TRADE YEAR REVIEWED

Hawera Star, Volume LI, 20 June 1931, Page 5

TRADE YEAR REVIEWED

FARMERS’ CO-OP. SOCIETY SHAREHOLDERS’ ANNUAL MEETING CHAIRMAN'S ADDRESS. At the annual meeting of shareholders or the Farmers' Co-operative Society held in Hawera to-itay the chairman (Air Alex Hunter) moved, the adoption of the annual report and balance-sheet. In the course of his remarks Air Hunter said that the number of .shareholders was 3416, of whom 3049 had fully paid up, leaving 367 with partly paid up shares. “The amount due- on these is £7BBO, an average of less than £22 each, and besides wnich there is an amount of £259 ySc uncalled,” he continued. “The paid, up capital shows an increase of £1335 for the year. It does not appear necessary for me to add anything to the auditors’ comment on the variations of the main liabilities, bank overdraft, mortgages, deposits, and sundry creditors . Besides the amount of £3OOO placed! to the general reserve from the previous year’s profits, there was a sum of £looo' put aside as a building reserve. In the face of receding values, and the sluggishness of the property market, it was deemed advisable to transfer this sum to property account,, •or in other wonts to. write it- off the present buildings, besides which a further amount of £2OOO has been written off. Afachinery and plant_ have also been written down bv £2251, so the total depreciation is £5251. “Although the retail business has been extended, by careful organisation of the stores, and the regulation of supplies from the wholesale department in New Plymouth, stocks are kept more lower ~ in projiortion than was formerly possible, and' for the purposes of the balance-sheet have been taken in at bedrock on the day. The amount . sundry debtors is not over the mark for the turnover, and considering, that in such times clients lean more lieavilv on the society. The increase is only L2BSO, a few shillings! per head on the number of our clients. The total £262,030 is spread over 3773 accounts, an average of £7O. There are 323 accounts, covering £20,880, for machinery and cars under hire purchase, and 33 trade accounts. Of the remainder, 2867 are for amounts under £SO, and a further 319 iindter £2OO, so that the amounts are well spread. The advances committee has recently scrutinised the list of these accounts v and is satisfied that as far as con be judged at .present ample provision lias been made for bad and doubtful debts. It is note worth v that a large amount has been paid off these amounts since the close of the financial year. “Careful attention to expenditure was given during the year, and savings effected under a number qf headings. The following reductions have been made: Advertising £769, exchange and hank charges £173, legal £49, licenses £B4, motor expenses £693, rates £23, rents £159, repairs and maintenance £34S, stamps, and telegrams £136, stationery and printing £376. Increases are: Directors’ expenses £l2O (there have been more meetings of directors and! executive, anil better attendances),- insurance £lO9, land tax £lB, light and fuel £65 (the branch office at New Plymouth has been in existence for the full 12 months for the first time), salaries and casual! wages £2451, accounted for by (1) general increases at April, 1930,. 12) garage fioormen’s wages were for the previous year included in the motor trading account, (3) New Plymouth branch office ran a full 12 months for the first time, as did Air Sneliing’s salary, (4) extra assistants were employed on account of extensions in the grocery department, and Air Oaselberg joined the auction department. I mgv state at this juncture that considerable further economies have been effected, including, much to the regret of the directors and management, reductions in salaries. The total staff a.t April, 1930, was 153, of whom 25 resigned during the year, and 19 appointments were made. In the current year five have resigned and one lias been appointed, so that there lias been a reduction of 10 during the past 15 months. Further increases in expenses were cables £lO, and travelling expenses £llß, while we have been compelled to make a considerable provision for bad debts. The depreciation allowed as £1059 less, but as mentioned before £IOOO was transferred from the building reserve, so that tlie privision is only £59 less, and the I reserve for income tax is £3710 down. I do not dbubt. that you are all patriotic enough to wish that we could pay that much more to the Government and incidentally a. dividend.

YE All OF DIFFICULTIES. ‘‘The income has suffered considerably, gross profits being down £12,389, the reduction, as might be expected, being mainly duo to the lower values of both stock and wool, and to a.lesser extent to fewer sales of ears during the year. The merchandise section of our business, however, has more than held its own, showing a small increase over last year.

“We have come through a. year of severe difficulties, referred to' by many authorities as the worst of modern times, and no country in the world has escaped. Men of wide experience have from time to time stated the impossibility of forecasting with any degree of accuracy the values of commodities, but it seems to be generally accepted that we can look to a much lower average than lias been obtained for many years. From the time that the society was reorganised in 1926, a policy of drastic cleaning up was in-

suicuited, and we have to thank our late general manager (Mr \Y. A. Hewittj tor ins thoroughness and persistence in that direction. The auditors’ comment on our preparedness for the present slump is a great tribute to the management. in adopting these, measures, the diretocirs have never doubted that they had the wholehearted support of the great body of shareholders. During the past year the management and heads of departments have been steadily working on the redaction of overhead, costs, and making continual adjustments . and the effect of these and more recent economies will bel more evident at the endl of the current year. We. have heard of various schemes for the restoration of confidence and prosperity, but to my mind of them show grievous weaknesses. Legislation cannot make a nation prosperous, nor righteous, though it can do a limited amount of help. It can, however, work disaster quite rapidly. We should, therefore, be less ready to call tot the Government for help. Farmers have been doing much, of that lately. There are certain troubles in regard to our produce, for instance, which begin at home, and if we do not put these right as. far as we can, why expect the Government to make the other fellow Ho this,'.'that or fhe other thing? A nation is a collection of individuals, and if each one honestly does liis job and resolves to pay his own way as far as he can, there will be no fear of the prosperity of the nation. It will not come in a day. If it did it would not lost. Schemes to ‘get rich quick’ and ‘at the other fellow’s expense’ are fatal, however rosy they appear on the surface, and only help us to foot ourselves.

“During the year Air Hewitt’s term of engagement as general manager expired, and in terms of the arrangement made five years previously, All* O. G. Trotter was appointed to that position . He ha® quite come up to expectations, and the experience gained during his term as understudy to Air Hewitt in a. task which .has been no sinecure, will no douibt stand to him in his position of greater responsibility. I think I can safely say that he has the confidence of the directors, the staff and the shareholders. ■

“There was genuine regret that Air Hewitt should! be relinquishing the position, and it was considered wise by the directors to still avail themselves of his ability and energy, so he was offered and accepted the position •of inspector. “A. most (pleasing (feature, of the. association of these two officers has

been their loyal support to each other. Our best thanks are also due to the other members of our staff for their loyal service. Their live interest in the welfare of the society and co-oper-ation as a team is very pleasing.”