MARKETING PRODUCE.

Taranaki Daily News, 13 July 1920, Page 7

MARKETING PRODUCE.

THE HAWERA MEETING. At the meeting at Hawera 011 Friday to consider the question of marketing dairy produce, Mr. A. Morton, in reply to a question by Mr. Ranford, of Stratford, stated that no definite refusal had yet been received from any dairy company to join in the scheme. The New Zealand Dairy Company had for some months past. been considering a scheme by . which they would have their own ajerit and their own representative in London to deal with the selling of their output. If the N.D.A. scheme was better than their own th?y were prepared to come in. In regard to the alteration of' memoranda he pointed out that the Legislature of New Zealand had several times passed enactments enlarging the powers of dairy companies. One of these allowed them to deal with certain products apart from butter and cheese, and the other gave power to erect or purchase freezing works. He saw no reason why the Government should not legislate. so as to enable them to form a marketing company without altering their Articles of Memoranda.

Mr. Gawith asked if this was the only country the C.W.S. was interested in, or were they dealing with other producers. Mr. Morton: The C.W.S. has not discussed this matter with any but New Zealand. Its representatives came out here at the request of Mr. Ellison, and thongh they spent four or five months in Australia they did not discuss, business there, as they felt in honor bound to come here first. Mr. Hicks (Patea) asked if in joining the C.W.S. whether competition would be eliminated.

Mr. Morton replied that he could not see that because their produce was going through new channels they were going to eliminate competition. He" pointed out further that the law of supply and demand would .always meet that contin gency.

Mr. Brechin said that while he believed the mover of the resolution to be in earnest lie was going to propose an which, he DeHevcd, would endgrse a portion of the resolution and be acceptable to all. The amendment he would move, was as follows: "That whilst cordially approving of |he suggestion to establish our'own selling floor,

this meeting is of the opinion that we can best secure this ideal by accepting the proposal to market our produce through our. own company on the lines UMjreested by the National Dairy Association."

Speaking further, Mr. Brechin said he felt that the amendment did Dot run contrary to the resolution. The chairman (Mr. Corrigan) remarkta that the mover had got his amendment pretty well camouflaged. Mr. Marx paid a tribute to the satisfactory manner in which the selling houses in the past had handled their business. Mr. S. Turner (Tooley Street) proceeded to speak, when Mr. P. Shenhan rose, remarking that the meeting had been convened for producers. He went on to refer io Mr. Turner again. The chairman interrupted, and said that Mr. Sheahan must speak to the resolutions before the meeting. In reply to a question, Mr. Brechin said that the word company in his amendment referred to the producers' own Board of Control.

Mr. Gane (Normanby) seconded the amendment.

Mr. J. S. Tosland (Pihama) spoke of the financial proposals of the C.W.S. ( scheme, and said it was up to the pro- i ducers to do something. "Even if we i do fall in the mud," he added, "we have < enough grit to pick up ourselves and ' go forward." , I In reply to Mr. Tosland, Mr. Morton said that the Board of Control would fill ] exactly the same position as the Danish committee. Further, in conjunction with the C.W.S., the producers would have available for their use the cold storage at Home. The chairman, referring to the financial aspect of the question, said that his resolution provided for trying to arrange with the Bank of New Zealand. He felt Certain that they could finance their

stuff in the way he ha* indicated previously. »Was it not in the Tbest interests of the consumers themselves that they should keep their finances within themselves rather than to have to lean upon a partner, which would be the case under the scheme formulated at Palmerston North!

Mr. P. Sheahan asked if Mr. Morton Considered the scheme of the Cf.W.S. to be a good one for the producers. Mr. Morton replied that he was only advocating it because he believed and was convinced that it was in the best interests of the producers. If the scheme, as formulated at Palmerston North, was approved and taken up by Lie dairy producers, he believed it would be the best day's work that they had ever done. With regard to thejr own selling floor, he believed that the scheme would eventually lead to the producers securing this, but at present there were difficulties in the way of getting this. Mr. Long (Kaupokonui) asked in the event of the C.W.S. scheme being adopted, and a dispute arising, what would be the position. _ Mr. Morton replied that he did not anticipate any dispute arising, -Mid that if it did occur, he believed It would be submitted to arbitration. But in regard to matters relating to price fixing, the producers would have the majority on the board and he did not think there was the slightest chance of a dispute arising in ttat connection. Any way, he had sufficient confidence in the C.W.s! to believe that they would carry out their part of the agreement between the producers and the company. Mr. Gawith: If we are going into the scheme with the attitude of making tools of the C.W.S., what is there to hinder the C.W.S. from adopting the same attitude ? Mr. Morton replied that they were not going into the scheme with that atti- ' tude.

