THE FARMERS' CO-OPERATIVE MOVEMENT.

Otago Witness, Issue 1952, 23 July 1891, Page 7

THE FARMERS' CO-OPERATIVE MOVEMENT.

Between 30 and 40 settlers were in attendance on Saturday evening, the 11th, at the Good Templars' Hall, Havelock, to bear Mr William Ohristie'B address on " Co-operation," whioh was delivered under the auspices of the looal farmers' club. Mr R. M'Ara (president of the olub) presided. The address is published in full by the Tuapeka Times, and we take from our contentporary the concluding portion and the diecussion whioh followed. Having quoted from an eminent English authority to show the leakage between the pro* ducer and the consumer, and shown by reference to the Canterbury co-operative associations how this leakage may be effeotually stopped, Mr Christie dwelt at length on the many advantages of co-operation, They were well aware that the manufacturers seldom retail their goods, but put them into the hands of the agents. Take, for instance, binder twine, which mußt be bought from the middlemen at a large advance on the maker'B price. Whereas by co-operation it could be bought direot trom the manufacturer and tbe agent's profit saved. Another important item in the business of tbe farmer was artificial manures. Farmers at present are at tha mercy of everyone trading in the article. Few men can tell the quality of the manure except by result, and then it is too late. By co-operation farmers could purchase it by the cargo, and have it analysed at a small coat. The same remarks apply to tbe purchase of corns aoks, woolpacks, fencing wire, and in fact every requisite of the farm. And the same may also be said of tbe gelling of atook and produco, and in numerous other ways whioh can only be known and appreciated by aotual experience. The system of co-opera-tion he advocated was to put a fixed value on oapital, and let the balance .of profit b8 divided in proportion to tb.9 business that each shareholder doas, and not according to the amount of capital inve ted. For example, one may bi»ve only £5 invested in the concern, and may do more buaintaa than another who has £500 invested. It is therefore under such circumstances manifestly unfair (he-fc capital should get; a monoply if the profit. Tha directors should ail be praotical farmers, ant} the manager a man of thorough training in mercantile affairs In conclusion, Mr Christie failed on all present to give tha subject their serious consideration ; and if it met with tbsir approval, as he had no doubt whatever it would, ho hoped they would put their Bboulders to the whejl and make an effort to provide themselves * with a co-operative association. They must in ihe future look to the markets of the world for the disposal^ of their produce, and with the fi3rc3 competition so rapidly coming into p!^v, the prica of production must be kept down to the loweßt possible point, otherwise they were bound to lose ground and fail back iv ihe hard 3truggle for existence that is going on throughout the world.

The Chairman said he was confident all present bad listened with feelings of the deepest

