CANTERBURY FARMERS’ CO-OP. ASSOCIATION

Timaru Herald, Volume CXXV, Issue 18382, 28 September 1929, Page 7

CANTERBURY FARMERS’ CO-OP. ASSOCIATION

ANNUAL MEETING OF SHAREHOLDERS

GOOD PROGRESS RECORDED. The thirty-sixth annual meeting; of shareholders of the Canterbury Farmers’ Co-operative Association was held in Wesley Hal! yesterday. Mr K. Mackenzie (chairman of directors) presided over an attendance of over 100 shareholders. Other directors present were:—Messrs A. Austin (deputy chairman), T. B. Garrick. M. Guild, A. S. Jones, J. H. Mitchell, N. M. Orbell and W. T. D. Reveli!

CHAIRMAN’S ADDRESS. In moving the adoption of the annual report, which recently appeared in the “Herald,” the chairman said that it gave him great pleasure to report that the Association had had a good year, and had made recovery from the position it was in this time I last year. On the whole, the year | had been a favourable one for farmers; i prices for produce were good, and al- ! though climatic conditions were far too moist, most of the lambs were fattened, butter and cheese went away in great quantities, and enough wheat was grown to provide quite a considerable carry-over. The Association, he was pleased to say, had shared in the generally improved conditions, and he thought he was safe in saying it had made a remarkable recovery from the disastrous results of the slump period. This result had been made possible only by the splendid loyalty of the shareholders, who put their business through the Association, believing it would be a calamity to South Canterbury if their own company could not prosper. To-day they were able to say that the Association had emerged from its troubles, and with a continuance of the care, attention and supervision given its affairs by the directors and management, together with the continued support of the shareholders, there was no reason why the Association should not be one of the most prosperous in New Zealand. Continuing, the chairman said that meetings had been held in November and December of the various classes of shareholders, and proposals were submitted for the writing down of capital by the sum of 25/- per share. All the proposals were carried, and an order of the Supreme Court was obtained in May, sanctioning a reduction of capital. Negotiations had been going on for some time for the sale of Talbot Chambers; as this building was not being used in trading, the directors thought that the money would be more economically used in a permanent reduction of the bank overdraft. If the sale went through, and they saw no reason why it should not, the transaction would be satisfactory to both buyer and seller. The Board of dir - ectors elected under the altered articles of association, had been functioning for the last live months, and had devoted a great deal of time and thought to getting a thorough knowledge of the various ramifications of the business. They , were no less enthusiastic than the old Board, in the desire to see the Association prosper, and were not sparing themselves as far as work was concerned.

OPERATIONS COMPARED. The chairman said that it would no doubt be of interest if he gave a few comparisons of this and last years’ operations. The capital account stood to-day at £253,879, being a reduction of £92,706. The amount of debenture stock £249,720, and at shareholders’ current accounts £30,906, a total of £280,626, was £12,151 higher than last year. All money was free in current accounts. Sundry creditors. being amounts owing by the Association, £18,319, was an increase of £3987. This was accounted for by the fact that £4318 accrued interest on debentures was taken into this account, while last year it was added to fixed deposits. Freehold properties, £152,610, was a reduction of £3623, the amount written off in depreciation this year. Furnff- .* ure, fittings, fixtures and plant, I £38,474, was a reduction of £925. Addii tions to plant, cars, lorries, sundry | scales, etc., amounted to £4,100, while l the sum of £5040 was provided out of ! this year’s profits in depreciation. ! Advances grain, wool, meat, £143,135, was less than last year by £12,342. Due on open accounts, and grain £83,831, also showed a decrease of £8941. Due on auction accounts, £115,008, was an increase of £15,279. New accounts were responsible for £13,374 of this amount. | Goods on hand, £165,983, showed a small increase of £2699. Stamps, tele-

grams and telephones, £2,695, was a decrease on last year of £5. Salaries and wages, £54,233, was an increase of £IOB7. Insurance premiums were lower by £304. Travelling expenses £3027 were higher by £313, and rates and taxes, £2538, were a reduction of £338. Directors’ fees, £BBI, were higher by £177. This increase was in accord with the resolution carried by shareholders’ meeting, when the articles of association were altered for election of shareholder and bondholder directors. Auditors’ and stocktakers’ fees, £473, was a reduction of £284. Miscellaneous charges, £4,689, was an increase for the year of £1,144. Legal expenses in connection .with writing down of capital were included in this amount. Motor delivery, £6131, showed a saving of £502. Stationery and printing, £2065, was an increase of £335. Capital reduction and issue of debentures accounted for this increase. Interest, exchange and rent showed a decrease of £4,021, mostly due to the reduction of bank overdraft.

