N.Z. FARMERS' CO-OP. ASSOCIATION.

Dominion, Volume 6, Issue 1862, 23 September 1913, Page 5

N.Z. FARMERS' CO-OP. ASSOCIATION.

THIRTY-SECOND ANNUAL MEETING,

PROFIT, £56.321.

A SUCCESSFUL YEAR'S OPERATIONS,

The annual meeting; of the New Zealand Farmers' Co-operative Association was held on Saturday, Mr. J. A. Panjiott presiding over a large attendance of shareholders.

ANNUAL REPORT. The annual report and statement of accounts presented by the directors were as follow:—"During the year 243 allotments of ordinary 'shares were made, representing 2300 shares, upon a basis of £2 paid up, and at a premium of 10s. each share. Tlio profit and loss account shows that the net profitß for tho twelve months amount to £56,321 6s. 3d., to which' has to bo added the sum of £3956 Is, 7d. brought forward from last year, making a total to be 'dealt with of £60,277 6s. lOd. , The directors; propose to allocate this amount as follows: To pay six per cent dividend on tho preference share capital; to pay a dividend and bonus equal to eight and one-half per cent, on tho ordinary paid-up capital; to pay a bonus of five per oent on shareholders' purchases of merchandise during the year (sundry net items' excepted); to refund thirty per cent on sundry commissions earneel (nit business and wool excepted); to carry £10,000 to the' reeerve fund, which will then stand at £111,164 10s.; to write ten per cent, off machinery and plant; to make a contribution up to £1000 towards the employ-' ees' superannuation scheme, and to carry the balance forward. "Since our last annual meeting we touch regret having to reoord the death of Mr. James Henderson, who contributed very valuable service as a director of'the association for.many years. "The directors retiring by rotation tire: Messrs. J. Allan, the Hon. D. Buddo, C. J. Harper, J. Lambie, R. 'Morrish,-J. A. Pann'ett, and J. Ronnie, all of whom are eligible for re-election (without notice, and offer themselves accordingly. During the year Messrs. James Carmichael (through removal from the district), and S. S. Chapman (owing to' ill-health), resigned their jeats on the board, and Messrs. James Stevenson, of Flaxton, and James Cow, sf Ashburton, were appointed to the directorate to fill the vacancies thus Caused. Mr. David M'Millan. of Hororata, was also appointed a director in the place of the late Mr. James Henderson.' ' • THE BALANCE SHEET. . The balance-sheet was as follows: — Capital Account.—Authorised share capital, 170,000 ordinary shares of £6 feach, £850,000; 30,000 preference shares of £o each, £160,000; total, £1,000,000.

