SOUND POSITION

Southland Times, Issue 22993, 12 September 1936, Page 12

SOUND POSITION

Farmers’ Co-operative Association ■ < ? ANNUAL MEETING OF SHAREHOLDERS The effect recent legislation has had on the farmer and the farmer’s reaction to the slump was discussed by Mr Hugh Smith, the chairman, at the annual meeting of the Southland Farmers’ Co-operative Association yesterday. Mr Smith presided over a big attendance of shareholders. The Hon. Adam Hamilton was among the directors present. Mr Smith’s address, which was in the form of an annual report, stated: — “The depression of the last few years, which was of a world-wide nature and which hit New Zealand so severely, has now fully disappeared. It is to be hoped that the severity of the experiences through which the farmers passed during the depression, will teach young as well as old farmers the necessity for keeping their liabilities well in hand and for not enlarging their holdings beyond their financial capacity. “The mortgage legislation of the last few years, together with similar legislation now being passed, though undesirable in normal times, has no doubt brought about orderly debt adjustment in preference to the old method of bankruptcy. It is to be hoped that the necessity for this undesirable interference will soon disappear. In Southland, however, the position in respect to land mortgages is such that any adjustments are of a very minor nature compared with the rest of New Zealand. Until these adjustments are completed it is essential for companies such as ours to make full reservations for any possible writing off. This has been done and full reserves are held for this purpose. Guaranteed Prices. “The doubtful experiment of ‘guaranteed prices’ for farm produce is now being tested on dairy produce. I feel sure that shareholders and clients of this association will agree with me when I express the hope that the marketing of meat will not be interfered with in this way, but that the farmers will be left to dispose of their products in the ordinary way as they think best. The bulk of New Zealand wool is sold at auction in our local markets under world-wide competition and afterwards shipped to all parts of the world. It is difficult, therefore, to see how this system could be improved. Although there may be some who are critical about the marketing of frozen meat, this should’not be made an excuse for revolutionary changes, but rather an occasion for the trade itself to deal with them with a view to adjustment. “The season just closed has been a fairly satisfactory one for the sheep farmer; although the price of wool was below the average price for the last eight or ten years the price has been much better than in the slump years, while the price of frozen meat, especially lamb, has been very satisfactory. Present indications are that wool will be better this coming year than last year, while lamb is also selling at very satisfactory prices on the London market. Added to this benefit is the fact that the flocks of sheep in the Dominion have increased during the year by nearly 960,000, while the number of breeding ewes has increased by over 840,000. To enable the association to handle clients’ wool to the best advantage, additions and alterations have been made to our already commodious wool stores. Rising Costs. “The most disturbing features of present day affairs in relation to farmers is the rising tendency of farming costs. Rising costs in New Zealand almost invariably react against the farmer. When farming costs are increased it is seldom that the farmers are adequately compensated by an increase in the price of farm produce. The recent rise in overseas freights of 2| per cent, will take a big toll from the dairy farmer’s and sheep farmer’s returns. The serious effect of the increased cost of farmers’ requirements is the curtailment of much farm improvement work. Another serious matter to-day is the lack -of suitable farm labour, especially casual labour. This, coupled with the fact that large numbers of able-bodied men are on sustenance in town, is very disturbing. Much farm work that would be carried out if suitable labour were available is at present being left undone. “I think that in the general economy of New Zealand it is safe to say that the farmers have pulled their full weight. There has never been any slacking, even during the most difficult years. Production has been increased enormously, until to-day the problem is not one of producing the necessary foodstuffs to supply the needs of mankind, but rather one of the cost of getting these products to the peoples of the world.” The Balance-sheet Discussing the balance-sheet, Mr Smith said that on the assets side property remained practically the same, while stock was reduced by £3468. Book debts had increased by £2752. Deposits remained the same; customers’ credit balances had increased by £14,406; and the bank overdraft was £14,014 less. All these items were considered satisfactory. In tire profit and loss account commissions had increased by £4891; and general expenses by £3926. The net profit was greater by £946. In the appropriation account it would be noticed that income tax had risen by over £6OO. In formally moving the adoption of the annual report and balance-sheet, Mr Smith said that the Southland Farmers’ Co-operative Association was one of the soundest business concerns in New Zealand. While it was regret-, ted that as there was an amount still owing on the pre-preference shares, no provision could this year be made for the ordinary shareholder, an earnest endeavour would be made, to recompense everyone who had invested in the company. The report and balance-sheet were adopted. As there were no further nominations, the retiring directors, Messrs Hugh Smith, J. McNeill, Henry Smith and G. Meek, were all re-elected. Messrs Reid and Jones were reelected auditors. Mr A. L. Adamson said that as a shareholder he wished to compliment the management of the company on its team-work and efficiency. Mr Hamilton said that the balancesheet showed the company to be in a good position. This was in marked contrast to a few years ago. To-day, if the company were wound up, every shareholder would get 20/- in the £. Mr Hamilton also gave an interesting address on the work of farmers’ cooperative companies. At a meeting of directors held after the annual meeting Mr Hamilton was appointed chairman of directors for the ensuing year.