FARMERS' CO-OP. ORGANISATION SOCIETY.

Taranaki Daily News, 23 June 1919, Page 7

FARMERS' CO-OP. ORGANISATION SOCIETY.

FIFTH ANNUAL MEETING. The fifth annual meeting of the Farmers' Co-operative Organisation Society was held in Hawera on Saturday morning, when Mr. A. Hunter (chairman of directors) presided oyer a good attendance. REPORT. The annual report showed that the net profit for the year In all departments was £5984 13s lOd, to which had been added the sum of £573 Is 2d brought forward from last year, making a total to be dealt with of £6557 15s. After providing for depreciation on plant, £542 13s 9d, depreciation on buildings, £297 3s 7d, on office furniture £4B, and writing £250 off goodwill, there remained a balance of £5419 17s Bd, out of which the directors proposed paying a 6 per cent, dividend on B and C issue of shares, and after making the necessary reservation for payment of income tax, to carry the balance forward.

The statement of liabilities showed (shillings and pence omitted) that there is paid-up capital £55,199, fixed deposit £53,912, owing on mortgage £28,000, sundry creditors £25,344, bask £58,079, profit and loss account £5419; total, £225,955. Contingent liabilities consist of bills under discount £7982, uncalled on shares in the Farmers' Co-op. Wholesale Federation £425.

The assets are freehold property £36,900, plant account £5900, office furniture £2OO, stock on hand £30,821, sundry debtors £129,281, bills receivable £13,279, goodwill £7500, Invested In war loan £2OOO, paid on shares in Partners' Co-op. Wholesale Federation £75; total £225,955.

The profit and loss account showed that thegross profit for the year on motor and machinery, stock, land and wool, commissions and interest was £Z4,774, plus £573 brotfgirt forward. During the year Income tax -bad been paid to the amount of £3247. CHAIRMAN'S ADDRESS. In moving the adoption of the report And balance-sheet Mr. Alex. Hunter, chairman of drlectors, said, Inter alia: The great commercial combines and trusts so much In evidence nowadays, and the effects of their operations on the national and Individual welfare, require careful watching and study, for some at least of the commercial ambitions of a trust are no more legitimate than the desire for power of the Kaiser. Though there is much to be said In favor of trusts, especially as regards reducing the cost of manufacture, distribution, etc , yet experience shows that, as a rule, neither the producer nor consumer receive any ultimate benefit. The trust is not satisfied with the profit, but Uses its power of capital and Influence to stifle competition, and then force down the price to the producer and raise the cost to the obnsumer. - Co-operation is the true remedy. It has probably all the advantages of the trust, without the temptation to use its power. Command of capital Is the source of power, and a *o-operatlvo concern cannot do much in the way of Improving conditions until It is financially strong. The moral is obvious, and I hope members will do all they can to support and Influence others to support their own business. There are some whose idea of support is to take up one share, and apply for an advance of, say, £IOOO. Of course no one present would do that

