a sum of $10,000 being paid by the insurance company. The neighbourly assistance of FCDC prompted the two companies to realise the advantage of practical rationalisation and they decided to form a jointly owned company, Farmers’ Co-op Wools Ltd, to handle their wool operations in Wanganui. This operation combined the staff of both organisations and in its first year of trading, ending 30 June 1974, it handled 33.24 per cent of the total wool clip marketed in Wanganui. In the 1975/76 season wool returns changed from a commission on wool sale sold to a charge per kilo. During the 1978/79 year negotiations were concluded in purchasing the interests of Farmers’ Co-operative Distributing Company Ltd, culminating in Farmers’ Co-op Wools Ltd operating as a totally owned subsidiary of Farmers’ Co-op.

One of the evergreen characters and mainstays of what became Allied Farmers Wools Ltd was Alan ‘Lofty’ Ross, who began his career with the Wanganui based Farmers’ Co-operative Distributing Company as a storeman in 1963. Lofty joined the payroll of Farmers’ Co-op in 1972 after the disastrous fire of 1972, as did many FCDC staff. The demise of the old two-storey wooden woolstore proved the catalyst for change with the subsequent amalgamation of the Feildingbased Farmers’ Co-operative Distributing Company and Farmers’ Co-operative Organisation Society of New Zealand Ltd. Lofty Ross has vivid memories of the fire of 1972:

Alan (Lofty) Ross 1972–2008, company foreman, Allied Farmers’ Wools Ltd, Wanganui.

My boss, Bill Wilcox, rang me up at about 2:00am. He said ‘the woolstore is on fire’. ‘What woolstore’? I asked. ‘Farmers’ Organisation Wool Store (then our opposition but later we amalgamated) woolstore,’ he replied. ‘We need help – you’d better get in there and try to get some wool out’. ‘I got on my pushbike – I lived about three miles away – and as I was coming up past the hospital all you could see was a bright red glow. By the time I arrived, the woolstore had gone, and there was nothing which could be done to save it. It was one of the biggest fires which Wanganui has ever seen. ‘It was a big, two-storey, wooden building, with the offices upstairs’.

No-one was ever sure how that fire started. Some thought it may have been caused by an electric forklift which had been set to charge up overnight, but there was no proof of anything. The safe, which was located upstairs, fell through the floor, but the contents were badly charred. If there was any paper money in there, well there was no sign of it when we got the safe open!”

Muscle was king when ‘Lofty’ first entered the woolstore as a storeman in 1963:

In those days, all of the wool bales were loaded and unloaded by barrow and hook. To get through the work, the company used to employ a lot of casual labour comprising mostly young students. Everything was done manually – in fact we were about the last woolstore in New Zealand to get a forklift – neither our manager nor his foreman believed in them!

During peak periods, there would be about 50 people working in the store, including the winter crew which was kept right through, plus the casuals. About 15,000 bales of wool would be handled in a season. In those days the season would run from November through until February. Then there would be a little bit of second shear, but thereafter, for about four months of the year, you did nothing!

Back in the 1960s, there was no real money – everyone talked about going to the woolstore or the freezing works where you were paid overtime, but it’s very hard work. For four weeks of overtime – usually nine hours on a Saturday and the same on a Sunday – I took home £28 or $56 equivalent for a seven-day week. My flatmates used to think that I was a millionaire!

But you had to take into account that it was hard physical labour. We’d arrive at 7am, and start loading or unloading wool bales. Not everyone stood up to the work – especially the students who were employed as casual labour. A barrow with a bale of wool on it would weigh about 180 kilograms, and while some managed to lift this load, others would start to shake at the knees!

Lofty Ross was promoted to the position of company foreman and retired in 2008 after 45 years working with wool, witnessing the evolution of the wool-handling industry from a man and muscle era to a high-tech industry.

Declining sheep numbers was challenging Wanganui as a wool-selling centre and Farmers’ Coop Wools Ltd, minority shareholder in Wanganui Wool Dumpers Ltd, was prompted to purchase a 50 per cent share in Wanganui Wool Dumpers, preventing closure and sale of the wool dump in 1990. A partnership with Cargill New Zealand Limited was formed and continued to operate as the Wanganui Wool Dumper partnership, making a significant contribution to the annual result of the wool division. However, with the rationalisation of the wool scouring industry, including the closure of Cargill NZ Ltd’s woolscour, Wanganui Wool Dumpers partnership was dissolved in 1997 and all assets liquidated. This coincided with Allied Farmers Ltd purchasing a 20 per cent shareholding in a new company Tucker Wool Processors Ltd and the purchase of a 25 per cent shareholding in Napier Wool Dumpers 1997 Ltd, with Tucker Wool Processors taking a 75 per cent shareholding in the same company.

Seldom are companies with a trading history comparable with Allied Farmers Ltd entirely spared cases of fraud or embezzlement by staff. In spite of the number of trading outlets, employees from all walks of life, and staff levels exceeding 700 at times, only a few cases of misappropriation of money have been identified over the society’s 120-year history. However, a Wanganui Chronicle article dated 9 January 2004 captioned ‘Misappropriation of $545,856 by pair, court finds’, reported that following a civil hearing and the High Court judgment of Justice Goddard, former Wanganui wool division manager and his office manager had misappropriated $545,856 over a number of years by creating fictitious records relating to the purchase of wool against which they drew cheques

payable to cash ‘to a conservative value of $522,356’. They also laundered stolen cheques valued at $22,531 through a social club bank account, using knowledge and control of the company’s accounting system they had built up over a decade. An earlier criminal case was dismissed due to a technicality, but a civil case brought by Allied Farmers Ltd resulted in Justice Goddard awarding $545,865 and costs of $193,478 to Allied Farmers Wools Limited and eventually, through a variety of means, a recovery of $510,000 was received as settlement. The misappropriation had occurred over a number of years from the mid-1990s and was revealed through the investigations carried out by re-employed former staff members, the company secretary, Allied Farmers staff domiciled at Wanganui and a forensic and investigative accounting specialist.

Allied Farmers Ltd had operated a dedicated woolstore at Wanganui throughout the past 90 years but the continuing reduction in sheep numbers throughout the country and waning profits precipitated what was to be the end of a significant division of the company that had contributed much throughout the years in terms of service to farmers and to the financial stability of the organisation. It was announced ‘with a certain amount of sadness’ on 10 July 2008 by Allied Farmers Ltd chairman John Loughlin and Wool Grower Holdings chairman James Aitken, that Allied Farmers Wools Ltd had been sold to The Wool Company Ltd. The Wool Company Ltd had been established as an initiative of Wool Industry Network Ltd and entered into an agreement to purchase the wool business of PGG Wrightson. Allied Farmers considered that the sale demonstrated its strong support for the strategic initiatives of the Wool Industry network for the importance of achieving a meaningful level of clip consolidation. It was hoped that the sale would play a part in generating higher returns for wool growers and an improved profile for New Zealand wool in world markets. John Loughlin said: ‘Allied Farmers is very pleased that it has been able to participate as an early mover in the wool industry consolidation and contribute to an initiative to grow value in the industry.’

Farmers Co-op Woolstore, Gonville, Wanganui.

TWENTY-NINE

Personal Touch

Clem Trotter was passionate about Farmer’s Co-op and proud of the status it had attained in his home province of Taranaki. He left many legacies. He was devoted to his colleagues, business associates and the farming community. Many owed their livelihood to this man, and had placed their entire wealth in his hands to manage during some of the most difficult times in New Zealand’s early history when slumps and war challenged the most diligent farmer. It was in difficult circumstances that Clem Trotter was at his most potent best. Farmers’ Co-op did not have the capital to finance farmers but it had the ability to carry debt in times of depression and hardship by extending credit on vital purchases. Clem Trotter’s standing in the community enabled him to negotiate with banks and other lending institutions on behalf of clients. Many farmers became so reliant on his financial and management expertise that they retained his advice and services and out of this was born the Farmers’ Co-op Farm Supervision Department. In later years his son Ron said that ‘one significant record the company held was that it had never called up an account, and he considered his father’s work at this time was the most important contribution to the farmers of Taranaki’. Clem Trotter managed and supervised many properties himself until it became necessary to employ full-time staff.

The first employee in a dedicated farm supervisory role at Farmers’ Co-op was Mr A. L. Lyn Bremer from the well known Waverley family who championed the farmers’ co-operative movement in 1913. Robert Bremer and Frederick Gustavo Bremer were Farmers’ Co-operative Organisation Society provisional directors. Lyn Bremer’s position as farm supervisor commenced in 1935 and he soon became a well respected officer in the Society’s growing farm supervision operation. It had many benefits for shareholders, with the very significant advantage that it tied farmers to the Farmers’ Co-op to some degree, with practically all trading and financial matters handled exclusively by the Society. Many shareholders took the opportunity to use the service and an additional staff member, L. J. Len Newell, was employed some time during the outbreak of the Second World War. He stayed with the Society until 1948 when he resigned and was replaced by Ron Bremer, son of Lyn. This appointment though was purely a stop-gap measure and about 18 months later a T. F. Tom Molesworth was appointed to the position of head farm supervisor. Tom eventually became one of Farmers’ Co-op’s general managers. He was assisted by Lindsay Nicholls until 1955 when he resigned, requiring the Society to advertise throughout New Zealand to attract a suitable replacement.

Murray Findlater was on holiday in the South Island and saw an advertisement in the Otago Daily Times for a farm supervisor and rural manager. After forwarding an application to the employment agency handling the applications, he received a phone call from his old friend and colleague Tom Molesworth and this quite fortuitous introduction was instrumental in yet another

SECRETS

highly qualified man joining the ranks of the Society in July 1955. Murray James Findlater, known affectionately as ‘Fin’ would administer and supervise farm properties for absentee owners and estates from Waverley in the south to Mahoenui in the north. Murray and Tom Molesworth were linked by the fact that they were the first two rural field cadets of the Public Service Commission in 1941, a very successful training scheme established by Herbert Caselberg, then the supervising valuer of the Mortgage Corporation which merged with the State Advances Offices to form the State Advances Corporation, and former Hawera manager of the Farmers’ Co-op.

A distinguished background of farming experience in many New Zealand districts, including Martinborough, Waitotara, Eltham, Papatoetoe, Waimate South Canterbury and Oamaru, Murray Findlater attended Lincoln Agricultural College, Christchurch and also worked for the Department of Maori Affairs at Taumaranui, Tokaanu, Levin, Hawera, Hastings and Dannevirke. His work included inspection of land, supervision, valuations, leases and rentals and Maori Land Corp. work and he was involved with the West Coast Lease revision. He attained a Diploma of Valuation and Farm Management in 1949 and became a Registered Valuer in 1954 and a Fellow of the New Zealand Institute of Valuers in 1977. He was also a Member of the Taranaki Land Division Tribunal from 1975 to 1989. Other supervisors included T. E. Lees and M. G. Keene. Russell Bassett, with a farming background and broad commercial experience, dealt with much of the clerical work and general inquiries, including general clerical duties for the real estate operation known then as the Hawera Land Department.

The Farm Supervision Department was now endowed with three highly qualified and experienced men and would during the years ahead make a considerable contribution supporting shareholders. The general operating principle of the department was to offer the service for a fee commensurate with the degree of supervision required. In addition to general management, it also provided information relating to the application of fertilisers, maintenance of plant, purchase and disposal of stock, payment of accounts, wages and proceeds to sharemilkers, the supervision of managers and sharemilkers and the implementation of policy and development according to individual requirements and the finance available. The operation continued to be a worthwhile addition to the Society’s portfolio of shareholder-related support mechanisms. In its heyday the department was supervising in the vicinity of 40 farms. Farm supervisors became very closely associated with their clients and were treated as family. Management, advice, support and solution finding was all part of the service and this required a sympathetic yet well-informed response to the many problems that arose.

Without warning the Society suffered the unexpected loss of two highly valued employees in June 1973, when Murray Findlater, manager of the farm supervision department, and Bernie Mann, from the livestock division, resigned. In August of the same year Bill Marshall also handed in his resignation. Ron Trotter, a trusted friend, now chairman and chief executive of Wrightson NMA’s holding company, Challenge Corporation Ltd, approached the three men with a view to spearheading Wrightson NMA’s entry into the Taranaki province which had hitherto been serviced by the two main players Farmers’ Co-op and Newton King Ltd. Fortunately for Wrightson NMA it came at a time when disenchantment had manifested itself within the ranks of the Farmer’s Coop livestock and farm supervision divisions due to a variety of unsettling executive decisions in the early 1970s concerning working conditions and salaries. The sudden loss of three of its most experienced field staff was a cause of such concern amongst three directors that they invoked a clause under the Articles of the Association to requisition a meeting of directors to present a report expressing their point of view on the subject. They reported that ‘The Society was falling down in its activities and staff relationship.’

Opinions were freely expressed by those attending the meeting. An impression had been gained that recent salary increases that had been granted immediately after the June resignations ‘had

been dictated by the fact that Wrightson NMA had commenced operating in the stock field in Taranaki’.

This assertion was argued at length until Mr Ashton commented that, ‘the board was interested in the future not in the past’, and following a motion regarding salary scales being carried, the chairman requested that general manager L. B. Smith and the secretary withdraw from the meeting. It was then moved by Mr Ashton and seconded by Sir Harry Blyde, ‘That the board record a vote of confidence in the general manager.’ It was carried.

The move of Wrightson NMA into Taranaki by Ron Trotter, son of the late Clem Trotter, the Society’s most distinguished general manager and managing director in the Farmers’ Co-op’s history to date was controversial from a local perspective, particularly in the light of his father’s lifetime contribution and dedication to Farmers’ Co-op. It is therefore important that this narrative explains the circumstances that precipitated the Wrightson move to compete with the Taranaki giant.

Ronald Trotter was Challenge Corporation Ltd’s managing director from 1970 until 1981 and Wrightson NMA, part of the Challenge Group, had branches throughout New Zealand involved in a wide range of activities in addition to the stock and station business. However, there was no direct representation in Taranaki province. In 1961 NMA had merged with Levin & Co and by chance an outlet in Hawera, inherited from the former Levin & Co. on the corner of Princes and Grey Streets, provided Wrightson NMA an opportunity to establish a branch and place a tentative foot in the province. This expansion would provide Wrightson NMA with New Zealand-wide coverage. Wrightson NMA had no branches between Wanganui and Te Kuiti but did have significant numbers of clients on the fringe of these districts adjacent to and in the Taranaki province. The acquisition of three experienced operators, described by Sir Ron Trotter in later years as ‘the low-cost approach of employing some good FCOS staff who I knew’, and that the move into the Taranaki province was a commercial decision which would have happened sooner or later and a decision ‘my father would have been proud of’. Wrightson NMA commenced operations with Murray Findlater as branch manager, Bernie Mann as head of the livestock department and Bill Marshall placed in New Plymouth as stock manager and auctioneer. The operation, although not large at the start, would become highly successful.

The Farmers’ Co-op supervisory department continued under the management of Bruce Callaghan, followed by Don Kelly until June 1978, when Bill Laurence, who joined the stock department in December 1976, was seconded to the supervision department in 1978 as the solecharge farm supervisor. At this stage the farms under supervision numbered 13, but under Bill’s supervision the number steadily increased to 40 farms. The company’s financial difficulties in the 1980s were, however, to bring an end to what had been a highly successful adjunct to the support mechanisms introduced by former longtime managing director Clem Trotter. The executive of the day felt that they could not continue to entertain the existence of any part of the business that was not showing a profit and it closed on 1 January 1987, with the entire portfolio being taken over by Bill Laurence. The new company traded under the name of W. R. Laurence Farm Supervisor Services, who negotiated an arrangement to receive a commission on all livestock and merchandise he transacted with the company on behalf of supervision clients.

It was felt that the executive had not understood the complexities of running a stock and station business, not realising that the supervision department was intricately intertwined with ‘merchandise being related to livestock, to financing farmers who related to the personal touch’. The farm supervision department was now being seen as unprofitable in its own right, with the fee income being less than the cost of running the department. In fact the general concept behind the department’s existence had always been that the farm supervision department was not there to make a profit, but rather to provide a service for shareholders and farmers who found themselves in financial difficulties or were absentee owners. Modest fees were charged to recover costs, and

SECRETS NOW

there were benefits from the sale of produce, wool, stock and fertilizers and ultimately the clearing sale and finally the sale of the property by the real estate department. Sadly, what had been a longestablished small but highly valued supporting cornerstone of the servicing infrastructure of the company became a victim of restructuring during a period of immense commercial upheaval. This will be the subject of future chapters.

Board meeting minutes relating to the period 1975 to 1979 appear to have been mislaid. The Farmers’ Co-op continued to operate throughout these years in a relatively unchallenged environment despite the recent introduction of a Wrightson NMA branch office to Taranaki, Farmers’ Co-op continued to trade alongside the old yet respected adversary Newton King Ltd., who provided the necessary stimulus as a fierce competitor yet friendly foe. During 1975, in conjunction with Newton King Ltd a new sales pavilion and yard improvements were completed at Inglewood, giving this centre up-to-date facilities for handling cattle. In addition the duo completed renovations to the Stratford yards and in 1976 negotiations were in progress for the purchase of an additional area of land for further extensions, which was eventually purchased in 1977. At the Hawera saleyards, Farmers’ Co-op completed alterations to comply with the requirements under the various Acts and Regulations relating to saleyards. Other notable additions and alterations were made to a variety of other trading outlets. At Inglewood a modern self-service grocery department was completed,with an extended area for the display of goods. In October 1975 a Home Appliance Centre separate from the main Departmental Store was opened in New Plymouth. Renovations were also completed at the Waverley saleyards selling ring in conjunction with Newton King Ltd in 1976. Improvements relating to the uploading facilities at the Wanganui woolstore were completed in 1977, along with the reorganisation of saleyard loading bays at Hawera and Douglas to speed up the receiving and loading of stock.

The public was advised in a brief press editorial on 1 November 1977 that a new general manager had been appointed:

Mr T. C. Tarrant, chairman of directors of The Farmers’ Cooperative Organisation of New Zealand Limited has announced that Mr T. F. Molesworth, deputy general manager, had been appointed general manager of The Farmers’ Co-op as from 1 November on the retirement of Mr L. B. Smith.

Mr Molesworth commenced as a farm supervisor over 25 years ago and brings to the position of general manager, a sound knowledge of Taranaki farming practice. He was appointed district manager, central district in 1960 and in 1972 became district manager, New Plymouth.

Mr Molesworth has had a special interest in land valuation and livestock and is at present the president of the Real Estate Institute of New Zealand.

Tom F. Molesworth, although without any substantial corporate management experience other than that he had attained as an employee of the Society, did have exceptional ‘people skills’ and the appointment to the position of general manager was well received by the staff at a time when morale was low. His work in the Farm Supervision Department, with later promotions to branch manager at Stratford and New Plymouth and finally deputy general manager of the Society, had provided him with

Tom F. Molesworth, general manager of The Farmers’ Co-operative Organisation Society of New Zealand Limited, 1977–85.

a sound knowledge of the business. His farming background, apart from graduating from Lincoln College was enhanced by serving many years as a farm appraiser for the State Advances Corporation at Invercargill and Gisborne. He was also a keen golfer and in his younger years had played rugby for Southland and, as Murray Findlater recalls, ‘was very proud to have played against the British Isles rugby team in his younger years’.

His predecessor, Lyall B. Smith, the former general manager, sadly passed away at Taranaki Base Hospital, New Plymouth on Monday 26 December 1977, aged 64 years only two months after his retirement. During his 15 years as general manager he had had many highs and lows following the euphoria that eventually settled after the opening of the departmental store at New Plymouth.

Another familiar family name disappeared from the directors’ register too. Unlike other personalities whose stories appear in this history, Arthur Dickie was never an employee of the company, although his family had been associated with Farmers’ Co-op almost continuously from 1914. His association with Farmers’ Co-op was threefold, as a shareholder, a customer and a director of the company. The contribution of the Dickie family, had been substantial. Arthur followed his brother Eric onto the board as a director. In earlier years an uncle, Charlie, had had the added distinction of being elected chairman of directors. A longtime farming family in the Waverley district, Arthur farmed in partnership with three of his brothers, Eric, Morris and John. John, who trained in the Airforce in the Second World War, lost his life in an air accident in Auckland. Trading as ‘Dickie Brothers’, Arthur, Eric and Morris continued farming in partnership for more than 30 years. Arthur retired from farming in 1973 and from the board of directors in 1978.

Times were changing in many ways, with equal pay introduced in 1978 and the Society’s premises were continually being renovated. New Plymouth Service Station was upgraded to conform to the well known Atlantic design and adjoining premises at Inglewood were purchased to allow for future expansion. In 1979 the Motor Division now had an agency for Morris and Honda motor vehicles in some districts. The Society was also successful in obtaining the agency for the new Rover range. At Manaia a new store was purchased and upgraded to foodmarket requirements, with the old Manaia building repaired and converted to farm merchandise retailing.

THIRTY

Unparalleled Loyalty

Shareholders’ interests were the main consideration in all decisions made by the board of directors throughout the history of the organisation. Staff and management closely followed shareholders, providing an exceptional staff-customer relationship. The unparalleled loyalty and respect between the two parties was the hallmark of the Farmers’ Co-op operation and became ingrained into the cultural heritage of this enterprise of co-operation. The spirit of collective harmony was embraced not only in the Society’s constitution but also within day-to-day operations. Staff were considered a vital part of the infrastructure, and even during some of the company’s most difficult times they were foremost in the minds of decision makers. Despite the company’s reputation as poor payers, particularly in the early years when many employees received below award rates, they often continued to work for Farmers’ Co-op for their entire working lives. Allan Rankin, a modest gentleman endowed with the humility and respect of a bygone era, was one of the longest-serving employees. He was typical of many staff who showed unconditional loyalty towards their employer. Allan commenced employment with Farmers’ Co-op in 1929 to work alongside his father, also Allan Rankin, in the hardware department at the New Plymouth branch store, ‘The Mill’, on Powderham Street. He described his first impressions when he started with Farmers’ Co-op.

They only sold produce at that time – there was no grocery to any extent – they sold grass seed, fertiliser, bulk groceries and flour. I started at the Co-op in 1929 following in my father footsteps – he was the storeman and a man by the name of ‘Harris’ was the manager – three of us working there. For the first few weeks I was completely lost. I didn’t know anything about veterinary remedies, hardware, produce or anything, but you learn you see. At that stage we had no counters in the building, all the produce was laid out on the floors and that went on for many years. I was paid a storeman’s award – or something like that. When I first went for the job, the district manager was a man named Jack Salmon. I had to see him when I went for the job. He said, ‘your pay will be 25 shillings per week’. They paid me the first week and then the very next week he called me in and said, ‘I have something to tell you, we made a mistake, your wages will only be 22 shillings and sixpence. That knocked me back a bit! I thought it was rough but I could do nothing about it. Although I have heard that FCOS were not very good payers, I had nothing to complain about. My father’s wage was five pounds, and when I got married I also received five pounds.

Following Tom Molesworth’s appointment to the position of general manager in 1977, he recognised the need to form an association specifically for former staff members to meet from time to time to provide ‘the family’ with an opportunity to continue the life-long friendships many had formed with their fellow workers during employment with Farmers’ Co-op. Consequently, with the initial spadework completed by John Smith, Tom enthusiastically encouraged the formation of what became known as the FCOS 25 Year Club. The inaugural meeting, comprising 31 current and

former staff, was held on 7 March 1979. Its purpose was ‘to promote social meetings and to keep retired staff in touch with each other and the activities of the Society’. The first elected officers of the club were:

Patron: T. C. Tarrant

President: W. H. Ellingham

Secretary/Treasurer G. F. J. Bourke

Committee: (to consist of one staff member and one ex staff member from each district).

North: R. Lyndon – R. Atkinson

Central: L. Hucker – W. Elliot

South: J. Smith – R. Hammonds

A newsletter with contributions from the chairman of directors and general manager combining other ‘snippets’ of news concerning the welfare of members and staff, and matters of general interest is still circulated amongst members two or three times a year. The highlight is the annual dinner and meeting when new members have the privilege of taking their place amongst revered, more often than not older former employees of the company to share memories of the days of yore. At the time of publishing this history the following schedule includes current and former members and a few honorary members, with founding members shown with an asterisk:

ALLIED FARMERS LIMITED

25 YEAR CLUB Adams, G. Adams, T. Allen, G. C.* Anderson, E.W. Miss* Ashton, R. M. Atkinson, R. F.* Barlow, M. K. Bint, L. A.* Bishop, B. N. Blake, N. C.* Booth, E. A .G.* Boulton, A. T.* Bourke, G. F. J.* Bracegirdle, I. D. Broughton, G. Broughton, Patsy Brown, W. G. Burke, H. C.* Byars, G. A.* Callender, J. L.* Catchpole, K. W.* Chapman, D. Chittenden, Lesley Church, L. J.* Claringbold, L. R.* Cleland, M. Clifford, E. W. Close, Colleen Clough, Win Constable, Eric

Cook, P. L. Coombe, H. R. Corrigan, L. T. Court, G. C.* Court, R. F. Cruickshank, D. B.* Crutch, R.* Cunningham, B. Miss* Dawson, J. W.* De Castro, B. F.* Deegan, P. Dick, W. B.* Dobson, L. N. Dodunski, C. Donoghue, K. Miss* Downs, C. A. Drake, D.* Duncan, J. A. G. Dunlop, R. J. C. Edlin, B. J. Ellingham, W. H.* Elliot, W.* Evensen, T. E.* Fastier, W. S.* Fletcher, Mr C. Fowler, N. V.* Fowler, C. Fowler, Vera Garvey, S. Gernhoefer, J. F.

Gilbert, Betty Gill, Frances Glossop, J. R. Grant, A. Miss* Grantham, Chris Gray, G. H. Green, R. W. Hammonds, R.* Harrop, T. J. Hayward, R. H. Henderson, T. C.* Hendrick, F. G. Hicks, B. N. Hicky, M. How, H. C.* Hucker, L. * Humphries, W.* Hunter, Ken Irving, J. E. Johnson, C. H. Jones, S.* Jones, E. Kelly, M. King, V. Kruse, R. H. Lander, A.G.* Lewes, R. L.* Lewis, O.* Lewis, K. J.* Lithgow, R. A.

Longbottom, A.* Loughlin, J. Luscombe, B. M. Luscombe, P. Lynch, C. Lyndon, R. G.* Mann, B. Marshall, W. G. McMurray, B. Molesworth, T. F.* Monaghan, B. A.* Morrison, C. W. Moss, A. M.* Neal, W. J.* Nelson, R.* Newland, K. P.* Nix, K. G. Norgate, Miss R O’Grady, W.* Peacock, G. T. Pearce, A.* Petrie, W.* Pettett, A B. Philpott, B. L. Potroz, J. Preo, F.* Prestney, O. Rankin, A. J.* Rea, K. R. Rich, G. D.*

Richards, J. M. Robinson, I. L. Robinson, W. G. Ross, Alan Russell, J. Ryan, D. J.* Salisbury, J. D. Sarten, M. Sattler, D. Sefton, B. Shaw, K. H. Shaw, M. Slater, H. J.*

Slinger, H. F.* Smith, A.* Smith, J. S. B.* Smith, Mrs A E Smith, S. K.* Smith, Ada Smith, J. A. Smith, M. Smith, Mrs Irene Spence, R. Stening, W. N. Stewart, A. J.

Sutton, S. Tanner, C. V.* Tarr, B. H. J. Tarrant, T. C. Thatcher, A.* Thompson, G. Tippett, I. Toon, J. H. Train, B. A. Uncles, S. W.* Walden, T. J.* Wano, J.

Wano, M. J. Watt, A. Webb, F. A.* Webber, R. Weir, Ngaire Western, P. A. Whytcross, R. R. Williamson, G. J. Woller, L. J. Wood, H. C.* Wooffindin, H. F.* Worthington, J. W.

Thousands of people throughout Taranaki and other neighbouring provinces have been employed by the company throughout its long history. Many made significant contributions and sacrifices for this beloved rural trading organisation and it is with considerable regret that this documentary is unable to recognise everyone who has diligently served it, many with distinction. However, this history does pay homage to their contribution and the legacy they have left behind. In 1973 one diligent anonymous staff member with an eye on the future carefully and deliberately recorded in a notebook staff names, designation and employment inception date for all branches other than New Plymouth, and to him we owe our gratitude:

BRANCH POSITION EMP/INC. DATE

OPUNAKE BRANCH

Smith, J. S. B. Branch Manager, also Manager Hawera 08/02/43 Bayliss, R. H. Produce Tr. 10/07/72

Bishop, Barry Produce Dept. 19/05/69

Collin, Helen I. Grocery 22/11/65

De Castro, Brian F. Manager, Produce 17/06/40

Lewis, Ron D. Hardware 13/12/71 McKenzie, Donald Grocery 25/07/66

Symon, Peter B. Hardware 22/05/67

Waller, Len J. Grocery Manager 09/02/59

Woolford, Barbara J. Hardware 16/12/68

Young, Jeanette Carol Office 09/04/73 Young, Kelvyn A. Driver 25/09/67

Kidney, Fay D. Senior Office Clerk 10/09/73

Olson, Janice E. Grocery 27/08/73 Humphrey, Andrew Produce 16/07/73

PATEA BRANCH

Kelliher, Brian M. Branch Manager 11/03/47

Anderson, Peter Produce 26/06/72

Ansley, Iris T. Hardware 04/05/70

Ansley, Sylvia M. Grocery 12/02/68 Broughton, Bruce E. Hardware 20/01/70

Fisher, F. Eric Hardware 10/01/72

Garnett, Lorna G. Hardware 19/03/73

Heika, Kevin J. Hardware 16/04/73 Marshall, Joan G. Grocery 07/02/72

Marshall, Mavis E.A. Grocery 16/08/71

Matthews, Lewis J. Driver 26/01/70

Pycroft, P. A. John Grocery 05/06/73

Reardon, Patricia A. Office 26/07/71 Scobie, William Hardware 12/03/57

WAVERLEY BRANCH

Harris, John N. Branch Manager 12/08/63 Hammonds, H. Russell Produce 03/02/36

Aiken, Suzanne K. Grocery 14/12/70

Bourke, Sandra M. Hardware 16/07/73 Harris, Joan Grocery 12/08/64

Grimes, Stella G. Office 12/09/73

Huff, Janet Grocery 03/12/71

Hughes, Ronald G. Grocery 27/01/70 Lister, Leo A. S. Driver 25/09/72 MacGrath, Christine Office 24/02/69

Owens, Jean M. Grocery 17/01/66

Rapson, Alexander J. Produce 22/11/54

Rea, Keith R. Hardware 05/12/60

Wallace, Allen Hardware 19/03/70 Zimmerman, Leonard George Produce 19/10/70

HAWERA MACHINERY DIVISION

Walden, T. James Manager 05/02/45 Brieseman, David 04/12/72 Doyle, Anthony M. 15/01/73

Mackay, Paul J. Sh. Assistant 11/06/73 Picard, Maurice J. Farm Machinery 26/02/69 Pollock, Phillip 14/09/70 Smith, Leslie James Clerk 14/04/69

INAHA BRANCH

Gamlin, Jack A. Branch Manager 31/05/65 Carter, James Lewis 22/11/71

KAUPOKONUI BRANCH

Thomson, W. Vaughan Branch Manager 02/07/62 Baker, Sheila M. Clerk 28/02/72

Brown, Garry J. Van Driver 09/08/73 Bryant, James M. Produce 27/06/66 Burton, Peter B. Produce 20/06/69 Coombe, Gail S. Clerk 13/08/73

Elmes, Evan David Hardware 13/03/73 Hall, Hector Produce 03/06/63 Maindonald, Milton W. Grocery 11/05/70 Robinson, Ivor L. Hardware 02/07/62

Sutton, P. Fay Grocery 07/03/66 Walker, Cornelius G. Produce 07/08/67 Murdoch, R. Neil Grocery 02/07/62 Upson, Kevin Neil Grocery 03/07/70 Malcolm, R. C. Hardware 14/11/73

HAWERA BRANCH Chisholm, Chas. B. Branch Manager 06/06/61 Barkla, Newton S. Hardware 14/02/72

TO

SECRETS

Benson, Peter F. H.A. 27/05/68 Booth, Trixie M. Grocery 14/06/72 Broughton, Morris R. Grocery 25/08/69

Cann, Susan M. China 26/03/73 Chittenden, Kenneth M. Produce 23/07/73 Cleaver, Sydney Grocery 15/05/61 Crutch, Raymond H.A. 03/02/71 Curtis, Alfred Produce 03/06/63 Espin, Vivienne R. Clerk 10/12/71

Evans, George Produce Manager 09/08/54 Fogarty, Elaine M. China 31/08/66 Glossop, Joy R. Hort. 05/02/73 Hart, J. Anne Clerk 24/03/66

Hicks, Bruce N. Produce 18/05/64 Hicks, Pamela L. 08/04/68 Hokopaura, Bernice P. Hardware 26/03/73 Lambert, Rudolph I. Produce 15/12/69 Oakes, Sydney Jack Hardware 23/11/72

Pacey, Alma E. Home Appliances 20/05/69

Peters, Andrew H. Grocery 02/02/70

Phillips, James John Produce S. 26/03/62 Schuler, Margaret A. Grocery 01/09/69 Sheehan, Patricia A. Produce S. 05/08/63 Slater, H. J. Produce Sales 12/09/38 Smart, Margaret May Hardware 20/08/73 Smith, Spencer K. Produce 18/09/61 Spice, Clifford G. Produce Sales 09/07/62 Sugden, Mildred Hort. 11/06/73 Thatcher, Allan Grocery 14/05/51 Tucker, Wilfred J. Van Driver 11/07/66

Verbeet, Irene E. Grocery 25/06/73 Webb, Frederick A. Grocery 28/11/38 Wells, Keith G. Hardware 07/08/72 Wren, Frederick J. Hort. 24/11/69 Walden, Thomas J. 05/02/45 Brieseman, David Machinery 04/12/72 Doyle, A. Maurice Machinery 15/01/73 Mackay, Paul J. Machinery 11/06/73 Pollock, Phillip Machinery 14/09/70 Smith, Leslie J. Machinery 14/06/69

HAWERA OFFICE

Lowther, Alice G. Trade 15/10/73 Amon, Lynley R. Typiste 16/12/68 Bassett, F. Russell Sup. 01/03/65 Bloor, Raewyn G.3 Ins.and Sup. 26/06/72 Bracken, Margaret A. Office 08/03/71 Brady, Jeanette M. Office 26/07/71 Brieseman, Valerie M. Office 13/09/71 Callaghan, Bruce J. Sup. 07/07/69 Church, Leslie J. Office P.T. Coxon, T. R. Land 11/01/71 Daunt, Francis E. Cleaner 18/08/50 Goldup, Denise C. Office 13/05/69

Harris, Noreen A. Office 10/03/70

Headley, Helen L. Office 01/12/71

Jennings, Lynnette Office 18/06/73

McCutchan, Nora Office 03/02/70

Norgate, Irene L. 06/01/64

Prestidge, Rosemary O. Office 03/01/68 Quin, Karen M. Office 23/10/73 Read, Patricia M. Office 09/07/73

Rudge, Molly Office 10/10/73

Schrader, Catherine A. 18/03/71 Scown, Sonia B. 05/01/71

Standford, Kathleen P. A. 13/10/69

Tangipo, Joseph 22/02/65

Thomas, Barbara N. 07/12/70 Briscoe, E. Noel 07/12/72

Cameron, Ronald C. 21/07/71 Downs, Chas. A. 24/01/61

Fowler, Clement A. 24/04/63

Heroic Efforts

Norm Blake, company secretary and one of Farmers’ Co-op’s long-serving employees, retired after 42 years with the company. Commencing employment in 1937 as a clerk, he attained the positions of chief accountant and acting secretary and assumed the role of company secretary in 1950. After leaving school he worked for W & R Fletcher Limited as costing clerk and a few years later joined Farmers’ Co-op. During his long career he held many positions, including for many years that of assessor of the national award for the New Zealand Stock and Station Industry. He was also a Fellow of the New Zealand Society of Accountants. He played an integral role in the executive during the company’s most buoyant years and served under four general managers. This loyal, quiet unassuming man, whose actions spoke louder than words devoted most of his working life to Farmers’ Co-op. He had a keen interest in the outdoors and tramping, and with his wife, Joan Faulkner-Blake, he leased the Dawson Falls Tourist Lodge on Mount Egmont from 1942 until 1948. He was member of the Egmont Alpine Club, Horticultural Society, founder and Life Member of the Hawera Astronomical Society and an active member of the Hawera Chess Club. He also represented Taranaki at both hockey and cricket.

Internal promotions for employees who showed promise had always been part of the company’s strategy. Succession from within also ensured a certain amount of continuity. Trevor Pope showed exceptional qualities. With an agile mind and quick wit, he joined Farmers’ Co-op at the Wanganui woolstore in 1972, and with Norm Blake’s retirement imminent, Trevor was selected to transfer to Hawera to understudy him and in 1979 was appointed company secretary and head office accountant.

Economies of scale and critical mass were the focus for Farmers’ Co-op in 1979. The company began to suffer growing pains associated with its significant building programme during the past two decades and its more recent expansion plans. There was also a certain amount of unease in the business arena, brought about by the introduction of technology and competing large dedicated trading stores. The takeover of Farmers’ Co-op by Crown in the Wanganui/Rangitikei area also opened an opportunity to expand into the region. During the past year the company had exercised pre-emptive rights and taken over ‘the half interest in Farmers’ Co-op Distributing Company in Farmers’ Co-op Wools Ltd at Wanganui’, prompting general manager Tom Molesworth to recommend to the board that: ‘it was necessary to back up our activities by extending our operations into the Wanganui area’.

What seemed a relatively simple and logical step, considering past successes within the Taranaki region, with the benefit of hindsight, most long-time shareholders and those who kept an eagle eye on the happenings of this evergreen provincial co-operative consider the decision to venture into the south to be a turning point in the company’s fortunes.

Discussions had already taken place ‘with a person who knew the district well and who would be

most suitable to be in charge of the operations in Wanganui’. He would also be able to obtain other suitably qualified personnel. Negotiations over the coming months culminated in an agreement to purchase Londontown Enterprises Ltd, the leading departmental store in Wanganui. The purchase of Londontown allowed entry into the United Stores Society, a well known buying group for drapery and manchester goods, with excellent brand names and exclusive lines. A retail outlet for farm merchandise was also established at a separate location. At the same time the Society was committed to building another floor on its large New Plymouth departmental store. In addition to these quite sizeable projects, the Society’s manual accounting system, involving ledger machine production of statements and manually attaching invoices, handled by the three district offices, New Plymouth, Stratford and Hawera, required urgent modernisation. Like many organisations at this time, Farmers’ Co-op directors and management were challenged with the introduction of the new and seemingly complicated world of computers for accounting purposes. Responsibility for this complex technology was placed in the hands of company secretary Trevor Pope.

With the company’s coffers under stress due to adverse trading conditions, general manager Tom Molesworth had no option but to elaborate on the worsening financial situation being experienced by the Society and the industry as a whole at the annual general meeting of 1979. He was particularly concerned about the company’s debtors, which were now ‘at a level which is hard to sustain’, and having an effect on the Society’s liquidity and the high interest charges on borrowed money. Controls had been locked in place but were not having the desired effect. He emphasised that although the Society would continue its traditional role of seasonal assistance to shareholders and clients, ‘it would now follow a more formal procedure in providing this assistance’. The authorised share capital was increased by $2,000,000 by the creation of 2,000,000 Ordinary Shares of $1.00 each, making a total capital of $5,000,000 divided into Ordinary Shares of $1.00 each.

An annual review with the Society’s bankers also took place in August 1979, when they perused the company’s accounts for the year and expressed concern at the decline in shareholders’ equity from 48 per cent to 38 per cent and criticised the methods of funding the Society’s expansion programme. Shareholder’s contributions had been far too small, ‘something like $600,000 out of over $2m in two years’, stocks were too high, and debtor level had increased disproportionately to the increase in volume of business. Debt servicing costs were also a matter of concern. The Society’s bankers also considered that the present method of obtaining fully paid-up share capital was far too slow and suggested a drive for additional shareholders. These comments did not come as a surprise to the Society. The bank made the firm suggestion that Farmers’ Co-op obtain the services of an independent consultant, expert in company procedure, to appraise the current situation and make recommendations. Subsequently Trevor Pope, the company secretary, had discussions with the Society’s auditors and they agreed to bring in one of their own personnel. The board had no option now but to meet the growing difficulties head on and stated: ‘We feel this advisable in the face of the Banker’s comments, and to assist Directors and Management in planning future operations.’

This resulted in the first of a number of reports undertaken by Mr R. N. Taylor, of Wilkinson Wilberfoss, Wellington commissioned by the company over the next few years. These were referred to as the ‘Taylor Reports’. Meanwhile seeking an opportunity to open a Farmers’ Co-op trading arm in Marton and Feilding districts to support representatives already operating in the area, negotiations were underway to lease a property owned by C. H. Campbell Limited, manufacturers, distributors and servicing agents in Marton, with a view to sub-leasing the workshop area and carrying on the Society’s traditional stock and station operation from the premises. Unfortunately due to the senior partner’s age, with none of his family interested in taking over the business, he had no option but to sell and following an inspection of his accounts and the premises, it appeared ‘a very viable business’, together with the exclusive New Zealand agencies for certain brands of plant and machinery. The immediate impression was that ‘such a business was too good to let go’, and C. H. Campbell Ltd

soon became a wholly owned subsidiary of Farmers’ Co-op. The Marton business and store was taken over in December 1979 with Mr Campbell managing the business until early in 1980 when a manager, Mr Ron Bush, was employed and Mr Campbell retired. Further expansion was also under way in Feilding with the purchase of a building from the C. G. Taylor Trust. The store was opened for business on Friday 16 November 1979.

An inherent, unshakeable spirit of enterprise continued to govern the ongoing activities of the company. The now embedded focus of progress would not permit a break from the continuing development and the company became distracted by its recent activities in Wanganui and Manawatu. Investigations following the bankers’ report revealed some serious underlying internal difficulties with stock levels that were having a significant and detrimental effect on the Society’s liquidity. At a board meeting on 29 April 1980, ‘the gloves were off’ when general manager Tom Molesworth reported on the ‘Financial returns’:

Increase in Stocks $1,464,357 = 32.69%.

With only 29.34% increase in Retail T/O this increase is far too high. If we allow 25% increase as fair and reasonable we are at least $344,322 ahead and this does not take into account any excess we had on hand at 31 March 1979. Increase in Sales Tax has been given as one reason for the increase. Looking at the stock taking schedule, however, we find dated stock, i.e. 1978 and earlier, as follows:

Farm Supplies $108,265

Hardware $ 90,768

Fertiliser $ 843

Horticulture $ 3,540

Home Appliance $ 11,485

China $ 14,191

Toys $ 16,874

Drapery $225,432 $471,398

The general manager went on to say:

It is acknowledged that valid reasons can be entertained for a fair percentage of 1978 stock still to be on hand, but by the same token it must also be acknowledged that there will be a percentage of 1979 stock already redundant. Therefore working on a ‘swings and roundabouts’ situation our excess stock must be in the vicinity of $450,000/$500,000. That means at current penal rates of interest an additional cost of $78,750 p.a. or $6,562 per month, and no company in our type of business, including FCOS, can afford this situation and stay viable.

There were few words of encouragement as the general manager elaborated further on the company’s precarious position that would show no sign of improvement in the immediate future as they were entering the clearing-sale season and having to pay out on these sales within a 14-day period. Due to this, he said, ‘our debtor situation will no doubt worsen rather than improve’.

Total indebtedness as at 31 March 1980 – $6,743,993 – compared to 31 March 1979 – $4,138,523 – $2,605,472

The only consolation during this period was that the Society had met all its running costs, carried out certain items of repairs and maintenance and financed increased debtors to the extent of $2,994,570. Increased stocks $1,464,337 and capital expenditure had accounted for $558,385, totalling $5,017,312 and although this, in isolation, appeared an achievement, the bankers felt otherwise and had stated that ‘they were in no position to provide extra finance’.

This presented a two-pronged problem for the Society. Firstly, in the short term they had to meet the current trade creditors as accounts fell due and pay livestock credits on due date, and in addition meet

the day-to-day expenses, including wages and salaries. Secondly, in the intermediate and long-term they had to pay for the cost of renovations and improvements at New Plymouth, possible necessary improvements and renovations at Waverley, Inglewood and the Stratford store and saleyards. There was also a commitment to continue reorganisation at Hawera, including retail and administration projects. With all this there was the necessary requirement for capital expenditure involved in other committed expansion plans and further repairs and maintenance with regard to plant.

Increased borrowing was obviously not going to solve the problem, with penal rates in excess of 17 per cent. However, consideration was being given to replacing the Society’s present short-term financial commitments with long-term accommodation using the New Plymouth department store as collateral and this was satisfactorily arranged on a first-mortgage basis. The point was made that in the past interest charged and received had substantially cancelled each other out, but during the 1979/80 year the company’s interest bill amounted to 25 per cent of the previous year’s profit. It seemed to all concerned incongruous that despite some meritorious performances within the operation, the company had arrived at such a difficult point in its history. It was necessary to sell all dated and slow-moving stock to produce cash and this was to be done before any other essential goods were purchased. Marketing co-ordinators were introduced to have ‘eyeball-to-eyeball’ discussions with branches and departments and physically inspect the stock in conjunction with stock sheets so necessary arrangements could be made for the disposal of all slow-moving stock. This would prove a mammoth task, but was now a main priority for the Society and it would kick off the sale of goods during the month of May with what they called the ‘Mayday Promotion’. It is not certain if the company intentionally used the standard distress call, but it was certainly an appropriate name at this stressful time of continuing financial difficulties. It was indeed time for reappraisal and consolidation before the policy of progress could continue.

Over the ensuing months of 1980 financial returns for three months to the end of June showed a reasonable increase in turnover, although expenses also increased. There was also a four per cent wage increase due in August that, following negotiations, could blow out to 10 to 13 per cent, and unfortunately debtors continued at a level that the general manager said yet again ‘was hard to sustain’ and was still having a significant effect on liquidity. Approaches to the Government for relief from the burden of seasonal finance to farmers had met with no success. In fact the Prime Minister advised the Stock & Station Agents Association that it would be in their best interests to tighten up the mechanism for advancing credit to farmers. Mr Molesworth reminded the board that there was to be a record payout of dairy factory proceeds on 20 August 1980, and that every endeavour be made to ensure the Farmers’ Co-op received its share of farm payments. Increases in the merchandise and motor turnover showed an upward trend in September, but debtors continued to rise and the general manager laid his cards on the table about the difficulties that prevailed:

Debtors – Total as at 31 August 1980 – $10,877,983 and represents an increase of $2,765,654 – 34.09%. Of the total debtors, $3,754,995 (34.91%) is owing over 3 months compared with $2,761,525 (34.22) in 1979. This means that the aged debtors have increased by $993,470 over this period last year.

He went on to say:

We are also some $187,000 worse than in July, and this, in a nutshell, is where our liquidity problem lies. Payment of accounts in August was to say the least extremely disappointing, and such was the case that some extreme measures had to be brought into effect with pressure being brought to bear on outstanding accounts and the emphasis must be on substantially reducing the overall debtors’ level and to institute a system of control for future lending.

Stock on hand continued to increase and turnover in most departments was described as poor. For instance, the order book for all drapery purchases was closed and authority to purchase in other departments was limited to branch managers. Expenses comprising payments owing on trade goods for August were in excess of receipts obtained, which if allowed to continue would bring serious

consequences. Although at times increased turnover was helping to some degree, replacing stock was having a negative effect on sundry debtors, which continued to climb each month. Trade and sundry debtors had increased by nearly three million dollars during the previous 12 months and stood at $11,057,629 as at 31 March 1980. It is interesting to note that despite this factor being one of the major impediments to an improvement in the Society’s financial state, such was the Society’s commitment to its shareholders that the thorny question of credit was only referred to in a veiled reference in the chairman’s review in the annual report:

In meeting our trade commitments and other overheads on due date, it is obvious that we must review the system of charge accounts and advance to clients.

With the Company being disadvantaged by the penal rates of interest borrowed against the allowable chargeable rate to overdue clients it is a matter for some concern.

Finally the commissioned Financial Review requested by the company’s bankers and undertaken by Wilkinson Wilberfoss, dated 20 February 1980, was tabled at a directors’ meeting on 24 February 1981. The Financial Review was essentially based on the previous year’s figures up to 31 March 1980, and did not take into account a number of remedies already instigated by the Farmers’ Co-op and included in this report. In a memorandum to the directors, the general manager reviewed the report conducted by R. N. Taylor, management consultant, stating:

The report is very full and it deals with the financial structure of the Company, its funding, possible supplies of additional finance and management policy.

To accept such a comprehensive report in its entirety and to make recommendations at short notice is neither possible nor prudent but for the information of directors it is considered right and proper that at this stage at least the summary of their findings should be made available to them.

Mr Taylor explained:

In presenting our report it must be understood that our comments are made at a given point in time, substantially 31 March 1980 and since that date there have been changes in individual items. Many of these changes have been the result of conscious management policy to control liquidity. However, to accurately gauge the effectiveness of these contrasts will require further comparison as at 31 March 1981 when season factors are constant.

However, as far as many management and executive were concerned the report only confirmed their own opinions and corrective measures had already been taken or put into place. In fact the general manager stated that ‘All these measures have been discussed from time to time during the year at board meetings’. They were also in disagreement with some of the findings and suggestions on capital funding, but they did agree that for the company to ensure adequate growth there was a very strong necessity to increase shareholder capital, and methods to achieve this would exercise the thoughts of the directors and management both in the short and the long term.

A summary of the ‘Taylor’s Report’ review of The Farmers’ Co-operative Organisation Society of New Zealand Limited was as follows:

1. Liquidity ratios for the company have deteriorated in recent years although they tend to be in line with other stock and station agents.

2. The company is not generating sufficient retained profits to maintain a shareholders’ equity ratio of 50% which is the generally accepted norm.

3. There has been a weakening in the stock turn ratio which suggests scope for reducing investment in stocks by upwards of $1,000,000.

4. Debtors ageing appears to have been effectively controlled despite a 49.8% increase in total debtors. However, there is probably some scope for reducing debtors in the four months and over category.

5. Apart from borrowing to finance building alterations there appears to be little scope for long-termdebt borrowing.

6. The company’s earning rate is low by general company standards and is not sufficient to ensure growth in shareholders’ equity matches the rate of inflation. High priority must be given to raising the level of profitability.

7. The ability to raise additional shareholder capital is restricted by the fact that the company is a true co-operative and therefore does not provide scope for capital growth in investment.

8. The most likely source of raising large amounts of capital is by establishing a new class of shareholders who receive a return from dividends and capital growth rather than trading rebates. To do this, the Directors would have to agree that the company should move away from its founding principle of being a ‘true co-operative’.

9. New share capital could be in the form of specified preference shares which will enable the company to obtain tax deductibility for dividends paid.

10. Liquidity problems faced by the company are likely to continue for the foreseeable future. To provide a measure of predictability a system of cash budgeting tied back to a total system of budgeting, profit planning and management control should be instituted. From our analysis we believe the following steps should be taken in order to more clearly define the long-term needs for cash funds.

– A comprehensive system of planning, including profit and cash budgeting, should be introduced and integrated with the company organisation structure.

– Each area of activity should be monitored to ensure effective utilisation of resources leading to possible freeing up of cash funds.

– Consideration must be given by management and the board of directors to the possibility for moving away from the co-operative concept, thereby improving the ability of the company to raise capital from investors rather than those solely interested in obtaining rebates.

Although chairman of directors Mr T. C. Tarrant had emphatically reaffirmed and endorsed the board’s commitment to promote ‘the growth of the TRUE CO-OPERATIVE’ in his annual report of 1980, it seemed inevitable that continuing down the path of expansion, building programmes, shareholder rebates and less-than-satisfactory control of credit in a volatile changing industrial climate would bring the company to its knees.

Meetings were held in Wellington with Messrs Hodkins and O’Neill (ANZ Banking Group) and R. Taylor (Wilkinson Wilberfoss) on 23 March 1980 where a full and frank discussion took place. Farmers’ Co-op representatives acknowledged agreement with a great deal of the report and it was now necessary to undertake a review of all the prevailing circumstances. The bank was appraised of steps already taken to remedy the matters of concern, particularly in relation to stocks, debtors and the cash-flow situation. It was also now a matter of bringing the results of the financial year ending 31 March 1980 into the frame to fully appreciate where the company was at this point in time. Depending on these results, strategies for the company, both short and long term, could then be determined.

Change was in the wind, with chairman Thomas Cleverley Tarrant retiring by rotation, in accordance with age requirements, at the annual general meeting on 31 July 1981, after 22 years on the board, eight as chairman of directors. The Tarrant family had been at the cutting edge of the Farmer’ Co-op from the beginning when his grandfather, Charles Cleverley Tarrant, chaired the first public meeting on Saturday 16 December 1911, convened by George Buckeridge at Hawera, ‘to consider the advisableness of starting a co-operative business’. Thomas Cleverley Tarrant was born in Feilding, the oldest son of Thomas and Maud Tarrant, and moved with the family to Ararata to live on the property of his grandfather. In later years following his marriage to Mary (née Harley), they sold the properties on the Makino, Tirimoana and Morea Roads and purchased a farm at Beach Road, Waverley. Thomas, like his father and grandfather, took an interest in community affairs such as school committees, chopping and athletics. He was president of the Waverley A & P Association

and deputy president of Federated Farmers. Apart from his position on the Farmers’ Co-op board, Thomas served as a director of the Manawatu West Coast Stud Romney Company and a committee member of the Manawatu West Coast Romney Club and judge and inspector on behalf of the New Zealand Romney Council. At such a critical time for Farmers’ Co-op his imminent retirement was viewed as a defining moment for a company that was searching for shelter and calm waters.

The fortunes over its history has, as we already know, been mixed. Over the 68 years it had at times waged a grim struggle against what seemed insurmountable odds, and its story is one of courageous enterprise by men and women of the highest integrity and initiative. Now the sequence of events and quickly changing business environment presented possibly the most difficult challenge faced by the company so far.

Discounting for prompt payment of accounts failed to get majority support at the annual general meeting of the Society on 30 July 1981, attended by 150 shareholders. Gordon Gibson from Manaia asked that the directors give urgent consideration to making provision for a reduction of overdue accounts by offering a discount for prompt payment, but the motion was defeated when put to a vote. Directors and shareholders who spoke against the motion said that the present system was adequate and the board was already examining ways of correcting the problem through its branch credit managers. Mrs Whiting from New Plymouth said that ‘the board should send its less than desirable clients elsewhere’. Another speaker from the floor said it was common knowledge in the rural area that bank managers, in attempting to assist clients, advised them to leave the Farmers’ Co-op account until last. Criticism of the Society’s difficulties with slow-paying clients, who incidentally paid no interest on outstanding accounts, arose from comments by the retiring chairman Mr Tarrant. Mr Molesworth, the managing director, entered the fray and told the assembled shareholders that the Society was facing increased interest charges which could not be offset by charging clients more, and ‘the Society can no longer continue to finance clients on an indefinite basis’. Figures showed that the company had been called on to more or less permanently finance clients to the extent of $4 million and this, in the face of increased competition coupled with a downturn in retail trading and reduced livestock commissions, could not continue. Despite a record turnover and gross profits the costs of operation had eroded the 1979/80 profit by 53.8 per cent. It had also been resolved that due to a shortage of funds and the desire to maintain strength, the coming year’s cash rebate would be paid in shares only. This brought a response from Mr Ingram of Hawera, who said ‘that a considerable amount of trade had been put through the company the previous year on the understanding that they would receive a cash rebate, but it was not being paid. What assurance did they have that this would not happen in the future?’

Tom Molesworth was quick to remind the meeting that the previous year shareholders had received a 16 per cent return on capital before additional shares were allocated to them, but this year, due to the inflation rate and the increased cost of maintaining and holding stocks, all the earnings would need to be retained by the company and it was only possible to do this by allocating shares instead of the cash rebate. While the directors were mindful that adequate return to shareholders should be made, it was also essential to maintain the shareholders’ assets and business profitability level. There was a certain amount of disquiet amongst shareholders concerning what were seemingly radical moves for an organisation which had in the past always acceded to most of the expectations of its supporters. Times were changing rapidly and although aged debtors to 31 March 1981 were showing a reduction of $853,425, the total debtors stood at $14,009,479 and reports relating to ‘on the spot’ stock on hand showed that stocks overall were ‘clean’ with only some 10 per cent being pre-1980. It was a marked improvement. However, turnover continued to decline in the ensuing months.

With the executive and board of directors preoccupied with grappling with the company’s financial complexities, one might gain the impression that little else of moment had been happening within the organisation over the past two years. But there was much going on. The additional floor

situated on top of the New Plymouth store was now well under way, with escalators being added and extended. There was considerable reorganisation of a number of the departments, with a fabric and homecraft department being the first to move to the new lofty home. A new coffee lounge adjacent to a conference room and a demonstration area, and with wide panoramic views of the sea, had been placed on the top floor. In addition, a small rest lounge was located in the area, with provision made for mothers to tend to the needs of babies. The main reason for constructing the new floor was to allow for further expansion, including some new departments and the enlargment of others. A function to celebrate the opening was held on 20 November 1980 from 5:30pm to 7:00pm.

The new operations at Feilding and Marton were now trading and appeared to be making progress. The livestock representative had been well accepted by the district and following a visit by Mr B. D. Veitch, director, and Mr T. Pope, company secretary, they were satisfied that the assets were being maintained and that sales debtors were at normal levels. A farm supplies representative was appointed to service the Ohakune area to complement the opening of the Ohakune premises on 22 October 1981, with Messrs Williams, Blyde and Kellick in attendance. The local mayor and a number of other dignitaries joined the directors for a luncheon. With returns for the initial period ‘proving more than anticipated’, the manager, Mr G. S. Hanna, had to adjust opening hours to deal with the tourist flow through the area.

At Inglewood a contractor commenced work on converting the ‘old Elmes property’ into a carpark. The general manager reported that he had also had discussions with Mr Crone regarding his service station property at Inglewood and that he and Mr Crone had agreed that subject to the board’s approval the Society would purchase the land, buildings and plant, with parts and stock at valuation on possession at the 1 October 1980. Mr Crone was prepared to accept as payment the parts and stock for the cash price plus a predetermined sum as part payment of the land and buildings, with the balance on a first mortgage for three years. He was also prepared to continue as car salesman and pump attendant, whilst his employee Mr Potroz would continue in the workshop as an employee of Farmers’ Co-op. The purchase and conditions were agreed and confirmed by the board. The Stratford saleyards were also being upgraded. Land and buildings at Taumaranui owned by Nolan’s Building Ltd and occupied by Neil Shaw Ltd had been on the market for some time and, following an offer from the lessee of $12,000.00 and seeking advice ‘from directors knowledgeable of the area’, it was ‘resolved to sell the property’. The Motor Showroom at Hawera was also upgraded and incorporated the machinery department operations into the farm supplies on Princes Street, Hawera.

