THE PROPOSED FARMERS' CO-OPERATIVE SOCIETY.

Tuapeka Times, Volume XXVI, Issue 1812, 15 July 1891, Page 3

THE PROPOSED FARMERS' CO-OPERATIVE SOCIETY.

Between thirty and forty settlers were in attendance on Saturday evening at the Good Templars' Hall, Havelock, to hear Mr Wm. Christie's address on " Cooperation," which was delivered under the auspices of the local Farmers' Club, Mr R. M'Ara (President of the Club) presided, The Chairman, in a, few introductory

remarks, said that although Mr Christie i was not known personally to many of I those present, yet by rep nte his name,' through his able advocacy of co-opera-tion amongst farmers, was known far and near. He (Mr M'Ara) had the pleasure of meeting Mr Christie at the annual meetings of the New Zealand Farmei-s' Union in 1889 and 1890, and could truthfully say that there were few delegates at those meetings who took 30 keen or so intelligent an interest in the business transacted as Mr Christie. That gentleman was always alive to any matters that concerned the wellbeing of the farming community; and was ever ready, either with his voicft or pen, to further the common cause. Full of enthusiasm, backed up with ability of a high order, Mr Christie never wearied in fighting their battles ; and in his advocacy of co-operation, which was a subject very dear to him, that gentleman had. already rendered signal service. He (the Chairman) need hardly bespeak for Mr Christie a fair and impartial hearing: that was always accorded to those who came before a public meeting at Waitabuna. Mr Christie, in reply to the introductory remarks of the Chairman, said he accepted the invitation extended to him by the Waitahuna Farmers' Club with considerable diffidence, conscious as he was of his inability to place so important a subject before them in as clear and vigorous a manner as he could wish. He was afraid the gentleman who so ably fills the editorial- cbair of their very excellent journal, the Tuapeka Times, had raised expectations of his abilities that he should be hardly able to sustain. The history of co-operation, like all great movements, Mr Christie remarked, had many features of interest. In England its history may be divided into three periods, the first being from 1824 to 1844— the twenty years during which was laid the foundation of the great cooperative movement that subsequently attained such gigantic dimensions in England. Rochdale was the birthplace of the co-operative movement in England, and to Robert Ewan, the philanthropic manufacturer, may be awarded the credit of first ushering it into life. H3 it was who first sowed the seeds, the splendid harvest of which is being reaped by the people of our day. Iv 1844, the second period in the hi3tory of co-operation, 28 persons, well-known as the "Rochdale Pioneers," having collected £28, commenced business on the co-operative principle, by making purchasers shareholders and dividing the profits among them in proportion to the amount received from each on their purchase, with a fixed interest on the capital. In 1862, such WBS the I'apid growth of the new system of trading, no less than 450 co-operative societies, with 90,000 members, had sprung into existence, having a capital amounting to £450,000. The annual sales had reached no less a sum than two and a-half million pounds sterling, on which profits amounting to £166,000 were divided among the shareholders. Ten years later — in 1872 — the number of societies had doubled their number, while the membership had quadrupled. The annual sales had then risen to thirteen million pounds sterling, and the profits to £100,000 — a development so marvellous as almost to surpass belief, when its modest beginning and the comparatively short period of its existence are taken into consideration. From 1864 to 1884 may be considered the period of wholesale co-operation — an entirely new form ot trading and commercial life, as it were ; and in this direction the system has continued to expand and grow down to our own day. There are now throughout England co-operafcive societies in almost every branch of business, co-opera-tive congresses being held annually at which the affairs and prospects of the system are discussed by men of the highest commercial training and intelligence. Last year a meeting of delegates from all parts ot Great Britain was held in Glasgow, representing 100,000 members, £10,390,000 of capital, £36,600,000 annual sales, from which profits accrued amounting to £3,400,000. These facts, continued the speaker, demonstrate the benefits of the system he was advocating; showing in the first place that the members, who are chiefly workingmen, get value for their money, and that the , profits, instead of enriching a small and select number of middlemen, return to the pockets of those from whom they originally came. Co-operation, too, dispenses social and educational advantages of high a value, besides inculcaI ting habits of thrift and method and observation in the lives of multitudes who would otherwise, as far as these great advantages are concerned, be living in a state of mental blindness. Men and women are induced to take an intelligent interest in the affairs of those co-opera-tive establishments with which they are connected, while the improvident are encouraged to be saving, and a profitable outlet is provided for those who have been careful enough to husband their resources, let them be ever so slender or small. In this colony cooperation has long since passed the experimental stage. The farmers in the Canterbury province have, for upwards of ten years, with the most encouraging results, carried on two very successful co-operative businesses. During that time profits amounting to £40,000 have been distributed among the shareholders ; and under the ordinary trading system this money, he need hardly tell them, would find its way into the pockets of individual merchants. Under this system the shareholders are the direct participators in the profits of the business they transact, receiving at the end of each year such a percentage on their actual business as the result of the year's operations will justify. During the last ten years the Canterbury Co-operative Association at Timaru have distributed in that district no less a sum than £16,222. The New Zealand Co-operative Association is a still larger concern, and equally prosperous, turning over upwards of £500,000 a-year. The Canterbury Association has an annual turnover of £200,000, the dividend recently declared being 15£ per cent, or 8 per cent, on capital and 7|per cent on members' purchases. Besides paying dividends and bonuses, they have built up a reserve fund of £4,500, and have freehold unencumbered property to the value of £12,000. In addition, purchasers got theii* goods at a much cheaper rate than they could in ordinary trading establishments, and had their produce sold at a very low commission without in any instance being brought into contact with the middleman. The speaker further detailed instances of the barefaced manner in which the middlemen impose on. the i producers^ robbing them, as it were, in

