THE BUTTER PURCHASE.

Taranaki Daily News, 7 February 1919, Page 6

THE BUTTER PURCHASE.

To the Editor. Sir, —At the meeting of butter producers held last week Mr. J. H. Smith stated that the delegates appointed had given the executive of tell Butter Committee a definite minimum at which their produce could be sold to the Imperial Government. In the course of his reply, Mr. Morton, of the meeting and chairman of the Butter Committee, inferentially denied that as being the position. The following report, taken from the N.Z. Dairyman, not only bears out Mr. Smith's statement, but goes considerably further, and it will no doubt be interesting to know what Mr. Morton has to say in reply to the direct statement made by Mr. Goodfellow, who also was a member of the executive of the Butter Committee. Mr. Goodfellow states emphatically that no time was given to members to attend the meeting, and further doubts the legality of the action of the chairman in doing such a huge deal solus.—l am, etc., DAIRY FED. (Extract) A meeting of representatives of dairy factories was held at the Waikato Winter Show Buildings on December 5, 1018. Mr. Buchanan (Thames Valley Dairy Co.) presided, and explained fully the position regarding the sale of butter and cheese to the Imperial Government. He stated that he had recorded his objection to the action of the butter and cheese committees in contracting for the •ale to the Imperial Government of the 1919-20 season's butter and cheese. Mr. Goodfellow (a member of the Dominion Butter Committee), at the chairman's request, outlined the steps leading up to .the purchase of the present season's flutter. He stated that the first meeting of Dominion delegates was held in Wellington as far back as last April. At that meeting a committee of five were elected to dispose of the butter to the Imperial Government. The resolution appointing them was as follows: "That the following committee be appointed to deal with the whole butter business, with full power to act for 191819: Messrs. Paeey, Goodfellow, Morton, MacFarlane, and Agar." As the Imperial authorities employed the best brains in England to look after the Imperial dairy purchases,' it was considered unwise to leave the producers' interests solely in the hands of the Premier, who was an exceedingly busy man. It was therefore suggested to Mr. Massey before he left for England that Mr. Ellison (manager of the National Dairy Association in London) be officially recognised as the representative of the Dominion dairy producers in London, with the object of assisting him in connection with the disposal of the butter and cheese to the Imperial authorities. However, Mr. Massey had failed to arrange for the appointment of Mr. Ellison, and it was not until after the Premier had returned to New Zealand, and further, until after the dual had been made with Australia, that Mr. Ellison's position was established. The whole conduct of the business in connection with the sale had been most unbusinesslike and unsatisfactory from the producers' point of view. Had Mr. Massey arranged for Mr. Ellison's appointment during his visit to England, as arranged, there was no doubt that the sale with the Imperial Government would have been completed months ago. The Dominion committees had asked the Imperial Government for IOJd for cheese and 196s for butter, which were low prices compared with those obtained by Canada. The price of lOfd for cheese was accepted, but 181s for butter was the best offer obtainable. Further, this offer contained a clause that the two purchases must be combined, and dependent one upon the other. A meeting was recently called in Wellington to consider the Imperial Government's offer, but the representatives were given such short notice that even though they had not been stricken with influenza or hampered by disorganisation of communication it was impossible for all to reach Wellington in time for the meeting—a luo.t extraordinary procedure As a result only Mr. Morton, of Taranaki. chairman of the Butter Committee, was in attendance, while the Cheese Committee, mostly from Taranaki also, was well represented. The cheese men were naturally well satisfied with the price offered by the Imperial Government, seeing that 10Jd was the price they had asked for, and wa3 even more than they were prepared to accept. On behalf of the Butter Committee, Mr. Morton agree/ to sell for two years at 181s, but the question arose, could he legally do so? The speaker maintained that Mr. Morton had no legal right to enter into such contract He bad oifered butter and cheese for two years without the authority of his eomniitti'e, although at the previous meeting it was unanimously decided that the Buttci Committee should hold out for IflGs Owing to the delay in the negotiations, due entirely to the Government, a nuinl er of the small factories throughout the Dominion were in a temporary financial tangle, and it was almost entirely due to this fact that a number of the producers' representatives considered it imperative to sell to tiie Im■perial Government, at 181s for this season only. The speaker was firmly of opinion that a much better price would be obtained the following year by the companies exporting butter to London on their own account. The shipping position had improved to such an extent that there was little likelihood of any diiliculty in obtaining freight space. Mr. Paeey agreed that the butter price would be better in the open market next year, and that now was the best time to make a satisfactory deal for the future. Mr. Morton had acted upon the advice of the majority at the conference. It was proposed by Mr. Isdale (Rotorua C0.0p.), and seconded by Mr. Goodfellow (Waikato Co.-op.), that "The Prime Minister and the secretary of the New Zealand Butter Committee be immediately notified that this representative meeting of butter producers will not agree to sell their butter to the Imperial Government for more than one year at 181s." The amendment to the effect that a protest should be made against the inclusion of the 1919-20 season's' butter and request the Butter Committee to endeavor to have this released from the contract was lost on the votes. It was unanimously decided to confirm the action of the Cheese Committee in agreeing to the sale of the 1919-20 cheese at 10j£d.