N.Z. FARMERS' CO-OPERATIVE ASSOCIATION.

Press, Volume LI, Issue 15394, 27 September 1915, Page 2

N.Z. FARMERS' CO-OPERATIVE ASSOCIATION.

" ANNUAL MEETING. A PBOSPEBOt'S YEAR. The annual meeting of the New Zealand Farmers' Co-operative Association of Canterbury. Ltd., was held on Saturday mornins in tho Alexandra Hall. Thero was a largo attendance, over which Mr J. A. Pannett (chairman of directors) presided. Tho thirty-fourth annual report was follows: — "It is with deep regret we havo to record tho recent death of Major P. J. Overton, killed in action at tho Dardanelles. The late Major Overton loft for "the front shortly after his appointment to tho directorate, and though his association with tho Board was of short duration, ho was held in tho highest esteem and regard by both directors and shareholders. "Duriutr tho year 207 allotments of ordinary shares were made, representing 691 share.*, upon a basis of £2 paid up and at a premium of 103 cach. 3931 4 A' preference shares were also allotted at par to 118 applicants at £5 each paid up. - 4 The profit and loss account showa that the net profit for the _ twelve month* amounted to £60,031 us lOd,

to which has to bo added the sum of £2801 12s 9d brought, forward "from last year, making a total to be dealt with "of £63,832 18s 7d.

I "Tho directors propose to allocate ' this amount as follows: To pay six per ccnt. interest on the preference share capital; to pay a dividend and bonus equal to eight and one-half per cent, ou the ordinary paid-up sharo capital; to pay a bonus on tho basis of five per cent, on shareholders' purchases of merchandise during the year (sundry net items excepted) in terms of tho arrangement explained in the Association's circular-lettcr to shareholders dated 24th July. 1914; to refund thirty por cent, on sundry commissions oarncd (net business and wool excepted) ; to carry £10,000 to tho reset ro fund, which will then stand at £131,7-13 10s Od; to writo ton per cent, depreciation off tho machinery and plant, and a further sum of £1000 to provido for depreciation of motor vehicles; to contribute £1000 to the Employees' Superannuation Fund; £1000 to tho special fund to provido for contingencies with respect to members of tho staff at the war, and to carry tho balanco forward. .

"The directors retiring by rotation are: Messrs F. 11. Brittan, H. f. Cooper, W. Dunlop, F. Hubbard, David McMillan, and Wm. McMillan, all ol whom are eligible for re-clection without notice, and offer thomselveß accordingly. No other nominations havo been received." THE BALANCE SHEET. Tho balance-sheet as on July 91st, 1915, was as follows: —

