DAIRYING INDUSTRY.

Waikato Argus, Volume V, Issue 380, 22 November 1898, Page 2

DAIRYING INDUSTRY.

MR SPRAGG'S VISIT. HAMILTON. Mb Wesley Spragg met the suppliers of the Hamilton Factory on Saturday morning. There were eight present, and Mr Baker was voted to the chair. Mr Spragg's address was in the main a repetition of what has already been published in our reports of his meetings at the other creameries. Mr Spragg said he thought it was fitting that he should meet the suppliers at this season, and he should have been here long ago only that he was in England before the season commenced. When he reached here he found that certain events had taken place which made it desirable that he should await developments before he thrust himself upon them. It was, he said, a very natural desire for people to wish to obtain the outside price for their milk, and they were entitled to take any means possible to obtain it, and he was not here in the spirit of contention. They were aware that the price quoted for this season was an upset one of 2Jd. The,,past season had averaged that for the whole district for 36 milk. He had arranged to give a higher price to those who continue to do business with his firm, and this increased price would total £2OOO over and above the upset price he had already mentioned. Ihe latest advices from England showed that all the freezing chambers were full of Danish butter, which had been purchased from 70s to S4s at the store. This meant of course that butter would be proportionately reduced in value according to the quality. The last season had proved a most successful one to his Association, but this had been largely due to the speculative demand in the colonies, created by the drought in New Zealand and Australia. This year they would not have this to rely on, and in addition the Argentine was likely to prove a very great competitor for the London market. He also anticipated reasonable competition from Australia, and as the dairy business was a most fluctuating one it was very very hard indeed to guess what the results of the season they had entered upon were likely 10 be. The Dairy Association had done their utmost for the suppliers, but if the suppliers had found anyone who would treat them better they were quite at liberty to make the change. Compariug the results at Hamilton factory with those of other places which have been figuring in the local press of late, the speaker said that at Tauwhare where there was one creamery, and the working expenses were necessarily much lighter, 29d or 2 9-10th d was paid last season. At Hamilton the suppliers received 2'25 d or 2^d —a fraction over a seventh of a penny difference, while afc Hamilton the skim milk was returned. (Mr Spragg here appealed to those present, who agreed that the skim milk was well worth Jd a gallon). Mr Spragg continued : Several Southern factories had also been referred to in the local press. He wished to state that the balance - sheets that had been quoted ana published, referred to the season before last and not last season, as stated. The Hawera Factory in 1898, paid 292 per gallon, and for skim milk, just a fraction over l-7th of a penny, so that it paid its co-operators less than was received by the Waikato suppliers, notwithstanding that of the Association's 29 creameries, the largest was just half the size and the smallest l-4th the size of the Hawera Factory, which, of course, increased the working expenses tremendously. This was one of the best of the Taranaki factories. One of the worst was Ngaire, which was also twice the size of the largest Association Factory, and did not return skim milk, paid 2'6d or a fraction over 2§d. This was a co-operative concern, and the shareholders had to take all the risk, and some day would make a big loss. Referring to the Tai Tapu Factory, situated near Christchurch, spoken of by Mr Higginson, as having paid for milk, Mr Spragg said things were not always what they seem. On goiusj through the balance sheet he found that 3"36d and not 4sd was the price paid. The Association's largest creamery was just onethird the size of the Tai Tapu Factory. The average cost of working the Association's creameries was £IOB, and the total cost of cartape and railage was £3132. The Tai Tapu cartage totalled £ll7. Four and three-quarters such places would equal the output of the 29 Waikato creameries, and this amount multiplied by 4:J & ue as against £3,132 in Waikato. The Tai Tapu wages and salaries amounted to £650, which, multiplied by 4|, gave £3,087, while, although the Association worked their factories fairly cheap'y, they had to pay £5,350. These two items taken together made a difference of £SOOO, which, if divided among the suppliers, would make a great difference. Another thing in Waikato was that those suppliers situated in the country received exactly the same price for their miik as those living within 11 miles of Auckland. Referring to Mr Burke's test, Mr Spragg said the average difference in Mr Pond's test from that of the factory was 2 44—two points between the two. This was simply the difference between the analytical and commercial test. Oliver's standard work published in 1894 says that the figures on the graduated tube should go to show the amount of butter realisable from the milk by separation, and if it is desired to know the proportion of fat in the milk 4 of 1 per cent, is to be added. In the instructions sent by the Babcock tester manufacturers the same statement was made, and this was nearly twice as high as the difference between their tests and Mr Pond's. Re the accusation made by a late employee that he had been instructed to read tests in such a way as would be unfavourable to the suppliers, Mr Spragg read an extract from the circular referred to, which was exactly similar to that sent to the other creamery managers, with one exception—viz, that he had informed this employee that the loss in his returns was due either to incapacity or carelessness and that he was to act with the strictest impartiality as between the Association and the suppliers. He had also asked whether he made due allowance for the hollow in the centre at the top of the tester. It was the custom of the Association to measure from the bottom of the hollow. Snyder's Chemistry of Dairying, 1896, laid down this rule, and a letter from Messrs Pond and McLauria to the same effect was handed round for inspection. Coming to the objectionable penalty clauses, Mr Spragg said that with regard to the Association retaining the value of the previous month's milk for any breach of contract, that they must have some reasonable provisiou against dishonesty. Once only iu ten years had the penalty been enforced, and then the Association had refused to take the whole of the money. The other clause referred to the AssociaN tion's power to close any factory supplying less than 400 gallons a day. He might say that they had run the Pateraugi creamery some years ago when the supply was so. small that every pound of butter cost 2s 6d when it was only bringing Is in Auckland. They did not think of closing it until requested to do so by the suppliers. Only once, then, had this penalty been inflicted, and it would not have been inflicted then if people had acted in a straightforward manner. Speaking of the Union, Mr Spragg said he was in England when the organisation came into existence. He thought it would have been nicer and more courteous if the thing had been allowed to remain in an embryo state until his return. Rule 2 read as follows : "The Union shall comprise all persons supplying milk to the Association throughout the Waikato district." The emphasis was hie own. He thought

