FARMERS’ CO-OP. YEAR.

Hawera Star, Volume XLVII, 14 June 1928, Page 9

FARMERS’ CO-OP. YEAR.

SHAREHOLDERS’ MEETING. DIVIDEND TO BE PAID. ADMINISTRATORS CONGRATULATED. Tiie payment of the dividend of three per cent as recommended by tile directors at tiie annual meeting of snare no ideas or the Farmers’ Co-opera-tive Organisation Society or New Zealand, Ltd., to-day, was the principal subject ol deDate during tne' discussion of the report and balance-sheet, out was eventually endorsed without dissent, tne discussion concluding at 1.46 p.m. hollowing his motion for the adoption of the report and balance-sheet and the payment of the dividend, as reported on page 6, the chairman stated that since the accounts were closed £68,187 had been received on account ol sundry debtors. The motion was seconded by Mr. N. 13. Fry day. Congratulations to the directors on the excellent position shown were voiced by Mr. ±L G. Dickie, ALP., who, however, considered that a live per cent instead of a tiiree per cent dividend should have been paid. It was not possible though for the meeting to increase the amount. Mr. Robert Bremer replied that as a large shareholder and a director lie could appreciate the big difficulties encountered by the' directors, and in view of that lie would have been content if no dividend had been paid at present. “With all due respects to Mr. Bremer, I think five per cent should have been paid,” said Mr. A. T. Christense n.

Mr. Bremer: “If you were in my position and had to pay seven per cent . . . .” Mr. Christensen: “I wish I were in your position.” (Laughter.) Mr. W. T. Wills considered that the amount of the dividend was evidence of the necessarily careful -adininistration of the directors-, whom he congratulated-. Mr. J. S. Con nett (a director) said the amount of the dividend had been carefully considered, and- he thought the decision was a wise one. The directors- appreciated criticism, but also required the co-operation of all shareholders. The latter should he proud of the fact that the corner had been turned, and he wished to congratulate the general manager, Mir. W. A. Hewitt.

“Things have taken a good turn. This- is the first time I have seen the full board and' also-the bank manager facing the -shareholders,” -said Mr. J. Cocker. He -agreed that the dividend should have been larger, bu-fc appealed to all shareholders to support the company. PRUDENCE ESSENTIAL. Mr. R. C. Hughes voiced appreciation of the work of the director.? and staff, and congratulated the directors on the' conservative policy regarding the dividend. Replying to Mr. R. Wickham, the chairman said the depreciation of £3009 allowed in respect of buildings and yards was at the rate of four per cent. In view of what he considered was a comparatively low depreciation, Mr. Wickham said it would have been better not to recommend any dividend. While* cautioni was necessary the future appeared bright, and congratulations had been earned by the chairman of directors and the general manager. “I don’t want to be called a wowser, but* I must object to Sunday trading. There should be no necessity for the staff to work or agents to be asked to see stock on Sundays,” concluded Mr. Wickham. Replying to a. point raised by Mr. Cocker, Mr. H. B. Gibson said the company’s agents who visited 1 the farms were keen officers carrying out a necessary work. Air. W- G. Belton (a director) said that the' directors had been on a joint and several, and were as much affected by the results as the other shareholders. It was of great importance that prudence should lie- exercised, and he had been opposed* to the payment of a dividend. Before the slump came not more than 50 per cent of share capital hadi been called up, and the company then had striking evidence of the necessity for establishing a strong reserve. ADVERTISE SUCCESS. “Out of our net profit of £11,392, £6252 will be absorbed by the dividend of three per cent, leaving £5140 to be placed to reserve. If a, five per cent dividend were paid another £4168 would be taken up, leaving only £972 to carry forward, and l that would not lie sufficient,” said Mr. R. C. Hughes. All - . J. Gibbs said that nothing succeeded like success well advertised, and the £6OOO proposed to he paid on tiie three per eeift dividend would do the* company a great deal of good, as £6OOO spent on advertising. Air. J. S. Tosland said- he was willing to leave' the' payment of dividend or otherwise to the discretion of the directors, who had proved by the balance that- they had a sound grip of the company’s affairs and merited congratulation on their efforts. Support* of the* policy followed l by the directors was also voiced bv Mr. W. G. Reid. “We have good management and good directors, -and) I can assure you. Air. Chairman, that in the* general manager and his assistant you have two very good men to keep you on the right track,” said Air. N. R. Fryday. Mr. C. D. Dickie expressed the hope that future years would be marked by the- payment of a larger dividend, but he* emphasised- the need for caution, and gave the opinion that had the directors offered the meeting the* choice of a 21, 3 or 5 per cent dividend or none at all it would probably have decided that no dividend should be paid this year. Air J. F. Stevenson said that while he had- always favoured t-ha payment of a. dividend, he thought that as the amount to be absorbed would pay off the company’s losses, it would have been better not to- advise the- dividend this year. Referring to thi? subject of canvassers, he thought that such were necessary, a,s the whoof the 1 company’s business could not lie carried on from the office'. Air A. Ga ml in 'endorsed the nemarks n e Air -Stevenson concerning, the work •of -agents, and! recommended the aipncintment of a drover agent. A proposal made by Air P. Thomson that the motion be. divided in order to tp.s-f the meeting on -the question :of the dividend did not receive support. SEVENTH DIVIDEND. During- the course of a comprehensive reply to points raised in the debate, the chairman .said that the dividend proposed would he the ispventh ill 14 vears. Ho pointed out that -the maintenance of stock agents* was essential, and commended the suggestion made by Air Gamfiin. He agreed: that overtime work by the staff was- to be avoided, if

