INDUSTRIAL CO-OPERATIVE ASSOCIATION.

Waimate Daily Advertiser, Issue 26, 19 November 1898, Page 4

INDUSTRIAL CO-OPERATIVE ASSOCIATION.

The seventh annual meeting of th« above was held in the Library Hall last evening. There was a fair attendance of shareholders. After confirming the minutes, some discussion took place re the payment of £2 2s claimed by Mr A. M. Taaffe for extra services rendered in connection with the previous audit. Finally, on the motion of Messis Bannerman and Dash, it was resolved to pay the amount. The auditor's report was read. The dhectors' report and balance sheet were taken as read. The chairman moved the adoption of the reports and balance sheet, and this was seconded by Mr J. Sullivan. The motion for adoption was agreed to. \ Eight nominations were received for the three vacancies on the directorate, and Messrs j A. Philip, A. Logan, and J. O'Donoghue were \ elected. It was decided to have two auditors, and that their remuneiation be 10 guineas each • for the year. Four nominations were received, and Messrs \ Mansfield and Crawshaw were elected. * The usual vote to the chair terminated the meeting. The following we the report! : —

-DIRECTORS' EEPOItT. The past year has been marked by ft con* siderabie increase of business. The turnover, \ £7230, exceeds the total of the previous year i by over £400, but is not a sufficient indication I of the business done as compared with that of \ the previous year. Beductions made in the selling price of many lines durkig the latter . part of the period lessened the amount of tha turnover aB compared with the amount of goods handled. The amount of the book debts has increased, partly owing to new business, but to a gieatsr exttnt on account of customeis delaying their paymeati till tht " books were closed. The nett profit for the ye*ris £586 12s 9d, and the Directors recommend : (1) . That 8 per cent, interest be allowed '* ob paid-up capital. (2). That rebate of Is 6d £ in the £ be allowed on members' purchases ; ; Is iv the £ to be paid to shareholders, and 6d in the £ to be capitalist. (3). That any * balance left be added to the Keierve Fund. It should be distinctly undei stood that no rebate or interest will be paid or crtdited to any member till his or her account is Battled to October 31st.

auditors' report. We beg to report having made a thorough examination of all books and accounts, and vouchers for receipts and expenditure kept at the office of the Association, and find them correct, and \v« believe the balance sheet as presented to you to be full and fair showing the position of the Association's affaiis as at October 20th, 1898. As usual, we have kept a continuouc check upon all en{jiea from the counter slips into the ledger, and also a check • on all payments from the cash book to the ledger* The turnover, £7200, shows an increase of £400 on the previous year, which should be considered satisfactory ; but, at againbt this, we iegr«l to note 'a corresponding increase in the book debts. This would not be if members had the interests of the Association at heart, and kept their accounts better paid up. While upon this subjeot we would call attention to the increase in bank interest on overdraft, chiefly dv« to the same cauie. We are pleased to note an increase in the number of shareholder*, and trust with the new settlements now making in th« district, that next year the membership will ba far larger. We have also to thank the staff for their willing assistance to us in all matter* appertaining to this audit.

A. M. Taaffe) . <!•♦«.- Gbo. Botd JAudlto»J Audlt0 »- In moving th« adoption of the report and balance sheet, the chairman said :—": — " I am pleased to say that from a business point of view the past, our seventh year has been the best the Association has yet experienced, there being an increase of between £400 and £500 in the turnover, as compared with the total for the previous year. There is only a slight increase in the number of shares and amount of paid-up capital. For various reasons some shares have been forfeited dm ing the period. The reserve fund has been augmented by balance of profit at October 20th, 1897, and premiums on new shares, in all £190 13s 2d and now stands at £604 13b. This reserve is the strong point in the Association's finance, and is equal to -7s per share. There is nothing alarming in the item sundry debtors. Towards the end of the period, several very good accounts were opened, and enlarged the amount of the book debts. Previous to the balance of October 20th last year, a strong and successful effort was made to get customers to pay up with the result that very little money came for toma time after. If customers had been as puntual on the present

occasion, the increase would not hay« been more than might be caused by the extra business don«, for consideiable sums w«re paid in bet-ween the closing of the books and the end of the month. Full piovision has been made for all bad and doubtful debts, and the management have every reason to believe that the outstanding accounts as shown will ? ultimately be obtained. The trouble is that the capital is too small for the business done. Tha whole -working capital, including the reserve fund, is £2222 15s lid, and has been turned over nearly thiee and-a-half timei \ during the year. There are, however, a num- [ ber of shareholders who are always behind with their payments. Their account stands at about the same amount each balance. It is owing to this course we have to pay £8 17s 6d bank interest. As we remarked two years ago, the Association would be better without their custom. It will be seen from the report tbat we recommend that «, third of the rebate should be capitalised. There are three ways in which this may be done. Membeis may take up new shares, they may pay up any uncalled portion of the shares they now hold, or it may be left attached to their present shares and bear interest. Due notice will be given when the amounts of rebate and interest *re pajable.