114: 
allowed to take up shares to the extent of 10 per cent. of their largest one 
year’s crop of fruit. By this it was ensured that every grower contributed to 
the company an amount equivalent to his interest in the fruitgrowing industry. 
Further, no fruitgrower was allowed to hold shares unless he first signed an 
agreement to sell to the company (at a fixed price) the whole of his fruit cou- 
signed to any part of New Zealand north of Milton. The agreement with the 
growers provided for orchards being kept clean, for inspection of orchards, and 
for the grading of the fruit. It was also arranged that one of the growers 
should be continually in the company’s stores, with access to all books and 
papers relating to the association. Every night, after the day’s fruit was sold 
the manager conferred with the growers’ representative as to the prices to be 
paid them for next day’s sales. These prices were wired to the growers, an 
then if a loss was sustained it did not affect them, as they were absolutely 
guaranteed the prices quoted. 
After the fruit was unpacked and properly graded, sales were daily held 
at 3 p.m. for the trade only, and at 5 p.m. for the public. ‘The results were ab 
once seen. Buyers must now go to the sellers instead of the seller running 
after the buyers. Competition amongst buyers resulted in fair prices. Nor 
was this the only good result of co-operation, Cases which were in the past 
always given to the buyer, had been charged for, this item alone amounting t0 
a considerable sum annually. Claims against growers, formerly serious, were 
now unknown; freights had been materially reduced, and satisfactory arrange- 
ments made with outside markets, which, without co-operation, would have 
been impossible. Prompt returns were received from the association’s agents, 
owing mainly to the almost perfect way in which the fruit was graded and 
packed. With respect to the manager of the association, the company had no 
power to dismiss him unless by the vote of 75 per cent. of the total subscribed 
shares. This ensured him, during good behaviour, a perfectly free hand, which 
was absolutely essential to success, since interference with the business arrange- 
ments of a business man by growers, would necessarily result in disaster. 
Under the company’s régime growers knew that they were bound. together for 
all time, and so made up their minds to pull together, the result being that 
the Teviot and Alexandra Fruitgrowing Company held the proud position of 
_ being the most independent body of fruitgrowers in the colony. With com- 
bination any body of growers can obtain the same position. 
By the Articles of Association of the company it is enacted :— 
1. That none but fruitgrowers approved by the directors are to hold shares in the companys 
except by resolution at special meeting. 
2. If any person shall, by the operation of law, through death, lunacy, crime, or bankruptcy 
of a shareholder become entitled to any shares in the company, and such person shall not 
a fruitgrower approved by the directors, then he shall not be entitled to hold the said shares for 2 
longer period than six months, unless he cannot dispose of them to a fruitgrower approved by the 
directors at par or over par. Should he hold them longer than six months, and [not*] be able to 
dispose of them as aforesaid, then the said shares may be forfeited by the directors, and sold to 
any fruitgrower at the best price obtainable for them, and the proceeds of such sale shall, after 
the necessary expenses of forfeiture and sale have been deducted, be paid to the person who h 
the same shares before forfeiture. 
5. No dividend of more than 10 per cent. on the paid-up capital shall be paid by the 
company. 
The agreement between the company and individual growers reads a3 _ 
follows :— 
An agreement, made this second day of June, one thousand eight hundred and ninety foul 
between the several persons whose names are stated in the schedule hereto (hereinafter calle 
“the fruitgrowers”) of the one part, and the Teviot and Alexandra Fruitgrowers’ Company 
(Limited) (hereinafter called ‘‘the company”) of the other part, whereby the fruitgrowers Bet 
mutually each with the other and others of them and the fruitgrowers jointly and severally, am 
the company also mutually agree, in manner following, that is to say :— “ h 
1, Each of the fruitgrowers shall, in respect of his own orchard, from time to time take sud 
steps and carry out such regulations having for their object the cleansing of the orchards belonging 
to the shareholders of the said company from blight aud all other orchard pests as the directors 
for the time being of the company shall from time to time direct or frame, provided such 
directions and regulations are made to apply generally to and are enforced against all fruitgrower 
for the time being bound by this agreement. 
freee pene emaen serra ener vemeroerrnepepeerecoroeeeeerreeenemr et a bic 
; * Ed, Q. 4. J. 
