FARMERS’ CO-OP.

Star (Christchurch), Issue 17345, 27 September 1924, Page 13

FARMERS’ CO-OP.

FORTY-THIRD ANNUAL MEETING.

“ RESULTS ACHIEVED HAVE BEEN SATISFACTORY.”

“ When (he adverse conditions under which we have worked for the greater part of the year are considered, the results achieved as shown in the balance-sheet have been satisfactory.” stated the chairman of directors (Mr J. A. I’annett) at the fortythird annual meeting of the shareholders of the New Zealand Farmers' Co-operative Association of Canterbury, I,invited, which was held to-day. The chairman said he felt confident that with the combined effort of shareholders it would not be long before they would again be enjoying prosperity in keeping with that of former years.

Tin* meeting wa>- hold in the tea rooms and there Mas an attendance of between five and six hundred shareholder-. The directors’ annual jeport and balance-sheet have already been published. The reports of? the auditors. Messrs William .Jameson and ."'on. Messrs Now. In.rgh. Best, and Co., and .Mr H T AY hittingiiam, tvcrc read by the sccrota r \ . CHAIRMAN’S ADDRESS. tSATISEACTOR Y R E-SlLXfc!. The chairman, in his address, said \N e have asscinoieu ner<* ui.s morn I ng to review the results ot the operations of the Association’s forty-third year. I lie period has - been quite an exceptional one, for besides the ordinary conduct ot the business a great amount of time and thought have been given to the work of contraction, reorganisation. and the stabilisation of our finances, and whilst these reforms in some respects may have had a disturbing influence. they m ’t?vc really necessary in the interests of the association as a whole. When the adverse conditions are considered under which we have worked lor the greater pare oi the year, I think shareholders generally will .agree that the results achieved as show n in the Balance Sheet have been satisfactory, and 1 feel confident that wit 1 1 the continued support of shareholders it will not, be long before we are again enjoying prosperity in keeping with that <>f former years. Finance no doubt is the most impororder to place this association in a strong position in this respect, in November last wo brought down a ” Financial Proposal “ whereby our Bonds and Deposit'. Merc converted into .Secured Deposit Stock. Our bondholders’ ami depositors’ interests Mere protected by spociiic security, thereby placing their investments in a sate Ihe benefits accruing from this " Proposal ’ arc plainly evident when comparing tin* present balance sheet with that of last year; the liabilities under this headuig are well spread and do not cause us any concern. The full benefit <>i flu* introduction of tuis • Proposal' Mill he more apparent during the ensuing and following years. The method oi finance in the past, wliil-. being satisfactory whfn cimnnjustnient to stand up to the more rigor, us conditions which at present pre- \ and which might he looked to ensile for some little time to come. ( ON FI DENT' K I N ASS< K I VI lON. It has been our aim to cause bondholders and depositors as little incon- . <■ i?ici -< as possiolc. and I am pleased ' i*. say that our depositor.- particularly, who under the “ IToposal could obtain uisLalJicnts. have nearly all elected to renew tin* whole ot their principal lor longer period#, thereby demonstrating their confidence in the associationciutinti i-. tin* first in New Zealand to my know ledge to give its depositors tangible security for the due protection of ■.ln'ii- ii'.onie' ..nd I feel, now that conditions generally art* on the improve, and considering that our surplus of asover liabilities is 1:773.995. or with the uncalled share capital li. ii»o.b<o. that iicm will he forthcoming. been taken iu hand, and this perhaps has been one of the most trying and unpleasant duties mo have had to perform. as with the rearrangement and consolidation of departments, some members of our stab have been affected thereby. Whatever lias been done in this respect has been after the most careful consideration. Ihe savings in wages alone will be considerable, and you will ho pleased to know that the several departments are now upon a profit earning basis, despite the fact that most retailers report trade to be anything but buoyant. ALTERATIONS TO PREMISES. Contraction of premises lias also received your board’s earnest consideration. and in order t<» m*ei the altered conditions it lias been considered advisable to consolidate departments at our Blenheim, Rangiora ami ficcston branches, the primary object being to enable tin* association to cater for the same amount of business (or greater if possible) with a smaller staff, and bv fitting up the vacated portions of the