FARMERS' GO-OPERATIVE SOCIETY.

Taranaki Daily News, Volume LVII, Issue 308, 7 June 1915, Page 8

FARMERS' GO-OPERATIVE SOCIETY.

FIRST ANNUAL MEETING- OP b rt AR E'HCLDKRS. The first auuual meeting of shareholders of the above .Society was held at the Society's large store-room, Jiawera, on Saturday morning. There was an attendance of upwards of 150 members, representatives being present from practically every part of Jaranaki from Waverlcy to Waitotara to Opunake, and all the intermediate centres. Mr. Geo. 11. Buciveridgo, chairman of directors, presided. .. DIRECTORS' REPORT. The following report was presented by the directors: — The directors have pleasure in presonting the first annual report and balance-sheet for the year ended March 31, 1915, During the year we purchased the business of .Messrs {Jillios and Nalder aa a going concern, and we feol sure the results have fully justified the purchase. The business has shown a marked increase since it was taken over by our society. To the business purchased from Messrs Gillies and Nalder we have added merchandise, motor and machinery' departments, and in each oi these departments the results have been most huusiacu-ry. Your directors, in compliance with the request of a large numlKr of shareholders in the 0-punaki: district, obtained property and erected up-to-date 3aleyards. The yards were completed and opened on March 22, with what may be looked unon as a record sale for this district. Your directors also met a liirge number oi sfrarehod.ers in the Inglewooil district to consider the advisability of opening a branch at Inglewood. The proposal met with very hearty support, and your directors have decided to open saleyards at that point at the first available opportunity. Superannuation Fund.—Your directors have 'decided to establish a scheme of superannuation for the staff and employees, wliich will he carried into affect irom April 1 1915. The net profit for the year in all departments is £3152 13s 10d, and aftei providing for depreciation of plant account ±3115 10a Jd, and writing £li>o off goodwill and £3OO off preliminary expenses, there remains a balance of £1457 3s 7d, which your directors propose to allocate as folio,ws: Dividend on paid-up capital of "C" issue of shares at 8 per cent., £5'25; rebato on commissions at 10 per cent,, and rebate on purchases through the produce department at 2J4 per cent., £<>l9 18s sd; bonus to 6taff at 5 per cent., £'2o4 Is; amount carried forward, £IOB 4s sd. In accordance with the articles of association the directors to retire this yt'ar arc Messrs Buckeridge, G Wynne, Richards, Skedgwcll, and iiarkla, who ■| are eligible for re-election. I Auditor.—ln accordance with the 1 articles of'association Mr. J. A. Turtou retires but is eligible for re-election. The directors desire to place on record their 'high appreciation of the manner in which the staff have carried out their duties during the year.

The balance-sheet showed on liabilities side that the nominal share capital was £500,000, that there had been subscribed £33,510, and paid-up £7BSB. On fixed deposit there was £13,840; overdraft at bank, .£18,030; owing on niartgage, £14,"000; amount at current accounts, £1457. The assets showed property, £12,577; working plant and office furniture (less depreciation), £020; bills Receivable, £245(i; amounts due on current accounts, £37,413; stock of merchandise'and machinery on hand, £3874; stamps and stationery on hand, £347; goodwill (less £IOOO depreciation), £11,000; preliminary expenses (less depreciation), £968; cash in hand, £t!0; total, £0!),G2o; balance profit and loss account, £1457. The profit and loss account showed: Charges, £7770; exchange, £107; interest,. £497; depreciation, £1095. Tile earnings were £11,588, including profit on merchandise.

Mr. J. 0. Taylor drew attention to a tag by the auditor attached to he bal-ance-sheet, namely: "This certificate is subject to a special report on the s'.iarc register, which I have sent to the chairman." He considered that as this might have some bearing on the company's transactions the shareholders had a right to know the contents of the report. He moved that the meeting so into committee and that the auditor's report be then read.—Seconded by Mr. W-eir.

Mr. Corrigan explained that the auditor had specially mentioned that he did not desire this report to be read to the general meeting. It referred to a private individual, and bad 110 bearing 011 the company's balance-sheet. Tho chairman supplemented these remarks, and said the matter had already boon dealt with by the directors.

The motion was then withdrawn on these explanations being given. The chairman, in moving the adaption of the report and balance-sheet, made reference $9 the progress of the society's faielfiess. He br'e'ly traced its history from its inception, through tho negotiations which, in April, 1914, resulted in Vie acquisition of Messrs Gillies and ■Nftldcr's business, and Oil to the conclusion of its fitst year's operations. He made special reference to the erection of the society's find yards at Opunake, and to the fact that, as an outcomfl pf a meeting of farmers at lilglewood, the' soiciety now appeared to be justified in opening a branch there. The seiieiilc! which was originally propounded for the selling of produce on the Home markets had for various reasons not matured. The chairman then went into details in reference to the figures in the balance-sheet, and showed by comparison with other similar societies in X'ew Zealand that the transactions of the local society had been very satisfactory. lie explained that the first year's working of such a society as the Farmers' Co-op. must necessarily bo of a more or less experimental nature; they ]i'.u,t expect to make mistakes, but these in future would be avoided as they gained experience. The cost ot securing business was, he considered, too high, and some of this was due to the fact that farmers required too much waiting upon. Then again they found that, on account of war conditions, business was more difficult to transact. Their capital was too small, which meant that the society had to pay interest and had to discount hills, which meant so much less profit. The shareholding was quite disproportionate to the value of business done. There were 1300 shareholders holding 3252 shares, and the average paid up on each share was

nhout £2, or about C> prr shareholder. The. turnover was, roughly, fc0!>,000, or £2SO per sharrhi.liter, or" s(> times the paid-up capital. The New Zealand Farmers' Society had 7241 shareholders holding 110,033 shares, on which had been paid up £313,000, an average of about .€4(> per shareholder. Their turnover was £3,272,330, or ten times their paidiiip ca]>ital. He thought that each shareholder of the local society should provide the society with sufficient share capital backing to carry Jii.-s proportionate share of the load of hig own business. The present (European war had already made its effects felt ori the society's business in many ways. There were, for instance, the restricted 'banking .facilities; the suspension for some time of buying, and the increased prices of cattle for meat •works. The large increase in the price of wool was already being realised, but the increase in value of dairy produce was only partly realised as yet. The bonuses were yet to come. There was the effect also on the cost of feed, chaff, oats, etc., and also of seeds, and there would !>e felt, especially in the coming season, the shortage of labor for dairy factories and for harvesting. Mioney was plentiful, but pending the outcome of the prosertt war capitalists were shy of investing it. Prices for produce were abnormally high, and would probably! remain so during the war, and possibly tor some time after, but farmers should very carefully husband their resources. History was bound to repeat itself, anil depression was 'bound to follow unduly inflated prices—Hawera Star.