On the lighter side, in 1980 the Inglewood branch of Farmers’ Co-op in conjunction with the Skellerup Young Farmer of the Year Regional Final organised a gumboot-throwing contest that was attended by 200 people and proved a very popular event. Many took part, including the local constable, traffic officer, mayor, compere Bob Parker, YFC contestants and members of the public. The Inglewood Press reported:

Although a straight line down the road marked out the ladies and gentlemen’s records, gumboots flew in all directions. There is obviously a knack in throwing the ordinary gumboot. Some went right onto the Hotel roof to the right, onto the roof of Farmers’ Co-op to the left, one hit a spectator in the FCOS doorway, one turned the corner into the carpark, whilst others hit the ladder against the roof and No Parking signs. All in all lots of fun. Following the contest Gary McBeth auctioned off the gumboots. The eventual winners were Teresa Elliot for the ladies, with a great throw of 22.7 (her first attempt landed on the roof): and Stephen Wackrow for the men with his mighty discus-style throw of 29 feet. They received rainwear prizes.

In-store competitions held by Farmers’ Co-op included ‘Guess the weight of a Friesian calf’, which was won by Owen Hastie of Tariki with the closest guess of 52kg. The calf, actually weighed 52½ kg. Owen’s prize was a pair of gumboots. Another in-store competition held by Moanui Trading Store – ‘Guess the number of gumboots in the window’ – was won by Diane Collingwood for the ladies and Kelvin Jackson for the men. The correct guess of 97 won them a pair of gumboots each.

Exercise in Survival

New faces at the first board meeting following the annual general meeting, on 30 July 1981, were assured that they would ‘get every courtesy from the executive management’, and that should any information be required they should feel perfectly free to approach the executive. With what seemed like almost insurmountable issues for the directorate to consider, the electing of a new chairman at this time was of critical importance. Whoever stepped into Tom Tarrant’s shoes would need an excess of management skill, good fortune and considerably better weather to steer this ageing enterprise into a safe harbour. Managing director Tom Molesworth took the chair and called for nominations. Naturally parochialism often showed when the stakes were high and this particular issue seemed to split the board, one stance Hawera based and the other that of the more outlying areas of the province. Mr A. G. R. Williams was nominated for the position of chairman by Mr B. D. Veitch and seconded by Mr R. A. Death. There was a further nomination of Mr P. M. Blyde by Mr E. J. Corlett, seconded by Mr J. A. Halton. Both directors accepted and spoke to their respective nominations, and the following secret ballot resulted in the election of Mr A. G. R. (Reeve) Williams.

Mr A. G. R. (Reeve) Williams, chairman The Farmers’ Co-operative Organisation Society of New Zealand Limited, 1981–87.

COURTESY OF SOUTH TARANAKI STAR

The family of Reeve Williams was not unaccustomed to being in the spotlight. Reeve’s grandfather was one of the earliest pioneer settlers of the Hawera district, and his father, Griff Williams, had held a number of executive positions on local boards and public bodies. Although the task at hand was a daunting one, it was a natural progression of Reeve’s continuing service to the farming sector and the province as a whole. He had served on the Hawera County Council, Egmont National Park Board, Hawera High School Board, Hawera Star Board and Taranaki Harbours Board and farmed a large holding in the Ohangai district. This was a most demanding new role. From a provincial perspective his credentials were excellent and the board was pleased with the result. The newly elected chairman called for nominations for deputy chairman. There were two nominations, Mr P. M. Blyde and Mr D. E. Rider, and in a secret ballot Mr P. M. Blyde was elected. This was a popular choice and he would prove to be a tower of strength to the chairman as the decade unfolded.

DIRECTORS MANAGEMENT EXECUTIVES

A. G. R. Williams Ohangai (Chairman) P. M. Blyde Lepperton (V/Chairman)

MANAGING DIRECTOR: T. F. Molesworth

C. H. Betts

Inaha

R. L. Bremer Waverley

P. E. Bulfin Hawera

E. J. Corlett Ratapiko

DISTRICT MANAGERS:

K. P. Newland Hawera

R. A. Death Ararata P. A. Western Stratford

J. A. Halton Kohuratahi G. M. Hobson New Plymouth

A. R. Kellick Mangamahu P. O’Shanassy Wanganui

J. A.T. McEldowney Okato

J. P. V. Norman Manutahi

D. E. Rider Kaponga

D. B. Sarten Opunake

A. W. Tibby Tokirima

B. D. Veitch Hawera

SECRETARY: T. J. F. Pope

MARKETING: I. B. Spilman

FARM SUPPLIES: A. M. Moss

MOTOR DIVISION: L. Watkins

Five directors were nominated to the executive committee: Mr A. G. R. Williams, Mr P. M. Blyde, Mr C. H. Betts, Mr D. E. Rider and Mr B. D. Veitch. For the record, directors and trustees were also appointed to the following subsidiary companies and the Farmers’ Co-op Superannuation Fund administered by the board of The Farmers’ Co-operative Organisation Society of New Zealand Limited:

Nolan’s Buildings Limited.

West Coast Mortgage & Deposit Company. Taranaki Farmers Wholesale Limited. Farmers’ Co-op Wools Limited. F. H. Campbell Limited.

When Ron Ashton departed from this meeting, which he had attended at the invitation of the board following recent retirement after 15 years as a director, he severed a 49-year association with the company, having worked for Farmers’ Co-op in his youth drafting lambs for the Patea Freezing Works, as a farmer shareholder and finally as a director. With the former immediate past chairman Tom Tarrant, he was precluded from continuing his position on the board due to a provision in the Articles of Association (clause 101) that stated ‘any director who attains the age of 67 years whilst holding office shall automatically cease to hold office on the dissolution of the next annual general meeting at which he shall retire from office’. Fortunately this somewhat archaic requirement no longer applies as discrimination on the grounds of age is now prohibited under the New Zealand Bill of Rights Act 1990. Peter Blyde rose to thank Ron Ashton for ‘the excellent company he had been as travelling companion in the long years’. (He had provided Mr Ashton with a ride from and to his home at Inglewood for many years to attend meetings of the board of directors at Hawera.) There were other words of appreciation for his service from the assembled company, followed by applause.

Robust, no-holds-barred supplementary reports from the managing director to directors were now circulated to provide board members with a more comprehensive and detailed account of the state of the company’s affairs, both financially and concerning other matters such as the expansion programme, which was now coming under close scrutiny and being blamed in some quarters for stretching the resources of the company. The first full directors’ meeting chaired by Reeve Williams on 25 August 1981 provided a complete appraisal of Farmers’ Co-op’s position, including returns for both trading and financials. In general there had been no significant improvement in most areas and rumours concerning the company’s financial difficulties were now circulating. The managing director reported:

There have been comments from some quarters that the expansion programme has stretched our resources and caused the problems of liquidity.

It can, however, be strongly debated that if the pre-1976 philosophy had continued to prevail, it would not have changed the liquidity situation and F.C.O.S could have been faced with other problems.

There is no doubt we now have a more virile organisation with a stronger base for our operations and improved staff morale.

It is not disputed that the expansion has caused problems, particularly in administration and accounting, and which has been part of the contributing fact to the drop in profits.

Branch and departmental performance has varied, but it is noted that where management with experience and expertise has been at the helm, performance has been consistently satisfactory.

Analysis of results from problem areas shows that reasons include: indifferent management showing a lack of ability in motivation and communications; ‘mushrooming’ turnover that has brought problems in administration and accounting; indifferent support staff; staff ratio versus turnover; excessive turnover in low profit margin areas.

His lengthy analysis concluded:

Together with the problem of effective funding of the operation, the basic requirements are to improve our own efficiency by making the best use of the available dollar, improvement in gross earnings and control of expenditure being the major ingredients.

The urgency of the situation cannot be stressed too strongly, but will not be achieved merely by the strength of a resolution or the stroke of a pen – it will demand close liaison between Directors, Executive Management and all Staff Personnel.

In-depth studies will need to be undertaken to hopefully cover all eventualities and decisions may have to be made which at the moment are unpalatable and do not conform with our present policies.

Last year, Mr P. Taylor, Financial Consultant from Wilkinson, Wilberfoss, submitted at our behest a review of our Financial situation together with certain recommendations [some of which were already being undertaken]. A further report based on 1980/81 has just come to hand and whilst it substantially confirms what we have known and are now putting into practice, there are other matters that deserve serious consideration.

It is with respect that I suggest such consideration at this level at this stage would be difficult and could well be the subject of a special meeting of Directors. However, before this can take place perhaps a meeting of Board Executive should be held to study the reports and report back to this meeting with specific matters to discuss and resolve.

Following the executive committee meeting of the 28 August 1981, when the second Taylor Report of August 1981 was fully discussed, a decision was made to mail out copies of the relevant portions to directors to enable them to have time to study the contents before the next meeting. At the September meeting, after general matters had been covered, considerable discussion took place about the report. Mr Veitch summed it up:

the report, which was the advice from competent, professional management services personnel associated with our auditors, was a good one, and the board should acknowledge that it is a fair report on the situation and endeavour to carry out its recommendations.

It appears that there was no disagreement between the board executive and the management staff of the company on the points made and recommendations offered. Mr Blyde advised the meeting that considerable time had been spent checking the report with the executive, and that a number actions had been under way for some time. On a motion of Mr Blyde, seconded by Mr Rider, it was resolved that the report provided by the financial consultant Mr Taylor be received and adopted. It was also

resolved that the executive committee of the board and the management executive meet with Mr Taylor to discuss the report and the effects and recommendations when the six months company results were available. Following this meeting Peter Taylor forwarded further recommendations suggesting that it was now time for the management of Farmers’ Co-op to address questions relating to:

assessing long-term objectives. planning for strategies to meet those objectives. allocating responsibilities to undertake strategies. measuring and controlling performance.

Mr Taylor also suggested that the ultimate aim of the company should be to develop a formal plan with a timetable to ensure that the exercise would be cost effective and would address a number of questions to determine the type of business Farmers’ Co-op was conducting and what it wished to be in the future. The questions were:

(a) What is the business and what should it be?

(b) Who are our customers and who should they be?

(c) Where are we heading?

(d) What major competitive advantages do we enjoy?

(e) In what areas of competence do we excel?

(f) Shall we acquire new resources or develop them internally?

Answering these questions would assist the company to determine its corporate objectives in the long term and the executive committee of the board wasted no time in making recommendations to the board. The company was not accustomed to having its back to the wall and the situation had moved so quickly it was clear that any drastic remedy was going to take it where it had never been before. To move away from co-operative principles was not an option, at least at this point in time and there was also a reluctance to depart from the continuing expansion plans which were without doubt beginning to prove an irritating unhelpful part in any recovery plan and present trading climate. Nevertheless, recommendations made by the executive committee of the board were adopted:

1. We should retain our co-operative concept, as it is felt there are advantages to be gained from this over our competitors.

2. We must improve our position and become more profitable, even to the extent of not providing some services to our clients and shareholders.

3. Short-term borrowing should be minimised as it is expensive, but may be necessary at times to cover cash flow problems.

3.b Long-term borrowing, not financing from profits, should be used for capital improvements.

3.c Renewed applications should be made to our Bankers to increase our overdraft ability and reduce dependence on Commercial Bills, as this would be cheaper in that we only pay for what we use.

4. The idea of issuing preference shares is not appropriate as our structure as a Co-operative means that it would tend to damage our relationship with existing shareholders.

5. Management has achieved a great deal in reducing our Sundry Debtors and Stock in Trade in comparison with our Turnover. Debtors are in fact not high in comparison with similar Stock & Station Companies. The policies implemented to achieve this should be continued vigorously.

6. Where possible, gross profit should be increased even to the extent of losing a small amount of nonprofitable trade.

7. Staff Wages and Salaries are the largest of our expenses. These should be watched closely. Little control over the amount that has to be paid to each Staff Member is available, but we do have control

OLD TO BE SECRETS NOW

over the number we employ. Manpower Surveys are to be used to ensure efficient use of our labour resources.

8. Management, particularly on Secretarial, Accounting and Computer sections, still requires more assistance so as to have quicker and better control.

9. The Audit Committee continue to examine the Company’s position every three months to ensure that any areas that are not performing are investigated fully.

10. That estimates of future earnings and cash flows presented by Mr Taylor be accepted as guidelines.

11. Dividends and rebates to shareholders be decided annually (as at present). A balance has to be found each time between the money required to be retained by the Company and the cash available to shareholders.

12. The improvement in yearly figures (September 1981) indicates efforts by Management are beginning to show the results required.

After consideration of the Taylor Report, executive directors endorsed the action taken by management in efforts to make the company more profitable and directed them to implement further measures as decided by the board. Christmas was close and the question of the usual staff Christmas bonus was raised by the general manager. He advised that a bonus paid at equivalent levels of previous years would result in a cost in the vicinity of $80,000 and at a meeting of the staff executive it was resolved to advise the directors they believed a Christmas bonus should be deferred due to the liquidity problems being faced by the company. The directors were pleased to receive this intimation, as the possibility of directors considering and approving a bonus under the present circumstances was doubtful and this judgement relieved them of what would have been a difficult but necessary decision.

A

t the end of 1981, pressure was bearing down on almost every aspect of the company’s operation and beginning to take a toll on the executive and directors who were grappling with a multitude of complex and seemingly insurmountable problems, many of which were outside their control. Although there were undoubtedly many historical and internal cultural difficulties contributing to the current financial woes, other factors were fuelling the furnace of discontent. Agricultural organisations and industries were still heavily subsidised and struggling both locally and internationally with government assistance to the pastoral sector reaching 33 per cent of the value of agricultural output. Unemployment was also rising, with high domestic inflation and declining terms of trade conspiring to challenge the viability of what had almost become a farmers’ institution rather than a trading society. Radical changes and adjustments by the Government were looming and the turbulence within the farming sector as a whole was creating a lack of confidence to such an extent that many thought traditional farming and the associated way of life would be changed forever. The now distinct possibilities of the elimination of farm subsidies was creating an overall negative effect on the industry and agricultural trading enterprises in particular.

The difficulties being experienced by Farmers’ Co-op in terms of continuing viability and the ability to trade out of the present dilemma were now becoming commercial and public knowledge and at the executive meeting of 21 December 1981, Reeve Williams reported:

Gentlemen, whether we acknowledge it or not we are on an exercise in survival. To survive in our present form we must generate greater profits. Other similar companies are doing this successfully. Two listed companies have recently approached us with friendly requests to talk regarding amalgamation or ‘take over’.

The executive have politely declined to consider this. Our answer has been that we prefer to remain co-operative and we intend to make it on our own. However, the fact that two companies have

approached us, shows that they believe that by amalgamation they can do better with our assets than we can. The chairman of one company said to me recently, ‘You probably can make it alone, but you’ll need to hurry and you won’t need to make any mistakes’.

He praised the staff, top executives and managing director for ‘heroic efforts to implement the measures considered necessary for recovery in the Taylor Report’, and also elaborated on the necessity to recruit expert accounting staff which at this time appeared to be ‘thin on the ground’.

To date the burden had been on the shoulders of company secretary Trevor Pope and the individual branch accountants who were ‘over-committed’ and needed assistance. The chairman had requested permission of the executive to try to get a ‘trouble shooter’ from a successful neighbouring stock and station company, to use their ‘proven – keep it simple’ reporting system. However, this was declined by the board, who instead instructed the use of the expertise of the company’s auditors. Following a subsequent meeting with Wilkinson and Wilberfoss a request was made by that company to become more pratically involved in the implementation of their own recommendations by providing the assistance of an accountant who would be available in the ensuing months. This was agreed to. At the same time a decision was made to change the annual balance date from 31 March to 1 August to fall in line with a number of other stock and station companies such as Newton King Ltd and Waikato’s Allied Farmers who had already done this to take advantage of paying tax later and having use of the money for longer periods.

CHAPTER THIRTY-THREE

Damned if They Do and Damned if They Don’t

In July 1982 a full review of the financial returns was placed before the board for 15 months ending 30 June 1982. With better reporting and more attention to detail, trading results appeared to be improving and details relating to turnover, gross profit, expenses and profit attaching to each trading outlet were provided to acquaint the directors with the full picture:

TURNOVER FIGURES FOR 15 MONTHS:

Merchandise Turnover: $61,631,230 increase of $10,286,846 – 20.03%. June Turnover: $4,191,432 – June 1981 $ 3,145,327. Maintaining an average monthly T/O slightly in excess of $4m is running ahead by some $600,000 per month. Most branches are maintaining the impetus and branches showing decreases are reducing the deficiency. Any reductions on April/May figures are mainly in fertiliser and some hardware. Ohura is continuing to improve, but Marton is still slow.

Motor Division:

Turnover figures over the past 3 months are really nothing to enthuse about. Apart from New Plymouth, Service and Accessories is virtually static. Oil and fuel sales are down at all branches except Wanganui. The one redeeming feature is that wages have also reduced accordingly.

Vehicle Sales: Both New and Used Cars are ahead of last year, but behind budget. The Used Car market is somewhat depressed, but our stocks are reported to be quite tidy, and we have cleaned out most of the old stock.

Auction:

Turnover has dropped from the May result substantially because of New Plymouth. However, there is an improvement in commission and also increased headage from fat stock.

Wool Department:

The improvement in T/O is not reflected, however, in number of bales sold. Final results show 28,953 bales as against 30,065 1980/81, a decrease of 1,112 — 3.7% and this can be termed very satisfactory in light of seasonal conditions.

Other Commissions:

Despite the current lull in the Real Estate market there is a slight further improvement brought about, no doubt, with June.

July settlements. The drop in other commissions are inexplicable at this stage but will be investigated.

Expenditure:

Merchandise: an increase of $770,831 (12.59%) is slightly ahead of the April figure, but an improvement on May.

Total increased expenditure of $1,464,869 (13.14%) is also a substantial improvement and not far from the 12-month figure at 31 March.

Debtors:

At $10,452,380 show a decrease of $1,824,752 [14.86%].

On a monthly turnover (Retail, Motor, Auction 1) of $8,831,146 the current debtor figure represents 1.18 months T/O.

The Aged Analysis sheets show a total of $12,654,809 against $14,176,914, an improvement of $1,522,105 (10.74%) on this basis. Aged Debtors represent 1.43 months T/O.

Stocks: Estimated stocks at $7,504,000 show an increase of $1,189,700 (18.84%). This is a slight improvement on May, but also reflects the Drapery indent situation.

Excluding Fertiliser Sales and converting merchandise sales to an arbitrary cost figure, our estimated stock figures represent 2.63 months T/O.

Following discussion on this report on the level of stock holding and the advice that a better coordination between branches was being undertaken, the Managing Director tendered a report on Estimated Profit & Loss for the 15 months to June 30.

Estimated ‘prime’ profit for the period for 15 months to 30 June 1982 was shown at $1,446,094 and with June being traditionally one of the quieter periods of the year the company could derive some satisfaction from the fact that the situation was generally improving overall, although with some exceptions:

Wanganui Farm Supplies – increased expenses higher than increased G/P. Feilding – has varied in May, but improved June and it is pleasing to see it now into a profit situation. Marton – although in a loss situation, is very slowly improving. Ohura – although substantially improved on 1981, G/P is not quite keeping pace with expenses. Pleasing to note above average improvement at Opunake and Patea.

Motor Division:

Wanganui and Hawera are naturally behind the 31 March figure. Hawera has improved on May and the loss at Wanganui is still of major concern. A specifically controlled stocktaking will be undertaken at Wanganui, and certain senior staff have been issued with an ultimatum.

Whilst wholesale Motor is also down at this stage, Stratford and New Plymouth are continuing to improve.

Commissions:

Whilst commissions overall were ahead in May, they have dropped back for June. Other items appear consistent, and it should be noted that the ‘interest paid’ takes into account interest due on O/D and mortgages not yet brought to charge.

In conjunction with this report chairman Reeve Williams advised the board that the auditors had recommended that additional assistance in the form of a finance controller would enable the company to better co-ordinate operations and organise financial resources. The text of the recommendation was that ‘there be an appointment of a financial controller responsible along with the secretary to the board’ and that the controller be responsible for accounting, budgetary and reporting functions. It was determined that a management consultant company be contacted in an endeavour to obtain a suitably qualified person. The secretary, Trevor Pope, and managing director Tom Molesworth agreed that this should be the approach and that someone with the necessary qualifications be sought immediately.

The managing director asked board members to finalise views on the company’s rebate and

DAMNED IF THEY DO AND

DAMNED IF THEY DON’T

dividend policy. It was now a question of how the board would be able to deliver on the recent commitment to retain the co-operative principles and deal with the liquidity problems at the same time without sufficient financial resources. A recommendation of the executive committee to the board was ‘that there be no interim rebate or dividend before the close of the accounting period and that any form of rebate be fully discussed as there is still the continuing problem of funds for survival.’

However, whilst there was general discussion from time to time, the committee had not as yet discussed any formal resolutions and the time was now fast approaching when a decision had to be made. It was fully acknowledged by directors and management that before any distribution could be made there must first be a profit situation:

(a) to generate sufficient reserve to fund the necessary stocks and services required by our Shareholders and –

(b) to endeavour to give Shareholders a reasonable return on their share investment.

The company’s financiers had stated that before outside help was sought for additional finance, shareholders themselves should make contributions. It was also considered that there was little chance of anybody making any substantial cash payments, with the company’s recent policy of issuing additional shares and no cash payment at all. There was a much more significant underlying problem than the funding problem, and that was the possible reaction of shareholders should the same policy be pursued as last year, when fully-paid-up shares were issued instead of cash. The management had received ‘flak’ from a number of shareholders and some sought to sell some or all of their shares to make purchases or to reduce debt. The managing director said: ‘I dread the thought of a run of such approaches, and directors could face a difficult situation at the A.G.M. It would certainly test the loyalty of shareholders.’

It was generally felt that under the co-operative principle and philosophy the options were limited. They would be damned if they do and damned if they don’t. All sorts of possibilities had been considered:

Increase dividend on shares. This would mean a greater tax call, but would make the shares worth more in the eyes of the shareholder.

Trading Rebate – vary the proportion of cash payment and the issuing of additional shares and the drain on funds of a direct cash payment is well recognized.

Some organisations, e.g. Foodstuffs, have retained a proportion of rebate for varying periods and pay interest on that money, and thus have a gradual and prolonged payment period. In our organisation, however, the cost of administration with so many small accounts could well nullify any advantages of such a scheme.

Attempting to deal with the situation, executive management now suggested establishing a policy of ‘credit payment’ whereby all or part of the proposed cash payment be used as a credit for the shareholder to either assist in making a purchase or for payment or part payment of his or her account. Various methods of allocating rebates and cash were thrashed out by the directors, who were asked to bring ideas to the next meeting. Copies of the method of rebate calculation were provided to directors, so all were aware of the methods used previously. With the annual general meeting date to be confirmed, a decision relating to whether a cash rebate, or the equivalent in shares, or no rebate at all would have to be made. In summing up his report on the payment of rebates, chairman Reeve Williams said:

It would appear from the results to date that prime profit for the period ending 1 August 1982 will be in the vicinity of $1.7m, and although it is still insufficient as a return on funds invested, shareholders will be looking for a tangible payment, and with respect I suggest that Directors must determine a policy in the short term so that management can work on the options required.

In the final analysis, although they were not really in position to give anything away, the explanation and end result was:

DISTRIBUTION THIS YEAR: Shareholders have been advised, particularly in recent years, of the effect of inflation on all types of business and our Company is no exception. Just to purchase the same amount of goods in the past 16 months as in the previous period, we had to find an additional $1.2m. Even with the ‘price freeze’ in operation we anticipate the cost of only replacing goods for those sold will cost an additional $3/4m.

The money for this must come from retained profits or from the Shareholders.

Directors in their deliberations have endeavoured therefore to strike a balance to encourage the trading shareholder and yet at the same time retain necessary money in the Company for its continued operations.

Because a higher dividend attracts a greater tax payment by the Company, Directors have brought it back to its former level to make more rebate available to the Shareholder. This is to be satisfied partly by ‘credit voucher’ and partly by additional shares.

A 3% dividend totalling $98,560 plus Trading Rebate totalling $850,000 means a 28.87% return on paid-up capital.

In addition to the dividend, the payment in credit vouchers will total $493,000. This means that before a trading Shareholder receives additional shares, the cash return to the individual equals 18% on his/her shareholding. Such return on Shareholders’ capital would equate with any performance of any similar company.

A full explanation of the use of the vouchers will be given when issued, but they can be used to purchase goods or pay outstanding accounts.

This approach, whilst new to FCOS, has had wide use in other areas, and Directors consider it a positive attempt to maintain the co-operative concept and retain some control of funds which are necessary to help finance the future operations of the Company.

The response was luke warm, but shareholders were becoming familiar with the changing trading climate and uncertain future. The past year had been one of consolidation, improving efficiency and maintaining the company’s services while battling inflation. Merchandise turnover for the period was $65m and for 12 months as at 31 March 1982 was 20 per cent ahead of the corresponding period in 1980/81, which was considered a satisfactory result.

On Monday 20 December 1982, the acting general manager advised the board of the sad and tragic loss of Mr and Mrs A. G. R. Williams’ daughter and her fiancé in an accident on Mount Ruapehu on 9 December. The board’s heartfelt condolences were passed to Reeve and Edna Williams. At the very same meeting Mr Trevor Harrop was welcomed to the audit committee and The Farmers’ Cooperative Organisation Society of New Zealand Limited. His employment had commenced on 13 December 1982 and he joined the Farmers’ Co-op at one of the most critical moments in its history, with influences beyond the control of the company thwarting attempts of recovery. Trevor Harrop would play a major part in the administration department throughout the next three decades and survive the turmoil that prevailed in the 1980s. He was a local man, born at Opunake where his parents farmed. His early primary school years were at Ngaire, South Taranaki, and he eventually finished his schooling at Stratford High School. Working for a few years in chartered accountant firms, he then joined Europa Oil Coy, New Plymouth and later attended university in Christchurch. Following his graduation he took employment as a divisional accountant for Andrews & Beaven in

IF THEY DO AND DAMNED IF THEY DON’T

Christchurch. He returned to Taranaki to work for the Taranaki Electric Power Board as accountant for two years and was then appointed as financial controller with Farmers’ Co-op. By February 1983 directors were advised that:

Financial Controller T. J. Harrop assumed his position mid December.

Despite the holiday breaks and a natural period of familiarisation, good progress is being made towards the object of the appointment.

EDP programming and co-ordination with executive and middle management is now producing forecasts both for sales and expenditure. Whilst it is expected to be somewhat experimental in the early stages, it will give us the opportunity to be fully functional for the coming year.

Challenges lay ahead for the new boy on the block, with turbulent years liberally seasoned with almost every possible commercial concoction that the government of the day could come up with. Wage, price, and interest rate controls were removed and markets were deregulated, the New Zealand dollar was floated, export assistance was removed, import barriers torn down, state trading activities were corporatised, and the process of privatisation began. Top tax rates were slashed, and far-reaching changes were made in the public sector. But that was not all. Major changes in the rural scene were also imminent, with the removal of subsidies to the agriculture sector.

It was indeed a time for lateral thinking, new ideas and the capability to carefully balance the experience of the past with the challenges of the future. There was no doubt that chairman Reeve Williams recognised that restructuring the company’s activities to meet commitments and survive was going to be a battle of huge proportions and much depended on the people around him and the economic developments that would prevail in the coming years. It was undoubtedly an opportune time for Trevor Harrop to establish himself in the company. It also coincided with the establishment of a finance company to handle hire purchase and longer-term loans. Although it was originally intended to use the longstanding West Coast Mortgage & Deposit Co., as the finance company entity, the company was finally established under the banner FCOS Finance Limited.

Although full computerisation of the company accounts was on the horizon, ‘cycle billing’, as it was then known, was still part of the accounting process, with district offices generating invoices on an alphabetical basis to spread the workload throughout the month. There was no comprehensive budgeting or strategic plan in place. One of Trevor Harrop’s first tasks was to set up a budgeting system to collate, co-ordinate and place all data, previously recorded on a district-by-district basis, onto the mainframe computer. From this point on all statements were generated from one source, a significant achievement for the company. Following these quite radical administrative changes much better reporting was possible and comparisons and projected financial results could be monitored. The computer system in use had been designed in 1978 to handle 20,000 account customers.

Unpredicted growth in the company saw customer accounts increase to 43,000 and the computer system suffer severe degradation, necessitating serious consideration of replacement of the existing hardware. A 15-page report from Trevor Pope was tabled at the July 1983 meeting for the board’s consideration. The fact was, however, that computers were still in the embryonic stage and few local people had much knowledge of the capabilities and operational functions of these seemingly complicated devices. There was still a considerable amount of scepticism within the directorate, the rural community and farmers in particular, who were, and to some extent have remained, wary of these number-gobbling monsters. The cost was always going to be one of the main hurdles to overcome. After considerable discussion by the board it was resolved: ‘That the proposal to extend the computer equipment and services at a cost of almost one million dollars be referred to the audit committee for consideration and report back to the board.’

Three months later, following the receipt of an independent report from Arthur Young & Co., auditors, on investigations into Farmers’ Co-op’s computer installation requirements, there was still

considerable discussion and reservation about the cost and advantages of a new computer and what effect it would have on administration and stock control:

Mr Veitch advised the meeting that he believed that while there were obviously advantages to be gained from retail stock control and that this system must come sometime, it must be at a price we can afford. Mr Blyde pointed out that with the additional complexities and range of stock held by the company, we must become more efficient in this area, and that one of the questions was whether we could afford to be without a stock control system. It appeared generally that we had been successful with our computer installation, while other organisations, such as the Dairy Board and the Health Department, had had considerable difficulty with theirs. Mr Rider remarked that he had to go along with Mr Blyde, in that the report gave him confidence in the executive staff’s abilities in this area.

Mr Veitch also said that he believed the cost was still on the high side, ‘taking into account notional interest and depreciation cost of $300,000 a year additional to our present expenses, which would have a very negative reaction on our profitability’. There was, however, no figure he could give for the loss in business, and it was resolved through a motion by Mr Blyde and seconded by Mr Rider: ‘That in view of the conclusions of the Arthur Young report on the computer systems, FCOS management team be instructed by this board to continue its investigations on our future requirements and that in the meantime no further reports be asked from Arthur Young.’

Although it was not entirely what Messrs Pope, Harrop and their team wanted, it was a pat on the back and vindication of the initial report and recommendations. It was also a show of confidence by the board in their ability to recognise the data-processing requirements of the company. Apart from the cost to the company at a time when every dollar counted, it illustrated that caution was still being shown as computer systems were still very much an unknown quantity.

Cash flow was of growing concern during the closing months of 1984, traditionally the worst part of the year for Farmers’ Co-op. The managing director also reported that recent legislation had seriously affected plans for reorganisation and proposals that were under way in connection with mortgages. Ever seeking to reduce overheads, particularly with regard to the cost of borrowing and continuing liquidity problems, Westpac Finance had arranged for the company to meet representatives from CBA Merchant Finance Limited in December 1983 in connection with arranging a loan of $NZ5,000,000 in overseas currency. A $NZ5m Swiss Franc loan was subsequently arranged through Westpac Finance in early 1984 for CHF 7,375,000 at an interest rate of 6.875%. The rate was considerably lower than for a New Zealand loan at that time. Additional accommodation of $1.3m was also sought and received from New Zealand bankers ANZ. However, within six months of arranging the loan in July 1984 the New Zealand dollar was devalued. The exchange rate went against the company and the amount that had been saved in interest rates was offset by the exchange rate movement. This contributed to the company’s worsening financial position. In 1986 Mr P. Taylor advised the board that, the size and difficulty of maintaining the offshore loan at its current levels and the small likelihood of a reduction in the exchange rate between the New Zealand dollar and the Swiss franc required that the company review its situation with regard to this loan, and the company should make provision in this year’s return for losses incurred on the exchange rate and that it may be beneficial to bring the loan onshore.

The loan though, remained intact, being switched into a multi-currency loan in 1986, and preference shares in 1990, and was repaid in 1996.

DAMNED IF THEY DO AND DAMNED IF THEY DON’T

Insatiable Spirit for Growth

An insatiable spirit for growth and courageous enterprise had been the hallmark of the Farmers’ Co-op almost from the very beginning. Guided by a number of exceptionally gifted entrepreneurial co-operative champions in its formative years, the Society retained a legacy of confidence from the people it served. With so much success and almost without any outside influence, many early ideological practices were still entrenched in the day-to-day operations and management decisions. Many management, executive and indeed directors had such a history with the company that nepotism was widely accepted as a means of ensuring continuity and reliability. During the first 70 years of trading, business practices changed little and almost every commercial decision as well as future planning was based on past experience, which the Society had plenty of. Although times were changing and the amalgamation of farms was beginning to impact negatively on the rural population, retail trading was gathering momentum, with a host of new commodities, better communication and transport all having significant consequences for the average person’s daily life. In addition, retail outlets were becoming more specialised and the corner shop and general stores were suffering with the introduction of large one-stop shops and new technologies. There was growing realisation that a new style of commercial principle and practice was here to stay.

Taranaki’s relative geographical isolation, off the main trunk line and North Island arterial routes, meant that most local provincially owned and operated enterprises had been sheltered from the diversification and competition that was occuring in the more heavily populated areas of New Zealand. Taranaki was only just beginning to feel the pressures and the magnitude of these changes. Parochialism, although firmly denied by most, was still the glue that held this rural social and commercial community together. To depart from a formula that had been put to the test so often and over such a long period of time was seemingly out of the question. All who thought to do so were quickly reined in. The quickening pace of commercial reality was challenging the experience and intellect of the decision makers; their exceptional farming prowess and local business acumen seemed inadequate in a complex global context. Meetings were now embracing a variety of wideranging topics and resolutions, from repairs to a top rail in a saleyard to rubber stamping a $5 million overseas loan, with all the future ramifications and responsibilities that such a decision would impose on the company.

Despite acknowledging the existence of liquidity problems that the bankers had warned of five years ago, the company’s expansion programme continued. Farmers’ Co-op was already operating in Wanganui and Manawatu and it became keenly focused on the opportunity to gain access to the Fordell and Feilding saleyards jointly owned by Wrightson NMA (one third) and Dalgety Crown (two thirds), one third having recently been purchased from FCDC. It had been

intimated that entry to the yards would be granted on the basis of the valuation by Farmers’ Co-op, with the anticipated new ownership being spread equally across the three parties. In the consideration of this proposal the managing director, Mr Molesworth, stated:

It is evident and we have to accept the fact that there will need to be a trade-off with Taranaki facilities, but that, to my mind, must be a secondary issue.

Enthusiasm to clinch the deal was spurred on by Messrs Anderson and Holland, new FCOS appointees, previously of Dalgety Crown. These two men had brought with them such a strong personal following that they were having difficulty servicing the existing Farmers’ Co-op clients. There was much support for Farmers’ Co-op’s access to the saleyards and the fear expressed that if advantage was not taken of the current situation, that support would dissipate. At the same time the Feilding and Fordell saleyards were being considered, Mr Molesworth had taken the opportunity to meet with Messrs Avery (chairman), Collis and Wheeler (secretary) of the Feilding Trading Society about a possible merger between the organisations. There was, however, no real enthusiasm forthcoming from the executive of the Feilding Trading Society and although agreement was made to continue discussions, it was the chairman’s personal opinion that ‘whilst their current chairman is at the helm there will be little or no progress towards any merger of operations with FCOS.’

Valuations and estimated charges for both Feilding and Fordell were received:

Feilding – 1/3 Share Valuation: Land and Improvements $325,000 Goodwill $150,000 $475,000

Fordell – 1/3 Share Valuation: Land and Improvements $200,000 Goodwill $50,000 $250,000 $725,000

1985 Budget Levies:

Feilding – 1/3 share $148,000 Fordell – 1/3 share $92,000 $240,000

The financial position of the company was now becoming precarious, although caution in spending had been mandated:

The full board of directors of FCOS should make any decision about spending large amounts and they should make such a decision taking into account the overall financial position of the company and its future commitments for capital spending.

The financial reports showed:

April May

Outstanding Cheques (in million dollars) $3.0 $3.9m

Commercial Bills 4.6 4.6

Total Short-term Liability (excluding Creditors) $7.6m $8.5m

Liquidity was now proving to be an almost insurmountable problem, which was being exacerbated by New Zealand’s worsening constitutional crisis. The woes of the company had been brought to a head with the contentious issue between management and the board of the purchase a new computer as well as the board’s preoccupation with the expansion programme in Manawatu and

in particular obtaining access to Fordell and Feilding saleyards. A special meeting of the board was convened by chairman Reeve Williams on 27 July 1984 seeking a consensus of opinion. The executive committee had already met but were not unanimous on proceeding with the purchase of computer equipment and it was imperative that a decision be now made as imminent devaluation caused by a major currency crisis would significantly increase the price if the ‘pencilled-in order was not confirmed by the end of the fiscal quarter’. The board received the ‘majority’ recommendation of the executive committee:

That this Committee recommend to the board of directors of The Farmers’ Co-operative Organisation Society of New Zealand Limited that the purchase be made of a system as detailed on the quote from Data General (New Zealand) Ltd. dated 24 May 1984.

Mr Williams gave a verbal report on aspects of the company’s financial performance in prior periods. In particular he expressed concern at the reducing level of net profit and declining return on capital. His further concern was that ‘in not keeping up with inflation the company was not generating sufficient profits to allow adequate retention and to provide for future company funding’.

Mr Blyde spoke on the implementation of controls and budgeting systems contained in the Arthur Young Report, and the effect that the ‘Argenti Corporate Planning System’ was having in bringing forth areas of concern amongst company executives for future prospects and information required to compete in today’s market. He also stated that:

Directors had challenged management to bring forward proposals to improve and increase the company’s profitability and it was only right that Directors should support these proposals after having asked for them. In the past we had made some errors in competing but generally had risen above these. With rising inflation there will be an even greater need to control the financial resources of the company.

It was moved by the chairman that the board confirm the pencilled-in order for the new computer system that was to be run in conjunction with the present system. Mr Rider, in seconding the motion, stated his support of what Mr Blyde had said and added that the company had a loyal following and that could be bolstered by doing something positive and reducing the possibility of being taken over. A number of other directors spoke in favour of the motion, including Messrs Betts, Death, Jamieson and Norman. Mr Bremer asked for the views of Mr Trevor Harrop, the financial controller, with regard the cost of the proposed system. Mr Harrop noted:

everybody agreed that the profit has been down and the company needed to generate more profits. It was his opinion that a management information system was probably the only way we could get control of our sales information in sufficient detail to provide buyers with adequate information on the profitability of their purchases.

There were many instances of other companies making substantial profits on lines similar to ours. We would have to make a decision to upgrade our computer equipment merely to stand still and maintain our present accounting system within the next year and by delaying there could be up to an additional $154,000 expenditure due to the devaluation. At present we are getting the bare essentials from our system although asking it to provide more information than was originally envisaged by the company at the time of its implementation. There was an urgent need for the accounts payable system to be incorporated in the reporting of the company, and that only by having sufficient information could we look at the return on capital being used by those branches to weed out the non-performing ones. As to the Young Report, the company had implemented all of the suggestions made by that report other than that to do with product information and profitability, and in his opinion the proposal was the only solution to the requirement for such information.

Mr Halton, also supporting the motion, believed that if staff were expected to improve the profit they must be given the tools to do the work, and should the company expand into the Feilding area it must have the capacity to handle the additional business. Some discussion followed regarding the

reinvestment level of profits in the company, with Mr Bremer and Mr Williams both making points that this was an area that should be looked at.

The managing director stated that, all were concerned, management particularly, as in most cases they were also shareholders, and it would be agreed by most that the profit in the previous years had been a disappointment. Turnover was good but costs were too high. He quoted further from the Young Report on the computer installation and suggested that the company had fulfilled the requirements and that should justify a management information system. The matter revolved on two questions: first, if the technology was needed, and second the payment for that technology.

Following Mr Molesworth’s points, Mr Blyde commented that from the discussion it was apparent that most directors agreed that we would need to do it sometime, and that there was a substantial dollar advantage in doing it now.

The chairman then put the motion and it was resolved unanimously: That this Board confirm the pencilled-in order made by the Executive Committee to purchase a new computer system to run in conjunction with our present system, the type and make to be that recommended by management.

Access to Fordell and Feilding saleyards was still firmly in the sights and minds of at least some of the executive management and directors and negotiations with Dalgety Crown and Wrightson NMA were continuing. There was, however, considerable discussion between Farmers’ Co-op district managers in Taranaki and other senior staff, with many expressing concern about the loss of commission in the area should the company be forced to give access to the Taranaki yards as a trade-off for entry into the Fordell and Feilding yards. The managing director was though, authorised by the board to continue investigations. In keeping with the company’s philosophy of maintaining good relations with staff, a request was made by the managing director that district managers be entitled to approach the board with written submissions on their views of the ‘effects of the movement into these yards’, and to appear in person before the board should they wish.

District managers Messrs K. P. Newland, E. W. Clifford and P. A. Western were all vehemently opposed to the board granting Wrightson NMA access to Taranaki saleyards. The potential loss of commission was conservatively estimated to be $185,377 per annum, some 27 per cent of the total commission earnings, and would give away the main advantage they had over any multinational companies operating in the province. They also claimed that in addition to the loss of commission there would be a reduction in staff and service, and an additional loss of business in wool and merchandise retailing and these substantial losses would not be compensated for by the additional income from the Feilding/Fordell operation.

Mr Harrop, financial controller, also advised the executive management committee that, using the anticipated turnover and livestock figures provided by Wanganui, neither yards would have a sufficient return on investment to warrant the company putting further capital into the area and that on this aspect alone, apart from any other considerations, the project was not viable.

This, however, did not dissuade the board from continuing to show an interest in a Fordell/ Feilding connection. At the same time the district manager at Wanganui, Mr O’Shanassy, who was responsible for the Feilding area, was making strong representations to improve the cramped trading circumstances in which they were currently situated. The managing director was authorised by the board to investigate the possibility of leasing or purchasing a building owned by Dominion Breweries in Feilding almost directly opposite the saleyards.

A meeting of directors on 4 September 1984 was presented with a five-page in-depth report from the managing director, Tom Molesworth, setting out all matters for and against the proposal

of purchasing a one-third share of the Fordell and Feilding saleyard facilities which involved a trade-off for the Taranaki saleyards with Wrightson NMA. The report was accompanied by a number of written submissions from district managers and other supporting sales staff on their views of the likely outcome if entry to the Taranaki yards was granted. Discussion had also taken place with other management personnel. Following a motion by Mr Rider, seconded by Mr Halton, the board accepted the recommendation by the executive management ‘that the company does not proceed with the purchase into Fordell and Feilding under the terms and conditions on offer’. The motion was put to the meeting and on a show of hands was carried – 9 for and 4 against.

The executive committee of the board met on Tuesday 27 November 1984 to discuss the approach the board should take in relation to the replacement of Mr Tom F. Molesworth, long-time employee and valued managing director who had announced his intention to retire from Farmers’ Co-op in 1985. He had been with the company for 33 years and would be difficult to replace at this challenging time in the company’s history. It was agreed to place the vacancy in the hands of Mr R. A. Borland of Management Services Ltd, Wellington. Mr Borland, Mr Molesworth, Mr Williams and Mr Blyde toured the district to appraise the features and scope of the company and advertisements were placed in suitable newspapers throughout New Zealand.

At the time of the December 1984 annual general meeting the officers of the company were:

THE FARMERS’ CO-OPERATIVE ORGANISATION SOCIETY OF NZ LTD

DIRECTORS MANAGEMENT – EXECUTIVES

A. G. R. Williams Ohangai (Chairman)

P. M. Blyde Lepperton (V/Chairman)

MANAGING DIRECTOR: T. F. Molesworth

FINANCIAL CONTROLLER: T. J. Harrop C. H. Betts Inaha

I. D. Adamson New Plymouth

R. L. Bremer Waverley

DISTRICT MANAGERS: P. E. Bulfin Hawera K. P. Newland Hawera R. A. Death Ararata E. W. Clifford Stratford

J. A. Halton Kohuratahi P. A. Western New Plymouth T. J. Jamieson Stratford P. O’Shanassy Wanganui A .R. Kellick Mangamahu

J. A. T. McEldowney Okato

J. P. V. Norman Manutahi D. E. Rider Kaponga

MARKETING: A.M. Moss

MOTOR DIVISION: L. Watkins D. B. Sarten Opunake B. D. Veitch Hawera

SECRETARY: T. J. F. Pope

REGISTERED OFFICE: 66 Regent Street, Hawera.

Address for Communications: P.O. Box 423, Hawera. Phone 85009 Hawera.

SUBSIDIARY COMPANIES: West Coast Mortgage & Deposit Company Ltd

Nolan’s Buildings Ltd

Taranaki Farmers (Wholesale) Ltd Farmers Co-op Wools Ltd C. H. Campbell Ltd, Marton FCOS Finance Ltd

OTHER INTERESTS:

Farmers’ Co-operative Federation N. Z. Ltd

Farmers’ Stud Stock and Land Co. Ltd

United Stores Society Ltd

Afendoulis Posts (Hawera) Ltd

Snowline Marketing (NZ) Ltd

Bankers: Solicitors: Auditors: ANZ Banking Group Horner & Burns Arthur Young & Co. (New Zealand) Ltd Hawera New Plymouth

Christmas festivities at the end of 1984 did not dull the desire for a taste of trading stock in the Manawatu district. A motion to obtain valuations on the Taranaki, Fordell and Feilding saleyards and the Taranaki buildings owned by the company, ‘ostensibly for insurance purposes’, had been resolved by a majority vote in December, with at least one director firmly against the proposal. The recently leased Dominion Breweries premises at Feilding opened and the board approved the appointment of a stock agent at Taihape.

It was not surprising when Ron Trotter, son of former Farmers’ Co-op managing director the late Clem Trotter, appeared on the scene to promulgate both his own aspirations and those of Wrightson NMA on the matter of the Fordell and Feilding saleyards. Although he was now chairman of Fletcher Challenge Limited and no longer involved with detailed management of Wrightson NMA, his past association with Hawera and Farmers’ Co-op and his ‘special respect and affection for FCOS’, prompted him to meet with Reeve Williams to discuss the issues surrounding the saleyards development in Taranaki. They met informally in early February in Hawera and Ron Trotter followed up the discussion with a detailed written resumé of his views on the situation. The letter and a report was tabled at a board meeting on 5 February 1985.

In essence Ron Trotter considered that the present structure and organisation of the saleyards in Taranaki did not serve the best interests of farmers or any individual companies. He claimed that for many years in every other district in the country saleyards had been consolidated, with all firms selling together and on the same day to achieve the highest possible entries and the strongest buying competition. He also claimed that national firms had a special contribution to make because of stronger influence on buying power outside the district. The whole purpose of a saleyard was to create an efficient market and maximising competition in one market meant better prices for farmers, which in turn meant lower operating costs for stock firms and significantly less capital investment. He expressed the compelling view that:

When all companies sell together the total number of livestock sold at auction increases and the sales improve. This is not only because the farmers perceive that auction has become a better market but also because there is less unproductive competition between firms to sell stock privately before it gets to auction. In general it is more economic for the firms to encourage auction rather than private sale.

Mr Trotter said that they had not found denying a firm entry to any of their yards had given them any long-term competitive advantage but he did know that refusal increased costs and did not improve the return to clients. He gave an example:

To build better volume through our two Taranaki saleyards we would need to spend capital on our facilities and put several more men on the road. The aim would be to increase our yardings and try to weaken yours by selling your key lines privately. You would no doubt respond with more men and both companies would be worse off without really improving the situation for the farmer.

He summarised with a detailed analysis of the economics and viability of Farmers’ Co-op continuing to operate their own saleyards without integrating with other companies, and claimed that the case against this was unarguable. He also stated that if Farmers’ Co-op’s stock business was uneconomic,

Wrightson NMA would be prepared to buy it and integrate it into their own national network, ‘leaving your company free to focus on its very important and widespread trading activities.’

It was clear that Ron Trotter was determined to negotiate a ‘package deal’ for the Fordell/ Feilding/Taranaki saleyards. He was eager ‘to see closer relations between the two companies’ but admitted that although the Wrightson NMA Taranaki operation was modest, it was profitable, and he unashamedly proclaimed ‘We are in Taranaki to stay’.

The board deliberated over Mr Trotter’s letter and a memorandum written for the board by Reeve Williams to clarify the discussion he had with Mr Trotter. It was thought there was still insufficient detail for a definitive decision and it was resolved to thank Mr Trotter for his communication and advise that the matter was under consideration. The major hurdle was the cost of funding the new saleyard arrangement and the radical change it would bring to the overall saleyard operations that had been in place in Taranaki throughout the century. There was some unease about the chance of success and Mr Pope, company secretary, advised that, ‘at this point there are insufficient funds available within the company to embark upon such a level of expansion.’

However, the board did not rule out the company’s involvement, and there would be an ongoing review of sources and application of funds. They considered that the present lack of capital required for such an expansion might be overcome by different funding methods. A valuation of the three Taranaki saleyards was undertaken. A detailed report on the overall costs resulted in a loss to Farmers’ Co-op of $325,500. The other parties had much to gain and little to lose, and ‘unless alternative methods of funding can be arranged involving less costs the situation as portrayed previously still remains the same’.

Dialogue continued in the coming months with bullish thrust and parry between the parties. This eventually culminated in Farmers’ Co-op accepting a buy-in cost into the Fordell and Feilding yards of $706,724. A meeting was held on 19 June 1985, at which all parties exchanged views on the basis of payment – Farmers’ Co-op wanting to pay by instalments. Although initially Dalgety Crown would only entertain payment in full before entry, ‘the best negotiation made was for half down and the balance held over for 12 months at 20% interest’. Managing director Tom Molesworth obtained agreement for this from the executive directors, who concurred that it was possibly the best deal that could be made. However, due to the company’s severe liquidity situation the deal could still not be made and payment had to be withheld. Stock agents in the area were poised to move into action as soon as approval was given, with the company being only too aware of the reaction if any further deferment of entry was made. Tom Molesworth concluded his report by saying:

We are in a ‘Catch 22’ situation. Head Office Administration considers that we have an obligation to meet our current creditors before embarking on meeting new capital expenditure out of income and in view of these circumstances consider this must be a policy decision made by directors.

The managing director’s report was discussed, but in the meantime the ANZ Banking Group had agreed to advance the company $400,000 on a commercial bill at a fixed rate to enable payment of the first half of the cost of entry in the Fordell and Feilding saleyards. It was finally resolved to accept the Dalgety Crown Ltd. and Wrightson NMA offer for a one-third share of the yards on the basis of half the cost as down-payment and the other half being paid on 1 July 1986 with interest at 20% per annum. It was also resolved to accept the offer of the ANZ Banking group of $400,000, with the intention of passing on the costs directly to the Wanganui Auction department.

Finally entry to the Fordell and Feilding yards was set for 6 and 9 August 1985 respectively. The questions of the wisdom of this exercise would occupy the minds of shareholders and other members of the stock and station industry for many years to come both in Taranaki and throughout the country. Many considered it to have been an imprudent step and possibly one of the most controversial in the history of the company. Despite opposition from their own financial managers, the managing director and board had determinedly prosecuted this controversial expansion.

Talking About Survival

Whilst issues relating to the Manawatu operation had preoccupied the board during the first few months of 1985, other significant challenges were also testing the directors. Most pressing was the appointment of a general manager to replace Tom Molesworth. Management Services in Wellington had failed to attract any suitable applicants. Two candidates had been interviewed and shown around the company’s provincial operations but both declined to be further considered. Further advertisements reaped six more replies and a shortlist of two, neither of whom had stock and station backgrounds but had ‘proven records of management in other areas’. Both were taken on a tour of the company’s operations and following a meeting with the executive committee on Thursday 13 June a decision was made on the most suitable applicant. On Tuesday 2 July 1985 Mr Derek C. Evennett, the new general manager, was welcomed to the board by chairman Reeve Williams. Although the board had intended that Tom Molesworth provide a period of assimilation for the new general manager before he departed, Derek Evennett preferred to take charge and confront the difficulties head on. Consequently Tom’s exit from the company was relatively sudden and without fanfare or formal farewell. He is fondly remembered by staff and directors as a stalwart of the Farmers’ co-operative movement and a great people person.

Derek Evennett had not in fact applied for the position of general manager of Farmers’ Co-op. He had been convalescing from an operation when he received a telephone call from Ron Borland, principal of Management Services Ltd, who said, ‘I have a job out of left field for you Derek’!

The men had met on a couple of occasions in the past. Following a meeting with Ron Borland in Wellington an interview was arranged with Reeve Williams and Peter Blyde in Taranaki, and the appointment was subsequently confirmed. The person prepared to undertake the difficult task of steering the company out of its present predicament within the current unsettled economical climate would require exceptional management skills and Derek Evennett was left in no doubt about the company’s precarious position after his first board meeting. The new general manager was no stranger to the commercial scene. A chartered accountant,

Derek C. Evennett, general manager The Farmers’ Co-operative Organisation Society of New Zealand Limited 1985–87.

Derek Evennett started with Kenneth Hayes & Co., Chartered Accountants, in the United Kingdom and went on to become chief accountant for D. T. Bullock & Co. Ltd, Civil Engineers, Builders and Developers, before immigrating to New Zealand where he joined Wilkinson Wilberfoss & Co. as an auditor in March 1973. Other positions he had held included company accountant for Grayburn Contracts Ltd, company secretary for Monier Tile (N.Z.) Ltd, and company secretary for Firth Industries Ltd where he rose to the position of corporate planning manager and finally northern regional manager. In this role he took on the responsibility of turning around a part of the company that had been performing poorly. Within one year the area of operation was back into a substantial profitable situation. He had also been an independent financial consultant. Although without experience in the rural sector or farmer-owned-and-operated co-operative organisations, his credentials in management and finance were exceedingly good. He was a Member of New Zealand Society of Accountants (A.C.A.) and a Fellow of the Institute of Chartered Accountants in England and Wales (F.C.A.). The directorate was pleased with the appointment.

Derek Evennett had perused the company’s financials and viewed a set of accounts before accepting the position, so the plight of the company was not a complete surprise to him. However, within a few days, as the true difficulties were revealed, he would describe the situation as ‘quite shocking’. He was soon aware the cost of funding was one of the main issues of the day. It was clear that company secretary Trevor Pope and financial controller Trevor Harrop were wrestling with a multitude of financial difficulties and constantly engaged in investigating alternative methods of funding ongoing projects the present board were committed to complete.

With a new captain on the bridge an immediate change in course was ordered, a raft of sterner measures instituted to reduce the level of debtors to the company, and a number of other radical steps taken to stem the evaporation of funds from the coffers. It was September 1985, and Derek Evennett had been at the helm for one month and received the board’s support to turn the ship into the wind. He was forthright in reporting to the directors at his first meeting as chief executive. In presenting the general manager’s report on the preliminary results for the year, he announced a group profit of $799,000, which represented, ‘a serious shortfall compared with the 11 months profit previously reported (excluding the Finance Company) of $1,170,000’. Furthermore, he said, ‘it represents an even greater reduction compared with the predictions made only 2–3 months ago of a year-end profit of $1,700,000.’

He expressed the view that the board had ‘been grossly misinformed about the true financial position of the group’ and reassured the directors that the situation would not be tolerated and that fundamental and simple procedures would in future be adhered to and an accurate monthly assessment of the group’s financials would forthwith be presented to directors. The discrepancies were summarised:

Profit as reported for the 11 months to 30 June 1985 $1,170,000

Add: Finance Company profits 160,000

Expected Profit July 130,000

Expected year-end profit, based on last month’s Board report $1,460,000

Latest estimated profit $799,000

Shortfall $661,000

Represented by:

Under-estimation of interest charges 427,000

Over-estimation of stock figures 59,320

Additional losses in Speciality Machinery 183,796 $661,000

Revised figures indicated that the group was showing a loss for the year of $204,000. Of the three sections – the main company, wool and finance – the culprit was the main company, which lost $464,000. With market conditions unlikely to suddenly and dramatically improve performance, Mr Evennett decided to concentrate on three areas of the company. One was funds reduction (especially stocks and debtors), with a target reduction figure by 30 September of $4.8 million in stocks and debtors. A second focus was general efficiency, which would be improved by introducing an ‘owning your own business’ syndrome and paying more attention to stock shrinkages, stock mark-ups, the general appearance of stores and control of expenses. Also a ‘will to win’ and ‘to be the best operator’ philosophy was to be introduced and lastly, and regrettably, there would be a reduction in staff. On this matter his report stated:

It is appropriate that in considering this action we acknowledge the special responsibility that our Company, as one of the largest employers in the Taranaki region, has to its people. However, we are talking about survival of a company and it is surely better to be able to be confident about the future of say 550–600 employees than doubtful about the future of 700 employees

The figure of 101 employees is a horrifying one but, again, it is essential if we are to survive. The approach we have taken is recognising people as individuals and ensuring, as much as possible, that the principal home income earners have jobs is best described verbally.

He asked for the support of the board in taking these measures and set out the method to be used to achieve the necessary reduction in staff. An embargo on appointing new staff was put into immediate effect and a variety of others measures, including detailed budgeting reports, shareholding and funding proposals were put into place to attain better overall results and control. Of particular significance was the resolution to dispose of the Specialty Machinery division in the Manawatu which had incurred a loss of $378,000 for the year ended July 1985. Apart from the fact that the operation was considered to have little strategic importance, it also had considerable stock that was not suited to New Zealand conditions, for example haybalers that made bales too large to transport on New Zealand roads. As a large user of capital, it was considered not viable on a return-oninvestment criteria. The Specialty Machinery division was to be disbanded and its assets sold. This sale, however, proved more difficult than expected, with protracted negotiations over many months and no satisfactory result. In August 1986 a decision was made to enter into discussions with staff members to see if there was sufficient interest amongst them to take over the business.

Better to Live with Them than Fight Them

The difficulties within the Farmers’ Co-op became a matter of public record when Derek Evennett was quoted in the Hawera Star in 1986 as having said: ‘The Farmers’ Co-operative Organisation Society company had too many staff, and was top heavy in its administration structure.’

This statement followed the shock announcement of forthcoming redundancies within the company. Evennett said that in conjunction with the redundancy moves the company was being restructured. While previously organised into four districts, centred around New Plymouth, Stratford, Hawera and Wanganui with a separate motor division, the company was now to operate on a three-area basis (including the retail stores and motor division) – New Plymouth, Hawera and Wanganui. ‘The need for rationalisation was recognised by the company’s board of directors before his appointment’, he said, and went on:

We regret the need for making people redundant and are aware of our social responsibility. However, we believe that the Company is in good shape to continue serving the region as is has done in the past, and the people of Taranaki and Wanganui will continue to support us.

