NEW ZEALAND DAIRY ASSOCIATION.

Pukekohe & Waiuku Times, Volume 6, Issue 306, 31 August 1917, Page 2

NEW ZEALAND DAIRY ASSOCIATION.

ANNUAL MEETINCThe annual general meeting of the New Zealand Dairy Association was held yesterday in the Premier Hall, Pukekohe. The attendance numbered close upon 200 members. Mr H. E. Pacey (Chairman of Directors) presided and all the other Directors were present, viz., Messrs A. M. Barriball, R. H. McKenzie, W. C. Motion, J. T, Young, T. C. Blackett, R J. Maisey, and W. E. Clark, and the Secretary (Mr H. W. Dent). The Chairman, at the outset, congratulated the members on such a large company being present, which was an indication of gratifying interest in the affairs of the company and perhaps a desire to hear the pros and cons of the motion of which Mr E. C. Banks had given notice of his intention of moving for the Association to take up shares in the N.Z. Co op. Bacon aad Aleat Packing Coy Ltd.

ELECTION OF DIRECTORS The Secretary reported that Mr W. C. Motion had been re-elected without opposition as a Director for the Lower Waikato district and that on a poll of shareholders for the Upper Waikato seat Mr R. J. Maisey had been re-elected by 12,552 votes (cast by 46.5 members) as against 4657 votes (cast by 145 members) recorded for Mr I. H. McNair. The unsuccessful candidate congratulated Mr Maisey on his success and took the opportunity of thanking those who had voted for him (Mr McNair). It was a difficult problem, lie ?aid, for an unknown man to stand fur election under the present system and he 'oolieved the adoption of the wafll system would be a great improvement. That very little interests as taken in the election was shewn in the fact that only onethird of tho members had voted. The reason that he, £s a Matamata man, ha<r stood as a candidate was that they had no representation at Mataniata. It had been "a go" between butter and dried milk and (said Mr McNair) "good old butter had won" (laughter). Mr McNair added that he understood the Directors were now willing to givo the dried milk section representation on the Board and he would have pleasure in having another "go" (applause). Mr Hayes (Waiuku) mentioned that he had not voted for either candidate as ho did not think one end of the Waikato shpald vote for the other end. Mr racey reminded the meeting that two or three years ago he suggested a change in the representation system but members voted against it on a plebiscite.

Mr W. 0. Motion thanked members for returning him unopposed and assured them that it would be a pleasure to, him at all timo to further their interests. During the period, he said, that he had been associated with the Dairy Association his relationship with the shareholders had been a pleasant one.

MR PAOEY'S REVIEW OF THE YEAR.

The Directors' annual report and the balance sheet, particulars of which have already been published m these column?, having been read by the Secretary, Mr I'acey moved the reception and adoption of the same. His address will be found in full in a Supplement to this issue. Mr T. 0. Blackett seconied.

Mr R. speaking to the motion, said that with reference to the amalgamation scheme ho was strongly against it. He took up the position solely in the interest of the Association as ho was afrnid such amalgamation would only tend to new directors and olfii'ors being appointed at high salaries. (Laughter). The reason why amalgamation was not effected when first proposed was that one or two persons were not provided for. (Laughter) As to the South Auckland Diiry Association ho questioned the benefit that Association was to their Company He paid a high tribute to their Managing Director Mr Pacey) who, he felt sure, was :juite eapablo to look after their interests. Some suppliers, added Mr Maisey, had taken exception to Messrs Spragg's and Pacey's temperance principles but in his opinion it was an excellent thing for the Associ ition that they held those prinviples (applause.) If a man was wanted for heer or whiskey ho (Mr Maisey) could (111 the bill (laughter). COMMENTS AND CRITICISM

Mr Lusty (Orini) asked whether payments to suppliers had been rendered irregular by reason of the congestion at the freezing stores He considered it very unsatisfactory that payments had jumped fr.m I <> to 1'• and then np again. In regard to fiqal payments for cheese lie asked whether the same could not ho completed next month inste.id ofheinjj delayed until October 21st. He also made enquiry as to the number of votes in the two (Upper and f.owor districts, his belief being that the Upper Waikato wis entitled to an additional Director. Mr H. Moody (Alfriston) s'rong'y indicted (he Association on its policy of only offering 7.5 per cent vainfor shares resume! and also of inquiring before purchasing shares a guarantee from shareholders, who had ceased to ha suppliers, that if i restarting d drying thev would lejoin the Association. Waving in h.s hand the As-ociatior's circular relative to this matter, Mr Mo .i!v demanded that it shonM !io withdrawn iu the intorooti of Hi lair play. The cncular, ho said, was a Mot ou the fair namo of the and no loyal B.itish subpet should degrade hiDiself by c.iutihmant.iiig it. The Association hud no right to tie a man and, further, it was icgii'ttablo that anyone iu a co-operative society should bo called ou to lose -•> per cent of his capital. Mr Moody also expressed the h"pe that the Directors

would not only onsidor but would take action as regards altering the method of electing Directors. If the ward system of election was instituted suppliers, he claimed, would be more in touch with the Directors.

