CONFIDENT OUTLOOK

Wairarapa Times-Age, 5 October 1938, Page 7

CONFIDENT OUTLOOK

FUTURE OF WAIRARAPA FARMERS WORKING FOR STABILITY. MEETING OF SHAREHOLDERS YESTERDAY. “I am certain that action taken bv the board of directors has been designed to give stability to the company and I personally look forward with confidence to the future,” declared Mr C. M. Bowden, at the annual meeting of the Wairarapa Farmers’ Co-operative Association, Ltd, held in Masterton yesterday. General satisfaction was expressed with the position of the company and it was anticipated that a dividend would be paid to preference shareholders at the end of’this year. The chairman of the board of directors, Mr V. E. Donald, presided over a fair attendance of shareholders. After the chairman had spoken tn the annual report, previouslj' published and the balance sheet. Mr T. Jordan pointed to the difficulties in trading occasioned by legislation that was consistently altering costs. The limit, they were told, had not yet been reached with regard to that legislation. They were also affected by outside conditions over which they had no control—not that they had any control over legislation either. Money spent in making the firm’s shops more attractive had been money well and wisely spent. The board of directors had been a happy farmily. They had differed, but they had agreed to differ cheerfully and one and all worked in the best interests of the shareholders. Mr Jordan appealed for the continued and increased support of the shareholders. The company had expanded deep ii|to the roots of the community. They paid a heavy wage bill, and it was getting heavier year by year. The sky was apparently the limit. The wholehearted support of the shareholders would minimise the difficulties of the company considerably. ' The --graduated land tax was a most unjust imposition and amounted to a bursting up tax. He appealed for a co-operative spirit of support for the company. After congratulating the chairman on his interesting address, Mr Bowden said the company had developed into a big organisation. They employed 300 staff members and the merchandise turnover was nearly half a million pounds. At the annual meeting three years ago, it had been hoped that the decks would be cleared bv Julv of 1938. Doubts had been entertained in some quarters as to whether that objective would be attained. He was now happy to say that the old deficit had been wiped off and the position so strengthened that they could now look forward to the dividend stage, which started on August 1. It was hoped that from now on the company would pay a steady dividend. Mr Bowden dealt briefly with aspects of the balance sheet and said that the. company’s shops should be made as attractive as possible. The first thing they had to do was to get the customers into the shops, and money spent in bringing the shops up-to-date had been a good investment. The results of the improvements carried out at Wellington had been immediately apparent. The first consideration of the firm was to hold the business it had and then to attract additional custom.

Mr F. Davey said he was not too struck on the balance sheet and would not take any notice of anything in it or in the report until he received a dividend for his money. He questioned the wisdom of the directors in building up reserves, but commended the work of the general manager, Mr J. H. Cunningham, in furthering the interests of the company.

Mr Donald: “The reserves are there to consolidate your capital. From now on your capital at least is secured.”

Mr J. G. Brechin said it was problematical whether such companies could continue to hold their own in face of the legislation that was being brought down to crucify them. Shareholders would have to consider whether the company should pay dividends or safeguard the capital invested in it. Those who criticised the actions of the directors should first consider that, in spite of the desperate and extraordinary legislation that was tending to break such companies down and making them incur losses, at least the preference capital was left intact. The company’s 300 employees were governed by awards and if, in making a fresh award, the Arbitration Court made a 10 per cent increase in salaries and wages retrospective to the beginning of the year, the company would be unable to pay a dividend at the end of this year. Action taken during the year had meant the safeguarding of the capital of the preference shareholders. He would like to see the day when the 6a shares would be increased to 10s and a dividend paid to the ordinary shareholders. That was not an impossible expectation. It was no use people saying that the W.F.C.A. did not give a good service. In the northern end of the district the company's shops were the most popular in town. Mr Jordan said that the directors had not lost sight of the possible payment of a bonus to ordinary shareholders, although it would involve a

four figure sum. There being no other nominations the retiring directors. Messrs Donald and W. Howard Booth (representing ordinary shareholders) and C. M. Bowden (representing preference shareholders) were declared elected. Messrs Sellar and Sellar were reelected auditors.

Mr Jordan moved a vole of thanks to the general manager for his conduct of the operations of the company during the past year. The company had every reason to be satisfied with their selection of a general manager. Thanks were also due to the staff for its work and loyalty during the year. Mr Donald endorsed the remarks of Mr Jordan and said that Mr Cunningham’s work was greatly appreciated. They had been fortunate to get such a man to follow on the good, solid work done by Mr Bowden. Mr Davey said Mr Cunningham was a man whom one could easy approach with every confidence. Mr Cunningham said no effort of his would be spared to bring the company to a state in which it would be able to return something to the shareholders. Unless something drastic happened, it was anticipated that the preference shareholders would get something for their money at the end of this year. He trusted that the shoreholders would support the company, which was up against it as the result of the graduated land tax and other taxes. The staff was with him wholeheartedly.