CO-OPERATIVE ASSOCIATION.

Lyttelton Times, Volume CXVII, Issue 17282, 25 September 1916, Page 10

CO-OPERATIVE ASSOCIATION.

ANNUAL .MEETING... „ Tho annual meeting of shareholders of tho New Zealand Farmers' Co-oper-ativo Association'of Canterbury. Ltd., was held on Saturday morning at tne association's offices. Mr J. A. Parinew, chairman of directors, presided over an attendance of over 100 shareholders. DIRECTORS' REPORT. ' Tho directors, in their thirty-fifth annual report, recorded with deep regret the recent death of Mr John Hennie, who was connected with the association almost from its inception, and for many, years was vice-chairman of the company. During tho year 414 allotments of ordinary shares had been made, representing 4170 shares, upon a basis of £2 paid up and at-a premium of 10s ear,h; Gißo A preference shares were also allotted at par to 105 applicants at £o each paid up.. The profit and less account showed that tho net profit for. tho twelve months amounted to £68.331) lis Id. to which had to bo added the sum of £2411 7s lid brought forward from lust year, making & total to. be. dealt with of £70,800 lUs. Tho directors proposed to allocate this amount as follows:—To pay o per cent interest on the preference share capital.: to pay a dividend and bonus equal to SJ per "cent on tho ordinary paid-up share capita!; to pay a bonus'-on the basis cf *5 »er cent on shareholders' purchases of merchandise during the 'year (sundry net items excepted) in terms of tho arrangement explained in the association's circular letter to shsreholders dated July 24, 1914: to refund 30 per cent on sundry commissions earned (net business and wool excepted); to cany £11.02.1 10s to the reserve fund, which will then stand at £145.000; to write 10 per cent depreciation oft the'■• machinery <and plant; and a further sum of £ISOO to provide for depreciation of motor vehicles; to contribute £IOOO to tho employees', superannuation fund, £ISOO, to.the, special fund to nrovidft for contingencies with respect to members of the staff at the war, and to carry lhc.bblan.ee' forward BALANCE-SHEET. Tho balance-sheet, under the ing of profit and.dosi account,-showed 1 a credit balance of £08,3.89 lis Id, which, together with £2lll '7s lldenrried forward from the. previous made a total escdit balance ci' £70,800 19s. CHAIRMAN'S ADDRESS; The chairman, in moving tho adoption of tho' report and balance-sheet, said:— It is a matter of great satisfaction to mo to bo hi a position to again meet shareholders on tho completion' of another remarkably successful year's operations, notwithstanding! the wax and a number of other serious disabilities under which some- sections of the business have worked, and I. heartily congratulate shareholders on,the spimdid position of the association, as evidenced by the balance-sheet and report, before moving tho adoption of which I will ask you to boar with me for a few moments while 1 review somo cf the principal' items and make a few remarks concerning. our mr.:or operations and interests." . The total volume of business dealt with throughout the year amounted to the colossal sum of £3,591,321, being an increase of £333,526 compared wi tn tho previous year. Tho increaeo is very largely contributed to by the "live stock and auction departments, which have had a highly' satisfactory year's business. General merchandise has also given its quota to tho increase. ' The total sales through our several retail departments, Christchurch and brancheo for the twelve months were £591,297', against £583,268, an increase of £23,029. The returns of the agricultural department, such as fertilisers, binder twine, jute goods, harvesting and other machinery and motor vehicles, were also quito satisfactory. ' Although the halanco-sheet is drawn up in very full detail, no doubt some further explanation of tho chief items will he of interest to you. CAPITAL ACCOUNT. During the year 4470 ordinary shares ■ were allotted, to 414 persons upon a basis of £2 paid up. thus adding I £8940 to the ordinary pe.id-up capital, and £13.410 to the uncalled capital reserve. There were also G 486" b preference shares of £5 each allotted to 105 persons, representing a further £32,425 added to tho working capital for the twelve- months. All premiums on shares sold were, as usual, added to tho reserve.fund. The total'subscribed capital, as you will note froriv the bal-ance-sheet; is' £701,1?85, of which £255,609 is uncalled. Of the authorised share capital there still remains unallotted 84,019 ordinary shares arid 25,584 preference shares, representing £548,015. When alluding to this important subject last year. -I pointed out how very disproportionate were the average holdings of our shares when compared with the heeds of the business. Tho allotments of ordinary shares made during the previous year averaged 3 1-3 shares eaoh member. .This year the average works out at a littlo ever ten shares each, which is decidedly better. There are, however, 4002 persons upon our registers holding only two shares each. The larger subscriptions, as I have stated on former occasions, were mostly taken up during the earlier years of the association. It must be obvious, therefore, to those who study tho position that since our ordinary shares have been applied for in such consistently small numbers, the directors have, had no alternative but to make tho necessary capital provision through tho medium of preforence sharcs and other rhean3. The manager, in his letter which accompanied the balance-sheet, has also referred to this subject, and I trust the appeal ho has made will meet a satisfactory response. The board would be glad if tho 4000 shareholders above referred to would substantially increase their respective holdings. The association has stood the test of tim?. A consistently good dividend has been paid, and the shares are being regularly appreciated in value by largo additions to reserve fund, which, if the present recommendations are agreed to, will stand at £145,000, which is equal to a premium of £1 13a 8d per sharo on tho ordinary shares issued to date, which, I think, fully justifies the 10s perraium which has been imposed for a number of years past. DEPOSITS. Shareholders' deposits with, the association amount to £346,868, an increase on the previous year of £47,684. • The great bulk of this liability is fixed for periods ranging from two to five yoars, and tbe whole is carefully spread with proportionate maturing dates. AMOUNT TO CREDIT OF SHAREHOLDERS' CURRENT ACCOUNTS, £307,802. This is made up cf a very large number of current accounts in operation with the association at head office and tho several branches. It is undoubtedly a very important section of cur business, representing tho source whence our commission, and interest ennings are derived. This, together with deposits, practically represents tho association's liabilities, the whole of which are with our own shareholders, which is a most satisfactory position. SUNDRY CREDITORS, £32,850. This represents current purchases of general merchandise during the month of July, chiefly within tho Dominion. All of this liability has since been paid for. The total liabilities, including shareholders' current aocounts, deposits, etc., on July 31, were £694,821, and

