COMMANDEERING OF CHEESE.

Taranaki Daily News, 12 June 1916, Page 3

COMMANDEERING OF CHEESE.

CONFERENCE AT HAWERA. THE SUGGESTED TERMS. A conference of considerable importance to the dairy industry of Taranaki, and particularly to that section engaged in cheese production, was held in the Hawcra Borough Council Chambers on Saturday to discuss matters.in connection with the proposal of the Government to commandeer the output of cheese this season. There was a very large and representative attendance of dairy factory directors, principally from South Taranaki. Alton, Ararata, Awatnna, Cardiff, Eltham, Hawcra, Hurleyville. dolls, Motnroa, Normanby. Oaonui, Omatn, Kaimata, Mokoia, Qpua Road, Pihama, Riverdale. Kai Iwi, Kahui, Kaknramea, Kaponga, Khupokonui, jJCohi, Mangatoki, Mangorei, Mills, Manutahi, Rahotu, Tututawa. Whenuakura, Waverify, Te Huia, Tirimoana, Melrose. Royal Oak, and Lowgarth, and Tariki factories were all represented. Mr. \V. 1). Powdrell was voted to the chair, Mr. E. C. Barleyman being appointed secretary. The chairman outlined the objects of the meeting. The Government had invited members of the National Dairy Association to meet them and discuss the question of fixing a price in connection with the proposal to commandeer the season's output. Both he' and Mr. Forsyth felt that they would like lo have the opinion of cheese producers of Taranaki before they met the Government. Neither he nor any one would dar° to go to Wellington and say what price the Government should pay for cheese this season, and it would be a bold man who would do so. He had only received short notice of the conference with the Government which wa.s first fixed for the 13th, but was afterwards altered to the lfith so there was not much time to convene the meeting. He understood that the Government could commandeer the whole output of cheese, hut they could not commandeer it at their own price, it must be at market price. In reply lo questions, the chairman could not say whether the Imperial Government had commandeered Canadian or English cheese, but he took it they had not, There, was a feeling among cheese factory men that the negotiation of the sale of cheese should be left to cheese representatives, and that butter factories should be allowed to fix their own business. He noticed that at a meeting at Woodvillo it was decided not to do anything until all dairy factories had been consulted, but this would be an imnossibility. Jf they sent the keenest and strongest men to Wellington as a deputation it would be more effective. Last year, when representatives of cheese factories offered to sell 15 per cent, of their output to the Government at 7d, they realised that they were actuated by patriotic motives. Every factory director realised that at that lime of the year cheese was always at its lowest on the English market, and there was not one factory director that woiild have sold at that price, but that they realised they were giving something to the Government. The loss to New Zealand cheese makers, reckoning the difference of 2J(I, between the commandeered price, "id, and the average market price of Old, amounted to .€315,0,1(1, and the loss to the Kaupokomii factory alone was £10,540, Prices went higher than were anticipated, but one never saw the cheese producer's gift mentioned. Indeed, it had been said, that they hud sold at a price better' than that ruling in Otago at the time. That was no criterion, as for years Otago and Southlard had consistently fallen in. Regarding the Kaupokor.tii loss, he said that the average price had been based on the prices received from the various shipments. There were also four shipments on the water now which ho estimated at a very moderate figure. The prices realised (f.0.b.), Patch, exclusive, of the Government's share are: Rimutaka Bjd, Arawa B.3fid, Turakina S.fiOd. Kaikoura 0.12 d, Manari S.B7d, Orari S.Sid, Star of India Sd, Limerick f1.70d, Athenic o.l">d, Kirehana 0.7U1, Paparon, fMIOd, Rnahine n.57d, Delphic 10.74 d, Roturoa lfW4d, Essex 10.74 d, Zealandia 10.74 d. The average (exclusive of commandeered cheese), was thus a littlebetter than (Hd. If they offered to sell on last year's average price he thought that was a fair basis. In fact, it cut against them, as the Government cheese had the advantage in beinij shipped first, whilst theirs was held and suffered considerably from leakage Moreover, at the start of last season, cheese was as low as S3s, whereas lie did not think that the season would open less than life or 104=.

