A FLOURISHING INSTITUTION.

Dominion, Volume 5, Issue 1554, 25 September 1912, Page 5

A FLOURISHING INSTITUTION.

N.Z. FARMERS' CO-OPERATIVE ASSOCIATION. l .•ANNUAL MEETING. A" SUCCESSFUL YEAR'S OPERATIONS'. The. balance-sheet. of the New Zealand Farmers' Co'-pperatiyo.Association of Canterbury, Ltd., for: the year, ended July 31 last,'is about, the best of such documents issued by the company during' its thirtyon'o years of. existence. The. profit and loss flccorffit shows that the net profit for the twelve mouths amounts to <£51,b09 6s. 7d., to which has ."to to added the sum, of ■£2168..'J85. • 2d., brought .'forward from last year, making a total of ,£53,177 18s. 9d. This is.to.be allocated as follows:— To pay 6 per cent, dividend on the preference share capital. To pay a dividend and bonus equal to -8.1 per cent, on the . ordinary paid-up To pay a bbmis of 5 per cent/on shareholders' purchases of-■merchandise during the year, (sundry net'-items', excepted). To refund 30 per cent, on sundry commissions earned (net business and wool excepted). .To carry .£9222 10s. ,to tho reserve fund, which will then stand at .£IOO,OOO. To write 10 per cent, oft' machinery and plant. To make a contribution not exceeding .£730 towards tho fund necessary to keep the employees fully insured under the superannuation 6cheme, and to carry the balance forward. Tho paid capital, Hie reserve fund, and the' net profit for each year from 1908 Ehow.'as under.— Paid Reserve Net ' • capital. ' fund. . profit. Tear !£ _£ ' f* 1906"'...'.„•■ 0(i,0Gl •'■ 31,850 22,035 1907 71,202 35,130 27.031 1908 ....... 113,389 ' 57,237 20,759 1909 221,102 61,733 32,'532 1910' -227,721 00,999. 35.366 1911 239,272 ' 71,752 47,721 1912 308,3c2 90,777- 51,009 -By the additions proposed to be made this year, tho reserve fuud, will amount' to .£100,000.. It should be.added that besides the amount allocated out of profit the whole of tho premiums received on shares issued during the year is also.added to'the:.reserve fund. Besides .the capital /and reserve fund, the liabilities include fixed deposits _ i£200;391, free, deposits j ■£156,622, sundry ' J!18,794, and ' sundry- othe'r amounts. The assets iiislude,,freehold and leasehold property and ivaret|ouso fixtures '~C 120,905, machinery and piant,.£i6,Si3, stock of goods «£170,207 i goods in .transit. ,£6G6i-, advances against stock, grain, etc., .£302,866, investments .£1795, sundry debtors .£140,410, cash at bank ,£"'1,814, and two or three other ■mall iteins. "...