premises as offices, etc., it will be possible to scc-iirt a certain amount of revenue. For instance, at Blenheim branch the top floor space lias been leased for tea rooms, at Dees ton branch four offices were fitted up and are all at present leased, and the fitting up of offices at Rangiora branch is now under way. So far as Christchurch is concerned, we have disposed of the building recently known as the machinery showrooms, and other surplus properties not immediately needed will he sold as soon as conditions are favourable. Alterations to the i hristchurch premises have also just l»een effected, and possibly some shareholders will question the wisdom of going to this expense at the present junctuie, hut 1 feel sure that the cost of these particular alterations will ho covered by the profit on the extra business which we feel jt will be possible to secure by bringing down certain departments on to tlie ground floor, enabling us to make a more comprehensive display and to work them with greater efficiency at a lesser cost. THE MORATORIUM. The moratorium has been extended from December 31 next until July 31, 1925, but any mortgagor w ho is seeking relief must lodge his application before March 31. The moratorium no doubt was very necessary, but in my opinion the lifting of the same should not be further delayed. Most mortgagors have already taken in hand the re-arrangement of their mortgages, the only exceptions being weak holders, and. whilst a certain amount of hardship may be caused, I consider that it is very desirable to again attract monies for investment upon broad acres, and thereby assist the producers. The lending institu-

lions, owing to the uncertainty vegard- : ing the perpetuation of the moratorium, have ior a. good while past been inclined to place their investments l through other channels. Before passing on to the analysis of the balance-sheet and profit ami loss , account, I should like to refer to tho loss we sustained early in the year through the retirement of Air James Cow, who for many years was an active member on your hoard of directors. His valuable help lor a long period was greatly appreciated. I should also like to refer to a number of changes which have occurred in the personnel «»l our executive officers. Mr E. AW Relpli. who has spent his life in the co-operative movement, ami was for a gieat, number of years our chief executive officer, was compelled through indifferent. health to retire some, .few months ago. hut T am sure we are all gratified to know that he hns much improved since he relinquished the worries and anxieties of office. Mr A. W. three years your general manager, also ! retired in May last, and lias set up iu business upon his own account. He p lias had to stand up to the heavy strain ; of office during the past period of . slump and stringency, and I am sure * will appreciate the relief which he is - now enjoying. * Last year I reported the appointment 1 of Air AY. T. Esson a.s assistant general manager, and upon tho managerial j chair becoming vacant owing to Mr Jamieson s retirement. your board I unanimously appointed Air .Ess on to P the senior position of general manager » and I trust he will have a. long and , satisfactory term of office with the association in that capacity. Two other - important appointments have, during i the year, also been made ; viz., that of 1 Mr D. G. Ogilvie as merchandise supervisor, and Air R. Alaoartnoy as farm ; supervisor. Their services will, I am sure, he of great- benefit to the association. ! THE BAD ANT E SHEET. I should now' like to allude to the * principal items of our balance-sheet and profit and loss account. ; Capital Account.- This remains unali tererl from last year. L Secured Deposit Stock. Bonds, ' A- >3(),()( M >. I i dor the finance propo-n.l J introduced m November last. these ' moneys were emended for another four years, and iu consideration of the xo- ' curity given, die rate of interest was reduced to six and a ha.li per cent per annum, and the association relieved of - the obligation Id pay bond tax of 3s - it. flu* LI. giving, however, an undertaking to reimburse bondholders the amount of such tax paid by them upon their individaul incomes, upon a verified demand being made for a refund. I nder this new arrangement your association will be able to make a sub- - stantiai saving, the full benefit of which I will he received during the ensuing Deposits. I hose aggregating “ £597.493 against £580,183 as at last year arc also converted under the proposal, and fixed for terms up to ten years, the greater amount being fixed , f° r at least five, years, and being well spread over the respective mouths, f Shareholders’ Current At counts, - £300,875. representing