We have before us the seven-months' report, balance sheet, and report of general meeting of shareholders of the J. G Ward Farmers' Association of New Zealand. It is very interesting reading, romantic in some parts, pathetic In others, and instructive everywhere. It indicates that the genius of the heaven-born financier, who prepared the Budget of the colony for the present session, in no way exhausted itself in the preparation of that extensive, if somewhat fallacious, statement of the affairs of the colony. That he had gifts of no ordinary kind is amply proved by the Fact that he has succeeded in already producing another phenomenon In no way inferior Is proof of his fitness to be where he is in the Seddon Administration. There is a sort of Yankee look about the whole of the J. G. Ward Association reports, which permeates the type used in the printing, the high-falutin' style of the report, and the utter disregard for the conditions usually followed in the disclosure of the real state of affairs in joint Stock Companies which ate suggestive of Mark Twain's editorship of an agricultural journal.

To begin with, the first line in the balance sheet starts well, with—capital, 20,000 shares at £5 each—£100,000. This has a nice, round, full-bodied tone about it, smacking of wealth; but a few lines of deductions bring the capital down to the miserable thimbleful of £5276 10s—a shadow of a shade,—and brought about in this way: Only 5090 shares are taken up, which have paid £1 each; calls have been paid in advance £220; and there are unpaid calls of £33 10s—which represents the £5276 the company has for its working capital. There is then Mr Ward's own interest, which is represented by £15,000 for the purchase page 5 of his business by the association; and the peculiar manner in which this amount it set down in the balance sheet is puzzling, till one asks himself how It would appear on the asset side, As a matter of fact, It does not appear at all, and, if it bad, it must have been set down as "goodwill," Before coming to the next Item among the liabilities, it will clear matters if we here make an extract from Mr J. G. Ward's speech on moving the adoption of the report and balance sheet. He said: "Our custom is always to buy for cash; we never buy on bills. Every article we purchase we got at bedrock price." This is a sound and healthy style of doing things, which a well to-do merchant is always proud of; and, as Mr J. G. Ward is Treasurer of the colony, and chairman of directors of the J. G. Ward Association, we are exercised in our minds how the following two items managed to creep into the statement of affairs: "Amount to credit of shareholders, £4251 12s 7d, and sundry creditors £1562 18s 3d." Evidently, the first item must have been for produce purchased and not paid for, at bed-rock prices, and the other probably for merchandise for the business. The overdraft to the Colonial Bank is £26,278 6s7d, and it would have only been necessary to have paid off the two first-mentioned items—a total of £5514 10s 10d—through the bank, and added it on to that institution's balance, to have made the chairman's figures fit his speech. Somehow, we feel a surmise that either the bank had warned the association that it had better "provide" for any further cheques which might be drawn, or that it was the association which was running the Colonial Bank, and not the bank the association. It is only surmise, but it looks as if one or the o her prevailed.

Then we come to the assets; and on this point Mr Ward, in his speech is very emphatic. He says: "I may also state that nothing whatever of a speculative nature is entered upon by the association." Again we have a sound, healthy policy enunciated; and again we find a contradictory item," book debts. £5348 6s 2d." This is a [unclear: trefle] more than the whole of the paid-up capital of the association—leaving out of the question Mr Ward's paid-up shares,—and we would ask any business man whether he would consider he was engaged in a venture of a "speculative nature" if he had all he posessed out in book debts? We don't wait for an answer, knowing what it would be, but go on to the next item of" stock on hand, £17,088 5s 7d, and advances against produce, afloat and ashore, £49,502 17s 2d." Now, if investing in stock and produce is not speculation, we must look for some meaning of the word not given in any dictionary in our possession. It is the very essence of speculation, in the accepted meaning of the term—the meaning understood by commercial people who are one and all speculators. The kernel of the balance sheet is this; The association has liabilities. £87,220 2s 7d. of which £27610s is share-holders' money, and all the rest is pure unadulterated debt. In other words, for each £1 of capital in the concern there is £15 10s of somebody else's. Yet Mr J. G. Ward says "our financial arrangements are such that we are In a perfectly independent position." So were the Australian banks; they, like the J G. Ward Association, "could not be cornered," as he jauntily put it to his admiring colleagues in this flourishing concern; but the banks were cornered with much better-looking statements than the Southland prodigy can show. One other point in connection with this first cousin to the Budget, and we will pass on to another phase of the question. The bank overdraft is stated at £26,278, and the interest paid for the seven-months period at £134 5s 2d. It it not the custom of banks, in our dealings with them, to grant overdrafts at from 1 to 1½ per cent. interest, that is what this statement implies. Taken at 7 per cent. for seven months, on the amount stated, the interest would be £1703, Evidently there is something here not disclosed. It may be that interest was charged to clients having advances, but if such was the case it should be shown. On the face of the published accounts of the association there is so much left to imagination and guesswork that Edgar Allan Poe's tales of "Imagination and Mystery" are mere children's stories in Comparison. The statement is compiled for a period of seven months; it may be that this immature period is selected because of its birth having been somewhat hurried; but at the same time it is curious that the end of the seven months—June 30—is also coterminous with the end of the produce season. Grain, wool, butter, meat, &c., are all shipped and done with for the season by that time, and three to four months of slack times for farmers, merchants, and shippers then set in.

