FARMERS’ CO=OP.

Hawera Star, Volume XLV, 30 June 1925, Page 11

FARMERS’ CO=OP.

ANNUAL MEETING

A quiet SESSION

Tli© annual meeting of .the Farmers Co-op. Organ iastion Society of New Zealand was concluded this afternoon after a quiet session, lasting a. little less than two hours. After the first edition of the Star went to press, the discussion and transaction of business were continued. Mr W. G. Belton said that some of Mr Hewitt’s criticism was constructive,. but on the other .hand that gentleman was,liable to create an impression outside that the directors had not been watching stocks and had been taking figures as correct without investigation. This last year an outside valuer had been brought from Christchurch to value certain of the stocks, and another individual report had been obtained in regard to other stocks. The directors were taking every precaution;, and were not taking “any old” prices 'for their .stocks. The company had a small finance committee, consisting of the chairman, the general, manager 1 and one other, which committee did the work suggested by Mr Hewitt. Also at the end of the year a small committe'e was appointed to review accounts. In reply to a shareholder, the chairman said the business at the Manaia branch had not warranted the salary of a man .statoned there. Consequently it had been closed. Mr E. Long said he thought that notice of the closing of tlie . Manaia store should have been given, .and also an intimation to the people of 'the district that goods could be supplied cheaper' ,• from Hawera. Mr M. Phillips said that when the company was formed it was agreed that £5 a share should he called up. Later other arrangements were made, and a further £5 was called up. . He thought it would have been more satisfactory .to all concerned if a. reasonable interest had been paid for the addi-,. tional £5. The chairman said it was illegal to pay interest on called-up capital. Oil called-up capital dividends could be paid, but, of course, dividends could only be paid .out of profits. Mr. Dunn said his idea of co-opera-tion was not to pay interest* on shares, but to use profits to reduce the cost of goods to the shareholders. If this policy were adopted they would soon he beyond competition. Mr' Hewitt said the way to create confidence was to. give a return for capital. The day of putting money into a co-operatiye concern and never getting it out was pa'st. A reserve fund was absolutely necessary in order that dividends might be paid in bad ye ays. Mr |I. CL Dickie said that the only way to get loyalty was to render service. He thought that the company was giving service to its clients, but the calling up of extra capital had created .some dissatisfaction, and spine had “cut off their noses to spite their faces,” and taken tl*ir business elsewhere. Mr Dickie said that the standard .of commercial business in Taranaki was pretty high, and .consequently the company had to come into line. Mr Phillips asked if the company hadjoined in with other manure companies with the view to keeping up the price, , and so making the cost to the farmers greater. The chairman said that the company was not part of any combine. . In the disposal of shipments of fertiliser, however, they sometimes worked in with other firms, but that was to the,advantage of the farmers, as firms did not: then make-as great a profit as they otherwise would. The report arid •balance-sheet' were then adopted. The firm of Messrs Burdeldn, Walkley and Cameron was e'lected as the company’s auditor. ' Chairman’s and directors’ remunerations were fixed at the same as last year. . / • The meeting concluded at 1 p.m. with a vote of thanks to the chairman.