this most arbitrary, and he thought it was wrong to coerce any man. He could not refuse to receive milk from any man who refused to belong to the Union. The Union delegates, by a three-fourth majority, could compel the suppliers to do anything. In a letter to him they had said, " You shall go out of the Waikato." Re refused to have anything to do with the rules. He did not oppose unions, they were excellent things if carried out on the proper lines. He had met the suppliers of the Pukekura, Pukerimu, Kihikihi, Te Awamutu and Ohaupo factories, and at each place, with the exception of Te Awamutu, he had been unanimously requested to continue the business. He was not going out of the Waikato at the direction of people who told him that he had to. As far as Hamilton was concerned the suppliers had the matter in their own hands.

Mr Baker said he thought the Hamilton delegates should have been present. He invited questions from the suppliers. In reply to questions from Capt. Runciman, Mr Yeats, Mr Davis and others, Mr Spragg said all information regarding the tests could be obtained by aDy supplier in Auckland. Be had refused to have anything to do with the delegates, as they would only meet him as representatives of the Union, and he considered that would compromise him. He wanted then and wanted still to have all his figures checked and audited. He would have listened to them as a committee, but preferred to meet the suppliers face to face, and in doing so he was satisfied now that he had done the right thing. Mr Runciman said he thought the eighth rule should be expunged, as there was a limit to all penalties. He had expected Mr Spragg to meet them a few weeks after his return from England, now three months had elapsed. What he objected to was that between the time the meeting at Ohaupo was advertised and the day for holding it, Mr Spragg through his agent had sent a circular, saying these are our prices, you c»n accept them or not. The suppliers, he said, had £lO in the business for every £1 of Mr Spragg's, and this teing the case they did not like to be treated as slaves. It was said that by pastuerising the milk the cows could be fed upon feed which they could grow—such as turnips, under the eighth clause they could not do this. They could only feed their cattle ou carrots and oaten chaff, and this was like paying 23s for 20s. He thought Mr Spragg should have called one central meeting to obtain the general opinion of the suppliers. He did cot ask for an increase in the price so much as an alteration in the conditions.

