CIVIL SERVICE SUPPLY ASSOCIATION.

Waikato Times, Volume XXXII, Issue 2602, 16 March 1889, Page 2

CIVIL SERVICE SUPPLY ASSOCIATION.

The annual meeting of this Association was held in Auckland on the 28th ultimo, when the annual report showed that, after overcoming many early difficulties, most, gratifying results were now lining obtained. The Chairman, in m i;i; the adoption of the report and b.i1,.u0 -shoot, said : On this our first auiiu-il iu.»,sting I think it is appropriate tint 1 should review the ri<e ami progress of n-ir Association. Most of you are aivar \ t!i if, it was promoLod by Mr G. White on tli-.s principles of cash pay, which wo all know to be a sound one. The various shareholders took shares from very vari ms motives. First; The principle was sound, and its introduction a public benefit. Second : It would be more economical for themselves, and they would benefit in that way. Third : From a desire to assist Mr White 111 his undertaking. Soon after commencing operations your directors found that the manager was quite as ignorant of the details of the business as the directors (who did not piofoss to know), consequently they dispensed with his services. Your directors then continued the business under great disadvantages, but soon found they could hold their own. After the half-yearly audit, when the accounts showed a loss of £249, under your instructions they persevered on until an opportunity of extending operations presented itself, by taking over the business of Messrs Earle and Montgomery, which they did on favourable terms, after a careful examination of their books, stocks, etc., etc., thereby securing the services of Mr William Earle as trade manager, for which, from his wide experience, he is eminently (itLed. Shortly after negotiations were opened up through Mr Earle with Mr Gavin Wallace, and successfully carried out by the purchase of his business as a going concern, retaining the services of Mr Gavin Wallace at that branch, The present results are that our weekly sales before wore £110 per week, and the past ten weeks havo averaged £1,104, showing a net profit for the halfyear of £255 18s i)d, exceeding the loss on our first half by £(! 13s lid. Both Messrs Earle and Montgomery and Wallace have taken an interest in our Association. 1 think the objects and ainn of our Association are bettor understood by the general public. Thnyaieby the combination of a large number of small shareholders in a position to purchase for cash from producers, manufacturers, and importers at lowest cash current rates the best articles possible and to distribute them to cash buyers at a percentage that will give a fair return on the capital employed, pay off preliminary expenses and provide a reserve fund to meet contingencies in the future. The business is increasing so rapidly, as shown by the average amount of sales weekly. £1,104, that more capital is required before we cm make any further extension, and your directors, now there is almost a certainty that we shall bo able to pay half yearly dividends, have full confidence the present shareholders will increase their holdings and invite their friends and neighbours to take shares and thus carry to a successful issue an undertaking founded on sound principles, and which has met and surmounted unforeseen difficulties at its formation. To show my own confidence in it, lam prepared to take shares equal to one-tenth subscribed during March, not exceeding the limit provided in our articles. We require more shareholders to qualify as directors, viz., 100 shares. As it is now, you only have Hobson's choice, and it would be a relief to the present directors if two more were appointed, Your directors have during the past year given their services freely, seeking no remuneration, but in the future, if operations are successful, they hftve no doubt a fair recompense will be voted. I will now make a few remarks on our balance-sheet and profit and loss account. At our last meeting the capital account stood at £1,108, now £1,811. Of our open or monthly accounts, £1,053, we have paid the greater portion. Deposit accounts, £1,072 10s 9d, amount received on deposit at current rates of interest. Business purchase account—This is the bilance due to Messrs Earle and Montgomery and Gavin Wallueo, payable as shares are taken up, and has been carefully reduced since the close of our year. Stock (£5,051) has been carefully taken, doubly checked and valued at cost prices, and is all good saleable stock. Furniture, etc. —A large proportion of this was taken over at favourable valuation from Messrs Earle and Montgomery, and G. Wallace, loss than two months before closing our accounts. Our own fixtures have in no way depreciated, many improvements having been paid for out of current revenue. The same remarks apply to the next item for carts, horses, etc. Preliminary expenses £223.—This amount the directors propose to reducc the next halfyear, as the greater part has been recently incurred ; and congratulate you on having during last three months of the year re couped all loss previously made, viz., £21!). Sundry debtors, £403. —Of this sum of £253 has been received since closing our books ; they consist mostly of produce accounts for salo, and against which goods have been supplied. £255 19s fld represents a sum cleared in three months after paying interest on deposits on 14 per cent, on our present capital, £074 of which has been subscribed during the past two months. I think the results I havo put before you today will be as gratifying to yon as it is to your directors, who have spared neither pains nor time to bring about such a success. I now move the adoption of the report and balanco-sheet.