Seventeen Star of Peace and True Love 1918

CHAPTER SEVENTEEN

Star of Peace and True Love

The Great War of 1914–18 had interfered with the establishment of Farmers’ Co-op from its inauguration, with a major impact on almost every aspect of the Society’s business. A ‘number of men’ from the staff had enlisted along with ‘many members and their sons’, some making the supreme sacrifice. Detailing the Staff Roll of Honour took precedence in the third Annual Report, for the year ending 31 March 1917: Several changes have taken place in the personnel of the staff, the following members have joined the Colours:- F. H. Anderson, N. A. Arthur, B. L. Joll, C. E. Makesey, C. L. St. Hill, E. J. Brammall, J. B. Young, W. Booth, J. A. Cramp, L. E. Jackson, W. E. Williams, F. J. Hine and A. G. Clark. We regret the loss on the field of battle of Messrs: J. A. Cramp and W. Booth, both of whom have made the supreme sacrifice for King and Country.

During 1918 Mr S. A. Chisholm joined the Colours, and sadly Mr F. J. Hine was killed in action. The board and executive management accepted the responsibility of watching over the Taranaki farming industry to produce food and raw material for clothing – to keep the ‘milk and honey flowing’ to support allied forces and the industrial sector of the Empire. The shortage of labour had created considerable difficulties and the Department of Agriculture was wrestling with the logistics of retaining enough men in the workforce to maintain quality and quantity in management of many of its industries, including dairying, freezing works, woollen mills and farms. Morale was an important ingredient for those left behind to keep ‘the home fires burning’. Over 124,000 New Zealand personnel eventually served in the armed forces in World War I. Many thousands were injured and tragically some 18,000 gave their lives.

In moving the adoption of the report and balance sheet at the Society’s fifth annual meeting on Saturday, 21 June 1919 at the Foresters’ Hall, Hawera, chairman Alex Hunter addressed a large gathering of shareholders and used the opportunity to express his views on the state of the nation and the effect the Great War had had on both meat and dairy produce sold to the British Government at fixed prices for a considerable time. He also described what he felt the future might hold for New Zealand and the world as it lay in a fragile state of hopefully lasting peace: Gentlemen, – Although this Society was born under the Star of Peace, its course, like that of ‘true love’, has not altogether been smooth. This is our fifth annual meeting, and four of them were held during the greatest war the world has ever seen and we cannot yet say we are under peace conditions. I feel sure we are all deeply thankful that the fighting and dreadful sacrifice of life have ceased, and hope that peace may soon be declared. Although the war is, so far as we can judge, over, the world is still in a very troubled state. Central and Eastern Europe and a great part of Asia are in a melting pot, most of it not being in any stable government, while many parts are labouring under industrial strife. It will, no doubt, be some time before things find their level, and nations and individuals adjust themselves

to the new order. It is to be hoped that the great lessons of the past four years will not be forgotten, but rather more fully comprehended, as they are left in relief, while matters of lesser importance fade into the background.

The great commercial combines and trusts so much in evidence nowadays, and the effects of their operations on the national and individual welfare, require careful watching and study, for some at least of the commercial ambitions of a trust are no more legitimate that the desire for power of the Kaiser. Though there is much to be said in favour of trusts, especially as regards reducing the cost of manufacture, distribution, etc., yet experience shows that, as a rule, neither the producer nor the consumer receive ultimate benefit. The trust is not satisfied with profit, but uses its power of capital and influence to stifle competition, and then force price down to the producer and raise the cost to the consumer. Co-operation is the true remedy. It probably has all the advantages of the trust, without the temptation to abuse its power. Command of capital is the source of power, and a co-operative concern cannot do much in the way of improving conditions until it is financially strong. The moral is obvious, and I hope members will do all they can to support and influence others to support their own business.

These were profound words from a man who was not only passionate about the Society he had steered through some turbulent waters in its infancy and some of the most difficult trading years of New Zealand’s short but eventful commercial history, but who also had a strong sense of loyalty and commitment to the greater plan for the agricultural sector of the Dominion. Despite the difficulties, the Farmers’ Co-op had shown progress, although with a less than satisfactory result during the past financial year: 1916 showing a profit of £4,312.7s.10d.; 1917 – £7,163.4s.6d.; 1918 – £9.032.15s.1d.; and 1919 – £5,904.13s.10d. Competition and poor weather during the winter and spring had caused a considerable drop in commissions. This, and the deadly influenza epidemic that swept around the world, rumoured to have been spread by soldiers returning from the trenches of France to more isolated parts of the world like the Pacific Islands and New Zealand, were considered causes. The epidemic soon spun its web throughout the country. In November 1918, before it subsided in the December, between a third to half of the population of the Dominion became infected, and over 8,000 had died from the flu, which, although not originating in Spain, was named the ‘Spanish Flu’, or the ‘plague of the Spanish Lady’.

Stock turnover showed a marked decrease, although the motor department had made a profit during the year despite not being able to get adequate supplies of new cars. The company now had its own garage and was able to keep a stock of cars available for its clients. The Society’s turnover was £762,000 for the year ending 31 March 1919 and Sundry debtors totalled £142,000, which was considered by some shareholders to be ‘all together too much for a concern like this to carry in addition to its subscribed capital’.