Capital subscribed 80,000 preference Bharos of £5 each, £160,000 , 80,833 ordinary shares at £2 eac/h paid £160,66u, plus calls paid in advance on 778 Shares, £2334: total capital paid £313,000. Uncalled on 79,656 ordinary shares at £3 each, £233,665; unallotted 89,667 ordinary shares at £5 each, £448,335; total, . capital unallotted, £448,335 ; graad total, £1,000,000. Capital and Liabilities.—Capital callted. up £310,666, plus calls paid in "ad,Vance £2334; reserve fund—per last 6tatementi, £90,777 ~; 1 0s., .added: from profits for year ending, July 31, 1912, £9222 10s.; . premium on shares '.allotted last year £1154 10s.; fixed de- ( posits for. twelve months £92,308 14s. lOd.; fixed deposits from two to five yean, £150,658 12s. Bd. London: office, * association drafts against produce snipped, etc., £4974 ss. 2d.; amount at credit of shareholders current accounts; £216,125 12s. Id.; sundry creditors, £27,242 0s 6d.; accrued interest, on fixed deposits, £2549 14s. 6d.; unclaimed dividends £588 95.; 'profit and loss account balance. £60,277 6s. 10d.; total, £968,879 ss. 7d. Assets.—Freehold property and warehouse fixtures, £132,011 2s. 2d.; leasehold, £618 18s. 7d.: machinery and' plant, £20,728 10s. Id.; private telephones; £155; stock of goods in stores. £233,902 6s. lOd.; advances against fitock, grain, etc., and pioduce shipped, £351,010 12s. 2d.; investments — Farmers' Insurance Association, 350 shares fully paid-up, at £5 each, £1750; Mount Somers Saleyards Co., 20 £1 Bhares—l2s. 6d. per share paid, £12 10s.; Pigeon Bay Dairy Factory, Ltd., 20 £1 shares—l2s. 6d. each paid, £12 10s; Cheviot Saleyards Co., 20 £1 shares £20; sundry debtors—general merchandise accounts, £105,414 17s. 3d.; sun'dry dectors stook and_ grain accounts, £70,038 14s. 5d.; unexpired licenses :and insurances, £1103 14s. 4d.; bills receivable), £24,274. 19s. 10d.; cash at Bank of New Zealand—on deposit at rihort call, and in hands of cashiers at Christchurch and branches, £27,825 9s. lid. Total £968,879 ss. 7d. Profit and Loss Account —Dr.; Salaries and wages, £50,976 12s. lOd.; postages, stamps, ( and> telegrams, £2065 3s. 6d.; stationery, printing, and advertising, £2315 os. 10a.; incidental expenses, £1075 16s. Id.; rents, £399 19s. 2d.; rates, taxes, and lighting, £879 10s. 5d.; renewals and repairs, £903 6s. 6d.; travelling expenses and ngency fees, £1135 ss. 4d.; Insurance— stocks, and accident, £2168 Bs. 5d.; insurance of' employee's under the superannuation scheme £971 175., less contributed from last year's profits £730, £221 175.; Government taxes, £3301 lis. 4d.; auctioneers licenses and expenses, £1686 14s. Id. ; directors' fees and expenses, £392 18s. 2d.; executive committees' fees, £500; .auditors' feos and expenses, £217 10s. Bd.; subscriptions, £345 Bs. 7d'.; law costs, £140 •'Os. 9d.; bad.debts, £1471 ss. Bd.; balance of profit and lass account at Julv • 31,1912, £3956 Is. 7d.; profit for twelve months ending July 31, 1913. £56,321 ss. 3d.; total, £130,479 17s. Profit and Loss Account.—Dr.; Profit and loss account of July 31, 1912, £43,177 18s. 9d.; less dividends and bonus paid during twelve months entiling July 31, 1913, £37,565 Os. 3d. added to reserve fund £9222 10s., written off machinery and plant £1684 6s. lid., contributed to superannuation fund £750, £49,221 17s. 2d. (£3956 Is. 7d.); ■profit for twelve months ending July 31, 1913, on merchandise £81,657 Is. 2d., on commission, etc., £26,864 19s. 6d., on interest, discount, and exchange £16,989 13s. 10d., on grain and wool store earnings £983 lis. lid., on trans- • .fer fees £28 9s. £126,523 15s. 5d.); to'tal, £130,479 17s. CHAIRMAN'S ADDRESS. In moving the adoption of ' the Thirty-second Annual Report and Balance Sheet, I should like to congratulate Shareholders on the very oxccllent results of-the pa'at year's operations, also upon the satisfactory position of'the Association as. shown by the balance sheet. Every department of 'the business is in a very active state, and the concern as a whole was never In a more prosperous condition than it is at present, a fact which I think' yon will agree is amply borne out by the statement of accounts with which vou have been presented. General Merchandise—The records of our numerous retail departments at Ohristokireh and Branches closed off with an ngregato volume of_ trade for the twelve months amounting to £506,539, as against £481,100 for the previous year, an incrcaso«of £25,439. Tho Agricultural Departments, such as Anotion, Land, Grain and Seeds, Fertilisers, Binder Twine, Jute Goods, lAgricultural Machinery, and Motors Jiavo aim all oxneeded previous records, ]

and contributed largely to a general increase. Tho total' turnover of all departments reached tho sum of £3,272,330, being an increase on tho year of £170,048. It is impossible for mo in a short address to go very exhaustively into tho working of tho many ramifications which go to make up our large business, but no doubt a word or two concerning some of tho principal items in the balanco sheet will be of interest to you.

