W.F.C.A.

Wairarapa Age, Volume XXIX, Issue 825, 27 September 1906, Page 6

W.F.C.A.

ANNUAL MEETING. j The annual meeting of tbe shareholders of tbe Wairaiapa Farmers' Go-operative Association, Ltl., was held in tie head office, Masterton, yesterday afternoon, Mr M. Caseiberg, Managing Director, presided, and there were about 15 shareholders, present. In moving the adoption of the annual report and balance sheet, the Chairman said: "lu moving the adoption of the report and balance sheet, I must say that I ant again pleased to meet you, and place before you a satisfactory re[ ort and balance sheet. You will sen, by comparing tne figures with iaar year, that tbey are not quite so t:oud, caused by our having to incror.se our expenses. We had to employ a larger number of hands, horses and vybi"leß and the increased pay and overtime to the stuff alto added to the expense, lint it is very gratifying to your Board, that I am able to state, our trade is good and progressive. The voiuniß of business done with shareholders and the general public during the year has bpen the largest as yet. The increased expense iuourred has provided an excellent service, and a more efficient staff, which has boon appreciated iu a practical manner by oar customers. The result of the year's transactions will enable us to pay tha usual dividends and bonuses, increase the reserve by £5,000, and carry forward £5,000 odd to next year. These results are the second only to those of last year. At the same time, Knm glad to pay we have continued our prudent policy of doing a safe and sound business of a non-speculative character, and strengthened our financial position. Tbe year has been a very prosperous one for all our shareholders, I may nay for the whole country; and lam pleased to say that we have participated In tbe general prospeiity. We have carried oat a portion of the building programme I mentioned to you in my last year's speech, to the following extent:— At Masterton—

1. Built new stables, cart shed, timber drying abed, and wool aod sheep-skin store on our Cole Street section. 2. Enlarged our furniture factory, and placed additional machinery in it. 3. Purchased land adjoining our brick store for future extension. At Ourterton-r 4. Built a brink store for our ironmongers department. Made alterations to the front and interior of tbe old store. This bianob baa now commodious premises, which enables tbem to display their goods, and provides facilities for their increasing trade. At Ureytowu—5. We built a spacious granary alongside tbe railway line, with a trolley line, wbiob fills a longfelt want. We have expended on new build<ings and land during tbe year about £2,782. We have let the contract for the Master ton granary near tbe Bailway Station, tbe oost of same, including railway siding, will be about £2,500. We may build a granary at tbe Carterton Kail way Station, tbe oost of wbiob will bo about £SOO, and if so it will make £3,000 to be expended this year. This will complete our building programme, until increase of business will necessitate further expenditure. 1 find that during the last ten years we bare expended on the purchase of building sites and new buildings, to meet the requirements of our progressive business, some £26,000, being an average of £2,600 a year. These sums were taken out of our yearly profits. At the request of a large number of oar shareholders, we started a

stock and uommission department in the early part of this year, and engaged Mr James Ewart to man age the same. I am pleased to say the department has met with liberal support from our shareholders and the general public. We have also initiated monthly sales of wool, hides and sheep-skins, which have proved a success, and of benefit to oar shareholders and customers. I mentioned to you last year, that oar debentures for £20,000 *oald mature on the 30th of this month, and that your directors would decide upon the best method of repaying same. I am pleased that I am bow in a position to state the Course which will be adopted. Thus, after mature deliberation your directors decided to re-issue new debentures for £25,000 with a ten year's currency. This method will save the Association £I,OOO a year, because, if the amount were called up on shares, there would be a 9 per cent, dividend on the shares, as against 5 per cent, interest on debentures. And as several shareholders expressed a desire to take up deoentuxes of the new issue, your Board made satisfactory arrangements with our bankers to lend ub the money to repay the debentures due on the 30th of this month; <tnd in the early part of next month we intend sending circulars with application forms to share holders only, giving them an opportunity of applying for our new debentures bearing 5 per cent, interest per annum, payable halfyearly, free of income tax. Ibe security is over our freehold properties, tbe present selling value of the same is fully £50,000. From enquiries we have had, we think the whole amount will be taken up by shareholders. The balance, if any, will be allotted to the outside public. I may state that we have received applications already for large amounts. After repaying tbe old debentures, there will be £5,000 available as a future buildiag fund. You will note our Employees' Accident Fund will, after this year, stand at £628. We intend to add £2OO a year to it, antil it reaches £I,OOO. We will then take tbe risk of accidents ourselves. 1 will now explain to you our present financial position in as simple a manner as possible, before placing before you our future policy. J lhe figures I am giving you are. taken fiom our present balance- \ sheet, viz.:— I

