FARMERS’ CO-OP. SOCIETY.

Taranaki Daily News, 10 June 1921, Page 5

FARMERS’ CO-OP. SOCIETY.

ANNUAL REPORT. The seventh annual report of the Farmers’ Co-op. Organisation Society, to be submitted to shareholders at the annual meeting to bo held on Saturday, June 25. states that it is regretted result of the society’s operations for the past year does not’permit of a dividend being paid. After writing off bad debts and allowing rebates amounting to £5780 8s 4d on sales of stock and purchases of merchandise, the balance at credit of the profit and loss account La £313 Ils lOd. In accordance with the articles of the society the directors to retire are: Messrs. W. G. Belton, Robert Bremer, A. G. Larcom, T. W. Owen and Frederick Sarten, and they, with the exception of Mr. Robert Bremer, who does not seek re-election, are eligible for reelection without notice, and offer themselves accordingly. In accordance with the articles of the society, Messrs. Rowley and Gill retire, and again offer their services.

In a fuller statement the chairman of directors (Mr. Alex. Hunter) says: Yon will notice by the enclosed balance-sheet, the financial position of the society is very sound. Comparing the liabilities and asset<s now with the position five years ago (one year after the start of the society) we find:—Assets: 1916, .£80,505; 1921, €338,134. Liabilities: 1916, £68,890; 1921. £223,483. The percentage of liabilities to assets was 85.57 for 1916, and 66.09 for 1921. These figures show that the assets of the society are more than sufficient to pay all liabilities, including the capital paid up by the shareholders. In December last a pronounced trade depression took place, affecting all classes of business, particularly so those of stock and land agents, and the high rate of interest ruling curtailed all investments. The effects of this were a greatly, reduced volume of trade in all departments, and a serious fall in the prices of merchandise. At the same time the directors were unable to immediately curtail working overhead expenses. This condition of affairs received the earnest consideration of the board, who decided that the best interests of the soicety would be served by making provision for future losses, though the net result, as shown by the profit and loss account, has suffered in consequence. Just one instance of how the adverse conditions affected the profit is the fact that for the period from December 1 to March 31 our commissions earned were £8350 less than for the same period in the previous year.* Produce Department.—Owing to an enormous increase in the turnover of this department for the first six months of the year under review, and the uncertainty of obtaining supplies owing to the frequent interruptions of shipping, we were compelled to carry fairly heavy stocks. The depression caused a drop in prices of some of our commodities of from 10 per cent, to 50 per cent., and to quit stocks we had to immediately reduce our prices, with the result that this department has been unable to show a profit.

Stock Department.—This department suffered severely during the period from December to March, and in the early part of this year the stock business was practically at a standstill. Stock is now coming forward more freely, but commissions received on the low prices now ruling are barely sufficient to pay working expenses. Land Department.—Business in this department has for the past six months been practically at a standstill, and indications point to an equally slack time for the coming season. ■Wool, Skins and Hides. —These departments, owing to the heavy fall in prices, Suffered, if anything, more severely than any other department, and for the whole twelve months, although expenses were cut down to a minimum, we were unable to prevent a loss. Finance.—When we consider the adverse conditions faced during the last four months of our year, it is extremely gratifying to find by the balance-sheet that the finances of the society were never in a more sound condition. Our assets are all under present-day values, and oui liabilities are well spread. The stocks are clean and readily saleable. Your board feel that at the present the outlook is not encouraging, but with the now shortened staff and reduced expenditure, they are confident of weathering the storm. The main desire of the board is to keep the capital intact, and if the society comes through the difficult period with the financial position unshaken they feel the shareholders will have something to be thankful for. Some shareholders may be disappointed that no dividend is to be paid, but I feel that upon careful thought they will realise the board have done their very best in the interests of all.