COMBINE ALLEGED.

Dominion, Volume 6, Issue 1779, 18 June 1913, Page 10

COMBINE ALLEGED.

SHIPPING DAIRY PRODUCE. ASSOCIATION CRITICISED. REPLY TO EXPORTERS' CIRCULAR. (By Telegraph.—Special Reporter.) Palmerston N., Juno 17. For several years tho annual meeting of the National Dairy Association has been expected to provide discussion which would bo at least particularly lively, but expectations had not up to this year been fulfilled. This year, again, warm orgument was predicted. The chief contentious matter was tho shipping contract recently entered into by tho association. Tho subject was discussed at length by the association to-day, but littlo in the naturo of heated controversy occurred. Mr. Morton on the Contract. The president of the association (Mr. Arthur Morton, of Egmont Village, Toranaki) introduced tho subject in his address. 'I am now going to refer to a matter which has been exercising the minds of members for some time," said Mr. Morton, "the matter of the shipping contract." For a considerable time past, he continued, it had been the practice of tho National Dairy Association, together with the South Island Dairy Association, to enter into a contract with the Shaw, Savill, and Albion Company for the shipping of produce to London. In making those contracts the executive always endeavoured to conserve the interests of its members and to look ahead a few years. The association had in existence a contract which expired in 1914, In January last Mr. M'Millan, a representative of tho Shaw, Savill Company cam© to New Zealand to see about tho renewing of the contact. Mr. M'Millan was met in conference by Messrs. Morton, J. B. Murdoch (Okarawa), and W. Fisher (Carterton), who represented tho National Dairy Association. _ Subsequently representatives of tho association and the South Island Association met Sir. M'Millan at Christchurch, and any complaints about the carriaEo of produco were then duly made. It was there arranged to enter into a contract with tho Shaw, Savill Co. for the carnage <of produce for five years from the expiry ot the existing contract, or six years from October 1, 1913. Everyone wa ? nTral '° °f the increase in the cost of almost all undertakings. The association's representatives were told that if they wanted a short contract, say, two or three years, they could only get it at an_ increased rate, and that if they wished to havo the same rate offered them they must make a conc at: least five ""years, this fivo years' contract was the arrangement come to, and the executive believed that that was the best which could be don© for tho producers. (Applause.) Chee9o production had increased so Tapidly and heavily that it was not to be wondered at if tho shipping companies had not been able to cope with it all exactly as was desired. In the absence of somo good estimate of the increase, it was an exceedingly difficult matter for th© shipping companies to make adequate provision for accommodation for tno produce. It had been arranged to give. Auckland and North Taranaki greater facilities for exporting their cheese, and to have a weekly loading at Wellington. If the weekly loading on to the Homo boats was carried out, it_ would, lie thought, prove a perfectly satisfactory arrangement. It hail not been possible to circularise the members of the association because the executive had to deal with tho matter first, and tho executive only met on the previous evening. Dissecting the Circular, Everyone, probably, had seen tho circular Eigned by seven exporters. Whilo that circular did not contain many misstatements, it contained many misrepresentations. (Applause.). Tho exporters had approached the shipping companies with a view to the exporters getting a separate contract on tho same terms as the association's contract. Now, th© exporters wore finding fault with tho association's contract because they (the exporters) had been refused it. The shipping companies had made th© contract in the interests of every producer in New Zealand. The circular to which he had just referred stated that there wero many serious defects in the handling of our produce. He was not awave of many defects, and if thero were any they were entirely duo to the increase in the export of choese. The circular alleged that it had been promised that before the next agreement was entered into the export houses, as well as tho National Dairy Association, would be consulted. "It may be true," remarked Mr. Morton, "but if it is, I believe that the shipping companies would have told us." Further, the eircular contended that the contract should not bo finally arranged without its being discussed at the annual meeting. "Such a course," said Mr. Morton, "would have been out of all reason. I have always understood that it was in tha hands.of the directors to entirely manage tho affairs of the association. If tho directors aro not 'thought capable, replace them." Then a statement was made to the effect that by making a five years' contract the association was preventing competition. Now, thero had always been a saving clause in the contracts to the effect that if there was a fall in freights the association was to get tho benefit, and .that was in the new contract. (Applause.) Tho man who prepared tho circular did not know what he was talking about, and knew nothing Whatever about shipping contracts. Meat and cheese were never carried on the same decks, so the output of meat could not, as the circular asserted, affect the accommodation available for dairy produce. It was an absolute mis-statement to say that Australia, was petting a cheaper rate than New Zealand. When the rates wero properly understood and correctly analysed it would be seen that New Zealand had the cheaper rate. Criticism Begins. Mr. Bracken (Pahiatua): Is this meeting to understand that this contract is already made? Mr. Morton: Tho contract is signed. It was signed by the association's representatives in Christchurch on March 7. Mr. Bracken said that the members should have been consulted about the contTact, and that such conduct as that followed by the executivo was tantamount to "stealing a march" and was liable to breed distrust. Cries of "No." Also applause. Mr. Morton replied that tho custom was well known, and that the custom could not be departed from without additional expense. Mr. A. Gray (of Messrs. Wright, Stephenson and Co.). one of (lie merchants who signed the circular, asked what inducement there was for o shipping company to offer to carry the produce for less than tho Shaw, Savill Co.. if tho 'Shaw, Savill lino was to be given the chanca of carrying the produce at the reduced rate offered. _ Mr. Gray alleged that there was a shipping combine, and that what was wanted for a low rate of carriage was competition. "We should not let them (tho shipping companies) use us; w© should use thera," he remarked. There were two shipping companies anxious to get a "cut-in" at the business, but they were practically prevented from doing so. Mr. C. B. Beattie (Woodville) asked how tho .£545 subsidy which tho association received, was mado up. Mr. Morton: «£IOO from the two shipping companies. .£IOO from the Government, and ~15 from the A. and P. Association here. Mr. Beatt.ie said that tho receipt of a subsidy from the companies hampered the executive.