A comparison of tho 19JS and 1919 balancesheets shows that our subscribed capital has Increased from £97,440 to £112,840, and our paid-up capital from £44,684 to £55,199, and our fixed deposits by nearly £IB,OOO. We have paid £2150 off existing mortgages, and added £4OOO oh a property purchased, making an increase of £IBSO. Against this our properties have increased by £7003, accounted for mainly by wool accommodation at Wanganui, Waverley yards, .bulk store and section in Hawera, and stors at Kaponga. Sundry creditors increased by £7887, of which £6BOO was incurred on the 20th or the preceding month. On the other Bide BUndry debtors bare increased by £40,840. During the past half-year money was slow in comlntf in, there being two months during the epidemic wh<Sn practically nothing came In at all, buslnew being at a standstill, though a good part of the expenses went on as usual The manager thinks that the increase is consistent with the growth of business. Stocks have Increased by £11,184, mostly accounted for by stocking of the Kaponga and Stratford stores. The amount shown is well withli market values, and stocks are sound property;;' The goodwill Account is stili an eyesore among'our assets, and we have boen unable to writs; much off it this .year. . , Ctonlngjßdwn to the firoflt and loss, y<Ht .will note a decrease in nil Items of expemHture with tiie exception of the four following increases: Donations £«, rents, rates, etc.,f-E2O salaries £370, travelling and motor Repairs Tl'f Ilrit. throe *re amounts, but the last requires some explanation. The keenness of competition has forced us to make use of more cars than formerly, and if you take into consideration that we ran during the year 19 cars and 3 motor cycles the average is not out of reason. Estimating th« three cycles as one car makes the total 201 cars, with an average expenditure of £156, which covers all motor expenses, -including tyres, benzine, etc. The receipts from all departments total £24,774, as against £28,606 for 1918, a decrease of £3832. It must be remembered, however, that during the year £2277 - wa9 allowed on stock commissions, &nd £943 discount on goods, a total of £3220, as against £2114 for last year. Besides.this there is the indirect benefit to the community of buying requisites at & lower price than they could have done had the society not been in exlst- $ n <-?• Owing to the abnormally Wad weather during the winter ahd spring, our stock commissions dropped £2IOO. This, together with the epidemic during November And December, was the cause of the falliu? nifiy in business, 21S - turnover showing a decreaso of £67,000 Based on the monthly <vera?e of commissions, etc., earned, and comparing sfc with the months of the previous year the loss f.ir the epidemic alone is at—stock £2520 By™" motor and machm-jrv 5193- total' £3478. It will thus be seen that the bad season before mentioned aid the epidemic, were responsibie for a decrease in profits earned of *.5578. The total turnover compared with the previous year shows a decrease of £4083 "£&, d . 6CTease , £B7 - 342 ' motor and machinery SiooJI 1 i increase £16,548, wool h I f! 0 total decrease as stated. SL 0 I , oolrea mu ch worse but for the r."' stock decrease has been mentioned Before, and the motor and machinery is accountf? iii mi! that we could not get cars hUHI;. P® yeMS tfmoTO of £762,273 was amaee paid-up capital of ? 5 t " ,3 obvious that fresh t 7 v 3ed ' an(l shareholders are holdings. The sum of " Btrlb " ted ]n dividends, and 1 ; who can see their way to i-SLfJ J - P0 ' rtl °" ln {mheT 'hares. expenses in so many items J nan,lßet has an <>& «• economy, Jm*" ij■ considerable amount of organising ability. The thanks of the shareahd to the whole of Z 2 'ZSP'SS support during a most trying X.?. , th . ero Il * To again been many changes. The work don 6 by them in organising era f«^m n £ Ut .i, the schemo "f assisting farm- £ eow ! during the epidemic, int.s . / een 0,9 ™««ns of Baving a mon , ey alid ln valuable cows to.owners who were placed In difficulties. Mr. Hunter then formally moved that the reSJm'JU L et ' and Parent of 8 per cent dividend as. recommended be adopted. Mr. J. Cleaver (Te Boti) seconded

THB DISCUSSION. JJ r - ®r oan "ie chairman stated sM%T motor dei,srta<in * • hft^"' m ! >^l. that the auctioneers of the pur chasers jjWfitysn statsd tliot they were supposed ' x[« ' i' I'M Pot been done.lotta V» «?' oo,Tl . B * n sala h j« ™ not antagonMned ? 3 * ono of tho3e who faflwlTJ.? "* an ' ,'"" i b" still had klnd- . jitooses had been given iSJ ? * W<j f' sUch « «6e epi- % it W ei S! ?f!3 »f , ' iSUId Be «<*«» with irSL A 1? 018 B , iBK of New Zealand u"j doln | trtmllarbusliiesa to theirs lncreaae „ d >??WS- There was a ° *™ wm ,jn the profits the WjSSous year, bo that S, "*«• J ora £J would think the business had gone back. The overdraft, too, had nearly w^!' 9t sundry debtor },ad also In--sTpijo «q i, y ' ft ' om £ «*.OM In 1917-18 »«££»■ 88 wa » Particularly struck with frl. Jin^2 e ? S bank ' wl >ich had risen the concern had grown to be a very big one ™L7r. not rsu,t ' b,lt merely IsX Jnfomat'orL° would obtain

th^'JS 7 . f' eeaenl manager, stated that If s ? co, i nt fact that rebates on !?$! ,^ a "? through the stores, totalled k, 943 ana rebAto on commissions wab £2077 HSftd.' * Wl '? 4,144 the profit totalled £9204 whlch_would haye enabled them to pay out more than 10 j»r cent, dividend. iJrf» i'. E " ,? orrlB!ln took exception to the Tarloua departments beir.R lumped. It was a lame excuse to say they <lld 2? . w 5? elr outside competitors to know what they were doing. They should put the position clearly before their , shareholders. J£',31 OT ■»'<• that when the position was explained they would see that the. yew had not been such a bad one. The balfijice-iheet was BP la Accordance wttft the directors'

i I • s

I auctioneering firm was very little to so by, as •It would vary £20,000 to £30,000 up or down In a month. The great decrease in the price of (stock also cut down the commission.

