CO-OPERATION.

Hawera Star, Volume XLVIII, 29 September 1924, Page 5

CO-OPERATION.

FARMERS’ VENTURE. (BY TELEGRAPH--PRESS ASSOCIATION.) CHRISTCHURCH, Sept. 27. There was a large attendance of shareholders at the annual meeting of the New Zealand Farmers’ Co-op. Association to-day. Mr. J. R Pannett, chairman of direc_ tors, in the course of his address said: “We have assembled to review the results of the operations of the association’s forty-third year. The period has been quite an exceptional one, for bedsides the ordinary conduct of the business a great amount of time and thought has been given to the work of contraction, organisation, and stabilisation of our finances, and while these reforms in some respects may have had a disturbing influence, they were really necessary in the interests of the association as a whole. When the adverse conditions under which we have worked for the greater part of the year are considered. I think shareholders generally will agree that the results achieved, as shown in the balancesheet, have been satisfactory, and I feel confident that with the support of shareholders it will not be. long before we are enjoying prosperity in keeping with that of former years.

“Finance, no doubt, is the most important factor in any business, and in order to place this association in a strong position in this respect in November last we brought clown a fin-* ancial proposal whereby our bonds and deposits were converted into secured deposit stock. Our bondholders’ and depositors’ interests were protected by specific security, thereby placing their investments in a safe position. The benefits accruing from this proposal are plainly evident when comparing the present balance-sheet with that of last year ; The liabilities under this heading are well spread and do not cause us any concern. The full benefit of the introduction of this proposal will be more apparent during the ensuing and following years. The method of finance in the past, while being satisfactory when circumstances were favourable, required adjustment to stand up to the more rigorous conditions which at present prevail and which might be expected to continue for some time to come.

“It has been our aim to cause bondholders and depositors as little inconvenience as possible, and I am pleased to say that our depositors particularly, who under the proposal could obtain instalments, have nearly all elected to renew the whole of their principal for longer periods, thereby demonstrating their confidence in the association. I might also mention that this association is the first in New Zealand to my knowledge to give its depositors tangible security for the due protection of their moneys, and I feel now that conditions generally are on the improve, considering that our surplus assets over liabilities amount to £773,995. or, with the uncalled share capital, £1,196,578, and that new deposits will be forthcoming.” In the course of discussion Mr. H. D. Acland said the thing the shareholders had to do was to get the company back to a dividend earning state and to get down the interest account. To do this it might be necessary to consider the matter of calling up the uncalled capital of the company. The move would probably be unpopular, but the directors should seriously take up consideration of it, which lie thought would be in the interest of the company.

The report and balance-sheet were adopted, and the meeting was adjourned for four weeks to consider the appointment of auditors.