NOTES & EXCERPTS FROM ANNUAL REPORT OF W. B. ROBINS
BOARD OF DIRECTORS AND STOCKHOLDERS MEETING
UTAH COOPERATIVE ASSOCIATION
November 10, 1962
President Holman, Directors and Shareholders:
Generally, all of the people in this room are acquainted In specific detail with
UCA operations of the past year - of the past two years. John Carr's summary of the
audit provided you with the unvarnished figures. President Holman reviewed our
hopes and plans - some shattered, some fulfilled during the past period.
Our modest net for the past year of $60,000, in reality Is a big victory against
the heaviest odds this organization has ever faced. One year ago last month we were
being crushed In the jaws of a gasoline price war. UCA was selling gasoline below
cost - as much as five cents below cost. Revenues from our main bloodstream,
gasoline, were cut off almost completely. The giant companies competing with us in
our second main source of income, PAX, were mounting a steadily more Intense
competitive attack, spending dollars for advertising where we were spending dimes.
Cash, chronically short, was even shorter because of losses and increasing accounts
receivable. We had a new crew of people in all of the three companies.
If any of you wondered what kind of miracle would be required to turn this business around, you had every right to wonder. I saw the miracle happen. I saw the
work out in the country and I saw the work of your employees, cutting costs, selling
hard, planning, scheming, driving to turn the tide of loss to our gain for the year.
Perhaps I can express It this way without appearing immodest - we do not need to
apologize for last year's operation - we are gratified and a bit proud of the turn-around.
We have a breathing space now for planning forward movement.
Let's look for a moment at the box score not reported In operating figures:
1. Three new co-ops and co-op dealer-agents In the gasoline business: (a)
A station at Delta, (b). A bulk plant and station at Hooper, (c) A station
in Wellington. New, modern co-op station now building at Davis Farm
Co-op at Kaysville.
2. Three, perhaps four, new controlled (leased or owned) private brand stations
for distribution of Uinta's Galaxy brand gasoline.
3. A small new step toward ownership of crude oil. Ralph Wright will elaborate.
New truck - new stabilizer.
4. A program for extending retail credit, experimental so far, but geared to
finance and handle bookkeeping on credit extended by controlled dealers
and local cooperatives. $50,000 of the money in UCA's Pension Trust Fund
is now set aside to finance local credit. As an experiment, the UCA Trust
has purchased outright some $7,000 of accounts receivable from the Ephraim
Cooperative. All credit sales made by the Ephraim Co-op will now be made
through the UCA Trust. Ephraim will be freed of the burden of carrying