FARMERS' COOP. ORGANISATION SOCIETY, LTD.

Hawera & Normanby Star, Volume LXXII, Issue LXXII, 26 May 1917, Page 5

FARMERS' COOP. ORGANISATION SOCIETY, LTD.

ANNUAL MEETING OF SHAREHOLDERS.

The third annual meeting of shareholders of the Farmers' Co-od. Organisation Society of New Zealand, Ltd was held in the Foresters' Hall Hal wera this morning. There was aWe attendance of shareholders, presided

DIRECTORS' REPORT. reJort:- €Ctor& Suhmiited tlle following Staff Roll of Honor.—Several changes sS ta t k h en"V lai Cc ln the Pe«°^ ofX fnfmil +b t? llowjne r members having joined the colors :—Messrs F. H Ander son N. A. Arthur, B. L. Joll' C J hatifo ffiS* the Tlasf on the field of battle of Messrs J. A. Cramo and W itooth, both of whom have made the supreme saenfice for King and Country! and also during the year +h~ lJ^, through death, \i the IZ $« j^ triS Society and the dis-

Appointments.—Mr G. A Holder manager retired from the AS and in >nJ- Lynskey, late of N.Z Parri?ers' C<>-«P- Association, Ltd. Christchurch w «.appointed general manage^ ™Jnt A h°! ' acco«ntarit j being api pointed Secretary, and Mr T. J. Salmon succeedmg hxm j4 accountant &almon Auditors.—Messrs Rowley and Gill were appointed Jby tie directors and in accordance witn the Articles of the S?Ss r6tlre aDd Sgain <*« ftd?

Saleyards.—During the neriod we have purchased the saleyards' and gooX Co and opened operations in Stratford. Ue have also purchased a site ami S^ bulk 6tore thereon in ingS wood and completed the building of oTened^in t*£ "f yards We^ako Sir F l^ a < b/ ancil store at Manaia, aeenfr " iv ?, tevens \eing appointed tabHT^'"" 1* has heen decided to establish an agency at Waverley and upon completion of negotiations it is Jgjd to make an eat fy start In this 8

of^t iaJ aV~ Negotlations for the lease of a bulk store on the waterfront havW & roUgh'.-it has beeß decided to IS QUestlon in abeyance mean!

Share Capital.—We have issued 1477 chares to 355 new shareholder Jprl £9717 S anmcrease in P^u P capital of Fi ua^ C6-~'lh6 pett ront for the year m all departments is £7445 9s UdJSd £27 7«Q^ 3s, Bd;.?n office furniture, £f, I s 9d'l and «;ri^. in S £1500 off good^ *ill account, and £416 9 S off Prelimiof £5240 9s 6d, which your directors a locate as follows :-To pay a dffcount or < per cent on commissions earned (wool and land excepted), to pay I* per cent discount on all shareholders' merchandise purchases (except argicultural implements, motorcars and accessories) The directors furtFe r propose to pay a b per cent, dividend on "B" and "C" issue of shares, and after making the necessary reservation for payment of income tax and war excess profits tax forward rS f6eS ' t0 Carry th 6 balance

In accordance with the Articles of Association the directors to retire this year are M^smW. F. Cambridge, a D. Dickie, T Foreman, D. Todd and VVm .fcnes, all of whom are eligible for le-election without notice and offer themselves accordingly. In moving the adoption of the report an d balance-sheet the chairman said:

Gentlemen,—With your permission we will now proceed to the consideration of the directors' report and « -S?P.7^ foF the year encled Ma^h di, iyi7, and which you have no doubt already steidied. The balance-sheet hae again been made as full as possible, and arranged and worded with a view to its being understood. The number of shareholders has increased by 355, the total being 2273, and the holdings from 5618 to 7089 shares, an mcrease of 1471, while the M«ad-iip capital has grqwn from £20,316 to £JJU,I&j. These increases indicate a continuea confidence in the Society ana a beilef that it is out to give efficient service. Much more can yet be done; in fact, we have so far only scratched the surface, but we hope to develop and consolidate the business, to reduce expenses or secure better returns from the outlay, and to work into such a system that, when things find their level after tne war, the ttocietv will be able to conduct business for its shareholders equal, at least, to the beet. I would again remind you that this can only be secured by the hearty co-operation and loyal support of the shareholders, and in passing I must say that so far, there is every reason for satisfaction on that score. It is to be hoped that the steady increase in shares and shareholders will continue, tor a big business is being carried on and it ~-Sioves us to build up the finanl cjpl basis of the Society so that it mil be able to meet times of stress and stringency without fear, and to assist the farmer when he most needs it.

