A LIVELY MEETING.

Star (Christchurch), Issue 11806, 18 September 1916, Page 3

A LIVELY MEETING.

CANTERBURY CO OPERATIVE ASSOCIATION. rFtwu Ora Conr.Rsro.vnsvi ..j Tl'MAlir, September lf>. Tho- annua-! tacet'ns of shareholders in tho Canterbury Farmers' Co-opera-tive Association to rather stormy. Tlit* long Una of sueo: ,»sful _ years vat? broken this year, the association having to meet losses made in tho g:\~in department. Tho chairman, Air -JTalbot-, informed tho meeting thai tho directors proponed to meet the whole of tho less out of tho past year's operations, and hi do that it was -necessary to ask shareholders to forgo the customary bonuses and rebates on commissions in respect of their business and purchase.*, to ask employees to forgo tho customary bonus on their salaries, and to [i,n- I per cent leas than the usual' dividend on ordinary -shares. Mr Tuiuot devoted a considerable portion oi a lengthy speech to tho question of losses on grain, saying they were duo to causes quite apart from tho ordi--1 nary conditions of supply and demand, and were directly tho result of the Government's restrictions against export. He mentioned the efforts of millers and merchants to induce the Prime Minister to remove tho prohibition of tho export of wheat at a time when there was a large and remunerative outlet for it in Australia at prices ranging from t>.h S)d to 7s par bushel, f.0.b., JNew Zealand port-;. Unfortunately, he said, tiie i'air and reasonable proposals that wore made wore not entertained. The Government census returns made public shortly afterwards, in tho main confirmed tho threshing machine returns, and it being apparent that they had more wheal- navilablo than would he ■actually required, the market steadily declined, and holders were faced with the* unpleasant experience of seeing daily diminishing values and an entire absence of demand. This position was , ill tho more aggravating from the | fat?L- that they wore receiving cabled offers from Australian brokers of 6d yd f.0.b., Timaru, for large parcels. It was not until October 31 that the embargo on export was lifted, but it was then too late, as, owing to new Australia! wheat then being on the mari kct, buyers, there had entirely withj upawn and had imported largely mean- ! time from tho Argentine. Not only i were holders of wheat debarred from j exporting, but the Government remitj ted for the time being tho duty on im- | ported flour, with the result that large .shipments of Canadian flour were brought into the Dominion, adding to ; the congestion and further reducing the price. Mr Talbot went on to say that ; the (armor nowadays would not entrust his grain to a commission agent, but always wanted to sell to a straightout buyer. The association, therefore, had to buy its shareholders' grain and take contingent risks. "The current prices during the months March to June show," said Mr Talbot, " that wheat was then 7s to 7s 'id, and it was not until the month of September last that, owing to the revised statistics disclosing a surplus over consumptive requirements of 700,000 bushels, the prices appreciably fell. Under the contingent circumstances that I have already referred to it was inevitable that we, as well as all uther holders of wheat, would have to face a loss. It is probably just as well that I should here state that wo took advantage of favourable opportunities that presented themselves just on the eve of our balance to realise a considerable portion of our stock of milling wheat at the highest prices tnat have been recently ruling. We thus reduced our stock at balance time to 16,000 sacks, and wo took this in 'ifc a price that will almost certainly bring us out with a profit in this current year's operations."' Mr Corrigan opened the discussion 1 on the motion to adopt, the report and ' balance-sheet. Me declared that nobody had any sympathy with the " Coop." They sent away a. largo number of men to fight, and then formed a ring to starve those whom they should have benefited, which was, ho considered, most inconsistent. Their business methods wore not good. Mr Casey (Gcraldine) said in connection with tho dividend the action or the directors was hard on tho shareholders, who had paid the exorbitant, charges of tho association, and wore now to get no bonus. The staff deserved a bonus. Ho would reduce tho interest, on capital to 5 per cent. (Applause..) He did not believe iti the preferential shares, and ho thought tho association was over-capitalised. It was strange that in a year such as this was the directors should have been so lavish. What were the travelling espouses shown in the balancesheet? Were they for the directors? Thero y/as only one cure, and that vas to scatter the directors. Six were' supposed to retire annually, but they did net. do so. He thought that retiring directors should not be eligible for fa-elect Jon for twelve months, and if they did not .shut tne present directors the shareholders would get no further bonus. Mr Casey bc-catne rather personal, and was called to order, but the meeting noisily called out for him to go on, and the chairman, amidst some uproar, sat down Mr Corrigan said that they met only once a year, and tliev did not come to clap the chairman and directors on the back and call thera "jolly good fellows." which they were not. (Laughter.') Thj speaker had made" a proposition to the directors which had been turned down, and ho wished to know tho opinion of the meeting, lie had suggested that anyone receiving more titan £4OO per annum should have hi? !>alarv reduced t-o £4OO. I (Laughter.) 'What, asked the speaker, bi?il they done for their men at the front F Mr W. 13. Kinneruey and the chairman stated that the speaker was out ,of ova-" 1 !' and the former attempted to speak but his voice was lest in tho ! ensuing uproar, which lasted for some i time. i When Mr Ctmgan sat down Mr I Maslin sc-id he considered, thai misma oageineao had been displayed in running the aiia.rrs of the association, 'clear, hear.). Ho could not cornpii- ' mc-n the directors en their conduct j of the busies shice the war began- ! When it started they had counselled j • caution and had they acted upon their i own advice the present state of affairs ' wotdd noi/ nave come about and . the balance-sheet would hare shewn pro- ' fits exceeding any of tho previous , ■ <•:•••?. Tho stock or grain on hand | >i~t be very hrge. The 1910 baian-es-•fheet showed commissions earned ai f r*.H'f.'V •; to £14.000. Although j there wec. .good gross turnover goods' hacd shovel an increase of £93.000 v. hi eh r,u:.t, have rentes. ?ntcd whenf-. It -,, as nothing more or less than a n-"kl M --<: gamble by tbo directors to s. corner., and their methods had j brou.vit about i'i ;n present position. 1 ; !ji i'!!.') i-h»- scock ef was 3G0.0(:Q | sacks and the directors could not deny ; | it. Then there was a stagnation in ' the wheat market and the director? : thon-rht they v>ould bluff and sweeten everybody. They had actually allocated all the profits except a j paltry £IOO which they proposed to j | carry forward, the smallest amorunt i - ior very many years. The chairman : had stated chat the general depart- | unfits were prosperous, but with a rising market it could not be other- . wise, and yet tho balance-sheet dis- ' closed a drop of £IO.OOO. Who was to bear tho brunt? Tho little shareholder and the employee. (Hear, hear.) The speaker thought they should adjourn tho meeting and a v k rli'-- directors to reconsider" fcha