Debate on the pros and cons of paying rebates in shares rather than cash was about to engage the attention of the Farmers’ Co-op board. It was raised by Mr Powdrell, who remarked that ‘it was evident that the Society was overtrading’ and that it occurred to him that ‘instead of paying rebates in cash, such rebates and the interest on the capital should be paid in shares’. He went on to say that he had heard of ‘another concern’ paying 10 per cent interest in shares and that if the Farmers’ Coop had another £100,000 it would be more prosperous, because management expenses would not increase in ratio to the increase in business. He felt that ‘if it had a quarter or half a million capital invested in the district it would do an immense business’ and he was also sure that farmers would be content to take shares for rebate and interest, and thereby help their own concern gain ascendancy more quickly. Mr Buckeridge stood to respond to this comment, saying ‘they have the option of doing so now’. Mr Powdrell replied, saying ‘I have poor faith if farmers are given the option of taking cash or shares’ and went on to explain how ‘in Patea last year they paid ten per cent divided in shares and he heard no grumbling’. The debate continued, with some farmers expressing the view that if a rebate was paid in shares rather than cash business would be lost and that it would not work in

Taranaki because it had ‘such a shifting population’: A man who wanted to sell his cows would say, ‘I get no cash rebate from the Farmers’ Co-op, they want me to take it in shares, but what good are shares to me. I will go to the other firm who gives cash rebates.’

Mr Powdrell quoted the districts of Patea and Kaupokonui as examples where the principle worked well. The chairman stated that no other concern gave rebates until Farmers’ Co-op instituted the process and Mr Davidson said that ‘if they could ascertain the exact amount returned by other firms in the way of rebates, that amount should be credited to the Farmers’ Co-op, because farmers had saved that as a result of the existence of the Farmers’ Co-op’. Mr Corrigan considered that had the Farmers’ Co-op not been in existence, farmers would have been paying a great deal more than they were today, and without any rebates. It had, at least, acted as a brake on other firms doing business in the country, and ‘had kept commissions down to the lowest basis’. James Corrigan, repeating that he was not there in any antagonistic spirit, pointed out that was the duty of shareholders to get all the information they wanted and ‘not sit like a lot of stuffed monkeys, afterwards going away growling’: ‘The directors’ jobs are thankless jobs, and shareholders owed them their best thanks.’

The debate concluded but the outcome of this early discussion is now a matter of history. While the men were confronting issues of the province, company and country, adjacent to a Farmers’ Coop press release in 1919 was some good news for the South Taranaki housewife:

WASHING NO LONGER A TIRING JOB The woman who year after year has spent hours over the washtub need no longer rub rub rub the life out of the clothes to get them clean. Cut out all the drudgery by purchasing a packet of ‘Easy Monday’ from your grocer.

Add a little of this powder to the boiling water, rinse the clothes, hang them out to dry, and your washing is done!

‘Easy Monday’ not only gets through your washing in double quick time, but also washes the clothes much cleaner than the old fashion ways.

The clothes last ever so much longer, too, as there’s no rubbing the life out of them when ‘Easy Monday’ is used. Buy a packet today.

Sold by all grocers. Wholesaling distributing agents. W. E. Caldow and Co., Wellington. (Advt.)

As the world moved into the 1920s, the miseries of the war slowly faded. The Co-op’s volume of business was now over the magic one million pounds and although the chairman stated that the Society was constantly ‘urged to use the spurs, the curb is more necessary’. Despite that a dividend on paid-up capital of 6 per cent was recommended and adopted, the increase in business had not been matched by the acquisition of shares. Capital was still a constant problem, with only 1,692 shares allotted during the year ending 31 March 1919, while the increase in paid-up capital was £10,149. Shares were issued to 291 new shareholders. It was considered that for the amount of business being done a further £100,000 of paid-up capital was urgently required, otherwise the Society would have to lean heavily on the bank to fulfil its obligations. Mr Tosland asked at the meeting what additional amount of share capital was needed to carry on all the different branches of business the Society had in hand. He believed that the necessary capital could be obtained from the various centres if representatives of the Society visited and ‘had heart to heart talks with the farmers’. Mr Buckeridge agreed that meeting with shareholders would be a good idea but ‘it was difficult to have a heart to heart talk if shareholders would not turn up’. He said in any business it was considered reasonable to turn over the capital four times a year, ‘and shareholders should back the company to one-fourth of the business he does with the Society’. When Mr Bremner said that ‘he could buy as cheaply from

Farmers’ Co-op, Princes Street, Hawera – the Winter Show Buildings, formerly office of Gillies and Nalder, was the Head Office from June 1913 until 1934. Staff of 1919. From left: J. G. Nichol, A. K. Fyson, D. J. McCalman, H. Chadwick, R. J. Plank, G. Hunter, A. M. Barnard, K. P. Mahoney, R. A. Gray, T. H. Groves, H. E. Cressey, C. E. Morrissey, W. E. Williams, F. Clemow, A. Boden, G. C. Wilson, N. Lewes, J. C. Hobbs, T. Ash. This site is now occupied by PAK’nSAVE.

other concerns as from the Co-op and although he would rather lose a little than leave the Society, he could not understand ‘why the Co-op, when it could buy so cheaply, could not sell cheaper’. Mr Powdrell interjected, saying: You won’t give us the money to buy. We cannot run the whole country from New Plymouth to Wanganui on a paid-up capital of £65,000. Mr Cocker, supporting the call for more capital, said he intended to take up more shares himself and referred to the influence Farmers’ Co-op had had in bringing prices down, saying, while it was said that the Co-op sold at the same prices as the other businesses, the position was that other businesses had to sell at the same prices as the Co-op.

Discussion regarding the lack of capital was raised through the ensuing years and it continued to be the subject of considerable debate at board and annual general meetings. To place this in perspective and onto the back-burner for the time being, George Buckeridge’s response to Mr Bremner’s comments provided some ‘illuminating’ figures with regard to kindred societies: At the end of the first year the Hawera Co-op Society [Farmers’ Co-op] had 1,216 shareholders and a paid up capital of £7,888 and they had a turnover of £231,946. To cope with the business they had to turn their capital over 32 times. A Waikato society had a capital six times that of Hawera, and a South

Island co-operative concern had only turned over its capital five times in a year. The Hawera society was the only one of its kind to be started in New Zealand under war conditions, or which had worked almost exclusively under such conditions. To handle their business last year, they had to turn their capital over 16 times. The business was under-capitalised, and it was up to them to relieve the directors of some of the burden they had been carrying. Take the next biggest co-operative concern. It had 4,200 shareholders, six times the capital of Hawera and two and a half times the business. The Hawera Coop had been the most profitable co-operative concern started in New Zealand, and it was up to the shareholders to see that the directors were not hampered in carrying on the business. The rock upon which the companies had invariably been wrecked in the past was inadequate capital.

