DAIRY CONVENTION.

Taranaki Daily News, Volume LII, Issue 16, 25 June 1909, Page 4

DAIRY CONVENTION.

THE PRODUCE YEAR, ANNUAL MEETING OF NATIONAL DAIRY ASSOCIATION. REVIEW- OF THE POSITION. Palmerston North, Tuesday. The Dairy Convention —one of the great events in the fanning year—began this morning in the Manawatu A. and P. Association's large lecture-hall, when the lifteenth annual meeting of the National Dairy Association of New Zealand, Ud., was held. Mr. J. W. Foreman, of Tikorangi, the president, was in the chair. THE YEAR'S WORK.

The adoption of the report and bal-ance-sheet was moved by the president. He said that hie duty was a pleasant one, inasmuch as the finances of the association were in a better condition than had been the case for smut years past. He pointed out that the balancesheet showed a credit of nearly £2OOO at the bank, which in a measure was due to payments on account of consignments through the association, and which would be distributed. However, apart from the actual figures, they would notice that the profit and loss account .was larger than in the past, this being derived from the greater trade with the association by its members. Some of the members had been doing much more business with the association, with the result that though the profit was a small one, it had materially affected the year's operations.

HOME MARKETS. Last spring they were offered •exceptionally high prices' for their produce, and the general feeling of those connected with the industry was that they were going to have a most excellent year. Unfortunately, all those hopes had not been realised. It was not very hard to ascertain the causes of that. It was not the importation into the English markets of either butter or cheese that had caused the lower rates, for as 1 far as he could ascertain on 30th

April last some 4000 tons less butter and about 6000 tons less ■ cheese had been imported into the United Kingdom (luring the year than for the preceding twelve months. It seemed to him thai the causes for the state of affairs were these: First and most important was the bad condition of trade in the United Kingdom for some time past, and secondly they had to look to the exceptionally fine and early winter ox•pcrienccd in Continental countries. This meant a large production in those places, for in Northern Europe generally the winter' work mas as extensive as that in the summer. After referring to the' question of moisture in butter and its effect upon the industry, the president drew attention to the concern

caused by the vast number of breakages which took place during the handling of cheese cases. There appeared to him to be an urgent need for strengthening the cases and for the exercise of more care iu nailing the centre-boards in. The carelessness resulted in injury to the cheese, while it also detracted considerably from the appearance in the Home markets if cases arrived all patched up. He hoped factories would take steps to remedy the matter.

GOOD WORK IN LONDON. ' He was pleased to see that Mr. I Charles Mackie, the association's London agent, was present at the conference. He believed that Mr. Mackie ahd been doing very good work during the year, and that if the association could continue, to koep him in London—or someone else equally capable—the industry would receive very great benefits. Iu this connection it was desirable to draw attention to the matter of consignment, though in face of all the circumstances it was rather difficult for him to urge that consignment was the better course to adopt. Still, he was quite convinced that with proper supervision at the other end, consignment was not only the ideal method of disposal of dairy products, but the method which over a number of years would return the best profits. Then there were other advantages to ,be. derived from having a representative in London. The promoters of the association had always had in view the time when to a certain extent they would be able to do without the middleman. That was not an impossible thing, and he did nut hesitate to say that at the present time the association's action in indenting supplies for members had had considerable influence in reducing the prices of materials generally. For instance, in connection with the important matter of supplying slag to members for topdressing, the association's action had resulted in prices coming down, so that even those who did not deal' with it were benefiting by its work. But it was very important to have an agent at Home to see to the placing of the orders on members' behalf. He was certain that in the matter of manures alone the association could save live times more, perhaps twenty times more, than the contributions to the cost would come to.

THE OUTLOOK. The prospects for tile extension of the industry, lie thought, were goo.l. The increase in the iiniount of butter exported might he due to tiie very excellent season experienced, but he believed that there was an increase beyond that, and that it would continue. He expected to see a large development of the industry in the Auckland district. believing tliat the indications were all in that direction. Then he thought that they could look for very laryc Increases along the West Coast of this island, a district which was probably the most suitable in the Dominion for dairying. With the present prices of land, be thought that the tendency would be to subdivide the.larger farms which would undoubtedly mean an increase in the dairying done. Another factor winch he looked upon as hopeful for the future of the industry was the advent of the milking-machine, .for it would do away with the labor difficulty, which in the past had greatly hampered the large milkers. There was also a tendency in the South to increase their il'i'i'ving, and altogether he considered that the indications were that the industry was going to assume larger proportions than ever. He could sec no reason why they should not be hopeful in regard to the ~■ -.>■}: ■ for our produce. Our butter , Ul ,, s( . luu , nw g"t an established name in the .Home markets, and dairymen had only to See 'that they maintained, that name in order to ynsur,, selling at remunerative prices There was no reason whatever wiij those engaged in the industry should be otherwise than hopeful. "

TIIK FINANCES. The chairman dwelt also noon the Inimical posit,,,,, of the associaiion and upon the necessity „f Us members- living a seenriiv which was nbsoluHv nercssarv to enable the work to be carried on. In Ihe past there had been an nrrangomoiu by which the companies joining the association had signed promissory not,.. i„ ,„.,!,.,. t „ ~,'oviile the neces-'iry credit, but now difficulty was being experienced Sn arranging for renewals, n was very desirable that members should, renew (heir support <n this direction, lor at present the,- had very htlle capital to carry on with, and credit was really essential.

