CANTERBURY FARMERS' COOPERATIVE ASSOCIATION.

Timaru Herald, Volume XXXIX, Issue 2827, 15 October 1883, Page 3

CANTERBURY FARMERS' COOPERATIVE ASSOCIATION.

The third annual meeting of the Cmterbury Farmers' Co-operative Association wag held m the Association's warehouse, Gain's terrace, on Saturday morning. There was a good attendancp, and Mr J. Bradshaw, Chairman of Directors, presided. The meeting having been formally opened by the Manager (Mr Watkinf) reading the advertisement calling it, the minutes of the last meeting were read and confirmed. Mr Walking then read the following balancesheet : — BAIiJINCE.SHEET, 20th Saw., 1883. Dr, £ s. d. £ 3. d. To Capitol 2512 Shares of £5 each - -12,560 0 0 Less Capital Unpaid -1,821 16 3 7,738 3 9 To Advances received on Wool and Produce - 10,422 19 0 „ Bank Overdraft as per pass-boob 3,735 12 3 „ Cheques not presented for payment and interest till data - 825 12 10 4,561 5 1 „ Deposits by Shareholders ■ 1,139 2 5 „ Sundry Creditors 1,481 15 10 „ Bills payable against goods • 175 1G 3 „ Mortgag os on Freeholds with interest till date - - - 8,117 13 6 „ Reserve Fund • 914 14 10 „ Balance — Nett profit for year - 1,430 1 3 £35,981 11 11 Cr. X s. d. By Freehold Property - - 11,882 15 10 „ Office furniture — less 10 per cent depreciation - - 70 2 9 „ Goods on hand and afloattaken at nett coat - - 9,308 3 7 „ Heaton street Store, Rolling Stock 310 16 0 „ Advances made oa Wool and Produce 10,461 18 3 „ Amount due on open accounts 2,495 6 3 „ Commissions and Exchange earned but not yet charged to personal accounts- - • 167 19 2 „ Preliminary Expenßea,less two thirds written off - - - 122 12 2 „ Balance m hand of London Agent for Snrplnsses on Produce sold . - - . 650 18 1 „ Cash on hand - - . . 510 19 10 .£35,981 11 11 We have examined the Securities, comparod the above Balance-sheet with the books and vouchers of the Association, and have found the same correct. JAMES GRANGER 1 An j. f _ « W. DAVIDSON ( Andltors - PROFIT AND LOSS ACCOUNT. Dr. £ a . d. To Depreciation on Office Furniture .... 7 16 0 „ Ono-third Preliminary Expenses .... 122 12 0 „ Incidental Expenses, Charges, Stationery, Printing, and Advertising - 262 7 3 „ Kent and Taxes - • • 243 1 2 „ Stamps and Telegrams - 129 3 1 „ Salaries and Wages - . 1,034 13 4 „ Remuneration to Committee and London Agent's Commission .... 367 o 0 „ Interest - - - - 174 8 0 „ Balance, Profit for tho year 1,430 1 3 £3,771 2 1 CR. £ s. d. By Discount on Cash Payments and Insurance - • - 3tl 15 5 „ Commission ... 727 18 1 „ Storage and Shipping Charges on Wool and Produce 457 0 2 „ Cancelled Shares • • • 15 15 0 „ General Merchandise, Saoks, Wool-packa, Seeds and Coal 2,224 15 4 „ Balance last year's Profit and Loss Account - - 318 1 £3,771 2 1 By Balance .... £1,430 1 3 STATEMENT OF ASSETS AND LIABILITIES. Liabilities. £ s. d. National Bank of New Zealand 4,561 5 1 Bills payable - - - - 175 16 3 Deposits from Shareholders - 1,139 2 5 Sundry creditors - . • 1,48115 10 Advances received on Wool and Produce .... 10,422 19 0 Mortgages on Freeholds - - 8,117 13 6 25,898 12 1 Balanco 10,082 19 10 £35,981 11 11 Assets. Freehold Property - - - 11,892 15 10 Goods on hand and afloat - 9,308 3 7 Heaton street Store, Rolling Stock, and Office Furniture 380 18 i) Advanceß made on Wool and _ P F oda << c - --- 10,461 18 3 Due by Sharoholdor 3 on open accounts - . . . 2 ,495 6 3 Commissions and Exchange outstanding . . . 167 19 o Balance rrolimmsry Expanses 133 13 s Balance m hands of London r . Agent .... 650 18 1 Cash m hand .... 510 19 10 CAPITAL ACCOUNT 35 ' 08111 " By Balance Capital paid up 7,738 3 9 „ Reaervo Fnnd 914 14 10 „ Profit for the year - - 1,430 1 3 10,082 19 1( „ Capital unpaid as per Balance-sheet • - . 4,821 16 : Total - - - £14,904 16 : James Watxins, Manager. Timarn, 20th September, 1883. The Auditors' reported briefly that they hai found everything m order. Their recom mendat ion of last year that the office staff b jnoreased bsd been adopted, and consequent! they bad found the business of the year he been conducted on a good system, and oan fully carried out m every detail by competec employees under (he supervision of tb Manager. Tho Chairman then read the report of tl Directors as follows : — Third Annual Report of the Cantbi bury Farmers' Co-opebativb Absocij tion, Limited. Tho past twelve months have embrace