Mr. Long enquired if }fcw Zealand came into the C.W.S. scheme, would the C.W.S. relinquish dealing with Danish butter 1

Mr. Morton replied the same as he had done previously. He pointed out that the C.W.S. were acting from a patriotic motive and for the purpose of getting supQjie.* for their customers in the cheapest market. . In ™ply to Mr. Long, Mr. Morton said it was highly improbable that the retail societies would be bound to buy from the C.W.S. He would not suppose for a. moment that the retail societies were tied stores.

In reply to further questions, Mr. Morton said he was going to leave no stone iinturned to carry their project through. (Applause.) If Mr. Corrigan's resolution was carried it would mean that nothing could be done, because, as he had explained at Pnlmerston North, the N.D.A. had not the necessary power. It would mean altering their articles of a»-

sOciation, which would perhaps-take over twelve months to get through, as there were some many legal difficulties in the way. . Replying to Mr. Breechin, the chaitman said if he had supported the scheme as formulated at Palm erst on North he would not have convened that meeting that afternoon. There were a Jew weak spots: in the Palmerston North pcheme which he did not approve of. "I have been trapped so often in my life that I don't want to be trapped again," he concluded. Mr. Brechin: "I am d dif you look guilty." (Laughter.) Mr. Morton: So far as the coining season is concerned, should their produce go through the C.W.S. and part go through Tooley Street, everybody will benefit, because Tooley Street will pndeavor to show the C.W.S. that they are able to secure a higher price than they are returning. Reference was made to the cable recently published in which attention had been called in the House of Commons to the attempt on the part of the C.W.ft. to toy New Zealand's output of butter, and the Minister's reply, in which be stated that he was going to see tnat the consumer did not have to pay too high a price. This showed, Mr. Morton said, that in the opinion of some people the C.W.S. was out to get prices as big as possible. Mr. Corrigan, in Teply, said that ins suggestion still held good, and Mr. Morton had backed him up in a good deal that he had said. Ho still maintained that financing could be done on the stuff, and therefore he could not see how it was possible to damage the scheme by passing his resolution on to tile committee appointed to formulate a scheme. Mr. Morton had told them that the stuff could be financed in itself, and so it could. Then he had told them that they had the C.W.S. to lean on for finance,

That was the main plank in the platform of the N.D.A. Was it not better to rely on themselves for finance? By passing the resolution they would be giving a "direction to the committee which would suit a great many more factories than the present scheme. If the scheme favored by the N.D.A. was not taken up whole-heartedly it would be a jlangerous 1 scheme. It was very likely that next season prices would be bumped lip, or • they may go the other way. Prices 1 may be forced down.

A voice: Why give them the stuff if yon think they will be guilty of that? Mr. Corrigan: Money speaks all languages, and they will get the stuff if they are prepared to pay for it. In all the discussion he had not heard one man condemn the resolution. After all the resolution was only a recommendation to the committee.

A voice: Suppose they can't see their vray to accept it? Mr. Corrigan: They would have to come as near as they could; but they could do it. The Government was in sympathy with the producers and eould do anything. Their support to a sound scheme could be obtained. Was it harder and less expensive to alter the memoranda or to start a new company, and why spend money if it was not necessary? There was little difference between the motion and the amendment, which was cleverly camouflaged. The question arose as to who should be allowed to vote, fcum» suggested all at the meeting, with the exception of agents, and others thought that only one representative from each factory should vote. Mr. Marx said that he and his co-

director could not vote. They were in the same position as at Palmerston. His board had passed no resolution on the matter.

It was finally decided that all producers present should vote, and on" the amendment being put to the meeting, it was lost on the voices and Mr. Corri-

gan's motion was carried. Mr. Corrigan said that he had been asked to bring before the meeting the terms of the shipping contract, which, he understood, the N.D.A. would be entering into shortly, and was suggesting thai consideration sliouid be given to those at small ports, when he was interrupted by Mr. Morton, who stated that no contract was in existence now and there was no use in attempting to make one. In a year or two freights would be down and they might then be in a position to make one. Mr. Corrigan said he would not discuss the matter further.—Star.