the assets,', including uncalled capital, amounted -to £1,601 j 845, which means that the .assets, were sufficient to pay the trading'liabilities-in'full and leave a balance of £907,024, which, I think, you will agree, is a very sound position. , •;

ASSETS-PROPERTIES, £159,0c0\ The additions to' this account during the' year, represent quite a number of new - properties and new works, which have been carried out during the year, viz., additional freehold property, Moorhouse Avenue, to provide for extension, of-our. wool stores and railway siding property; purchase of a building site at Blenheim; upon which it is proposed shortly to erect offices and general stores; extensions of our manure works at Belfast; now stables, garage arid installation of heating system at Ashburton branch; new store at'Rakaifti some-alterations to main store premises .at Rangiora; .installation of water heating' system; and a n'nmber of departmental alterations in Christchurch - premises. 1 should like to a*ain explain that all maintenance expenses with regard to our properties are, paid out of current earnings. Our property values have never been written up, although some .o thorn have been in the occupation ot the association for .many years. MACHINERY AND rrLANT-£24,453, AS AGAINST £25.783 LAST YEAR. Tho decrease in the. figures is due to tho consistent writing down of 10 per cent each vear, which is quite ample for our ordinary machinery and plant, but with regard to .our.motor, vehicles your directors have deemed it advisable to make special provision for tins part of .the plant, .the depreciation of which is a more serious matter. STOCKS OF MERCHANDISE" £296,349. This item show* en increase of £58.806 on;the amount.held last year. Tho increaso is wholly made up of general merchandise held at Christchurch and tho branches. • Owing to the difficulties in obtaining supplies and the shortage of. steamer space, w-e have taken tho precaution "whereror possiblo of securing extra quantity, with a view to guarding •shareholders against Undue inconvenience with respect to thoir siipnlies of every-day requirements. .Tho,whole of ; the stocks hare been carefully taken arid valued by competent experts,' whoso reports are highly satisfactory SUNDRY ADVANCES £4.93,094. This is tho association's chief asyet, and.the increase in the figures as compared with last, year is consistent with the growth of the business. The amount i~ made up of a very large number of advances to.farmers on tho security of their lands, stock and produce. It also ineludcs'dcbit balances of all those opei'ifing upon the association's finances through their current accounts. Every care is exercised in safoirnnrdhitT the association's interests in the working of this important branch of the bnrfnoss. All advances arc upon a "call" bts's, and the mhjofit'y of them are well within the values of the borrowers' movable assets, viz., stock, etc. SUNDRY DEBTORS. £ General merchandise or fhnreholders' monthly accounts . 146,325 Stock and grain and produce accounts . . ... 70,911 There is very .little difference «in the volume of these account* as compared with last year. These figures, especially the merchandise accounts, represent thousands of accounts, and when the proportions of our operations are cons:tlered, tho abrogate amount outstanding is hv no moans large. The.cash discount system which wns introduced pome two years aso has proved a thorough success, and is much appreciated and taken advantago of by many of our shareholders. BILLS RECEIVABLE £32.867. Farmers' acceptances to adjust accounts—all perfectly good and negotiable. We havo no bills under discount, neither were there any bills payable when we closed our accounts on July 31. CASH BALANCE?. This item needs no further explanation. I feel sure, however, that shareholders will appreciate the comfortablo position which this item indicates. PROFIT AND LOSS ACCOUNT. Tho total gross profits for the twelve mentha amount- to £158.223, against £137,982 for tbe previous year, an increase of £20,241, which. Fain sure is most gratifying to all concerned. On tho debit side the expanses, including had debts." amount to £87,423. leaving a net profit of £68,389, which with £2411 carried forward from last year gives a total of £70,688 to be dealt with, and which your board recommends . should he disposed of as set out in their report accompanying tho balancesheet. I should like to add with respect to the general expenses for tho year, compared with the previous period, that tho figures show an increase of £9473, which, however, in the main is medo up by additional taxation consequent upon the war, and' there Is every prospect that' the association will bo called upon during the current year to pay a still further'increased sum. AGRICULTURAL DEPARTMENTS. I am sure the majority of our shareholders will bf< interested to learn of the steady growth of what we regard as the Agricultural Departments of the business. Tho manager's circular letter supplies a good deal of data in this connection, of which I would recommend a careful perusal. ARTIFICIAL MANURES. The successful working of this department is undoubtedly of interest to farmers, and, although tho war has seriously interfered with tho supply and cost of basic slag, superphosphates, guano and all other fertilisers, it is satisfactory to know that the association has been able to meet all demands made upon this department, and tho full volume of the output throughout the year has also been maintained. When I addressed you last year, I referred to an effort which was then being made to utilise some of. our lime deposits. Experiments were made under the auspices of tho Agricultural Department, but tho results so far havo not been particularly encouraging. Personally, I do not think that limo can ever take the placo of tho fertilisers with which we are accustomed, such as superphosphates, guano, etc. which supply our soils with the required elements of plant food. Wo are, however, keeping in touch with the Government on the matter, and .if any workable scheme can bo arrived at, the. association will be only too glad to apolv itself in the matter to any reasonable extent. Very important developments are expected to take place after the war in tho matter of supplies to the farmers in this country of superphosphates and other high-class fertilisers, the prices of which as now paid .are undoubtedly too high. The change of ownership of several of the islands in the Pacific should bo of special interest to us. The Government has already recognised this, and very carefullv considered reports upon this important matter are now in progress. The absence of harbour facilities in tho Pacifio islands renders the work of shipping very difficult and costly, and dangerous to tho vossels. All fuel for power purposes has to be taken to tho islands, which, of course, largely adds to the cost of the product. A scheme has been suggested for tho importation to New.. Zealand of phosphate rock and the erection of crushing and grinding works at our principal porta, but against this, it is feared that the local labour costs would neutralise any saving which might be effected in the i first place. This association is, how- j ever, in possession of a lot of valuable