Our r resent ptid-up capital (omitting shillings and pence) 13 .£70,403 This includes calls paid in advance, .. .. £1,820 Our present reserve is £20,058 Amount to be carried to reserve as per report £5,000 Making a total reserve of .. 25,058 Amount to be curried forward, after providing for dividends, etc., as per report .. .. 5,013 Total capital and reserve .. 100,474 Add uncalled capital .. .. 43,570 I Makinc a total of .. ..£144,044 As against paid-up capital and reserve in year's balancesheet of 97,123 And uncalled capital in last year's balance-sheet .. .. 43,906 £141,029 Showing an increase in our paidup capital an 1 reserve of • .. 3,351 And a decrease in our uncalled capital of : "36 Making the total increase of capital and reserve .. . • £3,015 The total reserve, including the £5,01." to be carried lorward will be .. .. ' .. .. J830071 Which is equal to £42 15s per cum. cm the paid-up capital of £70,403 Tfiua at present every pound paid up it: worth 28a 9d, as against 27s 9d of h;st star. The holder of £IOO of shares has value of £142 15s. i will now compare our assets with our liabilitien as yor balance-sheet : O-ii' t,>*ai asset* are .. .. £184,922 Our liabiliti. sto creditors aro .. £74,022 Showing a surplus of assets over liabilities of £ ll0 .'_ 900 Or, put in smother form, we have liquid asset-; £184,922 And uncalled capital of .. .. 43,670 Making a total of .. .. £228,492 As against liabilities of .. .. 74,022 Surplus of assets ... .. £154,470 Showing on'*'assets to be in the same proportion to our liabilities as last year, viz., considerably over £3 *ui every £1 of liability.. A further comparison with last year's balance-sheet shows:— More. Assets .. .. .. £10,829 And More Liabilities .. £7,749 Leaving a net balance in favour of this year of .. .. , .. £3,070 The figures not only prove the strength of oui financial position, but also the annual growth,of our reserve, -and the cautious management of tbe Association's resources and funds by your directors. I think I have now covered the ground of our past year's transactions, and madf it evident to you, the Association's strong financial position. I bave already stated our building programme/ for tbe ensuing year. Our policy will be to make use of our strong financial position to compete for all legitimate business, on sound lines. 1 will now make my usual forecast for the future, hoping my predictions as hitherto will be verified. 4 We have had, all over New Zealand, seven prosperous years, and there is every indication, at present, of our having another good one. The output for this year of all 'dairy produoe, has been sold to English buyers at higher prions than last year; the prices of wool and stock are satisfactory. Tbe outlook for our next harvest is favourable, and as trade is good and increasing in England, our best customer, we are assured of a steady demand for ail Our produce from that country.

_. The South African market is an increasing one, and. when times improve there, it will, no doubt, be a valuable one for all New Zealand produce for several years.

Aa we will shortly have ou,r own railway siding, I hope our difficulty in obtaining trucks will be done away with; so I will not make my annual ohargd against the Bailway Department. I have taken the opportunity of giving you a sboit resume of oni year'! transactions, and of oar policy for next year. Hoping I may have the pleasure nf meeting you all at our next annual meeting with as good a report and balance sheet as the present one, I will now move the adoption of the report and balance-sheet" Captain Holm wood seconded the motion, wbiob was carried unanimously. - Mr J. D. Hegearty spoke in eulogistic terms of the management of the Association, and said that the manner in which the business was managed and the large inotease in the business was a credit to all concerned. He felt sure that it was one of the strongest institutions in the colony, oonsidering its age.

On the motion of Mr J. O. Boddington, seconded by Mr J. Bannister, Messrs D. Donald, D. J. Nathan and L. Oaselberg were reelected directors. /Mr Donald, speaking on behalf of his colleagues and himself, thanked tbe shareholders for reelecting them. He said he had in mind tbe establishment of freezing works.in the town, so that the settlers would not have to send their stook to Wellington. , On the motion of Mr J. D. Hegearty, seconded by Mr D. Anderson, Messrs R. T. Badham and W. B. Gbennella were re-elected auditors at a salary of £l5O and travelling expenses. It was decided to pay tbe directors a honorarium of £SO each ana travelling expenses, and that an extra honorarium of £125 be divided among five shareholders. Mr Ohennells moved, and Mr Boddington seconded, that the number of directors be increased from 10 to. 11. Tne motion was carried. On the motion of Mr Hegearty, seconded by Mr J. Bannister, a vote of tnanks was accordedi to tbe Board of Directors for tbe manner in which the business had been conducted during the past year. A vote of thanks was accorded to tbe staff, on the motion of Mr Donald, seconded by Mr Boddington. Mr E. Biobards suitably acknowledged the vote of thanks on bebalf of the staff. A vote of thanks to the Chairman concluded the meeting.