Mr. Corrigan: That cuts both ways. Mr. Pickle asked whether, considering the amount of business done, Mr. Corrigan did not consider the overdraft a low one. Mr. Corrlgan said he was not complaining of 'the overdraft, but he considered £142,009 book debts too much for the concern to carry. The manager aald this represented only two months' trading. Tho chairman said that when the organisation took over tho business the properties totalled £12,577 ; now they were £37,500. Mr. Corrigan said they also had more paidup capital, so would not credit the overdraft to that. Mr. D. Todd (Inglewood) asked for information regarding the profits made by tho garage at Hawera. Mr. G. H. Buckeridge. stated that before the question was answered ho would like to say that a statement had been made at last meeting regarding their motor business which had done the company infinite harm. It was not right that details should be disclosed that com* petitors could use to hang an argument on. So long as the mulls in the aggregate were satis* factory, shareholders should have con&dence enough to leave details to tho directors, being satisfied that they were doing their best to stop leakages. He would certainly oppose details being given at a public meeting, which could be scattered broadcast through the press. The chairman stated that the garage had shown a profit, though not so much as would have been the case if cars had been available for sale. Moreover, the garage had the great advantage that the company's cars could be repaired without any delay. All tho repairs were done by their own plant. Mr. T. Davidson said he understood that the meeting was one for shareholders only, and that those who were not shareholders could be asked to leave tho room.

The chairman stated that that was so. They were very pleased to have the press present, as through the newspapers shareholders who were not at the meeting learned what was going on. Mr. Todd thought they need not bo afraid of their competitors knowing their position. Mr. Corrlgan said that tho total of £24,774 16s 5d showed their competitors what profit they had made; it was not fair that shareholders should be in ignorance of what profit each department made.

Mr. Gane said that some of the shareholders would want to know-what profit had been made out of each man.

A shareholder said that such a system would show up the shirkers.

Mr. Marfell said that as'one of the directors ho would say they were doing their utmost to make each department pay. If a department did not pay over a long period he was prepared to go out of that department. He did not consider it wise to publish too many details. "You have," he said, "to trust us. We are doing our best. If you don't think wo are doing well kick us out."

Mr. Davidson said that If the company was doing one-third of the business in the province and made a profit of £6OOO for the farmers, then the other two-thirds not doing business were losing £12,000.

at^ 6 chairman: That i 3 a good way of looking

Mr Wills said tho company was not out to make profits, but to serve the farmers. In reply to Mr. Todd, the chairman stated that -their company was the first to giro & rebate on commissions.

Mr. Buckerldge remarked that this started at 10 per cent, paid at the end of the season, and had since increased to 15 per cent, uaid after each sale.

Mr. Corrlgan said that if the Farmers' Organisation had not been in existence the commission on sales would probably have been more at the present day. There was no doubt that they bad acted as a brake. He did not want anyone to think that he was antagonistic to the concern, but it was their duty to discuss the position. He was not up against the directors, whose position was an unthankful one, and the shareholders owed them great thanks for running the company. It was endeavoring to help the position that he was asking quea-

asked "what was the company's attitude regarding returned men. The chairman said that they had employed a ? ea . t „7 1 l ny ,aciy clerkß d ™lng the war period, and still had a number, but were giving returned men preference.

Mr. Todd (Inglewood) sold that they were b ocked up for room in their store. Mr, Cor--6111 had gone round and got over a hundred shares, but they could get nothing done. There was too much Hawera In the concern. They had splendid sale yards In Inglewood, and given more store room they would do more business than Hawera. (Laughter.) Mr. Dickie pointed out that Waverley Btore fn .v, 511 . co , st the company £I2OO, and i<» tn!? !! ?' Tin & details of one liranch posit" " " would create an Invidious

R ,' Colrlßan a3ke(l whether the staff naa been given a war bonus. The chairman stated that the salaries were ha'f-yearly lerlol^C!ll ' y ' a " d Would be mls<l<l

os i teci what was proposed to be fhl ♦ l the fine sections In Hawera. Were they to ,be used for grazing? »r«ilnw lla !i man saif) tllat 113 80011 is money was Th„J pr ? pose ' 1 t0 concrete there. Mr T,ui,i plea3ed t0 receive donaUons. w« a. f v f yo " want anything done, do as 11, lie'ewood—Send round a naa. and raise the money in the district. Mr. Conaglen aaked whether the staff or directors were responsible for sending out Canadian Thistle with pure seed or A sweto PP th ° U ' Eht that thls cara9 wlli W

h A ™ e , ml) ?. r thought the weeds were brought seeds unclean farms rather than by

Mr. Davidson considered that the general ta thf «f be thanked ,or redaction it ® account. could Mt'wii U «i "? se ? wtly tl,e or Eoi>lsatlon concerns 3 cheallly a3 other logwood

mobe capital required.