data on tho subject, and it is earnestly hoped that tho various farmers' cooperative associations and other kindred organistaions throughout the Dominion will act in concert through the proposed federation, in an attempt to secure to themselves regular supplies of these necessary fertilisers at a firsthand basic. Tho tiimo was never more opportune for a vigorous propaganda in this direction. "CO-OP." BINDER TWINE. Tho output of this proprietary article continues to increase, and any fluctuation in local consumption is more than counter-balanced by supplies to our co-operntive friends in Australia. BACON FACTORY AND COOL STORES. With a view to meeting the increased demands made upon us for cool storage space, tho management has recentmade satisfactory arrangements for the carrying on of our bacon-curing operations in other premises, thereby freeing a largo space which will soon bo available for cool storage. This department is invaluable to the association's own provision and dairy produce business. GRAIN AND PRODUCE. In reviewing the position last year, I did so with the experience of a warfare which then had extended over a year. Wo have now entered the third year of this titanic struggle, and tho position regarding Boil products exhibits one of the most powerful elements of overseas Britain. It must be realised by. even the most careless observer that,-had it not been for British colonk'S. and especially Canada, and Australia, Britam's naval power ar.d supremacy would have boon of little benefit in providing supplies, when it is remembered that European grain-produc-ing countries were either ice-bound or, as far as tho Black Sea and Russian ports are concerned, under the control of enemy Powers. Whatever may be the ultimata result of tho present war in its effect upon internal conditions or the economic position, wo may look back with pride upon the success of British colonisation, and realise the immense help it has afforded Great Britain during this great period of stress: but, however that may be, to us who havo been actirely engaged in produce, the position has not been fo imm.ed ntely beneficial as many writers and politicians have represented. S:> far as grain-growing is concerned, and especially wheat, the continuation over last season'of the drougat of tho preceding year detrimentally affected the yield per acre of Canterbury lands, wh.ch was much below the average; in fact, as you well know, many farmers failed to recoup themselves the cost of the seed. and. as a la:.t resource, some thousands cf acres -wctc "fed elf." Added to this, the amateurish attempts of our Government in handling and dealing with the questions of both importations and exportation.* of wheat, caused holders of this grain not only henry los:,. but created a feeling of distrust, which has had a wide-reach ng effect. I am satisfied in my own mind that, had expert opinion on the subject been sought, the result would have been wideiy different. It is perhaps not for me to express my ideas at thw stag.?, but I cannot help'saying that if the ]>::wcr..; that be had exhibited' bitter judgment and had the welfare of the community in view, tho maticr couid have been dealt with far more simply and effectually. Our wheat yield was very deficient per aero from the causes I have mentioned, and the produce, in my opinion, could and' should have been commandeered at a fixed price, as was done in Australia, and about 5s per bushel would have been a fair price, and enc which growers should at least havo obtained. This, however, was not done, and, loolcng ahead' with the muddling of the authorities in the past still fresh in cur minds, what inducement is there for farmers to grow wheat for next season? Apart' from all other questions, tbey are faced with the almost undoubted cxfcremo scarcity of suitable labour, and no schomo, in my opinion, would havo been r-omprehensive which did not provide for a guaranteed price for next season and covering at least an equal acreage of last season. I am not pessimistic, but unless greater consideration and' moro equitable treatment is accorded to wheatgrowers, I feel sure tho system of farming in Canterbury will tend more and more towards the reduction and possiblo elimination of wheat growing. This, I fori, would ultimately react very seriously upon the colony as a whole, and, as you know, othor parts, of this colony aro tinsuited for grain growing. With overseas shipping and freights utterly disorgini3cd, apart from all other reasons, it may prove either disastrous or at least extremely awkward if New Zealand has to rely upon other countries for its bread supply. I referred to this question very forcibly last" year in addressing you, because I feel its importance and ultimate bearing, and nil that 1 said then could be pertinently reiterated now. We have a very comprehensive Agricultural Department; Royal Commissions aro appointed from time to time,' and' recently a Now Zealand Board of Trado has "been constituted; but', judging from' the past, we do not receive the commensurate benefit for the great expense incurred, nor, in my opinion, is thero any very statesmanlike attempt to grapple with these and other vita! questions affecting not only producers but consumers throughout tho colony. For our other cereal products, a fair level of values has been si-cured, but this is to a great extent also due to deficient yields. To conclude my remarks upon these questions, I would strongly urge 6ur members, despite their treatment in the past, to keep the plough going where possiblo, and to maintain, even if they do not increase, our averago production of cereals. AGRICULTURAL MACHINERY AND OTHER AGENCIES. Although the war has interfered with the importations of machinery and raw materials for tho manufacture of, farm tools, wo havo been able to maintain a full rango of implements and general farm machinery. It is very encouraging to note a marked increase which tho farmers have of. late accorded tho association in this department. MOTOR DEPARTMENT. Tho operations in this department continue to grow. A largo number ot vehicles ofj various descriptions were dealt with throughout the year. This special business, as I have previously explained, is conducted upon an indent basis; consequently, only the minimum of -risk to the association is incurred. AUCTION AND STOCK DEPARTMENTS. Following an extremely dry year, and the consequent scarcity of feed, the earlier part of the period just closed was very quiet in auction as well as private sales. The results obtained in every section of the department must be very gratifying indeed. Oar sale:, of stock during- the twelve months, all classes, show the following substantial increases:— ■ . Sheep . . • ' 241,971 Cattle . . • o,m Pigs .... 2 ,504 Horses . . • o' b and ths gross earnings of the three sections of the department, live stock, land and wool, were ±,dS,UW, against £2-5,986 the previous year. Ihe officers of the department worked ex-

