THE W.F.C.A. LTD.

Wairarapa Age, 8 October 1936, Page 5

THE W.F.C.A. LTD.

DISCUSSION AT THE ANNUAL MEETING. SOME QUESTIONS ANSWERED. NEW GENERAL MANAGER WELCOMED. There was an attendance of upwards of thirty shareholders at the annual meeting of the Wairarapa Farmers’ Co-operative Association Ltd., held in the company’s offices yesterday. Directors present were Messrs C. M. Bowden (chairman), V. E. Donald, H. G. Williams, Trevor Beetham, T. Jordan and W. Howard Booth. The General Manager, Mr. J. H. Cunningham, was

also present. Moving the adoption of the annual report and accounts, which were taken as read, Mr. Bowden delivered the address which is reported in a /other column.

Mr. F. Davie said they were a cooperative concern. The ordinary shareholders had co-operated in agreeing to the reduction of their shares, and the preference shareholders in going without dividends. He thought that what was sauce for the goose was sauce for the gander. Had any bonuses been paid to members of the staff during the past year and during the past four years! Both questions were answered in the affirmative.

Mr. Davie said that goods had been obtained in some instances elsewhere at lower prices than were charged by the association. He went on to state that Mr. Bowden had resigned as Managing Director, but still held the position

Mr. T. Jordan: “That is not so.’* Mr. Bowden also challenged the statement, observing that he had signed the report and accounts as chairman. He was still chairman, but was no longer Managing Director. Speaking of changes in the directorate, Mr. Davie said the ordinary shareholders now represented about £3,700 and the preference shareholders practically £250,000. He could not see that the ordinary shareholders should have any directors on the board at all. Mr. Jordan: “You should have told the judge that.” Mr. Davie said he thought the board might be cut down to three—two directors representing preference shareholders and one representing ordinary shareholders. He went on to state that he thought it would be about four years before the shareholders got any dividends. Mr. Jordan: “You are a dismal Jimmy.” PAYMENT OF BONUSES. On the subject of bonuses, Mr. Bowden said these had been paid in respect of last year's operations and in respect of the operations of previous years. The company had on its staff certain very valuable men who were able to earn profits for it and when these men got results the board thought it wise to reward their services as in previous years. As to Mr. Davie's suggestion that shareholders would not get any dividend for another four years, that, might or might not be so. The preference dividend in any case started to accumulate on August 1, 1938. Mr. Davie said he understood that, but unless there was a profit, he did not see any sense in paying a dividend. He made some further references to relative prices and stated that in some instances 15 per cent, was added to prices on account of sales tax. Mr. L. B. Maunsell asked whether the chairman considered that more money had been spent since the general increase in wages and whether he thought that the increase in turnover was in proportion to the higher wages, Mr. Bowden said, there had been an increase in the company's sales during the past month or two, but he was not prepared to say whether this increase was in proportion to the increase in wages. It was rather early to say that. The motion for the adoption of the report and accounts was carried unanimously. PAYMENT TO DIRECTORS. Mr. Bowden moved that the sum of £4OO be paid to the directors, to be allocated as the board might think fit. The sum allocated last year was £3OO. Mr. Davie moved an amendment, that the allocation to the directors be not increased. He said he had intended to move that the directors receive no honorarium until such time as the shareholders got a dividend. The amendment was not seconded and the motion was carried, only Mr. Davie voting in dissent. Mr. Jordan said he had been a director of the company for some years and during the last twelve months had attended/ 35 to 40 meetings. These meetings had run into hours. “If any shareholder comes here and says I have not attended to my job,” Mr. Jordan added, “he is making a statement that is characterised by a great econo-< my in truth.** Messrs Trevor Beetham and V. E. Donald were re-elected as directors to represent the ordinary shareholders. Both, in acknowledging their election, said they would do their best for tire company as in the past. Mr. G. W. Sellar was re-elected auditor. THANKS TO THE STAFF. Dr. C. P. Knight moved a vote of thanks to the staff for the good work they had put in during the past year., Mr. T. C. A. Hislop seconded the motion. The motion was carried and w*as ack nowledged, on behalf of the staff, by the General Manager (Mr. J. H. Cun ningham). Mr. Cunningham also thanked shareholders for their reception c«f the chairman's remarks concerning his appointment. He said he believed that, with the help of the directors and the help and full co-operation of the staff the company should go on to success If it did not do so, it would not be for want of trying on his part, or that of the staff. (Applause). Mr. H. M. Boddington, who said he felt they were deeply indebted to the directors, moved that the latter be accorded a hearty vote of thanks for their services during the past year.

Seconding the motion, Mr. A. B Wood said the board had been faced by serious difficulties during the year and its work was not going to be

much easier during the next term. The motion was carried. Mr. Bowden acknowledged the vote and thanked the speakers for thei® kindly references to the work of th® board during the past year. He had thought of joining issue with Mr. Davie over his remarks about the work of the board and his statement that th® directors did not deserve any remuneration, but he w’as sure that these remarks had not met with the approbation of shareholders. Much more work! was done by the directors in a period of difficulty than in better time® (Hear, hear). Suggestions that the directors were not w’orthy of their hire were absurd and futile and he was quite sure that Mr. Davie did not speak in this matter for shareholders. During his eight years with the company, Mr. Bowden observed, its position had improved and he thought he might say that was in some measure due to his efforts. He had full confidence in Mr. Cunningham’s ability to manage the affairs ot the company and was sure it would not be Mr. Cunningham’s fault if the company did not go on to further success.