THE ANNUAL MEETING.

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

THE ANNUAL MEETING.

INTERESTING SPEECHES. ' The.annual general meeting of the New Zealand, Farmers' Co-operative Association' of .Canterbury was.held, in the association's meeting rcom, Cashel Street, C'hrisfcliurcli', 'on Saturday, September 21. There were about. lot) snurehntdcrs: present,, and Mr. J.'A. I'annett, chairman.of directors,'presicled. - The annual,.report and balance-sheet, which had been circulated .amongst members, were placed before the meeting.' , ■CHAIRMAN'S ADDRESS, In moving-the adoption of the thirtyfirst annual .report and-balance-sheet, tne chairman said ho had again to congratulate shareholders on the excellent result, of the'past year's working. The business' continues to be buoyant, tho capital account has very mucn increased, and the list of members has rapidly grown, until the- total aggregates VMI ordinary and preference' shari adders. ; As you are' all aware, our general manager, Mr. E. W. Kelph, has been on a tour of America and the tinted Kingdom, an.d is now .in Australia, expecting to arrive in Christchureh. during next week; The object of his trip was twofold, viz.: to' recuperate his general health, which had Suffered somewhat by 100 close application to business, and to. study the general trad-; conditions existing. in ■ other -parts, also to-arrange a future programme that will give the association greater scope in dealing with the handling of general farm products, etc. In addition to tho suggested improved facilities for distribution, a numbsr of, valuable agencies have been secured, which should assist in augmenting the general comings of the business. From the information submitted to date . :vjr. Kelph, it certainly would indicate that his efforts will bo of very great benefit to the business,.as a whole, and-the. result'be'roflected in the future operations of the association. During bis absonce the business has been ably controlled by the assistant-manager,' Mr. A. W. Jamieson, supported "by the. most loyal and service of the general staff. Trade and Finance, The returns, embracing the whole of Hie, branches and departments, show a steady, increase, .each s;ction aiding iu making the year's operations a record. The volume of- trade put through the various stores departments shows an increase as' compared .with last year: oi i£slofi.' ■In addition'to this, the financial operations of the general Agricultural departments, of the business, namely, auction, land, grain, and seeds, manures, binder twine, etc., have exceeded all past The Aggregate turnover of all departments reached the largo sum of .£3,102,282, being an increase on the previous, year's figures of =£140,594. The finances of ■ the association.'..are undoubtedly on a very sound footing, and this is brought about to. a great extent by the wise policy of the directors in the introduction of..further capital in'keeping with, the rapid expansio"n. of the business. Our total paid-up .- capital now stands at, -.6308,332, which shows an-.in-crease for the-year of-.£69,110, of which ■£19,110.. was' received on' account...of. ordinary shares, u.nd ,£5.(|,000 on account-oi 10,000 preference shares. All .the. shares were ,taken)'. up rjapidly, which must bs very gratifying to all shareholders, showing the great, confidence-investors have in-the stability of our.association; -With the amount set-down intho report to: be placed. to this vfiirid, the srcecial reserve account wiU'thfu stand-at JiIOO.OOQ, being largo .percentage,, of. paid-up. capital.:

Accounts and Earnings. | . Profit and Loss Account.—The total outgoings for the year show an increase.on last year's figures, but the difference, is made up of various sums spread over general expenditure accounts In ratio to tho larger business. Profits.—Our gross earnings amount to £116,023 3s.Jd.,.as_azainsL.£yo,o93 (i.lsst year, a un n " as follows:—General, merchandise, .{.'30731 interest and commissions, etc., £4857. Earnings.— Tha increase in Hie general merchandise is consistent-with tho of'an-, siou of business, and our commission account is being steadily increased, largely duo to the popularity of the auction, wool, and land departments among tho 'aimers generally. In the/matter of interest, discounts, and exchanges, there is a substantial increase,-which is indicative of tho steady growth of our connection with, our farmer shareholders, with rt-.-pect to their current accounts. Altogether, tha'' earnings have been well maintained, and are commensurate with the iio/cased turnover. ' ' . ' Tho net profit for the year, including the amount carried over -from last vcar, is, £53,177 18s. 9d„ which tho directors recommend should be appropriated in.the planner set out in tho report accompanying the balance-sheet. Proprietary Lines. 'Fertilisers.—Our business in this department has been.very successful. The output is increasing to an extent that has compelled 'us to seek more commodious premises.:-, Arrangements have beenma.de for the erection of .roomy and up-to-date buildings,, furnished, with' the very best mixing. machine's-obtainable,'- so that while maintaining-tho very high quality and intrinsic, value of our mixtures, we hope to be able to sell them at even more reasonable prices/than in the past. "C-op." Binder Twine.—ln endeavouring to uphold the reputation of "Co;op.', twine,- we have 'arranged with the manufacturers for the importation of further improved machinery,, and we are quite confident .that the article wo shall hi turning out for. the .coming season will be of-the highest quality—being manufactured from the. very, liest fibre. The, retail price, will .be. kept, on a reasonable basis, and when the length per pound arid the high quality,<.f tho,.twine is taken into consideration,, it will compare more than iavourably.with, any other make'offering. Motor-cars.—The success that attended our efforts ■ at the: inauguration of this particular/..department has been, well maintained, and tho sales of the Overland, Hupmobile,. ; Siddeley-Deasy, and other moke's'.controlled,by.-.the association have, established ,"a record, in. the history of the. motor-car : business throughout the ■Dominion. .About'four years ago the first Overland.car was imported by a Christ-' church resident,',lt.-is still running,, and has not., given; any ■■mechanical trouble. Ihiscar can ba'inspected at anytime by prospective buyers'. - .Encouraging testimonials .have .-been.-received -from all! users ot cars,purchased froni the association', which■a'rp.vcry.appreciative, and go'a long way to substantiate, the. claims made- by the manufacturers. Wo have been in-a premier position, owing to the satisfactory deliveries made.bv our principals, to cope with the''enormous' trade'controlled by us; An,y recommendations made to the, manufacturers by us have beea-closelv adhered to,,and we. have -thus- been able to still.further.improvo our returns. > Our sales.'fpr'the. period', we' havo been' in tha business are unprecedented in the Dominion.- , ■ ■ •'. . . ■ Machinery Agency.—'Arrangements have been completed for the control of a full complement of'farmers' requisites, and a splendid' showroom lias been secured. Being so : closely ollied with- the farmers of 'Canterbury,: wo feel- if our duty . to provide 4his want, and we anticipate" thai this venture will'meat.with the same success a.- other departments established from time to time.; '■' There were other agencies to which he could refer,- but he would briefly, alludenow to the. 'departments .controlling farmers' products, which play a most'important part in ' connection with . the business. , -' ■ Wool and Grain, One of the most pleasing features of the year's operations- is the. increase . in. the returns of tho auction department, which suggests the, growing popularity ; o" this section of thq business'. We.look for.still further improvement, -and now that theadvantages to. bo gained by selling through the agency of the association are being more fully recognised, increased business is assured. Besides.the jervices of an efficient staff of officers, there is the handsome rebate on commission charges, and, in addition, there is the. influence exerted by .the institution, which .has been instrumental in the past.in keeping down charges- to a very low rate, and comparing favourably with those'obtaining in most other parts of the Dominion. The teason which, has. passed hc:.> been a" most favourable one- for stock, both in regard to feed and prices. On fh« whole, the year has bein a fairly profitable one*,

and present indications certainly lead us to hopo that the year into which wo have just entered may at least be equally as good. Tho prospects for feed, values of sheep, mutton, and ; wool, are distinctly encouraging.

The Season's Prospects. Tho prospects for the- wool season are encouraging. Thoclip should bo a good one, as the result ot the abundance oi food throughout last summer, the winter also having been'a good one. for stock. The f.ivourublo weather we are experiencing up to tho present, and tho abundant rain* of the past season, should help to ensure a good supply of feed through the-coming summer. As regards wool prices, tho hardening of values-at the recent sales- on the other side of the world, combined with tho healthy state of trade generally in all the chief. woolconsuming. countries, should give a reasonable assurance that very satisfactory prices, will bo-obtained' throughout the coming season'; • r The prospects, for our meat trade are very favourable especially for our fat. lambs, the .-prices '.for which continue to be excellent in spite of .the largo production hare and elsewhere. The same remarks apply to our dairy produce, and to all appearances^there should be a fair demand lor our cereals. Perhaps the greatest difficulty confronting the farming community at the present time is the shortago of labour'in our rural districts', and it is devoutly to be hoped- that some means will shortly be devised to meet this difficulty. We behwe the. progress of the country is being seriously retarded from this cause, the production 'of grain is being considerably lessened, and many farms are hot being .as well tilled as they would be but for this difficulty. From a farmer's, point of view, 'the past season has probably beeu one of the best experienced for several years, and the cereal crop has been a. big factor in this success. . While our neighbours in Australia. |hnve experienced a drought, the "ill wind", has blown us much good iu .causing the Commonwealth to bs largo buyers-of j oats'and potatoes, and this demand.has caused much higher prices to rule for these commodities than would otherwise have, been the.case. In conclusion, he would like, to take this opportunity to mention that whilst it is not possible in a brief report to deal with everything that has. appeared on tha balance-sheet, any shareholder who may require information can alwavs obtain same on application to the general manager or his assistant, who,' as thev were all aware, arc only too pleased to meet . clients and discuss matters ci mutual interest. He was sure everyone present must 'feel encouraged with the returns as set out to-day, and' ho would venture to say that the affairs of the association are cf such a character as to bo placed among the foremost companies doing business throughout the Dominion.