ceedingly well together, and every credit is due to them for the fine showing as above, especially in the face, of adverso circumstances for tho greater part of the period. With regard to prospects, I think the outlook is particularly bright. Splend'd winter rains have been experienced all over Canterbury and North Otago; indeed, in soma parts tho falls havo been record, or at least have not been so copious for many years. If the sheep returns can bo relied upon, there is a shortago in tho South Island of 664,000, and on increaso in the North Island of 370,000, leaving a decrease for the Dominion of nearly 300,000 sheep. This, with the prospect or a good season, should havo the effect of keeping prices at a high lovel. We have practically nothing to fear from Australian exports of moat during tho coming season, as it will take that country some time to replete hor flocks and herds after tho severe effects of the recent years' droughts have had, which practically leaves us only South America as a competitor for frozen meat. There has been unusual activity in tho cattle trade lately, owing, no doubt, to the demand' for beef in connection with the war. As a consequence, a good many farmers with smtablo pastures have turned thoir attention to breeding, and we may expect to see within a short period quite an increaso in the herds of the Dominion. In South America wo have a kesn. competitor for the supply of beef, and if wo hope to hold our own with that country we must give attention to duality, which can only bo done by breeding from the best blood obtainable. Another factor to bo considered is that thero must be a tremendous depletion of Continental flocks and herds caused by tho wastage of war, and not onlv during tho war, but after it is over, wo shall bo called upon to supply meat, while the countries affected are endeavouring to bring their devastated flecks back to normal. It behoves us, I think, in this Dominion, to increase our carrying "capacity and replace our culls by keeping the best of our femalo stock, thereby improving the value and quality. COUNTRY RESIDENT STOCK AGENTS. Tlio association's organisation in this respect was nover more satisfactory, and I have every reason to believe that our several outside agents are performing valuable service to shareholders ill their respective localities. WOOL. When I last addressed yon, the position in regard to wool was somewhat indefinite, but lately, with the additional war orders and restrictions with respect to export from the Bnited Kingdom both"of wool and tops, a better definition wan assured. Lnfortunritely. prior to last season's sales comir.ei.cmg, considerable private buying operations by speculators proven ted uianv of our shareholders from deriving tho full advantago of the improved conditions. Onr sales throughout the season were characterised by brisk coinpetition, and the association, as usual, is well to the fore in handling so large a proportion of tho unencumbered clip. The position to-day is extremely satisfactory from the producers' point of view. " Tho very large quantity of raw material absorbed by war ordore, the necessity the British Government feels of assuring full supplies as evidenced bv its commanfieenng the English cfip, tho solicitude of neutrals and Allies to be allotted some portion of their requirements, all point a maintenance of present values. When we rcaliso that these arc higher than ever previously recorded, it will be readily admitted'that the'present high prices c-f sheep are fully justified. Tbe limitation of tonnage la3t season necessitated some temoorary disarrangement of sales and terms of payment, and if the existing conditions prevail over nest season we' mav anticipate somewhat similar difficulties. Unfortunately wool, meat and dairv produce all i: season ' together, and it is felt that the first relief should be*utilisod by meat and dnirv produce snaco allotments. There has "been a good deal of speculation as to what is goiusx to be clone with the colonial clip. Our American friends accuse us of acting solely for our own ends, wlv'ch is "ot so. When we know what' has been done by German-Ameri-can wool firms, and how wool has been bought for shipment to Germany, one crnnot blame the Government for adopting any reasonable measures of precaution that won! grown in British colonies bo reserved to meet tho full requirements" of Grc-.it Britain and her Allies first. America will, of course, get wool, i but she will probably bo limited to an average prewar year's purchases. It is a matter of very great satistaction tn me, and it must also be to all shareholders, to see. the association's catalogue consistently growing year by year. During the p:ist seven years our offerings havo prown from 7982 bales seven years ago to 12,608 bales last season, an increase of 4616 bales, equal to 58 per cent during the period named (seven years). PERSONAL SUPERVISION.