He continued by stating that many of the 60 redundancies and 15 retirements brought about by restructuring involved management as well as clerical and sales staff: ‘It has obviously been a shock to staff. … As far as possible we have applied the ‘breadwinner’ concept and staff over 60 years of age have been asked to retire.’

There had been criticism about the company’s failure to warn staff of impending redundancies, but Mr Evennett said he believed that the way it was done was correct and that it was ‘a once and only pruning – there was no question of additional lay-offs’. Reaffirming the Farmers’ Coop’s success over a 71-year history as a Taranaki and Wanganui privately owned company with 8,500 shareholders, he said: ‘We believe we provide a service to customers not matched by national operators. … We want to remain as a private co-operative society, and it is a matter of remaining competitive.’

Employee numbers as at the end of March 1986 were as follows: February March

Retail Branches:

South Taranaki Area 186 193 North Taranaki Area 211 212

BETTER TO LIVE WITH THEM THAN FIGHT THEM

Area Offices: South Taranaki 20 15

North Taranaki 24 20

Livestock: South Taranaki 15 17 North Taranaki 13 13

Marketing & Technical Services: 13 13

Head Office: 19 19

Finance Company: 4 4

Wool Company: 17 17 522 523

Throughout the year the financial situation of the company did not significantly improve although redundancies, restraints and other measures were helping to lessen the impact of a volatile economy, the serious situation facing many hill-country farmers, and a depressed motor industry throughout the country. Wanganui farm supplies, and the operations at Feilding, Marton and Waverley, including all motor departments were negatively contributing to a reduction in turnover. Investment bankers FASMacquarie Ltd had now been employed to assist improving profitability and to revise the company’s financial structure and reduce the level of debt. The sale of unprofitable assets was now being seriously considered. At a meeting of the board on 7 November 1985 a motion was unanimously carried that:

The executive committee recommends to the board that the Company commence negotiations with a view to obtaining the sale of assets in the Wanganui area, including Feilding etc, at the best possible price and in the best interests of the Farmers’ Co-op Society of N. Z. Ltd.

The negotiating team assigned to the task of selling the assets comprised the chairman, deputy chairman and general manager. At the same meeting a confidential paper was presented which summarised the discussion at the executive board meeting on 30 October 1985 following a recent conversation between Elders Pastoral Limited and the chairman, deputy chairman and general manager of Farmers’ Co-op. It was a quantum leap from topics the directors were expecting to deliberate on. Elders Australia had recently entered New Zealand through the acquisition of established New Zealand companies, including what was then known as Allied Farmers, and J. E. Watson had confirmed that plans were in hand to become a nationwide company, purchasing the remaining ‘independents’ or at least coming to some other arrangement with them to achieve that goal.

In essence the paper drafted by Mr Evennett for the board outlined the Elders Pastoral offer, including a variety of options to purchase all or part of The Farmers’ Co-operative Organisation Society of New Zealand Limited:

Elders Pastoral are prepared to pay us cash for:

Our entire business, or

Cash for those parts of it that they really want, i.e.

1. Saleyards and commission business

2. Wool Company

3. Possibly some farm outlets, or

A share/selling on behalf of arrangement for our commission business, including wool. Elders would be contacted after discussion with our board.

Elders indicated that although they were not interested in the company’s motor branches and retail businesses outside farm supplies, they would nevertheless purchase the entire Farmers’ Co-op group and on-sell any unwanted parts of it. This would, however, mean that the total price would be somewhat adjusted to take these unwanted departments into account, which in the end would bring down the overall purchase price considerably. With these firm offers on the table, the paper concluded by setting out a number of possible ‘tactics’ for the company to consider:

1. To agree to sell everything.

2. To say no outright to Elders.

3. To allow Elders some restricted entry on the basis that it will be better to live with them than fight them. (Selling on behalf for the Wool Store is a possibility.)

4. To turn the situation around and use it to our advantage to rid ourselves of non-performing operations, e.g. Wanganui area (excluding Londontown), at no loss to ourselves. Strategically this has much to commend it in that:

It does not alter the number of significant operators in the Wanganui area.

It leaves Elders own options open for nationwide expansion.

The ‘protecting our back door strategy’ is outdated and will not work against a determined competitor.

FCOS at book value, would rid itself of $5 million of funds employed on which (at marginal rates) it is currently paying $1.25 million in interest with a negative return.

Schedules detailing profits/losses in the Wanganui area and book asset values were attached to the report.

Negotiations with Elders commenced immediately, the directors requesting that ‘as hard a bar gain as possible be struck with the Wanganui Motor property’, although they made the point that the negotiating team should make sure ‘that the main deal was not lost due to the intractability on one or two minor points’. The directors found themselves on a rollercoaster ride throughout the next 15 months, with few matters relating specifically to day-to-day trading other than the presentation of financial statements and discussions on profit and loss reports. They were now totally consumed with meeting budgets and dealing with the shedding of assets to maintain liquidity. By early February the sale of certain Wanganui assets to Elders Pastoral had been satisfactorily concluded and approval in writing had been received from Dalgety Crown and Wrightson NMA for the assignment by Farmers’ Co-op of its shareholding in the Fordell and Feilding saleyards, with the settlement date 1 March 1986. In the meantime Farmers’ Co-op was committed to managing the areas until the settlement date. In addition an agreement was reached to sell the Marton motor business to the Ford dealers in Marton, and Elders had agreed to buy the Marton site should no other purchaser be found. A number of other proposals and negotiations were under consideration to divest the company of unprofitable outlets and properties in the Manawatu and Wanganui districts as quickly as possible. At this stage it did not include the departmental store Londontown.

In spite of the measures being implemented to correct continuing losses, the company was still failing to meet satisfactory and sustainable profitability. A storm was now gathering on the horizon with ominous intensity. Naturally, having assumed the role of general manager only six months earlier, Derek Evennett did not have the inherent passion of a lifetime of Farmers’ Co-op culture, yet neither was he shackled by the introverted parochial philosophies of the past, and that allowed him to institute some of the harder decisions that others, with longstanding loyalties, were unable to prosecute. By April matters had worsened and the now chief executive officer’s report to the board had a tone of resignation about it. Saving the company in its present form under the weight of difficulties now prevailing seemed almost impossible. He conceded that: ‘the report had been prepared to demonstrate the extremely difficult circumstances that the Group is experiencing and is likely to face for the foreseeable future.’

TO LIVE WITH THEM THAN FIGHT THEM

The report addressed the options available and recommendations on a course of action. The month of February 1986 showed a loss of $360,000 over the previous year, with turnover 27 per cent down. The seven months turnover to 28 February 1986 was also down 20 per cent on the budget. In addition the turnover for seven months ended 28 February 1986 was 11 per cent down on the corresponding period of the previous year. Although the effects of a variety of measures adopted to remedy the matter had yet to kick in, such as redundancies, the sale of the Wanganui assets, the Wanganui motor property and structural reorganisation, and the commencement of negotiations to break free of a number of unprofitable units and assets, it still appeared that, on its current level of trading, the group would not be able to correct the deteriorating financial situation. Taking into account the benefits of the sale to Elders and the removal of loss-making activities from the group, projections showed that the company was still expected to lose $300,000 per month. Five options for consideration were placed before the board with a brief explanation:

OPTIONS:

1. Further immediate improvement in operational efficiency in the following ways:

(a) increase market share.

(b) reduce staff levels again.

(c) accelerate the sale of unwanted assets/non profitable operations.

(d) further refinement and immediate action in terms of our selling philosophy, products, stock levels, and purchasing arrangements.

(e) expenditure of capital amounts to reduce operating costs, e.g. in terms of reducing the number of points of sale in our stores and providing direct computer access.

(f) abolition of advertising.

2. Immediate diversification.

3. A public appeal to the people of Taranaki to support our Group.

4. Merge with one or all of the remaining independent Stock and Station Association industry members.

5. Sell the entire Group.

Option 1 had been discussed in detail with the management group. All individual items were currently under review and substantial progress has been made in this area. It was considered that either acceleration or the immediate implementation of other items in the short term, i.e. less than one year, would be impracticable. The management group further considered that the current economic situation and depressed market conditions would continue for at least a further year and therefore the losses would continue, or at best a substantial proportion of them. It was unanimously agreed that the board could not allow the situation to continue because the group could not sustain a loss factor of at best $2.5 million per annum and at worst, $4.0 million per annum.

Option 2 required immediate diversification on a level substantial enough to turn around the total group’s situation and was considered by itself to be a non-viable option because of constraints on raising the necessary capital. However, in terms of retaining a substantial Taranaki-based organisation it was considered to have merit and could be discussed further in conjunction with another option in the report.

Option 3 related to organising a planned public appeal. This would take the form of appealing to the people of Taranaki to further support Farmers’ Co-op and to admit that it is the only way that it could stay in business. This option would require further consideration and opinion of the board of directors. It was, however, the opinion of most members of the management committee that in the end result customers would be looking after their own needs and that the local company sentiment would not take precedence. It had been tried in the past by various local organisations and in most cases had not succeeded.

Option 4 suggested a merger with other independents and illustrated a situation that if the five independents formed one company it would be approximately equal to the size of the Dalgety Crown organisation which was to be taken over by Wrightson’s. The management committee had considered that this was not a preferred option because very few benefits could be foreseen, especially as all companies are already members of The Farmers Co-operative Federation which essentially acts as a buying organisation. In any case we would lose the true local identity factor from such a move.

Option 5 was placed last because the management committee agreed that it was the leastpreferred if they wished to retain the traditional values of the organisation. It was agreed, though, that the major responsibility was to ensure that any subsequent owner would carry on and provide employment for staff, who currently numbered around 540. The company’s weak financial position and the depressed market conditions that were likely to continue for some time left the board with no other viable option and it was therefore recommended that the Company pursue Option 5. If sale of the entire organisation was achieved it was thought that a figure of around $12 million may result. When considering the diversification option, the question arose as to whether the present shareholders, numbering 8,500, would be interested in continuing a substantial locally based organisation using the capital from the sale of the existing business. The chief executive stated that: ‘There was no question that there was a future for substantial regional based organisations especially when they are not dependent on acquiring the financial muscle to compete with national organisations.’

Mr Evennett’s report concluded with the following recommendation:

Therefore it is suggested that this option be extended to investigate immediately an alternative base business that current shareholders of our group could be involved in. We would use our investment advisors to first of all establish likely activities and then if these recommendations were accepted, to look at acquiring them with the capital gained from the sale of our existing assets. In addition, we could carry this out with the partial repayment to shareholders of their existing shareholdings which in the majority of cases would be substantially more than their original investment in our Group.

CONCLUSION:

It is requested that the Board gives the company management the authority to pursue the course of action of seeking a buyer for the current Group operations, and at the same time look for an alternative business that will be based in Taranaki and will provide a healthy return for existing shareholders.

Irrevocable Commitment

In the Society’s nearly one hundred years of trading, no other board of directors had been charged with deliberating on matters that could effectively bring an end to the oldest and largest provincial trading organisation in Taranaki. This business, originating from Arthur Fantham’s Egmont Farmers’ Union Limited stock and station operation in 1889, was now cradled precariously in the arms of its directors and executive management. Although seemingly self-inflicted, it would be fair to say that its extraordinary predicament and tenuous grasp on survival had been aggravated by recent national economic restructuring which had hit at the very core of the farming community and associated industries. The weakened financial base of the company following dramatic capital commitments placed it at the forefront of the financial collapse being suffered by many companies in the ‘crash of 1987’. Much of Farmers’ Co-op’s success had been built on the growth and achievements of the farming sector, and the new government measures had impacted adversely at a time when it was most vulnerable and was, as well, hindered by an irreversible ingrained philosophy that prevented it from extricating itself from the current financial instability.

Now the magnitude of the situation and making an immediate final decision on the company’s future was too much for the directors to take in. Further models of probabilities of ‘what if’ situations, were requested concerning the sale of the motor business, Londontown and the Wanganui Wool Store, the projected effects if Londontown, Hawera, Stratford and New Plymouth branches were retained and the other branches of the group closed. In addition the directors asked that a meeting be arranged with senior executives of other independent companies to ascertain views on amalgamation or shareholding participation in a new national company to be formed from the independents with possibly some outside equity shareholding. This proposal did not find favour with all members of the board and three, P. A. Murdoch, R. A. Death and D. B. Sarten, voted against the motion.

It was immediately resolved to adopt three items included in Option 1: to increase market share, accelerate the sale of unwanted assets of non-profitable operations, and ‘further refine and take immediate action in terms of our selling philosophy, products, stock levels and purchasing arrangement’. It was also resolved, ‘to give authority to the management to reduce staff levels should they be so required to do in an endeavour to reduce the costs of operating the company’. Mr Evennett advised his intention to open discussions with Mr Sholto Matthews of Elders on the Wanganui Woolstore and the possibility of some sort of joint operation.

Following lunch a presentation was made to Mr George Livingston Baker and Mr Arthur Henry Foreman both longstanding shareholders. Mr Baker had been allotted shares transferred from his father in July 1916 and Mr Foreman had received shares in a similar manner in March 1919. They were each presented with a framed photograph of the first of board of directors.

To say the situation was fluid would be a huge understatement; new and significantly different scenarios were presented to the board for consideration at each monthly meeting. This coincided with the appointment of Mr Peter Taylor of Arthur Young Financial Services, Wellington in May 1986 to assist in the review of the many scenarios coming forward and diversification possibilities. He now attended most executive and monthly board meetings, supporting the chief executive and providing technical, advisory and financial advice. Divestment of unwanted divisions was now well and truly under way, with progress and planning for the sale of New Plymouth, Hawera and Stratford motor branches to R. J. Burkitt Ltd scheduled to take place on 1 July 1986 or thereabouts. The motor division, although never highly profitable, had been a huge part of the company’s turnover throughout the past century; it held agencies for various brands dating back to 1914, and had had a strong and long relationship with the Austin Motor Company. The imminent loss of branches at Hawera, Stratford and New Plymouth, with their large and loyal garage and sales staff now on the verge of redundancy, seemed a tragic end to this pivotal part of Farmers’ Co-op’s one-stop-shop philosophy.

The Wanganui motor operation transfer to Elliston Motors was also well advanced, the Marton motor operation had been closed and the sale of Londontown at Wanganui was under negotiation with a number of interested parties. The sale of Specialty Machinery was also under negotiation, and apart from the departmental store and rented-out shop fronts at New Plymouth, all other remaining property would soon be vacant, with a variety of proposals being examined.

In the face of all this adversity, and the downward spiralling that could not be halted or even slowed, Farmers’ Co-op made a bold and courageous last-ditch effort to launch a major corporate marketing campaign in an attempt to revive sagging staff morale, improve trading conditions and stem losses. The focus of the campaign was on creating a new corporate image that would inspire a revival and be a springboard for the organisation to ‘play an even greater leadership role in the retailing and stock and station activities in Taranaki’.

The theme was, ‘The Dawn of a New Era’, to show the people of Taranaki the Company’s deep commitment to the province and its communities. The new trading name was unveiled on 28 July 1986, as TARANAKI FARMERS.

Although it did not find favour with everyone, a new strong corporate logo was now proudly displayed on all premises, vehicles, stationery and other signage throughout the province. Staff now wore fashionable blue uniforms with red accessories and gathered at meetings throughout the province to launch the new trading name – Taranaki Farmers – replacing what had been the revered but long-winded title of The Farmers’ Co-operative Organisation Society of New Zealand Limited, although often shortened to FCOS or Farmers’ Co-op. Despite its facelift the company continued to perform badly and targets were not met. The New Plymouth store and livestock departments were both contributing to the downward trend and market share was also declining in some northern districts of the province. In addition the farm supplies division was failing to meet budgets. The task for the directors was increasingly daunting and stressful. At the September 1986 meeting of the board, discussion on options available to the company continued and the chief executive advised that an approach by the advisors Arthur Young to Elders Australia had met with a favourable response and a decision was now required from the board as to the next steps to be taken. Director Preston Bulfin stated:

The time was fast approaching for us to put our cards on the table in front of the shareholders, as the prime responsibility of the directors is to protect the shareholders’ interests.

As far as the Elders approach is concerned we need to establish (1) what they are prepared to buy (2) what they are prepared to pay (3) what protection they will give to staff. To gain answers to these questions we will need to pursue negotiations at least to a stage that will enable the directors to make a decision on informing shareholders.

It was resolved that confidential negotiations take place with Elders to clarify the terms and conditions of their offer and Arthur Young be authorised to enter into discussion to explore what the possibilities would be if Farmers’ Co-op considered selling the Group as one of its options. This communication resulted in talks between the two parties being abandoned, with Elders Pastoral Ltd indicating that they had their hands full with a recent Dalgety Crown transaction and were no longer interested in an offer of sale. Mr Taylor from Arthur Young noted that ‘this was an about-face from their original discussion with their Australian director, which could be a negotiating ploy on their part’.

Although not unanimous, a motion was carried, ‘that Arthur Young be requested to enquire again of Elders through their Mr Chumley whether Elders are definitely interested in pursuing the purchase of FCOS or not.’

Mr Taylor then suggested the board now devise strategies over the three months until the annual general meeting in December, to consider the options for the survival of the company. Mr Evennett added that scenarios considered by directors should be updated and re-explored so the board would be able to show they had been fully investigated. Mr Blyde said that, by the time of the December meeting we will have available profit figures for August, September and October, plus sales figures for November. This allows us time to decide what to tell the shareholders at the annual general meeting or at a later extraordinary meeting.

Mr Bulfin stated that, when the directors are in a position to make a recommendation to shareholders an extraordinary general meeting could be called, and this could be stated at the annual general meeting if thought necessary.

Communication was now deteriorating in all areas of operation as a consequence of enormous changes in structure and policy. Staff were dissuaded from speaking about their concerns to directors and instructed to channel any matters through the normal company managerial chain.

The merry-go-round continued, with various other parties entering the purchasing arena. A meeting with Sir Ronald Trotter, chairman of Fletcher Challenge Ltd, and Mr Downey in Wellington on Thursday 13 November provided Reeve Williams and Derek Evennett with the opportunity to advise steps the company had taken during the past 12 months to improve its situation. Sir Ron’s strong family connection with the Farmers’ Co-op allowed open expression of the difficulties that had been faced during the past few years and this dissertation received a sympathetic ear, with Ron Trotter and Mr Downey, suggesting that they might be able to assist in the orderly disposal of the business by offering financial assistance while this was done and perhaps taking over the livestock and farm supplies. Mr Evennett, in advising the board of the deliberations, said it was his ‘belief that Fletcher Challenge would wish to resolve the arrangement quickly and that they would act with integrity in their dealings with us’. Following a full and frank discussion by the board it was resolved that the chairman, deputy chairman and chief executive officer proceed with negotiations with Fletcher Challenge Ltd, and that they be authorised with full power to act. Because of the delicate nature of the negotiations, it was also resolved that strict confidentiality be adhered to by all board members.

Three weeks later at an executive directors meeting at New Plymouth the chief executive explained that two further meetings had been held with Messrs McLachlan and Bilas of Wrightson NMA, where the ‘cards were put on the table’ regarding the company’s position. Problems with the Commerce Commission could be foreseen; to proceed Taranaki Farmers would need a definite ‘no’ from Elders. That company was thus approached again and they now stated they did have an interest in the business, particularly the stock and wool, and the establishment of retail stores in Inglewood, Waverley, Opunake and Stratford, perhaps the farm supply stock in Hawera and New Plymouth,

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OLD TO BE SECRETS NOW

and some staff. Elders might also be prepared to take over Taranaki Farmers’ debtors in those areas after a review of the books. With the trading results for October showing a net loss of $261,000 for the month and newspaper reports warning shareholders in advance of the annual general meeting that it had been an ‘extremely difficult year’ resulting in a $1.78m loss for the company, there was a conviction that the downturn had not yet bottomed out. The trading loss had been significantly increased by the exchange loss suffered on the overseas loan arranged two years earlier and the costs involved in the reorganisation of the company to bring it to its present position in terms of the agreed business objectives. The likelihood of any recovery, at least in the near future, was slim. The number of employees of Taranaki Farmers had now been reduced to 405.

Unashamed Love Affair

New colours and a brave face greeted 90 shareholders at the 72nd annual general meeting held in the Athletic Clubrooms, Camberwell Road, Hawera, on 22 December 1986. There was an air of tension and guarded expectation as to what they were about to hear. The drums of discontent had been sounding around the mountain during the past 12 months and anxious shareholders now saw strength in numbers. Many attending were the hard-core, longstanding shareholders whose families had ‘a blood, sweat and tears’ stake in the company, which had been their salvation at times of difficulty in the early years of the 20th century. Now they wanted to make their presence count. This was not just their company, but the cornerstone of the heritage and material wealth that their families had nurtured over generations. They were not about to gift it to the opposition. The hour and day had arrived when they would express their pride and devotion to their own champion rural trading society.

Time stood still as embattled chairman Reeve Williams rose before the assembled shareholders in this most precarious a moment in Farmers’ Co-op’s history. It had survived depressions, two world wars, a raft of turbulent economic difficulties over recent years and a changing commercial environment, yet despite all the deliberation, innovation and best endeavours the point had now arrived when this exhausted board of directors had reluctantly capitulated and were considering the worst possible alternative. The chairman’s own health was beginning to deteriorate from shouldering the enormous pressure and responsibilities he and his team had been grappling with for the full term of his chairmanship. At the same time, the reputation of his family, who had played a pivotal role in the development of South Taranaki during the pioneering days and were known for their integrity and leadership qualities, was at stake and this was weighing heavily on Reeve Williams’ mind. Despite his deteriorating health he had clearly demonstrated to his fellow directors his desire to see the episode through to its conclusion. His stoic stance had been supported by the board.

Speaking to the meeting the chairman said that, ‘everyone will be only too painfully aware of the unparalleled economic circumstances that the Company has had to operate in for the past year’. It had been stated at the annual general meeting the previous year that plans had been formulated to cope with the future, ahead of the opinion of many at that time, but in reality, apart from continuing spiralling interest rates, nothing had really changed. Plans to deal with the problems had been formulated and progressively carried out through the year but there was still ‘little light at the end of the tunnel’ as far as the external economic environment was concerned. He spoke of the disposal of poor-performing operations and said that significant moves would be announced within a few months. He requested the meeting’s patience because any premature announcement could prejudice negotiations, to the ultimate detriment of shareholders.

Deputy chairman Peter Blyde introduced Mr Trevor Harrop to the meeting as the new company

secretary, and then announced the company’s recommendation not to pay a dividend in view of the poor results. He expanded on the losses and causes and advised shareholders that although all were aware of the uncertainty about the future, ‘it was not a topic for discussion at this meeting’. The board and management would continue to seek the best independent advice, as they had done in the last year through Arthur Young Management Services, and would work to look after both staff and shareholders’ interests. Mr Evennett expanded on certain aspects of the company’s activities in the past year, stating that the strategy had revolved around regrouping activities in Taranaki in the stock and station operation and general retailing. Divestment of all retail and stock and station activities in Manawatu and Wanganui, including retail stores at Marton, Wanganui and Feilding and livestock operations relating to the Fordell and Feilding saleyards had been completed as well as a major part of Taranaki Farmers’ motor business in Taranaki and Wanganui. The finance company’s growth had trebled from $3m to $9m within one year and steps had been taken to improve management and the level of stocks and debtors. He referred to the external situation, which revolved around interest and exchange rates, supply and demand, the general economic downturn and the increase of unemployment in the province with real incomes and the level of spending still declining. One of the fundamental problems was the lack of equity capital and having to borrow excessively at high interest rates in order to fund the business. He indicated that the company was not alone in such difficulties, which had also resulted in the recent merger of Dalgety Crown and Wrightson NMA.

The meeting was liberally seasoned with shareholding staff and a number of the more outspoken protagonists of the FCOS brigade who were primed and poised to enter the debate. The first to take the floor was Waverley’s Brian Train, attending his first Taranaki Farmers annual general meeting, who asked why forward cover wasn’t taken at the time of taking out the overseas loan. Mr Blyde replied that ‘The option was recognised and expert advice had been sought and advice had been that it was better to take the risk’.

Although the loan had been taken out before he had joined the company, Mr Evennett stated that, ‘The interest rate had been very favourable at 6.5%. At that time our internal borrowing rate was 24%, a rate that the company could not afford.’

A succession of other speakers rose to question decisions made and general management of the company, including Messrs Dickie, Pedersen, Winks, Bourke, Morse, Ashton, Brown, McIlwraith, Todd, Warren, Mullan, Hunt, Smart, Kavanagh, Ellingham, O’Brien and Richardson, all gave vent to their concerns over the cost of restructuring, the reduction in staff from 700 to 400 and many other matters. The discussion concluded with Mr Dickie stating, that questions had to be asked on performance over the past year. Shareholders are here today because of their concern, they are concerned for the Company’s future, and there have been disturbing elements in the rumours circulating.

In general business Mr Train moved that more information, in the form of a breakdown of activities, be given in the annual report. This was seconded by Mr Morse but Mr Ashton felt that this should be a recommendation only. Mr Blyde said the board would take notice of a recommendation. Mr Train, replying that he preferred the motion to stay, stated that if the balance sheet had provided more information there would not have been so many questions. Further discussion ensued, with Mr Train, in his right of reply, stating that a breakdown in great detail was not required but future balance sheets should give data separately for activities such as stock and station, finance company, retail and merchandising sector. The motion was carried 30 votes to 24. The meeting had now been in progress for three hours and a resolution, that a shareholders’ meeting be held in July or sooner if extraordinary circumstances arose, was carried.

The meeting concluded with a presentation to Messrs C. A. Downs, R. W. Green, and F. G. Hendrick in recognition of their 25 years service with the company. Thanks were accorded to the

staff for their loyalty and enthusiasm, to the board of directors for their time and effort on behalf of the shareholders, and finally Mr Williams wished everyone the compliments of the season, with the hope that the next year would be a more successful one.

Immediately following the meeting, directors met in the Regent Street boardroom to elect a chairman, deputy chairman and appoint an executive committee and directors for the subsidiary companies. Mr A. G. R. Williams vacated the chair and Mr Evennett called for nominations for chairman:

Mr A. G. R. Williams was nominated by Mr Veitch and seconded by Mr Death, with Mr Veitch stating that nomination was on the understanding that it would be for a temporary period to assist the company in its current negotiations. It was still Mr Williams’ wish to alleviate some of his workload in the future for health reasons.

Mr Blyde who had also accepted another term as deputy chairman agreed that Mr Williams should continue in office and thanked the board for their support. The chairman, deputy chairman and chief executive officer were thanked for the way they had handled the questions at the annual general meeting.

The board of directors now comprised:

A. G. R. Williams, chairman, P. McC. Blyde, deputy chairman, I. D. Adamson, R. L. Bremer, P. E. Bulfin, R. A. Death, J. A. Halton, T. J. Jamieson, J. A. T. McEldowney, P. A. Murdoch, J. P. V. Norman, D. B. Sarten, B. D. Veitch, with T. J. Harrop company secretary.

CHAPTER THIRTY-NINE

The Last Supper

Discontent simmering beneath the surface was slowly reaching boiling point as shareholders became aware of the enormity of the financial difficulties facing the company. To make things worse, late payment for stock sales and charging interest on overdue accounts were not the actions of the company as they knew it and this was beginning to irk some of the more discerning clientele and they were now wondering where the management and board of directors were taking the company and what the long-term prognosis was. Lack of detailed information had been one of the main topics of discussion at the recent annual general meeting and now, with a genuine concern that the organisation may be lost to the Taranaki farming community, a number of small groups came together who felt that they should take the destiny of Taranaki Farmers into their own hands. A series of events took place which turned what was becoming a slippery slope into an abyss of unknown dimensions.

Despite relative isolation, rural communities have always come together when Mother Nature displays the worst side of her character or man-made issues affect the quality of lives. Challenging adversity is inherent in all who live and work on the land. The continuing viability and state of their own provincial stock and station agency was of deep concern to all farmers and families who had longstanding connections with the organisation. After all, it had 8,500 current shareholders, a loyal staff of over 400 and many hundreds of former employees. A vast number of families throughout the province had proudly held the Farmers’ Co-op flag high through good and bad times and were not going to surrender it now. Shareholders, staff and even a few past directors were now conspiring to fight the good fight. The bush telegraph was effectively rousing people sympathetic to the cause, who might now influence the outcome of the negotiations to sell the company.

Christmas 1986 arrived and the events of the past week since the annual general meeting had crystallized the resolve of a few shareholders to do something. Three Waverley shareholders with strong personal affiliations through their association in a number of local enterprises and organisations, namely P. R. Pedersen, R. P. Richardson and B. Train, had, in the light of Taranaki Farmers’ decision to sell all or part of the company to Elders Pastoral Ltd, informally undertaken a preliminary study showing that the purchase of the livestock and wool-broking business currently operated by Taranaki Farmers was a viable proposition and had collectively discussed the possibility of making an offer to the company. If the stock division was going to be sold they would attempt to buy it and keep it in the province. Following discussion with staff connections in the stock department, the Waverley group’s proposal was passed on to director Preston Bulfin, who invited Paul Pedersen, a personal friend, and Brian Train to attend a meeting at his office on Boxing Day. A frank discussion took place between the three men and later in January a further meeting was arranged between Messrs Pedersen, Train and Richardson, Preston Bulfin and Derek Evennett to further explore the trio’s proposition.

By February 1987 discussions with Elders Pastoral and the maverick Waverley group were now consuming most of the board’s attention the chief executive was also continuing negotiations relating to the sale of unwanted sections of the company’s assets. Discussions with Progressive Enterprises in relation to the New Plymouth property continued; and they were also showing interest in the Hawera and Stratford branches for a ‘Three Guys’ operation. Westpac Bank was seeking buyers for the premises and three other parties were also interested in the property. FCOS Finance Limited had six possible suitors and Crown Finance had offered $2.5 million which was not acceptable. In connection with the appointment of a statutory manager, Messrs Bulfin, Evennett and Mr Tait from Arthur Young Management Consultants had met with Colin Moyle, Minister of Agriculture, to present submissions in relation to the company’s position and their reaction to the appointment of a statutory manager. Although the Minister’s reaction was as expected, he was ‘disturbed to hear that up to 100 farmers could be forced to sell if the Farmers’ Co-op failed’. Meetings were also held with Messrs Friedlander, Bolger and Young in New Plymouth to update them on the position of the company and the avenues open for consideration. Westpac and ANZ Bank had also been kept in the loop on the various negotiations taking place. The Farmers Trading Company had also been approached regarding their possible interest in the Hawera and Stratford branches.

The purchase of the livestock, wool, real estate and farm supplies divisions had been approved by the Elders board and was now only dependent on agreement of the Commerce Commission and Taranaki Farmers’ own shareholders for finalization. Two further meetings had been held with Elders Pastoral Limited regarding staff positions and the number to be retained. Mr Evennett had shown his displeasure regarding certain aspects of the purchase of the company’s business in the northern area; the limited exposure in the area would not generate the goodwill required. A special meeting was arranged for Elders to present to the board the reasons for the limited offer, and to enable the board to express concern about the effects of the limited offer on market share in the northern area. Mr Veitch asked whether the company had any policy on continuing business after the Elders purchase of some branches, and Mr Evennett advised that Taranaki Farmers had not competed with Elders in the towns where they were established.

On the matter of the Waverley group, the chief executive reported that representatives of Waverley shareholders had been informed of the company’s position and three meetings had been held. They had requested that the divestment of assets be altered in the order of disposal, with the New Plymouth property and business being first, other branches following, and the livestock and wool business last. This was so that the company would know what remained in the way of shareholders’ funds. The Waverley group would then make a cash offer for the business. The board felt that it was important that the Waverley group was on the side of the directors at the Extraordinary General Meeting, stating:

if the Directors’ recommendation is put to the meeting and this group raises an alternative, it would create chaos at the meeting and lead only to the destruction of the company. The Waverley shareholders recognise this point and have stated that this is not their intention.

The letter from the Waverley group to the directors dated 4 February 1987, detailed their proposal:

The Directors, Taranaki Farmers, Hawera.

Dear Sirs,

We thank your representatives for giving their time to discuss the proposals of our group and in response to their suggestions, set out below [is] our position relative to the present proposed disposal

OLD TO BE SECRETS NOW

of the company’s assets. It is our group’s grave concern that the present proposal for the sale of a portion of the company to Elders Pastoral Ltd. would not be in the best interests of the farming community.

A preliminary study shows to us that a livestock and wool broking business would still be a viable proposition. (The study was completed by our accountant and commission figures used were confirmed by Mr Evennett as being realistic.)

Our group would therefore be prepared to float a company to purchase the appropriate assets. It is obvious that with the farming economy the way it is at present there would be little chance of our raising cash from that community. However, we are convinced that we would have support for a scheme of offering shares in a company to be formed in exchange for the Taranaki Farmers shares these farmers hold. However, because of the nature of our suggestion all other assets of your company would need to be sold first to establish a value per share to be offered to the existing shareholders.

The asset purchase of approximately $1.2 million could be achieved by the taking over of 1.2 million shares and the contribution of $300,000 of cash. (To this end we have calculated that wool clients alone hold 900,000 shares in the company.) The proposal of course is assuming the shares, after the disposal of all other assets and the payment of redundancies etc., will have a value of at least 75 cents each as we are led to believe. Our proposal should not affect the present Taranaki Farmers ability to sell its tax losses.

For the purpose of obtaining acceptance of our proposal our group would arrange meetings (preferably with the blessing of the directors) of the present shareholders.

We appreciate that the concern of the directors would be that this proposal could not be put in place until all other assets were disposed of. However, we believe that at present the sale of this part of the business will do little to relieve the financial problems the company presently faces. Indeed it would more probably reduce the value of the remaining assets. We have already been assured that the sale to Elders Pastoral Ltd. will not take place:

(1) Until the sale of the New Plymouth store has been finalised; and

(2) Before the shareholders have given their approval.

It is our belief that this alone is not enough and that negotiations should be completed for the disposal of all assets before the relative merits of Elders and our proposals can be evaluated.

In conclusion, we are seeking a change to your apparent priorities of disposal.

Yours faithfully, P. R. Pedersen, On behalf of: P. R. Pedersen, B. Train, R. P. Richardson

On 5 February 1987 the Waverley shareholders’ letter was tabled at a meeting of the board and a full discussion of the proposal took place. As directors felt they could not be seen to favour one section of shareholders over another, it was decided the Waverley group would need a firm offer at least equal to the Elders deal that could be put to the shareholders, should they turn down the Elders proposal. Preston Bulfin indicated that if the Waverley offer was at least as good as Elders then directors could explain the two offers to the Extraordinary General Meeting and recommend which deal to accept. He felt the proposal in its present form was not acceptable as the board would need a firm offer of purchase to change the present planned programme. Essentially no further contact was made between the board and the Waverley group, except Mr Pedersen indicated that, ‘financially they would not be able to go ahead with their proposal unless the Elders deal was substantially changed’.

While the contingent of Waverley shareholders in the southern part of the province were pitting their wits against Taranaki Farmers in an attempt to salvage at least a part of the company’s operation, unbeknown to them Mr Paul Harris and Mr Roy Lithgow, former employees and accountants of the company, had an unscheduled yet fortuitous meeting with one of Farmers’ Co-op’s

loyal and long-serving employees, Colin Morrison, on a Stratford Aero Club sightseeing train trip to Taumaranui on Sunday 1 March 1987. Colin had recently been appointed retail manager for the entire group, with the task of assisting with the sale of assets, closing down the motor division and negotiating the many redundancies planned by the board. It was without doubt the most unpleasant and traumatic experience of his long association with Farmers’ Co-op, as he had worked closely with many of the people involved. Colin recalls: ‘I can remember the days sitting in the board room planning redundancies around the country. It was awful, I remember going to New Plymouth one day and making forty people redundant.’

Other than ten years sharemilking he had spent his whole working life with Farmers’ Coop. As a 13-year-old third-form pupil at Stratford High School he began a milk run starting at 4:30am seven days a week because his father had passed away and money was in short supply in the family. One of his school mates swept floors at the Stratford branch of Farmers’ Co-op and was leaving, so Colin took over his after-school job and swept the floor for three years. After leaving school at the age of 16 he approached the Farmers’ Co-op manager, Tom Molesworth, regarding the possibility of a permanent position. His ambition was to be a stock agent, but that was not to be. He recalls:

In the process of sweeping the floor – you would see these stock agents driving around in their Austin Westminster’s and I thought – I want a bit of this action! So I was in the main office, the office boy for a year, and then I went down to what we called ‘the merch office’, which was in the shop and I had my sights set on being in the stock department. But Mr Molesworth was not having a bar of it – it must have been about four years I think. Then I was told that the merchandise part of the business was where I was going to be heading. I was sent to Eltham as a ‘merch. rep.

He was disappointed but after all he was only 20 years of age. With a job and an Austin A60, what more could a young man want! Despite being well respected and destined for a long future with Farmers’ Co-op, unfortunately the bottom line was that his dream of being a stock agent did not seem likely to be realized, so with his wife, Judith, he headed north and went sharemilking in the Waikato. Eventually he received the call he had been waiting for from district manager Peter Western offering him a position as stock agent based at Stratford, servicing Whangamomona, Tahora and Kohuratahi which he gladly accepted, eventually being appointed district manager for Stratford, Eltham, Kaponga and Ohura and later area manager Hawera. At last he had realised his dream. It was a huge step, however, and he had only been in the position for a short period when in 1985 the new general manager, Derek Evennett, appointed him to the position of retail manager. He was now involved in divesting the company of unwanted assets and, regrettably, staff. Derek Evennett met with Colin one evening and explained the company’s proposal to sell to Elders Pastoral Ltd. with Colin’s considerable knowledge of the shareholders, their philosophy and loyalty, he knew instinctively that they would not take it lying down and said to Mr Evennett, ‘the shareholders won’t wear it’.

The decision had been made and the outcome seemed inevitable. Throughout this extremely demanding and testing time Colin was under considerable pressure and working long hours on what seemed an endless and fruitless task. Judith was only too aware of the difficulties Colin was facing on a daily basis and recognising the need to take Colin away from the problems, at least for one day, she decided to give him a surprise by ‘conning him’ into taking a day train excursion from Stratford through the eastern bush country and over the Raurimu Spiral through to Taumaranui. The train was full of local people who knew each other. Not long into the journey he met a couple of former work mates, Paul Harris and Roy Lithgow, both still reeling from reading a large front-page newspaper report on Tuesday 24 February that Taranaki Farmers planned sell what they considered ‘their old Company’ to Elders:

TARANAKI FARMERS FOR SALE BIG LOSSES FORCE FIRM TO QUIT

Taranaki Farmers has sold its stock and station business to Elders Pastoral – part of a multi-national Australian-based farming group.

The multi-million dollar sale, yet to be ratified by shareholders, is part of a plan to sell off all of the company’s assets. Neither company would reveal the sale price. A statement issued by the company’s directors last night said the size of the losses sustained last year and the projected losses for the next few years meant Taranaki Farmers could not continue its present business. …

It had been a ‘black week for jobs’ in South Taranaki. Hard on the heals of the Taranaki Farmers announcement to sell to Elders, with the retail outlets in Hawera, Eltham, Kaponga, Patea and Manaia along with other property and interests in Taranaki up for sale with the possible loss of several hundred jobs, Kiwi Co-operative Dairies Ltd were about to phase out the gouda cheese plant at Whareroa Road, Hawera and install new equipment to manufacture butter, casein and powder, a plan that would result in 91 jobs also being lost to the region. Venn Young, Member for Waitotara, was so concerned for the district that he raised a question in the House of the Minister of Social Welfare on the number of unemployment benefits currently being paid from the Hawera Office of Social Welfare. Unemployment had in fact doubled in the Hawera district under a Labour Government, and there was more to come.

Feelings were running high and the subject of Farmers’ Co-op’s imminent demise was a topic on the minds of most everyone in Taranaki. As the most prominent trading organisation in the province, almost everyone had some connection to it – as shareholders, clients or as staff. Perceiving Colin as someone close to the action prompted Roy Lithgow and Paul Harris to seize the opportunity on the train to discuss the matter with him to hear his personal view on how the problems affecting the company could be remedied. Colin was passionate about the survival of the company and the travellers hung on every word he said. His words of wisdom doubtless provided Roy and Paul with inspiration and hope. These two gentlemen were highly motivated, well known identities, with good credentials. This meeting later seemed almost pre-destined and it was this shared journey that was the catalyst that brought Paul and Roy together to embark on yet another journey that would have significant wide-ranging and long-lasting consequences for the company’s shareholders, staff and for Taranaki as a whole. They sat together throughout the train ride with one eye on the scenery, but keenly focused on the conversation. The fact was that no formal organised group had yet emerged to oppose the sale of the company to Elders. The collaboration between Paul and Roy to take up the matter was born out of this train conversation between the three men. Paul and Roy knew each other well, and both had past affiliation and strong affection for the company. There was no time to lose. A number of phone calls between the two resulted in the beginnings of a plan of attack. They also heard about the group in Waverley who were working on some alternative possibilities.

Paul Harris and Roy Lithgow met on a number of occasions. They only had just over four weeks to formulate any sort of alternative campaign or plan before the meeting on 30 March. Fortunately both the Waverley and Stratford groups had ‘friends’ inside Farmers’ Co-op who were supplying information regarding the issues and events that were taking place. The two parties met in the office of Paul Harris to discuss mutual concerns. It became evident that they had significantly different agendas; the Waverley group wished only to retain the livestock department and possibly the woolbroking section, ‘letting the rest of the company go’. However, as Brian Train said: ‘We were not privy to any facts or figures … We sat with Paul and listened to what he had to say and where he was coming from and what he was going to do.’

The fact was that Paul and Roy ‘had a plan to get the community to overthrow the directors’ intentions’ and after a number of meetings the Waverley group realised: What we were doing was not helping, we were going down two separate roads. It took 24 hours and we were on common ground. Paul, Roy, myself, Paul Pedersen, and Ross Richardson. Then at the eleventh hour before that meeting we brought in Peter Cook and Joe Laird. We joined forces.

The two groups now as one, supported by diverse and influential local connections, quickly formed a formidable alliance to mount a campaign to oppose the company’s proposal to sell. Passionate longserving staff had become an integral part of this institution and vast number of shareholders had much more than a pecuniary interest in the organisation. They were not going to stand by while what they considered to be the solitaire in the crown of Taranaki’s co-operative movement was disenfranchised and the legacy of over one hundred years of trading lost forever. The highly parochial guardians who had championed this highly esteemed old enterprise were not going to let go without a fight.

Communicating with shareholders and sympathetic staff was the first task and there was no time to waste. One of the key personnel on the inside was long-time employee Frank Bourke, a staunch company man for over 30 years who was known for his forthright debating prowess. He and others gathered the most trustworthy comrades and supporters around them to spread the word as widely as possible to oppose the sale of the company. The combined group used their considerable knowledge and influence to canvass support and publicly voice opposition to the sale proposal by inviting the local press to comment on their endeavours. With the Extraordinary General Meeting planned for 2:00pm Monday 30 March 1987 to ratify the Board’s decision to sell to Elders Pastoral, a decision was made by the opposing group to organise an informal meeting at 10:30am on Friday 20 March at the Athletic Rugby Club rooms at Hawera. Mayor Noel Johnston chaired the meeting and provided shareholders an opportunity to acquaint themselves in advance of the plans to sell the company and the group’s alternative proposals.

Some 450 angry shareholders crammed into the 250-seat clubrooms. It was full by 10:00am and many were left standing in the corridors, stairwell and on the building’s second-floor balcony. Such high numbers had not been expected and as Mayor Noel Johnston called the meeting to order, shouts such as ‘we can’t hear you’ and ‘hold the meeting in the carpark’ were heard. The assembly was in full voice and ready to express their feelings in no uncertain terms. With three minutes to speak, Chartered Accountants Paul Harris and Roy Lithgow outlined alternative proposals for restructuring the company and, following a number of other speakers, including two incumbent Taranaki Farmers directors, a motion was put, ‘that this group of shareholders of the FCOS do not approve the sale of any assets of the Company to Elders Pastoral Ltd’. It was carried by ‘an overwhelming majority’. An executive group of eight, comprising Paul Harris, Roy Lithgow, Paul Pedersen, Brian Train, Ross Richardson, John Cusdin, Don Harvey and Brian Hamerton, was formed to take action on behalf of shareholders if necessary before the Extraordinary Meeting.

Two Farmers’ Co-op directors, Messrs Blyde and Bulfin, attended the meeting, and Mr Bulfin said later that the board would welcome a move by shareholders to raise more capital and save the company:

If shareholders came up with $6 million of fresh capital from their own pockets plus the money from the New Plymouth sale, then it would survive, but it would only be marginally profitable … It would be inappropriate to go and ask them to put more in when the return even then would be negligible.

Directors of Farmers’ Co-op were in no doubt they were acting in the best interests of the share holders and there was no alternative. They considered that every possible avenue and alternative had been explored to save the company or part of it and the point had now been reached where to continue with further rescue attempts would only exacerbate the already highly fragile financial

viability of the company. Although the board was recommending that shareholders approve the sale to Elders, with limited choices available to them and the company in such a plight they had made application to the High Court at New Plymouth for a Scheme of Arrangement under Section 205 of the Companies Act. It had, however, never been the directors’ intention to unconditionally commit the company to the sale of its assets or businesses prior to the Extraordinary General Meeting. It was for the shareholders to make the decision, but for the directors the die was now cast and there was no going back.

Paul Harris, a former head office accountant of Farmers’ Co-op, told the Taranaki Daily News that he thought the directors now agreed with the restructuring programme but differed on the figures:

We have put forward a financial proposition and we say that $3 million more from shareholders will be adequate. … Obviously if the shareholders decide to contribute $6 million then it would be even better. … If the financial restructuring we propose had been put into place prior to the five months to December 1986, in which the directors advised a net loss of $895,000, there would have been a net profit of $324,000. If the $3million was raised now, the profit next year would be $750,000.

In response directors stated that they had ‘already considered such a move but thought it inappropriate’:

The directors’ recommendation remains unaltered and it is as a result of exhaustive investigations of the options available to the company over the past 18 months. It is the directors’ sincere belief that the proposed move will be in the best interests of the Taranaki community as a whole.

The option raised by Messrs Harris and Lithgow has been previously considered by the directors at length but detailed studies show that even after allowing for the sale of the New Plymouth store, the sum that would have to be raised by shareholders would be at least $6 million.

Assuming this course was adopted the studies showed that at best the company would operate at a break-even situation and therefore no return on the shareholders’ investment could be made. Directors considered it would be inappropriate to ask shareholders for additional monies without reasonable assurance of an adequate return.

Shareholders were well primed and ready for decisive action. Directors and executive management had become increasingly aware over the last ten days of March 1987 that their hold on the destiny of the company was tenuous. An executive meeting comprising: A. G. R. Williams, chairman, P. McC. Blyde, R. L. Bremer, J. A. T. McEldowney, B. D. Veitch, D. C. Evennett (chief executive), T. J. Harrop (company secretary), and Messrs P. E. Bulfin and K. A. Horner of Halliwells, the company solicitors, met in the company’s boardroom to discuss the final details relating to the imminent Extraordinary General Meeting. A full and frank discussion took place on the company’s situation including the possibilities for the coming meeting. Preston Bulfin expressed concern at the likely mood of the meeting, given what had taken place at the unofficial meeting on 20 March at the Athletic Club rooms, ‘The company is wanting to be open with any party with a view to eliminating any query with the figures and the amount of additional equity required.’

He also stated that discussions ‘with the Harris group re-offering them access to the company’s sophisticated modelling system had been rejected’. Concern was also expressed regarding a public announcement by the Harris group of the figure they would accept for the New Plymouth building, with the possibility of the disclosure jeopardising the conditional sale contract currently on the building. There was also discussion on the merits of delaying the meeting to allow the Harris group a week ‘to see how successful they would be in raising, the additional capital’. A number of other points were raised, including meeting procedures.

The past six years had been a long and arduous haul, particularly for chairman Reeve Williams, his deputy Peter Blyde and other long-term directors who had been struggling to hold the company together in some of the most turbulent times in New Zealand’s trading history and as well had sought

expert advice from a number of outside agencies and consultants. They had finally succumbed to the inevitable for this ailing juggernaut. With the weight of baggage on the backs of this particular board, there was little chance of them taking the company past this point.

The final meeting of the board, on Thursday 26 March 1987 was under way. The chief executive reported on the various offers the company had received for unwanted assets and reports were also received from Preston Bulfin in connection with meetings he had had with Elders’ solicitors. With Progressive Enterprises withdrawing from further negotiations relating to the New Plymouth property, apparently a new offer from Messrs Grantham and Dunlop was now in jeopardy as details had been unintentionally leaked by Mr Grantham himself to a newspaper reporter and it was said that, the figure publicly announced by the Harris group of $5 million would ‘substantially injure the company’s ability to sell at the higher figure already agreed’. Agreement had been reached on the Inglewood property at the book value of $60,000. An offer of $80,000 for the Stratford garage had also been received. The manageress of the Ohura branch had made an offer to purchase the business and at Waitara, an offer of $250,000 has been received for the building. The Pungarehu manager was showing interest and at Kaupokonui an offer of $10,000 had been received from a group of car wreckers. At Eltham, an offer of $45,000 for the land and buildings had been received and at Hawera a conditional offer of $400,000 had been received. Other matters and properties under consideration were:

Hawera Garage. A $150,000 offer has been received from Moller Johnson.

FCOS Finance Ltd. The party interested in this purchase has now withdrawn, not being able to raise the finance required.

Banks. The Chairman, Deputy Chairman and Chief Executive visited with the Banks, who are supportive of the Section 205 arrangement.

Section 205 — With all the adverse comments and bad publicity the company is now facing a very severe liquidity crisis. Debtors are not paying their accounts, preferring to wait until after the meeting of the 30th, and creditors are squeezing the company and stopping credit.

Even as Taranaki Farmers lay prostrate awaiting a decision by its shareholders on its future, there was still a reluctance to press debtors to pay outstanding accounts and cash for groceries. It was somewhat ironical, with the subject having been a matter of considerable debate for so many years and resisted on the grounds that shareholders would take their business elsewhere if it was introduced, that a director raised the question relating to ‘groceries for cash’ at this juncture, asking ‘whether groceries should be put onto a cash-sale basis now, which is the alternative group’s idea’. The chief executive responded by saying that it was ‘definitely an option and whilst the effect of this has been discussed many times over the years, now would be the time to make the change’. A full discussion took place on the liquidity of the company and events leading up to this Extraordinary General Meeting. Mr Bulfin stated that the company could take a one-page advertisement to explain the position of the company, to be paid for by directors. It was resolved that an advertisement be placed in the Daily News and the Hawera Star at a personal cost to each director of $109.34.

Mr Taylor indicated that the directors can only set out the facts as clearly as possible and take all steps to allow the shareholders to consider them and it would then be in their hands. There was also a problem with the Section 205 documents, but, following advice, despite ‘the slight errors’ it was in order for the documents to be mailed out. The Elders Pastoral Ltd agreement had not been signed. The major bone of contention was the Wanganui debtors.

Land & Buildings $1.2m

Vehicles & Plant $0.2m

Debtors $6.2m

Stock $1.0m $8.6m

Less Credit Balances $2.0m $6.6m

Less Wanganui Debtors $1.2m

Total $5.4m

All eventualities that might arise out of the meeting were considered, with Mr McEldowney making the point ‘that the directors should conduct the meeting with dignity and not get drawn into personal slanging matches’, and asked as to ‘whether the additional $4 million raised would alleviate the company’s position’. Mr Evennett stated that ‘it would in the interest saving alone, but trading losses would still continue.’

Mr Blyde questioned the board’s stance on resignation if the resolutions were not accepted, with Mr Bulfin stating ‘that the board would resign then’. In summing up the meeting Mr Evennett, chief executive, advised that the trading result for the six months to January was showing a loss for that month of $379,000, which was worse than expected. A large proportion of this loss was attributable to the New Plymouth branch as a result of lower gross profit percentages being achieved. The finale to the board meeting was to set the basic procedural details for Monday’s Extraordinary General Meeting. Voting was to take place by way of a poll. A microphone would be placed in the centre of the hall and those wishing to speak from the floor would be requested to use it. It was also resolved that due to Mr Reeve Williams’ poor health he would welcome shareholders and then hand over to Mr Peter Blyde, his deputy, who would outline the events of the past 18 months, the steps the company had taken to rectify the situation, and what was now required of the shareholders. Mr Evennett would then give a detailed report on the company’s financial situation. Mr Bulfin would also provide the legal background of Section 205 of the Companies Act. The question was raised as to the majority required to pass resolutions at the Extraordinary General meeting and Mr K. A. Horner advised that a two-thirds majority was required to pass the resolutions.

No-holds-barred rhetoric from both sides of the contest continued in the press leading up to the meeting. Spokesman Paul Harris, former Farmers’ Co-op head office accountant and internal auditor was leading the charge, attacking the board’s proposal to sell the assets of the company, stating:

If the shareholders vote in favour of the directors’ recommendation, they will be voting in favour of the complete obliteration and liquidation of Farmers’ Co-op. It will disappear off the face of the Taranaki province. … What we are offering is the alternative that with restructuring it will remain intact and trade profitably so long as the company receives the support of its customers, shareholders and staff.

In short, Taranaki Farmers’ proposal to sell off the company’s assets could cost shareholders almost all their $11.2 million equity in the business. The intention of the group headed by Paul Harris was to raise $10.5 million to keep the company operating. It was hoped that this would be implemented by raising an additional $8 million capital from a cash issue of shares and the sale of the New Plymouth complex. A further $1.1 million would come from the release of funds from merchandise stock and $1.4 million from restructuring trading operations and reduction of overdue debtors. This would contribute an annual saving of $2.8 million in interest charges. For a five-month period this would mean a saving $1.18 million, which would overcome the loss of $895,000 shown in the directors’ statement. There was also a feeling of concern and mistrust that management and directors may commit to selling the company’s assets before the Extraordinary General Meeting, fears which were unfounded, as we now know. Mr Harris went on to point out that the group did not have ‘an anti management view, we are simply out to save a company that has made a substantial contribution to the development, prosperity and welfare of Taranaki for the past 73 years.’

The full-page advertisement that appeared in local and provincial newspapers on 27 March 1987 with the caption, ‘Unfortunately NO ALTERNATIVE’, with a ‘Message from the Board of Directors’ setting out the current situation and their view that there was ‘no viable alternative’, and that the sale was in the ‘best interests of Taranaki’ and clearly stating the board’s recommendations to shareholders.

Chief executive Derek Evennett confirmed that he and the board of directors would resign if the Elders deal fell through at the Extraordinary General Meeting on Monday 30 March 1987 and with the knowledge that 450 shareholders had recently rejected the board’s decision to sell to Elders Pastoral Ltd, the strength and opposition was now beginning to weigh heavily in favour of the Harris group.

On Monday morning the late summer sun shone brilliantly on the town of Hawera, but the battle lines were clearly drawn. The day of reckoning had arrived. Survival of the company now depended on the will of the farming fraternity of Taranaki, the people who had put it there in the first place. The entire Hawera Community Centre complex on Albion Street had been booked, with public address systems linking the main hall, theatre and other ancillary rooms. Unfortunately chairman Reeve Williams, who had been in failing health for some time, had been admitted to hospital the day before the meeting and was unable to attend as planned. Throughout his entire tenure as chairman he had made a huge personal contribution to the company and at this most critical time his absence was deeply regretted. Despite health problems he had gallantly agreed to continue as chairman throughout this difficult period. Peter Blyde, his deputy, who had provided the board with his unconditional support throughout what had been testing years, agreed to chair the meeting in the chairman’s absence. The incumbent directors had undoubtedly given their best efforts throughout the past decade to extricate their beloved company from its predicament, but without success. This day represented a painful experience for everyone connected with the organisation, whether they were shareholders, staff or directors. Looking back on the achievements of the Society and the glorious past, this was an almost unthinkable dilemma, but the directors were firmly of the opinion that there was no other way forward and had finally recommended to the shareholders the sale of the company.

The directors had initially assembled in the Society’s boardroom at the head office, on Regent Street, Hawera at 12 noon for lunch and an informal discussion before moving on to the Hawera Community Centre. The mood of the meeting was quiet, one of resignation. Gossip throughout the farming community grapevine had been relayed to the directorate and the likelihood of the recommendation to sell Elders being heavily rejected was by now almost a foregone conclusion.

As they gathered together, possibly for the last time, there was a feeling of inevitability about the outcome. As they waited, Peter Blyde recalls a comment from a fellow director who captured the significance of the situation with the words:

This is the last supper Peter!

FORTY

Divine Intervention

Only shareholders of Taranaki Farmers carrying proof of membership or proxy voting papers were admitted on the day. Officers at the door of the Hawera Community Centre checked each person at entry. The queue was 25 metres long an hour before the meeting and finally, after registrations were complete, nearly all of the over 1,200 shareholders, the largest group ever to assemble at a meeting of the company, found a place within the complex to take part in proceedings. The business of the day was:

1. To approve the sale to Elders Pastoral Limited of the Livestock, Wool and Real Estate businesses of the company together with the stores at Waverley, Opunake and Inglewood, the Hawera farm supplies store, and farm supplies businesses at Stratford and Waitara.

2. To review the company’s affairs and to approve the plan of action adopted by the Directors of the company, namely the orderly disposal of the company’s assets and paying off of the company’s creditors with the aim of obtaining a cash surplus to be ultimately available for the benefit of the Shareholders.

Note: Proxy votes must be deposited at the registered office of the company not less than 48 hours before the time for the holding of the Extraordinary General Meeting.

Directors and executive management attending the meeting were:

Messrs P. McC. Blyde, I. D. Adamson, P. E. Bulfin, R. L. Bremer, R. A. Death, J. A. Halton, T. J. Jamieson, J. P. V. Norman, P. A. Murdoch, J. A. T. McEldowney, D. B. Sarten, B. D. Veitch, D. C. Evennett (Chief Executive), T. J. Harrop (Company Secretary).

There was a mood of restless collective power in the audience as shareholders settled down to listen to deputy chairman Peter Blyde go through the formalities of opening the meeting. His first task was to explain that the chairman Reeve Williams was unable to attend and confined to hospital. The board had resolved that Mr Blyde chair the meeting in his absence. He read the notice convening the meeting and welcomed the large attendance, stating it was pleasing to see so many present who were obviously concerned about the future of the company. He then explained the format the meeting would take:

(a) It is an extraordinary meeting of which due notice has been properly given.

(b) The business to be conducted is special business but is to be dealt with by way of an ordinary resolution. Regrettably there had been a printing error on the voting form and all share holders were asked to amend these forms by crossing out the words ‘special resolution’ and substituting the words ‘special business ordinary resolution’, the requisite majority in each case for the two resolutions to be voted on would therefore be two-thirds.

