THE BEST YEAR YET.

Waikato Times, Volume 106, Issue 17840, 12 October 1929, Page 9

THE BEST YEAR YET.

, To-day marks . the retirement from active association with the management of the Farmer*' Auctioneering Company, of two of its founders—Mr. Joseph Barugh and Mr. Henry S. Hawkins. Botli gentlemen possess a wide knowledge of farming and commerce, and in their charge has been reposed the chairmanship of the company for the whole 22 years of its existence'—Mr. Barugh, for 15 years and Mr. Hawkins for seven. To their combined wisdom and effort can largely be attributed the present dimensions and success of the company, which is agreed to be unique amongst farmers’ co-operative trading organisations In this country. Their withdrawal from the board will leave a gap that will he extremely hard to fill. Both gentlemen are Englishmen, Mr. Barugh being a Yorkshireman and Mr Hawkins, a native ot Brighton, .Sussex. In their early days in New Zealand they -worked together, Mr. Hawkins, for some time after his arrival being employed as a cadet on Mr Barugh’s farm at Tamahcre. It was the same ideal with regard to co-operation y?hich animated both, that was largely responsible for the establishment of the Farmers’ Auctioneering Company. During the whole of the intervening 22 years they have never ceased to work in fhe interests of co-operation. To them a debt of gratitude is owed, not only by shareholders of the company, but by the whole farming community.

MR HENRY S. HAWKINS. If asked to sum up the character of Mr Ilenry S. Hawkins in a single word, most people acquainted with him would, without hesitation, choose the word “integrity.” It is for his uprightness that Mr. Hawkins is best known. With this he combines a rare foresight and business ability. Along with Mr Barugh he helped to found the Farmers’ Auctioneering Company, and he has never ceased to foster its interests. During the seven -years he has been chairman—the seven most troublous years, by the way, which the company has experienced—he has exercised a vision and statesmanship that have been fully appreciated by his fellow directors, even though, perhaps, not manifest to the majority of the shareholders. Upon him the directors had come to rely for guidance, confident always of the clearness of his perception and the soundness of his judgment. His belief in c-o-operation made' him one of the chief advocates of federation of co-operative companies, scheme that has proved eminently sound and has meant much to farmers at the London end of their interests. When he relinquished the chairmanship of the federation last year, it was to the great regret of its members. Mr Hawkins has been described as a true English gentleman, than which, perhaps, nothing finer could be said. The embodiment of courtesy, he is firm but just in all his dealings, and he would prefer to sacrifice personal feeling and friendship rather than violate his sense of right and wrong. Only his fellowdirectors are aware of the sacrifices he has made in the interests of the company and the principle of co-operation. He will leave the directorate with the knowledge that he has steered the company safely through a time of crisis, to a position whence its sails are fully set with fair weather ahead.

Retiring Chairman’s Address

The annual report and balance sheet presented at the annual meeting to-d'ay, and already published in the Waikato Times, Is the most gratifying yet placed before the shareholders. It was carried unanimously, following little discussion. In a supplementary address, the chairman of directors, Mr H. S. Hawkins said the year under review marked a further record in production, and there was reason to expect that each succeeding year would Bhow a progressive improvement. He was, he said, certainly surprised that it had been possible for the Old Country—considering their financial obligations, their number of unemployed and their increasing difficulty in finding markets against the competition of the world—to place so high a value on our main exports during the last two years. How long it might continue he did not know, hut it was obvious that it could not continue indefinitely, and therefore he still urged them to. do all they possibly could, both as farme'rs and as members of the community, to reduce costs of production in this country to the point at which they could face a material reduction in our export values. Referring to the capital account lie #ald 'this was substantially the same as last year, the small increase in the paid up capital, viz., £IOB, corresponding with the reduction in calls unpaid. Since the close of the financial year the balance of the calls un-' paid had been practically cleared up, and this blemish on the balance sheet foul'd be hoped, ho conspicuous by its 'absence next year. ..The reserve account had been increased by £3387 13s Id, being Ihe carry forward of last year’s profits, which has been transferred. * Mortgages owing by the company had been practically wiped out, the small sum standing under this head being a government, mortgage, which It .would be inadvisable to interfere with.. The overdraft at the Bank 'of New Zealand showed an increase of £33,545 19s 3d. In the assets of the company the freehold and leasehold properties showed an increase over last, year of £1550 9s. The fact that Ihe company had erected and paid for a new wool store in Auckland showed a further depreciation of these properties. The book Value to-day was about £IO,OOO below the Government capital valuation. Effects of Larger Business, dealing with the matter of sundry

