The Waikato Times AND THAMES VALLEY GAZETTE.

Waikato Times, Volume XXIII, Issue 1920, 25 October 1884, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE.

I' ijiia! and exa< t justx cto a l l men, Of wli iisni'vcr st.ito or persuasion, religious or politii.il. Here shall tin. I'rcss tin* People's rigV maintain, Un.iwcd by influence and unbnbcd by gain.

SATURDAY, OCT. 25, ISB4.

The experience of the Taranaki Co-operative Society sho s how ueees.->ary to the success of .such institutions is ellicient management. The Association under notice was established, liko its follow in this part of the Colony, because its want was felt by the farmers on this West Coast, and its inauguration was the signal for more than the usual amount of trumpet blowing. But bright as wore iis prospects at the opening, the result of the last year's working lca\es the piomoteis disappointed and disheartened. An enormous profit — seeing that the concern aimed at supplying its shareholders with commodities at the lowest possible price — was not of course to bo expected, but neither, on the other hand, -,vas it anticipated that a large deficit would greet the members at the goneral meeting. The following extract from the directors report will clearly oxplain the pos'tion of the society :— " In presenting our annual report to the .shareholders wo show a great increase of business. Our turnover for the last year was «t2<),2Go ngainst £7, -5 10 for the previous nine months, and we are sorry it is noc more .satisfactory as regards profit. Of the A20,2fi5, .£17,713 w,is for goodb sold, which includes £J, 700 for butter. Our loss (£017) has been incurred partly through tho A\ino and spirit business. Clothing has also been a great loss to us We have held stock to a Li'-ge amount (about £1,11)0); and a*- this has not been selling, wo have lost considerably through damage to goods, inteie.st of money, and cictdit. Uur other stock had b<;\o!.il lines which have been sold at a los*. But our .stock on hand .it present, with tho exception of clothing, is all fresh and -well bought." This extract demonstrates that (.ho management, whether of tho diiectois or of tho managers (of which the Association has had tluoe) has blundered sadly. To a }oung association trading on a capital of loss than than three thousand pounds (tho nominal cipit.il is £23,000) the loss of £1000 locked up in unsaleable stock is .i \ciy serious matter ; but this is not all. Tho adoption of tho wme and spirit and drapery businesses involved tho employment of special labour, which must be paid for at a pretty high rate. Whether the directors of the Taranaki Society employed labour ot this description or not avc do not know but if, they did not, tho expense would not bo decreased, though it would eh mgo its name and take that of " loss." But the directors, or the managers appear to have committed other blunders quite as grave as that of soiling grog and slop clothing. They neglected to buy in the eh capes- 1 market. At the general mooting the other day, one of the shareholders slid the .Society owed its present unsatisfactory position to the fact that they had oonc to the wrong market to buy their goods. When the (Society was formed, it was understood they wore to import their goods diiect, but that had not boon done in a single instance. He blamed the directors for this. Exactly so. If the directors wont to the local wholesale market, the shareholders would have fared better by going themselves to the local retail market, where, in addition to getting what they wanted at about the same pi ice as that demanded by the Society, they could avail themselves of the advantages of the credit system as well. Even Co-operation ought to show tho prospect of a clear benefit before it can lay claim to support. These facts, gloomy as they must appear, need not, however, discourage tin; friends of Co-operation. The shortcomings of the Taranaki Association are traceable to no inhcient defects in the principle of Co-operation, but to the ignorance of those to whom was entrusted the management of affairs. Where the present management has failed it is much more than probable others would find success, and it is to be hoped tint our agricultural friends on the Plains will notbedis-coui-iged by their present ill-luck, but will persevere along a road which must sooner or later bring them to a more prosperous condition. Fortunately for Waikato and the North, the management of our Co-operative institution has fallen into good hands. Its early steps were guided by hard-headed business men, and its progress since has been attended by a careful and experienced manager. These men^ have steadfastly refused to enter* into any branch of the business which seemed, so to speak, illegitimate. Every description of seed or manure, every kind of implement required for the tillage of the farm, the association has laid itself out to procure and supply, but its operations cease here : it has not meddled w ith the whisky trade or dealt in " hand me down " suits of clothes. It is quite possible that the farmer requires protection against both tho seller of wine and spirits and the vendor of ready-made clpthing, but in engaging in these trades ! the association would have to compete in a business already greatly "over done, a^d in which theiprpflts, have ,been cut down to '/a .» minimum. 'Further than this,,. 'our Northern*)

practicable, b »ught in the cheapest maiket, and the unsatisfactoryquality of its v very few local purchases has r alsiiclantly .shown the wi'sd.bih of the coars.e' : pursued. We do s not expect. to see. a very large profit at the ejnd of- the year : the association has had a great deal of up-hill' work to accomplish, work which will not have to be gone over again : but we do anticipate a very gratifying revelation when the directors operi their mouths.- That the transactions of the past year will warrant the shareholders in going on is a mattpr about which no doubt exists at all. And what can be done in the Northern portion of the Island is surely susceptible of accomplishment on the Waiiuate Plains.