TO BE SECRETS NOW

(c) The Press have been excluded from the meeting and a statement would be issued afterwards.

(d) The resolutions will be dealt with in the order shown in the Notice convening the meeting.

(e) Once the motion had been moved and seconded any shareholder would be entitled to ask questions or address the meeting. There would be a time limit allowed of approximately three minutes for each speaker or asker of a question, but the Chairman reserved the right in his discretion to allow this limit to be exceeded. A shareholder will be entitled to address the meeting once only but any number of questions may be asked by any one shareholder within reason.

(f) Shareholders speaking from the floor were asked to use the microphone provided and to clearly state their names before speaking.

(g) No business would be accepted for discussion other than that advertised and all speakers and questioners must keep to the particular resolution that is being discussed.

(h) No motion other than those advertised would be accepted by the Chairman except a procedural motion.

Following the deputy chairman’s introduction Mr Barrett of Tututawa stood, objecting to the exclusion of press from the meeting, saying, ‘it was a vital meeting, affecting the company’s future, and those shareholders not able to attend were entitled to be fully informed of events by way of their newspapers.’

Mr Michael Self of Manaia was in full agreement, and it was resolved on a motion of Mr Barrett, seconded by Mr Self, ‘that representative’s of the Press be admitted to the meeting.’

The chairman called for apologies and Mr Blyde extended sympathy to the Williams family and best wishes for Mr Williams’ speedy return to health. In speaking to the directors’ recommendations Mr Blyde stated that the directors wished to outline their reasons for coming to the conclusion to sell the business:

Over the past ten years the company had not generated enough profit and with hindsight it was evident that no dividends should have been paid out. The trading loss resulting for the 1985/86 financial year had been followed by further trading losses each month, and Directors had taken many steps in an effort to keep the Company viable. Sales had been made of unprofitable businesses in the Wanganui area and the company had exited from the motor business. These moves had been made after serious consideration by management, the capital being reinvested in an endeavour to keep the company going. Personnel from Arthur Young Management Services in Wellington had set up a computer model of the company to enable the ongoing position to be closely monitored, and to evaluate the various options available to the company. The base case of the model had proved remarkably accurate in predicting the losses that were going to be incurred. Drastic reductions in stock had been made, debtors had been reduced by up to $6 million, and management views were investigated in an endeavour to further reduce costs. Despite all efforts the Directors had now come to the conclusion that the only option left was the sale of part of the company’s business to Elders’ Pastoral Ltd, and that this would be in the best interests of shareholders and the company as a whole.

The Board had been extremely upset at the suggestion made that all the Directors wished to do was to sell off the company. Directors were of the opinion that the point of no return had been reached and there was no option left other than to sell. They felt that no stone had been left unturned, and that anyone having all the information available would have come to the same conclusion. There were three major reasons why the company has failed: the downturn in trading; high interest rates on borrowings, which are beyond the company’s control; and insufficient equity capital.

The Board had looked at the matter of equity capital to see if the situation could be improved. Management had seriously considered how much extra would be needed to keep the company viable and arrived at a figure of $6 million as an absolute minimum. It was their view that to ask existing shareholders to contribute the equivalent of $1,500 each would not meet with the required success. Although farmers would like to see the company continue, there was a large number of urban shareholders. Livestock accounts number 2,290 of which only 1,000 trade actively, and if those thousand were prepared to inject capital, $6,000 each would be necessary; the Board believed nowhere near that amount would be forthcoming.

Mr Blyde expressed admiration for the efforts of Messrs Richardson, Train and Pedersen. The

matter had been discussed with them and they had agreed with the Directors’ view that the money would not be raised. It had been the Board’s opinion that had shareholders been advised earlier of the company’s position, this would soon have become widespread knowledge and added to financial pressures. At present management was under extreme pressure as to financial affairs.

Mr Blyde complimented Mr Evennett on his endeavours on behalf of the company since his appointment on 1 August 1985. As a qualified accountant with extensive management skills he had worked very hard for the benefit of the shareholders, but circumstances outside the company’s control had circumvented all his efforts to return the company to profitability. Unpopular decisions had to be made but this had always been done with the full support of the board, and directors considered that the company had been well served by Mr Evennett over the past 18 months. He also referred to criticism regarding the level of auditors’ fees charged to the company and explained that the payments included the services of a full-time financial controller and those of Mr Peter Taylor, management consultant for Arthur Young, for professional advice. He said:

The Board wanted the company to continue and sought the best advice available and makes no apologies for employing the services of Arthur Young. In the realisation that raising an additional $6 million capital was an impossibility, Directors looked at a divestment programme. Problems could be foreseen with the Commerce Commission in any deal made with Wrightson’s; Farmlands of Hawke’s Bay had looked at the company but had decided against; Williams & Kettle could not see any benefit in an alliance, so that Elders Pastoral was left as the only prospective purchaser. The Board recommended acceptance of the deal arranged with Elders in the belief that it was the best option for all concerned.

Mr Evennett then addressed the meeting and presented the facts on why the decision to sell to Elders had been made and amplified a number of points made by Mr Blyde, ‘though naturally’ he

Hawera Star press cutting of 31 March 1987.

COURTESY HAWERA STAR

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could ‘not comment on events prior to his joining the company in 1985’. Slides were presented with the relevant financial information. He reminded shareholders that as at 1 August 1985 the total assets of the company amounted to $52 million: shareholder funds were at $14.5 million, liabilities $37.5 million. Shareholder equity was at 27.9 per cent, and Mr Blyde reiterated that this was too low and that an acceptable figure would be 45 per cent, with other independent stock and station firms averaging 50 per cent. ‘This was when a decision was made to reorganise the company by selling off businesses in the Wanganui area which were unprofitable’, it had also exited the motor business which was also unprofitable and reduced staff numbers in an endeavour to save costs.

The presentation was not a pretty picture, with computer projections showing that even if the company raised $6.0 million and brought the loss down to $0.3 million it may be able to survive, but not long term ‘in a breakeven or loss situation’. The proposed sale to Elders would result in a figure of $5.4 million payable to Farmers’ Co-op. Mr Evennett reiterated that the board and management had spent 18 months analysing and closely monitoring the situation. He had not come to the company to sell it up and all had worked together as a team. The directors had been very good to work with and had been receptive to new ideas and ready to face and tackle problems. He claimed that the situation has been outside the board’s control and economic conditions and interest rates had crippled the company, saying: ‘We are all of the opinion that there is no other way out, and sincerely believe that what we are proposing will be the best for the people of Taranaki.’

He appealed to everyone to support the directors’ recommendations. Mr Preston Bulfin also spoke, saying,

he had not come with a glad heart to recommend the sale to Elders and it was not pleasant to come to the meeting today and suggest that those present agree to the winding up, in effect, of their company.

He asked all shareholders to put emotions out of the way and treat the matter on a factual basis. The figures had been clearly set out and they should make decisions on the facts as presented. He commended Messrs Harris and Train and members of the group for their efforts to save the company, but said, ‘the actions were too late and the company too sick. The company is in a very severe crisis and is having trouble in securing supplies of goods.’

It was likely that asset realisation would produce more than the figure shown in Section 205, and the company had already received offers far in excess of realisations on the schedule, which had been written down to what was felt to be realistically obtainable. Mr Bulfin went on to outline that the Company had acquired tax losses of $12 million which could be used for the future benefit of the company. He also underscored what the events would be if the Elders deal did not proceed and the possible outcome. He said: ‘Should the Elders deal not go through, shareholders new funds fall short of the required figure and the New Plymouth property fail to sell, a Receiver or Liquidator would be appointed.’

A number of other procedural matters were discussed, including the belief that if a Receiver was appointed then ‘he would almost certainly sell off as many of the company’s assets as quickly as possible to clear the debt out’, and that shareholders’ equity would further erode the longer the company drags on. Under a Receiver or Liquidator redundancy arrangements for staff would not be as attractive and could not be guaranteed, and the $12 million tax losses would be lost. Some staff would retain employment with the Elders deal. In the matter of directors’ responsibilities, it was pointed out that, when a company is seen to be in the process of becoming insolvent, these responsibilities take on an even greater importance because should insolvency result then directors are personally responsible for the debts. Directors are of the opinion that the additional capital required cannot be raised, especially taking into account that there could be no assurance of a return on it. The Board has not taken the decision lightly in recommending the sale to Elders, and will resign in a body should the recommendation be rejected.

This was followed by the all-important motion. It was moved by the chairman Mr P. Blyde and seconded by Mr P. Bulfin:

That the meeting approve the sale to Elders Pastoral Limited of the Livestock, Wool and Real Estate businesses of the company together with the stores at Waverley, Opunake and Inglewood, the Hawera farm supplies store, and farm supplies businesses at Stratford and Waitara.

Comment was invited from the floor. Paul Harris was first to his feet. He said that the resolution, if approved, would effectively remove the company from the Taranaki province and at least 300 staff members would be out of jobs, with only a limited number of employees being retained by Elders, and that:

Directors have stated that there is no alternative but he and his group believe this is not so and their alternative scheme has been put before shareholders as an option to be considered. It would be possible to negotiate with a Receiver and make arrangements to safeguard unsecured creditors’ credit balances.

Mr Harris then went on to explain the substance of his group’s plan to save the company, initially referring to Sir Ron Trotter’s recent statement on current economic prospects which he said, ‘were looking brighter’. He made reference to a period in the 1920s when Farmers’ Co-op management and directors tightened up control, placed purchases on a cash basis, restructured, and asked shareholders for extra capital. It was the ‘age-old problem of too much credit extended’. He also referred to the difficulties the company was facing paying for livestock when the company itself has not been paid by the purchasers and the loss of confidence in the company and a serious deterioration in staff morale. He reiterated the need for new management and financial restructuring, stating that the plan devised by Roy Lithgow and himself would save the company $2.8 million in a full year based on a cash injection of $3 million from shareholders and the sale of the New Plymouth operations. Contrary to the incumbent directors’ opinion, they believed that all grocery sales should be on a cash basis and that this option would return the company to profitability. He affirmed that they needed the support of everyone concerned.

The New Plymouth sale was an integral part of the plan, and the Lithgow/Harris group had a number of people considering the property. Overdue debtors would be asked to pay all debts and grocery purchases would be placed on a cash basis. Shareholders would be asked to provide $3 million in extra capital, which they were confident would be achieved, representing $500 each from 6,000 shareholders. The group also felt that it was critical the company regained the confidence of creditors, and explained that the additional $3 million would be held in a bank account or solicitor’s trust account, and the issue would be of preference shares and would receive any future dividends and have preferential rights. Non-shareholders had also offered financial assistance to the group. He touched on the fact that the present directors and management had spent considerable time preparing scenarios and reports, and acknowledged that they had given his group all the information requested. He also raised the fact that Farmers’ Co-op’s consultants Arthur Young had received up to $300,000 in the last 12 months in addition to normal audit fees. In so far as the company’s personnel were concerned, he said that the group’s intention was to retain as many staff as possible and they were committed to making the company efficient and profitable. He elaborated on many other points he felt would assist the company’s recovery, finally asking the meeting to vote against the resolution,

not as a form of protest against the present Board, but for the continuance of the company and the benefit of all. Should the present Board resign, the Group had a team of seven members willing to take over immediately and continue until elections can take place at the annual general meeting.

Mr Blyde spoke on some of the points mentioned by Mr Harris and stated:

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That directors had looked at the issue of placing grocery purchases on a cash basis but had decided that such a move would considerably reduce turnover. Mr Harris and Mr Lithgow had requested a meeting with executive and management as there were a few questions they would like answered, and after a brief meeting at which they asked a score or so of questions they left indicating they were satisfied. This could not justifiably be called an in-depth study on which to base their alternative plan.

Other shareholders from the floor rose to speak in opposition to the motion, including Morris Hey who said that he had been a shareholder since 1971. While the paper disclosed that the sale to Elders was fundamental to the realisation of assets, he felt there was nothing orderly about the manner of realisation. He also said that the company’s name change at a cost of up to $1 million had been a waste of company resources, as was the purchase of a new boardroom table at approximately $7,000, when Stratford branch alone could not pay small creditors. He considered the ‘No Alternative’ plea on the back page of the Star Weekender had been poorly placed in view of an FCOS Finance Limited advertisement on the reverse. It was his view that if the resolution was approved, the company would lose control of the saleyards at Waverley and would not be able to prevent Elders immediate entry. He was not happy with the judgement of the present board of directors, but he would be willing to put up extra capital though not while the present administration remained in power. He considered their credibility was on the line and their record abysmal and was ‘not prepared to trust their opinions or judgement’. He rejected the recommendation and opposed the motion. In response Mr Blyde advised Mr Hey that, ‘if he did not trust directors’ judgement then he must certainly oppose the resolution’.

Brian Train of Waverley said that his family had been shareholders for over 50 years and that he was one of the three who had met with directors and management during early January. He reiterated that all information had been frankly and freely given and he and Messrs Richardson and Pedersen had received total co-operation. At that stage they felt that at the least they should to try and save the livestock and farm supplies business, as it was felt that trading losses were coming from the retail sector. However, he explained it had since been established that the wool company was showing a very good profit. With Mr Pederson he had later met with Peter Taylor in Wanganui with a proposal that shareholders could perhaps surrender shares in favour of assets, but was advised that it would not be possible without the surety of $4 million in additional capital. There was scepticism that the group would be able to raise the money in Taranaki, but they considered that the loyalty of Taranaki people to the company had been underestimated. Mr Train then provided a breakdown of the $1.2 million being paid by Elders for the land and buildings at Hawera, Opunake and Waverley, the $360,000 for the woolstore and $488,000 for saleyards, which the group felt was ‘a steal’, along with other aspects relating to the sale they felt were not in their best interests. In summing up his address he said that it was not the group’s intention to stop the Section 205 Scheme of Arrangement being put before a meeting of creditors and members, which required a 75 per cent agreement of each class of creditor and members in order to be put in place and that, ‘shareholders will have to live with the decision made today. With their plan the group cannot promise any pots of gold, but can promise that shareholders will be no worse off.’

Roy Lithgow entered the debate and said that a $4.6 million loss for the 1986 financial year was shown. A $4.9 million reduction in interest charges through selling off assets and an injection of cash capital would have the company trading profitably. Amongst the assets of the company were shares in Farmers Federation, which owned one floor of a building at 57 Willis Street, Wellington, which represented $160,000 of a valuation of $1.1 million, or approximately 16 per cent, and this would go with the Elders sale. He agreed that shareholders’ equity in the company was dangerously low and needed to be doubled, and also that turnover in the first six months of the 1987 financial year was low, but had been increasing. He felt people were very despondent and believed that the only remedy was to fight to rectify the situation. Despite the many actions already taken, the company

was in bad shape. The tax losses available for the future are a very good asset to have. He concluded by saying that, ‘his group had not worked out an alternative scheme of arrangement but obviously there would be a need for a change of Scheme Managers.’

Mr Harvey of Rahotu said he believed the resolution must be rejected. He was not of the opinion that the board had considered all options and stated that shareholders had not been kept fully informed. He felt that the sale to Elders was not acceptable under any terms and that directors had not accounted for the loyalty of the people of Taranaki to the company, and that the projections for the future had been based on particularly bad trading months. He also believed that new shareholders should be approached for support. He personally did not agree with the sale to Elders and asked all present to join him in voting against the resolution. In his view the company would be one that everyone could be proud of in the future.

Mr Veitch then spoke in favour of the resolution, and in relation to the additional $3 million capital required asked, ‘of 8,500 shareholders, how many would be prepared to put money into an investment on which they would probably get no return.’

He questioned whether indeed $3 million extra would be enough and if it could be raised. The company had always been short of capital and had not generated enough profit to improve this situation. The present directors have only the welfare and future of the company at heart. Mr Evennett said directors and management had spent long hours trying to find a solution for the company. Inflation at 19.2 per cent is not mentioned in Messrs Harris and Lithgow’s option. When added to stock debtors and all other costs, the additional $3 million capital would cover only one year’s losses and the company would soon be back at the 1 August 1986 position.

There was much to be said, with a number of other speakers taking the floor to voice concerns. Most were opposed to the motion, though there were a few others who were prepared to stand and support the directors’ recommendations, such as John Pease who concluded his remarks by questioning ‘whether the proposed new directorship would bring more expertise to the job than the present board and believed it sound business to accept the present directors’ recommendations’.

Frank Bourke, long-time advocate for Farmers’ Co-op staff, made an impassioned plea, questioning the auditors’ report and the lack of information provided. He concluded by stating that he felt: ‘The overall effects of the directors’ recommendations would be very bad for all concerned. He would vote against the motion and urged everyone present to do likewise.’

Other speakers voiced opposition to the motion, including Mr Ashton and Mr Allen. Mr Taylor of Arthur Young Management Services, Wellington, said

… he had spoken with a number of people, and had worked with directors over the last year. The Board had had to make some difficult decisions in a period which has been one of the worst in New Zealand farming history. Directors had decided to realise on unprofitable operations and improve the management reporting system in an effort to increase market share, and had set the month of November as the deadline for a decision as to the company’s future if steps taken did not have the desired effect. The overall object of the Board had always been to keep the Farmers’ Co-op as a valid entity. The position of the company was closely monitored and responsible alternative plans were discussed, but eventually, because of increasing trading losses, the decision was made to cash up the business.

Two key issues had been brought out in the alternative presented by the committee for concerned shareholders: an injection of capital by shareholders, and plans for increasing future turnover. Whilst believing that at least $6 million extra would be required, he stated that if people were prepared to support the company to the extent that this meeting apparently indicated, then it may perhaps be possible to have the viable company that was being sought.

The meeting had been in progress for a considerable time and chairman Peter Blyde felt that sufficient time had been allowed for people to express their views and for questions to be asked. He advised that two Justices of the Peace were present and were prepared to act as scrutineers if

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required. It was then resolved on a motion of Mr Frederickson and seconded by Mr Ashton ‘That the poll be taken’. It was earlier resolved on a motion of Mr Death, seconded by Mr Veitch, that Messrs Hugh Cunningham, J.P. and Gordon Hughson, J.P. act as scrutineers for the ballot. Voting was then carried out and voting papers collected for collation and counting. After an interval of approximately one hour the result was announced by scrutineer Hugh Cunningham:

In favour of the motion 1,709 (27.10%)

Against the motion 4,584 (71.87%)

Informal votes (24 papers) representing 85 Total 6,378

Spontaneous applause was heard throughout the community centre. The chairman Peter Blyde rose to inform the meeting that as the motion had been lost so decisively they did not intend to put the second motion. He then thanked the scrutineers for their services and stated that the board of directors and the general manager would resign with immediate effect as a result of the meeting’s decision and that those present would now be required to appoint an interim committee until elections could be held at the next annual general meeting.

One of the toughest days in Peter Blyde’s long and distinguished farming career had thankfully come to an end. Although it could not have been the way he would have wished to depart from the organisation, he did so knowing that shareholders had exercised their democratic right to continue their resolve to save the company. It was a regrettable end to his family’s long association with the company, as he had been on the Farmers’ Co-op board since 1974, and his father Sir Harry Blyde before him. His life in farming circles started at the early age of 18, when named Young Farmer of the Year in 1953. Following a term as Dominion President of YFC from 1957 to 1958, he served as a director on both Lepperton and Moa-nui Dairy Company boards from 1976 until 1992, serving as deputy chairman of Moa-nui Dairy Company from 1981 until 1992 when the amalgamation took place with Kiwi Co-operative Dairies Ltd, where he served on the board until 1994. Other directorates included chairman of Bell Block, Taranaki, Central Districts and National Bobby Calf Pools.

Peter Blyde asked Mr Bulfin to explain the procedure for appointing an interim board. Mr Bulfin thanked shareholders for their confidence in the company and wished it well in the future. He also extended his best wishes to those who would be taking over the responsibility of administering the company. He explained that with the directors resigning with immediate effect, there would be problems if the company was left without officers to take control. The Articles of Association determined that an orderly change-over could take place, and persons could be appointed to fill the casual vacancies resulting from the retirement of the current board of directors. It was understood that shareholders had an alternative group prepared to take on the board’s responsibilities until an election at the next annual general meeting. The chairman then asked that the voting papers be destroyed and requested a motion be put to enable this action to be carried out. It was resolved that the voting forms be destroyed. Mr Blyde then called for names to be put forward to fill the casual vacancies on the board of directors. Mr Holmes of Opunake suggested the following seven persons be appointed:

Mr P. L. Cook, Sheepfarmer of Stratford

Mr P. R. Harris of Hawera, Accountant,

Mr D. J. Harvey a Farmer of Pungarehu,

Mr L. C. Laird of Hawera, an Electrician

Mr R. A. Lithgow, Chartered Accountant of Stratford,

Mr P. R. Pedersen, a Waverley Farmer

Mr Brian Train, a Farmer Waverley.

On the motion of Mr Holmes, seconded by Mr B. Hamerton, it was resolved:

That the seven persons named, namely Messrs Cook, Harris, Harvey, Laird, Lithgow, Pedersen and Train, be appointed as the interim board of directors of the company until elections are held at the annual general meeting later in the year.

The out-going directors, the chief executive, company secretary, and the seven persons named to the interim board then left the meeting to conduct formalities of the change-over. The two groups met face to face for the first and last time in the carpark adjacent to the Hawera Community Centre, where they completed formalities. Those present were:

Messrs P. McC. Blyde, I. D. Adamson, P. E. Bulfin, R. L. Bremer, R. A. Death, J. A. Halton, T. J. Jamieson, J. P. V. Norman, P. A. Murdoch, J. A .T. McEldowney, D. B. Sarten, B. D. Veitch, D. C. Evennett (Chief Executive), T. J. Harrop (Company Secretary), and by invitation: Messrs B. A. Train, P. R. Harris, P. L. Cook, D. J. Harvey, L. C. Laird, R. A. Lithgow, and P. R. Pedersen.

Preston Bulfin explained that the purpose of the meeting was to affect an orderly changeover of directors within the provisions of the Articles of Association of the Company. To this end it was resolved:

Mr Bulfin/ Mr Blyde: That the two vacancies left by the resignations of Messrs Trotter and Kellick be filled by Messrs Harris and Laird respectively

It was further resolved:

Mr Harris/Mr Laird: That the resignations of Messrs Bremer, Halton, Adamson, Death and Williams be accepted and the vacancies so created be filled by Messrs Cook, Harvey, Lithgow, Pedersen and Train respectively, and further that the resignations of Messrs Murdoch, McEldowney, Bulfin, Jamieson, Norman, Veitch, Blyde and Sarten be accepted.

It was also resolved:

Mr Train/Mr Harris: That the resignation of D. C. Evennett be accepted effective from 31 March 1987.

As the Chairman had resigned, the Company Secretary called for nomi nations for the position of Chairman. Mr B. A. Train was nominated.

Mr Pedersen/Mr Lithgow: and there being no other nomination, Mr Train was duly declared Chairman.

The carpark meeting was convened at 5:30pm and closed at 5:37pm. The shareholders had won the day. The new board and chairman returned to the meeting, where Mr Blyde congratulated Mr Train on his election as chairman and wished the new board of directors all the best and said, ‘He would watch with interest the company’s development.’

Before relinquishing the chair he addressed the meeting, saying that the former directors had done their best for the company, and hoped that shareholders would now give the newly elected board every support in the future. It was indeed the end of a day in the life of Peter Blyde and for all involved, regardless of which side they were on, one they would never forget. Although it was a decisive win and clear demonstration of people power and democracy at work, the new team at the top had yet to realise the magnitude of the task ahead and the full extent of the company’s extraordinary circumstances. However, no one was under any illusions and, as time would prove, the new chairman would be one of the most tenacious and tactically innovative personalities in the modern era to head ‘the Co-op that would not die’.

Brian A. Train, chairman 1987–2005 and executive Scheme manager of The Farmers’ Co-operative Organisation Society of New Zealand Limited.

Brian A. Train then took the chair and on behalf of the newly appointed board thanked the meeting for the support received and said they were all pleased to have been given such a clear mandate. ‘I cannot promise a pot of gold at the end of the rainbow. We can only promise to do the utmost to get the company trading profitably again and that will not be easy.’

Personally recognising the time and effort put in by the previous board on behalf of the company, he called for support from shareholders and clients and asked the meeting to acknowledge that contribution by acclamation. It was then moved by Mr Train, and seconded by Mr Cusdin, that all further business be dispensed with and the meeting be closed. A motion by Mr Frank Bourke, seconded by Mr McDowell of New Plymouth that expenses incurred by the shareholders’ committee be reimbursed to them was stymied by Mr Train, who asked that it be tabled for discussion at a future meeting as ‘it was not possible to produce accurate figures for the expenses involved’. A further motion ‘that other business of this meeting be dispensed with’, was resolved. Brian Train then closed the meeting.

Headed by Brian Train, the interim board was now charged with delivering a profitable company back to shareholders. Although he had told them in no uncertain terms that the board could not promise any miracles, it certainly looked as though they would need one, or at the very least some divine intervention. There was no time to lose and the interim directors and the company secretary Trevor Harrop immediately returned to the Farmers’ Co-op boardroom at Regent Street, Hawera. The day had taken its toll and business was restricted to ‘urgent priorities’. Matters requiring immediate attention were:

Reaffirm the support of the banks. Re-motivate staff and company personnel.

Retain customer confidence in the company re wool and livestock sales and payments.

Trevor J. Harrop, B.Com, CA, financial controller/ company secretary of The Farmers’ Cooperative Organisation Society of New Zealand Limited, 1982–2008.

It was decided to withhold any statements relating to the payment of wool and livestock proceeds until after meeting the banks the next day. Although the ANZ Bank could not be contacted, Westpac agreed to discuss the situation at 11:00am. Trevor Harrop was invited to accept the position of acting general manager. Trevor responded, that such an appointment was not in the best interests of the Company at that time. The Company needing a front person well known to the clients, and his appointment would also create another vacancy in a difficult to fill role (Company Secretary and Financial Controller).

Critical to any modicum of success being achieved at this time was that the new board had the indulgence and confidence of a sympathetic, energetic and experienced professional company secretary who would work with them in the revitalized quest to turn the company around. Trevor suggested that a suitable alternative for the position of acting general manager would be Colin Morrison who had wide experience in stock, station and retail merchandising divisions. Trevor Harrop was then asked by Brian Train:

Are you available to carry on as company secretary’. Trevor Harrop said, ‘Mr chairman, I do have my resignation’, and pulled it out of his pocket. He said, ‘I will hold it in the meantime if that’s alright with you’!

Based on officer’s duties and responsibilities under the Companies Act the circumstances that prevailed required the company secretary to present a written resignation. Trevor Harrop also stated that, ‘he would, however, be prepared to assist in any way possible given that it is the shareholders’ wish that the company continue in some form.’

It was also agreed to hold a meeting with the management committee the following day Tuesday 31 March at 9:30am and Trevor Harrop was to contact Messrs Morrison, Western, Pope and

Grenside to attend. Discussion took place in connection with establishing a trust account for wool and livestock payments and it was decided to place the matter with Mr Ken Horner to consider the legal requirements. The meeting closed at 7:00pm

Day one ended and, as Brian Train said, ‘we were punch drunk’. But this was only the beginning of an enormous undertaking. Who was the new chairman Brian Train? He was certainly not a well known Taranaki man, and would even dispute the assertion that he lived in the province of Taranaki with the old Wellington/Taranaki boundary some five miles north of his home town of Waverley. There were people who ‘didn’t think they could trust a man from Waverley’. He is a pragmatic man of few words, tenacious, confident, single minded yet generous, with old-time values and a devilish sense of humour. In the 1880s his great-grandfather had emigrated from Scotland to New Zealand and in the Manawatu he opened retail stores at Feilding and Marton. He purchased a block of 1,500 acres of virgin bush at the top of the Waitotara River. Brian’s father and uncle worked the property until about 1915/1917 when they walked off and came back to Waitotara, with his uncle purchasing land in Hawke’s Bay and his father a sheep farm on Brewer’s Lane. In 1937, C. G. (Clem) Trotter general manager of Farmers’ Co-op provided the family with the opportunity to purchase a farm at Waverley immediately opposite the racecourse and they have been farming this and other property ever since.

Brian Train was 16 years old when his father, Fred, passed away, and a few months later he went to work on a station near the Thames estuary for two and a half years, eventually returning to Waitotara to manage the homestead farm and a 50-acre block of leased land his father had transferred to him just before his death. The Trains had been Farmers’ Co-op shareholders for over 70 years, Brian’s maternal grandfather, Thomas Alexander, and his brother Gavin having the distinction of being founding shareholders in 1914. Although a client for many years, his first close encounter with Farmers’ Co-op was in the spring of 1986, following the sale of 300 dairy heifers at the Hawera sale. Payment for stock was always due within 14 days of the sale, usually on a Thursday, but cheques were not being received until the following Monday. On realising that his Farmers’ Coop farming account with the company began to accrue interest, Brian rang the credit manager, Tom Kilminster, of Farmers’ Co-op and challenged him:

Tom you are charging me interest! I was really offended. He said, ‘Brian, it is now company policy’. I said, ‘Tom, thank you very much, if that’s company rules that’s fine’. I put down the phone and rang Colin Morrison – this was about the October. I said, ‘Colin, you are area manager and you are sending your cheques out late and you are charging me interest on my account’. … He said, ‘Brian, you will have to talk to the accountant about that’. I said to him, ‘if you are charging me interest – you pay interest to me’. With that he put me onto Bob Green. I said to Bob Green that from now on I want interest backdated to the date of each sale for the last three months that you have been paying me on the Monday instead of the Thursday. Colin asked me what rate of interest I wanted. I told him that they were paying 14 per cent or something like that, but ‘all I want is what my bank charges me’.

This particular incident prompted Brian to inquire what was happening within the company. He had heard rumours that a sale to Elders Pastoral Ltd was being considered and had not found this particularly pleasant news. His inside contacts had provided sufficient information to motivate him and few others in the district of Waverley to consider taking up the challenge to fight what would, if it came about, effectively end the existence of Taranaki’s oldest and most revered rural trading operation and, as Brian would say, ‘the rest is history’! In fact, little did he realise that this was just the beginning. The remaining new board members, namely Messrs Cook, Harris, Harvey, Laird, Lithgow and Pedersen, went away from the first board meeting little the wiser as to the magnitude of the situation. Collectively they represented a cross-section of the community, with varying levels of experience and knowledge of the company’s affairs. Peter Cook’s family had been shareholders for at least two generations, operating a dry-stock farm at Huinga, Toko east of Stratford. Paul Harris,

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a highly motivated Chartered Accountant at Hawera, had worked for Farmers’ Co-op in earlier years. Don Harvey was a farmer from Pungarehu, chairman of the Dairy Section of Taranaki branch and a national vice-president of Federated Farmers. Joe Laird was an electrician from Manutahi, and Roy Lithgow a Chartered Accountant at Stratford and former employee of Farmers’ Co-op. Paul Pedersen was a farmer from Waverley, former chairman of the Federated Farmers Wanganui branch and Dominion councillor.

A Pack of Wolves

Silence reigned in the aftermath of the meeting; it seemed to grip not only those at the centre of the occasion but the wider community, shareholders and Farmers’ Co-op staff alike. It was described as like being ‘in the eye of a storm’. Although shareholders had supposedly saved the day and stopped the sale of the company, there was no strategic or master plan and the words ‘easier said than done’, and ‘will they put their money where their mouth is?’, were still ringing in the ears of some discerning attendees. Not all at the Extraordinary General Meeting left feeling that justice had been done, and the ‘regrettable behaviour’ of some attending the meeting was brought into question by the media and letters to the editor:

SIR.—

May I through your column, comment on the meeting last Monday of the FCOS. One question I would like to ask the shareholders present, particularly the farming shareholders, is how many of them deal solely with the company and have done so consistently over the last 10 years?

I know from my experience in my employment that many farmers who dealt solely with the FCOS now spread their buying and selling around other stock firms, particularly over the last five or six years. The atmosphere in the hall prior to the meeting was, to say the least, electric and I wonder how many present have ever been to an annual meeting of the company — not many when the average attendance at annual general meetings is between 80–100.

Really, it was like a pack of wolves waiting to be fed — ten to fifteen per cent being the exception to that last category. I would wonder how many had ever attended a meeting before. When the meeting was open for discussion it was moved and seconded that each speaker would be allowed to speak once for three minutes with the exception of Mr Harris. Two speakers later, demands were made that that was not to be. By rights the chairman could have stuck to the original motion but he allowed it to be changed. I commend Mr Blyde on his chairmanship owing to the ill health of Mr Williams, it certainly was no easy task, not that many will praise him for his authority.

Rumour has it that of all the speakers at the meeting, Mr Bourke was the only regular attendee of annual general meetings and consistently took an interest in the company and always asked questions of interest to other shareholders. Shareholders ask why they were not informed of the position of the company sooner. How many have consistently read their balance sheets and attended annual meetings? Maybe they cannot understand a balance sheet and milking cows and tending stock is their limit.

The best economist in the world could have stood up and spoken at the meeting on Monday and it would not have mattered, as too many people went there with one thought on their minds. I now hope that they have put their money where their mouth is. It will be interesting to see what contributions are received from the so-called voters against the directors’ recommendation.

I commend Mr Bourke disclaiming the reaction of the people present to the reaction they made on

338 TOO OLD TO BE SECRETS NOW

the resignation of the past directors. I certainly was not one of those cheering and clapping rude people and neither were several around me. In conclusion, I commend the past directors of the company for their efforts and also commend the people who had the intelligence to vote for their recommendation — there are obviously very few of us left, with a little bit of common sense and who let our brain tell us what to do, not our emotions.

Small Genuine Shareholder.

Whether for or against, all attending the meeting departed with mixed feelings, but none more so than the directors and chief executive who resigned. The former board had explored every possible avenue, considered and accepted professional advice from experts, yet in the end it was to no avail. They had done their level best and had always had the long-term interests of shareholders, clients and staff to the fore. However, the sweeping philosophical and cultural changes required to move the company forward would never have been delivered by the existing board who carried so much baggage from the past. It required an uninhibited lateral approach, with new people, a completely new modus operandi, to uplift the organisation from the present situation. For the former chairman, directors and chief executive the sale of the company was the only way. In spite of Reeve Williams’ failing health, he had personally given everything of himself during his tenure as chairman to correct the liquidity difficulties he inherited. Although the board refused his request for outside assistance in 1981, they had otherwise provided unequivocal support. On the day, no greater contribution was made than that of deputy chairman Peter Blyde, who with dignity and courage carried out the final wishes of the directors, for whom the recent months had been painful and heartrending, and one that they and others closely associated would never forget.

It was now time for them all to move on. Reeve Williams, although never fully recovering from his illness, returned to his farming operation at Ohangai, and in later years moved to Tauranga with his wife Edna. Peter Blyde continued to sit on a number of boards and returned to farm the family property at Lepperton. The other embattled directors were in the main pleased to put the experience behind them and went back to their occupations and lives in the rural districts and towns where they lived.

Taranaki Farmers was suddenly the topic of conversation throughout the New Zealand farming fraternity. The circumstances were quite extraordinary and of considerable interest to those with rural sector connections. Listening to the National news programme, Chartered Accountant and strategic business adviser David Simpson, from Finance & Advisory Services Ltd, Auckland, heard of the plight of the company. His business was a corporate advisory service, operating essentially in the fields of financial and general management. It had two principals: Mr Alistair L. Hutchinson, B.Com (Hons), A.C.A. who was formerly financial secretary to the Government of Western Samoa and an Alternate Governor of the International Monetary Fund and the Asian Development Bank, with extensive commercial experience in New Zealand, Australia and the Pacific; and Mr David Simpson, MBA, ACA, CMA, also with extensive consultancy experience in the fields of finance and general management in Australia, South East Asia and New Zealand. Apart from being a director of a number of companies David Simpson had been financial controller of Allied Farmers’ Co-op in Auckland and had worked closely, as second in command, to the then managing director the late Stan Pritchard. He had considerable experience in the pastoral industry. David Simpson recalls – it was 1 April 1987:

It was 12:30 in the afternoon and I heard about the Farmers’ Co-op and that the board had resigned and a new board had been appointed. I pricked up my ears because I had had some experience in the industry before, and being a wide awake consultant – if you like – I always sniff around for opportunities and thought – hello, I wonder if they need some help!

Armed with a report from the New Zealand Herald, he obtained the new chairman’s name and address and contacted him early in the morning. Brian Train answered the phone and David Simpson explained he had heard about the difficulties and wondered how they were off for advisers. Brian Train said:

I was still in bed when the phone rang – a voice said ‘my name’s David Simpson, I have just heard about the Farmers’ Co-op. I was a financial controller with Allied Farmers in the Waikato and I could be of assistance to you’. I said, ‘thanks very much, I will think about it’, and left it at that. I’m always a little cautious when people come out of the blue like that.

Brian’s response was cautious but he was curious. David Simpson said he had worked for the original Allied Farmers Ltd in Waikato and Northland as head of finance under the chairmanship of Doug Hazard. The mention of Doug Hazard’s name immediately lowered Brian’s defences. Doug Hazard had an exceptional reputation in the world of finance and in particular as Receiver in the first wave of defaulting companies and of the JBL Group in the 1970s. Brian asked David Simpson to forward a curriculum vitae. At least someone was interested in the company’s predicament and his impression was that he felt that the caller ‘seemed to have some substance’ and although ‘did not know the guy from a bar of soap’, he knew that Doug Hazard had been appointed statutory manager of JBL by Robert Muldoon. His background was indeed impeccable. An Auckland-based Chartered Accountant specialising in receiverships, he commenced his career in Hamilton. Among other projects he was overseer of the merger of Farmers Co-op Auctioneering Co. Ltd, with North Auckland Farmers Co-op Ltd, and became chairman of Allied Farmers Co-op Ltd. During his term as chairman of this company he was also on several other boards such as Northland Dairy Company, Ports of Tauranga Ltd, Odlins Timber Co Ltd, and chairman of Fiji Air, an internal and Pacific regional carrier. The Allied Farmers operation also involved Mr Hazard travelling to the Middle East to oversee the establishment of a meat import company in the region. In the 1960s he was appointed by the Government to the role of Statutory Manager of JBL Group Ltd, one of New Zealand’s first large corporate collapses, and was responsible for recovering a significant portion of investors’ and creditors’ money, which included funds from some overseas countries. His ‘no nonsense’ approach and success in difficult situations had gained him an enviable reputation.

With so much to consider in such a short time no consideration had been given by the new board to involving an outside agency in the financial reconstruction of the company. Just coming to grips with the enormity of the task was currently taking every moment of their time. The provincial and national newspapers ran articles with captions like ‘Farmers ready to fight’, ‘People power saved the day’ and ‘Company’s sale heavily rejected’. The intrepid new directorate was back in the boardroom at 9:30am on Tuesday 31 March. It was going to be a long day. They were now in charge of a company that was in serious financial difficulty, the extent of which was not fully known. Fortunately the previous evening Colin Morrison, manager of the retail division, had forwarded Brian Train a management report showing that losses for February 1987 were $275,000 and they were paying between 20 and 21 per cent interest on $7 million. It was not good news. The company executives who remained, namely Trevor Harrop company secretary, Trevor Pope manager of the finance company, Colin Morrison, retail manager, Mr Western, area manager New Plymouth and Mr Grenside, wool department, Wanganui assembled at head office not knowing what to expect of the day or of each other. They now, however, shared an enormous responsibility. There were many unknown factors, such as staff loyalties and the ability of the new directors. Would senior management and staff support a new and relatively inexperienced regime?

Those present in the boardroom included, B. A. Train, chairman, P. L. Cook, P. R. Harris, D. J. Harvey, L. C. Laird, R. A. Lithgow, P. R. Pederson and T. J. Harrop, company secretary. The first item on the quickly drafted agenda was to appoint a deputy chairman and it was moved by Mr Lithgow

and seconded by Mr Laird that Mr Paul Harris be appointed to this role. The second item was Mr Evennett’s resignation. Mr Harris stated that Mr Evennett’s resignation as chief executive officer and director of subsidiary companies should be accepted. ‘His exit from the company should be tidied up prior to his departure’. It was then resolved ‘that the resignation of Mr Evennett be accepted forthwith’.

Derek Evennett had been appointed two years earlier specifically to introduce restructuring initiatives to correct the seriously deteriorating liquidity problem in the company and was subsequently to bear the brunt of criticism in the aftermath of what had been a period of economic turbulence and a series of poor decisions throughout two decades. He resigned with no planned exit or employment arrangements in place, firmly believing that the recomendation to sell to Elders would receive the approval of shareholders. As we now know, that was not the case and the fallout and controversy did not enhance Derek Evennett’s future employment opportunities. Two months elapsed and he received a telephone call from his former managing director at Fletcher Industries and was asked to assist in restructuring another group of companies. Ten years later to the day, Derek Evennett bought one of the companies, ‘Clearlite’, a wholly New Zealand-owned-andoperated company specialising in bathroomware, furniture and accessories. Although semi-retired, he still owns the company and holds the position of chairman of Clearlite and Athena Bathrooms and resides with his family on the North Shore in Auckland.

Colin Morrison was called into the boardroom and offered the position of acting general manager, which he accepted. His initial immediate reaction was: ‘I am the Acting General Manager – and 18 months ago I was a stock agent – Wow! What a recipe for disaster!’

Colin accepted the position knowing that a significant weight would be placed on his shoulders over the coming months. His ability to adapt had been clearly demonstrated during his long and loyal service with Farmers’ Co-op. He had risen from a subordinate position to that of acting general manager at a time when the company was at its lowest ebb. Having earlier executed one of the most distasteful jobs of his career, involving the redundancy of many of his long-time work mates, he was now able to have a significant positive input to the rejuvenation of the company he so admired. His personal contribution towards Taranaki Farmers’ recovery cannot be understated. It was Colin who brought the two groups from Waverley and Stratford together, as a result of the unforgettable train ride.

The remaining Farmers’ Co-op executives were invited back into the boardroom and advised of Mr Morrison’s appointment and requested to give their ‘full support to Colin in his new role’. With the appointments of Colin Morrison as acting general manager, and Trevor Harrop as company secretary, Brian Train immediately had evidence that the Company’s financials were in good hands: ‘In all fairness – we had all the information by 12 o’clock the next day. We knew we had unsecured and secured creditors of this and that.’

Preston Bulfin and Ken Horner from Halliwells, the company’s solicitors for the past 74 years, were then invited into the meeting to provide directors with ‘a rundown on their responsibilities’. Mr Bulfin explained that if the company was recognised to be insolvent by the directors and they incurred further debts after this fact was known to them, then they became personally liable for those debts. A question was then raised about the definition of the term ‘insolvent’. He stated the opinion that ‘the old board was okay as the company was paying for its debts as they fell due and a Section 205 notice was proceeded with promptly’. This being the case, the directors could not be seen to be negligent and face personal liability. A Scheme of Arrangement proposal had already been drafted and presented to the former board for consideration but would now require considerable alteration and go back to the High Court for amendment, to embody the change in direction, new management and new directors. He went on to explain that the company needed to make every effort to pay for current purchases and continue with the Section 205 Scheme of Arrangement

with its creditors. A suggestion was made that if a Section 218 was served on the company then the hearing could probably be postponed until the court decision was given on the Section 205. The various stages of the section 205 were explained:

Application made to the Court on the commercial sense of the Scheme and to determine the period of notice required.

Each meeting of creditors needs to agree to the scheme by a 75% majority. Once meetings have agreed to the scheme it is returned to the Court for approval, at which time any creditor could object.

Essentially once the amended Scheme of Arrangement had been approved at meetings of each category of creditors and had received the final sanction of the High Court, it would then be binding on all shareholders and creditors, thus protecting the company by preventing creditors and members from winding it up for the duration of the Scheme.

Detailed information provided to the former board relating to the continuing responsibility of directors was now handed out to the new directors, who were advised that: ‘Care was needed by any person making statements on behalf of the company as to its ability to pay, given that no assurance can be given re future guaranteed payments.’

Discussion then took place concerning the merits of establishing a trust fund to cater for the collection of $3 million of capital consisting of redeemable preference shares to existing holders of ordinary shares. Should the figure not be reached, the money would be repaid to the original donors. If the target figure was reached, the prospectus could be issued and the shares taken up. It was agreed that the idea had merit and that the company would not use interest earned for its own purposes prior to the issuing of shares. Other matters were considered at this inaugural meeting of directors that was finally adjourned after over eight hours, at 5:45pm on Tuesday 31 March, and reconvened on Wednesday 1 April 1987 at 1:00pm. Mr Morrison commented that one of the major problems at the time was staff confidence and the supply of product and payment for the goods. He also stated that the split in the livestock and merchandise departments 12 months previously had not worked and a significant improvement would eventuate if they were brought back together. He also alluded to a number of staff members who were on the Elders ‘hit list’ and needed to be reassured about their positions, and that the board may need to consider salaries, improve cars, and ‘drop off poor staff at the other end’. Colin Morrison knew that Elders had been going to contact key staff within the next two days. Salaried reviews normally carried out in January had not been actioned and many had lost relativity with staff on award wages who had received increases in the normal way. A report had also been received from Foodstuffs, who were seriously considering stopping further supplies, and Roy Lithgow had received a communication from Fernz Corporation Ltd stating that they were owed $3.2 million. He had given an undertaking to pay $200,000 that day.

The chairman advised the meeting of his discussion with David Simpson from Finance & Advisory Services Limited, Auckland, and his offer of independent advice on the financial position of the company. The chairman also advised the board that he had held discussions with John Knott of Williams & Kettle Ltd, who stated that ‘in the company’s position it should definitely seek financial advice’. It was agreed that the chairman should have a further discussion with David Simpson. The salaries of the acting general manager and company secretary were set. Credit managers Messrs Bishop, Kilminster and Sefton were invited into the meeting, the directors stating that they were very concerned about the debtors level. The key exercise of the directors over the next few weeks was to collect debt. The fact was that merchandise debtors of $7.3 million was overdue three months or more, this representing 60% ‘and in the livestock ledger some 35% was also overdue three months or more’. There was a need for an all-out onslaught on overdue accounts. Credit managers were asked to prepare reports immediately for the following day with details of how the debt was to be collected and what action was to be taken. The debate regarding the collection of debts became so

TO BE SECRETS NOW

heated that one director suggested that unless amounts were paid within 14 days, names should be published with the amounts owing and then if payment was still not forthcoming, they should be given to a debt-collection agency and that if this was not done he would resign from the board. However, following a full and frank discussion regarding the publication of names, it was felt that the time was not right for this action and it was resolved to review the matter in a fortnight. It was further resolved:

That this resolution be included in a letter to debtors who are overdue 90 days, this note to read – ‘That the policy of keeping confidential the names of particular overdue debtors will be reviewed by the board in a fortnight’.

Committees were appointed from the directorate:

Finance Lithgow & Harris

Fixed Assets Pedersen & Harvey

Staff Laird, Cook & Harris

Discussion took place concerning the benefit of a trust fund to protect clients’ money and whether to appoint a receiver so that the company could continue to trade ‘and raise moneys required and restructure the company’. Company rationalisation was also on the agenda, with a need to shed parts of the operation that were not profitable. Fortunately the previous board and management had made considerable inroads into slimming down the size of the company. Colin Morrison was asked to discuss with branch managers and staff matters regarding rationalisation of the stock department and to set up a report. Following a brief discussion regarding the directors’ stance on charging cash for groceries, it was resolved: ‘That groceries will be on a cash basis as from Monday 6 April 1987.’

A number of other issues relating to improving efficiency were also discussed and the company’s solicitors, Halliwells of Hawera, had now engaged two lawyers, including Messrs A. J. Clark and K. A. Horner, to counsel the new board on a number of important issues. One was the establishment of a trust fund to protect shareholders funds in a new issue of shares, another alterations to the Scheme of Arrangement under section 205 of the Companies Act, as well as the question of the legal liability of directors. The question relating to directors’ responsibilities was of particular concern because it essentially revolved around whether or not the company was insolvent. If it was thought that the company was insolvent then members of the board were laying themselves open to the risk of being personally liable in respect of any debts incurred from the point that they knew this to be so. It was also emphasised that:

In the view of the change of policy brought about by the Extraordinary Meeting of the 30 March and consequent abandonment of the sale to Elders that your secured and larger unsecured creditors at least be kept appraised of your proposals and their development.

Legal opinion was sought from Nicholson Gribbin, barristers and solicitors, Auckland as to the position of the directors should the shareholders and creditors of the company not enter into a Scheme of Arrangement under Section 205 of the Companies Act. In short, the outcome and advice from the legal advisers was that:

The directors of the company have a potential personal liability in the event of the company continuing to trade at a time when it is not able to meet payment on due date to its creditors. The fact that the accounts of some creditors are substantially in arrears is prima facie evidence that the company is unable to meet payment to its creditors.

CHAPTER FORTY-TWO

Words of Wisdom

Forty hours after being appointed to lead the new board, the chairman, Brian Train, made his first statement to the press. It was simple and to the point:

SHOP AT TARANAKI FARMERS AND PAY YOUR ACCOUNTS

The company can only remain in existence if it is able to continue trading. … Clients and shareholders are requested to bring stock and wool forward for sale, to trade with the merchandise outlets and to have confidence in their company. …

It’s very much over to the shareholders and the community now, to support the company and the stores and to pay cash, especially for small purchases.

All the directors and management were now fully engaged and committed to the task, despite the fact that as each day ended the problems increased rather than diminished and Brian Train’s waking hours were completely devoted to dealing with a myriad of infinitesimal to huge problems. Most important for the directors was the time needed to restructure, and keeping the wolf from the door was Brian’s highest priority during the early days. An early surprise was when Messrs Matthews and Wood from Elders Pastoral arrived on the doorstep the day after the 30 March 1987 meeting asking for $1 million of reassigned debt relating to the sale of Farmers’ Co-op’s Manawatu business to Elders when the company retrenched and came back to Taranaki. This became an ongoing issue between the two companies, and would finally be resolved at arbitration in Palmerston North some years down the track. This sum of money was a contingent liability and not a recognised liability and was left for Elders to pursue in any way they thought appropriate.

In the main Brian Train was dealing with problems one by one, head on as they arose. Other directors and management were also thrown into unknown territory when Colin Morrison and Roy Lithgow were summoned to meet the management and board members of Fernz Corporation Ltd on Monday 6 April in Auckland to discuss the $3,200,000 owed to them. It fell to the recently appointed acting general manager and new director to deal with this matter. The actual current financial status of the company was still unknown only four working days into the new regime. Colin described what transpired at the meeting: We were picked up at the airport by a very well dressed gentleman and I asked him what his position was in the company and he said he was the company solicitor. We had a very very tense meeting and I said to them at the end – ‘what you are looking for today is a business plan and I have got to tell you that there isn’t one’! We had only been in the job four days. So I said what the board will do is responsibly ascertain the position of the company, ‘we need 14 days anyway’. I remember the GM of

the day actually shaking hands with me as we left, and he looked me straight in the eye and I had the feeling that they were going to be a little tolerant.

At the meeting Messrs Morrison and Lithgow were asked to provide information relating to the history of the organisation and details of Farmers’ Co-op’s current financial position, Roy Lithgow succinctly recalled, and made reference to, an occasion before the Second World War, ‘when Farmers Fertilizer couldn’t pay for a shipment of manure coming into New Plymouth’ and Farmers’ Co-op, under the management of Clem Trotter, came to the rescue of N. Z. Farmers’ Fertilizer Co. Ltd. The reference was quite innocent but it was hoped that this casual reminder might influence their decision. Despite being received with courtesy, they left without any certainly as to the action Fernz would take and with a general feeling of unease. As agreed, on 8 April a letter outlining the company’s known financial position and restructuring plan was forwarded to Mr P. Riddell, managing director of Fernz Corporation Ltd, including details of immediate initiatives being implemented to correct the position. It concluded:

Accordingly therefore we request that favourable consideration by your company be given to the above in the knowledge that if we do not have your co-operation and assistance The Farmers’ Co-operative Organisation Society of N.Z. Ltd will be effectively placed in a ‘loss of confidence’ situation with its customers that may well cause the immediate collapse of the Company.

As the new board wrestled not only with kick-starting the company, and with no money and unsecured creditors already knocking on the door, it was Brian Train who fielded most of the calls. ‘It was a rough couple of days and no one would believe anything.’ Two directors came to him in his office and expressed the view that the board should now invite David Simpson of Finance & Advisory Services Ltd to Taranaki to appraise the situation and give advice. It was Tuesday 7 April and the sedulous seven had been in the hot seat for one week when David Simpson received a call from Brian Train, who said, ‘could you come down and see us’? David asked ‘when’? Brian replied ‘tomorrow’!

There was no doubt time was of the essence and David Simpson agreed to travel from Auckland to Hawera the following day. If he was going to be involved, it was critical that he establish himself immediately before the board committed to situations that could not be reversed. The board could already be heading in the wrong direction and this seriously ageing and faltering book of business would need some tender loving care without any further misadventure if it was going to survive. David Simpson recalls: ‘There were two chartered accountants on the Board and I think they were favouring going into receivership.’

He had already discussed the matter with Doug Hazard, who had said: ‘I am trying to retire David, but yes I could have an interest. Have a look and see what you think and give me a call.’

These words probably contained more hope for Farmers’ Co-op than any proffered so far. The somewhat fortuitous introduction of Messrs Simpson and Hazard so early in the piece would in fact provide the beleaguered board with one of the most experienced strategic financial management duos in the country. Perhaps ‘divine intervention’ was at play.

What crossed David’s mind immediately was that the farmers were equating receivership with liquidation and he felt that going down the receivership path would impact negatively at a time when confidence was paramount. The general understanding would be that the Co-op was falling over, which would have a significantly negative impact on turnover and would ‘not be a good move tactically’. David Simpson flew to New Plymouth the following day and was met by Colin Morrison, who took him back to Hawera to meet Brian Train and Trevor Harrop. He didn’t have long to evaluate the situation and determine if the company could be rescued. David said:

The thing that came through to me was that this is a very parochial place. The week before the shareholders had voted against the proposal for Elders to take them over and they did that because

they did not want to see their company in foreign hands. So that was a strength from my observation. I felt that if we can get all the locals, the local farmers on side etc, we would get plenty of support from them. That was the thing that gave me encouragement. I also felt that there were too many branches. A few were formed in the earlier days and I think there were a few that were only ten or fifteen kilometres from each other and I felt that we should be able to make some rationalisation there. They had some fairly valuable property – particularly in New Plymouth.

David asked to tour some branches and stores and called at Stratford, Pungerahu, Manaia and Opunake where he looked at invoice and sales books and generally inspected the various premises. He briefly looked at the financials and asked Brian and Trevor some questions. The books ‘were quite good really; some of the records were a bit historic but they generally had quite a good picture of the company’. Having done all he could to evaluate the situation in such a short time, David telephoned Doug Hazard and advised him of his findings. He spoke about the loyalty and general state of the company and said he thought the business could be rescued. He addressed the board in the afternoon, saying: ‘It could be traded out but it was going to take quite a long time – there was no magic wand but some improvements could be made. He didn’t think receivership was a good idea, and probably the best idea would be a Scheme of Arrangement under the old Companies Act – Section 205.’

David Simpson then returned to Auckland to collate the information and draft a preliminary report on the economic climate, strengths and weaknesses of the company, and possible courses of action along with recommendations.

In the meantime a letter outlining the company’s financial situation as at 28 February 1987 was forwarded to Fernz Corporation on 8 April 1987, with a plan from the directors relating to its financial rearrangements. It included:

Livestock Accounts (due for settlement 14 days after purchase)

1 month and more overdue $1.4m

Merchandise Accounts 1 month and more overdue $6.1m Total $7.5m

Financial Rearrangement:

1. Additional equity capital $3.0m

2. Sale of NP Properties (valued at $8.0m) $6.0m

3. Reduction in overdue debtors $1.5m

4. Reduction of merchandise stock $1.5m

5. Sale of 50% interest in Finance Company $1.5m

6. Sale of Surplus Fixed Assets-Property etc. $0.5m 14.0m

Less provision for redundancy payments $1.0m

Net cash injection $13.0m

This $13.0m would be utilised as follows:

1. Repay Term Liabilities $7.5m

2. Repay unsecured creditors $5.4m $13.0m

A meeting convened on Tuesday 14 April welcomed David Simpson and Doug Hazard to the board and introduced them to the directors. Mr Simpson’s report was tabled. A crucial decision was now required, with the meeting going into committee to thrash out the best available option for the company: whether to carry on with a Section 205 Scheme of Arrangement, or receivership to restructure the company. It was finally resolved that the board pursue an amended Section 205

Scheme of Arrangement and, subject to the costs being acceptable, the board instruct Mr D. Simpson, of Finance & Advisory Services Ltd, to produce a plan for restructuring the company. Mr Hazard stated that he would be available to Mr Simpson as ‘a sounding board’, but ‘tough decisions will need to be made in the next few weeks by the directors’. It was also decided that following the review of David Simpson’s plan, Messrs Hazard and Simpson, with management, would visit all branches and properties and it was made clear that the board should not plan any reconstruction without reviewing Mr Simpson’s blueprint. Following receipt of costs from Finance & Advisory Services Ltd, they were employed to complete the restructuring procedure. The Rubicon had been crossed and it now rested with the board to carry out the plan. They also had other turbulent rivers to cross in continuing with the divestment of properties and internal rationalisation of staff which had been initiated by Derek Evennett and the former board.

Within a few days a series of reports from David Simpson showed that he was confident that a successful reconstruction of the company could be carried out ‘given reasonable time’ to allow full repayment to all creditors and in some instances rearrangement of debt on a trading basis that would ultimately result in the company being profitable and viable. The main thrust to facilitate the turnaround was to implement a plan in stages involving the realisation of assets not profitably employed and the closure of obvious unprofitable operations, and trimming down head office overheads. Further stages would involve an analysis of operating departments and actions to either improve profitability or close loss-making operations. Top of the agenda were the operations singled out as unprofitable, the New Plymouth store, and the collection of overdue accounts totalling $7.5m. These quite enormous issues did not, however, over-ride the deep parochial sentiment amongst the directorate when it came to their own districts, which was flushed out when David Simpson presented his first report and schedule of divestments and a plan for reconstruction:

CLOSURES: Waitara Patea Manaia Hardware Ohura or sell to Manageress Eltham/Kaponga – Negotiate with Wrightson/Dalgety to close one or both

New Plymouth

Inglewood Garage Stratford Garage – sell buildings Hawera Garage building – sell building

Tidy up stocks and departments at other stores

Sell all other surplus buildings

Inglewood – close Drapery

Pungarehu – close Drapery

POSITIVE:

Open new Farm Centre at New Plymouth Refocus efforts of merchandise executives

Strengthen Stock Agents

Conduct review of what can be done to improve Hawera operations Stratford – review possible improvements.