Capital Account.—During tho year, as you will note in tho report, 2309 Ordinary 1 Shares were taken up by 243 persons, thus adding £4618 to tho paid-up capital, and £6927 to the Uncalled Capital Account. Sales of our Ordinary Shares to now members aro taking place all the year round, and whilst it is, of course, a very excellent thing to add during the twelve mouths 243 now clients to our large family of sliareiholdersi it will, I am sure, bo obvious to those who study the position that tho amount of ortlinary capital subscribed by new members is quite inadequate to meet tho additional financial requirements which theiT own trading creates. Tho past year is not an exception ini this respect; indeed, the amount of capital subscribed by ordinary shareholders for many years past has been totally out of proportion to thejr business requirements, and you will doubtless appreoiate more fully what this realty means when I explain that although at the close of our year there were 6523 ordinary shareholders, with an aggregate holding of 80,333 shares, which, at £2 each paid-up, represented £160,666, averaging £24 12s. 2d. eaoh shareholder, there were included in tho above 5013 persons whose joint holdings only numbered 12,755 shares, representing paid-up capital to the extent of only £25,510, averaging £5 Is.'9d. eacb. The majority of the larger allotments wero made during tho earlier oareer of the Association. You will see, therefore, that tho Directors have hod no alternative but to supply the needful by other means, which tney have dona ,by the creation of Preference Shares, and, bb some of our Ordinary Shareholders have suggested that their interests were prejudiced by the preference stook, I should like to say that a close examination of the position proves that suggestion, to be quite contrary to fact. The introduction of £150,000 of fresh Capital, a few years ago through our first issue of preference shares very considerably improved the earning power of the business, and it strengthened the position of the Ordinary Shareholders rather than otherwise, Six years, ago the Reserve Fund was £35,148, equal to 49.32 per cent, on the .paid-up ordinary capital at that time. To-day if the Board's recommendations are agreed to, the amount to credit of Reserve Account will stand at £111,154, equal to 69.18 per cent, on the ordinary capital, a rise of 20 per oent. in six years. Additional capital not only, gave a greater stability to the business, but it also enabled us to extend 'and open up profitable departments, and to afford, assistance to a,larger number of farmers, tho results of which I think , reflect themselves very satisfactorily' in_the increased earnings of the Commission and Financial Departments, and with regard to tho second issiue of Preference Shares reoently created, I have every confidence that these share 9 will prove equally helpful and satisfactory. / Deposits.—£242,967. , This account shows a fairly substantial increase upon last year's figures, the bulk of tho liability, as you will note, is fixed for two to five years, and the whole is carefully spread with proportionate maturing dotes. Amount at • Credit of Shareholders' Current Accounts.—This . item, £210,125, also shows an increase as compared with last year. The amount is mado up by a very largo number of accounts operating with, tho Association at'.Christdhiirch. and .the. several Branches. Viewed from a creditor's standpoint, the deposits and tho amount at credit of Current Accounts, with the exception of a few thousand pounds, represent the Association's total liabilities, which., are practically all held by our own Shareholders. > Comparing these liabilities with the same sets of figures ten years ago, I find that in 1903 they amounted to ft triflo over two and a half times the paid-up, capital, whereas at present the same liabilities are less than ono and, a half times, and further, as evidence of the strong position in which the Association stand with respect to its creditors, our total liabilities amount to £493,858, with, assets (including uncalled capital) amounting to £1,207,544, showing a surplus after providing 20s. in the £ of £713,686, or, in other words, in tho case of a winding up there would be sufficient to meet all liabilities twice over and then have a, surplus ,of £220,000 for contingencies, and I do not think theTe are many businesses in the Dominion that can present a better showing.

