SOUTHLAND FARMERS' COOPERATIVE ASSOCIATION.

Mataura Ensign, Volume VI, Issue 257, 22 May 1883, Page 4

SOUTHLAND FARMERS' COOPERATIVE ASSOCIATION.

* — , | ; • From the • Times.' 1 A meeting of this Association was held on Saturday, when there was a large attendance. The President, Mr J. Mackintosh, occupied the cliairV"'-' The Secretary, Mr. J. L. McDonald, read his statement of the financial position of the Association. It showed a deficiency of £5497 6s Bd, and coating- i ent liabilities amounting to £10,33S os ' 6d. Mr John Mclntyre said he thought the old Association should be wound up and a new one formed. He believed that all the old creditors : would, in a short time, be paid 20s in the £, as there were only two or three bad debts on the books. The mistake the Association made was to start with too small a capital, and he believed that, with a larger capital, there would be no doubt of success. He moved — "That, after hearing the secretary's report of the financial position of the Association, and taking into consideration that heavy losses have been sustained, it is expedient, in the best interests of all concerned, that the Association be wound up, voluntarily, under the Joint Stock Companies Act." The motion was seconded by Mr Ward. The Chairman said that the only way in which the difficulty they were in could be overcome, was in the manner suggested by the motion. Several persons had recently applied for shares, but the directors refused to allot them, because it would not have been honorable to allot unless they could show a " clean Bheet." The Association had been a great benefit to the' farmers of Southland, and it had been through dealing with middlemen, and in flour, that the losses had been made. The directors now knew the rocks upon which they had come to grief, and would avoid them in future. Mr Houghton, having received permission from the meeting, spoke on behalf of the New Zealand Grain Agency Co., of , Christchurch. His firm, he said, were the principal creditors of the Association, and probably their claim, which waß nearly £5000, was the cause of the determination to wind up the Association. The claim was for sacks supplied to the Association. He had been promised a consignment of wheat, per the' Opawa, to pay for the sacks. That wheat had never been sent, and the sacks were given to the Association's bank as security. The consequence was that his firm could neither get the sacks nor the money for them. He had been promised several . times that these securities, the sacks, would be recovered frora the bank, and even now he would be inclined to consider their proposal if the directors offered him security on the uncalled shares of the Association. He brought these facts before the shareholders so that they might no* tit>£>ido to Triad -«*g *k^ affairs of the Association in the offhand way evidently intended by the directors. Mr J. Gardner repudiated the implication in Mr Houghton's remarks. There were other creditors besides Ms (Mr Houghton's) firm, in fact, at present there was a writ from the Supreme Court out against the Association. The bank had security for what they had given, but would advance no more. The Association had not been able to issue a cheque for a number of weeks past. The directors had promised to give tlie bank a bond, but the bank required that the bond should be signed, by" all the directors. In the meantime, to cany on the business, the sacks were given to the banks as security, to be returned on the completion of the bond. Then Mr McDonald was appointed secretary, and he showed the affairs of the Association to be in such a state that two of the directors naturally declined to sign the bond. Thus the bond was not completed, and the bank retained possession of the sacks. Mr Mclntyre assured the meeting that undoubtedly the best course they could possibly take was to wind up the affairs of the present Association, and form a new one. They would be able to pay 20s in- the £, but a little time would be required- It was certainly better to wind up voluntarily than be wound up by the creditors. A shareholder wanted to know how the Association was to be made a success in the future, since it had been a failure in the past. Mr Grardne r replied their present position was owing to the fact that the late secretary, Mr Bateman, had deceived the directors .as to losses. In a drawer in his office, a number of documents were found which had been kept back from the directors,, and which showed the losses that had been made. The motion was carried unanimously. Mr Gardner then said the question was whether they were going to let the Association die, or carry it on. It had not been successfully conducted, but it should be remembered that there had not been a' real business man on the directorate, and that Mr Bateman had been too clever for them. However, the shareholders had elected the directors, and it was therefore their (the shareholders') fault that the secretary's work had not been more thoroughly supervised. But the directors had gained experience, and there* fore he was sure that, in the .future the business would be properly conducted. He moved "That a society be formed under the Joint Stock Companies Act of 1882, to be called the 'Southland Farmers' Grain . and Produce Agency Co., limited,' for the "purpose of taking over the premises, busi? ness, and stock-in-trade of the Southland farmers' Co-operative Association at a valuation,ancl tp carry on the business." The speaker read the proposed prospectus, setting forth the objects of the Association, and fixing the capital at £50,000 in 10,000 £5 shares. Mr W. A. Lyon seconded the motion, and it was carried. The secretary, to show the bona fides of the directors, stated that they liad

already jjufc down their names, fov 550 „, shares. He invi'ed .thqse, present tp{ intimate the number of shares; they in-., tended to take, and 753 were sponsubscribed for. , , H , 'Mr Hopci'oft moved, seconded by Mr Black, That directors for the new company be :— The committee of the old Association, and Messrs Boyd, James Hamilton, ' M Perkins, Hopcroft, Hazletfc. A. "W"ard,^| J. Milne, and F. Jack. Carried. The meeting then adjourned. .