All branch managers were briefed on the ‘seriousness of the situation’ and provided with a schedule of debtors pertaining to their area and asked to contact all clients who were in arrears and provide a report on each situation. However, there was a distinct feeling of unease in some quarters of the directorate regarding the possibility of some districts losing their main trading store. There was criticism of the lack of specifics in the report and some directors were concerned about over-

optimistic figures it contained, particularly expectations in regard to the sale of the Patea operation. Joe Laird made particularly strong representations in respect of keeping Patea branch open for a trial period ‘cash only’ for six months. ‘If it does not prove successful the branch should close’. A motion put by Mr Pedersen and seconded by Mr Train, that the Patea branch be closed, aroused a flurry of debate for and against and resulted in an amendment that the Patea branch be drastically restructured: ‘reduce stock by $220,000 and staff by ten to improve profitability and unless it shows a dramatic increase in profit within six months then it be closed’. Mr Simpson expressed his awareness of the support and sentiment, but made the point that Taranaki Farmers had 14 branches in an area where other stock and station operations only had four.

Over the following weeks plans were submitted by employee Gary Edgecombe to make Patea a sub-branch, with all stores except groceries supplied from Hawera. Many letters of support from Patea shareholders, including a petition from farmers in the area, were received by the board, which resulted in a stay of execution for the unprofitable branch. Press reports concerning the possible closure and letters to the editors urgently requesting the directors to ‘release more information’ were now in circulation. Visits by Messrs Hazard and Simpson and a meeting of local Patea shareholders did not entirely convince them that the operation could be turned around into a profitable situation. The meeting at Patea attracted 130 people, ‘who threatened to withdraw their support if the store was closed’. David Simpson described the outcome:

I can remember addressing the meeting and saying that ‘there is not adequate return on investment from Patea branch and our whole modus operandi is to make sure that everything we’ve got earns a return on the investment’. So there were a number of questions asked. The local pharmacist said, ‘what’s an acceptable return on investment’? I had to go into an explanation as to what it was. … I said ‘we will keep it open till Christmas. In December we will look at the results. If you people all support it, and that means along with other business, with your wool – our wool man’s here and he is ready to take your name etc – and if you guys support it we will consider not closing, but if it does not earn an adequate return by December then it will be closed.’ As it turned out … suddenly Patea’s performance improved.

Critical to the initial overall strategy was the acquiescence of creditors, without which nothing could be achieved and the company would collapse. Shareholders had already received a copy of a Scheme of Arrangement from the former board. Meetings planned for disposal of the company’s assets at that time had been adjourned and now, in order to carry out the wishes of the shareholders and save it, there was a need for a moratorium period with all creditors to allow the Company to trade out of its present financial difficulties. To facilitate this, the High Court approved that the adjourned meetings be held at 9:30am on Friday 29 May 1987 at the Community Centre, Hawera, with an amended Scheme of Arrangement that, if approved, would be binding on all shareholders and creditors. The board resolved that Messrs Simpson, Hazard and Train be appointed Scheme managers. As at 31 March 1987 there were 8,494 shareholders, with secured creditors:

A.N.Z. Banking Group (New Zealand) Limited $3,695,458

Westpac Finance Limited and Westpac Securities Limited 8,355,000

F.C.O.S. Finance Limited 1,000,000

F.C.O. Superannuation Limited 240,000

1,500 unsecured trade creditors included:

Fernz Corporation Limited $3,247,955

Mobil Oil (NZ) Limited 430,009

Foodstuffs (Wgtn) Co-op Limited 684,466

East Coast Fertilizer Limited 98,198

Hurricane Wire Products 119,131

NRM Feeds Limited 119,712

Ivon Watkins-Dow Limited 146,331

Elders Pastoral Limited 317,092 $5,162,894

In addition there were 150 unsecured creditors with deposits at call and a further 1,050 clients with credit balances with the company. If approved, a Committee of Creditors and Members would be appointed to assist and advise the Scheme managers, who would be provided with a monthly progress report and would meet every three months.

During the days leading up to the meeting of creditors on 29 May, the company successfully opposed an application in the High Court by Elders Pastoral to place their rejected proposal to purchase Taranaki Farmers stock and station business before shareholders and creditors again. Mr Justice Eichelbaum who presided over the hearing found that he had no jurisdiction to hear the application without the consent of Taranaki Farmers, ‘which was not forthcoming’. He also noted that notices calling for the 29 May meeting had already been sent out and any further notices would cause confusion. Probably and most importantly, however, was that if the Elders proposals were accepted, they would gain preference over other unsecured creditors, which was unacceptable.

Immediately before the meeting strategies were developed by the board and advertisements placed in newspapers to ensure there was a good representation of shareholders in attendance and creditors were also lobbied to gain support for the Scheme of Arrangement. As well steps were taken to prevent opposition company representatives being voted onto the management committee. With all the planning in place, the day arrived and some 600 shareholders and creditors of Farmers’ Coop turned out to vote at the Hawera Community Centre. Brian Train opened the meeting, stating that ‘the company’s trading had lifted in the past few weeks’ and that stock and station sales were proving the loyalty of clients and he ‘was confident that the funds required would be provided’. He also outlined some of the divestments and plans being implemented to streamline operations.

In order for the Scheme to be binding, it must first be agreed to by a majority in number representing three-fourths in value of the members, secured creditors and the three classes of unsecured creditors (trade creditors paid interest, client creditors and other unsecured creditors) as the case may be voting in person or by proxy at separate meetings convened to consider the Scheme.

When the votes were counted, although the majority were in favour of the Scheme of Arrangement, some creditors, including Elders Pastoral, opposed it and the required majority of three fourths of that class could not be met if their votes were allowed. It had already been decided that votes cast in dispute would be challenged in the High Court and in particular the validity of Elders Pastoral Ltd’s and Wrightson’s votes, as it was considered they had a conflict of interest and voted in self-interest and not in the interests of the creditors’ pool in which they cast their vote. Although not entirely unexpected, it was disappointing they were now required to go back to the High Court yet again.

Brian Train recalls a comment made by Elders Pastoral’s lawyer, Paul Heath (who later became a High Court Judge) during the creditors’ meeting, suggesting that Farmers’ Co-op was insolvent, to which he responded, ‘the assets exceeded our liabilities’, knowing that this was in fact only one of the acid tests, the other being the ability of the organization to pay accounts when due!

In a conversation after the meeting Paul Heath said, ‘Brian, if you succeed in turning the Company around I shall be the first to congratulate you’.

The High Court hearing on 24 July 1987 resulted in a reserved decision, with the judgment of Justice Quillian being delivered to the company on 29 July 1987:

For the reasons which I will give as soon as time permits the Scheme of Arrangement considered at the meetings held on 29 May 1987 is sanctioned, and the commencement date referred to in the Scheme is to be the date upon which a sealed copy of this order is delivered to the Registrar of Companies for registration.

CHAPTER FORTY-THREE

Toss for the Lot

Throughout the four months since the Extraordinary General Meeting the directors and the pivotal triumvirate of Scheme managers in waiting – Messrs Hazard, Simpson and Train –had been painstakingly planning measures to rejuvenate the company in the hope that the High Court would bring down a decision in their favour and thereby grant legal status to operate without undue hindrance from creditors. A team of dedicated clerical staff had been contacting shareholders, creditors, organising meetings and dealing with the huge number of restructuring reports being generated to support the management team in the quest to get governance of the company under control. If the decision by the High Court went against them, all these efforts would have been in vain. Brian Train, Trevor Harrop, Colin Morrison and the team were living in hope. It was an enormous relief when, on Friday 31 July 1987, chairman Brian Train was finally able to deliver to the board of directors and Scheme managers news of the receipt of the Court Order approving the Scheme. With debts of approximately $6 million accrued before 1 April 1987 frozen, the Scheme managers could now go about the business of restructuring without creditors bringing actions against the company to recover debt outside the terms of the Scheme of Arrangement.

David Simpson was now asked to enlighten the directors on how the Scheme of Arrangement would impact on them and the Farmers’ Co-op in general in the coming months. He explained that it involved a moratorium period of 12 months during which no action by creditors could be taken against the company, which was now completely in the hands of the Scheme managers, who had a responsibility to report to the Committee of Creditors at least every three months. Should the moratorium period require extension after one year, creditors would be required to meet again and resolve to continue with the Scheme. At this stage the plan was to continue with the realisation of assets and repayment of debt in the attempt to return the company to profit.

Mr Hazard gave credit to the Chairman and the Board for their actions in saving the company. He was fully appreciative of the efforts put in by all concerned over the past four months. He further respected the feelings of Directors in having put a great deal of effort, time and involvement into the company over those months, now having to more or less step aside. Mr Hazard stated that the Board continues to exist for Statutory requirements, to call the Annual General Meeting etc., and will need to be actively involved in the raising of the additional capital.

The Scheme Managers intend to keep the Board fully informed of progress by monthly reporting. They will hold Board meetings at possibly the same time as the Committee of Creditors meetings and Directors were assured that the Scheme managers will not hesitate to call on Board members for assistance when required.

Elaborating further, David Simpson stated that the measure of success would be ‘the speed with which the company could be turned around’ and only then would it be returned to the control of the

directors. Mr Harvey stated that ‘it was also important for the Scheme managers to realise that they could benefit by reports from directors of knowledge gained by them in their ambassadorial role in the field’. Mr Hazard accepted that directors had an important role to play in promoting the company, but they now ‘need to stand to one side to allow the Scheme managers to tackle the problems and manage the company’. Despite the fact that some directors felt disenfranchised after committing themselves to direct the proceedings of Taranaki Farmers in its time of need, it was acknowledged that Messrs Hazard and Simpson’s involvement had undoubtedly provided the expertise and Mr Pedersen congratulated them by saying that ‘without them the company would not have got this far’.

With the Scheme managers meeting every fortnight and the board of directors every three months to familiarise them with the progress made, the management became a tight, no-frills, highly effective executive unit, with no formal minutes of meetings. It soon became clear that every decision relating to management or finance required the approval of Doug Hazard and David Simpson which was then implemented by Brian Train who had overall responsibility for day-today matters pertaining to staff, debtors and running the business.

The time had arrived to implement the ‘Reconstruction Programme’ created by Messrs Simpson and Hazard. This 21-page document covered:

Assets Realisation, New Plymouth property and some other branches.

Profit Improvement Programme.

Staff Salary Reviews – to bring rates of pay in line with competitors.

Proposed Disposition of Funds Realised.

Preliminary Budgets – by the Merchandise and Livestock divisions.

Forward Programme – possible closure of other branches.

Capital Expenditure Control.

Corporate Strategic Planning. Realisation of other Assets.

Sale of the New Plymouth departmental store was now crucial to the overall survival of Taranaki Farmers, with $6.2 million being set as the lowest acceptable price. Without realising the capital investment in this building, nothing else in the reconstruction plan could be achieved and every month the company was losing $300,000. Due to uncertainty in relation to the outcome of the creditors meeting a lack of direction was also being felt around the board table on what course to take. The main hurdle to any finite agreement had been the outcome in the High Court, and as this was now a matter of fact, the process could continue unhindered. A sale and purchase deal being negotiated with Messrs Dunlop and Grantham had been withdrawn. However, a number of other parties were now showing interest but the key to making the store ‘more saleable’ was a long-term tenant. General Properties had asked for a 14-day option on the complex and Paul Harris had been in discussion with the Quatro Group, property developers, in conjunction with Fletcher Development, who had a property company concept to deliver to the board. There were two other prospective purchasers showing interest in the New Plymouth business. On 2 June 1987 the board resolved to sell the New Plymouth retail business to Mr Wally Curry, excluding the New Plymouth farm centre and with a 12-year lease of the building. The sale also required that continuing employment be provided for at least 50 members of staff currently employed in the retail store, and settlement and possession date would be 15 June 1987. As well, the company made arrangements to lease back the basement area of the store on a month-by-month basis for the purpose of conducting a farm supplies business. Mr Curry also owned the business operating from what was formerly Farmers’ Co-op’s Londontown departmental store in Wanganui.

With an agreement to purchase the Waitara branch building and a tenant in the New Plymouth departmental store the company could now tender all remaining properties superfluous to requirements. Advertisements were prepared to offer for sale by tender the following buildings:

HAWERA Motor retail garage, Princes Street

HAWERA Storage depot, Scott Street

KAPONGA Three-bedroom house

STRATFORD Motor retail garage, between Broadway and Miranda Street

STRATFORD Residential zone. Vacant section.

ELTHAM Three-bedroom weatherboard house

NEW PLYMOUTH Taranaki Farmers retail and wholesale land and buildings complex, New Plymouth City.

Although expressions of interest in the New Plymouth departmental store premises were increasing daily, one thing or another always caused the deal to fall over. There was finally some traction through an unlikely source. At a social function at his sister’s residence at Linton, speaking with another guest, a real estate agent from Palmerston North, Brian Train said in jest – ‘I have a deal for you. I have a store for sale in New Plymouth!’ As a result of this, a purchaser was introduced to Farmers’ Co-op and the sale was completed with no other bidders in the wings, and with payments to be spread over the following six months. On 2 July the chairman reported that an agreement for the sale and purchase of the store had been signed with a Nelson syndicate for $6 million. This significant event was described by Brian as ‘the saving grace’ of Farmers’ Co-op. One interesting aspect of the sale, never previously disclosed, was when the parties were negotiating the final price, with a $150,000 gap between the two. Brian explained how he resolved the impasse: ‘I offered to meet them halfway, they would not budge. I offered to toss for the lot, being 150K, and they accepted and lost!’

Good luck continued and fortune still favoured the brave when, following unconditional settlement of the New Plymouth building on Thursday 9 July 1987, the sharemarket crashed on 19 October 1987 and the purchasers were required to on-sell to facilitate settlement. A lease had been obtained on the Burgess Fraser building on Molesworth Street to house the New Plymouth Farm Supplies retail outlet, Livestock operation and the Real Estate division. At the same meeting directors were advised that the Ohura store and business had been sold to Mrs Eden and the dwelling and vehicle to Mrs C. Persson. Peter Budden purchased the Waitara branch store to establish a pharmacy/chemist shop. A relocatable building to house a small rural service centre was now situated on the corner of McLean and Grey Streets, Waitara. However, Taranaki Farmers was requested to remove the building in 1988 as it did not comply with Labour Department standards. The last straw in relation to the closure of the Waitara store was ‘the fact that 80% of the turnover was produced by the merch. reps in the field’. The servicing of north Taranaki was now undergoing a major change with the New Plymouth and Waitara buildings sold and strategies for the overall operation in the area were being considered.

In South Taranaki the Manaia branch store was in a dilapidated condition, but spending money on renovations or rebuilding at this time was completely out of the question. Kiwi Co-operative Dairies had purchased a section in the town and were considering establishing a merchandise store to accommodate suppliers. They were concerned that should Taranaki Farmers end up in the hands of Elders Pastoral there would not be a locally owned and operated farm merchandising store servicing the district. Morris Roberts, chairman of Kiwi Co-operative Dairies, communicated his concern to the board of Taranaki Farmers, promising not to establish a Manaia store if they committed to the town by building new premises. This resulted in a group of 19 individuals closely connected to the Taranaki Farmers directorate, including FCOS Finance Limited, and headed by Paul Harris, establishing the Manaia Farm Centre partnership, which built new premises to house the store. They then leased it back to Taranaki Farmers at a cost of $152,000, and ten years later, in 1998, sold it to the Co-op for $227,000.

The Farmers’ Co-op Trust Fund of $3 million established as a holding ground ‘to gauge the support for The Farmers Co-operative Organisation Society of New Zealand Limited’, had

unfortunately not reached its target, with contributions, including interest, only totalling $462,088 by September 1987. Acquiring additional funds was imperative to the overall reconstruction plan and consequently, with the Scheme of Arrangement now in place, a team comprising Messrs Hobson, Spilman, Clifford and Newland was employed to canvass throughout the districts to encourage shareholders to put their hands into their pockets as they had clearly shown they would. After two weeks and some 60 personal visits the signs were not good; only $1,500 had been raised! The main reason given for the poor result was, ‘the lack of money at this time of the year in the farming community’, and it appeared that the total Trust Fund had little chance of exceeding $500,000. In fact following authority to issue $5 million Redeemable Preference shares where the Trust funds could be employed, only $576,000 was eventually subscribed, well short of the target figure.

During what Brian Train described as the ‘Dark Hours’, he toiled every moment of his waking hours, seven days a week, with a drive and enthusiasm that was infectious. Rank and file staff and all who held executive positions were spellbound by his energy and commitment to the task. There were times when Brian was going home from work when others were arriving. It was an astounding example of dedication. As a natural fighter who would not accept defeat, there was no doubt that whatever the future held Brian Train would be the last man standing. With significant progress having been made during a very short period, it was now important that momentum was maintained and efforts focused on improving profit and planning the long-term goals of the company.

Roydon I. Day, general manager of The Farmers’ Co-operative Organisation Society of New Zealand Limited, 1987–90.

It was now time to appoint a general manager to take over from acting general manager Colin Morrison, who had held the fort valiantly. On 27 August 1987 the chairman advised the board that the Scheme managers had appointed Mr Roydon Day as general manager, with duties to commence on 28 September 1987. Mr C. W. Morrison would become deputy general manager. Mr Day had a strong background in the stock and station industry, having graduated from Lincoln College in 1973 with a degree in valuation and farm management. He had later joined the Wrightson Dalgety organisation in Southland and worked in mid Canterbury during the early 1980s, and more recently in the Bay of Plenty for the company. His motivation in moving to the company had been ‘the challenge of playing a leading role in the recovery of Taranaki Farmers’. His first task was to reaffirm that headquarters would continue to be in Hawera as he and his family had moved to the district. He acknowledged the progress that had preceded his appointment and said that, ‘The Company now had a base from which to work and increase its market share and profitability.’

The new general manager acknowledged the continual rural downturn, saying ‘the Company rose and fell with clients’ cash flow’. However, he was optimistic about the future, saying ‘clients of Taranaki Farmers would soon note the team effort among staff and their desire to give the best service and expert knowledge of the products sold’. There was now a glimmer of light at the end of the tunnel but there was a long way to go before they would see daylight through an open window.

Approaching the first annual general meeting called by the new board of directors operating under the Scheme of Arrangement, careful consideration was given to ensuring shareholders were well informed on progress made over the past nine months. There were only seven directors currently serving on the board, with the Articles of Association prescribing a maximum of 15. With two retiring by rotation, there were ten vacancies, which was generally considered too many. Peter Cook commented that the northern part of the province was not well represented on the board and at times there was a struggle to get a quorum. It was resolved to put a Notice of Motion to the annual general meeting setting the directors numbers at nine. The annual general meeting was scheduled for 9 December 1987 at the Hawera Community Centre.

Rising From the Ashes

‘The most volatile period the company had experienced in its 73-year history’, is how chairman Brian Train recalled the previous nine months in his address to 150 Farmers’ Co-op shareholders in the Hawera Community Centre, at the annual general meeting. Although slash-and-burn policies had been introduced, continuing huge losses were being sustained. The consideration of communities and other alliances were still part and parcel of the ‘steady as she goes’ policies implemented by the three Scheme managers and indeed the board who, although now not directly involved in day-today governance of the company, were influential in the divestment of properties and other areas of the operation. A staggering all-up loss of $4,815,000 for the year ended 1 August 1987 showed the continuing fragile financial state of the organisation. However, Mr Train told shareholders:

if prompt and decisive action had not been taken, Taranaki Farmers would have been out of business. Fortunately, because of a small group of shareholders who were prepared to take on the responsibility, which they plainly underestimated, and with the expert guidance of our present professional advisers and above all the dedication and willingness of a considerable number of staff, we believe we can now look to a secure and rewarding future. It will certainly not be easy. It will need a lot of work yet and hard-headed business decisions but the structure is underway and the platform created in which we can grow a sound and profitable future.

It was the switch from many months of loss to profit in each of the past two months that was the basis for such a positive report. Summarising the year throughout the various divisions Mr Train stated that the retail department had had a difficult year, with clients cutting spending and purchasing ‘only essential products’. Although turnover was disappointing, the company had retained customers. The livestock operation ‘could be described as satisfying considering the difficult economic situation facing the rural sector’. Farmers Co-op Wools Ltd had had another good year, the Real Estate business earnings were below budget, and FCOS Finance Company had reported an increase in profit for the year. He also paid tribute to the staff who had worked so hard for the survival of the company. Looking to the future, he said:

… we continue to restructure and stabilise our financial position and continue as Taranaki’s leading rural servicing business. The future is an exciting prospect as we plan our way towards 1990, and seek better ways of utilising our resources of buildings, capital and people to provide sustainable wealth to our clients, shareholders and staff. There is a job of work still to be done, and we need your continued support. I reassure you that your efforts to assist Taranaki Farmers back to an even keel will not be wasted or misplaced.

Mr Roydon Day, general manager, also addressed the meeting and said: Goals had been set and were being achieved, the executive of the Company was strong and dedicated and there were many positive moves being made by the firm, including the opening of their New Plymouth centre and their rural service centre at Manaia.

SECRETS

Messrs Simpson and Hazard, Scheme managers, also attended the meeting, with Mr Hazard full of praise for results attained following the introduction of the Scheme of Arrangement. He could see a bright future for farming in this country despite the present downturn in the industry and spoke of the many changes that had taken place over the past 12 months. Considering the almost insurmountable problems associated with any rescue mission undertaken, the board of directors and shareholders could be well pleased with the end result and in particular the performance of the three Scheme managers Messrs Simpson, Hazard and Train. The company was clearly out of survival mode and now functioning within budgeted constraints, with all current creditors being paid on due date. A key phrase used by Brian Train was ‘cash is king’, and it became firmly etched into the minds of all associated with the recovery of the company whether clients, shareholders, staff or directors. All the directors were re-elected, with Mr Brian Train returned as chairman and Mr Paul Harris again his deputy.

For a company that had throughout its entire history provided credit facilities as a matter of course, it was now quite the reverse, with particular emphasis placed on getting cash payment for goods and services. The dramatic outcome of this change in the mode of operation soon showed significant improvements, enabling a report dated 17 February 1988, to be forwarded to all creditors and members on the progress being achieved by the Scheme managers:

Negotiated and re-arranged secured liabilities:

Was Current Status

ANZ Bank $4,636,000 Repaid Westpac - Overdraft 2,500,000 Limit

- Term Loan 8,355,000 5,000,000 by April 12,991,000 7,500,000 maximum

Substantial reduction to staff numbers with all redundancy costs met.

Some departmental retail operations at branches closed down.

Some branches revitalised and reorganised.

New but modest Farm Centre established at New Plymouth.

Small new operation established at Manaia.

Vehicle fleet replaced under a lease arrangement.

Livestock Division rejuvenated.

Real Estate agents remuneration now related to results. Appointment of Roydon Day, General Manager.

Financial and accounting systems revamped to provide preliminary Profit Reports in the first week of the month.

Accounts for the fiscal year ended 1 August 1987, ‘with all the cupboards cleaned out as it were’, were not nearly as good as originally reported. The net loss of $4.8 million, including approximately $1.2 million of bad and doubtful debt and $0.6 million redundancy payouts, made the basic trading loss for the year approximately $3 million. With much of the reconstruction programme in place by August 1987 the company, for the first time in many years, and to the delight of all concerned began to show an operating profit:

August Loss 91,000

September Loss 160,000

October Loss 37,000

November Profit 5,000

December Profit 64,000

This was a welcome and significant achievement in a relatively short period of time and although the company’s monthly fortunes would doubtless vary considerably, it was hoped that within 1988 the first distribution to creditors could be made. It was accepted that the Scheme managers stewardship

FROM THE ASHES

would not end on 31 July 1988, with an expectation they would seek consent to continue the reconstruction programme for at least a further 12 months. The most satisfactory outcome was that the company ‘was now making money’ and evidently on the road to recovery. Staff numbers, that stood at 395 as at December 1986, were now down to 250. The Scheme managers described the first nine months as ‘pretty rough – rough on everybody and particularly on our very much reduced staff who really worked hard’. Much, however, had been achieved:

ASSET REALISATION SCHEDULE

New Plymouth Property $6,000,000

New Plymouth Business $1,106,303

Waitara Property 250,000

Ohura Property and Business 48,072

Stratford Property 84,000

Sundry Other Property 97,500 Vehicles 227,283

Overall General Stock Reduction 1,177,000 $8,990,155

SCHEDULE OF DEBT REPAYMENT SINCE COMMENCEMENT OF SCHEME

1. SECURED DEBT

ANZ Banking Group** $3,695,000

Westpac Merchant Finance* 3,355,000

FCOS Finance Ltd 100,000

Mortgage – FCOS Superannuation Fund 240,000 $7,390,000

*The balance of $5 million has been converted to Redeemable Preference Shares.

**Partially refinanced with overdraft from Westpac Banking Group.

2. UNSECURED DEBT

(a) Unsecured creditors with balances owing of less than $300 (262 firms) $34,523

(b) Unsecured creditors with balances owing Greater than $300 (482 firms) 10c in $1 496,065 530,588

TOTAL DEBT REPAYMENT TO DATE $7,920,588

The outcome was impressive, and creditors and shareholders could be well pleased with the bottom-line achievements and improved productivity, with trading loses virtually eliminated. Mr Hazard stated that the company had been brought up to a break-even/profit situation but two areas needed to be looked at to improve performance, one being greater profitability by expansion of the business geographically, albeit on a contained basis, as well as looking at other areas for profit improvement. He stated that the resulting profit improvement would not be sufficient to repay the remaining frozen debt within the next 12 months and an alternative would therefore be required. This would effectively move the company into stage two of the restructuring operation when they would be looking for an equity partner to fill the gap. With the Scheme of Arrangement ending on 31 July 1988, consent of the creditors was required for a continuance of the Scheme and the drive was on the encourage as good a representation as possible. If creditors decided not to approve an extension of the 205 Scheme, there was every possibility that Westpac Bank would immediately appoint a receiver and after all ‘the hard slog’ that would be disastrous. The creditors’ meeting scheduled for 14 July 1988 was an outstanding success, with a resolution seeking an extension to

OLD TO BE SECRETS NOW

the Scheme of Arrangement for a further 12 months receiving 100 per cent approval by all classes of creditors, except for one individual who used a disputed claim against the company for voting purposes. This was disallowed by the High Court.

The ability to continue to operate throughout the year in very difficult economic circumstances, coupled with significantly low livestock prices, reduced farming spending and general despondency within rural communities was to the company’s credit. Significant losses had been suffered by Elders Pastoral and the livestock industry in general. To improve the bottom line, merchandise staff had been reduced from 178 to 146, the motor vehicle fleet reduced by 13, livestock agents reduced by three, the Waitara stores closed, hardcore debt reduced and the authorised share capital increased by $5,000,000 preference shares of $1 each, making a total authorised share capital of $15,000,000. All this had a significantly positive impact on the company. It was a question of creating confidence and stealing a march on competitors to find something that was unique to FCOS. On a recent visit to Australia Brian Train had witnessed liveweight selling and saw it as a way to the future for the company. A team comprising Messrs Train and Morrison was sent to Australia from Taranaki Farmers to investigate and witness first hand liveweight selling. In consultation with the Scheme managers a decision was made to be the first in New Zealand in this growing trend and ‘computerised’ Liveweight Scales were placed at the Hawera saleyards. This ground-breaking innovation would take the guesswork out of selling stock and, although not wholly endorsed by traders, the farmers saw a significant advantage. Within three months throughput had increased by 300 per cent.

The year had been one of mixed fortunes and in the annual report the chairman and general manager stated that:

The ‘rising from the ashes’ had occured and a great deal of progress has been made in establishing a solid base to work from. The Section 205 Scheme of Arrangement was stamped by the High Court on 31 July 1987, but it had not, however, prevented substantial losses being incurred in the first few months of the financial year.

We have to report a net Group consolidated loss for the year of $1,568,000. Whilst this is a very substantial improvement over the net loss of $4,815,000 reported last year, we are disappointed at the final result, which is not as good as we had expected. Trading on a current basis has, as we previously advised, been turned around to the extent that we are currently making profits and that fact we are pleased about. However, the significant appreciation of the New Zealand dollar – particularly through the main selling period for our sheep and cattle farmers – had serious affects on our industry, adding to the stresses already created by the economic restructuring of the national economy. This impacted Taranaki Farmers in two ways. Firstly, the second half of the year did not produce the profits we had anticipated (it was close to break-even); secondly, the very difficult environment put a great deal of pressure on clients who were marginal. Last year we believed that we provided adequately for bad and doubtful debts but this has proved to be not so, and we have had to accept further substantial write-offs from the past.

Retail trading continued to hold and in some cases improve market share in what was a depressed and very competitive trading environment during 1988. The livestock division was also performing well, with a reduced but highly motivated team of representatives. Farmers’ Co-op Wools Ltd had also increased its contribution to the Group. Real Estate had suffered due to the lack of confidence in the rural community but the company had developed a strong selling force and, with a significantly reduced staff, the whole operation was now functioning well and moving forward with a sense of purpose. Debtors had increased by 10 per cent during the year, which reflected a similar increase in turnover. It was heartening to see that the increase was predominantly current, showing that the business was good business. The recent appointment of a Registered Farm Management Consultant and Registered Valuer would increase the level of expertise in a variety of areas. FCOS Finance Ltd had also made a valuable contribution to the Group throughout the year. Preference Capital to

RISING FROM THE ASHES

ordinary shareholders raised $576,000 during the year and a further $5 million of Preference Shares issued to Westpac Banking Corporation on 31 March 1988 was providing a significant contribution in reducing debt servicing to a respectable level. Clients now responded to the confident, highly motivated sales force, recognising the benefits of dealing with a company that had strong history and was committed to serving the farming community of Taranaki. Farmers’ Co-op was again carefully expanding operations. To this end a small farm supplies store had been established at the woolstore in Wanganui. An alliance had also been formed with Grant & Gunn for the processing of wool through Farmers Co-op Wools Ltd. It was acknowledged that the Scheme managers had been too optimistic during the year in forecasting a turnaround from a loss of $4.8 million the previous year, but now with the foundations solidly in place, the company was looking toward a bright and successful future – and its 75th Anniversary.

FORTY-FIVE

A Spring in its Step

Two decades of uncertainty within the company made the 75th Diamond Jubilee celebration in 1989 a welcome relief and management and staff were happy to let their hair down and make the most of the opportunity. Celebrations included an Anniversary Ball at the Stratford Community Hall and for older members a luncheon at the Stratford Pioneer Village. Promotions and specials were introduced for clients and competitions between stores and branches were held, including one for the best period costume throughout the two weeks of celebrations. It was a particularly poignant time for some of the former retired staff with 40 years or more service:

Ken Catchpole, Alan Moss, Keith Newland, Jock Callander, Frank Bourke, Bill Ellingham, Fred Preo, H. F. Wooffindin, Dudley Drake, Wally Petrie, Fred Webb, Hugh Woods, George Byars, Brian de Castro, Russell Hammonds, Bob Lynden, Alan Rankin, Pip Slinger, A. Longbottom, B. Cunningham, Charlie Tanner, Len Bint.

It was a milestone in many ways for them and the company. Merchandise manager John Smith was about to retire after spending his entire working life with Farmers’ Co-op. John was typical of many long-serving staff members who had a love affair with the company. His ambition as a 15-year-old was to be a school teacher, but World War II intervened. It was December 1942 and New Zealand was at war:

Our family had moved from Opunake to Hawera, where my father got a job at the Post Office. He started to deal at the Farmers’ Co-op in December 1942, and the joker behind the counter there asked me whether I wanted a job over the Christmas holidays. His name was Eric Gray, and he was the manager of the grocery department. After initially declining, eventually I took him up on his offer.

Young John impressed his peers, because none less than Farmers’ Co-op general manager, C. G. Trotter, approached his parents to explore the possibilities of turning a part-time job into fulltime employment. He became the company’s youngest employee when he started as the junior in the hardware department at Hawera on 3 February 1943.

One of my duties was to sweep the floor – I wasn’t allowed to write out a docket, I always seemed to be unpacking stuff and dusting, and with all of those old shelves, there was a lot of dusting to be done!

He was twice transferred to Patea, and did a stint at Waverley. He worked in the hardware department at Eltham, was twice posted to Inglewood, and replaced an absent staff member at Opunake. The Opunake store had seen better days, but the building had its own particular charm.

You could sit in the office and hear the rats running around inside the walls. They were water rats which came up from the lake. … When a customer wanted to buy a pair of boots, you’d pull them

down from nails which were embedded in the rafters, then check first that they still had their tongues. The rats had a habit of eating the tongues of boots if they could get to them!

In 1963, almost 20 years after he had started with the company, John was appointed branch manager of Kaponga. With a staff of four – an office boy, storeman, hardware salesman and himself – it was hardly an empire, but it was a big step up the corporate ladder. At the suggestion of Tom Molesworth, then district manager based in Stratford, John was posted to the remote King Country settlement of Matiere. The Farmers’ Co-op outpost in Matiere opened on Monday, 3 September 1963. In 1970, John was appointed manager of the Opunake branch. By comparison with Matiere, it was a super-store, with an annual turnover of $550,000. By the time John left the branch that had increased to $1.5 million.

He recalls that Newton King had a store across the road from Farmers’ Co-op, and while they may have been opposition, there was a good relationship between the two companies and an excellent camaraderie between the employees of both firms:

Staff were very friendly with each other. If we ran out of something, we’d rush over to Newton King, and they would do the same with us.

The Opunake branch, with its home appliance, hardware, grocery, china and horticulture divisions, and administration personnel, was a large one, with a staff of 25. John remained there as the man at the helm, for eight years. In June, 1978, he was appointed branch manager at Hawera:

I’m a funny bugger, I suppose – I love work. In Hawera I would go to work at seven o’clock every morning. I’d walk around the shop through each of the departments – hardware, china, home appliance, etc., noting whether something might be moved here or there. Nor was I a five o’clock man. I probably spent too many hours in the Farmers Co-op, but I loved it. It was my company.

Eight years later John accepted an offer to become Farmers’ Co-op merchandising manager. He initially worked from the Hawera office, commuting to New Plymouth when necessary. His role within the company was to change yet again when he accepted the position of acting branch manager for three months and was expected to serve in this capacity as well as company merchandising manager. He retired in April 1989, after a career spanning 46 years and four months, John Smith could take comfort in the fact that he left a company well on the road to recovery and destined to retain its rightful place as one of Taranaki’s leading rural traders. His position of group merchandise manager was filled by Craig Sole another highly motivated and experienced sales manager.

With the corporate plan now firmly in place, a lean committed staff with branches at Hawera, Waverley, Patea, Manaia, Kaponga, Opunake, Stratford, Eltham, New Plymouth, Inglewood, Pungarehu and Wanganui providing a comprehensive service to 8,500 shareholders the Farmers’ Co-op could look forward to being ‘the best stock and station company in New Zealand’. Their efforts were justified and rewarded after only two years when at the 75th annual general meeting they received the news that everyone wanted to hear from the chairman:

It is pleasing to report that the 1988/89 year under review has produced a profit after tax of $929,228 after extraordinary items, this being the first year since 1984 that your company has produced a positive return on shareholder funds.

The company did not, however, let the opportunity pass without recognising the fact that without the use of the $3.8 million of frozen creditors’ funds, free of interest. Without their forbearance they would not have achieved the outstanding result:

To alleviate the burden of frozen creditors having to provide interest-free frozen credit, it is the intention of the Scheme Managers to offer those creditors the opportunity to convert a portion of their debt to preference capital for two and a half years, returning a dividend of 9% per annum payable

on redemption. Indications are that $2m will be converted. To allow this conversion of debt to take place your Directors will be putting forward a special resolution at the Annual General Meeting and seeking the shareholders’ support. The Committee of Creditors and Members has approved a further dividend of $382,000 to frozen creditors, which was paid during the last week of September, reducing that account to $3.458m from an opening balance of $5.1m.

The Scheme of Arrangement was certainly achieving the aims and objectives under the guidance of Doug Hazard, David Simpson with Brian Train continuing his ‘hands on’ role of managing the dayto-day affairs with general manager Roydon Day. Two other directors, Paul Harris and Peter Cook appointed to the Committee of Creditors, were attending Creditor meetings on a three-monthly cycle and were provided with regular updates on the progress of the company. There was, however, growing dissatisfaction within the ranks of the remaining directors, who felt that the communication aspect between Scheme managers and directors had fallen down, and found it embarrassing to hear what was happening within the company from outsiders. One significant decision made by the Scheme managers that gave cause for concern was to move out of grocery sales, by selling individual grocery businesses at each location to either staff or outside interests. Claims were made by Mr Harvey and Mr Pedersen that they had not been kept properly informed, with Mr Laird stating that ‘he had been refused information and wished to know the reason for the refusal and whether the information was now available’. The legal position in relation to directors working alongside a Scheme of Arrangement was provided by the chairman, but it was conceded by Mr Hazard that, ‘with respect, he was not going to ask directors for their views on the day-to-day management

Group Chairman and Management of Farmers’ Co-op, 1989. Standing from left: R. W. Green (accountant), T. J. F Pope (manager FCOS Finance Ltd), D. L. Hazard (Scheme manager), D. A. Simpson (Scheme manager), J. W. Grenside (manager Farmers’ Co-op Wools Ltd) O. A. Mills (Real Estate manager), C. F. Sole (Marketing manager). Seated from left: C. W. Morrison (deputy general manager), B. A. Train (chairman of directors and Scheme manager), R. I. Day (general manager), T. J. Harrop (company secretary).

decisions, whilst still accepting that Scheme managers could keep directors better informed.’

It was felt that directors outside the Scheme of Arrangement management and Committee of Creditors should receive the same information about the progress and initiatives being taken by the Scheme managers. Throughout 1989, with only three meetings called of the full board of directors, the problem relating to lack of communication between the Scheme managers and board continued to irritate some directors and it finally came to a head in November when following an exchange between the parties, Mr Pedersen moved, and it was seconded by Mr Laird, ‘that this board have six meetings per year – every two months’. In speaking to the motion Mr Pedersen stated that the reasons for putting it forward was that Scheme managers run the company, whilst the directors who instigated the Scheme and ensured it was adopted thereby saving the company, had a very limited input. It was felt that directors’ ideas and contributions to the board meetings would more than warrant the cost. Mr Laird also said that information gained from the meetings would be welcomed by the directors, who would like more input to the company. Mr Cook moved an amendment, seconded by Mr Harris, ‘that a board meeting be held after each Committee of Creditors meeting’.

IN

Farmers Co-op 75th Jubilee, Taranaki Farmers Staff 1989. Back row 1 from left: Barney Parsons, Tom Kilminster, Reg Woodfield, Wayne Knowles, Shane Rowe, John Stanford, Herman Kerston. Row 2 from left: Jim Mills, Bill Marfell, Bruce Hicks, Glen Thomson, Craig Sole, Steve Corkill, Michael Shaw, Kayleen Hurley, Trevor Pope. Row 3 from left: Clarry Hunter, Allan Pratt, Ronda Finlinson, Sally Burnett, Pat O’Brien, Lee Dombroski, Betty Luscombe, Rick Brooke, Gary Edgcombe, Brett Greiner, Janine Riley. Row 4 from left: Pat Ryan, Victor Ellen, Mavis Back, Nicky Bryant, Donna Newell, Heather Madgwick, Anne McBride, Sue Garvey, Jean Greiner, Joy Glossop, John Smith, Fiona Divane, Bob Green. Row 5 from left: Janette Barr, Lesley Chittenden, Diane Johnston, Sadie Davis, Frances Parkes, Joan Harding, Pat Mills, Marie Weir, Lou Hurliman. Row 6 from left: Patrea Fowler, Yvonne Hanover, Nora McCutchan, Irene Norgate, Patsy Broughton, Margaret Schuler, Trudi Hurley, Pam Steffenson. Absent: Geoff Gray, Sue Back, Pauline Meuli, Anne Bielawski, Anne Pettett, Joan Browning, Roydon Day, Trevor Harrop, Brian Train.

362 TOO OLD TO BE SECRETS NOW

Mr Hazard agreed that the idea would be appropriate and would enable the board to meet regularly four times a year using the same data presented to the Committee. Following further discussion the amendment was put and carried and the matter resolved. It was, however, clear that under a Scheme of Arrangement, Scheme managers very deliberately displace directors from the management role simply to facilitate an easy passage for decision making. Messrs Hazard and Simpson were indeed experts in their field and absolute autonomy and control was demanded under the Scheme of Arrangement provided. The extent of control was perhaps illustrated in a memorandum to Doug Hazard prior to the 1989 annual general meeting:

It is felt by directors that a cup of tea and sandwiches should be made available after the A.G.M. in view of it being our Jubilee Year. The consent of the Scheme Managers would be appreciated.

A new director, George W. Rogers, was elected to the board of directors, providing representation from the northern districts of the province.

One of the major difficulties still facing the company was the $3.5 million debt to creditors, and board members were asked their ‘perceptions as to the likelihood of equity being raised to cover this’. Suggestions that Kiwi Co-op Dairies could be brought into the picture to raise the additional equity did not find much favour and it was generally felt that it would be difficult to raise the money from existing shareholders given their past track record. It was a matter that would require some consideration over the coming year.

Two notable executive members of the staff terminated service with Farmers’ Co-op at the beginning of 1990. Roydon Day, general manager, had made a considerable contribution to the company during his eventful two years at the top working alongside the Scheme managers. His resignation, ‘for family reasons’, was received with regret. The company was now trading profitably and efficiently and the Scheme managers decided not to rush the appointment of a successor, with the existing staff capable of ‘holding the fort until the right appointee is found’. They believed that bringing in a new component at this stage of the company’s recovery could be counter productive and they were now looking for a general manager ‘with some aggression to further develop the company’s expansion’, and who would fit into what was a carefully balanced operation.

Trevor Pope, a personality once met never forgotten, was off to work for the Government in Wellington. He had joined Farmers’ Co-op as an accountant in 1972, based initially at the Wanganui woolstore. He was later appointed head accountant/secretary for the company and managed it through some of the most difficult times, witnessing what he termed ‘the fall of an empire’. Apart from his work as accountant/company secretary his major contribution was setting up a revitalised finance company and introducing computers to Farmers’ Co-op at the time when they were very much in their infancy. As he recalled, ‘one of the biggest problems with the older-generation computers lay in the scarcity of technicians to service them if anything went wrong – and things sometimes did go wrong’.

To fill the gap of general manager Brian Train assumed the role of executive Scheme manager in January 1990, undertaking all the day-to-day duties of the former general manager. Management resource companies were employed to seek a suitable candidate for the job, resulting in two applicants declining the position and three others found unsuitable. The year played out, with Brian continuing in the unenviable position of chairman and executive Scheme manager.

With the ‘winds of change’ came different allegiances, with long-time Farmers’ Co-op solicitors Halliwells no longer the company’s preferred legal advisor. The founding principal, Herbert Halliwell of Halliwell and Sellar, Hawera, had drafted the Articles of Association and arranged the Certificate of Incorporation in 1913 for The Farmers’ Co-operative Organisation Society of New Zealand Limited. While the firm had changed its name on a number of occasions throughout the century, it is best remembered as Halliwells and Horner and Burns and it provided the Farmers’ Co-op

throughout an extraordinary 77 years with expert legal advice and exceptionally loyal service as their solicitors on hundreds of matters relating to company law, litigation and conveyancing. Welsh and McCarthy, Solicitors, Hawera, another well established local firm of lawyers, was appointed to represent the company.

The Farmers’ Co-operative Organisation Society of New Zealand Limited directorate, management and subsidiary companies comprised:

Subsidiary Companies: C. H. Campbell Ltd

Farmers’ Co-op Wools Ltd

F.C.O.S. Finance Ltd

Taranaki Farmers Co-operative Ltd

Taranaki Farmers Livestock Ltd

Taranaki Farmers (Wholesale) Ltd

West Coast Mortgage & Deposit Company Ltd Wanganui Wool Dumpers Ltd

Bankers: Westpac Banking Corporation

Solicitors: Welsh McCarthy & Co., Hawera

Auditors: Ernst & Young, New Plymouth

Directors: B. A. Train (Chairman and Executive Scheme Manager) – Waverley

P. R. Harris (Deputy Chairman) – Hawera

P. L. Cook – Huinga

D. L. Harvey – Pungarehu

L. C. Laird – Manutahi

R. A. Lithgow – Stratford

P. R. Pedersen – Waverley

G. W. Rogers – Bell Block

Secretary: T. J. Harrop

Deputy General Manager & Commissions Manager: C. W. Morrison

Marketing Manager: C. F. Sole Manager Farmers’ Co-op Wools Ltd: J. W. Grenside Manager FCOS Finance Ltd: M. L. Betts

Manager Real Estate: O. A. Mills

Accountant: R. W. Green

Arecord profit of $1,294 million after tax was ‘a commendable result’, according to chairman Brian Train, when he announced the results of the year ending 1 August 1990 at the Athletic Clubrooms at Hawera on Thursday 15 November 1990. The continuing success was particularly satisfying because it embraced a number of initiatives that placed the company firmly on the road to recovery. He praised the efforts of the management and staff and the support of the shareholders and clients and said:

As in the past it has been acknowledged that profits were achieved after having the use of frozen creditors’ funds free of interest. It is very satisfying to report that subsequent to the last Annual General Meeting 58% of the remaining frozen debt was converted to preference capital, returning a cumulative dividend of 9% p.a., and six months of this dividend has been accounted for in the year under review.

The Committee of Creditors and Members has approved the total repayment of frozen debt to all creditors with an opening frozen balance of $500 or less. This has been allowed in accordance with the conditions of the Scheme of Arrangement and reduces the number of creditors by 93 to a total of 399, and accounts for approximately $24,800 of the dividend on frozen debt paid in October 1990. The Committee has also approved the payment of a further 10% of the outstanding balance of frozen debt

OLD TO BE SECRETS NOW

in October 1990, amounting to $343,000. This leaves $3.086 million owing of which $2.040 million has been converted to preference capital.

With an eye on motivation and rewarding staff for their efforts, the Scheme managers introduced an incentive scheme for staff by way of an annual profit-share increment. The original scheme was set up on a divisional basis, so each division’s profit was measured and if it was over budget, the employees in that particular division were rewarded. In theory it was a good idea, but in practice it failed because of lack of control within each division’s particular area of responsibility. In many cases they were not in control of prices or demand and felt the basis of delivery was inappropriate. Some divisions were receiving large bonuses, while others, through no fault of their own, received nothing. Following further investigation a company-wide profit scheme embracing all staff was finally introduced and paid following the annual balance. It was based on paying a predetermined percentage of any profit to staff over that which shareholders were expecting as a return on shareholder funds. Popular roadshows were introduced and presented in Wanganui, Hawera and Inglewood each year to announce details of the staff profit share arrangement and update staff on the year’s results. It also provided an opportunity for divisional managers to speak on their particular area of responsibility and answer questions from personnel. Roadshows became a popular annual event and continued for a number of years until 2007 when they were discontinued.

A further extension was required for the Scheme of Arrangement during 1990, with the first three classes of creditors voting in favour, whilst in the class of unsecured creditors numbering 231, one voted against. It was therefore declared that all classes had voted in favour and the Scheme would continue. Elders Pastoral NZ Ltd continued the battle and voted against renewal of the Scheme and whilst the chairman disallowed the vote on the basis of a judgment handed down from the High Court in July 1987, Elders saw fit to return to the High Court yet again to have that judgment overturned. The action came to nothing and the Scheme continued unabated. No doubt with a feeling of resignation that Taranaki Farmers had finally won the day, it was at this meeting that Paul Heath, counsel for Elders Pastoral, kept the promise he made at the 29 May 1987 meeting by congratulating Brian on returning the company to a profitable situation. This statement of capitulation gave Brian Train considerable satisfaction. A claim against the company by a Mr Illston, heard in September 1989, was also found by written judgment to have no foundation, which removed this contingent liability.

The company was moving forward, with the merchandise division enjoying a 16 per cent increase in sales during the year and once again the livestock division made a major contribution to the profit of the company. With a downturn in overseas economies the wool division was suffering, but whilst throughput by volume was down marginally on the previous year because of conversions to dairying and the dramatic drop in sheep numbers, the drop in baleage was significantly less than the national trend, which indicated an increase in market share. The division produced a worthwhile contribution to the parent company. The finance company had also recorded a successful year at a time when uncertainty in the financial markets saw FCOS Finance Ltd retain its core business and deposit levels. This was attributed to the service provided by the staff and the support of investors.

Stratford FCOS Real Estate celebrated their continuing success with plans well advanced to open a new office with Broadway frontage and an addition to the sales force. Owen Mills, provincial manager, would continue to provide his division of the company with stability and a highly motivated sales team in the years ahead. Other improvements during the year included the relocation of a New Plymouth real estate office combining with FCOS Finance Ltd in new premises at 215 Devon Street East. The company also increased real estate exposure in the Wanganui and Manawatu areas by the appointment of an agent to operate from Palmerston North. The Real Estate division had performed particularly well, achieving a record year with turnover increasing by 55 per cent. This followed a 34 per cent increase on the 1988 year. Staff members continued to maintain high standards of

loyalty and interest in the future of the company despite difficulties through the Scheme of Arrangement years. The 1989/90 year was one to be proud of, the result of a wonderful effort by the entire staff, management and Scheme managers. Management recognised the value of staff training for improving efficiency and customer relations. A number of staff attended retirement seminars during the year. There were more notable milestones achieved: R. F. (Bob) Atkinson of New Plymouth celebrated 40 years’ service, and I. L. (Rene) Norgate and B. N. (Bruce) Hicks, of Hawera and B. (Barry) Sefton of New Plymouth celebrated 25 years’ service.

Elders Pastoral Ltd continued to apply pressure and remained a thorn in the side of Farmers’ Co-op as the Scheme managers wrestled with the challenges of rejuvenating the company. In February 1986 the company had sold its Wanganui–Manawatu operation to that company, including the client account balances. The agreement allowed for those balances to be reassigned if collection of the debts was unable to be accomplished after all reasonable steps had been taken. There was considerable doubt by Farmers’ Co-op that reasonable steps were taken to recover the money. In April 1987 following the shareholders’ meeting which rejected the sale of Farmers’ Coop to Elders, $1.244 million was sought from the newly appointed FCOS directorate for debtors which they wished to reassign. On 26 April 1990, four years after the purchase of the client balances, Elders formally reassigned balances valued at $2,029 million. An arbitration hearing took place during May 1991 and, following interim judgment, a settlement was reached by the two parties. The figure payable to Elders was set at $725,000. The contingent liability referred to in previous accounts was finally extinguished. It had been a long and bitter battle which had thankfully, although at considerable cost, come to a close. The longoutstanding claim was finally settled at a figure of $825,000 inclusive of legal costs and, having written off the whole cost, the company could face the future without looking over its shoulder.

Owen Mills, provincial manager FCOS Real Estate, commenced employment in 1979.

The three Scheme managers Messrs Hazard, Simpson and Train were still firmly in charge, working in concert with a team of dedicated executives. It had been an inspired union with an exceptional range of talents. Doug Hazard provided the intellectual methodology, ably supported by highly experienced and innovative administrator David Simpson. Brian Train’s contribution to the business is almost without peer; he was an inspiration to those who worked alongside him whether in a management capacity or in any other position. Apart from his role as a Scheme manager, he had also continued in the role of executive Scheme manager, undertaking the duties of managing director on a day-to-day basis dealing with every aspect of the operation. His down-to-earth approach was appreciated by his co-workers; he led from the front with a ‘never say die’ attitude. However, it became obvious that the load would need to be lightened and in November 1991 Brian Train announced to the board that effective February 1992 a person, who could not be named due to notification matters relating to his current employers, would take up the position of general manager.

Doug Hazard and David Simpson had approached Barry Whelan, a former general manager of the Waikato-based Allied Farmers Limited on a number of occasions to join them to assist in the reconstruction of Farmers’ Co-op, at Hawera. Until now circumstances had precluded Mr Whelan from accepting the invitation, however in December 1991 he finally agreed to accept the position of general manager on a three-year contract, taking over from Brian Train, on 10 February 1992.

Barry Whelan had a lifetime interest in the rural sector, having been involved with the stock and station industry for more than 40 years. He began his career in the Waikato with Wrightson’s, later joining Arthur Yates agricultural division as marketing manager and then general manager of the rural division, and transferring within Yates Corporation to become general manager of the Waikato Allied Farmers. During the previous two years he had been general manager of New Zealand Rural Press, publishers of the New Zealand Farmer. He joined Farmers’ Co-op at a time when the rural sector was steadily climbing out of the difficult recession and his extensive knowledge of the industry would be invaluable for the company’s continual consolidation, growth and improving financial situation.

Although the grocery division of Farmers’ Co-op had been central to many of the company’s decisions and blamed for contributing to outstanding debts in the past, the time had now arrived when a complete exit was being engineered, with the grocery department at Hawera being closed in the third week of January 1992, along with Stratford and Inglewood. An interested party was looking to franchise the business. The livestock division was reaping the benefits of ‘one of the best growing summers for many years’ with FCOS Finance Ltd recording a record profit of $50,000 for the month compared to a budgeted profit of $25,000. Real Estate was showing a loss of $1,000 against a budgeted loss of $13,000, and the halfyear result of $304,000 profit for the parent company, compared to a loss of $126,000 for the same period the previous year, saw board members congratulating those concerned on the good result. The good returns continued throughout the year, encouraging the Committee of Creditors and Members to approve a $600,000 capital expenditure budget, including deferred maintenance. The refurbished Opunake branch store was opened to the public on 5 November 1992, and at Kaponga an arrangement with Mr and Mrs Hurcomb to lease the front of the shop, with a Farmers’ Co-op farm supplies store continuing to operate from the rear of the building proved very satisfactory.

The profit transferred to Shareholders’ Funds had produced earnings of 49 cents per ordinary share and 25.5 per cent return on average Shareholder Funds. During the year $776,000 was paid in reduction of frozen creditors’ debt, with some creditors electing to take 60 per cent of their outstanding balance in full and final settlement. This resulted in those creditors receiving 80 per cent of their original debt. A further $447,000 was paid to creditors, being the 9 per cent per annum dividend on frozen debt converted to preference capital. In summing up the year chairman Brian Train said:

The substantial lift in profitability of the Taranaki Farmers group over the years under the section 205 scheme of arrangement culminating in the record 1992 profit has clearly laid the foundation for a strong future for us and we are sure we can rely on the continued support of our shareholders as we take up the challenge of the next two to three years.

Frozen debt was now down to $2.1million, including $1.6 million having been converted to Preference Shares. In 1987 there were 497 creditors representing $5.1 million, now the number of creditors stood at 244 representing $2.1 million. The company was now finally able to commence Stage Two of the restructuring and seek equity funds from the market. A general outline had been presented to the Committee of Creditors and Members for approval to proceed. An additional director, George Turner from Eltham, was elected to bring board members to the optimum complement of nine.

Barry F. P. Whelan, general manager of The Farmers’ Co-operative Organisation Society of New Zealand Limited, 1992–95.

White Ants and Mushrooms

Unrest and frustration within a section of the board of directors had been simmering for a number of years due to their diminished role in the administration of the company since their election in 1987. Although it was accepted that the Scheme precluded their involvement, there were continuing issues relating to lack of communication. With victory in sight, the pace had quickened to end the Scheme of Arrangement as quickly as possible. To facilitate this, the company was required to repay all outstanding debt to unsecured creditors. The proposal was to introduce a cornerstone shareholder to provide the necessary funds, which would provide existing shareholders the opportunity to take up 671,000 $1 shares at an issue price of $1.15 on the basis of one new share for every seven shares now held and secondly to approve the issue of 2,828,000 new shares to South Port New Zealand Ltd at an issue price of $1.20 per share.

South Port New Zealand Ltd operated the port of Bluff and had a majority shareholding in both Southland Farmers’ Co-operative Association Limited and Invercargill Wool Dumpers, two agriculturally based companies not unlike Farmers’ Co-op. It happened that Bancorp Merchant Banker, Auckland were communicating with South Port, who like many others at the time had been experiencing difficulties in connection with their subsidiary Southland Farmers and suggested they might like to join with the revitalised Farmers’ Co-op in Taranaki, using the synergies to enhance both companies. The Scheme managers had been looking for a suitable partner for over two years and this particular arrangement appeared to fulfil the criteria.

Various other alternative avenues had been explored by the Scheme managers, including Farmers’ Co-op shareholders supplying capital, which was dumped when only 50 per cent of current shareholders elected to convert their 1987 Preference Capital to Ordinary Shares earlier in the year. Past experience had shown that capital had always been difficult to raise within shareholder ranks. The proposal had been placed before the Committee of Creditors and Members and had received unanimous support and now the final requirement was an endorsement by FCOS directors that would allow the creditors and members to vote on the proposal at a Special General Meeting on 23 June 1993. The background and details were fully explained by Doug Hazard at a meeting of directors at Farmers Co-op’s boardroom on 20 May 1993, accompanied by relevant reports and meeting notices for the board’s consideration. Doug Hazard also outlined other possibilities that had been explored. Kiwi Co-operative Dairies had been approached on numerous occasions but ‘they were arrogantly not interested’ and New Zealand Co-op Dairies had been approached, ‘but were interested only in a takeover to promote dairy company politics’. Williams & Kettle were also ‘quietly canvassed’, but had ‘their own listed float on the burner’, and ‘were aggressively expanding and would only be interested in a takeover’. Others canvassed were Sir Ron Brierley and Pyne Gould Corporation, who, ‘while courteous, declined an equity stake but offered to buy the finance company’.

South Port’s involvement with Farmers’ Co-op did not initially receive universal approval, with factions in the deep South and Taranaki questioning the wisdom of this alliance. Questions were raised by some councillors of the Southland Regional Council and had sparked heated local public debate that insufficient information to fully evaluate the state of FCOS and its finances had left them with no option but to oppose the proposal. In Taranaki the news of the deal with South Port was received by Farmers’ Co-op director Don Harvey from Pungarehu with dismay and he immediately went on the offensive with a statement to the press indicating that he opposed the proposed sale to South Port New Zealand Limited, doubting whether current shareholders would retain control of Taranaki’s independent stock and station company.

Two other directors, Waverley’s Paul Pedersen and Manutahi’s Joe Laird, also opposed the sale. Mr Harvey, with Mr Pedersen and Mr Laird, were three of the seven shareholders who had initially fought to prevent Farmers’ Co-op being sold to Elders in 1987. Don Harvey was concerned that if Farmers’ Co-op’s profits went outside the region the ‘customers would not be so loyal and the company would suffer’. He also said that:

Loyalty had been the success of this company to date. Shareholders and Taranaki Farmers customers have been asked, why should they continue with their loyalty in trading when a large proportion of the profits will be going to South Port. … South Port would have control of the company and could unseat a director who did not comply with its thinking.