Mr Jos. Fulton (Whangarata) complained that not being any longer a supplier he had desired to devote the value of his shares to some patriotic fund but the Directors had refused to purchase them. Mr McKonzie (a Director): It never came before the Directors.

Mr Fulton: Well, Mr Pacey re fused.

Mr McKenzie: Mr Pacey is no the Directors.

Mr Fulton, continuing, said the Directors should scorn to take a man's money- and then turn him down. A voice: You turned the Association down,

Mr Joseph Henry (Patumahoe) remarked that Mr Fulton was to be rogarded as belonging to the opposition company. In his Mr Henry's) opinion the terms for purchasing the shares was very fair and indeed he remembered the time when payment of half value would have been gladly accepted. Mr Henry, in conclusion, asked whether the promised bonus of 5Jd would include the butter-fat levy refund.

Mr Hayes thought the 25 per cent reduction on the shares unjust and unfair but he argued that if members were dissatisfied they should still be loyal and instead of dropping out should try to improve things (applause). Mr J. T. Joung (a Director) reminded the meeting that if the members were not satisfied with the management theycould{getridof the directors. With regard to the ward system of representation he was strongly in favour of it. As things wero now ho might be elected by strangers contrary to the wishes of his own district, and thus they might lose members. He considered that the trouble over the 75 per cent value of shares was the result of competition as suppliers were paid up to the uttermost farthing, whereas if a little was kept back full value could be given. Mr J. H. Webb (Pukekohe) raised the point with regard to payments deferred from one year to another that suppliers who came in the following year reaped the benefit. That seemed to him unfair.

Mr Jas Pollock (Pukekohe) supported Mr Webb and said that the price of butter-fat represented the wages of the farmers and yet the Association took their hard earned money and carried it on to the next year (or the benefit of others. In some cases men who had gone to the front had lost Id or 2d per lb thereby. If such did not cease (added Mr Pollock) it would ruin the Association. Mr E. D. McLennan (Papakura) expressed himself as pleased with the report. It would be a calamity if any payment in excess of the real value was made. He was a supporter of the ward system, contending that thereby any member who had a grievance could consult their own representative. He desired to propose that the Association should be divided into six wards corresponding to the number of directors elected. The Chairman informed Mr McLennan that the resolution as no notioe of motion had been given could only be regarded as a recornmeudation to the Directors but he could assure them that the Directors would sympathetically consider it. He would agree to the motion being voted on at a later stage iu the meet. i rig-

Mr Saulbrey (Ngaruawahia) remarked that as a supplier of 17 years' standing he thought ithardou tho old suppliers to lose a quarter of their capital when they gave up business. At the same time a man who sold out at a profit was not entitled to consideration.

Mr G. P. Ewing (Whangarata) considered the Directors deserving of congratulation on th<* report and balance shoot. With regard to what had been said about the Association purchasing the shares of nonsuppliers at 75 per cent value Mr Ewinir reminded the meeting that the othor side of the question had to lio considered. An individual entered info an engagement and undertook a responsibility and he had no right to withdraw from that responsibility. Mr Moody : " Bunkum."

At this stage there was a sharp interchange of words between Mr Ewing and Mr Moody and the former remarked that it was not British policy to tear up scraps of paper like tho Germans Ihey, as members of the Association, he added, should be united in one common <vi like the Allies. (Applause 1 ) As oiio of the original suppliers lin considered that, he had received the fii'i benntir. of his thtrea

Mr J. Ili nry squired as to the prospect in repaid to the future payment. for 1 (litter-fat as per tin arrangement, wi'li the Government Another member asled whether in the event, of the Government purchasing the output of butter and cheese lift Company would he relieved fiom all lesponsihility in r«spent of cold storage. Mr 11. F. Wilkins .n (Pukelcohe, asked the reason for a number of members leaving the Association W.is it because a better price was pui.l hy the rival Company? It seem id to hint a ijuestion of with ILures M , PACEY SUMS ( r P. Replying to raised. Vf r i'acey said with regard to the s'uire question iliey sh- u!d compare things whicii w re similar. " It was unfair to sitv -oMi" people buy luck at p'f and you take < IT Jo per cent " '• he slures tli it were uudor discussion wore the old A shares issued ill the days of creameries, whore is the other Company had uo creameries. Th n creamery syttoin hy the wish of the suppliers had given way to home sepai atiou and when a creamery was closed in favour of homo separation that creamery was not so valuaUo an aa when running. If an as-er was wastod it had to be made up somewhere. There were

two ways of meeting such wasteone to provide such out of rapital and the other to pav for it by deduction of the butter-rat payment. By general consent it was met out of capital. With new suppliers coming in under altered conditions they could not be expected to take up shares to which old responsibilities were attached.