George Buckeridge pleaded with the shareholders to support the company, stating that ‘each shareholder should hold about 15 shares if directors were to be relieved of their present responsibility and sufficient capital was to be provided’. This appeal brought an immediate response from Mr Powdrell who immediately promised to take an additional £100 worth of shares and urged others to do so. As a result £3,000 was subscribed at the meeting. However, insufficient capital continued to be one of the company’s major headaches over the years.

Assets had steadily increased, with a new building constructed at Kaponga during the year and saleyards at Waverley. All other buildings and yards were in good order, and although the days of horse and gig were rapidly passing, old-fashioned rhetoric was slow to change when the chairman announced that ‘it was found necessary during the year to ‘re-mount’ almost the whole of the outside staff on new cars’. As turnover rapidly increased so did the stocks of merchandise. Prices climbed so high that more capital was required to replenish stock.

While the major impediment to growth of Farmers’ Co-op was the lack of capital compared with the amount of business it transacted, the Society also had a seemingly casual approach to credit and fortunately or otherwise had a dogged determination at all times, regardless of the company’s financial position, to provide a safe harbour at any cost for those it served. It had a propensity to reach out far beyond the horizon into unknown often stormy waters rather than remain contentedly at safe anchorage. This commitment by the Farmers’ Co-op over time has been returned by passionate, loyal shareholders who although failing to adequately financially support the organisation, stood by it through thick and thin, proving at times to be the Society’s saving grace.

Like a headstrong young boy the Co-op bustled its way to the top, brushing off detractors as it went. A comparison of two years’ turnover clearly shows a dramatic increase: DEPARTMENT 1919 1920 INCREASE £ £ £ Auction 603,875 727,856 123,981 Machinery 12,100 26,949 14,849 Motor 14,620 31,723 17,103 Produce 72,050 134,174 62,124 Wool, skins etc 59,628 102,006 42,378

Totals 762,273 1,022,708 260,435

Six arduous yet satisfactory years had seen the Society embrace almost the whole of the Taranaki province and early in the new decade chairman Alex Hunter commented that ‘the shareholders may be very well satisfied with the results obtained’. Attracting and retaining staff had not been one of the organisations strong points, no doubt hindered and influenced by the difficult war years, but ‘fortune favours the brave’ and personnel appointments were about to make a long-lasting and well deserved turn for the better. Eighteen-year-old Hilda Chadwick had been employed with Farmers’ Co-op as a shorthand typist in the office at Princes Street, Hawera, for one year. Maurice Dimock, her son, recalled how his mother Hilda had spoken of the day a young ‘very tidy and professional’

25-year-old Clement George Trotter, came into the Farmers’ Co-op office, at the Taranaki Winter Show Buildings to present himself to the management for an interview, having been offered a position as head auctioneer and manager of the stock department of The Farmers’ Co-operative Organisation Society of New Zealand Limited at Hawera. Though not realised at the time, it would not be long before this appointment would significantly impact on the Farmers’ Co-op and indeed the stock and station industry of New Zealand as the name ‘Trotter’, soon became a household word in rural circles.

The Trotter family originated in the moors and hills of Scottish-English border country. History records that there were several families, ‘who were free barons and were notable on the Borders over a period of six hundred years’. They were tenant farmers in the 18th and 19th century. The story of this colourful, industrious farming family is recorded in Hasten With Care: The Story of a Pioneer Family by Sir Ronald Trotter. John and Margaret Trotter and their six children: Anne, Alexander, Robert William, John, Clement George and Charles Alister arrived at Dunedin on the 914-ton sailing vessel Melitia from Tuns, Argyleshire, Scotland on 2 November 1866. As for many early settlers, their new home brought many challenges. Three sons – Alexander, Robert and Clement – eventually took up residence in Hyde, Central Otago. Sir Ronald’s history of his pioneering family recalls: From all accounts Clem was a skilled farmer. Like his brothers he had good dogs and it was reported in the Mount Ida Chronicle of 15 April 1897 that he won first prize in the Burkes Pass dog trials. About this time Clement was diagnosed with consumption, i.e. tuberculosis. This was a disease that was spread by coughing – young adults seemed particularly vulnerable and there was no known cure, although complete rest helped. It was another half century before the cure of antibiotic was found. Sadly the disease eventually led to Clem’s death, on 10 October, at the age of 36. Grace, his wife, was left with five children between 15 months and eight years of age. She eventually moved off the family farm into a small cottage on her brother’s farm. Later she moved to Middlemarch and when her young son Clem was working in Dunedin, Grace rented a house in the suburb of Caversham with her two daughters. Clem obtained work with Otago Farmers’ Coop as a clerk at 7/6d per week and at the age of 14 years studied accounting at night school at Dunedin Technical College. He moved to the stock department and ‘at the exceptionally young age of 18 was a licensed livestock auctioneer’. He also became a wool auctioneer. The future of this exceptionally gifted young man was placed on hold when, at 21, he enlisted in the New Zealand army and was posted to an artillery unit in France. He became a regimental sergeant-major and declined officer training in New Zealand to stay with his unit. As World War I came to a close, his former manager at the Otago Farmers’ Co-op sent him a testimonial. It concluded:

Clement George Trotter 1895–1970. Regimental Sergeant Major, New Zealand Field Artillery, France – World War I.