as it. ought to. 110 hoped that the discussion, while it could not afi'cct the contract just made, would have a good effect on future contracts. "Association's Wise Act." Mr. E. Griffiths (of Messrs. Griffiths and Co., New Plymouth) held that tho association could savo an incomprehensible sum by a better system of marketing As to the shipping contract, it would havo been difficult to make a better one. Mr. Morton had, in his address, exhibited a complete grasp of tho question. Mr. Dobson (representing Messrs. Weddel and Co., London) expressed tho opinion that tho shipping contract just mado was a good one from the association's point of view. Ho read a letter from his principals, saying that the association had acted very wisely in securing an extension of the former contract, especially as the new contract included a saving clause. Mr. D. J. Williams (Meremere) congratulated tho executive on their having inado a contract which ho regarded as good. At the same time, ho suggested that better terms might havo been mado if it had been possible to combine tho exporting interests of meat, wool, and general merchandise with those of dairy produce. Then there would bo greater competition for the contract, resulting in better terms and cheaper freights to tho producers. Dumping and short shipping had undoubtedly adversely influenced prices. Mr. Bray (representing Messrs. Bray Bros.) said that even if the new contract would not be recalled the exporters wished to bo consulted in tho future. Mr. K. W. D. Uobortson, an exporter, said that in the past there had been antagonism to tho association on the part of some exporters, and that had been all alonf tho cause of trouble. The ideal conditions would bo representation of exporters on the executive of the association. Failing that tha exporters wero entitled to some say when contracts were being made. Mr. Hughes observed that whilo abroad last year ho noticed a tendency to higher freights everywhere, and therefore he thought that the association had done well in the matter of the new contract. Mr. W. Fisher,- Carterton, said that tho .£4OO spoken of as a subsidy from the shipping companies was not ■ a subsidy, but was money paid for work done, and should be entered in the balance-sheet as money given for value received. Speech by the Secretary. Mr. J. ft. Harkness, secretary of tho association, said that ho had come' to tho meeting with tho firm intention of making a fighting speech, but after hearing the speeches of tho people who had signed the exporters', circular, he was satisfied that there was nothing to fight. A voice: No! Mr. Harkness: Did someone say "No." If ho did let him come up here and mako a fight of it. (Applause.) Mr. Harkness, continuing, said the speeches of the other side had been apologies, and that the men who had signed the circular seemed to be ashamed to own it now. The speakers had come on to tho platform as his children used to como to nim, saying "Father, I have been a bad boy, and I won't do it again." You can't fight fellows like that, added Mr. Harkness; you can only extend your hand and say : "Friend, let me help you." Mr. Jacob Marx (Mangatiki) said that the directors should bo regarded as the friends of the association, and the association should stand by them as long as possible. Ho would do so. At the conclusion of tho discussion, Mr. C. It, Belittle, Woodville, moved that it should bo a recommendation to the incoming executive not to accept anything further in the shapo of subsidy from-the shipping companies. Mr. S. Turner, of Messrs. Lonsdalo and Co., seconded the motion. Mr. Astbury, Mangatoki, moved that tho matter should bo left to the executive. He thought that tho association should stick to tho .£IOO per year obtained from tho shipping companies during the currency of the new contract, but that at tho end of the contract no further subsidy should .be accepted. Mr. Beattie then withdrew his motion in favour of Mr. Astbury'a amendment, and finally, on the suggestion of tho president, Mr. Astbury withdrew his proposal, tho idea being that thero was no need for any resolution at present.

Mr. P. Nathan (of Messrs. Joseph Nathan and Co., Wellington) remarked that the executive* had no doubt done its best, except that it had rushed things too much. Those who had grievances xo utter had no other course open than the circularising of members. The shipping companies had not sent out a smart man from England to fix up .a contract just for the benefit of the association. The association should be independent of the shipping companies' subsidy; should tell the companies to keep it ni their pocket.

Mr. Turner (representing Messrs. Lonsdale and Co., London) contended that shipping freights were not rising, but were falling, and that that was the reason for the haste of the companies to lnve a contract made. What was wanted was a weekly delivery in London. The association was,a splendid institution, but wtilo it took a «übsidr from tha ship* joins wmp.jnjM, Jt could sot talk to ttona