In view of this tteady growth and in order that thero shall be nothing wanting on our part, we have relieved our Mr Bourn of most of his duties in connection with our live stock auction departments, thereby enabling him to devote nearly the whole of his attention to wool and skins. OVERSEAS FREIGHTS.

Reference to this subject brings mo to a matter I have eadeavourod to interest you in since I was elected to tho position I hold in our association. That question is the oversea carriage of our produce and the interests of the members of the association in connection therewith. Year by year tho importance of this matter to the producers is impressing itself more forcibly upon us. What littlo identity. of . interest tho colony possessed in overseas carriage to the United Kingdom in tho local management of the New Zealand Shipping Company, has disappeared through the absorption of that company with others by tho P. and O. Company. It- can therefore bo said that there is no alliance, no identity of . interest between the colony and any overseas liners on which we aro dependent to carry our produce to tha world's markets. True, these companies are represented locally by representatives and agents, but as such they must carry out only the policy as directed by their employers, and I ask you again to consider to what extent tho management*'of these liners may be expected to consider the producers' interests. The powers that control tho fleets on which we are dependent for space can only be regarded in the same light as' "'absentee landlords." and in my opinion the sooner we arrivo at some improvement of the present position the. better for each and all of us. Unfortunately owing to the system which obtains of securing term contracts from tho meat companies and tho methods employed, it is difficult to obtain satisfactory or continuous for outsido carnago. It has heou suggested that unity of action should first be reached by the meat and exporting companies, and that no contracts should bo entered into by such without the concurrence of unions and associations representing the producers only. Of course, while existing conditions continue, and tho ocean space is controlled by. the Board of Trado, wo shall get a fair deal, but 1 dread tho results which must follow when trado resumes its normal channels. Our import trade and space are free save and except for certain reasonable restrictions, and the advances in freight which have been made show how mercilessly our " absentee landlords " are disposed to treat us. Freight to the colony has advanced practically 200 per cent to '7OO per cent, and although I realise that some advance was necessary and justified, yet I want you to fully realise how powerless tho New Zealand producer is, and how littlo control ho can have under present conditions when the period arrives at which post-war rates will bs

