NEW ZEALAND DAIRY ASSOCIATION.

Pukekohe & Waiuku Times, Volume 4, Issue 74, 25 August 1915, Page 2

NEW ZEALAND DAIRY ASSOCIATION.

Shareholders' Annual Meeting' Chairman's Address. [ Continued from Page I.J A .NEW SrEF The increase in tbo number of borne separation cream suppliers has caused the directors to adopt the composite cream sample, which will take effect oo September Ist. This depaiture is cordially approved by the officers of the Dairying Division. It brings uur practice into line with that of all other factories in New Zealand. Not only have we acted on the highest official advice in tha Dominion and in accordance with the general practice, but exhaustive checks were made in our own factories, which demonstrate that the same bigb standard of efficiency can be retained at a considerable reduction in labour and expense.

THE WAIUKU FACTORY Another important step has been taken during the year by the erection of a new butter factory at Waiuku. The rapid growth of the business in and around Waiuku rrade the step urgently necessary—indeed, it should bave been taken before. It will permit of a considerable saving and increase of efficiency, and therefore will bring advantage to all suppliers to the Association. While all will share equally in the advantage, the suppliers in the immediate neighbourhood of Waiuku will have an especial interest in the new factory, for it is in every way worthy of the district. It stands upon an ideal site, it is of admirable design, and is being htted with a plant which is easily the best and moat up-to-date in the Dominion. The new factory is expected to be ready for work early in September, and will enable the Association to gather in new business. Mr A. Stevenson, tormerly of the Frankton Junction factory, has been appointed to the management at Waiuku, and his place at Frankton has been taken by Mr C. J. Parlane, who, though a young man, has already gained distinction in the industry. MR MORRIS' DEATH During the year the Association has lost its senior factory manager and the industry has lost one of its most illustrious members. The late Mr Sydney Morris was manager of the Fukekobe factory for about 25 years. He passed away in December last. Your Directors have recorded their apprecia'ion of the work and character of the late Mr Morris, and their sense of loss at his unexpected eud. They, however, were thankful to bave available a man of such wide experience and high personal qualifications as Mr W. Y. Kirkman, who was appointed in January last to succeed the late Mr Morris as manager at Pukekohe. SERVICES APPRECIATED

1 would here record my thanks to Mr Dent, the Association's secretary, to each of the factory managers, and to all other members of the staff for their loyal help during a a particularly trying season. I acknowledge the good offices of Messrs Lovell and Christmas, whose service as London agents has continued during the season. The retiring directors this year were Messrs Blackett and McKenzie; each of these gentlemen consented to re-nomination at considerable personal inconvenience. Under these circumstances it must be a source of gratification to them that they were returned without opposition. Their service to the Association entitles them to this recognition at this time. On behalf of the Board, 1 tender congratulations to Messrs Blackett and McKenzie, and welcome them back to their Beats at the Directors' Board. THE SEASONS OUTLOOK

The outlook for the coming season is particularly encouraging tor dairy farmers, The Association's manufacture for July and August is much larger than ever before. Unless the increase in recruiting exceeds what at present seems likely our output for the coming season will be greatly beyond that for any previous sensun. It is being augmented by the return to the Association of former suppliers, by shearing of new suppliers, and by old supplies being increased. The London butter market is h'rm and offers a brighter prospect for butter than ever before. There are indications that the value of butter will rule high. Cheese returns are also likely to be very good, although probably not as good as for the ssason just past, but much b:tter than usual. These expectations are of course subject to the ttade routes being kept open, and to sufficient ships being available to deliver our-goods to the world's markets. The outlook for ships is now better than appeared a couple of months since, and we have reason for confidence in the work which our Navy will do in keeping the routes open. The predictions are favourable to satisfactory weather conditions; thus the season promises to be big as well as prosperous for dairy farmers. May it also be a propitious one foi our Empire and its Allies. God Save the King! God defend the right! I move the adoption of the accounts and of the Directors' report."

