STATE PURCHASE

Waikato Times, Volume 119, Issue 19899, 30 May 1936, Page 7

STATE PURCHASE

PROPRIETARY COMPANIES. r ...- AIOLITION OF OVIRLAPPINO. OPINION OF FARMERS‘ L'NION. .. (Special Reporter.) AUCKLAND, Friday. A feature of the afternoon session of the Auckland Provincial conference of the Farmers' L'nion to—day was the animated diScusslc-n on a \\‘aikato romit that urged Luovernment purchase of proprietary dairy companies where these competed with co-operative companies. The remit was moved by .\ir J. 11. Furniss and read: "We urge that proprietary dairy factories competitive with co—operathe concerns he bought by the Gov—ernment and disposed of in accord—ance with the wishes of the co—operatlve dairy companies. The expense entailed by such purchase to be borne by the cowperaiive dairy companies affected. by a levy upon their ouput or such other means as they prefer. We further urge that action be taken to eliminate overlapping between co—operative dairy companies and that no I further licenses be granted unless it can be shown that the existing factories and organisations cannot cope with the supply offering." Several speakers contended that in many cases the management at co—operative companies was at fault and therefore it was unfair to prevent farmers from making any choice as to what company they sent their milk supplies. Some of the objections against the remit did not indicate a broad view, considered Mr G. D. Hunter, llorshaln Downs, and all petty differences should be dropped in order that the dairying industry could be rationalised. it would be a great mistake for the conference to prevent inevitable progress. Unfair Proponl. Proprietary companies had been al~ lowed to develop their business and it did not seem to him a fair proposal to force them out of business; said the president, Mr H. O. Meilsop. The goodwill or these companies was such that the necessary finance to purchase it would ultimately have to come from the pocket of the supplier of the co—operative company. Mr A. E. iiobinson said that proprietary concerns could make no complaint if they were completely and fairly purchased. and certainly an enormous saving to the industry would be effected. The chief dimcuity with cmoperative companies, contended other speak< era. was that many farmers appeared to have a life—long seat on a directorate and the management of the companies would be improved considerably if directorates were changed more fre—quentiy. Remit carried. In replying to the criticisms voiced. .\ir Furnlss said that no real argument against the remit had been brought forward. The Union was endeavouring to abolish overlapping in other directions, such as in the collecting of bobby calVeS. and it seemed only reasonable that it should oppose overlapping as far as dairy companies were concerned. it was not an injustice to buy out the proprietax y concerns. because they would be fully compensated. Where it was considered to be in the interests of the people. any proprietary concern should be purchased in favour of cooperative bouies at fair valuation. Although many attempts had been made to introduce zoning, very little had been done in this regard. The remit was carried aimoat unani—mously.