establishod. I can beat describe the conditions by rooresenting the overseas carrying combination as having a " strangle held " on the producer. Personally I rejoice to gee that Mr Hughes has had the courage to launch out and buy tonnage tq, relieve the pressure from Australia, and I for one would gladly welcome similar action on the part'of our provided always that the management of the service was entirely and absolutely removed from political control and placed under the control of independent exports. We have Government railways —railways for carrying products from tho farm to tho port of shipment, and it seems quite reasonable to extend the same principle to continue the carriage to tho ultimate market. Tho producing interest is. the predominating interest in tho colony, and if by extortion we are ultimately forced to solve tho question ourselves, we shall I am suro net as successfully as wo havo dealt with the other combinations, but I would like you to consider the matter in all its hearings, so that when tho lime conies, if it should be necessary, it can bo grappled and dealt with effectively when tho war is over and normal conditions resumed. DAIRY PRODUCE.

Probably one of the most satisfactory features of business throughout New Zealand during tho past season has been in regard to this industry. True, it does not affect us in Canterbury so much as in other provincial districts, but wo congratulate our fellow producers in the colony. lam pleased to see a movement in the direction of establishing further factories in Canterbury, and I cordially wish them success. The action of tho British Government early in the season in commandeering one-third of the factories' outputs of cheese at 7Jd per lb f.b.b., not only steadied the market for this commodity, but encouraged factories in many cases to consign the balance of their output, JTor this they obtained extreme prices—in some cases 115 s per cwt—and it is understood that certain factories will average about 9d per lb for cheese consignments. For butter, too. extreme prices have been obtained (up to _ 170 s per cwt), and consigning factories must benefit accordingly. These pricos are, of course, attributable to war conditions, but the fact that they have been realised will materially assist the dairy farmer to free himself of financial obligations and so enable him to face lower values with equanimity. In connection with these industries, my remarks on freight and overseas carnage are equally applicable, and I would earnestly commend to our bellow co-operators, the National Dairy Association in the North Island and the South Island Dairv Association for the South Island, tho desirability of concerted and united action to obtain the beat results possible. _.„ FROZEN MEAT.

When I last addressed you on this subject, I referred with pleasure to the steps taken by '■'*■.& Imperial Government to commandeer supplies and to provide tonnage for the same. I said then that although prices had been hxcd o'i .1 fair level, yet producers would proboblv have dono better on usual market" centres. This has been fully borne out, and now in my further allusions to the subject, it is not with the intention of cavilling over any profit the Imperial authorities may have made in ,tho replacing of our meat, but I do most emphatically protest against the extravagant profits which the retailers havo been allowed to make upon the business in London and other consuming centres. It is of course extremely difficult to obtain absolutely authentic information upon the matter, and it is conceivable also that the «•**».« profit mad© may have been overstated nv some of the many who havo written and publicly commented on the subject; still be this as it may, we do know that enormous profits have been pocketed bv the retailers at the expense ot the producers of this country- In a statement upon the subject made a few .weeks ago by the Prime Minister he nuoted the "market price " according KSe advice from the High Commissioner:— . N.Z. mutton . 8M against 4Jd f.o.b. N.Z. N.'Z. «• mutton B}d ugpinst 4d f.o.b. *.6. K.Z.Lamb . . DJd against s!d (Canterbury), Even these prices represent ghastly discrepancies on the rates received by growers, but unfortunately we _ also know that on these "market prices" xho retailers secured a further substantial profit, ranging, according to locality from ot) per cent to 100 per cent, which is nothing short of robbery, and I can onlv hone that Mr Massey will, as he promised to do, look most carefully into tho matter when he reaches Home, and that ho will adopt whatever measures are necessary to protect our farmers from similar victimisation with respect to the coming seasons shromeut. , Apart from tho great money losses in values as above stated, which we havo and are still suffering, another very serious contingency especially applicable to Canterbury farmers lias arisen as a result of Government control of our meat, inasmuch as meat from the Argentine has been continuously on the market, and because supplies of such have been obtainable it has secured a premier position over colonial meat." This, of course, may be obviated when trade resumes its normal channels, but it will be a matter of time, and difficult to re-establish our supremacy. So far as tho working here of tho scheme of Government control is concerned on the whole it may be said to be satisfactory, though speculators to a considerable extent have been able to operate freely, owing to their advantages of space. In reviewing the position, tuere has undoubtedly been delay in shipping our meat, but when wo remember that two of our frozen meat steamers have met with mishap and therefore been prevented from taking up their time-table running, we must make allowance accordingly It is extremely gratifying that not a single meat ship from the colonies has, during the past year, been sunk or captured by our enemies, for which we are indebted to the vigilance of the British Navy. The coming year promises interesting developments, as by next season it is confidently anticipated that two new works at Kaiapoi and Belfast will be in full swing. This fact, coupled with the diminution of our, flock in Canterbury, affords subject for reflection, and if these additional works are to handle their fair proportion we must either increase our flocks or base our calculations on curtailed seasons. So far, indications point to the continuance of British Government control at least for another season. There is no doubt the ulterior benefit of the present working will be found in later years, for it will undoubtedly open Continental markets for our meat and other produce in a manner that could never Slave boon obtained under past conditions. We have sent our manhood to fight on their soil, and in their defenoe, and these factors will sweep away trade barriers to an unprecedented extent. POST-WAR TRADE AND ECONOMIC CONDITIONS. I would suggest to shareholders that they should give consideration and reflection to the possible economical conditons and post-war trade. It is, of courso, difficult at this juncture for any of us to forecast the future, but we can certaiuly fix our individual ideas and to ssme extent define our attitude in these matters. By this means we may ameliorate or avoid difficulties which may affect not only the colonial but the national policy. If, then, wo give these questions thought and anticipation now we shall be better prepared to meet tho necessary altered conditions. The London Chamber of Commerce referred tho question of trade to a special committee *o report snd make recommen-