But look at the profits!—£4414 19s ld—the dividends. 10 per cent. on paid-up capital! the refund of commission. 20 per cent. off the charges on wool! the bonus to shareholders who bought goods, 2½ per cent. on their purchases! another bonus to the lucky clerks and store men in the employ of "vigorous and progressive a company!!" and £1000 the reserve fund!! and, finally, the balance to next year's profit and loan!!! These are facts no critic can cavil at. Nor shall we; we merely desire to observe, en passant, that, as a rule, one man's gain is another's loss, and that if large profits are made and extensive bonuses dispensed, and large sums carried forward, someone must find the money to do it with. Mr J. G. Ward, in his great speech, showed how it was done, and he has taught our business community something which early training, constant study, and lifelong experience in business has failed to instil into their minds—but he is a genius, and they only ordinarily rule-of-thumb people, Perhaps he will at his leisure, undertake the preparation of a primer for the use of schools on "How to Prepare Balance Sheets, with a Few Observations on Glowing Reports. Illustrated with Examples from Personal Experience." We feel convinced that his enterprising colleague, the Minister for Education, would undertake that It should he made a compulsory text book in the schools of the colony. In his address to the grown-up people of Southland he gives a few promiscuous examples of the blessed advantages gained by dealing at his shop There are seven happy customers selected to clinch his argument with. We take the first it to illustrate his methods of reasoning "A farmer from Drummond has two shares, upon which £2 has been paid, and gets back £1 12s 6d as dividend and bonus." This is a bit startling, and the other six lucky dogs in the association all seem to have fared equally well, A little investigation, however, shows that it is not such a rosy affair after all, Firstly, he gets his 10 per cent, on his shares—viz., 4s on the £2 he paid in, which leaves £1 8s 4d as bonus. The bonus on goods purchased was page 6 2½ per cent., so that he must, in tie seven months, have bought goods to the extent of £56 13s 4d, and his bonus simply amounted to a discount of 2½ per cent. Where did this come from? And whence did the Other be nudes and profits arise? From only one possible source—from the high percentage of profits charged. The whole of the reasoning irresistibly reminds us of a circumstance which happed in a saloon bar in 'Frisco. A dead-beat went in and asked the bar-tender "how much them cakes were?" "Five cents," said the barman, "Then I'll take one," said the fellow; "and how much is a glass of whisky?" "Five cents, aid the barman again. "Then I'll change my mind, and take the whisky," said he of the seedy clothes. He drank it and was making for the door, when the barman called out, "Hi, you haven't paid for that whisky," "Didn't I give you the cake for it?" asked the other. "But you didn't pay for the cake." "Well, you've got the cake, haven't you?" said the dead-beat; and before the barman could pull himself together sufficiently to see where his shortage of five cents came in, the man was out of sight round the corner.

Mr J. G. Ward's philanthropy in handing over a business which he shows had paid a net profit of £4414 19s Id in seven months to a company for £15,000 in paid up shares cannot be too highly estimated, and decidedly entitles him to a marble statue on a very high pedestal in the best situation in Invercargill He, in pathetic terms, deplored that bin fellow-shareholders in earlier say, before his dexterous mind and diplomatic knowledge came to their aid, had been connected with other co-operative companies of one sort or another in Southland. "They did little or no good. It could not be expected they would; they were crippled for want of capital, and handicapped greatly by the strong competition of my firm's business" Further on, he tells them how he has taken over no less than three of these concerns, which could do no good and were "crippled." It is very, very funny! He in another place and on a subject quite apart from the Farmers' Association, say, "I studiously avoid attacking an opponent"; the opponent in this case being; an opposition meat-freezing concern running against his own private one, and in which some of the shareholders present held stock. And he goes on to preach up his own as the real Simon Pure, which gave them "the highest cash price for fat sheep"—implying that the other shop did the other thing.

