WAIRARAPA FARMERS' CO-OPERATIVE ASSOCIATION, LTD.

Wairarapa Age, Volume XXXII, Issue 9607, 29 September 1909, Page 5

WAIRARAPA FARMERS' CO-OPERATIVE ASSOCIATION, LTD.

ANNUAL MEETING OF SHAREHOLDERS. The annual 1 meeting of Sharehold er3 of the Wairarapa Farmers' Cooperative Association, Ltd., was held in the head office, Masterton, yesterday afternoon. The chair was occupied by Mr M. Caselberg, Chairman of Directors, and thsre was a fair attendance. The Chairman, in mo\ing the adoption of the annual report and balance-sheet, said .-—"Gentlemen, — In rising to move the adoption of the report and balance-sheet, you will see i'rom the same that we have had an unfavourable year, owing to the general depression which has affected our business, considerably restricting our turnover and reducing our profits. "All commercial firms have felt the same depression especially in the Wellington Province; some found themselves in financial difficulties and had to retrench very heavily on their reserves, and to mortgage their assets to enable them to carry on. I am pleased to say that we were more fortunate. "As soon as we perceived that we were in for a period ot bad times and a gen?ral slump, owing to the banks having commenced to call in their advances on a large scale, which we reckoned would have the effect of causing a stringency in the money market thereby accentuating had times, we lost no time in shortening sail and prepared for bad weether. We lessened our importations very considerably and commenced to economise wherever possible, in fact considered it prudent to reduce our staff, but I am glad to say not to any large extent as we felt sure the depression would only be temporary. We retained our old hands and parted with some recently appointed, chiefly single men. "We soon began to feel the result of our policy, our finances became easier daily, giving us ample funds so that we were not compelled to call in advances made to our customers, nor to press for payment of accounts; in fact we extended our limit of credit, and in a very short time we were in a position to make lurtfier cash advances and come to the assistance of several of our shareholders and customers, thereby sav ■ ing them from being forced to realise on their stock or property at a loss. " While I am speaking on financial matters, as you all know the banks were blamed for creating a panic ani helping to cause bad times, it gives me great pleasure in being able to state that our bank arranged to find us all the money we required for carrying on our legitimate business up to a very considerable amount, but 1 am pleased to say the policy we adopted placed us in an independent position and we had no need to avail ourselves of our banker's valuable offer. "Thanks to our previous prudent policy of adding to our reserve in favourable years and carrying ample sums forward annually for the express purpose of equalising dividends and bonuses in the event of having an unfavourable year, we are now in a position to recommend you to pay the usual' dividend and bonus to shareholders on their purchases, as you will see from the report there | will remain a sum of £4,400 to carry , forward tc next year. You will also j see from the report that we have ■ reduced our liabilities by about i £31,000 and increased oar paid-up j capital by £2,782. - "I am sure you will agree with me it is of the utmost importance that the Association should be financially strong, and in such a sound and solid condition that it can face bad times and slumps with impunity and pass through them unscathed. "You will be gratified to see from the report and balance sheet that your Association has attained that enviable position which your Directors intend to uphold by continuing our conservative policy. "Gentlemen, hitherto my annual forecast has been fairly accurate. Unfortunately this year it was not so, but there is always the consolation that things might have been worse. For instance, if the price of wool had not risen in the nick of time, if the price of dairy produce had not been kept up, and if we did not have a good harvest things would have been very much worse at the present time. "I therefore feel bold enough to mske another optimistic forecast for the coming year, because there are signs of the present bad times pass ■ ing away, confidence is being restored, money is getting easier, that is to say it is being unlocked and coming into circulation, go that it is now spent in remunerative improvements making a demand for labour. In a little while the building and other trades will be favourably affected, ojr numerous shareholders and customers will all be benefited including ourselves and other commercial firms The present outlook for wool, frozan mutton especially, and all our othet products are good. We have had a mild winter, and there is every probability of our tiaving a good harvest. So I think I have some reason for stating that we will have good limes shortly and with every prospect of m; presenting you next year a bal-a.i.e-shcet bstt?r results.

