THE PRICE OF BUTTER-FAT

Stratford Evening Post, Volume XXXI, Issue 70, 19 October 1916, Page 5

THE PRICE OF BUTTER-FAT

TEST CASE ON LEVY. PRODUCERS’ COMMITTEE ACT. Per Press Association. Wellington, October 18. In connection with the regulations which have been issued by the Government fixing the maximum price for butter, and providing for the issue of licenses to those factories which export either butter or cheese, it is understood that steps are being taken to settle the question which has-been raised of the validity of the Order-in-Conncil making these legutatiOus In this connection the following circular has been issued to dairy companies by the Producers’ Committee : i “We wore appointed to represent the producers’ interest in connection with the Board of Trade proposal to regulate the price of butter upon the local market. Such proposal involves an assessment over the whole of the butter-fat supplied to the butter and Aieese factories within the Dominion. A copy of the Gazette notice and memorandum setting forth the proposed means of giving effect to the arrangement is being posted to-day to each dairy company by Mr Triggs, who has been appointed licensing authority under the proclamation. These will fully explain the postion. After considering the proposition, and its bearing upon the several and varying interests represented, and after taking legal opinion, we have decided to contest the validity of the Order-in-Council. Meanwhile the provisions of the proclamation are in force, and we advise dairy companies forthwith to make application for their licenses, otherwise serious trouble and delay may arise in connection with shipments per steamers due to leave shortly. We understand that if the proclamation is found to be ultra vires, the licenses will become inoperative. W T e also recommend dairy companies which do business upon the local market to sell their butter at a rate to retailers corresponding with not more than Is 7d per lb. to I consumers, and to maintain supplies j for their usual business during the 'short time before a decision will likejly be made. Unless this is done the position will he seriously complicatI e d. If the proclamation is sustained we shall in the iuteit-sts [of producers deem it our duty to assist the authorities in making the j scheme as complete and satisfactory as possible.— (Signed'* Arthur Morton, ! Jacob Marx, H. E. Pacey, W. Fisher, IW. I>. PowdrelL C. P. Agar.”

AN EMPHATIC PROTEST. Woodville, October IS. A meeting of representatives of all the co-operative dairying companies operating in the \V oodville district was held this afternoon to discuss the imposition of the Jd per lb tax on butter-fat. It was unanimously resolved to protest emphatically against the cheese producers lieing called upon to subsidise the butter producers as proposed by tho Board of Trade, and that the only equitable method of protecting the consumers and producers of the Dominion is by an .export duty being imposed on all exports.