debtors, the speaker said the increase of £40,345 8s Id in the amount owing to the company by sundry debtors bad been caused by the larger business done by both the stock and merchandise departments. This was responsible for the increased overdraft. The greater turnover in the merchandise department had warranted the carrying oof a slightly fuller range of stocks. The liabilities, excluding capital and reserves, totalled £141,283 10s, the total assets amounting to £693,523 16s 4,d, leaving a balance of £552,240 6s 4d in favour ■ of shareholders against a paid up capital of £479,003 10s. On the expenses side of the profit and loss account the amount £97,921 15s showed an increase over last year' Of £8451. The gross profit of £J48,991, 'being £1 8,455 in excess of! last year's earnings, bad proved the additional cost fo be fulliy justified, particularly as the percentage of expenses to gross profits worked out this year at 65.7 as against 68.5 in 1928. That 'profit bad been contributed io by all departments, the stock and merchandise showing a most marked improvement. When they remembered that the net profit last year was more than double that of 1927, Ihe further addition to those figures /of £10,003 was most satisfactory and justified the belief that the company bad permanently recovered its earning power. A Elg Turnover. The amount available for distribution was £51,,069 ss, out of which the interest on preference share 'capital had already been paid. From the balance they proposed paying a dividend of 8 per cent on the ordinary | share capital, the income tax for the i year, and carrying the rest forward, j Briefly summarised, the position, | said Mr Hawkins, was as follows: Paid-up capital, £479,003 10s; tuni- ! over. £2,016,161; gross profits, £148,991; expenses £97,921 15s; net j profits, £51,069 ss. | Tho Stock Department. ! The market for fat and store cattle j had been consistently good tbrough- [ out the year. Local prices were too i high for exporters to operate to any , extent, so that very few fat cattle were frozen. The highest price quoted for liecf this winter was 4 4s per JOOlbs ns against 48s per IOOIbs last year. However, taking the whole year round, values had been

steadier than the previous year. i There had been a good demand for ' dairy cattle, tested cows and good ' quality heil’ers being especially sought , after. The company had held a; large number of clearing sales, and ! the average price realised at the | majority of them had been exception- j ally goo'd. All the pedigree sales 1 conducted had been successful, and the company was looking forward to ; increased business in this direction. ! Sheep were in keen demand during ‘ the autumn; in fact the prices of ail ' classes of store sheep at that time 1 were bavond reason. Although fat : sheep advanced slightly in the early 1 part of the winter, store sheep and • breeding ewes had shown a decline, ; and from the present outlook the ! coming year would see values lower | all round. ; The enquiry for horses had been ! very good, especially for medium and heavy draught farm horses. At the recent spring fairs practically all the horses yarded bad changed hands at satisfactory prices. Pigs had been yarded at the prin- ! ci'pal saleyards in increased numbers, and prices throughout the year had been good. The demand, especially •for fat pigs, was slill keen, and farmers could look with confidence to the future. 'ln the King Country the carrying capacity had considerably increased owing 'to the greater area top-dressed during the year, -and much of what was surplus stock had been held to cope with the feed. The company’s private sales had increased considerably. The bulk of Ihe stock business was already 'being done in Ibis manner, and if this tendency continued, it would be difficult to [dace a value upon any class of stock', in the absence of the competitive basis now obtainable through yard sales. This growth of private scl- | ling seriously affected the earning I power of the various saioynrds estmbI lished throughout the company’s tcrj ritory, and it would be well for farrrij ers lo consider carefully whether they wore acting wisely in ignoring the facilities provided for obtaining the best current prices for their livestock. There were indications of a corning world shortage of beef, which they, as producers, would do well to make a nolc of. Merchandise Department. ! The sales for the year just com- ’ pleted showed a very substantial inI crease, when compared with the pre- | vious period, indicating that the ser-

FARMERS* AUCTIONEERING COMPANY. Turnover Exceeds €2,000,000 * Profits Steadily Rise. “The best year yet,” sums up the operations of the Farmers’. Auctioneering Company, for the past twelve months. In every department of the company’s immense organisation, progress has been shown, while: its> ramificlions have extended materially. The balance sheet presented to the annual meeting of the company to-day is die best compiled in the 22 years of the company’s trading, and the decision to pay a dividend of 8 per cent on ordinal y shares will be favourably received by the shareholders.

