Fixing Butter Prices

Horowhenua Chronicle, 19 October 1916, Page 2

Fixing Butter Prices

VALIDITY OF ORDER - LX-COUNCII, TO BE TESTED. Wellington, Yesterday. In connection with the regulations which have been issued by tho Government fixing the maximum price of butter and providing for the issue of licenses to those factories whoh export cither butter and cheese, it is understood that steps are being taken to settle the question which lias been raised of the validity of an Order-in-Couneil making those regulations in this connection. The following circular has been issued to the dairy eompaies by tho producers' committee:— "We are appointed to represent the producers' interest in connection with the JBoard of Trade proposals to regulate the price of butter upon the local market. Such a proposal involves the assessment over the whole of the butter-fat supply to butter and cheese lactone., within he Dominion. A copy of tho Gazette notice and a memo setting forth the proposed means of giving effect to the arrangement are being posted to eaoh dairy c-mpamy by Mr Triggs, who has been appointed licensing authority under the arrangement. These will fully i xplaiu the petition. After considering the proposition and its bearing upon the several and varying opinions represented, .and l after taking legal ■ pinion, we have decided to contest the validity of the order in council, j Meanwhile the provisions of the proclamaton are in force and we advise dairy companios forthwith to make application for their licenses, otherwise j s -rious trouble and delay may arise in connection with shipments per steamers due to leave shortly. We j understand that if the proclamation is found to be ultra vires the licenses j will become inoperative. We also .recommend the dairy companies which do business upon the fccal market to sell their butter at the rate to retailers corresponding with not more than Is 7d per lb to consumers andi to maintain supplies for their usual 'business, during the shorti Itime before t!ie decision is likely to be made. C'nIvss ths is done the position will be seriously complicated. If the proclamation is sustained we shall in tho interests of producers deem it our duty to assist the authorities in making the schemo as complete and satisfactory as possible." (Signed) Arthur Morton, Jacob Marx, H. E. l'acey, AY. Fisher. W. D. Powdrell, C. I'. Agar.