CO-OPERATIVE SUPPLY ASSOCIATION.

Gisborne Times, Volume XXVII, Issue 2604, 11 September 1909, Page 2

CO-OPERATIVE SUPPLY ASSOCIATION.

: ' ... V . . :■ \ ' HALF-YEARLY MEETING.

The half-yearly meeting of the Poverty Bay Co-operative Supply Asssociation, Ltd... was held last night in Townley’s Hall. Mr. J. R. Kirk presided, and there was a large attendance, over forty members being present. The secretary (Mr. W. R. Brady) read the balance-sheet and the report of the committee of management; which stated that since the last meeting the share capital stood practically unchanged, very few new shares having been taken up. The total subscribed capital was' £996 13s lOd. The net profit for the half-year was £2l 11s 3d, and discounts to the amount of £lßs lOd had been allowed on cash purchases v which discounts were equivalent to a dividend of like amount. The total net profit for the year was £96 6s sd, out of which the committee recommended a dividend of 6 per cent, on paid-up share capital, which would absorb about £6O. The balance of about £36* they ■would recommend to be carried forward. Notwithstanding the satisfactory result of the half-year’s working, the committee were of the opinion that members should have an opportunity of expressing their views as to whether the Society should further continue its operations, or whether, in view of the fact that the assets would realise on sale such an amount as would now give to shareholders a substantial profit, the time had not ■ arrived when the Society should go into voluntary, liquidation. The objects of the Society were established, said the report, had either been accomplished or were not being observed. The price of groceries had'’been brought down, the cash system was not observed, and the man - ager (Mr. Brady) had given notice of his. intention to resign, having made ifrangements to engage in business his own account at Milton. The auditors (Messsr C. G. Piesse and L. Redward) reported that the books of the Sccietv had been kept in a better manner this last half-year. The business of the Society had not been quite up to the turnover of the previous half-year. They were in accord with the directors in recommending a dividend of 6 per cent, per annum.

- The Chairman, in moving the adoption of the report and balance-sheet, said that the year’s working was, on the whole, satisfactory, and the directors could have recommended a dividend of 9 per cent, had they it advisable. The turnover on grain was chiefly responsible for this satisfactory balance-sheet, there having been very little profit on groceries. Mr. Kirk remarked that the committee had been: working hard for the Association. Could he say the same of the members? He remarked that the object of the Society would be entirely gone if the shareholders left it to outsiders to keep the concern going. ■Referring to Mr. Brady’s resignation, Mr. Kirk said it was largely owing to the manager that the Association occupied. such a sound position, and could show a profit after a bad year. .The replacement of Mr. Brady had been left till after the meeting. Mr. P. W. Lawton seconded the chairman’s motion, and the report and balance-sheet were adopted. The Vice-President (Mr. S. W. Oxenham) and Messrs Leslie, Lowndes, Akroyd, and Reid (committteemen), and Mr. Piesse (auditor) retired, but offered themselves for re-election.

At the suggestion' of the Mr. Oxenham was re-appointed, and on the motion of Mr. T. G. Lawless, the committee were again elected, and Mr. Piesse re-elected auditor.

The question of winding up the Society was then dealt with,_ Mr. Kirk asking his hearers to consider whether they were dealing with the Association and whether they wanted it to continue.

A letter was read from Mr. Oxenham strongly protesting against any sale or liquidation of the "company, and asking the members to hold on. . The Chairman said that Mr. Akroyd. who was also absent, was, however, of the opposite opinion.,. Mr. Kirk went on to point out that the profit of the last six months on the £IOOO capital worked out at only 2\ per cent. Would any of his hearers be content to leave £IOOO invested at such a poor rate? Of course times had been bad, but the change of management might not increase the dividend. A very little! would turn the small profit into, a loss. He did not think the profit came from the groceries, but thought the • Gisborne people were buying these at bed-rock prices. Mr. Brady had told him that he did not believe that a third of the shareholders dealt with the company' (Shamq.) r hy should the management give up time for people who would neither sell their shares 'nor deal with the Society ? With' regard to the object of the concern, jt could now fairly he said that the price of groceries had been brought down. ’ ’ - - . Mr.. Kirk pointed out that if the assets were jealised the shares would p robably realise double their original value—-in any case the return would be a good one. He concluded by remarking that there was no further necessity under the circumstances to continue the Association. . He proposed that the Society should determine to hold a special meeing for the special purpose indicated in his remarks. Mr.' File, on behalf of another shareholder having 60 shares, seconded the motion, and expressed the opinion that the low prices of groceries had been brought about as much by competition as by co-operation. Mr. J. H. Hall, in opposing the motion, said it struck him very forcibly that there was some evil influence behind this. (Laughter.) A co-operative society .was not a concern for share speculation, but for the public good. However, the Society needed some reform, and amongst other things wanted new premises. Again, why didn’t the Society launch out in other directions, as there was so small a profit on groceries? It would be wrong to wind up the affair just because it "happened to be prosperous enough to return a good profit on the capital. (Applause.) Mr. J. R. Jones advocated the disposal of the business, and regretted

that it was not possible to dispose of the matter that night. A shareholder: 1 think if we can ; get 6 per cent, on our money we are 'jolly fools to sell out. (Hear, hear, and : laughter.) ■ Mr. Lowndes objected to the winding up of the concern, saying that shares had been advertised for, which showed that they.must be pretty valuable. ! Moreover; if the shareholders would' give them a chance they would launch out in other lines, < Mr. Lawton said that six per cent, was not good enough as a trading profit. . , . ... After further discussion, during which tlio credit system was condemned by one or two members, the chairman replied, and the motion was put to the meeting. The proposal was carried. On the suggestion of Mr. Matthews, it was decided that no further shares should bo,allotted in the meantime.. It was decided to record a special vote of thanks to the manager, and the officers were also thanked.