an aggregation , ° F some thousands of farmers’ accounts, _ through which their stock, wool and * S'-Mn transactions filter. This balance t compares with L 102.723 as at Julv 31, 1923. and C23E921 at the dale of the :> introduction of the Financial Proposal, s I he poor grain season has affected tho 1 figures somew hat, although on the other 7 hand of course, the wool and stock * season was satisfactory. - Sundry creditors—-4:92 909. representing our trading commitments whieli are disbursed month I v. 1 Accrued interest. £14.701 This i- * £8,350 less than last rear, bv reason \ ot tho fact that our liability to seciirL> deposit stock holders was discharged J up to July 31, as against May 31 of the L pn vious year. Reserve for Doubtful Accounts. *£E,2 4 < Ibis item is held in reserve to provide for possible looses in connection > ing to dr} rev fttion of land values a.-e - no*, sufficiently secured; several of the I accounts concerned are now in course - oi realisation. r Bank Overdraft. £246.931. being i £3290 ill excess of last year, and which includes all branch balances, and ini dicating the continued heavy leaning t upon us b\ Mir many farmer clients. " Total Liabilities Our total liabilities - other than to shareholders show* a dec crease of £150,693 compared with last ■ year, a decrease of £308,935 as eomI pared with 3 922. and a decrease of 1 £454.792 as compared with 1921. de--1 monstrating the earnest endeavour be- } mg made to bring the figures into J normal limits. I ASSETS, r. Properties and Warehouse Fixtures _ it Hea l Office and Branches, £450,358 s This amount includes the sum writI ten up .u terms of the recommenda- _ Lion adopted at the last annual general meeting, various amounts expended j upon improvements, and in addition. the reinstatement of a portion of the 1 sum of £9931 9s representing deprecias tion previously reserved for income ] tax pu i poses. Machinery and Plant. £65,201. sbowe ing a decrease compared with last year e of £2134, which is accounted for by a v larger writing off hv way oi depreciai tion. o Stock of Hoods in Stores and in v* Transit—£397,Bs6 against £377,130 last year. Stocks, which, reached abnormal figures in 1921, have * been gradually decreased, and are now down to normal, and well written down to present marked, lvalues. Included in 1 tlie above sum are goods in transit from * London, amounting to £15,574. ? Advances against Land, Stock, Grain and Sundry Debtors—The aggregation t of these assets, which reached abnormal i figures in 19*21, are gradually being s reduced, and with few exceptions advances are supported by security over the land, chattels, crops, etc. Never before in the history of the association 1 has such a close scrutiny been exercised ’ over the affairs of our numerous clients. 1 Securities have been depreciated where I necessary, and in those instances where 0 farmers’ positions have been beyond t hope realisations have taken place. t Recently we appointed Air R. Macart- - ney, of Tai Tapu (who is a practical

fanner) as farm supervisor, and his duties comprise making special inspections. reports, valuations and generally advising our clients in their farming operations. We feel sure his experience will he of great service, not only to the association, but to its clients also, The actual cont Faction of figures under this heading is as follows : £ Decrease since 1921 . 439,787 Decrease since 1922 . 309,971 Decrease since 1923 . 109,770 and as mentioned elsewhere, a special reserve of £41.247 is held to provide for any further losses that might he occasioned with resjiect to the many hundreds of accounts now in operation. PROFIT AND LOSS ACCOUNT. Overhead Expenses As usual, we have set those out in detail, and practically every class of expenditure shows a decrease, tho total overhead costs showing a further reduction of £l2. <65 compared with ,1923, demonstrating our earnest endeavour to bring these* to a satisfactory proportion in relation to the revenue, and it is hoped that further -economies will he affected during the ensuing year. Earnings. The gross profit on merchandise shows an increase, of £3”.*92, comparative' figures being £138.003 against £120.511 of last tear, and with the economies that have been effected, and l>\ reason of the fact that stocks are written down to bedrock, further improvements nluv confidcntlv lie looked for in the present- year. Commissions show an advance of £2BBI. mainly accounted for by the improvement in wool price-' and to our increased catalogue. Interest Account. After paying all interests on secured deposit stock, shareholders’ current accounts and hank overdraft, this account shows a piofit of LI 773. against a loss of £B9IO Inst year.’ n result which. 