W.F.C.A.

Wairarapa Age, Volume XXX, Issue 8545, 28 September 1907, Page 5

W.F.C.A.

ANNUAL MEETING. The annual meeting of the shareholders of the Wairarapa Farmers' Co-operative Association, Ltd., was held in the head office, Masterton, yesterday afternoon. M;r M. Caselberg, Managing Director, occupied the chair, and there were about twenty shareholders present. The Chairman, in moving the adoption of the annual report and balance sheet, which has already been published, said:—

Gentlemen, —I rise to move the adoption of the report and balance sheet. Before doing so it is usual to make a speech of congratulations if the year has been-a prosperous one; if otherwise, to make explanations. But as the balance sheet has been printed and copies circulated to all shareholders, you will have seen from its contents that the pleasant duty has devolved on me of congratulating you on the favourable balance sheet. You will see from the report that the net result is better than last year, and that there has been a large in • crease of business.

I am pleased to say that the Association's business shows a continuous growth of a sound and safe character; the facilities we have for buying and selling, and the excellent service we give have tended to make the Association a powerful and profitable business concern; not only of advantage to its shareholders but to the general public of the Wairarapa. The result of the year's transactions will enable as to pay the usual dividends and bonuses, to carry £3,000 to Reserve, which will then stand at £28,102 10s Bd, and carry forward £5,000 to next year's Profit and Loss Account, thus making our strong position still stronger. The year has again been a very prosperous one for all our shareholders, and for the whole district. Although the harvest was a poor, one in the South Island, and only a little better in our district, the high prices ruling compensated our farmers for the shortage of the yield. We participated in the general prosperity for the reasons I have mentioned.

Since our last meeting your direc tor* have carried out the following building programme, some of which I mentioned in my last year's speech:— Ist. The granary at the Masterton Railway Station was completed in" time for the season's crops, is the largest in the North * Island, and proved of great benefit to our customers, who freely availed themselves of the opportunity of storing their produce in it and it was alSo' of advantage to us in our having extra storage room as well. A hide shed was erected adjoining the granary, also a wt ol and skin store on our Cole Street , property, both of which proved of great convenience for storing hides, skins and wool awaiting > our monthly sales. 2nd. We have erected a brick party-wall at Carterton, and Carried it round the wooden portion of our premises, which now protects us from the danger of fire from the adjoining buildings, and has had the effect of reducing the insurance premiums on our block very considerably, in fact the expenditure we incurred was goocl' business. 3rd. We let a contract for installing an electric lift in our Wellington premises at an expense of £4OO, which will be completed some time next month. It was absolutely necessary and will tend to increase the letting value of the portion of the premises we do not require for our own business. 4th. You will see in the report that we decided to extend our business to Martinborcugh at the request of a large nuirber of our shareholders and from new settlers, who have taken up shares with the intention dealing with us As we anticipate doing a large business there, we have secured a good site, and are building commodious premises in brick, at a cost of nearly £4,009. The contractor is making good progress and will finish in contract time, viz., the end of November. We hope to commence doing business there before Christmas, and hope next year to be able to give you a favourable report of our Martinborough Branch. sth. We will have the . railway siding laid on to our Masterton granary in time for next harvest; the cost will be about £4OO.

You will also note that we re-paid £20,000 of debentures due on 30th September last, and issued new debentures for £25,000 at the same rate of interest viz., 5 per cent, per annum, having a currency of ten years. The majority of the debentures were taken up by our shareholders. The security given is over a portion of our freehold properties. I am pleased to toll you we received applications for several thousands cf pounds more than we could allot, proving the confidence of the investors in our stability.

Our Employees Accident Fund will stand at £B2B 16s. We are still insuring our employees against accidents, so as not to encroach on thii fund, and will continue to do so until it reaches £I,OOO, and then use the interest only for insurance. We have expended on land and buildings for the requirements of cur increasing business during the financial year the sum 0? £3,126. We "have to pay for contracts in course of completion about £4,250; this will complete our building programme up to the present. Before giving you an outline of our future policy I will give you my usual annual statement of our financial position. .The figures are from our present balance sheet: —

Our present paid up capital, omitting shillings and pence, is ... £70.800 Calls paid in advance ... £1,820 £72,620 Our present reserve is £2-5,102 Amount to be carried to reserve as per report £3.000 Making a total of ... £28,102 Amount to be carried forward after,providing for dividends, etc., as per report £5,000

