THE PRICE OF MILK

Dominion, Volume 9, Issue 2760, 2 May 1916, Page 7

THE PRICE OF MILK

MAYOR'S CONFERENCE

TALK BETWEEN FARMERS

AND YENDORS

COMMITTEE SET UP

There wero between 30 and 10 representatives of the dairy farmers, the Dairy Farmers' Association, the milk vendors, and the AVellington .Milk Vendors' Association assembled in the City Council chamber last ovuning to discuss the price, uf-milk. question -at tho behest c# tho Mayor (Air. J. P. Luke). At the outset, the Mayor said that there was no need for him to apologise for convening tho conference,, as the exuestion they had to iliseuss immediately affected the people, whose.'-interests ho had to guard. Lust year, as tho result of a similar conference, they had been able to come to n basis of settlement that was Of benefit to the , public, and prevented the rise .in price that was foreshadowed at tho lime. Ho was not saying that the changed conditions consequent upon the war might not justify the price; but they wanted to kiiow those reasons,, and if they were not satisfactory, they wished to know why normal conditions did not prevail. He did not wish to discount tho interests of the farmer, who had a good deal to put up with. It had been stated by farmers adjacent to Wellington that they could get just as much for their milk by sellin" it to tho factories as by selling it to the vendors of the city, but it seemed to him that they must be receiving a substantial increase compared with what they got from tho factories, ff the conditions were such; that the farmers could not supply. Wellington with milk at a cheaper rate, then the pubTitS must view tho situation, not only from their'own, but the farmers' standpoint, but without knowing very much about it,

it would take a good deal to convince liim. irhy, when the fanners put tho price up 3d. 'a gallop, the vendors should raise it by id; a gallon. • He could not, for the life of him, understand why there should' be an increase on an increase—an increase made by the Milk Vendors' Association—over and abovo that made by the farmers.

■Mr. Henry Bod'ley interjected that there was no ouch body as the Milk Vendors' Association. He had put it to the test on the basis of it being a body to sue or bo sued.

The Mayor said that if what he had stattxl was brought about by men having small runs of thirty gallons or under,

then it was up to the asociation, or the group.that it represented, to give bigger runs. The City Council was faced with, the position, I and must do its best to obviate an injustice to the public. The Mayor also suggested that the milkmen should try ami obviate so many carts going, into the one .street, ami make up their runs by determining the areas to be served. He was out to protect the interests of tho people, who were a great contracting authority m this matter, and wished' to conduct the conference without any reference to the 1 clearing depot.

Mr. Ifyder Association) said that his association hai been formed to maintain a uniform price . for milk—to keep the ■ price as nearly that of butter, fat as possible. In February they found themselves up against it, with the price below'that of butter-fat, and had liad to. raise it to Is. a gallon.

Mr. Petherick (secretary .of the Milk Vendors' Association) said, that his assO' ciation was an incorporated body under the Incorporated Societies Act, and was stronger to-day than ever it was in Mri Bodley's time., /They wore saddled with tho price the farmers charged in considering the pricc at which the milk waa to bo vended to the public, and ho gavo the assurance that there was no ex. ploitatiou of tho public. On account of the increase less business was done, and the : profit made was less. He took it that the order should be thai the chairman should..first satisfy himself as to tho justification for the farmers' prico to tho vendor?, and from that ho was prepared to carry on, and justify the vendors' price. ) The Mayor said that from figures sup-? plied the price of milk to tho vendors in March, 1915, was 9d. a gallon, and from April to July lid., and the retail prico was Is. 4d, in March and Is. 8(1. from April to July. This yeaf the price to vendors in MaTch was lOd., and tho milk was retailed at Is. Bd., whilst in April it was Is. Id, to tho vendors, and was being retailed at 2s. Whilst the public were being charged Is. 4d. in March this year, as against lid. last March, they were being charged 2s. this year, as against Is. 8d: for the corresponding period of last year. Mr. Pethcrick said that the Mayor, in pressing him for a statement, was "getting at them," before he satisfied himself about the fanners' position. ■

The Mayor replied that what he wanted to satisfy himself on was as to how they justified ari increase on top of tho formors' increase. He „was afraid that it would take more ingenuity than he possessed to go into details ss to the cost of production. .*• Further reiteration onsued cs td tho justico of tho double increase that tho public had to bear, Mr. Pechorick again suggesting. that the farmers should make their statement first, as at present they were throwing. the onus upon the vendors.

