CANTERBURY FARMERS’ COOPERATIVE ASSOCIATION.

Temuka Leader, Issue 2428, 22 November 1892, Page 4

CANTERBURY FARMERS’ COOPERATIVE ASSOCIATION.

The twelfth annual meeting of the Canterbury Farmers’ Co-operative Association was held on Saturday. There was a good attendance of shareholders, about 150 being present. Mr J. Page, chairman of directors, presided, and several other directors were also present. The Directors’ report was as follows : presenting to shareholders the twelfth annual report and balance-sheet, and in congratulating them on the fact that the business generally shows a considerable increase in all departments. The Heatonstreet grain stores have been enlarged during the year, and the buildings are now fully occupied. Since last balance 105 shareholders have been allotted 329 shares ; and the premiums resulting therefrom have been placed to the reserve fund. In response to the wishes of numerous shareholders, the directors have completed satisfactory arrangements with Mr J. Mundell, by which he will conduct auction sales from Ist October entirely on account of the Association. The consistent support of shareholders is asked for this branch of the business. The balance-sheet shows that the net amount available for distribution is £6218 9s lOd. The directors propose that the usual dividend of 8 per cent, be paid on capital; that 6 per cent bonus be paid on all purchases by shareholders’ storage accounts; that £IOOO be added to Reserve Fund; and that after payment of stocktakers’ and Auditors’ fees, and a bonus to the staff, the balance shall be carried forward. The directors retiring this year are Messrs E. P. Sealy, R. H. Rhodes, J. Kelland, and W. J. Hardie, all of whom are eligible for re-election. You will be asked to elect two auditors for the ensuing year, and to fix their remuneration.” The balance-sheet showed that the company has property of a total value of £19,089 Is 9d ; that advances on grain, wool, etc., were £48,892 14s 2d ; due on open accounts, £16,289 Is 4d ; goods on hand, £19,674 9s 3d. In the profit and loss account, £241 6s is written off for depreciation on plant, etc. ; salaries amount to the respctable total of £2184 19s Od; £2571 3s 6d was earned by commission; £1640 lls Od by storage charges ; £loll2s lOd by exchange; and £5517 5s 7d by profit on merchandise. The chairman, in moving the adoption of the report and balance-sheet, drew attention to the merchandise account. In comparing this with last year’s turnover under this head we find that there is a slight difference in favour of this yoar. Last year it was £57,209; this year £66,604; showing a balance in favour of this year of £8395, which he thought they would admit was very satisfactory, considering what an unfortunate season it had been for farmers. The Heaton street store is now finished, the whole of the ground being covered with a substantial two-storeyed brick building, with turntables, weigh-bridge, and sidings, all in complete working order and free of mortgage, the new addition costing £3IOO. The whole of it is now nearly full, containing 70,000 bags mostly wheat. In looking at the entire turnover during the yoar and comparing it with that of last year, they found there was a difference in favour of last year, accounted for by the entire lack of grain speculation this year. Last year they had several grain accounts, amounting respectively from £IO,OOO to £40,000. The total this year was £190,726 as against £207,151 last year, being £16,425 less than last year. The net result from storage this year, was some £350 less than last. Owing to the lateness of the season, the store did not fill up nearly so early as in previous years, but there would be a considerable amount going on to the credit of next year. They would remember about two years ago 2000 shares were offered to the public, and most of them have been taken up. During the past year there had been an addition of 105 new shareholders, taking up 329 shares. The directors proposed opening up the share list again, and offering another 1000, He drew attention to the continued increase and expansion of their business, which they would readily see will require more capital to successfully carry it on. Although being desirous to increase both shareholders and capital, they do not offer alluring rates of interest, eight per cent being the maximum fixed by the Articles of Association. But in turning to the balance-sheet shareholders would see that there was the respectable sum of £6626 as a reserve fund, which must have the effect of adding annually au additional value to their shares. While feeling the need for more capital to meet the increase of business they should prefer our shareholders increasing the number of shares to making a call. In looking down the share list the other day he was astonished at the number of one, two and three-share shareholders, and he thought farmers as a body were not very patriotic. They might depend that if stable institutions were to be built up they must drop listless apathy. Success in most things meant personal sacrifice. He referred to the arrangement made with Mr Mundell to start a general stock and agency business, brought about by frequent requests of members in all parts, especially jfi'un Geraldine and Seadown. The day of individuality all the world over was quietly pacing away. Rings and combinations were the ' T der of the day. Small companies were being absorbed by large ones. Big businesses and centralised organisations have boon the tendency for a long time past, and everything was at that moment tending that way, and there were some people who would try and make them believe that it was the duty of the producer to become a mere machine, forget Ids own identity, and grovel for others. They had an interest to defend, and, surrounded as they were by compoct organisations, that interest could only be defended by united action. The directors in considering the matter the matter the other day, decided that as profit permitted, a return would be made to those shareholders who gave them their business in this line. He also stated that the directors had not the remotest intention of cutting rates (not even under the rose), but if compelled to do so by others they would vigorously adapt themselves to the terras imposed upon them. He concluded by urging on farmers to support their own insurance company.