possible, and the- policy would be to reduce it to a. minimium. Regarding' the calling up of account's, he said that such action had never been taken unless it had- teen deemed necessary in the interest}® of the particular individual. Criticism of expenditure incurred in respect of directors’ expenses was levelled by Air O’Rorke, who inquired the necessity .for having -three from Waver ley. A Waveiley resident, who described himself .as -a. mna’il 'shareholder, replied that lie knew the directors mentioned WCI33 opposed to the dividend, and he thought the shareholders “should take their hats off to them.” A brief address was given by the assistant general manager (Mir G. G. Trotter), who, in -appealing for the continued support of shareholders, pointed out that the profit of £12,000 had cost £I7OO, and stressed that by increasing the turnover the margin of cost could be decreased. v , VALUE. OF SHARES. The general manager (Air AV. A. Hewitt) also addressed the meeting. He considered 'the directorate was be complimented on the policy which had ■resulted in the submission of a* bala noeslieet -showing such a. sound position. Remarking upon the shares, live gave the opinion that they were fully worth twenty shillings: in the pound sterling, and strongly advised that they should noit he parted with. On the pon elusion of another year, lie hoped that -a better dividend than 5 per cent, would be available. The policy of economical management had been followed ns closely as possible, and the margin of profit would, lie hoped, be increased, though not by the means of charging customers more for the goods purchased. Air Hewitt thanked the directors and staff for tlieir attention to the affair® of the company, and 1 ,shareholders for their .support, which, lie hoped would bo continued and 'increased through their influence with other pre-sip ecti ve cl ienti®. “This is tiie proudest day of mv life, that we have- such a balance-sheet, which will -stand any amount of investigation. and that our efforts have been so well received by the annual meeting,” concluded Mr Hewitt. Answeniur Air H. G. Dickie, the chairman said that during the -last two veans the .amount of capital called up was about- £48,000. The motion for the adoption of the report and 1 balance-sheet and tin? dividend of 3 per cent, was carried without dissent. The retiring directors. Afessrs Aie-x Hunter. AV. G. Belton, H. A. Foreman. B. C. Lysag.ht -and I. E. Palmer, were tie-elected unopposed. Ales si v, AVallclev ia*nd C-amer-on were re-elected auditors. The chairman of directors -was voted

an honorarium ■equal to the amount previously ,^ranted. Voces of thanks were accorded thn directors, managers and staff in appreciation of their services. 'Mr J. Cocker, who proposed fjhie thanks to the staff, said the company was .served by officers who were without superiors in the whole of the Dominion In seconding trie motion, Mr A. T. Cm i.-’tensen proposed that the manager and assistant-manager be voted a bonus of £IOO each, but both Messrs Hewitt and Tyotter declined to accept the offer.