alternating periods of hope and depression. ] seemed at one time as if onr agriculturist wore about to secure satisfactory and lucrativ crops ; bnt a wet autumn supervened, whic not only fjreatly reduced tho quantity, bnt th quality of the grain actually threshed. Take as a whole, the yoar has been ono of considei able, agricultural and commercial depression It has been one which exorcised tho pationc not only of those onga(*ed m business, but ii agriculture. During thia trying period th Directors of tho Association have ondeavorei to support th» farming interests of Soutl Canterbury to tho beat of thoir ability, and t< a3 great an extent as the resources at thei command would admit. It appears from the books that thogros tnrnover for tho your has amounted t< L81.30G Is 9d, of which L 52.740 9s 5d ro presented transactions m wool and grain, anc L 28.625 12s 4d consisted m sales of gonera merchandise. An idea soems prevalont m somo quarter! that tho Diroctors lean too decidedly toward! n, retail business, to tho detriment of th( farming interest, but they have carefully gont into the question, and arrive at the following rcsnlts :— Thsy find that out of the abov< L28,62t5, only LIOBS, or less than 4 per cent ol tho transactions m general merchandise, car bo traced to persons unconnected with the farming interest. They also find that the Association haa either sold m tho colony oi shipped for salo m London, produco to the value of L 52.740, representing 38,42t! sacks of grain (of which 19,179 were sold locally, and 19,247 shipped), and 1022 bale 3of wool. It is, therefore, evident that ont of a gross turnover of L 81.366 but LIOBS, or loss than li percent, can bo credited to persons not engaged m pastoral or agricultural pursnits. Tho great advantages secured to those who have already joined tho Association will, no donbt, bo appreciated when it is m the power of the Director! to state that, m the case of wool, tho averago co.-<t of shipping Homo last season amounted to no moro than one penny per 1b on greasy, and a ponny farthing on scourod — tho calculation being based on tho net weight delivered m London, and including all charges from tho price f.0.b., but exclusive of exchange and insurance, which usually amount to a farthing per Ib. There are several matters of importanco besides tho adoption of this Report upon which the shareholders will be requested to decide. The first to bo brought under their consideration will bo a resolution empowering tho Association to declare, if thought advisable, a dividend of 8 per cent instead of tho present maximum of 7 per cent. Taking into consideration the value of money m tho open market, the Directors think that 7 per cent is hardly a fair equivalent for capital invested m the business, while they consider that 8 per cent would offer a good remnnevation to shareholders. They feol that it would be better to limit the maximum dividend to 8 per cent, rather than that a resolution should be passed empowering tho possibility of a still ligher rate. In an Association like our own, baaed upon co-operative principles, great caro must be taken lest the interests of tho capitalist become paramount to those of the farmer and producar. The next point to bo considered is a proposed alteration m Rule 39 of tho Articles of Association. It is thought by tho Directors that the quorum necessary to constitute a general meeting should be reduced from one-quarter to one-tenth of the total number of Bharoholders. It is self-evident that with 600 membora it might under certain circumstances (such as bad weather or private engagements) be impossible to collect so many as onequarter of the Association m general meeting. To postpono any general meeting would be to put the Association to great additional expenao and unnecessary inconvonionce. The meoting will next proceed to appoint two auditors for the coming year. In accordanco with tho rules it has been arranged that Mr Davidson should retiro, but Mr Granger may be re-elected. The shareholders -must also fix tho remuneration of tho auditors for the past year, a duty which, as pointed out at the last general meoting, seems rather incongruous, and tho Directors would suggest that a resolution be passed empowering tho Board to fix tho remuneration of tho auditors m the future. The next business will be to elect Directors m the placo of those who retire by annual rotation. An advertisement ha 3 been inserted m the daily papers, stating that any person other than a retiring Director who desires a seat at the Board, must give fourteen days' notice m writing to that effect. No snch notice having been received, it will be your duty to re-elect as many of tho retiring Directors as arc prepared to retain their seats. It will also be necessary to confirm such interim appointments aa have boon mado by the Board since tho last goneral meeting. And now turning your attention to tho tho balance-shoot, the Directors would make a few explanatory remarks. The accounts aa audited show tho Association to be m a sonnd and prosperous condition, although tho capital called up amounts to L 7738, the avorago working capital for the year haa been bnt L 54-17, on which a not profit has been earned of 2(i| per cent, a fact which, under the depression of last season, cannot bo considered other than favorable. During the period nnder roviow, tho mortgages on the freehold of tho Association have been reduced by LIOB7 8s 3d. Tho advances on produco at present stand at L 10,461 18s 3d, an amount which does not represent the total advanced during tho year, but is simply referable to tho advances now