' homoepathic doses, the process not being quite so disagreeable to endure as a large bolus, but quite as effective. Having 'quoted from an eminent English authority to show the leakage between the producer and the consumer, and shown by reference to the Canterbury Co-opera-tive Associations how this leakage may be effectually stopped, Mr Christie dwelt at length on the many advantages of cooperation. They were well aware that the manufacturers seldom retail their goods, but put them into the hands of the agents. Take, for instance, binder twine, which must be bought from the middleman afe a large advance on the maker's price. Whereas, by co-opera-tion it could be bought direct from the manufacturer and the agent's profit saved. Another important item in the business of the farmer was artificial manures. Farmers at present are at the mercy of everyone trading in the article. Few men can tell the q uality of the manure except by result, and then it is too late. By co-operation farmers could purchase it by the cargo, and have it analysed at a small cost. The same remarks apply to the purchase of corn sacks, wool-packs, fencing wire, and, in fact, every requisite of the farm. And the same may also be said of the selling of stock and produce, and in numerous other ways which can only be known and appreciated by actual experience. The system of co-operation he advocated was to put a fixed value on capital, and let the balance of profit be divided in proportion to _ the business that each shareholder does, and not according to the amount of capital invested. For example, one may have only £5 invested in the concern, and may do more business than another who has £500 invested. It is, therefore,under such circumstances manifestly unfair that capital should get a monopoly of the profits. The directors should all be practical farmers, and the manager a man of thorough training in mercantile affairs. In conclusion, Mr Christie called on all present to give the subject their serious consideration ; and ' if it met with their approval, as he had no doubt whatever it would, he hoped they would put their shoulders to the wheel and make an effort to provide themselves with a co-operative association. They must in the future look to the markets of the world for the disposal of their produce, and with the fierce competition so rapidly coming into play, the price of production must be kept down to the lowest possible point, otherwise they were bound to lose ground and fall back in the hard struggle for existence that is going on throughout the world. The Chairman said he was confident all present had listened with feelings of the" deepest pleasure to the very able address which Mr Christie had just delivered to them. He had shown with great force and clearness the benefits which the farmers would derive from the establishment of a rightly-conducted cooperative society. He did not think there could be any grounds for cavilling at the solidity ot his arguments or the soundness of his deductions. That the farmers of Otago by banding together and starting a co-operative society on the lines of the Canterbury associations, referred to by Mr Christie, would reap very decided advantages, there was no denying. He believed if the matter was taken up heartily and canvassed properly that there would be very little difficulty in raising the necessary capital to start a farmers' co-operative society in Otago. Mr Christie remarked that one very decided advantage to farmers who were shareholders in the Canterbury Farmers' Co-operative Association was that they got their stock and produce sold at 1 per cent, commission. Since its formation the Association in question had distributed in dividends and bonuses no less a sum than £16,222. All that money had been circulated in South Canterbury, j and the advantages accruing to the population was manifest. The last bonus declai*ed was 7£ per cent., which was in itself a very considerable on the prime cost of goods. It meant 6d a dozen on cornsacks, 2d each on woolpacks, £1 Is 9d a ton on wire, 16s 6d a ton on standards, and so on. These were facts that could be gleaned from the Association's last annual report. Mr Cowen thought the day was not J far off when co-operation would be the j ruling power of the universe. A far- j niers' co-operative society in Obago, on the lines of those in Canterbury, would be established in the course of time. He I doubted whether it was wise to take \ action just now. Competition was very keen in Dunedin at present, and if a farmers' co-operative society was to be started there it would soon be crushed out of existence. There was too much cut-throat competition; and evil of it was that the farmers suffered. What security had many of the farmers when they sent their produce to Dunedin that they would ever see a penny in return ? Many of the men with whom the farmers did business were not worth the hat they wore on their heads. Mr Christie said the last speaker had furnished some very telling arguments in favour of the farmers of Otago subscribing the necessary capital to form a co-operative association through which they could transact all their business. Such an association, with the requisite capital, and conducted on a proper basis, would be an insurance against loss : ifc would give a guarantee and create a feeling of security that would never be questioned. Mr Cowen was afraid the farmers were neither sufficiently educated nor independent enough to go heartily into the matter of forming a co-operative society. Many of them were in the clutches of monied men or monied institutions ±hat did not look with much favour upon co-operation. How could these men be helped out of their difficulties ? Mr Christie remarked that a co-opera-tive association was just as ready to advance money on a Crown grant as either a private individual or a monied institution. It would be ready and willing to help those who were really anxious to help themselves. In the matter of competition,the two Canterbury co-operative institutions had to fight their way against competition just every bit as keen as that which would be offered to the proposed society in the event of its being started in Dunedin. Of course everything depended upon the farmers — the shareholders — themselves. By uniting and transacting all their business through their own institution, how could it be otherwise than a success from its yery inception ? Mr R. Craig- said Mr Christie's able paper had supplied them a lot of food for thought. There was no doubt whatever that a well-equipped co-operative

