FARMERS’ TRADING CO.

Hauraki Plains Gazette, Volume XXXIII, Issue 4476, 6 October 1922, Page 2

FARMERS’ TRADING CO.

MEETING OF SHAREHOLDERS. INAUGURATION OF NEW POLICY. STANDARDISATION OF STOCKS. NEW BASIS OF CO-OPERATION. A meeting of shareholders and customers of the local branch of the Farmers’ Union Trading Company, Liimted, was held on Wednesday evening. Mr G. A. Wilson was vote-1 to the chair, .and introduced tb those present Captain Colbeck, a director of the company, and Mr D. Robertson assistant general manager. Captain Colbeck, in addressing the meeting, outlined the new proposals, and said he hoped they would have had a larger meeting. He felt that all would agree that co-operation was sound, but it was of little use having co-operation on one side only. The Trading Company was started in the interests of farmers, and it would be their own fault if they did not get the full benefits of one of the finest trading concerns in New Zealand. He granted that mistakes had been made, but pl), these could easily be put right, He had investigated quite a number of complaints, and he was pleased to say that most came from misunderstandings, and very often the mistake was tiie customer's and not the company’s. However, misunderstandings would always occur, but could be righted if the parties were reasonable. He quoted a number of instances showing how easy it was to misjudge situations and pepple and how difficult it was to get down at the exact position. One case he dealt with, a complaint by a customer who was very bitter against the officials for not attending to his order. On investigation it was found that the order had been received right enough, but the customer had forgotten to sign it, and, considering tihe company is dealing with "hundreds of mail orders every day, it was impossible to know who had sent the order. Under the new service which they intended to put into . operation many annoyances would be entirely wiped out. They relt that if, under the new system, they could not sell at the same or less than other competitors they were not much use. There was one thing, that if there, was an overcharge the got it, back in bonus. A director had two distinct duties. He had first of all to consider tlhe people who found the capital, and, secondly, the buyer. If they were selling cheaply, they were not looking after tlhe former, and if dear, not considering the latter. There was a happy medium and a cure for all this, and he thought the cure would be found in the new policy measure in the proposal, to set up committees in each centre. These committees will actually run tlhe stores. They will have large powers, and practically be local, directors. Complaints will be dealt with on the spot. If they cannot do it, then they will send it on to tlhe directors in Auckland. He k'new the farmers had been up against it, and the company w,as prepared to help tTiem_on the recommendation of Che local, committees. ANOMALIES IN PRICES. This was a matter that would receive careful attention and with the new price-list would be wiped but. IMPROVEMENT OF BUSINESS. It would be the work of the committee to make suggestions for tlhe improvement of the business in each centre. The directors wanted suggestions. They wanted to make the store a real live institution. It’s you.' own, said the speaker, and try and encourage the spirit of trust in your own company. Realise it is your own company, and buy every pennyworth you want from your own company. We are going to give all the powers we possibly can to the committees. NEW CATALOGUE. They were publishing a new catalogue which would contain the bedrock cash price of every article sblfl by the company. If you want cash price it must be cash or payment by the 20th of the next month. A five per cent,- booking rate will be charged and given as discount if paid on the 20th. The directors found it was necessary to give credit, but not unlimited credit. By the new methods they .would increase the turnover, which, would mean cheaper goods. They could handle double the turnover and not increase the overhead charges. DISTRIBUTION OF PROFITS. Under the new system the profits would be distributed in the area they were made, and there was also going to be a substantial bonus to the store doing th j best business. CREDIT. There were customers who had got credit, and do not like <tp come to the shop and offer cash and were letting credit stand and paying cash to other stores. So far as these people were concerned, a number 2 account would be opened for the debt and a number 1 account for the cash purchases.. COMMITTEES’ WORK. As the capital invested in each district is supplied by the whole body of shareholders in the company, it is obvious that the Board of Directors elected by the whole body of shareholders could nob rightly delegate complete control to local committees, yet it is felt that by the interchange of remits, by advice on local matters tendered by the committees to the Board, affecting the welfare of the company* by collaboration, the interests of each district, and 1 of co-opera-tion generally, will be greatly advanced. Without entering into detail, there is a great deal of very important work that local committees can undertake in the supervision and efficient conduct of the company’s affairs in their districts, and it is obvious that the remits forwarded to the Auckland board and management will be of great value, spiel the speaker. VESTED INTERESTS Vested interest, he said, did not like co-operative companies, and before shareholders started to condemn their own show they should get to the bottom of the trouble and give credit to the directory and staff tor at least