It .will be. seen from-•the above-.tabic that -the paid-up capital of the-Associa-tion has increased by .leaps andbimr/.s. This.' has bsen rendered necessary, by the expansion of business/and the pleasing feature is .that the Association ha,?, never, had any 'trouble in securing.all, the capital.'that has-been .required.! ' ' At, the annual meeting in 1806 the; directors recommended an issue, at an early date, of 4000 shares at a premium of ss. per sharo ,£1 called up. This issue ivas so favourably received that the directors increased the number of shares to SCOO, all of which were allotted. The paid-up capital was thereby increased from £GG,o(il to ..£71,262. In the. balance-susct.: issued an 1908.the.direotors-in-their--report «aidn^ n \ s $ he year m shares flav6 fce«n allotted at a premium -of ss. per share to 285 persons, 232 of .whom are new members. With ' a ' view: to"' placing all the shares of the Association upon a -uniform basis,, and at the same time to meet'a generally expressed ' desire of a large number of shareholders, • your directors call up £1 per share on the h.,<29 shares, upon which only £1 per share has been paid. With the exception of.the /,8 fully paid shares, the whole of I he subscribed capital of the Association will then be pant to the extent of £2 per !™/ C ' Tl 'r c , apilal of tl!e Association in 1908 amounted to £113,339. In 1907-1908 the amalgamation of tho Xorth CanteryS Stores' Company, Ltd., ot Kangiora, Hawardeu, and Oxford with the Association took.place, and the "O 000 new shares created were taken npbv'members of the Rangiora Association in the amalgamation schemed The j-ear 1907-1908 was a verv trviii" one for ,\ew Zealand. ' The nuancial.crisil Which occurred ;n tha .United States tv. wards the end of .1907 was then felt hi the Dominion, and the Association, with all other traders, felt the position. Whereas on July 31, 1907, the Association had a credit balance at the bank of £lsqß a year later this credit was converted ln to a.debit of £32,160 18s. 10il. J His gave a dear • indication that the Association.required additional capital to hold, its business and to further develop it. Consequently in 1908-9 there was created 30.000 preferenco shares of £5 each, 20,000 of. which were allotted to 420 ■persqns: m.addition, 536 ordinary shares £:. rain were issued' at ,i premium .of J0». each. In the 1903 balance-sheet' the paid-uo- ciar.'tal stood at £221,10" !)s 3d .of w/hich £95,093 9s. 3d.,reDrcsented' preference, share capital .and-the .balance ordinary shares. In the following year 336 ordinary £2 paid-up shares, were issued nt _10s premium, each, and the paid-up capital was brought up to £"27,7''1 10s In 1910-11 there-was, issued .5705 ordinary" ij .shares at'tho usual,premium of. 10=. per share, and as the number of ordinary 5-?i re3 ii aVi \ , . ,clbl ? !nr i -"" e '' harl shrunk to laJl, the directors obtained. authoritT to C J „? . a , further; 160,000 ordinary shares of-£a. each. .Burins: the past v'ear 9555 ordinary £2 shares were js=iH at •• preminn, cf 10,. „,.),, „„',, „ le can;bl brought, un- t0.£308,38' Besides the actual' paid-up capital the Association accepts deposits at-call;'and also hidds. amounts .at-'credit,'of shareholders current .account*.- Tn lnp'fi the deposits- amounted ■ to £98.142. and tho rtifrent. account Kn'on'-es to £93 .155 H ? In+' n /f f? * ""-Vl--glances-in tabul Wtetl form show as -under:—• -. "■'■'„ ~' Credit., Deposits. Balances. £ £ W 08.520 ■ no 046 ' -'WW ' .173.250 ' 72J01 , ]y 1.90.170. nn.sfin 1! " n .» 183.901 I<>.|<liW'' ■ Ifl H 208.W3 154 576 , W2 206,391 156:662 ■In the year.l9o9-10 tb« Aviation/made a,change with respect to. deposits, .for t-hese were fixed, soma for one year and soma for five years. The Jatto'r period Appears to nnd favour, for.in the three -cars the .fixed and free deposits compare ?s under:—' 1-year -S-voar Departs. . IVpor-its. £ £ ' .1910 ■ R7.!)«i •)-, .vn .1911 93.023 lisjliln 1912 87,933 118,153 Making jthe_ deposits for fixed-periods the Association is. free from worry, and its -finances. C! 1» be arranged in a ■ manner to suit the convenience of the. business. The services of the Asscciation to the community are many and. varied. It meets, every requirement of the farmer, I Mid with its unquestioned financial sfa-1 bjlity offer? a. guarantee that the b?st will be done for its. clientele. The usefulness of-tho Association and the growth of its business may be judged by- comparing the value- of the merchandise in store, and the. advances against stock, grain, etc., and produce shipped. The figures we as under:— Goods. Advances. £ £ 1906 101,931 93,958 1907 ' -120.686 .' 00.414 ■ 1908 .: 176.165 157,449 1909 157,394 219.504 1910 151.630 238.110 .1911 ;/ 173,761 285.156 - 1912 175,207. 302,506 ■ In judging of this Association one'has to bear in mind that it is a. co-operative concern, and earning big profits is not. jrithin its scope. It aims at the greatest

good for the greatest number, aad judging by results it. is succeeding uncommonly well.