society, rightly supported, would be of immense advantage to the farmers of ' the Otago provincial district. He would like to know from Mr Christie if he was in favour of steps being taken to form an alliance with the Mutual Agency Co., which had its headquarters ' at Dunedin, or of starting a co-operative association on an independent basis ? Mr Christie replied that the Co-opera-tion Committee appointed by the New Zealand Farmers' Union passed a resolution in favour of overtures being made to the Mutual Agency Co. with a view to amalgamation. The Agency Company was approached, but they could not enLertaiu any proposals until those making the overtures were in a position to submit something definite. For instance, some time ago he issued a circular to all the farmers' clubs and kindred societies iv Otago with the object of finding out what support the members were prepared to give to an association to be called the Otago and Southland Farmers' Co-operative Association (Limited), with a capital of £25,000 in 5000 shares of £5 each. Were such an association formed, with say about £1 10s per share called up, they would then be in a position to approach the Mutual Agency Co. They would be in a position to make a definite offer. The Mutual Agency had au established business and were now making satisfactory headway. It was not to be expected that the Agency Co. would rush with open arms to receive an association that was merely talked about — that in reality had no existence. So far as he was personally concerned, he was not indisposed to amalgamate with the Ageucy Co. It was not conducted at present on co-operative principles, and iv addition some radical change would have to be made in their method of voting and exercising proxies at the shareholders' meetings. But of course these were mere matters of detail, which could be considered after amalgamation had been arranged. He should like to see all the shares iv a farmers' co-operative association held exclusively by farmers ; its directorate also should be composed of practical farmers, with a thoroughly first- class mercantile man as business managpr. After some conversational discussion, Mr Jas. Moggath addressed the meeting at considerable length, strongly supporting the proposal to establish a farmers' co-operative society. He advanced a number of telling arguments iv favour of the proposal, backing these up with a strong array of facts. Mr Christie warmly thanked Mr Moggath for his address, adding that his knowledge of the subject, aided by his eloquence, was certain to carry conviction where any doubts on the desirability aud practicability of a farmers' cooperative society had previously existed. The Chairman "said he did not think any of the farmers doubted the wisdom of starting or questioned the advantages to be derived from a strong farmers' cooperative association. The trouble was to get the preliminaries properly started. He believed that if a capable man — a practical farmer — were appointed to go through the farming districts of Otago lecturing and canvassing, the proposed co-operative association would be an accomplished fact in a very short time. Mr Ctft-istie remarked that the New Zealand Farmers' Union had no fuuds to meet the expenses of a lecturer and canvasser. He had written on two or three occasions to the Union on matters relating to the subject of co-operation, but had never been favoured with a reply. He thought if a prospectus of au Otago Farmers' Co-operative Association were drawn up and a few hundred copies circulated they would soon find out if the farmers would give the necessary support to the undertaking. He was not in a position to meet the expense out of his own pocket, but was J sure the "Warepa Farmers' Club would pay its share. Perhaps, the Waitahuua i Farmers' Club and Tuapeka Farmers' Uniou would also contribute their quota towards the cost of printing and circulating copies of the prospectus. After some discussion, it was understood the Waitahuna Farmers' Club would bear its proportion of the expense of getting the prospectus printed and circulated. MrChristie undertook to draft j a prospectus and forward it to the Club for consideration at its next meeting. | Mr Craig moved : " That this meeting accords a hearty vote of thanks to Mr Christie for the very excelleut address I on ' Co-operation' which he delivered | that evening." — The motion, which was carried by acclamation, was appropriately acknowledged by Mr Christie. The usual vote was passed to the chair and the meeting dispersed.