MR JOSEPH BARUGH. There is probably no name better known'or more respected in farming circles in the Auckland province than that of Air Joseph Barugh, one of the founders, and first chairman of directors of the Farmers’ Co-operative Auctioneering Company, a position he filled with, distinction for 15 years. Mr Barugh was, one might almost say, born to farming. After spending the first 23 years of his life on his father’s farm in Yorkshire, he came to New Zealand in 1880, when lie purchased a farm in Waikato. lie has resided in this district ever since. Air Barugh was the apostle of top-dressing, which has been the salvation of Waikato. lie commenced to topdress two months after he started farming here, and has top-dressed ever since. He was one of the earliest advocates of co-operation amongst producers, and assisted in the formation not only of the Farmers’ Auctioneering Company, but of tile Auckland Farmers’ Freezing Company, of which organisation he was chairman for 12 years. He also assisted the first co-operative cheese company on to its feet. Another post Mr Barugh occupied, was that of chairman of the Waikato Co-operative Bacon Company. It was his enthusiasm for the cause of co-operation and his desire to help the farmers lo help themselves, that led him into this, and that caused him to add his name on their behalf to the now famous guarantee which cost him almost the whole of his life’s savings. It is doubtful if anyone has done more or sacrificed more for the farming community than Mr Barugh. His retirement from the directorate of the Farmers’ Auctioneding Company, with which lie lias for so long been associated will be an undoubted loss to the company.

| vices the company had rendered ; were being appreciated by clients. The price of grocery and hardware . still remained on a fairly even and j stable basis, and there was every ini dication that this condition would j continue. During the year they had i extended importations, covering a 1 much wider range of glassware and , crockery, as well as a more comprc- | hensive and attractive range of ha<rd- ! ware. Shareholders and clients | could be assured of securing their | every need from any of the company’s ; stores at the lowest prices, consfst- ; ent, of course, with good quality, j Sales of wire and fencing materials ; during the year had been exceptionjally heavy. Although Die company ; handled Canadian wire as well as I English, sales of (lie former were I very small in comparison. For many . years the company had confined its attention lo a leading English make, and was satisfied that this brand gave , Ihe greatest satisfaction to the user. There were other brands on the j market which were slightly cheaper, ; but these often proved dearer in the : Jong run. The company fully realised that farmers buying wire must he protected regarding quality. Sales j of galvanised iron and wire netting ■ had been well maintained. The Grain Supply. i A much better enquiry had been ‘ experienced during the past year for ; Algerian seed oats. The demand in i New Zealand about equalled the sup- !, ply, sa naturally towards the end of the season prices had increased. The enquiry for wheat .was still maintained. The past year was notable for the first year’s working of the southern j wheat pool. Prices during the year had been very reasonable, hut as all free wheat was now off flic market, ; the pool had periodically advanced Ihe : price to cover the cost of holding, and ■ ! therefore a higher figure must rule until next harvest., unless there be ■ an alteration in Ihe present duty • j governing importations. I The Soed Market. l | The sales of grass and clover seeds . j last -autumn were not as great as Ihe , j previous season, which was referred fo in Die speaker's last report as being the heaviest for many years, yet I the business done was well above I normal. Prices were slightly higher - 1 than last year and the quality first- • | class. Competition was always very - j keen with this line, and in spile of - the somewhat serious competition