Messrs Harvey, Pedersen and Laird, supported by another shareholder Ross Richardson, led the charge to lodge an alternative proposal with the board to circumvent the South Port proposal in an attempt to retain the shareholding within Taranaki and stop outside interests obtaining a 34 per cent interest in the company. The initiative was floated by an existing Farmers’ Co-op shareholder Kalimantan Estates Ltd who was prepared to underwrite ‘a one-for-one cash issue to shareholders at $1 a share’, with Kalimantan Estates taking any shares that were not taken up. With editorials and advertisements relating to the two offers the debate between the two parties intensified and the rift widened when a public statement was made by a director supporting the alternative proposal without the permission of the chairman of directors, which breached company policy. South Port New Zealand Ltd managing director Neil Cantrick, Invercargill, came to the aid of Farmers’ Co-op to alleviate the concerns of some Taranaki shareholders by publicly stating that:

South Port already has an interest in the stock and station industry through Southland Farmers’ Cooperative Association, which is operated on an arm’s-length basis. … South Port is well aware of the need to retain farmer loyalty and to service the client base and would be loath to alienate those directly involved, including the staff.

Director Peter Cook supported the proposal, as he felt it would strengthen the company and its share value, saying: ‘South Port is seen as a ‘White Knight’, having invested in this type of operation already.’

Messrs Lithgow and Harris also supported the proposal, with Mr Harris showing some sympathy with the concerns of Messrs Harvey, Pedersen and Laird. Part of the restructuring included bringing the present number of nine directors down to six, to make way for three directors to be nominated by South Port New Zealand Ltd. It was claimed that, ‘it is a campaign to oust the three directors who opposed the proposal’, and that directors who objected to the South Port proposal were being given the ‘mushroom treatment’ and counter claims that the three dissenting directors were trying to ‘white ant’ the entry of South Port by bringing in an alternative scheme to suit their own ends. It became an acrimonious dispute.

Meetings with South Port in Invercargill and a due diligence exercise over a period of four days in Hawera culminated with South Port New Zealand Ltd making an offer. It was felt that for growth, and faced with paying tax and dividends in the future, $4 million was required and that a premium

should be payable by a new partner. Messrs Hazard and Train went to Invercargill to negotiate the deal on the basis that shares to Farmers’ Co-op’s own shareholders would be offered at $1 and South Port at a 20-cent premium. One South Port director objected to paying a premium and said that they would pay only a 19-cent premium. Doug Hazard objected to this last-minute alteration to the agreement and said ‘No, come on Brian, we are going home’. South Port eventually agreed to pay the 20-cent premium on the condition that Farmers’ Co-op paid them 1 cent per share administration fee. An account for the fee, was never received from South Port.

Despite all the lengthy rhetoric and forthright argument it was conceded that if the Extraordinary Meeting on 23 June 1993 rejected the alternative Kalimatan counter offer that would be the end of the matter. On the day more than 600 people attended the six-hour meeting in the Hawera Community Centre to discuss the South Port proposal. Chairman Brian Train explained that,

The share purchase by South Port would see a cash injection of $4 million into Taranaki Farmers, allowing $2 million to be repaid to ‘frozen’ creditors.

He reiterated that Taranaki Farmers would have a much stronger base and that the company was very comfortable with the arrangement. South Port had indicated that they did not intend to increase their shareholding and the control of Taranaki Farmers remained with the shareholders. The Hawera Star reported:

The poll to accept South Port’s offer was carried by a substantial majority, with 2,623 voting in favour of the proposal, 871 against, and 78 informal or invalid votes. About 1,500 proxy votes were received, 1,107 of which favoured the share deal. Approval was given for an issue of 2,828,000 new shares to South Port at an issue price of $1.20 a share.

An amazing journey came to an end on 30 July 1993 following six arduous but highly successful years to the day under the umbrella of the Scheme of Arrangement. The inimitable Doug Hazard, with his associate Scheme managers David Simpson and Brian Train, and a determined hard core group of executives, managers, loyal staff and shareholders had completed the ‘mission impossible’

Directors and management of Farmers’ Co-op, 1993. Back row from left: Ian Guise, Barry Whelan (general manager), Peter Cook, Neil Cantrick, Roy Lithgow, Trevor Harrop (company secretary). Front row from left: Doug Hazard, Brian Train (chairman), Paul Harris (deputy chairman). Absent: G. W. Rogers, G. C. Turner.

of restructuring the company, repaying all creditors in full and achieving financial stability and an outlook of prosperity. With success came a certain amount of sorrow with the dissolution of a highly focused and dedicated team, many friendships were formed and some lost as the curtain closed on a remarkable period in the company’s history. The triumvirate of scheme managers, although very different personalities, were in fact perfectly matched for the job and were now returning Taranaki’s rural trading jewel, so cleverly and carefully nurtured back to health, to a board of directors which would introduce a new era to the revitalised company. The turnaround under the Scheme of Arrangement ‘appeared to be the most successful ever achieved in New Zealand’, with the loss/profit after the Special Preference Dividend results during the six years from 1987 clearly showing this:

1987 $4,815,000 loss

1988 $1,454,000 loss

1989 919,000 profit

1990 $1,227,000 profit

1991 838,000 profit

1992 $2,312,000 profit

1993 $2,667,000 profit (11 months)

David Simpson’s formal association with Farmers’ Co-op now ended, although the memories and feeling of satisfaction would doubtless remain with him for the rest of his life. This had been one of the most remarkable recoveries in New Zealand’s commercial and corporate history and he had significantly contributed to its highly satisfactory conclusion. With the exception of Brian Train who held the position of chairman, shareholders were requested to elect five directors from the eight incumbent board members available at the October 1993 Annual General Meeting. Those duly elected were Messrs Peter Cook, Paul Harris, Roy Lithgow, George Rogers and George Turner. In addition, part of the equity investment requirement was for South Port New Zealand Ltd to have a representation of three members on the board of directors and those appointed were: Neil Cantrick, managing director of South Port; Ian Guise a director of South Port and Doug Hazard, who had headed the former Scheme of Arrangement. For the first time ever the board had a significant influence from outside the province. Three of the original seven directors who accepted nomination in 1987 to provide the continuity and impetus to facilitate the revival of the company, namely Don Harvey, Joe Laird and Paul Pedersen failed to survive the reorganisation within the directorate. Their courage in accepting nomination to the board in 1987 and initiative and service to the board during the Scheme of Arrangement had been a major contributing factor to the company’s recovery over the past six years.

While the wheels of restructuring were turning in the boardroom, confidence in the dairy sector and investment in sheep and cattle properties had positively affected all divisions of the company, with increased turnover contributing significantly to growth. With a focus on service through the Rural Farm Supply Centres, substantial upgrading of branch store facilities was commenced. Redesign, refurbishment and improved layouts were completed at New Plymouth, Opunake and Kaponga, and following the recent closure of the grocery department at Inglewood, major building construction was underway to provide a modern Farm Supply Centre for the district.

Confidence was growing and the board, shareholders and staff were getting used to the almostforgotten feeling of success. February 1994 saw the closing down of the FCOS Hawera retail store, one of South Taranaki’s iconic retailing outlets, and the introduction of another national retail operation when the premises were leased to the Warehouse for the establishment of Hawera’s first ‘Red Shed’. The farm merchandise premises, on the east side of Princes Street, purchased from New Zealand Loan and Mercantile Agency Company in November 1942, was now Hawera’s only Farmers’ Co-op retail outlet. On 24 June 1994 another record net operating profit was announced of $3,138,000, with a dividend of 6.5 per cent per share, the first paid for almost a decade.

An Extraordinary General Meeting of June 1993 provided for the board to be reduced in number at the 1994 annual general meeting from nine to six, culminating in the resignation of Messrs D. L. Hazard, R. A. Lithgow and G. C. Turner to comply with the Articles of Association. Two of the three retiring directors had made significant personal sacrifices and contributions to the revival of the company during the past seven years. Roy Lithgow, a former employee and now chartered accountant was one of seven directors who had the vision and courage in 1987 to offer his services to help return the company to profitability. Doug Hazard, Scheme manager for six years and director for one year, was without doubt the brains trust who, with David Simpson, spearheaded the company’s restructure and successful recovery.

With the ‘dark hours’ behind them, Brian Train and his board could start thinking about moving forward again and they now considered an opportunity to expand into the King Country. In November 1993 the company purchased a 51 per cent shareholding in Te Kuiti Meat Processors Limited. Doug Hazard’s connections with the meat industry and Brian Train’s excursion into exporting when he supplied mutton to Russia and later exported lamb to the United Kingdom until the early 1980s provided the enthusiasm and impetus to contemplate the initiative. The plant had a licence to kill mutton and lamb to export to major overseas markets, with a capacity of 2,300 head per day. It appeared at the time ‘to be the only processing meat company in New Zealand without any borrowings’, and had withstood the difficulties of over capacity within the meat industry. It was an entrepreneurial and inspired decision which could, if it was successful, provide a good opportunity for vertical integration within the company and place it in a position of creating a ‘plate-to-pasture’ synergy that was a little before its time.

However, within six years only one dividend had been paid to the company from the Te Kuiti operation. The company had been operating as a joint venture with a marketing company who were on a fixed commission that left little, if anything, for shareholders. Consequently, at the suggestion of Brian Train, a decision was made to kill and process bobby calves and export them on the company’s own account. One of New Zealand’s largest and oldest meat processors, Weddel Group collapsed in 1994, with suppliers of stock being caught by surprise. This precipitated the formation of a consortium comprising the majority of the North Island meat processors, who purchased the company’s assets and formed a company called Trial Run Holdings. In 1998 the meat industry was struggling to survive and the bank requested that Te Kuiti Meat Processors have their funding of $1,000,000 guaranteed by the company, the major shareholder. This would have required an Extraordinary General Meeting and the consent of the shareholders. To keep the ownership with the two shareholders Brian Train went in to bat on his own account and raised $1,000,000 against his own land, lending it to Te Kuiti Meat Processors for three years.

Throughout the ensuing years this volatile industry experienced mixed fortunes and in 2001 the annual general meeting ‘Operations Review’ reported on a less-than-satisfactory result from Te Kuiti Meat Processors:

It is disappointing to report that Te Kuiti Meat Processors has not made a satisfactory contribution to the Group. Market returns have not been exploited to their full potential notwithstanding that management have been successful in creating a new and successful outlet in the USA without the assistance of the Company Marketing Agent. Your directors are currently addressing solutions that can be implemented.

With profitability not matching the board’s expectations in December 2001 and the marketing agreement coming up for renewal, a decision was made to sell the company’s 51 per cent stake in Te Kuiti Meat Processors. Following discussions, however, it was resolved that the company would retain the right to kill and export bobby calves. The shareholding was sold in 2002 and the loan to Brian Train repaid. The company maintained its ability to ‘toll process’ bobby calves, which returned

over 50 per cent on the original investment. With hindsight, the wisdom of entering into the meat industry at a time when many were struggling to survive may have been questionable, but the bobbycalf operation continued to be a highly successful adjunct to the original intention and has made a significant contribution to the stock and station division and the company’s profitablility. The company now had a permanent presence in the King Country and this venture is one of its success stories.

Farmers’ Co-op had owned property in Taumaranui during the foray into the eastern back country in 1963 when branches were opened at Matiere and Ohura. It had considered establishing a branch office in the town, but the looming recession had stifled plans and the building on the main street was sold in 1980. With the company now performing well and looking to expand operations, the prospect of obtaining a share of the King Country stock and station business was enticing. Fagan Farmers Ltd agreed to sell three farm supply centres, at Taumaranui, Te Kuiti and Pio Pio. Two Fagan families, John and Cheryl and David and Wendy, well known throughout the world as champion shearers, had established these rural merchandise outlets when Elders Pastoral exited the districts in 1988. The arrangement, ‘walk in walk out’ and the purchase of these going concerns provided an excellent opportunity to protect the company’s northern and eastern boundary, alongside the acquisition of a joint livestock operation with Hiscox Livestock King Country, and entry into the Taumaranui saleyards.

Alan Hiscox’s achievements in the stock and station industry were exceptional. He had begun his career with NMA Co. of New Zealand Ltd in 1972 and, following a series of mergers, resigned

Te Kuiti Meat Processors Limited 1993–2002. Mutton, lamb and toll processing and marketing of bobby calves at Te Kuiti.

from Wrightson’s in 1987 to operate as an independent agent. Following an approach from Brian Train to buy his livestock business outright, it was determined that a 50/50 joint venture would benefit both parties. This provided Allied Farmers Ltd with an instant profile and a clientele and Alan Hiscox with the opportunity to gain access to saleyards and infrastructure of large successful stock and station company and a large share of the business in the Taumaranui district. The King Country operation was one of the highlights of 1995/96, and in a year of declining wool production, the welcome increase in baleage signalled good prospects for the future.

The company was now in fine fettle in 1995 when general manager Barry Whelan came to the end of his three-year contract. Throughout his term, at the request of the board, he had been searching for a suitable successor, but finding highly qualified executives willing to bring their families to live in the small rural town of Hawera had always been a stumbling block and despite casting the net wide, interest was fairly muted. The appointment of his replacement became an issue amongst a number of the senior staff; some, who possibly had their sights set on applying for the position, were unhappy with the selection process, paticularly when it was revealed that the method used was outside the company’s own Corporate Plan. A letter was sent to the directors expressing their views and disappointment. The company Corporate Plan stated that:

it is the company objective to provide career opportunities for all employees to ensure that they had the opportunity to achieve full potential. … By selecting an outsider in preference to the company’s existing experienced, trained, loyal, qualified staff, directors have closed this career path opportunity.

Under the Corporate Plan all vacancies were to be advertised internally. This was not done and therefore existing executives did not have the opportunity to express their interest in applying. Objection was also raised to the secrecy surrounding the method of appointment, which some employees had read of in the newspaper before being informed by the company. But it was too late for protestations, as Barry Whelan’s successor, Mr Peter J. Burt had been appointed general manager late in February 1995. With 29 years experience in the stock and station industry, he joined the group at a time when, despite falling livestock prices and a drop in the provincial dairy payout reflecting a fall of discretionary merchandising purchases, the company was in its fourth consecutive record operating profit, of $3,154.000 for the year ended 30 June 1995.

Peter J. Burt, general manager of Allied Farmers Ltd, 1995–98.

The company’s collapse eight years earlier in 1987 had been accelerated by ambitions to expand into neighbouring provinces. However, the lesson had been learned that tapping into an existing operation is often the key to success, and expansion of the livestock division into the Waikato at a time when others were exiting offered an opportunity that needed careful consideration. Elders Pastoral was in the process of divesting themselves of their King Country, Waikato and Bay of Plenty livestock operations. Colin Morrison, the Farmers’ Co-op’s livestock manager, had expressed his support of the company purchasing the livestock operation in the Waikato, though others felt that the company’s expansion should be to the south. While consideration was being given to the matter, however, Elders Pastoral sold the business to John F. Jones, a dairy-based operation working out of the Waikato. At a meeting in Wanganui between Brian Train and Colin Morrison on the question ‘where to next for the livestock division?’, a discussion on the Wanganui district, Brian happened to ask, ‘What’s going on in the Waikato?’ Colin responded, ‘Well actually you are too late because Elders have just sold to John F. Jones’. According to Colin, Brian said, ‘Well you had better get off your ... and do something about it!’

Although Elders had sold the livestock operation to John F. Jones, no consultation had been entered into with the incumbent livestock agents, and with no contracts signed, eight agents had their sights set elsewhere. An approach had been made by this core group to Wrightson’s, but that company only wanted to hand-pick three agents, which was unacceptable. They then contacted the New Zealand Dairy Company, who showed some interest but finally decided to stay out of the livestock industry. The group of eight were meeting weekly to discuss various options and opportunities. Colin Morrison said:

Allied Farmers, Auckland Province was bought by Yates Corporation and they on sold to Elders. Then Elders then on sold to John F. Jones. I rang one of the people I knew, a livestock agent on the Friday night, … his name was Ric Darwick, and said, I understand that you are going to work for Elders. He said ‘no I am not, Colin. I am not going to work for John F. Jones’. … I said to him, ‘Would you work for Taranaki Farmers.’ He said, ‘Yes – I would’. So I spoke with him again on Saturday morning and Saturday afternoon. Colin Morrison drove to Ric Darwick’s home in the Waikato the following day and met him and the seven other livestock agents who ‘in theory were going to transfer from Elders to Jones’. The outcome was that on the following Wednesday Colin Morrison returned to the Waikato and, at the Te Rapa Tavern, eight livestock agents were hired, with Bill Sweeney appointed as the livestock manager. The icing on the cake was gaining access to the Frankton saleyards. Although the operation would have succeeded without that facility, it could have created difficulties. Bill Sweeney said to Colin Morrison at the outset, ‘if we get into the yards … eventually the Waikato will run 20 agents for Taranaki Farmers’. That was the goal. Fortunately two of their number were auctioneers and with negotiation and the high reputation of the newly recruited livestock personnel, approval of entry by the Frankton Saleyard Committee was finally confirmed, although some competitors fervently opposed their right to use the yards. An approach was then made to an aluminium window company with premises immediately opposite Frankton saleyards to lease space for an office comprising

Taumaranui branch store 1996. Allied Farmers Ltd’s first Taumaranui store, trading as King Country Farmers.

a branch manager’s office, reception area and a room for the livestock agents, was satisfactorily finalised.

So began what is now a highly successful Waikato Farmers livestock operation that at the time of writing this history employs 20 livestock agents and covers an area from Te Kauwhata to Paeroa, across into the Bay of Plenty, and back through Rotorua to Otorohanga. Entry into the Morrinsville saleyards was gained by purchasing a one-sixth share and more recently the Frankton saleyards were purchased and are jointly owned by Allied Farmers Ltd and PGG Wrightson. By 1998 the company had entry into saleyards in the Waikato, the King Country, Taumaranui, Te Kuiti, Pio Pio, Otorohanga, Morrinsville and the Kauroa saleyards at Te Mata near Raglan.

CHAPTER FORTY-SEVEN

The Age of Aquarius

Tediously long to say and a marathon to write are some of the criticisms levelled at the name of this ancient trading company. The Farmers’ Co-operative Organisation Society of New Zealand Limited has been truncated into various abbreviations and acronyms over the past 82 years for promotion and general reference purposes. It has been called, FCOS, the Co-op, Coop, COP and Farmers’ Co-op, but most staff could readily and with a certain amount of pride and confidence recite precisely the full and correct version. It was derived from what was in the early 20th century a standard format for trading enterprises of a co-operative nature. The fact remains that the Society was never a true ‘co-operative’, having been incorporated under the Companies Act 1908, and it included the word ‘co-operative’ in a desire to express the ideals and spirit of cooperation of its earliest guardians. A co-operative company is one established to allow the owners to carry on business on a mutual basis. It is a company incorporated under the Companies Act 1993 that applies for registration under the Co-operative Companies Act 1996 in order to operate as a co-operative. Only a co-operative company may have the word ‘co-operative’ in its name. Consequently with the Farmers’ Co-op company registering a new constitution to comply with the new Companies Act and looking forward to being listed on the New Zealand Stock Exchange, the time had arrived for change and the name that had been known to every Taranaki household was about to disappear into the pages of history forever.

Having rebranded the company in 1986 as Taranaki Farmers, and subsequently in neighbouring provinces King Country Farmers and Waikato Farmers, finding an alternative name was easier than expected. The name Allied Farmers had first been used when Doug Hazard, then chairman of North Auckland Farmers, was instrumental in merging that company with Farmers Auctioneering Company in the Waikato, which then became Allied Farmers Limited. Doug Hazard and David Simpson had been chairman and chief financial officer of the former Auckland-based Allied Farmers Ltd and as both had been pivotal to returning Farmers’ Co-op to a profitable operation it was considered appropriate that they be honoured by using the same name. David Simpson said: I researched the availability of the name because I knew that Elders had taken over the old company. To my surprise I discovered that they had discarded the name Allied Farmers. So as to preserve our anonymity I arranged for an unrelated Chartered Accountant based in Auckland to register a company of that name. This company remained dormant until the time was right to acquire it.

With David Simpson’s foresight in protecting the name, it was available and ready to use. The cover of the annual report proudly displayed:

ALLIED FARMERS LIMITED 1997 ANNUAL REPORT

With a new name, a revised constitution, expansion into the Waikato and King Country, and a

New branch store, Glover Road Hawera. Occupied from 1998–2006.

clean slate with the accumulated 1988 losses of $10.5 million finally extinguished after six years, the company was heading towards the end of the century with confidence; the Age of Aquarius seemed actually to have arrived. Although the 1997 year had produced an increase in market share the company’s final results were disappointing, with a net result after tax profit of only $33,000. But coming out of the woods was never going to be easy and much had been achieved. In 1998 the relocation of the Taranaki Farmers Hawera farm supply store situated in Princes Street for the past 56 years to new ‘spacious and attractive’ premises on Glover Road in February 1998 for $600,000, showed a commitment to the future and was one of the highlights of the year. The Princes Street building, purchased in 1942 from New Zealand Loan and Mercantile Agency Company, had been sold to a consortium to build a twin-screen theatre complex, Cinema 2. The small farm supply store in the Wanganui woolstore was also closed as the operation was considered to be badly situated and small. A corner section adjacent to the Stratford branch on Regan Street, the site of the old Plaza Theatre which had been renovated to include a drapery department downstairs and upstairs offices, then purchased from Kerridge Odeon to enlarge the present store in 1969, was sold to Shell for the construction of a large modern service station.

May 1998 saw yet another general manager depart, when Mr Peter J. Burt was farewelled by the board after spending three years and three months with the company. The chairman said that ‘industry-wise’ they had not been easy years, ‘and expressed appreciation for the effort put in, and wished Peter and his wife, Esme, all the best in their travels and the future’. His replacement, Paul A. Macfie, had 23 years in the agricultural servicing field, including senior management positions in the stock and station, meat, and fertiliser manufacturing industries. With a Bachelor of Agricultural Commerce degree from Lincoln College and as an Associate of the Real Estate Institute he brought a wealth of experience to the role of general manager. He had served four years as a stock agent at Ranfurly in the South Island for Wrightson NMA, moving to Invercargill to the position of finance officer, then to Hastings as finance manager and back to Gore as branch manager. In 1993 he was appointed general manager of Livestock for Fortex in Christchurch and the following year general manager for Southfert at Invercargill. Joining Allied Farmers Ltd in 1998 as general manager he hit the boards running, at a time when the company was well on the road to recovery. His wide experience would have a significant impact on the company during his time at the top.

South Port NZ Ltd chairman Rex Powley commented in the 1999 annual report on his company’s divestment of interests associated with the rural sector, it is with a great deal of satisfaction that we report on the South Port Board and management crystallising a number of significant achievements over the last 3–4 months. First, in early June 1999 shareholders became aware that the way had been cleared for settlement of the Allied Farmers share buy-back by that company. Litigation commenced by a third party had delayed the advancement of this transaction and South Port was pleased to be able to advise that it had successfully defended the court action.

He also reported the sale of South Port’s residual shareholding in Clifton Wool Scour which, ‘reflected the realisation of the final significant non-port asset held by South Port and substantially completed the company’s exit from the rural sector.’

South Port’s decision to focus on its core business and marine resource and sell its shareholding in Allied Farmers Limited necessitated calling a special meeting on 8 February 1999 to obtain consent from shareholders to purchase South Port’s shareholding at $1.65 per share. Under the false apprehension that Allied Farmers did not have the ability to buy back the shareholding, South Port had another buyer, whose name was confidential, in the wings, and this forced Allied Farmers to impose the pre-emptive rights clause in the original agreement to repurchase 2,873,074 shares held by Opawa Investments Limited (a wholly owned subsidiary company of South Port New Zealand Limited). Despite an injunction sought to restrain the company from holding the shareholders’ meeting and a further injunction requiring Allied Farmers to approve a transfer of shares from South Port to the proposed purchaser, the court ruled that the meeting could go ahead. Share transfers relating to the South Port shareholding were frozen for 14 days, with a date set for a full

Directors and management at Hawera saleyards: Peter Cook, Paul Macfie (general manager), Garth Cowie, Rick Bettle, Brian Train (chairman), Paul Harris (deputy chairman), Stuart Collie, Mike Cashin, Trevor Harrop (company secretary).

hearing for an interim injunction set down for 19 February 1999. The resulting poll at the meeting returned a positive result:

Votes for 2,383,774 representing 1,241 shareholders.

Votes against totalled 15,545 representing 8 shareholders. This represented a 99.35% vote in favour.

With a mandate from shareholders to move forward, the final hurdle was to retire all bank debt, amounting to $6 million, and re-purchase 2,873,074 shares from South Port at $1.65. This was achieved when Michael Cashin suggested that the board take advantage of what is said to be one of the world’s oldest forms of finance, ‘factoring’, which effectively involves selling the company’s invoices in return for immediate payment. A recipe of mixing grassroots with corporate professionals was now beginning to provide the essential ingredients to meet the growing needs of this old provincial trading titan as it moved into its third century of trading in Taranaki and neighbouring provinces. In this case its own subsidiary, FCOS Finance Ltd, purchased Allied Farmers Ltd debtors’ ledger on a factoring basis and realised sufficient funds to repay the bank debt and purchase the shares. In many respects this was a significant turning point for the company; it was now able to stand alone without being propped up by banks and a southern cornerstone shareholder. Settlement was March 2000, with South Port directors Collie and Harrington to retire upon the sale becoming unconditional on 23 March.

Sadness and a great sense of loss accompanied the chairman’s report to the board on Tuesday 31 August 1999 when he advised directors of the death of Paul Harris, one of the most distinguished gentleman to sit on the directorate in the modern era. He had played a crucial role in the survival of Allied Farmers Ltd and without Paul’s and Roy Lithgow’s intervention it is doubtful that the company would have survived. His outstanding credentials provide an insight into a man who left his mark on the district of South Taranaki. Qualifying for admission to the New Zealand Society of Accountants at age 19 he was unable to be admitted as a member until the age of 21. Awarded Fellowship status in 1984 he served on the Taranaki branch committee of the Society, including two years as chairman. He had been a Hawera Borough and District Councillor, a member of the Hawera High School Board of Governors, recipient of a South Taranaki Citizens Award, member of the Hawera Harness Racing Cub Committee, a Life Member of the Hawera Racecourse Committee, and president of the Hawera Harness Racing Club. He was also chairman of Hawera Mainstreets Committee, Cinema 2 Limited, Cinema 2 Properties Limited and member of the syndicate responsible for the development of the Cinema complex in Hawera. His service to Scouting was outstanding, with many achievements over a 51-year period, including appointments of Area Commissioner from 1995 until his death. He was the New Zealand delegate at many Scouting conferences throughout the world, including Melbourne, Paris, Bangkok, Oslo and Hong Kong. He also produced 17 gang shows with a cast of 70–80 scouts and adults. He was awarded the Member of the New Zealand Order of Merit for his outstanding service to the community in 1999.

The enormous and highly valued contribution made by Paul Harris will be remembered through the Paul Harris Memorial Fund, established by the company in 2001 using the proceeds of an insurance policy, covering the cost of replacing key personnel in the event of premature death, as a tribute to him as an employee and director. The fund provides that interest and income over the inflation-protected original sum is available for staff and children of staff to receive a grant for Outward Bound character-building courses or tertiary education. Trustees call for applications annually.

Paul R. Harris, deputy chairman of directors of The Farmers’ Co-operative Organisation Society of New Zealand Limited, 1987–99.

Douglas L. Hazard, former Scheme manager and director, also passed away during 1999. His outstanding judgement, leadership and corporate expertise led the company out of the mire in 1987 under the Scheme of Arrangement. He was held in high esteem by all who knew him and Allied Farmers was deeply indebted to this man – truly one of New Zealand’s most accomplished and successful financial managers.

Known to many as Nolan’s buildings, the site of the Company’s Head Office in Regent Street, Hawera for the past 65 years was about to pass into the pages of history when the Warehouse retail outlet sold the freehold to the building, forcing a move from what had been the nerve-centre of the company for most of its history. A decision was made to lease the area above what had been the Post Office in Princes Street, Hawera to house the Head Office. Coincidentally this was about one hundred yards from where Gillies and Nalder and subsequently Farmers’ Co-op established offices in what was the South Taranaki Winter Show Building in the first decade of the century. Out west at Opunake, a new farm supplies store was built at a cost $600,000. During a board discussion on the project, a director who resided in a city asked what the resale value of the building would be after completion. He was advised that Allied Farmers would be lucky to get $400,000! The fact is that few, if any, commercial buildings built in small rural towns would realise the construction cost immediately following completion.

Real Estate has been part and parcel of the company’s business portfolio, but the division had always been a relatively low-profile operation, with a few agents working out of small offices within the three branches situated at Hawera, Stratford and New Plymouth with no window displays or visual profile. Throughout the past century the main focus had been rural properties sales, although the chairman commented in 1981 that, ‘the urban scene, particularly in New Plymouth, has enlivened in the past six months, with substantial clearance of house listings created by the build-up over the latter 70s.’

The fortunes of the Allied Farmers Real Estate division fluctuated with those of the economy, but it was generally a very satisfactory adjunct to the other divisions of the company and valuable knowledge was able to be passed on of potential property movements in the respective districts. During 1999 the company made significant changes to its operation, firstly acquiring the real estate business of Selwyn Metcalfe in Hawera and appointing Selwyn as branch manager, and relocating the real estate division from his former premises, situated at the corner of High and Victoria Street. Selwyn had worked for the company in 1981/82 and resigned to set up a real estate office, purchased from another former employee of Farmers Co-op, the inimitable George Ranford. Another major move during the year was to join the First National network, which specialised in local real estate and agents with local knowledge, with a national network of support linking up with 90 other offices to take advantage of referrals, and marketing campaigns with first-class training opportunities. The company purchased First National Real Estate in Palmerston North and J P Morgan Real Estate in Feilding in 2003, but the Manawatu operation failed to live up to expectations and that connection was severed.

Incredible Journey

The driving force of this provincial rural enterprise had been an enduring desire for local ownership and control of a dedicated trading organisation, tailored to meet every possible need of the farming community. In recent years ‘cash was king’ and profitability was at the forefront of directors’ minds when new opportunities came along. Although parochialism was the glue of Allied Farmers, there was also determination to move beyond provincial boundaries in the quest to increase economies of scale. An opportunity arose in August 2000 when the price of Wrightson’s shares fell to ‘the 30 cent plus mark’, a price, it was felt by some Allied Farmers directors, could buy 51 per cent and ‘fund it comfortably’. The wheels were set in motion for an investment banker to make a detailed assessment of ‘A Proposed Acquisition of Wrightson Limited’ and bank backing was put in place should it be required. In a merger scenario there were several areas of overlap through which rationalisation could provide cost savings. In Taranaki, the King Country and Waikato there were a number of synergies between the two companies that made this an exciting proposition.

Wrightson Rural Supplies operated a network of 76 stores throughout New Zealand, including 30 in the South Island, offering a full range of agricultural products in addition to the livestock, wool, insurance, seeds, real estate, forestry and research divisions. Wrightson online services also offered a comprehensive supplier facility. Chairman Brian Train was extremely keen to proceed with the initiative, however not everyone on the board and management was convinced that Allied Farmers had the internal infrastructure to manage what was an extremely large and diversified national rural enterprise. Three months elapsed before consensus was reached and by then the share price had doubled and the opportunity was lost. Brian Train described it as: ‘A case of key personnel not willing to grasp the nettle. It would have been David and Goliath, with large market implications.’

Heart and soul had been the ingredient within the board and management of the company that had distinguished it from others throughout its long and challenging history. This was not just a business operation with the sole purpose of producing a profit but rather a fraternity and brotherhood of likeminded people who had united for the common good of the rural community. Despite a sea change in the dynamics of the incumbent directorate from the board prior to 1987, the parochialism and provincial control that still characterised the operation at times were an impediment to attracting investment and at times suitably qualified directors and staff in what was becoming a highly technical and sophisticated commercial environment. The company, however, could boast a multifarious combination of seasoned directors and management with a wide range of experience and skills. In this final year of the 20th century, chairman Brian A. Train and Peter L. Cook, his deputy, continued in the roles they accepted in 1987 to guide the company into bountiful

SECRETS

and calmer waters. Other incumbent directors included Michael J. Cashin, chairman of Mooring Systems Ltd, and At Work Insurance Ltd and a director of Ryman Healthcare Ltd and CentrePort Ltd. He had also held positions and directorships in several other large companies and government agencies, including chairman of Housing New Zealand Limited and Housing Corporation of New Zealand. Rick G. Bettle joined the board, bringing 20 years experience in the primary sector. He had moved from the dairy industry in 1986 to the position of managing director of Wrightson’s and then chief executive officer of Alliance Group. Along with directorships in a number of other enterprises, including the Pork Industry Board, he was also chairman of the TAB. Ross J. C. Dunlop was an experienced sheep, beef and dairy farmer with strong family connections with South Taranaki and the community as a District Councillor. G. Andrew McDouall, from Wellington, was a member of the stock exchange and managing director of McDouall Stuart Securities Ltd who had offices in the Hawke’s Bay and Australia and a number of other private companies. The executive management team included Paul A. Macfie, general manager, Trevor Harrop company secretary and Colin Morrison deputy general manager.

Basking in a year of successes, Allied Farmers was well positioned to step into the next millennium with confidence. The balance sheet highlighted the Year Under Review with a 110 per cent increase in pre-tax profit for the group, repayment of the South Port 35.21 per cent shareholding, a bonus issue of one new share for every three shares held, successful entry into the bobby-calf procurement, processing and marketing arrangement, and the key divisions of merchandise and livestock contributing record profit results. Redevelopment of the Stratford branch included a garden centre and offices for the real estate team, the new purpose-built merchandise store at Opunake included development of fuel retailing. Other trading changes included rebranding FCOS Finance as Allied Farmers Finance Limited.

The sun rose on 2001 with significant achievements in all but two divisions, namely Te Kuiti Meat Processors Ltd and Allied Farmers Finance Ltd, although the overall company result recorded an operating surplus of $4.308 million compared with $3.168 million the previous year, representing an increase of 36 per cent. The total operating revenue of $138 million was a huge $30.5 million, or 28 per cent, over above the previous year. A dividend of 20.5c tax paid per share rewarded shareholders who had showed faith in the company through good and bad times. The merchandise division, under the guidance and management of Craig Sole, was steaming ahead with a 46 per cent increase over the previous year. The livestock division was also making a significant contribution to overall performance in a year when farmers were receiving record prices for all classes of livestock under the keen and experienced eye of division manager Colin Morrison and livestock regional managers Stephen Sutton, Taranaki, Alan Hiscox, King Country and Bill Sweeney in the Waikato. Farmers Wools Ltd had achieved good results, although the success was somewhat dampened when Police investigations revealed that the manager and office manager had, over a lengthy period, been misappropriating large sums of money. Both left the company and were charged. In the end, this had no impact on the financial outcome of the division in that year. Allied Farmers Finance Ltd was also going through difficult times in terms of growth, with trading banks becoming more active in rural lending. Consideration of strategies to strengthen the division resulted in the AFF Head Office being relocated to Auckland in 2003 for better exposure to a larger market. Some commentators believed that the company was at the top of what was without doubt a cyclical industry generally influenced by the returns to farmers, others felt that the optimism and enthusiasm in the rural sector showed that the economic position would continue at least for the immediate future. Staff continued to have a considerable stakeholding in the group and were recognised for their contribution to the year’s success.

Times were again changing, with a major decision taken by directors during 2002 to list Allied Farmers on the Main Board of the New Zealand Stock Exchange. For some time they had been conscious of the lack of liquidity in the trading of company shares while listed on the Secondary

Board and the resultant Price Earning Ratio reflected in the discounted share price. Subsequent to the announcement of the NZSX listing the share value substantially increased and Allied Farmers’ exposure to a larger and more affluent audience generated considerable activity. Expansion plans in the south resulted in the acquisition, on 1 April 2002, of Manawatu Livestock Limited based at the small rural township of Rongotea, formerly known as Campbelltown, 25 kilometres southwest of Palmerston North. In keeping with company policy, trading continued under the name of Manawatu Farmers. With a highly experienced and motivated team under the management of Andy Wood, clients were serviced from Wellington and south Wairarapa in the south, and as far north as central Hawke’s Bay, Taihape and Waverley. The original company Manawatu Livestock Ltd had been the brainchild of Barrie Gibson and Peter Forrest who in 1991 with Messrs A. Wood, B. Holland and M. Pearson established what became a highly successful operation in the heart of dairying country. Saleyards were originally established in the town in 1892 and continued in use throughout the past century with a plethora of stock and station companies operating from them. Another addition to the livestock stable of Manawatu Farmers was the southern Hawke’s Bay firm of Webb Livestock. This husband and wife team, Phillip and Jill Webb, joined Allied Farmers in August 2006 and this created an opportunity to gain a foothold in the dairy livestock business on both sides of the Tararua and Ruahine Ranges, continuing the calf sales Webb Livestock ran at Dannevirke Showgounds and the store and dairy cattle sales at the Matamau yards, north of Dannevirke. These two well established operations were an excellent addition to the Allied Farmers Livestock division.

Saleyards situated in or adjacent to almost every town throughout the country had in the past been the mecca where farmers met, talked, walked and traded, caught up with current affairs and news both local and from abroad and pressed the flesh with auctioneers, agents, drovers and neighbouring farmers. It was a meeting place and sanctuary where all things agricultural were discussed at length, with the exchanges often continuing afterwards at the local tavern. Sale day, either weekly or fortnightly, was when villages and towns came alive and farmers and families came to sell cattle and shop. Bankers, doctors, professionals and other traders often chose sale day to be in the town to take advantage of the influx in population. Gradually over the years, due to better

Hawera saleyards at Glover Road.

means of transporting stock, communications and diminishing sheep numbers, the number of sales held at saleyards in the smaller centres declined, and then one by one they discontinued, with many yards falling into disrepair. South Taranaki was no exception and finally, 113 years after Arthur A. Fantham established them in 1889, the ‘Union yards’, on four acres of leased land owned originally by Mr John Brown on the south side of Glover Road, Hawera, were closed and sold to Mitre 10, currently the best known network of home improvement stores in New Zealand. The rationalisation of smaller saleyards saw the Otorohanga and Pio Pio yards also close and in 2003 the Opunake and Waverley yards were demolished and the land sold.

Major saleyard upgrades were being undertaken at Te Kuiti, and at Esk Road in Stratford where a significant investment culminated in the opening of the Taranaki Livestock Centre. This was a major move for Taranaki. In the past, when huge numbers of sheep and cattle were traded between farmers, stock firms had operated from some 23 dedicated saleyards throughout the province. Allied Farmers now owned a 50 per cent stake in the Livestock Centre, which was considered to be the most modern in the North Island and had an 80 per cent share of the market. During the year Ravensdown elected to deal direct with its clientele and provide animal health and weed control products in competition to the traditional stock and station industry, but Allied Farmers was able to negotiate a ten-year arrangement that provided commission to Ravensdown on all fertilizer sold to existing clients and a restraint of trade relating to weed and animal health products in Taranaki, King Country and the Waikato. Throughout the past four years the company had endeavoured to increase the quality of service to the rural community by upgrading the 14 merchandise stores situated in the King Country and Taranaki and this culminated in new premises at Bell Road, Taumaranui.

Fluctuating fortunes in the stock and station industry impacted negatively on the company during the 2002/03 year. A cold spring and slow grass growth followed by the worst drought for many years did not help productivity and, secondly, although the company still had an agreement to kill bobby calves, the divestment of Te Kuiti Meat Processors during the previous year sliced into revenue, which dropped to $70 million from $97 million. The net tax profit after tax of $2.15 million for the year to June 2003 showed a decrease of 37.2 per cent on the previous year. The appreciation of the New Zealand dollar, the drop in milk solids payments received by Fonterra suppliers and a softer US market also took a toll.

General manager Paul Macfie resigned following his acceptance of the position of chief executive officer for an opposition Hawke’s Bay stock and station company Williams and Kettle, and this created a vacuum at a time when consistency and experience was vital to maintain the company’s position in the industry. Paul Macfie had been a considerable asset during his five years at the top. Although initially a replacement from outside was considered, Brian Train assumed the role of executive chairman from 1 August 2003 until a suitable candidate could be found. Senior director Rick Bettle decided not to seek re-election and retired, having made a significant contribution to the group during the previous six years. His position on the board was filled during 2004 by John J. Loughlin who came from a background of financial services, a former chief executive officer of Richmond Ltd, Hawke’s Bay, and also held a number of directorships on a variety of high-profile boards, together with an extensive background in the wine industry.

Now in receivership, Wanganui timber company NDG Pine was seen by the board as in an industry closely affiliated with the rural sector and Allied Farmers decided to purchase the company in October 2003. They were under ‘no illusions’ about the short-term profitability of timber milling, but the industry was ‘attractive in the medium term for profitable, efficient and well-run operations’. While it was a departure from the traditional stock and station business, the acquisition was consistent with the strategy of diversification through investment in other landbased industries and within the geographic area which the company serviced. The former American mill owner John Crane had brought the $12 million timber mill to New Zealand some years earlier

but had been caught by the rapidly rising New Zealand dollar and falling prices in the United States. It was intended to negotiate a log supply agreement with Wanganui District Council. Wanganui Mayor Chas Poynter said that, ‘he and the council breathed a sigh of relief after the announcement’.

Allied Farmers Ltd had thrown a lifeline to the languishing timber mill staff, their families and Wanganui with the prospect of the reopening in the very near future. However, press reports issued a warning from Allied Farmers that profits for the first half of the year would be down on the same time last year and the drop could likely be pinned to the new acquisition – the renamed Allied Pine. The core business continued to trade in line with the company’s budget. A prediction of good profits for the mill was made with the appointment of former Fletcher Forests marketing expert Mike Strang as general manager, who also received a five per cent holding in the timber mill. Chairman Brian Train said that the mill could be providing 20–30 per cent of group revenue within three to four years. Although it was intended to reopen the mill immediately, operations did not get under way until early 2004 and start-up costs in the new division caused a drop in the company’s half-year profit as the new venture struggled to get onto a sound footing. There was still every confidence that improvement would be seen in the coming year.

Other innovations were being explored to diversify the trading arm of the company, with Waikato Farmers livestock manager Bill Sweeney brokering a new livestock deal with representatives from the northern China province of Fuxin county who were in New Zealand to purchase top dairy stock to take back to China for town milk supply and milk product for the manufacture of yoghurt. The deal would be in the region of $10 million. By March 2004 a shipment of 3,000 in-calf heifers had been exported to China where they would be distributed to farmers. Interest continued from overseas and the company assisted with a shipment to Mexico, but the fluctuating New Zealand dollar dampened enthusiasm for a few years.

Brian Train once again stepped down from his lofty caretaker position as executive chairman with the appointment of Philip Anstey, general manager of Allied Farmers Rural Services, with a commencement date of 10 May 2004. The appointment in part replaced Paul Macfie who had resigned the previous year. Mr Anstey had grown up on the family farm in South Canterbury and came to the company from the position of divisional manager of PGG Seeds in Christchurch. He was educated at Lincoln and Otago universities and initially worked for the International Wool Secretariat in London, returning to New Zealand to work in the fishing industry before joining wool export company John Marshall Limited. He had also held positions with Skellerup International and the meat industry. It was believed that his background in marketing and product research would be of great assistance to the group. Philip Anstey’ s appointment came at a time when the Allied Farmers was sailing into relatively calm waters. It was in good heart and most departments were ticking over nicely.

The company had completed its second full trading year since being listed on the Main Board of the New Zealand Stock Exchange. The combination of steady growth and returns was highlighted by the fact that shareholders who owned one share at January 2000 with a market value at that time of $1, and through a tax-free bonus now owned three shares for each share held. The market value as at 4 September 2004 was $1.90 and the share price was continuing to rise on the back of Fonterra’s announcement of an increased end-of-season dairy payout and the Wrightson’s merger with Williams Kettle and Pyne Gould Guiness, that made Allied Farmers a very attractive proposition. Challenges in Allied Pine were steadily being surmounted and the year had been very successful in most other departments despite serious flooding in the Manawatu and Waitotara.

Philip Anstey’s appointment was supported by an experienced and efficient head office staff:

Trevor Harrop Company Secretary

Bob Green Company Accountant

Colin Morrison

Livestock Manager

James Livingston Group Merchandising Manager

Geoff Gray Chief Clerk

Gill O’Dea

Executive Secretary

Vicki Bayly Corporate Services Manager

Karen Bellve Chief Clerk

Sue Garvey Cashier Mail Desk

Colleen Close Payroll

Beth Demanser Allied Farmers Finance

Mike Shaw IT Manager

Chris Bolton Merchandise Systems Manager

Patsy Broughton Accounts Payable

Rochelle Arbuckle Receptionist

Lesley Chittenden Recharges/Inventory

Lisa Williams Accounts Payable

Brian Train finally came to the end of his incredible journey as chairman of Allied Farmers Ltd, when he stepped down as director at the annual general meeting, at the Hawera Club, on Tuesday 25 October 2005, no doubt also with a feeling of satisfaction but with a tinge of reluctance in his heart. He was now 70 years of age, and his time at the top was second only to Alexander Hunter who chaired Farmers’ Co-op from 1915 to 1944. Brian’s tenure had been a rollercoaster ride controlled by single-minded and tireless determination. He had unequivocal distaste for anything associated with failure and pride was a visible personal attribute. When asked what he thought about the company’s achievements during his time as chairman, he succinctly expressed his view

It’s had its down sides, but there are always those. Unless you have been sick, you don’t know what it feels like to be healthy.

Salvaging the company from certain extinction had been a remarkable achievement. The turnaround had been hailed as a ‘financial Houdini act’ by confounded corporate commentators, who thought it inconceivable that anyone, least of all an unknown Waverley farmer with little commercial knowledge or experience of the stock and station industry, could revitalise such a seriously ailing enterprise. When asked why he thought he could make the company profitable when others had failed, he said

Words with an apostrophe ‘t’ don’t exist in my language, can’t – don’t – won’t. I refuse to accept the word can’t. You have got to make the call.’

Failure was simply not an option, and he used every possible means to ensure that the company survived. Even his adversaries respected his fighting qualities when the chips were down, and his unpretentious approach and respect and appreciation for the people who surrounded him was a hallmark of his management style. It was this remarkable man’s ‘never give up’ tenacity that dragged the company out of the mire and that saw him guide it to prosperity once again over 18 years.

Brian and the newly elected 1987 directors were blessed with a certain amount of good fortune, particularly in relation to the appointment of David Simpson from Finance & Advisory Services Ltd and subsequently the introduction of Doug Hazard who both provided the financial wisdom and strategic plan that drove the technical aspect of the recovery throughout the six years of the Scheme of Arrangement. Essential, though, were the astute tactical fighting qualities that Brian brought to the board table. His determination to ensure his work would not be undone, as a succession of four general managers came and went, saw him assume the role of executive chairman and executive Scheme manager and caretaker general manager/chief executive with the enormous responsibility and workload that entailed. Tributes flowed as Brian Train now stepped down from the position, with five of the six other south and central Taranaki shareholders who initially offered themselves and became directors of the beleaguered company. They had completed what could validly be described as ‘a mission impossible’. Whatever the future holds, Brian Train’s name is engraved forever in the history of the stock and station industry of Taranaki as one of its champions.

No Shrinking Violet

Incredibly, 116 years passed before the first appointment of a chairman from outside Taranaki to guide this business on its continuing journey. Appointed to the board in March 2004, progressive, battle-hardened and originating from the deep south, John J. Loughlin had spent his boyhood in Dunedin and Nelson, later moving north with his family to Napier where he completed his schooling at Napier Boys High School. Following an early foray into university life and a few months working for Carter Holt cutting scrub and fruit and pine trees, he joined the AMP Napier office as an office junior. He was soon recognised as a young man of considerable talent. Following a transfer to Wellington to work in management accounting he took a year off to study at Victoria University. Armed with a Bachelor’s degree he returned to the property division of AMP and managed their southern portfolio covering a territory extending from Hawke’s Bay across to Taranaki and south to Invercargill. He also managed AMP’s share portfolio for two years through the difficult 1987 sharemarket crash. With more study and a Master’s degree in marketing and business strategy, he then joined Westpac and ran their investment management business. A move back to Hawke’s Bay in 1993 saw him appointed finance manager at Richmond Ltd and, after four years, elevation to the position of chief executive officer, a position he held for five and a half years. His first two directorships were Tranz Rail and Zespri. He now resides in Havelock North in Hawke’s Bay and is the owner of Askerne Winery, holding directorships with Zespri Group Ltd, Metlifecare Ltd, Centralines Ltd, Prism Group Holdings Ltd, Lean Meats Ltd, Kermedec Property Fund Ltd and Taupo Motorsport Park Ltd. He is also an issuer appointee of NZX Discipline and a ministerial appointee to the Representatives Committee of the Animal Health Board. John Loughlin arrived with the following qualifications: MBA, BCA, CA, FCSAP, ACIS, FAII, FNZIM – a highly motivated and versatile administrator.

John Loughlin’s appointment as chairman of Allied Farmers clearly enunciated the board’s intention to compete vigorously within what was a growing an industry with a diminishing number of few main players, and, as a press correspondent suggested, the ‘change of leadership suggests Allied Farmers Ltd will be no shrinking violet’. One of the first statements of intent from the new chairman was:

It is not easy to grow margins in this business, so more profitability will come through expansion.

John J. Loughlin MBA, BCA, CA, FCSAP, ACIS, FAII, FNZIM, chairman of directors 2005 – Incumbent Allied Farmers Limited.

His appointment signalled the desire of the board for progressive regional growth. Beyond the Taranaki heartland, strong performances were being recorded in the Waikato, King Country and Manawatu, creating enthusiasm to strengthen the company and its overall geographical presence, particularly in the livestock division. The chairman steadfastly reaffirmed that regional expansion would be secondary to ensuring that existing established operations would be taking every opportunity within present boundaries. He spoke of Allied Farmers as being ‘a good company operating in a competitive and changing environment’ and that he would seek to build on its strengths. Acknowledging there were advantages in being a larger player he recognised that Allied Farmers could also enjoy the same ‘by operating in a smart way’. He was determined, relatively young, energetic and highly motivated and John Loughlin placed the company into top gear, promising that ‘the soul of the company would remain where it had always been – Taranaki’. Terry Tacon, journalist for Farmers Weekly and Taranaki Daily News, described John Loughlin as first and foremost a money man, and he was described by former Richmond chairman Sam Robinson, when asked to sum up John Loughlin’s qualities in a few words, saying: He is extremely intelligent and highly strategic. He understands the value chain from the farmer’s point of view, which is a particular benefit.

The chairman’s first performance report stated that the group’s operating revenue for the half year ending 31 December 2005 was down 8.3 per cent but the regional operations in the Waikato, Taranaki, King Country and Manawatu Farmers remained strong and in some areas had increased market share. Tighter economic conditions and a drop in farmer confidence across all farming sectors had discouraged spending, although the company’s finance operation, Allied Farmers Finance Ltd recorded a strong half-year result, posting a 103 per cent rise in earnings before interest and tax. The fundamentals of the company were, according to John Loughlin, still in very good shape and results were expected to improve in the second half of the year, traditionally the busier time for rural services companies. The somewhat beleaguered Allied Pine subsidiary continued to struggle, however, although results were ahead of those for the second half of the last financial year.

Two months later, in January 2006, the company was breaking new ground when it announced the purchase of Hawera’s Mitre 10 Home and Trade Store operation, at Glover Road. The site had previously been occupied by Allied Farmers Hawera saleyards and was immediately adjacent to its

Taranaki Farmers Mitre 10 Home and Trade Store. Situated on the same site previously occupied by the Farmers’ Co-op Saleyard, Glover Road, Hawera. Purchased January 2006.

own Hawera trading store, which was eventually sold. The entire Hawera retail trading operation would now be combined into one megastore trading under the name Taranaki Farmers Mitre 10, and would be one of the largest stores of its kind in New Zealand – a ‘one stop shop’ for farmers, lifestyle-block owners, homemakers and builders, with a huge range of building supplies and general merchandise. The integration of the two operations was completed without redundancies and additions to the store included a drive-through service area and large storage yard.

With a view to casting a wider net to catch that elusive ‘critical mass’, the chairman did not discount acquisitions in other divisions, acknowledging that Allied Farmers lacked size and ‘growing scale will be essential to ensure that they maintain and strengthen their competitive positions’. The company was well placed to take advantage of appropriate growth opportunities in the finance market. It had an excellent record of high-quality lending, an extremely low default rate and was focused particularly on rural lending for plant and equipment. Consequently it was not surprising when it was announced in April 2006 that Allied Farmers had acquired 100 per cent of the shares of Prime Finance Ltd. The merger was completed in accordance with the requirements of the Stock Exchange Takeovers Panel, followed by thorough due-diligence procedures undertaken by external experts and key internal personnel. A team including Dennis Pickup, an experienced chief executive officer, and William Giesbers, a highly qualified financial officer, was engaged to merge the two companies to form Allied Prime Finance Ltd. This was a bold move in a rapidly changing world, where finance companies had become a significant part of the New Zealand investment market. Allied Farmers long and successful track record in the finance sector provided a ready-made source of investors and borrowers and made this acquisition an exciting addition to the finance division.

Despite a forecast for 2006 of ‘a flat full year profit in the year to June’, the company predicted there would be significant differences in the timing and composition of earnings for the year, with income in the rural division expected to be lower due to falling lamb and beef exports in the livestock operation. But offsetting this, a better performance from the finance arm was expected, and a reduced loss from its subsidiary, Allied Pine. As the year played out, however, ‘profit tumbled’ and the hopes of a second half of the year recovery did not eventuate. The operations review for the year reported ‘a disappointing result’. Although the livestock division had a very good year, merchandise remained strong despite what was described as ‘a challenging year’, and Allied Farmers Wool achieved increased bale numbers and returned a record result, the real estate division was unable to repeat the 2004/5 record year and recorded a loss. On a brighter note, Allied Farmers Finance had ‘an excellent year’ with the acquisition of Prime Finance providing sound diversification to its lending book. Allied Pine continued to produce disappointing results. Every avenue was explored and considerable effort employed to turn the mill into a profitable operation but reduced manning and downsizing failed to achieve any significant improvement in profitability, necessitating the implementation of further plans to develop the potential of the mill.

As the company pushed on into the 21st century there were more departures from the company; ‘gone but not forgotten’ continued to echo in the annals of the stock and station industry of Taranaki, with many local celebrities leaving their indelible mark on the districts and people they so diligently served. Yet most will not receive the recognition they deserve as time and memory plays out its inevitable role of distancing us from the past. As we near the end of this chronicle, we

take the opportunity to acknowledge some of the more recent staff who have made significant contributions to the company through service, sacrifice and enduring commitment.

Acknowledged as ‘the leading figure in the stock and station industry in Taranaki for many years’, Colin Morrison retired in 2006 following a 45-year passion for Allied Farmers Ltd and all it stood for. During this time he rose to manager of merchandise at Stratford, produce agent at Eltham, stock agent, district manager at Stratford and Hawera merchandise divisional manager, livestock divisional manager, head auctioneer, and principal officer of Allied Farmers Real Estate. Colin distinguished himself with many other achievements during his long term of service. He was instrumental in organising the installation of New Zealand’s first live-weight selling centre, and he set up the Waikato livestock operation and oversaw the purchase of Manawatu livestock. He was also chairman of the New Zealand Stock and Station Agents Association for ten years. His proudest moment, however, was his pivotal action enabling the Farmers Co-op to continue to trade when on the verge of being sold in 1987. Following his role as acting general manager for the company he became livestock divisional manager, a position he held until handing over to John Kelly on 1 July 2005. Colin’s contribution to the stock and station industry and Allied Farmers Ltd will be remembered by all who had the opportunity to know and work with this dedicated company man, who can be credited with a significant slice of acclamation in connection with the company’s survival.

Bob W. Green, accountant, also one of Farmers’ Co-op’s loyal stalwarts, spent most of his working life at Farmers’ Co-op. He left school and worked for the New Zealand Railways for five years, but with the prospect of being transferred from his home town of Stratford, in 1961 he left the Railways to join Farmers’ Co-op as a clerk. He eventually served as district accountant from 1974 until 1985. Promotion and a transfer to Hawera saw him take over the district office from Mike Barry, when all the trading accounting was handled by New Plymouth and Hawera offices. Bob witnessed all the significant changes through the days of operating mechanical ledgers to computers. He recalled the difficult days up to the late 1970s, when manual balances were undertaken shop by shop in pen and ink: ‘We didn’t really know where we were until three months after the event’. The early 1980s, when liquidity problems started to have a direct effect on the company, were firmly fixed in his mind. He reflected on the upheaval of 1987 and all the changes: ‘We were getting our house in order, when other people were getting a kick in the ribs’. The Farmers’ Co-op’s retrenching had already been completed! Bob too spent 45 years working with the company.

I

n mid 2006, with a clear horizon and a strategy of conservative growth, the time had arrived for the board to earnestly consider the appointment of a group chief executive officer. The position, previously filled by chairman Brian Train until his resignation in 2005, had remained vacant since 2003. Brian had maintained control of the divisions through the general managers and management teams reporting directly to him and the board, but the directors, however, were now determined to establish more governance within the organisation. It was considered vital that a significantly enhanced top-level corporate administration be established to manage the existing operation and any future initiatives and to provide an overview of all operations and assist with the growth and consolidation of the key divisions. Historically the location of the Allied Farmers Head office at

Colin W. Morrison, acting general manager, deputy general manager, stock agent, district manager, livestock divisional manager, head auctioneer.

Hawera had limited appeal to executives used to a city environment, and consequently some compromise might be required in respect of the location of a corporate office. With the New Zealand stock and station industry now dominated by only a few players, namely PGG Wrightson, Allied Farmers Ltd, Farmlands, Elders and Fonterra’s wholly owned retail supplier RD1, attracting experienced administrators to a small rural town would be difficult. The search commenced for the person to fit this demanding role, and on Wednesday 5 November 2006, Allied Farmers announced the appointment of David W. Bale as group chief executive officer, with duties to commence on 15 November 2006. Mr Bale would operate from a corporate office to be established in what was previously the office of Prime Finance Ltd on Lambton Quay, Wellington.

Described by his contemporaries as ‘an entrepreneurial man’, a summary of group chief executive officer David Bale’s employment showed a leader, lateral thinker, innovator and a man with initiative who had worked in a variety of different industries. Immediately prior to the Allied Farmers appointment he was a self-employed consultant and professional director, undertaking strategic assignments for a number of major New Zealand and overseas companies. In 1999 he resigned from his position as chief executive of the New Zealand Lotteries Commission, a position he had held for 12 years. Other senior roles included managing director of Inprint Ltd, chairman of other subsidiary companies within Independent Newspapers Ltd/News Ltd group companies, a board member of Mitsubishi Motors (NZ) Ltd and a Trustee of Westpac Stadium Trust. He holds an MBA and attended the New Zealand Staff College and Stanford University’s Executive Management Program and has completed the Advanced Management Program (AMP) at Templeton College, Oxford, England.