The chairman here stated that he was pleased to say that the bank overdraft had been reduced by the substantial sum of £67,444, and was now £91,907. He also pointed out that, although the Association was reducing its responsibility to the bank and depositors by about half the amount it was four years ago, yet its volume of business was not suffering, but as shown by the following figures, was actually increasing. Gross profit on merchandise, £100,510, last year £90,538, was an improvement of £9,972. Storage charges £3842, last year £3,103, £739 better, while auction commissions £16,990, were higher by £934. These figures went to show that the whole conduct of the business had been thoroughly overhauled and improved. Economies and adjustments had been made, which enabled the Association to give better and more efficient service to its customers, at the same time reducing its cash liabilities. Summary of sales and turnover: The following were the different turnovers in the business this year: Merchandise, £557,535, grain £121,135, stock and auction £672,095, the total turnover being £1,350,765. Last year’s turnover was £1,243,985, showing an increase for this year of £106,780. MARKETS REVIEWED. The chairman then went on to review the markets, stating that the lambing last year must have been a record one. The price per pound opened high, but as the season advanced it gradually fell, in sympathy with prices in London. Unfortunately, the continued v/et weather prevented the lambs having the weight and bloom on them they would have liked, particularly towards the end of the killing season. Ewes and wethers were killed in fair numbers, enabling farmers to make room for a carry-over of hoggets, particularly ewe hoggets. The dairy farmer had had a good season, plentiful rainfall and rank growth of grass resulting in the milking season being a more regular and longer one than usual. Prices were good, and the returns generally should have been above the average of late years.

Mr Mackenzie said that he had referred earlier in his remarks to the splendid support the Association had received from shareholders during the year, and he desired specially to emphasise the excellent support given last wool season, when their offerings of wool increased by seme 1100 bales. Looking into the figures, he found that their service to farmers in reclassiiig was very largely availed of, in that, out of the 7040 bales offered, 3811 were reclassed. The wool season might oe considered to have been entirely successful, and the average price per bale realised, covering all classes of wool at the three sales, was £23/12/Ili, £27/4/3 and £23/5/4, equalling 16.18 d, 18.03 d and 15.79 d per pound respectively. The indications pointed to lower prices during the coming season, in that the factories at Home were finding the competition of synthetic wool and artificial silk somewhat harassing, but he thought this applied chiefly to the finer sorts, and he was hopeful that with the wool they controlled, especially in reference to crossbreds and three-quarterbreds, there would be no material drop in price. However, he would say that they must anticipate lower prices ruling generally. They were indebted to Mr T. R. Mackay for his very careful handling of the wool business last year, and confidently solicited the same fine support from farmers in the coming season. Wheat Pool. Dealing with grain, the chairman said that there was again a good yield of wheat in the district, with a Dominion total of some 34 bushels per acre. The market opened at 5/8 on trucks for Tuscan, with correspondingly higher prices for Hunters and Velvet, and prices gradually rose to 6/- for Tuscan, 6/6 for Hunters and 6/9 for Velvet. The market had been considerably assisted by the activities of the Wheat Pool, and with the generous quantity of wheat available, protection from the Pool had assured a stable market price to growers. He felt certain that had it not been for the Pool, prices would have shown considerably less return to farmers. The Pool deserved all the support it could get from growers, for in the matter of stabilisation of prices it performed valuable service, especially in support to those farmers who were under financial obligations, in that they were not forced to soil in tne flood of offerings at low prices. Adverse weather conditions ruled considerably at sowing time this year, and he thought the acreage in the coming year would be found somewhat reduced., and. with the world’s supplies in a strong; position from the seller’s peine, of view, quite as satisfactory prices might be realised for usxt year's crop. Tha chairman wen* on to say that oats wura less: and loss a factor in the market each year, farmer? mostly growing only lEjfficisnt for their own requirement!. Prices, had been steady during the year at t:em 2/9 to 3/3 on tmflfcr.. The potato crop was quite a good one, and the trend of the market had been fairly satisfactory all the season.. It was regrettable, however, that with the great shortage in Australia, exportation was not available owing to Australia’s embargo on New Zealand potatoes. The market closed at about £7 on trucks, which covered a gradual increase in price from the beginning of the season of some £3 a ton, sufficient to cover costs of holding on the