COURTESY OF SIR RON TROTTER I have been forty-five years in the stock and station business and my experience of you has been beyond all conception. Should you go to America, England or any other country in the British Empire or get stranded in any foreign land where, energy, integrity, commercial tact and general management are concerned no business manager need hesitate to employ ‘Clem Trotter’. As a judge of stock and as an auctioneer he is hard to replace in my country. Lachlan McLean (Auctioneer, Otago Farmers)

When Clem returned to New Zealand he was appointed head of Otago Farmers’ stock department at Balclutha. However, he was

offered a position as head auctioneer and manager of the stock department of Farmers’ Co-op at Hawera and accepted the position. He moved to the district in 1919 and obtained a soldier’s loan to build a house for his mother. His youthful energy and intellect was immediately injected into Farmers’ Co-op and would prove to have a lasting and profound influence on the company’s future and the province of Taranaki.

As one new personality appeared on the scene the curtain closed on another. George H. Buckeridge, inaugural chairman and enthusiastic proponent of the Society, can be credited as the prime mover in its establishment. His style did not find favour with everyone but his enthusiasm, intellect and raw entrepreneurial flair contributed to the formation of a variety of other co-operative and commercial ventures during the years he resided in Eltham until 1919 when he moved to Hawera. He had strong links with the dairy industry and in 1924 became a member of a committee comprising representatives from 12 South Taranaki dairy companies under the chairmanship of James R. Corrigan, ultimately forming the Federation of Taranaki Dairy Factories, the forerunner of companies that eventually established Kiwi Co-operative Dairies Limited at Whareroa Road, Hawera, now owned and operated by Fonterra Co-operative Group Limited. He was also closely connected with New Zealand Farmers’ Union and held the position of provincial honorary organiser and acting provincial secretary for a period of time. Although in the early years he operated his own co-operative stores in partnership with his brothers, his most significant contribution was in connection with the establishment of the Eltham Co-op Dairy Factory Company Ltd and The Farmers’ Co-operative Organisation Society of New Zealand Ltd.

Although George Buckeridge’s keen interest in the New Zealand co-operative movement never waned, early in the 1920s he quietly stepped away from being actively involved to concentrate on his commission agency with Henry Lane and Co., of London, purchasing the output of several dairy factories. His interest in public and local affairs and ‘anything of a progressive nature’ kept him in the public eye and although he disclaimed any political aspirations and indicated he had no intention of standing as a candidate for the Egmont seat, he ‘tested the water’ addressing a meeting in the Town Hall at Eltham in 1935, when he spoke on the subject: ‘What’s wrong with New Zealand?’. He was asked by one of those present, Mr T. C. Stanners, what chance he considered Mr C. A. Wilkinson had of winning the next election. Mr Buckeridge said: ‘I should say he would have every chance’. Mr Stanners concluded: ‘I am quite in accord with you. I think he would cake-walk it. You would not have a chance George’. George Buckeridge was married twice and both of his wives predeceased him. His children included a son, Jack, and two daughters, Kathleen and Ruth. He eventually moved to Wellington and then finally to Auckland where he passed away in a private rest home in 1952 at the age of 85 years.

The Eltham premises on the corner of Railway and Bridge streets had cost £3,450 to date but possibly the most important acquisition during 1920 and giant step by the Society was establishing a branch in New Plymouth by purchasing one of the city’s most historic buildings, the Egmont Steam Flour Mill, situated at the junction of Courtenay, Currie and Powderham Streets, New Plymouth for £4,000, of which £1,500 was paid in cash and the remainder – £2,500 – placed on mortgage. This iconic five-storeyed wooden building, described as of ‘more pretentious character that is usually to be met with in small colonial towns’, was built in 1866 for £7,000, ‘a very tidy sum indeed’, and operated under the name of Websters and Hulke. The structure was described by a correspondent in the Taranaki Herald in September 1866: The building which occupies a conspicuous position at the Carrington end of Currie-Street is 78ft long by 31ft wide, with an altitude of 50ft. The foundation walls are of stone, being 9ft in the ground and 4ft in thickness. The basement storey is also stone and is 13ft in height, with walls 2ft 6 inches thick. The stone used was ordinary beach stone. The upper part of the building is of wood and battened sides and the whole building is roofed with corrugated iron. Red pine and kauri were the timbers

New Plymouth’s first Farmers’ Co-op branch office at ‘The Mill’, Courtney Street, New Plymouth, 1921. The men may be Allan Rankin Snr and Mr Harris (manager). used in the construction of the building, the scantling is very heavy, being 10 inches square. Indeed the whole building is built on a very massive style, and we question whether another building of the same size can be found in New Zealand to compare with it in that respect. The flooring joists of the second storey are 14 x 9 inches and the flooring throughout [sic] is 3 inches thick and tongued with iron.

This building was fitted with ample precautions against fire, with 400-gallon iron tanks fitted with pipes on each floor with a ‘plentiful supply of water’ obtained from the adjacent Huatoki river. The purchase of these most impressive premises made a timely statement of intent to the farming community surrounding New Plymouth, and provided a worthy home for the headquarters of Farmers’ Co-op’s northern Taranaki operation.

The name ‘Allan Rankin’ became synonymous with New Plymouth branch of Farmers’ Co-op for nearly 60 years, with both father and son, both Allan, employed at the store. Allan Rankin Snr was born in Australia and came to New Zealand with his brother, working on a farm at Winton in the South Island, where young Allan was born. Allan Snr came to the New Plymouth branch from Hawera in 1921 to a position of storeman.

Allan Jnr commenced working with Farmers’ Co-op in 1929. He described his introduction into the firm:

1929 and the 1930s were the depression years, I was at High School then and my father told me, ‘there is a job going at the Farmers’, you had better think about it’. So I left High School at the age of 16. I started down there. My job was to pack up the small packages of fowl food, wheat and bran and of course there was only three of us on the staff, my father, myself and a manager called Stan Wagstaff. For the first few weeks I was completely lost. I knew nothing about veterinary remedies, hardware, produce or anything but you learn you see. My father continued in the job for years after I started.