Mr. Ward (secretary of the Dairy Farmers' Association) said that the rise in tho price of milk was duo to a combination of cicumstaucps over which they had no control. Though there wore 10 .per cent, more farmers now than on tho samb date last year/tlicro. was a 10 per cent, decrease in tho amount of milk coming into Wellington, One' of the reasons was the drought, and the failure of the root crops. Owing to the shortage they were laced with, the position ot paying more to the farmer or not getling the milk at all. But really it was tho vendors who had fixed the price by offering fanners more for the milk than the Dairy Farmers' Association was ,ing. and when they were offered a certain price it was nut in human nature for them to sell for less. Their price had been lessHhan was being offered by some of the vendors.

Tho Mayor asked if tho price that wal being paid,for milk at ' tlie Treutham camp had affected the position. ■ Mr. Ward said they were ■ getting a penny per gallou more at Treutham than milk was. being sold for in Wellington. A delegate asked Mr. Ward if it was the intention of his (tho farmers') association to raise the-price this month, but for the conference the Mayor had called. Mr. Ward answered iu the negative, and proceeded to.quoce the names of farmers whoso production had greatly fallen owing to tho conditions mentioned. Mr. Petherick said that Mr. J. P. Brandon could give good reasons why. the increased price was offered. Mr. Brandon said his -company were compelled to raise the price, as the Farmers' Association had refused to supply them. The Mayor said that it seemed to him that they had to accept any rise tho farmers and vendors put upon them. Just fancy 70,000 people in Wellington being dependent on the wliiui of the farmer on tho one hand and tho vendor at the other! 1 If there was not a way out of it, they would hud a way out of it, if the council had to vend the milk themselves. He was not at all satisfied with the attitude both sides had taken up at the conference.. If there was no spirit of conceding anything he did not see how tliey were going to gain anything for' the public. Councillor J. E. Fitzgerald said that whether it was right or wrong certain figures had. been given justifying the action of the farmers, and on the part of Mr. Brandon's company in offering more money. He thought it was now up to Mr. i'ethorick, a? secretary of his association, to show why they increased tlie price of milk. He also said that Mr. Bodley should be heard. Mr. Bodlcy said there was a proper sequence in everything. The fanners had stated their case, and Mr. Petherick, With remarkable finesse, had said that in the main he accepted the figures, but declined to go on. Ho accused the Vendors' Association of bluffing and throwing dust in tho eyes of everyone. Re said that an average of Bd. per gallon was a fair thing. Councillor J. Godber wished lo know how it. was thil when milk was lid, to the vendors and was retailed at Is, id,,

that when, it was lid. to tho vendors, it was Is. Sd. retail, and whon Is id. to vendors it was 2s. retail. IlMt. lie thought, tho public had a right to know. Mr. Brandon gave as a reason lor that disproportionate increase twit tho nulk was sold in less quantities as it increased in price', and cosi of vending small Quan-tities-was greater than iu Venning' large, Jte also said there bad quito recently been a 10 per cent, increase m wages, consequent upon tho vise in the cost ot I living. . ' After further discussion thcMayoi pio- j posed that representatives from each suto , should adjourn to his room and try to conio to some arrangement that won a tend to make milk a littlo cheaper lo the consumers of Wellington. If they could not do so the council would have to act*, but if the.V came back with a : reasonable compromise which would satisfy them all they would be heartily congratulated. On Councillor Fitzgerald s suggestion each association was represented by three gentlemen,. and tho outside ers aui outside vendors by one cach. Lhis was hpproved. Those appointed were:—Farmers cuation, Messrs. liyder, Straud, and \\ aru (secretary); the Vendors' Association, Messrs. Williams, Osborne, and Pcthmck (secretary); outside farmers, Mr. Al .UGnaie; outside vendors, Mr./H. Bodlov. These gentlemen retired for halt an hour, and on returning Mr. Peiheriek said that he wished to ask tho chairman one question: AVns he satisfied, ,lrom the information supplied, that the rarinei> piice of Is. Id. was a fair price for them to chnrso the vendor? Tho: Mayor said -ho bad got to be satisMr- Petherick said 'that under those circumstances lie would hand 111 a prepared statement'that would snow that with milk at lldJ it had been retailed at fid. lier quart; and that with milk at Is. Id. (including freight) it was retailed M fid. l»r quart; that the output ol milk was less at 6d. tlian at 5d., anil the net profit was less when selling at Gd. than at sd. They could not say what would be tha selling price until they knew what prico the farmers were prepared to sell at to the vendors. . . The Mayor: Then there is no settlement—the conference is abortive. He asked that the matter should be iurtuer considered, and suggested another contcrence of three from cach side to meet later on. After further discussion this was agreed to. Messrs. Williams, Brandon, Petherick and Bodley were appointed to represent the vendors, and Messrs. Ward, Ryder, Strand, ; aiul M'Kenzie to act for the farmers.' , The chairman..said he would call them together almost immediately..