Assets. —Properties £132,011._ The increase in this item during the* year is accountcd for by. extensions to our Cool Stores and Bacon Factory, additions to the Ashburton Branch premises, and the purchase of a, property in Bedford Row and Lichfield Street. None of our properties have been written up since they~ were acquired (some thirty years ago). I think, therefore, considering the rise which has taken place, especially in city properties, that the amount set down under this head is wejl within the true value. N Machinery and Plant.—£2o,72B. The consistent writing down of 10 per cent, each year has moro than .covered any depreciation, consequently the actual' value is a good deal in excess of the book figures. • Tho expenditure during tho year has been chiefly for extra plant in the Cool Stores, Seed Cleaning Machinery, Motor Delivery Vans, etc. Stocks of Merchandise.—£233,9o2. The increase in our stocks as compared with the amount held last year is mainjy represented by several parcels of grain and produce awaiting shipment, the bulk of which, however, has sinco been dealt with. The increase is also accounted J f or by some shipments of merchandise arriving just before (the balance period, instead of later according to arrangement. • Beyond this, tho total value of what I might term our permanent or departmental general stocks' is quite in proportion to the trading requirements of tho many departments concerned. I might add that as usual the whole of the stocks were inspected and valued by competent exports; whose reports are quite satisfactory. Liberal writing down was done whenever considered necessary, and I am assured that the values as shewn are if anything on the conservative side.

Sundry Advances.—This large item represents a very great number of advances to farmers against tho security of their lands, stock and produce. It also includes tho debit balance of all those operating upon tho Association's finances through their current accounts. Considerable care is exercised in watch' ing this most important part of tho business. Tho. policy of tho Management is to confine our advances_ as nearly ns possible to amounts within the realisable values of farmors' negotiable assets, i.e., live and dead stock, produce, etc., and all advances aro repayable upon demand. The increase ■■|1 thje amount 'under this headfng during the year is partly due to now accounts, and partly to a heavier drawing upon us by a number of our old accounts, which no doubt is ono of the results of the stringent financial conditions that have obtained for some months past; Sundry Debtors. —General Merchandise Departments £105,414, and Auction and Grain £70,000. Considering the present proportions of the business these itoms aro really not large. The merchandise accounts, for instance, — £105,414 —this sum only represents about nine weeks' trade, including the month of July, which of course must necessarily be nearlv nil outstanding when wo close our books on tho 31st julv. Bills Receivable.—£24,274. about £7.000 less than last year. These are

chiefly mode up of farmers' short dated acceptances, all perfectly good and negotiable. We have no bills under discount.

Profit and Loss Account.—Turning to this Account you will liavo noted no doubt that our gross profit for tho twelve months amounted to £126,523, as against £116,023 last year, an increase of £10,500 ; to which I am glad to say every section of tho business has contributed its quota.

The working expenses amount to £70,202 against £65,014 for tho previous year, an increase of £5,188. leaving a substantial net profit) of £56,321, which with £3,956 carried forward gives a total of £60,277 to be dealt with-, and which your Board recommond should be allocated as selj out in their report accompanying the bal-ance-sheet.

Agricultural Departments.—No doubt a word or two concerning tho movements of some of our Agricultural Departments will bo of peculiar interest toiyour fanning connection. Artificial Manures.—Considering the disabilities under which this department has been worked in the past in not having a proper warehouso or mixing plant of our own, tho progress mado has been remarkably satisfactory, but with the completion of our commodious premises at Belfast, equipped with thoroughly up-to-date mixing machinery, we shall hope to perform a very real and valuable service to our farmers in supplying them with fertilizers best suited to their lands, as well as affording them scientific information and guidance through the medium of an expert department which I hope to see shortly established.

Co-op. Binder • Twine.—This twine continues to grow in popularity with farmers. Some furthor improved machinery has been recently added to the plant, which will ensure a high-class article being maintained. Only the best of fibre is used in the manufacture of "Co-op. Twine," the price of which, will as usual bo fixed at a minimum basis.

