WARD FARMERS' ASSOCIATION.

Waikato Argus, Volume II, Issue 110, 23 March 1897, Page 2

WARD FARMERS' ASSOCIATION.

The liquidators’ report has been published. It is of great length. Below we publish the concluding paragraph, which may be taken to be. a summary of the whole : Mr Cook prepared a profit and loss account for each year , from the hooks, which he submits. Summarised, the result of the business of the company from its foundation to the 30th June, 1805, as shown by its books is this : Net profits for the seven mouths ended 30th June, 1893, £1903 17s lOd; net profits for the year ended 30th June, 1894, £'2916 11s; total, £4820 8s lOd. From this deduct the loss for the year ended 30th June, 1895, £457 17s 2d ; toial net profit, £4362 lls Bd. The payments for d vidends and bonuses were : 1893, £1383 Is 6d ; 1894, £3219 4s 7d ; 1895, £2678 12s 2d ; total, £7289 16s 3d. thus show ing that the Association had paid away during the above peiiod £2918 5s 7d more than it had earned. Dealing with the statement made by Ward in his evidence that the Association had been credited with any gains arising from shipments, but that any loss had been placed to the debit of Ids private account, the liquidator says he has been unable to discover that any losses made were debited to Ward. On the contrary he finds losses made on shipments made on Ward’s private account debited to the Association. The loss on Ward’s private transactions debited amount to £1879 3s 3d. In 1894 Ward was short credited with £375 for rent and salary. In 1895 he conceded in rent and salary £ISOO placed to goods account. In 1895 Ward conceded £IOOO of dividend to be paid him to go to reduce the goodwill account. Ihe liquidator deals at length with the accounts of Carswell, the Ocean Beach Freezing Works, the Hokouui Coal Company, the Southland Rope and Twine Company, and the Trust Accounts. In conclusion, Mr Cook attributes bankruptcy to the following four causes : 1. Insufficiency of capital : The average paid-up capital of the Association for the three and a-half years of its existence was £12,114, and the average amount of stocks it was carrying during that period was upwards of £25,000. The large difference between the amount of its capital and that required for its business necessitated financial arrangements which proved to be costly. It started its career with a heavy obeidralt, for on December sth, 1892, it issued its first cheque for £13,941 to pay for stocks bought from Mr Ward, there being then at its credit in the Bank the sum of £IBB3 7s 6d. 2. Imprudent advances : On the 20th June, 1895, the hook debts were £78,653, Excluding those due from the Hokouui Coal Company, and the Southland Pine Company they were mainly unsecured. This included £34,369 post due hills. No regu ar record of securities was kept, and only recently were they noted in the ledgers. As has already been remarked, no piovision was made for bad and doubtful debts, but in the year ending the 30th June, 1894, the sum of £5627 was written off as bad, and in the year ending 29tli June, 1895, £Bl3 17s 3d was so wiitten oil’. 3. Absorption of the Association's capital by Mr Ward’s own business : The second cheque issued by the Association was on the sth December, 1892, £3OOO, and debited to Mr Ward’s wool account, apparently as an advance to him to buy woo!. On that day tin* Association’s paid up capital was £1245 17s 6d. I have, already pointed out the magnitude of Mr Ward's operations on the Association’s funds, and it is unnecessary to repeat them hero. 4. Losses cm shipments : Tneso amount to £7269 J2s 3d for the period from the incorporation of the Association to its liquidation. The record of warrants issued for oils was very _ imperfectly kept, and only for a short time.

Mi' E. T. Davcy, Hamilton, is the local agent for the United Fire Insurancc Cinnpuiy, and also tor the "New Family " Sewing Machine. Mr W.J. Hunter announces n, special sale «il horses, to lie held in the Hamilton Borough Yards on Thursday, 29th April. A large entry of horses of all classes has already beeu received,