DAIRY PRODUCE POOL

Evening Post, Volume CIV, Issue 2, 3 July 1922, Page 6

DAIRY PRODUCE POOL

PROTEST OF "THE MAJORITY"

THE CONSUMER AND BINGS.

■ Following the,letter (in The Post) . •from Messrs. R. and '--Vf. Davidson, Hem-y.A'; Lane api Co., : Lovelj and ' Christmas, A. J. Mills and Co., and Samuel, Page and Son—the five ' «ompasies a,t present acting as agents for the New Zealand Co-operative Dairy. Oompariy-^an^ published "in various, l«onploii * papeivi, there 'apijeareii a prptest in the Financial Times and other \ J9H?rilS'ls. froni the remaining importers. It was as follows :— ■

"With reference to the letter in yoiw issue of to-day signed, by five of the principal importers of colonial produce intq frhw'.country!'-; we'eliaujd like/to make the follqwing remarks on 'behalf of the remaipipg importers. Although, the circular issued to the'trade by tfle promoters states that.'the object of the prqnosal is to regulate shipments and icoiitrol prices,' ' your correspondents appear to bp quite satisfied.in;tfieir own minds that thpre ia no. intention of holding up prices in' t}}is country. It may be , that, the, main object is only to prevent unnecessary fluctuations, although we are rather at a loss to understand h,ow any pool CQuld prevents fluctuations' which .have t^ken place..during the past two years, as the result of Government control and its afteraath. Yftt- cqrdjally approve, ©f objept ipsofa.r as it ap-" plies to the future, ■ an^ also of/ endeavoui'ing, by; organisation, to secur-s economies and greater: efficiency in the distribution pf Ifew 55ealan.(J' prpd. uce in this cpuntry. The only difference of opinion between us is upon the question as to whether the creation of a compulsory pool is the best or only means of securing these results or is in the best interests of the producers.. Mass control can doubtless be used to regulate-prices,' but the idea that it csn be used success-, fully from the point of view of eittier Hie producer pr consumer repeived no support froTn\the bitter experiences of control ■during and after the war. ■ '. : "It may be that youi1 five corresponr dents as agents for the pi-omotJera of the pool feel themselves ■ safeguarded as regards supplies under ' the proposed scheme j : but no , x satisfactory ! assurance has been offered to the rest of the trade. The other importers ars naturally loth to run the risk of scrapping their organisation 'in deference to the wishes of their promoters of'the compulsory pool, ■who, after they have received the sanction and support of the New Zealand Parliament, may find themselves nnable ■to parry out effectively all the good intentions with which they are at present animated.'' ''

' The letter was signed "The Majority." Reference was made in the Daily Telegraph to Mr. Goodfellow'si statement ■when he returned to New Zealand, and the* following sentences are quoted: "There ifi far too much speculation in colonial produce in London, which re-; suits in fluctuating- prices. What is of 'Supreme importance is to get top prices. An effort must be made to stabilise markets by establishing effective control of prices in London and elsewhere. An effective price oontrol in conformity with! supply and demand is needed, and foe this reason it would be wise to co-operatai with the producing interests in Denmarla and ATOrtralia, : ■ ' '■'.

"The consumer in London recognises the desire of the New Zealand prpdncef •to 'get top prices,'^' the Daily TelegrapK x»dds, "btft fails to' appreciate anything; in the. nature of a ring to keep tijem at a high level.1' ,