FARMERS' CO-OPERATIVE ASSOCIATION

Ashburton Guardian, Volume VII, Issue 1964, 8 October 1888, Page 2

FARMERS' CO-OPERATIVE ASSOCIATION

A. meeting to consider thfadviaableness of forming a Farmera' Co-operative As3otlon was he'd at the Arcade Ciambets on •Saturday afternoon. There waa a good attendance, about fifty gentlemen being present. air Q. W. Leadley was voted to the

Tho'Ohairm&n In introdnoing the business to be brought before tbe meetlrg aaid thit he had not txpooti'd f o be called upon to preside that day, hcvlng an'loipatrid tl ab Mr Straohan, who took a keen interest m tbls matter, wou'.d have been present and taken the helm, They were all aw -ire of the object for whioh the mcc • ing had baen called. It had been tb ught that the tima had arrived wheu the farmers of this dtstrlot should combine for the transaction of the'r own business and for the purchase of saoh things m tbey required. A He might say tbat the preliminary steps had already beau ttken ; meetings had bean held, and to put them In possession of the faYs ha would ank Mr Moss, the Secretary pro Urn to road the minutes of those meetings.

Me Mobs read the minutes alluded to by the Ohalrmin, and aaid that In compliance with the r^qneat of the preliminary meeting, a sub Committee had drawn up some proposals for submission on the present occasion It was considered that the time had arrived when the farmers ahonld derive some benefit from tb.3ir own business. The eub-Oommlttse had drawn np proposals a d it had been deolded to teiit the present meeting on the advlsablenesß of forming an institution on co-operative prinoiples. The form enoh inatitation should take waa left entirely to the farmers themselves to deoide. He might state that it had been insinuated that he was looking for » position for bimßelf m connection with the institution, but this he dented. His interest m this Society was based upon muoh broader grounds than tha'. He had obildren growing up m this country, and he knew that their faiore welfare depended npon that'«f tbe land they lived In, and the ancoess of tbe country was dependent upon the farmer and miner, who took wealth oat of tb« earth, the only source of wealth. For some titnpait he bad bean urging upon many of his farming friends the beuefits they would derive from the formation of an Association of this kind, and he hoped that now the inlatory steps had been taken, something would oome of it. For the information {of tbe meeting he ha obtained from Ohristohuroh a copy, show* ing the reßults of co-operation there which they .vould admit had been more than satisfactory. Without having Been the figures he ouuld not have believed that auoh good results oould have been attained. TheOaristoburoh Association started with a nominal capital of £250,000, to give them an opportunity of increasing it when they so desired. The amount of sabBorlbed capital was £52 500, and that paid up £21.842 . Th y had obtained property, iv which to carry on their business, at a cost of £8396. They had advanced on goods for their constituents £31,722, had debts owing to them amounting to £4874, had stock valued at £9694, and machinery, furniture eta The transactions for tbe year Involved a sum of £55,855. The profit and lose account Bhowed a gross profit of £7601, equal to 33 per cent on the paid up capital. The. total net profit was £4546, out of whloh they paid a 7 pt>r cent dividend to shareholders and a 3 per cent bonus, equal to a dividend of 10 per oaat, and a 3 per cent bonus to the purchasers of goods, and on commissions. They placed £1000 to tbe reserve fund and had a good balance to carry forward. That waa the result of co-operation and the farmers here had the chance of enjoying a like experience. The Association would not run counter to the Ohrla'.ohurchone, th»y could work together, exchange ooenmisrona and ao-firth, and be a source of pront to eaon other, auil he tiaa flu auub: that at tie end of the year the Ashburton Society would show as good results m proportion as Ohrlsloburoh. He might sty tbat he bad not started this Idea ; It orgloated with the farmers tbemselvea, some of whom sought him, and asked him to do certain clerical work and assist them get 6 'ally. As he had a thorough acquaintance with i he floating of companies and the getting In working order of associations like this be had willingly consented. Some resolutions for submission to tbe meeting had been drawn up, and with the Chairman's permission he would read them.