1 think, will bo considered satisfactory. The full benefit of the recent- financial proposal to which I have alluded will account during the ensuing year. MODE. The past season proved in every respect an excellent one: indeed, results exceeded all anticipations. The aver age price per bale worked out at £26 8s Bd. against £l3 is Id during the 1913-1 1 season ; in other word'-, exnct--1 v double. It was grntifvjng to note the steady advance m values for our three-quarter and crossbred wools, also the increase in the number of bales sold locally. The competition from the local mills was keen, which was a material factor in keeping prices well up to London parity. Now that tho H.A.W.R.A. stocks accumulated during the war jreriod have been disposed of. it. would api>ear that good prices may I - e expected for some little time to come. Alany farmers, realising that, it pays them handsomely to have their clips properly ‘’classed.” have entrusted this work to us, and during last, season we classed 3324 hales and 1 139 bags of wool on growers' behalf. We have every reason to he gratified with the result of the past season: our sales increased by over 1090 bale# over the previous year. In sympathy with the wool market, skins are in good demand, and prices, as most of you are aware, arc upon a very high level. The association’s operations in skins continue to show an important liimich of our business. Our operations throughout the year uitrh'r review in this department of our business have been very active, and prices, particularly with regard to slit op, have been highly satisfactory j which haw* contributed very substantially t<« the splendid reenH-ery so many of our farmers have made from the effects of the slump period. CATTLE The past few years have been disheartening lor cattle breeders and fatte.ners generally, and. although during 1923 tin*, fat cattle market improved considerably in both islands, the effect of tlic slump years is still notice able in the annual returns, tho increase this year being only 65,000 head as compared with 157,000 head in 192223. Store stock have met a very poor demand, and to effect, sales very low pi ices have had t<> be accepted. It, G gratifying to note tiiat this section of our business shows substantial expansion. LA ND DEI*A R'l'.M ENT. Tho operations in this department were satisfactory when taking into consideration the high rate ot interest ruling throughout the period, coupled with the I act that few commercial a ml financial firms were prepared to finance now elk ills. Now tiiat the. lifting of the moratorium is in sight, and tin prospects for wool, lamb, mutton and wheat being particularly bright, these conditions should have the effect of stimulating sales. GR AIN DEPART A 1 ENT. Tho turnover in this section has not of recent years been as large, as our clientele warrants, and careful re-or-ganisation has recently taken place, which, wo tool sure, will result in a large volume of business being done to our mutual benefit. The present season will long be remembered by all concerned. The dry spell, during November. December ancl January had disastrous effects on yields. Although the Dominion showed a carryover of most cereals at the end of last season, tho returns from this season’s crops, combined with the carry-over, foil far short of the Dominion requirements. making it necessary to import i.L large quantities such lines as wheat, oats, sharps and potatoes. These importations caused rapid and at times unexpected fluctuations. Prices have been high in all lines, with the exception. perhaps, of linseed, but not sufficiently high to compensate the growers for the low yields. Wheat. —An arrangement on the lines of previous Government control was entered into between tho Farmers* Union and tho millers. by which prices were fixed for the season. Although yields were disappointing, the quality was excellent. W it!t the exception of the 1919-20 season, the acreage sown was the lowest for many years, the total yield being the lowest on record. The average yield per acre was lower in 1910-17-18. The season was a short one, conditions being very favourable for threshing, and in view' of tho shortage and consequent necessity of importing from Australia, competition was very keen. Although it is anticipated that the acreage sown will show a slight increase this season, it will no doubt still be necessary to import again, and consequently crrowers may be assured of a. good price. It is evident that millers’ stocks will bo down to hare boards” before the new season’s wheat in available. LOW OAT YIELD. Oats—The total Dominion yield this season is the lowest on record. The latest returns go to show that approximately 2,000,000 bushels have been threshed, whereas the average for the past ten years would be 6,000.000 bushels. Prices consequently have been high, and were it not for the large quantities of oats available from ('anada at low money, New Zealand