As to the question asked by Mr Wilkinson whether the reason for losing suppliers was because a better price was paid elsewhere, Mr Paoey asserted and said he couid prove that the Association paid the higher price. A voice: Goodfellow gives a better price. Mr Pacey went on to say that instead of losing suppliers the number of the Association's suppliers was increasing, particularly in the Pukekone and Waiau districts.

Reference, said Mr Paoey, had been made by Mr Maissy to the South Auckland Dairy Association but he (Mr Pacey) looked forward to the time when that Association would exercise a helpful influence towards adjusting prices and to ensure a uniform grading of cream. He hoped some uniform action would be the result.

As to irregularity spoken of in the payment for cream Mr Pacey stated that a crisis broke out which made it necessary to pay a restricted prioe owing to storage. As to cheese a full settlement from the Government had not been obtained and further payments would depend on the shipping of the cheese on hand. With regard to Mr Henry's question whether in arranging s|d per lb bonus consideration had been taken of a refund of the bntter tax levy, Mr Pacey said that there weuld be a refund to suppliers but he could not say the amount. With reference to future payments, Mr Pacey remarked that negotiations were at present going on with the Government and it was not desirable to make an announcement th ireon but he thought there was no harm in saying that in addition to 1/4 the Government would pay over the profits of the sale of butter in the Old Country. Mr Henry here interjected with the remark that he presumed that each company would have the right to still nominate the channels of distribution and Mr Pacey replied in the affirmative.

In conclusion, Mr Pacey mentioned that in the two districts as origin- , ally defined, the Upper and the Lower Waikato, distribution of voting power was made as even m possible. A UNANIMOUS VOTE The motion for the reception and adoption of tho report was then put to the meeting and uiuuiiuiusly carried. ELECTION OF AUDITOR On the motion of Mr Hayes, Mr 8. H. Matthews wns reappointed Auditor. THE BACON INDUSTRY Mr E. 0. Banks (MitUmata) in accordance with his notice of motion moved: "That the New Zealand Dairy Association, Limited, take up shares in the New Zealand Far mora' Co-operative Bacon aud Mo.it Packing Company, Limited, in ihe same manner as has been done by most of the Dairy Companies in Taranaki, so that all shareholders may participated in all bonuses paid by the Bacon Company." Speaking in support of the motion, Mr Banks pointed out the a Wantages to be gajned by tin Association taking up Bhares in the Bacon Company, which would produce a return of from six to eight per cent, In Taranaki, he said, twenty-three dairy companies had joined the company. Mr E. Neal (Buckland) formally seconded the motion.

Mr Hayes contended that the Association had plenty to do without taking up bacon shares. As several members had left the m«eting before the matter name under discussion Mr Ewing thought that it would not be wise for the meeting to pledge the member*. He suggested that the Directors should take no action until avery member had an opportunity of considering the question. Mr Ewing enquired of Mr Banks tho number of shares held by TXmock and Co., and was informed they held seventy thousand and the farmers thiriy thousand.

Mr Lusty : And you call it a cooperative concern. Mr Banks suggested that a circular letter should be sent to each member so that they would be better acquainted with the position. Mr Lusty strongly objected to this and said they wanted nothing whatever to do with p : ga and th<* socalled 00-operative concern.

Mr Henry said the P.iiry Assooiation should not enter into negotiation with theO'rapanv unless there Wis some corresponding benefit to be derived. After some further informal discussion Mr Moody moved as an amendment that the matter should ba referred to the Directors for full consideration and if the Directors thonght it advisable they should report to the shareholders. The amendment was carried 4.y ,V) votes for to six against. WARD REPRESENTATION On the motion of Mr McLennan, seconded by Mr E C. Banks, it was resolved that the meeting favoured the Directors being elected on the " ward " system and that the Directors should be requested to give effect to such representation. VOTE OP THANKS Votes of thanks were eocorded to the Chairman and Directors and the ! meeting then closed.