dations. These latter resolved themselves into tho following:— 1. That any measures which may be considered in connection with trade during and after the war should provide : (a) For preferential reciprocal trading relations between all parts of tho British Empire; . (b) For reciprocal trading relations between the British Empire and the Allied countries; (c) For the favourable treatment of neutral countries; (d.) For regulating, by tariffs, and otherwise, trado relations with all enemy countries so as to possible a return to pre-war conditions and for stimulating tho development of home manufactures and the consequent increased employment of homo labour. % 2. That steps should bo taken to prevent the dumping (and under-valua-tion) of enemy goods into British markets after the war. These recommenda.tions were endorsed at the annual meeting of the Association of Chambers of Commerce of the United Kingdom on February 29 and March 1 last. I do not think I need dwell at length upon these recommendations, for I feel sure they will commend themselves to you. But I would just like to remark that activo war has at last brought the English commercial world to realise that preferential trade within the Empire which the colonies have been seekmg and advocating for so many years has been and js necessary to the welfare and Well-being of the nation, and has been by no means a selfish or unreasonable request. Trade with our Allies on reciprocal tariff is doubtless desirable, but preferential trade within our Empire we must and should regard as essential .

So far as trade with enemy countries is concerned I have no more to say than this: That between us and them there is a curtain of blood, and no question of trade nor commerce can compensate us for those of our manhood who have died and Buffered in defence of our liberties. Neither can, nor should, the anxiety and heartsickness for tho wellbeing of our absent ones be forgotten. What each one of us does, in a measure, guido or influonce the whole, and for my part I strongly urge an absolute and unsurmountable " boycott" of trian or German goods, even to the extent of what may be thought necessary specialty productions of those countries. 'Let our boycott be eo complete that if we cannot obtain such goods made by our own people or present Allies wo will do without them. It may be awkward at times, but it will be beneficial in many trays ultimately, and to act otherwise seems to me merely to deny the Britsh race equal intelligence to the Teutonic There is no doubt that after the war there will be a determined effort to "dump" the accumulated manufactured goods in Germany all over the world, if only to obtain some measure of financial relief. s . So far as economical and financial questions are more directly concerned, it must be a problem to many of us how the immense war expenditure -will ultimately have to be faced. Immense as the figures are, and realising as I do the hugo harden which must inevitably fall upon taxpayers, I can only say it is better to bear our share of the burden than to have our hearths and homes forfeited to the enemy, a condition which would, in my opinion, undoubtedly have been the case had our nation and Allies failed to establish success. Beyond this, however, I feel satisfied that, with healthy stimulus to trade, our commercial friends will rapidly attain to such a position that the burden can be faced with equanimity. What value money will nave after the war is another question, but it must be borne in mind that much of the present expenditure is within the Empire, and so not altogether lost. Belgium, France and the enemy; countries will certainly need rehabilitation, but this must naturally be extended over a considerable period. LONDON OFFICE\ Our London office, under the management of Mr A. D. Henderson, continues to do good and useful work for the association. Very great credit is duo to Mr Henderson and his staff, as well as to Mr Johns, our principal buyer, for the manner in which they have kept us supplied with our general stocks of merchandise which has been done under most trying and difficult conditions. Our produce shipments throughout the year have also been satisfactorily handled. Apart from the commercial usefulness of the London agency, it has performed a very special service to us, a labour of love, to which I feel I must great gratitude. During the progress of this dreadful war many of our young men, nearly eighty now, have gone to the front, all of them having carried a letter of introduction to our London manager, who has not only placed his services and advice at their disposal, but has also, wheo necessary, rendered pecuniary assistance. There have been quite 'a number of instances, too, where we have been enabled, through the medium of the London office, to bring joy and comfort to many parents concerning the whereabouts and circumstances of their absent sons. CONCLUSION.

