The Waikato Argus GEORGE EDGECUMBE, Proprietor. SATURDAY, NOVEMBER 26, 1898.

Waikato Argus, Volume V, Issue 372, 26 November 1898, Page 2

The Waikato Argus GEORGE EDGECUMBE, Proprietor. SATURDAY, NOVEMBER 26, 1898.

The disagreements and misunderstandings with regard to the conduct of the dairy industry in the Waikato have reached an acute stage. It may be as well that wo should shortly recapitulate the course of events. The suppliers to the Waikato creameries were unanimous that they were not receiving an adequate price for their milk from the Dairy Association, of which Mr Spragg is the manager. In consequence banded themselves together as a union, passed rules and appointed delegates, who in their turn appointed au executive committee, with general instructions to secure better terms, or the best terms possible for the suppliers. They approached Mr Spragg, who declined to have any dealings with them as representatives of a union. The executive committee declined to deal with him on his terms. Mr R. R. Hunt in the meantime made an offer to find the money to purchase the creameries and conduct the business on specified terms. These the executive committee of delegates had no hesitation in accepting. Owing to Mr Spragg's statement when he took over the creameries that he would sell to the suppliers at a fair price at any time they should desire him to do so no difficulty was anticipated from that gentleman, and the committee of delegates being of opinion that they had the power to conclude the business closed with Mr Hunt. Immediately afterwards Mr Spragg started on a lecturing tour through the Waikato, and succeeded for the time being, in convincing the suppliers that he was doing the best he could for them, having due regard for his own interests and the risk of bad seasons. In consequence, at several of the meetings he called, he received favourable votes and requests that he would continue the business as hitherto. The suppliers did this before their own delegates had had an opportunity of explaining the position or drawing a contrast between tho terms offered by Mr Spragg and those offered by Mr Hunt. The cause of this delay on the part of the delegates, the Chairman has stated to hav.e been, the belief that Mr Spragg's reply to Mr Hunt's letter was so friendly that no difficulty in coming to terms with him was anticipated. The suppliers, therefore, really voted confidence in Mr Spragg on an ex parte statement and without hearing the version of the men they had deputed to act for them. It is contended by some that the delegates in entering into an agreement with Mr Hunt exceeded their powers, and give this as a reason for practically passiug a vote of censure upon them.

The terms of this agreement are before the public, having been printed in full in our last issue. It is not, therefore, necessary for us to enter into a lengthy explanation of them. To sum the matter up in a few words, Mr Hunt undertakes to find the capital to purchase the creameries, the suppliers giving jointly and severally their guarantee against loss. This clause is contained in every deed on the strength of which capital has been found, and creameries are being conducted in this colony on the cooperative principle. This guarantee means that in tho event of interest and sinking fund not heing forthcoming, and the lenders of the capital for their purchase having to foreclose and realise, that the suppliers become jointly and severally liable for the deficiency. Such a contingency as this is very remote indeed, far the reason that the mortgagees would pay a fixed price for the milk which would be remunerative to the supplier. Tho Is per 60 gallons as sinking fund, at the present rate of supply, would in five years pay off all the capital, when the creameries would become the suppliers' own property. This is taking £IO,OOO as the cost. The Dairy Association, we find, paid suppliers last season equal to 7£d per lb for butter. Mr Hunt's offer is to give B|d. The difference in these prices, calculated ou the supply of last season, means that the suppliers would receive about i'5,000 more than they have done. Mr Hunt will be in Waikato next week, and it is hardly necessary to point out that his proposals should bo carefully considered before the suppliers decide definitely as to the course they shall pursue. For our part, we are clear that there will continue a chronic state of discontent until a system of co-operation is established aud the busiuess is under the control of all interested.