NORTH CANTERBURY COOPERATIVE STORES COMPANY.

Press, Volume LXIII, Issue 12906, 11 September 1907, Page 5

NORTH CANTERBURY COOPERATIVE STORES COMPANY.

ANNUAL MEETING OF SHAREHOLDERS.

There -was a large attendance at the annual meeting of the North Canterbury Co - operative Stores Company in tho large room at the stores, Uangiora, yesterday afternoon. Mr James Carmichael. chair.r.'i» of directors, presided, and the directors pro-sent "ore Messrs C Lwh, i.,aac Waiting. W. H. Foster, N. H. Stokes. O. F. Clothier. J. G. A. Kuddcnklati, and James Brown. Ihe report and balance-sheet were taken a.s read.

REPORT AND BALANCE-SHEET. The seventfonth annual report stated that l."> oh-:sr« ailotLHiU.-i, tlto niaja;ity to new iwnioors covirh.g b-M) alia res, had be-U macio at a picauuni ol 2.s i-nch. ihti livoho.d propeiiy account had inciva.scd by nearly made up as follows:—.Material lor renewal of sheep pons, Uungiom yards, £160; additions to Hawarueti More*, ioiO: grain store at Oxiord, completion purchase North Conteruiuy sale iards Company's property, and tho balance in completion ot Kangiora new stores contract, &4000. Ihe net profits amounted to £'80i0 la sd, which with .f-'ia (is 3d from last year gave a total of .£8313 7s 8d to be dealt with. The directors proposed to pay a dividend of 7 per cent, tuui a bonus of 1 per cent, on all paid-up capital, to pay a bonus of 4 per cent, on shareholders' purchases ol general merchandise, sundry net items exceptod, to pay a refund to .shareholders' of 20 per cent, of the commissions paid by them on stock sold by auction, net items excepted, to carry £208-3 lbs 3d to the reserve fund account, which with the special re-serve account will stand at £13,300, exactly one-third of tho paidup capital, to write 10 per cent, off machinery and plant, to writo £100 off tho leasehold properties, and to carry tho balance forward. Tho. balance-sheet showed that of the nominal capital of £50.000, £40.500 was paid up (£5300 by shares allotted in current year). Tho liabilities were shown:—Duo to capital account, £40,500; reserve fund, £10,424 Is 9d; fund for extinction of mortgage, £1000; shareholders , current credits. £20,06G 16s od; deposits, £30,101 11s 3d; sundry creditors, £500G 14s 8d; sundry bills payable, £3010 18s sd; unpaid dividends, £ISJO 14s 9d; balance, £8313 7s 8d; total, £121,414 4s lid. The assets were—Properties, £21,205 19s 8d; machinery and plant, £2537 19s 10d; merchandise stocks, £38,493 15s 9d; sundry debtors' stock and stores. £21,556 2s 7d; sundry bills receivable, £2GG4 las sd; sundries, £615 lls 3d; cash in bank and in hand, £5721 13e lid: total, £121,414 4s lid. Profit and loss account, wages, carriage, - insurance, taxes, licenses, telephones, etc., £13,612 Is; bnlanee, £8313 7s 8d; total, £21,955 8s Bd. The assets of this account were—Balance from last year, £213 6s 2d; profits on merchandise, £14,586 7s; commissions and interest, £2203 19s 3d; auctions, £4205 33 IOd; rents and grain store, £711 12s 4d; total, £21,955 8s Bd. Tho accounts had been duly audited by Messrs J. Marshall and C. I. Jennings.

