THE DAIRY POOL.

Taranaki Daily News, 19 May 1922, Page 5

THE DAIRY POOL.

_ A COMPANY FORMED. A COMPULSORY ORGANISATION. QUARTER OF MILLION CAPITAL. LEGISLATION ASKED FOR. By Telegraph.—Press Association. Wellington, May 18. The conference of representatives of the co-operative dairy companies of the Dominion opened to-day. The object is to consider the best means to deal with the disposal of exported dairy produce. It is proposed to form a company with a capital of £1,000,000, owned and directed by the dairy companies, aided by special legislation and supported by the State. The financial and banking directors will be elected by the shareholders, the chairman to be a commercial man appointed by the Government, the directors to appoint a board in London, which will have power to control prices and regulate supply, the Government to legislate making marketing of all export dairy produce compulsory through the company, and giving power to make levies, not exceeding jd per lb on butter and l-8d per lb on cheese. Shares will be issued to manufacturers in proportion to their total ex-

The South Island delegates expressed disapproval of the scheme in face of the lack of details. They had not forgotten the marketing commission, the burden of which was left to the South to carry. The delegates had no authority to give away the South Island’s “birthright”. After considerable discussion the following motion, moved by Mr. Baker (Papatawa) was carried: “This meeting, being thoroughly representative of the dairy industry in the Dominion, expresses its entire approval of the proposal to set up a compulsory organisation to effectually control the handling, distribution and marketing of our export dairy produce.” After further discussion it was resolved that the nominal capital of the company be £250,000. An amendment in favor of a capital of £1,000,000 was abandoned.

Wellington, Last Night. It was resolved that, in the event of the Government refusing to introduce the necessary legislation for the formation of a company of £250,000 capital, the committee have power to request legislation for the formation of a scheme which will be acceptable to the industry. It was agreed that shares should be applied for and allotted to manufacturers of butter and cheese in proportion to the total export output, the first issue not to exceed 150,000. On the question of representation on the directorate, the North Island had agreed that the South Island should have four delegates, but the South Island wanted five. The chairman said the conference had reached a rock on which they might split. It was a critical point, but one which, he thought, could be overcome. It was left over until to-morrow. The meeting decided on details regarding the London board. It was stated that the existing channels of distribution will be used. It was resolved that the Government be asked to introduce the necessary legislation to make compulsory the marketing of all export dairy produce through the company, and give power to the directors to make all the necessary levies on produce, such levies to be on a percentage basis and not to exceed 1% per ceht. on the gross return, and that in the first instance the levy be credited to the share capital. It was resolved that the Government be asked to give the necessary guarantees for financing shipments, etc. It was decided to recommend the Government to establish a superfine grade fox- both butter and cheese on a basis of 92 points and over for butter and 91 points and over fox- cheese. OPPOSITION FROM ENGLAND. By Telegraph.—Press Assn. —Copyright. Received May 18, 8.55 p.m. London, May 17. The committee of the Home and Foreign Produce Exchange, representing all branches of the provision trade in London and the Home counties, passed a resolution declaring that the proposed New’ Zealand produce pool is against the best interests of the trade and is particularly undesirable, because a pool trust is invariably disadvantageous to the consumer. —Aus.-N.Z. Gable Assn.