DAIRY PRODUCE CONTROL.

Taranaki Daily News, 25 October 1922, Page 8

DAIRY PRODUCE CONTROL.

DISCUSSION AT INGLEWOOD, • OPPOSITION REJECTED. I'he Dairy Produce Export Control Bill was discussed at a meeting held in the Parish Hall, Inglewood, yesterday. Mr. J. B. Hine, Reform candidate for the Stratford seat, addressed the meeting, which, though in the early stages was obviously opposed to the Bill, terminated by rejecting by a large majority a. motion protesting against the compulsory clause. There was a fair attendance, and Mr. J. Sutherland (Mayor of Inglewood), presided. Mr. Hine explained that he would make a few remarks which* he wished the meeting to take as his own personal views, and would speak as a producer. New Zealand, he said, had sacrificed the whole of her connection with the Home markets on account of the Imperial Government having bought me whole of the dairy output during the commandeer period. The European countries could not produce dairy produce for export to Great Britain, and this was New Zealand's golden opportunity to secure a new’ connection. Sixteen million pounds worth of produce would be concerned in the transaction, which was a very big and important matter. The object of the pool was to feed the produce to the markets as the markets demanded, and this was a very good idea. Denmark could hold her produce in the country and feed it to the markets when suitable, but New Zealand was not in this happy position. The idea that the markets could be fed systematically w r as one that should appeal to everyone.

During the commandeer period the British Government, instead of selling the stocks of butter, held , them against an unfavorable market, to the detriment of New Zealand. When the new’ butter began to arrive on the Home markets the stocks were unloaded hurriedly, and the result was a great loss to the producers. New’ Zealand ought to have a man at Home who could W’arn and guide us with regard to the markets. The High Commissioner was not in the butter trade, and had to work on the advice from the trade. A BIG UNDERTAKING. Speaking as a producer. Mr. Hine said the proposed pool wa • a very large and serious undertaking, and he would not support it until he had fuller opportunities of discussing it with the producers. There was no doubt that something should be done to improve the marketing and handling of produce, but there w r as no urgency this year. It w’as bet-

ter to be safe and sure of the ground before rushing into a pool. If he were returned to Parliament he w’ould have an open mind on the question. Mr. J. AV. Harding spoke at length in favour of the pool. Speaking of the pool meeting held in Vvellington, he»sa'd that very few who attended knew what ■ hey went to Wellington for. The M’.n- -: .ter told the meeting that if something ■■ as not done New’ Zealand w’ouljl suffer one of the biggest blow’s it had ever knowm. Other countries were corning on the market, and if the producers did not get any more for their produce than they did last year, how would they get on against the opposition? One hundred and thirty-six of those at the Wellington meeting had voted for the pool and only 20 against it. If the votes were analysed it would bo found that all of those who voted against, the pool were proprietary concerns. Many of those who voted against the pool were personally in favour of it. but had boon Gent down to vote against it. Representatives of 78,000 tons of produce voted in favour of the pool, while only ”000 tons w’ere against it.

There was. he said, no risk in committing V 16,000.000 worth of produce to a hoard of eleven men as had been suggested. The constitution of the board would allow of re-election of members every year if the administration were unsatisfactory, and the prodneens would have the voting power. It had been said by opponents of the pool that the honorable firms at Home would not do anything to the detriment of the New Zealand producer. Last year at least one large firm took £‘100.009 from

lhe pockets of the farmers in profits. This was sheer robbery. The saving affected by the machinery of the control board would be a large one as compared with the costs of Inlying and selling a<s carried on at the present time. Instead of < hitting th? markets as at present, the produce could be regularly shipped and regularly fed to the markets. The board of control could arrange its finance so that they could hold or sell to suit the markets. PRESERVING IDENTITY? New Zealand produced the best ’butter in the world, put it aboard ship, and then said “Go to It was after it left the country that the produce should be followed up to eec that it was properly distributed as New Zealand butter. What was the use of produc:ng more and more butter, and then letting the speculators take more and more out of it? New Zealand butter should be sold as New Zealand butter, and not be used to build up inferior Argentine or other butter. The dairy pool was the only remedy. If a certain number of producers remained out o*

the pool, there was no doubt that they would get higher prices than the pool prices for the first year, but this yvoiild bp done by the Homo firms with an object. The benefits of meat control to New Zealand had been enormous, and meant several millions of pounds to the country. Some said the rise in me price of meat was a coincidence, but he declared that it was the result of the control pool. The Meat Control Board had control of 63 per cent, of the.total mutton and lamb' imported into Great Britain, and even the great American meat trust was afraid of it. An intelligence department at Homo would have saved the producers three million pounds la.v. year. Mr. Morton, as representative of the Maoriland Dairy Conipanv. spoke in opposition to the pool, and was followed bv several others in the same strain, the chief objection being to the alleged haste with which the Bill was being pushed through Parliament. Mr. Geo. Capper moved: "That this meeting is opposed” to the compulsory I ulau.-e "of tlv> Bill now in circulation.” Air. Bakewell seconded. The motion was overwhelmingly lost on the On the motion of the chairman, Air. Hine, the promoters of the meeting were accorded a vote of thanks.

