ANSWERS TO CORRESPONDENTS.

NZ Truth, Issue 946, 12 January 1924, Page 13

ANSWERS TO CORRESPONDENTS.

"Te Kara" (the Farmers' Union Trading Co., Auckland, Ltd.) — Am postIng 1 to you the papers conneclod with the proposals made by the above company, n« you should Sign some of the documents and return them to the concern In question. The whole matter wub very fully *one Into m "Tnith'«" la»ue of January D and, conaequently, there In not much more left for "Cambist" to add. To m«»ot your questions "Cftmbiflt" unsworn that It would bo the height of folly for any *hftreholder* or creditor to oppose the company* proposal*. ht overy direction thene propomtlx HAfeteuurd all intercut* — the Intureiftrt of the company, the int«ir«Mti« of the »hareholdom, and. bp»*t uf ail, the intervata of depoftltorA and bondholders. Su«h beltis ihe fact*. lUU \vrl««r expfciH ihut therw wIH be

a majority m faror of the propositions and that the whole BCheme of re-adjustment will be carried through by reason of their intrinsic merits. You mention that you may be inconvenienced by the delay caused by the time being extended tor repayment of the deposits and bonds, but this is a matter merely of regret There are many more persons m the Dominion who are suffering m a like manner, and this has proved to be an urge to such parties to find out plans to neutralise the effects of deferred obligations. You must put on your considering cap and do likewise. The bonds and deposits after the proposals become a fresh legal obligation; by and to the company, resolve themselves into money securities, based upon . PROPERLY PLEDGED 'ASSETS. In such circumstances all of the creditors affected by the proposals are immediately given a preferential right, instead of being left naked, and' unsecured as is the cose with ordinary creditors m any line of business. It is not possible for shareholders to put this concern into liquidation for it is well able to meet all of its trading obligations on a cash basis and it is doing so at the present time. So please brush aside Buch foolish thoughts. As regards the rumors as "to the company being In a bad way," "Cambist" is glad to be able to assure you to the contrary. Since the. company threw over the cash and credit form of business In September last it has done more trade on purely cash lines than it did on the mixed principle which has hampered it m the past. Co-operation is first and last a cash proposition altogether and "Cambist" never tires of ramming that tact into the heads of his readers. Comparing the business done on mixed terms for the months of September, Ootober and November m the year 1922. total £124,740, with the same months for 1923, the total Is for cash only £129,326. In this comparison the astounding gain amounts to £4586 for the latter system. The cash business is splendid. It is more profitable, for it cuts out bad debts and doubtful accounts, v it, as. it proceeds, enables the company to finance on a cash basis for all of : its requirements and this saves thousands of pounds m interest and discounts which were lost by it when trading oh the mixed»up principle of cosh and credit terms to customers. Believe not the coined lies of jealous competitors.' The fact is that the Farmers' Union Trading Company (Auckland), Ltd., never was m bet- ' ter shape than it is at present, nor better placed for the earning of sound business profit m the future since it turned over to cash trading. It is a great corporation with a paid-up capital of £Sll,o47rH>v*r the half- , million standard — which places it m the first flights of commercial and co-operative solvency. "Wait a little longer and see this gigantic ., distributor shake Itself f ree of the weeds which credit trading has stimulated. The golden crop that is now growing from cash trading will be enormous. The business is already on the up-grade. "Cambist" wishes it and all of its loyal supporters the best of good management; good luck and prosperity for the coming and future years.