WAIKATO FARAMERS' COOPERATIVE ASSOCIATION.

Waikato Times, Volume XXII, Issue 1820, 6 March 1884, Page 2

WA IK A TO FA RAMERS' COOPERATIVE ASSOCIATION.

TO THE EDirOlt. Sir. — I have been very much pleased at the very able and persistent manner in which you have ads ocated the formation of a cooperative society amongst the farmers of this dihtiict. I was manager of a society in a Lancashire town for some considerable tune, and from my knowledge of the system T feel quite satisfied that a society formed among&t the farmers of this district would most undoubtedly be a success, if only a sufficient number could be got to band themselves together with a determination to make the affair succeed. And this can only be done, in my opinion, by appointing a good managing committee, and securing a tirst-class> uptight man as manager. The principle upon which a gieat many societies die carried on in Lanca shite and Yorkshire is this, vi/,. : — 5 per cent, is paid upon the subscribed capital, all other piofits are divided as a bonus on the amount of the purchases This ranges from Is to 2s in the pound. The society of which I was manager had a capital of £1000. We turned this amount over monthly. We paid 5 per cent on the capital, and Is (5d in the pound on the amount of the put chases. The profit made altogether amounted to 100 per cent, on the caiiit.il, besides cairying <a good sum to the reseive fund. The business was conducted on the credit system, but no shareholder, according to the rules., was allowed to go in debt more tlun two-thirds of the shaies he held. Some societies make it a practice of allowing half bonus to non-shareholders. This I consider a very crood plan, as it is' a great inducement to getting custom Now, if only a .sufficient number of shareholders (and what is w anted is not a few large shareholders, but a large number of small shareholder) who would become customers, and the .society cai ried on as in England, I think it would be a very. great boon, and put a great deal of money in the shareholders' pockets. Also they would be sure of getting the very best article for their money, as they certainly would not supply themselves with inferior goods. By this sy&tein not the largest shareholder but the person who spends the most money with the society would receh c the greatest benefit, which I consider the best plan. From my experience I know that co operative societies m England can purchase their goods as cheap as the best houses in the trade, merchants being always anxious to do business with them, as they are invariably safe. As a rule co-operative societies' working expenses are less than tho»e of private establishments. lam given to under stand that the society established at Taranaki does not limit itself to supplying only what the fat mer requires for his land, but supplies him with everything he needs. I think this would be a good plan for this locality. A person can become a shareholder in many of the societies in England by paying one pound, and the most they are allowed to take up is ten pounds. They can withdraw their money by giving a written notice. — I am, &c, Co-OPER.VTOK. Cambridge, March 4th, 1884.