Waimate Industrial Cooperative Association, Ltd.

Waimate Daily Advertiser, Volume III, Issue 123, 2 November 1901, Page 3

Waimate Industrial Cooperative Association, Ltd.

Tho tenth animal mooting was held in the Foresters' Hull on Wednesday evening. Mr A. Bitcbener, Chairman of Directors, presided, and there was a fair attendance of shareholders.

The Report and Balauc9-sheet were taiceu as read.

Iri moving tbo adoption of the report the Chairman said the tenth year of the company's history, like that of thodo preceding it, had been marked by a large increase in business, the turnover, some £12,500, being an advance on that of the previous year of about £2OOO. Advance in prima cost of many lines of goods in which the company dealt and no corresponding advance in retail price, together with the disproportion between the small paid up capital and the turnover had resulted in a smaller profit as compared wish some previous years. Nevertheless, the netfc result gave a profit of quite 13 per cent on the capital invested. This being the close of the company's first decade, notice was taken of what had beon achieved during the pariod. The paid-up capital at the end of 1802 was £IOO, now it is £2OOO. The lirst year's business was £2300, lis; year's £12,500. The natt p'ofk for the period had been over £-16j0, the bilk of which would bav3 gone to swell private profits instead of remaining with consumers, had not this company been formed. The decision of last annua! meeting to increase the registered capital nad been justified by the event, as the number of shares subscribed to date exceeded the original capital. The directors had reason to believe that the premium of 5s per £L share deterred people from taking up new shares. The difficulty was the large amount of undivided profits represented by the Keserve Fund. To reduce or abolish the share premium and leave the, reserve intact did not seem fair to those who had bsen obliged to leave their money in the business. It was suggested that part of the reserve might be converted to share capita], and disbursed among the members in proportion to their purchases during the time the fund has been accumulating, in which case it would of course be proper to return, in some form, to the holders of premium shares, the least part of the premium paid.. Whatever course might be followed in this matter it would be necessary, in the near future, to largely increase the paid up capital in order to take advantage of the purchasing clause in tho lease of the premises occupied by the company. The lease is now a valuable asset, which every effort shpuld be made to conserve. The directors recommended that 8 per cent should be allowed on paid-up capital and that a sbi.ling in, the £ be allowed on members' purchases for the year, any balance of nett profit to be added to the Beserve.

A long discussion took place on the propssal to convert part of/the Reserve Fund j.nio share capital. The view of the directors that the fund was really undivided profits •which belonged of right to the , pucehating meatberg, and that any

division should be on- a basis oi member's purchases was strongly supported. On the other hand it was contended that, as the sum was - part of the capital it could not be interfered with, or if so, only on a basis of the number of shares bold ; Eventually ifc was resolved to hold the question over till ifc was ascertained if tbe fund could be legally dealt with as proposed by the directors, and in tho meantime to reduce the premium on shares to Is per share. It was decided to allow 8 per cent interest on paid up capital, and return the balance of the nett profit to members as rebate on purchases. This is expected to give about Is in the £. Five candidates wero nominated

for three vacancies on the director-

ate, and the ballot resulted in the election of Messrs A. Logan, A. Philip and J. Sullivan. Messrs J. Oawshaw and E. Bannerman were proposed for re-election as auditors. Mr Bannor_jin declined to stand and Mr G: 11. Graham was elected in his place. lb was resolved to hold a general meeting, of the company within one month to revise the articles of association.

After lasting nearly four hours the meeting terminated with a vote of thanks to the chairman and directors for their services.

At the directors' meeting, held immediately after tho meeting of shareholders, Mr A. Bitchener was unanim.msly chosen chairman for the eleventh time in succession.