Allan Snr would eventually retire from Farmers’ Co-op, after 50 years of long and valued service, in 1975.

Following Allan’s arrival the Society opened a district office in the same building and he recalled:

… there was quite a staff there. A manager, accountant and two or three other staff who handled all the ledgers of Waitara, Inglewood and New Plymouth branches. At that stage they had no counters in the building, all the produce etc., was laid out on floors and this method of display continued for many years. Eventually they built counters, and opened a grocery department. They also had a hardware

department of sorts – I was not involved in that, I was still working in the produce department.

The Farmers’ Co-op was selling Hupmobiles in those days. There was a privately owned garage alongside the New Plymouth building that was acquired by Farmers’ Co-op. They operated an Austin agency and continued with the franchise for many years. You had to be a jack of all trades because we had to service the customers that came in for staples, nails and wire etc. When they put the counters in a hardware man was bought in from Nees in Wellington. They brought him in because he was experienced in retail hardware.

He was there for a year or two but wasn’t very successful and eventually they got rid of him. The district manager called me in one day and said ‘we want you to take over the hardware department’. I was not particularly enthusiastic because of the mess the other man had made. Anyway – as I went out the door he said: ‘you had better make a good job of it – otherwise you will be following him’. I ran the department for a number of years and finally they brought in an assistant – a boy straight from High School – and he turned out to be really good.

The type of hardware that you would buy in a place like Mitre 10 today, farm requisites like wire, staples and nails and seed and fertiliser. The branch also had stock and land agents working out of the building. In addition the branch had a manager running what we called the wholesale grocery, supplying all the other branches.

Allan Rankin’s recollections of his many years at Farmers’ Co-op would be a book in itself, but we are fortunate to be able to record some first-hand memories of his day-to-day experiences: Many years ago we had an episode down there. I was paid on a storeman’s award – or something like that. When I first went for the job – the district manager in those days was a man named Jack Salmon and I had to go to see him. He said, ‘your pay will be 25/-d per week’. They paid me the first week and the next week he called me in and said, ‘I have something to tell you. We made a mistake, your wages will only be 22/6d. That knocked me back a bit! I thought it was rough, but I could do nothing about it. I had heard that FCOS were not very good payers, but I had nothing to complain about. My father’s wage was five pounds. When I got married I was getting five pounds. We used to have a manager in Hawera we called ‘Squeaky Hewitt’ but I think history will credit Clem Trotter with saving the place. There were periods when there was a slump in trading during the 1930s and later than that. I remember one time when Clem Trotter came up from Hawera to New Plymouth and requested that all the staff accumulate in the office. It sounded tough and we did not know exactly what it was all about. He gave everybody a surprise by giving them a little bit of a lecture. By the time he had finished we all thought we were going to get a wage cut. Then, at the end, he said ‘everyone is going to get a ten per cent wage rise’. Of course we were really surprised. Everyone left that room saying ‘we are going to have to get stuck in now and earn it!’ That was a memorable moment. He was a dynamic individual.

Alex Hunter, as chairman, was still firmly in charge and greatly admired by shareholders, the staff and all around him as the Society’s activities throughout the province gained momentum as it pushed into the 1920s. One could say that he was peerless. There were few, if any, in the community with the ability, patience and fortitude to withstand the ongoing and often difficult circumstances prevailing in these early years. His popularity was quite astounding when one considers the pressures brought to bear on his perseverance from almost every imaginable quarter. He appeared to manage so very well. Every shareholder required a slice of the action, continually demanding lower commission rates for livestock transactions and bargain prices for merchandise. In fact in these years some shareholders considered that they could make company rules ‘on the hoof’ by purchasing stock without consulting the management for financial accommodation, feeling aggrieved when asked to pay within a stipulated time. The chairman stated that: ‘The practice of making calls on our funds without notice must for the sake of stability of the business be discontinued.’

One of the Society’s founding provisional directors, Albert E. Death, retired from the directorate in 1920. However, his appetite for the co-operative movement and Farmers’ Co-op could not be quenched and he reappeared on the board in later years.

Winter Show Buildings, Princes Street, Hawera 1923. Farmers’ Co-op Head Office from 1914 to 1948.

COURTESY OF ROSS AND CLAIRE CORRIGAN

When Mr J. Quin moved that the chairman’s honorarium be increased from £150 to £250 at the annual general meeting on 27 June 1921, he said ‘personally I would not take the job on for £500’. Mr Hunter responded by saying ‘that under the present circumstances it would be fair to do so’. Mr Quin responded saying, Mr Hunter had ‘the ability, integrity and honesty to fit him for the position. He may be a wealthy man, to whom the remuneration was of no consequence, but as a matter of principle he was going to adhere to his motion’. It transpired that Mr Hunter had his way, as the chairman’s remuneration and directors’ fees were fixed the same as the previous year by an amendment that was carried. Throughout the years, as the Society spread its wings, staff numbers had steadily grown to 127 and a concerted effort was now being made, during the 1920/21 year, to decrease levels to a more manageable and economic number. The general manager stated that numbers now stood at 102, representing a saving of ‘between £5,000 and £6,000 a year’. Furthermore, to reduce costs agents were instructed not to use their motor cars, ‘unless profitable business was offering’. Complaints had been made to the general manager about employees joyriding in Co-op cars at the races. The general manager said: Their motor car department was a disgrace to the farmers belonging to the Co-op. Scarcely any of their shareholders, not even directors, came into the garage, but fortunately in spite of this and hard work, they had made that department pay. He went on to say that it was his suggestion that employees should go the races provided they paid their own expenses. He told them to put their cars in the most prominent places and where they could best be seen. ‘No doubt they would take their wives and sweethearts in such cases.’ His opinion was that the stock department men went to the races because that is where they generally met people with whom they did business. He assured the critics ‘there was very little joy-riding’.