Bacon Factory.—This department has proved a great boon to pig breeders and small farmers.' The curing floors have been enlarged to admit of a larger output,' and our cool storage space has been more than'doubled. Part of the additional space is roquired for our own rapidly growing produce business, and we hope to bo able to afford some storage space to our Christchurch butchers, thus supplying this scction of the trading community with a long felt want. Grain ajid Produco. —Our grain department and grain stores liavo been kept actively engaged throughout tho year, and they have dealt with a large volume of stuff. From the grower's point of view, tho past season has been a very favourable ono. The area under cereals \yas below the average, but tho deficiency in area was more than coun-ter-balanced by good yields, and, generally speaking, very satisfactory prices. With a reduced acreage it was generally expected that values of both wheat and oats would rule fairly high, but with a big crop of wheat in Australia, and flour quoted at low rates, our local wheat market has exhibited little or no fluctuation; and with regard to •oats, the exceptionally fine winter experienced has prejudicially affected the consumption or oats, chaff and other dry feed stuffs, which, added to a decided absence of export orders, has kept the market in a somewhat lifeless condition, and the prices obtained earlier in tho season have hardly been maintained.

Potatoes. —This produce has been very disappointing to growers and speculators. From early roports from Australia good business was looked for with that market. Unfortunately, howover, these expectations were not realised, with the result that a fairly large surplus now remains in tho Dominion, with anything but a bright prospect. Clovers.—Yield and quality have been good, and the prices paid to' growers should have left them a satisfactory profit.' Grass Seed and Cocksfoot—Good average yields and moderate prices have ruled throughout the season. The past winter being so exceptionally favourable to" farm work, the new crops were got in under the best of conditions, and the country, generally speaking, is looking romarkably well. If we aro therefore favoured with ordinary climatic conditions, tho outlook is most encouraging. As an old Canterbury gram grower, it is a matter of regret to me to note a very decided tendency on the part of many of our farmers to restrict their grain-growing operations. I am, of course, aware that the scarcity of reliable labour is a very real trouble to tho agriculturists, still, if the production of the staff of life is going to steadily decline, it must only bo a question of a few years when wo shall be more or less dependent upon Australia for a measure of our flour —a contingency which, in my opihion, would be a national disaster, as it would seriously affect railway revenues, our milling industry and the agricultural implement trade, besides which it would divert a lot of casual labour from the country districts and thus intensify the trouble which farmers are now. suffering from. Agricultural Machinery . and Other Agencies.—The creation last year of a separate and special department (for agricultural, implements and general farm machinery has been much appreciated by shareholders, who have given the department a veTy solid support, a fact'which is vory gratifying to your directors.

Tho department lays itself out to supply any description of tool or machine that farmers may require. Motor Department. —A very substantial and satisfactory business continues to bo done in this department with an absolute minimum of risk to the Association. These agencies are conducted, as I think I have previously explained, upon an indent basis, cars being delivered to the several selling agents in exchange for the cash or tho equivalent "thereof.

I take pleasure in again complimenting shareiiolders upon the excellent results of the past year's operations of our auction departments. When- dealing with this subject twelve months ago, I forecasCeil a» good and profitable year, and I am glad that tho hopes I then ventured to hold out have been fully realised; and as far as one can judge, there is every, indication that the coming season will be equally profitable to nil concerned.

The past season for stock was a good one, and a high level of prices for all classes was well maintained.

During tho year some substantial shipments- of sheep were made from the North Island and dealt with hero without seriously affecting local values.

I have no hesitation in saying that the past season has been an exceptionally favourable one from tho point of view of tho grower of lamb and mutton for export. Prices and :ompetition wero good, and though freezing operations wero checked for some time by a senseless strike of slaughtermen, tho result was all in the grower's favour. Tho manner in which the strike was dealt with is familiar to you all, and I am sure I express your feelings when I say that the freezing companies acted in a fair and straightforward mannor and dealt with it very efficiently, and wo tender thorn our thanks for their action. Our Canterbury lamb especially had made a trade for itself, and I sco iio reason why we should not anticipate' equal prices and domand for many years. We have a first-rate article, and tho consuming public in the Old World appreciate it. Tho attempts which have beon, and aro still being made, to introduce frozen meat on tho Continent of Europe havo met with varying success, but on I he whole some progress has been made, especially in Germany and Switzerland. In regard to France, our High Comnv.ssioner, who, as you are doubtless awaro, acted as London agent for this Association for several years, writing recently, says:— "Nn Foreign Market for our Frozen