CHAIRMAN'S ADDRESS. Tho Chairman, in moving tho adoption of the report and balance-sheet, congratulated the shareholders upon a very successful year's* work. The general results were substantially in advance of tho „ returns of the previous year. The unusually dry weather experienced caused the farming community great anxiety and luss fioui shrinkage in stock returns, consequent upon the shortage of feed, which forced many lines of fino sheep to be sacrificed at low store rates, whereas under ordinary conditions the same stock would have been shipped away from the colony as prime Canterbury. Tho dry season also reduced harvest returns by fully one-half, whilst the yield of grass socd was so much bel6*v the averfcge that many thousands of pounds' worth of this seed had been imported into the- colony from England to meet requirements. Although the whole of North Canterbury suffered, the position, fortunately, never became so serious as it did in other parts of tho island, and more particularly in tht southern end of this province and in North Otago, where in many instances the crops wero the poorest on record, and. whole farms were denuded of their stock from want of feed. A period such es the one just passed through caused an appreciation of the value of water-races, and attention was now centred upon schemes for the more extended utilisation of rivers by way of irrigation in addition to the existing drinking racee. There could be no possible doubt that these water-races were an incalculable benefit to the country, and in view of tho possibility of irrigation and the steadily increasing draw upon these natural water sources, it behoved the local authorities to safeguard tho district's interests in its rivers to every reasonable extent. Although the past year was a very anxious and trying time, still its effects upon the district Generally were pretty well neutralised by the splondid wool season enjoyed throughout the colony. Both quality of clip and values realised could hardly have been more satisfactory. Most satisfactory prices for mutton and lamb were also well maintained throughout tho season, and again in tho matter of cereals a. very great deal of what was lost in bushels was made up in the good prices obtained, so that after balancing one set of circumstances with the other, it was safe to say that, taking the district as a whole, it had a fairly prosperous year. The trade returns for the various departments of tho biwinea* showed a marked increase upon tho records of tho previous year. The company's new premises in Ranjriora. which wore nearing completion at the time of last meeting, were token possession of early in November last, and shareholders and clients genonlly appreciated tho much improved accommodation. The improvements would more than justify tho outlay. Tho increase in retail sales since the completion of these premise* averaged nearly £1(XK) a month, which the ■ directors interpreted as a <iec'i<led indication that tho extra ..accommodation ivjis not only needed but was fully appreciated. The H Migiorj premises, practically new throughout, were a most complete and commodious set of stores, and the directors felt that they would bo sufficient for tho nep.-!s of the business for many years. Business in Hnwardon district hnd steadily forged ahead, and, like the other departments, its business turnover for the porir\l was a pood d?al in ovcos of Inst yc-ar. A substantial involving an outlay of £(>4O. t\p.r mndo to tho general store during the year for the better accommodation of soft goods, etc., the trade of which particular department had expanded accordingly. Tho settlors in this rising district hnd been agitating foi a considerable time past for a. railway officer to take charge of the station, but so far no satisfactory arrangements had beon made. Tho company was also petitioning the Telegraph Department for a telephone bureau, which would enable settlers to coirtnnaiente direct with Rnngiora and Christchurch, besides which it would prove of immense value in the working of tho branch bniinens. Tho Oxford branch wan al*> working up a steadily increasing busines», and the returns f or the yeai closed off with remarkably satisfactory results. The trade at this point had outgrown the capacity of the premises erected when the branoh was established three years ago. and a contract had just been let for .1 substantial addition, which, when finished, would &ive shareholders in th« Oxford di*-