We have extended this article to too great a length, and will conclude with a delicious bit of pathos—or bathos; our readers may please themselves which term they apply to it:—"This business is not a thing of to-day I am sanguine enough to believe that when I am dead—(sobs from the audience—and gone—(handkerchiefs and sniffs)—this association will be still in existence; and I firmly believe it will do good service to the farmers of Southland.—(Applause.)"

Mr Ward's Reply.

(To the Editor of the New Zealand Times.)

Sir.—I should feel obliged if you would favour me with space to reply to an article which appeared in the Evening Press of thin city on Saturday last, having reference to myself and the Farmers Association, of which I am chairman, I have no intention of communicating with the paper in question. It is generally understood that many of its articles are communicated by what are known as "outsiders." the coward is generally conspicuous for his bravery when his adversary is absent. He prefers not to meet him In the open; and I think it will generally be conceded that any man who has the use of the leading columns of a paper at his command, and who avails himself of it for the purpose of writing vindictively and with a clear den ire to damage, or even ruin (if it were possible) a man against whom he is politically opposed, and so covets up his identity, should be classed amongst the meanest and most contemptible of cowards conceivable. Of course, the paper itself becomes responsible for the opinions expressed in its leading article. This is fortunate, because it at any rate gives a person who feels seriously aggrieved the opportunity of redressing, in a proper way, anything that is maliciously written. It is, however, a matter or great surprise that soma of the men who are connected with the Evening Press should allow it to be used, so far as business matters are concerned, in a way that nine business men out of 10 would pronounce to be un-English. Let it write against a man's public acts as strongly as it likes, but it should not try to ruin his business. Others could, if necessary retaliate in the same way, though I admit it would become intolerable were such a course followed. In dealing with the article in question I find it necessary to treat of my individual financial affairs first, and with the financial affairs of the association next. It is perhaps, a matter of little or no concern to anyone, except my own immediate friends, as to what my financial position is; and, excepting those immediately interested, it is also of little concern to anyone as to what the financial position and strength of the Farmers' Association is However, as a very unusual journalistic course—that of attempting to damage myself and the association—has been followed, I must be pardoned for referring both to my own private affairs and to those of the association. Matters of business pertaining to myself I have never paraded before anyone. I do so now simply because I feel that a cowardly and contemptible attack has been made upon me, I have worked hard and honestly for many years in business, and I have the satisfaction of having built up one of the best and most profitable businesses in the district of Southland. There I am well known to every man in the district, I enjoy the respect of my opponents; and the innuendoes and imputations contained in the article referred to would, in the district in which I have served the greater portion of a lifetime, be treated with scorn. The object of the writer is possibly political; it is, however, a new method of attacking a political opponent to try and do It through his business or calling. It is well known that the Farmers' Association is closely identified with myself. The innuendoes concerning both it and myself are as untrue and unfounded as anything well can be. It is distasteful to have to refer to my private affairs, hut the circumstances call for it. Last year I was one of 75 people in this colony who paid income tax upon an Income of over £3000 a year; and, as I am perhaps dealing with a fastidious critic, I should say hero that I was not then in receipt of any Ministerial salary, nor of any Government moneys, and none were included in my Income tax return. In addition to income tax I also paid a page 7 considerable sum for land tax, I may add further that the whole of my warehouses and private properties, with one small exception, are unmortgaged, unencumbered. I a bill not state their value here further than to lay that it is very considerably In excess of any sum that the Farmers' Association bad from its bankers for the accommodation of its business at the date of Its balance. I have never made the slightest pretension to being a rich or a wealthy man, nor have I now any intention of posing an such; but I am thankful to say that 1 am not a poor man. Apart from myself, my immediate relatives in the south cannot in any sense be classed as poor. They have a fair share of worldly goods, their properties are unmortgaged and unencumbered, and they have considerable sums invested. If I wanted their assistance I am proud to know that they have sufficient trust in me to give it.

