CANTERBURY FARMERS' CO-OPERATIVE ASSOCIATION.

Temuka Leader, Issue 1818, 20 November 1888, Page 2

CANTERBURY FARMERS' CO-OPER-ATIVE ASSOCIATION.

The annual meeting of shareholders in the above Association was held on Saturday in Timaru. There was a large attendance cf shareholders, and Mr J. Page, chairman of directors, presided.' The directors submitted a lengthy report, which we are compelled to condense. During the year the number of shareholders had increased to 711, holding 3090 shares, and new shares were being steadily taken up. The directors suggested that as sooo as 5000 shares were issued the lißt should be closed. A material increase in the business of the Association had taken place during theyear, more especially in the wool and produce department. The directors had decided to amalgamate their London agency with that of the New Zealand Farmers' Cooperative Association, and tbe agency would be transferred on 30th June next to Mr William Weddell, who would act for the. two associations. By thus concentrating the business in London tbe position of each association would be strengthened, especially in the purchase and shipment of goods to the colony. The directors were strongly of opinion that a co-operative insurance company would, under proper management, be of material advantage to the farming community, and steps would be taken at an early date with the object of paving tbe way to the formation of euch a company. The Heaton street warehouse wag now being enlarged to hold an additional 12,000 sacks of grain. With this addition the storage accommodation of tbe association would be increased to 47,000 sacks* At th« last annual meeting a resolution was passed providing for an increase in the nurnber of directqrs to twenty. A special meeting of shareholders called for the purpose of confirming this resolution lapsed for want of a quorum, and the resolution therefore could not be put in force at tho time. The whole of the directors retired at this meeting, but were {

eligible for re-election. After tery careful consideration the directors had had the freehold properties of the association valued by Mr Marchant, and, acting on bi» report bad written £2OOO off the value of the flame. Tuey fully expected the value of the properties would soon recover. The sum of £2OOO necessary to reduce the book value, or original cost, of the freehold properties to the level of Mr Merchant's valuation had been provided by *riting off £957 18s 3d from the profits of the past year and transferring £1042 la 9d from the reserve fund, which now stands at £7OO. The net profit available for distribution after writing off all bad *nd doubtful debts, the usual depreciations on furniture and plant, and the sum of £957 18s 3d above referred to, amounted to £2606 14s 31, which the directors recommended should be allocated is follows : 10 per cent, per annum on the paid-up capital, a cabh bonus at the rate of 5 per cent, on the goods purchased during the year by individual shareholders, md after pro riding for the usual fees to the auditors and stocktnicer and bonus on the salaries of the staff, to carry the balance of about £250.

The report and balance-sheet were ] taken as read, and it was resolved that in future the report and bulance-sheet should be sent out separate from the journal published by the association. The auditors' report was read. It congratulated the shareholders on the souud and flourishing state of the business. The chairman gave a lengthy address, in the course of which he urged the farmers to stick together and to beware of " rings*' and syndicates who were creeping arouod and trying to bleed them. He iostanced a South Canterbury farmer who had been boycotted because he would not sellskins to a "ring* at the latter'* own price. The farmer sent his skins Home and got Is 9d each more for them than was offered by the colonial ring. He concluded by moving the adoption of the report. 4fter a desultory discussion, Mr Anstey moved the following amendment : ,l That the year's profits be divided as follows : 8 per cent dividend, 4 per cant bonus on purchases, to capitalized bonus account, 7 per cent cash bonus on goods purchased ; the balance, after providing for auditors' and stock-takers' fees, and bonus on salaries of the staff, be carried forward; that the freehold property remain on the books of the Association at ths original cost £11,853 3s lOd. Mr Anstey and Mr Postlethwaite urged that customers beoefitß should be tbe primary consideration. The latter said he was against paying too high a profit to capital. After the chairman had spoken to Mr Anstey's motion, which if carried would absorb more money than they had in hand, Mr Thompson moved, and Mr Clelland seconded—" That the rate of interest to shareholders remain at 8 per cent," this meaning that a dividend of 8 per cent, not 10 per cent, be given. Mr Anstey'a amendment was rejected by a large majority. Mr Thompson's amendment was carried, and the chairman s motion was agreed to with the one alteration affecting the dividend.

The election of directors resulted ac follows: Messrs J. Page, E. P. Sealey, W. B. ftowell, J. Kelland, J. Talbot, R. H. Rhode*, and J. Campbell. Messrs M. Gray and J. Graogtr were elected auditors.

The meeting terminated with the usual votes of Ihankß.