triet a complete and up-10-date establishment, affording ampfo room for all requirements. During the year a handy grain store was erected opposite the general store at a .'ost of £210. This buildiag enabled the branch to more effectively handle heavy goods, such as sacks, Troolpacka, etc.. and to carry small stocks of chaff and other grain stuff. In tho auction departments, the Rangiora stock market had been wondiM-iuWy well supported during the year, ar.i the profits were within a very small amount of last year's figures."which the directors crn-sidei-fd highly satisfactory in the face j of tnc»dry s.'.mmrr. which affected stock values, together' with tne- butchers' strike. whi7-h disorganised stock bu.M-ii.-s~ for f.illv a month. It was tln> i inti-ntiou cf the directors to adopt a system of brick paving for the cattle , I:>'ns during; the current year, with a view of obviating some of tho unia . ttouMo in tho wet season. The Ran-: gicra auction p:o>luce department a sain < olt with ;i credit balance | on the years working, principally tlue to tho "high rates rulin- throujjjjoiit tho j-rf'ricu tor produce, an A to tj#?in-voi-.'.nse of small pa rot Is of wool sol.i tiiToiuh thw-e yards. Clients continued to" act upon the suggestnm ho made- .«onio two years agn, to pay casu fur liii'ii- small purchases, and tliereoy minimised the immense amount ot ho<jii-kfi.'pi;is wiwcli tno work of ttiis depaitmcnt'entailed. In regard io the Uxtoici stock market, the actual results of tho year's working caiae fully up to oxjectations and to the estimates of .\lessra John Ingram and Co.. from whom tha company leased tho business. 'lho purchasing claute in tho lease of this business would bo carried iuto ciicct curing the current year, and the directors were convince., that the acquisition by ..he company o. this old-established stock conmction would prove a wound and pro.ital>le. investment. Tiio CiK-t stock market was steadily glowing, and notwithstanding the dry boasen, and the ctlccts of liie butcheis' strike, the volumo of business tiono tlirough these yards during tne twelve nxmihs was very little ncJiinu the returns of the previous year. The yards had been considerably improves and extended during tlie period, 'lno land and clearing sales' department, as usual, had been kept busily engageu, throughout the year, and he thougal that tne great bulk of the land ana clearing sales oi the district had been dealt with through the company's officers. The grain and seed stoics hud been kept very busy, and for tne greater part of the year tho seodUressing plant had to be kept continuously running day and night to copo with the work in hand. Althougn there was practically no profit in the working of this department, the directors wore glad to see that many of the shareholders and others were taking advantage of the facilities the company had provided for them. It was contemplated to increase tho capacity of the dressing plant before next season, to cope with farmers' small parcels of seed, etc., with greater despatch. In the grain and produce business the restricted harvest of last year very materially affected shipping operations, and consequently tne grain and produce business had been almost exclusively confined to the colony. The dry season created a good demand from Otago fp.- fodder stuffs, in which they had done considerable trade. Tho company also dressed and supplied very large parcels of seed for Otago, Southland and the iNorth Island. Beyono. this, however, the business had oeen more or less of the hand-to-moutn character. The Lonuon business was } I? the hauds of Messrs Weddeh and Co., to whom the company was indebted for the very satisfactory manner m which they had attended to J its business through the year. j Continuing, the speaker said that in dealing with this Company's affairs at annual gatherings, it had always been his principle to abstain from matters political. Ho felt, however, that he cculd not allow the opportunity to pass without alluding to tho tariff proposals. If the conditions of labour !as at present existing-.wore to be pror I served, it was absolutely necessary to nave reasonable protection, and if it was necessary, as to his mind it certainly was, to protect the labour of manufacturing concerns, was it not equally recessary that their farmers should also receive some measure ol protection in the production of wheat, the chief staple of diet, and ho hoped tho shareholders, the majority ot whom were farmers, would use all wieir influence individually and through their unions, to secure the rejection of Mr Hogg's motion for the abolition of the duty on flour, i.e., one shilling per hundred pounds, for he could not imagine any measure, it carried, which would be'so far-reach-ing in its mischievous effects upon the farming community of this Island, and especially Canterbury. Wheat growing, take one year with another, was not a wonderfully profitable investment for tho farmer, but from the public point of view it would bo nothing short of a disaster to the colony if such an important industry as wheat growing were jeopardised through short-sighted legislation. Excise wheat growing from the agricultural programme of the Island, and they inimediatoly affected land values, depreciated values of horses, restricted the use. of agricultural and harvesting machinery, binder twine, etc., affecting many thousands of workmen and hundreds of thousands of pounds ot capital employed directly and indirectly from the time of sowing until the grain teicbod the miller's etore. It "wns estimated that the various milling «*»^+3 throughout the colony represenuxT a million sterling, yet tliis important industry was only a few dajs ago within a single vote of partial ruin. The conditions in Australia were entirely different from those of Now Zealand. In Victoria, and ho had no doubt Adelaide and Now South Wales ns well, it cost the I farmer 2s per acre to transfer his wheat from the standing crop in the i field to the sack, and it must also be borne in mind that barns, or even straw or shret coverings wero unnecessary, the grain being simply stacked and loft unprotected in the open field. Last -scar Australia produced fifi million bii.«hels of wheat New Zealand's crop, which, ho rrecretted to say, dwindled down last year to only 5J millions cf bush<-ls.

The balance-sheet afforded shareholders Rβ much explanation of tho various items as no?sibk>; but further information -would bo afforded so far as possible. The liabilities and assets went into larger fipurc* than last year, but in a growing business this must be expected. Tho addition of Messrs Ingram and Co.'s buinr« was answerable for a good proportion of the excess, and the several additions to the property account had also contributed to the ' increase. For the past few years the Company had been steadily getting the various premises into a good state of proficiency,nnd when the works now in hand were completed there should bo no further outlay on the building account for a long time to come. (Applause).

Mr T. Burgin seconded the motion. Hβ eaid' it was pleasing to the snareholders at the end of an almost record dry season, which had been so niucn against the interests of stock owners, to come the-re that day to receive sucn a favourable and cheering report. Mr F. Horrell askod what fees were paid to auditors, and how the valuation o the stocks was made. The Chairman said th« audit fees were fifteen guineas. The stock was valued by tho staff, and the manager would explain. Mr Horrell said his latter question was suggested by tho New Zealand Farmers' Company having employed .special valueni.