.The motion was seconded by Mr. A. Mcl'arlaiie (I'nhiatua). The discission which followed wasalmost wholly confined to the point raised by the chairman respecting the renewal ot promissory notes, but -it times it was very desultory. INDEPENDENCE.

'• I think the time has eoiue when the interests of the association demand that it should J>e able to jm.ldlo its own canoe, said Mr Vile amid applause. ■No did not think they should have to depend upon the assistance of anyone when money was required to nay accounts Everyone i„ the association should do their part. llr. Hrown (Midhirst) suggested that a guarantee from the companies in the .shape Of promissory notes would he much belter than a direct contribution. A complaint by Mr. Wise thn( . t , )d association was being run at a loss was controverted by Mr. Morton, who admitted, however, that the subscriptions were insufficient to keen Hut for the profits that had bee", „S by the association in trading it would have been in a much worse position _ In replying to the remarks made'during tire discussion, the chairman saM he could not agree that the association iind .made a loss. They had started primarily to improve the shipping f a . Jllities, and he claimed that tile dniry-

men generally had been greatly beneliteil. the uireciois had given die as.sociation of their very best, in spite of what the critics might say. (Applause.) '■' The motion for the adoption of the report and balance-sheet was adopted. ELECTION OF OFFICERS.

When the time came for the election of officers, Mr. Foreman intimated that circumstances had made it necessary for him to retire from the directorate. To this, however, much strong opposition was shown, and .the references' made to him by several delegates were so hearty that Air. Foreman decided to place himself in the hands of the meeting entirely, lie was re-elected unanimously and without opposition, as were also Hie other retiring directors, Messrs. A. Morton (Mangorei) and W. Borrie (Kaupokonui). On the motion of Mr. Marx, seconded by Mr. Collie, it was decided to grant an allowance of £SO to the chairman of directors and £2O to each Of the other members of the directorate for their services during the year. INCOME-TAX CHARGES.

On behalf of the Hawke's Bay Dairy Company, Mi. C. Beuttie moved:

That whereas certain users of ma-1 chinery in the Dominion are exempt from paying income-tax on 5 per cent, of half the value of their whole plant and machinery, and whereas dairy factories are only exempt from payjug income-tax on 5 per cent, of half the value of steam engines and boiiers, the executive of the National Dairy Association be requested to arrange a test case with the Commissioner of Taxes with a view to obtaining a Supreme Court ruling as to whether dairy factories are not entitled to an exemption from income-tax of 5 per cent, on all the plant and machine.'y used in the manufacture of butter and cheese.

He urged that the-position was a very important and also a very difficult one. Sonic co-operative companies were not called upon to .pay any income-tax, while others were granted a concession of 5 per cent, on half the value of their plant and machinery, and others again 5 per' cent, on half the value of their steam-driven plant. It was manifestly unfair that factories should be treated differently in this way. He urged that such steps should be taken as would place them beyond the influence or the caprice of any Commissioner of Taxes. The question had cropped up frequently, and the Commissioner of Taxes had often been asked to put the matter upon a more satisfactory basis than at present. In some cases the impost upon proprietary concerns w'as unreasonable and unduly heavy, and he asked that the co-operative companies' should as-

sist iu putting the thing right. In reply to a question the chairman Eaid that at present the co-operative companies were only taxed upon the amounts paid out to shareholders. The motion was seconded by Mr. Murray (Eltham). Mr. J.. Alarx (Mangatoki) approved the suggestion, and thought that undoubtedly there was a position of affairs which should not be allowed to continue.

Tho chairman Suggested that Mr. Hcattie should amend the motion ia the direction of making a recommendation l» the executive to try to obtain some relief. If that was done he would support the proposal, but he could not see any good in coming into contact with the law as it stood at present. Mr. Wilkinson (Featherston) protested against the proposed step, and could' not see why the whole of the factories should be called upon to bear the cost of a test case.

In his reply, Mr. Beattie said'lie would not like to call upon the co-operative companies to pay in connection with a matter only affecting proprietary concerns, but where the whole industry was interested the position was different. However, to save conflict, he would adopt the chairman's suggestion and turn the motion into -a recommendation to the executive of the as-

sociation to take such steps us were thought fit to obtain .exemption. The motion thus amended was carried without dissent. INDENT BUSINESS.

A notice of motion standing in the name of the Moa Dairy Company was moved as follows by Mr. Herlihy:— That a subcommittee be set up to enquire into the indent business, as in the opinion of the Moa Dairy Company the association should lie able to indent on more reasonable terms

than private firms. The .motion lapsed for want of a seconder, but the chairman said that all the same the executive would probably take some steps to deal with the matter. -—Wellington Times.