CAPITAL ACCOUNT. £ s. d. £ b. d. Authorised Stare Capita.]— 30,000 let preference shires oi £5 each 150,000 0 0 80,000 2nd prefenmce sharus of £» each .. .. 250,000 0 0 170,000 ordinary shares of £5 cat a 850,000 0 0 1,230,000. 0 0 / .£1,250,000 0 0 £ 8. d. £ s. d. Capital Subscribed— 80,000 Ist preference shares of £5 cach .« ». 150,000 0 0 17,1)31 2nd preference shares of £5 each. .... . 89,635 0 0 81,511 ordinary share* oi £2 each paid ... ... 183,022 0 0 Plus calls paid in advance on 778 share* % 2,334 0' 0 Total capital paid 405,011 0 0 Uncalled on 80,733 ordinary shaws at £5 each .. .. 242,139 0 0 Total capital uncalled 242,199 0 0 Unallotted 65,437 ordinary ah ares of £C> each .. 442,44G 0 0 82,069 second preference shares of £5 each .. 160,345 0 0 ' . . Total capital unallotted 603,790 0 0 £1,250,000 0 0 . CAPITAL AND "LIABILITIES. ■if" ■ . . £ *. d< ,•£ b. d. r Capital paid op ■.* >,4 <•« . . *. <403,677 0 0 Plus calls paid fa tdrande t.i i.w ... 0,834 0 o 403,011 0 C IteserTe Fund, pet last statement .. , .. r 111,398 0 0 .s'p Added from profits for year ending July 31st, 1914 ... 10,000 Q 0 • Premiums os' ahares allotted during the ye*r ~h 345 10 0 4' • ' • : 121,743 10 0 -Fixed deposits for 12 months <•« - 7.. 58.394 12 6 „ „ * from 2 to .5 year* »• • 240,857 9 4 . . ■ . .. ' ■ • ' . : : . 299,183 110 Association a drifts tgajnst produce shipped, eto -40,103 4 3 Am««.iit ijt credit of shareholders' current accounts • ' 297;010 4 5 - Sundry creditors -.« » . .. .. .. 34,735 12 8 Accnusl interest on fixed deposits .. .. .. 3,522 16 6 Special fund provided for contingencies with respect to members of staff at the war .. .. 1,000 0 0 Leas expended . i.w . ........ 444 1610 ■ -■»■■ ■ ■■ ■■ 335 3 3 Unclaimed dividends ' 303 12 3 , ■ t- Ptofit and toss account, baljma* ■< 62,832 18 7 -*- •■■■ . •' ■ ■ - | i 1,264,083 3' a ASSETS.: * ' . ! ... £ s. d. £ s. d. Freehold property ana warehouse fixtures h* < 143,390 17 11 LtiaeWd property .... ... 893 17 6 „. , . , 144,392 1% 5 Hacninery sod pnat <••• .... 25,783 14 6 Stock of gootf* m-storss . .■ t .. .. 233,888 7 1 Advance* against stock, train, etc., a'n4 produce shipped 459,450 18 2 Investments.*■ '.. . ~ ~ 1,797 10 0 Sundry debtors, general merchandise accounts ~.. 13f1,3-15 7 fi ,' „ ' , T Steele and grain accounts .... 78,591 17 10 Unexpired licensee and insurance.) , .. ... t. 1,923 12 7 Jlills receivable v.. . .. ... ' .. .. • .. 22*483 14 2 Cash at Sank of Hew-J-ealand, on, deposit at shoit call, and '. in hands of cashiers '< ..., ; ... 157,026 61 •*.- . £1,264,989 3 3 ContingentvLiability. • „ ' Amount uncalled on 20 Mount Somere' Saleya'rde Ci>. »£ai«. at 3s per share Amount uncalled on 20 Pigeon Bay, Dairy Factory Co. shares, at 7a 6d per share. ' Bills Psyable—Nil. Bills trader . • >•■' , ': * f PROFIT AND LOSS ACCOUNT FOR 12 MONTHS ENDING - ; JULY 31, 1915. ' 1 m I . ? r C , • £ * s. d.! - To Salaries and wages -in •.« ■ *.■ 54,852 7 o Poatvgce, stsmps and telegrams .. - • i.. 2,029 14 7 ~ Stationery, printing," and advertising 2,599 5 2 Inoidental expenses ... .. 1,361 2 7 . .." Rents "... h. . - r.. ... 233 1 0 j . Hates, taxes,, and lightins .. i.. ... 1,410 18 8 ~ Renewals,ana repairs ... >.j ..., 1,425 19 G expenses and' agency foes • ' .. ... J,195 6 if .i Insuranoe, buildings, stocks, and accident .. .. 2,402 11 7 - Intnrance of under t!x» superannuation scheme, % . .£1,034 lis 2d, less contributsd from last year's profits, , , j "£t;OCO .. . .. ... ; .. ... . 2<ll 2 > j OoTerament taaee .. . .. 4,847 16 - 6 I ~ Auctioneers' licenses and expenses ..- ~. 1,720 18 7 . „ Directors" fees and expenses ' ... 803 16 2 ~ Committee's fees »« ... ... « 475 0 0 •Auditors' fees'and expenses ~ ...: ... 317 10 0 > „ Subscriptions, ordinary ... .. .. 826 17 5 „ to sundry patriotic and war relief' funds . 61ft 19 2 ." „ Law costs .. , ... .. .. 262 1 5" • ' »j.J vi ; 76,303 0 2 --. .. Bad- debts ■ ... .. .. .. 1,647 12 ° „ Balasce of profit and loss account at July 31st, 1914... 2,801 12 3 „ Profit for 12 months ending July 31st, 1913 .. .. 60,031" 510 ■ , " • — G3.832 19 7 . r .* * i 140,783 10 11 Cr« £ s. ({ t - j By profit and loss account of July . 31st, 1315 " .. .. fc/,823 6 7 ~ )jo» interest on preference shares aud dividend and bonus paid during 12 monthe ending July, 31st, 1915, £50,630 2s 2d; added to reserve fund, .£10,000; written off machinery and plant. £2,891 lis 8d; contributed - to Superannuation Fund, £1000; contributed to special fund for employees at the wsr, JJIOOO „. CS,CQI 13 10 ' • ————0 „ for 12 months ending July 31st, 1915~ *' On merchandise .. ... .. 90,793 fill On commission, etc. ' .. .. .„ u . 25,986 12 11 \On interest, discount, and exchange .., .. 19,91? 17 8 Oh grain arid wool store earnings .„ ... 1,354 19 2 .On transfer fees ... . Um • 80 2 6 " . 137,981 18 3 ~ X 140,753 10 11 if. A. PANNKTT, Clwirniiii, E. IV. BELPH, Secretary and General Manager. We have audited the Boolcs and Accounts oi the' Association for the financial year ending July 31st, 1915, and hare found them correct; and in our opinion the abore balane**heet is properly drawn up eo as to exhibit a true and comet >new of the state of the Company's affairs s< shown by its books. All ou- . requirements ss Auditors hav« been complied with. • Th« vahies of the stocks hare been accepted as' certitfcd to by Messrs Samuel Hardey. W. Snowball John Clarke, and A. L. Tuclcsr. , W. JAXIESOK. F.P.A., F.I.A.Jy.Z., } W. S. XEWBURGII. F.P.A., F.1.A.X.Z., - Auditor J. H. STItIKGEB, F.N.Z.AJL, J 7 ; Chrislchurch, Apgust 25tb, 191 c.

CHAIRMAN'S ADDRESS. A COMPREHENSIVE REYIEW. In -moiing tho adoption of the to- I port and lalnnce-iheet, the chairman *aid.:~ It- is a matter of more than ordinary pleasure to me to bo in a, position to again meet shareholders on the comof a moet satisfactory year's °£ &n i i< lT' * nd 1 Ilcart fy congratulate •barrfiolders on tho splendid position of the Aaaociatjon'j, business, aa exhibited j - by tho balance-sheet. w .Although the set earnings are £3853 ' less than the showing of the previous I > period; rrhea certain special items and i contingencies axe considered (which I i will explain), it wUI be ahown that the -JMjijd-ljrt-Clflwj realty constitutes a

brought into operation at the com-' meiicement of tho year, which accounts for no less a sum than £7161, paid to . shareholders during the year, on their | cash purchases and monthly sottlcj ments. This item alono is sufficient-to place tho figures ahead of last year, and wo can confidently say that our 1 stock commission earnings would hare been fully £8000 more if there had been no disorganisation in our insulated steamer services. I think, therefore, that I am quite within tho mark in saying that had normal conditions obtained throughout the ycbr, our net j earnings would hare been . at. least j £10,000 mons than the amount. now j drown. ! In the course of my remarks last ■ year in reference to the. war, I ventured the opinion that we might expect ■a certain amount of loss and inconvenience, but I thought that we in this

ly than would bo the case in' many other parts of the Empire, and I do not think I was very far out. Vie havo done well, and, comparatively speaking, -we have suffered very little, and we have every reason to be satisfied. GENERAL MERCHANDISE. The volume of trade in the several retail departments in Christchurch and branches, notwithstanding the war, was well maintained. The total sales for the twelve months wero £563,263, against £536,230 for the previous year, an increase of £27,018, and tho returns of tho agricultural departments of tho business, which aro not included in the above figures, such as fertilisers, binder twine, juto goods, harvesting and other farm machinery and motors, considering tho season, were also very satisfactory. The total turnover for'all operations for the year amounted to £3,257,795, against £3,389,420 last year, a drop of £131,631, which is entirely due to the falling-off in our fat stock business, consequent upon tho dry season experienced and the dislocation of our steamer services already referred to. The balance-sheet, as usual, is drawn up in full detail, but no doubt a littlo further explanation from me. of the principal, items, will be of interest to you. CAPITAL ACCOUNT.