The chairman then read a circular •vhicli nad just been received from ti.<. .Satioiiftl Dairy Association, stating that the Prime Minister had advised that tip meeting convened for .rune Kith, in consider the question of the Imperial fiovernment purchasing cheese during ihe 1(11(5-17 season, was a preliminary meeting to consider the best methods of g'v'i g ell'ect to the above proposal. The j'pnie Minister liad requested the National Dairy Association to make the fact generally known, and, further, that subsequent meetings would be called by the (lovenment of representatives of dairy companies; in the principal cheese manufacturing districts as there seemed to be some doubt in th? minds of factory directors on the subject, the office thought it advisable to acquaint dairy factories with the procedure that would be followed.

Continuing, the chairman said that the Government had not made any otter, but if the cheese people liked to he patriotic and say they would accept Sd they could not blame the Government for taking it. TJopjirdinp last year's proposal he would have certainly objected, had he been present, to the course adopted. Had they been told that they were expected to give the contribution for patriotic purposes, no one could have objected, provided that all were treated similarly. The Government had commandeered meat, but no one heard mention of the meal pro. (hicers giving a donation of 1} millions. The cheese producers were mostly small men who had given a contribution of .f.3ls,nnn, whilst others had not had their produce- commandeered. The Governmi't thought they had made a good bargain, and treated it as a business proposition, and as such the meeting must treat the matter.

In reply to Mr. Gibson (Rahotn), the chairman said that whilst the dairy companies agreed to the Government last year taking 15 per cent, at 7d, the Government had taken 30 per cent, at 7jd. Mr. Oihson asked if the meeting had been convened by the National Dairy Association or not. He stated that directors had been notified by the chairman of the National Dairy Association that the meeting would be held at liltham, and later had received a telegram from Mr. Powdrell convening the. meeting for Saturday. As a result there was considerable inconvenience,,

as several factories had not received notice in time to attend, and would probably attend at Eltham on Monday. Some also understood that the Eltham meeting had lapsed. The chairman, stated that after consultation with Messrs. Marx and .Forsyth, who. with himself, , were directors of three of the largest cheese factories in Taranaki, at a meeting of the Bacon Co. executive it was deckled to convene the meeting: At the time it was not known to them that Mr. Morton, President of the National Dairy Association, had convened a meeting for Monday at Eltham on the same subject. The notice received was a short one, and (here was no time to consult Mr. Morton previous to sending the telegrams. Wbon lie got in touch with Mr. Morion it v as decided that it would he better U) let this meeting stand, and members of the executive could attend the Eltham meeting and explain matters there. They were not seeking to override the National Dairy Association in any way, but were acting in the best interests of cheese suppliers. Mr. Gibson protested that as the Government had invited the National Dairy Association to meet them, the chairman should have presided at that meeting, Mr. Morton, president of the National Dairy Association, explained the overlapping of the meetings. He had previously had hints re the commandeering of the output, but. on Saturday he received a communication from the Premier inviting the National Dairy Association and the South Island Association to confer with him on the lfith. The Government did not ask them to call meetings, but Mr. Morton felt that he would not be doing his duty as president of the. Association unless he first obtained the opinion of the cheese factories on the matter. He accordingly circularised them at once for Monday. On Wednesday he received intimation of the present meeting, and got fnto communication with Mr. Powdrell, who naturally could not take the onus of cancelling the meeting without first consulting his eolleauge. It was accordingly arranged that both meetings should stand. The meeting had been called with the best intentions, so he thought they should sink all feelings and proceed with the business, The meeting on Monday could take their own action.