The Society was going through a period of retrenchment as a number of one-off payments throughout the past year had severely impacted on the balance sheet. Unusually high legal expenses and stamp-duty costs associated with the Waverley and Waitara properties and the completion of the Eltham property, together with ‘costs in connection with the payment of £18,000 to Green and Nalder (that is likely to be an error in a press report relating to Gillies and Nalder, and was probably the final payment in respect of the original purchase price when the company was purchased in 1914) all contributing to a need for financial stringency. The burden of finance of the Society was being largely carried by the bank and the West Coast Mortgage and Deposit Co. It was generally considered that had it not been for the existence of this company the Farmers’ Co-op would have

closed its doors. Retail prices on many commodities were found to be higher than competitors and, somewhat reluctantly, a squeeze on credit was being applied. But for a few exceptions, now every account over £300 was secured.

Difficult times lay ahead and the Society was predicting further losses and making every effort to prepare for the worst. Farmers’ Co-op, and indeed New Zealand, had now caught up with the rest of the world, struggling to adjust to post-war conditions. The economic legacy of the First World War was an increase in the New Zealand national debt, which rose considerably during war years. This problem created further borrowing during the 1920s and continued through to the slump of the 1930s. It is said that much of the borrowed money was spent settling returned servicemen on farms. During the approximate two-year boom, many returned servicemen were settled on farms under what proved in many cases to be impossible conditions for debt repayment. Combined with price rises in the post-war years, land values climbed to extraordinary heights. The

Stratford Farmers’ Co-op branch store, Regan Street, Stratford, 1921.

‘honeymoon period’, if you could call it that, was well and truly over. A sharp slump in 1922 began to impact on profitability and, inevitably, the Society’s eighth annual report did not make cheerful reading, with the balance sheet showing a ‘substantial loss’ of £23,185. 19s. 4d. on the profit and loss account, mainly attributable to falling prices of livestock and merchandise. Prophecies eventuated and chairman Alex Hunter said ‘I do not suppose anyone was so sanguine as to expect a profit’.

It is not the intention of this history to document the foibles of the ever-changing dairy and meat industry marketing options presented to the farmers over the years. However, Farmers’ Co-op could not have entered the stock and station industry at a worse time and it is therefore important to explain the extraordinary situation that prevailed. Difficult trading conditions were all too evident on the farm, with falling stock prices and the implementation of bulk-purchasing marketing schemes moving away from the traditional free marketing that was prevalent from the beginning of European settlement of the country. The First World War brought the ‘commandeer’ of produce, which probably led farmers to some appreciation of the benefits of controlled marketing,

Farmers’ Co-op Garage Staff, Princes Street, 1921–22. From left: In car F. Lasey (salesman), R. J. Hartill (mechanic), Bigham (mechanic), C. J. Brough (storeman), C. Cullenman (clerk), S. R. Tait (clerk), C. Ferguson (manager), S. Smart (foreman) W. A. Brown (floorman), A. S. (Tiny) Bell (mechanic), J. Sturroch (lathe turner) Hec Bagent (electrician), J. France (mechanic), unknown bystander.

associated, of course, with fixed prices. The depression greatly affected New Zealand agriculture and dairy farmers, leading farmers to demand further steps towards the control of the sale of produce. In 1923 the New Zealand Dairy Board, the Meat Board and the Fruit Export Control Board were all established.

After a decade of trading, the Society had navigated reasonably well through some extremely difficult and unsettled times. Tribute was paid to the late Mr J. C. Hobbs who had been head of the Farmers’ Co-op’s stock department for a considerable time and had been a most ‘efficient officer’, his knowledge of people and the district had been a great benefit to the Society and it was said that ‘probably there was not a better known man in Taranaki than the late Mr Hobbs who was also well liked and respected by the whole community.’

Although the ship had been kept on course, its captain had changed a number of times. Difficulties in retaining staff had been exacerbated by the war and the demand for competent management. Mr A. K. Fyson had been appointed to the position of branch manager at Hawera. With the early departure of the Society’s first two general managers, Arthur Gillies in 1916 and M. J. Lynskey in 1918, it had been a settling influence to have Mr T. Taylor from Waverley at the helm for almost eight years. His banking knowledge stood the firm in good stead during the depression years of the early 1920s when the Society was at its lowest ebb due to falling prices. Difficulties being suffered by the Society did not go unnoticed in the national press when ‘Cambist’ of the Truth slated the performance of the company in its columns on 15 November 1924, under the heading of ‘A Slight Improvement , But Still Very Sick’, stating: On this occasion there is a slight improvement in the general position of this high sounding but totally inefficient organisation…. Putting it once again upon the broadest lines the idiotic efforts made to run any kind of a business on borrowed money can only result in failure, no matter who may try to carry on the foolish gamble. Ever since the ‘organisation’ got into business it simultaneously ‘got into debt’ and after ten years precarious existence it carries a load of debt which only the most hardened farmer could disregard without a shudder. Yet there seems to be an awakened conscience about this matter for the capital account has improved by the addition of fresh moneys to the extent of £10,237 during the year covered by these accounts. Compared with Co-ops in other districts, ‘Cambist’ has always noted what a fine body of shareholders are registered in this concern and it has always appeared to him that the parties who have had the job of paying into the capital account were VERY BADLY SERVED in the manner in which these sums were used.

Maligning certain aspects of the management, ‘Cambist’ also supported co-operative enterprise and chastised those who spoke against the philosophy, by saying: It is a financial crime if members of these concerns give up the fight for existence and truckle to exploiting enemies. Co-operators, get to it and support your own concerns at all costs. Co-operative union, plus sufficient capital, is absolutely unconquerable and what is more is particularly the farmers’ only friend.

In answer to a shareholder’s letter, complaining that he could buy his goods, ‘as cheap and on as good terms as elsewhere, so what is the use of the company to him?’, ‘Cambist’ said: ‘Fie on you Mr Shareholder to write me such foolish lines. Use your own company to the fullest extent. Another year or two will prove the folly of your arguments. Stick to your organisation.’