"In consequence of having iftonumised all round we did not expend money on new buildings, but fully kept up all necessary repairs, so that all our properties are in good order and repair. "I will now give you my usual annual statement of the financial position of the Association, the figures I am quoting are taken out of our present balance sheet, which will verify my statement as to our position : Our paid-up capital (omitting shillings and pence) £76,723 Our present reserve £28,317 Our special contingent re- ' serve £1,500 Our Employees' Accident Fund £I,OOO Amount standing to profit and loss account £13,405 £120,945 Add the uncalled capital £35,562 £156,507 Our assets as per balancesheet are £194,886 Our liabilities to outside creditors are £73,941 Leaving a surplus of £120,945 Add uncalled capital £35,562 Leaves a net surplus of £156,507 The assets are equal to £2 12s (id for every £ we owe, and if we add the uncalled capital, which is available for creditors, our assets are over £3 10s for every £ of liability, a position which very few trading firms can surpass. Now as compared with last year's ' capital we have £76,723 As against £73,941 Present reserve £30,817 As against £30,678 Uncalled capital £35,562 As against £38,291 £143,102 £142,910 Comparing our liabilities with last year they are as follow: — 1908. 1909. Liabilities £104,889 £73,941 Being £30,949 less. "You will see from the balancesheet the bulk of our liabilities are for fixed amounts and due at fixed dates. Thus debentures for £25,000 (Due in June, 1916). Fixed deposits £30,695 (Due at long dates). £55,695 Leaving only £18,246 Of current liabilities which includes our bank overdraft of £5,312. "These figures demonstrate and prove all that I have said as to the sound financial position of the Association, and I think further comment unnecessary, and as we have ample means, good, useful, well selected stocks, excellent up-to-date premises, and all other facilities lor doing a large business, your Directors are hopeful of showing a much better result ntxt year, but to achieve the same it is absolutely necessary to have the co-operation of our shareholders. "I cannot too strongly impress upon all shareholders that if they wish to continue to receive good dividends on their capital and bonuses on their pjtchases, they can only do so by giving their loyal support to their own Association. They mast bear in mind that the business is purely cooperative, the profits being divided amongst the shareholders pro rata and the bonuses according to their purchases "Shareholders can aid the Association and benefit themselves at the same time by inducing their friends to become shareholders, and thus extend the benefits of co-operation. At the same time the Association only asks for the opportunity of supplying shareholders with first-clas3 good' at fair maiket rates j "In conclusion I have merely !o add that our tutura policy will be on the fame lines as heretofore. We intend to keep our financial position strong, cater for good sound bus!- | ness on fair competitive lines, making full use of our strong position ! and facilities to do profitable trade, i "I have again the pleasure to bring under your notice the effici- I ency of our staff. They . have exhibited their usual zeal and loyalty to the Association by their atten • ive and courteous services to our shareholders and customers*." Mr H. C. Robinson said he had much pleasure i i seconding the adoption of the report and balance-sheet. If ever a statement of figures had a j kernel then he thought the kernel of the present balance-sheet was the statement that the liability had been | reduced by £31,000. Whether in aj time of depression or not it seemed { to him a remarkable performance. Whatever it may be in the future the Association was in a satisfactorily sound position. There was no discussion on the report, which with the balance-sheet was adopted unanimously The election to vacancies on the Directorate were then dealt with. Mr E. J. Rose said he moved with pleasure that the retiring Directors, Messrs D. J. Nathan, L. Caselberg and V. E. Donald, be reelected. Captain Holmwood seconded the motion, which was carried unanimously. Mr L. Caselberg briefly returned thanks. It was resolved, on the motion of Mr P. Gordon, seconded by Mr H. H. i Donald, that the honararium of £SOO and travelling expenses be distributed among the Directors. Mr J. Bannister moved, and Mr ;E. H. Waddington seconded, that the Auditors (Messrs W. B. Chenneils and R. T Badham) be re-

elected. —The motion was carried

unanimously. Mr J. C. Boddington moved a hearty vote of thanks to the Chairman and the Directors, complimenting them on the management Ot the Association's affairs during the year. Mr H. Donald seconded the motion, which was carried by acclamation. The Chairman suitably replied. A vote of thanks to the Etaff was moved by Mr D, Caselberg, who paid a high tribute to the courtesy and attention shown by them to customers, and said that they had always studied the best interests of the Asso ciation. —This motion, which was seconded by Captain Holmwood, was also carried by acclamation. Mr W. S. Jago (Secretary) briefly returned thanks on behalf of the staff. This concluded the business.