Mr E. \V. Relph, manager, stated that tho system was to take the stock in departmonts, and in some cases in sections. Tho actual work was in the hands of the chiefs ot he departments, and sometimes these were changed, stocktaking extended over sis weeKs. and it was impossible to call in experts to do the work. In other companies ho thought it was not done. The experts reterred to, taking the statements of the heads of departments, verified these statements. The stock sheets of this company were taken in double column, and anything slow ot salt- was cast out and written down. .Shareholders might rest assured thai no, as manager, would iusist on keeping stock returns down, and he aiso maintained that there was nowhere a cleaner stuck tliftu on tlicso pri-miscs. It a compaiison was made, the company referred, to had £121.C00 worm of "stock as against their £38,000. Tho cost of the latter .stock was trom £7OU ut 11000 loss trum tho value. owing to tho rnil;ig«« not having wen incluucd on it. ihero was not any interest on the part of anyone to falsity the stock, and the miunors assisted in making up the returns. .Mr Jennings, one of the auditors, said ho could bear testimony t<i tm , niio with which tho nvads of dopartincms gave dttiiils cf cost prices. \\hilst .*lr Mur&hall wont through the grocery and haruware, he had gouo tnrougn the drapery. Mr Horrell <'xpr<"s&ed himself satisfied, but considered the fcos of the auditors were too low. lie pointed out that if a rehind of commissions on stock was made, it might he to a man selling five jigs at bs each, and he thought some consideration should do |-;iv<'ii to tales in the produce yards, where a man might havo live sheepskins sold for &s each. He congratulated the directors on the amount auctioned in tho produce department. .Mr Parsons, the local auctioneer, was a credit to tho place. Mr A. 8. Bruce said no had to bring up hit* old grievance of the interest paid on capital, which was 1 per cent, too much, and should go to the bonus of 4 per cent, on shareholders purchases. It was a pity to keep it up; it did not draw trade, and, further, ho could udd he had a document in nib l>ocket showing a purchase at 10 per cent, less than he could get it for at their stores, and 2i per cent, disoouuv allowed at the end of the month. The company was running too much into capital. The balance-sheet stated ooO" shares had been taken by 176 allottees, which was a proof that capitalists were coming there for profitable investments lor interest which could not be made on farms, and he thought that if it did not pay farmers, their institution should not pay high interest to outside people. He thought the directors should have taken notice of fiis remarks last year, and increased the bonus on purchases rather than give increased interest to capitalists. no would always bring the matter up till it was corrected, and capitalists were prevented from bleeding the Association. This and other similar associations were drifting from their proper object*. In reply to a shareholder, the Chairman said the turnover was over £600,000, and to Mr Bruce be said the directors this jear had carried a large amount to reserve, so that '.he reeerve fund now was equal to a th.rd of tho capital, and next year it might perhaps be decided to act otherwise. Sir Bmoe contended 7 per cent. was enough to pay for the capital, and would prevent the company, like others, being absorbed by moneyed people. Mr R. Evans did not see how the company could progress without capital. (Applause.) It had been the means of giving it tho. present position. He bad not studied political economy, or discovered in the arguments of some men the war in which thcße companies were to be carried on without capital. (Laughter.) The extra 1 per cent., if added to shareholders' bonuses, would Lβ very small. It woe a great credit to the company that it had attained such a position, and he .believed that it had given/.a stimulus to other businesses in Rtuugiora, for they were employing more hands in the other . stores than they did before this company started. .Mr Burgin expressed satisfaction with the intended paving of the eheopyards, saying he believed sheep wore in tho wot weather depreciated when buyers would not go through the mud to examine the lots.

The motion for the adoption of the report and balance-sheet was then put and carried unanimously. GENERAL. The directors retiring by rotation, Messrs O. King, C. Leech, T. G. A. Ruddenklan and H. M. Stokes, wore unanimously re-cdectcd. The auditors' report stated that the books, as usunl, wt»re carefully and accurately kept, and the advances "were covered by securities with a gooci snfe margin. Tho bad atid doubtful dvljis wore noted to be very pmall considering the magnitude of tho business.

On the motion of Mr H-uce, secotwlwl by Mr A. Gardiner, Messrs J. Marshall and C. I. Jennings were Teelectect auditors at fees of 2-5 guineas each.

Mr Evans said a report w.i 9 current that the association was itkol.v to amalgamate with a similar •-• tnpany. Was there any truth in fc'-s .-.arue? If thero was not, it should i>» at oner- contradicted.

Tht> Chairman replied t-hit '.h» ieport had reached him. but Tnero «ia not the slightest foundation f< r it Mr bnice was glad the rumour was contradicted, as euch an alnaneowould l<o detrimental to tho company

Mr Hunter stated they would be sorry if it was likely to cause them tho low of the manager.

Mr E. "W. Relph stated he could not feel justified in joining any nesociation in opposition to the North Canterbury. . Mr Hruce moved, and Mr Evans seconded, a cordial voto of thanks to the directors, tvhich was aoknowlodgon by tho Chairman.

Mr Horrell moved, and Mr A. Hunter seconded, a voto of thnnks to the man a per and stnff. Mr Relph said all in the employ of the association would appreciate, the motion. Tho results, as the balancesheet showed, were not obtnnod without some effort. That effort hed be*>n n unanimous one, and the combination bad told its tale. The staff tried, and nooordinc; to Mr Bruce did not always succeed, though that gentleman had not given the results of such erideno© as he might have in the other pocket. At a subsequent directors' meeting Mr J. Carmichael was re-elected chairman of directors.