CO-OPERATIVE ASSOCIATION.

Gisborne Times, Volume XXV, Issue 2146, 31 July 1907, Page 2

CO-OPERATIVE ASSOCIATION.

HALF-YEARLY MEETING

The half-yearly meeting of the Poverty Bay Co-oporative Supply Association, Ltd., was held last evening in Townley’s Hall, there being about 50 shareholders present. Mr. AY. Seivwright was elected chairman. The following report of the halfyear’s work was submitted : “Your committee submit a statement of accounts for the half-year, which according to the audit shows a balance to credit of profit and loss account of £l3O 12s lOd; that the book debts (credit given) amount to £334 5s 4d, ajid that the assets are equal to the liabilities, although only the low value of £132 14s lOd is placed upon premises and goodwill, and the right of purchase of the freehold of the land is not reckoned on as value at all.

“It is apparent that this co-operat-ive venture —which, carried on under proper co-operative methods and influences, ought to have been a marked success —has not turned out very satisfactorily as yet. But there have been causes for such a result which your committee think it due to themselves and you to point out, namely: —l. Insufficient money captital, especitlly if credit was to be given. 2. Inefficient, careless or indifferent paid officers in the past, who without the consent or knowledge of your committee, (a) involved the Association in debt by overstocking goods of several kinds, which could nob be turned over quickly; (b) gave credit lo customers, and so tied up funds, disabling the Association from paying 'prompt' cash and obtaining full trade discounts ;■ (c) overvalued- stock-in-trade in 1905-6, and so brought out a favourable balance sheet, upon which the half-yearly meetings declared dividends and bonuses, which were not warranted by the real profits of the business. 3. Failure on the part of the shareholders to properly support the Association by giving it their custom. “It will be seen that tho liabilities of the Association amounted at 30th June to £726 4s 4d, but your committee are glad to be able to say that they have since that date been reduced further, and now (30th Julv) stand at about £669 13s 7d. How are these to be met in cash if the system of monthly credit is to be carried out? AA’hilo tlie assets are in the judgment of your committee much more than sufficient, if realised as a going concern, to meet all demands, including shareholders’ contributions to capital, yet that does not enable any committee in the conduct of the business of the Association to pay their way in cash. The Association cannot borrow or overdraw the bank account and therefore necessary funds can only be obtained by increase of share capital. “Your committee desires to remark that, notwithstanding, past difficulties from tho causes specified, your Association has done a useful and educational work in the community, particularly in the matter of regulating current prices to a largo extent, and further your committee believe that the shareholders will themselves regret very much if they cease to bo their own storekeepers. “You have to elect a Vice-Presi-dent in room of. Mr. AV. S. Oxenliam, and four committee men in room of Messrs. Morrison and Church and Messrs. Ackroyd and Leslie (appointed to fill tho vacancies caused by the resignation of Messrs. Sigley and Heed during term) who now retire, but are eligible for re-election, and also an auditor.

“Your committee desire to call your special attention to notices of motions for altering the rules—in respect to giving credit—to forfeiture of shares in arrear—and to unclaimed dividends, all of which have been duly posted up in the store in accordance with Rule 30.” The statement of accounts for the half-year show that £2304 9s Id was absorbed by purchases, and the sales totalled £2921 15s 2d. The gross profit on the trading account was £574 15s 2d, and tlio net profit £l3O 12s lOd. On the' motion of the chairman, seconded by Mr. Oxenham, the report- and balance-sheet were adopted. Mr. Oxenham, the retiring VicePresident, was re-elected unanimously. The following committee were also elected: Messrs. Akroyd, Leslie, and Morrison (re-elected) and Lowndes. Mr. Piesse was re-elected auditor.

After a great deal of' discussion it was decided to gradually educate the shareholders into the cash system. and a rule was formed that monthly credit only be allowed. A hearty vote of thanks to tho chairman terminated the meeting.