The. Chairman thought that before putting the resolutions the meeting ahoald make Itself fully At ease and dlaouis the mitter thoroughly For himaelf the first Intimatlou he hsd of thla movement waa on Tuasday la't Some suggested the formation of an independent Society here. That would be a very go<<d thing if they were aaffideutly etroog to EUpport it; he was afraid, however, that they were not sufficiently strong, aid that there were nut a sufficient number of farmerß m an independent position to make tbe Society a sucoobs.- He would auggest thct if they did form a combination It be m connection with the Ohrlstchuroh Aaaociatlon. By so doing they would get all tbe benefit of what Ohrlstohurchhid done. He waa afraid that if they started t by themaelveo they would come to grief, for interested partita would combine and put forth all their powers to stamp the thing oat of exlsfcenoe. If they affil ated with Ohrtstohurch they would have nothing to fear m tbia dlreotion because the latter Asaoolatlon had attained to a strong position and was the master of tha situation. It had repreBentatives at Home, and oonld buy to the beat advantage In the Home market and do everything on the cheapest basis. An objection one gentleman bad raised eg*lnsc the Ohrlstohuroh Society was that it was worked too muoh m the interest of capitalists. Any one conld purchase 200 Bhares m the Ohrietohuroh Society, and the moneyed man forested, his thousand m it for the sake of the good rate of interest he at tared. He thought this was objeotlonable, as the purpose of the Soolety ahonld not be to pay large dividends, but to reduce the ooßt of goods to the lowest possible rates, compatible with safety. That, he thought was the real principle of cooperation. As they had heard, the Ohrlstchurch Soolety had paid a dividend equal to 10 per cent and a bonus of 3 per cent on purchases made. He thought it would have been better If they had reduced the dividend to 5 per cent and made a corresponding reduction m the price of' gooda. This was one Objection to afßlUting with Ohrlstohuroh, but on the other band they would get the advantage of that Society's strong position. He would like the meeting to discuss this matter fully, but before resuming his seat would read the first of the resolutions that had been drawn up. It was as follows :•—•' That a farmers' Aeaooiatlon, on co-operative principle?, be- formed In Ashbarton." It would be seen that the wording of this resolution was auoh that the meeting could decide either to form an independent Association here, or to co-operate with Ohriatchuroh.

After a brief discussion Mr Jas, Heron moved the resolatlon which hud been read by the Chairman, Mr K. Mela tyre seconded. Mr I. Sargent asked whether In case it was deolded to affiliate with Ohristcharch, the Ohrlatohnrrh Aaioclatloa wonld take them oves. The Chairman said that at present there were no eharei In the Ohrlatchnroh Association on tho market. Some time ago 5000 ehatei were Issued and applied for more than twice over, although they were liuted it « premium pi ft, Be

though^, however, that If a Committee were appointed to wait on the directors with a strong requisition for a re-issne-of shares the Association wnnd give it favorable consideration. His Idea was i that if they joined with Ohrlstohuroh they onuld get some gaotleman m Aahburtun to consent to aot as receiving agent Their dhtanoa from 0 ristohuroh prevented them c joying to the foil ex ent the benefit of the Bvstsm, but if they had so oh a depot, and ray a d. z n farmers required cortain articles they would be seat for to Ohristohu.c'i and come up here to the depot by rail for lest than half what they wonid otherwise have to pay for a single parogl, and they could remove them from the depot at their convenience.

The motion was then pui to the meeting and carried without a dissenting voice.

Mr Rule Slid that the Ohrlatchnrch Association had on several occasions bean aßked to f >rm branches m the country— at Oiertaey, Ashbnrton and Ranglora— and bad on each occasion declined. Ha understood that it had been oootamplated to form an association here and join with Obcistohnroh m sending orders Home, so that the one agent m London would fulfil them, In the way ha now did for the Ohrlstohuroh and Tlraaru Societies. As to the proposal regarding a receiving agent he felt sure it would mt work. People would not think it was a Farmers' Association at all, but a sort of pawnshop of the Ohrlstcharoh Company, If they started a company of their own, and if they did not build premises fov them* selves, no doubt t*ey would find a merchant who would be willing to sell ont to them. He did not mean a man m a large way of Dullness, but one with a small Btc«k m his shop who would not require muoh money to buy him out. He did not think the Ohrlatohureh Association would Isane any more shares.

The Chairman eald that there was a good deal In what Mr Rule had said, bnt he would ask the meeting to remember that when the Chrlstohuroh Association was asked to establish a branch m Aahburton it was, as it were, m its childhood. It had not then attained to its present position and power, and was not sure of its footing. He thought that if the Direotors were approaohed now they might take the matter into consideration. He did not wish to foroe his views down the throats of the meeting. It might be aald that being a member of the Obrlstchuroh Association he objected to there being one here, but he Bssured.them that euoh was not the case.