During the year, 691 ordinary shares e ro allotted to 207 persons, upon a oasis of £2 paid up, thus adding £1332 to the ordinary paid-up capital, and £2073 to the uncalled capital reserve. There were also 3931 "B" preference shares (tho printed report of the balance-sheet describes these as A" preference shares, "Vvhich is a mistake allotted, of £5 each, to ii- v»rBcain, representing a further £19,(555 ,fco tho working capital of ttio Association.

When dealing with this most important subject last year, many of you Trill doubtless remember thai 1 pointed out how very disproportionate were tho shareholders' average holdings of our ordinary stock, when compared with tho .needs of the business. Our authorised capital, as you will see from the bal-ance-sheet, is £1,250,000, of which £647.210 is subscribed, £105.011 is paid up, leaving £242,199 uncalled. The 207 allotments of ordinary shares made during the year average J l-3rd shares each member—dtiring the previous year there were 20(5 allotments made, which average only 2i shares each. Although the period under review was a slight improvement in this connexion. I am sure it must bo patent to all that even atv average of il l--3rd is quito inadequate for the purposes of carrying on and the development of the business. ' 1 told you last year that there were upwards of 5000 persons upon our rcgisj ters holding only two shares cach. Tho present position is, I am given to understand, that thero arc fully [ 6000 members whose joint holdings 1 would not average th'reo shares each. Tho larger subscriptions of capital, as I havo stated 011 former occasions, wero mostly taken up during the earlier stages of tho Association. It must bo obvious, "therefore, to those who study the position, that since subscriptions to our ordinary capital have been so consistently small, tho directors have had to make tho necessary capital provision through the medium of preference shares and other means.

The manager, in his letter to shareholders, which accompanied the balancesheet. has also referred to this subject, and I trust his appeal will meet with the ready response it deserves. The preference shares aro a very popular investment, and wo exp(yienco no troublo whatever in augmenting the finances of the Association by sales of these shares, but, at tho same time, your Board would like to see the ordinary shares receiving a little more attention from many of our smaller shareholders, as well as from thoso seeking investments. Tho Association has stood the test of time. A consistent "and substantial dividend lias been paid, and the shares arei being appreciated in value by largo additions to the reserve fund, which will stand at £131,743, if the Board's present recommendations are agreed to. This amount represents a premium of £1 12s 3d per share on tho ordinary shares issued to date, which I think more than justifies -tljo 10s per share premium which has ! been imposed for a number of years ?&st. DEPOSITS. | Shareholders' deposits with the Association amount to £299,182, being'an increase during tho year 'of £40,682. Tho greater part of this liability is fixed, as the. balanco-sheet shows, for periods ranging _ from two to five years, and the whole is carefully spread with I proportionate maturing dates* ASIOUNT TO CREDIT OF SHAREHOLDERS' CURRENT AC--1 COUNTS, £299,182. ' I This is the aggregation of a very I large number of current accounts in operation with the Association at head ioffico and the several branches, and it | is perhaps tho most important part of | the business, as it represents tho source from which tho commission and interest earnings aro derived. This item, together with shareholders' deposits, practically covers the whole of tho Association's liabilities, every penny of which j is i" the hands of our own shareholders, which is a very satisfactory position. Tho increase in these figures, as well as in the deposits, can he taken as nn indication of tho satisfactory financial conditions that have obtained throughout the Dominion during tho greater part of the year. Our total liabilities, including deposits, amounts at credit of current accounts, etc.. on the 31st July, jvero £674.541, and the assets, including the Uncalled capital were £1,507,118, which means that the assets of the Association were sufficient to pay all liability claims in full, and loavo a balance of £832,047, or, put the position in another way. in tho case of a wind-ing-up. the assets are sufficient to meet the liabilities twice over, and then leave a.surplus of £158,106, which, in my opinion, is a remarkably sound ana satisfactory position for auy company to be in. LONDON* OFFICE—£4O,IO2. This represents the balanco duo to London, being the difference between tho value of shipments and remittances from the Dominion and sundry disbursements for goods, etc., at Home, on tho Association's account. .Sundry croditors, £31,720. being current purchases of general merchandise during the month of July chiefly within tho Dominion, all of which have sinco been paid for.

