FARMERS CO=OP. YEAR

Hawera Star, Volume LI, 20 June 1931, Page 7

FARMERS CO=OP. YEAR

DIFFICULT PERIOD REVIEWED. CONGRATULATIONS TO DIRECTORS. Sixty shareholders were present at the 17th annual general meeting of the Farmers’ Co-operative Organisation Society of New Zealand Limited, held in the Foresters’ Hall at Hawera today. Air. Alex Hunter (chairman of the board of directors) presided. Associated with Air. Hunter on the platform were Messrs. O. G. Trotter (general manager and secretary) and W. A. Hewitt (inspector).

The chairman, when opening tlm meeting, welcomed shareholders, hut regretted that the attendance was not largei. Following the address of the chairman, which is published on -page 5 of this issue., the annual report, balance sheet and statement of accounts as circulated were adopted on the motion of the chairman, -seconded by Air. N. B. Fryda-y (Stratford), who commended the directors for the success of the society’s operations during the yea*;. !Mi*. AV. G. AVa-Lklev, apeiukiiio; -to the adoption of the auditors’ report, said that the year covered' by the accounts had been a difficult one for all classes of business in th© Dominion ami particularly for enterprises closely in touch with the fanning community. These things being as they were, it j was not surprising that the net earnings of the company showed a decided reduction when compared with the previous rear.

With reference to the above, Mr Wailkiley said that the expenses for 1931 showed an increase when compared with . previous years. This was largely due to the fact that this year substantial provision had been made for bad and doubtful debts. So that shareholders might conveniently obtain a- clear conception of the company’s position this year, as compared with the previous year, the speaker drew attention to the following condensation of the balance-sheets, with figures for the year ended A larch 31, 1930, shown in parentheses: Liabilities. —Paid-up capital, £212,820 6s lOd (£211,485 9s Id); calls- in advance, £ — (£ —); mortgages, £17.012 12s Oil (£47,833 10s); bank overdraft, £52,607 11s 5d (£31,862 5s lOd) ; fixed deposits, £36,350 (£38,116); sundry trade creditors . and amount at credit of clients’ accounts, £52,530 2s 2d (£62.881 6s 8d); unclaimed dividends, £77 13s 3d (£57 3s 4d); reserve or income tax. £1025 (£4735) ; profit n-rl loss account, £5411 15s Id (£17,549 ]2s 3d); reserve account, £3OOO (£—) ; totals. £380,925 Is 3d (£384.503 7s 2d). Assets. —Freehold and leasehold land (less depreciation). £60,338 16s 2d (£63.172 7s <sd); machinery and -plant t less depreciation), £11,065 Os lOd £10.744 15s 9d); stock on, hand, £42,136 Os 4d (£46.030 4s sd); sundry debtos, less reserves for doubtful accounts 2232.030 13s 6:1 (£259,150 13s 3d); war loan stork, £456 10s (£4lB 9s 2d); sharea in other companies, £4500 £4500) ; cash in hand, £167 15s od £486 17s Id); totals, £380.925 Is 3d (£3.84,503 7s 2d. At Marel 1 31 the bank overdraft was £20,805 5s 7d higher than at the same late in 1930, hut against this there was a- reduction of £1766 in debts due in depositors, the amount due to trade creditors was less by £10,354 4s 6d, and during the year the company’s mortgage debts were reduced by £791. The credit department of the society continued to be well organised! and from Alardi 31 to date £43,655 6s lid was paid to the company in reduction of the book debts which at March 31, 1931, amounted to £262,030 18s 6d. lu so far as plant, book debts, stocks ■ and organisation were concerned the] company -found' itself in 1931 infinitelyj better equipped to meet a period of trade depression, than it was when the 1921 slump occurred. Substantial visible and other reserves had been pro-] vided to meet possible losses arising by reason of the present difficult times. I

In the year under review £5251 bad been set -aside for depreciation, and in the last nine years no less than £40,342 had been written off under this heading as follows : 1923. depreciation, written off. £1000: 1924. £1456; 1925. £1792; 1928. £12.039; 1927. £2377; 1928, £5389; 1929, £5729; 1930,1 £5309; 1931. £5251; total, £40,342. ! DIR ECTORS R F.-ELECTED. The retiring directors, Messrs W. G. Belton. H. A. Foreman, Alex. Hunter, B. C. Lysnght and ,T. E. Palmer, were declared re-elected. Messrs Walkley and Cameron, Hawera, were reappointed auditors at the same remuneration as last year. Votes of thanks to the chairman mil members of the board, and to the staff, were carried by acclamation.

Responding to the vote of thanks and appreciation to the staff, Mr. Trotter thanked the shareholders and gave the assurance that the affairs of the society were being administered efficiently and economically. At the present time the farming community was experiencing grave difficulties and it was practically impossible to value one’s assets. The society had felt the repercussion as hadlv as anyone, and the past six or nine months had been a period of anxiety and much strenuous work. The outlook was not so bright as it was twelve months ago, and the fact that no dividend to shareholders had been declared showed that the society was playing for safety. “There is no doubt that we must adjust ourselves to changing conditions,’’ said Mr. Trotter, “and I believe that much good will result from the prevailing depression.’’ 'The speaker continued that every endeavour would be made to lower the society’s overhead expenses the same as individuals were doing. There had grown up a generation used to a high standard of living, which it had taken for granted was the normal standard. The 10 ner cent, •‘cut’’ in wages would, he believed, bring about the realisation that the

world had lost its sense of proportion ; during the last 16 years and that a I readjustment to present economic oon--1 ditions would follow. Mr. Hewitt also spoke and thanked the shareholders for the confidence they reposed in the heads of departments and the respective staffs. Following the meeting the hoard j lunelied at the “Rewa.”