CANTERBURY FARMERS' CO-OPERATIVE ASSOCIATION.

Temuka Leader, Issue 2585, 23 November 1893, Page 4

CANTERBURY FARMERS' CO-OPERA-TIVE ASSOCIATION.

The thirteenth annual meeting of shareholders of the Canterbury Farmers' Cooperative Association, Limited, was held at Timaru, on Saturday. Mr John Talbot presided, and there was a large attendance of shareholders. The directors' report was as follows : " The directors have pleasure in presenting to shareholders the thirteenth annual report and balance-sheet, and they think that the result of the year's operations will be considered satisfactory. During the year Mr Jas. Wilson resigned his seat on the directorate, and Mr D. H. Gillingham was elected to fill the vacancy. The auction department has been in full operation during the year, and shareholders may be congratulated on the success which has attended this branch of the business. A branch has been opened in Geraldine, and the directors think it has been a great convenience to shareholders in that district. In connection with the extension of the business, the directors would urge those shareholders who now hold a very small number of shares to increase their holding to a number more commensurate to the amount of business they do. During the year 255 shares have been taken up by 110 new shareholders. The net loss arising from the grain charters q£ last year shareholders will notice amounts to £lll4, and that sum has been written off. The directors retiring this year are Messrs J. Page, W. B. Howell, J. Campbell. J. Talbot, and D. H. Gillingham, all of wnom are eligible for re-election. There are two vacancies in addition to be filled up at the annual meeting. The balance-sheet shows that the net amount available for distribution is £6883 5s lOi. The directors propose that she usual dividend of 8 per cent, be paid on capital; that 6 per cent, bonus on purchases and storage accounts be declared, 3 per cent, of which will be paid in cash and 3 per cent, placed to the credit of shareholders in the books of the association, bearing compound interest at 6 per cent.; that £IOOO be added to the reserve fund, and £250 to a special reserve fund for the auction department; that 10 per cent, rebate be paid on all commission earned by the auction department; and that after paying the usual bonus on salaries, and fees to the auditors and stocktakers, the balance be carried forward." The balance-sheet showed that the share capital was £14,911 ss, reserve fund £7658, amount at credit of shareholders, current ' accounts £9014, fixed deposits £15.615, prost and loss £6883. Among the assets freehold property represented £16,129, leasehold £1827, advances on grain and wool £35,021!, due open accounts £14,235. goods on hand £22,806. la t Q e profit and los account salaries £3423, v7' l ß tne largest item. A loss of £lll4 had been on the Marianna shipment, and bad a?bts further accounted for £503. The net profit for the year was £6697 5s lOd, which, added to the sum carried forward from last year, left £6883 5s lOd available for distribution. The profits on merchandise had been £7434 4s lid and £4547 4s lOd had been earned in commissions and £1879 4s 2d in storage charges. The chairman, in moving the adoption of the report and balance-sheet, expressed regret that he was called upon to act as chairman, owing to Mr Page having had to visit England for medical advice. He was sure that they would all be glad to see him back again restored to health, and in his usual place among them. (Applause). He had to congratulate sharenokiers on the generally successful result of the year's operations, notwithstanding the continued misfortunes that for some time past had beset the farming community. The last harvest was poor as to yield, and the price of wheat, 2d 6d per bushel, wan unprecedentedly low. Fat sheep had also declined in value, and on the top of this the troubles to mercantile and financial institutions in the neighboring colonies had caused a great restriction in financial accommodation here at a time when the need for temporary assistance was greatly felt. The volume of business, however, had been well maintained. The gross turnover had been £283,786, but as most o!! that was due to the auction department, it would be fairer to take the general business, and in this the turnover had been £68,000, or £2OOO more than the previous year. The auditors' and stocktakers' reports showed that every department had received the greatest care and attention. The sale of alcoholic 1 quora had been discontinued. This involved some loss of profits, but the directors decided upon it 3 discontinuance after very careful consideration, and they hoped their decision would be approved by the shareholders. The auction department had turned out very well indeed, and he trusted that the special proposals regarding the profits would prove acceptable. Mr Talbot next explained the loss by the Marianna shipment. Tne harvest of 1891-2 promised to be a prolific one, but unfortunately ninetenths of the wheat had been spoiled by rain in the stooi:, sprouted, and made unfit for shipment. Before the rains set in, the directors, foreseeing but a poor chance of a local market for all the wheat, chartered the Marianna to carry wheat to England, and were negotiating for other vestals to follow iher. When the rains set in thest* negotiations were broken off. The wheat not being in a condition for shipment deterred farmers from shipping on their own account, and as a consequence the directors had to choose between buying a cargo at the then market rate, and guaranteeing shippers a minimum net return. They considered that 2s fid per bushel was then the least they could offer as an inducement to ship, and adopted that figure. The result proved a loss to the association, but to have bought a cargo right out would j have resulted in a much heavier loss. It was fortunate that the negotiations for other vessels were not completed and could be broken off. With regard to dealing with the profits, it was proposed, after paying l 8 per cent, to share capital, to declare 6 \.&c cent, bonus on purchases, and the directors would ask shareholders to agree to half the bonus being paid in cash and the •either half capitalised, either in the capitalised bonus account or in shares up to £2 10s, paid! up- In order to meet the increasing requirements of the business, in the shape of capital l greater inducements ought to be offered !■ for the takins: up of shares. It was now j proposed to effect this object by declaring that capital ahaß henceforth share in the bonus dividend* To pay 10 per cent, on share capital thi* yea* would not reduce the bonus divisible on -pwekfrMS Dv more than ij, per cent. The total of shares that can be held by one being limited to 200, no fear need be entertained of the business being monopolised by capitalists. It was also proposed to itsue 1500 new shares, ami fchexe were 800 of tiie old is*ue not yet takes* wp. The proposal J7& 9 that capital should rank v.ifc't , one business \il the bonus division up to 2 per cent., and thei: if the annual meeting approved of it another .1 per cent, might be allotted to capital if tho ia?bus on purchases was 6 per cent. This j>r<sciple was adopted by the Christchurch Aj)SO#>»tion and worked admirably there. At Christ church, however, the same bonus was given to capital as t > purchasers. He moved the adoption of the report ,ind balance-sheet, with the recommendation that was made regarding the granting of a bonus on the shares. Mr J. Mill seconded the motion, and suggested that the shareholders should agree to capitalise the whole bonuses for thre* years. Mr Skinner asked a question about boycotting someone's grain, and paying a compromise for it, but the chairman and the manager declared they knew absolutely nothing about it. Mr Wilson moved and Mr A. Clelland seconded —'• That the whole of the bonus be transferred to the capitalised bonus fand, interest to be paid or compounded at the option of the shareholder."—This was carried by 76 to *O,