ASSETS. Properties, £144,29*2. The increase iu this account during tho year, represents cost of re-modelling the tiuilcTing known as the ''Kaiapoi factory" at tho corner of Cashel and Madras streets, and converting the 6ame into tho new hardware department, which occupies tho ground floor. There are also new tea rooms, and china and glass departments, which occnpy the middle floor, the upper flat being used for hardware bulk stocks.' Considerable altera- ! tious and improvements to the other general departmental premises liare also been effected. The expenditure also includes a substantial addition to our wool store, as well as some improvements to the branch, premises. I should like to repeat what I hare stated on other occasions with respect to our properties,' that all maintenance ex-penses-are paid for out of profits, and, -the property values hare never been written up, although 6ome of them hare, been in tho occupation of the Association for many years. Machinery and Plant, £25,783 —The constant writing-down of 10 per cent, each year la considered ample safeguard for tie Association's ordinary machinery and plant, bat as we are gradually employing quite a number of motor vehicles in connexion with tbe business, your directors have deemed it advisable to recommend that a special amount of

plant, to meet all possible depreciation. % Stocks of Merchandise, £239,393— An increase of on the amount held last year. This is partly due to heavier quantities being secured in some lines where it was thought the "K" ar might interfere with supplies, and our 'grain stocks are also heavier, but ft great deal of this latter stock has been worked off in the ordinary course since the closing of tho period at July 31st last. As usual, the wholo of the stocks wore carefully taken, and valued by competent experts, whose repbrts are quite satisfactory. Sundry Advances, £409>450 —This is the Association's largest asset, and, as tho business this item must be expected to grow, too. It represents a very large number of advances to farmers against the security of their lands, stock, and produce, and it also includes the debit balance-, cf all those operating upon the Association's finances throngu their current account*. Every care i 9 exorcised in safeguarding tho Association's interests, in the working of this important section cf the business. All advances are on a "call" basis, and eyr>rv e'l'lenvour i<< mado to keep individual liabilities within the value of the borrowers' moveable assets, viz., stock, ctc. SUNDRY DEBTORS. General merchandise, £136,24.3. Stock and grain accounts, £76.-If - Much tho sanit? as last year. Then iures. especially tho merchandise accounts, represent some thousands of accounts, and considering the proportion of our operations, the amount is by no means largo. I should like to mention, hi connexion with our general store business and accounts, that tho discount system which came into operation on August l6t last year, lias worked with much satisfaction. Tho volume of business done for cosh lias wonderfully increased, and a much larger percentage of accounts have been -regularly paid each month, than wac formerly the enso. Bills Receivablo. £22;483 —Farmers' acceptances to adjust accounts: They j nro all pcrfoctlv good and negotiable. We liavo no bills under discount, neither wore there any bills pnvable wheu we eloped our account* on .Inly 31st. Cash Balances—Tho lorjre increase in the amount, of msh in band, mul otherwiso available, is principally due to the additional moneys received through deposits and customers' Current nccounts —the aim of the Tnnuapemont bp* been to place tb.-> A°soci°+'on in a tl'oi'iugblv *ifo position with regard to its finances. PROFIT AND LOSS ACCOUNT. The total gross profit for tho twelve months, as tho balance-sheet shows, amounted to £137,982, as against £139,070. for the previous year, a jlecreafco of £1083, which, I think, considering tho exceptional conditions ol>* taining throughout the year, -is highly satisfactory. On the debit side, tho expenses and bad debts amount to £77.950, leaving a net profit of £60,051. which, with the £2801 carried forward, gives a total of £02.832 to be dealt with.-and which your Board recommends should be disposed of as set out in their renort accompanying the "balance-sheet." AGRICULTURAL D-EPARTMENTi?. I feel sure that shareholders gonerally aro extremely gratified to note the steady expansion of what wo regard as tho agricultural departments of the busfness. The manager, in his letter to shareholders,, has furnished some very interesting data in this connexion, which must havo been read with satisfaction by ono and all.

ARTIFICIAL MANURES. • ,f L P l "®® l,6Bß this department dur- « P as J" ew years has been wonderfully satisfactory. The output of nVJ" fertilisers has increased from 2460 tons ;'n 1909 (seven years ago) to »849 tons lost year, and to cope with this increased trading, your directors hnvo recently made arrangements for a i>'H e Edition to .our mixing works at Belfast. A siding connexion to servo this property has also, been agreed *to with the Railway Department. It. is exported that both the new addition and the siding will bo completed within the next three months. . •J,' 10 , wftr taring severely interfered with the costs and supplies of basic slag, superphosphate, ana other fertilisers! attention has been directed, as 110 doubt many of you have noticed, to the matter of lime as a fertiliser. Sevßral _good deposits have been located, and analyses and experiments aro now being mado under the auspices of the Agricultural Department, the results of which are awaited with much interest. It is not expected. that lime will take *tho place of our ordinary fertilisers, such as superphosphate, guano, etc., which supply the soil with the elements of plant food in which the soil is deficient* . But .the application of •lime in very moderate quantities is calculated to greatly benefit our soils, both in supplying the amount required as plant food, and also as a corrective of acidity in the soil. Howe.ver, .wo ara keeping in touch with the Government on the matter; aIEO collecting all possible data oursdveß, and if tho Association can render the farmecs a helpful servico in this connexion, I am surd your Board will gladly do so. CO-OP. BINDER TWINE. This is our chief proprietary lino, and I am glad to say, notwithstanding the keen competition which exists, our yearly output is steadily increasing. "Co-op." twino now finds its way regularly to our co-operativo friends in many parts of Australia, and several of tho kindred associations in this Dominion are also drawing thoir supplies through us. BACON FACTORY AND COOL STORES. This ventilre was embarked upon, in tho first place, to* afford a service to small farmers and pig breeders, and I can unhesitatingly say in this respect the Association has achieved its purpose. The factory has also been a (rreat help to the Association's provision departments, in providing cool storage for its dairy produce, etc. GRAIN AND PRODUCE. Perhaps no branch of the Association's business deserves more consideration of its course during the past twelve months 'than that coming under this designation. I do not mean by this the actual course of the past year's business, but consideration of the position as a whole. It has been urged iot many ycare by those who have studied political history, that special terms and inducements should be given to grain and produce growers within the colony, to ensure that n't least the colony as a whole should be self-supporting. It i was contended by these people that in the event of any warring between nations possessing maritime forces, unless this special consideration were given grain growers, and if the colonies failed to be self-supporting, when hostilities occurred, the inhabitants of one colony might bo in a very awkward position, through supplies bein" cut off by enemy ships. How nearly this was borne out during tho past year I cannot say accurately, but we do know that enemy warships and commerce destroyers were at one time threatening this Dominion, and were within two or threo days steaming of our princioal cities'. Fortunately, the danger fias passed, and we naturally hope it will never recur. At the same time, the warnings and experience of the past cannot be ignored, and perhaps, now that this lias been/ brought so closely home to us, it will not bo eo hopelessly ignored in the future.