Born in Canterbury and educated at St Bede’s College, Christchurch, he studied accountancy and attended both Victoria and Massey universities. Although without a rural-sector background, he had strong views on the way forward and considerable experience from high-profile positions he had held in the past. He was profit motivated and not afraid of making hard decisions. Specifically appointed for his excellent general business skills in finance, strategy and business analysis, his financial expertise would provide the company with clarity and direction at a time when others were battening down the hatches and waiting for the storm to pass.

On Monday 4 December 2006 it was announced that William Giesbers had been appointed chief financial officer of the company, effective immediately. William had previously been contracted to assist with the amalgamation of Allied Farmers and Prime Finance. He brought a solid background of corporate and public-company financial management, as well as wide experience in business integration, technology development and implementation, and internal control and risk analysis. He had started his career with the ANZ Banking Group NZ Ltd. In more recent years he has been chief manager finance, Technology and Operations, Institutional Banking (and Treasury) with Westpac; finance director and chief information officer with Contact Energy; and group chief financial officer of Tower Ltd.

The appointment of a chief executive for the subsidiary Allied Prime

David W. Bale MBA, chief executive officer, Allied Farmers Ltd, 2006–08.

William L Giesbers CA, FCIS, AFNZIM, CTP, Group chief financial officer Allied Farmers Ltd, 2006–08.

Finance was first on the agenda for David Bale. It had been trading for six months with consultants acting in the CEO and CFO roles. The board selected and appointed John Mallon, an experienced finance company executive, to take this key position in January 2007. He came from St Laurence Ltd where he had been chief executive officer of the NZDX-listed St Laurence Property & Finance Ltd and general manager funds and asset management. Coming from a successful career in the finance industry, he had previous management roles with Perpetual Trust Ltd and BNZ Finance Ltd. Mr Mallon, a Chartered Accountant, brought extensive finance-sector experience to the group at a time when it was bucking the trend and expanding the finance division.

Adistinct change in the company’s dynamics and operation became evident with the establishment and staffing of Allied Farmers Wellington Corporate Office. In addition to the Group chief executive officer, chief financial officer and chief executive officer of Allied Prime Finance, Andrew Quayle was appointed to the position of Group marketing manager. He had held senior roles within New Zealand Post and the New Zealand Lotteries Commission.

In June 2007 he was joined by group chief information officer Tony Hood, who came with significant experience in the finance and technology sectors. Group company secretary Trevor Harrop and general manager rural services Philip Anstey continued to operate from the company’s Hawera office.

David Bale engaged immediately with the senior executive team to create a detailed five-year strategic plan for the entire group. The three areas of competitive advantage identified were rural supplies, livestock and finance. A comprehensive plan to grow all three areas was agreed to by the board. This also involved a capital note and a share placement to give the group funds to execute the strategy. He also had to confront the mounting difficulties associated with Allied Pine Ltd, Wanganui. The sawmill operation had failed to live up to expectations despite making significant ongoing operational improvements. The previous owner had lost a substantial amount of money and it had continued to be unprofitable throughout the five years of Allied ownership. Coupled with the appreciation of the New Zealand dollar, a rise in shipping costs and changes in the international commodity market for lumber, an early decision on the fate of the ailing subsidiary was now paramount to avoid continuing significant losses. On the face of it, sawmilling had appeared a compatible adjunct to a rural trading organisation such as Allied Farmers, with farmers high users of timber products. However, lack of knowledge of the industry and the prospect of spending millions of dollars to correct deficiencies in the operation prompted the board to request group chief executive officer David Bale to immediately undertake an evaluation of the situation and submit a recommendation on his findings. His visit to the mill at Wanganui included a tour through the plant and casual discussions with employees and an in-depth study of the day-to-day operation, all of which confirmed to him that the failing sawmill operation could not be turned round. He said:

I walked through the mill and at the end of it said – ‘We will never make any money on this – close it!’

There was a degree of reluctance by some board members to close the operation but by now the losses were beginning to affect the group’s bottom-line profit. David Bale had come to the decision by building a computer model of all inputs associated with the mill. The outcome clearly showed that the possibility of turning the business into a profitable concern was remote, if not impossible. Somewhat regrettably a decision was made to close the mill. The group chief executive officer met with employees on the site and explained the situation and the board’s decision, which was not unexpected. He then broke the news to shareholders, stating that:

John D. Mallon, Chartered Accountant, chief executive officer, Allied Nationwide Finance Limited.

The decision to close the sawmill was painful. The board, after a lot of work and discussion, came to the conclusion that our company was not a natural owner of a sawmill. Given this, plus the decline in lumber prices, the unfavourable exchange rates, and continuing losses, the decision to close was inevitable.

The chairman also announced the sale of Allied Farmers Wools Ltd in July 2008. The company had been selling wool on behalf of clients since opening its doors and had established the Wanganui Woolstore in 1918. The chairman said:

The sale was an early move towards wool industry consolidation and a show of support for the strategic initiatives of the Wool Industry Network.

He hoped that the move would help generate higher returns for wool growers and improve the profile for New Zealand wool in world markets.

The company’s livestock divisional manager, John Kelly, credited by rural services manager Philip Anstey as playing ‘a big role in building Allied’s livestock team into one achieving record results’, resigned in July 2007 ‘to pursue personal interests’, with long-serving Joanne Richards taking over the role of livestock administration manager.

John Loughlin was now in the driver’s seat and poised to take advantage of the huge amount of consolidation in the stock and station industry and looking to expand operations in other carefully selected locations. Technology was now taking centre stage in almost every aspect of New Zealand’s commerce and with the recent appointment of David Bale, the opportunity was at hand to take advantage of his considerable IT knowledge and experience. In the quest to acquire a nationwide share of the dairy livestock market throughout New Zealand John Loughlin’s first initiative would focus on enabling the livestock division to open every farm gate in the country through an internet website. Breaking the traditional mould of livestock trading would be a challenge in itself. Despite livestock and technology being unlikely partners, but with the knowledge that 85 per cent of dairy farmers now had access to the internet, there was a realistic opportunity to use powerful corporate technology initiatives to significantly broaden the company’s livestock portfolio. In June 2007 David Bale unveiled the concept of tendering dairy livestock through a dedicated livestock-trading website. Marketing manager Andrew Quayle and recently appointed chief information officer Barry White were set the task of developing, designing and marketing a customised website for buying and selling livestock online, complemented by finance options through Allied Nationwide Finance Ltd. This would be supported by the company’s network of highly experienced livestock agents.

Drawing on surveys of customer needs, agent feedback and historic sales activity MyLiveStock. co.nz was developed over the ensuing months by Messrs Quayle and White in collaboration with David Bale and the package was successfully launched on 20 November 2007. It provided the farmer with a state-of-the-art, fully integrated online livestock trading resource. Success was immediate and in the first 12 months,

over a quarter of the dairy farms in New Zealand became registered members, with 85 per cent having never dealt with Allied Farmers previously.

The benefits were soon realised far and wide and a blossoming online community developed, seeking access to dairy stock

nationwide, detailed stock information and the ability to tender for dairy herds using a real-time bidding system. Subsequently the website was expanded to manage the company’s bobby-calf operation and with plans to expand the service in 2009 to cover beef, this highly innovative move was the forerunner of various technology-based opportunities for Allied Farmers’ growing internet client base.

For farming clientele a fundamental and indispensable requirement when trading in the stock and station industry is access to finance. This has been one of the foundation stones of the company. The Farmers’ Co-op had been closely associated with the original Hawera-based West Coast Mortgage and Deposit Co. Ltd from the early 1900s when two FCOS directors sat on the board of this small local company. In 1939 FCOS purchased the company and continued to trade under the name of West Coast Mortgage and Deposit Co. Ltd and in February 1946 also purchased the Manaia Building and Investment Society. Throughout the 20th century it continued to use the company for most of its financial requirements, until in 1983 FCOS Finance Ltd was established to ‘improve the liquidity of the parent company, relieving it of the responsibility of financing term advances’ and provide more flexible finance to handle hire purchase and longer-term loans.

In the year 2000 a decision was made to rename the company Allied Farmers Finance Ltd, following the parent company’s name change to Allied Farmers Ltd. West Coast Mortgage and Deposit Co. Ltd continues as a safe haven and holding company for a number of non-trading and shell companies.

The board made the decision in 2006 to expand its finance business with the acquisition of Prime Finance Ltd, a Wellington-based finance company specialising in business and consumer finance. The directors recognised that the existing finance business did not have the necessary size and scale to compete in the market and deal with the changing regulatory environment. The acquisition was completed in June 2006 and the two companies, Allied Farmers Finance and Prime Finance, were formally amalgamated in October 2006, creating Allied Prime Finance Ltd.

There was further expansion in May 2007 when Nationwide Finance was acquired from Hanover Group. The business could now be taken into New Zealand’s top finance ranks, with the Nationwide Finance acquisition increasing assets to $300 million. Allied Nationwide Finance Ltd was created in June 2007 through the amalgamation of Allied Prime Finance and Nationwide Finance.

The finance sector in New Zealand changed dramatically in late 2007, beginning with the collapse of a number of New Zealand finance companies and the United States sub-prime mortgage crisis which sent shock waves around the world, and also affected New Zealand’s economy. During this period Allied Nationwide Finance Ltd continued to operate its business and successfully integrated the Nationwide and Allied Prime Finance businesses. It was already positioned with strong liquidity and a diversified loan book so was able to deal with the extremely difficult market conditions that existed through 2008.

Despite the continuing turmoil in the finance industry, with the world suffering its worst financial crisis in 100 years, Allied Nationwide Finance Ltd remained in relatively good heart. The loss of investor confidence in the market was, however, having an impact. In the words of chairman John Loughlin, when reflecting on the finance operation for the year ending 2008:

Allied Nationwide had to pay out over $100 million in maturing deposits, but the ability to match debenture maturities with loan repayments, and a programme of remaining liquid saw Allied Nationwide finish the year in good shape.

The expansion story did not stop there. The acquisition of Speirs Finance during the early part of the 2008/2009 financial year was a strategy for Allied Nationwide to increase its size, scale and diversification of funding and lending. The acquisition resulted in Allied Nationwide having in excess of $400 million of group assets and access to a $250 million securitisation programme, backed by BNZ with a funding commitment of $150 million. The environment for Allied Nationwide

Finance changed again in November 2008 when the company was approved under the new deposit guarantee scheme introduced by the Government. This had an immediate effect on the company’s funding position, with over $50 million of additional funds raised from investors over a two-month period, bucking an 18-month trend of fund outflows.

Considering the immediate future in light of the worsening global financial crisis, Mr Loughlin said that the 2009/10 year would be extremely difficult for both the global and New Zealand economies. Increased unemployment and the reduction in personal income would impact on business and consumer demand but,

There will be a place for finance companies in tomorrow’s economy. Through both the recession and the recovery phases people will need food sourced from agriculture. Thus there will be a place for rural services operations such as our own.

John Loughlin acknowledged that the company’s book of business had weathered many downturns during its extraordinary history, but it had survived with the help of customers and staff and the chairman reaffirmed that ‘we will again come out of this one in good shape’. As the world recession accelerated during 2007 the impact began to affect the home market as well as abroad and the year played out with the rural services showing mixed results. Although profit was steady, the revenue grew in the rural merchandising sector and margins decreased because of competitive pressure. Climatic conditions in the spring also affected farmers buying patterns, which further impacted negatively on revenue and profit. Livestock and veal meat processing, however, had a very good year.

Mid Canterbury now came under the spotlight with dairy conversions providing an excellent opportunity to open a new livestock branch in the South Island at Ashburton as part of Allied Farmers’ growth strategy. This well established and rapidly expanding rural district, one hour from the airport and only 45 minutes from Temuka saleyards, saw the opening of the new branch in March 2008, with Kerry-Lee Booth manning the office and three highly experienced agents, Harry Stanway and Peter Jackson, top agents from the PGG Wrightson’s stable, and Ben Southen who came from Rural Livestock Ltd. Less than a year later the chairman was pleased to report that Allied’s first fledgling ‘mainland’ operation was already the third largest trader of livestock through the Temuka saleyards. On 2 March 2009 the team would be selling stock in the South Island under the Allied Farmers logo for the very first time.

Information technology strategy was now the responsibility of recently appointed Barry White who joined the company in May 2008 having held a number of positions in technology-related companies in the United Kingdom and New Zealand. He had consulted to corporate organisations and the Government, including the Ministry of Education. His work was now focused on establishing a company philosophy to support all divisions and to consolidate the group’s overall infrastructure and achieve better returns on investment by centralising key business processes across the group and streamlining management and methods of delivery.

Marketing strategies were now being developed using technology to extend the capability of core business units to cost effectively deliver and expand customer services across the country and this was seen as one of the most important strategies for growing the business. Consolidation of the network infrastructure to improve the availability of core data to internal and external key stakeholders across the organisation was also now a priority. One of the challenges of interfacing technology with industries traditionally based on personal service and relationships, where the computer world and technology is often in a distant galaxy, is bringing new and often opposing cultures together and this alone can be a major hurdle in launching web-based tools and online services. With computers here to stay and their use in all areas of commerce, Allied Farmers was now committed to providing a balanced approach for the integration of computer technology into its own personnel and its client base. With MyLiveStock now well established and continually

enhanced, a new Allied Farmers website was introduced in November 2008. Refinements and additions to the facility would continue with a quotation system, as an extension of MyLiveStock was introduced February 2009 to provide an automated stocklisting distribution service to all Allied Farmers agents, with real-time sales data from stockyards to web planned for March 2009.

Described as an enigmatic man and venerable champion of the Allied Farmers cause in the modern era, often referred to as ‘Mr Allied Farmers’ and fondly viewed by some staff as an Alex Hunter lookalike, Trevor Harrop ended his outstanding 25-year term of employment with the company in April 2008. He began this journey in December 1982 as financial controller of Farmers’ Co-op, and later, upon the establishment of FCOS Finance, was appointed first manager, holding both positions concurrently for many years. Eventually elevated to the position of company secretary, Trevor was never far from the action during one of the most uncertain and difficult periods in the company’s history. His undivided loyalty, support and guidance to the executive management, board and fellow staff members throughout his employment, and in particular during the difficult period immediately before and after the 1987 debacle, was exemplary, and as one commentator observed, ‘the five-day, forty-hour week was something read about but certainly not practised by Trevor’. His untiring commitment during that darkest hour was an inspiration to those around him. His passion and unerring commitment to the company was of vital assistance in restoring it to its rightful place in the stock and station industry of New Zealand. Respected by all who had the pleasure of meeting him, Trevor Harrop served the company with outstanding distinction.

Chairman John Loughlin announced that group chief executive David Bale had decided to step down at Christmas 2008. He had joined Allied Farmers two years earlier, in November 2006. It was envisaged his position would be a two to three-year appointment. He had brought excellent general business disciplines to the company in finance, strategy and business analysis, and his contribution in tight times, particularly in connection with the finance industry, cannot be understated. During his tenure the company purchased Nationwide and Speirs Finance and the chairman reinforced his valuable contribution by stating that, ‘the fact that Allied Farmers Nationwide Finance had survived and prospered when 26 competitors had failed was a real credit to him’. It had been David Bale’s decision to close the Allied Pine sawmill and to sell Allied Farmers Wool at Wanganui, where adverse industry trends of falling sheep numbers, increased interest in breeds without wool, reduced shearing/increased slipe wool and the low prices Allied Farmers received made retention of the wool division untenable. He initiated the MyLiveStock website concept and the expansion into the South Island at Ashburton. Paying tribute to David Bale’s short but significant contribution, group chairman John Loughlin stated:

David has steered the group through a period of financial turbulence that has been unprecedented in most of our lifetimes.

Speaking at the October 2008 annual general meeting chairman John Loughlin said it had not been a tradition to compliment regulators and government officials, but the radical actions that had been taken so swiftly by regulators around the world were worthy of praise:

The co-ordination that has been achieved has been impressive and necessary. The actions cannot prevent a significant global slowdown, but they seem to have significantly mitigated against the most extreme negative scenarios.

Philip Anstey, general manager of Allied Farmers Rural Services for the past four years, resigned from the group in November 2008.

Fantham’s Legacy

Popular former general manager Paul Macfie now returned to the company after a five-year absence. He had resigned in 2003 to take on the role of chief executive officer of Hawke’s Bay based Williams and Kettle, where he steered the company through the PGG Wrightson takeover, then accepted a position with investment bank McDouall Stuart. Having spent most of his life in senior positions in the stock and station and associated industries, his decision to take on the role of group chief executive officer for Allied Farmers fulfilled his ambition to get back into a farming-related enterprise where he could apply his extensive knowledge and management skills. His decision to live in New Plymouth would provide easy access to the steadily expanding territories now displaying the Allied Farmers banner. On his return to Taranaki he said:

New Plymouth is more central. I always thought New Plymouth was one of the best kept secrets. The council was doing a superb job with the facilities. The walkway just blew me away.

Former colleagues were delighted to have him back:

He’s a mover and a shaker. …We are absolutely delighted to have him on board. He has the x factor in relation to staff.

A difficult but stimulating task lies ahead for the new group chief executive officer who arrived on the job to news from New Zealand’s dairy giant Fonterra that the continuing decline of commodity prices, coupled with the state of the dollar, would worsen the effect of the global financial crisis and would signal the end of the dairy boom and reduce dairy farmers’ spending power for the foreseeable future.

Paul Macfie immediately visited all the company outlets and staff throughout the country, reacquainting and familiarising himself with the overall operation. Allied Farmers now had 14 rural supply merchandise stores – 11 in Taranaki and three in the King Country, trading as Taranaki Farmers and King Country Farmers respectively. It also had well established livestock operations in Taranaki, Waikato, King Country, Manawatu and a burgeoning recent addition at Ashburton in the South Island. It was a very different scene to the previous 2007/08 year when, fuelled by a buoyant dairy sector, with unprecedented prices for dairy cows, the livestock operation enjoyed its largest annual revenue in the company’s history and the

Paul A. Macfie BAgriCom., general manager 1998–2003 – Group chief executive officer 2008 (incumbent) of Allied Farmers Limited.

merchandise its best performance for a number of years, continuing with six months profit for the 2008/09 year. Despite intense competition, the real estate division also made a modest profit. Amongst the continuing failure of finance companies, Allied Nationwide Finance returned a pretax profit of $3.9 million, which in such volatile and uncertain times was an excellent result.

The position of group chief executive officer includes a hands-on role in the livestock operation, and Paul Macfie’s wide experience and connections in the industry offers much for the future of the group. His first priority was to get to grips with the rapidly growing finance business and to re-establish himself with key people in the company, most of whom he had worked with in his previous tenure as chief executive. Allied Farmers’ recent strategic decision to relocate many of the corporate roles to Wellington had not found favour with all staff, particularly the rural people, and Paul felt it was important for the ongoing health of this integral business that crucial relationships were strengthened. With a keen and discerning eye on long term aspirations and strategies for the future of the organisation, he said:

While Allied Farmers was founded in Taranaki, there is no doubt that in recent times the company has grown significantly beyond this historical base. Recent development has been very much in keeping with the traditions of the past, that is, acquisition and organic growth of livestock, merchandise and real estate, but the growth of our finance business has significantly changed the dynamics of this ‘traditional’ business. Recent mergers of other New Zealand rural servicing businesses, plus the entry of two major corporate players from Australia, have changed the landscape of rural New Zealand. This has opened up opportunities for Allied Farmers that were probably beyond our capabilities in the past.

The establishment of the business into the South Island is an example of expansion that would most likely not have succeeded prior to the restructuring of the industry that has taken place over the past three to four years. Farmers like choices and providing we ensure we offer something of value there will always be opportunities to expand the traditional offering that has served us so well over the past 100 years. The credibility of the Allied Farmers brand has grown as a result of the recent changes to the industry, and Allied’s own growth, and this has assisted in significant business now being generated outside of the Taranaki base.

I see our traditional business continuing to expand nationally over the next few years, backed up by finance packages offered by what is now a significant finance business. That expansion won’t, however, be limited to Allied Farmers doing this on its own, indeed we have several key partnerships that complement our business in many ways and strategic alliances are likely to play a significant role in the ongoing growth of Allied Farmers. The establishment of MyLiveStock, probably one of the most respected rural internet sites, will open up opportunities in a growing online trading business and this will also assist in the ongoing development of the company.

Evolution and reorganisation in the management structure continued in December 2008 with the return of Shawn Gibbon to the position of group real estate manager, reporting directly to the group chief executive officer. Shawn had also previously worked for Allied Farmers for nine years until he in resigned in 2006 to take up a position of real estate manager with PGG Wrightson. His new Allied Farmers First National appointment included consolidating the Taranaki real estate and property management branches situated at New Plymouth, Stratford, Hawera and Urenui and implementing a real estate growth strategy in other regions where Allied Farmers has a presence. A Taranaki man and horticulturalist by trade, Shawn and his family owned and operated four ‘Taranaki Fresh’ stores at Stratford, Waitara, Inglewood and New Plymouth. Major plans were now under way to rebuild Allied Farmers First National real estate division throughout the province and take advantage of its enduring historical connections within the countryside and towns of Taranaki. The division had made a significant contribution

throughout the past 100 years, with many well known identities having worked in it. The earliest known employee was Mr H. E. Candy, of Manaia, who held the position of ‘land agent’ for Farmers’ Co-op and its predecessor Gillies and Nalder in the early 1900s.

A century of real estate sales was suitably celebrated in 2008 when Allied Farmers First National Real Estate ‘scooped the pool’ at First National’s conference in 2008, winning three of the network’s major national awards. Of almost 100 First National Real Estate offices, Allied Farmers First National Real Estate Stratford won ‘Top Office’ of the Year and Allied Farmers’ Owen Mills with a 30-year service record, won ‘Top Sales Consultant’ of First National’s 700 salespeople and ‘Top Rural Sales Consultant’. Long-time sales consultant Kevin Walsh received the award of third top rural sales consultant and twelfth overall. First National Real Estate general manager John Stewart said the company’s involvement in Taranaki’s rural communities over many years had seen them become the preferred conveyors of farm and lifestyle sales in the region and commented on Owen Mill’s achievements by saying:

Dedicated to understanding the aspirations of both vendors and purchasers, Owen’s knowledge of the market, each property and its recent performance along with potential into the future has seen him consistently ensure satisfaction for both parties in his sales.

With a staff comprising 33 salespeople, two property managers and six administration personnel working from the three offices in the province, the team’s success reflected the Allied Farmers’ and First National Real Estate’s partnership’s desire to continue to focus on delivering a comprehensive and quality real estate service to the communities in which it operates.

The departure of William Giesbers after two years with the company as group chief financial officer was announced by the group chief executive officer and the appointment of Hayden Monk as acting group chief financial officer from 1 February 2009. Hayden joined the company in 2007 as financial controller Rural Services. He had previously been employed by Telecom and based in Wellington. Despite a number of recent staff movements the company was still endowed with a super-abundance of long-serving employees, many whose service spanned 10, 20, 30 and occasionally over 40 years. These loyal stalwarts of Allied Farmers have survived extraordinary changes in their working environment and the world around them. Gone are the days when calculations were completed by mental arithmetic and ledger entries scribed in longhand. They have witnessed the introduction of computers, calculators, electronic accounting devices, television, mobile phones, huge changes in transportation and a transformation in social and commercial behaviour, mostly brought about by the relentless evolution and march of information technology onto the farm, into the company and at home. At no time in the history of mankind has there been such massive social, industrial and economic change as in the past 20 years. We pay homage to the hundreds of staff throughout the history of Allied Farmers who could be considered long-service employees by profiling four incumbent personnel who have achieved noteworthy status.

Brian Edlin came to the company in 1966 and commenced what turned out to be his life’s work with Taranaki Farmers (Wholesale) at New Plymouth, and has remained in the purchasing division of the merchandise department of Allied Farmers throughout his entire career. Now purchasing and operations manager of the merchandise division for the whole company, he recalls the most difficult days of his working life when the company decided to close down the wholesale warehouse at New Plymouth, making many of his workmates redundant, with only two surviving, including Brian. He said ‘the changes’ throughout the years have been the most memorable part of the job, with many staff finding it difficult to accept change. He spoke about the day when he threw his ready reckoner book away and received a calculator. It happened that a staff member who worked with Brian died, and instead of replacing him, the company purchased Brian a calculator!

Sixteen-year-old Geoff Gray left school and commenced employment at the Farmers’ Co-op

Hayden J. Monk BBSAcct. CA. Group chief financial officer of Allied Farmers Ltd.

Regent Street office as office junior in 1964. He was employed by long-time accountant Les Church. In 1970 he left on his OE to England and returned to the company in 1974 at the invitation of Norm Blake, the company secretary. Although broken by his working holiday in England, his term of service started 45 years ago and he has known no other employer in New Zealand. He has held the position of chief clerk and is now assistant accountant for the company.

Yet another 1964 addition to the staff was Bruce Hicks, born and bred in Hawera, who at the age of 15 years arrived at Farmers’ Co-op straight out of school and was employed as a salesman for £4 per week. He continues to work in the merchandise store at Hawera as a retail salesperson where he started 45 years ago under the guidance of Charlie Chisholm, his first manager. Apart from a short time at New Plymouth, Manaia and Stratford branches, he has spent his entire working life with the company at Hawera. Bruce considers his worst moment with the company was immediately prior to 1987 when many jobs were on the line, and the best moment was seeing it survive when a new board took control in 1987. Bruce recalls former general manager Barry Whelan as a man who had the confidence of staff and a lasting influence on him. Bruce and his wife Carol work in the Hawera Taranaki Farmers Mitre 10 store on Glover Road.

Charlie Downs was Allied Farmers’ longest-serving employee at the time this book went to press. He is one of the evergreens of Allied Farmers, having serviced the back country east of Stratford for the past 49 years as a livestock agent with pride and commitment. He has known no other job. At the age of 16 his father said to him, ‘I have arranged for you to start at the Farmers’ Co-op on Monday’. He turned up for work at the Stratford branch and has remained with the stock division ever since. He acknowledges the district manager and fat-stock drafter for the Patea Works, Peter Western,

Board of directors 2008, Allied Farmers Limited. From left: Messrs Garry C. Bluett BMS, CA., G. Andrew McDouall BCA, DipNZX, Ross J. C. Dunlop DipMgmt, John J. Loughlin – Chairman MBA, BCA, FCSAP, ACIS, FAII, FNZIM, Peter L. Cook – Deputy Chairman, DipAg., Philip C. Luscombe BAgSci(Hons).

as the most influential person in his working life. Much has changed in the transportation and communication departments and Charlie recalls the days when 4,000 to 5,000 sheep were yarded at Kohuratahi. Although he has witnessed many changes, he believes the stock agent’s basic work is pretty much the same as it has always been. There have been few highs or lows throughout his long and rewarding years at the company but Charlie believes his greatest achievement in life has been providing ‘stability for his family’. Never-ending phone calls, often late into the night and early in the morning, are Charlie’s measure of success:

The phone has got to keep ringing. If it stops you are not doing your job.

For Charlie no day of the week is a rest day; being available to his clients seven days a week and speaking with fellow agents and clients until around 10:00pm each evening has always been regarded as ‘just part of the job’ which he has diligently carried out throughout a remarkable five decades.

Peter L. Cook, one of Allied Farmers longest-serving directors in the modern era, resigned on 20 April 2009 due to ill health. His contribution to the company has been considerable, particularly during the precarious late 1980s and early 1990s. Apart from his position on the board, he also held the office of deputy chairman for the past nine years. Chairman John Loughlin spoke of his exceptional loyalty and service:

Peter has been a director of Allied Farmers since March 1987, a crucial time in the history of the company as it fought for its very survival when entering into a Scheme of Arrangement with creditors.

His input during that time, and subsequently as it grew geographically into other areas outside of the home base of Taranaki, has been substantial. Peter has been a strong advocate of the rural servicing business and has always been a loyal farming client of the company. His input will be missed by both directors and staff and we wish him well for a quick recovery.

The staff and shareholders and indeed the community of Taranaki are and always have been integral to this extraordinary story of a stock and station business that continues to serve the people and place where it was founded and now embraces the wider rural community of New Zealand. This ever-resilient organisation can, with immense pride and satisfaction, stand tall amongst the few remaining New Zealand stock and station organisations whose origins date back over 100 years. It is the only vintage rural trader in the Dominion still proudly and inextricably linked to the people and place where it was founded. Welded together by a parochial inner sanctum of committed shareholders, staff and clientele, it continues to uphold the ideals and expectations of early pioneers who laid the company’s co-operative foundations. Allied Farmers has enjoyed the calm years and has survived great upheaval and challenges dealt out during a colourful 120-year history, including slumps, recessions, depressions, two world wars, economic failure, mechanical and technological revolution, amalgamation, and the many vicissitudes of continuing change. This company has survived because of men and women of exceptional vision, integrity, courage and effort created and developed a stock and station enterprise that is still looking to the future with great expectation. The shareholders, the directorate and thousands of staff who have played a part, can rightfully be proud of their contribution to the legacy of Arthur A. Fantham and the Egmont Farmers’ Union Ltd. This remarkable company, Allied Farmers Limited, has earned its place as one of New Zealand’s most enduring agricultural commercial enterprises.

Provisional Directors, Chairmen of Directors, Directors, General Managers/Chief Executive Officers/ Executive Scheme Manager/Executive Chairman, Scheme Managers, Secretaries, Auditors, Solicitors, Canvassers and Initial Shareholders

THE EGMONT FARMERS’ UNION LIMITED 9 March 1889

Provisional Directors

BAYLY, Isaac Hawera DIVE W. E. Hawera FORSYTH, S. Pihama HAMILTON, R. B. Manutahi HUNTER, Moore Hawera INKSTER, G. Normanby ROBERTSON, John Hawera LAMBIE, J. Pihama McCRACKEN, T. C. Manaia McLEAN, Geo. Hawera PARSONS, T. Otakeho PEARCE, W. V. Pihama PERRY, J. L. Manaia RIDDIFORD, F. Hawera ROWE, Wm. Normanby SCOTT, Thos. Manaia SUTHERLAND, A. Manaia

SECRETARY (pro tem) McCRACKEN, T.C.

First Chairman of Directors DIVE, W. E. 1889…

Directors of 1889

DIVE, W. E. 1889… MACRAE, E. 1889… HUNTER, M. 1889… RIDDIFORD, M. F. 1889… BRYSON, 1889… McLEAN, G. 1889… HAMILTON, R. B. 1889… GLENN, G. 1889… PERRY, J. L. 1889… Manager

FANTHAM, Arthur A. 1889–1904

FANTHAM BROS & CO. FANTHAM, A. A. (Bert) II 1904–1905

GILLIES, FANTHAM AND NALDER

FANTHAM, A. A. (Bert) II 1905–1906 GILLIES, Arthur William 1905–1906 NALDER, Edward Ernest 1905–1906

GILLIES AND NALDER GILLIES, Arthur William 1906–1914 NALDER, Edward Ernest 1906–1914

TO BE SECRETS NOW

THE FARMERS CO-OPERATIVE ORGANISATION SOCIETY OF NEW ZEALAND LIMITED AND ALLIED FARMERS LIMITED

Provisional Directors

31 May 1913 – 31 January 1914

ALLEN, Percy William BARKLA, James BATTEN, Hamilton Edwards BOOKER, Benjamin BREMER, Frederick Gustave BREMER, Robert BUCKERIDGE, George Henry BUXTON, Harold H. COOMBRIDGE, William Frederick CORRIGAN, James Randell CUNNABELL, Alexander De Wolf DAVIDSON, George Thomas DEATH, Albert Ernest DICKIE, Charles Dunsbie FOREMAN, Thomas GIBSON, Charles Edmund GRAY, Edward A. GWYNNE, George HILL, George Blandford HERBERT, Thomas HOLLARD, George HONEYFIELD, Cecil Reginald JOHNSTONE, Archibald Christopher JONES, William LYE, Frederick PALMER, Percival PETERSEN, Peder Jens ROBINSON, William Herbert SCOTT, Duncan MacDonald SHOTTER, John Morris SIMPSON, Joseph Bell SKEDGWELL, William SYMES, Alfred Francis TARRANT, Charles Cleverley TAYLOR James Ogilvie TODD, David WILLS, Arthur Turner WOODS, Charles Clarke

BAKER, R. W. Interim Secretary Chairmen of Directors

BUCKERIDGE, George Henry 1914–1915 CATHIE, R. M. 1958–1973

DICKIE, Charles Dunsbie 1944–1949 HONEYFIELD, Cecil R. 1949–1956 HUNTER, Alexander 1915–1944 LOUGHLIN, John J. (incumbent) 2005–TARRANT, T. C. 1973–1981 TRAIN, Brian A. 1987–2005 WILLIAM, W. O. 1956–1958 WILLIAMS, A. G. R. Reeve 1981–1987 Directors

ABBOTT, Brian L. 1971–1981 ADAMSON, Ian Douglas 1984–1987 ALEXANDER, Alex 1921–1937 ASHTON, Ronald Mc. 1966–1981 BARKLA, James 1914–1918 BELTON, W. G. 1918–1936 BETTLE, Richard Gilbert 1997–2003 BETTS. Cyril H. 1972–1984 BLUETT, Garry C. (incumbent) 2004–BLYDE, Sir Henry E. CBE 1953–1974 BLYDE, Peter McC 1974–1987 BREMER, Melvin P. 1935–1974 BREMER, Purvis G. 1930–1958 BREMER, Robert 1924–1929 BREMER, R. L. 1978–1987 BROPHY, P. 1930–1952 BUCKERIDGE, George Henry 1914–1915, 1916–1922

BULFIN, P. E. 1981–1987 CANTRICK, Neil Charles 1993–1994 CASHIN, Michael James 1996–2004 CATHIE, Ronald Mc. 1949–1973 CHAPMAN E. E. 1958–1970 CLELAND, B. E. 1921–1922 CLELAND, N. R. 1929–1939 CLELAND, Robert B. 1971–1976 COCKER, Thomas S. 1958–1973 COLLIE, D. Stuart 1998–1999 CONNETT, J. S. 1921–1933 COOK, Henry H. P. 1970–1971 COOK, Peter Lamaso (incumbent) 1987–COOMBRIDGE, William F. 1914–1919 CORKILL, A. 1915–1930

CORLETT, Eric J. 1974–1983 CORRIGAN, James Randell 1914–1915 COWIE, Donald Garth 1994–1998

COXHEAD, Arthur 1939–1940

CUTHBERT, Bryan 1928–1929

DEATH, Albert Ernest 1914–1920, 1936–1945

DEATH, Robert A. 1974–1987 DEATH, Thomas H. H. 1963–1970

DICKIE, Arthur J. 1965–1978 DICKIE, Charles Dunsbie 1914–1949

DICKIE, Eric C. 1956–1965 DUNLOP, Ross, J. C. (incumbent) 1999–FLEMING, Michael 1929–1930

FOREMAN, Henry Albert 1919–1941

FOREMAN, Thomas 1914–1918

GIBBS, J. 1941–1948

GRANT, Douglas A. 1967–1970 GRAY, Edward Alexander 1914–1916

GUISE, Ian Herbert Roy 1993–1998 GWYNNE, George 1914–1915

HALTON, John A. 1976–1987 HARRINGTON, John Arthur 1998–1999 HARRIS, Paul Richard 1987–1999 HARVEY, Donald James 1987–1993 HAZARD, Douglas L. 1993–1994 HEWITT, W. A. 1938–1943

HONEYFIELD, C.R. 1923–1956

HUNTER, Alexander 1914–1944

JAMES, Sydney M. 1948–1966 JAMIESON, Timothy James 1984–1987 JONES, William 1914–1941 KELLICK, A. R. 1980–1986 LAIRD, Lawrence Charles 1987–1993 LARCOM, A. G. 1915–1921 LAW, James D. 1944–1971 LITHGOW, Roy Alexander 1987–1994 LOONEY, George 1919–1920 LOUGHLIN, John J. (incumbent) 2004–LUSCOMBE, Philip C. (incumbent) 2005–

LYONS, J. H. 1920–1921

LYSAGHT, B. C. 1916–1934

MARFELL, E. 1917–1930

MARFELL, Leslie 1939–1974 McCALLUM, Eric W. 1946–1967 McDOUALL, G. Andrew (incumbent) 1999–McELDOWNEY, Joseph A. 1981–1987 MURDOCH, Peter Alexander 1985–1987 NORMAN, James P. V. 1976–1987

O’NEILL, J. 1921–1922 OWEN, T. W. 1920–1923 PALMER, J. E. 1923–1941 PARSONS, N. W. 1952–1958 PEASE, J. J. 1942–1972 PEDERSEN, Paul Ross 1987–1993 RICHARDS, William 1914–1916 RIDER, Douglas E. 1964–1984 ROGERS, George William 1988–1996 SARTEN, Charles R. 1941–1965 SARTEN, D. B. 1981–1987 SARTEN, F. 1918–1951 SARTEN, Maurice R. 1970–1979 SKEDGWELL, William 1914–1919 SMITH, Arthur 1973–1976 SUTTON, L. 1921–1922 SWINDLEHURST, J. 1915–1918 SYMES, A. E. 1919–1928 SYMES, Alfred Francis 1914–1915 TARRANT, Thomas, C. 1959–1981 THOMSON, Percy 1943–1962 TIBBY, Arthur W. 1970–1982 TODD, David 1914–1917 TRAIN, Brian Alexander 1987–2005 TROTTER, Thomas Ashton 1985–1986 TURNER, George Casterton 1992–1994 VEITCH, Bruce D. 1973–1987 WELLS, W.T. 1918–1919 WICKHAM, W. 1930–1944 WILLIAMS, A. G. R. Reeve 1965–1987 WILLIAMS, Griffith W.A. 1946–1963 WILLIAMS, Walter O. 1934–1958 WILLS, A. T. 1915–1917 WOOLDRIDGE, J. 1921–1922 General Managers/Chief Executives/ Executive Scheme Manager/ Executive Chairman/Managing Director

BALE, David W. 2006–2008 BURT, Peter J. 1995–1998 DAY, Roydon I. 1987–1990 EVENNETT, Derek C. 1985–1987 GILLIES, Arthur W. (Acting Honorary) 1914–1916 HEWITT, W. A. 1926–1930 LYNSKEY, M. J. 1916–1918 MACFIE, Paul A. (incumbent) 1998–2003 2008–

PROVISIONAL DIRECTORS, CHAIRMEN OF DIRECTORS, DIRECTORS, GENERAL MANAGERS… 405

406 TOO OLD TO BE SECRETS NOW

MOLESWORTH, Tom F. MD 1977–1985 SMITH, Lyall. B. 1964–1977 TAYLOR, Thomas 1918–1925

TRAIN, Brian A. ESM and EC 1990–1992 2003–2004

TROTTER, Clement G. MD 1930–1960 WHELAN, Barry F. B. 1992–1995 WOOFFINDIN, Henry F. 1960–1964

Scheme of Arrangement Managers

HAZARD, Douglas L. 1987–1993 SIMPSON, David A. 1987–1993 TRAIN, Brian. A. 1987–1993 Secretaries

BLAKE, Norman C. 1950–1979 GIESBERS, William L. 2008–2009 HARROP, Trevor J. 1986–2008 HEWITT, W. A. 1926–1930 HOLDER, G. A. 1914–1916 NICHOL, J. G. 1916–1918 1925

POPE, Trevor J. F. 1979–1986 TAYLOR, Thom. 1918–1925 TROTTER, Clement G. 1930–1950 Auditors

ARTHUR YOUNG 1984–1988 BURDEKIN & WALKLEY 1924–1925 BURDEKIN, H. D. 1922–1923 BURDEKIN, WALKLEY & CAMERON 1926 ERNST & YOUNG 1989–1997

GEORGE LAURENCE 1937–1942

PRICEWATERHOUSECOOPERS 1998–2008

ROWLEY & GILL 1917–1921

TURTON, J. A. 1914–1916 WALKLEY & CAMERON 1927–1931

WALKLEY & LAURENCE 1933–1936

WALKLEY, CAMERON & LAURENCE 1932

WALKLEY, LAURENCE & CO. 1943–1945

WATTS, LOBB & KEIGHTLEY 1956–1962

WATTS, W. G. 1946–1955

WATTS, WILSON, OKEY & BURR 1963–1971 WATTS, WILSON, OKEY & CO. 1972–1980

WILKINGSON WILBERFOSS 1981–1983

Solicitors

HALLIWELL & SELLAR 1913–1915

HALLIWELL, SPRATT & THOMSON 1915–1923

HALLIWELL, SPRATT, THOMSON & HORNER 1924–1926

HALLIWELL, THOMSON, HORNER & NORTH 1927–1931

HALLIWELLS 1985–1990

HORNER & BURNS 1935–1984

HORNER & NORTH 1932–1935

HORSLEY CHRISTIE 2005–2008 MORRISON DALY 2007–0000

QUIGG PARTNERS 2007–0000 WELSH McCARTHY & CO. 1990–1991 WELSH McCARTHY 1991–2008

1914 Canvassers and Initial Shareholders (Minuted 31 January 1914)

BARKLA JAS. (50 Shares)

Andrews, F. Bell Block 1

Andrews, F. Y. Huirangi 1 Andrews, L. J. Huirangi 2 Arthur, A. H. Hawera 1 Bates, C. A. Hawera 1 Bennett and Sutton Hawera 2 Bremner, W. F. Te Kiri 3 Corey, J. W. Awatuna 1 Cornwall, F. W. Bell Block 3 Death, S. Eltham 1 Dowman, F. F. Miro 1 Duckworth, W. A. Hawera 2 Elsenor, J. Rowan 1

FitzGerald, Jas. Hawera 1 Hoskin, Chas. Bell Block 1 Johnston, S. D. Okotuku 2 Kasper, G. Midhurst 2 Kilsby, Jas. Tariki 1 Kneebone, Chas. Hawera 2 Lavery, Thos. Hawera 3 Lusk, J. A. Oaonui 1 McKeown, Arthur Okoke 1 McNeil, Peter Hawera 2 Robertson, A. B. Hawera 1 Sampson, Herbert Bell Block 1 Shanahan, Thos. Lowgarth 1 Shanahan, Wm. Lowgarth 1

Standish, Walter Normanby 3 Thompson, J. A. Stratford 1 Tristram, Jno. Midhurst 1 Turnbull, S. Huirangi 1 Wren, S. R. Hawera 2 Young, A. J. Otakeo 1 Young, C. F. Tariki, 1

KNIGHT, J. F. (1 Share)

Oliver, J. A. Ngaere 1

GANE, F. J. (2 Shares) Elmsley, Peter Waverley 2 GANE, G. W. (1 Share) Koch, Fritz Kaimata 1

TAYLOR, J. O. (10 Shares)

Hastie, Alex Normanby 5 Saxton, P. H. Meremere 5 SIMPSON, J. B. (5 Shares) Cowper, W. D. Hawera 5 SHOTTER, J. N. (5 Shares) Sellar, R. G. Hawera 5

PETERSEN, P. J. (5 Shares) Alexander, T. and G. Waverley 5

JONES, Wm. (10 Shares) Ackland, W. N. Lepperton 1 Body, R. N. Lepperton 1 Julian, H. H. Inglewood 1 Keightly, F. Midhurst 3 Schicker, E. P. Inglewood 1 Slater, Wm. Eltham 3

SKEDGWELL, Wm. (5 Shares)

Bowman, B. F. Opunake 1 Calender, M. Opunake 1 Hellier, Edw’d Lepperton 1 Vickers, Jno. Midhurst 1 Wellington, W. J. Midhurst 1

DEATH, A. E. (9 Shares)

Castro, Jno De Opunake 1 Cox, T. S. Opunake 1 Cross, O. Opunake 3 Feaver, Jno. Opunake 1 Feaver, Jno. Jnr. Opunake 3

TODD, DAVID (10 Shares)

Feaver, S. R. Opunake 1 Luckin, Luke Opunake 1 McNeil Wm. Opunake 3 Moore, R. J. Opunake 1 Pill, Rich’d Opunake 1 Rowlands, W. E. Opunake 1 Sinclair, Thos. Opunake 1

SYMES, A. F. (8 Shares) Corkill, T. G. Pihama 2 Corkill, W. H. Pihama 2 Horgan, C. Pihama 1 Hurst, C. H. Te Kiri 1 Machray, Jas. Pihama 1 Wallace A. Opunake 1

DICKIE, C. D. (14 Shares)

Harrington, Jno. Whakamara 2 Honeyfield, A. J. Waitara 2 Lander, Geo. Ohangai 2 Lander, Jno. Ohangai 2 Milham, J. W. Whakamara 2 Morgan, G. G. Kaimata 1 Playle, H. G. Kakaramea 2 Warner, F. J. Te Kiri 1

BOOKER, BEN (10 Shares) Burwell, A. E. Kaimata 2 Free, T. J. T. Normanby 2 Lever, J. F. Te Kuite 2 McKenzie, H. S. Te Kiri 2 O’Grady, G. Inglewood 2

COOMBRIDGE, W. F. (30 Shares)

Blake, Jno. Hawera 1 Cockerton, Geo. Normanby 1 Collins, A. K. Taruautangi 1 Copestake, J. F. Taruautangi 1 Dee, T. W. Normanby 1 Ford, Geo. Hawera 1 Harvey, J. W. H. Ohangai 2 McLean, W. R. Hawera 8 Newell, L. J. Meremere 3 O’Neill Mrs B. Inglewood 2 Poi Hikuroa Hawera 1 Richie, Robert Inglewood 1 Te Raho Temutu Ohangai 2 Wallace, W. K. Hawera 5

CORRIGAN, J. R. (20 Shares)

Carter, J. J. Eltham 1 Davis, Jas. Eltham 1 Death, H. W. Eltham 1 Death, Wm. Hawera 1 Glasson, A. J. Hawera 5 Henwood, J. W. J. Inglewood 1 James, Hy. Ararata 1 Jones, H. Kaimata 1 Kennedy, G. S. Inglewood 1 McDonald, Jno. Eltham 1 Paddison, H. Taruautangi 1 Rowe, L. J. Inglewood 1 Rowe, Thos. Bell Block 1 Tiwai, H. N. Ohangai 3

BUCKERIDGE, G. H. (72 Shares) Barrow, J. S. Te Roti 3 Blair & Sellar Hawera 5 Carrick, J. H. Te Roti 2 Catchpole, A. B. Whakamara 3 Cleaver, Jno. Te Roti 2 Cleaver, W. A. B. Matapu 1 Coplestone, Alf’d Eltham 2 Cowern, R. J. Whakamara 2 Death, S.H. Hawera 1 Duffill, J. A. Hawera 1

Fabish, Jno Ratapiko 1 Gibson, H. G. Eltham 3 Harrison E. J. Hawera 1 Hinga, Manutahi 1 Jenkins, E. J. Kaimata 1 Kahu Kuranui Whakamara 2 Kensington, S. J. Matau 3 Kuklinski, J. Kaimata 1 McMullran, A. Matau 2 Mills, F. H. Matau 1 Paora, Normanby 2 Pita Rau Whakamara 1 Pita W. Whakamara 1 Radford, Chas. Ohangai 1 Rangunui, Kanika Purangi 1 Rawlinson, W. J. Matau 1 Roberts, M. Inaha 5 Ronganui, K. J. Whakamara 1 Ronganui, R. J. Whakamara 2 Ryan, M. S. Kaimata 1 Startup, C. J. Te Roti 2 Tamaka, Marua Hawera 2 Thomson, D. W. N. Hawera 5 Trott, A. K. Mata 1 Turi Ngeru Hawera 3 Vincent, Geo. Ohangai 2 Watkin A. E. Hawera 3

Sources and Acknowledgements

Researching and writing the history of Allied Farmers Limited has been an extremely rewarding experience. Throughout the project I have received every possible consideration and my grateful thanks to all those who willingly gave their time to assist with what has truly been a challenging opportunity. I would like to express my sincere appreciation to Allied Farmers Limited chairman John Loughlin, Group chief executive officer Paul Macfie, acting chief financial officer Hayden Monk and group company secretary William Giesbers, personal assistant to the Group chief executive officer Jeanette Prowse, Ross Dunlop director and Mayor of South Taranaki District and incumbent directors for their foresight and determination in bringing this project to a conclusion. I would also like to pay tribute to the staff who have enthusiastically co-operated in every possible way.

This history would not have advanced without the interest and significant indulgence of Brian Train immediate past chairman, Trevor Harrop former company secretary and the knowledge and support of Arthur Fryer, Ross and the late Claire Corrigan, Sir Ronald Trotter, Peter Blyde, Preston Bulfin, David Simpson, Derek Evennett, Gill O’Dea, David Bale, the late Livingston Baker and Jim and Donna Baker, Barry Easton and the staff and management of the South Taranaki Star and many former directors and staff of Allied Farmers Limited who willingly contributed significantly to the project. My sincere thanks to my wife Jan Standing who travelled with me yet again through an extraordinary 120-year history reading and editing copy as it rolled off the wordprocessor.

I acknowledge there will be inaccuracies, errors, inadequacies of interpretation and omissions, some by accident and others through simple lack of space to cover the thousands of events, associated personnel, staff members, agents and alliances.

Russell A. J. (Russ) Standing

In addition I gratefully acknowledge:

A HISTORY OF NEW ZEALAND DAIRY INDUSTRY by H.G. Philpott ALEXANDER TURNBULL LIBRARY AUCKLAND MUSEUM

CENTENNIAL HISTORY OF HAWERA & THE WAIMATE PLAINS by C. J. Roberts. BIOGRAPHY OF J. R. CORRIGAN by Dr James Watson of Massey University. CONFESSIONS OF A JOURNALIST by Pat Lawlor 1935

DICTIONARY OF NEW ZEALAND BIOGRAPHY EGMONT Agricultural & Pastoral Association Incorporated ELTHAM and Districts Historical Society Inc. HASTEN WITH CARE by Ronald Trotter

410 TOO OLD TO BE SECRETS NOW

HISTORY OF TARANAKI by B. Wells

HISTORY OF THE WHANGAMOMONA COUNTY (Jas Garcia – 1940) INGLEWOOD Family History Group (NZSG Inc.)

NEW ZEALAND CO-OPERATIVES Association

PATEA. A Centenary History by Margaret Leslie, Livingston Baker and Ian Church PUKE ARIKI personnel SETTLER KAPONGA by Rollo Arnold, assisted by Betty Arnold TARATA School and District Centennial History

THE CYCLOPEDIA OF NEW ZEALAND

THE MOA. One Hundred Years of Inglewood by R.W. Brown THE RURAL ENTREPRENEURS by Simon Ville WILLIAMS AND SONS by Karen Williams

ALLEN, Quentin ALLEN, Sandy ANDERSON, Howard ASHTON, Mrs R. M. BAKER, Jim and Donna BALE, David W. BARKLA, Ray BAYLY, Vicki BETTS, Cyril BIRCHLER, David BLAKE, Linda BLYDE, Peter BOURKE, Shirley BRASH, Jan BREMER, Robert BREMER, Ron BREWER, Judy BREWER, Richard Pres Egmont A & P Assn. BREWER, Hilary (nee Slater) BRUCE, Keith BUCKERIDGE, Warren and Adele BUCKERIDGE, Wendy BULFIN, Preston, CANDY, Chas and Maureen CASELBERG, Alan CATCHPOLE, Ken COCKER, Geoff and Adele CONNOR H. COOK, Peter COOKE, Ron CUNNINGHAM, Hugh and Cynthia DAY, Roydon I. DICKSON, A. and J. DIMOCK, Maurice Dorrie’s Memoirs

DOWNS, Charlie DRABBLE, Don DUNCAN, Jim EDEN, Alanna EDGCOMBE, T EDLIN, Brian Egmont A And P Association ELIASON, Bill ELLINGHAM, Bill Eltham Historical Society EVANS, Ethel EVENNETT, Derek FAGAN, John FANTHAM, Neil Feilding Library FINDLATER, Murray FORREST, Peter FRANDSEN, Jim and Marie FRANKLIN, Leo FRASER, Noel and Catherine Friends Inglewood Library Gen. Group. GAMLIN, Alf and Ella GARVEY, Sue GOWER, Ray GRANTHAM, Cedric GRAY, Geoff GREEN, Bob and Maureen HANN, G. HANSEN, Maureen HARDING, Geoff HARPER, Alison HARRIS, Shirley HARVEY, Don Hawera Geneology Society Hawera Library Plus

HAYWARD, Ross HEY, Morris HICKEY, Leo and Ann HICKS, Bruce HISCOX, Alan HISLOP, Peta and Doug HONEYFIELD, Alison HONEYFIELD, David HONEYFIELD, Ken HONEYFIELD, Tim and Lorraine HORNBY, Clyde HORNER, Alan HORNER, Ken and Jennifer HOSKINS, Sorrel HOWARD, Bill HUGHSON, Joan and Gordon Inglewood Library JENKINS, Janet (nee Caselberg) JENKINS, Roma JOBLIN, Gordon JOHNSTON, Noel JONES, Evelyn JURY, Neil Kaponga Library KEITH, Bruce KENNEDY, Roland and Margaret KIVELL, Lynette LAIRD, Joe LAMBERT, Florinda Collection LAURENCE, Bill R. LAW, Don LAW, Rob LEECE, Torry LEWES, Mrs G. LITHGOW, Roy LUXTON, Ruth MACFIE, Paul MACKAY, Annalisa Manaia Branch AFL Manaia Library MANN, Bernie MARSHALL, Bill Matamata Library McCALLUM, Jim McCAW, John (Jack) McKENZIE, Gwen MEHRTENS, J. Sec. Egmont A & P Assoc. METCALFE, Selwyn

MICKELSON, Mrs K. A. MILLS, Owen MOLESWORTH, Mrs C. MONAGHAN, Ben MONK, Hayden MORGAN, Jennie MORRIS, Derek MORRISON, Colin MURDOCH, Peter and Anne MURPHY, Bernard Nelson Library NEWLAND, Keith O’DEA, Debbie Oamaru Museum/library Opunake Library

Palmerston North Public Library PATERSON, Duncan and Alison PATERSON, Mac PEASE, Malcolm PERSSON, Cynthia PEDERSEN, Paul PETTETT, Anne and John POPE, Keith POPE, Trevor PRATT, Archie PREDDY, C. PROWSE Jeanette PUKE Ariki Staff PURDON, Jenny RANKIN, Allan RHODES, Ron ROBERTS, Morris ROCKELL, Bruce ROSS, Lofty RUAPEHU Press SATTLER, David SCOTT, Len SEFTON, Barry SHEGEDIN, Dave SHEWRY, Rob and Kaye SMILLIE, John SMITH, Roy SOLE, Craig, South Taranaki District Museum South Taranaki Library South Taranaki Star South Taranaki District Council STANDISH, Russell

412

OLD TO BE SECRETS

STANWAY, Harry STEWART, John Stratford Library Stratford Press SUGDEN, Peter SUTTON, Stephen SWEENEY, Bill SYMES, Dawn SYMES, Harold SYMES, Ross and Raewyn SYMES, Tony TACON, Terry TARRANT, John TATHAM, Adrienne Taumaranui Library THWAITES, Jim and Betty

TOOHEY, Laurie TROTTER, Sir Ronald and Lady Trotter VEITCH, Bruce Waitara Public Relations Office WALTER, David WASHER, E. P. Ted WATSON, Dr James WATT, Danny WHELAN, Barry WILLIAMS, Edna WILLIAMSON, Jim WILSON, Ron WOODMASS, Darryl WOODS, Nancy WOOFFINDIN, Peter YSKA, Redmer

Note:

Index of Individuals and Organisations

i. Pages with photographs are bold

ii. Some names are presented without initials. Either the initials have not been recorded in the source documents, or it is unclear which of several individuals with that name is being referred to.