Farmers’ Co-op hierarchy must have been intrigued by ‘Cambist’s criticisms, because clippings of his column were often slipped into the annual balance sheet file for safe-keeping. He attracted great attention in financial circles and was often quoted in the daily press and it was said that ‘Cambist’ ‘could either make or mar a new enterprise’. At the time his identity was a closely guarded secret. However, following his death it was revealed he was an ex-bank manager named Hobart, a fine character of a man, ‘an Irishman with a straight left that there was no avoiding. His Celtic impetuosity occasionally meant severe sub-editing.’

Hard times in the farming community saw substantial amounts of bad debts being written off and the Society’s inability to pay rebates, but the chairman was anticipating improving trading conditions in the coming years and as the effects of the war disappeared, optimism began to shine through. Mr Taylor’s term of office ended prematurely prior to the end of the financial year of 1925, when he resigned to take up a position in Wellington. On his departure the chairman of directors commented:

Mr Taylor was with us for eight years and pretty strenuous years they were. He steered the Society through very difficult times, his bank training standing him in good stead in many ways, but at the same time it handicapped him in others. During the first six years at least he made the business his hobby as well as his job and this helped him adapt himself to it. He always had an eye to the future and never failed to make provision to fulfil our financial obligations and difficulties seemed to stimulate his resourcefulness.

Taking steps to fill the vacancy would be a measured process and the directors promised to ‘make haste slowly in coming to a final decision’ on his replacement. In the interim Mr J. G. Nichol, the branch manager at Hawera, would assume the role of acting general W. A. Hewitt, general manager, 1926–30, director 1938–43, of The Farmers’ Co-operative manager. Although times were difficult, Farmers’ Co-op seemed to come through better than a number of other highly capitalised Organisation Society of New Zealand Ltd. companies and was never in a position where they could not pay cash for purchases and ‘had never been in a position that had the moratorium been taken off without warning they could not have met their depositors’. The general manager was credited with the current state of affairs. Also to their credit it was said that during one part of the slump Farmers’ Co-op was the only one of its kind lending money. Preparation had been made for the downturn in trading and losses were inevitable with the company having to carry such large stocks. Contrary to the expectation of many, the company had also been able to pay out deposit money that fell due, the result being that practically all of it was reinstated. The chairman paid tribute to shareholders when further calls amounting to £1 per share were made during 1925 totalling £21,865. Of this amount £8,447 has been collected, increasing the paid-up capital to £155,581, including calls paid in advance amounting to £7,932. The calls in arrears totalled £7,932. He thanked all those who had loyally met their obligations, ‘in some cases at no little inconvenience to themselves. The bank overdraft over the past three years: 1923 £48,597, 1924 £77,052 and 1925 £70,617 was far too high, with the Society leaning too heavily on the banks instead of trading on their own capital’. A decision was taken to make a determined effort to place the business on a sound financial footing and nine months elapsed before a suitable replacement as general manager was found in Mr W. A. Hewitt, fondly and universally known outside his professional life as ‘Squeaky’ Hewitt. A fiveyear plan of action was devoted to achieving the Society’s aims. At the same time a young 30-yearold, exceptionally gifted Clement (Clem) G. Trotter, until now Farmers’ Co-op’s head auctioneer and manager of the stock department, was appointed assistant general manager. Alex Hunter and his directors had clearly identified the remarkable qualities of this energetic, intellectual young man and it was clear to everyone that he was already being groomed to one day assume the mantle of the company’s top executive position. From the sequence of events and the procedures and protocols adopted at directors and general meetings it became quite apparent from the outset of Mr Hewitt’s appointment to the position of general manager and secretary that his role would be one of

mentor and caretaker general manager until the board felt Clem Trotter could take the reins. It was arranged that ‘during his stewardship he should specialise in branches of the business with which he was not completely familiar, so that he could assume the position of general manager with a sound and comprehensive knowledge of every department of the business’. The scheme was accomplished according to plan. From the very first official public outing as officers of the Farmers’ Co-op, on 30 June 1926 at the annual general meeting, both executives were introduced to a gathering of 80 shareholders by the chairman as a partnership: Mr Hewitt appears for the first time at an annual general meeting as our general manager. He has now held the reins for several months and you will find has a pretty firm grip on the business. His experience has been a great help in reorganising the business, and I think I can safely say he has left nothing imaginary in the list of assets. As assistant general manager, Mr Trotter is doing excellent work. The past year has been a strenuous one for him, for it has been necessary for him to appear on the rails more than his other duties really warranted.

Building infrastructure had been the focus of activity in recent years. The Society had taken a major step and purchased Hupmobile cars for stock and auction staff. The establishment of branch stores at Eltham, Inglewood, Kaponga, Manaia, New Plymouth, Opunake, Waitara, Hawera and Waverley and the wool, skin and hide stores at Gonville (Wanganui) marked the beginning of a large network of retail outlets to service the growing number of shareholders. Saleyards in operation at this point in time included Auroa, Eltham, Hawera, Inglewood, Kaponga, Manaia, Okaiawa, Opunake, Stratford and Waverley. A half interest was also arranged in the N.Z. Loan and Mercantile Agency Co. yards at Kakaramea and in Newton King’s saleyards at Stoney River and Urenui. These two purchases were made to fulfil longstanding obligations to shareholders who had purchased shares on the understanding that Farmers’ Co-op would establish itself in these districts. The Manaia operation, however, had not shown any marked improvement in returns and it was decided to close

Farmers’ Co-op Machinery and Hardware store and staff (unknown), East side of Union Street, Hawera 1923.

the premises. The salary of one man was not warranted. Mr E. Long complained to the Society, stating that he thought that ‘notice of the closing of the Manaia store should have been given, and also an intimation to the people of the district that goods could be supplied cheaper from Hawera’.