In making these remarks, I do not wish it to no understood for one moment that I am advocating a special bonus, which would re-act as a tax on the consumer, but I do wish to make it clear that, if from any cause the production of cereals is allowed to fall away, a consequent burden and dislocation may in itself be a very serious causa of disaster to this country. Whether the steps taken should be in the direction of an assured price, on somewhat the lines that the English Go* t T —

There is always a clamour raised amongst the ignorant and unthinking if through bad harvests or world's fluctuations in price, any of our staple cereal products rise above what i s considered normal rates. On the other hand, if farmers are confronted with unremunerative Rrices and poor yields, what is more natural than that they should turn their attention to more profitable articles of production? Tho subject is one deserving moro than passing attention, and in my opinion, some measures should be adopted which will ensure grain producers in this country a reasonable reward for their labours, while, at the same time, checking any undue exploitation of the consumer. The past twelve months has seon some crude attempts made to" deal with the position—attempts which wero almost foredoomed to failure, primarily through tho lack of efficient organisation of our statistical bureaux, supplemented by amateur efforts to deal with what information was availablo. Had the Government commandeered all wheat supplies, it would have afforded effectual protection to growers and consumers, instead of which, an attempt was made to fix maximum values fo,r wheat. Such an attempt could only lead to failure, either by evasion or non-compliance. Tho net result of that effort was the. natural consequence, but in addition, considerable quantities of wheat wero imported, and sold at a material loss to the Dominion's finances. This year, owing again to tho lack of accurat© statistical information, relating to both area and yield, both grower and consumer were entirely misled as to the actual position; tho consequence was that when tho new crop became available, prices went to a very high level, though not nearly to such extreme prices as ruled in the world's markets. Then when tho census was taken in July last on tho basis of the threshing, and the actual figures wero published, we saw what amounted to practically a collapse in price. The consequence is that millers and merchants who stocked up, in good faith of Govcrnment statistics, and farmers who had not marketed their crops, find themselves faced with very serious losses. • The Government estimate showed a shortage,of 1J million bushels, and, on the strength of this, they purchased 45,000 bushels from Australia, at* 6s 6d, they borrowed a further 100,000 bushels from tho same source, , and they purchased 405,000 bushels from Canada at 7s. As tho result of some strong representations which were made to the Government, they caused another official estimate to be taken, which supported the threshing figures, and it showed that there were 4,100,000 bushels in the Dominion for 6even months, plus flour not used, equal to about three-quarters of a million bushels in excess of' requirements. I consider, therefore, that the Government should lo?e no time in removing tho export embargo, y to admit of a reasonable ouantrfty being shipped to Australia. The equivalent could easily be brought'over if it were required, in December next. I sincerely hope that one result of the past year's working will be to force home upon the Agricultural Department of the Dominion, the absolute necessity which exists, of obtaining accurate information annually, of the area in crop, prospect®, and ultimate yield, so that the true position may be made clear to us all. Apart from wheat, we have had a profitable market for oats and other cereals, and potatoes. Through tho drought which existed in Australia, but which has now ended, there ensued a demand for mill offals, chaff and straw, end it is many yeans since this province has been go denuded of the once familiar straw stacks. With regard to the Australian business in produce, our neighbour across ».Ka Tasman has an unenviable reputation for sharp practices on the part of many of her" merchants towards those

the present produce season will long; be remembered on account of the eorry experiences of many of our New Zealand shippers of fodder- stuffs, potatoes, and other produce. As long as the Australian market is buoyant, there is a reasonable hopo of shipments being accepted, and one's drafts being paid, but the moment a reaction occurs, as happened this year, look out for 6qualls; contracts aro thrown up on the most trivial pretext by unscrupulous buyers; all commercial morality and decency are cast aside. We have had shipments of potatoeg refused for no other reason than that they were one day Qver contract time of shipment. Fodder contracts havo also been repudiated with most shamefaced impunity. Of course there aro some refreshing exceptions amongst Australian produce men, but, nevertheless, there exists an urgent need for the Govprnmonts of both these, countries to legislate in some way that wil] afford business men a, reasonable measure of protection. AGRICULTURAL MACHINERY AN3> OTHER AGENCIES. This is a department, which, although satisfactory, warrants, I think, better attention and suppdrt at the hands of the farmers than it receives. The Association handles a splendid. range of implements and general farm machin-' ery, prices of which will compare with any competitors. Your Board would be glad, therefore, if farmers would take advantage of this medium of obtaining this part of their requirements. MOTOR DEPARTMENT. This agency continues to thrive, and a very large number of vehicles of all descriptions were disposed of throughout the year, with absolutely no monetary risk to the Association. This business is conducted, as I have stated on former occasions, solely upon an indent basis. AUCTION AND STOCK DEPART- ; MENTS. There is perhaps no department in the business, with which the farmers are .in closer touch, and you are all so familiar with the exceptionally trying experience of the past season that further explanation from me, I am sure, is quit© unnecessary. The congestion that occurred at the several freezing works through the disorganisation of our shipping, and the dry season which exaggerated the position, seriously affected our commission earnings, which closed off with £25,986, against £30,905. for the previous twelve months. Our officers have worked hard under most anxioris conditions, and I am sure their services are fully appreciated. In these troublous times, it is impossible to what the season immediately ahead will be, but farmers may rest assured that every possible care and attention will be forthcoming from an efficient and eager 6taff, with respect to any business entrusted to the Association. CLEARING SALES. This part of our auction business continues to grow. A large number of very satisfactory sales were conducted by the Association throughout the year. COUNTRY RESIDENT STOCK AGENTS. A complete organisation of country agents exists throughout the several districts, and I believe they perform valuable services to shareholders in their respective localities. WOOL. j The position of this commodity is oer- ■ tainly unique, and prices promise to be on a very satisfactory level for the coming season. In view of the fact that Continental outputs have been practically barred for twelve months, it would not have been surprising had the restricted markets borne signs of weakness. On the contrary, the Armv re-

