Page 1 Advertisements Column 1

Pukekohe & Waiuku Times, Volume 4, Issue 70, 16 August 1915, Page 1 (Supplement)

Waikato Co-operative Dairy Co., Ltd Butter-Fat Payments. August, 1915. For some weeks past numerous letters and reports have appeared in various newspapers, endeavouring to disprove payments made to suppliers during the past season by the Waikato Co-operative Dairy Co., Ltd. Among other publications was a letter signed by F. Lowry, Pokeno. We find that copies of this letter have been reprinted in Auckland, and circulated far and wide. Lowry is well known to us as a former cream-carrier employed by our Company at Bombay, and we have no hesitation in saying that we believe he did not write the letter in question. On the 4th December, 1914, the W.C.D.C. issued a circular to its suppliers at Pokeno, which clearly defined the position so far as Mr. Lowry is concerned. Tne company, after expressing regret for finding it necessary to give the fullest publicity to the matter, made an explanation, based on particulars supplied by Mr. Lowry, in effect as follows: On the 12th August, Mr. Lowry notified the N.Z.D.A. and the W.C.D.C. that he was sending half of his cream to each concern. At the end of a given period, returns were compared, and he found that the N.Z.D.A. cheque was 35s to the good. He then decided to send all his cream to the Association. Subsequently Mr. Hudson called and persuaded Lowry to forward a sample of his cream to the Department of Agriculture, Wellington. At the same time a second sample was sent to the W.C.D.C. Factory, and the test of 39 was returned at once. Later the N.Z.D.A. return of 41 was received, and finally the Government test of 38 came to hand, and was received direct by Mr. Lowry. Now, immediately the W.C.D.C. knew that half the cream was gcing to each factory, they at once instructed their Mercer Factory manager to make regular check tests, so as to make certain that their tests were correct to within half a point. Investigation proved that the opposition concern's tests were either inaccurate, or that Mr. Lowry's statements did not conform with facts in the possession of the W.C.D.C. While acknowledging that the divided supply is a great temptation to all concerned, the W.C.D.C. decided in future to refuse to take cream from any supplier under such conditions. It must be quite evident to all with any knowledge of dairy matters that a systematic campaign has been conducted for the special purpose of diverting public attention from the fact that the association's average prices do not compare too favourably with competing concerns, and the most extraordinary thing is that the association's own suppliers have been the last to recognise that fact. In order to give a complete denial to statements, a special audit of the W.C.D.C.'s books enables us to publish the following certificate:— " The Waikato Co-operative Dairy Co., Ltd. "The total average price for the season to shareholder suppliers who delivered daily from September to March, including the bonus of l£d and interest on capital, will be 14.205 pence at the factory. " The total average price over the whole supply for the season (Ist July, 1914, to 30th June, 1915), including bonus and interest as above, is 13.938 pence at the factory. " I have compared the above figures with the original documents and books of the company, and have checked the calculations, and hereby certify that they are correct. (Signed) " STANLEY G. CHAMBERS, F.1.A.N.Z., " Auditor. "Hamilton, 27th July, 1915." The misprint in the "Herald" re September price in no way affects the yearly average prices quoted. The circular referred to, after dealing with the prices, continues as follows: — (a) The Goodfellow Company has an ingenious way of stating their case, but on analysis it does not show that they have been more successful than usual in their business in the Upper and Lower Waikato districts, and certainly not as successful as most other companies. (b) I am a supplier of the New Zealand Dairy Association, and have reason to be grateful for my connection with that company, for in addition to the advantage of bigger payments for butter-fat, we have advantages in other directions also. (c) Some months ago I had a conversation v/ith Mr. Goodfellow on the question of testing, and he assured me that their testing was accurately done, which I am not disputing, and lam not suggesting to the contrary. That gentleman then announced that Mr. Pacey, managing director of the Dairy Association, was having the tests read up to an extent which would involve the Dairy Association in a loss of £15,000 for the season. I thought this an extraordinary statement for Mr. Goodfellow to have made, but my experience as a supplier to Mr. Goodfellow's company and to the Dairy Association leads me to believe that the amount was understated. (d) Unfortunately the Waikato Co-operative Dairy Company does not follow the usual practice of co-operative companies of publishing its over-run. If it did we should have a better means of determining to what extent the difference really exists. —I am, etc., F. LOWRY. Pokeno Valley, June 28th, 1915. (e) Is it not time farmers' unions, farmers' clubs and societies, and individual farmers, began to agitate for a law making compulsory the publication by all dairy companies of their annual over-run, also the particulars bearing thereon, viz., total butter-fat paid for and total butter manufactured. (f) What is over-run? It is the foreign matter in butter other than fat, i.e., water, salt, etc. If the tests or weighings were over-read, or the tareing under-read, the over-run would be depleted. The reverse would be the case if tests and weighings were under-read or tareings over-read, that is, the over-run would be inflated. On the past season's values, a company paying Is l|d, with an 18 per cent, over-run, would, by increasing the over-run to 25 per cent., be able to pay nearly Is 2|d. Waikato Co-operative Daily Company's Reply. (a) This statement is either absolutely incorrect, or proves that the writer is unacquainted with his subject. (b) Mr. Lowry has evidently good reason to be grateful, especially when, according to his own statements, he is receiving advantages in other directions also. (c) This statement indicates a further lapse of Lowry's memory. The remark made was to the effect that if Lowry was receiving three points above Government tests from the N.Z.D.A. (as he stated), the result would mean a loss to that company of £15,000 a year if all were on the same basis. Obviously absurd! (d) The W.C.D.C. is run in the interests of its suppliers, and not for the public generally; therefore, why should we furnish a competing company with the information for their guidance? The very fullest information is, and has always been, available to our own people. (e) The W.C.D.C. would heartily welcome and support a scheme whereby all cooperative companies' books were subject to an annual State audit, on the same line as municipal accounts. What on earth is the use of the publication suggested in (e) without a State audit first? One well-known dairy concern at present employs an auditor who is rapidly approaching his century! (f) The insinuation here is quite plain. Mr. Pacey has been reported to have freely stated round the country that the W.C.D.C. must have an over-run of from 25 to 30 per cent, in order to pay out the prices quoted. We would like Mr. Pacey to deny this report, as we consider no honourable gentleman could possibly make such an infamous assertion. Auditor's Certificate. " I hereby certify that the over-run of Waikato Co-operative Dairy Company, Ltd., for the period Ist July, 1914, to 30th June, 1915, on the whole of the butter-fat purchased from all sources, was 20.434 per cent. (Signed) " STANLEY G. CHAMBERS, F.1.A.N.Z., " Auditor. " Hamilton, July 26th, 1915." At all times any supplier to our company may take a sample of cream and post same direct to the Department of Agriculture for check-testing purposes. Bottles containing preservatives may be had from the company for this purpose. The above certificate proves that the W.C.D.C.'s over-run is slightly under the maximum obtainable with an absolutely accurate test. Yours faithfully, WAIKATO CO-OP. DAIRY CO., LTD. W. GOODFELLOW, Managing Director.