The Waikato Argus GEORGE EDGECUMBE, Proprietor. THURSDAY, JULY 21, 1898.

Waikato Argus, Volume V, Issue 317, 21 July 1898, Page 2

The Waikato Argus GEORGE EDGECUMBE, Proprietor. THURSDAY, JULY 21, 1898.

It has now become an annual custom with milk suppliers just previous to the commencement of the season to hold meetings with a view to securing better terms from the owners of the creameries and butter factories. This step has always been taken so late in the day that the suppliers having 1 made all the arrangements for the season are practically compelled to submit to the terms offered by those who hold the key to the position, and they having to take, any risk of loss that may accrue, naturally endeavour to secure for themselves as large a margin as possible. At each of the annual meetings balancesheets of co-operative companies have been produced showing that higher prices are reaped by the suppliers to these Associations than are offered to them. At Ohaupo on Tuesday that of the Riversdale Co-operative Dairy Factory Company for 1897 was in evidence. The average price paid to the suppliers, 3.54 d per gallon of 111 b. for the whole season, the company, in addition to paying the suppliers at the above rate, wrote off £IG4 8s for depreciation of building and plant, and paid a dividend of 8 per cent, on the capital invested. There is a considerable difference between 3'54d per gallon and 2yd, as was paid last season by the JNew Zealand Dairy Association, and as is proposed to be paid for that about to open, We are not in a position to state that the difference in the price paid by the Dairy Association and the Co-operative Company is not justified by difference in the circumstances which control the two businesses. Mr Spragg, however, could, no doubt, supply reasons satisfactory—at any rate, to himself, —why this is the case. As we have pointed out, on each occasion that we have been called upon to deal with this question, under the co-operative principle the price paid for cream is governed by the price realised for the cheese or butter produced. The co-operators, therefore, stand to lose if the market were to collapse, whereas the Waikato suppliers are assured of a certain price, if that price be a low one.