would have experienced a famine on this cereal : a record price would undoubtedly have boon attained. As in the case of wheat, the high prices did not compensate the growers on account of low yields. The dry summer was responsible for a much larger area than usual being fed off. and another factor for the small acreage being threshed was the strong winds experienced at the ripening stage of the oat crops. -Vs Canterbury did not produce sufficient for her own requirements, we bad to look to Southland for supplies. The general opinion is that a larger area ha*» boon already sown in the Dominion for next season’s crops the prospects look bright for good prices for tho earlv months at any rate, a.s markets arc* hound to he hare of supplies when the now crop heroines available. Canadian oais are still being imported but their market has firmed considerably of late, which will make the imported oat too expensive to risk a carry-over in competition with New Zealand now crop. Chaff—At the opening of tin* season it became apparent that te North Island would have to look elsewhere for supplies, as the drought experienced in Canterbury had reduced its surplus fully 50 per cent. Tho price to growers was steady throughout tho season, hut had it not been for importation from Australia vorv much higher prices would have prevailed. A!id and North Canterbury’s average production of chaff is 30 per cent of the Dominion. PRODUCE LINES. Potatoes The acreage sown was possibly a little more than last year, hut the yields were in most cases disappointing. Prices fluctuated frequently and olien unexpectedly, but on the whole were favourable to growers. Australia had a bumper crop, and bn vc*rs wore therefore attracted by the low quotations from that source and importations became frequent. The present indications are that a decreased area, will bo sown for the Linseed I lie acreage sow n in this cereal last season was about the average. Yields and quality varied considerably. A percentage of the crops was late and quite a large area contained a second growth. This made the ripening irregular: consequently tho sample suffered. Sydney, which is our principal market, procured most of her supplies from other countries at prices with which New Zealand could not compete. However. all good quality linseed found a market at a reasonable price. Ryegrass What promised to he a bumper crop was seriously reduced bv the drought conditions, heavy winds and shortage of feed making it; necessary for farmers to feed off a larger area than at first intended Wholesale prices were on a high level, and loss in dressing was greater than expected, consequently the retail price restricted sowings. Cocksfoot ( rops wero light, hut quality good, colour and purity being tlie best for many years- Importations of Danish seed at a cheap price kept, local Yu lues in relation to vield at a low level. (Movers- The season was a. disappointing mu* so far as yields were concerned. these being light. Heavy importations of red clover kept prices at a. low level, and merchant* are carrying more than normal stocks. UnIcss wo have an enquiry for export (which is quit:* possible) there is hound to b*> a large carry-over. Yields of white clover were light, but prices, until the export demand was. satisfied, were satisfactory to growers. GEN ERA L. Binder Twine and Jute Goods- The operations with respect to these* goods were prejudicially affected by the poor grain yield, as well as the reduced area under crop. .Manures I he excellent result,s obtained from the use of our “Co-op” fertilizers are well known, and consequently. d<'spile the- smaller area under crop, our sales in this section showed a substantial increase*. Cool Stores A very satisfactory year eventuated, and the rapacity of our stores was severely taxed throughout the whole period. As indicating the varied services performed in this Department we might mention that many thousands of boxes of butter, eggs, egg pulp, ] »oii I try, etc.. were stored without a single complaint being received. Insurance Department -Tlie commission earned proved the best since the inauguration of this department some years ago. All shareholders should endeavour to place this portion of their business through tho medium of the association. Drapery Department 'lbis is one of the most, profitable sections in our business. and the results for the year were quite up to expectation.