CANTERBURY FARMERS’ CO-OPERATIVE ASSOCIATION (LIMITED).

South Canterbury Times, Issue 2668, 8 October 1881, Page 2

CANTERBURY FARMERS’ CO-OPERATIVE ASSOCIATION (LIMITED).

The first annual meeting of this Association was held in their new office, Cain’s Terrace, this afternoon. There were nearly 100 shareholders present, and the Chairman of Directors, Mr W. Postlethwaite presided.

The Chairman read the notice convening the meeting. The minutes of the previous meeting were then read and confirmed.

The following is the report of the Directors as read by the Chairman : 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 you. 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 all aware the success of the Society in Timaru 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 farther the interests of their members both at home and abroad.

Perhaps some of the shareholders may have noticed in paragraphs 57, 58, and 59 of the Articles of Association, the 29th Sept, is mentioned as the date on which the first general meeting was to be held, whilst in paragraph 33, under the head of “ General Meetings,” the Directors are empowered to hold the first general meeting at such time as the Directors should determine, not being more than twelve months after the registration of the Association. On this discrepancy being pointed out to your solicitors, they gave it as their opinion that Articles 57, 58, and 59 were subsidiary to Article 33, which gave the Directors the power of calling the first general meeting at any time within twelve months from the registration of the Association.

One of the first objects of your Directors has been to secure the best possible premises for the business of the Association. In coming to the conclusion at which they arrived, two considerations were kept prominently in view ; the first being not to hamper the Association by locking up too much capital, either in land or buildings ; the second, to purchase such warehouses and land as would by their situation best promote the interests of the shareholders. For the offices and ordinary distributional business of the Association yonr Directors elected to secure Mr Green’s brick and concrete stores, at a cost of £4600. This site offered the great advantages of being very central and having frontage both to the town and the railway. Looking at the success which had. a attended their efforts since the formation of the Society, your Directors concluded that it would be for the advantage of. all oonoerned to secure these valuable premises, and although the actual capital called up might not hare justified them in doing so, they felt that they could not better farther your interests than by giving their personal guarantee for the loan which bad to be raised for the purpose. In this they trust that their action will meet with your approval. The site which your Directors have selected for a grain and, wool warehouse, consists of sections 4 and 5 of the town of Timaru, containing half an acre, facing, and about to be connected with the railway by a siding. This they have leased from Mr John Jackson at £154 per annum, with power to purchase within five years for £2200. This property is algo suitable for a coal yard and for the storage of rough goods. A tender has already been let for the excavation of the greater part of the land, and the work has been energetically pushed forward, so that the warehouses may be erected with the least possible delay. Since your Directors were elected Several retirements frpnc the Board have from various causes _ takeq place, but in no one instance has any retirement been influenced by any personal motive, and they were totally unconnected with the business of the Association. The directors who have retired are Messrs C. Bourn, J. Buckle, A. Clelland, and W. B. Howell. Acting in conformity with Article 57 your Board have replaced these gentlemen by the following, namely, Messrs J. Austin, W. Wright, E. P. Sealey, and F. H. Barker. According to

Articles 69 and 60, one-third of the Directors must.’to-daj retire from office, and under the ballot held for the purpose, the lot fell upou W.U. Slack, J. Austin, J. Talbot, J. E. Goodwin, and J. Hayhurst. These gentlemen are eligible for re-election. Acting under the power given them by Article 81 of the Association, your Directors have appointed Messrs White and Jameson solicitors to the Association, in the place of Mr Hamersley. I have great pleasure in reporting that the roll of shareholders is rapidly increasing. In the month of August last no less than 108 new shares were taken up, increasing the capital of the Association that month alone by £525, and your Directors have every reason to believe that when the business becomes fully developed, in your new warehouse, a much larger augmentation may be expected. The roll of shareholders on the 20th Sept, contained 347 names, representing 1925 shares, or a capital of £9625. Your agent in London, Mr Ballantyne, has all the business entrusted to his care, and he has proved himself most painstaking and reliable. The part which he has had to play has been a difficult one, and one which, owing to the lack of precedent, has thrown upon his shoulders a responsibility which 1 trust will not occur again. Your Directors feel that they have also been very fortnnate in securing the services of Mr Watkins as general manager, and have on all occasions experienced the greatest assistance from that gentleman's business capabilities and general knowledge. There is one point in the history of the Association to which I would draw your most particular attention. To all reasonable and thinking men the history of the past few months should teach its own 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 rulingin the colony. Your Directors do not hesitate to say that as the business 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 mast be 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 see that each employee’s time is fully occupied, and as business increases the percentage to be charged to cover salaries, rents, and other out-goings will be reduced in proportion to the business done. Notwithstanding this some few shareholders have tried to make capital out of the lower prices charged by the Association—asserting that they could buy 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 year. Gentlemen, I cannot dwell too forcibly upon this point. I put the question to you most seriously, can you, for 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 you that by sticking together, by working shoulder to shoulder with us, you will in the long run secure a great permanent advantage, in place of a present temporary gain, and to confirm you in this course of action. I would have you to 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 his 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. In accordance with Article 104 of the Association, the Auditors appointed at the last general meeting have carefully gone through the accounts up to the 20th Sept, last, and I now, with your permission, will read the valuable report which they have submitted to the Board. [Auditors’ report read] —I think that this report is as favorable—indeed, I may say more favorable—than could 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 determined oat of the nett profit of £761 8s 2d, 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 £376 out of the nett profits. With the remainder they recommend you to deal as follows, namely, to declare a dividend at the rate of 7 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 2\ per cent, on the gross purchases made from the Association, 25 per cent, or i 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 found 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) £2345; advances recived in respect of produce shipped to England, £5898 6s 2d ; National Bank of New Zealand (Limited), £1292 4s Od; 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 4 s Id. Assets Freehold property, £4631 14s 9d; office furniture £6lss Id, less depreciation allowed, £8 4s 9d), £53 0 4d j goods on hand (net cost), £3457 3s ; sundry advances on grain and other produce, shipped and in store, also amounts due on open accounts, Sfa764B lls 4d ; Preliminary expenses incurred in floating Company (£385 13s lOd, less onesixth —£64 5s Bd, written off this