with lower grade seeds, the company was still able to maintain its connection through exercising the most scrupulous care in selecting only the very best and highest quality. They had built up an excellent connection, and every effort was being put forth to maintain this, and the company considered nothing but Hie best was good enough for its clients. Demand For Manures. The demand for manures throughout the year had been exceptionally heavy, as farmers now realised that this requirement of agriculture needed greater attention. Although the bulk of orders were for super-phos-phate and basic stag, it was interesting to note that considerable quantities of nitrogenous manures were also in demand. During the off season — December, January and February—special low' quotations were offered by the fertiliser manufa-cturers, and the farmers did not hesitate to take advantage of the reduction and in many instances booked very substantial quantities over and above their immediate requirements. _ Owing to an exceptionally severe winter in Europe, during which 'canals and harbours were frozen over, the loading of basic slag was interfered with. In consequence, the carrying vessels were very late in reaching Auckland, •causing much inconvenience. African phosphate had also been in demand, and from reports received, was showing satisfactory results. The company’s garage in Barton Street 'had-an equipment for car service equal to anything In this country, and all renovations and repairs could be executed on the premises. The saddlery workshop had been thoroughly overhauled and was turning out work which was appreciated all over the North Island. Increase In Wool. The wool department show's a further satisfactory Increase, the total offering for the season amounting to 10,260 bales. Unfortunately a drop in the price of 3d per lb after the first sale in November reduced the gross value very considerably. _ At the second sale In February 5031 bales were catalogued, the largest quantity the company ever handled at one time, and the company’s new floor, which was commented on most favourably by buyers, was fully occupied. " Tills new floor, providing as it did the most up-to-date lighting and facilities for the economical handling of wool, would undoubtedly be a great asset to Hie company in the future. .

The quantity of wool rc-ciassed by the company was increasing every year—262l bales having been so dealt with last season. This work entailed considerable strain on I lie company’s expert at a busy time, but I lie results obtained showed how much it was appreciated by the buyers. The alteration in the date of the second Auckland wool sale to January 21 should result in a considerable increase in the quantity of wool from the King Country district for next season. The company’s annual wool canvass of North Auckland clients resulted in a further increase from that district. The Shipping Department.

Mr Hawkins said that in his last report lie had remarked on the increased meat and dairy produce shipments toAmerica. This trade had been well maintained throughout the year, especially butter to Canada, and from what lie could gather From forward .sales, this year’s figures should eclipse last year’s exports to that country. With regard to moat and butter exports to the United States of America, 'it was impossible to forecast how this trade would be affected owing to the proposed increased tariffs.

Shippers were no doubt gratified at the further reduction in freight rates of 5 per cent., which applied to ’refrigerated cargo as from September 1 last.

The activities of this department in Auckland had been increased and its scope enlarged in developing the tourist agency and hooking business. The company had been appointed provincial representatives for the Mount Cook Motor Company and Hermitage, Tongariro National Park, Aard Motor Services through out New Zealand, and Hie New Zealand Deep Sea Angling, Ltd., looked forward to this Department proving a profitable section of the business. Insurance Department. The insurance' department continued to show a very satisfactory return, although there was room for even more support than was already accorded. As cldef agents in this district for the New Zealand Insurance Co., Ltd., they keep abreast of what was required to protect clients against loss, and farmers should make a careful survey of their needs in this direction. lie felt certain that shareholders would he well satisfied if they allowed the company to handle this business for them. Land Department. Although the land department was of considerable service to the company in many ways, of late years it had* not helped much from an earning point of view. Mr Young having left the company, Mr W. 11. Ilume was offered and accepted the appointment in his place. The Financial Outlook. Speaking of the financial outlook, Mr Hawkins said interest rates in the Dominion were about half per cent, lower than in Australia, and as 'the Government had not been able to borrow at a rate which could reduce interest charges there appears to lie no prospect of any reduction for some lime to come. On the other hand he had it on good authority, that they were not likely to be increased, notwithstanding the fact that any reduction in selling value of the primary products 'meant less money available for investment and development. Banks and other lending institutions. including 'the Government, were for Hie most part well supplied with funds. Mortgages on freehold improved farm lands are readily obtainable at 6 per cent, but lenders at that figure required a substantial margin of security. The heavy burden of local taxation was more generality allowed for in making valuations. Traders on the whole were not securing an adequate return on their capital, due mainly to the excessive competition which prevailed in most lines of business. The financial position of the majority of farmers 10-day was sound—the exceptions tiring those who had paid extravagant prices for llieir land. “If we can rely on increased production t'o minimise the reduction in value of our exports, there is no occasion for any anxiety,” declared the speaker.