Umt on ,h 0 arao ™t Iw subscribed it must be admitted that edles^lfherfhi"?" There were two rem - farmers must P ut 1' more fits nnrt J « pa „" y " ,l,st make more procanital aßlde t0 bul " i "P the loy/ to their ™ a ™ CTS ln the dl3trtct to be n h. . ! cor>cern ' which was situated £nd JSi lU . the ®°mlnion, and sorvlng etnrlJFt£ closely settled and more dansely p, an y,other part of the Dominion lamf tn hj, i" 8 0 111864 shareholders to be to the zeal of *the staff' 6 ™' » Wb «° o H ' Buc . kci 2' ,se sal< > that the farmers n,hZ 8 i° bla,lie ' In "to to sen as lareelv nnrf y ™ st he able to buy as largely and pay cash, and to do this mo™ How many _L ,? ÜBlness t!,e ? were doing were run on as small a capital? Before growling at th£ Was not' il n »i Sntßd > to mak ® suro that there tht™ » I coming from the directors to them. It was absolutely imperative for farm* J„ j? 1 !'"* ua » postage stamp and asking us to make a suit out of It. You ilve i.Tt anTwe a Mn't S do"it t0 , f Co7er Tarana W with It, and we don't do as know your remedy-push us out" Mr. Conaglen agreed with Mr. Buckeridira to hnd^ta bUt , he "any How men 83 ' n 1 ° mU way and their btolnes™ 67 '* th " r proflte ** ™ 0 „" 9 , Bfs'tion of the company, as it would bo Iho ™ morß business without incrfasln* ssssssi i sna A shareholder thought that if thn« am •«+ SpifiP rnetf was f Tk e e r n lundwon *»" sheet were adopied ' hß Umt 110(1

ELECTION OP DIKECTORS.lultedfl "■ Corklll mn n i , A - Foreran n 009, A.

B udS%t R 7S of nd £2 G OO I i"v r0 - a r lDted Penses, limited to £IOO ' Te lne ex " hon6rrrium re of Ol £iso O ™? t0 the challm! "' ™ Ihe directors £lln* „ P ~' lr " lum ' an d to vote each meeting 103 P " day and «!"••• for oZtT L'l * , mpany - » was Pointed the S»£ J? necessitate an alteration in tne articles of association, and Mr Powdrell * m< " #

GENERAL. Mr. J. R. Cortlgan moved that it be a recommendation to the directors to enumerate in next year's balance sheet the commissions earned by each department, lie did not think that they should be afraid of their competitors. Mr. D. Todd seconded. Mr. Buckerldge opposed the motion. H« knew there were numbers of farmers who were not yet shareholders, and use was made of certain statements in order to prevent those farmers from becoming shareholders. It was quite right for their shareholders to have the Information, but he did not want the details to be given to their competitors—details, too, that might give quite a wrong Impression. Mr. W. D. Powdrell also opposed the motion. They had confidence in their directors, and such a motion was tantamount to a vot« Of no confidence in them. Other similar companies did not disclose details. Mr. A. T. Wills also opposed the motion. Mr. Corrlgan, in reply, considered the arguments of tiio opposition very weak. The directors owed a duty to the shareholders—to disclose to them the business of the company. Lumping the prollts In one item of £24,000 conveyed no information to tho shareholders. He was not reflecting on the directors, but wished to glvo shareholders confidence in the concern. These details would give nothing to their competitors. Withholding the information gave shareholders the impression that the directors were attempting to hide something. The resolution was declared lost on the voices, and on a division being called was also lost by a large majority. Mr. Goodyear stated that he had attended numerous sales in the district, and the name of the vendor was always given. Mr. A. T. Wills denied this, stating that ha could give days and dates.

Mr. Conaglen (Pihama) stated that he was unable to get goods at the Opunake store. Ho considered that the directors should see that the branch stores were as well stocked as the central branch.