Mr Rule was also a member of the Ohrlstohuroh Association, and he thought that that body would be proud to have them as an independent Association, join* ing with them m shipping Home and ont. In regard to what the Chairman bad said, two gentlemen had tried the Association a short time ago, and they had declined to establish any branches. Mr Straohin had also been trying hard lately to get them to alter their decision, but had not been suooesßful.

Mr Moss said that Mr Streohan h»d statea a* the forme; meeting that he had tried to Indnoe the Christ church Association to start * branoh here, but ao far he bad been unsuccessful, the Association net ■eelng their way to open here yet. Mr Crisp, who was preßeut, was here asked to give his views on the matter before the meeting. He stated that he had been engaged and instructed to represent a gentleman, who was absent, at the meeting. He certainly thought the scheme was feasible, and if the farmers stuck together success was bound to follow. A farmet'a business was unlike any other of whioh he knew. A farmer, no matter how godd he might be as a farmer, had not the same control over his bualn6Bß that men In other lines of life had, When a bad harvest came the farmere Buffered all the los 3 ; and when his cop returned a profit some one else took a blgaUoaa£fchtt.tpEQfiL__Jf farmni*. .«» -t.o men they would alter this, and combine to secura the 'profit from their owu business. If the farmers subscribed enough shares the Association could ha floated and ha a aucoess The whole thing doDended upon the farmers tnemselves taking up enough Bhares. There was one question whioh he would like to put to the Chairnun, and it was one whioh he had put at the previous meeting. It wad : Supposing the Ohristohurch Association did start a branch here, how much would Jt benefit the farmers m this distrlot f The curse of New Zealand was paying Interest on borrowed capital. The shareholders m any concern must be paid their dividends no matter who suffered. If the Ohriatchurch Association started here, to Christohurch capital would go tho share of the dividends earned m this district. If the farmers here started their own Society with their own capital the dividends would remain m the place. The Chairman was pleased to hear Mr Crisp's views. He agreed with that gentleman's ideas ; but the whole question was contained m the word " if." If the farmers were strong enough — A gentleman : They are. Mr Leadley : I hope so. At this stage a letter from Mr Straehan was read. In it Mr Strachan apologised for his absence, and expressed sympathy with the -movement. He favored amalgamation with Christchurch if the latter agreed to start a branch at once m Ashburton, or at any rate within three months; but if Christchurch did not agree to thi course hs thought tht> Jccal Association should start on their own account. He pointed out that to make the affair a success those taking part would require to be men of fearless and independent character. He was attending a meeting of directors of the Christchuroh- Association that day, and he might get some particulars to lay before a future meeting at Ashburton

The Chairman asked fV%n expression of opinion as to whether they should amalgamate with ChriatcUurch or not.

Mr Lowe asked what capital would be required, if they started on their .own account.

The Chairman said that it depended on the business they carried on. If they went m for groceries, drapery, etc., they would require a large capital. Mr Lowe wanted to know the amount of capital required to carry on a similar business to that of the Christchnroh Association.

The Chairman thought that £2000 or £3000 wou!d be sufficient to start with

Mr Oriap would like an anewer to his question as to how it would affeot the farmers here if the Chrietohurch Aaaociatiou started a branch m A shburton.

The Chairman said that the shareholder* m the county would get their dividends. Mr Crisp said that the general body of farmers who did not hold shares would get no benefit. It would be jußt like an ordinary company starting a branch here. Mr Lill said that the Ohristohnroh Association would have started a branch here some yeara ago if they oould have sold sufficient shares, and he thought that If a good strongoompany were now gotup, they would come. He thought that If an Independent Asßooiation were started here a combination of merchants would do their beßt to stamp it ont. As to tho profits going to Ohristohnroh, he did Dot gee that it mattered where they went as long aa the farmers had the chance of getting their share of them. He thought they would have strength If they affiliated with Ohriatehurch, but at the tame time he agreed with Mr Straohan that if the Ohrlatcharoh Association did not come here, m say three months, they should continue on their own account. No donbt they wonjd have the sympathy of the Ohr'lstohnroh Soolety, who would give them the result of their experience la order that the Ashburton Association might profit bf them. j Mr G, Parker e*p,resa«d htmeelf In f«YQ? of the oitftblliljweot qf fi^ißoh

connected with the Christohureh Asfoiia-* tinn. He held tw y shares In tbat Association, bat had never had »ny transactions w'tfi them, all tbat he bad heard from them being the receipt cf 30s dividend on bis shares. This he thought w a the evil of the Association as it kept

up the prloe of goods m order to pay big dividends. This state of affairs would ba remedied, however, if a number of farmers were to eaoh take up a small number of shares as they would then be able to pravent the moneyed men who wanted a large return for their aapltal, having all the say- . The Chairman said that the dividend of the Ohriatchuroh Association was fixed annually, and there w&s nothing to prevent the Directors reducing It if they Were of opinion that it was too big., , •>