cations instead of paying 7 per cent on preferential share's they should pay 6 per cent. The I per cent would give nearly £IOOO, which would pay a o per cent bonus to ail receiving under £201.) per annum. Every other mercantile linn .had given its employees a war bonus, but; the " Co-op. !/ refused, because of the loss on the wheat gamble. He advised them to keep faith with their customers by paying the promised rob ato on jxoods purchased. Ho thought they should pay a 5 per cent, bonus to their employees, and, .say, L's per cent to the shareholders. Mr R. H. Rhodes f-aid that two of the men who took up the most time at the meeting ;md howled down the association were liko the old man of the wa. Thcv always stuck to the association. When a farmer wished to sell his wheat ho went to the merchants, aod if the association had refused to purchase wheat tho sellers would .simply go to other firms. Ho was sony that no bemts had been provided for the employees, but the directors might, see their way dear yet. to grant a boons. Mr Mas.lin s&iu ho hoped that all ihe talk was not going to end in smoke and ho would liko to know if the directors would favourably consider the suggestions or the meeting. If not, he would n;o7e an aipoinlmsn; that the meeting adjourn till next Saturday, and that the report be referred back to the directors for further consideration. The chairman asked Mr Ma-slin to move accordingly, and Mr Maslin did 60. He that the director? should give a bonus to employees earning under £2oo a year, also a bonus of 4 or 5 per cent to purchasers. Mr Cor, ;f;an seconded the .amendment and said it was hard l-h0.6 the staff should suffer The arnondnicnt- was th?a put ami amidst loud cries of dissent whs declared lost. Some members insisted that the amendment had been carried, and the chairman said Jig r.ordd demand :i poll, but it ivsH found flint a poll con Id iV't ho taken on n morion ior an adjournment. Tho chairman pat the motion that the anmial reporj. and balance-sheet should b.'- adopted, and amidst loud cries of diwecit and a. few groans declared the rcoKcn carried. The ch;u"man n ; .' 7->*d a former motion Lo all-t-r tho Memorandum ox Association, in order to enable tl/o association to join the proposed Wholesale Co-operative Federation. 1 hero was gome opposition to the proposal, speakers saying it would give the directors too mudi power. A show of hands was a pain taken, but a ballot was demanded. Voting by proxy was allowed, whereat several shareholders left tho meeting. Other speakers attempted to speak, but their voices wore lost in the noise of moving feet and talking. The motion was declared carried. The >Vi>■=. For, c*; k''.