pleasure to tbe very able addreßß which M* Christie had just delivered to them. He had shown with great force and dlearneair fne benefits which the farmers would derive frool the establishment of a rightly-conducted COonsiative society. He did not think there could be any grounds for cavilling at the solidity of bis arguments or the soundness of his deductions. That the farmers of Otago by banding fcogafcher and starting a co-operative society oa the linoa of the Canterbury associations, referred to by Mr Christie, would reap very decided advantages, there was no denying. Ho believed if the matter was taken up heartily and canvassed properly there would be very lifctla difficulty in raising the necessary capital to atart p? farmers' 00-operative society in Ofcago. Q . , Mr Christie remarked that one very deoided advantage to farmers who were shareholders in tha Canterbury Farmers' Co-operative Association was that they got their Btook and produce sold at 1 per cent, commission. Sidoe its formation the association in qpiestion has distributed in dividends and bonuses no less a aumsfchan £16,222. All that money had been circulated in South Oanterbmy, and .the advaatpgß3 according to the population was manifest. The last bonus declared was 7J pet cent,, which was in itself a very considerable reduction on the prime cost of goods, it meant 6d a dozen on cornsacks, 2d eaoh on woolnacks, £1 Is 91 a ton on wire, 16a bd a ton on standards, and so on. These were facts that could be gleaned from the association s last annual report. _, Mr Cowan thought the day was not far ott when co-operation would be the ruling power of the universe. A farmers' co-operative society in Otago, on the i lineß ° f ,J hoß ° £ Canterbury, would be established in the coflrite of time. Ho doubted whether it was wise to take action just now. Competition wa£ ver^ keen in Dunedin at present, and if a termers co-operative society was to be started there it would Boon be crushed out of existence. Inere was too much cutthroat competition : 1 * evil of it was that the farmers suffered, Wbat security had many of the farmers when they cent their produce to Dunedin that they would fcvar 838 a penny in retnrn ? Many m the men with whom the farmers did business were not worth the bat they wore on their heads. Mr said the last Bpeaker had tarnished some very telling arguments in favour oi\he farmers of Otago subscribing tbe necessary capital to form a^ co-operative msoumioii through which they could transact all their business. Such an association, with the requisite capital, and conducted on a proper basis, would be an insurance against loss ; it would give a guarantee and create a feeling of Beounty that would never be questioned. Mr Cowan was afraid the farmers were neither sufficiently educated nor independent enough to gojieartily into the matter of forming aco operative society. Many of them were in the crutches of moneyed men or moneyed institutions that did not look with much favour upop~co-o& oration. How could these men be helped out of their difficulties? Mr Christie remarked that a co-operative association was just as ready to advance money on a Crown grant as either a private Individual or a moneyed institution. It would be ready and willing to help those who were really anxions to help themselves. In the matter of competition, tha two Canterbury cooperative institutions had to fight their way against competition just every bit as keen as that which would be offered to the proposed society in the event of its being started in Dunedin. Of course everything depended upon the farmers— the shareholders —themselves. By uniting and transacting all their business through their own institution, how could it be othermise than a success, from its very inception 1 Mr R. Craig said Mr Christie's able paper had supplied them with a lot of food for thought. There was no doubt whatever that a well equipped co-operative society, rightly supported, would be of immense advantage to the farmers of the Otago provincial district. He would like to know from Mr Christie if he was in favour of Bteps being taaen to form an alliance with the Mutual Agency Co., which had its headquarters at Dunedin, or of starting a co operative association on an independent basis Mr Christie replied that the Co-operation Committee appointed by tbe New Zealand Farmers' Union passed a resolution in favour of overtures being made to the Mutual Agenoy Company wilh a view to amalgamation. The Agency Company was approached, but they could not entertain any proposals until thoße making the overtures were in a position to submifc something definite. For instance, some time ago he issued a circular to all the farmers' clubs and kindred societies in Ofcago with the object of finding out what support the members were prepared to give to an association to be called the Otago and Southland Farmers' Co- operative Association (Limited), with a capital of £25,000 in 5000 (shares o? . £5 each. Were such an association formed, with, say, about £1 10s per "hare called up, they would then be m £■_, <<ition to approach the MutualKAgency rw™ >v « ThQ y woul d be in a position to rfftri an Stained business" and were now makiS S£fa**»y headway, it was not to STSwoted Si the Agency Company would rush Stt open'Wm* to receive « . assocurfion that wm nwwelv ta&ec! about— that in reaucy sidered after amalgamation had been amngea.. He should like to see all the * h »™ exf^mors' co"ODerativß association held ex proposal to establish a farmers vo ■ * society. He, advanced a number %™H arguments in favour of the proposal, *>*<.*"* those up with a strong array of facto. Mr Christie warmly thanked Mr , M^ b /£ his addrco-, adding that bis knowledge* the , (subject, aided by his eloquence, was; certain i to carry conviction where any^ doubts on the desicafcilily acd practicability of a .facers co-op-native society had previously eSwted. 9 Tte Chairman ssid he did not think many of tha farmers doubted the wisdom of Btarfang « questioned the advantages to> derived from a sfcrose fatmera' co-operative association. J.ne frSSSfwM to get the prelimmari* .properly 3£ted. He believed that if a capable mana practical farmer-™ »BP«g2J wu? through the farming districts of Otago . tootur mg and c a nvaßßing, the proposed 00-operative erne cation would be an accomplished fact in P .• r r CL-r;sf ie remarked that the New Zoa!a/id i'ajmors' Union had no funds to meet tne exp:E.O3 of a lecturer and canvasser, He had wrifcboa oa two or three occasions to tne

m^ton on matters relating to the subjeot of OQ.O Deration, but had never been favoured witri x** ro Ply- He thought if a prospeotus of an Otago j^awnera' 00-operative Association were drawn ql ' an^ a * aw hundred copies circulated they wcralu' soon n<^ oat if 'he farmers would give the necO! ssayr y support to the undertaking. He was not iv 1 a position to meet the expense out of his own packet, but was sure the Warepa Farmers' Club would pay its Bhare. Perhaps the Waitahuna Farmers' Club and Tuapeka Farmers' Union would also contribute their quota towards the coat of printing and circulating copieß of the prospeotus. After Borne discussion, it was understood the Waitahuna Farmers' Club would bear ita proportion of the expense of getting theproßpeotua printed and circulated. Mr Christie undertook to draft a prc«pectua and forward it to the club for consideration at its next meeting. Mr Craig mpved: "That thia meeting accords a hearty rote of thanks to Mr Christie for the very excellent address on * Co-opera-tion' which he delivered that evening."— The motion, whioh was* carried by acolamation, was appropriately acknowledged by Mr Christie. , iL , . , The usual vote was phased to the chair and the meeting dispersed.