#. Tlie improvements already referred to should further increase tho net returns for this section. Grocery. Hardware, Saddlery and Crockery Departments—-The results of these sections were quite satisfactory, and Ml exhibited marked increases in Motor Department Sales in point <>f number showed a record, hut dropping prices continued throughout the season. Stocks are now well down to noinial, and prosperous conditions should obtain in the futureTHE DISCUSSION. A FI N E 1$ AI. A X( JO-SH LET. The motion for tlie adoption of tho report and balance-sheet was seconded by Mr H. H. Knight. He said that he was not a disinterested party in the association for the past seventeen years. He referred to tho progress of tlie association during that period, stating that it had reduced the cost of living to the farmers. The association next started advancing money to farmers and the war followed. Consequently, there had to he a re-organisation, and, as a result of that re-organisation, the directors "had brought down a very fine balance-sheet. The directors had made provision for had and doubtful debt?, and had reduced the overhead expenses, yet on top of that they had brought down a balance-sheet showing a profit of over £3OOO. The position was satisfactory, and it now remained for the shareholders to stand by the association and help it all that they could. They had in their manager, Air Esson, a very fine man. (Applause.) Had it not been for him the downfall of the Farmers’ Co-on. might have taken place, and if that had occurred it would have been the greatest calamity in the history of Canterbury. He had great pleasure in seconding the motion. BETTER ’THINGS TO COME. All* A- D- Hassail said ho had a motion which ho desired to move, and lie wished to know if he could read it at that stage. It was agreed to hear Air Hassall’s motion, which lie read as follows: This meeting of shareholders accepts tho balance-sheet as an earnest expression of better things to como Jt expresses a like confidence in Mr Esson as manager, and assures him of its cordial support in his strenuous efforts to curtail all unnecessary expenditure AYc reenn.I mend the retrenchment policy

adopted by the manager as in the 1 best interests of the shareholders, and will ’end to a re-establishment, of the association’s finances on a solid basis. A shareholder said he desired to draw attention to indiscriminate credit given by the Farmers’ Co-op. He said that people could go to the counters ancl book goods to any amount. He claimed that the baiance-sheet did not give the shareholders sufficient information and did not indicate whether the branches had paid their way or not. Replying to the charge that the association gave indiscriminate credit, the chairman said that that was not QUESTION OF CREDIT. The manager (Mr W. T. Esson) said the best reply lie could give to the speaker was that the bad debts on the trading side wore less than 1 per cent. He wished the speaker to realise the difficulties the staff had to contend with. As far as the staff was concerned he was going to bo the first man to stand up and defend them against outside criticism, and as far as the individual members of the staff were concrned ho took up the attitude that if they were not delivering the goods the sooner they looked elsewhere for a job the better. The association had to take a certain number of risks or it would lose business. The Rev John Dickson expressed cordial support of the policy adopted hv the directors and the present manager in reorganising the association on a sound basis. Me paid a warm tribute to Mr Ksson, stating that every man who knew Mr Ksson know that he was the right man to control the destinies of the association. Mr Ksson was the right man in the right place. Mr 1). Rates agreed with Mr Dickson that they had a good manager and said that ali that was wanted now to make tin* association a. thorough success was the hearty co-operation of the shareholders. It now remained for the shareholders to show their support. Regarding the balance-sheet. Mr Hates said he wished to refer to the amount given, in subscriptions. He did not think the directors should be generous with the association’s money when it was not. paying a dividend. He also thought the directors might, as an act of grace, forego their fees until the finances were on a better footing. Mr .1. Brown asked if the £27.000 for had debts and the £41.000 provided for had and doubtful debts were all against the past year's operations. The manager explained that the reserves were provided in the ordinary course of business. R idim; serenely. The Hon G. NY. Russell skid that in case there were any shareholders present who. were suffering from want of hope and want of confidence, he hoped they would go away