OTHER SPEAKERS. Mr. James Stevenson expressed pleasure in seconding ihe motion for adoption of the report, and .balance-sheet, and congratulated the. directorate upon the excellent balance-sheet presented. He gathered from tho report that the .whole of the departments at Christchurch and branches showed uri .increase in business, the result constituting a record. Ho felt it a privilege to be a shareholder of the association,., which had been so successful, dud attained large proportion's, and exerted an.intliiehcp-over business generally in the most favourable nature, more particularly {hose .interests which affected'-the farm-ing-community ol .Canterbury. As a former and/shareholder, be 'appreciated the opportunity of having a voice : in the affairs, of tho.association,' the staff 'and .directorate on ■ their efforts. The' success that/had attended, tho efforts of the directorate was-sufficient.evidence of their services, and further, the decisio'n to improve the manufacture of manures, and binder twine, also provision for an up-to-date implement showroom, shows' that the administration is progressive. In doing this the hoard was endeavouring to conserve. the policy of the association in a.very efficient manner on behalf of the shareholders. The remarks with respect to tho lamb. trade-,were, pleasing, .anil ■would meet with the entire approval of all farmers. The splendid report and bal-ance-sheet just presented was strong evidence of good work on tho part of tho directorate, management; and staff. It was to be hoped that the farmers will recognise the influence of the association, and support it in every possible manner, because by so doing his interest will be more .conserved through the medium ol his. own- institution than it would bo possible to expect from other sources, Being a shareholder for a great number of years, he had learned to value the. institution as iKiivg a potent factor' in influencing matters, affecting the farming community. In seconding the motion, lie wished the association the some measure of success.in the future as had attended! past efforts..

Mr. John O'Halloran rose to support the adoption of the report-and balancesheet,, and 1 said that yesterday he had got a practical demonstration of the' interest the' management took in. tho affairs''of the association, -because, upon' asking, a great number of questions, satisfactory replies were given to all. Recsntly. ho' had made a study of tho whole organisation, and tound that the original intentions ol the promoters had been carefully and rigidly adhered to. Moreover,.- 'these efforts have been attended with,undoubted success, and farmers will be studying their own interests by supporting such'a fine institution. In 1881 the.association was inaugurated by.the lafe Mr; Charles Ensor and six others. In 1862 tho directorate comprised 20 members and an exec"utive.committee of : s, elected to assist thd. management in controlling the affairs .'of'; tho association. The first issue of shares' numbered 50,000, on tho basis of £5 each,' wil;h ; £2 per share paid up; and'no premium, a limitation of 200 shares to one holder. During the first year the. company, had'many obstacles to overcome, anil were opposed, by many. This has continued, ft was found necessary • to call in a little extra capital, and 778 shares were fully paid up, thus assisting those in authority .to.keo? the 'concern above'water'.- Ot the end of .1882 the number of shareholders was £00, the profit for the first yew amou-itiiig to £170—dividend, nil; The-total volume of> trado aggregated £15,000. It is interesting to compare these figures-with those appearing on- the balance-sheet to-day. To-dny the authorised capital is £1,000,000. Another feature,'of the business .is tho number of persons, employed; Whilst there were only-abo.ut 12 employees in 1881, the number to : day is something. over 600. The shareholders, now number, some-7000, there is premium oh sharcs:of 10s/, the roservo fund, has. grown from' £1200 in 1888 -to £100,000 to-day, and. there is. a dividend of/81 per,cent.,oil ordinary paid-up shores. Tho issue of preference shares-was authortwo, years-.ago.'on tin interest;basis of 6-per cent; per annum. These, which were-nominally £5 each',- havo all been taken-.up, and now .bear a-.premium- of 55.-cach.,. The branches have grownj until th.e'ro.ai'o six located,in-.the principal districts in ■ and. around. North Canterbury, in v -'addition-- to which ■ there '• are " three depots.. The bonus of 5-per cent, on- purchases, is' a 'feature.-.of the .balance-sheet which must 'commend itself to .everyone, being the highest, bonus declared' since the., inauguration of the concern. There is.-also the. rebate, commission ,oh .stock sold., through- the .association, which may bo-often lost, sight of by the farmers. This amounts to 30-percent, onthe commissions charged, equal to 6s'/ in the pound., ■There aw other figures which I could refer to, but the foregoing, I am smy. will suffice to demonstrate beyond doubt the exceptional growth of, the business, and indicates the appieciation of the farming .community ~in having thei' own institution to enable them to purchase their goods at a reasonable prie<?, and to sell thoir produce and stock in the best markets, with the minimum charge for distribution. In the, presence of such a s.afo expansion of'. bii'-iiicss, and . tl.o continued, solicitations of (h.i growing centres in North, Canterbury, to hare-(he conveniences of. the association'extended to them, li'wide sphere ot'-ii-efuluos's has been bpeiU'd to the association, giving it ample opportunity of demonstrating ils utility. The safe writing-down.of- plant, machinery,, and stock, tliu ample writingoil' of renevils and repairs Iran revenue, the. steadily increasing reserve fund, arid the,uncalled capital of 7000 shareholders' —tho majority of whom are operating daily through the association—creating a rapid turnover, offer such security ,to investors as caii'scarcely be,'found out-iJe your association. The fact that the turnover in 1831, as mentioned aliovp, .was £10,000. and has increased until, it is'no'w ovfr .£-3,000,000, is sufficient, evidence'<f the increasing popularity of the as-ccia, tion. It 'is, to be hoped, the endeavour 'at all tunes of tho uiarxascmeat will'ba.