Last year I concluded my address with the warmest commendation ± could voice to our women folk for their work aud efforts in connection with the Red Cross and other societies in the direction of ameliorating the sufferings of our sick and wounded, and adding in many ways to the comfort of our absent soldiers. Their work has been continued during the past year without cessation or diminution, and the ' reward is fully acknowledged by reports reaching us from the various countries in which our boys are operating. I think' on an occasion like this we should unitedly and whole-heartedly express our hearty appreciation of their efforts and their self-denying sacrifice. STAFF. No review of our business would be complete without reference v to the very satisfactory manner in which the staff of the association have carried out their several duties. When we consider the very varied nature of our many ramifications and the magnitude of our operations, aggregating a turnover of between three and four millions it is a source of great satisfaction to your directors, and I am sure it is equally so to shareholders, to know that the association possesses such a loyal and efficient staff, through the organisation of which this huge business has been run with such splendid and uniform success for so many years past. Our general manager and the principal officers supporting him have great responsibilties, and your board would like to convev to them, through this meeting, our hearty appreciation oi their services. . . I now have pleasure in moving the adoption of the thirty-fifth annual re-, port and balance-sheet. THE DISCUSSION. The motion was seconded by Mr A. Chamberlain. Mr J. Holland congratulated the directors upon tho success of the Association's operations in face of tho many difficulties which had arisen under war conditions. There had been a marked increase in the earnings of every department during the past year—a bigger increase, in most instances, than had happened any time in the last eight years. The net profits for the yeaa", also, showed an increaso which had few parallels in the Association's history. He predicted that after the war British manufacturers would be able to supply, every essential article of manufacture for which the Dominions were previously dependent on enemy countries. Ho paid a high tribute to the efficiency of the management, and the courtesy of tho Assooiation's staff. He looked to

the Federated Farmers' Co-operative Association to take action'regarding tho shipping monopoly, and ho hoped that tho shareholders would endorse any action of the directors on behalf of em* ployecs who were on active service. ! Mr J. 11. Howell spoke in terms of warm appreciation of the loyal service rendered by the staff during the year,' and suggested that the directors should pay the employees a bonus. To do so would be only in accordance with the spirit of a co-operative association. He! hoped that a substantial addition would be made to the wages of the lowest paid employees on the staff. The chairman saidthat a bonus hack formerly been' paid by the Association to its employees, but its place had nowi been taken, with the unanimous ap-j proval of the employees, by a provident and superannuation scheme. ■ The.! wages and salaries paid by the AasociaJ tion would compare very favourably] with those paid by firmß in similarj businesses, The directorate made their business to see that even the lovr-i est paid employees had an adequate] living wage. j Mr F. Horrell, after congratulating the directors on the general success ol the year's operations, asked the reaßonJ of the falling off in the sales of manures' from the Association's works at Belfast! from 8,849 tons in 1915, to 8.327 ton* this year. . * 1 The General Manager (Mr 39. W, Relph) said that last season was unJ usually dry.; The decrease was whollyi due to the conditions of the season, j In answer to another question by Mn Horrell, Mr Relph said that the out*; standing accounts on the balance-sheet represented not more than two-monthsn volume of ordinary end-of-the-montl( accounts. j Mr M. J. Dixon suggested that the association t-hould federate with kin>» dred associations, not only in regard toi, buying, but in regard to' the selling ofi farmers' produce. Australian meats' producers had been getting |d per IK more for their meat last season than thitf producers of *'. Canterbury prime." j A shareholder asked why the direoy tors' urged Email shareholders to in-i crease their holdings, rather than call up unpaid capital on shares already xsi sued. The chairman said the uncalled! capital WBB a very good security, and! enabled the association to get money;] cheaply- ~ I I The Rev Jasper Smythe asked inj what manner the reserve fund was helcu Could: it be readily realised, if needed ? The chairman said the money was' kept in the business for future use ia the business. Tho motion was carried unanimously./ ELECTION OF OFFICERS. . The Hon D. Buddo and Messrs J. A* Pannett, J, Allan, C.' J. Harper, R. Morrish and G. Sheat were re-elected, directors. It was stated that the directors had; decided > that a permanent auditor should be appointed, and that two in* stead of three auditors should be apv pointed by the shareholders in future,A permanent auditor, Mr Whittingham, had been appointed, and his duties would be to investigate and inspect ao« counts and systems of working of the various offices. Messrs L. L. Cordery and Jamel Morrison expressed, their approval of the new arrangement, and «l motion that two auditors should be apj pointed by the shareholders was carried unanimously. Messrs W. Jamieson and~W. S. New burgh were elected as auditors.