quirements have been bo extensive tliat prfces have steadily hardened, and the difficulties' which, have confronted manufacturers have been, not in getting their wool to the English portß, but in obtaining delivery, owing- to the retarded discharge of the carrying vessels through dock and rail congestion. What the ultimate effect of the war will j be it is, at this stage, difficult to fore- j see. At present, the English exports trade must be very greatly restricted. J When hostilities cease, the world's finances will be so greatly disarranged that it may bo some time before business resumes its former channels. In the interval, we must look for fluctuations from various causes, but it i 8 not unreasonable to anticipate that from some quarter there will be sufficient demand to maintain prices at a fairly high level, especially so, as wool is one of those products which cannot be increase «d in supply very rapidly. ; It is very gratifying to your Board, and I ahi Bure it iB equally bo to shareholders, to noto the steady growth of this Bection of our business during, recent years, 'as the following figures demonstrate: — Bales offored by Season. Association. 1911-12 ... , ... 9,214 , 1912-13 ... ... 9,952 1913-14 ... ... 11,707 j 1914-15 12,270 And there is no reason, so far as I can see, why tjho Association should not soon occupy and maintain the premier position in this product. I should , like aiso to say how glad I am to note that the "Superior Jury" of the Panama Exposition, reviewing the awards made at the end of June last, recognised the great merit of New Zealand wools ; which represented a variety distinct from other national competitors. It was realised that for Australian merinos, excellence occurred in specific directions for certain purposes; whilst the long and crossbred wools of New Zealana enjoyed, an excellence of standard for their own particular typo, and New Zealand was awarded a well-merited Grand Prix for its comprehensive collection of long and crossbred wool, j SUPPLY OP TONNAGE. ' With the experiences of last season in mind, it is only natural that a considerable degree of anxiety Bhould exist among producers and those immediately concerned, regarding the supply of suitable tonnage for the coming season's requirements. The matter has been freely discussed and considered by tho various Chambers of Commerce and the Farmers' Union, as well as this Association, and representations have been made to the Government, urging that every endeavour bo made yrith the Imperial authorities to release steamers of a suitable class, to ensure the necessary freight for our wool, and to avoid if possible, a recurrence of the deadlock of last year. Our own London offico was instructed to get into touch with the High Commissioner and other influential men interested in New Zealand trade on tho subject, and we were recently assured by cable message that ample tonnage would be available, but that rates of freight might be expected to rule higher. DAIRY PRODUCE. The position in regard to dairy produce is one which perhaps in this province affects us less than in othora. Last year, in view of the uncertainty, and with the desire to ensure a fairly satisfactory price, a very large proportion of the output in New Zealand was sold outright. Those 'factories, on tho other hand, which sent forward "on consignment," have benefited very largely, extremely high prices having • ruled throughout the season in Britain. Cheese and butter have formed an important part of the soldier's ration, and it has also been interesting to note

on the battlefields of Europe* tboJM* "t bearing the names of familiar jMwmiu - factories. At present there - j prospect of the British CteyojriUfcwit *©• a quiring outright a certain'peroentasp of the coming season's output, ana this must have a very important bearing on Jffi the maintenance <of present prices. At -• -ir J® i the same time, it is ■well to j that this product has received mfon' I more attention in otnor countries, and 'ffijjggj , especially in the United States. where I it is reported that a very large_uyre>lft, ! in production has occurred. ■ /With. sible shortage of labonr. and bearmgffijSSaaSß mind the strides which have been madf in milking by machinery, it is than probable that increased attaatwjMßaHß will be given in Canterbury, daring ( next few years, to these productions. ; FROZEN MEAT. , ' '''gaMI i The past twelve months have full of interest in connexion with tMajijßßjs ) very important branch of the i minion's productions. Vcry eary the season it became apparent there would probably be very able difficulties with regard to freight, and, consequently, at the works. Unfortunately, : if ; not then realised how acute this ] shortage would , beoomcj . earlier action would, have been supplement 'the storage - available of,our meat-carrying ships, sunk by tho enemy, and while to these, may I again be ' pointing out/' tho remarkable plishments and efficiency of BriUlHHffl Navy, in that the only actual ]ooSjgm9g| the colony'h regular traders by the loss of these two sbipis. ever, as tho season progressed. when the storage question was becaaMffifflm ing acute, the British GorenflnMNg|«HH stepped in and commandeered all supplies. Prices were fixed, and fairly high level, though, as matt#*||ra™ have resulted, not so nigh as wwuffrajama havo been obtainable on tho kets, but on this point I' will not large, for 1 am sure our patriotism sucn that wo are not prepared to cewjgifira at any action which .results in. troops being well and properly Unfortunately the season went growers, and, when it became abawotsgyMH necessary for them to send j their stocks, 6pace could only be jfor a voir limited percentage. question tnen arose as to the allotgWftlßM of freight space, and > the question raised of other provinces being' aWapPp favoured than ours, in this It is useless now, discussing tho. I. and cons of tho matter, but I few tified in- saying that in my the diro necessity, of this through climatic causes, did not full and fair consideration. One' portant feature of the business attempt made (gmd which we as co-operators) to bring seller , sne||||||| buyer into closer touch through vernraent price "per pound" being vertised, and tho freezing services being utilised to receive and collect payment on these Unfortunately, the beneficial this step were to a great extent. stricted by the companies c*>ntiiraingjjg|||g| allot epaco "pro rata" in with earlier deliveries, and means dealers and speculators had# "IM| I consider, under tne circnrostonceay undue control, and also were materially to benefit themselves at expense of tho producer. # I hope that this eloment will be. out of action if a similar tinued another season, and that, through the Association, or tho producer may derivo the full of scheduled prices. As some in this direction. I would urgo to look a« far ahead as possible, Wgg||EJ endeavour to engage through jWiCflSggfflW direct, at least a fair proportion requirements. The delays and tion referred to, as migbr be «tpecw®gMß • took a very long time to remedy,: jßfpsßß though the Canterbury works" wfMM this had promised additional the closing of the killing necessarily delayed, and much

