FARMERS'ALLIANCE

Wairarapa Daily Times, Volume XII, Issue 3826, 3 June 1891, Page 2

FARMERS'ALLIANCE

Meeting at Masterton.

About thirty settlers met in the Masterton Drill Hall last evening to hear the objects of the New Zealand Co-operative Farmers' Alliance ex* plained. The Chair was occapied by the Mayor (Mr 0. A. Pownall), who briefly introduced tbe Provisional Secretary, Mr Alexander Jardine. Mr Jardine apologised for the absence of Mr T. K. Macdonald, M.H.R., one of the Provisional Directors who was announced to be present, and stated that that gentleman would meet the settlers of the district on some future occasion. He then proceeded to explain the objects and working of the Association. He pointed out that the colony had an unlimited supply of dairy and farm produce, and there was no market I within the colony. To supply this want the Alliance had been called into existence. It hoped to unite the farmers of this part into one body and obtain good markets and better prices for all classes of farm and dairy produce. To show the advantages of such co-operation he had only to refer to the Association of Tiniaru, Chnstchurch, Marlborough, and other parts. The mode of working was to sell in the dearest market and buy in the cheapest. The advantages of the Association would be threefold, Ist, to obtain good markets and : first-class prices, 2nd, to receive the goods and articles they require for themselves and their families at cost price, and 3rd, to divide the profits among the shareholders. The part of the country to be embraced within the operations of the Aosociation was the south half of the North Island. The Association would be managed by a Board of Directors, each district being represented on that Board. There would bo twenty or twenty-five directors,' who would nominate an executive of three or four to superintend the daily working of the Association under a competent manager. Agents and depots would be appointed in all the principal towns. The produce entrusted to the Association would be well looked after. There would be no cry of burst kegs or broken packages. Cool and plenty of storage would be provided for all classes of produce. Each consignment of produce shipped would be accompanied by an expert to attend to them on the voyage. A responsible agent would be appointed in England to dispose of the goods. The prices for produce at Home varied very little. It would be the endeavor of the Association to reach the working centres of England, not confining itself to London. Agents would be appointed who would travel from city to city and dispose of the goods. By these means the best markets would be obtained. An important object of the Association was to make' advances to its members upon real and personal securities as may be approved by the Directors. The Association hoped to improve upon the existing state of things, and liberal advances would be made upon these consignments. The Directors would be guided by their manager. The rates of interest charged would be at the lowest market rate. The Association did not seek to make a profit out of its transactions. Advances would be made on real property, or on stock, or grain, at a correspondingly low rate of interest. They would purchase the class of goods wanted by the shareholders, direct from the manufacturer, in the cheapest market, and hand over the farmer the goods he wants at the prices which the Association paid for them. No shoddy or second-hand goods would be sold. The Association would require the co-operation of every farmer in the district to attain the objects it desired. He could not help feeling that the Associations recently formed in Hawkes Bay and on the West Coast were for the benefit of a few merchants. This Association, however, had nothing whatever to do with any private business, though liberal offers in this direction had been made; The nominal capital would be L 250.000, in 50,000 shares of L 5. It was not expected that more than L2 would be called up. In conclusion he commended the Association and its objects to the careful consideration of all farmers in the district.

Mr Renall asked what lines the Association would take with regard to the Loan and Mercantile Agency Company. Mr Jardine explained that the Association was formed upon the same lines as the Canterbury Association. The lines of the Mercantile Company ex:eeded in working expenses muoh more than the Association contemplated. The Mercantile Company had objects similar to this Association.

Mr Renall stated that the Mercantile Company made advances to the farmers similar to those proposed by the Farmers' Alliance. The great boon to the farmers would be the advances. By 3uch an Association as the one proposed, the farmers would be enabled to hold over their produce for a rise in the markets. At the same time they had to take the risk of a depression, which could not be avoided. The chances were, however, that under the Alliance the farmers would make a profit on the whole.' He did not see why the present Association should not flourish. He thought there were sufficient honest men among the promoters to guarantee that the concern would be safe. He saw, however, an absence in the prospectus of anything compelling the Directors to hold a certain number of shares in the Association.

Mr Carman, one of the Directors, stated that he would like to refer to I Clause 11 in the prospectus. There j was nothing there which guaranteed advances to farmers at a lower rate of interest than they were paying at present. He considered this should be the main objeotin the Association. He saw no reason why a number of small settlers banded together should not get money in the London market on the same terms as large run-l holdera.

[ Mr Jardine explained that the Association would endeavour by the banding together of farmers to make advances at a lower rat 9 of interest than that obtained by the large runholders. It was for the Directors to decide vthat the rate of interest would be. The Loan and Mercantile Company made provisions for the wealthy to the disadvantage of the small farmer. They expected that at least 20,000 shares would be taken up, and as they thought that £2 per share would be all that would be called up, they would have £40,000 to work the concern. They proposed to call up tte £2 in instalments. All profits, after working expenses, would be divided amongst) the shareholders.

Mr Carman said what they wished to be relieved from was the payment of 8 pec cent to the Banks. ■ If this Association had to go to the Bank for money he could not see how they could make advances at cheap rates. Mr Jardine explained that the advances would be made from the £40,000. He then referred to the workings of the Canterbury Association.

Mr Carman asked if it wis the intention of ths Association to take up the retail trade in groceries and drapery. His own impression was that it would not be advisable for a large Association to take up such a trads.

Mr Jardine replied that farmers requirements such as machinery, fencing, grass seed, etc., would be provided by the Association at prices which they could not be purchased loca' y. He could not say whether the Association would in the future adopt a retail business in other goods.

Mr Renall could see that the work-, iligs of the Association would be similar to those of the Loan and Mercantile Company. He could see no other way of getting out of the present difficulties uuder which farmers now labourer than by cooperation. He would move a hearty vote of thanks to Mr Jardine for his address that evening. (Cheers). Mr Jardine, in acknowledging the vote of thanks, stated that the Provisional Directorate was still open, and he would be glad of the names of persons who would like to tal-e part in the formation of the Company. Mr Macdonald and himself hoped to visit the district again at no distant date. The Chairman stated that he considered the formation of the Association would be a boon to -the district. At the same time he did not see that it would be the success anticipated until local committees were formed to canvas the district, instead of individuals. Unless this was done he did not-see how the Association could receive that support it deserved.

Mr Jardine, in answer to Mr Renall, stated that he expected Mr Macdonald would be in Masterton in about ten days. Proper notification of the meeting wouldbe given, when it was hoped there would be a good attendance. Mr .Renall expressed his sympathy with the remarks of Mr Pownall, and on his motion a vote of thanks was passed to the Ghaiaman, whioh tarminated the proceedings.