WAIRARAPA FARMER'S COOPERATIVE ASSOCIATION, Ltd.

Wairarapa Daily Times, Volume XIII, Issue 4117, 19 May 1892, Page 2

WAIRARAPA FARMER'S COOPERATIVE ASSOCIATION, Ltd.

Meeting of Shareholders.

A statutory meeting of shareholders in the Wairarapa Farmers' Co-opera-live Association, Limited, was held in the Temperance Hall, Masterton, yebterday (Wednesday), A .large number of shareholders were present, the chair being oijoujpedby the Managing Director, Mr M. Oaselberg, The Chairman explained that the meeting had been called in accordance with section 49 of the Joint Stock Companies' A.oti The object of the meeting was. to give the shareholders an opportunity of knowing what ;was being done and to confirm the action of:the Direotors. The;-Association had been barely four months in existence, and it would therefore be impossible to present 'a balance-sheet. It was intended to take stock about the first Or July, and they hoped to declare a dividend about September. They .would, from the prospectus, , aee the nature ot' the intentions of the Association. They would all be aware tliat'he had-conducted' his' business in Masterton for twenty-five years, and . that with a considerable degree of success, and' he had decided to'form his business into.a Co-operative Association, "Ete bad consulted a number of his friends before leaving for England and. advised them to hold their hands for his return. Some had dono so, but others had started on' their own account, He was sorry that this was so, but he believed at, the same time there was roam for 5 all, Wlien'in England he had observed the vast strides made by. CO-OPERATIVE BUSINESSES, and he had thought seriously that unless hey started a .Co-operative bus ! ness in Masterton others would do so, He had therefore resolved to take the bull by ihe burns, By eon. verting his business into a company he was losing £ISOO a' year, The object of ordinary companies was to divide the profits pro '■rata amongst the shareholders, He had made ins quiries in England of the newest and most modem form of co-operation and had found that the great factor in successful co-operation was the consumer. To have a company in whioh consumers were not permitted to participate in theprofits was to have a sham. The present company was therefore framed on the most modem basis. It was their intention to purchase goods at the lowest possible price; not to undercut other people, but to give a shilling's value in a shilling's worth of goods. The Association was in a position to buy goods at the cheapest possible rates in the best markets of the world, The Direotors proposed that seven per cent should be paid on the paid-up capital, three per cent set aside for a reserve fund, and five per cent returned to shareholders on account of the purchases madeby them during the year, One share in the Association would entitle the holder to all the benefits named. They had ample capital so far, and were not likely to require more for some time. It was only natural to expect

HOSTILITY FBOSI OTHER BUSINESSES. At the same time they wished fair' play. "When tbe Association was formed, stock was taken, and everything reduced to cash value. Mr Eirkcsldie, oE Wellington, had gone through the drapery department on behalf of the Association" and "had reported that, the goods :were ot the best value, goods that could not be imported and sold at Wellington at a lower rate. With regard to the

BOOK DEBTS, . an agreement had been signed that the lute firm guarantees to the Association every shilling owing, . Then the premises which were sold to the Association. were sold uridet/ the Property Tax valuation of 1889. This entailed'a loss to himself of some few thousand pounds. As, however,he was a shareholder in (he Association, his loss was more apparent than real. Mt Bell, the solicitor of the Association, had told them that they ttiast first start a Joint Stook Company with no less than seven shareholders, This had been done, and four directprs elected: A company was af . i SHAKE MSI . * ;-J' was'notf" about ten yardg in length, and was composed of four hundred, shareholders, lie had done most of the canvassing himself, Most of the leading residents in the district were shareholders', and applications . for shares were daily being received. Only £1 of the £5, shares was being caljed up_. :; Willi regard to

-i IV i.-, j: THE DIREOXOHS, overtures had been mndo to those gentlemen whom he felt sure had an interest |in forming an association. Several of the Directors were in favor of an association when he was not. But when he was convinced it was advisable to have a company ho consulted these settlers, The three first Directors' had taken up a hundred shares each, and after examining the books were satisfied with the profits of tho business, ' Tlie present Directors represented about £15,000 in shares,

TUB COMPANY was formed with 20,000 shares of five pounds each. Of this number 10,000 shares had been taken up, with a subscribed capital of about £52,000. Over £BO,OOO had been paid up, and in round figures £20,000 ramained as uncalled capital or a reserve fund. The' Association had quite outgrown his Anticipations. The ready response of the public had en. abled him to realise that he had their fullest confidence. He bad heard that the capital of the Association would be swallowed up : in salaries, but he would point out that he had signed an agreement to devote tli9 whole of his time and energies to the - Association for the sum of £6OO a-.year for ttft term of five years. They would agree with him that this was not toomuoh. His mm We're'recoiving the' same, salaries, as other employes.., Mr Mackintosh;", whom they 'sill knew so Veil, and favourably, l had ken 1 agpoihted Secretary? -An 'expert (Mr Batihani) had also been appointed auditor. The Associatibh had been enabled to make vdry...... . , FIN ANOI ALAR RAN G E JIBNTS with their Bankers By paying oasli for their 'goods' a great saving. • The Association was m a position to buy the: best of gogds in tjie very best markets. ■'•''Wiflggard tf) of business, .'returns iypr'p niadbVd before tho Directors at each meeting from the various businesses. A clear

ISCBB4BE Of riFTgEN PER CEXT, on the previous bueiuesa of the Association .had,been,shown .for the first quarter. ' Tbe piece of land on which the" Association's granary..waferiiSteJ had been purchased from Mr James Wrigley, and they had also purchased business of Mr Birnio in Pahiatua On favourable-ternis, feeling that it necessary to establish a

foothold- in the Forty-Mile Bush. Posseaaion had been taken of the premises on the 2nd of thiß month, and the business wsb now in full swing. It was not the intention of the Directors to further extend the business till afier the presentation of balance sheet. The Direotors hatjjfc determined to make extensive altera'' tions in Greytown to oope with the inorease of business. In concluding he intimated that he would be glad to answer any questions which might be askftd with regard to the bufjiess, ' Mr Dalrymple: Did yoiMen ia England make enquiries the preparation of think it would be worth while for the Directors to establish suoli an industry, it would be iuost profitable ' Mr 1 Oaselberg said be hid made enquiries in England with regard to this industry and found it very profitable, • The, matter would be .further considered' by llie Direotors and information prooiired.v' Hewas glad Mr Dalrymple' had brought the question up, as it was worthy of consideration, ' ,ilr, A. Walter .proposed that a hearty vote of thanka and confidence he passed to the Chairman' aud the Direotora. for. their eervioes., Ho con* sidered that the Association to in ut very satisfactory position.

: Mr Natusoh : Is it not usual aL .* the first meeting of the to oonfirm tho action of the Direotors or adjourn to the annual meeting ? !. - The Chairman explained that , the Directors would be eleoted at the anuual meeting. He would move that this meeting stands adjourned till September 21st, • Mr Jiatusoh seconded.

The Chairman said it had been reported that the Direotors had been bribed with £oo each to join the Direotorate. He hud muoh pleasure in refuting this statement. The Directors were being paid .550 per annum for their troublo, butonlywith the approval of tlie shareholders,

Mr Donald Donald stated that the question of' remuneration had never Wore been suggested to him as a Direotor.

The resolution ofthe.Chairmanwaß tben putand carried. The motion oi Mr Walker was seconded by Mr Harvey and having, been spoken to in approving terms by Mr Dalrym : |ilo, was put and carried unanimously, . ' . . ~ The meeting then adjourned.