So much for myself. And now for the Farmers' Association, For malignant and untrue misrepresentation, the statements made in the article could scarcely be excelled. The association in question baa no interest where the Evening Press circulates It has do shareholders hero; it ban not a creditor to the extent of a £5 note in this district. The association, since its formation, has never paid anyone to canvass for shares; it has not advertised the sale of shares; it has not employed a broker for the sale of Its shares, nor has It asked for £5 worth of credit from any business firm or individual in the colony. It is, therefore, evident that the article in question could in no sense be construed into having been written for the public good. Animus, spite, and other motives are, is the opinion of everyone who has so far conversed with me upon the matter, the [unclear: f u] dation of it. And here I would thank those who have been kind enough to call and personally express to me their sympathy, and detestation of what some of them have termed a rascally attack, Let me deal with the overdraft at the date of balance first. It was upon that date £26,278. The writer makes the statement, by way of surmise, that either the bank bad warned the association that it bad better 'provide' for any further cheques which might be drawn, or that it was the association which was running the Colonial Bank, and not the bank the association." I merely wish to say that upon the date In question, the bank held securities as against the advance which the association had from it of no less than £62,(100, independently of £20,000 of uncalled capital of the Farmers' Association at that date. The imputation contained in this statement could only have been made for the purpose of damaging the credit of the association. Now, let me deal with another Item:—'Stock on hand, £17,038, and advances against produce, afloat and ashore, £49,502." The writer says: "If investing in stock and produce is not speculation, we must look for some new meaning for the word not given in any dictionary in our possession. It is the very essence of speculation, in the accepted meaning of the term—the meaning understood by commercing people, who art; one and all speculators," Now, what can be thought of the malice of the writer, who could easily have ascertained the particulars from me here, when I tell you that not one shilling of the £40 502 referred to there belonged to the association, or concerning which it bad any financial liability. Nearly the whole amount was advances against produce sold through the association as agent, and against which British bills (covered by credits) were drawn at date of shipment. Anyone who knows anything of commercial business will tell you that a British bill drawn against a credit is as good at cash; but the point is this: what this writer attempts to twist into a speculation to the extent of £49,000 on the association account, not one penny of it is speculative, nor bad the Farmers' Association any direct risk connected therewith. Ordinary general stocks of merchandise which are going out daily to farmers, and which mood at that date at £17,088, cannot, in any sense, be termed a speculation. Again, the association's liabilities are "£87,220 2s 7d, of which 10s is shareholders' money, and alt the rest in pure unadulterated debt." So says this vindictive writer. Now, when I say that in this item ho has included British bills against letters of credit, not one sixpence of which is a debt, nor indeed even a liability, the improper strictures of the article will at once become apparent. Brought down In the sum again are the stocks of merchandise as well as the advances to farmers against produce afloat and in store, as well as the ordinary advances to farmers that were secured to the association. To make the position clear upon the date that this vindictive writer refers to, in which he states the liabilities of the association to be £87,220, the actual sum upon which interest was directly payable by the association was under £16,000. Every other amount which the writer has include in the £87,220 was represented by either British bills and letters of credit or secured advances to farmers, upon the whole of which they were paying interest to the association. This writer, whose motives, I repeat, throughout the article are everywhere stamped by the word "malice," again endeavours to paint the position of this association, so far us its share capital is concerned, in the blackest possible way.

As I said before, I had built up a large, successful, and profitable business. I decided to convert my business into a Farmers' Ass elation. A prospectus was issued to our clients, in which it was stated that £1 would be called up within the first 12 months, and thereatter calls of £1. The announcement was made in my own trade journal No advertising of any description for shares was done, and no brokers were employed. The times of balance were made half-yearly. It was in no sense like the establishment of a new business; it was taking over a profitable, healthy, and live business, which, every single year, from the time I started it, paid considerable profits. The earning power of the business Immediately went to the Farmers' Association. Many of those acquainted with the business in the district became shareholders; and upon the date when the first balance was issued, 5090 shares had been allotted, This writer throughout carefully covers up the fact that at that date there was £20,000 uncalled capital. That, however, is in keeping with his whole object of attempting to damage the financial status of the association. There was authority in the prospectus for the is ue of 10,000 shares. At the first half-yearly meeting authority was obtained for the issue of a further 3000 shares, making 13,000 shares altogether for allotment, Including 1500 applied for at the half-yearly meeting; there have since been allotted 2018 shares, making 8708 contributing shares issued date, and quite independent of my own 3000 paid-up shares. In accordance with the terms of the prospectus, only £1 per share in the first 12 months could be called page 8 up. At the rate the shares have been taken up, before the end of the present year I think there is little doubt that the whole of the 10,000 contributing shares will be subscribed; and after the first 12 months a second £1 per share will he paid, giving us £20,000 paid-up, and with uncalled £30,000. Those who are connected with this company believe this in enough to work its business; and, if it is not, I have every confidence they can get more.