Mr Spragg reiterated his former remark that he was entirely in the hands of the suppliers, and they could do with him as they thought fit. As to the relative interests in the business, the suppliers certainly had the greater amount of money but nothing like the risk. If it were possible to grow sugar beet they would not supply a gallon of milk next year. Capt. Runciman : I think there would be ten for every one at present. Mr Spragg said if it were possible to utilise the land in some manner which would pay better than milk they would not produce another gallon of milk, and he would be left high and dry. He had already explained that he would have come into the Waikato before only he found that there was an organisation in existence. He had tried to get representatives of the suppliers to come to Auckland and examine his documents. He had acted as wisely as he could, and would like to know whether they wished him to continue his business in Waikato or not. Mr Yeats said he was somewhat surprised at the line taken by Captain Runciman in respect to Mr Spragg personally. Never in his experience had he come across a man who had endeavoured to transact his business with moie consideration and liberality of feeling than Mr Spragg. He proposed that the milk suppliers request Mr Spragg to continue hia milk business in Waikato as heretofore. (Hear, hear). Mr J. Davis seconded. The motion was carried unanimously, three of the eight present not voting. Mr Spragg said Captain Runciman had spoken a little harshly of Mr Pacey, who had, he said, been placed in a difficult position, but he had carried out his instructions to the letter. He thought it would be an excellent plan to appoint a committee to meet him and discuss the whole business. He thanked the suppliers heartily for their attendance. A vote of thanks 'to the chairman elosed the meeting. OHATJPO. On Friday last Mr Spragg met the Ohaupo milk suppliers in Mr Teddy's Hall, at 2 o'clock. About a dozen suppliers tvere present, besides several others. Mr J. T. Edwards was voted to the chair, and called upon anyone who wished to address the meeting. Mr Spragg thanked those present for meeting him, and spoke for a considerable time, the subject matter of which you have already published, and said that any price they could give would hardly pay the supplier for the labour and trouble of production, but that he would give the highest price the firm could afford, consistent with prudence and that small creameries did not pay well, saying that the local creamery could deal with four times as much as it was, with very little additional expense, and drew comparisons between Waikato creameries and those down South, and quoting from statistics and balancesheets, proved to the satisfaction of his hearers, that they were getting as much as was paid to Bunpliers in Southern creameries. In many cases the skim milk was not taken into consideration, and he asked the suppliers present to state a value, and the reply was at least a farthing a gallon, some putting it at more. Only eight of their creameries were as large or larger than Tauwhare ; all the rest were below, and taking the return of skim milk into consideration, they were paid as well as the Tauwhare suppliers. If they could supply more milk he could pay a little more for it, and he would endeavour to meet their wishes by reducing the number of gallons that would entitle a factory to a bonus. Re the Union, he would treat it with all due courtesy, but would not allow himself to be taken by the scruff of the neck and be coerced into anything. Unionism meant coercion, therefore, although a working man himself, he did not believe in trade unions, but whenever they wanted to co-operate he would assist them all in his power. Re testing, he went over the same ground as already reported, but more concisely, by sayiDg that testing by analysis and by the Babcock was much the same as testing ore by the chemical process and the battery system, the one would show perhaps '2ooz. to the ton, while only about 2oz. could be extracted by the ordinary process. Re the penalty clause that so much was made of, it would be open to modification if so dJtred, but there must be some provision roguery ; honest men need not fear a penalty. The Association had only to enforce that clause once and they may never have to do it again, but must protect themselves, and also the clause re closing a factory, they only enforced that once when the supply came to only a lew gallons. In one instance in the Waikato it cost them 2s Cd to make a pound of butter, which they sold at Is, but they did so to keep faith with the suppliers. He now invited questions. The Chairman said that Mr Spragg had explained many things that were in doubt. Mr Jas. Gane said he was here by accident. He not being a supplier to this creamery he did not want to interfere, as it most concerned the Ohaupo

suppliers. The trouble arose on account of the low payment for milk. The industry is good fur the Waikato, the rules are only a minor affair ; what wants settlingisaprice. Could they look forward to a better price. The smaller creameries could not look forward to a bonus for a large supply, and if reasonable information had been given re the profits to see if a better price could be paid it would have avoided the little breeze He saw no reason to object to a commercial lest, but people did not know of the difference between a chemicil and a commercial test.

Mr Spragg, iu answer to the question of price, said : I stated 1 would give £2OOO as bonuses to factories that would exceed a certain supply. I will try and modify the supply so as to include smaller factories.

No more questions being asked, Mr Kusabs proposed and Mr Corrigau seconded, " That we ask Mr Spragg to continue as usual, and that we have confidence in him."—Carried unanimously. Mr Spragg thanked the meeting, saying he would treat them as well as he could.

Mr Corrigun proposed a vote of thanks to Mr Spragg for meeting them, which was carried.

Mr Spragg then proposed a vote of thanks to the chairman, which concluded the meeting.—(Own Correspondent).

The following letter has been sent to Messrs Hunt & Co. by Mr Sprang : " Auckland, November 18,1898. Messrs R. R. Hunt and Co. Dear Sirs,—l have just returned from the Waikato, where I have learned direct from the milk suppliers themselves that you have acted under misapprehension of some kind in applying to me, in their name, for the transfer of my business to you as their agents. As I have only acknowledged you as the reputed agent of the suppliers, which now appears to have been an error, and as I have no intention of dealing with you in any other capacity, this present will serve to bring communisations between us to a close.— Yours faithfully, Wesley Spbagg, Manager New Zealand Dairy Association."