Meat.—l have given attention to the importation of New Zealand meat into foreign countries," says tho High Commissioner in his report to the Government, "but regret to say that indications of a payable trade aro not present. Taking France as an example, I found that, with duties and other expenses, if meat were worth 4Jd. in London, it would cost Bd. to BJd. by the time h roached Paris, and this, together with tho fact that wo aro handicapped by tariffs of almost Id. per, lb. in competing against the Argentine, would preclude any possibility of a paying trade."

Be that as it may, I am sure the Hon. T. Mackenzie will at all times use his knowledge and experience to assist in developing wider markets for our produce. Tho quantity of meat shipped to ports other than London, such as Cardiff or Bristol, Liverpool and Glasgow, is of material benefit in this direction, and the corporations and companies having control of space there seem alive to the necessity of extending their cold storage in those markets. Wool.—Our expectations with regard to this important produce were, I am glad to say, fully realised, and the effects of tho splendid prices obtained through the sales in tho various centres were felt by the whole community. The popularity and importance of our Dominion wool sales are increasing, alike with the growers and buyers. The steadily increasing numbers of buyers from practically every wool manufacturing centre of tho world is proof of this Tatter point, and I am sure the Now Zealand Wool Brokers' Association may be trusted to see that our sales are kept thoroughly up-to-date in every particular. Last season the increased offerings at the Christ-church wool sales amounted to botween 6000 and 7000 bales, and I think' we may confidently look for a further increase in our entries during the co.ming season. For somo time past the question of the '. United States tariff has been engaging the minds of those interested in the trade, and from recent developments it would seem that the matter is nearing a finality. What actual effect it will have on our markets at this •juncture is difficult to say, but on the whole I think it is bound to help us, although it will no doubt prejudice tho value of our lighter wools to a certain extent.

, Land Sales. —Notwithstanding the tightness of money, which is always a prejudicial factor in the land salo business, our land departments have been successful ill completing a great number of large and small sales, and I am advised that in every instanco all mortgage money requirements have been- readily obtained locally, a large proportion being contributed by our own shareholders.

Tho upward tendency of the valuo of the land has continued, though it received an, apparent check by reason of the financial tension which mado itself universally felt last year. I would like to impress upon you tho fact that possibly tile exceptionally high prices for wool and moat may not, from some extraneous and unlooked for cause, ho maintained, although we naturally hope the contrary. There seems to be no cloud on the horizon at presentj but it is well for us to be prepared for any such contingency, •

