STRATFORD FARMERS' CO-OP. ASSOCIATION.

Taranaki Daily News, 30 July 1918, Page 3

STRATFORD FARMERS' CO-OP. ASSOCIATION.

ANNUAL MEETING OF SHAREHOLDERS. Mr. R. Dingle, chairman of directors, presided over a very good attendance oi' iJharebo'ders at tlic Town Had on Monday. The lalaiiee-slie-ct showed l!ic cheese working account at £44OU His Od. Further payments had yet to be made. Balances of surpluses, amounting lo £3!!J.S Ms 2d, liuve been placed to the credit of the reserve account, which now. stands at .CI.VII Ss l(»d. Payments for butter-fat for the i'car 1!>1(!-17 up to Is Sd per pound- The. amount of butterfat tax refunded by the Government had also been distributed amongst supplfcrs. During the year 2S,ffi)o,T;j2l'b of milk was received, manufacturing 1,34iG,033ib, an average test of 3.0. Cheese manufactured totalled 492 425Ui ; pounds of milk to pound of cheese, 0.49; pound of cheese to pound of butter-fat, 2.41; number of suppliers, 238, against 245 for the previous vear.

In moving the adoption of the report and balance-sheet, the chairman thought it a matter of congratulation that the year had proved a very successful one. At the last meeting they had found the capital account was going back, and it was time to set the house in order to get accounts squared on funds in hand. The shareholders had given the directors permission to do so, and, after paying Is Sd. they bad carried forward a fair sum to the reserve fund (£3!WS), and this had helped considerably. A fair profit had also been made from the freezing account, making the total £yslil 8s lOd in the reserve fund. Coming to the season's work, the chairman stated that last year things looked very black, and it was bard to get butter away, and they had to get the Imperial authorities to purchase the butter at !."7s. paving sll insurances and making advances on same after it had bean in store a certain time. The position this year looked no better, but he desired to touch on the local butter mark/t. Tho Government had commandeered butter, and bad fixed a price in the Dominion. lie had been dairying for 30 years, and knew what he was talking about, and maintained that if the farmers were paid as they should be, not one pound of butter would be retailed at les s than 2s per pound. (Applause ) And this would be a cheap price compared with meat, etc-

Regarding the cheese question, acting on the resolution* carried at the la-sit annual meeting, the mnin factory, Toko and Huinga, went in for cheese plants. It was h.te in the season before work was completed, and in this connection it was pleasing to record that, although, they had forwarded 3000 cratss, only 17 were classed second grade. The installation of cheese had upset the routine of the company's, work somewhat, and he wanted to warn the cheese suppliers that as the company had to meet a lot of expenses, it could not he expected to pay up to 2s. He believed in the season to come the r<h?ese men wou]d do as well as the butter men- Ohee=e, he thought, this year would touch 10V,d, and this would work out at about 2s per pound for hutter-fat He did not say this would happen, as he did not know, but •he based his conclusions from observations during a recent visit to Wellington. There they had asked the Imperial authorities to take the butter and cheese or allow them to go, on the open market. They did not kmow what was ahead, and it would pay to look to their finances. EOBSOX ROAD MATTERS. •He wa s glad to see the Robson Road people there. He had no desire to fight the suppliers there. There had been some correspondence in the papers re the Stratford factory and Robson Road, and he did not bother to reply to these unless the name was published. He was positive the company had given them every consideration. When the Robson Road suppliers were anxious to go in for I cheese, he met them at the Robson Road I site, ami made them the oiler that if they (Robson Road) were prepared to find the money, the company would build and instal the plant. The suppliers were required to take up suffloient shares to cover the cost of building, etc. This was declined, and Robson Road suppliers went out, and, as tilings went, he was pleased, as he did not think the main company would have been very much better off, and would certainly have much, more work with Robson Road as one of their branches. Some comment had been made on this action, but the company could not give the suppliers the machinery or factory, as the daw would not allow it. They, therefore, aiter vainly endeavoring to dispose of it, had to dismantle the factory and otherwise dispose o, .ransfcr machinery, the operation entailing a debit balance of £271 15s lid, whilst a loss of £4O was made on the firewood.- This meant £271 had liecn taken out of all the suppliers' but-ter-fat. Undef"~ these circumstances, Robson Road no reason to complain; on' ttie if there was cause to growl, it ws» the suppliers remaining who had a frfr of over £3OO. They

