The Waikato Argus GEORGE EDGECUMBE, Proprietor. THURSDAY, DECEMBER 15, 1898.

Waikato Argus, Volume V, Issue 371, 15 December 1898, Page 2

The Waikato Argus GEORGE EDGECUMBE, Proprietor. THURSDAY, DECEMBER 15, 1898.

Mr Hunt has completed his tour of the creameries in Waikato. In every instance we are glad to note the principle of co-operation has been adopted, and in many cases the meetings agreed that Mr Hunt should be entrusted to bring the principle into force. It appears to us that his terms are as good as are likely to be secured bv any other means. He undertakes to find the money for the purchase of the creameries and is to give a guar-

antee of B£d for all the butter turned out within five years, and in the event of more being realised by its sale to divide the surplus with the suppliers. We understand that this _ guarantee will be endorsed by a firm in London uf undoubted standing and stability. This is an important point in the business, and one that will of course be insisted upon by the suppliers before they enter into co-operation under Mr Hunt's auspices. Mr Hunt states that if the suppliers of from 60 to TO per cent, of the milk enter into the scheme, a company will be formed on the lines he has laid down. Whether it would be the wiser course to purchase the plaut under the control of Mr Spragg or erect a fresh one is matter for consideration, provided that gentleman agrees to sell at the pri3o offered (£9,000), the right to the Anchor Brand being included, or whether it would be wiser to erect new and up-to-date plant, are matters that require careful consideration. If Mr Spragg agrees to sell at that price, as a matter of equity he should be allowed tho chance to do so. It is contended by some that it would be more advantageous to the suppliers to orect their own plant, as loss cost would be involved, and they would havo new machinery in place of old. Then comes in the question of the value of the brand, which, being established and of good reputation, is of considerable value. This would have to be added to the intrinsic value of tho old plant in making an estimate of the two proposals. It apDears to us that it would be better for all parties that Mr Spragg should state definitely the terms upon which he is prepared to enter into cooperation with the suppliers. It has been stated on his behalf that he is willing to do so. Of this we are perfectly clear: there will be chronic discontent so long as all the details of the business remain undivulged to those who are primarily interested, and this can only be under some system of co-operatiou. And as we have pointed out in previous articles, tho suppliers cannot expect to secure the best possible terms unless they are prepared to take some of the risk on the commercial side of the business. If they will not do this they must pay somebody else to do so. We do not see, however, how, with a guarantee of a paying price for the butter produced, any loss can arise. On the contrary, those who enter into co-operation will gradually purchase the plant used in converting their milk into a saleable commodity, and then receive approximately as much cash as they are doing at the present time. Obviously, our only object in writing on this subject is to lead up to a state of affairs when the milkers will receive the best possible price. So far as we are concerned, we don't care a brass farthing through whose instrumentality or by what means this is brought about, so long as our constituents do not run any undue risk. The scheme sketched by Mr Hunt appears to us to meet the requirements wo look for, but the soundness of his proposal hinges upon the value of the guarantee of S£d; that being satisfactory all the rest is plain sailing. The remuneration ho asks is to our mind very reasonable; he is an experienced business man, and if he were not employed some other man would have to manage the co-opera-tive" business. Whoever is appointed manager will be associated with the directors elected by the shareholders, who will be jointly responsible for the honest and efficient management of the business. We are assuming, and we trust are justified in so doing, that the great majority of suppliers are resolved that co-operation shall come into force in some shape. In connection with the milk business this system is proving eminently satisfactory in other parts of the colony, and we are not inclined to allow that the people of Waikato are less competent than others to manage their own affairs.