and loss were cnu.-ed to stork fatlencrs. Tho clearing of the works was necefrmrily delayed, and it j* only now, that the "final shipping is in hight. One result which may accrue to producers later, if the extension of market* on the Continent. Frozen meat has beconio <-<• very important factor in conntrim which have hitherto practically prohibited its importation, and having once obtained a footing, in mv opinion jt will not bo displaced. The destruction of live stock, too, must have an important bearing on later food supplies, and I feel justified in predicting that with tho increased demand and consumption, the outlook for meat exporting countries je decidedly in' favour of the producer. The position tho colonv occupies in regard to over-sea freight is at present covered by the British Government's action in commandeering all insulated space. When that action is abandoned tne conditions v'i'll doubtless revert to certain companies working in accord and controlling the export trade of tho Dominion. ],i"previous years, I havo pointed out what an element of danger this monoi)o!v is to the producers, and I would n'*:iin etinhasieo the necessity of comiifned action being taken by all associated bodies representing them, to obtain more satisfactory conditions. _ I 1,„po that one result of the combination of action amongst the variou< co-opera-tive associations will bo to keep alivo ? nd formulate some plan whereby freedom of trade in connection with this most important question will be ultimately 6ccured.

CO-OPERATION. Are we making tho most of our opportunities 'i Distinguished visitor jroia other countries, whilst congratulating ik upon tho wonderful strides tno co-operative movement has mado in this country, have almost invariably expressed surprise at the great number of ecparnte farmers' organisations and asbCh'intions of one Kind and another, that exist here, each one apparently pursuing its own course in its own way, with a consistent exclusivencss, yet at the time time, professing the samo ideals, i.e., protection and furtherance of the common interests of tlio agriculturist and pnstoralist. There can bo no doubt, there is a tremendous amount of overlapping and wast ago of individual effort, simply through tho lack of organisation, and a hotter understanding of one another. What would unionism, as we know it, be worth to tho trades and artisan classes without organisation? Absolutely nothing. The same principle applies to the producers and tho agricultural interests as a whole. Meetings are constantly being held of farmers, in various centres, when all kinds of, important subjects aro discussed — perhaps the question of cheaper freights, or it may bo a discussion concerning alleged inequalities in the profits of our mint and other produce, reduction in the cost of distribution, etc.; no matter what, so far as that goes--tfie fact remains that very little is ever achieved, simply becau.sc w aro not properly linked tip together. Last year I intimated that a Federation movement was on foot, the object being tho joining of the forces of several Farmers' Co-operative Associations throughout this 'country, and I advised you . then that a very representative confoenee had taken place, and that the scheme was approved. I now have the pleasure of further advising you that a second conference has been held during the year, working regulations lmvo been adopted, and the various interested Associations are now taking the necessary steps to amend their respective regulations to enable them to join the scheme. Our shareholders will also be called together in general meeting one day soon for the purpose of giving their assent to certain amendments in our memorandum of association, to permit of this Association joining in with tho others. Tho proposed Co-operativo Wholesale Federation will, I trust, come into actual being before very longhand. I believe it is destined to play « IWus jt£i»n porta at part in tho interests «f "The"producers of this country. There is one natter to which I would like briefly to refer, though it is an uiußtial one in a gathering of this sort, but I feel you will not consider it out of place. Whatever we may think about war in the abstract, and unanimous as we all must be in feeling that this terriblo. conflict has been forced upon us, filled.,a* wo are, too, with loathing at the inhuman and devilish practices which-our enemies have waged against ■usj, ihere ift one bright feature which has stirred our emotions. I do not mean tho -i valour with which our pons have borne' their part in the conflict — we im> nil animated with feelings of in- J tense' pride in this respect—but I specially refer now to the remarkable way iir whiclv <jur womenfolk bavo worked atid laboured in their mission of mercy. I need hardlv say that I allude to tho stronhous efforts on behalf of the Red Cross and kindred Societies. No words of mine can eulogise sufficiently their effort#. antl they have certainly made gigantic efforts "to minimise tho sufferings if the sick and wounded, especially when many of thrsm selves have been suffering.with aching hearts, over tho loss.of their own dear ones —husbands, kQfbp and brothers. I know of many 'such ..instances, and I cannot find words to'adequately express my feelings of