ELTHAM DAIRY CO.'S ATTITUDE. MEETING OB SHAREHOLDERS. The shareholders of the Eltham Dairy Company met yesterday to consider the proposed Dairy Control Bill. Mr. Forsyth (chairman) presided over a fair attendance. Mr. Forsyth stated that the Bill did not provide that dairy companies were going to market their own produce, but it gave them the power to do so. Many of tlie agents of Tooley Street in this country were opposed to the Bill, while their houses at Home were strongly in favor of it. The Bill made provision for a levy on produce, but this would not-be unlimited, but would be fixed by the dairy companies. Compulsory control would mean that New Zealand could handle its produce to the best advantage by cutting down all unnecessary costs, regulate the feeding and thereby stabilise the market. The present methods of marketing left too much, room for speculation, although he did not blame the people handling our goods if we allowed them the opportunity. Through poor marketing methods the producers of New Zealand had lost £1,000,000 last year. The quality of their goods was in no way inferior to any that was placed on the Home markets, yet it seldom was sold as New Zealand manufacture, often being blended with another article or sold under the name of a better selling brand. The principal benefits that would be derived from control would be one board to regulate the amount of white or colored cheese the country was to manufacture; advertise and sell one New Zealand brand of butter and cheese; eliminate the “luck of shipment”; equality of treatment of dairy companies; have the necessary finance to store, feed and stabilise the market; and obtain the best prices possible. This Would eliminate the staff of agents or brokers who were costing the industry £60,000 to £BO.OOO per annum, an amount which would pay for the control many times over. He considered that the proposed scheme was the best and most workable proposal ever put before the companies. and he hoped that he would receive the full benefits from it. (Applause.) Mr. O’Neill asked whether, in the event of the Bill going through, it was the intention of the board to scrap any contingent liability, such as the National Dairy Association.

The chairman: The National Dairy Association is not a contingent liability. Dairy companies pay an annual subscription only to tho National Dairy Association for the shipping of our goods, etc. I Mr. O’Neill: Will the board recognise ! the National Dairy Association.. i The chairman: The National Dairy i Association has always fostered any i new scheme put forward by dairy companies. Mr. Cocker said that by continuity of supply he presumed that a, certain amount of produce would bo kept back to feed the market during the off-sea-son. and he asked how would the finance he arranged during th&. latter period. The chairman said he had no fears that Tooley Street would finance them as they had done in the past. There would 'be no trouble whatsoever in reyards to finance. He was sure that ■the agents at Home would tyily be too ! glad to handle our goods and give the necessary finance. IJe considered that i competition would be keener. The direcI tors of the board would comprise six from the North Island and three from the South Inland, and he took it that ,they would be elected by the dairy companies. Mr. McWhirter asked what would be the approximate cost of the control board annually. The chairman stated he was not in a position to say, but he did know that it would cost as much as it was costing the country for the agents, and brokers ' to-day. . Mr. Cocker moved and Mr. Wood

'seconded: “That this meeting approves jof the Control Bill and urges upon the Government the necessity fpr the passage of this bill during this session. Th? motion was carried with two dissentients. Mr. H. A. Hunt (Stratford) writes:— Sir,—ln replv to Mr. Connett of yours of the 20tli, it is scarcely necessary to reply, as the strongest reply to Mr. Connett is contained in the resolution passed by the directors of the Bell Block Dairv Company, of which he is chairman arid forwarded to the pool commission now sitting to take evidence,, the directors of Mr. Connett’s company, being most emphatic in their condemnation of the proposed pool. The resolution conveys the impression that Mr. Connett has. like other poolists, with' an overweening conceit of their own abilities, taken it unto themselves to force this thing on the dairying community without .first eonsuiting those to whom they owe a grave responsibility, verifying the old adage, “Fools rush in where angels fear to tread.’’ - -* After the resolution passed by his co-directors' were. Mr. Connett other than pachydermatous he would make the "amende honorable’’ to his shareholders bv placing his resignation.in their hands, arid resigning from the pool promoters’ committee. Mv contention that a commercial business like the proposed pool needs commercial men of vast experience to guide its destinies. not inexfied ™ C< the ’balance sheet of the Southgreater loss than tlie whole of their railed up capital of £65.000, and their uncalled capital of £25,000. When my mind carries me back to. the Connett roading and maintenance policy of some time hack, when he was going to solve the question by a wheel tax, T picture the condition of our dairying industry if a few such men were controlling the marketing of our produce, when it took the Government and all adjacent local bodies to prevent, his hair-brained scheme being foisted on the community.

What would be tlie position of the dairyman in New Zealand if Tooley Street inerehants were to be so unkind as to call the darling of Connett. Morton and Co’s heart bv its true name of a Trust and did a little propaganda work- with scare head lines and articles in the leading British journals and refused to make advances on our proIn conclusion, of the three categories mentioned by Mr. Connett I claim to be in the sympathetic, as I have profound sympathy for the shareholders of the Smart Road Freezing Company that there should be so many careless, tinbusinesslike men on nny directorate controlling, a valuable industry whose only knowledge of its financial position sheet is presented. Were ’nt otherwise it could only be described as gross inability. < I am etc., H. A. Hunt.