FARM AND DAIRY.

Taranaki Daily News, 31 May 1922, Page 7

FARM AND DAIRY.

THE DAIRY POOL. THE WELLINGTON CONFERENCE. AN OFFICIAL REPORT. Mr. T. C. Brash, Secretary of The National Dairy Association of New Zealand. Ltd., writes as follows: — As there still seems to be some misunderstanding about the character of the conference of delegates who met at Wellington on May 18 and 19 for the discussion of the proposed compulsory control of the marketing of dairy produce, I believe it will be in the public interest to give a brief official summary of the business, with the resolutions. Delegates were present from Auckland, Hamilton, Hawera, New Plymouth, Wanganui, Dannevirke, Palmerston North, Carterton, Marlborough and Nelson. In addition there were delegates from the South Island Dairy Association, who attended as a committee for the purpose of reporting to the Association’s annual meeting on June 7. It is confidently anticipated that the South Island Association will support. the proposal. The following resolutions were adopted: — 4 1. That this meeting of delegates being thoroughly representative of the dairy industry of the Dominion, expresses its entire approval of tlie proposal to set up a compulsory Dominion organisation to effectively control the handling, distributing and the marketing of our export dairy produce. The resolution was carried unanimously. 2. That this meeting affirms the desirability of a company being formed with a capital of £250,000 to be called “The New Zealand Dairies, Ltd.”

3. That shares in the new company be applied for and allotted to all manufacturers of butter and cheese in proportion to their total export output. The first issue not to exceed £150.000.

4 That the company be controlled by a board of 15 directors, 11 to be elected in the North Island and 4 in the South Island. The directors to be elected on the Ward system. 5. The Board of Directors in New Zealand to appoint a board in London with at least one representative each for butter and cheese, and a managing director. The London board to have power to control prices and regulate supplies. It is distinctly understood that the ordinary channels of distribution will be used.

6. The Government to introduce the necessary legislation to make compulsory the marketing of all export dairy produce through the company and to give power to the directors to make all necessary levies on the produce and such levies to be on a percentage basis and not to exceed one and a quarter per cent, on the gross returns. The levies to be credited to the share capital of the individual companies. 7. The Government to give the necessary guarantees for the financing of shipments, etc. 8. That the basis for voting be one vote for every one hundred shares up to five hundred and an additional vote for every additional one hundred and fifty shares or portion thereof. 9. That the chairman of directors of the permanent board be a commercial man to be appointed by the Government after recommendation by the directors.

It was decided that the question of fixing the wards for election of directors should be dealt with later. As it was necessary however, to appoint a provincial committee to further the proposal the following were elected: Messrs. AV. Grounds, M. Wells, W. Goodfellow, Stanton, C. E. MacMillan, A. Morton, H. D. Forsyth, J. R. Corrigan, T. Moss, P. Hansen, and F. W. Cook, four members to be appointed later by the South Island Dairy As-

sociation. Mr. A. Morton- was appointed chairman, and Mr. T. C. Brash secretary. The meeting was absolutely unanimous in its decision to form a compulsory control of export dairy produce. The capital originally proposed ( £l,000,000) was reduced to £250,000 with a maximum first allotment of £150,000. The general feeling was that when a larger capital became advisable, it could be increased. The allotment of £150,000 would represent approximately two shares for each ton of butter and one share for each ton of cheese. In connection with the levy the meeting decided that the percentage basis was more equitable than a levy on pounds of butter or cheese. The maximum levy of one and a quarter per cent, on the gross return would represent approximately the same amount as a farthing on butter and one eighth of a penny on cheese. Tt is confidently anticipated that little levy will be required after the first year. The matter now rests with the individual dairy companies, whose directors are requested to convey their decisions to Mr. Brash before June 18. It is understood, of course, that delegates who attended the conference will be pleased to attend meeting of directors to give any detailed information required about the proposal. Members of the provisional committee will also gladly attend such meetings of representatives of companies. Prompt de-*| Vision, on a full understanding of the <facts, is important. It is anticipated confidently that satisfactory arrangements in connection with the proposed company can be made for those individual companies whose circumstances call for special consideration.