Mr Anstey asked some questions in criticism on the balance-sheet. How was it that with £3OOO more property represented by the new store, they had earned £3OO less than last year I What was the good of increasing the property if it was going to earn less ? Then the profit of £5890 was made up by the increased value put upon the buildings, and an increase of debts more or less bad. It was very doubtful whether they should pay so much as 8 per cent, or return so much bonus as was put down. The profit appeared to exist only on paper.

The chairman said Mr Anstey said they had made loss profit on more business. Was not that the case with all of them ! How much more wheat had they to sell foy flic same money as in previous years I

Th»r» wan sufficient _ mson why thou' profits wero less, but if a man made up his mind not to see, he could not help it. He explained that there was less made on storage because the store was not filled up so early. It was standing empty two months later than usual owing to the lateness of the season. But there wore 70,000 bags in the store now, the charges on which would go to credit next year. As to the increase of expenses they could not increase the business without increasing the staff. He would ask the auditor who was present, Mr Gray, whether the profit shown existed only on paper ? Mr M. Gray said Mr Anstey was quite wrong there. The balance had nothing to do with the £3OOO in the buildings. Mr Buxton moved—“ That the dividend or interest to be paid on capital be reduced to 6 per cent.” Eight per cent, was too high. They had no right to pay themselves a higher rate than the market value of money, and if they paid such high interest the institution would be apt to drift into a monetary or financial institution instead of a farmers’ association. If they looked to examples around them they would find that people who had been paying 8 per cent, had come to grief in that very town. Mr Rolleston seconded the adoption of the report and balance-sheet, and expressed his satisfaction with them and with the management by the directors. In reply to Mr Balfour, the chairman said that there might be a deficiency in the returns for the produce for which the large amount of £46,024 had been drawn, but the, directors took care to assure themselves that the persons interested were quite capable of meeting any deficiencies. The Association was perfectly secure. Mr Austin pointed out that last year the advances made were over £25,000 and only £12,000 was drawn _ against it. Another difference was that fixed deposits were £6OOO less than last year. The chairman said that the amount of deposits must vary from time to time, and that was why they asked the shareholders rather than ask the banks for money. He thought the amendment quite fair, but as for Mr Buxton’s argument that capitalists might monopolise the business, that was impossible. No one could have more than 200 shares, and no one could have more voting power than the man with 20 shares. The farmers would not take shares and the Association wanted capital. Mr Clelland pointed out that interest was only paid on the amount actually paid up, while the shareholder was liable for the full amount of his shares. The interest was not much in proportion to the liability. Mr Talbot said that to reduce the interest would be one of the worst things that could happen to the institution, and Mr Buxton’s arguments were utterly fallacious. The institution required money to carry on. Those who put their money into it at the start did so with the risk of never seeing it again. If they reduced'the interest to 6 per cent, no one would care to keep money in the institution, and certainly no one would want to put any more in. Mr Caird said he had some thousands in the institution and only got 5i per cent., but it was pointed out that he could get his money out while shareholders could not.