current. There exists a new featnre m theaccounts worthy of mention. A few months ago tho Directors decided npon roceiving money from shareholders on fixed deposit, and it is satisfactory to find that the sum of L 1139 akon at fixed periods varying from threo to twelvo months, stands at the credit of sundry depositors. It is an encouraging feature that some shareholders possess sufficient confidence m the Institution to entrust their money to its care, and that tho interest accruing on sums ro invested goes to the residents m tho district and not to tho foreign capitalist. Tho Directors have every expectation that during the coming year the deposit account will attain greater proportions. The amount duo to sundry creditors is Ll4Bl 15s lOd, representing the average purchases of goods for one month. It will bo noticed that bills payable Btand at tho small j figure of L 175 10s 3d, proving that the pnrcnases mado by tho Association are conducted on a cash system. In a few words, the total indebtedness of tho Society stands at L 25.901 2s Id. A reference to tbe statement of liabilities and assets will show that tho lattor exceed tho former by L 10.082 193 lOd, exclusive of the uncalled capital, which amounts to L-1821 16s 3d. Tho stook has been carefully taken and certified by Messrs R. Turnbull and D. Stuart, who wore appointed by the Directors for that purpose. The net profit with which wo havo to deal stands at Ll-130 Is 3d. Acting under the powers granted to them by tho Articles of i Association, tho Directors have decided to placo the whole of this amount to tho Reserve ' Fund, subject to a deduction of moneys sufficient to declare at this meeting a dividend of seven per cent on tho paid-up capital. The Reserve Fund will then stand at about L2OOO, a very substantial sum to have been accumulated mso short a time. They have been led to thia conrso by several important considerations. It is the dnty of tho Association to attain if possible a sound financial position m tho first few years of its oxistence. The possession of a largo reservo fund will add to tho market value of its shares, by giving greater security to the investor, and tend to promote a steady equilibrium of profit. When once the Reserve Fund has attained the proportions which the Directors for tho time being may consider sufficient to secure a necessary stability, those annual accumulations will cease, and the total profits of each yoar bo distributed as bonuses on purchases. The Directors feol that the sacrifice of a small, and to the bulk of our shareholders, an almost inappreciable bonus, will bo moro than compensated by tho additional security which must result from tho courso which they have adopted. They have already cause to bcliovo that the policy which they have initiated has met with tho approval of many thinking and influential men from amongst the general body of tho shareholders. The Chairman then made the following further statement: — Gsntlemoo, — It is now my duty to propoie the adoption of oui third annual report. But before putting the resolution to the meeting, I should like tc say a few words. These will not detain yoi long, and I have preferred to cammit tc paper even the few remarks whioh I am about to make, m order to prevent tbe possibility of any misconception m the future. In thi first place, I think, we must all feel satisfiec with the general results of our business foi the past year. If we have not secured si large a profit as might have been expectei under more favorable circumstances, we have on the other hand, earned a very decent one m view of the continued dullnoss m trad' which has prevailed not only m Timaru bu m other places. The report whioh I hay just read enters very fully into the more im portant items of the account, and I will no< only allude to the £2495 6s 3d appearing o the credit side of the balance-sheet, and re presenting tho amount duo on open accounts that is, due to the Association from its share holders. When it is understood that on sales for the three weeks previous to th day on which the acoounts were olosec

— namely, from the Ist to the 20.1 i day of September — reached a total of £2395 3s Bd, I think you will i grerwith me that rot only it the business of ill* Amciation on a round footing, but that, the farming and pastoral intereft' round and abt ut Timiru must harp an inhrrait flivngth with which they are rarely credited. You will have noticed that on this occasion for the firit time a "statement of assets and liabilities" haa been published. Such a statement ia nothing more than any person could have deduced from this or ono of our previous balance-sheets. But it has been thought that to publish a simple table of the assets and liabilities of the Association would not bo detrimental to its interests; and might help thoße who wish to do so, to comprehend its truly sound financial condition. You must all feel tha', for its own security, a newly registered company should pare its way slowly and surely. There