The bank account is in a reasonably healthy condition, and indicates that we are not leaning on that institution to the same extent as in the two previous years of our existence. We actually closed the financial year with a gross credit balance of over £8000. Against this there were outstanding cheques to the amount of £18,678, thus making the liability £10,578, in contrast to the sum of £21,173 as at March 31, 1916. The. amount of bills Vo- c o discount was also reduced by £d 042. The total indebtedness to the hnnk \va.s therefore over £14,000 less, lhis account, as I mentioned last year, fluctuates extensively and rapidly, but during the past year has given no cause for alarm.

The amount of these increases if written off the goodwill, would Jiave reduced it by more than the £3000 mentioned.

Ihe money is, however, well investe:l, tor I think none of you will disagree with the statement that it could not he better applied than in assisting to defeat the scheme of world conqwpst and enslavement by a Power wh:c.-ii is doing its best—or worst—to prove that it is unfit to rule. T would again urge upon you the benefits to be derived by placing your orders u-ell ahead for your requirement': m seeds, manures, etc., and so enabling the management to buy to i)ft,r>- : advantage and effect savings in handling, freight, and leakage. £416 has been written off preliminary expenses an item which, with go6dwill, A.c wi-1 bo glad to see disappear from onr statoment of assets, while the t-s-al depreciation has been allowed on ofwro furniture and plant. Jho amount earned through the renr- s orx-ratio^ was £23.141 16s 9d whu-n w;th £391 os or! brought forlo?\lo° n\ ,191^8, makes a total of £23,133 odd., and after allowing foexpose*, cVprcciation and writings off

a profit of £5245 9s 6d is left to be dealt with as set forth in tlie directors' report. Taking our average paidup capital as £25,024, the net profit would be equal to 20.9 per cent. During the year our operations have been considerably extended. At the end of June the new yards at Inglewood were opened with an excellent and the yardmgs have been well maintained Later on in the year the | new store there was also opened sto™ ° + ld rangem ent of opening the store at Manaia on certain days proved unsatisfactory and wasteful so Mr WF W 1 o! *° PUt in a stock > and charge. * *'** plaCed in o+lno + De^ emi)er, we the yards !at Stratford of Messrs Webster and Dobson, and after effecting repairs Slf et the™and an offic<? andTeA? +r\ fu"y .J ustified the venture. ay tne beginning of the vpav +Ti^ directors terSinateS the conS wSh the International Harvester Co m connection with the machinery depart- ■^\/ md concluded an arrlnglment »rs Booth, MaedonaM^SScto L ya s tf k over their Poises r>-^rZ al aI SO a^ged that that dest™ £ • should be run on a commission basis, but for many reasons thf* was not found to be satisfacTory so t ■SSit on^f^ *° reSUme S?ntaa «?rt, fomer SyStem from the opening ot the current year. ihe importation of meals has b Pfi n considerably interefered with by thl war and the directorsww e urged by local farmers to undertake the mixing ; Thi? 1 und*r our own brand I* 6 + i,dld' and with hardly a full season the output amounted "to 14

wSh :^ ordanoe Wlt£ the expressed HL a large number of our shareholders, we eventually decided to st AfsaciaSn.^ Auctioneer* At the very beginning of the Tear mThJ? *H b h reakdo™ m £4 ol it became necessary to appoint a new general manager, and UeMr° n TidT tion <L he Actors ™SwSi tl Lynskey, whom most of ?°£ r have met this. Mr Wkey received his training in the tion" of rw .^operative tion ot Canterbury, having passed Thk+r^ ? b°y *° branch manager. *railV ng was °°nsidered to be^ of special value to our Society,-for a cooperative society differs entirely in S aims and objects from an ordinary commercial concern. oramary nT S UI- thanks-ar.e due to Eelph and his association for the sacrifice they made m parting with one their responsible officers at a time ott n r,their- 6taF Waf' iD COmmo« S fT,f I LJnskey took up his duties at contr^lMlll^ °t tem^r, and thus controlled the business for the last seven months of the year. He had of s CZ?V + Or himself t0 condl?k>ns somewhat different to those existing i n Canterbury, while the application of siJ]" aining I tO l °^ r business has Produced a marked improvement 1 wish to correct an idea that has a xme, means gained currency, to the iffw^ '*£ iLj?ske* has Packed the Society back from perdition or thereabouts Mr Lynskey would no doubt -he the first to bear me out in this. Since its first throes this Society has never looked back, and has gradually gained m strength, and after their experience the directors were of opinion when making a selection that, •yen m the face of indifferent govern-' ment by its board and management by its executive officer, it would still succeed to a limited . extent. They also are confident that under good management there are huge possibilities to be attained.

