FARMERS' CO-OPERATIVE ASSOCIATION.

Ashburton Guardian, Volume VII, Issue 1882, 2 July 1888, Page 2

FARMERS' CO-OPERATIVE ASSOCIATION.

• » Mr Ensor, who occupied the chair at tho seventh annual meeting of the New Zealand Farmers' Cooperative Assoolation, m moving the adoption of toe report and bdlanoe sheet said the balance for the year was £4546, A dividend of T pat oent was deolared with a bonni of 3 par cent on the called-ap capital ; 20 per oent was written off the maohinery and offloa furniture ; £1000 added to the reserve faud, and the balance otrrled forward. He went on to show how suooeskful the Association had been* He said : This, oar' seventh year, la remarkable m several ways, and I am oonvlnoed m the future it will be looked back upon as the la«t year of what may be termed the infanoy of the Association. The great growth which has taken place m oar business during the past year mast afford ample proof to shareholders that the Directors were cot only justified, bat were compelled to largely increase oar office and wharehouse accommodation, and I take this oppor* tunlty of congratulating shareholders on the handsome and convenient premises we now occupy. At the time wa inaugurated this Association seven years ago, prioes were high and farmers were apparently flourishing, bat to those who ooald lee behind the loenes it was patent that combinations and agencies were at work making it practically impossible for any bat the strongest of oar farmers inanoially to succeed, the weak were bound to go to the wall. Too many were living out of the producer, speculative trade was being driven m all directions, and the good marks had to pay for the bad. The immediate effect of farmers doing their own business through the Association was to bring down the level of prioes, m some Instances for many of their neaessariei from 20 to SO per oent and evea more, .Oar policy has never been to reduce < prices below a fair and reasonable level, and what we have aimed at has been to supply a good and dependable article at a fair price, and at the end of esoh year the profit* are at the disposition of the shareholders. For some years, aooordlng to our articles of association, the division of the profits after paying a dividend of T par oent on otpltal hid to be returned as a bonus to those who purchased oar goods, while those who risked their oipltal to supply the money to purohasa goods and to do the financial business were limited to the 7 per oeat Interest, and this Interest was not guaranteed, bat payable only if oar builness saaoeeded. As years went on your Oireo'ors found that as the basinets extended tin more involved we were getting, and daily becoming less able to compete agalnat capital m the race, oar shares with £2 paid ware scarcely saleable at half that amount, and the business was m a fair way to collapse at the firs! breath of adversity . In order to remedy thla unsatisfactory state of affairs your Directors advised that the farmers whs supplied the capital should be treated as equitably m the profits as those who formed the business. From the day tha shareholders sanctioned this adjustment we have steadily forged ahead on a sure and certain foundation ; oapital and basi* ness have Increased hand m hand. Oar role th» t no shareholder Is allowed to hold more than 200 shares will effaotaally prevent capital alone monopolising profits to the doteriment of those who do their business through us. What we aim at is that every shareholder should contribute share oapital somewhat m proportion to the business he does through the Assoola* tlon ; this will tend to prove co-operation m the truest seme of the word, and will not only prevent the slightest tinge of jealousy agaainst capital, but will also act as a safeguard and seourlfcy against bad debts. After commenting on the working of the Association, Mr Ensor said : Our. total working expenses have been £3055 on a business representing tales of merchandise of the value of £45,000, and prodqqa about £150,000. Last year I had oaoa,*ibh to refer to the item " bad debts ;" this >ear that item Is represented by £10, a foot which speaks volumes for the great care which has been exercised ia condaot-' ing the business referred to by our manager. lam pleased to see the agitation which is taking pUoe amongst oar dairy farmers, and htfpe that they will sucoeed m establishing dairy factories. In, suitable districts, anjf obtain the very best machinery for Improving the quality of batter and cheese. Your Dlreotora folly recognise the Importance of the movement, and will be prepared to give every legitimate assistance, financially and, otherwise, to farmers m smarting theqe factories. I would also like to explain that lpflal factories dealing through this Association would have no difftoulty m paying farmers mqnthly up to, say, twothirds of the value of the preanj delivered, They will be able to obtain advances on their manufactures and shipments without interest and without coirmlsslon; the only charge would be exohange. There Is no line m oar pcodaoe business which has so increased to the past two years as dairy produoa, and oar London agent writes that there is an unlimited field there, provided the quality is oven and reliable. I feel convinced that this Industry will, i& a very few years, assarae Important dimensions. 1 also wish to call your attention to a new industry which is arising m our midat, and which will be of very great importance. I allude to the production of plover seed. At the present tints farmers m New Zealand are paying annually for imported clovers and other farm seeds no less a sum than £66,500. Tawa" f Ms no" doubt that we have soil and olimato equal to aiy m the vtorld for the 'Bucoesssui carrying out of this industry, 'tf&Twe should Boon be exporters to the same amount thaf; we no\y import, thtis gfv.inj? fanners another string to their bo|^ Witfi this m view we nave requested our LonT don a?ent to send us out the mott improved machinery for dressing these seeds, In conclusion, let our farmers remain true to theraaelveß and their own interebta, and there is yot a great future before them m New Zealand. The very causes which are working and" continuing the agrioultur&l depression at Home are 1 traceable to 'steam and machinery bringing' far distant Colonie'B of tjie Empire into bompetiliqn. TJjese, causes must eventually "react m pur favor, and indfiip j an influx df oapital and labour, ensuring full occupation and profitable employment of our lands and renewed prosperity m the near future.