Ackroyd, Bill 198

Adams, G. 267

Adams, Graham 218 Adams, T. 267 Adams, W. O. 181

Adamson, I. D. 296, 313, 325, 333

Adamson, William 113 Adlam, A. J. 157

Afendoulis Posts (Hawera) Ltd 297

Aiken, Suzanne K. 269

Aitcheson, E. C. 227

Alexander A. 45, 46, 147, 174 Alexander, Thomas 335 Alleman, J. 159, 172

Allen Percy William 64, 65 Allen 331

Allen, G. C. 267

Allen, Gordon 219

Allied Farmers’ Co-op Ltd 338, 339 Amon, Lynley R. 270

Anderson and Holland 293 Anderson 90

Anderson, E. W. Miss 267 Anderson, F. H. 131

Anderson, Jack 172 Anderson, Peter 268 Anderson’s 89 Andrew & Beaven 289

Andrew Clement & Sons Ltd 155 Angus, W. M. Ltd 224

Annand Mounted Navvies 126

Ansley, Iris T. 268

Ansley, Sylvia M. 268

Anstey, Philip 385, 393, 396

Antrobus, E. 30

Arbuckle, Rochelle 386

Armitage Draper 43

Armitage 45

Arthur Young & Co. 290-294, 297, 308-331

Arthur, A. H. 89

Arthur, J. B. 77 Arthur, N. A. 131 Ash, T. 134 Ash, Thos. 158 Ash, Tom 40 Ashton 263, 312, 331, 332 Ashton, Geo. W. 153, 157 Ashton, R. M. 267, 281 Ashworth and Liffington 20 Astbury 49 Atkinson, Major Harry 25 Atkinson, R. 267 Attrill, L. T. 252

Austin Distributors’ Federation (N. Z.) Ltd 253

Austin Motor Company 162, 167, 174, 215, 226, 228, 308

Avery 293 Avery, G. (Geo) 251, 252

Babbage 29

Bach 43

Back, Mavis 361 Back, Sue 361 Baddeley and Forlong 20 Bagent, Hec 142 Bailey, D. D. 178 Baker 69 Baker, G. Livingston 81, 307 Baker, J. 46 Baker, J. H. 81, 82 Baker, R. W. 60, 64, 65, 73, 77 Baker, Sheila M. 269 Bale, David W. 391, 392, 393, 396 Bancorp Merchant Banker 367 Barclay 57 Barford, J. F. 111 Barker, C. F. 19

Barkla, James 58-64-73, 76, 97, 102, 105 Barkla, Newton S. 269 Barkla, W. H. 247 Barkley, I. N. (Ian) 251 Barlow, M. K. 267 Barltropp, L. E. 159 Barnard, A. M. 134 Barnard, F. H. 159 Barnard, J. H. 160 Barr, Janette 361 Barr-Brown, Geo. 153, 174 Barrett 326 Barrett, Richard 15 Barrett, W. C. 159 Barrow, Jesse 30 Barry, Mike 390 Barton 30, 152 Bassett, F. R. (Russell) 252, 262, 270 Bate, George 20 Batten 60 Batten, Harold James 58, 59, 64 Batten, Jnr. 57 Batterbee, Sir Harry 179 Bayliss, R. H. 268 Bayly & Co. 109, 110, 111 Bayly G. T. 37 Bayly 31, 32 Bayly, Isaac 28 Bayly, V. L. 160 Bayly, Vicki 386 Bell, A. S. Tiny 142, 158 Bellve, Karen 386 Belton 169, 170 Belton, J. 66 Belton, W. G. 108, 147 Bennett 207 Benson, Peter F. 270 Best 51

OLD TO BE SECRETS NOW

Best, Cliff 219

Best, I. J. (Ian) 251, 253

Bettle, Rick 378, 382, 384

Betts, C. H. 281, 294, 296, 363

Bielawski, Anne 361 Bigham 142 Bilas 309

Bing Kai and Lay Yee 160

Bint, L. A. 267, 358 Bird, F. 81

Bishop, B. N. 267, 341

Bishop, Barry 205, 206, 251, 268 Black, C. 227

Black, F. P. 181

Black, Phil 197

Blackbourne and Smith 89 Blackburn South & Co. 78 Blair 105

Blair, Charlie 218

Blair, J. 187

Blake, Norm 172, 182, 190, 213, 216, 245, 250, 267, 272, 400

Blake, Norman and Joan-Faulkner 122, 272

Bloor, Raewyn 270

Blue Star Line 215, 229, 256

Bluett, Garry C. 400

Blyde P. M. 280, 28, 282, 296, 299, 309-334, 337, 338

Blyde 15, 279, 291, 294

Blyde, Sir H. E. 224, 245, 263, 332 Blythe, D. 187

Boderick, Max 172 Bolger 315 Bolton, Chris 386 Bone, Mrs F. C. 236 Booker, Benjamin 63, 64 Boon Brothers Ltd 224 Boon Ltd 170

Boon 248 Booth McDonald 92 Booth, E. A. G. 267 Booth, Kerry-Lee 395 Booth, Trixie M. 270 Booth, W. 131 Borland, R. A. 296 Bothwicks 215 Bottcher, H. H. 160, 171

Boult, J. C. 228

Boulton, A. T. 267

Bourke 312 Bourke, Frank 172, 319, 331, 334, 337, 358

Bourke, G. 181, 267

Bourke, G. F. J. 267 Bourke, M. B. 181, 183 Bourke, Sandra M. 269 Bowden, A. 134

Boyd, 238, 240 Boyd, J. W. 158, 167, 174, 178 Boyd, Jim 172 Bracegirdle, I. D. 267 Bracken, Margaret A. 270 Bradbury, D. C. 158 Bradle, H. R. 159 Brady, Jeanette M. 270 Braithwaite, E. L. 178 Braithwaite, Lin 197 Bramall, E. J. 77, 131 Bremer Bros. 37 Bremer, A. L. 178, 247 Bremer, Frederick Gustave 64, 261 Bremer, Lyn 204, 261 Bremer, M. P. 177, 245 Bremer, P. G. 177, 209 Bremer, R. L. 281, 294, 295, 296, 313, 325, 333, Bremer, Robert 64, 147, 193, 261 Bremner 133 Brewer, Jack 218 Brewer, Mrs D. 195 Brierley, Sir Ron 367 Brieseman, David 269, 270 Brieseman, Valerie M. 270 Briscoe, E. Noel 271 Bromley, G. A. 181, 182, 183 Bromley, T. 181, 183 Brooke, Rick 361 Brookes, Doug 199, 202 Brophy 211 Brophy, Patrick 177 Brough, C. J. 142, 157, 227, 229 Brough, Joan 172 Broughton, Bruce E. 268 Broughton, G. 267 Broughton, Morris R. 270 Broughton, Patsy 267, 361, 386 Brown J. 41 Brown 60, 312 Brown, Basil 219 Brown, Charles 19 Brown, G. Barr 158 Brown, Garry J. 269 Brown, J. F. S. 158, 182 Brown, John 26, 31, 384 Brown, Mrs 173 Brown, Robert M. 116 Brown, W. 170 Brown, W. A. 142 Brown, W. G. 252, 267 Brown, W. J. 258 Browning, Joan 361 Bryant, James M. 269 Bryant, Nicky 361 Bryson 30, 32 Buchanan Trust 198

Buchanan 81 Buchanan, A. R. 22 Buchanan, D. 30 Buchanan, Kate and Jennie 198 Buckeridge & Co. 54 Buckeridge, George Henry 54 61 64-135, 137, 186, 213, 277 Budd, B. H. 181, 192 Budd, P. G. 153, 157 Budden, Peter 351

Budge A. W. 27 Budge and Good 31, 35, 41 Budge 30 Budge, C. A. 26 Bulfin, P. E. 281, 296, 309-333, 340 Bullock, A. E. 64-71 Burch & Co. 222 Burch 126 Burgess Fraser 351 Burgess 114 Burgess, Terry 219 Burke, C. A. 121 Burke, H. 198 Burke, H. C. 252, 267 Burkitt R. J. Ltd 308 Burnett, Sally 361 Burns 210 Burson, R. 227 Burt, Peter J. 373, 377 Burton, Peter B. 269 Bush, F. S. 160 Bush, Ron 274 Butchart 172 Butler, E. C. 160 Buttress 220 Buxton, Harold H. 64 Byars, G. A. 267, 358

Callaghan, Bruce J. 263, 270 Callender, J. L. 267, 358 Cambie, D. G. (David) 250 Cambist 143 Cameron and Son 45 Cameron, Ronald C. 271 Campbell, A. 57 Campbell, A. L. 64 Campbell, C. H. Ltd 273, 274, 281, 296, 363 Campion & Bolton 221 Campion, J. 26 Candy, H. E. 77, 399 Cann, Susan M. 269 Canning, 46 Canterbury Farmers’ Association 44, 71, 86, 121 Cantrick, Neil 368, 369 Cape Egmont Co-operative Dairy Company 211, 232

Cargill NZ Ltd 259

Carr, Les 203 Carrell, C. F. 158

Carryer, A. T. 252

Carter, James Lewis 269 Carter, T. R. (Trevor) 251

Caselberg, Herbert M. 157, 165, 166, 249, 262

Cashin, Michael J. 78, 378, 382

Catchpole, J. 158

Catchpole, Ken W. 174, 182, 226, 227, 252, 267, 358

Cathey, C. G. 159

Cathie, George 201

Cathie, Ronald M. 225, 226, 229, 232, 234, 235, 239, 243, 248, 249, 255 Cave, Jas. 160

Caverhill, Wm J. 27, 30

CBA Merchant Finance Ltd 291 Cementation Ltd 224

Certificate of Incorporation FCOS 66 Chadwick, 221 Chadwick, A. 159 Chadwick, Arthur 219 Chadwick, C. R. 181, 250 Chadwick, H. 134, 135 Challenge Corporation Ltd 236, 243, 262, 263

Chapman, D. 267 Chapman, E. E. 245

Chas. Luney Ltd 224 Chaytor 238 Chettle E. N. 26

Chisholm, C. B. 251, 269 Chisholm, Charlie 400 Chisholm, S. A. 131 Chittenden, Kenneth M. 270 Chittenden, Lesley 267, 361, 386 Chong, Albert 115, 158, 218 Chong, Chew 55, 112, 113, 114 Christensen, C. 158, 178, 256 Christoffel, W. 26 Chubbin, W. 30 Chumley 309

Church, I. J. 159

Church, Leslie J. 267, 270, 400 Churchill, Sir Winston 178, 180 Claringbold, L. R. 267

Clark A. J. 342

Clark and Rogers 205 Clark, A. G. 77, 123, 131 Clark, D. 252 Clark, J. J. 182

Clarke, B. W. 255

Clarke, F. E. 149, 151 Clarringbold, Roy 197 Cleary 130 Cleaver, Sydney 270

Cleaver, W. 27 Cleland, 127, 169 Cleland, M. 267 Cleland, N. R. 147, 170 Cleland, R. B. 255 Cleland, W. R. 174 Clemoe, 29 Clemoes, J. A. 158 Clemow, A. 172 Clemow, F. 134 Clifford 352 Clifford, E. W. 252, 267, 295, 296 Close, Colleen 267, 386 Clough 97

Clough, Win 267 Clydesdale Horse Society of NZ 187 Cochrane 57 Cochrane, G. 252 Cocker 134 Cocker, J. 212 Cocker, T. S. 245, 255 Coleman, 110, 111 Collie, Stuart 378 Collis 293 Common Shelton & Co. Ltd 250 Conaglen 99 Connett, J. S. 147 Constable, Eric 267 Cook, E.158

Cook, P. L. 267, 332-335, 339, 342, 352, 360, 361, 363, 368, 369, 370, 378, 381, 400, 401 Cooke 15 Coombe, Gail S. 269 Coombe, H. R. 267 Coombridge, Master 64 Coombridge, William Frederick 63, 64, 73, 75, 77, 78, 97 Copper, Lay 172 Corkill, A. 108, 111, 116, 147 Corkill, Steve 361 Corlett, E. J. 281 Corney, W. A. 181 Cornish, Mrs B. 236 Corrigan, A. J. 247 Corrigan, Dorothy 106 Corrigan, James R. 42-47-51, 61-64, 69-97, 102, 104, 106, 133, 137 Corrigan, L. T. 227, 267 Corrigan, Ross and Claire 41 Corrigan, Samuel Bradley 41, 42 Corry 172 Corry, Muriel F. E. 122, 158, 198 Corry, Smithson Eden 122 Couchman, Keith 208 Court, F. W. 149, 151 Court, G. F. 153, 160, 267 Court, R. F. 267

Cowern and Dale 19, 20 Cowern, William 19, 90 Cowie, Garth 378 Cowper and Campbell 76, 90 Cox, Dawson 172, 197 Coxhead 177 Coxon, T. R. 270 Cramp, J. A. 131 Cressey, H. E. 134, 157, 168 Cressey, N. 227 Crichton, J. S. 250, 254 Crown Dairy 72 Crown Finance 315 Crown Group 23 Cruickshank, D. B. 181, 267 Cruickshank, Dave 172 Crutch, Raymond 267, 270 Cullenman, C. 142 Cummings, C. J. 158 Cunnabell, Alexander De Wolf 64 Cunningham, B. 267, 358 Cunningham, Hugh 332 Curry, Wally 350 Curtis, Alfred 270 Curtis, H. B. 109 Cusdin, John 319, 334 Cutfield, H. L. 115

Dairy Board 165 Dairy Products Marketing Commission 165 Dalbeth, G. J. (Grant) 250 Dalgety & Co. 20, 89, 211, 215, 238, 257

Dalgety and Company Ltd 237 Dalgety Crown 292, 293, 295, 298, 304, 306, 309, 312 Darwick, Ric 374

Data General New Zealand Ltd 294 Daunt, Francis E. 270 David, Sadie 361 Davidson 30, 45, 51, 133 Davidson, G. F. 64, 65 Davidson, James 18, 26, 27, 44, 46 Dawrant, J. (Jack) 252 Dawrant, P. (Peter) 250, 251 Dawson, J. 251 Dawson, J. W. 267 Day, Roydon I. 352, 353, 354, 361, 367, 362

De Castro, B. F. 267, 268, 358

Death A. E. 58-64, 73, 108, 139, 177, 192, 193 Death T. H. H. 245 Death 69, 76, 77, 87, 97, 114, 125, 332

Death, E. L. 247 Death, G. George 192

OLD TO BE SECRETS NOW

Death, R. A. 280, 281, 294, 296, 307, 313, 325, 333 Deegan, P. 267

Demanster, Beth 386 Dewson Bros. 169

Dick, W. B. (Bruce) 252, 267 Dickie Brothers 265 Dickie 62, 69, 108, 312, Dickie, Arthur 265

Dickie, Charles Dunsbie 63, 64, 73, 147, 152, 162, 163, 177-191, 210, 212, 213

Dickson 99

Digby, N. P. 121, 130

Dillon, R. J. 158

Dimock, C. L. 158

Dimock, Maurice 135 Dingle, Mrs W. 187

Dingle, R. 30

Dingle, Vivia 187 Divane, Fiona 361 Dive 46, 51

Dive, Bradshaw, 39 Dive, W. E. 26, 27, 28, 29, 30, 31, 33

Dobson, L. N. 267 Dodunski, C. 267 Dombroski, Lee 361 Dominion Motor Vehicles Ltd 92

Donald 109 Donoghue, K. 267

Donovan, M. 26 Downey 309 Downie, H. 30

Downs, C. (Charlie) 251, 267, 271, 312, 400-401

Doyle, Anthony M. 269, 270 Drake, D. 159, 267, 358 Drake, T. E. 158, 181 Drakes T. Store 90 Draper, 43 Driscoll, Peg 168 Duckworth, 30 Duckworth, W. A. 26

Dudley, F. 248

Duffill & Gibson 114, 152, 154, 189

Duffill, J. A. 81, 169, 170 Duffus, George 228 Duke, C. B. 159

Duke, E. E. 130

Duncan and McGregor 65 Duncan, George A. 191 Duncan, J. A. G. 267

Duncan, Jim 227-228

Dunkley, A. 96

Dunlop, Ross J. C. 382, 400 Dunlop 321, 350 Dunlop, Bill 204 Dunlop, R. J. C. 267

Durie, Major 22 Dykes, W. 158

Eastbury, Charlie 203 Eccleton, Collins, Rodney & Co. 237 Eden 351 Eden, E. Alanna M. 242 Edgecombe, Gary 347, 361 Edlin, B. J. 267, 399 Egmont Farmers’ Co-operative Association 51, 52 Ekdahl, P. H. 158

Elders Pastoral Ltd 303-335, 341, 343, 344, 348, 351, 356, 364, 365, 372, 373, 374

Ellen, Victor 361 Ellerm, H. W. 77

Ellingham, W. H. (Bill) 181, 195, 196, 197, 199, 200, 201, 205, 218, 250, 254, 267, 312, 358 Elliot, A. K. M. (Alan) 251 Elliot, Teresa 279 Elliot, W. 267 Ellison 85 Ellison, N. 159 Elliston Motors 308 Elmes, Evan David 269 Eltham Co-op Dairy Co. Ltd 54, 55, 57, 89, 112, 155

Eltham Co-op Dairy Factory Company Ltd 137 Ernst & Young 363 Espin, Vivienne R. 270

Eureka Implements and Machinery Company 92 Evans, F. A. 153, 158 Evans, George 270 Evans, V. 153

Evennett, Derek C. 299, 300-340, 346

Evensen, T. E. 227, 267

Fagan Families 372 Fagan Farmers Ltd 372

Fantham Bros. & Co. 39

Fantham Family 24, 33

Fantham 31, 32

Fantham, A. A. Bert II, 39, 40

Fantham, Arthur Albert 24, 25, 32, 34, 37-43, 52, 163, 384, 401

Fantham, Fanny 25

Farmers’ Auctioneering Company 241, 376

Farmers’ Co-op Auctioneering Co. Ltd 250, 339

Farmers’ Co-op Distributing Co. 257

Farmers’ Co-op Trust Fund 351

Farmers’ Co-op Wholesale Federation 236, 250

Farmers’ Co-operative Federation N. Z. Ltd 297

Farmers’ Co-operative Organisation Societies 59

Farmers’ Stud Stock and Land Co. Ltd 297 Farmlands 327 Farquharson, W. B. 153, 158 FASMacquarie Ltd 303 Fastier, W. S. (Bill) 181, 252, 267 Fawkner, N. 160 FCDC 292

FCOS Finance Ltd 290, 296, 314, 321, 347, 351, 353, 355, 363, 364, 366, 379, 382

FCOS Superannuation Ltd 254, 347, 355

Federated Farmers of New Zealand Incorporated 53

Federation of Dairy Factories 106 Femmell 171 Femmell, C. E. 160 Ferguson, C. 142

Fernz Corporation Ltd 341, 343, 344, 345, 347

Finance & Advisory Services Ltd 338, 341, 344, 346, 386 Findlater, Murray 165, 252, 261, 262, 263, 265 Finlinson, Ronda 361 First National 380 Firth Concrete 209 Fisher, F. Eric 268 Fitzgerald, J. E. 153 Fleming, M. 147 Fletcher Challenge Ltd 297, 309 Fletcher Construction Co. Ltd 224 Fletcher, Mr C. 267 Florence Luckenbach 92 Flynn, J. M. 182 Flynn, Mick 197 Fogarty, Elaine M. 270 Fonterra Co-operative Group Ltd 137, 397

Foodstuffs (Wgtn) Co-op Ltd 347 Foreman 30 Foreman, A. H. 147, 307 Foreman, H. A. 177 Foreman, Thomas 63, 73 Forrest, Peter 383 Forsyth, F. 28 Forsyth, Simon 63 Foster, Geo. 159 Fowler, C. A. Clem 171, 231, 251, 267

Fowler, N. V. 267 Fowler, Neil 209 Fowler, Patrea 361

Fowler, T. G. 159, 181

Fowler, Vera 267

France, J. 142, 229

Franklin, N. C. 182, 192

Franklin, T. D. 158

Fraser, Peter Acting Prime Minister Hon. 170

Frederickson 332

Freeman R. Jackson 19, 20, 23, 35, 257

Frethey, L. 159 Friedlander 315 Frier, G. W. 89

Fryday, W. B. 108, Fryer & Treloar 170

Fryer, Arthur 14, 25, 36

Fryson, A. K. 143

Furlong, W. J. 19, 20

Fyson, A. K. 134

Gabbie, J. M. 158 Gamlin 46, 207 Gamlin, J. A. 252

Gamlin, Jack A. 269

Gane Milking Machine Co. Ltd 92 Gane, Catherine 225 Garner, A. C. 159

Garner, C. M. 178

Garnett, Lorna G. 268 Garvey, Sue 267, 361, 386 Gayton, F. E. 159

Geever 125 George & Doughty 154, 169

Gernhoefer, J. F. 267

Gibbon, Shawn 398 Gibbs, J. 207

Gibson and Patterson 93 Gibson 43

Gibson, Barry 383 Gibson, C. E. 58, 59, 60, 64, 65, 73 Gibson, Gordon 278 Gibson, H. G. 26, 43 Gibson, J. B. 108

Giesbers, William L. 391, 399 Gilbert, Betty 267 Gill, Frances 267 Gill, W. 124 Gillanders 89

Gillies and Nalder 52

Gillies, Arthur William 39, 40, 47, 48, 49, 50, 52, 74, 79, 80, 95, 104, 108, 143

Gillies, Fantham and Nalder 40, 51

Gillies, Robert 47

Gillies, Sir Harold 108

Gillingham, Charlie 202 Gilmour Grocer 43

Girdwood, S. P. Bill 211, 234

Glass, Mira 172 Glenn, G. 30, 32 Glenn, I. N. 158 Glossop, Joy R. 267, 270, 361 Goddard, Justice 259, 260 Goldup, Denise C. 270 Good, A. 26 Goodchap, R. B. 227, 229 Goodchap, Rex 226 Goodson, A. G. 26, 40 Goodson, C. 30 Goodson, M. J. 37 Goodwin & Hooker 90 Goodwin 111 Graeme Laurenson & Associates 248 Graham 201, 238 Grant & Gunn 357 Grant 189 Grant, A. 160 Grant, A. 267 Grant, I. C. 181, 192 Grant, Ian 172 Grant, Jock 201 Grantham 321, 350 Grantham, Chris 267 Gray, Edward Alexandra 64, 69, 73, 75, 97, 108, 358 Gray, Geoff H. 267, 361, 385, 399 Gray, K. W. 227, 251 Gray, Kevin 201 Gray, R. A. 134 Grayburn Contracts Ltd 300 Greaves & Co. 78 Green, R. W. 267, 312, 335, 360 361 363, 385, 390 Greiner, Brett 361 Greiner, Jean 361 Grenside, John 335, 360, 363 Griffiths, G. & Co. 89 Grimes, Stella G. 269 Groves, T. H. 134 Guardian Royal Exchange 258 Guardian Trust 155 Guerin, J. 44, 46 Guise, Ian 369, 370 Gwynne 102 Gwynne, George 63, 64, 73, 105, 108

Hair, Rob 127 Hale, W. T. 160 Hall, George Blandford 63, 64 Hall, Hector 269 Hall, M. M. 182 Halliwell & Sellar 65, 362 Halliwell, H. 64, 65, 66, 70, 76, 77, 78 Halliwell, Robertson and Blair 73 Halliwells 189, 342 Halton 294

Halton, J. A. 281, 296, 313, 325, 333 Hamblyn, J. 227 Hamerton, Brian 319, 333 Hamilton, L. R. 26 Hamilton, R. B. 28, 30, 32 Hammond, A. H. 158 Hammonds, Russell 209, 267, 269, 358

Hankins, Herbert J. 65 Hanover, Yvonne 361 Harding, Audrey 196 Harding, Joan 361 Hardy, R. M. 116, 159 Harford, L. 227 Harlow, W. F. 181 Harris, C. W. 182 Harris, G. W. 160 Harris, H. E. 159 Harris, J. N. 252 Harris, Joan 269 Harris, John N. 269 Harris, Noreen A. 271 Harris, Paul R. 316, 317-332, 337354, 360, 361, 363, 368, 369, 370, 378, 379 Harrison, P. M. 77, 123 Harrop, Trevor J. 267, 289, 290-300, 311, 313, 325, 333, 334, 339, 340, 344, 349, 360, 361, 363, 369, 382, 385, 392, 396 Hart, C. R. 160 Hart, J. Anne 270 Hart, John 153, 159 Hartill, R. J. 142, 158 Hartnett, Rev 98 Harvey, D. J. Don 319, 331-336, 339, 342, 350, 360, 363, 368, 370 Hastie 30 Hawera Co-operative Dairy 106, 191, 225

Hawera Dairy Company 90 Hawera Star Publishing Co. Ltd 236 Hawke, R. G. 158 Hawke’s Bay Farmers’ Co-op Assn Ltd 250 Hawken, C. 45 Hawken, O. J. 26, 46, 51 Hayman, P. A. 181 Hayward, R. H. 267 Hazard, Doug 339, 344-350, 354, 355, 360, 362, 365, 367, 369, 370, 371, 375, 380, 386 Headley, Helen L. 271 Heath, Paul 348, 364 Heaton Rhodes, R. 80 Hedditch, John 171 Heika, Kevin J. 268 Henderson, R. R. 177, 178

SECRETS

Henderson, Ray 172

Henderson, T. C. (Lofty) 204, 206, 250, 267

Hendrick, F. G. 267, 312

Henry Lane and Co. 54, 83, 100, 137 Henson 44 Herbert, J. H. 159 Herbert, Thomas 64

Hewitt W. A. 139, 144, 145, 147, 148, 150-157, 162, 173, 177 Hey, Morris 330 Hicks, 44, 29

Hicks, Bruce N. 267, 270, 361, 365, 400

Hicks, Pamela L. 270 Hicky, M. 267 Hignett, A. L. 160 Hill, Colin 208 Hill, I. M. 181 Hill, Ivan 171 Hill, Len 160 Hills Store 220 Hills, Doug 219

Hine, F. J. 121, 131

Hine, J. R. 66

Hiscox Livestock 372 Hiscox, Alan 372, 373, 382 Hitchcock, L. T. (Lyall) 251

Hobbs, J. C. 26, 77, 99, 113, 115, 134, 143

Hobson 352 Hobson, G. M. 254, 281 Hodder and Tolley Ltd 255 Hodge 151 Hodkins and O’Neill 277 Hokopaura, Bernice P. 270 Holden, R. G. 252 Holder, G. A. 77, 79, 95, 120 Holland, B. 383 Hollard 60, 62 Hollard, George 64 Holmes 332, 333 Holyoake, Sir Keith 233 Honey Producers Association and Beekeepers 90

Honey, A. A. 158

Honeyfield Cecil Reginald 64, 147, 170, 177, 209, 212, 213, 224

Honeyfield 225

Honeyfield, E. R. 158, 192

Honeyfield, Edmund Morgan 224 Honeyfield, Gladys 198

Honeyfield, I. 247

Honeyfield, Jim 172, 198, 200

Horner and Burns 177, 189, 297, 362 Horner 236

Horner, Fred W. 174, 186 Horner, K. A. 322, 335, 340, 342

Hoskin, Sorrel 127 How, H. C. 251, 267 Hucker, L. 267 Huff, Janet 269 Hughes, Ronald G. 269 Hughson, Gordon 332 Hull, Francis 108 Humphrey, Andrew 158, 268 Humphrey, J. T. 158 Humphrey, Jim 172 Humphrey, W. C. 158 Humphries, W. (Bill) 251, 267

Hunger 57

Hunt 312

Hunter and Nolan 21 Hunter 29, 36, 77, 78, 87, 97, 152

Hunter, Alex 26, 27, 73, 75, 76, 83, 92, 108-192, 386

Hunter, Bell 92 Hunter, Clarry 361 Hunter, Eric Moore 187 Hunter, G. 134 Hunter, J. 187 Hunter, K. (Ken) 251, 267 Hunter, Moore 26, 28, 32, 35, 37, 187 Hunter, Sergeant-Pilot Hamish 187 Hurcomb Mrs 366 Hurley, Kayleen 361 Hurley, T. J. 247 Hurley, Trudi 361 Hurliman, Lou 361 Hurrican Wire Products 347 Hutchinson Pumps and Rams 92 Hutchinson, Alistair L. 338 Hutchinson, G. F. 89

Illston 364 Inglewood Co-operative Bacon Company 173 Ingram 278 Inkster, Gideon 28, 30, 32, 34, 35 Inman and Coy. 19 Innes 30 Innes, N. 123 International Harvester Company 66, 92, 167

Invercargill Wool Dumpers 367 Irish Agricultural Society 86 Ironside, Samuel 15 Irvine, W. D. 30 Irving, J. E. 267 Ivon Watkins-Dow Ltd 348

J. O. (Joint Organisation) Wool Marketing Scheme 214 Jacka, H. E. 159 Jackson, Bob 197 Jackson, L. E. 77, 96, 97, 100, 131

Jackson, Peter 395 Jackson, R. C. 181, 183 James, S. M. 245 Jamieson, 294 Jamieson, T. J. 296, 313, 325, 333 Jefcoate, C. F. R. 153, 160 Jenkins, W. P. 182 Jennings, Lynnette 271 Joblin, G. R. 192 John F. Jones 373, 374 John Marshall Ltd 385 Johnson, Bob 202 Johnson, C. H. 181, 267 Johnson, H. E. 236 Johnston & Co. 257 Johnston, A. 30 Johnston, Diane 361 Johnston, Mayor Noel 319 Johnstone, Archibald Christopher 63 Joll, B. L. 131 Joll, Bruce 77 Jones and Sandford 224 Jones 125 Jones, E. 267 Jones, Owen 171 Jones, S. 267 Jones, Vie 172 Jones, W. M. 64, 73, 111, 116, 147 Jones, William 63, 177 Joyes, Robin 115 Judd, H. 113, 114, 115, 123

Kalimantan Estates Ltd 368, 369 Kalin, R. 227 Kaupokonui Co-operative Dairy Company 100, 232, 253 Kavanagh, 312 Keene, M. G. 262 Keith, Les 208 Kellick 279, 333 Kellick, A. R. 281, 296 Kelliher, Brian M. 268 Kelly, D. 263 Kelly, John 393 Kelly, M. 267 Kemp, R. A. 181, 192 Kennedy, P. 227 Kennedy, W. L. 126 Kerston, Herman 361 Kidney, Fay D. 268 Kilminster, Tom 335, 341, 361 King, Max D. 20 King, Thomas 21 King, V. 267 Kingston, C. M. 159 Kirkwood 169, 170 Kiwi Co-operative Dairies Ltd 100, 137, 253, 318, 332, 351, 362, 367

Knott, John 341

Knowles, H. 173 Knowles, Wayne 361 Knuckey, J. R. 150 Kowin, James 83 Kruse, R. H. 267

L. A. Nolan and Co. 90

Laird, L. C. (Joe) 332-342, 347, 361, 368, 370

Lambert, Rudolph I. 270 Lambie, J. 28, 44 Lambie, R. 45, 46 Lander, A. G. 267

Lander, Gordon 168

Langdon, C. E. 181, 182, 192 Langdon, E. 172

Lange, Prime Minister David 236 Larcom, Andrew 224, 235

Larmer, L. J. ( Laurie) 181, 251 Larsen 238 Lasey, F. 142

Laurence, W. R. 263

Laurence, George 177 Laurenson, 220, 221, 223 Laurent 72 Law, 217, 236, 244 Law, Don 124

Law, J. D. 191, 234, 245 Law, James D. 208 Lay, L. G. 181

Leahy, D. T. 99

Lee, Tom and Mrs, 112

Leece, R. H. 92, 93, 187, 225 Lees, T. 126, 262

Lenz, Alf 172, 200, 219 Lester 171 Lester, D. K. 181 Lever, J. F. 109 Levin & Co. 257

Lewes, Llanfair (Lank) 205, 231, 250 Lewes, N. 134 Lewes, Noel 158 Lewes, R. L. 267

Lewis, D. 227 Lewis, D. A. 158, 181 Lewis, K. J. 267 Lewis, L. G. 158

Lewis, O. 267

Lewis, Ron D. 268

Lile, Wm. 109

Lind, J. 81

Lister, Leo A. S. 269

Lithgow, R. A. (Roy) 267, 316, 317336, 339-344, 363, 368, 369-371

Livingston 51

Livingston, F. 46

Livingston, James 27, 30, 37, 44, 385

Lobb, A. J. 160 Lockhart, 79, 111 Lockhart, S. 98, Londsdale J & J and Co. 62 Long, E. 146 Longbottom. A. 253, 267, 358 Longstaff, A. S. 181 Looney, A. 247 Loughlin, John J. 260, 267, 384, 387, 388, 393, 394, 395, 396, 400, 401 Lovell and Christmas 62, 83 Lowther, Alice G. 270 Lucas, Peter 219 Ludemann, W. 207 Luscombe, B. M. 267, 361 Luscombe, P. 267 Luscombe, Philip C. 400 Lye, Frederick 63 Lynch, C. 267 Lynch, F. W. J. 160 Lyndon, R. G. 251, 267, 358 Lynskey, M. J. 121, 143, Lysaght, B. C. 45, 46, 108, 147 Lysaght, J. R. 26

Macfie, Paul A. 377, 378, 382, 384, 397, 398 MacGrath, Christine 269 MacKay 109, 117 Mackay, Paul J. 269, 270 MacMillan, I. 252 Macrae, E. 32 MacReynolds, M. J. 37, 98 Madgwick, Heather 361 Magnus Motors Ltd 167 Mahoney, K. P. 134 Maindonald, Milton W. 269 Makesey, C. E. 131 Malcolm, R. C. 269 Mallon, John D. 392 Management Services Ltd 296, 299 Manaia Building and Investment Society 394 Manaia Farm Centre 351 Manawatu Livestock Ltd 383 Mann, Bernie 202, 203, 205, 206, 218, 250, 263, 267 Marchant, H. H. 77, 123 Marfell 125 Marfell, Bill 361 Marfell, E. 147, 229 Marfell, L. 245 Margan’s Ltd 238, 239, 240, 242 Marshall, Joan G. 268 Marshall, Mavis E. A. 269 Marshall, W. G. 182, 250, 252, 262 Maslin, F. M. 160 Mason, E. L. 153

Mason, J. 27 Mason, Struthers & Co. 92 Massey, Prime Minister William Ferguson 88 Mathieson, Ella 172 Matthews and Gamlin 78, 109, 115 Matthews, 343 Matthews, Lewis J. 269 Matthews, Sholto 307 Maul, K. G. (Ken) 251 Maxwell 66 Maxwell, E. 37 Maxwell, L. S. & Co. 90 McArthur and Co. 21 McAsey, B. 227 McBeth, Gary 279 McBride, Anne 361 McCallum 229 McCallum, E. W. 233, 236, 244, 245, 246, 249 McCalman, D. J. 134 McCarthy Mrs 199, 202 McCarthy 211 McCarthy, Francis M. (Dot) 199, 201, 202 McCartie, C. R. 126 McCaw, John (Jack) 19, 20 McCay, Bob 197 McClaren, Audrey 172 McCormack, A. 159 McCracken, C. 27, 30 McCracken, T. C. 28, 29 McCullough, E. W. 153, 160 McCutchan, C. 126 McCutchan, Nora 271, 361 McCutcheon, W. 20, 30 McDonald, Emma, 112 McDonald, I. 227 McDonald, J. 109 McDouall Stuart Securities Ltd 382, 397 McDouall, G. Andrew 382, 400 McDowell 334 McEldowney, J. A. T. 281, 296, 313, 322, 325, 333 McGlasham, Betty 197 McGorrey, Dave 209 McGovern, M. 227 McGruer and Bone, 52, 80, 154 McGuire, Felix 20 McIlwraith, 312 McIntyre, G. 182 McKenzie, A. 90 McKenzie, Donald 268 McKeown, 45, 46, 51 McKinnon 172 McKinnon, J. G. 158 McL. Boyd Ltd 239

McL’Dowie, W. L. 236 McLachlan 309 Mclean and Broadbent 19 McLean and Coy. 20 McLean Motor Car Act 1898, 91 McLean 57 McLean, C. J. E. 181 McLean, Geo. 28, 30, 31, 32 Mclean, Lachlan 136 McLean, Sir Douglas 187 McLeod, Don 219 McLeod, Hughie 127 McLeon & Slade 222 McMahon, Frank 55 McMillan, J. J. & Co. Ltd 224 McMurray, B. 267 McNab and Co. 126 McNichol’s 72, 74 McQuire, F. 30 McWilliam, F. R. 153 McWilliam, 25, 182 McWilliam, H. 163 Melody, A. E. 159

Menzies, Prime Minister Robert 178 Meredith, C. 126 Metcalfe, Selwyn 380 Meuli, N. G. 178 Meuli, Nelson 172 Meuli, Pauline 361 Mickelson, Jack 209 Mickelson, Kate A. 97 Middleton, D. J. 158 Mildenhall, T. J. 96 Miley, Charlie 127 Miller, H. 45, 46 Mills and Sparrow, 62 Mills, Jim 361 Mills, O. A. 360, 363, 365, 399 Mills, Pat 361 Mitchell 30 Moa Dairy Company 173 Mobil Oil (NZ) Ltd 347 Molesworth, Tom F. 165, 250, 254, 261-264, 266, 267, 272-280, 287, 293, 295, 296, 298, 299, 299, 317, 359

Moller Johnson, 321 Molloy, Joe 168 Monaghan, B. A. 227, 267 Monier Tile (N. Z.) Ltd 300 Monk, Hayden 399, 400 Monteagle, Lord 85, 86 Mooney, J. V. B. 192 Moore, A. H. 89, 96, 97, 98

Morgan 167 Morrisey 154

Morrison, Colin W. 267, 318, 334, 335, 339-352, 356, 360, 363, 373, 374, 382, 385, 390 Morrissey, C. E. 134 Morrissey, F. 26 Morse, 312 Moss, A. M. 251, 253, 267, 281, 296, 358

Moss, Cyril 211 Moyes, P. S. 159 Moyle, Colin (Min. of Ag.) 315 Muldoon, Robert (MP) 339 Mullen 312 Mullins, A. 158 Murdoch, P. A. 307, 313, 325, 333 Murdoch, R. Neil 269 Murphy, Bernard 124 Murphy, E. 160

Murray Roberts 257 Murray 46 Murray, N. 227 Murray, Roberts & Co. 90 Mutual Life & Citizens Assurance Company 90, 223

N. Z. F. Co-operative of Canterbury 49

NZ Farmers’ Co-op. Assn of Canty. Ltd 250

NZ Farmers’ Fertilizer Co. Ltd 344 Nairn 142

Nalder, Ernest Edward 26, 40, 77, 99, 104

Napier Wool Dumpers 1997 Ltd 259 Nash, Walter MP 164, 165, National Dairy Association 189 NDG Pine 384 Neal, W. (Biff) 171 Neal, W. J. 267 Nees 171 Nees, D. 250 Nees, L. J. 183 Neil Shaw Ltd 279 Nelson, M. S. 192 Nelson, R. H. 252, 267

New Zealand Co-op Dairies 367 New Zealand Dairy Company 374 New Zealand Farmers’ Co-op Distributing Co. Ltd 241, 250, 258

New Zealand Farmers’ Union, 53, 54, 56, 96, 137

New Zealand Insurance Co. 90 New Zealand Loan and Mercantile Agency Co. Ltd 22, 35, 96, 98, 110, 124, 125, 145, 163, 164, 173, 184, 185, 203, 207, 209, 225, 257, 377

New Zealand Sheep Owners’ Federation 187 New Zealand Shorthorn Assn 187 New Zealand Wool Board 191 New Zealand Wool Disposal Commission 220 New Zealand Woolbrokers Assn 190 Newell, Donna 361 Newell, L. J. Len 247, 261 Newell, Len 204 Newland, 352 Newland, Earle, 198 Newland, Keith 37, 128, 195, 200, 202, 206, 250, 267, 281, 295, 296, 358

Newland, Ted 128, 160, 200

Newton King Ltd 21, 23, 35, 51, 78, 92, 98, 116, 117, 124, 145-148, 155, 163, 164 173, 203, 207-209, 238, 248, 255, 257, 262, 264, 285, 359

Nichol, J. G. 77, 121, 134, 144 Nicholls, Lindsey, 261 Nicholson Gribbin 342 Nickson, Neville 219 Nix, K. G. 267

Nixon and Coy. 20 Nixon, E. A. 77, 123 NMA Co. of New Zealand Ltd 372 Nolan Tonks and Co. 31, 35, 36, 37, 41, 51, 95 Nolan 99 Nolan, M. 158 Nolan 22

Nolan, R. H. 18, 22, 26, 154 Nolan, Sir Robert Howard 21, Nolan’s Buildings 152, 155, 220, 224, 279, 281, 296, 380 Nolan’s Estate 154

Nops, P. G. 90 Norgate, F. W. 211 Norgate, Irene 271, 361, 365 Norgate, R. 267

Norman, J. P. V. 281, 294, 296, 313, 325, 333

North Auckland Farmers’ Co-op Ltd 339, 376

North Otago Farmers’ Co-op Assoc, Ltd 47, 50, 74, 250

Norton and Caplen 93 NRM Feeds Ltd 347 Nuttal, Alf. 159

O’Brien 312 O’Brien, Pat 361

O’Callaghan, W. O. 26, 73 O’Dea 211 O’Dea, Gill 386

O’Dea, Patrick 66

O’Donoghue, M.181

O’Grady, W. 229, 267

O’Leary, H. C. P. 182

O’Leary, Kevin 209

O’Shanassy 295, 296

O’Sullivan, J. 26

Oakes, Sydney Jack 270

Oakley, P. J. 158

Oakley, Phill 172, 178, 190

Ogle 57

Old 164

Olsen, E. 207

Olson, Janice E. 268

Opawa Investments Ltd 378

Opunake Harbour Board 98, 209 Orsborn, H. J. 227

Otago Farmers’ Co-op 136, 250

Oughton, J. J. 247

Owen 51

Owens, Jean M. 269

Pacey, Alma E. 270

Page 183

Palmer and Gray 90 Palmer, C. 158 Palmer, I. B. 159

Palmer, J. E. 147, 170, 177

Palmer, Percival 63

Parfitt, Jos. 159

Paris, A. C. (Alan) 250 Parish, L. T. 227

Parker 206

Parkes Frances 361 Parkes, R. E. 159

Parkinson, W. A. & Co. Ltd 149

Parley 109 Parli, Reg 219

Parrington, C. 30

Parsons 32

Parsons, Barney 361 Parsons, T. 28, 31, 32

Partington, Des 219

Partridge, F. G. 153, 159

Partridge, Fred 116

Patea Freezing Works 199, 201, 281

Patea Harbour Board 257

Patea Oil and Fibre Co. 24

Paterson Blacksmith 43

Paterson, Mac 208

Paterson, Robert 207

Paton, L. P. 160

Patterson, J. R. 90

Peacock, G. T. 267

Pearce 80

Pearce, A. 267

Pearce, G. V. 37, 45, 46, 51, 167

Pearce, W. V. 28

Pearson, M. 383 Pease J. 113, 245, 331 Pease, J. F. 45

Peck, Bill 127

Pedersen 312, 326, 330

Pedersen, P. R. 314, 316, 319, 332, 335, 336, 339, 342, 347, 360, 361, 363, 368, 370

Penny, H. R. 247

Perry, A. H. 126

Perry, J. L. 28, 32

Persson, Cynthia 242, 351 Peters, Andrew H. 270

Petersen, Peder Jens 63, 64, 70, Peterson 103

Peterson, H. and Co. 119

Peterson, J. 227

Petrie, W. W. 182, 227, 252, 267, 358

Pettett, A B. 267

Pettett, Anne 361

Pettett, John and Anne 115, 227 Pettigrew Miss 171 Pettigrew 99

PGG Wrightson 375, 395 Phillips, James John 270 Philpott, B. L. 267

Picard, Maurice J. 269 Pickering, Sagar and Leece 91, 92

Pickles, E. 160

Pickup, Dennis 389 Pilcher 29

Pine & Co. 121 Pittams, H. 126

Plank, R. J. 134

Plimmer, Sir Clifford 243 Plunkett, Sir Horace C. 55, 59, 85, 86 Pollard, Charlie 209 Pollock, Phillip 269, 270 Polson 151

Pope, Trevor J. F. 272, 273, 279, 281, 287, 290, 291, 296, 298, 300, 334, 339, 360, 361, 362 Popenhagen, Lois 219 Porter & Martin 223, 224 Porter, R. 163

Potheroz, William 40 Potroz 279 Potroz, J. 267 Pound, George 92 Powdrell, 132, 133, 134, 135 Powdrell, G. W. 153, 158 Powdrell, W. D. 26 Powdrell, Walter 104 Powell 171 Powley, Rex 378

Poynter, Mayor Chas 385 Pratt, Allan 361 Pratt, Roy 202, 203

Pratt, S. 57, Preece, G. 108 Preo, F. C. 160, 172, 182, 267, 358 Prestidge, Rosemary O. 271 Prestney, O. 267 Pretty, Dave 127 Prime Finance Ltd 389 Progressive Enterprises 321 Pruden, J. (Jack) 251 Pycroft, P. A. John 269 Pyne Gould Corporation 367, 385

Quayle, Andrew 392, 393 Quin, J. T. 44, 45, 46, 140, 150 Quin, Karen M. 271 Quin, L. 114 Quinlan and Mander 23 Quinn 172

Ramsbottom, C. J. 159 Ranford, George 172, 204, 380 Rankin, Allan 94, 138, 139, 159, 167, 168, 169, 266, 267 Rankin, C. A. B. 159 Ranoch Burnlee Trust 127 Rapson, Alexander J. 269 Rawson Hodgson and Co. 62 Raymaley, R. A. 184 Rea, K. R. 267, 269 Read, Patricia M. 271 Reading 172 Reardon, Patricia A. 269 Reid, 169 Reid, Florence, 123 Reid, J. M. 77 Reid, J. N. 158 Relph, E. W. 121 Rich, G. D. (Geoff) 251, 267 Richards, W. 73, 102, Richards, D. 108 Richards, H. 105 Richards, J. B. 66 Richards, J. M. 268 Richards, Joanne 393 Richardson 312, 314, 326, 330 Richardson, Joe 19 Richardson, Ross 319, 368 Rickard, R. M. 157, 166 Riddiford, F. 27, 28, 30, 31 Rider, D. E. 255, 280, 281, 291, 294, 296

Riley, Janine 361 Robb, Jean 172 Roberts, E. K. 159 Roberts, Morris 351 Robertson 30 Robertson, D. F. 158, 182, 192 Robertson, Don 172

Robertson, J. 81

Robertson, J. A. 247

Robertson, John 28

Robertson, W. 26

Robinson, I. L. 2678

Robinson, Ivor L. 269

Robinson, Sam 388

Robinson, W. 227

Robinson, W. G. 268

Robinson, W. H. 64

Robinson, William Herbert 63 Robson, Jas. 160

Robson, V. T. 159

Roebuck Construction Co. Ltd 224

Rogers, George W. 362, 363, 369, 370

Ronald Shaw Properties Ltd 240

Rooney and Co. 126 Rosevear 238 Roskruge 30

Ross, Alan (Lofty) 258, 259, 268 Rothery, R. J. 159

Rowe, G. W. 160

Rowe, Shane 361

Rowe, Wm. 28, 30

Royal Exchange 90, 176, 236 Rudge, Molly 271

Russan, E. 159 Russell, A. H. H. 182

Russell, J. 268 Russell, N. S. 158

Rutherford, F. A. 182, 192 Rutherford, L. J. 159

Ryan, A. M. (Max) 251

Ryan, D. J. (Denny) 251, 268 Ryan, Pat 361

Saddler 43

Sadler, Bill 168-197

Sadler, S. I. 181

Sainsbury, D. 227 Sainsbury, J. 227 Salisbury, J. D. 268

Salmon, Jack 139, 266

Salmon, T. J. 123, 128, 159 Salt, 258

Salter, A. L. 181

Sargent, F. L. 181, 192 Sarten, C. R. 207, 245 Sarten, D. B. 281, 296, 307, 313, 325, 333

Sarten, Fred 177 Sarten, M. 268

Sarten, R. 255

Sash and Door Co. 130

Sattler, D. 268

Savage, Prime Minister Michael Joseph 164, 178 Schmidt, A. C. 153, 159

Schrader, Catherine A. 271 Schuler, Margaret A. 270, 361 Schweiter, 126, 172 Scobie, Ann 172 Scobie, William 269 Scott 30 Scott, Duncan MacDonald 63, 64 Scott, Jack 106 Scott, Thos. 28 Scown, Sonia B. 271 Sefton, B. 268, 341, 365 Self, Michael 325 Sellers, J. H. 45, 46 Shaw, E. 163, Shaw, K. H. 268 Shaw, M. 268 Shaw, Michael 361, 386 Shearer, W. 30, 33 Sheehan, Patricia A. 270 Shepard, Dick 172 Shepard, W. L. 181, 182, 192 Shewry Bros. 126 Shewry 124

Shewry, J. E. (Ned) 126, 127, 153, 208, Shotter 62

Shotter, John Morris 63, 64 Shove 30 Shrimpton, L. B. 159 Silby, J. K. 90 Silson, Bill 116 Sim, J. B. 54 Simon, George 203 Simpson, 60, 62, 69 Simpson, David 338-350, 354, 360, 365, 369, 370, 376, 386 Simpson, Joseph Bell 63, 64, 108 Skedgwell, William 64, 73, 102, 105 Skemp, R. 219 Skinger, H. 227 Slater, B. V. 252 Slater, Harold 153, 160, 172, 194, 195, 199, 200-205, 218, 231, 247, 250, 251, 268, 270 Slater, Pat 209

Slinger, H. F. 268 Slinger, Pip 358 Smart 312 Smart, Margaret May 270 Smart, S. 142 Smeaton, D. 182 Smith, A. 268 Smith, Ada 268 Smith, Arthur, 199, 204, 205, 218, 243, 244, 250, 254, 255 Smith, Ern 219 Smith, J. A. 268 Smith, J. S. B. 268

Smith, John 266, 267, 359, 361 Smith, L. 126 Smith, Leslie James 269, 270 Smith, Lyall B. 239, 240, 243, 244, 245, 247, 248, 250, 255, 263-265 Smith, M. 268 Smith, Mrs A. E. 268 Smith, Mrs H. 187 Smith, Mrs Irene 268 Smith, Spencer K. 172, 270, 268 Smith, W. F. 158 Smithfield 28 Snelling, F. J. 159, 178, 190, 208 Snowline Marketing (NZ) Ltd 297 Snushall, S. T. 157 Sole, Craig 359, 360, 361, 363, 382 South British 90 South Port New Zealand Ltd 367370, 378, 379 South Taranaki Winter Show Company Ltd 52, 79, 188, 189 Southcombe, T. 227 Southen, Ben 395

Southern Union 90 Southland Farmers’ Co-operative Assn Ltd 250, 367 Southland Regional Council 368 Spanish Flu 132 Speciality Machinery 301, 308 Speck 207 Spedding, W. M. 215 Speirs Finance 394, 396 Spence 43 Spence, R. 268 Spence, W. 45 Spice, Clifford G. 270 Spilman 352 Spilman, I. B. 251, 253, 281 Spratt, H. 57 St. George, Dr George 148 St. Hill, C. L. 90, 131 Stainton, P. 223 Standford, Kathleen P. A. 271 Stanford, John 361 Stanners, T. C. 137 Stanway, Harry 395 Steffenson, Pam 361 Stening, W. N. 268 Steuart and Corrigan 19, 35, 41, 51, 124

Stevens, F. W. 100 Stevenson, J. N. 159 Stevenson, R. M. 182 Stewart, A. J. 268 Stewart, Barry 206 Stewart, J. R. & Co. 51 Stockwell, D. M. (Don) 250 Stohr 99

Stott 30

Strang, Mike 385

Stratton, J. V. 158

Street, Alan 219

Sturroch, J. 142

Sturtevant, A. V. 52

Such, G. M. 243

Sugden, Mildred 270

Sutcliffe, Myles 209 Sutherland, A. 28

Sutton 30

Sutton, H. S. 160

Sutton, P. Fay 269

Sutton, S. 268

Sutton, Stephen 382

Sweeney, Bill 374, 382, 385 Swindlehurst, 105, 125

Symes 62, 75

Symes, Albert Edward Thorley (Bert) 65, 147

Symes, Alfred Francis Morgan 65 Symes, Bert 19

Symes, Francis Alfred and Mary 63, 65, 73

Symes, G. 30 Symes, T. A. 182 Symes, W. C. 37

Symon, Peter B. 268

Tacon, Terry 388

Tait 314

Tait, S. R. 142

Tangipo, Joseph 271

Tanner, C. V. 268

Tanner, Charlie 358

Taranaki Automobile Assoc. 225

Taranaki Farmers’ Mutual Fire Insurance Assn. 78, 90, 122

Taranaki Farmers’ Union Land and Estate Agency 54

Taranaki Farmers’ Wholesale Ltd 214, 220, 254, 281, 296

Taranaki Harbour Board 224

Taranaki Winter Show Co. Ltd 74, 136, 153

Tarr, B. 227, 228, 252

Tarrant, 43, 57, 278

Tarrant, C. 56, 58, 59, 60,

Tarrant, Charles Cleverley 57, 64, 65, 277

Tarrant, Thomas and Maud 277

Tarrant, Thomas Cleverley 57, 245, 255, 264, 267 268, 277, 280, 281

Tasman Pulp & Paper Co. Ltd 236

Tayler Scrivenner & Co. 90 113

Taylor C. G. Trust 274

Taylor 62, 63, 70, 321

Taylor, George M. 110, 158

Taylor, H. J. 181

Taylor, James Ogilvie 63, 64, 69, 72, 102, 103, 105, 108

Taylor, P. 282, 283, 284, 285, 291, 308, 309, 327, 331 Taylor, R. N. 273, 276, 277 Taylor, Thomas 121, 143, 144, Taylor’s Dairy 42

Te Kuiti Meat Processors Ltd 371, 372, 382, 384 Tecofsky, G. 158 Tecofsky, R. 227 Teir, B. 227

Terry, Brian 208 Terry, T. G. (Trevor) 251 Thatcher, Allan 268, 270

The Wool Company Ltd 260 Thomas, B. W. 181 Thomas, Barbara N. 271 Thomas, Brian 172 Thomberson, Ann 172 Thompson, A. 187 Thompson, G. 268 Thompson, Jas. 46 Thompson, P. 207 Thompson, P. G. 209 Thompson, Snowy 206, 209 Thomson and McGuire 19, 20 Thomson, Glen 361 Thomson, W. Vaughan 269 Thrush, R. 182, 197 Tibby 239 Tibby, A. W. 255, 281 Tindle, Geo. 51 Tippett, I. 268 Titokowaru 17 Todd 312 Todd, David 63, 64, 69, 70, 73, 98, 103, 111, 116, 173, Tombleson, F. 182 Tonks, Arthur Sydney 22, 26 Tonks, Benjamin 22 Toon, J. H. 227, 268 Tosland J. S. 105 Tosland, 133

Train, B. A. 268, 312-333-386, 360 369 378 Tremain, Ngaire 209 Treweek, F. J. 26

Trial Run Holdings 371 Trotter 333 Trotter, Anne 236 Trotter, Clement George 122, 136 172 235 247 222 235 247, 258, 297, 335, 358 Trotter, G. W. 160 Trotter, James 236 Trotter, Jim 196

Trotter, John and Margaret 136 Trotter, Sir Ronald 136, 165, 236, 243, 262, 263, 297, 298, 309, 329 Troupe, Annie 42 Tucker Wool Processors Ltd 259 Tucker, Wilfred J. 270 Tuckett, A. J. 252 Tulloch, Daisy 172, 198 Turnbull, A. H. 89 Turner G. C. 369, 370, 371 Turner, H. T. 30 Turner, W. H. 153 Turton, J. A. 46, 66, 73, 102, 105, 122 Twist, Clause 116 Twist, M. C. 160

Uncles, S. W. 252, 268 Uniacke, F. P. 123 United Stores Society Ltd 297 Upson, Kevin Neil 269 Ure Murray, J. 45, 51 Urwin, T. A. 220 Uttinger, C. 198

Veitch, B. D. 255, 279-282, 291, 296, 313, 315, 325, 331-333 Veitch, R. W. D. (Richard) 251 Velvin, N. D. 181 Verbeet, Irene E. 270 Vestey’s 215, 229 Vickers and Stevens 115, 207

Wackrow, K. G. 252 Wackrow, Stephen 279 Wagstaff, H. S. 159 Wagstaff, Stan 138 Waikato Farmers’ Co-op 72, 74 Wakefield, Edward Jerningham 15 Walden, C. J. 158 Walden, E. J. 153 Walden, T. J. 268, 269, 270 Waldsorf, Evan 172 Walker, 19 Walker, Bruce 209 Walker, Cornelius G. 269 Walker, G. 130 Walker, H. G. 159 Walkinton, Guss 37 Wallace, Allen 269 Waller, Len. J. 268 Wallis, R. J. 158 Walsh, Kevin 399 Walter Hill & Sons 257 Wanganui Wool Dumpers Ltd 259 Wano, J. 268 Wano, M. J. 268 Ward 30 Ward, F. 155

SECRETS

Ward, Ted 209

Warren 312

Watkins, Fryday 199, 203 Watkins, L. 281, 296 Watson, J. E. 303 Watt, A. 252, 268 Watts 235 Watts, W. G. 215 Watts, Wilfred 168 Webb Livestock 383 Webb, F. A. 268 Webb, Fred 168, 358 Webb, Frederick A. 270 Webb, Phillip and Jill 383 Webber, R. 268

Webster and Dobson 124, 128 Webster Brothers 21 Webster, Bill 124 Webster, D. 192

Webster, G. C. 159 Webster, J. D. 181 Webster, Wiggy 172 Websters and Hulke, 137 Weddel and Co. Ltd 39, Weddel Group 371 Weir 102

Weir, Marie 361 Weir, Ngaire 268 Wells, Keith G. 270 Welsh and McCarthy 363 Welsh, R. D. 39

West Coast Meat and Produce Export Co. 24, West Coast Mortgage and Deposit Co. 140, 174, 214, 220, 254, 281, 290, 296, 363, 394

Western, P. A. Peter 251, 268, 281, 295, 296, 317, 334, 339, 400 Wheeler 293 Whelan, Barry F. P. 365, 366, 369, 373

Whineray, Sir Wilson 165 White, Barry 393, 395 White, H. V. 251

Whittaker, E. B. 181, 192 Whittaker, W. 159 Whittington, W. 227 Whytcross, R. R. 252, 268 Whyte, N. 198

Whytecross, Bob 171 Whytecross, R. J. M. 158 Wickham 156, 157, 167, 169 Wickham, Walter, 170, 177 Wickstead, B. B. 181

Wilcox, Bill 259 Wilkie 30, 46 Wilkie, Colonel R. J. 184 Wilkie, D. 30 Wilkie, F. W. 26, 51 Wilkinson Wilberfoss 273, 276, 282, 285, 300

Wilkinson, C. A. 45, 54, 55, 137 Wilkinson, Campbell, Christmas and White 215

Wilkinson, Charles Anderson 112 Wilkinson, E. D. 215, 216, Wilkinson, H. 126 William Construction Co. 224 William, Hugh 172 Williams and Kettle 196, 341, 367, 384, 385, 397 Williams Foodmarket Ltd 248 Williams 279

Williams, A. G. R. (Reeve) 280, 281, 284-290, 294-299, 311, 313, 322, 324, 326, 337, 338 Williams, E. C. 225

Williams, G. W. A. 209, 225, 233, 234, 244, 280 Williams, H. A. 77, 120 Williams, H. S. 178 Williams, Lisa 386 Williams, Mr Justice 65 Williams, Mrs 242 Williams, Reeve and Edna 289 Williams, W. E. 131, 134, 160, 177, 178

Williams, W. O. 26, 224, 238 Williamson Construction Company 221 Williamson, G. J. 268 Williamson, J. W. (Jim) 251 Williamson, W. 170 Wills 125 Wills, A. T. 26, 45, 46, 51, 58, 59, 60, 63, 73, 105, 126 Wills, H. P. 247 Wills, J. D. 57 Wills, T. 192 Wilmshurst, C. 252 Wilson and Barnes 20 Wilson 29 Wilson, C. 26 Wilson, F. G. V. 123 Wilson, G. C. 134 Wilson, G. H. 26 Wilson, J. 221 Wilson, K. A. 227

Wilson, W. 27 Wiltshire, M.158 Winks 30, 312 Winks, A. 26 Winks, D. A. 182 Winks, Doug 172 Winks, James 236 Winks, John 113 Winter Show Buildings 74, 101, 111, 140, 141, 153, 154, 155, 174, 189 Wiseman, L. G. 159 Woller, L. J. 268 Women’s Division of the Farmers’ Union 149 Wood 343 Wood, Andy 383 Wood, H. C. 252, 268, 358 Woodfield, Reg. 361 Woods, C. C. 64, 65 Wooffindin, Henry F. 153, 159, 169, 177, 178, 190, 200, 208, 214, 221, 222, 223, 229, 232, 234, 236, 237, 239, 240, 243, 268, 358 Wooffindin, J. W. 268 Wool Disposal Commission 191 Woolford, Barbara J. 268 Worthington, J. W. 268 Wren, Frederick J. 270 Wright Stephenson & Co. Ltd 20, 188, 236, 238, 257, Wright 86 Wright, Catherine 225 Wrightson NMA 205, 262-264, 292, 295-298, 304, 309, 312 Wrightson Rural Supplies 381 Wrightson’s 306, 327, 348, 373, 374, 377, 385 Wrigley 49 Wybourne 57 Wylds, C. S. 181, 183, 192 Yorke 30 Young & Co. 90 Young and Hobbs 124 Young, F. 171 Young, Jeanette Carol 268 Young, Kelvyn A. 268 Young 315 Young, J. B. 77, 131 Young, Venn (MP) 318 Young, W. H. H. 153, 160

Zillwood, M. (Murray) 250 Zimmerman, Leonard George 269