THE BALANCE-SHEETS OF CO-OPERA TIVE DAIRY COMPANIES.

Golden Bay Argus, Volume XIII, Issue 1, 2 June 1910, Page 4

THE BALANCE-SHEETS OF CO-OPERA TIVE DAIRY COMPANIES.

The N.Z. Dairyman says : “ The time will soon be here when the reports and balance-sheets of the many co-operative dairy companies wiil be published, each one putting its affairs before the share-holders in the most pleasing way possible. To those who know something of the workings of cooperative companies, interesting reading is often furnished, and one wonders how much some ol the auditors of these balance sheets know of the work they are called on to do. One sees such glaring instances of inaccuracy that iu the interests of sound finance one is led to advocate that only competent men should be allowed to pursue this branch of the business ; in fact, that men who are totally unacquainted with this particular business should be pi evented from misleading the shareholders by putting their names to balance-sheets which are obviously wrong. We venture to say that very many of the cooperative companies iu New Zealand are not working upon sound business lines, and that the paidup share capital is not represented by sound assets in a large proportion of them. The amounts allowed for depreciation arc in mod in-

stances totally inadequate, and in many of the cider companies we find that tiie rebuilding of the factories has had to be done by borrowed money, although the original

value of the worn-out factory .still icumins a so-called as.->et in the company’s balance-sheet. Much of this lias been brought about by Lbe insane desire of one company to outdo the other in payments for butter fat supplied.”