Motion Seconded. Mr J. Henry, Patumahoe, seconded the chairman's motion for the adoption of the report, remarking that tbe shareholders should all feel satisfied with the way in which the Associations large and growing business bad been conducted by the chairman of Directors and his colleagues on the Board. Comments and Questions. Mr Pacey then invited comments and questions on tbe report, intimating that following the ordinary course of parliamentary procedure he would answer all questious and reply to points raised as a whole at the cloße of the discussion. WAS EVERYTHING CONSIDEKED? Mr Ramsey, Bombay, desired to know whether in arranging for the erection of the new factory at Waiuku the directors had takon into consideration the growing popularity of home separation, and also whether a site at the junction of

the railway with the main line would not have been better than a building at Waiuku. The quantity bonus question, be added, caused great dissatisfaction and in his opinion there should be only one price paid for cream and all cartage should be tree. The system he mentioned had proved highly successful in the north. ANOTHER OFFICIAL WANTED

Mr J. Smith, Kaipaki, asked for figures of the highest and lowest payments made at the different factories. He considered that too much work was cast on Mr Pacey. That gentleman even at a higher salary than he now got would be better employed inside the office, and they should get an expert to do the outside work. Mr Pacey was their general manager, and occupying that position he should not sit on the Board of Director?. Such simply meant tint the directors were dummies, as Mr Pacey naturally led them. Mr Pacey had been appointed by Mr Spragg, and he was following up Mr Spragg's methods. He (the speaker) thought it essential that all the small factories should have' been closed up when Mr Spragg droppad out; they were only a rope round Mi Pacey's neck. He was confident that it would pay to have an "outside" man and xo give him £6OO a year and a motor car so that he could go round the country and visit the factories. Mr Smith went on to say that he had been asked by some shareholders to express their dissatisfaction with Mr Pacey lecturing in support of Prohibition. They were paying Mr Pacey to work for the Association and not for the Prohibition cause. A man who got £IOOO per year, as Mr Pacey did, ought to occupy all his brains for the Dairy Association. LOYALTY BONUS. Another question asked was as to how many factories received the loyalty bonus. A WAIUKU OPINION. Mr C. tlodgkinson, Waiuku, considered that until only one price was paid to suppliers they would get opposition. The payment of different prices was injuring the Association. Further, if, they lost by catering for the local trade, as mentioned by Mr Pacey, they should knock off the local trade. He desired to know why, as promised, a launch had not been put on the Waiuku creek to collect cream; if such had been done they would not have been forestalled by the Waikato Dairy Company, who bad already arranged for a launch. WHANOAKATA PAYMENTS. Mr D. Hill, Whangarata, asked how the payment for cream to Whangarata suppliers compared with the payments made to Pukekohe milk suppliers. TUAKAU CREAMURY. Mr Dynes Fulton, Tuakau, claimed that half the suppliers to the Tuakau creamery were home separator suppliers, and that thus home separated cream kept the creamery going. WHAT FAYS BEST?

Mr Hayes, Waiuku, contended that all the small creameries should be closed up and home separated cream taken instead. He was convinced that home separated cream was the right system to follow. A voice: You cannot produce the same article from home separated cream. You are a clean supplier and I am a dirty supplier. (Laughter). Mr F. Fulton, Whangarata, said be was out for the most money every time, and he advocated that tests of creamery system should ba made entirely at one factory and of home separated cream at another factory, and then abide by the result. By that means the whole argument would be disposed of, Mr Hayes remarked that the question had been eolved over and over again and the home separated cream article had got the best price on the Home market. Dirty milk contaminated good milk and caused more trouble than a dirty tin ot cream. Alluding to strictures passed on Mr Pacey for being a Prohibitionist. Mr Hayes considered that it was a recommendation that he was so, and certainly every man bad a right to have his own views. (Applause). AN ALLEGED INSULT.

Referring to the criticism Mr Pacey in bis address bad passed in regard to tbe "break" at Aka Aka, Mr R. Walter, an Aka Aka supplier, contended that Mr Pacey's mention ot a "Scrap of Paper" was an insulting slat on English people. Mr Pacey bad been asked on a petition of suppliers owning 1000 cows to establish a cheese tactory. They were not Germans, he said, and should not be insulted. Mr Lowden, Aka Aka, also wanted to know what foundation Mr Pacey had tor referring to tbe meeting held as 9 "secret" meeting. Such was not correct. Tbe Waikato Company would not have got into Aka Aka but for the failing of Mr Pacey to give tbem a cheese factory. Mr Valentine stated that be aa an Aka Aka supplier had not been asked as to whether he would support cheese or butter, although Mr Pacey claimed that all Aka Aka suppliers were circularised on the point. THE EXECUTIVE PRAISED.