Making athe total ■andireser.ve HHBHB Add .uncalled capital TCatail ••• As against ipaid-up capitaf and reserve in last year's >bailance-sheet of £100,474 Add ituicaSUed capital of £43,570 £144,044 Shiftrogian increase in our paid-up .capital and reserve toif £5,248 And a decrease in our uncalled capital of ... £2,284 Making Isfae aiet total increase of and reserve £2,964 The total reserve, including the £5,.000 to be carried forward, will be £33,102 Which is equal to £45 Us 4d per cent, on the paidup capital of ... £72,620 Thus at present every pound paid up is worth 29s 9d 4 as agains*; 28s 9d of last year. The holder of £IOO of shares has value of £145 lis 4d. (This is independent of the enhanced values of our freehold properties. The present selling values of the same are worth at least 50 per cent, more than the book values).

I will now compare our assets with our liabilities, as per balance sheet: — Our total assets are ... £201,212 Our liabilities to creditors are ... £84,376 Showing a surplus of assets over liabilities of £115,836 Or put in another form we have liquid assets of ... £201,212 And uncalled capital 0f... £41,286 Making a total of ... £242,498 As against liabilities of £84,376 Surplus of Assets ... £158,122 Showing our assets to be in the same proportion to our liabilities as previous years, viz., £3 for every £1 of liability. A further comparison with last year's balance sheet shows thus: — More assets ... £16,290 More liabilities ... £10,355 Leaving a net balance in favour of this year 0f... £5,935 I think you will agree with me that no further comments are required to prove our strong financial position, and fche annual growth of our capital and reserve, making it silf-evident that your directors are continuing their cautious policy in the management of the funds and resources of the Association, which must be very satisfactory to you, as it is gratifying to your directors. I may mention that we have sold our Kopuaranga butter factory "t® the Dairy Union, our loss from first to last was about £1,500, but we attained the end we had in view, that is, to foster the dairy industry in our district.

We have shares in the Dairy Union, and have taken shares in the Carterton Bacon Curing Factory, so as to carry out our p6licy of assisting all industries likely to benefit the farming community.

lam pleased to say,., that. w<* have competed successfully for grain, wool and stock agency business of the district, to the satisfaction and evident benefit of our -shareholders, and although we have reduced the prices of all the staph commodities, the large increase of bur trade has fully compensated us ;as the balance sheet proves. The future policy of your directors will be as in the past, viz., to make use of our strong financial position to compete for all legitimate business on sound lines.

I will now make my annual predictions for the futttre, hoping they will be realised as in the past Ist. There is every probability of our having another prosperous year. The outlook for wool keeping up its price is good, the ruling rates for stock are very satisfactory. 2nd. Butter and cheese, although rather lower in value at present . in England than the previous year, yet the present ruling price is sufficient to make the dajry industry profitable. 3rd. It is rather soon to predict on the kind of harvest we \Vill have, but the probabilities are in favour of a better season than last year. 4th. And as the political horizon is more satisfactory to the farming and landed interest, the Land Bill, if eventually passed will not be as detrimental to the country as thought, which will be an incentive for owners and holders of land to expend money on improvements. sth. The flax and timber industries are very busy, consequently owing to the general prosperity there is full employment for all workers. The new arrivals from England find ready employment, which all tends to make trade good.

Before concluding I must nbt omit to mention a very important matter on which, in a great measure, our success depends, ramely, our staff, who, I am pleased to say, are efficient, attentive to customers, loyal to the Association, and contented. Hoping I may have the pleasure of meeting you all at our next annual meeting with as good a report and balance sheet, I will now move the adoption of the report and balance sheet as printed. Mr J. Bannister seconded the motion, which was carried unanimously. On the motion of Mi\T. Maunsell, seconded by Mr F. A. Hosking, the retiring directors, Messrs C. B. Pharazyn, P. J. Nathan and A. Caselberg, were unanimously re-elected. It was resolved to pay the same honorarium to the directors this year as last. The action of the directors in appointing Mr J. Caselberg to the directorate, as decided at an extraordinary general meeting of shareholders, was confirmed. The retiring auditors, Messrs R. T. Badham and W. B. Chennells, were, on the motion of Mr M. R. Varnharo, re-elected at the same honorarium as last year.

directors the capable Chairman had guided through years which had not been as prosperous as the present one. The Chairman, Mr D. Donald, and Mr E. Richards, suitably acknowledged ths votes of thanks.. The meeting concluded with the confirmation of the minutes.