CO-OPERATIVE ASSOCIATION.

Poverty Bay Herald, Volume XXXIV, Issue 11129, 31 July 1907, Page 4

CO-OPERATIVE ASSOCIATION.

The half-yearly meeting of the Poverty Bay Co-operative Supply Association was held in Townley's, Hall last night. There was a good attendance, the chairman of directors (Mr W. Sievwright) presiding. In proposing the adoption of the report and balance sheet the chairman briefly reviewed the circumstances of tho Association, and mentioned that many of the shareholders did not give the association -the support, they should. The report was as follows:— "aou committee submit a . statement' of accounts for the half-year, which, according to the audit sliows 4 balance to credit of profit and loss account f £130 12s lOd, that the book debts (credit given) amount to £334 5s 4d, and that. the assets are equal to the liabilities, although only the low value of £133 14s lOd is placed upon premises and goodwill, and the right of purchase of tlie freehold of the land is not reckoned on as value at all. It is apparent that this co-operative venture, wliich, carried on under proper cooperative methods and influences, ougttt to have been a marked success, has not turned out very satisfactorily as yet. But there have been causes for such a result which your committee think it due to themselves and you to point out, namely : (1) Insufficient money capital, especially if credit was to be given. (2) Inefficient, careless or indifferent paid officers in the past, who, without the consent or knowledge of your committee (a) involved the Association in debt by overstocking goods of several kinds, which could not be turned over quickly ; (b) gave credit to customers, and so tied up funds, disabling the Association from paying prompt cash and obtaining full trade discounts; (c) overvalued stock-in-trade in 1905-6 and so brought' out a favorable ! balance sheet, upon which the half-yearly meetings declared dividends and bonuses, which were not warranted by the 1 real profits of the business. 13) Failure on . the part of shareholders to t properly support the Association by giving it their custom. It. will be seen that the liabilities of the Association amounted at ■! June 30th to £726 4s 4d, but your committee are glad to be able to , say that thoy have since that date.been reduced further and now (July 30th) stand at about £669 13s 7d. How are these to beTnet in cash if the system of mbnthly credit is to be carried out? While the assets are in the judgment of your committee much' more than sufficient, if realised as a going concern, to meet all demands, including shareholders' contributions to capital, yet that does not enable any committee in the conduct of the business of the Association to pay their way in cash. The Association cannot bor. row or overdraw the bank account and therefore necessary funds can only be obtained by increase of share capital. Your committee desire to remark that, notwithstanding past difficolties from the causes specified, your Association has done a useful and educational work in tho community, particularly in the matter of regulating current prices, to a large extent, and further your committee believe that the shareholders will themselves regret very much if they cease to be their own storekeepers. You have to elect a vice-president in room of Mr W. S. Oxenham, and four committeemen in room of Messrs. Morrison! and Church, and of Messrs Ackroyd and Leslie (appointed to fill the vacanices caused by tn resignation of Messrs Sigley iind fieed during term)i, who. now retire, but are eligible for re-election,, and also an auditor. Your committee desire to call your special attention to notices of motions for altering the rules, in respect to giving credit to forfeiture of snares in arrear, and as to unclaimed dividends, all of which have been duly posted up in the store in accordance .'with rule 30." The statement of accounts showed that the stock on January Ist was £829, purchases £2304 9s Id, freight wharfage account £68 0s lid, sales £2921 15s -2d, stock on hand £854 10s, making a gross , profit of £574 15s 2d. In the profit and loss account the main item was £262 14s 4d for wages, bad debts representing £25, and the net profit being set down as £130 12s lOd. The discounts received amounted to £26 9s lid, and rents to £34 2s. The balance sheet showed the capital to be 920 shares (less unpaid £126 15s 6d), £793 4s 4d; sundry creditors £726 4s 4d; reserve and doubtful debts £20 15s 6'd'j' total liabilities £1540 4s 2d. The assets were: Leasehold premises and goodwill £132 14s 10d r . stock £854 10s, plant less depreciation j £60 16s, sundry debtors £334 5s 4d, cash, i £93 19s 7d, bank balance £63 18s sd;l total £1540 4s 2d. Accompanying thei

statement was a letter from the auditors (Messrs Redward and Piesse) expressing pleasure at tho way the books were kept. Mr Oxenham seconded the chairman's motion, which was carried unanimously. Considerable discussion ensued as to the way in which the business could be improved. Mr Oxenham was unanimously re-elected vice-president. The committe© were elected as follows : — Messrs Akroyd Leslie, Morrison (re-elected), and Lowndes. Mr Piesse was re-elected audi, tor. It was resolved to. leave to the committee the matter of "giving credit. On the motion of the chairman it was resolved that the committee be given power to erase the names of shareholders who had not paid up and also to place in reserve fund all bonuses and dividends not claimed within 12 months. A vote of thanks was accorded to the chairman.