NEW ZEALAND FARMERS' COOPERATIVE ASSOCIATION OF CANTERBURY, LIMITED.

NZ Truth, Issue 695, 12 October 1918, Page 4

NEW ZEALAND FARMERS' COOPERATIVE ASSOCIATION OF CANTERBURY, LIMITED.

Thirty-seventh Annual Balance-sheet,

In "Truth's" last issue a report was given of the chairman's remarks when presenting the balance-sheet of ■ this company to the shareholders for the year ending July. It would be well for farmers and town-dwellers throughout the Dominion to carefully read that candid and educative, address, and to preserve it for numerous annotations made after further perusals. The most striking characteristic of Mr. Pannett's efforts, is -the familiar tone adopted by that, geneleman. He took gentle care to unfold every detail connected with the business of this huge company, and he brought the shareholders, as it were, right into the inner confidences of the board. This ia quite unusual, so far as the practice which obtains m company matters m this country is concerned, and it would be wise to ask oneself why such a remarkable departure should be taken from THE HARD BEATEN TRACK that commercial votaries have hammered upon the business and financial affairs running current m the Dominion. "Cambist" is glad he is able to advance a sound reason for the happy feature he has drawn attention to. The reason is that this company, although founded under the provisions of the Companies Act, has shaken itself from the narrow .confines which a literal following of these provisions would entail, and has adopted the sounder and better practice which cooperation has made peculiarly its own. When a co-operative business becomes the passion of its shareholders there is only one way m which it can satisfy the demands of its enlightened proprietory, and that is to give them the private and intimate view which is due only to a true lover. This course makes <lill imperfections or blemishes plain, and at the same time it reveals m a stronger light the beauties which raise co-operation high above the sordid considerations that disfigure pure commercialism. Mr. Pannett and his able chief of staff, Mr. E. W. Relph, are typical co-operators, and carry the enthusiasm of their personalities into every branch of the business they stand for. They have done much to a, STIMULATE THE SPmiT OF COOPERATION throughout New Zealand, and their influence has been of national importance to the Dominion. In the near future this will be a co-operative country, and a happier country for that fact. The great co-operative concern which heads this article has done more m the direction of real social progress than all the politicians we ever had. Of course, it has had, and has now, some politicians on its board, but these gentlemen are more than politicians purely — they are good sound colonials, so do not deserve to be considered m the sense of the general run. They are bright exceptions. It only remains to make a few brief comments upon the splendid balance sheet and the still more splendid profit and loss account of this company. The first thing to notice is the full statement of the capital account. From it the growth of subscribed and paidup capital is clearly ascertained. The subscribed capital has increased by £56,000 to £816,675, which leaves the paid-up capital higher at £536,910. The uncalled amount due m respect of the shares is, therefore, £279,765. tfHE NEXT ITEM is the large reserve fund of £152,187, which, with profits from this year's account, is still further added to, so that it will figure m the next balancesheet as £160,000. Deposits m groups of twelve months, and for two to five years, make a total of £459,959, or a sum within £20,000 of the uncalled capital and the reserve funds already referred to. This is a feature of great importance to the depositors, for it gives them every inducement to lodge their surplus funds m about as safe a^ place as can be found m the Dominion. No matter how one looks at the security side of the question, the fact remains that the depositors are m a very strong position as regards their safety. Here we get a lesson m cooperation. Here we cart discern a principle which underlines the whole fabric of this social system. It is this: The more co-operative and honest such associations are, the more will they attract capital. This concern is a standing proof of that fact. It can show A STEADY GROWTH OF CAPITA!. m the capital account, and It also shows a corresponding enlargement m its reserves, and the amount of money its members are glad to place m its safe keeping. The current accounts of the shareholders make a total of £383,---337, which points to the large business whichVpasses through the books of the company. Sundry creditors are £82,---255, which prove that the business purchases have been met practically at sight. This sum is only a trifle compared with the turnover of the whole business. Turning to the assets side of the balance-sheet, there is nothing set down that needs amplification from this writer, for the simple reason that matters are not lumped together. On the contrary, everything- is put m proper detail. The stock of . goods m stores is vouched for and the values are given at £409,363. The company is lucky at having such a supply on hand. Advances come to £669,847, a rather small amount for this business, but it goes to show 'how wealthy the farmers are becoming. The farmer is making money, instead of borrowing it. Presently he will " REQUIRE A LOT. OF CASH to exterid his output and meet the demands of a wider export market. Sundry debtors, general merchandise accounts £187,501, and auction and grain accounts £101,984, are within reasonable limits. War bonds, etc., figure at £14,390. Cash., m the bank and at call comes to £116,686. The latter item tells vs -that the -whole of the financial movements are m a liquid and satisfactory state. This tells why the concern can pay cash on demand for everything demanded. The profit and los 3 account is as clear as a well-polished window pane. One can see right through it, and therefore it doe's not require any dusting or washing by "Cambist." All items are detailed. Any person of moderate intelligence can understand them. ■ What more is needed? The dividend is Sy 2 per cent., or 1% per cent, more than m the previous year. The bonus is 1 per cent, higher at 4 per cent, on goods purchased. Rebates on commissions have, been boosted

by 5 per cent, to 25 per cent, and £12,880 is carried forward to the next year. The whole performance is splendid, and leaves a sense of comfort and confidence m the mind of every critic. It Would not be out of place if the shareholders became moderately boastful. They have some grounds for being so.