Mr Goodfellow’s Criticisms

Dominion, Volume 28, Issue 33, 2 November 1934, Page 13

Mr Goodfellow’s Criticisms

Sir. —Among some .of Mr. Goodfellow's criticisms of the Dairy Commission report is a reference to the restrictions which are likely to be put on the operation of dairy companies, particularly in regard to the uneconomic sales of butter. One would be led to believe that any scheme, even though it is uneconomic to the dairy industry, so long as it is in concurrence with Mr. Goodfellow’s plans or arrangements should be given effect to. Mr. Goodfellow alludes to a contract which is in force, which necessitates the carriage of butter by rail at least 200 miles further than is necessary, which surely cannot be defended from the point of view of economy. The aspects at present ruling are:—(l) That the railway services are being utilised unecoiiomieally; (2) that the product is detrimentally affected by the extra distance it carried: (3) that the suppliers have, of necessity, to bear the extra costs entailed in carriage. Mr. Goodfellow apparently does not believe in planning, in spite of the fact that he appears to have planned affairs in the dairy industry for many years past. While we entirely agree with Mr. Goodfellow that the industry should control itself, yet the findings of the recent commission go to prove that the industry needs some unified authority to control it. as otherwise groups of farmers are apparently utilised to bludgeon other groups of farmers per medium of the dairy companies concerned to the detriment of all.

The reference to the carriage of boors and clothing is not by any means a fair analogy, as boots and clothing are loaded with the necessary material, freight and labour charges, plus profit, but there is no system at present in operation whereby you can.load butter with the equivalent costs. The selling price then has no relation to the cost of manufacture, therefore any differentiation in the cost of manufacture and the selling price of butter has to come out of the pockets or the supplier. It-is also apparent that boots and clothing are not affected to the same extent as butter by the distance they are carried. Mr. Goodfellow by his poor analogy only foreshadows the day when boots and clothing may come under tbe same despised system of planning. The contract referred to by Mr. Ckxxlfellow savours very much of "beggaring my neighbour to make it pay. It amounts to this, have the interests of suppliers to dairy factories to be sacrificed for the sake of a contract which, it is evident, stands in the way of progress'?—l am, etc.. 11. .T. BARLEY, . President Master Grocers’ Assn, Wellington, October 31.