As a practical farmer, and speaking to practical men, I say unhesitatingly that the best safeguard we have for maintenance of land values is to uso all possible means to increase' the productiveness of our land. We must have more oxtensive farming, and bring to boar upon our operations all the energy, modern skill, thought and science at our command, a careful study of tho effect and propor use of artificial fertilisers, and again by a closer study than I fear many of our North Canterbury farmers mako'of the breeding of live stock. Take the dairying industry, for instance, and seo how many weedy cows there are mixed up with our herds about the district. In Taranaki and other dairying localities cow testing is iccognised as an essential part of the business, but in the North Canterbury district such work is sadly neglected. A poor milking cow generally consumes* as much feed, and entails as much work, as a good one, but there is a marked difference between tho value of the product of a good and bad cow; and the same applies equally to all other classes of stock. One other matter I would like to refer to, inasmuch as it has a very important bearing -upon the business of every producer in the Colony—that is, the question of tho carriage of our products to tho markets of the world. As about 90 per cent, of the business of the Colony comes directly from tho soil, the question of cheapness of carriage affects us, both as individuals and as a community. Hero within the colony for inter-transport wo have our Government Railways, but when once tho sea board has been reached we are at tho mercy of the oversea carriers. Unfortunately for us, there is little doubt that competition for carriage has virtually been stifled, and that wo aro entirely in the hands of a strong combination. lam not referring specially to the increase in freight which made itself felt during tho past season, because the expansion m tho world's trade had more than overtaken the transporting ability of tonnage, _ and freights rose to extreme rates in all trades for some tune, though in many trades there has been material reaction. Opportunity was taken to increase to what many of us consider an unreasonable extent, the _ rates of freight on our Wool, Grain, Tallow, Flax and Seed, and possibly, unless the matter is carefully watched, we shall find our freight rates on meat increased when the present contracts expire. Now, what I want to impress very forcibly upon you is tho fact, that so long as we aro dependent upon markets outside tho Colony it is tho producer who pays tho freights. Take wool, for instance,. Wo find tho rates •/ore increased by Jd. per lb. For grain in the slack season wo have hitherto expected tho oarrying companies to mako some reasonable concession, but this year, instead of" any reduction, we find that rates were advanced to 355. per ton. This meant an advance on rates which formerly obtained of about 15s. per ton, and assuming that our wheat yields averago 30 bushels per acre, amounts to a tax of sd. per bushel, and in tho same degree applies to beans and peas. I think the time has arrived when a suggestion of the meeting .of combined Agricultural and Pastoral Associations held some two years ago should be carried into practical effect. This was that the various meat freezing conipanies in each provincial district should, before renewing their freight contracts, tako the various Farmers' Associations, Farmers' Unions, and A. and P. Societies into their confidence, and work and act in conjunction with them. Inasmuch as the meat contracts to a very great degree would dominate tho freight position, it is surely only reasonable that the producers, having to pay the oost of putting their meat on tho markets of the world, should have some representation and voico in the fixing of freight contracts which vitally affect them. Speaking on behalf of this Association, wo shall gladly join in and assist in any such measures, as tho material prosperity of our members is bound up therein. Meantime, although freight rates on most of tho world's oversea trades have receded considerably from the highwater mark roached, yet so far there has been no indication in New Zealand that a corresponding reduction will be made. -

I do not want to labour this point unduly, but amidst all our political wranglnms it is surely not too much to ask our legislators to give ail important matters-*&f this nature their consideration also, as it has a most important bearing on the tax-paying community. In conclusion, I should like to say that tho staff superannuation and Provident scheme, which wo initiated two years ago, is working very satisfactorily.

Sinco tho inception of the scheme the Association has contributed £1784 to the fund on account of death, sickness and nccidont, and during the same period 52 employees have been paid £396 for sick pay. Tho total sum contributed to tho fund by tho stall! has amounted to £2425, from which £293 has been paid to resigning members, leaving a balance in tho hands of the trustees on account of the staff of £2132.

1 take this opportunity also of expressing on behalf of myself and my colleagues our thanks to the staff for their services throughout the year, which have so materially assisted in bringing about such satisfactory results. I now have pleasure in formally moving tho adoption of tho report and balanco sheet.