I pass op to the criticisms of the interest paid on the bank overdraft, which is correctly and truly stated in the balance sheet at £134 5s 2d. He says; "It is not the custom of banks in our dealings with them to grant overdrafts at from 1 to 1½ per cent. interest, but it is what this statement implies. Taken at 7 per cent, for seven months, on the amount stated, the interest would be £1073." The writer at once assumes that this accommodation had been obtained from the bank for the whole seven mouths. I require to state only one fact to show the utter un reliance that is to be attached to his strictures. Three days preceding the balance, two large sums were paid out for the purchase of stocks and advances taken over from another business. As a matter of fact, the average amount of accommodation would not have stood during the period of seven months at over £7000 None of the advances against farmers' produce in store would have been made, at the earliest, before March—the greater portion of them in April. However, I have said enough on this point. There are hundreds of others besides myself shareholders in this association. It is not in my opinion, right that a large number of honourable, well-to-do and energetic men who are shareholders in the association which happens to bear my name should be made the subject of a malicious attack through me simply to enable the writer to hurt me politically; and with the belief that I correctly interpret the intention of the writer to attempt to destroy the credit of the association, and in a way that I have never seen done in this colony before, I have sent thin article to the directors of the association, Invercargill, to consider it and take the opinion of their solicitors; and I have also myself referred it to two other leading solicitors. Upon their opinions I will be guided. It appears to me to be a malicious and libellous criticism, I have the share-list of the Evening Press Company before me and from it I Kind there are several prominent Opposition members among its shareholders, 1 should be sorry to think that this paper represents in this matter the wishes of the leading members of the Opposition. I should hope that the majority of them are above such a practice as is here initiated. If, however, the financial positions of members of the House are to be used by the press to attempt to blacken them, as far as I am concerned I am quite open to deal with the financial position of others. If it is to be general, and I am ready to court the fullest inquiry into my own affairs I never during the whole course of my own business gave a bill or a promissory note to any man or any firm. I never had an accommodation bill in my life. The Farmers' Association with which I am connected has laid down the same lines, and will follow them. If it cannot from time to time carry Its business on upon the basis of cash for all its requirement it will undoubtedly limit its operations accordingly. Every business man knows that all large commercial businesses use at times the capital of others in the carrying on of their affairs. If I had not been able to have properly used other people's money when I required it, one thing is very patent, that I would not have been a second time entrusted with the use of it.

I have never bad, in connection with my owe operations (which at times have been large), the use of capital which has not been fully secured to those from whom I got it. I have made money in business; and, apparently, a trait in my character, which meets with the disapproval of such cowardly writers as the author of the article in question, is that I have not been niggardly, and that I have had the course to put it out in order to try and make more, I at any rate, have the satisfaction of knowing that I have done a considerable amount of good to numbers of people in the district to which I belong. It has been my privilege to bring into life and to put on a stable footing no less than six independent businesses and industries, which are to-day giving direct employment to between 300 and 400 people, upon each of whom there in dependent at least two others, or from 900 to 1200 mouths I say nothing of the people who are indirectly receiving benefits resulting from these undertakings. I am further proud to know that every one of them ban succeeded, and that they are proving lucrative Investments to those concerned in them. In Southland, where I it well-known in business, the insinuation made by the writer in the Press, that anyone who has done business with me has ever had to wait an hour for his money would be treated with derision. The secret of my personal success to a large extent has been that I have never entered into an undertaking until I first knew how I was going to pay for it. There is nothing whatever to prevent me from searching into the financial position of some of the shareholders of the Evening Press Company, and I wonder how some of them would like it if they were made the subjects of such grow misrepresentation as I have been! I have no desire to do anything that would be hurtful or injurious to the business of any person or firm here, but if people who have no interest whatever, either directly or indirectly, in my affairs imagine that I am going to be attacked with impunity they will quickly find they have mistaken then man. It is my intention to publish the venomous article of the Evening Press, together with this reply in the Southland Fanner, the trade journal which issues from my own office, and circulates amongst the whole of the share holders of the Farmers' Association throughout the Southland district. This will enable those who are closely interested in the affairs of the association to form a true estimate of the character of the criticism.—For the present I remain,