thoroughly optimistic. A year ago the association was in the trough of the sea and water-logged. Now the association was riding along serenely and facing the wind, and he believed that before another year had passed it would be running along on easy sail with every prospect of reaching what the chairman had called the dividend and bonus stage once more. He declared that the association had had to face the same troubles as had been facing cooperative associations throughout the country as a result of the war He paid a warm tribute to the financial policy pursued by the directors and said there was no doubt that the association in the future could be as it had been in the past, of immense benefit to Canterbury. The results achieved were magnificent results. He drew attention in the fact that the gross profits for the past vear showed an increase, of £23.000 over and above the gross profits for the previous year. On the expenditure side they found that every item of expenditure had been reduced oxeept a. few that could not be reduced. It showed that the pruning knife of retrenchment bad been at work in every department and every section of expenditure. The association had made a gross profit of £23.000. and did so at a cost of £‘13,000 less than the previous year. 1 he association had made a profit and decreased its expenditure to an extent that would pay 5 per cent on a capital of £720,000. DF VI1) K\ DS A N D B< >NTSES WANTED. .Mr \\ . A. Wray urged that the Association should close up farmers in an mi financial position. He wanted to see the association back to a. position when it could pay dividends and bonuses, too. Mr K. W. Johnston said a good deal that had been said might have been left unsaid. The shareholders demonstrated their faith in the association by the amount standing at the credit of shareholders’ current account which was £300,857 7s Id. He thought the association had curtailed quite enough and it was not wise to apply the pruning knife too freely. He urged shareholders to have faith in the association and have faith in the directors ami manager. Air Acland said there were two things the association had stood in need of. One was to have confidence restored and the other was to have dividends restored. lb* believed they had restored confidence and now they wanted to sec dividends restored. Ho urged that, the directors should seriously consider the nuestioii of calling up the uncalled capital. The motion for the adoption of the report and balance sheet was adopted. ELECTI ON OF DIR KCTO ITS. The election of directors was declared as follows: Elected, the Hon I). Budd<U 1301 votes; .Messrs Frederick Hubhard (1286), H. H. Holland (1002). J. G. Armstrong (1055). D. M Millau (1022); not elected—Messrs George Gibb (1014 votes). K. H. Ifrittan (1007). Alexander Ireland (033), informal (23). The Hon D. Buddo. M.R.. in returning thanks on behalf of the directors re-elected said that he wished to point out that the fifteen directors were interested financially probably three or four times as much as any other fifteen shareholders. Regarding the suggestion made by Mr Acland that the association should consider the question of calling np the uncalled capital he said that this question hud been talked over a number of times and the directors had come to the conclusion that it would not be a wise step to take. ELECTION of auditors. A shareholder moved that the retiring auditors. Messrs 'William Jameson and Son. Messrs Newburgh, Best and Coy., and Mr H. T. Whittingham, be rtf-elected. Air D. Bates moved the following amendment: ‘That the appointment of auditors he left t<> the directors, and that four representatives from this meeting including the general manager, be appointed to confer with tho directors respecting same, and any other matters arising out of the balance-sheet.” Mi- J. Connelly seconded the amendment. The general manager said that it would be highly improper for him to ho appointed to confer with the directors regarding the appointment of auditors. As secretary of the association he would be present at meetings j of the directors, but it would he im-

i proper for him to bo appointed as one of the committee. Mr Bates withdrew the reference to the genera’ manager, in his amendment. The amendment was defeated by a large majority. The meeting then decided, on n show of hands, to gc into. committee to consider the appointment of auditorsThe meeting resumed at 2 p.m., after a Fong discussion in committee. Air Bates tlien moved tFiat the nreetnig adjourn for four weeks for the purpose, of considering the appointment of auditors and oilier business. The* motion was carried hv a large majority on a show of hands, and tlie meeting terminated.