FARMERS' CO-OPERATIVE ASSOCIATION.

Press, Volume LXI, Issue 18431, 11 July 1925, Page 17

FARMERS' CO-OPERATIVE ASSOCIATION.

TO THE EDITOF. Or "TOE FRESS.' Sir.—l am glad to see that seme -">' the ,Co-op. shareholder.-, are out. '*■"> strengthen the directorate-- at l 1,?t - Among tho shareholders there must bo some with largo business experience, whose services could bo secured, retired managers of general trading concerns and others. A large iiuni!»:-r of us have left the country and drifted into town and suburbs and sec that local interests need not l>c.represented on the directorate, as was no.doubt expedient thirty years ago. Apart from mucrcseen misfortunes dining the slump, large building operations have been carried outon borrowed capital, instead or calling on the shareholders for some or" their uncalled capital. The opening or branches, .it Nelson and Blenheim, which places can he so r.uieh better, quicker and cheaper supplied from Wellington, seems an obvious mistake. I was through the Co-op. in Nelson in January, 1920. and a more hopeless place it was difficult to find : and my relatives, who are shareholders in the C<>on., round that in almost every.respect they were' belter served by other stores. Many of the shaies held bv my friends were' bought at a. considerable premium, but we are ready to face every "all. rather than losx should fall on those who lent, their capital en the credit Ot' our £M unnaid.—Yours, etc.. HONEST ORDINARY.

TO THI IDITOfc 07 "THE PMSS." Sir,—On Tuesday last that good old vessel tho JVTararoa, which admittedly ha-i - paid for herself over and over again, and has been a great source of revenue to her owners, was temporarily unable (o do a» well as usual. AH manner of suggestions were freely expressed as to what should be. dono. but the one who knew was the chief engineer, who, with his assistants, did what was necessary and got us into port. Similarly another good old vessel, the Farmers' Co-op., has been through some bad! weather, and just now cannot do as well as usual. Heaps of suggestions—good, bad, and silly—have been in ado to improve things, but the ouc who ltnows must be the man we have put in charge, who will putthings right and bring u.s into port, if given the assistance ho.says is nocessary. 1 am a. farmer who knows nothing of wangling figures, but this! know, the man I refw to has a reputation to uphold, and has staked that reputation by consenting to take charge, so for my part what he says goes. Quite reluctantly he Ji'as felt compelled to sugsest as the necessary remedy a medicine which to some seems nauseous, while others may'consider it tasteless, but T am 'taking mino in eornpletcsf confidence., feeling convinced it is lor my own good; and suggest other share holders should do the same without, making ugly faces-, which are not beneficial or encouraging. If they don't like 'medicine let them try a little "faith cure. I '—Yours, etc. FARMER.

TO' THK EDITOE OF "THE PMEBS." i Sir. —The shareholders of. this Association, whether preference or ordinary, are partners in the co-acorn, and the amount of money they have placed at its disposal • is the measure of the extent of their partnership. The management' is vested, by them, iii-'a .Board'of Directors, and the acts of the Board are the acts of tho partners. If, therefore, the partners (shareholders) are dissatisfied with tho Board, they have their remedy. The preferential shareholders have equal pon'cr.s with "the ordinary'shareholders in the management of the Association, and while, when profits are made, they are limited to six per cent, dividend, they arc'not promised a dividend if "no profits .are' made. Tho . position'is this: "If we niakc.no'profit, we take, no dividend." It is wo who make a. profit, or a loss, and if we make no'profit'we-'can get no dividend for our outlay. Whon adequate profits are made, - :the arrangement is that preference shareholders have first claim on those profits. It must not be forgotten that all shareholders are partners,' with equal responsibilities for safeguarding the interests of the Association, and nothing must ho done that would in any way injure the interests of those who hare* lout us money, namely, the depositors and tho debenture-holders. The of those interests must be absolute. As partners wc have been paid no dividends for some time, because no dividends could be paid. The loss him been.! serious, and to many could be ill-afforded. The reasonable policy, however, is to cut those losses, and with those hitherto hoped for dividends abandoned, give the - Association a fresh impn lee For forty years or more the Association has been a boon, not only to its partners, but to the eountiy generally, and the loyal support and cooperation of the partners will enable it to continue its usefulness. If wc as shareholders will recognise the fact of partnership, we will have a, clearer appreciation.of our relationship to the Association, and the consequent responsibilities that rest on us.—Yours, etc.. LANCELOT. AVATSON. Oxford.