NORTH NEW ZEALAND FARMERS' CO-OPERATIVE ASSOCIATION.

Waikato Times, Volume XXVII, Issue 2190, 22 July 1886, Page 2

NORTH NEW ZEALAND FARMERS' CO-OPERATIVE ASSOCIA TION.

TO THE EDITOR. 'Sir,— The appearance of a leader in your issue of yesterday criticising' the action of the directors, opens the door for correspondence. The circumstances briefly are 'as follows :— At an' extraordinary meeting of the shareholders recently held at Hamilton, a statement was laid before directors by the manager, Mr Garrett, that generally the -affairs of the association were in a better state than existed at the time of the annual meeting held at the same place five months before ; that the branches accounts were working satisfactorily, and, notwithstanding the business returns had fallen off, yet, taken as a whole, .they were'now j clearing their way. This certainly was an j improvement as , contrasted with the balance-sheet submitted on February 7th last, and no question was raised as to the future of the branches except that they must be worked as economically as possible, and that the produce business arising out of them should be well looked after at the' Auckland agency. The association finance was in a hopeful state, the overdraft at our bankers was stated in round numbers at £1500, towards cover of which the bank manager held bills valued at £1300, which, if discounted, would reduce the overdraft to, say, £200, and ■no idea arose as to difficulties of an insuperable character in our immediate future operations. Hence J no word was said at the shareholders' meeting in reference to the disposal of branches. But only two or three days after this meeting, telegrams were received from Auckland by the chairman (Mr Graham) and the subscriber, that our directors there found it necessary to convene an immediate meeting: .of the management on urgent business. On arrival in Auckland we found the nature of this business to be a difficulty with the manager of the Union Bank of Australia, which substantially was this : That his instructions were that no additional accommodation would be granted to our association, and that although the Bank might be willing to take charge of the account, it could only be on the understanding that future trading would be kept within our own capital. He also referred to the fact that evidently some shareholders were not keeping faith with us, and that if the recent calls had been promptly paid, there would be no need to rely on our banker, : The position, therefore, is this : — Our asso- ! ciation, through its manager, has entered into transactions for the trade of the coining season ; there are current liabilities falling j due from time to time, which if not pro- j vided for would produce immediate col- J lapse ; that £2000 of calls remain unpaid ; J the Bank support is withdrawn, and the | directors are compelled to sell the branches a? the only alternative, to enable the association honourably t? meet engagements. I may further state for the information of j shareholders, that Mr Garretts instructions are to contract the business in Auckland into the smallest limit, to get in all moneys due to the association, and so to shape the course of events that at the next annual meeting the business of the association may be in so compact a form that it will be an easy question for shareholders to answer, whether a further bid shall be made for success, or go into liquidation. — I am, yours truly, Joseph Gane. Ohaupo, July 21st, 1880.

Mr Windsor, (of the firm of Kempt and Windsor, surgeor s dentists), arrived in Hamilton yesterday, and can be consulted up to Wednesday next. Mr William Kincaid. Cambridge, having leased the premises lately occupied by the Melbourne Drapery Company, nolifies in our advertising columns that during July and August he will hold a cheap cash clearing sale.