WELLINGTON NEWS

Hokitika Guardian, 19 May 1926, Page 4

WELLINGTON NEWS

TESTING CONTROL BOARD’S ■ POWER.

(Special to " Guardian.”)

WELLINGTON, May 17

Tli.it sonic sort of legal proceedings would follow upon the announcement of the Dairy Control Board that absolute ■ Control would become effective on August Ist was expected and last week a suit was filed under the Declaratory Judgments Act. 1008, in the Supreme Court, asking for interpretations of numerous questions. How necessary this appears, may be judgment from the questions submitted. In the Dairy Control Act “producers ” are defined as meaning “ persons carrying on business ns suppliers of milk and cream to factories manufacturing dairy produce for export.” It is asked that in the case of a dairy company that purchases milk and cream outright, and sells the .greater part of the resultant product in New Zealand, exporting only a small proportion which of all the suppliers of milk and cream in such case arc “producers" as defined by the Act. and. if they are not all producers, which of them are to he deemed to he “producers” for the purpose of electing producers’ representatives to the hoard. The jCct refers to the Hoard as “ acting as the agent of the owners.” The plaintiffs wish to know whether the authority given in another section of the Act to the Board j “for the sale and disposal of dairy produce on such terms as it thinks ad- ] visahle.” entitle the Board to sell and i dispose of dairy produce contrary to express instructions given by the maim-, facturcr and/or the owner. May the Board enter into contracts for the sale of dairy produce to foreign purchasers and take the risk for having to sue tor j the price thereof in foreign courts. Ts the Board entitled to make contracts! for the shipment or for the sale ol , dairy produce not yet manufactured?! May the Board give unlimited credit or any credit to purchasers for dairy produce sold by the Board? Js the Board empowered to borrow money as agent for the owner or owners of dairy produce? Does the law allow or compel tlio Board to pool all produce? Can tlie Board prohibit export of the produce of any manufacturer? Under Section 16 of the Act the Board has j power to give security for advances, as if the Board were the legal owners of i the produce. Section 17 lays down that ail moneys collected h» the levy on dairy produce, all receipts from sale of produce, and all other moneys received by the Board shall he paid into a separate account, and shall he payable as follows:—(a) To expenses, and other charges incurred by the Board ; (b) To salaries and wages ; (e) To travelling allowances, etc.; t'd) to repaying advances made by the Board to the owners of dairy produce; (e) to a reserve fund; (f) payment of the balance to the owners of dairy produce controlled by the Board in proportions to be fixed by the Hoard by reference to the quality and grade of the dairy produce handled by the Board in respect of the several producers or other owners of dairy produce. The plaintiffs wish to know whether, in the event of the Board giving securing over dairy produce, the lenders would have a power of sale at the discretion of the lenders? Could the security take the form ol mortgage of the documents of title, giving the lenders power to fix the time and place of selling the dairy produce secured? There arc numerous other questions all of an interesting and pertinent character, and the Supreme Court’s decision will he awaited wit'll a great deal of curiosity. .A TIME OF STRESS.

Bankers and others who have carefully analysed the trade figures and banking returns predicted that a period of stringency was approaching, and urged economy ami the exercise of thrift. But their warnings and appeals were generally disregarded, and there were not wanting those who professed to he unable to see any prospect of ton'd times. Now it is realised tin there will he a considerable number of unemployed in the country. They can already he counted hv hundreds in the four cities, and they will presently ho noted in the country towns. There are large numbers unemployed in 'Wellington, notwithstanding that the City Council lias a considerable amount of work in baud involving the employment of many unskilled workers. The Government will have a hard task meeting the situation, for the Treasury is not flush of cash and there is still the five million loan to be floated. At present the unemployment is confined to the class known as the “ casual,” but others are likely to he involved. Trade is slackening and evidence of this is to be found in the number of empty shops to he seen in the main streets. If farmers are walking off their farms defeated, so arc shopkeepers giving up business and leaving their shops. In the ease of the .farmer the fancy price of land with tile big mortgages has brought about de-_ feat. and in the case of the shopkeepers it is exhoibitaiit rentals that is mining theni. Rentals in Wellington whether for shops, private houses, flats or shacks are extortinnte and a period of stress will force adjustment in this respect. Rents, if cut by half, would even then he on the high side in many cases. The time for the necessary adjustment is fast nppraoehing.