The chairman said there was no risk of the Association falling into the hands of moneyed people. There were only two persons with 200 shares, and they never came near.

Mr Buxton’s amendment to reduce interest to 6 per cent, for this year was put and lost, only 12 hands being counted for it.

The motion for adoption of the report and balance-sheet as presented was then put and carried. Mr Anstey moved, pursuant to notice, that the resolution fixing the number of directors at nine ba rescinded, and that the number be twelve.

Mr Howell seconded this, and it was carried unanimously. On the motion of Mr Buxton, seconded by Mr R. Campbell, those nominated to the directorship (the four retiring and Mr D. Shaw) were elected unanimously. (This leaves the number of directors, actual, teu for this year). Messrs M. Gray and F. Cargill were elected auditors by ballot, other candidates being Messrs Tipping, Rutland, and Mullins.

Mr H. Squire moved and Mr P. Wareing seconded, that the auditors’ remuneration be £SO each. Messrs Clelland and Buxton moved as an amendment that it be £4O, or £5 more than last year, and the amendment Was carried by 70 to 23. Mr Anstey moved and Mr Buxton seconded au alteration in the articles, to provide that any shareholder having one share shall be eligible for election to the directorship. (At present the qualification is ten shares). Mr Anstey spoke strongly in support of his motion. He believed it would strengthen the association if there were one or two of what he might call the “strugglers” among the directors, small shareholders who were digging their daily bread. He had nothing to say against the past management of the association, but he did say that all the good sense was not monopolised by shareholders who held ton shares. There were men holding 200 shares who, the chairman said, never came near. That showed that they took no interest in the fiffair beyond getting 8 per cent, and 10 per cent if they could manage it There word nlcnty of 15s men who took a real interest in thd Association and brought their business to it. After some debate the d'mtltfU was lost, 59 voting for and 69 against it. Mr Anstey then moved to the effed*' that no director shall sit for more than three consecutive years without re- election; that the twelve director’s form themselves into three groups or quartettes, to retire iu rotation, and only two of each group to be returned to the directorate, notwithstanding that the two also stand for election and gain more votes than fresh candidates.

This motion was aho lost by 40 to 51, and Mr Anstey said he hoped to bring it forward again next year. In reply to Mr Edgar the chairman stated that the amount owing by customers on the Ist September last, for more than three months, was £4885, and for twelve months £2lO 10s. The former sum was reduced by nearly £3OOO by balancing day, 30th September. Mr Edgar had given notice to move “ That no shareholder be allowed to propose or second a resolution or vote for the election of directors or of auditors, who is three months in arrear of payment.” As sufficient notice had not been given for such an alteration of articles. The motion could not be put. Mr Edgar asked, pursuant to notice, for a return of the names of those who had requestioned the directors to start in the auctioneering business.—The chairman declined to give the names. Mr Edgar thought the directors had too much power. They might be buying the Royal H«itel next. The chairman said they might; or a gunboat. In reply to other puestions the chairindicated in tw«w tlw qaftre

of t e arrangement with Mr MundeU-y----part salary, part commission, and Mr Mundell was responsible for half of all bad debts made. Mr Edgar thought half was not enough. In reply to Mr Clelland, who said the report was too short, the chairman stated that the Geraldine branch store would only deal with large lines, as manures, seeds, and sacks. It had been asked for, and he believed it would be a great convenience. . Mr A. Mahan moved a vote of thanks to the directors for their services during the past year, and this was seconded by Mr Kelman. Mr Rolleston supported the motion, and said that he was sure that they would all go away pleased at having seen their chairman back in ms place and restored to health —(Applause.) The motion was carried, and the meeting terminated.