to buy.in the very b2=t markets, and retail, as heretofore,. at reasonable rates. As a shareholder and customer, he supported the adoption of the balance-sheet presented by tho chairman, and felt that tho directors and staff had tarried the association through the year with unprecedented success, and that the future offers still further expansion. lie would like to take the liberty of suggesting that the directors should take into consideration tho question of appointing to the directorate members representing every district in which there was a branch or depot, so that from time to time tho director thus appointed can keep in touch with the agent, and assist materially in popularising the institution, 110 hoped the chairman would draw the attention of the board to his'suggestion, the adoption of which would be in the best interests of the association. '

Mr. A. L. Joseph offered his congratulations on the splendid show of the business of the association as outlined in the bal-ance-sheet, and drew attention to the increased rate of interest on capital as compared with that obtained by tho early promoters of the association who pioneered the concern. He fully supported the association in the matter of discontinuance of. bonus on salaries, and the initiation of another scheme, which would promote a mu?h more efficient service, as the indiscriminate payment of bonuses did not urge the staff to. better service. For a number of years he had attended the meetings, urging the payment of, 5 per cent, bouus on purchases, and naturally he was extremely pleased to we that this had now been accomplished, and he looked forward to the time when, perhaps, it would bo even greater. He made certain suggestions'for the conduct of the business of the association, some of which the chairman explained were already in operation. After further discussion, tho chairman then put the motion for adoption of the report and balance-sheet, which was carried unanimously. ELECTION OF DIRECTORS.. Mr. Sowden and other shareholders referred to the election of directors, and Mr. Stone moved as a recommendation to the'directors that, instead of a distinction being, made in the election paper between the original members offering themselves for re-election, and other nominations, the names be set out in -alphabetical order. Mr. W. H. .Johnston stated that he thought the present system was the best, and. as to the suggestion that, it was a close co-ope -ation, "he faile] to see-this, seeing, that the .directors were elected ly the shareholders personally, and not by proxy, as had been suggested, t-nder the proposed system, if-the affairs of. the association .were satisfactorily managed, it. was important that. the" shareholders should know who -those members were, and, on, the other hand, if dissatisfied with the affairs, by having- the new nominations stated they were in a position to ii/troduce fresh blood.. He certainly' thought that the present system was the better. . .The, motion, on being put meeting, was declared carried •• on a show ■ f hands. ■ ■ . . . The, chairman having rea-! the- scrutineers', report, declared the seven retiring directors duly elected, viz.: Messrs R. Blunden, P. H.Brittain, J. Cameron, W. Dunlop, J. Henderson, F. -Hubbard, and W. M'Millan. ' Messrs. W. Jameson and G. W, Hiilme wore re-elected auditors for the ensuing term. Vote of thanks was passed to the chairman, directors, and staff, after which tho chairman stated, that, this concluded the' business of. the meeting.