CITY MILK SUPPLY

Dominion, Volume 12, Issue 23, 22 October 1918, Page 7

CITY MILK SUPPLY

ULTIMATUM TO VENDORS

THE COMPANY SYSTEM OP

DISTRIBUTION

A SETTLEMENT

The negotiations in connection with

the proposed milk scheme' for the city were advanced a further stago last evening, when,- at tho invitation of Councillor C. B. Norwood, the milk vendors assembled at No. 1 Committee Room, Town Hall, to discuss tho ' situation. Councillor Norwood presided. Councillors K. A. Wright, M.P W. H. Bennett, L. M'Kenzie, and M. L'. Luckio, members, of the City Council Milk Committee, were present, and there wus a very large attendance of vendors.

Councillor Norwood stated that it was just four months 6inco a similar meeting .to consider the matter had been

held. . It. was then thought that the vendors would accept the propositions which, had been placed belore them. That tho negotiations had not come to .finality he thought was duo to a lack of conridenco amongst the vendors, rather than to a desire to block tho scheme going forward. The Milk Committee had come to the conclusion that that wad tho position, and felt that sufficient time had been given to the vendors to suggest concrete proposals. The committee coneidored tnat the vendors had now forfeited any obligations. the- City Council might have felt towards them in regard to the milk supply. That was strong language, but nevertheless, it reflected the views of tho committee. As u result of certain- interviews tho committee had been prepared to allow the vendors 7d. per gallon for distribution. That was not considered to be us food au offer as the committee had at rirstj made, but it was believed that the earnoinies that would be effected would result in benefit to the vendors. A meeting had taken place between representative? of the but the result had not been communicated to the Milk Committee. As a result of having been, ignored by the vendors' representatives the committee decided that they would givo the vendors one final chance of accepting definite proposals. A new proposition put forward by!the committee was tnat Wellington should be divided into Approximately six' equal districts. The ■vendors would be asked to apply for just 113 much milk as they felt they could deliver. Any one of them could make 6uch a napplication. Applicants would lie asked to pay .a' deposit for. each frallon' asked for, but the conditions .of tho payment of tho deposit would lie varied in order to meet the circunistances of the respective applicants. If this .scheme were approved by the vendors the money would have to be paid lato the City Treasury by Wednesday, in order to give the 6cheme a start. The proposal was not a company one, it'was leally the adoption of a direct contract system. For each area there would have to bo a supervisor, whoso, salary would ■lie levied upon the .vendors in the various nxeas concerned. (laughter.). Councillor Norwood: Well, yon need not laugh. I am glad 1 -to see you are ' pleased with it. (More laughter.) ■; An Alternative Proposal. Continuing, Councillor Norwood said there was an alternative proposal which ho would put forward, under, which tho .vendors could agree to become members of one company, to be controlled by a governing director and sis block managers. The salary of the governing director could bi arrived at by agreement among the vendors. The second proposal would be more advantageous to the city from a retail point, of view. Applications for'the position of governing director would be called,from the four centres in New Zealand, and the salary should lie not less than JBSOO a year, although, as ho' had said, that would be a matter of arrangement. Under-the No. 2 pro-. jiosal the Milk Committee 'would negO/tiate with a view of handing over tho ■whole milk supply to the company, including- the sale of;.- by-products. ,He considering that the receipts would be sufficient to meet tho-cost of management. From an economio standpoint he thought .that the council was right in preferring a- single company. Tho block managers would bo in touch with tho situation in each block; and they would form a kind of-board of directors, under the guidance of an independent manager. Tho committee would not a greater tcnuro than two years, but if everything ran satisfactorily then at the end of that time ho thought it unlikelythat the City Council could disturb the arrangement. If .the cost of distribution did not exceed i\i, per gallon, each member of tho company should make a net profit on every 100 gallons of ,£3BO per annum. The Milk Committee had given the subject earnest and careful, consideration, andthey desired to do the Tight thing by the vendors. Ho appealed to those preFent to assist the committee in, its endeavour to ensure an efficient .milk supply scheme for the city. - The council would not attempt to distribute the milk ' before', everything was placed on a thoroughly .sound and effective basis. "A vendor: What, about a man who has ,'to go into camp? Councillor Norwood Teplied that every : measure wouldsbe taken to ensure protection of the interests of such men. j ■Ho considered that the company scheme I

.would-be tho best system to adopt towards that end.- If the company scheme were approved tho council proposed to nsk the City Solicitor to draw up a prospectus, and Mr. C. B. Morison, IC.C, wild be requested to represent tho inorcsls of the members of Hip company.

Tho Committee's Determination. Councillor Bennett ■ said tho member of the Milk Committee •fcerc determiner, to miiko a success of tho scheme, and ho felt sure'that-,at tho end of two' yenrs tho public would thank the coinmitleo for the work they had done. If the vendors were not prepared to assist (lie committee, (hen let them get out, and get out for all time. '

I A vendor: That's straight. I _ Another vendor warmly protested tbfic it was not fair to takt away tho living of in on who had worked for years in attempting to build up decent businesses. I Would Russia dare to do such, things P. I Councillor Norwood: I cannot let you go on in that strain. For four months | you have been offered all tho profits. If you won't see anything, then nothing I can do will make you seo it, and it is no good you coming here and talking about your wife and family, or somebody "else. . This is a business matter. There may be some whom it will bear upon hardly, but it will not bo tho vendors. Wo offer you a definite proposal. Eeither accept it or reject it. The committee want to giye the maximum result to every one of you, and, is resolved to go ahead with the Matter. Documents wero submitted to the meeting in the form of applications, which Councillor Norwood requested (he vendors ■lo sip. This, he said, would give the committee «'n indication ns to which scheme the vendors favoured. Councillor Norwood mentioned that already the committee had received applications from vendors covering a supply of 1600 gallons under the company system. Whatever' decision was arrived at that night would not affect the position, of ] those who, wero purely milk shop proprietors, as their interests would bo considered separately. The result of the meeting, according to Councillor Norwood, was that only three' .present .refused io take up the councils proposal,, there being an overwhelming majority in favour of the company system. The amount of milk applied for for distribution exceeds Wellington's requirements. In other words, the trouble between the committee and the vendors has been settled.