admiration for such truly noble sacrifice. In far-off lands, their mercies and labours of love will ho felt, but we, representing to-day the largest j community in North Canterbury, may fittingly pay a tributo of praise and appreciation to their invalnablo services, and convey to them our unstinting thankfulness. ' I now have pleasure in moving tho adoption of the 31th annual report and balance-sheet. THE DISCUSSION. Mr George Gardner seconded tho motion, and said he did so with feelings of great satisfaction and pride. The figures of tho balance-sheet were set out lucidly, and were comprehensive, and he congratulated whoever was responsible for the thoroughly understandable manner in which the balancesheet was presented. He could truthfully say that the balance-sheet was one of progress, one in keeping with the times, and one founded on common sense and judgment. Referring to those who did not fully support tho Association because they got such and such an article threepence or sixpence cheaper elsewhere, he remarked that either they did not mean what thev >aid or did not see further than their nose. 'Laughter.) They had only to remember the way buyers of grain and produce used to treat tho farmer with singular unanimity in the matter of price, and compare it with the treatment, accorded them by the Association. In the Association the farmers had an organisation that was out to look after their interests. Regarding tho fixing of the price of wheat, Mr Gardner eaid lie was of opinion that the Government made a big mistake in trying to interfere with the supply and control and fixing of prices; it was too serious ix thing to rush at in a hurry. As to the difficulties which arose owinc to tho shortage of .shipping space, Mr Gardner said that Mr Kelph, the Association s manager, had aono more than anybody elso to remcdv tho trouble by communicating with tlio Jli»h Commissioner (the Hon. Thomas Mackenzie). As a consequence, tho great anxiety felt regarding the luturo ot the wool season had been allayed to a large extent,

THE WAR FCXD.S. Mr J. S. Barrett said lie regretted that there was no direct rel ere nee in the report to the subject of the Association s contributions to the war funds, although the chairman in his address had referred to the subject. It would be seen by the balance-sheet that subscriptions to the patriotic and other "war funds totalled £013 10s 3d, while tho Association's profits for the year amounted to. £02,832. Those profits wero due to tho manner in which the directors had conducted the Associaaffairs, and also to the Association's excellent and worthy' manager, who possessed business capacity amounting to genius. Reference had been mado to the work done by the Reel Cross, but notlnug was said about helping it. He appealed to them to devote £10,000 to the various war funds, and suggested that the amount proposed to be added to reserves should be diverted to that purpose. If, as individuals, they were in the position, after the war, of maintaining thoir liberty and freedom as British subjects, and had as much money as when tho war started, they should be content. The same applied to tho_ Association. ■ If his suggestion were given effect to, the reserve fund would stand at £121,000 instead of_ £131,000, and he respectfully submitted that there was no company in New Zealand that would have a, reserve fund in a hotter position. Surely they ■were men enough, to play the big game* He moved as an amendment: —

"That the sum of £10,000 bo allocated by the directors . to the various patriotic and war funds.". t The chairman said that before tho amendment was seconded, ho wished to explain that the amount shown in the balance-sheet as devoted to war funds was only a. tithe of what had been given. Ho had heard it said that the Association had given very little, and had asked Mr Relnh to prepare a statement on the subject. It would show that close unon_ £10,000 had been given. Mr Rclph said that at the beginning of the war, according to last vear's balance-sheet, £1000 was allocated for war fund purposes; then the directors authorised the expenditure of £.500. and *Uow they recommended a further £1000 tor contingencies in connexion with tho war. During the year the Association' had 'given of goods and material to tho value of £437 10s; indirectly in. tho . form of proceeds of concerts, £'1360 had been given; there wag collected on behalf, of tho Association's candidate in the Queen of the Carnival competition, £IGJ>4; and the members of the staff had contributed £822 10s. This mado a total of £6779. These figures related to Christchurch only. Tho Association's branches located in different parts of Canterbury preferred, naturally, to support funds raised in their districts, and their contributions amounted to £2000. He might bo pardoned for mentioning (though tho

directors desired that their gifts should bo mad© unostentatiously) that the Association held policies amounting £12,000 on tho lives of those who had gone to the front—many from the Association's own ranks —and the premiums were paid by the Association. (Applause). As a private shareholder in the Association. -with the chairman s permission, ho desired to remind members —(and he did so whilst being VCI much in sympathy -with Mr Barrett, who was As patriotic a» anyone could be) —that tho Association's business was not one man's alone: it belonged to 8000 people. It was not for a meeting representing only ft portion of that number to say that £'10.000 to be devoted towards maintaining the stability of the concern, should be diverted m the direction suggested. Mr Barrett said that neither tho directors, nor Mr Uelob nor anyone els© must think that ho did not know of the matters mentioned by Mr Relph. A great deal of the money given was not the shareholders' money, but was given by the staff —more power and more credit to them. He did not think that the diversion of £10.000 would seriously affect tho Association's position. The chairman remarked that in all probability many of the shareholders had contributed to the war funds, and he did not think it would be fair for a small proportion of the shareholders to say that they should givo again. When a seconder for the amendment was called for, a shareholder said he would second it "pro forma." 51 r Barrett said he did not want it seconded "pro forma." Jlr G. Gosset said ho would second it "con amore," and added that if the Association's assets were paper assets, he would have had some diffidence in seconding Mr Barrett's motion, but when ho saw from the balance-sheet that in cash tho Association had a sum of £1.>~.000 lie did not think that the Association would feel the pinch very much if it paid the £10,000 right away. On a show of hands Mr Barretts motion was declared lost. Mr J. S. Inwood asked if it would he in order to move that each shareholder should devote 1 per ccnt. of his dividend to the war funds. The chairman «aid it would bo in order, but it would be hardly fair to ask a small proportion of the shareholders to decide such a matter. The motion for the adoption of the report and balance-sheet was agreed to. OTHER BUSINESS. Messrs F. H. Brittan. H. T. Cooper, "VV. Dunlop. F. Hubbard. David McMillan. and AYm. McMillan, the retiring directors, were re-elected. Messrs W. Jameson, AV. S. Newburgh. and J. H. Stringer were re-appointed auditors at the remuneration fixed last year. Mr Fred Horrell moved a vote of thanks to the directors and the staff, which was agreed to. Mr "Relphj in acknowledging, on behalf of the staff, said that much as he appreciated the kind things said regarding himself, the results attained by the Association did not come from liiin. The Association possessed a most excellent staff, and a number of its principal officers were animated by a keen desire to promote the best interests of tho Association. All tho credit that ho (Mr Helph) could lay , claim to was in respect to encouraging esprit do corps amongst tho Association's employees.