DAIRY CONTROL

Evening Post, Volume CXII, Issue 107, 2 November 1926, Page 10

DAIRY CONTROL

OBJECTIONS TO BOARD

DEPUTATION TO PRIME

MINISTER

A DELAYED CABLE.

(By Telegraph.—Press Association.)

INVERCARGILL, Ist November

Mr. T. M. Timpany, Southland member of the Dairy Control Board, had mado an interesting statement to the Press concerning proceedings at the recent meeting of the board. Ho states that, after Mr. Corrigan's notice of motion h;ul been passed, setting up a system of price naming, an announcement was niado to tho meeting that the Hon. J. G. Coates had sent tho following telegram to tho board, dated London, 27th October:— "Influential deputation representative importers, blenders, multiple shops, wholesale provision merchants and retailers, has made very strong representations to me, firstly, objecting to control; secondly, protesting against price-iixing; thirdly, objecting to the present manager, London agency. Regarding firstly, I told them that control policy was definitely settled, and would continue. They recognised this position, and state thcjr desire to continue work in interests of New Zealand dairy trade at this end, and accepted my statements. Eegarding secondly, I am convinced strongly it would be a great mistake to attempt anything in nature of minimum price-fixing, and, in view of serious position, any method at this juncture, likely.to engender antagonism should bo avoided, Regarding thirdly, very strong objection expressed to Wright, in whom trade apparently have no confidence, and this attitude very detrimental interests of Now Zealand producers. Matter has ■been discussed with Grounds, who is meeting same people to-day. ■ Paterson's telegram to board, in my opinion, correctly represents feeling majority of trade here. Give copy this tolegram to Hawkcii. Matter most urgent.—(Signed) Coates." "Now comes the strangest part of tho business," said Mr. Timpany in referring to cables from London." Mr. Coates sent his message from London on 27th October, and it reaches Wellington, on the 28th. Mr. Paterson, of tho London agency, sends a cable on 23rd October, after having shown it or a copy to Mr. Coates, yet Mr. Patorson's message only reaches NcwZoaland on 28th October, the day after the board meeting. Mr. Paterson's cable this time leaves no doubt as to the opinions hold in London. Hero it is (received 28t!t October, 1026):— "London, 23rd October, 102(5. —Cannot urge too strongly that to avoid disaster board should abandon niiuiiinm price fixing and adopt Australian system price control. All aliottees, with1 excoption only of Lovells and Wilson Sears, have this week officially in writing strong represented to agency that owing to keen hostility of all branches trade throughout country, price fixation would be detrimental to best interests producers. Strongly urge also board should dispense with present manager, who completely lacks confidence trade, and in my opinion can never secure the trade's goodwill and co-operation. Wright has repeatedly stated that the Australian system of price control is both useless and unworkable. If, therefore, board adopts this system all the more essential to change manager. An eminently suitable man of great experience and highest standing in trade is prepared to negotiate for position if and when it becomes vacant, but declines allow his name bo disclosed unless and until board creates vacancy. In any case, aniicipato no difficulty in replacing, Wright with moro suitable man. Think reorganisation Dominion agency not urgent, and can wait Ground'1; return and that meantime if board by adoption course übovo suggested lays foundation essential for re-establishing good-will and confidence, present agency with suitable new manager can got business working smoothly. Believe that, firstly, in view provisions section" (5, sub-section 2, of Act, it is at least very doubtful whether Wright lias an enforceable contract against board; secondly, if ho has such contract and board decided dispense with services measure damages -would be salary ■balance period, less what he might reasonably bo expected earn- during same period, but on these points board will doubtless take legal advice before final decision in event deciding dispense Wright's services, suggest board should j authorise agency at discretion, arrange amicably best terms or altcrna- | tively notify Wright on board's behalf of termination services, and if board decides advisable make any payment in liou notice, such should be made with denial liability. Whatever the cost, believe change manager essential. Above message is scut with cognisance Prime Minister, who requests you hand copy immediately to Acting-Prime Minister. —(Signed) Stronaeh. Paterson. '' '