part of the grower. So far as linseed was concerned, a fair quantity had been grown, the bulk of the crop being under growing contracts. This seemed to be a useful stand-by crop, with a certain outlet under guarantee of price, which he understood next year would be £ls on trucks at least. With a suitable yield, this should make a good return to farmers, and as the crop might be sown late, lands that were missed sowing through adverse weather conditions, could be utilised for linseed for October sowing. The outlook for the current year in the wool and meat section did not look quite so bright as Tast year. Further, the heavy mortality amongst hoggets, and the heavy snows on the higher country, were bound to adversely affect the returns from these sources. Economists and leaders in finance and trade had pointed out that there were indications for a movement for gradually reduced prices for the primary products. If this eventuated, it would be a serious matter for many farmers, unless a corresponding reduction would be made in the cost of production. He pointed out, however, that the source of most of their wealth was the land, and increased costs could not be continually passed on to the man on the land, in the face of reduced returns, without dire results to himself, his district and the Dominion generally. In conclusion, the chairman conveyed to the general manager, branch managers, heads of departments, and all members of the staff, the best thanks of the directors for the good work done, which had resulted so satisfactorily to the Association. As the meeting was the first annual meeting the new Board had attended, he publicly thanked him for electing him chairman, and for the fair and thorough manner in which all the deliberations of the Board had been carried out. (Applause). Calls in Arrear. Mr Malcolm Campbell seconded the adoption of the report, and in doing so said that he noticed that a number of calls were in arrears. He asked what the directors proposed doing in the matter. The chairman said that there were some calls in arrears, but they were gradually being paid up as people could afford it, or as opportunity arose. It was hoped, eventually, to get all the call money. The directors had not yet dealt with the unpaid calls, but they would be dealt with. The directors would try to recover the money, but if they could not get it, then the shares would probably be forfeited.

Mr R. H. Hurst said that he was a little disappointed in the chairman’s report, in that he had omitted to make mention of Mr J. Anstey. He (the speaker) had been on the directorate with Mr Anstey, and no-one had worked harder than he had done. Mr Anstey had been chairman of the Overhead Charges Committee, and thu work he had done, and the time he had put in to find out the weaknesses, and where improvements could we effected, very few knew of. The speaker also thought that the chairman had made inadequate reference to the Gen-eral-Manager. During the troublous times the Association had had to pass through, the General-Manager had probably spent many sleepless nights, and he v. r as the man who had brought the Association to the position it was now in. When Mr Shirtcliff was appointed General-Manager the Association owed the Bank and depositors £BOO,OOO. If he had insisted on showing the loss in land at the time, anc! had placed the facts before shareholders, the probability was that the Association would not be in existence to-day. There had been a lot of cri ticism in the past as to why the debt had not been shown, but there had been a reason for that. Mr Shirtcliff certainly knew what was best in the interests of the Association. Superannuation Fund. Mr G. L. Twentyman, congratulated the Board of Directors on the balance sheet which had been presented, stating that it was a very satisfactory one. He also endorsed the previous speaker’s remarks in regard to Mr Anstey and the General-Manager. Continuing, he said that he noticed in the balance sheet that £l2O had been paid to the Superannuation Fund, which was £92 less than last 5* ear. He asked if the Board had in mind inaugurating a satisfactory fund. All big companies to-day, he said, had big funds, and they were able to do things for retiring members of their staffs. He knew that the matter had been before the Board previously, but had been turned down on account of bad times. The chairman said thgt the Board did appreciate what Mr Anstey had done, and also what the General-Man-ager had done. Those who had had to work with them knew what they had had to put up with. He had spoken on the matter at a meeting of directors, and he had not thought it necessary to make mention of it in the report. It was only as a result of hard work that the Association had got back to where it was to-day. The question of superannuation had been gone into by the Board, but to be u success the scheme would need to be a contributory one on the part of the staff, ana by every member of the staff. It would not do to have some members in the scheme, and some out of it. The matter had been gone into years ago, and it had been found that many members of the staff were making provision themselves for any eventuality. They considered that if they had to come into such a scheme, it would mean an additional contribution, and they could not afford it, so the proposal went no further. Superannuation was a good thing but it would have to be contributed to by the staff and by the Association. The new Board might take the question up again, and see what could be done.