Mr G. P. Ewing, Whangarata, mentioned tbat he was one of the first directors of the Association. It had been suggested, he said, tbat in the early days tha system oi creameries should not have been adopted, but that home separation should have been preferred. Such speakers, however, overlooked the fact that there was no possibility of home separation in years gone by. The suppliers of borne separated cream did not take into account what it cost them to separate whereas at the creamery the Company paid for the work. He (Mr Ewing) conrgatulated Mr Pacey and the other directors on the repjrt presented tbat day, and also Mr I'acey on the address he had put before them. Other companies perhaps paid out more than they did, but a good many paid out less. Mr Pacey's Reply. Mr Pacey, in replying, said (hat to a good extent he agreed with what Mr Smith had said, and more particularly tbat he (Mr Pacey) was worth more than the £IOOO he was paid, whether ho worked inside or outside. (Laughter). The Directors had informally discussed Mr Smith's suggested appointment of an assistant official and the matter would be definitely dealt with. In regard

to tbe personal point raised by Mr Smith, be (Mr Pacey) desired to sav that he was a Prohibitionist, but he was not a Prohibitionist lecturer, although the latter was just what he would be if he had the necessary ability of power of speech. Even the £IOOO he received from the Association would not hinder him from speaking in support of a cause in which he sincerely believed. (Applause). If the shareholders desired to have- a change ot managers either because he wa« a Prohibitionist or for any other cause he would facilitate their wishes. Not that he wanted to go, but he intended to be true to himself and to his own ideals. (Applause). In tbe last six months his work had been such that he had neglected his family and even the Prohibition cause. (Laughter.) As to the suggested closing of the small creameries, Mr Pacey mentioned that several had already been closed. They had, however a doty to perform and the suppliers to smaller creameries earned the lesser payment! they received. Then as to the query, 'Was the factory at Waiuku needed?" When it was decided on, the railway junction aspect and the home separation question had received due attention from the Directors. They (the directors), however, recognised that they had to study the volume of business forthcoming in Waiuku. and the new business to b2 picked up. They not only consulted their own experts, but they availed themselves ot the advice of the Government experts. Be was confident that in a little time the Waiuku factory would justify itself and that there would be no need for anyone to apologise for it. As ti the payment for butter-fat supplied in cream form, Mr Pacey stated that the matter was under consideration by tbe Directors, and he asked the shareholders to await their decision.

In regard to the suggestion that all first-grade cream should be ptid for on an equal basis and that the Association should undertake the free transport of home separated cream, he considered it impracticable, as it would only mean the reduction of the aveiage. The Directors were, nevertheless, trying to solve the problem.

It was not correct that he had neglected to arrange far a launch to run on the Waiuku creek. The Directors were simply waiting for the opening of the Waiuku factory, and then the necessary steps would be tak;n.

In regard to the proposal to give up the local trade, a local market was generally an advantage, and it was only that special circumstances altered things last year. The Government legislated to protect the local market and it was not for them to evade the law.

Criticism had been passed on the fact that men had been employed on organisation work, opt such employment had become necessary to counteract the sowing of discoid by representatives of other interests.

Mr Paccy proceeded to refer to the question asked by the Aka Aka suppliers. He said that he had referred to a "secret" meeting aa certain people, not directly interested, were not asked to attend. A voice: Yes, they were! Mr Pacey maintaintd that the meeting was privately convened/and that some who had attended it had since withdrawn their support A voice: Name one. Mr Pacsy: It is not for me to do it. A voice: You can't. Io conclusion, Mr Pacey claimed that the Association's payments were as high as most of those of the Taranaki companies. Resolution Adopted. The motion for the adoption of the report and balance sheet was then submitted and was carried unanimously. Further Replies. Mr Walters, Aka Aka, claimed that Mr Pacey had not explained why a cheese factory had not been" erected at Aka Aka. Mr Pacey replied to the effect that the rnaßon was that at a meeting it was agreed that the wishes of the minority should be bound by the majority, and upon a vote of owners, based upon the number of cows, butter had a majority. He added that Mr Valentine was a new supplier and bad been overlooked when circulars were sent to last season's suppliers. Reminded of the question asked as to the payments of loyalty bonus to factories, Mr Pacey explained that the policy in question was one of the fighting policies of the Association. He had not the actual figures, but the amount paid was infinitesmal. Other Business. A vote of £250 to the widow of the late Mr Sydney Morris was approved of on the motion of the chairman, and Mr Seering H. Matthews was re-appointed auditor. The meeting closed with a vote of thanks to the chairmap.