CO129-473 - Individuals - 1921 — Page 332

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THE COMPANY FLOATED.

The encouragement received seems to have been sufficient, for in the spring of 1886 the proposed flotation became an accomplished fact under the title of The Dairy Farm Co., Ltd. Dr. Manson of course, was on the Board, and associated with him as co-directors were the Hon. Mr. (now the Hon. Sir Paul) Chater, the Hon. Mr. Phyneas Ryrie, Mr. Granville Sharp, Mr. W. H. Ray and Mr. J. B. Coughtry. Some details of the Pro- spectus were apparently revised, for the paid-up capital of the Company was $30,000, instead of the $25,000 estimated by Dr. Manson, and the initial herd numbered 80 cows instead of the 100 head upon which Dr. Manson based his rough calculations of profit.

The result of the first year's working was a loss of $13,186.91 prin- cipally owing to the unfair treatment of those who were in the first But the measure of public instance entrusted with the purchase of cattle." support accorded the efforts of the Company to provide under reliable conditions one of the essential foods for the young and sick was such that the directors were encouraged to persevere. The second year's working. after the acquisition of a few more cattle, showed a profit of $3,384.37, which was placed against the loss sustained in the previous year's operations. In the third year again a small profit was returned, amounting to $4,373.89, and this also was transferred to Profit and Loss Account in further reduction of the initial loss.

The demand for the Company's produce developed. The importation of more cattle and the building of sheds, etc., became necessary, and in 1889 the capital was increased to $100,000.

At this juncture the founder, Dr. Patrick Manson, on his departure from the Colony, severed his connection with the Company.

In the following year there was a profit of $5,228.65 which went to extinguish finally the adverse balance in Profit and Loss Account and there was a small carry-forward of $333.58 to the next year's account. The Company was now fairly established, and with increasing support from its patrons had a very bright outlook. Yet there were lean and difficult years ahead. In 1891, after five years' working, the directors declared a modest dividend of 3%, after writing off $8,044.27, equal to about 8% of the Company's capital. No dividend was declared in 1892, the whole of the profits, amounting to about $11,000, being devoted to the writing down of cattle and depreciation, the loss on cattle owing to deaths

being over $8,600. The year 1893, however, proved more propitious, and a dividend of 5% was declared, but the succeeding year again proved a blank for the shareholders, for although a profit of over $8,000 was made, yet the directors considered it more prudent to utilise the money towards writing off stocks and utensils. The practice of strengthening the Company's position by annually writing off justified itself in 1895, when a dividend of 10% was distributed. The Company during its nine years of existence up to that date showed the following results :--

Sale of Produce. $28,717.75

Written of! Cattle and Property. $11,629.67

$ 3,623.64

$10,672.12 $ 5,109.89

Dividend Declared.

Loss carried Forward. $13,186.91

Capital.

Gross Profit

1887

$ 30,000

1888

$ 30,000

$29,133.30

$ 7,208.01

1889

$100,000

$30,197.83

$ 7,581.82 $ 3,207.93

1890

$100,000 $34,405.28

1891

$100,000 $34,263.75

1892 $100,000 $33,593.55 1893 $100,000 $30,795.49 1894 $100,000 $29,286,52 1895 $100,000 837,787.33

$11.463.57

$10,879.20

$ 8,044.27

3o

$11,339.29

$653,11

$11,392.57

$ 6,076.06

59

$ 8,697,06 $18.392.80

$ 6.005.60

$ 7,368.54

10%

The year 1896 proved a disastrous one. An outbreak of rinderpest carried off the whole of the herd, and the Company had to go into liquida- tion. Thus at one blow was nine years of pioneer work and careful manage- ment brought to nought.

THE COMPANY

RECONSTRUCTED.

But the necessity of a European dairy was recognised, and the unexpect- ed misfortune, though it damped their ardour, did not deter those who had the interests of the Colony at heart. The Company was reconstructed, the assets being acquired by the new Company under the Chairmanship of Dr. J. W. Noble, who had joined the directorate of the old Company in the previous year. The new Company started with a nominal capital of $75,000 with $50,000 paid-up, Mr. J. Walker being the Manager and Mr. W. Hutton Potts the Secretary. A profit of about $8,000 was shown on the first year's working. The Company continued making profits, but no dividend was paid until the year 1899, when 6% was declared. In 1898, it was found necessary to call up $1 of the uncalled capital, thus making the paid-up capital $60,000, and the uncalled capital $15,000. Once again the Company was placed on a profit-making basis and from 1900 onward dividends have been regularly declared. The demand for the Company's produce necessi-

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