Mr J. Anstey thanked Mr Hurst and Mr Twentyman for their kindly remarks. It was true that he had done a lot of work, but one could do little unless he had good mates on the Overhead Charges Committee, and also on the Directorate, and he wished to endorse the remarks which had been made in regard to the General-Man-ager. During the troublous times he must, as Mr Hurst had said, had many sleepless nights, and he (the speaker) hoped that Mr Shirtcliff’s services would be recognised. Speaking in reference to superannuation, Mr Anstey said that if they were going to have a large and complete scheme, it was going to cost them a lot of money. If they had a contributing scheme, the members of the staff would have to pass a doctor’s examination, and it was quito possible that the very ones they wished to help would be excluded. They had in existence a small scheme by which an employee, provided he had been with the Association for 15 years, could, w'hen he reached the age of 65, retire on a pension of £1 per week foi life. He hoped that the present scheme would be extended, if it w r as within their means to do so. The report and balance sheet were then adopted. Valuer’s Report. The valuer (Mr D. G. Ogilvie), reported as follows: —“This is to certify that the stocks held by the Canterbury Farmers’ Co-operative Association Tiinaru, and its branches, at July 31. 1929, were to the value of £165,667 16s. All show selling stocks were well written dow r n, and the total valuations were well on the conservative side. The stocks of general merchandise in every department at Head Office and branches were in excellent condition, being clean, well arranged well sorted and well kept.” The report w f as adopted. Appointment of Auditors. The next business taken was the election of auditors. Mr A. Nicol moved and Mr M. Campbell seconded that Messrs A. C. Martin and J. Leggott be appointed. The mot ion was carried unanimously. Referring to the auditors’ remuner-

ation, the chairman said that the directors had considered the matter, and recommended that their fees be increased to £250 per annum. Mr M. Campbell moved and Mr W. Geddes seconded that the remuneration be £2OO. Mr J. Waddell moved as an amendment that the remuneration be £250. He said that he was satisfied that the directors had given their best attention to the matter, and he was confident that they would not have recommended £250, if they did not feel that the work warranted it. The amendment was seconded ov Mr F. B. Foote, who said that few people knew' what a complete audit entailed. At the remuneration suggested, they could ask the auditors for a full and complete job, and if they did not get it, they knew what to do. On a vote being taken, the amendment was carried. Election of Directors. The chairman then announced the result of the election of shareholdersdirectors, which was as follows: A. Austin 1548 T. B. Garrick 1537 Mr J. Bitchener. M.P., w r as the unsuccessful nominee. The election of Stockholders’ Directors resulted in Messrs W. T. D. Revcll and F. R. Flatman being elected. Tiie retiring directors, w r ho were eligible for re-election, were Messrs ,V. T. D. Re veil and J. H. Mitchell, the: additional nominations being Messrs F. R. Flatman and Thomas Scott. Mr Flatman returned thanks for his election. He said that he bad previously served four and a half years on the .directorate, and at that time conditions weie not of the rosiest. They had a splendid Association, and with prop*., management, proper directing and propei support, he saw no reason why the Association should not be the most successful of its kind in the Dominion. Mr Revell also returned thanks, expressing the hope that in the next two 3 ears he would bo able to do something to help the Association. He would do his best to see that the finances were stabilised. Votes of Thanks On the motion of Mr Anstey a hearty vote of thanks was passed to the staff, Mr Anstey stating that the business ability and loyalty of the heads of Departments was largelv responsible for the progress which had been made. Mr M. Campbell moved a hearty vote of thanks to the Directors, which was carried by acclamation.