Farmer?’ Co-operative Association.

Patea Mail, 17 October 1881, Page 4

Farmer?’ Co-operative Association.

The first annual meeting of Canterbury Farmers’ Co-operative Association was held at Timarn on the Bth, when about 100 shareholders were present. The Chairman of Directors, Mr Postlethwaite, read the report, from which the following is taken : “ I have now the honor of submitting to your notice the first general report of the Canterbury Farmers’ ‘Association, Limited, and this I do with greater pleasure, owing to the very favorable statement which I have to make to yon. That a society started like ours—as an experiment, and in the face of numerous difficulties, should in the first few months of its existence have been able to realise a dividend, shows both the necessity which existed for its formation and the capability of its officers. As you are aware, the success of the society in Timarn has caused a similar association to be started in North Canterbury; and you will be glad to learn that the two societies are working together in perfect harmony, so that in place of being rivals, both at Home and in the Colony, they are by mutual action better able to further the interests of their members both at Home and abroad.” For the offices and ordinary dis- ® tribntional business of the Association Mr Green’s brick and concrete stores were secured at a cost of £4600, the site being very central and having frontage both to the town and the railway. The site selected for u grain and wool warehouse consists of sections 4 and 5 of the town of Timarn, containing half an acre, facing, and about to tie connected with the railway by a siding, is rented at £154 per annum, with power to purchase within 5 years for £2200. The property is also suitable for a coal yard and for the storage of rough goods. The roll of shareholders on Sept. 20 contained 317 names, representing 1925 shares, or a capital of £9625. A suitable London agent had been secured, and Mr Watkins, a gentleman with good business capabilities, engaged as general

manager. “ There is one point in the history of the Association to which I would draw ypnr most particular attention. To all reasonable and thinking men the history of the past few months should teach its ojvn lesson. A considerable .reduction has been effected in the prices of articles supplied by the Association to its shareholders when compared with the prices before ruling in the Colony. Your. Directors do not hesitate to say that as the bittiness developes a still lower range of prices may be attained, and for this reason, that starting with small sales the expenses connected with the management must lie greater than when larger sales are effected. No doubt a larger business will require an augmented staff, but at the same time it will be the object of the General Manager to sec that each employee’s time is fully occupied, and as business increases the percentage to be charged to cover salaries, rents, and other ont-goings will be redneed in proportion to the business done. Notwithstanding this, some few shareholders have tried to make capital ont of the lower prices charged by the Association —asserting that they could bny as cheaply elsewhere ; they forget that were it not for the controlling influence of this Association on the market, prices would again rise to the level at which you have known them in former years. Gentlemen, I cannot dwell too forcibly upon this ppint. I put the question to you most seriously; can you, fqr the sake of obtaining a small temporary advantage, contemplate for one moment a chance of returning to the old state of things.? If not, I would earnestly remind yon that by sticking together, by working shoulder to shoulder with us, yon will in the long run secure a great permanent advantage in place of a present temporary gain, and to confirm yon in this course of action I would have yon remember that this Association, although subject to the chances of buying in a higher or lower market, like all other traders, does not, on the other hand, aim at making large profits. It supplies to its shareholders the best goods that can be purchased in the open market, at such prices as simply to cover the Association from loss. It has no object in doing otherwise, for it can in no case give a dividend of more than 7 per cent. Under such circumstances, the policy of your Directors has been to give you at once the full benefit of the Association, ‘ by reducing the prices charged to the .lowest possible figure compatible with safety. I think the Auditor's report [submitted with the Directors’ report] is as favorable—indeed, I may say more favorable—than conld have been expected considering that the transactions of the Society as just now submitted to you, cover but an average period of six months. Your Directors have de-

tormincd ont of the net profit of £761 8s 2tl, as shown ; by, the'balance-sheet, to place £BSO to the reserve fund for general purposes, and appropriate £25 to Mr Watkins as : a bonus for the services which he has rendered to the Society, thus absorbing £375 out of the net profits. With the remainder they recommend you to deal as follows, namely, to declaim a dividend at the rate of seven per cent, per annum on the subscribed capital, each share to receive a dividend from the Ist of the month in which it was issued, and having done so to return per cent, on the gross purchases made from the Association, 25 per cent, or of the commission and storage earned on produce which has passed through the hands of your Association. This latter bonus is in excess of what may possibly be done on future occasions, but in the present instance your Directors feel that the amount charged for storage (owing to the impossibility of procuring reliable data upon which to fourfd the calculation necessary for the Society) was too large, and in proposing the above return of 25 per cent., your Directors wish to give justice to those whose grain has passed through their hands without prejudice to the other shareholders.” The following is a copy of the balance sheet for the first half-year, certified by the auditors, Messrs Clulee and Ziesler:—

Liabilities —To capital, 1925 shares of £5 each, less capital uncalled, and calls unpaid,(£72 10s) £2845; advances received in respect of produce shipped to England, £5898 6s 2d; National Bank of New Zealand (Limited), £1292 4s : bills payable, £3IOB 3s Id ; sundry creditors, £767 4s lid; mortgage on freehold, with interest to date, £2038 17s 9d ; net profit for half-year, £761 8s 2d ; total, £16,211 4s Id. Assets—Freehold property, £4681 14s 9d ; office furniture, £6l 5s Id, less depreciation allowed £8 4s 9d, £53 0s 4d ; goods on hand (net cost), £3457 3s ; sundry advances on grain and other produce, "shipped and in store, also amounts dne on open accounts, £7648 11s 4d ; preliminary expenses incurred in floating Company (£385 13s lOd, less one-sixth—£64 5s Bd, written off this half-year), £B2l 8s 5d ; cash in hand, £99 6s 6d ; total, £16,211 4s Id.