The chairman stated that It was all a flueation of capital. If the shareholders supplied the mbney the directors would stock the stores Mr. Buckerldge said that it was tho duty of shareholders to see that the company had sufficient capital to carry its load. The business Was a good, sound one, and farmers should be loyal to it. It was wonderful to him how farmers would rush Into a wild-cat scheme that promised to pay 50 per cent, dividend, and would only take one share In their own busl. ness, which offered gut-edged security. The average holding was only 2% shares. He appealed to farmers to see that before they left the room they supplied tho organisation with sufficient capital to enable it to carry on the business that was offering. He should not have to appeal, as it was their own business With capital the company would be the strongest hi the Dominion. Ho urged all to treble their share capital before the meeting closed. Messrs. Harrison Bros, stated that the* j would treble their present holding of 12 shares and a number of others also took up 10 Bhares .each, over £IOOO being subscribed in the room.

STBENGTHENINO THE COMPANY. Mr. J. R. Corrlgan said that he understood a private concert was being formed to finance people who did business with tho company. The chairman stated that a company was being formed, not to take business from the society, but to relieve the strain on the society's finance. In the past the business had gone to other lending Institutions. This would assist business rather than diminish It, as they often had to turn down business owing to being unjab-'"- to finance It.

Jlr. J. R. Corrlgan said that he had been asked to Join the Institution, and had been Informed that it would not do business with anyone who did not do business with the co-op. Mr. W. D. Powdrell said this was not so. If the auctioneering society got the commission, and the Institution the Interest, that was a division of profits.

Mr. Buckerldge thought as a sound business proposition It was better for the directors to have the assistance of * financial Institution than to drive business away. If the farmers would only provide the necessary capital there would be no business for the Institution to do. Mr. Beltin considered that the financial Institution was a splendid one, and enabled the organisation to considerably Increase Its business. He had put £ 1000 in tho new InStltut'r.n, but would not do this with tho co-op. because the man with one share could get all the benefits. Capitalise this organisation and the new concern would do nothing. Mr. Todd thought this was a dangerous proposition, as fhe new concern might become so large that the organisation would do no business.

Mr. J. c. Davidson said that the directors were asking them to take up shares In the organisation, and yet had no confidence In it as was evidenced bp the fact that they had formed another society at the back of it. Mr. Todd! Has any other co-op. society done similarly T

The chairman said that others had done so Sir. Powdrell pointed out that because the organisation elected directors and paid them £25 per year (a voice :£l2) they had no right to say that any of those directors should not Invest £2OOO in any money-lending Institution The position was ridiculous. Thoy should feel grateful that such men could be found. Kaupokonul factory was ths first to start these money-lending Institutions in Taranakl, and now there were eight or ten such Institutions. It would be a strong financial assistance to the organisation, and should have the support of everyone in the hall. It would not only assist the organisation, but also the fanners desiring assistance.

Mr. Wells was pleased to see the institution come into existence, as It would be the means or assisting them to finance business that tttey wo ™l d olherwlse 1m been unable to take. The chairman pointed out that the directors or me organisation had to give security to the bank for £50,000.

Mr. J. L. Stevenson asked whether the directors had given shareholders any lead as to the quota of shares they should tafcu up Mr. Eucikeridgo said that he always held that o man should take up shares sufficient to carry the load he Intended to place on the society. Tho average shareholding was W, ' " r £l2 10s. What financial assistance taSs? 7 any ln3tltutlon on

Mr. Stevenson said that Mr. Buckerldge ex- ™ the financial assistance of the institution to first finance the cotfipan,s'-, 5 '-, H « considered the man who did business tl , lO company was of groat assistance, and fiMnn ™ Ut L 1!" 0f tha £1 «.000 book debts SMOO was his account/ which he had since

fcJFI.! chairman said that finance was necessary ir™ J' "S four'can days was aUowed buyers 0 payf « r their cattle, and most of them took the fourteen days, M^ Phllllp3 aaid that there was not one concern In New Zealand that was r'? p U l ecL If th 9 "Me was given shara ca P"al. and not on the te anv put , thr °ueh, there would not that In share capital. He thought fX«i £ w i L f a ctor y. the basis of share capital held should be on the amount of buslness put through. 081 sald » was impossible to do h j,? wet,er ' should have sufficient loyalty to capitalise the concern. A hearty vote of thanks was accorded the retiring director—Mr. A. E. Death.