Mr Pjrker said that the Oiris'oburoh Association were now In suoh a posltloti that the shareholders were thinking of starting their own Shipping Company. It would be an advantage to go m with suohaScolaty : ■ '■ } : ■_■ c ,<--

The Chairman said that the position of that Association was bo strong that it m now taking np tbo question of agrionU total Insurance and granting loam on mortgage, perhaps at 5 per oent. Hj) need hardly say that It would be an advantage to a good many farmers If, they ooold obtain money at sach a cheap rat«i Mr H. Onllen moved " that the Also* elation be confined to Ashbartoo and not. connected with Ohriatohuroh for the present. 1 ' .■-.-. -: ■_:.::■ -,.. i? Me Boyle seconded, Mr Lill moved as a i amendment' "That . an Association be formed, and amalgamated co the Ohristchuroh Association if the latter body are willing." Mr Shearer seconded the amendment* Mr Moss Slid that the general idea of the meeting seemed to be t'*t the Association's whole scope consisted i 1 the buying and selling of goods Now if tho Christchurch Association had depended on that, alone its profile would -not have been nearly so latge. The real profits came from the a?enoy business. The Christchurch Association only claimed to have made 10 per cent on goods, therefore the remaining 23 per cent came ont of the agency business. If Ohrlstobmoh oamo up here how would th>y get along m regard to the matter. The bulk of the profit would go to the balk cf the share* holders. They must not treat this question as one of philanthopy. but as one of business. The system of oo operation wbb philanthropic . m theory, but it was not from motives of philanthropy but of business that people joined m If they wanted to keep the whole of the profit arising from their own business they must have their own Association here, managed by their own directors He thought that if they stuck together they ooald eapily manage it. The Chairman askei the meeting not to do anything rash. His experience was that when anything was started here it was inaugurated with a great flourish of trumpets, and then people lost interest m it. He hoped tbat this wouli not result similarly. He would like to draw their attention to the dangers they would have to face If they formed an independent Asßoolation every storekeeper and merchant would combine to stamp it out. They would undersell it to kill it. That

was why he aßked them to pause If they went io with Ohrietohnroh. they would have the benefit of that Association'! strength and need fear no* . opposition. If they started an independent Society they would have to lay the foundation stone, and would have a hard struggle to go through . The Ohriatchuroh Assooialion, strong as they were, had had a hard battle to fight. When they started the clothing branch 'several of the clothing manufactories refused to sell goods tor them, but now a man could go to them and get a suit made to measure for £3, for whioh m Aehburton ho would have to pay £5 . "7* lr TW^U^i [-4M_Jthe_Chriatohuroh' " Association started witn — nrn — U w»— . holders, who held 140 shares. • Me Lill'n amendment was pot -to.;. the meeting, with the result that It Wafl otkcrled by 15 to 9. Mr Jameß Brown then moved a farther amendment, " Th«t the Chairman of thli meeting oommnnioate with the Soolety In OhrUtohurch as to whether they will establish a branch here." The Chairman might point ont to the Ohrlstohuroh Soolety that tbere a ohanoe of • large support being obtained from this district, ! and they might consent to a farther issuo of shares. In th« meantime the present meeting might be adjourned. ;

The Chairman thought it would be better if a Oommlttea were appointed to carry out the objoot referred to by Mr Brown.

Mr Brown was quite willing to adopt the Chairman's suggest lon. AH the pre-, vious advances made to the Association oame from private individuals, bnt th« present, coming from a large pablio meetlag, would have much more weight. The following gentlemen were there* upon appointed a Committee to wait upon' the Chriatohuroh Aaaoolation m the termi of Mr Brown's amendment :— The Chairman, and Meaara Bale, Straohan, and Oopeland. - ■— The meeting then adjourned.