half year), £321 8s 2d ; cash in hand. £99 6s 6d ; total, £16,211 4a Id. Profit and loss account, DrPro-

portion preliminary expenses, £64 5s 8d ; office furniture (depreciation), £8 4s 9d ; salaries to date, £232 lOaj incidental expenses, £l9 8s Id ; stationery, advertising, and printing, £36 lls 8a; telegrams, £ll 16s 7d ; rent of offices and stores, £4113s 6d; stamps, postage, and d uty, £25 4s 2d balance, being profit for half year, £7618s 2d ; total, £1201,3s Id* , Profit and loss account, Or. -By gain on insurance, £l6 16s 9d ; exchange, £l6 2s 9d ; interest, £32 Is 4d; commissions, £195 I7s 4d ; seeds, £376 5s 5d ; discounts, £lO7 9s 9d ; sacks and woolsacks, £6310s 4d ; storage of grain, £l3O lls 7d ; coals, £BB Is 9d ; machinery, £24 17s2d ;, groceries. account, £i49 8s lid ; total, £i2ol 3s Id. The chairman moved, and - Mr. A. Mee seconded the adoption of-the report and balance-sheet. Mr Acton drew attention to the

amount named in the balance sheet as

due on open accounts. He was under the impression that the Association was to conduct their business on cash principles. He thought where credit was given interest should be charged on the the amount of the respective accounts. The Chairman replied that accounts were usually paid at the end of the month. If people got goods early in the month—grass seed, for instance—they paid when they came into town, generally at- the end of the month. There were also advances on grain which were included under the head of open ac6ounts. In working a new company it was difficult to adjust everything with a degree of nicety. When, for instance, a higher rate for storage had been chai’ged than was afterwards considered necessary, 25 per cent, of the amonnt of storage had been refunded. The manager also gave an explanation of the item, and his explanation was received with applause. In reply to a shareholder the chairman" read over the items enumerated under the head of preliminary expenses. : The motion for the adoption of the report and balance sheet was then put and carried. The meeting then proceeded to the election of five Directors in room of Messrs W. IT. Slack, J. Austin, J. Talbot, J. E. Goodwin, J. Hayhurst, who retire by rotation. The only new candidate nominated was Mr S. D. Barker. The Chairman pointed out for the information of the shareholders, who

wished to stand for election as Directors that they were required to give fourteen days notice of their intention. Mr Wildie said the proceeding was a most unfair one. The old Directors, • were, it appeared, eligible for re-election, but rio notice'had been given that other candidates required to give fourteen days* notice. The rules of the Associa. tion had been printed at the expense of the Association, and he thought that the Directors’ should have supplied each of the shareholders with a copy. The Chairman said any shareholder could obtain a copy of the roles on . application to the Manager of the Association. Mr Wildie reiterated his objection. The shareholders: had no selection in the shape of new Directors. They were bound to elect the old Directors. Mr Bradshaw pointed out the amount of work the shareholders had done for the Association without receiving one ' farthing in remuneration. They bad done all they possibly could to make the Association a success and protect the ' interests of the shareholders (hear, hear), and he thought Mr Wildie’s remarks . about, unfairness were quite uncalled for. (Hear, hear). Mr Wildie did not wish to reflect on the Directors in any way. Far from it, • but he did not wish to see Directors elected who might not possess the confidence of the shareholders. Mr McLaren said he was surprised at a gentleman in Mr Wildie’s position , trying to breed dissension among the shareholders, or to reflect on the Directors. The Directors had carried out their work strictly in accordance with the rules of the Association, and he thought the shareholders should give them their hearty vote of thanks. Mr Wildie objected to be dictated to by Mr McLaren, or anyone else. In ’ speaking as he (Mr Wildie) did, he . considered he was only exercising his privilege as a shareholder. Mr J. Hayhurst said.that if Mr Wildie . was anxious to be elected a Director lie would resign in his favor and give him £5 to take his place. The rule should • be altered if the shareholders did not like it, but the Directors had only carried out the rules. Mr Wildie did not covet the distinction of being a Director. He had no time to devote to the duties of the office. The subject then dropped and the election of Directors was proceeded with, when the following were elected 5 —Messrs J. Austin, J. Talbot, J. E. Goodwin, J. Hayhurst, and S. D. "Barker. Messrs W. Ziesler and W. Davidson were elected Auditors for the ensuing year, . Votes of thanks were then passed to the Directors, the Chairman, and the Manager, for the very excellent manner in Which they had conducted the business of the Association during their term of offioe. The votes w«re duly acknowledged and the meeting terminated after three hearty timers were given for the Chairman.