Subject to this amendment the report and balance-sheet were unanimously adopted. It was resolved that 1500 new £5 shares be issued at a premium of 2s 6d. After lunch the result of the election of directors was announced, Messrs Talbot, Page, Howell, F. H. Barker, CampbeU, D. H. Gillingham and J. Anstey being returned in that order, Messrs J. A) lan and R. Thew being the other candidates. Messrs Cargill and Fraser were elected auditom. The auditors' report was read, and was in all respects satisfactory. They praied highly the manner In which the accounts had been kept. They asked for an increased remuneration as the work had increased by half. The chairman said tho directors would recommend an increase of £s—£4o to £45 each, and moved to that effect. Lost by a small majority. The chairman moved to the effect that the Articles be altered to provide for the nomination and election of directors before the annual meeting.—The motion was carried by 40 to 16. A second alteration of the articles providing for the payment of 2 to 3 per cent, bonus on share capital, was moved by the chairman, and caused an animated discussion. The motion was put and lost on the show of hands by 39 to 38, but it was carried by ballot taken later. (The resolution must be confirmed at a special meeting a fortnight hence.) Mr J. Anstey then moved that other alterations be made in the articles. (1) That the number of directors be twelve, four to retire each year, two of whom shall not eligible for re-election; and (2) that holders of one share shall be eligible for election. —(The present qualification is ten shares.) —These motions were discussed at length, and were both rejected by considerable majorities. Votes of thanks to the chairman, directors, and staff (now numbering 58) were passed, and the meeting terminated.