SHANNON CO-OPERATIVE DAIRY CO.

Manawatu Herald, Volume XLVIII, Issue 3679, 18 August 1927, Page 3

SHANNON CO-OPERATIVE DAIRY CO.

ANNUAL MEETING. The annual meeting of shareholders of the Shannon Co-opera-tive Dairy Co. was held at Shannon on- Saturday. The report and bal-ance-sheet as previously published were discussed at length. STORE ACCOUNTS CRITICISED. Mr. \V. T. Jewell (Marotii’i) criticised the store account. He said he was a strong supporter of the company’s store. In going through the balance-sheet he had noticed that the gross profit on the store sales was £2,821 13s 3d, and after paying wages, and other expenses, there was only a nett profit of £174 Ills/ 8d shown. To him this seemed an exceedingly small nett profit on a turnover of £27,185 15s 5d as during the last few months the 'Company’s prices had been the same as those charged by the Farmers’ Union Trading Co. at Auckland, whose balance r sheet in proportion showed a much larger nett profit. A private firm which showed such a small profit lie said, would soon find itself in the bankruptcy court. This state of affairs was either caused by indifferent buying or the expenses were too great. He also noticed that the stock had increased by £IOOO over last year, which showed that although the store at its inception started with nothing, they now had goods’to the value of close on £OOOO, which in other words was profits accumulated. Mr. Stiles said he would recommend that in future the store working account should be kept separate from the factory account. He was not concerned in showing a large profit and was pleased to see a small nett profit. Mr. Chrystall said Mr. Jewell had opened up an important question, but he was of opinion that possibly the bulk sales had been the cause of the low nett profit. He then went on to say that the management of the factory had been excellent. The cost of production was 1.G59d per lb: and the price obtained was 1/3 per lb., but the over run had enabled them to pay the cost of production and an extra lid per lb. This, he maintained, had not been beaten by any other factory in the Dominion. Mr. J. Ryrie entered a strong protest against the prices being charged for goods at the store, contending that shareholders could purchase cheaper elsewhere. He read out a fist of goods giving comparisons between the store prices and outside firms. Mr. G. Stiles objected to unseasonable goods being stocked. They should not handle lines outside of farmers’ everyday wants. The store should be run on safe lines. Mr. R. Law said he hoped the policy in the future will be the same as when the store was founded, and that was that the store acts as an agency to supply goods to the shareholders at price's as reasonable as possible. Mr. C. Speirs said he would like to see the store cut out and the company confine themselves solely to the manufacture asd production of butter. He pointed out that a shareholder wishing to make purchases could always do so through the company’s secretary. Mr. Bowker opposed closing the store, asking if they lost the store, what were they going to pay for goods locally. Mi’. James contended that the store was an expensive luxury, as goods could be purchased cheaper elsewhere. The chairman closed the discussion by stating the question coulcl be brought forward when the general business was'being dealt with. Mr. Woods (Foxton) moved that it be a recommendation to the Directors: “That instead of one person acting in the dual capacity of secretary and stores manager, that these be separate positions, making one head for each department.” The mover pointing out that it was difficult to get one person to efficiently suit both positions. Mr. Carter seconded the recommendation, which was carried.