The amount set down to sundry creditors shows an increase of £14,574, while on the opposite side sundry debtors shows an. increase of £10,868. When it is mentioned that the turnover has risen to nearly £203,000, it will be readily understood that the** increases are not out of the way. it should be noted, too, that while the amount owing to sundry debtors has increased by £10,868, the bills receirable account for £4420 and secured accounte for £4986 of the increase, w,hile the increase in unsecured accounts is only £1462.

It has been rumored that cheques have been held Back at time*, but I have the assurance of the manager that in no case has this been so, except where enquiry was necessary, or where, through press of work and shortage of staff, it was found impossible to get the cheques out on time. "Rumor is a lying jade." Don't trust mi aß^ 6 mana £erThe stock on hand of merchandise and machinery shows an increase of £6637, notwithstanding that it has been assessed at bedrock values. This is a very necessary precaution in these times of inflated war values, which must not be reckoned as permanent. Last year I stated that I hoped the goodwill account would bo written down by at least £3000. The finance Act of 1916, however, winch was passed after last annual meeting, increased our income and excess profits tax by £783 more than we made provision for, and this had to be paid for out of this year's profits, while a sum has to be set aside for taxes on the working of the year under review, so that the taxation for 1916-17 has, to a, certain extent, been double-banked. The excess profits tax hits a young and growing concern like this rather hard, for a considerable part of our increase is through extension of our business.

This subject must not be passed without mention of the excellent work done by Mr Nichol, who bor c the brunt of the responsibility during the first five months of the year, and succeeded in getting a good grip of the business. To the whole staff bur thanks are due for the manner in which the work of the year has been carried through, notwithstanding the many changes, necessL ta!^ by enlistment 6 and other causes. The rather sudden death of Mr Turton, our auditor, removed one who was widely respected and esteemed, and made it necessary for the directors to ' airange for the carrying out of (the work. Messrs Rowley and Gill, of W e l- ; Imgton were eventually appointed, and have spared no pains to mak e their work thorough. . i During the year a further stride in • co-operative ventures has been made by an amalgamation on a co-operative basis of a number of th c leading bacon curing concerns, and I would exreend to the promoters our congratulations, and commend them to your support. i We are really only beginning to real. | lse the vast possibilities of co-operation, ! and_ the need for it in these times, when I capita] is amassed or grouped in ; amounts which the imagination fails to •' grasp. Cooperation seems to m e the best one, of the few defences against the pressure exercised by such accumula- | tions of wealth, for their influence is '■ at times far from benign. ! Some of you have no doubt noticed ' the reference in the N.Z. Farmer to the '■ purchase by the combined English and ! Scottish Co-operative Wholesale Socie. < ties of 10,000 acres in Canada, upon i which to grow wheat to supply their co. ' operative flour mills. Mention is ateo ' made thaib they are increasing the area j of their tea plantations in India and Ceylon, and that they have also bought 8000 nercs of land in England. These startling figures giv c an idea of what can be accomplished, and indicate that ] ereatt things may he hoped for from the Federation of th© Co-operative So-

cieties of New Zealand. I will, however, leave that subject for Mr Relph to deal with. He has, at no little strain on his already fully occupied time, oonsenjted to he present to-day and address y°u, and when he has done, you will, I Afro agree with me that anything Mr Kelph has to say on co-operation is worth listening to. There are many subjects hinging on me great war which one might touch u P°n 5 out time forbids. At a meeting or laranaki farmers, such a large number of whom are directly interested in dairying, on e can hardly leave out some mention of the iniquitous ,I>utter-fatJ levy, which cannot be truly said to be a war tax. The strong protest being raised throughout the country will, it is hoped be successful in securing its removal if not its redress.

The humiliating spectacle of the country s industries being paralysed by a c°al strike, when ?the Empirel and its Allies are struggling in a deati-grapple for freedom, has fortunately passed, and incidentally revealed the fact that the majority of the men are Britons s«H. It would appear (that tie unions might improve their constitution in such a manner as to make it more or less impossible) for a few firebrands to gain such power as to decide such serious questions. M

Other conditions which also smrgesfc humiliation and which cannot be kid at the door of Labor, _are still allowed to oantrauem this and other parts of th« Empire, though the Governments know that the national efficiency is seriously affeqted thereby. It appears to m^ that we are yet a !°, n§ ay °- ff lea*ning our lesson, and that there is no hope of a satisfactory peace, until we are willing to make the necessary sacrifices, both as individuals and as a nation.

I make no apology for introducing this subject, for it is, or should be, our first consideration to assist in bringing the war to a close, and to see that the appalling sacrifices tnat hav G been made shall not be in vain. I now conclude by moving !th e adop™S*h +*?£ TaW? 3 nd balance*heet, and that the dividend recommended by the directow be paid. w "y