H.B. FARMERS’ CO-OPERATIVE ASSOCIATION.

Hawke's Bay Tribune, Volume III, Issue 189, 26 July 1913, Page 2

H.B. FARMERS’ CO-OPERATIVE ASSOCIATION.

-.. ■ ANN U.\ I, MEETING

Tlie twenty second annual general meeting of the Hawke's Bay Farmers' Cooperative Associaiion. l.td-. wa> held yesterday, the chairman, Air. J. \V. Harding, presiding over a representative meeting of members. The following report was submit ted by the directors ■-“The direc tors have pleasure in submitting to shareholders tlie twenty-second an nual report, and balance sheet. The balance sheet shows that, after making due provision for depreciation on plant, etc..'the balance of profit, including £961 8 8 brought forward from last year, amounts to L'i 1.7'.'9 19 11. which the directors recom

mend be allocated as follows : To pay a dividend of s per cent., a bonus of 17.1 per cent, on eommisions (land excepted), a bonus of 2A per cent, on goods (net goods ex ceptcd), £l5OO to be added to the reserve fund, and the balance car ried forward. Dm’mg tlie year Mr. Matinee Mason, who had been a

director since the inception of tlie association, resigned from the board. The directors take this opportunity of acknowledging his long and valued services. The following directors retire by rotation: Messrs. Archi-

bald AleLc.au. IL J. Twigg, and John A. .MacFarlane. ’ but being eligible offer themselves for re election. The auditor, Mr. Douglas Wilson, A.LA., N.Z.. retires, but beingeligible. offers himself for re election."

The Chairman, in moving the adoption ot the report and balance sheet, sa>d;—l msut congratulate shareholders on the satisfactory stale ot affairs they disclose. An analysis of the balance-sheet will show that for each £1 of liability the association has £2 19'6 in assets; a fact such as this reveals the stability

of the company. The profit and loss account is indicative of the very satisfactory year farmers have experienced— high prices for wool, for dairy produce and for fat stock. Returns from the latter source would no doubt have been very much better had it: not been for tlie unfortunate strike ui slanghiermon combined with a iiartieularly dry season. The returns which it is proposed to pay _ to shareholders should be gratifying. Air. A. Tl. Russell seconded the motion, which was carried unanim ouslv.

Air. Jackson raised the question of bonus to the staff. The chairman, in replying,, stated that the matter had received and was 'st ill receiving consideration at the hands of the directors. It was a question as to whether the promotion of a superannuation scheme or provident fund would not be more beneficial to the staff and the association than the course hitherto pursued. On rhe motion of Air. E. W. Knowles, the retiling directors, Messrs. Arch. AlcLean, 11. J. Twigg-, ami John A. MacFarlane, Were reelected.

The auditor, Mr. ('. 1). Wilson, was re elected on tlie motion of Mr. T. S. Glenny, seconded by Mr. Hartree.

A hearty vote cf thanks .was accorded to the directors and staff on the motion of Mr, Hartree, supported by Mr. J ack sc n. At the conclusion of the meeting an extraordinary general meeting of ■ the members was held to consider | the proposal to alter the art icles ,'.f I association in the terms of a resoht [ tion a copy of which had already been , supplied io shareholders. In moving I the resolution, the chairman said:--The object in view is to afford facility for the raising of new capital to meet the expansion of the association s business. The great growth must be apparent to you all. Om> i instance of the remarkable develop• ' ment that has taken place 1 would • mention, and that is in regard to the 'merchandise sales. These during the ■ last five years have increased by 1*23 l per (-ent., having for the year just i ended reached a total of X147,0H5. The local wool sales have also increased enormously, necessitating n very consideralie capital expendi tore for storage accommodation. It it nut considered prudent to rely ton much on borrowed mmicj- for such developnn nt. and the directors think it advisable tlmi you should so alter the articles of assm-iati<m to bring it within your jmwer to al, any lime, should yon deem it necessary, create a new class of shares v, hicli might very fittingly be termed investment shares. These new shares would probably he issued fully paid up. but bv reason of the preference tlrnv would enjoy over the ordinary share-, tlie dividend thereon would be limit ed to a lower rate than that which it has been customary to pay on ordinary shares. Though capital raised in this manner would no doubt be dearer than moneys obtained from depositors nr bankers .it would make tile association's position niuel. more stable, and stability is certain ly worth paying for. It is possible that you may lie asked at no distant date, should this resolution lie duly adopted, to sanction the creation of new capital. The motion was seconded by Mr. A. H. Russell, and after discussion unanimously adopt e d. A vote of thanks to the chairman terminated the meeting.