must be many things which it would like to undertake hut which it ferls it ought not to enter upon. In our own caie, we can only hope that each yoar will witness a gradual eztension of our usefulness. During the past twelve months we have enlarged the offices m Gain's Terrace, taken over the warehouse which had previously been leased by us to another company, and have fitted up m Heaton street a wnterengine, which amongst its other duties drivr s an iron standard punching machine. During the l»st few days a letter has been addressed by the management to each of the Directors requesting bis advice about the establishment of a separate depaitment for the sale of dairy and farm produce. The provision stire, which the proposed scheme will necessitate, should be fi'ted up m a thoroughly satisfactory manner, and all produce ought to bo sold on its individual merits. (Applause.) And now, gentlemen, I would only refer to the last paragraph of the report, which relates to the division of profits for the past year. Tho decision arrived at by your Directors was far from being unanimous ; — not, I venture to think, because it was not sufficiently evident that the resolution as adopted was that best calculated to promote the stability of the Association, but because an influential section of the Bosri (cot unmindful of the interests of those shareholders who might possibly have reckoned on a bonus) hesitated before they could conscientiously agree to the resolution. Individually I cannot but think that men who hare dared t> much m the past would prefer to remit tbeir momentary interests to the general good. I cannot but think that they would prefer to see the Association strong and unassailable ; to recognise m it the harbinger of their children's future welfare ; and that suoh men would prefer to promote it* true prosperity, standing as it does the undoubted pioneer and most prosperous example of farmers' co-operation m New Zealand. (Applause.) In conclusion I would observe that if co-operation bae achieved the success which it has undoubtedly done m Timaru under many discouragements and supported m not a few instances but by the half-hearted assistance of its shareholders, what, I may well ask, could the principle attain if each and every shareholder thoroughly grasped its power, put their shoulders to the wheel and worked with single aim together ? (Applause.) Gentlemen, I beg to move the adoption of the report and balance-sheet. This was seconded by Mr R. A. Barker and carried unanimouriy. The following resolutions, prepared beforeland, were successively put and carried : — Proposed by Mr 0. W. Eichbaum and seconded by Mr R. Stansell— "That the follow, ing Directors be re-etected, viz , Messrs J. Rutherford, W. Wright, J, Page, and J. Campbell." Proposed by Mr A. Pigeon and seconded by Mr W. J. Gladstone—" That the election by the Directors during the year of Mr J. T. M. Hayhurst (m the room of Mr J. Hayhurst, his father) and Mr A. Oleland (m the room of Mr J. K. Goodwin) be confirmed." Proposed by Mr T. Roberts and seconded by Mr A. Wilson — "That Mr Janes Granger be re-elected auditor for the coming year." Proposed by Mr T. Mitchell and seconded by Mr J. Smith, jun. — " That Mr Ziesler be elrcted auditor." Proposed by Mr W. Postlethwaite, jeconded by Mr B. P. 8e»ly— " That the remunera'ion of the auditors be fixed at £50, say £25 each, and that the same sum be fixed as the remuneration for auditors for next year." Mr Postlethwaite pointed out that the books had been audited twice during the year. The turn over was larger than the year before, and the auditors' work was increasing. Mr B. A. Barker remarked that tbe amount seemed large, to which the Chairman replied that the previous year the auditors received the »ma amount, and then they showed that they only gat about two guinea* per day of eight hours for the time devoted to the work. This year they had kept no account of the time, but stated generally that the work was increasing. Tbe motion was then put and carried. Proposed by Mr A. O. Pringle, seconded by Mr J. Jefconte — "That the word 'eight' be substituted for ' seven ' m Articles 92 and 97 of the Articles of the Association." The effect of this resolution is to authorise the payment of dividends of eight instead of seven per cent m future, as mentioned m tho ' Directors' Report. Proposod by Mr R. A. Barker, seconded by W. J. Gladstone — " That the word ' onetflnth ' be substituted for ' one-fourlb,' m the 39th Article of Association." This resolutnn reduces the proportion of the number of members required to form a quorum at general meetings from one-fourth to one-tenth of the whole number. Proposed by Mr B. Stansel), seconded by Mr 0. W. Eiehbium— " That the next annual meeting be fixed for tho second Saturday m October, 1884." The Chairman then thanked tbe members for their attendance, and announced that the business was finished, and the meeting terminated, Mr G. Stumbles moving a vote of thanks to the Chairman.