CO-OP. COMPANY'S LOSSES.

Auckland Star, Volume LIII, Issue 249, 20 October 1922, Page 7

CO-OP. COMPANY'S LOSSES.

AMOUNTS TO £90,000. M'HKMK OF RI<XX>N"isTRUCTIOX. The result of the year's operations of the Southland Farmers' Co-operative Association, a concern of 2500 shareholders, with branches at Invercargill, liore and \\ inton. was an estimated losb ot L'!iO,t;iiO. equal to the subscribed and unea.led capita:. At the annual meetin-.' the chairman. Mr. Hugh Smith, attributed th.. association's grave positinii to tlie clump and had management. "Although the baluncc-Khpef shows a. los-s of <_M7.."iU7 5.6," lie said, •■when the account- of the various branches of the association were valued and assessed, it was loitthl that provision would have 10 be made for further loss I"r>3.1100. making t-he total in the vicinity of <J'..<i.iioi». This will mi-an that the whole of the subscribed caprtal of Ci : .S.S7* mid the unctUled capital of UJo.OOO odd is completely lost. We have Ihe s'.nii 01 L-lril.S4:? li> T on deposit, c I Ki.ciHi approximately duo in December. l!>iJ. and the baianee of E40,(H»0 in -lui-.e. llt-i.t. if no alterations !«■ mud J in the moratorium. There if a further iieni of f fIWiOO roprcsentinz sundry creditors wh'eh ma\ be called up any day. . . In Ifi-ii), a nominal profit cl*, L I4.U(N) was made, on which tile as>o- 1 eiatinn paid dividends, hut it is pretty: 'crti'in that if n.e same strict inspection slid assessment of account;, had t'.ien been inaJt as has been recently] 1 optpleted. the association would have shown no prolit. The directors and families between them have C 10000 on! deposit. t: 10.000 in -hares making L'jo.Oiio in all. a-> well as a joint and several liabilities to the bank for the ■ overdraft of C 20,330. s o that lofs to the; as-.ee aiiun bears mo.-l l.ar.«hlv upon the) din rtors themseht's. : The e'.iiiirman. :n reply to a question,! mi id the lirok deb;* at ("iiire amounted to til;. Olid, at Inr»rearsrill t.-, £80,000. j 11 mi at Winton to t;',ti,oOO. The loews :it liore were probably caused hv ;hc late nianasrt'i , liavinj extendrd too muca I c tc. sura.' client*. The diroe- ! tors were "appalled when they went, thoroughly into the matter after lhe| last annual meeting tn fin:l the position tliev were in. To lulvanee-s made wee m.istlv to men on the land, and a!«i»! for the. purpose nf carryinji on the-e men. ; A si.bri mmittrv was s pt up to formu- ' late a s.iieme of reconstruction. ; I —— I