an honest attempt to right things. THE PAST. Mr Di Robertson said that they had a lot of very definite proposals and that they were going to forget the past troublesome days. NEW SYSTEM. . He wcu'djike to see the new system given a good trial. They had been up against a most difficult proposition. The stocks had now been liquidated, and they now proposed, to go forward. STOCKS The catalogue was going to be the basis of stocks. Prices were going to be fixed in Auckland, and on to that there would be a slight increase only for local handling and shipping. There would be no competitive price between Paeroa and Auckland, and orders sent direct to Auckland would be credited to Paeroa. Customers would be able to demand the goods at catalogue prices. CO-OPERATION. There was no private interest in the business, said Mr. Robertson. It was a co-operative concern, and worked oil purely co-operative lines, and ;the store was the property of the shareholders. He wanted all to realise. that point and act up to the true principles of co-operation. STANDARDISATION OF STOCK. it had been found that they must have a standard stock in each place, and that stock kept up to date, and he showed how a system had been evolved to keep up stocks. HELP WANTED. They wanted the help of all shareholders and customers in the forward move the company was making, and it was liis firm belief that it must be crowned with success.. The service they intended to give was as complete as it was humanly possible to devise. ' QUESTIONS. Tn reply to a question Mr Robertson said that if any special line was advertised in Auckland the local store would be able to get it at the same price and customers could get it at the price advertised if the local store stocked the line. ' “Is there any difference in tlhe shares,” was asked. Mr Robertson : Yes. There is what is known as “preference” and also ordinary shares. Preference shareholders got all tlhe privileges but had no votes. * In reply to Mr Buchanan Mr Robertson said that a person could get , his goods at Auckland prices plus freight if he took delivery of them at the boat. If the goods came into the local store the percentage would have to be added to cover the cost of handling and book-keeping. Mr Stock asked if they could rely on goods being shipped by tlhe first boat. ' In dealing with this question Mr Robertson said that in this they were dealing with the human element. The company would, as in the past, make a sincere effort to despatch goods by the first boat. In a mixed order sometimes it was difficult to do, but for any single line he could see no reason for any delay If any delays occurred the customer slhould let the committee know at once, and see where the fault lay. The company was out to serve the shareholders and to give satisfaction. A complete service was what was aimed at, and an honest .attempt would be put forth io accomplish it. Explaining “those Friday Specials,” Mr Robertson said that Friday was the Farmers’ shopping day in Auckland, and if townspeople got benefits it could not be helped. In any case, they helped to swell the turnover, and that was what was aimed at. “We are going tp guarantee that the price in Paeroa is going to meet or beat all competitors in Paeroa,” concluded Mr Robertson, “and, further, that if within 10 days of your purchase you find out that you could have bought elsewhere cheaper, then a refund will be given.- liemember, it must be a genuine case. We've goc to fight our competitors with their own weapons.” COMMITTEE. The following committee was then elected, with power to add two more : Messrs Geo. A. Wilson, John Kennedy, Alfred Tatters.all, W. F. Johnstone, and Geo. Buchanan. Mr G. A. Wilson was elected convener of the first meeting. Catpain Colbeck congratulated the meeting on having selected such an excellent lot of men on the committee. “Now go to them with your troubles, don’t talk outside, and don’t, for Heaven’s sake, run your own company down,” he remarked. A hearty vo;‘.e of thanks was passed by acclamation to Catpain Colbeck and Mr Robertson., In proposing the vote Mr Buchanan congratulated them on the proposals put. forward. He felt that the store in Paeroa had not been the success that it was at first thought it would be. The new proposals, however, would make a tremendous difference.