Mr. Maxwell (Ka.)nii) also protested against another hotly usurping the function of the Xational Dairy Association, which had boon formal to take concerted action in matter-; that affected the industry, and was looked upon by the Government as representative of the dairv industry. 1 The chairman said that there was no intention of casting a slnr 011 the chairman of the National Dairy Association, but the matter was a very important one. The Government sometimes did things very hastily, and he instanced the commandeering of the hides at a day's notice. Therefore the meeting had been convened at once. l'inally, on the motion of Mr, Sheehfui (Ohangau), and Allen, it was resolved that the meeting appreciate the action of the executive. There were some dissentients. The meeting then discussed the nil'stion of price. Mr. T). .T. Williams (Mere Mere). considered that the fairest \v*y was to base it on last year's price nil the open market, and moved that the price to be asked from the Imperial Government for cheese for the coming season be the average price realised on the open market, for the past season, or not le.n than OJd per lb. (f.0.b., grading store). The chairman said that the increase trom 7{d to OJd might look a big jump, but it was warranted as the figures showed. _Mr. Looney (Opunake), thought that K'aupokonui's price might be above the average.

The chairman did not think so, and his contention was borne out by Mr. Batten (Rivordnlo), who stated' tint the average for that factory, exclusive of commandeered cheese was !>.r>:id. The chairman considered that in offering to accept last year's price they were in n generous mood, and inn king some sacrifice, as cheese was Sfls at (he commencement of last season, whereas now it was 10,1$ to Ills. A voice: Wo would ijot mind that sacrifice every year. Mr. Old (Kaimatal, asked if the !)',<.a would be irrespective of grade. Some discussion ensued over the conditions, members expressing the opinion that f.o.b. in grading store would he preferable to f.o.b. on ship, as in (lie event of any disorganisation of shipping thrv would not have to pay such heavy storage, nor would i.hcro be the same loss through shrinkage. Moreover, they would receive their returns sooner. Mr. J. B. .Marx pointed nut that this meeting was giving the lead to Taranaki produce valued at U millions and to the Dominion produce, valued at €4,01)0,000. When nuking such an important bargain they should take time to consider the details. Tr„ sli? . gested the formation of a small committee that could make the necessary safeguards. They were handling the living of too many people to do anything in a slipshod manner. Mr. Gibson said that the meeting should bear in mind that the shipping facilities would have been much worse than they were but for the fact that the Government required the cheese. The point had been stressed that it was purely a matter of business, but it was difficult to define where sentiment and business met. It was not only business that had induced such a fine response from the Dominions to the call of (ho Motherland. They could thereby advertise their produce in an emphatic and far-reaching way that would bear fruit when the war was over, whereas if they insisted on exacting the last farthing, it would have a detrimental efi'ect. They were dealing with the profits. (Tries of "No! No!"). No one could controvert that the excessive prices now ruling over those of two years ago were far and away beyond any increase in the cost of living. As a poor farmer, and one with a son at the? front, he would lie personally sorry if the meeting passed the resolution before it. They had placed the Government in power to eonduct their business, and if it could not be trusted to do so they should put. some one else in. It would have saved a lot of wrangling if the Government had taken the cheese at a reasonable price and said, "Take it or leave it." Mr. S. Turner (agent for Lonsdale and Co), stated that a member of Parliament informed him that the opinion prevailing in the House was that the price should be based on ..last year's returns. This had been suggested by a high official of the ]>partinoiit. The chairman suggested that the resolution should not be published, but fully concurred with the wisli of the meeting that it should be an open one. Mr. Marx claimed that thev were discussing the living of farmers. They were there practically as trustees, anil must look after the interests of those who had placed them there. He was quite prepared to give away his own last shilling but not that of the other

fellow. They should make a condition that in the event of a big accumulation of cheese in the stores that a reaonable advance should be made each month. Last year they had to approach the Government and get concessions after the bargain had been made. Mr. Long (Kaupokonui), would not care if he only .received (id per lb. providing other producers (meat, wool and butter) paid proportionately. The resolution was carried, Mr. Gibson dissenting. After some discussion as to method of procedure, it was finally resolved that a committee, consisting of Messrs. Morton, Powdrell, Forsyth, Marx and Murdoch be set up to draw up details re grade, shipping, storage, and finance, to be submitted by the. National Dairy Association as terms acceptable to Taranaki cheese factories. Failing the Government accepting these terms and price, a committee consisting of the chairman and one director of each factory be set up. •