Mr. John O'Halloran seconded 'the chairman's motion for tho adoption of the report and balance-sheet, and addressed tho meeting as followsl have pleasuro in seconding the motion for the adoption of the report and bal-ance-sheet. I have listened with • a groat deal of interest to all that tho chairman has told us, and I am sure that all thoso who really have the welfare of tho business at heart are glad, to know that the organisation is in such a sound and flourishing condition. Co-operation is a principle which lias always appealed to me. I have watched its procress, and have had a band in its developments in ono form or another for many years past, and as an old North Canterbury settler I am proud to see this association occupying such a prominent position in the commercial department of this affairs; and ono cannot help pondering sometimes over the wonderful possibilities which lie before these co-operative associations. ■ This concern affords ample proof of what individual 00-operatiou can do, and the amalgamation of the late North Canterbury Association with this business a few years ago also shows us how greater success, can be achieved by tho judicious joining of forces. I cannot say that I was a very enthusiastic advocate of, the scheme at tho time, but I have since been convinced that tho move was a good one, and in the interests of the shareholders, as tho following figures, which I liavo extracted from my old balancesheets, show:— On July 31, 1907 (the year immediately prior to tho amalgamation) the North Canterbury Co-operative had a paid-up capital of £40,500, and a reservo fund of £13,500, equal to a premium of 6s. Bd. On the same date this association had a capital paid up amounting to £71,262, and a reserve fund of £40,148, equal to 7s. 3d. premium. To-day tho balance-sheet of the combined businesses shows a reserve fund of £111,154, equal to a premium of 13s. lOd. in tho pound on tho paidup ordinary capital. It is therefore very evident that the members of both associations have largely benefited from a capital security point of view; but the most important phase of tho position, to m,y mind, is that by joining those two businesses together tho trading interests of tho country shareholders were improved the effects of a cheapening of general supplies, which was made possible by a larger buying power. I am awaro also that the advantages of a greater capital account wero made availablo to many of our farmers in the North Canterbury district to their very distinct advancement; and if any further evidence is necessary as to the wisdom of the amalgamation of businesses of a kiniTred nature, I might mention that in July, 1907, tho joint net earnings of tho two businesses referred to totalled £35,343, whereas now—only six years later—they ijro £56,321; and again, in lSi)7, tho combined commission and interest earnings wero £23,552, as against £<40,854 to-day. . I liavo purposely alluded at some length to tho principlo of amalgamation as brought home to us in tho figures which I liavo quoted, because 1 believo that this only foreshadows other equally possible schemes of much greater magnitudo and of immediate importance to tho whole producing community; , , , The suggestion which our chairman makes for an increased attention, to the matter of wheat-growing is well and good, but before wo, as producers, can give duo effect to it, gome of the present difficulties must 'bo removed, the most prominent of which is tho matter of the prohibitory transit rates to which he has so ably directed our attention.

A shareholder asked for some information regarding tho distribution of bonuses and the enforcement of penalties for late payment of accounts, which was replied to by the manager and chairman. The same speaker said the only othor matter ho wished to refer to was. tho fact that he thought tho directors were underpaid, and ha want-, ed to knbw what tho £500 on the bal-ance-sheet for executive committee's fees was. Ho also referred to the overcrowding of some of the departments.

Mr. Ralph caid a scheme had been suggested that the old Kaiapoi building should be brought into use, which should relievo the congestion referred to. I

Mr. Atkinson said that- he thought it was not the duty of a co-operative conoeru only to pay big dividends and bonuses, but to supply a good articlo ,at the lowest possible price. Ho congratulated tho association on its work, and pleaded for true co-operation—all the shareholders working together for the common good. Mr. O'Halloran wanted to know. if the shareholders were under any liability towards the staff superannuation fund. In the case.of a sovore epidemic there might be an extraordinary call upon tho fund; would tho shareholders be liable?

Mr. Ralph explained tho working of the scheme; tho contribution from the staff was practically a compulsory savings bank. The association's contribution to tho fund was £1000 per annum, and in view of. this, three wealthy insurance companies had indemnified tho association from any possibility such as Mr. O'Halloran nad suggested. 1 . ' The motion for the adoption of tho roport and balance-shoot was then "put and carried almost unanimously.

ELECTION OF DIRECTORS. There being no further nominations, the following retiring directors were declared elected: —Messrs. J. Allan, Hon. D. Buddo, C. J. I-Tarpor, J. Lamhie, R. Morrish, J. H. I'arnett, and J. Rennie. It was decided to elect three auditors instead of two as before, and Messrs. AY. Jameson, J. H. Str.fcger, and AY. H. Newburgh were unanimously elected. On the motion of Mr. A. H. Turnbull, seconded by Mr. Buchanan, a very hearty vote of thanks was passed to the directors and tho staff of the association, tho mover eulogising the staff's work in particular, which had been most loyal and enthusiastic.

An amateur soientist ot Jlorßantown, West Virginia, has arranged to illuminate 0110 of his rooms by fn-cfiies fed on secret chemical food of his own concoction that doubles thoii luminosity.