MILK SUPPLY

Dominion, Volume 12, Issue 91, 11 January 1919, Page 10

MILK SUPPLY

THE COMPANY SCHEME COMPLAINT OF VENDORS Complaints against the chairman of tho City Milk Committee were made by Air. Henry Bodley in a statement which he offered to a reporter of The Dohimon lust night. Air. Bodley produced documents in support of his case, of which the following are those that were important:— A statement of the agreement arrived at by a meeting of representatives ot certain of the vendors, with Mr. Norwood: ' "Councillor Norwood, chairman of the Spccial Milk Committee of tho Wellington City Council, at a meeting : held at the office of the Dominion Motor Vehicles, Ltd., at 9 a.m. on Friday, December 2/', 1918, assured the undermentioned as follows:— "(1) That the formation of a company of milk vendors to distribute milk, cream, etc., to be supplied trorn the council's premises, Dixon Street, would be left absolutely in the hands of the following:—City Milk Supply Company, Ltd., Messrs. Henry Bodley and Sons, Karori'Alilk Supply, Ltd.,, Li. S. Brown (Central Dairy); and that the Milk Committee would recognise these alone in all transactions in connection with the company formation and agreement with the council as regards supply. '"'(•2) That the Milk Committee decide not to negotiate any further with thoMilk Vendors' Association.

"(3) That failing those present at the meeting agreeing to proceed with the formation ■of a company the council would enter into competition with the vendors from January 15, 191!). "(4) Councillor Norwood agreed to the proposals submitted by the "representatives of the firms mentioned, but stated that the clearing-house, charges would have to stand over. ,

"(5) Councillor Norwood understood that the council would make as an immediate payment not less than 7d. per gallon on the vendors' sales of milk,

"Present iat the meeting: Councillor Noru'ood and the City Solicitor (Mr. J. O'Sliea); Messrs.. C. J. Duffy iKarori Jlilk Supply), U. S. Brown ((central Dairy), and J. P. Brandon and S. G. Cole (.Crcy jiiiK Supply, Ltd.)." The document was signed by the representatives of the vendors named above. Mr. Bodley produced also the following letter from Councillor Norwood, as chairman of the Millc Committee, to Mr. J. P. Brandon, a3 acting-chairman of the proposed' 'milk distributing company, dated January 10,:— "In further reference to our conference of yesterday, when various clauses of the proposed agreement were discussed, and reierring also to niy conversation through the telephone this morning, I have to say that 1 have devottd some time to try to bring the agreement to such a form that your committee will be able to add finality to it at their meeting this afternoon. "There are just one or two matters or policy which'arise which must have the consideration of my full committee, and the question of price referring to the wholesale sale and purchase of milk and cream, which wo notice is entirely struck out by your committee, must have most carel'ui consideration, as the agreement as far as it relates to price in the way' you have arranged it would be putting an enormous power in your hands, and we have cojne'to the conclusion that so far as this is concerned a conference with the Board of Trade is essential, and an appointment has been made for Monday next.

"Apart lrom prices there are somo matters of detail which should not involvo the slightest difficulty in settlement. The time of delivery required by your, agreement is capable of defeating the objects which my committee liave in view of getting the milk quickly ,to the consumers, and I am of opinion that some clause should be drafted mutually satisfactory, giving the council some •power, so tar at it relates to the taking away of milk from the Central Station. We. are' working on this matter carefully, and while observing the interests' of your proposed new company, we aro drafting an agreement which we think will give the required power'to the >council to safeguard your own interests. We hope to be able to submit this to you on Wednesday morning next." "It should be explained," said Mr. Bodley, "'that the firms I have mentioned gave an undertaking that as soon as they had formed the new company the other vendors in the city would have a right to join it and to take part in the control of it according to the business they were doing. . We ask for nothing out of it for the flotation' of it, but, of course, the out-of-pocket expenses would have to be' borne by, all the Miairehoklers when (he company was formed. 'The reason for the handing over of the flotation of. the company to us was that it seemed to be impossible for anyone to persuade all the vendors to come into a company and form it. Wo ■were to have charge of the flotation oniy. The effect of this letter from Councillor Norwood is to prevent'the formation of the company umtil after the council commences operations. The farmers have declared that they will not supply milk to us after January 14, and that they will begin to send milk in to the council on January 15. The present position is that we have no arrangement for getting the milk from the council until after we have formed a company, and we cannot form a company until after January 15 becatiso' of this letter we have received from Councillor Norwood. We say that it is impossible for the council to work' with the vendors until they have formed a company. The council cannot deal with the vendors individually nor with a number of companies. As I have said, we cannot fcrra this company until after the council has commenced operations, and we say that the. agreement made with us is not being kept by the committee. ' The points raised by Councillor Norwood are not materia!." Mr. Bodley suggested that there were other reasons not stated in the letter for the postponement of the company formation.