The depression that had followed the boom years of 1919 and 1920 was beginning to show signs of abating. Almost every lending and stock and station concern in the country had lost money, the banks and government were no exception. Farmers’ Co-op had also suffered losses during the slump but, having written off the losses, the 1926 balance sheet disclosed the result of the final washing up of transactions entered into during the period of inflated prices. There was a certain amount of jubilation amongst shareholders and the board when for the first time in four years the company was able to report favourably on its accounts. There was a distinct air of confidence and during the following year analysis of the company’s books showed, after taking interest on capital into account, every branch had returned a net profit and in every case except one profit had increased on the past year. Merchandise profits had increased in every branch except two, and overheads had decreased in every branch except one. It was obvious that the new management team and staff had made a real effort to economise and get the Society running efficiently. The company was ‘sorely tempted to pay a small dividend, but eventually decided against that course, in the belief that shareholders would appreciate more consolidation of the Society’s financial position’. Wise words were hardly matched by some of the advertising at the time:

HUMAN POWER TO CHOOSE

Human beings are the only animals with the gift of conscious choice. It does not seem to help them very much, partly because we so often choose wrongly, partly because we have no power to choose the weather, the thing that affects us most. Fortunately we have complete control in another very important direction, the choice of Tobacco, and lately the wise ones have been choosing Bears’ Tobacco. Mild 8d per ounce – Keeps you happy in all weathers. (Advt.)

Thursday 28 July 1927 was a day of deep-felt sadness throughout the trading and stock and station industry in Taranaki. The newspapers reported the ‘Passing of a Pioneer’ and a ‘remarkable personality’, Mr Newton King: After a life of striking usefulness to the Dominion, just after reaching the allotted span, and with a good record of service excelled by few men in the history of Taranaki and of New Zealand – for his work undoubtedly had a great and lasting influence on the community among whom he spent his life – Mr Newton King died yesterday with tragic suddenness. Very truly he died ‘in harness’, busy right to the end with the multifarious interests which through a long life occupied his mind and time. Death, no doubt, just as he would have had it. He was not the type of man who would have wished to linger, but, when his time came, to go out as he did, in the midst of the great work he had done and was doing in the community. The end came quietly, but very suddenly. Mr King was busy as he always was – such a man could not be unoccupied, for there was too much depending on his brain and his work – up till late on Tuesday, having travelled to Stratford on his company’s business, and in the evening he attended a meeting of the Jockey Club. The day had been strenuous, and on Wednesday, on the advice of his doctor, he remained at home to rest. Up till midday he appeared quite well and happy, but then his condition alarmed his family and the end came within an hour, despite all that could be done for him.

Newton King was a man of diverse interests and had been a fierce competitor of Farmers’ Co-op and anyone else who dared to set up in opposition to him. He ‘had wonderful judgement’ and ‘possessed an attractive personality’. His company, Newton King Ltd, eventually established its operations throughout Taranaki and built large up-to-date business premises, including a store and

Directors and management, June 1929, The Farmers’ Co-operative Organisation Society of New Zealand Limited. Inserts from left: A. E. Symes, R. Bremer, C. D. Dickie. Standing from left: N. R. Cleland, F. Sarten, C. G. Trotter (assistant general manager). Alex Alexander, B. C. Lysaght, M. Fleming, J. S. Connett, W. A. Hewitt (general manager). Sitting from left: W. G. Belton, C. R. Honeyfield, A. Corkill, H. A. Foreman, A. Hunter (chairman), E. Marfell, J. E. Palmer, W. Jones.

Kaponga branch store, Victoria Street East, north side.

COURTESY OF KAPONGA LIBRARY

motor garage, in Hawera. Apart from various other entrepreneurial business enterprises, he was heavily involved in the provincial dairy and shipping industry. The market share, competition and dominant trading positions held by Farmers’ Co-op and Newton King Limited, played a major part in discouraging many large national stock and station companies from entering the Taranaki province. He was without doubt one of Taranaki’s most celebrated merchants and auctioneers and was credited with being ‘the first shipper of butter from New Zealand to London in [a] cool chamber’. He was married to Mary, daughter of Dr George St. George, and there was a family of three sons and two daughters.

Administrators of Farmers’ Co-op were congratulated when a dividend payment of three per cent was announced at the 1928 annual general meeting. Out of the profit of £11,392, £6,252 would be absorbed by the dividend leaving £5,140 to be placed into reserve. It was generally agreed that ‘nothing succeeds like success’ and success was attributable to good management and directors and in particular the general manager and his assistant. A response to the high praise came first from Mr C. G. Trotter, the assistant general manager who appealed for continued support of shareholders, pointing out that the profit of £12,000 had cost £1700, and stressed that by increasing the turnover the margin of cost would have been reduced. The general manager, Mr W. A. Hewitt, complimented the directorate on the policy that had resulted in the company arriving at such a sound financial position and remarked upon the shares, giving the opinion that they were ‘fully worth twenty shillings in the pound sterling’ and strongly advised that ‘they should not be parted with’. Thanking the directors and the staff for their attention to the company’s business and shareholders for their support, he said: This is the proudest day of my life, that we have such a balance sheet which will stand any amount of investigation and that our efforts have been so well received by the annual meeting. Building up reserves was seen as a priority and essential by the board and management and this foresight at this critical time in the Society’s history was probably the saving grace throughout the coming years. New Zealand was about to face the most difficult economic depressions ever recorded and in general was unprepared for it. Within two years exports would fall by 45 per cent, national income by 40 per cent in three years. The balance of payments was further weakened by the burden of interest on the overseas debt. At the worst point of the depression, the number of unemployed may have exceeded 70,000. Huge falls in the price of primary produce would occur in the years from 1929 until 1932 and this would have a major impact on the Society. It was, however, as well placed as any company to withstand the pressures that were about to bear down upon it.