owed tho, Rob&ra Road suppliers £1 for each share, but if tlic company went into liquidation the shares would not nenrlv touch that value. The whole thing had now been written off. r FINAXCE MATTEIiS. Touching on finance, arrangements had been made with the bank up to £ 12,000, without any joint and several- The ■National liank had mot them very fairly. Prospects of shipping were far from good; in fact, bad. They had to provide for storage of butter and cheese, and,_ in making either, they wanted plenty of room and could not have the finished article" in the same room as that being manufactured. They had arranged for sufficient storage at freezing and meat works for 12 months, costing £12,000 at freezing and £26,000 at meat. They had to find a portion of the £25,000 within 12 months. The directors thought it wise to take y t d per pound for that purpose. They had to rae*t tIS.OOO in three months and the balance in 12 months. It was desirable at times to have a credit balance at the bank instead of the usual overdraft, otherwise they might be turned down. He expressed appreciation of the work of the manager and secretary who had both had a lot of extra work on their shoulders in connection with putting in new p]ant* and adjusting accounts.

Kesrarding himself, Mr. Dinjjle said lie hm! bcun with them 20 yenrs. and, whilst there had l>een a lot of bard work, they also pot a tot of fun out of it. He wanted to get out of the business 12 months ago, feelinjr it should he left to someone else to take up the work. Ho was not feeling too old for the job, but he would like a spell and get away for a, few months and not be bothered with factory work. He had censed to be a TZZ%~ fix months ago, but lie had Lai-

mediately placed himself in the hands of the directors, who wished Mm to continue in ollice until the annual meeting. As far as the legal position went, theycoukl not turn him out, as ho was a director who had another year to fill. It had been suggested that he should take up a lililo farm and continue to supply a. little milk. This would not do, as he had .been unloading and held very little property here. They would be really doing him a favor by putting him out. He referred to Mr. hastier having that day successfully passed liio medical examination, and would in all probability be leaving the company. The manager (F J. M-Donald), when called up, did not desire the company to appeal for him, as be did not wish to shelter behind any company, but ho had been turned down, so the company would not lose him. 'ROBSON ROAD AGAIN.

Mr. Hunt seconded. He desired, however, to take exception to the chairman's remarks about the Robson Road suppliers. Mr. Dingle stated they were offered the game terms as other branches, but this was not so. They were asked to sign a joint and several, but not other branches. Robson Road had to sign this up to £4OOO, to be paid up within three years. He coinbatted the statement that the company had' made a big loss. He bad forwarded list of questions as to payments made by the several branches and tho months theso were paid. The secretary supplied the figures in detail!*

In answer to Mr. Lehmann, the chairman stated that when Robson Road suppliers ceased sending milk, they only received certain payments for the season. In this instance they had paid Robson Road Is; then the three branches (Huinga and Toko) broke into cheese, tho last two, however, remaining with the company, end were paid up to the time they went into cheese. Those who remained in butter received up to Is 3d, and'participated in other advances. Robson Road, breaking away from the company, only received what was due them —ls 5d at the close of the season- He thought all realised the position. The company had received from £23,000 to £24,000, and this was shared round. He thought Robson Road had little to complain about. The legal aspect had not been considered.

Mr. Rawie a supported the chairman. The old suppliers had been paying all the way through. Mr. Paul asked why the plant had not been sold when Robson Road had broken away.

The chairman: We could not get an offer, even for the wood. They thought they would get clear of the wood, Cut this was eventually left on their hands, after the manager had practically sold it to the Eltham Company, and the loss hero was £4OO. In reply to a further question, the chairman said he was of opinion that those who went in for cheese had not been treated so well as the butter men, but the secretary had done his best. It was very difficult to adjust things.

Mr. Jfccd'ham (Douglas) said lie approved of accounts being adjusted. He had no desire to put money in his own pocket that might by rights go into the pockets of hi s neighbors. He moved—"Tjiat the accounts be adjusted so that those going in for cheese be treated on all fours with the butter'' Mr. R- M'K. Morison seconded. It was a business proposition. If they made a lews, they should stand by it, and a profit should be divided. They all wanted to be fair, and he bad no desire to receive a payment that others might believe was theirs. It was, after all, a vers small amount, and Robson Road should receive fair treatment.

The chairman said he did not come there to fight Kobson Road. They van ted to bo fair, end lie thought the company had been lair all along. The equalisation fund would probably realise £IOOO, and they could meet the payments. A 5 far as Robson Road was concerned, there was only £IBO involved. (A voice: Give it to them!)— Motion carrie.i. WORKIXG ACCOIKTS. The chairman, touching on the working accounts, stated that these were going up, and in criticising cost of manufacture they should remember this. Bennett now cost £'2200, whereas before the war it wa3 £4OO. Salt had also risen in price.

Mr. R. MIC Morison questioned the slight difference between cartage, storage, etc., of butter and cheese, considering the cheese had only been going a few months.

The secretary explained that the butter had other charges against it—shipping, etc.—which would make a big difference.

Mr. Stewart questioned the amounts written off for depreciation. The secretary stated that £99S had been written off. For cheese 2| per cent, had been the margin, which was small, owing to the factories having only been given three months. In reply to a question, he said that depreciation was not an asset, but a loss.

Mr. Tom (Toko) asked why tenders had not been called in connection with the new buildings.

The chairman said that under present conditions there was no contractor wko would tender without adding 25 per cent., not knowing how material would go up. All the works in Taranaki, Wanganui, and Feilding were building under these conditions, which had been found the cheapest. The balance-sheet was then carried. COPPER TRAIL. The secretary read a letter from the Patriotic Committee regarding the appeal made on behalf of the Red Cross, and suggesting that a challenge issued by tho borough should be accepted. The challenge was worthy of taking in Kind.

Mr. Boon, representing a deputation, stated that the Patriotic Committee was desirous of raising necessary funds for the Red Cross appeal. This was being made throughout tlte British Empire, and the people of Stratford, who believed that the Copper Trail was the most popular method at the resent moment of raising funds. The intention was to get up a challenge between the townspeople and the farmers in the town. It was intended to raise money for a half-mile. This would raise £llO. If they could get going, probably Midliirst and others would come in. The money would not come out of the companyl's funds, but from tJio individual. It was an annual ajipeal, and was daserving of everybody's support. Mr. Lehmann said if they gave any money it should go to the farmers' credit.

Mr. Foley said he approved the proposal.

Mr. Silk said they should accept the challenge. No Iftß could speak too highly of the w< \ the Red Cross people were doing, andl~§ should do their best to work up the He moved that the, <&alleng» should be.aseoptedj

Mr. Bawlcs seconded. He was sure that, worked the right way, it would prove a big success. In reply to a question, Mr. Boon said the appeal would be confined within the boundaries, and would Dot extend to Eltham or Inglewood. The motion w« 3 then carried, Mr. Boon thanking them for their action. Messrs Silk, Phillips, Huggett, and Pones were appointed a committee to represent the factory in preparing details. GENERAL. Mr. T Harry Penn was re-appoined auditor at a fee of 20 guineas- An amendment that Mr. Power be appointed was defeated. Messrs Colson, Towcs, Were, Needham, and Silk were nominated to fill four positions on tlio directorate, and a ballot resulted in the return of Messrs Towcs, Silk, Needliam, and Oolson,in that oTder. After a little further discussion, the meeting adjourned.